INTRODUCTION
Rationale
Industrial boilers (boilers) are devices that use boiling water to form heat- conducting 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 ofTechnical Materials under the Ministry of Agriculture and Rural Development,Dong Anh pressure equipment company has been developing strongly and created the hallmark in 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.
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.
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?
Research Methodology
The secondary data was collected from the internal reports of Dong Anh pressure equipment jsc within 3 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.
Determining the status and causes of marketing activities of Fsales products of FPT Software Company
Identify research issues and objectives
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:
- The in - depth interviews were conducted separately with 02 director and manager named Mr Che Minh Phuong - Director and Mr Doan Tuan Phong - Marketing manager about boiler product The interview results help the author collect information of requiredments and important role of expanding boiler market share in VietNam.
- One group in - depth interview was conducted with 05 existing customer of boilder products In group in - depth interview, the author presented the topic about selling boilder in VietNam market and raised many aspects related to boiler market, as requirement of market access and marketing activities, production capacity and financial capacity to cover the production and marketing With each issue, these interviewees showed their opinions and discussed with others frankly. b, Survey:
- Respondent: Existing individual customers of boiler.
- Sample size: 120 customers using boilder in HaNoi area were choosen from Dong Anh's database.
- Sampling method: Convenience sampling method was applied This is the sampling method that the respondents were recruited based on the condition of convenient and economic conditions.
- Questionnaire distribution: The questionnaires would be given to customers by sneding to their emails After all follow up communications, yielding a 76,7% respondent rate (n) and the rest of 28 responses could not be used due to theri being incomplete and unmatched.
- Comparative study and Synthesis: Comparative study means comparing the achieved indicators of business performance with the baseline indicators The market indicators, the average indicators can be compared via other method The conditions for comparision are the matching of the space, time, economic issue, measurement unit, calculation method and business conditions.
- Statistical method via table and charts: This method discovers the tendency of common features of the factors under the analysis.
Research Scope
- Research subject: Marketing mix for boilder at Dong Anh pressure equipments jsc
- Location: Conducted in Ha Noi
+ Secondary data: Collected for the period from 2015 - 2017
Research Structure
The thesis is organized into the following chapters:
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 TO IMPROVE AND DEVELOP MARKETINGMIX FOR BOILER AT DONG ANH PRESSURE EQUIPMENT JSC
THEORETICAL BACKGROUND ON BUSINESS TO
Theory of Marketing B2B
Currently, the role of marketing in business operations is gradually confirmed and plays a decisive role in the business process of enterprises. Marketing activities are becoming more and more diversified in today's life. Marketing is the identification of what people and society need If a product is created, no one needs to use and buy it, it will not be sold If so, then production will become unprofitable Therefore, the shortest definition we have is to identify needs in a beneficial way.
Until now there are many concepts of marketing concept definition, but it can be understood that: marketing is the process of creating values from customers and close relationships with customers for the purpose of collecting prices value of business and organizational benefits from created values (Philip Kotler, 2014).
From Philip Kotler's definition, we can draw the conclusion that marketing includes important features as follows:
Marketing is a market-attached activity that cannot be separated.
Marketing is an activity aimed at satisfying the needs of consumers better and better, where it is a process of establishing the relationship between buyers and sellers.
Marketing not a phenomenon that is a process consisting of several stages, starting with market research, learn to discover customer needs and on to find products that meet the needs This process can be repeated many times.
Marketing is a total of measures, solutions from market research, strategic planning and pricing for service products, distribution channel establishment and business promotion activities throughout the business process.
So what is the B2B market? This market will include the industrial market, the retail market and the government B2B buyers buy goods and services to support their own product manufacturing Agents buy goods for resale in order to make a profit, the government buys goods and services to carry out government jobs.
In the B2B market, the buying behavior of the organization is the process by which the organization officially establishes the necessity of purchasing products and services, thereby assessing, identifying and selecting certain brands and suppliers products (Frederick E Webster Jr and Yoram Wind, 1972).
Marketing activities in the B2B market also face the same problems as in the B2C market but there are also some fundamental differences in market characteristics, promotion and sales in the B2B market Marketers in the B2B market face some challenges such as:
Deeply understand your customers in a new way of looking at B2B
Understand where development opportunities for customer organizations are
Must find ways to improve governance and management tools
Be more careful in weighing marketing performance and the value of data
More competitive in the market with global scale
Must be more competitive by offering more innovative services or switching to a new business model
Must convince directors to support long-term marketing plans
B2B customers are organizations and businesses that need to purchase products, equipment, materials, to serve the activities and production processes of their organizations The group of corporate customers needs to learn very big information So in marketing materials, we should include detailed information.Business customers often pay more attention to the characteristics behind the product and will want to hear more about the characteristics of the product than the marginal information In addition, business customers are also proficient,understand the supplier's products or services more and offer the option to buy products or services to help their company achieve profits, get the price compete and achieve success For these reasons, B2B customers have differences in comparison with ordinary consumer customers.
General planning of the state
There are many stakeholders involved in the buying process
The relationship between customers and suppliers is quite sustainable
Strategic components of B2B marketing
Companies operating in the industrial market need to have product strategies for the following reasons:
Increasing competition: In the current globalization trend, competition will be increasingly fierce in both domestic and foreign markets Today corporate customers are more likely to choose to buy products because they can choose suppliers in many countries around the world New materials, new processes, new technologies, new supplies pose challenges for industrial marketing managers when developing product strategies.
Demand originates: Consumer demand changes very quickly, so the demand of institutional customers will also change to meet consumers' needs.
The complexity of purchasing is increasing: Buyers in the industrial market are increasingly trained more professionally to increase efficiency in purchasing activities Moreover, customers increasingly use new techniques and technologies to evaluate the quality of products and evaluate suppliers These factors make buying decisions more complex and difficult.
Labor saving requirements: Industrial customers tend to reduce labor costs Labor-saving machinery and lines are increasingly favored.
Requirements and product quality: The failure rate of industrial products is much lower in the consumer market Products in the industrial market always require high quality and this requires research and testing before being marketed.
2.2.1.1 Content of product strategy in the industrial market
Industrial product strategy relates to issues such as identifying key product policies, setting specific product objectives in line with the pre-defined marketing goals, identifying product categories products or features of products and services that should be produced From there make decisions about specific product specifications, names, labels, packaging, support and customer care services.
The specific content that the marketing manager must take in product planning and product strategy planning.
2.2.1.2 The difference between product strategy in the industrial market and consumer market
The difference between industrial and consumer product strategy is shown in Table 2.1.
Table 2 1 Differences between industrial and consumer product strategies
Factor Consumer Market Industrial market
The importance of products in marketing-mix
Important but sometimes overshadowed by prices and promotions
Often plays a more important role than other factors
Demand Produced to serve the direct needs of consumers
Serving the needs of the organization, rooted in consumer demand.
Buyers and users Buyers and users Buyers are usually not users
Product specifications The vast majority are standardized products
Products are often designed according to the specifications required by customers
Product life cycle Often short due to stiff competition, customers change their tastes quickly
Usually longer, especially for traditional industrial products, shorter for high-tech products.
Support services Important for durable, valuable but minor products for other products.
Very important, many customers require support services right in the technical requirements.
Aesthetic elements Very important for the success of the product Usually not important for most products
Failure rate of new products Very high, about 80% Lower, 30% -40%
The importance of market research Often an important factor in developing new products Often not important in developing new products.
Source: The author's summary 2.2.2 Price
For sellers: The price of a goods or service is the income received by the seller through the consumption of that product.
The selling price of the product must ensure the following objectives:
Sufficient to cover production costs of goods and services
Create the necessary profit and meet the company's price target.
Satisfy the value that buyers are aware of products and services.
Allow the company to compete well in the market.
2.2.2.1 Differences between price strategies in industrial and consumer markets
The difference between price strategies in industrial and consumer markets is shown in Table 2.2.
Table 2 2 Compare price strategies in industrial and consumer markets
Factor Consumer Market Industrial market
Often the determining factor of customer needs
In bidding, price is important In other cases, the price is less than the factors such as product quality, service, delivery on time
This elasticity may be high or low depending on the type of product
Not common in consumer markets
Very popular, in which prices are important.
Negotiated price Negotiated price Almost appear in all cases of purchase
Partnerships between manufacturers and customers
Unpopular Very popular, valuing on long term relationships
2.2.2.2 Factors to consider when pricing
When valuing, managers often consider the following six factors:
+ Senior leader of the company
The basic content of the distribution policy in new product marketing is the design and management of the sales network in the early stages of launching products to the market.
The sales network is a collection of channels with the participation of different entities with different strengths and reputations to successfully bring goods from manufacturing enterprises to customers managing new sales channels of enterprises must meet the following basic requirements:
Suitable for the nature of the product.
Create the most favorable conditions for customers to access and buyproducts easily.
Consider the distribution channels of competitors in the industry.
The distribution channels of the company need to ensure: increase sales of the company and establish a sustainable relationship with intermediaries in the distribution channel Basically, the distribution strategy in the industrial market has the following characteristics:
Distribution channels in the industrial market are often shorter than the distribution channels in the consumer market Products and services of the industrial market sold through direct channels account for 75% of the total products and services sold Even, even when using indirect channels, companies also set up very short distribution channels (only one to two intermediate levels).
In the industrial market there are not many types of intermediaries to choose from in the consumer market, almost two types of intermediaries are manufacturers' representatives and industrial distributors This lack of diversity limits the choice of manufacturers In addition, on some markets, the number of middle
This time is little or not so this is also a significant difficulty for businesses.
Due to the characteristics of products in the industrial market, customers often require high quality products and services At the same time, some complexly designed products also need services such as technical support, consultancy, training Therefore, when choosing a distribution center, companies often require the center This space must have sales skills and product technical knowledge needed to advise customers.
Because of the large volume of transactions and industrial customers often do not accept delays in delivery, inventory is a big challenge Late deliveries will affect the production process of the customer so controlling the time the goods are circulated in the distribution channel plays a vital role This is a problem to solve for commodity manufacturers because if the inventory is too large, the inventory costs will increase, but the low inventory level has potential risks of supply.
In the industrial market, the relationship between manufacturers and customers (in direct distribution channels), or manufacturers - intermediaries - in the indirect distribution channel is built very closely The manufacturer must regularly create and take care of this relationship to ensure maintaining the number of customers available and expanding the number of customers.
Industrial marketing activities often use five groups of tools, mainly direct sales, advertising, promotion, direct marketing and public relations to influence the target market to achieve the business goals of the business The nature of promotion activities is to transmit information about products and companies to customers to convince them to buy products.
The above five basic tools of mixed promotion:
Personal sales: A form of direct presentation between salespeople and one or more customers with the aim of selling In the industrial market a direct sales session can be presented by field sales staff, in-house salespeople, or sales teams.
Advertising: Is a form of subjective presentation, indirectly ideas about products and services In industrial marketing, advertising is often through means such as commercial publications, newspapers, direct mail, statistical yearbooks, radios, television or outdoor tables.
CURRENT SITUATION OF MARKETING MIX FOR
Overview of Dong Anh pressure equipment company
3.1.1 Overview of Dong Anh pressure equipment company
3.1.1.1 Dong Anh preessure equipment jsc establishment
Dong Anh Pressure Equipment Joint Stock Company (DPE) is one of the leading companies in the field of pressure equipment, was established in 1991 It was formerly a trading company of equipment and supplies Dong Anh Production and Services Corporation is a subsidiary of General Corporation for Production and Service of Technical Materials - Ministry of Food - Food (1991), now the Ministry of Agriculture and Rural Development, Vietnam In 1999, it was transformed into Dong Anh Electro-Mechanical Company In 2003, the company was transformed into Dong Anh Pressure Equipment Joint Stock Company according to business registration certificate No 0103001924 for the first time 03/03/2003 August 2005 Established Pressure Equipment Manufacturing Factory and in December 2007 moved the factory to Dong Anh Pressure Boiler Joint Stock Company at TS10 / 8, Tien Son Industrial Zone, Bac Ninh Dong Anh Pressure Equipment Joint Stock Company
Figure 3.1 Organizational structure of DPE
DIRECTOR GENERAL DIRECTOR BOARD OF DIRECTORS
Dong Anh Pressure Equipment Joint Stock Company operates in two main fields: manufacturing and trading:
+ Design and manufacture of boilers, boilers: coal-fired boilers, oil-fired boilers, gas-fired boilers, electric boilers, wood-burning boilers;
Designing a fuel-saving fluid-bed boiler system; Combined combustion boilers such as coal dust, sawdust, sawdust and sawdust shavings
+ Designing and manufacturing pressure vessels of various kinds: compressed air tanks, saturated steam dispensers, LPG cylinders, pressure vessels, tanks (tanks) of petrol and oil of all kinds.
+ Repair and installation services for boilers, boilers: coal-fired boilers, oil fired boilers, gas boilers, electric boilers, wood-fired boilers, fluidized bed boilers, well suited;
+ Manufacture of drying tunnels, wood drying rooms, cold storage and steel structures;
+ Surveying, design consultancy, transport and installation of boilers, compressed air tanks, steam distribution vessels and pressure equipment.
+ Manufacturing details according to customer requirements;
+ Fabrication of steel bridge frame and bridge crane types.
+ Specialized in trading and importing industrial valves: steam valves, water valves, butterfly valves, ball valves, industrial valves, gas valves, gas valves
+ Services importing measuring equipment: water glass clocks, pressure gauges;
+ Supplying accessories, materials, services for water, gas, oil
+ Specialized in trading, importing steel pipes, special steel plates for boilers;+ Agent for mechanical products, pressure equipment products
Boilers Pressure vessel Industrial Valves Pressure
Boilers are fuel- using equipment
(coal, firewood, rice husk, waste paper ) to boil water to form heat-resistant steam to meet the heating requirements of industrial sectors such as laundry, drying wood, hotel each other.
A pressure vessel is a device used to store and transport liquids with pressures greater than atmospheric pressure.
An industrial steam valve is called a safety valve according to the operating pressure of the system which can be automatically opened and closed, usually installed in a pipeline safety system or a closed system When the device or pressure pipe exceeds the pressure valve valve will automatically open the relief to ensure that the equipment and media pressure in the piping under the pressure set, protective equipment and piping, to prevent accidents.
Additional accessories for products of gas pressure, steam pressure.
The below table show the increase of DPE's sales revenues from 2015 to 2017.
Table 3.2: DPE's revenue from 2015 to 2017
The performance of boiler's sales and marketing system plays very important role for DPE's performance and development The analysis of marketing mix for boiler products shall provide the evaluations of current situations, then better recommendations for better marketing mix for boiler products.
Overview of boiler, boiler market in Viet Nam
Boiler (steam boiler) is a device that uses fuel (coal, firewood, rice husk, waste paper ) to boil water to form heat-vapor to serve the internal heat requirements Industrial areas such as laundry, wood drying, hotel Depending on the needs of use, people create steam sources with appropriate temperature and pressure to meet different requirements In order to transport this high temperature and pressure energy, special high temperature, pressure-resistant pipes are used for the boiler (boiler)
The special thing of a boiler that does not replace any device is to create a non-flammable, non-combustible source of energy to operate the equipment or engine in a place where no fire is needed and the power supply (such asPetroleum storage)
Boiler have some functions, detail are:
+ In industrial plants that use heat, boiler equipment is used as a heat source, supplying steam and conducting heat, steam to the machinery systems to be used
+ Boilers are widely used in almost every industry, with each industry demanding different levels of heat and capacity Companies such as garment companies, dry-cleaning companies use boilers to supply steam to bridges, factories such as feed processing factories, confectionary factories Use a boiler to dry the product Some plants use boilers for cooking, pasteurizing such as beverage factories, fish sauce plants, soy sauce or vegetable oil.
+ Boilers burning coal, burning wood, burning the mixture
+ Gas fired boilers, oil burners
+ Boilers utilizing heat, boiler burning garbage
+ Other boilers (electric boilers, rice cookers )
3.2.1.3 DPE boilers' strengths compared to other company's boilers
- Regarding technical standards: The boiler is designed and manufactured by Dong Anh Pressure Equipment Joint Stock Company based on the modern machinery system according to advanced technology, which is applied in accordance with ASME - Section VIII - Division 1, TCVN 7704: 2007; 8366:
2010 Steel pipe manufacturing boiler ASTM standard -106 Gr "B"; GB 3087-2008 and apply ISO 9001: 2000 quality management system.
- Manufacturing technology: Applying new technology, fuel economy, solid design, easy operation Materials made of steel safe for equipment and people.Eliminates all defects in the design, manufacture, installation and operation stages that other units have not yet done Confirming the technology of manufacturing boilers and pressure vessels number 1 Vietnam.
Steam boilers have the advantage of mechanical cleaning, internal dust collection and convection outside of the entire convection heat exchanger system that is faster and better fuel economy than other types of boilers on the market. other units are not currently.
Designed and manufactured using new technology, saving fuel from 10% to 15% compared to the same type of pot in the market The stability of the pot is high, convenient operation, easy to use, convenient for cleaning and repair periodic.
Boilers are designed with new technology to overcome the disadvantages of old boilers, less hot winds, longer hot winds, less dust and ash.
Manufactured materials and accessories are imported directly to ensure the origin, quality and help reduce costs.
Thin tube step avoids deposit, mechanical cleaning is easier (because the water supply to the boiler in Vietnam is not well treated) In addition, the combustion chamber is wide, the flame is high, insulated with two layers (refractory bricks + ceramic floss, glass flake, heat-resistant concrete) to raise the temperature of the combustion chamber, fuels burning maximum fuel savings , limiting excess coal dust to fly out.
Tudom doors are designed larger than convenient mechanical cleaning and drainage of pipes.
The dewatering system is based on advanced technology from Germany and China, reducing 80% and protect the environment.
- DPE boiler products are very abundant:
+ Boilers of various types: boiler fluidized bed (biomass); coal fired boiler, wood burning, mixed combustion; gas fired boiler, oil burner; steam boilers; rice cookers, electric boilers, heat oil boilers
+ Boilers of various weights: 80-ton boiler, 50-ton boiler, fluidized bed boiler with 6 tons of coal.
+ Boilers of many types: vertical type, lying type, flat surface type, non-slip surface type
+ Boilers of various colors: blue, gray, red
Due to the characteristics and advantages of each type of boiler is different, the design and manufacture of boilers are also focused company to suit the workshop, equipment conditions of the customer enterprise Especially in the current period, more and more suppliers of boiler products to the market with the ability to grasp the demand is very good, so the marketing activities at DPE for boiler products must be sensitive Sharp, updated and manufactured in line with market signals.
Figure 3.2: Some types of DPE boilers
(Source: Marketing and sales department)
The quality of DPE's boiler products is on the market, so DPE boilers have the following characteristics and materials:
+ The front and back are made of A515 or equivalent ASTM grade steel or equivalent imported from Japan - Korea - China.
+ The tricycle body is made of A515 heat-resistant steel or equivalent on the modern system such as hydraulic rollers, automatic welding machines with protective coatings, the trunk is arranged convenient toilet door For repair and maintenance work periodically.
+ The chamber body of the pot is designed with high temperature resistant, elastic tendon of the material.
+ Boiler fire tube: Made of heat-resistant and non-welded steel pipe and directly imported according to ASTM -106 Gr "B" / GB 3087-2008.
+ In front of the examination, insulated with heat-resistant concrete for the repair, maintenance and operation of the boiler.
+ Welding welds with high pressure welding KR-3000 of Korea by welders with professional qualifications in welding pressure 5G and 6G (TCXDVN 314:
In addition to raw materials, DPE's advanced modern machinery and equipment has been imported synchronously from Italy, contributing to the production of high quality products, durability and extremely low defect rates.
With quality products stand on the good on the market Styles, designs, colors that suit the tastes of different regions (cities and industrial zones) normally have a life cycle for a product code that ranges from 4 to 10 years However, there are also the product code when the consumption has to cut the batch from the first series of production not accepted by customers on the market Thus, the life cycle for a long or short product depends on the tastes and preferences of consumers when choosing a new product The research and development process of a new product of the company as follows:
Consumers of consumer goods, design rooms for survey and market research in some neighboring provinces have manufacturing enterprises in the industrial field such as Me Linh, Soc Son, Bac Ninh to determine the current What kind of boiler do you prefer? Color? Designs? Market research surveys are mainly based on the number of competing boiler samples being sold in the market that many customers choose to use as the basis for identification Based on market research, what kind of boilers do you like? color? Designers, design staff will come up with design ideas from 2 to 4 samples to ensure the difference compared with the model of competitors are available in the market, however, must ensure the guests are. Selected business items, selected and used Based on the sample design drawings, the management board will select one or two samples to make the trial selection. The test product will be sent to a number of Tier 1 agents by the sales staff to probe the customer satisfaction Based on feedback from customers on the market of the product model, the consuming room will propose to produce the product or remove the sample in the market.
Vietnam is located in an area with rapid economic growth The indispensable development of industry leads to an increase in demand for boilers both in quantity, quality and capacity.
As estimated by the ASEAN Energy Prospects Report 2011: By 2030 the number of boilers in Vietnam will increase to 6000 boilers, the ratio of boilers by fuel type to the forecast for 2030 is specific, burning coal: 3000 boilers, accounting for 50%; burning oil: 1,200 boilers, accounting for 20%; burning biomass: 1,800 pieces, about 30% ''.
Clearly, the boiler market is a potential market, so there are more and more suppliers of boiler products, from medium to large scale with a variety of models and types.
To realize the above, the company has established a subsidiary unit isJoint Stock Company Boiler pressure is located in TS 10/8 Tien Son IndustrialPark, Bac Ninh with an area of more than 7000 m2 with the target shorten the service time and further assure customers of the safety of using the company's boiler products.
Analysis of marketing mix for boiler at Dong Anh pressure equipment jsc
In order to have sufficient information to analyze and assess the actual situation of marketing mix for DPE boiler products, in combination with the secondary data collected, the author conducted the survey and collected cross the following sources:
First: The author performs in-depth interviews with DPM's General Director,
Mr Che Minh Phuong and Marketing Director - Mr Doan Tuan Phong.
Second: The author conducted in-depth interviews with 5 existing customers Third: The author made questionnaires for the views of units using boiler products with 01 questionnaire form And the result is of the 120 respondents, only
DPE boiler products are industrial boiler products with many functions.Currently, the company's product policy is to provide a comprehensive list of all types of industrial boilers with full functions In addition, customers who buy DPE boiler products will be supported by the company's staff in the first 3 months and support for 5 years of maintenance and troubleshooting For boiler products that do not meet environmental protection standards, customers who own these boiler products will be bought or subsidized by DPE to replace them with higher standard products, meeting more environmental protection requirements.
Moreover, DPE's customers are diversified in size and demand, therefore, DPE industrial boiler products have many styles, sizes and different capacity levels. together For a group of businesses of similar size and scope, DPE plans to set up an analytical team to design an integrated boiler model to meet immediate and more needs businesses However, this is costly and it is unlikely to reach the desired number of businesses.
About quality of product, 92 customers surveyed who using DPE's boiler has provided to author correct answers on the quality service They were quality based on the scale of DPE's boiler of 1 is very bad and 5 is very good.
Table 3.3: Feedback quality of DPE's boiler
The table above shows the client's assessment of the product factor rating.Survey results show that, 6.5% of customers rated it very good, 28.26% of customers answered that it was good, 60.9% of customers answered that is average,4.45% of customers The answer is poor and 0% of the answer is very poor During the survey process, the opinions of "poor" belong to the product quality content,after understanding carefully the "poor" enterprises, the author found that these 4 businesses are all use the wrong product instructions, so there is a slight error, but has been maintained and instructed by DPE technical staff.
In addition, the respondents were asked how they are evaluating the quality of DPE's boiler products and the responses gained as follows:
Table 3.4: Feedback elaluating the quality of DPE's boiler
Large number respondents (76 ones) accounting for 82,6% said that they are evaluating the quality of service by comparing with others Beside, 11 respondents (accouting for 11,9%) answered that they evaluate the quality by actual use of the product Only 5 respondents evaluate the quality of boiler product through product's information.
The overall comment of selecting boiler products is to as follows:
Table 3.5: Feedback of selecting boiler products
Large number respondents (71 ones) accounting for 77,17% said that they are selecting boiler product by these capacity of product Beside, 16 respondents (accouting for 11,9%) answered that they select boiler product by these power Only
5 respondents select boiler product by shape and size.
The respondents were asked how do you rate brand of boilers of DPE is to as follow:
Table 3.6: Feedback on brand of DPE's boiler
According to the results from the above table, there are 59 customers (accounting for 64.1%) that DPE brand boilers are at average level, 27 customers (corresponding to 29.4%) think this is a Good brand, many people know, only 4 people think this is a very popular boiler brand and only 2 customers (accounting for 2.17%) think this is a strange brand Through a thorough understanding of the 2 manufacturing enterprise customers who made this choice, the author found that they all have in common that new customers started using the boiler products of DPE, through the introduction of the businesses Business partners, so this can be considered as the reason that they think that DPE boiler is a strange brand.
Currently, DPE always believes that price competition is a vital element of industrial boilers Because the current market, when the technical and quality requirements are increasing, besides the issue of ensuring sustainable safety in the industrial environment being concerned, not only boiler products DPE's industry that other competitors' boiler products are improved with more impressive performance, more technology, higher safety and aesthetics In the long term, DPE determines that industrial boiler products will reach the common standard of technical standards, so manufacturing enterprises acting as buyers will always show preference for products more competitive price.
DPE boiler products are divided into different types, from either vertical or horizontal, light or dark, high power or low capacity So, for each type of public boiler Industry, DPE builds different selling prices Depending on the price, the enterprise is able to choose the type of boiler suitable for its production conditions and financial situation However, with the thought that the price of the boiler is the determining factor for whether this product can be sold or not, it is not entirely accurate to the surveys that the author has investigated and analyzed below.
In some surveys with business managers, they said that when talking about prices, they often want a transparent price That is, how much they want companies operating in the same industry to buy DPE's industrial boiler products at a price, at what prices those companies have obtained That is an important basis for them to make basic assessments on the price that DPE offers for boiler products So they often ask for a transparent price If DPE's industrial boiler products can deliver superior criteria compared to other suppliers, customers are willing to pay a high price in return for those benefits.
DPE currently has different product price lists for each customer, depending on each customer, they have different pricing policies For small and medium-sized enterprises, DPE builds reasonable prices for their financial capacity, of course, boiler products corresponding to these needs will be less advanced (poor design more modern, smaller capacity )
Table 3.7: Feedback show the client's assessent of the price of boiler product
The table above shows the client's assessment of the price factor of industrial boiler products produced by DPE jsc Survey results showed that 52 customers rated the average level (accounting for 62.3%), there were 28 customers (30.1%) that the price of DPE boiler products was low, only 2.17% said that this price is very low (4 businesses) and 8 businesses (corresponding to 4.24%) think that this price is high.
Table 3.8: Customer's wishes for the price of DPE's boiler
The table above shows the customers's wishes for the price of DPE boiler products, 74% of customers surveyed said they wanted the price to be 10% lower than the current, remaining, corresponding to 8, 6%, 7.6%, 9.8% customers want lower prices 3-5%, 5-10% and more than 10% respectively.
Achievement and shortcomings
The first success of the company was to successfully build the boiler pressure equipment plant with the first modern Japanese line in Vietnam By building this plant, the company has access to more and more important and potential customers with good quality products, not too high prices, with products that are more suitable for the market Vietnam In addition, the company has chosen the time to build the plant to become the market leader in the field of boiler production This has helped to build the image of the company.
The company recognizes the importance of customer service, which provides a number of rules and regulations specific to technical staff Especially, for large corporate customers with high capacity and continuous operation, the company has a plan to reserve a technician to regularly inspect, warrant, maintain and repair in time The opening of branches in industrial parks in the vicinity of Dong Anh also helps to shorten the time of customer service, enhancing the satisfaction of customers with the company.
The success of the business is to reach the most difficult customers, the most important in the market such as 36 companies Ministry of Defense, Hoa Phat Group, Bibica confectionery company in number The average annual increase of machinery is about 15-25% In addition, the company also has access to other electronic equipment manufacturers such as Yamaha, Honda, Panasonic
The discovery and use of more diversified distribution channels has enabled the company to reach markets faster, more closely and more efficiently In addition, the company increased sales volume with 64% of sales coming from direct sales.
The image of the company has been reported by Vietnam Television (VNA) 's latest news program, MOH' s website (http://www.moh.gov.vn), the website of the Ministry of Science and Technology (http://www.most.gov.vn) and reliable news sites throughout the country With the selection and investment of a national program, the company has made a great contribution to the promotion of the brand and has had a great impact on hospitals and commercial companies in the country.
Specific achievements of the company include:
- During 23 years since the establishment in 1991 we have always done our best to increase our techniques, and the products quality and to improve the models for the best products with resonable cost in the market Our staffs and workers always respect that: “Consumers benefits are our own benefit“
- In 2006-2009: Our products were rewarded asThe best products and services of the year 2008 & 2009 by the Vietnam Business Association under the Ministry of Sciences and Technology.
- In 2008: In 2008, we were certified as a "Golden Viet Nam Company" or our design and manufacture of boilers and pressure tanks by the Vietnam Development and Integration Enterprises
- In 2009, Our company was rewarded the golden cup for "A Development and Integration Compan"
- In Hanoi EXPO 2009 exhibition, we was also subscribed with "Particular products - divertsify goods – the nicest stan" by the Ministry of Industrial and Trade
At present, the company has no specific market segments to clearly identify customer needs in each segment, thereby enabling the company to develop a mix of marketing mix to meet the needs of customers on a segment certain markets or so-called target markets Market segmentation will allow the company to have marketing programs that fit with its market segment and promote business efficiency.
Research and development of new products of the company has not been promoted Derived from the current practical and practical needs of the product line, the company has high quality, the product category has a variety of sizes, shapes and colors, but similar suppliers are showing more breakthroughs in boiler products than DPE On the other hand, the company's boiler products are just one of the many pressure equipment that DPE produces and sells The boiler industry has a high sales but the pot market There are also signs of saturation as the number of suppliers jumps, plus other areas of pressure equipment are also being concentrated more DPE.
The company determines the main selling price by the traditional valuation method (selling price = cost + profit) so the company's selling price is not competitive with many competitors in the market The company's selling price compared to its competitors is average, but if the company determines its target market is a low-volume small business customer for pot products However, the current price of the Company is not competitive Companies are not allowed to split prices by varying degrees but apply equally to all products of the same type.
The distribution network of the company is not large and uneven between the market areas, most of the market is concentrated in the North, particularly in the vicinity of Hanoi and very limited in the Central and not yet in the South.
The company has implemented a number of marketing tools such as advertising on television, participating in programs as sponsors, catalogs, on the website, promotion, PR but not focus on the form of direct marketing sales and direct sales.
On the other hand the frequency of advertising is limited, the scope of advertising propaganda is not far-reaching, not targeting the target customers of the Company The company advertises on Hanoi television (Hanoitv) are the communication channels that the audience area is low, the frequency is not high Consequently, the number of consumers is limited The company has posted outdoor advertising billboards but only concentrated in head office and branch in Me Linh IP, limited advertising area, little known customer In the form of promotional company has not applied much but only once a year on traditional days In addition, the company introduced the product on the company's website is limited while many competitors make registration, design the website where the customer needs can search the information about the product. Product, price, distribution location easily.
The company does not have specialized departments in charge of market investigation, and needs, changes of customers should segment the market and select target market is not implemented thoroughly There is no marketing department to plan solutions and directions for the company.
Currently DPE has only one subsidiary located in Bac Ninh and its subsidiary in the industrial zone with production lines is not good, if 5 years ago with a capacity of 1000 kg of steam / h is standard Now that number has risen to 2,000kg / h, while competitors' products have met this problem, DPE has only a few types of boilers available.
Since the Company has not identified its target market, it should apply the price level almost to the linearization of the pot capacity, apply uniformly to all products of the same size, stand / lie type To attach importance to the development of a flexible price policy suitable to each region, market and customer group Therefore, the company's products are consumed slowly in some areas because the price of products is higher than many other brands and slow consumption in Soc Son area.
RECOMMENDATIONS TO IMPROVE AND DEVELOP
Boiler's development orientation of Dong Anh pressure equipment jsc.41 1 The general development direction of the company
4.1.1 The general development direction of the company
4.1.1.1 The company's vision of DPE Vision 2025
* General objective: By 2025, the company will complete the integration, maintenance and development, become the leading pressure equipment dealers in Hanoi and the North.
- Strengthening the human resources, improving labor productivity and increasing income for laborers.
- Products bearing the DPE brand are well received in the domestic market and in 2025 they can be exported to neighboring countries.
- 2019 - 2022: The period of market expansion to the Central region and product improvement.
- 2022 - 2025: Sealed on the stock market Become a leading company in the field of pressure equipment in the North
4.1.1.2 The specific direction of the company
The company's strategic direction in the coming years is:
- Research to improve the technological process, find alternative ways of using materials from other sources, more competitive but quality assurance to reduce the cost of products.
Arrange the product placement and machine running time to save costs, reduce product cost
- Assigning clear responsibilities and powers of managers of the workshop to ensure creative initiative in the work, rewarding and promptly encouraging individuals with excellent and outstanding work achievements Innovative ideas bring benefits, good production, serious implementation of technological process and equipment operation process, ensuring productivity, quality and efficiency.
- Regularly organize activities, discuss and exchange experiences on common causes of malfunction and remedial measures as well as improvements to improve equipment productivity.
- Regularly inspect and supervise the implementation of work processes and guidelines in accordance with the ISO 9001 quality management system.
- To promulgate the regulation on contracting products and norms for consuming materials for each part
- Maintain and improve labor discipline for all employees in the workshop. More rigorous in labor discipline in the workshop so that everyone also performs the industrial working style, urgently exacting high-quality productivity, assigning specific responsibilities to each individual department to have punctual penalty and punishment.
Based on the business plan, the Company will carry out the production plan and at the same time develop a plan for the supply of raw materials and materials to ensure the completion of the plan, the supply must be done synchronously By the measure of quality control, volume calculation, material preservation with the ultimate goal is to ensure the material is indispensable for production.
- Ensure a stable supply of resources and seek new suppliers to reduce input costs.
- Calculation to maintain a reasonable amount of inventory, optimal to reduce the pressure on working capital but must ensure the level of safety to maintain production as planned.
Given the high cost of production, the domestic market is defined by the Company as the target market The total sales volume and revenue are from this market segment The Company intends to implement the following key measures to strengthen and develop the market in this important market as follows:
- Products and markets: The products will be deployed more strongly in the North market by:
+ Development of product models in both directions: Additional product code of the company and the exclusive model of the customer.
+ Expand the system of consumption agents in the open space to cover the southern and central markets.
Customers in the northern part of the company are familiar with the price and policy of the company These customers are evaluating the company's sales policy and selling price is not reasonable On that basis, the company needs to find out the reasons for the solutions to promote the brand name pressure equipment of DPE such as boilers, industrial valves the release of Sales support policies will be implemented by the Company at favorable times to improve sales and sales.
Together with measures to build and develop the consumption system, the company plans to implement measures to support the business as follows:
+ Organize the training of basic knowledge about technical characteristics of production technology products, marketing knowledge and communication arts in business.
+ Enhancing the product introduction activities through the display of products and Catalog at the shops, agents across the country.
+ Participating in domestic exhibition in economic, trade centers of our country such as Hanoi, Ho Chi Minh City, Da Nang
+ Advertising in newspapers, signboards and mass media.
+ Export market: In 2025, the company will look for export opportunities, it is expected to arrange a staff specializing in this work, activities related to this market will not be limited to gender We also send officers to trade promotion delegations and visit some boiler fair in Laos, Thailand.
4.1.2 Develop the business of boiler products
With the rapid change in judgment, the thought and the habits of the customers, and the development and the superiority of the boiler products, DPE has determined that the market for boiler products is very good Potential and large,especially when the manufacturing enterprises grow, the demand for this product is more and more.
For DPE, identify the boiler products as the strategic product, bring the most revenue, profit and brand to the company, so the company orientation to 2022 with the equipment line Japan will produce at least 85% of the parts and components to be assembled into complete boiler products At the same time reducing costs and setting business goals for the product is to increase its market share in the North from just 14% to 30% in 2025.
For the product, the company determines to regularly adjust, develop, update new features, go ahead market, produce to market high quality products, stable, simultaneously After-sales service is perfect.
In addition, the distribution channel orientation company is focused on direct distribution channels, the next time will approach, expand and further utilize the other retail distributors in each market .
Recommendations to improve and develop marketing mix for boiler at
Market segmentation helps the company meet the needs of its customers based on the group of customers in the market that demand the same needs with a set of marketing stimuli.
To be able to grasp the needs of customers, companies need to study the market regularly to know the different market segments, the demand, tastes of boiler products are also different, changes in demand Customers, the evolution of the internal market, the new product models from which to divide the market accurately.
The company can apply the internal recording system: the reports of the department such as customer care, business, technology, R & D, must be constantly updated and timely report, Reliable, regular consumption of products, Based on the characteristics and utility of boiler products, we can segment the market under the criteria such as:
+ Market segment by geography: Northern, Central, Southern (Mountain,midland, delta)
+ Segmentation by customer size: Small business customers, small and medium enterprise customers, large enterprise customers.
+ Segment by product characteristics: High capacity products, medium capacity products, low capacity products
Based on the market segment for boiler products Based on the strengths and weaknesses of the company and the market from which the company selects the target market to be most effective when implementing marketing mix variables.
DPE company has advantages due to good investment in machinery and equipment, skilled labor force, product price is not too high, the source of production is plentiful However, the capacity of the DPE boiler is not high, the models are not diversified as many competitors, distribution and promotion systems are not focused in business On the other hand, the Company is not currently a company with strong financial strength to be able to compete with the reputable, long-time competitors in the market, the brand is known as the company: boiler in Hanoi, Phu Hung pressure equipment company Dong Anh boiler today is a familiar brand for the small and medium industrial enterprises, because they are both Satisfied with the price and quality of the Dong Anh boiler, in line with their financial situation and needs While large companies favor high capacity boilers, the choice of such products at DPE is very limited.
4.2.3 Research and develop new boiler products
Nowadays, all the advantages of traditional or modern boilers are present onDPE boiler products But due to the orientation of the target customers are only small and medium enterprises, so large capacity boilers are only mass produced according to the orders placed, because So the models and products on display are not enough to introduce to customers Therefore, in parallel with the expansion of target customers to large corporate clients, DPE needs to develop new, safer and more advanced foreign-based boiler products Ensuring the cost factor and profitability of DPE from the boiler products sold.
4.2.4 Improve the competitiveness of the price
As mentioned above, DPE's boiler products are priced at VND30 million higher than other suppliers (same type, same capacity, same capacity) At first glance, this is not a big deal for businesses, but for a device worth about 300 million, it accounts for 10% of the cost Therefore, the company should quickly stabilize production, calculate the cost of production to provide better product pricing, in line with the company's target.
Currently the company is having only one pricing policy for all distributors, all product models, as well as in all areas where the company This is unreasonable with the current economic conditions and business conditions The Company should develop a more specific and reasonable pricing policy by presenting in a formal and consistent manner the whole distribution system of its preferential policies.
The company uses a variety of distribution channels in each market. However, pricing policies for these distribution channels are the same, without discrimination or incentives for effective distribution channels Therefore, the company should divide the distributors into different levels depending on the results of the cooperation over time such as seniority, sales results of the distributor, sales potential, the position of Distributors Each level of distribution channels will have different incentives, discounts, maintenance support The division of the hierarchy helps distributors to see equity and helps motivate long-term relationships with the company and prioritize sales of the company.
The complete marketing mix for boiler products at Dong Anh Pressure Equipment Joint Stock Company is very necessary, not only overcoming the shortcomings in marketing activities of the company but also helping to identify the right market , customer, increase sales volume, build brand image for boiler products Contribute to improve economic efficiency, increase production capacity through investment in breadth and depth investment, improving step by step material and spiritual life for staffs of the Company.
The dissertation has studied in depth some issues:
The thesis has shown the theoretical basis, the need to apply solutions to complete Marketing Mix for boiler products at Dong Anh Pressure Equipment Joint Stock Company
- Theoretical: The author mentioned the content of marketing mix components in the business enterprises in general including: Market segmentation and selection of target market, product policy, main price books, distribution policies and mixed promotion policies, the factors that affect marketing mix in the business and production in particular include:
- On the practical side: Thesis has analyzed the current situation of marketing mix for boiler products at DPE Company including: Market segmentation defining target market, product policy, policy price, distribution policy, mixed promotion policy.
The author has pointed out the shortcomings and causes to overcome specific as: Products of the company has not diversified in type, capacity and capacity, the price on the market is high compared to many competitors Competing on the same target market, the distribution system of the company has not yet identified the focus on the market, the promotion tool is not really effective so the product is not widely known to consumers , the output is not reached the design capacity, the product price is high is not suitable for customers, so the competitiveness of products compared to manufacturers in the industry is limited.
- Based on the analysis of the situation, the author has proposed some solutions with the desire to contribute a part to the renovation and improvement of Marketing Mix for boiler products at DPE Corporation include:
+ Perform market segmentation, identify the target market for the company. + Building and developing new products
+ Enhancing the competitiveness of prices
In the competitive market economy, in order to survive and develop in both breadth and depth, the author argues that the completion of marketing mix for boiler products at the Equipment Joint Stock Company East England pressure is needed. And applying this topic to the marketing activities of the company requires managers to apply creatively from time to time to promote the effect of the topic.
IN - DEPTH INTERVIEW WITH DIRECTOR
IN - DEPTH INTERVIEW WITH DIRECTOR
First of all, i would like to say thank you for your sharing your time with me here I have some questions for marketing mix for Boiler products in your company and your point of view in relation to development orientation and could you please help answer me.
1 In the current context when more and more businesses are manufacturing and trading pressure equipment such as boilers involved in the market, DPE companies will face many competitors, how do you assess the difficulties and challenges for Boiler?
2 How do you assess about Boiler development in the years to come?
3 Could you please have some comparison with other competitor in the market especially VBC?
4 What are the shortcomings of boilers?
5 How do you assess about boiler's marketing mix?
6 What are the shortcomings of the marketing mix boiler?
End of questionnaireThank you so much for your kind cooperation!
IN - DEPTH INTERVIEW WITH MARKETING MANAGER .51
IN - DEPTH INTERVIEW WITH MARKETING MANAGER
Dear Mr Doan Tuan Phong
First of all, i would like to say thank you for your sharing your time with me here I have some questions for product of boiler in your company and your point of view in relation to development orientation if your company imporve its marketing mix, could you please help answer me.
1 Do boiler product in your company have any difference from other competitors?
2 What are the target customers of your company's boiler products in the market?
3 What should be the marketing mix components to apply for boiler?
4 What is your development orientation and marketing strategy to promote your boiler products in the very competitive market?
End of questionnaireThank you so much for your kind cooperation!
IN - DEPTH INTERVIEW WITH 05 EXISTING CUSTOMERS 52
IN - DEPTH INTERVIEW WITH 05 EXISTING CUSTOMERS
Thanks for your being here in my focus discussion group; i have some questions of boiler products, could you please help answer me.
1 What do you think of quality of boiler product?
2 When looking at boiler product, what do you notice?
3 What do you think of boiler product's design?
4 What else do you expect from boiler product's design?
5 What do you think of boiler product's price?
6 Do you think boiler product should be reduced its price?
7 Where do you offen buy boiler product?
8 Which way that you get information of boiler product from?
9 Do you have recommendations for place of distributing these boiler products?
Thank you so much for your answers!
SURVEY FORM
With a view to serving you better when using boiler product, please help us to answer the following questions.
Full name: Company: Job : Types of boilder that used:
1 What do you think of boiler product's quality? a, Very bad b, Bad c, Average d, Good e, Very good
2 How do you evaluate the quality of boiler product? a, Product's information b, Comparing with others c, Actual use of the products
3 What the first standard for you selecting boiler products? a, Shape, size b, Capacity c, Power
4 What do you think of the design of boiler products? a, Very bad b, Bad c, Average d, Good e, Very good
5 How do you rate brand of boilers of DPE? a, Very strange b, Strange c, Average d, Well know e, Very popular
6 What do you think of DPE boiler's price? a, Very high b, High c, Average d, Low e, Very low
7 How much percent that you want price of DPE boiler be lower? a, 3-5% b, 5-10% c, 10% d, More than 10%
8 Is it easy for you to buy boiler of DPE? a, No b, Yes
9 Where do you usually buy boiler? a, Warehouse b, Agency c, Other
10 Where did you notice about boiler of DPE's brand? a, Television b, Newspaper c, Internet d, Other ( )
11 What is the first choice when you make decision of buying boiler products? a, Quality b, Price c, Brand
12 What do you recommend for improving boiler's product:
Thank you for your cooperation!