The company overview
In Vietnam, wearing uniforms is mandatory for students in primary and high schools, and many businesses also require employees to don uniforms Despite the established market, there are few reputable providers of high-quality uniforms for educational institutions and companies To address this gap, Viet Phat Uniform Company Limited was founded in late 2018, aiming to meet the diverse needs of customers, capture significant market share in this niche, and establish itself as a leading uniform brand in Vietnam.
Figure 1.1 The organizational chart of Viet Phat
The company's board of directors (B.O.D), comprised of two members, is tasked with making crucial investment decisions and developing business strategies The Chief Executive Officer (CEO) oversees all company operations, collaborates with the B.O.D on strategic planning, communicates with various departments to ensure alignment with company goals, and coordinates with manufacturers to support business objectives.
Viet Phat, a newly established company, is currently led by its CEO, who is taking on multiple roles to minimize costs, particularly in marketing She is focused on building the company's reputation through various marketing activities, including advertisements and campaigns, while generating innovative ideas to promote Viet Phat and its products Additionally, an accountant manages the limited accounting tasks at this early stage, while three sales staff members are dedicated to reaching out to potential customers, enhancing sales revenue, and expanding the customer network by showcasing the benefits of partnering with Viet Phat.
Viet Phat is a startup specializing in uniforms for schools and businesses, strategically offering a 30% discount to attract customers, surpassing the 25% discount offered by competitors Focused on high-quality materials and attractive designs at competitive prices, Viet Phat primarily targets schools in Vietnam, benefiting from the annual influx of new students that ensures stable orders and income While initially concentrating on the educational sector, the company plans to expand its services to businesses once it establishes a solid market presence Acting as an intermediary, Viet Phat connects customers with manufacturers, managing orders and ensuring quality control The company is committed to addressing any product issues in collaboration with manufacturers to maintain high standards.
Problem context
Vietnam's garment sector has experienced rapid and sustainable growth, significantly contributing to the country's socio-economic development, with around 6,000 textile and garment manufacturing firms operating nationwide However, most manufacturers primarily focus on producing clothing for export rather than catering to the local market In 2016, Vietnam ranked as the 4th largest garment exporter globally, with well-known brands like Viet Tien, Nha Be, and Garco 10 leading the way in the export-oriented garment industry.
Figure 1.2 World Ranking Among the Top Garment Exporting Countries in 2016
(WTO Reports World Textile and Apparel Trade in 2017)
As major garment brands concentrate on the export market, the domestic market presents a lucrative opportunity for small businesses, particularly in niche areas such as uniform supply In Vietnam, the garment market is experiencing increased demand driven by rising incomes and improved living standards.
Vietnamese garment brands have significant opportunities if they embrace challenges and develop effective market strategies As a new entrant, Viet Phat faces several weaknesses, particularly in its marketing approach Marketing is crucial for introducing and promoting products to potential customers, yet Viet Phat has primarily relied on the owners' personal networks for customer acquisition This lack of a structured marketing strategy has hindered the brand's visibility, reputation, and market positioning, making it difficult to compete in a crowded marketplace where established rivals have already earned customer trust Competitors may offer inferior products but excel in communicating their value through robust marketing tactics, such as social media advertising, dedicated websites, and promotional campaigns Without a solid marketing strategy, Viet Phat risks remaining unnoticed, even if it offers superior products in its niche.
PROBLEM IDENTIFICATION
Symptoms analysis
Viet Phat aims to expand its customer base but currently relies heavily on the owner's personal relationships, resulting in only six existing clients, all of which are schools This lack of diverse marketing strategies limits their ability to attract new customers and grow sustainably in the market While personal connections can facilitate initial business, they are not a viable long-term strategy for expansion.
Nguyen Van Thanh Primary School 2
Dong Den Secondary School Binh Chanh
Hung Long Primary School Binh Chanh
Table 2.1 Viet Phat’s customers list
Viet Phat's lack of marketing activities has resulted in low brand awareness among potential customers, preventing them from understanding the benefits of its products and services Consequently, the company struggles to reach its target audience and loses numerous customers who are unaware of the advantages of doing business with them A survey revealed that none of the interviewees recognized the Viet Phat brand, highlighting the urgent need for effective marketing strategies to increase visibility and customer engagement.
Many respondents were unfamiliar with Viet Phat, lacking knowledge about its services and products For instance, one individual mentioned considering well-known uniform brands like Saigon Uniform and Dony Uniform, but had no awareness of Viet Phat.
At our logistics company, employees are required to wear uniforms from Monday to Thursday, while Fridays allow for casual attire The uniforms provided are from well-known brands, Dony Uniform and Saigon Uniform, which are recognized for their popularity in the uniform market, as confirmed by my friends.
Then she was asked that how she had known those brands, and she replied:
"My company selected these partners to supply our uniforms I found their advertisements on social media platforms like YouTube and Facebook to be quite engaging After researching them online, I discovered a wealth of information on their websites that significantly enhanced my understanding of their offerings." (Ms Vy Vo, 29, employee of a logistics company)
Despite efforts by sales staff to introduce Viet Phat's products, their reach is limited, resulting in low brand awareness and goodwill in the market Typically, a sales representative engages with only 15 to 20 potential customers, but not all respond or take the time to engage This lack of brand recognition significantly impacts sales performance, as one staff member noted the challenge of convincing customers to listen or meet without prior knowledge of Viet Phat Consequently, some sales staff experience discouragement and a diminished desire to continue their roles.
Mr Binh Vo, a sales representative at Viet Phat, expressed his dedication to persuading customers to partner with the company However, many potential clients were hesitant, citing a lack of familiarity with Viet Phat and concerns about the quality of the products offered.
Ms Minh Le, a sales representative at Viet Phat, faced challenges in persuading customers due to a lack of brand recognition, as they were unfamiliar with the company and hesitant to trust her claims.
Viet Phat has yet to invest in digital marketing, lacking a dedicated website that customers can use to find information about the company In today's digital age, potential clients typically search online for details before deciding to engage with a business; without an online presence, Viet Phat risks being perceived as unreliable While competitors have established websites to showcase their offerings, Viet Phat's absence in this area leads customers to favor rivals Although the company maintains a Facebook page, it features minimal activity and unengaging content, resulting in low customer interaction and a limited follower base.
Figure 2.1 The number of people approach posts on Facebook page
Figure 2.2 The number of followers on Facebook page
Figure 2.3 The interaction of people on Facebook page
The CEO appears to prioritize other responsibilities over developing the Facebook page, resulting in limited marketing efforts To cut costs, the company refrains from advertising on popular online platforms, which hampers its ability to reach potential customers During the interview, the CEO expressed a desire to engage in more marketing activities, but her numerous obligations prevent her from dedicating sufficient time to these initiatives.
Problem analysis
Marketing is the cornerstone of any business, as it drives activities essential for selling products or services and generating profits Viet Phat's marketing strategy appears ineffective, primarily due to the owner's lack of proactive customer outreach The company has relied heavily on personal relationships to build its customer network, which one of the owners acknowledges as a limitation in their approach.
As a co-owner of Viet Phat, my role involves expanding the business by identifying ways to attract new customers, guiding its growth, and overseeing operations However, Viet Phat currently relies heavily on my personal connections to connect with clients, lacking a strategic approach to reach potential customers and showcase our products effectively.
Despite efforts to promote its products through sales staff and a Facebook page, Viet Phat has struggled to attract new customers The lack of engagement and low follower count on their Facebook page indicates that these marketing strategies are ineffective Currently, all new customers are referred by the owner, as confirmed by the CEO, who oversees the company's marketing activities She acknowledged that the existing marketing efforts, including the Facebook presence and sales staff, have not yielded positive results for the company.
Despite ongoing marketing efforts such as posting on Facebook and direct product introductions by sales staff, Viet Phat has not seen positive outcomes According to Ms Van Le, CEO of Viet Phat, these strategies fail to attract new customers, as there has been no engagement from potential clients through social media or sales interactions.
Effective communication of the value and benefits of products is crucial for successful marketing strategies, as it directly impacts the ability to attract new customers Currently, Viet Phat lacks a website and does not utilize online advertisements, which hinders its efforts to introduce its products to potential customers.
2.2.1.2 Higher price and poor products’ quality
In today's competitive market, businesses strive to provide high-quality products at competitive prices, a demand echoed by customers Viet Phat faces scrutiny regarding its pricing strategy compared to rivals, particularly if its product quality meets expectations However, customer feedback indicates satisfaction with Viet Phat's offerings, highlighting the use of high-quality materials, excellent craftsmanship, and competitive pricing.
Ms Quynh Truong, a quality control employee at a high school, expressed her surprise and satisfaction upon receiving uniforms from Viet Phat She noted that the products were crafted with high-quality materials and offered at competitive prices, despite Viet Phat being a new player in the market.
Mr Phu Tran, vice president of a high school in Ho Chi Minh City, expressed satisfaction with Viet Phat's uniforms, highlighting their beautiful seams, high-quality materials, and competitive pricing compared to previous suppliers.
While schools and businesses sign contracts with Viet Phat, they are not the final consumers of the products In the case of schools, students are the ultimate users, and it is the parents who actually purchase these products As highlighted by Ms Tuyen Nguyen, a principal of a high school in Ho Chi Minh City, this dynamic illustrates the importance of understanding the end-users in the educational sector.
Last year, our school faced significant issues with uniform inventories due to poor quality from our previous supplier As a result, many parents opted to purchase uniforms from external retailers, applying the school's logo themselves Consequently, we now have a substantial surplus of unsold uniforms from the previous year.
In today's competitive market, customers have numerous options for purchasing products, prompting Viet Phat to prioritize high-quality offerings at affordable prices Previously, schools relied on specific uniform providers, but now many have chosen Viet Phat as their supplier The company has committed to maintaining competitive pricing similar to that of previous providers while delivering equal or superior quality As a result, Viet Phat effectively meets customer needs, ensuring that its products consistently satisfy their expectations.
2.2.1.3 Poor training for sales staffs
Salespersons are vital in business as they directly interact with customers, making training essential for success, especially for a new company like Viet Phat All sales employees undergo training in selling skills led by Mr Tu Nguyen, a seasoned sales manager with five years of experience During a recent training session, Mr Nguyen noted that the staff performed well, demonstrating attentiveness and a commitment to retaining the information shared.
Mr Tu Nguyen, a sales trainer at Viet Phat, emphasizes the importance of sharing essential knowledge and skills with sales staff During training sessions, he observed that participants were highly engaged, actively listening, taking notes, and making efforts to retain the information for future discussions.
Three sales staff members identified several reasons why customers often decline to partner with Viet Phat Key factors include existing contracts with other uniform suppliers, a lack of familiarity with Viet Phat leading to trust issues, and unsold uniform inventory from the previous year.
Mr Binh Vo, a sales representative at Viet Phat, expressed his challenges in persuading customers to collaborate with the company He noted that potential clients were unfamiliar with Viet Phat and expressed concerns about the quality of its products.
CAUSE ANALYSIS
Potential causes
3.1.1 Lack of attention from the board of directors (B.O.D)
Viet Phat's marketing strategy currently lacks a clear direction, resulting in ineffective marketing activities This raises concerns about the Board of Directors' attention to the development of the marketing strategy When questioned about their focus on this issue, one of the owners of Viet Phat provided a response.
Viet Phat, a new business, is focused on enhancing its marketing strategy to increase brand awareness and attract more customers To minimize costs in the early stages, the company aims to leverage existing relationships to build a customer network Despite having a dedicated marketing employee, the current efforts have not yielded satisfactory results for the company, as expressed by Mr Quang Dang, one of the owners.
Mr Quang Dang highlights that the Board of Directors (B.O.D) of Viet Phat has focused on developing a marketing strategy, but it has not garnered significant attention due to high costs The B.O.D's emphasis on expanding the customer network through personal relationships has hindered the establishment of a clear marketing strategy Instead of a structured approach, the company tends to implement actions based on individual perceptions of what might positively impact Viet Phat In an interview regarding the existence of a marketing strategy and activities, the head of the marketing department provided insights into their current practices.
Viet Phat currently lacks a long-term marketing strategy, focusing instead on short-term ideas generated through brainstorming sessions Ms Van emphasizes that the team evaluates these concepts based on their potential and then proceeds to implement them.
Le, CEO and the one in charge of marketing aspect of Viet Phat)
The Board of Directors has prioritized the marketing department's efforts to promote Viet Phat's products and brand to customers; however, these initiatives may be insufficient due to the challenges faced during the initial phase of the new business.
Viet Phat, as a new business, faces significant resource challenges, particularly due to its limited capital, which stems from having only two owners without external investors This financial constraint hinders the company’s ability to invest adequately in essential areas, such as marketing, where it struggles to promote its products and develop a comprehensive marketing strategy Effective marketing requires substantial financial investment, time, and human resources, making it difficult for Viet Phat to allocate the necessary resources to build a strong brand presence.
Mr Quang Dang, one of the owners of Viet Phat, acknowledges the limited financial resources available for investment, emphasizing the risks involved in seeking large capital for projects or marketing campaigns at this early stage He highlights their commitment to utilizing existing funds for operations, while expressing openness to welcoming additional investors once the company reaches a stage of sustainable growth.
Human resources are crucial in developing an effective marketing strategy, as qualified employees directly execute these tasks However, Viet Phat, being a new business, struggles to attract skilled workers due to its inability to offer competitive salaries and benefits To cut costs, the Board of Directors has assigned the CEO to oversee the marketing department, making her responsible for all marketing activities.
Viet Phat faces challenges in attracting qualified employees due to its status as a new and small business, which limits its ability to offer competitive salaries and benefits To address these challenges and reduce costs during the initial phase, the Board of Directors has decided that CEO Ms Van Le will also oversee the marketing department.
To effectively develop her business, she must take charge of all marketing efforts While she can propose valuable marketing activities and strategies, they may not necessarily align with Viet's specific needs.
Viet Phat faces challenges in developing an effective marketing strategy due to a lack of support and resources While the company engages in activities like Facebook advertising and product promotion through sales staff, these methods may not yield optimal results As a new business, Viet Phat has limited time to conduct thorough market research, which hinders its ability to create a robust marketing plan essential for growth and success.
The marketing strategy at Viet Phat may be lacking due to the responsibility resting solely on Ms Van Le, who serves as both the CEO and the marketing lead While she holds a Master of Business Administration (MBA), which equips her with the knowledge to develop effective marketing strategies and implement suitable activities, there are concerns about her expertise in this specific area One of the owners of Viet Phat has expressed that the effectiveness of their marketing efforts hinges on her capabilities.
Mr Quang Dang, one of the owners of Viet Phat, emphasizes the value of her expertise, noting her MBA graduation and four years of management experience, complemented by a year in the marketing department, which enhances her understanding of key marketing aspects.
Ms Van Le possesses the capability to lead the marketing department; however, her reliance on herself for all marketing activities is excessive, as she lacks support Additionally, her responsibility for managing all company activities consumes significant time, leading to diminished focus on marketing efforts.
As the CEO and head of the marketing department at Viet Phat, Ms Van Le faces numerous daily responsibilities that consume much of her time, leaving little opportunity to focus on marketing efforts Despite her desire to engage in more strategic marketing activities and develop innovative ideas to attract customers and enhance brand promotion, her busy schedule often hinders the execution of these initiatives.
Initial Cause-Effect Map
Figure 3.1 The initial cause-effect map of Viet Phat
Main cause validation
According to Zahra and Pearce (1989), they said about the role of the B.O.D:
The board of directors (B.O.D) plays a crucial role in shaping a firm's mission and strategy, as well as establishing guidelines for effective implementation and control Their involvement can vary from collaborating with management to define strategic direction to merely approving management's proposals A survey conducted by Stiles highlights the diverse responsibilities held by the B.O.D within the company.
Table 3.1 The role of B.O.D from the interview’s result (Journal of Management
The Board of Directors (B.O.D) holds numerous responsibilities, with their primary focus being strategic involvement A survey conducted by Stiles in 2001 assessed the frequency of the B.O.D's engagement in strategic matters, and the findings are presented in the table below.
Table 3.2 The board’s involvement in developing the corporate strategy (Journal of
The Board of Directors (B.O.D) plays a crucial role in determining a business's success or failure At Viet Phat, the B.O.D has prioritized marketing efforts to enhance business development and increase brand awareness among customers One of the owners emphasized the importance of these marketing activities in promoting the business effectively.
Mr Quang Dang, one of the owners of Viet Phat, emphasizes the importance of a strong marketing strategy for business development He highlights that effective marketing is crucial for increasing brand awareness and positioning Viet Phat in the market, ultimately helping to attract more potential customers.
The CEO of Viet Phat recognizes the significant advantages that a well-crafted marketing strategy can offer the company She consistently prioritizes marketing efforts, understanding their importance, but often faces challenges due to limited time and resources for developing an effective strategy.
As the CEO of Viet Phat, Ms Van Le emphasizes her commitment to advancing the marketing field and developing effective marketing strategies However, she faces challenges due to limited time and insufficient human resources, which hinder her ability to manage various tasks essential for aligning company activities with Viet Phat's future development goals The lack of support in the marketing sector presents significant obstacles to her strategic marketing efforts.
Moreover, when Ms Van Le was asked about the attention the B.O.D to the marketing aspect, she replied:
Ms Van Le, CEO of Viet Phat, emphasizes the company's strong focus on marketing, which requires her to dedicate significant attention to its development However, as a new business, Viet Phat is striving to minimize costs, resulting in limited resources that hinder effective marketing efforts.
In conclusion, the limited marketing activities of Viet Phat are not due to a lack of interest from its Board of Directors; rather, it appears they are eager to enhance these efforts but are constrained by insufficient resources.
Employees are crucial assets that drive organizational growth, as their contributions significantly impact business performance and achievements Effective employee performance can lead to successful outcomes on the first attempt, saving time and costs while fostering business development Conversely, poor performance can lead to customer dissatisfaction, prompting them to seek alternatives, and can create a negative work environment that affects other staff members This ultimately results in detrimental consequences for the company, including decreased sales, stalled tasks, and unnecessary expenses Therefore, hiring the right individuals is essential for steering the business toward future success.
Having strong, dedicated individuals can elevate a good manager to the status of a legendary leader As Chaves (12) emphasized, "finding the right people is critical to the success of organizations." In the marketing department, Ms Van Le currently operates without support, despite her impressive qualifications, including an MBA and four years of management experience, along with one year in a marketing role Her extensive knowledge, skills, and expertise position her well to handle the responsibilities of both the CEO and the marketing department, enabling her to effectively achieve the necessary objectives.
With an MBA and four years of management experience, she possesses valuable expertise that enhances our marketing efforts Her year in the marketing department has equipped her with a deep understanding of the field, allowing her to effectively oversee company activities Under her guidance, operations run smoothly, with minimal disruptions.
Additionally, when being asked about what the employees thought about Ms Van Le’s working performance, they replied:
During my time working with her, I felt a strong sense of empowerment as she entrusted me with decision-making rights and provided clear objectives to achieve This clarity enabled me to understand exactly what was required to meet those goals, allowing me to complete my tasks efficiently and effectively Overall, I believe her professionalism and strong soft skills greatly contributed to a positive work environment.
Ms Minh Le, a sales staff member, highlights her manager's expertise in management and marketing, particularly in enhancing employee satisfaction, which directly boosts productivity She appreciates the flexibility offered in discount ranges, allowing her to negotiate with customers while maintaining company policies Additionally, her manager provides valuable guidance on persuasive techniques and skills for effectively promoting products to clients.
Despite the selection of appropriate personnel for marketing roles at Viet Phat, the company faces challenges in executing effective marketing activities This indicates that the issue lies not in the choice of staff, but rather in the need for additional support from human resources to enhance overall performance.
Viet Phat, as a new and small business, faces inevitable resource constraints, particularly in the early stages where capital is stretched across various needs for maintenance and growth This limited financial capacity often hampers the ability to fully support all company activities, prompting a strong focus on cost-saving measures The lack of adequate human resources means that employees are required to take on multiple roles, leading to potential inefficiencies in their work Hiring and retaining skilled employees is crucial for business success; however, Viet Phat struggles with this due to its financial limitations For instance, the absence of a dedicated marketing department forces the CEO to juggle both management and marketing responsibilities, ultimately compromising the effectiveness of their marketing strategy and execution.
Final Cause-Effect Diagram
Figure 3.3 The final cause-effect map of Viet Phat
ALTERNATIVE SOLUTIONS AND ACTION PLAN
Alternative solutions
A survey conducted by Black (19) revealed that 76% of respondents recognize marketing as a vital component of their organizations, with 47% deeming it very important Additionally, 61% of participants acknowledged an increase in the significance of marketing over the past two years Furthermore, the survey indicated that among various marketing objectives, raising brand awareness is perceived as the most crucial goal.
Figure 4.1 The marketing objectives from 2018 to
Viet Phat is considering the establishment of a marketing department to enhance its marketing efforts, as it currently lacks one This proposed department would consist of a manager and two staff members dedicated solely to marketing activities, which could significantly increase brand awareness However, the implementation of this solution comes with a high cost, estimated at VND 20,000,000 to VND 22,000,000 monthly for salaries, including VND 8,000,000 to VND 10,000,000 for the manager and approximately VND 12,000,000 for the two marketing staff Mr Quang Dang, one of the owners, has been consulted regarding this initiative.
Establishing a marketing department is a beneficial idea, but it may not be suitable for Viet Phat at this moment due to limited sales revenue Currently, Ms Van Le possesses the necessary skills to manage marketing, making the immediate hiring of a marketing manager unnecessary It is advisable for Viet Phat to consider this option in a few years when the company achieves operational stability and has the resources to support a dedicated marketing team.
According to Ms Van Le, she shared:
Viet Phat should reconsider establishing its own marketing department due to the significant monthly costs involved, which could pose a financial risk given the current sales revenues While having a dedicated marketing team could be beneficial in the long run, it is not a suitable solution at this time Ms Van Le, CEO of Viet Phat, suggests that this strategy may be more appropriate in a few years when the company operates more efficiently.
In order to get an obvious view of this alternative solution, S.M.A.R.T method is used to define it below:
Specific: The company would like to establish a marketing department to implement marketing activities.
Measurable: It will hire a marketing manager and 2 staffs to conduct marketing activities It costs the firm roughly VND 20,000,000 to VND 22,000,000 every month to establish the marketing department.
As a small and emerging startup, the company has yet to establish its own marketing department, primarily due to budget constraints that prevent it from absorbing the significant monthly costs associated with such an initiative.
Relevant: It can develop marketing activities to create the brand awareness for customers, promote its products and brand, and expand the customer network.
Timely: This marketing department needs to operate at least 12 months to bring good results to the company.
Therefore, from above arguments, it can be stated that establishing a marketing department immediately is not a good alternative solution.
4.1.2 Investing more capital budget to conduct marketing activities
To build a successful marketing strategy, organizations require both human and financial resources, with finance being a strategic pillar that supports daily operations and expenses Marketers must not only focus on creating effective campaigns but also manage significant budgets allocated for these activities A clear budget helps companies track their marketing expenditures effectively Without sufficient funds, executing successful marketing campaigns becomes challenging Given the critical role of financial resources in marketing, increasing the capital budget for marketing activities is advisable for Viet Phat, although this proposal faces disagreement from its Board of Directors, as noted by Mr Quang Dang.
While allocating a sufficient budget for the marketing department is essential, merely increasing financial investment is not enough to create a successful strategy for Viet Phat Ms Van Le requires support from her team, making it crucial to prioritize human resources over financial resources to effectively meet the company's marketing objectives.
To implement this solution, Viet Phat needs to invest approximately VND 6,000,000 to VND 8,000,000 for outsourcing an agency to execute a Search Engine Optimization (SEO) project, which includes website design costs Additionally, around VND 10,000,000 per month is required for other marketing activities, such as printing brochures, social media advertising, and executing marketing campaigns to enhance brand image However, if the Board of Directors only allocates a capital budget without providing Ms Van Le additional staff support, she may struggle to effectively utilize these funds for all planned activities due to time constraints.
To express whether this solution is proper with Viet Phat, S.M.A.R.T method below will show:
Specific: The firm would like to invest more capital budget to conduct marketing activities.
Viet Phat invests approximately VND 6,000,000 to VND 8,000,000 to outsource an agency for a Search Engine Optimization (SEO) project aimed at increasing customer reach, which includes website design costs Additionally, the company allocates around VND 10,000,000 monthly for various promotional activities, such as printing brochures, social media advertising, and executing marketing campaigns to enhance its brand image.
The cost of designing a website and executing an SEO project is manageable for Viet Phat, as it is crucial for the company's success However, the high marketing budget is not justified without dedicated personnel to assist the CEO in implementing these marketing activities effectively.
Relevant: It helps the company be able to conduct more marketing activities to approach more potential customers.
Timely: It needs to be conducted at least 6 months to 12 months to see an obvious good consequences to the business’s operation.
Despite the critical importance of financial resources, allocating a larger capital budget for marketing activities and strategy development is not an effective solution for Viet Phat at this time.
4.1.3 Hiring employees to support marketing activities
While it's important for businesses to minimize costs during their early stages, a more effective approach is to allocate resources wisely Instead of reducing the budget for hiring additional employees, Viet Phat should invest in recruiting talented individuals to support its Board of Directors in managing operations efficiently Specifically, the company needs to bolster its marketing efforts by hiring more staff to assist Ms Van Le, who currently oversees marketing with only 1-2 team members Engaging with Mr Quang Dang, one of Viet Phat's owners, reveals his support for this strategic hiring initiative.
“I definitely agree with this alternative solution Hiring more employees to support
Ms Van Le plays a crucial role in the marketing strategy of Viet Phat, as the company aims to establish itself as a leading uniform brand in the market To achieve this goal, Viet Phat requires additional support in marketing efforts Implementing a well-defined marketing strategy and conducting targeted activities are essential for reaching customers and enhancing brand awareness.
Hiring 1-2 employees at Viet Phat incurs an average monthly salary expense ranging from VND 6,000,000 to VND 12,000,000, as noted by Mr Quang Dang.
Viet Phat currently requires just 1-2 marketing staff due to limited marketing activities Ms Van Le, who oversees the marketing efforts, seeks individuals with strong marketing backgrounds to assist her The budget for these positions is between 6 to 12 million VND per month, which is manageable for Viet Phat at this early stage, although higher salaries cannot be accommodated due to constrained capital.
This S.M.A.R.T method below will show the suitability of this alternative solution:
Specific: The business would like to hire more employees to support marketing activities.
Action plan
To enhance its marketing efforts, Viet Phat should consider hiring two additional employees to support Ms Van Le in developing and executing marketing strategies Current employees possess valuable insights into the company's needs, making their recommendations crucial for recruiting new marketing staff This approach not only streamlines the hiring process—allowing Ms Van Le to simply send an email to solicit referrals—but also reduces costs To incentivize employee referrals, Viet Phat can offer monetary rewards for successful introductions that lead to candidates passing interviews and remaining with the company for at least two months If current employees are unable to provide suitable candidates, Viet Phat can also explore recruiting recent graduates by collaborating with local universities and colleges to reach out to potential applicants through their communication departments.
Candidates should possess a solid marketing background to effectively contribute to building a successful marketing strategy While extensive experience is not a strict requirement, prior experience is advantageous for potential hires at Viet Phat The company prefers to recruit young individuals who bring fresh, creative ideas, are adept at identifying new market trends, and are eager to learn and embrace challenges This approach aligns well with the needs of a new and small business like Viet Phat, where trial and error are part of the growth process Young candidates will have the opportunity to innovate and implement practical solutions Specifically, one candidate will focus on digital marketing tasks, including website management and social media advertising, while another will oversee traditional marketing efforts.
40 | P a g e marketing including advertising on other channels and conducting marketing campaigns However, they have to support each other in working, especially
To support Ms Van Le in developing a robust marketing strategy, it is essential to prioritize digital marketing alongside traditional methods Digital marketing is recognized as a cost-effective and efficient approach to reaching a broader audience, especially given that over 3 billion people worldwide are active on social networks, a number that continues to grow annually Engaging with these platforms significantly enhances brand awareness According to We Are Social, the global penetration of social media is illustrated in the accompanying figure.
Figure 4.2 Social Media Penetration by Region in Jannuary
South-Eastern Asia ranks fifth globally in social media penetration, highlighting the critical need for Viet Phat to prioritize the development of digital marketing strategies.
Following the successful recruitment of employees, the immediate priority is to conduct training sessions Ms Van Le will lead the initial training, leveraging her deep understanding of the company's needs and offerings During this session, she will clearly communicate the company's current situation, including insights into its human resources and financial status.
55 | P a g e resource, the budget that can be offered to them to conduct marketing activities, its marketing and business goals, and
To enhance the marketing team's effectiveness at Viet Phat, it is essential to provide new staff with a clear understanding of the company and train them in vital marketing skills Following an initial training session, a second session should be held after 1 to 2 months to assess employees' strengths and weaknesses, led by an experienced external expert This ongoing training will empower employees to develop their expertise and contribute to building a comprehensive marketing strategy Collaborating with Ms Van Le, the team will implement marketing activities aimed at strengthening the brand image and increasing customer awareness, ultimately expanding Viet Phat's customer network.
The proposed solution should be implemented over a period of 6 to 12 months to ensure stable operations for the company During this time, the firm will encounter various challenges in establishing an efficient operational system, ultimately leading to cost savings for Viet Phat compared to setting up a marketing department in the early stages of the startup Throughout this period, Ms Van Le will serve as both the marketing manager and CEO, guiding her marketing team to develop and execute a successful marketing strategy aimed at rapid growth for Viet Phat The anticipated costs associated with this solution are detailed in the table below.
Reward for current employees if they can recommend successfully suitable candidates
Training session VND 5,000,000 – VND 7,000,000/session
Salary for marketing staffs VND 5,000,000 – VND 6,000,000/person per month Budget for executing marketing activities VND 50,000,000 – VND 70,000,000/year
Table 4.1 Costs forecasting for the solution of hiring more employees
To enhance recruitment and training, the company should incentivize current employees with VND 500,000 for each suitable candidate they recommend For training, inviting speakers who are willing to share their knowledge for a modest fee of VND 5,000,000 to VND 7,000,000 is advisable, as the firm cannot afford higher rates due to budget constraints Given that potential candidates are recent graduates or have 1-2 years of marketing experience, the salary offered should not exceed VND 6,000,000 per month, although annual raises will be available based on performance As a new and small business, extensive marketing campaigns are not essential; however, a consistent budget for marketing activities is crucial for success Therefore, Viet Phat is expected to allocate approximately VND 50,000,000 to VND 70,000,000 annually for the marketing team, with adjustments based on business performance.
Viet Phat, a new and small business, recognizes the urgent need to improve its marketing strategy To address this challenge, it is recommended that the company hire additional staff to assist the CEO in developing and implementing effective marketing activities This approach will ensure that the CEO has the necessary resources to focus on enhancing the marketing aspect of the business Therefore, recruiting more employees is the most viable solution for Viet Phat at this critical stage.
SUPPORTING MATERIALS
Interviewer: Le Ngoc Hai Trieu
Hai Trieu, an MBA student at the International School of Business (ISB), is conducting a thesis report on the uniform industry and is seeking data to support his research He expresses gratitude to the interviewee for taking the time to answer his questions and requests a brief introduction about themselves.
Interviewee: Hi, Trieu My name is Vy, 29 years old, and i’m a staff of a logistic company.
Interviewer: Well, does your company require employees wearing uniform?
At my company, employees are required to wear uniforms from Monday to Thursday, while Fridays are designated as "free style" days, allowing us to dress in our preferred attire as long as it remains appropriate for a professional setting.
Interviewer: Which company does manufacture your uniform?
The interviewee noted that the uniforms provided by their company are labeled with tags from Dony Uniform and Saigon Uniform Having worked for a logistics company for five years, they experienced a brand change after two years of employment Initially, they received uniforms from Dony Uniform, but after two years, the company transitioned to uniforms from Saigon Uniform, which are still in use today However, the interviewee is unaware of the specific reasons behind the switch in uniform brands.
Interviewer: What is your opinion about those uniform that from both Dony and Saigon uniform?
The interviewee believes that the uniform designs from both brands are appealing; however, they find the material of Dony uniforms to be inferior to that of Saigon uniforms, resulting in a lack of comfort when worn.
Interviewer: Do you or your friends know anything about those two brands?
Initially, I had limited knowledge about these brands, having only heard their names After discussing with friends, I learned that they are well-known in the uniform market, and my understanding of them has since grown.
Interviewer: How do you know about them?
My company selects partners to supply uniforms based on their engaging advertisements on social media platforms like YouTube and Facebook After discovering their intriguing ads, I researched them online and found extensive information on their websites, which greatly enhanced my understanding of their offerings.
Interviewer: Do you know Viet Phat uniform? Have you ever heard anything about it?
The interviewee expressed confusion about the topic, stating that it was unfamiliar to them They suggested that it might be a new product in the market or that its marketing efforts are lacking.
Interviewer: Thank you so much for your precious share Hope you will be successful in your career.
Interviewee: You’re welcome Hope that my information can help you accomplish your thesis.
Interviewer: Le Ngoc Hai Trieu
Mr Nam Tran Time: 11.30am – 11.50 am
In a recent interview aimed at gathering data for an MBA thesis, employees were asked to share their insights about the company The interviewer emphasized the importance of their feedback for future improvements and specifically sought to understand the challenges faced by the sales staff in their primary role of engaging with customers.
Mr Binh Vo expressed his dedication to persuading customers to partner with Viet Phat; however, many voiced their concerns, citing a lack of familiarity with the company and doubts about the quality of its products.
Ms Minh Le faced challenges in persuading customers due to their unfamiliarity with Viet Phat, which led to a lack of trust in her claims despite her training and expertise.
Mr Nam Tran: I have the same problems with my collaborates Customers do not trust me as they do not know anything about Viet Phat.
Interviewer: Except those reasons, have you ever faced any other problems when finding and dealing with customers?
Last year, several customers experienced issues with their uniform inventory due to previous providers delivering substandard products, resulting in excessive unsold stock This has led to concerns about whether new suppliers, such as Viet Phat, can meet their quality standards.
The interviewer noted that the company's brand awareness is lacking, but emphasized the importance of the candidates' skills and abilities To address this, Viet Phat invited Mr Tu Nguyen to provide training in sales expertise and skills The interviewer then asked the candidates about their learning experiences from Mr Nguyen and their opinions on his training methods.
Mr Tu Nguyen is an exceptional professional trainer and experienced sales manager, possessing extensive expertise in sales that greatly benefits his trainees Through his real-life case studies, I have gained valuable skills such as selling, communication, persuasion, and negotiation, which are essential for success in my job.
Mr Tu Nguyen is an exceptional sales manager with a strong background in sales knowledge and extensive experience His impressive performance and professionalism are evident as he utilizes real case studies to impart essential sales skills, including communication, problem-solving, and persuasion.
Ms Minh Le reflects on her training experience with Mr Tu Nguyen, highlighting the valuable skills and knowledge she acquired His engaging use of practical case studies and humor effectively alleviated stress during the sessions The training culminated in an exam designed to reinforce the material learned, which she believes is an effective method for employee development.
Interviewer: Do you feel confident after attending to the training courses?
Ms Minh Le: Absolutely confident I think I can use knowledge and skills trained to persuade customers.