IMPROVING THE PROMOTIONAL MIX IN MARKETING STRATEGY FOR IMPORT FREIGHT FORWARDING SERVICE AT GLOBAL LOGISTICS AND TRANSPORT CO , LTD

- THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS FACULTY OF INTERNATIONAL BUSINESS BACHELOR’S THESIS IMPROVING THE PROMOTIONAL MIX IN MARKETING STRATEGY FOR IMPORT FREIGHT FORWARDING SERVICE AT GLOBAL LOGISTICS AND TRANSPORT CO., LTD Student : Nguyen Yen Ngoc Class : 44K01.2 Instructor : Nguyen Thi Phuong Thao, M.Sc DA NANG, MAY 2022 ACKNOWLEDGEMENTS To complete this thesis, I would like to express my sincere and profound gratitude to the instructor M.Sc Nguyen Thi Phuong Thao has enthusiastically guided and assisted me throughout the implementation of this thesis I want to express my sincere thanks to the faculty of International Business, University of Economics - The University of Da Nang, for their dedication to conveying knowledge during the years I have studied The knowledge gained in the learning process is a foundation for me to apply to practical activities in the company and luggage for my actual job in the future I want to thank the Board of Directors of Glotrans Da Nang Company for allowing and creating the most favourable conditions for me to practice well at the company However, due to the limited knowledge and the lack of practical experience, the content of the thesis cannot avoid its shortcomings I hope to receive further suggestions and advice from lecturers with all officials and employees at the enterprise to improve this thesis Finally, I wish you all the best for your health and success in your teaching career Respectfully wish all of you, your uncles, brothers and sisters in Glotrans Da Nang Company good health and great success in their work TABLE OF CONTENT LIST OF FIGURES LIST OF TABLES INTRODUCTION Background Vietnam's economic situation is experiencing many fluctuations under the general influence of the global economic recession during the Covid 19 pandemic Many businesses have gone bankrupt in recent years because of supply chain disruption It costs a lot to implement both production and anti-epidemic simultaneously Furthermore, people's purchasing power decreased due to social distancing, travel restrictions, and customers only using essential services and products Therefore, to create a sustainable business policy in this period, businesses must have strategies suitable for domestic and international markets The design of a reasonable marketing policy will play a first role pioneer in establishing solid moves in a competitive market strategy Since marketing is not a battle of products, it is a battle of customer perception, and sometimes perception customers first will create more advantages than entering the market first Promotional mix is a powerful instrument for increasing product and service sales (Hollensen, 2010; Mayer et al., 2014; Susanti, 2015; Wariki, Mananeke, & Tawas, 2015) Firms can use promotional strategies to attract and keep clients, resulting in a higher return on investment due to a more extensive client base (Kotler, 2007) However, most businesses nowadays pay little attention to these campaigns The corporation typically engages in promotional mix activities on a rudimentary level, with no precise strategies in place Meanwhile, the promotional mix is an essential component of the marketing mix since it is the primary means of communication between the firm and its consumers, and is also a crucial aspect in maintaining and developing strong customer connections Global Logistics and Transport Company Limited (Glotrans) was established in 2009 Through many years of operation, Glotrans has developed rapidly and is proud to become a reputable transportation service provider in Vietnam, contributing a significant part to the country's transportation industry However, Glotrans has not paid much attention to its marketing strategy, particularly its promotion strategy The company's marketing programs have not made a deep impression on customers and, in general, are not yet creative If Glotrans does not enhance a promotional scheme in the future, it may have slower growth than its competitors Since there are slight differences between competitors in terms of prices, products, or distribution variables in this industry, Glotrans must strengthen the promotional mix strategy International freight forwarding plays a crucial role in global trade Freight forwarding entity collaboration aims to balance the demand and available transportation resources among several carrier entities by exchanging client requests (Kopfer and Pankratz, 1999) In Glotrans, the company offers a wide range of services, each with its own features However, the import freight forwarding service is one of the company's vital revenue-generating services It is also a complicated one that necessitates the coordination of several modes of transportation and more communication with consumers Furthermore, if a good marketing communication plan for import freight forwarding can be implemented, it may serve as a springboard for building strategies for other services in the organization Along with that, there has not been a previous research project on this field of Glotrans company Hence, the thesis will concentrate on improving the promotional mix for import freight forwarding service In conclusion, to delve deeper into the issue and provide the most effective and appropriate solutions for the import freight forwarding service’s promotional strategy of the company, the thesis is determined with the title “Improving the promotional mix in marketing strategy for import freight forwarding service at Global Logistics and Transport Co., Ltd ” Research objectives The research objectives of this thesis consist of objectives: • Describe the current status of promotion activities for import freight forwarding services at Glotrans Da Nang in recent years • Evaluate the advantages, disadvantages, and limitations of promotion activities for import freight forwarding service that the company is performing • Propose solutions to improve promotion activities for import freight forwarding services of Glotrans Da Nang in the coming time Research subject and Research scope • Research subject: The current status of promotion activities for import freight forwarding services at Glotrans Da Nang • Research scope: o About space The research project was carried out at Global Logistics and Transport Co., Ltd Da Nang o About time The topic is carried out during the extended internship period - two months in practice at the company The data period is limited to the last three years, and the solution will be proposed with a vision to 2027 Methodology The thesis employs a variety of methodologies, including comparison, assessment, and enumeration based on data gathered from the two primary sources listed below: • Primary information: Information from actual observations, interviewing employees in the sales department • Secondary information: Information from reports, documents in the company, newspapers, the Internet, etc Structure In addition to the introduction, list of tables, graphs, conclusion, and references, this thesis includes 05 chapters: Chapter 1: THEORETICAL BACKGROUND Chapter 2: RESEARCH METHODOLOGY Chapter 3: INTRODUCTION ABOUT GLOBAL LOGISTICS AND TRANSPORT COMPANY LIMITED DA NANG Chapter 4: THE CURRENT SITUATION OF PROMOTIONAL POLICY IN MARKETING STRATEGY FOR IMPORT FREIGHT FORWARDING SERVICE AT GLOTRANS DA NANG Chapter 5: THE PROPOSALS TO IMPROVE THE PROMOTIONAL POLICY IN MARKETING STRATEGY FOR IMPORT FREIGHT FORWARDING SERVICE AT GLOTRANS DA NANG CHAPTER 1: THEORETICAL BACKGROUND 1.1 Service marketing 1.1.1 Service 1.1.1.1Definition The term "service" is defined in a variety of ways However, all definitions agree that services are labor-intensive goods They not exist in the form of things; the manufacturing and consumption processes take place simultaneously, and its object is to fulfill production and consumption demands Services are economical products that include physical labor, management, knowledge, organizational capacity, and professional abilities to meet the demands of the customer's production, business, or consuming activities According to Philip Kotler “Service is any activity or benefit that this subject provides to the other subject, in which the supplier object must necessarily be invisible and lead to no ownership of any set, meanwhile, the service production may or may not be associated with any physical product” 1.1.1.2Characteristics of services There are four key features of services that have essential marketing consequences and assist us in distinguishing them from products (A Palmer, 1994, p.3-7) They are: a Intangibility: Intangibility refers to the fact that services cannot be seen, tasted, touched, heard, or smelled prior to purchase Customers are not permitted to test them Airline passengers, for example, have nothing but a ticket and the promise of arriving at a specific time and location Nothing, on the other hand, can be touched b Inseparability: Services have inseparable qualities, which implies that they are both generated and consumed simultaneously This also means that services and their suppliers cannot be separated Physical products, unlike services, are manufactured, then stored, then sold, and finally consumed Conversely, services are first marketed, then produced, and consumed concurrently After manufacturing, a product might be taken away from the producer On the other hand, a service is created at or around the point of purchase c Heterogeneity: Change is another crucial aspect of service It refers to the reality that service quality varies substantially depending on who offers them and when, where, and how they are delivered Because services are labor-intensive, there is much variance in the service quality provided by various providers or even by the same provider at different times d Perishability: Perishability refers to the fact that services cannot be kept for subsequent sale or usage This is one of the most essential aspects of service since it has a significant influence on the financial outcomes of a service provider: Perishability isn't a factor inconsistent demand Because the problem is so large, service providers must pay close attention Moreover, service businesses may encounter challenges if demand fluctuates 1.1.2 Service marketing These days, there is much discussion about whether service marketing is distinct from product marketing Some service marketers believe that service marketing and product marketing are fundamentally different and require separate talents However, no one has defined service marketing precisely, and it can only be understood via the evolution of marketing theory in the service business According to Philip Kotler (1990), “Services marketing required solutions that can improve quality, service products productivity, impact to demand, in pricing as well as distribution and promotion” Krippendorf (1971) has mentioned that service marketing is “a systematic adaptation and coordinate business policies of private and government services with optimal satisfaction of the needs of customer to achieve profit” In general, service marketing is the process of planning and executing the idea, pricing, advertising, and distribution of commercial and government services to please clients and generate profit 1.2 Types of marketing in the service industry According to Philip Kotler (1990), there are three forms of marketing in the service business They are external marketing, internal marketing, and interactive marketing • External marketing “describes the normal work of preparing, pricing, distributing, and promoting the service to customers” • Internal marketing “describes training and motivating employees to serve customers well The most important contribution the marketing department can make is 10 much promise Many firms have had great success in efficiently employing advertising, so if Glotrans Da Nang pays attention to investing in advertising channels in the present and future, the company will maximize its sales possibilities 4.3 Evaluate the company’s promotion policy situation The company's promotion policy situation can be evaluated through the achievement of set goals As can be seen from the section "Determining promotion objective" above, for the goal of creating long term relationships with existing customers, Glotrans Da Nang has put up some basic promotional mix activities However, the company has not used direct marketing to its full potential (lack of modern direct marketing tools, which many customers use in this high-tech age) For the goal of introducing its services to potential customers, the firm has recruited and trained a group of experienced, highly skilled transportation personnel to address the growing demands of import freight forwarding activities and development logistics operations However, they are not focusing on discovering prospective import clients in Da Nang city - where the company is based Moreover, for the advertising tools, the possibilities of channels that are used have not yet been thoroughly explored; their operations are only at the maintenance level Besides, the company's goal to create a nice image in the public's eyes is done well However, it should invest more in other PR tools, such as CSR- this helps to express humanity and create a more positive image of the company in the public eye or hold customer conferences to create a genuine connection with them Aside from all these evaluations, there are also some difficulties that the company must address: For the Promotional program, as can be seen from the organizational structure indicated, there is no marketing department at Glotrans Viet Nam, so the activities are primarily carried out individually, without a system or a documented plan This can provide advantages, such as more employee flexibility in responding to unforeseen crises However, it has certain drawbacks, including a lack of consistency in the activities and messages conveyed, inconsistencies in the implementation phases, and conflicts between human tasks 59 In terms of the promotional mix, Glotrans Da Nang's existing instruments are employed in isolation, with little coordination or close cooperation to establish a unified program Furthermore, the company appears to have overlooked the need to measure the efficiency of promotion operations This is regarded as a crucial component since it assists the organization in eliminating wasteful processes and establishes the circumstances for the company to construct a shared strategy for promotional efforts Hence, Glotrans Da Nang's promotion efforts for all services in general and import freight forwarding services, in particular, have not been fully developed So the firm has to have a thorough knowledge of the importance of promotional mix activities in the business This is both a required and sufficient requirement for any firm to survive and grow in today's market Proper awareness of marketing activities and promotional mix activities is a guiding principle for the existence and growth of all commercial operations in the organization 60 CHAPTER 5: THE PROPOSALS TO IMPROVE THE PROMOTIONAL POLICY IN MARKETING STRATEGY FOR IMPORT FREIGHT FORWARDING SERVICE OF GLOTRANS DA NANG 5.1 Promotional program 5.1.1 Identify target audience In the coming time, the company's promotional strategy for import freight forwarding services should sustain the present market while also looking for ways to develop the prospective market With the local market, Glotrans Da Nang should focus more on discovering prospective import clients in Da Nang city or neighbouring provinces, such as certain provinces of Tay Nguyen highland, Quang Nam, and Quang Ngai, rather than customers in the north and south of Vietnam (Ha Noi, Ho Chi Minh) Apparently, it is easier to travel to meet and promote import forwarding services to those customers In addition, when problems arise, salespeople can meet directly with customers to troubleshoot, which is much more convenient than meeting online With the foreign market, it is vital to concentrate on two strategic import markets: China and Korea According to VN Express- a prestigious online newspaper in Viet Nam, in 2021, the trade deficit from China was estimated at 54 billion USD, up 53%; the trade deficit from Korea is 34.2 billion USD, up 23% over the previous year Therefore, Glotrans Da Nang should leverage such overseas import markets to attain the desired sales figures Regarding the target customer group, it is essential to prioritize the stability and development of the group of customers importing full container load (FCL), which is a reasonably big group in terms of the overall consumption of the company's forwarding services However, it is also critical to give information and advertise the firm's services to a group of retail clients (less than container load) who have the potential to become loyal customers and refer the company to additional customers 5.1.2 Designing the message About the message format, Glotrans Da Nang should put the slogan “Global thinking - Global connecting” on more customer touch points rather than just on FB 61 page Some customer touch points such as catalogues, banners, websites, papers, etc., to create brand awareness among clients once they often see it Additionally, on the FB page, the message should be increased the letter sizes and be positioned in an easy to see location, making the reader hardly pass-through 5.1.3 Selecting communication channels 5.1.3.1 Personal channel The firm should consider hiring at least one individual whose sole responsibility is marketing in general and promotion in particular; or, they can outsource marketing agencies to the company In Glotrans Da Nang, salespeople must both their jobs and promotional efforts, resulting in overload and inefficiency To operate effectively in this competitive industry, expert design promotional techniques are required to stand out and better position the company's offerings To function successfully, this marketer must be knowledgeable about the company’s import freight forwarding services, comprehend the company's and rivals' strengths and shortcomings, and link and unify the promotional plan 5.1.3.2 Non-personal channel Non-personal channel is considered to be widespread and influential However, Glotrans Da Nang does not place much emphasis on non-personal channel tools Also, when using these tools, the company should coordinate and link aspects with each other to attain maximum efficiency The proposals for these tools will be discussed in depth in the section on Promotional Mix 5.1.4 Measuring the results Until now, measuring the effectiveness of the Glotrans Da Nang's promotion programs has not been concentrated on Glotrans Da Nang could provide more solutions to assist import clients in sending feedback swiftly and conveniently Furthermore, collect client feedback through a questionnaire after each transaction, including additional questions concerning promotional activities for import freight forwarding services Build an anonymous feedback section on the website and create online questionnaires to distribute to consumers and publicly on the company's Facebook page In addition, they should include specific questions about other types of marketing methods, such as sales promotion, personal selling, etc 62 5.2 Promotional mix 5.2.1 Personal selling In comparison to other tools, Glotrans Da Nang places a high value on personal selling since it immediately delivers a significant source of consumers - who need import services; and generates lucrative primarily results Glotrans Da Nang should thus continue with its current operations for this instrument In addition, the human factor is important, so the company should have activities to award the best sales quarterly instead of annually as it is now This can boost the employee motivation and competencies more often Besides, to get closer to the potential foreign market, the company should hire more oversea sales staff who have language skills in Chinese or Korean language (since those two countries have the most trade deficit figures in Viet Nam in 2021) Those sales staff can engage with overseas clients more easily And measuring the results of sales performance is also required This evaluation assists in determining if the existing consultation approach is efficient in consulting and convincing customers, whether customers are content with the service and how the employee works or their attitude, etc Then, Glotrans Da Nang can consider ways to enhance the company's sales activity based on the reviews provided above 5.2.2 Direct marketing Firstly, the client database that serves the current operation of Glotrans Da Nang for import freight forwarding services is relatively simple and is recorded independently in Excel files by each salespeople Therefore, the company should invest in generic customer data management for sales personnel It will assist salespeople in swiftly searching information about the customer, preference, transaction history, address, etc and also reduce the possibility of salespeople in Glotrans' network of offices and branches sharing coincident customer information Secondly, the company needs to redesign the brochure with more information and vivid images of import freight forwarding services; since this is a strength of the company, they should emphasize competitive import prices compared to competitors in their brochure Thirdly, in this high-tech age, the internet experience entails far more than simply checking emails The internet is a part of our everyday lives, from communicating 63 with friends and family to doing weekly grocery shopping, researching things to locally, etc So, Glotrans Da Nang should widely expand the modern direct marketing tools to optimize the interaction with import customers through Social Media (Google, Facebook, Tik Tok, Instagram, Twitter, Linkedin, Quora, Reddit, etc.), SMS Marketing, News, etc For example, the company can build a live chat box on the website This chat box categorizes all questions related to various services, including import freight forwarding services, and actively sends messages to the customer asking for any assistance Or some more tools like checking the movement of a shipment, searching the train schedule, etc In addition, instead of photographs of freight forwarding services, the Glotrans Da Nang social networking pages could offer more helpful information for clients Customers may be interested in information such as the current pricing of 20'DC/40'DC containers from Shang Hai port to Cat Lai port, a list of planned arrival ships for the week, news about the Vietnamese import market, etc Therefore, customers may visit the website more frequently to get the information they need on import freight forwarding services; thus, the firm can increase its chances of interacting with customers After completing direct marketing operations, a performance evaluation should be carried out Direct-mail marketing and telemarketing are tools that communicate directly with import customers, and their input is used to determine effectiveness For example, the firm should total the number of import customers who responded to the company's email each week and the number of customers who consented to utilize import freight forwarding services Finally, marketers may determine if email response rates and customer purchasing choices are low or high Then they can utilize the results to identify the problem and propose remedies 5.2.3 Public relations Firstly, Glotrans Da Nang should publish information on more major press agencies or well-known websites in Vietnam closely related to the import or shipping industry, such as Industry and Trade newspaper, Visabatimes, Shipping times, Viet Nam logistic, Viet Nam Transportation, etc., as well as newspapers in Viet Nam with a large number of subscribers, such as Thanh Nien newspaper, Dan Tri, VN Express, etc They may also send their news to overseas press agencies to increase the visibility of the company's import freight forwarding services 64 Secondly, the company should hold some events like customer conferences to understand customer preferences better and create friendly relationships with them Thirdly, the company should invest more in other community relations tools such as charity activities (disadvantaged families, flood victims, poor children, etc.)—this helps to express humanity and create a positive image of the company in the public eye Or environmental protection - which is a rather severe problem for logistics companies today For this kind of community activity, the company can organize some programs to clean the environment in the area and help reduce dust Following implementing public relations initiatives, Glotrans Da Nang should assess and evaluate their efficacy They can conduct this examination using both qualitative and quantitative criteria Quantitative factors include the number of people and organizations that attended the event, the number of posts on social media relating to the event, public reaction, whether the number of bookings rise or not, etc The qualitative factors include whether the firm has attained the intended image, brand recognition among the general public, etc In addition, marketers should compare website visits to times when no PR campaign was used 5.2.4 Advertising About the website, first, Glotrans Da Nang needs some updates like updating the interface to be more attractive to customers; fixing the error when switching to English mode; regularly updating news or articles; posting some feedback from big clients since in terms of service, C Bhattacharjee (2012) claimed that service consumers perceive a higher level of risk than product customers due to the intangibility of the service Because of this feature of service, other customers often rely on the feedback of customers who have used the services to decide whether they should choose the company or not In addition, the company can also build its online presence through some marketing channels like Google Such as paid search (use for its core products: like import freight forwarding services or highlight calendar-based events) Or some prominent promotion tools like Search engine optimization (SEO) and Search engine marketing (SEM) Those two search engines help Glotrans's website increase its chance of appearing on Google So, when people search for keywords like "Logistics firms in Da Nang city", the company can appear on the top or in the middle of research 65 pages and then make it easy for target customers to find the company online and increase the ability to sell Besides, Glotrans Da Nang can perform a display advertising tool like banner ads with the eye-catching title about the company's reasonable price and service Those banners can be displayed in some crowded streets in Da Nang city, Da Nang port, or on third-party websites specialising in international transportation, economics, etc Regarding advertising on television, the company should make short advertisements that highlight the outstanding features of import freight forwarding services and other services and choose the appropriate time in the day to attract target customers This way can primarily build up the brand awareness of Glotrans Da Nang Advertising via Facebook is also an effective way The company can advertise on FB page through videos rather than images since videos are spreadly growing than images and articles; it helps customers get information faster than image and text ads, mainly thanks to the development of the Facebook Watch Regarding the content of the video, it can be about the company's professional staff, investment-related facilities, significant contracts with other firms, etc, thereby making it easier for viewers to remember the professionalism of the company and quickly create brand awareness Also, they need to update information on FB page about their services, and logistics news more regularly Such news can be shared on some large logistics groups in Viet Nam to approach closely target customers like "Logistics Viet Nam", "Cộng đồng Logistics Việt Nam", etc, After each advertising program, the company also needs to measure and evaluate its effectiveness through ways like researching sales performance during the advertising time 5.3 Integrated Marketing Communication (IMC) In the increasingly fierce competition in the business market, customers inevitably have to receive unofficial information about businesses Therefore, IMC will help Glotrans Da Nang creates competitive advantages, improves brand reputation and effectively conquer target customers For instance, if Glotrans Da Nang incorporates all tools, such as advertising, direct marketing, personal selling, and public relations Individuals, departments, and branches—those who build the tools mentioned above—must be linked inside the 66 firm It is vital for someone or a group to develop a marketing communication plan that all others will use as a foundation for their actions The information provided by all communication media and tools is consistent This work will nearly entirely resolve the present issues at Glotrans Da Nang, such as slogans that differ between the fan page and the website or ambiguous message content 67 CONCLUSION Global Logistics and Transport Company Limited was established in 2009 Through many years of operation, Glotrans has developed rapidly and is proud to become a reputable transportation service provider in Vietnam, contributing a significant part to the country's transportation industry Aside from the success, the corporation had several challenges in surviving and growing in the market during the Covid 19 epidemic To obtain market share in today's competitive logistics industry, each organization must best satisfy the market's demands This thesis was conducted with the desire to make a tiny contribution to the growth of Glotrans Da Nang and other logistics companies in Vietnam The study focused on the investigation and assessment of import freight forwarding services' promotional strategy status at the firm to evaluate the strengths and weaknesses of this service's promotional plan Finally, the thesis suggests improvements to the company's promotional approach Based on the research results, the author suggested implications for Glotrans Da Nang company so that the company manager could build appropriate promotional strategies These strategies focused on raising consumers’ awareness of services at Glotrans as well as active communication on social media platform The author pointed out some limitations of the thesis Because the preparation time and actual observation time for this thesis were relatively short (almost two months) and there were restricted qualifications, the study could not prevent particular flaws Apart from the proposals which were proposed in the research framework, there may be other solutions improving the promotional policy of the company that the author did not mention The author also proposed directions for future research based on the research limitations 68 REFERENCES Hans Ouwersloot, T D (2008) Integrated Marketing Communications McGraw-Hill Glotrans Da Nang (2022) Annual report Glotrans Da Nang (2022) Brochure Kotler, P (1984) Marketing essentials Prentice-Hall al, O e (2009) Advertising & Integrated Brand Promotion Philip Kotler, G A (2017) Principles of Marketing 17th Edition Pearson Karunakaran, D K (2014) Services Marketing Himalaya Publishing House Prakash, A (2012) Understanding service quality R P Mohanty Groucutt, J ( 2005) Foundations of Marketing Palgrave McCarthy, E J (1964) Basic marketing, a managerial approach Homewood, Ill., R.D Irwin Krippendorf, J., & Nantermod, P (1971) Marketing et tourisme Berne : Lan Belch, G E., & Belch, M (2009) Advertising and Promotion An Integrated Marketing 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service industry In the traditional marketing mix, 4P's is a structure of marketing mix (McCarthy’s, 1964) The 4P model in the Marketing mix includes