Theoretical background on marketing mix for consumer goods

ACKNOWLEDMENTS My thesis could be impossible to be successfully accomplished without the valuable support of my supervisor, my directors, managers as well as my colleagues in Dong Anh pressure equipment j.s.c First of all, I would like to express my special thanks to my thesis supervisor –Prof Vu Minh Duc, for his patience, support as well as guidance while I was carrying out this research Furthermore, he was also willing to give me a wide range of intellectual advice and contributing comments which made a great contribution to help me achieve the best results Next, I would like to express my warm thanks to the committee members of my thesis trial defense because their guidance and assistance in reviewing and developing my research in order that I could complete my thesis as today From the depth of my heart, I also express my special thanks to the Board of Director 's Dong Anh pressure equipment j.s.c, who always spent his valuable time providing and sharing me with a great deal of useful information in relation to the current operation of the company At the same time, my colleagues were very enthusiastic and willing to help me anytime, and simultaneously motivate me throughout my study Many thanks are also due to my best friends and my classmates at EMBA15A for their warm friendship and supporting with many good memories Finally, I would like to express my deepest gratitude to my family and my friends for their encouragement and support for my thesis Thank you and wish you all happiness and success! Student Dao Son Tung TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION .3 1.1 Rationale 1.2 Research Objectives .4 1.3 Research Questions 1.4 Research Methodology 1.4.1 Research Process .5 1.4.2 Secondary data collection 1.4.3 Primary data collection 1.4.4 Data analysis 1.5 Research Scope 1.6 Research Structure CHAPTER 2: THEORETICAL BACKGROUND ON MARKETING MIX FOR CONSUMER GOODS .8 2.1 Marketing and marketing mix for consumer products 2.1.1 Marketing 2.1.2 Marketing mix 2.2 Elements of marketing mix for consumer products .10 2.2.1 Product 10 2.2.2 Price .16 2.2.3 Place 21 2.2.4 Promotion 23 2.3 Factors affecting marketing mix 28 2.3.1 External enviroment 28 2.3.2 Internal enviroment .28 CHAPTER 3: CURRENT SITUATION OF MARKETING MIX FOR BOILER AT DONG ANH PRESSURE EQUIPMENT JSC .31 3.1 Overview of Dong Anh pressure equipment and boiler .31 3.1.1 Overview of Dong Anh pressure equipment 31 3.1.2 Overview of boiler 34 3.2 Analysis of marketing mix for boiler at Dong Anh pressure equipment jsc 35 3.2.1 Market and target customers of the company's boiler products 35 3.2.2 Product policy 37 3.2.3 Price policy for boiler products .41 3.2.5 Promotion policy 45 3.3 Achievement and shortcomings 47 3.3.1 Achievements 47 3.3.2 Shortcomings and reasons .48 CHAPTER 4: RECOMMENDATIONS TO IMPROVE AND DEVELOP MARKETING MIX FOR BOILER AT DONG ANH PRESSURE EQUIPMENT JSC 51 4.1 Boiler's development orientation of Dong Anh pressure equipment jsc 51 4.1.1 The general development direction of the company .51 4.1.2 Develop the business of boiler products 53 4.2 Recommendations to improve and develop marketing mix for boiler at Dong Anh pressure equipment jsc 54 4.2.1 Market segmentation .54 4.2.2 Target market selection 55 4.2.3 Research and develop new boiler products 55 4.2.4 Improve the competitiveness of the price 56 CONCLUSION .57 REFERENCES .59 APPENDIX IN - DEPTH INTERVIEW WITH DIRECTOR .60 APPENDIX IN - DEPTH INTERVIEW WITH MARKETING MANAGER 61 APPENDIX IN - DEPTH INTERVIEW WITH 05 EXISTING CUSTOMERS .62 APPENDIX SURVEY FORM 63 SURVEY RESULTS 66 LIST OF TABLES Table 3.1: Products of DPE 33 Table 3.2: DPE's revenue from 2015 to 2017 34 Table 3.3: Some of DPE's major partners .37 Table 3.4: Some types of DPE boilers 39 Table 3.5: Price before and after the factory 42 Table 3.6: Expenditures for advertising boiler products in 2017 46 LIST OF FIGURES Figure 2.1: Marketing - mix model in the business 10 Figure 3.1 Organizational structure of DPE 31 Figure 3.2: Current distribution channel 43 Figure 3.3: The ratio of sales between direct sales and indirect sales 44 EXECUTIVE SUMMARY Dong Anh Pressure Equipment j.s.c is one of the companies that produce pressure equipment such as boilers, industrial valves in Vietnam With more than 27 years of development history, The company is currently developing sustainably, is gradually expanding the search for customers and expand market share in Dong Anh district and industrial parks in the neighboring provinces Extremely, in the competitive economic context, DPE now not only has to turn its forcus on the competition with domestic competitors but also foreign competitors Because most of companies focus on building brand name and brieng its brand closely to customers by many different marketing program Therefore, marketing mix is very important to each firm Boiler is a kind of equipment produced by DPE Boiler is evaluated as one potential product because of its high quality and clear market segmentation The aurthor was doing the research of marketing mix for this product useful and necessary for the manufacturing and processing enterprises such as confectionary enterprises, textile enterprises and a good marketing mix for this product will create many advantages for DPE to compete with other competitors Thus, the thesis aims to identify components of marketing mix applied to Boiler; to assess current marketing mix for Boiler; and to propose solutions to improve marketing mix for Boiler to increase its market share up to 2025 Base on theoretical framework of marketing mix and marketing mix components, primary and secondary data were used in the research The primary data were collected by in - depth interviews and surveys; secondary data were collected from the company reports, regulation, internet and magazine 120 sample were selected for the study but only 92 respondents were achieved (accounting for 76,7%) The four marketing mix components were discussed and analyzed With the analysis of survey result, it is possible to see that Boiler has reached some achievement during three year of being present in Ha Noi market They did gain certain brand awareness from their customers and received good comments from their customers However, there were outstanding shortcomings and possible reasons, which should be overcome by DPE loại đối thủ cạnh tranh tỏ ưa thích khách hàng Firstly, there are many boiler suppliers with large models and distributors Second is the price of the boiler products on the third DPE's trade promotion activities are not well organized, not attractive enough and result in not bringing more customers After all, the thesis offers some ways to improve and develop boilers marketing mix strategy as the ultimate aims of research Firstly, the company should design distinguishing products to differentiate from other products The products to be provided for the customers must be at the best quality, at the best design to attract more and more customers Secondly, the company should set up a flexible price policy by analyzing the competitors well, determining the best product cost and determining pricing objectives Thirdly, the comny shoud expand theri distribution channel of retailing, wholesaling, sales promotion and direct marketing By doing these recommendations, it is possible for Dong Anh Pressure Equipment j.s.c to gain a better place in a very competitive market in VietNam CHAPTER 1: INTRODUCTION 1.1 Rationale Industrial boilers (boilers) are devices that use boiling water to form heatconducting steam to meet the heating requirements of industries such as drying, cooking, dyeing, steam-to-turbine generators, etc The special thing of the boiler that no substitute is to create a safe non-combustible power source to operate the equipment or engine in place It is forbidden to fire and to prohibit power supply (such as petrol and oil stores) Boilers are widely used in almost every industry, with each industry demanding different levels of heat and capacity Factories such as feed processing factory, confectionery factory, using boiler for drying products; Some of the plants are used for cooking, pasteurizing such as beverage plants, fish sauce plants, soy sauce or vegetable oil With the advantages of such boilers, the market can be seen Boilers are one of the potential markets where more and more companies are planning to grow Dong Anh Pressure Equipment Joint Stock Company is one of the few companies operating in the field of supplying boiler products, pressure vessels and industrial valves in Hanoi by TAIYO NIPPON SANSO - a leading corporation in the field of industrial gas and gas generators in Japan Inheriting the foundations of the General Corporation for Production and Services of Technical Materials under the Ministry of Agriculture and Rural Development, Dong Anh Pressure Equipment Company has been developing strongly The mark on the boiler market in Hanoi However, boilers are potential products to continue to exploit with large consumption market, so in the past few years, many companies in the production and sales of boiler products have entered the market and edge Direct competition with Dong Anh company Competing and gaining market share, attracting and introducing customers to know and use our boiler products is one of the most urgent issues that Dong Anh Pressure Equipment Company needs to handle Furthermore, there were some previous studies discussed to expand market for boiler product but studies for marketing mix seem insufficient especially for the Dong Anh pressure equipment jsc in particular Taking into account of all reasons mentioned above, the author decided to choose the title '' Marketing mix for boiler at Dong Anh pressure equipment j.s.c'' and insists that it had not been done before Moreover, the reason, explained for choosing four factors instead of one factor of marketing mix, is that one product wanted to be succesful on domestic market full of combination factors, so only one factor is not enough A long term marketing development orientation not only helps to exploit resources effectively, but also ensure the good condition for production and satisfies the stricter and stricter requirements of customers 1.2 Research Objectives This study is aimed to verify some key theories and methodologies of building and implementing promotion strategies for boiler based on the analysis of its market performance and enviroment over the past period The specific objectives of the study include: - To identify component of marketing mix applied to consumer goods; - To assess current marketing mix for boiler at Dong Anh pressure equipment jsc - To propose solutions to improve marketing mix for boiler to increase its market share up to 2020 1.3 Research Questions To achieve the objectives mentioned above, the research would answer the following questions: - What are components of marketing mix applied for consumer goods? - How is the current situation of marketing mix for boiler? - What should be done to improve the marketing mix for boiler? 1.4 Research Methodology 1.4.1 Research Process Literature Review Theoretical Framework Secondary data Primary Data: Survey, In-depth interview Annalysis of Marketing mix Levi’s product at TBF Recommendation to improve Marketing mix for Levi’s product TBS’s marketing objective for Levi’s product 1.4.2 Secondary data collection The secondary data was collected from the internal reports of Dong Anh pressure equipment jsc within years from 2015 to 2017 (number of customers, revenues, any comments from the customers on the product of boiler) In addition, wording, brochures, marketing materials and official documents of Dong Anh pressure equipment jsc were also used to give out overview about marketing mix of the company Internet, newspapers, other financial magazines and former research studies related to marketing mix were used as the secondary data for the study The data let the author know that what are the situation of marketing mix for boiler at Dong Anh pressures equipment jsc in current Vietnamese market and their potential development in the future 1.4.3 Primary data collection The primary data are derived from the survey of the customer of boiler and the in - depth interviews with the director and manager as well as some existing customer Collection of primary data is following: a, In - depth interviews: ... MARKETING MIX FOR BOILER AT DONG ANH PRESSURE EQUIPMENT JSC CHAPTER 2: THEORETICAL BACKGROUND ON MARKETING MIX FOR CONSUMER GOODS 2.1 Marketing and marketing mix for consumer products 2.1.1 Marketing. .. BACKGROUND ON MARKETING MIX FOR CONSUMER GOODS .8 2.1 Marketing and marketing mix for consumer products 2.1.1 Marketing 2.1.2 Marketing mix 2.2 Elements of marketing. .. INTRODUCTION Chapter 2: THEORETICAL BACKGROUND ON MARKETING MIX FOR CONSUMER GOODS Chapter 3: CURRENT SITUATION OF MARKETING MIX FOR BOILER AT DONG ANH PRESSURE EQUIPMENT JSC Chapter 4: RECOMMENDATIONS