Background
Vietnam's economy is currently facing significant challenges due to the global recession triggered by the Covid-19 pandemic, leading to widespread business bankruptcies and supply chain disruptions The dual costs of production and pandemic control have strained many companies, while decreased consumer purchasing power, driven by social distancing and travel restrictions, has further complicated the landscape To navigate these turbulent times, businesses must develop tailored strategies for both domestic and international markets A well-crafted marketing policy is crucial in establishing a competitive edge, as marketing revolves around shaping customer perception; often, a strong perception can provide a greater advantage than simply being the first to market.
The promotional mix serves as a vital tool for boosting sales of products and services, as highlighted by various studies (Hollensen, 2010; Mayer et al., 2014; Susanti, 2015; Wariki et al., 2015) By implementing effective promotional strategies, companies can attract and retain customers, ultimately leading to increased return on investment through a broader client base (Kotler).
In today's business landscape, many companies overlook the importance of promotional campaigns, often implementing them without clear strategies The promotional mix is a vital element of the marketing mix, serving as the main communication channel between businesses and their customers Effective management of this mix is crucial for building and maintaining strong customer relationships.
Global Logistics and Transport Company Limited (Glotrans) was established in
Since its establishment in 2009, Glotrans has rapidly evolved into a reputable transportation service provider in Vietnam, significantly contributing to the nation's transportation sector However, the company has largely overlooked its marketing strategy, particularly in promotions, resulting in a lack of memorable and creative marketing programs To avoid slower growth compared to competitors, Glotrans must enhance its promotional mix strategy, especially given the minimal differences in pricing, products, and distribution within the industry.
International freight forwarding is essential for global trade, facilitating collaboration among freight forwarding entities to optimize transportation resources by sharing client requests (Kopfer and Pankratz, 1999) Glotrans provides a diverse array of services, with import freight forwarding being a key revenue driver This service is complex, requiring coordination across multiple transportation modes and enhanced communication with clients Implementing an effective marketing communication plan for import freight forwarding could also pave the way for developing strategies for other services within the company Notably, there has been no prior research on Glotrans in this area, making this thesis focused on enhancing the promotional mix for the import freight forwarding service.
In summary, this thesis titled “Enhancing the Promotional Mix in Marketing Strategy for Import Freight Forwarding Services at Global Logistics and Transport Co., Ltd” aims to explore the challenges and develop effective solutions for the company's promotional strategy in the import freight forwarding sector.
Research objectives
The research objectives of this thesis consist of 3 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
The current status of promotion activities for import freight forwarding services at Glotrans Da Nang.
The research project was carried out at Global Logistics and Transport Co., Ltd Da Nang. o About time
The project focuses on a two-month internship experience within the company, utilizing data from the past three years to inform its findings The proposed solutions aim to align with the company’s strategic vision through 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 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
Chapter 5: THE PROPOSALS TO IMPROVE THE PROMOTIONAL POLICY
IN MARKETING STRATEGY FOR IMPORT FREIGHT FORWARDINGSERVICE AT GLOTRANS DA NANG
THEORETICAL BACKGROUND
Service marketing
The term "service" encompasses various definitions, yet all agree that services are labor-intensive offerings Unlike tangible goods, services are not physical products; instead, their production and consumption occur simultaneously, aimed at meeting specific production and consumption needs.
Services are cost-effective offerings that encompass physical labor, management expertise, knowledge, organizational skills, and professional capabilities, all designed to fulfill the needs of customers in their production, business, or consumption activities, as defined by Philip Kotler.
Service refers to an activity or benefit provided by one party to another, characterized by the supplier's invisibility and the absence of ownership of any tangible goods The production of services can occur independently of physical products.
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 means that services cannot be experienced through the senses before purchase, making it impossible for customers to test them For instance, airline passengers rely solely on a ticket and the assurance of reaching their destination at a designated time, as there is nothing tangible to interact with prior to the service being rendered.
Services possess unique characteristics that distinguish them from physical products, as they are produced and consumed simultaneously This simultaneous interaction means that services and their providers are inherently linked, unlike products that are manufactured, stored, and sold before consumption In contrast, services are marketed, produced, and consumed at the point of purchase, highlighting their inseparability and the dynamic nature of service delivery.
Change is a vital element of service delivery, highlighting that service quality can fluctuate significantly based on the provider, timing, location, and method of delivery Given that services are labor-intensive, this variability can occur not only between different providers but also within the same provider at different times Additionally, the perishability of services means that they cannot be stored or saved for later use, further emphasizing the importance of consistent quality in service provision.
Perishability in services highlights that they cannot be stored for future sale or use, significantly impacting a service provider's financial performance This characteristic underscores the importance of managing demand fluctuations, as inconsistent demand can pose challenges for service businesses Therefore, service providers must closely monitor and adapt to changes in demand to ensure sustainability and profitability.
The debate surrounding the distinction between service marketing and product marketing continues, with some service marketers asserting that they require different skills and approaches Despite this, a precise definition of service marketing remains elusive, necessitating an understanding of its evolution within marketing theory Philip Kotler (1990) emphasized that effective service marketing involves solutions that enhance quality, productivity, demand, pricing, distribution, and promotion Similarly, Krippendorf (1971) described service marketing as the systematic adaptation and coordination of business policies to meet customer needs optimally while achieving profitability.
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.
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 focuses on training and motivating employees to enhance customer service A key role of the marketing department is to effectively engage the entire organization in practicing marketing strategies.
Interactive marketing “describes the employee’s skill in serving the client Clients judge service not only by its technical quality but also by its functional quality”.
So, to attain service marketing excellence, it is crucial to excelling in the three categories listed above.
Marketing mix in the 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 Product, Price, Place, and Promotion. When it comes to service marketing, a few academics are in favor of adding three additional
The traditional 4Ps of marketing (Product, Price, Place, Promotion) have evolved to emphasize the importance of building long-term customer relationships (Groucutt, 2005; Kasper et al., 2006) To achieve this, organizations must integrate the marketing mix into their overall strategy In the realm of service marketing, three additional Ps—People, Process, and Physical evidence—play a crucial role in enhancing customer engagement and satisfaction.
Organizations leverage products to enhance client satisfaction, as noted by Maria Johann (2015) A service product includes a core offering that meets consumer needs, along with supplementary services that add value for customers.
According to the description above, marketers describe goods as anything physical, intangible, or a combination of these that they may make to satisfy consumers.
When making purchasing decisions, consumers prioritize price over other factors, as noted by Donnelly (2007) Price, defined as the monetary cost of a product or service (Kotler & Armstrong, 2012), serves not only as a financial consideration but also as a key indicator of product quality, highlighting its strategic importance (Johann, 2015).
Hence, pricing may be regarded as a crucial component in influencing customer purchases and an essential aspect in determining a company's sales and profits.
According to Philip Kotler and Gary Armstrong (2012), a distribution channel consists of firms working together to deliver products or services that meet the needs of customers or organizations In the service industry, the concept of 'place' highlights how easily consumers can assess services (C Bhattacharjee, 2012) Today, the speed and convenience associated with place and time are critical factors in service delivery To enhance customer experience, companies are expanding distribution channels and improving their websites, enabling customers to access information, book services, order products, and make payments online efficiently.
The promotion mix in service marketing includes four essential tools: advertising, personal selling, sales promotion, and public relations According to C Bhattacharjee (2012), service consumers often perceive greater risk compared to product customers due to the intangibility of services As a result, service providers consistently engage in advertising efforts to alleviate these risk concerns and build consumer trust.
Employees are one component seen as essential in a marketing mix strategy (Judd,
A well-managed workforce can give a company a significant competitive advantage, as employees are crucial in both service delivery and the development process Their involvement not only enhances the design of services but also directly impacts customer interactions, highlighting the importance of staff in achieving business success.
The process refers to the actual methods, mechanisms, and flow of activities used to supply the service - this service delivery and operating systems (Zeihaml et al, 2008).
The intangibility of services leads to a unique overlap between production and consumption, complicating the manufacturing and distribution processes compared to tangible goods This close relationship between operational management and service marketing often results in confusion for marketers.
A variety of actions are carried out, with the ultimate result being providing services to customers Thus, service firms must plan to build a specific process to get the best outcomes.
Physical evidence refers to the context in which a service is provided and plays a crucial role in assessing service quality Elements such as the aesthetic design of a café or the cleanliness of a clinic contribute to the overall service image, highlighting the tangible aspects of the service experience Physical evidence can be categorized into two types: peripheral evidence and essential evidence, both of which influence customer perceptions and satisfaction.
In summary, physical evidence is an environment that may contain items for services such as business cards, brochures, websites, etc.
Promotion policy
Promotions serve as a vital link between companies and customers, facilitating direct and indirect engagement through announcements, persuasion, and encouragement to purchase products, services, and brands (Philip Kotler & Kevin Lane Keller, 2012) This process is defined as the strategic coordination of seller-initiated efforts aimed at establishing channels for information and persuasion, ultimately to sell goods and services or promote ideas (Belch & Belch, 2004).
1.4.2 The role of promotion policy
Promotional marketing activities, including propaganda and advertising, enhance customer access to products, distribution networks, and pricing These practices help businesses effectively establish their brands and products in the minds of consumers.
Businesses may use promotion marketing to help customers comprehend their goods, pricing policies, product names, etc., thereby creating awareness, differentiation, and even love and loyalty to the product.
Marketing promotion, whether indirect or direct, assists businesses in persuading people to purchase items or use services This is most visible in the direct selling tool.
Promotion, a key component of the marketing mix, plays a vital role in enhancing a company's visibility and aiding businesses in achieving success within their target markets It focuses on making customers aware of the services and products offered by companies Effective promotional strategies are designed with specific objectives in mind to drive engagement and sales.
Assist companies in increasing income
Maintain and expand the market shares of businesses
Assists customers in quickly recognizing the company's brand
Build momentum in order to meet future sales targets
Establish a competitive edge and market position.
Communicating product information to target markets.
In conclusion, promotion plays a significant part in developing and sustaining excellent and quality consumer connections All communication must be meticulously planned, prepared for, and implemented.
Promotional programs are vital for a business's success and require careful planning due to their associated costs As highlighted by Kotler, essential steps in developing and managing effective promotional campaigns include thorough strategy formulation and performance evaluation.
To effectively design a promotion planning process, it is crucial to first identify the target audience, as different groups require distinct promotional strategies Corporations often engage with various stakeholders, including potential customers, existing users, employees, key organizations, and the general public For instance, service organizations aiming to attract potential customers typically rely on traditional media, direct marketing, and public relations In contrast, engaging existing users demands a greater focus on selling strategies, such as cross-selling, up-selling, loyalty programs, and point-of-sale promotions.
After identifying the target audience, marketers must establish promotion objectives aligned with the product life cycle stages These objectives can be categorized into three types: to inform, to persuade, and to remind In the introduction stage, the focus is on raising awareness of the new service and enhancing brand recognition During the expansion phase, promotional efforts should aim to boost consumer preference and strengthen the company's image by highlighting the benefits of the brand In the maturation and decline stages, the communication goals shift towards encouraging repeat purchases and reinforcing previous promotional efforts.
There are several approaches for determining objectives, in which popular and effective methods are commonly used as SMART (Doran, G, T., 1981):
Specific: State what you will by using action words
Measurable: Provide a way to evaluate by using metrics or data targets
Relevant: Makes sense within job function
Time-bound: Be specific on date or timeframe
In every promotional campaign, marketers aim to convey clear messages to their target audience to capture attention and encourage desired actions To ensure effective communication without confusion, organizations must carefully evaluate key aspects of the message, particularly its content.
Audiences engage with content through three primary types of appeals: rational, emotional, and moral Rational appeals focus on how a company meets the desires and needs of its customers, while emotional appeals aim to evoke feelings—both positive and negative—to motivate customer action Meanwhile, moral appeals align with societal norms and values, guiding perceptions of what is deemed acceptable and appropriate Understanding these appeal types is crucial for effective message structuring in marketing strategies.
Marketers must carefully choose how to convey their message after determining its content Key considerations for effective message structure include presenting clear conclusions or leaving an open-ended question for audience engagement Additionally, the strongest arguments should be strategically placed at the beginning or end of the message Finally, incorporating multiple perspectives, including both advantages and disadvantages, enhances the overall effectiveness of the communication.
To enhance the appeal of your message, it is crucial to refine the message format by incorporating an engaging title and captivating image, as well as optimizing message size and positioning Additionally, consider the use of diverse forms, colors, and motions to draw attention Different communication mediums, such as sound for radio, body language for television, or shape and texture for packaging, also play a vital role in how the message is perceived.
Choosing the right spokesperson is crucial, as messages from credible sources are highly persuasive A source's credibility is enhanced by three key characteristics: professionalism, which reflects the media's authority to endorse a thesis; credibility, indicating the perceived objectivity and honesty of the source; and honesty, which determines the appeal of the message to the audience.
When choosing communication channels, it is essential to consider the goals of the promotion strategy, the target audience, the company's consumer base, and the characteristics of the media methods Belch & Belch (2007) define media as the medium through which messages are transmitted from sender to recipient Communication channels can be divided into two main categories: personal channels and non-personal channels.
Effective communication involves direct interaction between two or more individuals, enhancing efficiency through the ability to tailor offerings and respond to received information There are three main types of personal communication channels.
This communication channel is significant when the product's cost is high, dangerous, not frequently purchased, or the product reflects the user's status or likes. b Non-personal channel:
Non-personal communication channels, such as broadcast media (television, radio), print media (newspapers, magazines), display media (billboards, posters), electronic media (webpages, CD-ROMs, VHS), sales promotions, events, and publicity, play a crucial role in shaping client attitudes and behaviors While measuring the impact of these channels can be challenging, they significantly influence personal communication through a two-level information stream transmitter process, ultimately driving customer engagement and response.
Before launching a promotional campaign, an organization must complete essential preliminary processes, marking the initial phase of planning and delivering messages to target audiences To establish a sustainable communication strategy, it is crucial for the organization to assess and allocate its overall communication budget effectively.
Forwarding service
1.5.1 The definition of freight forwarding
P.R Murphy and J.M Daley (1997) defined an international freight forwarder as: "An international trade specialist who can provide a variety of functions to facilitate the movement of cross-border shipments" According to FIATA (2014), freight forwarding service is defined as any service involving the transportation, consolidation, storage,loading, packing, or distribution of goods, as well as ancillary and advisory services in connection with such services, including but not limited to customs, finance, insurance,payment, and collection of goods-related documents It is also defined in the Article 163 ofVietnam Commercial Law (1997) as “A commercial act whereby the person providing freight forwarding services receives goods from the shipper, organizes the transportation, storage, paperwork and other related services to delivery it to the recipients under the authorization of shippers, carriers or other forwaders”.
Freight forwarding is a comprehensive service that involves various procedures and activities related to the transportation of goods from the shipper to the consignee This service can be offered directly by the forwarder or through agents and third-party providers.
1.5.2 The role of freight forwarding service
Forwarding services play a crucial role in reducing distribution expenses, especially transportation costs, which significantly impact the overall market price of goods The modernization of these services not only lowers transportation expenses but also minimizes other costs associated with distribution As a result, the market price of goods becomes more affordable for customers, thereby improving competitiveness among firms, particularly in terms of pricing.
The forwarding service plays a crucial role in the global trade market by ensuring timely and location-specific transportation of products This essential link enables businesses to expand into new markets effectively, facilitating efficient market growth.
Third, forwarding services help reduce expenses and standardize documents in international commerce; it help reduce costs, improve legal efficiency in production, and boost forwarding enterprises' competitiveness.
RESEARCH METHODOLOGY
Data
This thesis uses a variety of methodologies, including comparison, assessment, and enumeration based on data gathered from the two primary sources listed below:
Glotrans Da Nang employs a strategic promotional mix that includes personal selling, direct marketing, public relations, and advertising to enhance its visibility and engagement The promotional program is carefully crafted, focusing on key elements such as the messaging, chosen communication channels, and budget allocation These efforts aim to effectively reach and resonate with the target audience, driving brand awareness and customer loyalty.
Glotrans Da Nang provides comprehensive insights through secondary data, including its organizational structure and available resources The logistics industry in Da Nang is highlighted by the presence of major logistics companies, showcasing the region's growing infrastructure Additionally, the import landscape in Vietnam reveals significant trends, particularly noting the countries that saw the most substantial increases in exports to Vietnam in 2021.
Data collection
During a two-month internship as a salesperson at Glotrans Da Nang, the author engaged in various promotional activities, including identifying potential customers, conducting telephone sales, and distributing marketing materials via Outlook and Zalo This hands-on experience allowed for a deeper understanding of the company's promotional mix tools, revealing both their strengths and weaknesses Additionally, expert opinions were gathered through the Professional Solution method, which involved conducting interviews to gain insights on the effectiveness of Glotrans Da Nang's promotional program This approach provided a comprehensive view of the socio-economic trends impacting the company's marketing strategies, ensuring a more objective evaluation of their promotional efforts.
"Public relations" in the thesis, the author interviewed Mr Vo Van Phuc Quy- the Vice Director of Glotrans Da Nang, some questions like "Does your company do charity?",
Inquiries such as "Where did you participate?" and "Does your company engage in logistics industry seminars?" reflect the principles of public relations as outlined by Belch & Belch (2007) and Arens et al (2011) These questions emphasize the importance of communication and engagement within the logistics sector.
In an insightful interview with Mrs Nguyen Thi My Hien, Vice Director of Glotrans Da Nang, the author explored the company's approach to budgeting for promotional activities Key questions addressed included the development of the promotional budget, the allocation of funds for employees engaged in phone call activities, and the reimbursement process for these employees This inquiry revealed the strategic methods employed by Glotrans Da Nang in managing their promotional budget effectively.
Secondary data refers to information that is readily available and not collected directly by researchers, making it a cost-effective and time-efficient resource for research purposes This data can be categorized as either unprocessed (raw) or processed Sources of secondary data include internal company records and published research documents In this thesis, the author gathers data on Glotrans Da Nang from various sources, including the company’s website, brochures, and annual reports, as well as information about the logistics industry in Da Nang and Vietnam's import situation from reputable online platforms and newspapers such as VnExpress and Dan Tri.
Data processing
The analytical-synthetic method is essential for dissecting a topic into its components and then unifying those insights to form a comprehensive understanding In this thesis, the author meticulously analyzes various aspects of the subject, employing a detailed examination of each promotional tool utilized by Glotrans Da Nang This approach not only highlights the strengths and weaknesses of these tools but also synthesizes the findings to draw meaningful conclusions about their effectiveness in the promotional mix.
The comparative method is a valuable tool for analyzing secondary data, allowing for various types of comparisons, including relative, absolute, and average comparisons across different dimensions This approach not only highlights the most realistic situations but also showcases intense competition, enhancing the appeal of the topic being discussed For instance, in the analysis of Glotrans Da Nang's business situation, the author compares profit after tax figures from 2019 to 2021, revealing the significant impact of the Covid-19 pandemic on the company's import and export activities.
INTRODUCTION ABOUT GLOBAL LOGISTICS AND
General introduction
Figure 3.1: The logo of Glotrans
Business Name: Global Logistics & Transport Co., Ltd.
Head office: 3rd Floor, Success Bldg., No.3 Le Thanh Tong Str., Ngo Quyen Dist, Hai Phong City, Vietnam.
Glotrans has 9 branches nationwide: Hai Phong, Bac Ninh, Ha Noi, Da Nang, Quy Nhon, Nha Trang, Ho Chi Minh, Can Tho, Vung Tau.
Da Nang branch office’s address: No 545 Ngo Quyen, An Hai Bac, Son Tra, Danang, Vietnam.
Email: danang@glotransvn.com.vn.
Website: www.glotransvn.com.vn
Glotrans is a proud member of several prestigious logistics organizations, including the World Cargo Alliance (WCA), China Logistics Club (CLC), International Federation of Freight Forwarders Associations (FIATA), EastWest Logistics Network (EWLN), PPL One Family, Global Cargo Association (GCA), World Wide Partnership Cargolink Network (WWPC Network), and the Vietnam Logistics Business Association (VLA).
Vision: “to establish Glotrans as a leader in providing creative logistics solutions that consistently exceed our customers’ expectations”
Glotrans serves as the essential connection in our clients' supply chains by ensuring that the right products are positioned effectively, at optimal prices, and delivered on time and in perfect condition.
Values: “We share strong values of mutual respect, quality consciousness, management involvement and transparency”
(Source: Glotrans Da Nang's brochure)
Business professions
We offer comprehensive logistics services, including the handling and packaging of various goods such as LCL and FCL shipments Our door-to-door service ensures efficient delivery, while we manage goods handling at ports and provide inland trucking solutions Additionally, we specialize in project cargo, accommodating both general and perishable items, and offer flexible long and short-term storage options to meet your needs.
Daily freight consolidations; pre-allocated space with a choice of airlines; secure warehouse if required; pre-shipment inspection; packing services; door to door airfreight service; insurance arranged.
Navigating customs clearance for import and export shipments is essential, particularly when dealing with import taxes on fixed assets and understanding the processes for tax refunds It is crucial to manage delivery terms such as EXW, DDU, and DDP effectively Additionally, seeking expert Customs Law Advisory can streamline operations, while monitoring customs brokers at factories ensures compliance Thorough document inspection is vital for smooth customs processes.
Bonded warehouse; packing&crating, container service; consolidation; storage in transit; warehousing; export packing; heavy lifts; consultant service; over dimensional Loads; after-hour and weekend services.
Consolidation truck; full truck loaded; container trailer services; conventional truck services; monitoring from picking up to delivery; tally.
Transport goods from station to station; transport goods from station to warehouse; transport goods from warehouse to warehouse.
Domestic door to door service
Cross border transportation and transit service
Management and development; import and export flow management; information management.
Organizational structure
Figure 3.2: Glotrans Da Nang’s organizational chart
(Source: Annual Report of Glotrans Da Nang)
Glotrans Da Nang operates with a functional organizational structure, comprising two main departments: Sales and Customer Service Each department is tasked with distinct responsibilities, creating a cohesive operational chain within the company The head of the sales office is directly accountable for the services rendered, overseeing specialized staff responsible for various functions, including sales import, sales export, and international sales.
Each department can fully concentrate its resources on the specific service operations it handles, enabling the firm to effectively meet client demands However, the absence of a dedicated marketing department indicates a lack of focus on promotional activities.
The CEO plays a pivotal role in driving the company's growth and success by overseeing all operations and addressing legal and contractual issues Responsible for strategic planning and research across all departments, the CEO monitors progress and evaluates outcomes against set goals By actively listening to staff feedback and aspirations, the CEO fosters a motivating environment that encourages departments to strive for excellence in completing their tasks.
3.1.2.2 Vice Director of Customer Service Department
The Vice Director of the Customer Service Department plays a crucial role in overseeing all branch activities and is accountable to the CEO for any issues that arise This position ensures the accurate implementation of the CEO's policies and guidelines while coordinating with the CEO on employee rewards and disciplinary actions Additionally, the Vice Director has the authority to represent the CEO in signing economic contracts and is responsible for organizing and managing the branch to ensure effective operations in compliance with legal regulations.
At Glotrans Da Nang, the Vice Director of the Customer Service Department goes beyond basic responsibilities by actively engaging in Pricing and Import-Export tasks, ensuring timely project execution and delivering exceptional service to customers.
3.1.2.3 Vice Director of Sales Department
The Vice Director of the Sales Department plays a crucial role in supporting the CEO by managing and executing the company's business and marketing initiatives This position involves setting goals and policies for the department while being accountable for the branch's business outcomes Additionally, the Vice Director collaborates closely with the Sales Leaders Team to provide targeted guidance and solutions, ensuring optimal business performance for the company branch.
3.1.2.4 Sales Department a Sales Leader Team:
The Sales Leader Team plays a crucial role in overseeing the Sales Department's operations, focusing on business activities, market analysis, and strategic planning to enhance sales and secure contracts for the company They motivate sales staff to actively seek potential customers, engage with them, and effectively promote the company's services, ensuring a robust sales strategy that drives revenue growth.
Sales staff play a crucial role in driving revenue for the company by actively engaging with potential customers and promoting the company's services They are tasked with identifying market opportunities and building a strong customer base Upon receiving customer inquiries, sales personnel effectively relay essential information to management and collaborate with other departments to ensure timely service delivery Additionally, they are responsible for overseeing the production process and keeping customers updated on shipment status to maintain transparency and satisfaction.
3.1.2.5 Customer Service Department a Pricing Staff:
The role involves communicating with international shipping lines and airlines to obtain freight rates, negotiate pricing, and verify cargo availability and container status Additionally, it includes checking shipping schedules to provide timely information to customers via the sales team.
Our team expertly manages shipments imported to and exported from Da Nang, ensuring compliance with national regulations and customer requirements We handle the examination and issuance of essential documents for import and export operations, while effectively resolving any issues that may arise between company branches, clients, foreign agents, and shipping lines Additionally, we maintain close coordination with our network of international agents to ensure the seamless processing of all shipments.
To ensure a seamless import-export shipment process, operations staff play a crucial role by managing essential tasks These include receiving documents from the Sales Department, handling tax payments, and clearing customs They are responsible for picking up imported goods from various locations such as customs branches, ICDs, seaports, and airports Additionally, operations staff assist with documentation requests like Certificates of Origin (C/O) and Certificates of Quality (C/Q), support goods inspection and classification, and navigate specialized management procedures They also directly declare shipments using ECUS/VNACCS or provide support for customs clearance documentation when needed.
The Finance Accounting Department is essential to the operational success of the company's branch, handling key tasks such as verifying import-export documents, reconciling bills within the software, and accounting for import and export activities of designated goods They are responsible for data comparison and record summarization in compliance with regulations, maintaining all necessary documentation, and monitoring customer debts to ensure a smooth and transparent cash flow Additionally, the department supports other teams as needed and addresses any tasks assigned by the CEO.
The company's resources
Glotrans Da Nang is currently leasing three office rooms located on Ngo Quyen Street in Son Tra District, Da Nang City, conveniently near Tien Sa port, enhancing its goods transportation operations The office's box-shaped design fosters closer business interactions, streamlines workflow, and increases efficiency, ultimately allowing the company to deliver higher quality services to its clients.
Glotrans operates a comprehensive computer network throughout the organization, complemented by an official website that offers detailed insights about the company Most employees utilize personal computers for their tasks, while a centralized informatics system fosters focus and cohesion To enhance security, the firm has implemented new security equipment, a customer information management system, and an antivirus solution, addressing potential security risks Additionally, the office is well-equipped with a full range of business stationery.
Name of assets Quantity Uni t
Table 3.1: Facilities for business of Glotrans Da Nang in March 2022
(Source: Annual Report of Glotrans Da Nang)
The total number of employees of Glotrans Da Nang is 16, including 6 male and
10 female The labor structure of the company is:
Classification of labor Number of employees Ratio %
Table 3.2: Labor structure of the company in March 2022
(Source: Annual Report of Glotrans Da Nang)
All personnel at Glotrans Da Nang have received training in the basics of forwarding activities to enhance company performance Each employee has acquired specialized practical experience and a strong motivation to excel in their roles Responsibilities are assigned based on individual expertise, ensuring that each team member is positioned within a division that aligns with their specialization.
3.4.3 Business performance of Glotrans Da Nang
The business performance of Glotrans Da Nang from 2019 to 2021:
Sales revenue and service provision
Table 3.3: The business performance of Glotrans Da Nang from
(Souce: Accounting department of Glotrans Da Nang)
Overall, Glotrans Da Nang's revenue and profit have risen relatively in the last 3 years, that is a good sign for a representative branch that has only been established for five years
From the table above, it can be seen that the profit after tax of the company in
In 2019, Glotrans Da Nang achieved a record revenue of VND 1,418,183,922, largely due to successfully attracting more customers and managing a diverse range of imported goods under EXW and FOB terms This strategic approach enabled the company to enhance profitability through increased sea and air freight bookings, while also creating opportunities to offer customs clearance services and inland transportation solutions.
Entering the year 2020, the outbreak of the Covid 19 pandemic around the world caused a decrease in import and export activities, significantly affecting Glotrans Da
Nang's business activities, making the revenue and profit of the company considerably reduced.
In 2021, Glotrans Da Nang experienced a gradual recovery in its business activities, achieving a profit after tax of VND 1.35 billion The Director of the Vietnam Institute of Economics highlighted that import and export growth was a significant contributor to the macroeconomic landscape, driven by the Vietnamese Government's strategic direction, active involvement from various ministries and local authorities, and the business community's efforts to navigate challenges This resulted in a remarkable total turnover of USD 668.5 billion, reflecting a 22.6% increase from 2020 However, concerns remain regarding the sustainability of this economic recovery amid ongoing fluctuations, prompting Glotrans Da Nang to develop plans and strategies to enhance its commercial operations in the coming years.
3.4.4 Competitive situation of the company
With the advancement of globalization, the ease of trading goods between countries has surged, leading to a heightened demand for freight forwarding and transportation services Consequently, Da Nang is witnessing a rapid growth in logistics companies, intensifying the competitive landscape in the industry.
In Da Nang, numerous established firms like Vinatrans, Asiatrans, and Vietfracht dominate the freight forwarding and transportation sectors, making it challenging for Glotrans Da Nang to attract clients and compete on pricing Nevertheless, leveraging the expertise of its parent company, Glotrans Hai Phong, and the dedication of its dynamic team, Glotrans Da Nang is committed to delivering high-quality services at competitive rates This commitment has earned them a reputation as one of the top ten logistics companies in Da Nang According to Yellowpages, a reputable business assessment platform in Vietnam, Glotrans Da Nang has received a three-star rating for service quality, ranking just behind larger corporations such as Vien Duong, Transimex, and Viconship.
CHAPTER 4: THE CURRENT SITUATION OF
STRATEGY FOR IMPORT FREIGHT FORWARDING
SERVICE AT GLOTRANS DA NANG
Promotional program
The promotional mix serves as the essential communication tool within promotional programs, particularly for companies offering import freight forwarding services It is crucial to assess whether the company has established a promotional program and to analyze the effectiveness of its execution.
Glotrans Viet Nam lacks a dedicated marketing department, leading the sales team to oversee promotional activities under the board of directors' guidance However, these activities are mostly executed independently, lacking a systematic or documented approach Notably, this section highlights the company's efforts to communicate effectively with consumers and deliver value through its import freight forwarding services, rather than detailing a comprehensive promotional campaign from Glotrans Da Nang.
Glotrans Da Nang specializes in loading and discharging commodities via sea and air, catering primarily to B2B enterprises engaged in import freight forwarding Their clients include companies that require transportation or distribution of goods from global ports to Vietnam through various modes such as sea, air, or rail Additionally, Glotrans Da Nang handles the transportation of oversized, heavy, fragile, and valuable items, as well as providing comprehensive door-to-door services.
When Glotrans Da Nang conducts promotional efforts, the firm, like any other, always has a set of objectives in mind
Glotrans Da Nang focuses on building lasting relationships with its customers through targeted promotional activities This includes sending direct-mail marketing to express gratitude for using their import services at the end of each contract and regularly emailing reminders about their import freight forwarding services.
For potential customers, the firm uses promotional efforts to introduce its services to their target customers urge them to buy the product through advertising or personal selling.
Glotrans Da Nang aims to enhance its public image as a key promotional objective, which enables the company to secure favorable media coverage for press releases and spokesperson communications This strategy includes generating communication reports on company performance, integrating social initiatives with advertising efforts, and fostering positive public sentiment while engaging with diverse media outlets.
Glotrans Da Nang may not have a unique message specifically for its import freight forwarding services, but it has crafted a set of universal messages that effectively communicate the value of all its services to both external consumers and internal partners.
Glotrans boasts a dedicated leadership team and a skilled staff that actively embraces constructive feedback, fostering a culture of continuous learning and creativity to deliver exceptional customer service With a robust network of branches, representative offices, and global agents, Glotrans is committed to providing timely, comprehensive, and professional services to all clients.
Besides, the slogan of the company is:
Glotrans Da Nang emphasizes its commitment to high service quality and operational efficiency in its promotional activities The company showcases evidence of seamless procedures from loading to customer delivery, reinforcing its credibility in the market As a trusted partner, Glotrans Da Nang builds strong relationships with import enterprises, ensuring reliable support throughout the logistics process.
This message shows that the company is using “rational appeals” - with the rationale affirmation that the firm provides the ideals and services that customers desire.
Glotrans Da Nang effectively communicates its commitment to reliable and comprehensive import forwarding services through clear and precise information By providing clients with detailed insights on costs, transportation methods, customs declarations, and additional services such as storage and inland trucking, the company enhances customer understanding of the entire forwarding process This transparency fosters trust, encouraging clients to confidently entrust all their forwarding activities to Glotrans Da Nang.
The message is designed in similar shapes but with different colors than the company's logo and name, featuring a minimal size placed at the bottom of the graphic for easy overlook It is exclusively available on the Facebook page, not visible on catalogs, banners, websites, or printed materials, and is positioned in a hard-to-see location on the page.
Figure 4.1: The cover photo of Glotrans’s facebook page
Currently, Glotrans Da Nang uses both personal and non-personal channel for promoting its import freight forwarding service to customers
High service charges are a defining feature of logistics services, particularly in the risky import market where personal influence significantly impacts import freight forwarding To effectively advertise their services, companies primarily rely on personal communication channels that prioritize individual feedback Glotrans Da Nang utilizes various personal channel tools, including face-to-face meetings with customers at locations like coffee shops and restaurants, as well as traveling to other cities for forums and conferences During an internship, the Vice Director of the Sales Department, Mr Vo Van Phuc Quy, exemplified this approach by visiting Quy Nhon to connect with potential clients Additional personal channel tools include telephone calls, emails, brochures, and social media platforms such as Facebook, WeChat, Zalo, Telegram, and Skype While Glotrans Da Nang primarily engages through personal channels, other channels like expert or social channels are not actively employed but arise organically as customers share their experiences.
Non-personal channels are recognized for their widespread reach and significant influence; however, the company does not prioritize these tools extensively A detailed exploration of these non-personal channel tools will be provided in the upcoming section on the Promotional Mix.
As mentioned before, the promotional activities of Glotrans Da Nang are primarily carried out individually, without systematic or a documented plan; therefore, although certain activities have budgets, others do not.
Glotrans Da Nang employs the Objective-and-task technique to develop its advertising budgets, beginning by defining specific objectives and the necessary actions to achieve them The company then assesses the costs associated with these tasks, resulting in a comprehensive budget that reflects total expenditures While this approach effectively links promotional outcomes to spending, it can be complex for budget creators to outline all responsibilities and manage adequate funding.
Glotrans Da Nang does not maintain a fixed budget for personal selling activities, such as phone calls and meetings; instead, costs are determined by the implementation of these activities, after which the company reimburses all personnel involved.
The effectiveness of Glotrans' promotional programs has not been adequately assessed, as there is a lack of focus on measuring the execution of marketing policies While evaluating marketing effectiveness can be done through annual reports, Glotrans only provides vague conclusions without specific comparative data to support their outcomes.
Promotional mix
Glotrans Da Nang currently focuses on using some of the following promotion tools: Personal Selling, Direct Marketing, Public Relations, and Advertising.
Glotrans Da Nang aims to effectively persuade potential customers to utilize their import freight forwarding services through personal selling, which not only provides essential information but also fosters strong relationships and trust This approach is prioritized over other marketing tools due to its ability to directly connect with consumers in need of import services, resulting in significant sales opportunities and revenue generation With a dedicated team of seven experienced professionals, Glotrans Da Nang is steadily growing its loyal customer base, as both import and export staff actively engage in personal selling efforts to promote the company’s services.
Telephone sales serve as a crucial support tool for personal selling, complementing face-to-face interactions This approach allows salespeople to quickly engage with potential customers using resources like Import Genius, Alibaba, and 52wmb to identify leads By gathering essential information about customers' import countries, transportation methods, terms, and volumes, staff can tailor their approach They strive to understand each customer's unique needs and arrange direct meetings with new clients This enables them to provide personalized consultations and recommend suitable freight forwarding solutions, while also regularly checking shipping line prices to accommodate market fluctuations and ensuring competitive re-quotes for customers.
Mr Vo Van Phuc Quy, the Vice Director of the Sales Department, actively engages in personal selling during events like partner celebrations and branch openings He identifies potential consumers to promote the company's forwarding services During the author's internship, Mr Quy planned to attend the International Fair VIETBUILD in Da Nang on May 18, 2022, to connect with potential enterprises in the city.
Recruiting and training salespeople now focus on selecting individuals based on their skills and sales experience The company conducts regular training sessions, typically one to two times a month, covering a variety of essential topics These sessions include enhancing sales techniques, improving customer communication, mastering service sales, and effectively persuading clients to utilize the full range of services offered by the company.
Sales leaders will directly supervise and evaluate their team by monitoring the execution of tasks, assessing performance based on the final results achieved.
Personal selling at Glotrans Da Nang fosters direct communication, enabling the company to provide tailored information that meets the specific needs of import consumers, thereby enhancing customer loyalty This approach not only attracts a substantial customer base but also facilitates quick resolution of complaints and unexpected issues Additionally, sales staff can gather immediate feedback on customer preferences and assess results directly While this method may incur higher costs compared to other strategies, its effectiveness in building relationships and driving success is evident.
The company's training initiatives aim to enhance staff knowledge, particularly for sales personnel, by equipping them with essential professional insights about their services and related departmental information Despite the high costs, these efforts have yielded substantial benefits, including improved customer interactions, a strengthened sales force, and enhanced employee skills.
Figure 4.2: Telephone sale activity at Glotrans Da Nang
(Source: Taken by the author in her internship)
Some direct marketing tools that Glotrans Da Nang applies:
Glotrans Da Nang promotes through direct mail for existing and potential imported customers.
In our appreciation letter to existing customers, we express gratitude for their trust in Glotrans Da Nang's import services upon the completion of their contracts We encourage them to continue their partnership with us by renewing their contracts or exploring new service options, ensuring they benefit from our reliable and efficient offerings.
Da Nang's sales team regularly sends out a company brochure alongside their correspondence, typically every three months This practice involves mailing letters of introduction and the Glotrans Da Nang brochure to former clients, reminding them of the import freight forwarding services offered Direct mail is tailored based on the information available in their client list.
Sales staff often reach out to potential customers via email, providing detailed information about import services, including rates, available equipment, and facilities, along with a PDF of pricing To enhance persuasion, this communication is usually accompanied by a brochure from Glotrans Da Nang The organization utilizes Outlook for these email communications, with each employee using their individual accounts to connect with customers.
Figure 4.3: Offer email sample of Glotrans Da Nang
(Source:Author’s email to potential customers)
Glotrans Da Nang effectively uses telemarketing to engage potential consumers interested in import services Their sales team reaches out via phone and the Zalo app to assess customer needs, gather relevant information, and present their import services Following these interactions, they send email quotations to persuade customers to utilize their services.
Glotrans Da Nang's sales representatives engage with customers both at their department and on-site at customer companies They utilize telephonic communication as an interactive method to reconnect with existing clients, aiming to encourage them to sign new contracts and provide updates on recent enhancements in import operations and services.
Glotrans Da Nang currently lacks a unique catalogue for its import services, providing only a brochure that details key offerings like international sea and air freight Each year, the Sales Department allocates part of its promotional budget to produce and distribute these brochures in both printed and digital formats.
Glotrans Da Nang's latest brochure highlights the company's key services, with a detailed two-page section on international sea and air freight The remaining pages cover additional services, missions, and partners Available in both English and Vietnamese, the brochure caters to both international and local clients Glotrans Da Nang ensures widespread distribution by delivering brochures through direct mail and placing them in corporate offices, especially in high-traffic customer areas.
Figure 4.4: The brochure of international sea/air freight of Glotrans Da Nang
(Source: Glotrans Da Nang’s brochure)
Glotrans Da Nang has effectively utilized direct marketing tools to enhance staff connectivity with consumers, allowing employees to efficiently deliver exceptional sales and customer service To further optimize customer interactions in today's high-tech environment, the company should consider expanding its use of modern direct marketing strategies, including social media platforms such as Facebook, TikTok, Instagram, Twitter, LinkedIn, and Quora, as well as SMS marketing and newsletters.
Glotrans Da Nang has arranged some remarkable programs and activities for public relations.
Evaluate the company’s promotion policy situation
The company's promotion policy situation can be evaluated through the achievement of set goals
Glotrans Da Nang aims to foster long-term relationships with its existing customers through a foundational promotional mix However, the company has not fully leveraged direct marketing, missing out on modern tools that are essential in today’s high-tech landscape.
To effectively introduce its services to potential customers, the company has assembled a team of experienced transportation professionals to meet the increasing demands of import freight forwarding and logistics operations However, there is a lack of focus on identifying potential import clients in Da Nang city, where the company is headquartered Additionally, the advertising strategies currently in use have not been fully explored, resulting in operations that are merely at a maintenance level.
The company effectively cultivates a positive public image, yet it should enhance its public relations strategy by investing in additional tools such as corporate social responsibility (CSR) initiatives These efforts can showcase the company's commitment to social values and foster a stronger connection with the community Additionally, organizing customer conferences could further strengthen genuine relationships with clients, reinforcing a favorable perception of the brand.
Aside from all these evaluations, there are also some difficulties that the company must address:
Glotrans Viet Nam's promotional program lacks a dedicated marketing department, leading to individual, uncoordinated activities without a formal plan While this structure allows for greater employee flexibility in addressing unforeseen challenges, it also results in inconsistencies in messaging and execution, as well as potential conflicts among team members.
Glotrans Da Nang currently utilizes its promotional mix tools in isolation, lacking coordination and collaboration to create a cohesive strategy Additionally, the company has not prioritized measuring the effectiveness of its promotional activities, which is essential for identifying inefficiencies and fostering a unified approach to marketing efforts.
Glotrans Da Nang recognizes the need to enhance its promotional efforts, particularly for its import freight forwarding services, to ensure survival and growth in today's competitive market A comprehensive understanding of the promotional mix is essential for the firm, as effective marketing strategies serve as a foundation for the success and sustainability of all business operations.