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PHAM NGUYEN HOANG BUSINESS MANAGEMENT 2015 2018 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM BACHELOR THESIS Major Topic Perfecting Marketing Mix activities at Tan Hung Trading Co , Ltd[.]
NATIONAL ECONOMICS UNIVERSITY PHAM NGUYEN HOANG EXCELLENT EDUCATIONAL PROGRAM BACHELOR THESIS Major BUSINESS MANAGEMENT Topic: Perfecting Marketing Mix activities at Tan Hung Trading Co., Ltd Pham Nguyen Hoang 2015-2018 HANOI, 2018 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM BARCHELOR THESIS Topic: Perfecting Marketing Mix activities at Tan Hung Trading Co., Ltd Student: Pham Nguyen Hoang Speciality: Business management Class: Enterprise management Student’s ID: 11141617 Supervisor: Ma Bui Cam Van HANOI, 2018 ACKNOWLEDGEMENTS First of all, I want to thank Ma Bui Cam Van – my supervisor, for helping me a lot to complete my thesis, there were times I couldn’t match her deadline or ideas but she still encouraged me to finish the job Secondly, I want to thank mr Vu Duy Ngoc, the director of Tan Hung, who also supervised my internship, enthusiastically gave me all the helpful numbers and information needed to help me complete the report as well as helped and directed me during the internship at the company Finally, I want say thanks to Ms Nguyen Thi Hong Dao – my mother, she has been with me throughout the process of completing the report, has taken care of my health and has pointed out the slightest mistake I did not notice In the process of completing the report, despite the help of everyone, my report is still unavoidable due to time constraints and my personal level, I expect the judges to ignore the errors are not worth it I sincerely thank everyone STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Barchelor Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper I clearly marked and separately listed all the literature and all other sources which I employed producing this academic work, either literally or in content Hanoi, ./ / 2018 Signature TABLE OF CONTENT ACKNOWLEDGEMENTS STATUTORY DECLARATION TABLE OF CONTENT LIST OF FIGURES INTRODUCTION CHAPTER I: THE MARKETING-MIX FUNDAMENTALS 1.1 Marketing concept 1.2 Marketing Mix concept 1.3 The role of marketing-mix in the business 1.4 Components of Marketing-mix .6 1.4.1 Price 1.4.2 Product 11 1.4.3 Place .16 1.4.4 Promotion .20 1.5 Factors affecting marketing mix in the business 23 1.5.1 Internal factors 23 1.5.2 External factors .25 CHAPTER II: SITUATION OF MARKETING-MIX ACTIVITIES AT TAN HUNG CO., LTD 28 2.1 Company overview 28 2.1.1 History and background information of the company 28 2.1.2 Function and Mission 29 2.1.3 The results of the company 29 2.2 The marketing mix of Tan Hung Trading Co., Ltd .33 2.2.1 Marketing activities of Tan Hung Trading Co., Ltd .33 2.2.2 Marketing-mix activities at Tan Hung Trading Co., Ltd and achievements 39 CHAPTER III: LIMITATIONS IN MARKETING-MIX ACTIVITIES AT TAN HUNG TRADING CO., LTD AND SOME COMPLETED SOLUTIONS 45 3.1 Human factor in MA 45 3.1.1 Differentiate Sales and Marketing 45 3.1.2 Organizing training .46 3.1.3 Market research work 46 3.2 Management of sales price 47 CONCLUSION .48 REFERENCES .49 LIST OF DIAGRAMS, TABLES AND CHARTS Diagram 1: Life cycle stages of the product 15 Diagram 2: Direct distribution channel of commercial enterprises 17 Diagram 3: Indirect distribution of business 17 Diagram 4: The mixed distribution channel of the business 18 Diagram 5: Marketing Organization System of Tan Hung .37 Diagram 4: Synthesis of Marketing Proces 39 Diagram 6: Distribution structure of Tan Hung at present .42 TABLE 1: FINANCIAL STATEMENTS OF BUSINESS ACTIVITIES (TABLE 1) 30 TABLE 2: REPORT ON REVENUES OF SOME MAJOR BUSINESS LINES (TABLE 2) 31 TABLE 4: COMPARISON OF THE EQUIVALENT PRICE OF COMPLEX ITEMS BETWEEN TAN HUNG AND THE SUPERMARKET BAC DO 41 Chart 1: The Wholesale rate and Retail rate of key items of Tan Hung in period 2016-2017 .32 Chart 2: The rate of marketing cost and business cost of Tan Hung in the period 2015-2017 .36 Chart 3: Chart of electronic products of Tan Hung in period 2015-2017 .40 INTRODUCTION Lao Cai - as a mountainous northern border province of our country, it is located at the "bridgehead" linking the vast southwest of China with the northern delta Lao Cai was re-established on October 1, 1991 After over 26 years of reestablishing the province, Lao Cai has gradually affirmed its position as the economic and cultural center of the Northwest The GDP growth rate in the period of 2011-2015 is 14.1% per annum If in 1991, GDP per capita in Lao Cai was only modest at 680,000 VND, this figure would be 39.4 million VND per year by 2015 In addition, state budget revenues have risen sharply from just VND 19 billion in 1991 to VND 5,500 billion by 2015 These outstanding achievements have made a great contribution to the Lao Cai enterprises with the role are the "warriors" of the economy The objectives and tasks of Lao Cai in the 2016-2020 period are to strive to build the province into a socio-economic center and an important center for international cooperation and economic exchanges in the region and the whole country In order to achieve this objective, there should be more active participation of private enterprises and focus on the key areas that are the strength of Lao Cai such as: minerals, chemical production; hydropower, agriculture, construction, etc After two years of implementing the target of resolving the 15th provincial Party Congress, by 2017, it was a successful year of Lao Cai province when it was completed and completed Exceeding the 25 major targets In which many targets exceeded such as economic growth rate is estimated at over 10%, average income of people reached 51.2 million, up 11.3% over the previous year, Lao Cai is the province second in the northern midland and mountainous areas, after Thai Nguyen Provincial budget revenue in 2017 reached over 7,000 billion, exceeding the target set by the provincial People's Council The motto of Lao Cai province is: "Enterprise development, Lao Cai development" For many years, the competitiveness index at the provincial level is in the top 10 of the country, which has created conditions for businesses in and outside the province to operate in business In a favorable business environment In that business environment, enterprises in Lao Cai have been developing strongly in terms of quantity and scale and quality of operations On average, more than 3000 enterprises and a large number of individual business households and cooperatives in Lao Cai province have contributed significantly to the socio-economic development of the locality Grabbing the opportunity, Tan Hung Trading Company Limited was established from early, registered business for the first time on February 4, 2002 On the first establishment of the company is only a small enterprise of the province, by 2011, the registered capital of the company is 20 billion, with 20 employees signed long-term contract The company is active in the field of trade, which has a lot of potential for development and dynamic of Lao Cai province With its efforts in the last years, Tan Hung Trading Co., Ltd has step by step In terms of scale, expressed in equity has reached more than 100 billion, labor of the company up to more than 100 people Turnover of the company in 2017 reached over VND 150 billion, contributing nearly billion VND to the budget The company currently develops strongly in retail business of electronics, furniture and especially the company owns Duc Huy Supermarket is the largest supermarket in Lao Cai city To achieve such achievements, over the years, Tan Hung Trade Co., Ltd has developed and implemented the right business strategy, exploiting the market in Lao Cai and other districts of Lao Cai The company has focused and performed quite effectively marketing in business However, in recent years, the market of Vietnam in general and Lao Cai province in general has become more difficult Along with the new birth of many enterprises in the province, many enterprises in other localities as well as foreign enterprises have been interested in deploying commercial business in Lao Cai A series of new supermarkets are being built such as: American English supermarket, Thanh Do supermarket, Muong Thanh supermarket and convenience stores in the retail market in Lao Cai market out of fierce competition Therefore, in order to develop sustainably, enterprises in Ninh Hoa Ward in general, Tan Hung Trading Co., Ltd in particular need to invest in building and organizing effective implementation of annual business plans and customs Proper attention to the implementation of marketing strategies Being a trainee student at Tan Hung Trading Company, researching the business situation of the company in the period 2015-2017, combining the reality of business activities and the theory of marketing research Having received the guidance of teachers, I realized that marketing activities play an important role in the Company's activities The company's leaders have paid attention to this activity Wishing to better understand the implementation of marketing strategy of the Company to draw lessons for themselves during the post-graduation process as well as can propose, contribute some small ideas for In the period of 2018 and the following period, I selected the topic: " Perfecting Marketing Mix activities at Tan Hung Trading Co., Ltd " The thesis consists of chapters, chapter deals with marketing and marketing-mix theories, chapter introduces Tan Hung Trading Co., Ltd - my practice and Marketing-mix activities in Tan Hung, chapter is the specific assessment of each marketing-mix activities in Tan Hung and measures to perfect marketing-mix activities here CHAPTER I: THE MARKETING-MIX FUNDAMENTALS 1.1 Marketing concept In the age of Internet boom, Marketing is also used to abuse the term Internet Marketing, Facebook Marketing, Online Marketing But the intrinsic nature of it has largely vanished It is not surprising that people are constantly disturbed by advertisements on televisions, newspapers, pamphlets and touts even the time, products and staffs have been touting to each household and promote the products, sell the products to the people They offer and draw great information about the product, ultimately what the customer receives is a poor quality product, and Marketing becomes a farce, a trick to people who make them misunderstand and allergy to this concept This has little impact on true marketers and marketing strategies that really benefit the customer How to understand and apply Marketing properly? Marketing Mix (Marketing Mix): Marketing mix is a set of controlled variables of marketing that the company uses to try to get the desired response from the target market So, in conclusion, according to Phillip Kotler, Marketing is about working the market to make exchanges that meet the needs and desires of the people 1.2 Marketing Mix concept According to Phillip Kotler, Marketing - mix is a combination of control elements that businesses use to influence the target market to achieve the planned goals The elements are: • Product: The product is what the company provides to the market, the product decision, including: type, size of the product, quality, design, packaging, brand, function , services to meet the needs of customers Price: Price is the amount of money a customer spends to own and use the product or service, the price decision includes the method of pricing, price, tactics of price adjustment according to the variable the market and consumers • Place: lung distribution is the activity of delivering the product to the customer, deciding the delivery of the decision: choosing, setting up the distribution channel, organizing and managing the distribution channel, Establish relationships with intermediaries, transportation, storage reserve ... 2.2 The marketing mix of Tan Hung Trading Co. , Ltd .33 2.2.1 Marketing activities of Tan Hung Trading Co. , Ltd .33 2.2.2 Marketing- mix activities at Tan Hung Trading Co. , Ltd and achievements... Trading Co. , Ltd " The thesis consists of chapters, chapter deals with marketing and marketing- mix theories, chapter introduces Tan Hung Trading Co. , Ltd - my practice and Marketing- mix activities. .. CHAPTER III: LIMITATIONS IN MARKETING- MIX ACTIVITIES AT TAN HUNG TRADING CO. , LTD AND SOME COMPLETED SOLUTIONS 45 3.1 Human factor in MA 45 3.1.1 Differentiate Sales and Marketing