Overview of research situation
Creating a robust marketing strategy is essential for all enterprises, as it guides the company’s growth and helps implement the business plan effectively A well-structured marketing plan fosters step-by-step relationships with customers, ensuring successful execution of business objectives Numerous studies have explored the development of marketing strategies within various organizations.
Luu Vinh Hao's 2014 Master's thesis in Business Administration focuses on developing a comprehensive business strategy for Dong Hai Joint Stock Company of Ben Tre for the 2015-2020 period The study integrates theoretical frameworks with practical insights from the company, offering strategic solutions to align with its goals during this timeframe.
Nguyen Thi Tuyet Nhung's master's thesis in Business Administration, titled "Building Business Strategy at Hanoi Synthetic Paint Joint Stock Company (2013-2017)," examines the company's business environment and current conditions The study aims to develop a comprehensive business strategy that provides a clear framework for creating actionable plans to achieve desired outcomes.
The thesis employed statistical and synthetic analytical methods to evaluate the current manufacturing and export conditions of the enterprise The author highlighted key environmental factors and pinpointed strategic opportunities, ultimately applying theoretical frameworks to develop an effective business strategy.
Nguyen Ba Cuong's Master's thesis in Business Administration, titled "Building Business for the Period of 2017-2025," evaluates Vinamilk's production and business landscape, identifying its strengths, weaknesses, opportunities, and threats The research culminates in a strategic business plan aimed at guiding the company’s growth until 2025, effectively applying theoretical knowledge to practical scenarios for optimal strategy development.
Research on "Building business strategy of Truong Son Construction Corporation till 2020" by Nguyen Hai Son (2014), Finance Magazine No 3 -
Founded on May 19, 1989, Truong Son Construction Corporation (Army Corps 12 - Ministry of Defense) carries forward the legacy of the legendary Ho Chi Minh Trail As a major state-owned enterprise in the construction sector, it operates within a centralized, bureaucratic framework, which has resulted in limited flexibility in business strategy and development This dependence on state directives has left the corporation reactive rather than proactive in employment and business initiatives Therefore, research is crucial for the Corporation to strategically and effectively enhance its business operations.
Tran Thi Anh Tuyet (2016) researched the development of a marketing strategy for Haiha-Kotobuki Joint Venture Company Limited for the period of 2017-2020 The study provided an overview of strategic management theories, analyzed the marketing environment, and constructed a SWOT matrix It also involved the analysis and selection of target markets, definition of marketing objectives, formulation of the marketing strategy, and the development of an action plan based on the company's research results.
In 2015, Nguyen Van Dung conducted a study titled "Building Marketing Strategies at Duc Tran Co., Ltd," aimed at systematizing marketing strategy theories and assessing the company's current situation The research analyzed the foundational elements for developing effective marketing strategies tailored to Duc Tran Co., Ltd's growth objectives for 2015-2020 Key contributions of this study include the clarification of theoretical frameworks for marketing strategy development, a detailed analysis of Duc Tran's marketing strategy foundations, and strategic recommendations aligned with the company's goals for the specified period.
In her 2011 PhD thesis titled "Developing Competitive Strategy for Vietnamese SOEs," Pham Thuy Hong discusses competitive strategies for State-Owned Enterprises (SOEs) but lacks specific conclusions and methodologies regarding the development of business and marketing strategies.
Despite numerous projects focused on creating marketing strategies for enterprises, there is a notable lack of research specifically addressing the development of marketing strategies within Water Resources Technical and Consultant firms Consequently, the scope and timeline of this thesis do not align with existing published works.
Research objectives
- Systematize the theoretical issues of marketing strategy
- Analyze actual situation of the development of marketing strategy at the Center for Water Resources Technical and Consultant
- Propose marketing strategy for the Center for Water Resources Technical and Consultant
Research subjects
Theoretical and practical issues on developing marketing strategy at the
Research scope
Scope of content: Study the basic contents to build the marketing strategy for the state unit in the context of the current market economy
Scope of space: At the Center for Water Resources Technical and
Scope of time: Collected survey data from 2015 - 2017
Research Methodology
Secondary data is sourced from the Ministry of Planning and Investment and the Center for Water Resources Technical and Consultant This data is essential for identifying the internal and external factors that influence the development of marketing strategies at the Center for Water Resources Technical and Consultant.
Primary data was gathered by examining the work of experts at the Center for Water Resources Technical and Consultant to develop the External Factor Evaluation (EFE) matrix and Internal Factor Evaluation (IFE) matrix The author assessed the relationship between the center's operations and the environment A total of 20 experts were surveyed for this research.
Data after collection will be processed and calculated by Excel software for statistics in the form of tables Thereby, the author will easily analyze and evaluate.
Structure of the thesis
The thesis is divided into 03 chapters with the titles of each chapter as follows:
Chapter 1: Rationale of Marketing Strategy Development Chapter 2: Actual Situation of Marketing Strategy at Center for Water Resources Technical and Consultant
Chapter 3: Proposal of Marketing Strategy for the Center for Water Resources Technical and Consultant
RATIONALE OF MARKETING STRATEGY
Marketing Strategy
To enhance efficiency, competitiveness, and profitability, businesses must conduct thorough information surveys on consumer demand for their products and assess the market potential of competitors By analyzing this data, companies can perform market segmentation, identify key markets, and tailor their marketing tools accordingly A well-defined marketing strategy ensures that an enterprise's activities are systematically aligned with the specific characteristics of the market, ultimately driving success and growth.
A marketing strategy serves as a structured framework that guides a business in addressing its marketing objectives It encompasses tailored strategies designed for distinct target markets and customer segments, ensuring effective engagement and outreach.
Marketing strategy is the systematically comprehensive combination between mixed Marketing and key market Mixed marketing parameters are developed and targeted to a specific customer group (target market)
Marketing Mix is a set of variables that the business can control and manage The components of Marketing Mix include: product, price, distribution and promotion strategy
Marketing serves as a strategic framework for businesses to effectively allocate resources in pursuit of their goals while leveraging existing strengths and competitive advantages This encompasses various elements such as products, services, personnel, and brand image By coordinating pricing, advertising, product design, and distribution efforts, companies can establish a dominant market position, influence stakeholders, and align their offerings with the target audience.
Role, importance of marketing and marketing strategy
Marketing is crucial in business, serving as a vital link between buyers and sellers by identifying and addressing the genuine needs of consumers To align with organizational goals, management formulates a comprehensive marketing program that encompasses the analysis of market opportunities, research and selection of target markets, and the development of effective marketing strategies and plans This process also involves the execution and evaluation of marketing efforts to ensure optimal results.
+ Marketing and marketing strategies are utilized to solve basic economic problems of business, including:
Firstly, identify type of product that the company needs to supply the market
Secondly, arrange product delivery processs carefully with the simultaneous participation of the three elements of technical including infrastructure, direct staffs and customers
Thirdly, the handle harmoniously of beneficial relationships among the customers, employees and management side
Addressing these issues will help to motivate the operation of the business, from which maintaining and developing the relationship between the business and customers
+ Marketing and marketing strategy become the bridge connecting the operation of the business to the market
An essential responsibility of marketing is to establish a competitive position within the market, which is intricately linked to product development for the target audience Marketing and marketing strategies play a crucial role in this process by fostering product uniqueness.
Second, clarify the importance of the distinction to the guest
Third, create the ability to maintain the advantage of the distinction of the business
Through identifying and maintaining the advantages of the distinction, marketing and marketing strategies help the businesses develop day by day and improve their competitive position in the marketplace
The importance of marketing strategy in the enterprise
To thrive and grow, businesses must establish clear goals and work diligently to achieve them Relying solely on experience and intuition is insufficient for success; therefore, strategic planning for all business activities is crucial A well-defined strategic plan enables businesses to gain a deeper understanding of their objectives and enhances the coordination of their operations Additionally, strategic planning allows managers to approach business challenges systematically, fostering positive transformations within the organization.
A well-defined marketing strategy is essential for businesses to secure a competitive edge and adapt to the dynamic business environment It serves as a foundation for entrepreneurs to initiate synchronized marketing activities These activities encompass researching and analyzing both internal and external factors, assessing the company's current situation, and formulating effective policies regarding products, pricing, distribution, and promotion to reach desired objectives.
A well-defined marketing strategy is essential for every business, as it serves as the foundation for developing a comprehensive marketing program This strategy not only guides the organization of various corporate activities but also plays a crucial role in effective marketing management.
Content Of Marketing Strategy
This thesis explores the 4P marketing model, a widely utilized framework in enterprises, which encompasses four key strategic components: product strategy, price strategy, distribution strategy, and promotion strategy.
Image 1.1 : Research model of the thesis
The specific content of the strategies in the research model is presented as below
Traditionally, a product is defined as a combination of observable physical and chemical properties that create a usable item In manufacturing, products possess two key attributes: value and utility.
From a marketing perspective, a product encompasses anything that can be promoted to generate interest, facilitate purchase, and fulfill a need or desire Products can include tangible items, services, individuals, locations, organizations, and even concepts.
Today, consumers who buy a product pay attention to not only using value but also many other aspects of the product such as elegance,
Product strategy Price strategy Distribution strategy Promotion strategy
Thus, understanding of products from the perspective of marketing is more broad, helping businesses to research the product, from which outlining more complete and effective strategy
The core aspect of a product addresses the essential question: "What do buyers truly desire?" Consumers typically seek specific benefits associated with each product, highlighting the importance of understanding the underlying ideas that drive their purchasing decisions.
- Realization Part of the Product is the basic form of the product, including 5 elements such as characteristics, labels, packaging, quality, design of the product
- Supplemental Part of the Product in cludes additional services and benefits that distinguish it from the competitor's product It includes accessories, service places, after-sales service, warranty, delivery
In today's competitive landscape, driven by advancements in science, technology, and information systems, customers are not only focused on price but also prioritize quality, design, and service.
Modern businesses are increasingly focused not only on fulfilling customer demands but also on anticipating and stimulating them This proactive approach involves creating products that address future needs, positioning companies ahead of the market curve.
Marketing plays a crucial role in deciding what products to create, how to manufacture them, and the best methods for selling As the cornerstone of the production and business process, a well-defined product strategy is essential It demands creativity and keen observation from enterprises, focusing not just on current market trends but also on anticipating future demands This approach enables businesses to develop products that cater to the evolving and diverse needs of customers.
Product strategy is quite broad and includes following main directions + Category strategy
In a constantly evolving market influenced by factors such as time, space, gender, age, occupation, and income, businesses cannot achieve stable and sustainable growth by relying on a single product type To mitigate risks and adapt to changing consumer demands, enterprises must implement a well-defined product category strategy.
Product brand repositioning is essential for manufacturers to adapt to market changes, as competitors may introduce similar products that threaten market share Shifts in consumer preferences or product relevance necessitate a strategic update, which may involve altering the product itself or its branding Marketers must ensure that the new positioning aligns with the original brand identity to retain existing customers while attracting new ones, thereby sustaining and growing the market presence.
Brand expansion strategies involve leveraging a successful brand name to introduce new or innovative products, allowing businesses to save on advertising costs associated with launching a new brand This approach facilitates quicker market acceptance of the new products, enhancing overall brand recognition and consumer trust.
Market feedback is crucial for businesses as it reveals consumer preferences, allowing companies to identify which products to retain and which to eliminate By cutting ineffective products, enterprises can conserve resources and concentrate on developing successful offerings.
Product modification strategy enables manufacturers to innovate without developing entirely new products By enhancing existing products, businesses can create new offerings while maintaining core technical characteristics Simple changes, such as updated packaging, can significantly boost consumer demand, particularly for items like canned goods.
+ Strategy on product quality There are three kinds of product quality strategy:
To enhance product quality, a comprehensive strategy focuses on technical improvements, including increasing durability, safety, and lifespan This involves modifications in style and size, as well as careful attention to color and taste Additionally, the strategy includes changing fabrication materials, eliminating defective components, and replacing them with customer-relevant alternatives Furthermore, it aims to improve usability and maintenance, ensuring easy access to spare parts, ultimately creating a more satisfying experience for consumers.
- Strategy to maintain product quality: Many companies maintain the original quality of the product unless there are obvious mistakes or new tastes requiring changes
Some companies initially launch high-quality products to capture significant market share, but later reduce quality to offset higher costs, hoping consumers won't notice the difference While this strategy may boost short-term profits, it ultimately jeopardizes long-term profitability.
To enhance market share and address diverse consumer needs, businesses can implement a strategy focused on product diversification and innovation This approach involves developing new products for existing markets as well as exploring new market opportunities By renewing product categories, companies can boost consumption volumes and tap into new market segments, ultimately extending their reach and reducing the risk of product obsolescence.
The essence of the product strategy is to the flexiility, quick response and timely decisions, ensuring that new products are always availble in case the market is stagnating
Procedure of Marketing Strategy Development
Marketing goals align closely with organizational objectives, especially in businesses that prioritize marketing In such cases, the target audiences for both are the same These goals are typically defined as performance standards or specific tasks to be accomplished within a set timeframe.
Marketing goals serve as a foundational framework for developing effective marketing strategies These objectives are derived from comprehensive analyses of market capacity and the company's marketing capabilities, utilizing product-related data, competitive landscape insights, and marketing environment assessments By leveraging this information, businesses can identify market potential and select target ideas that align with their marketing strengths.
The economic environment plays a crucial role in shaping business operations, with factors such as economic growth, recession, inflation rates, prices, unemployment, income levels, and credit policies significantly influencing enterprise performance Many companies struggle despite effective planning, as they often fail to anticipate or adapt to shifts in both domestic and global economic conditions.
Technology serves as the foundation of market competition, significantly influencing the products available to consumers and shaping the manufacturing processes of enterprises.
The political-legal environment significantly impacts business operations, with both political and legal factors playing crucial roles Local government politics directly influence company operations, but the central government's role is particularly prominent Political institutions shape a country's economic and social policies, which businesses must adhere to Additionally, legal factors serve as essential benchmarks for business performance, affecting daily operations and necessitating close attention from companies.
To effectively navigate the socio-cultural environment, businesses must conduct a comprehensive analysis of social factors to uncover potential opportunities and risks These factors, including anthropological trends, consumer preferences, ethical standards, and perceptions of living standards, tend to evolve gradually, making their identification challenging Therefore, it is crucial for enterprises to examine the impact of these social elements on their strategic planning to ensure informed decision-making and adaptability in a dynamic marketplace.
Quality of life, entertainment preferences of the social class
Situation of human resources such as female labor force, labor reserve situation
Culture and occupation level of the population and employees
Cultural traditions and social customs
Religions, the role of religions in social life, religious conflicts
Demographic situation: population growth rate, population structure
The micro environment encompasses internal and external factors that shape competition within an industry According to M Porter, five key elements influence this environment: competitors, customers, suppliers, potential new entrants, and alternative products These interconnected factors significantly impact business operations, making it essential to analyze them for effective marketing strategies By understanding these elements, businesses can identify their strengths and weaknesses, as well as the opportunities and risks they face.
Source: Micheal Porter, 1996 Current competitor
Current competitors are businesses within the same sector striving to boost sales revenue and profits by implementing strategies that disadvantage others In a limited market, these companies compete for market share by lowering prices, enhancing advertising and promotions, persuading customers, improving product quality, differentiating their offerings, and creating added value for consumers.
In the supply market, in the near future there will be new competitors Although they haven’t appeared, business strategists must predict this
Alternative products Potential competitors and experiences Once appearing, they will compete with the business on three sides:
- Winning consumption market of the products with many different tricks
- Buying materials with more flexible and attractive policies,
- Attracting qualified and skilled workforce through competitive incentive policies,
Businesses supplying manufacturing components, including machinery, equipment, spare parts, and transportation services, can exert price pressures and influence supply and payment methods, potentially impacting company profits However, these suppliers also present valuable business opportunities To mitigate the challenges posed by this environmental factor, companies can leverage competitive advantages in their supply chains, form strategic alliances, and establish supply contracts.
In a competitive marketplace, a product or service that meets customer needs is not guaranteed to remain unique, as alternative offerings will eventually emerge Other manufacturers can also fulfill customer demands, often introducing improved versions of existing products through innovations and advancements in science and technology These alternatives frequently provide enhanced benefits and lower prices, making them more appealing to consumers.
The emergence of alternative products puts pressure on the profitability of existing offerings and diminishes market share for businesses To mitigate this risk, it is essential for companies to invest strategically in research and development.
Customers play a vital role in business success as they are the primary purchasers of products Businesses must prioritize customer benefits and implement strategies to achieve the highest levels of satisfaction regarding product quality.
For successful business strategies, it's crucial to focus not only on product quality but also on understanding and catering to customer preferences and needs Companies should prioritize researching customer tastes and requirements to enhance their offerings effectively.
- Customers have the habbits to choose the products according to which methods?
- Customers’ habbits of using products
1.3.4 Matrix evaluating external factors (EFE)
The EFE matrix is a strategic tool designed to assess external factors impacting a business, highlighting key opportunities and threats in the environment By utilizing this model, executives can evaluate how effectively the company responds to these external influences, ultimately determining whether the conditions are advantageous or challenging for the organization To establish the matrix, specific steps must be followed to ensure accurate analysis and informed decision-making.
Table 1.2: EFE matrix summary table External factors Importance level Phân loại Importance score
Source: Nguyen Thi Lien Diep (2006)
- List the major risk and opportunity factors which are believed to affect
- Classify the importance on a scale of 0 (Unimportant) to 1 (very important) The importance of each factor depends on the level of influence on the business of the business
- Determining the weight from 1 to 4 for each factor, the weight depending on the level of response of the company to each factor
- Multiply the importance to each factor and its weight to get the corresponding score
- Plus the score of all the factors to get total score of the matrix
The higher the total score is, the better the company responds to the opportunities and threats
To effectively analyze an enterprise, it is crucial to evaluate internal factors that reveal its strengths and weaknesses, focusing on key areas such as finance, accounting, human resources, and production By understanding the interrelationships among these factors, the company can establish strategic goals that align with external opportunities and threats, enabling it to leverage its strengths and address its weaknesses for improved business performance.
Evaluate the production capacity and operation of the enterprise
ACTUAL SITUATION OF MARKETING STRATEGY
Introduction of Center for water resources technical and consultant
Transaction name: Center for water resources technical and consultant Head office: No 93, Lane 95 Vu Xuan Thieu, Sai Dong, Long Bien, Hanoi Website: www.cewaco.gov.vn
The Center for Water Resources Technical and Consultant, previously known as the Center for Water Resources Consultant and Planning and Investigation Service, was established on December 1, 2017, under Decision No 336/QD-TNNQG It operates as a unit within the National Center for Water Resources Planning and Investigation.
Since its foundation, the Center for water resources technical and consultant has participated in many key projects all over the country
The Center for Water Resources Technical and Consulting boasts advanced equipment and technology, supported by a highly skilled team of managers, technicians, and experienced workers This expertise has enabled the successful implementation of numerous high-quality, long-term projects, as recognized by investors Key services include water resources planning for provinces and river basins, establishment and operation of monitoring networks, and consultancy for applications related to underground water exploitation and surface water use for daily activities and production.
We specialize in monitoring and analyzing water quality through regular reporting for surface water stations and underground water wells Our services include exploration drilling for underground water extraction, the construction of water treatment systems, and the establishment of transmission networks We also implement an internet-based monitoring and operational system for water exploitation, ensuring comprehensive management of water resources and environmental activities.
The National Center for Water Resources Planning and Investigation prioritizes project quality and reputation, establishing a strong foundation for its ongoing development and success.
MECHANI CAL APPLICAT ION DEPARTM ENT
According to Decision No 336/QD-TNNQG issued on January 1, 2017, by the General Director of the National Center for Water Resources Planning and Investigation, the Center for Water Resources Technical and Consulting is tasked with conducting technical and technological activities related to the investigation, planning, monitoring, exploitation, and utilization of water resources Additionally, the center is responsible for the rehabilitation and restoration of water sources, as well as providing consultancy and services in the field of water resources in compliance with legal regulations.
- Implementing techniques and technologies in the field of water resources planning, survey and assessment;
The investigation and evaluation of water sources involve creating comprehensive water resource maps and assessing the current status of water exploitation and usage This process includes analyzing wastewater discharge levels and the capacity of water sources to receive wastewater, as well as identifying critical thresholds for water storage areas Additionally, it is essential to designate areas where water exploitation should be banned or limited and to determine the minimum flow requirements for rivers to ensure sustainable water management.
This article focuses on assessing the detrimental effects of water-related issues and the impacts of climate change on water resources It emphasizes the importance of identifying the capacity for artificial groundwater replenishment and conducting research on geothermal, hot, and mineral water sources Additionally, it highlights the significance of studying engineering geology and geohazards associated with water resources.
- Implementing techniques and technologies in the field of monitoring, exploitation, utilization and rehabilitation of water sources;
- Developing the monitoring network; Designing, executing and constructing exploration and exploitation projects and the system of supplying clean water; Designing, constructing wastewater treatment works and
- Manufacture, process, repair equipment, mechanical products of drilling, pumping, geophysical, water treatment and other equipment related to water resources
- Carrying out programs, project and scientific research topics on water resources
Our consultancy services encompass a wide range of activities, including the planning, investigation, evaluation, and exploration of water resources We assess the current status of water resource exploitation, wastewater discharge, and the capacity of water sources to receive wastewater Additionally, we analyze the impact of climate change on water resources and identify areas for limited or restricted groundwater exploitation, as well as protection zones for water extraction Our expertise also includes designing and executing projects such as artificial groundwater recharge, establishing monitoring networks, supervising water resources, drilling hole filling, and constructing transmission networks and treatment systems for water supply and wastewater management.
We provide expert consulting services for the preparation of application dossiers for permits related to water resource exploration, exploitation, and usage Our offerings include the development of application dossiers for wastewater discharge permits, as well as project planning, design consultancy, and supervision for programs and projects in the water resources sector Additionally, we specialize in water treatment technologies and wastewater management solutions.
International collaboration in water resource management involves implementing programs and projects, exploring research topics, and applying scientific and technological advancements This initiative focuses on the transfer of knowledge and technology related to water resources, as directed by the General Director.
Effective management of organizational structure and staffing is essential for the Center, aligning with occupational titles and employee numbers as decentralized by the National Center for Water Resources Planning and Investigation, in accordance with legal regulations.
2.1.4 Manufacturing and business status of the company
Table 2.1: Manufacturing and business status of the Center
The analysis of the audited financial statements from 2015 to 2017, as presented in Table 2.1, reveals that the Center for Water Resources Technical and Consultant experienced a continuous increase in total assets, which reached 135.6 billion This growth indicates an improvement in the Center's production efficiency over the assessed years.
2017, increasing 5.1% compared to 2016 While the total assets of the Center constantly increased, the current assets of the Center signed down rapidly.In
This shows that the increase in total assets at the Center for the period of 2015-
In 2017, significant growth was driven by the acquisition of long-term and fixed assets, including advanced geological survey drilling systems The center invested in drilling machines such as the XY-100, XY-1A, and YГБ-50M, which are capable of drilling holes between 100 to 150 meters in various water bodies, including rivers, lakes, and shallow seas, while adhering to technical standards like ASTM and BS.
The Center for Water Resources Technical and Consultant has experienced consistent revenue growth over the years, with 2017 revenue reaching VND 80,381 million, a 1.5% increase from 2016 The primary sources of this revenue include water resource planning and construction services, particularly in water supply systems Service turnover is calculated in accordance with Joint Circular No 75/2012 and is submitted for approval to the relevant authorities Alongside the revenue increase, the Center's profit after tax also rose significantly, reaching VND 2,184 million in 2017, marking a substantial 32.5% increase compared to the previous year.
The Center for Water Resources Technical and Consultant has consistently seen annual increases in revenue and profit, yet the growth rate remains modest This is largely attributed to the company's low production and business efficiency, primarily driven by escalating annual expenses.
Analysis of the marketing environment at the Center for Water
2.2.1 Macro-environmental analysis 2.2.1.1 Economic environment
In recent years, our country's economic growth rate has ranged from 6% to 7.5%, with a notable 7.24% in 2003 If GDP growth continues at this pace, it could reach 7-8% in the coming years, creating favorable conditions for businesses This growth will boost per capita income and enhance daily consumption capabilities, thereby stimulating production and consumption processes Additionally, the rise in industrial zones has increased the demand for services from the Center for Water Resources Technical and Consultant, largely due to heightened environmental pollution.
In the period of 2015-2017, the number of industrial parks in Vietnam was as follows:
Diagram 2.1: Number of industrial zones in Vietnam at the present
Source: Ministry of Planning and Investment
Between 2015 and 2017, the number of industrial zones in the country rose from 296 to 345, highlighting significant industrial growth However, this expansion has raised serious environmental concerns, particularly regarding water pollution and the demand for clean water services Communities, especially in heavily polluted areas, are increasingly focused on the need for effective water quality treatment, management of water resources, and reliable clean water transportation services.
That above demands for clean water of the community is increasingly appreciated has created opportunities for the business activities of the Center for Water Resources Technical and Consultant
In recent years, the Party and State have prioritized management and environmental protection, particularly regarding water resources Significant policies and legal frameworks have been established, including the 2005 Law on Environmental Protection and the revised 2014 Law on Water Resources, which originally emerged in 1998 The National Strategy for Environmental Protection has been outlined through 2020, with a vision extending to 2030 Notably, in 2009, the Prime Minister endorsed the National Strategy on Water Resources aimed at 2020 A series of new decrees and legal documents have been introduced to enhance environmental and water resource protection, impacting the operations of the Center for Water Resources Technical and Consultant.
Table 2.2: Some Regulations on Environmental and Water resource protection
Penalties for administrative violations against regulations on environmental protection
Environmental and Water resource protection
Rights and obligations of enterprises operating within industrial parks, economic zones and investors putting their stakes in development of infrastructure in industrial parks and economic zones
Sanction of administrative violations in domain of water resources and minerals, effective from 15/12/2013
Detailing the implementation a number of articles of the Law on Water Resources
Penalties for administrative violations in the field of water resources and mineral, effective from 15/12/2013
Permits for exploration, disintegration, consumption of water resources, discharge of wastewater into water sources
Numerous legal documents have been established to safeguard the environment and water resources, outlining specific provisions for water quality management and environmental protection These decrees and policies emphasize principles for protecting water environments, regulate pollution control and treatment, address water environment degradation, and promote clean water supply and sanitation.
The Ministry of Natural Resources and Environment has released circulars that outline the capacity for receiving wastewater and establish technical and economic norms for surveying water exploitation and wastewater discharge These guidelines also promote standards for managing and protecting the water environment, including a national technical standard system for the water quality of rivers and lakes, as well as standards for domestic and industrial wastewater.
Despite the existence of policies and legislation aimed at protecting environmental and water resources, the current legal framework remains inadequate and incomplete Most documents primarily focus on environmental inspections and administrative penalties, with limited reference to economic tools like wastewater charges Additionally, there is a lack of specific guidelines for crucial pollution control measures, such as the investigation, statistics, and assessment of waste sources Consequently, these legal documents fail to effectively influence compliance with water resource protection laws among enterprises.
The advancement of science and technology has provided enterprises and organizations with optimal conditions to integrate modern machinery into their production processes In the realm of environmental monitoring and water quality control, the application of these technological innovations has significantly evolved.
In 2016, the Department of Natural Resources and Environment initiated the project "Application of Information Technology to Control Environmental Pollution in Ha Tinh Province." This research led to the development of ENVIMHTi software, which is now utilized for systematic environmental monitoring and effective data processing Consequently, the management, prevention, and investigation of environmental pollution and accidents, particularly concerning water environments, have significantly improved in reliability.
In 2017, the Federal Republic of Germany implemented effective environmental pollution treatment technology for plant protection chemicals in Hamlet 8, Cam Thang commune (Cam Xuyen) This innovative technology has significantly improved the management of discharge sources and enhanced waste monitoring within the commune.
The Department of Natural Resources and Environment has recently launched the Automatic Monitoring Station Operating Center, which utilizes a software system for continuous 24/7 data connection and transfer This center monitors wastewater and emissions from significant sources, including the Formosa Ha Tinh Project and Vung Ang 1 Thermal Power Plant.
- Ha Tinh Brewery At the same time, the Department also developed software waste transportation vehicles through the installation of cruise control equipment (application of GPS technology)
The recent advancements in science and technology have provided the Center for Water Resources Technical and Consultant with opportunities to enhance its operational efficiency through the integration of software for monitoring water quality and environmental pollution However, the Center's reliance on technology means that any changes in this field significantly influence its development strategies Despite substantial investments in its technology system, the Center faces challenges due to the outdated technology infrastructure in the country, which lags behind regional and global standards Additionally, there is a shortage of qualified scientists and technicians, and existing policies related to science and technology have not been adequately addressed The critical role of science and technology is often overlooked, and the high costs associated with technology transfer further complicate decisions regarding the importation of advanced machinery and equipment for water resource monitoring and drilling activities.
The ever-evolving socio-cultural environment, marked by a population exceeding 90 million, has significantly heightened the demand for clean water This surge in necessity has prompted the establishment of clean water plants to meet public needs Consequently, there is an increasing requirement for regular inspection and analysis of water resources, which presents valuable opportunities for the production and business initiatives of the Center for Water Resources Technical and Consultant.
Environmental pollution is on the rise, particularly in major cities and industrial zones, due to inadequate urban planning that fails to address waste and wastewater treatment issues Out of 345 industrial parks across the country, which generate over 550,000 cubic meters of wastewater daily, only 5% are equipped with centralized wastewater treatment systems.
787 municipalities with 3,000,000 m3 of waste water per day However, most of them have not been processed with nearly 43 million motorcycles and over
With approximately 2 million cars on the roads, significant environmental challenges arise from the direct discharge of nearly untreated wastewater, which is tainted with oil, grease, chemical detergents, and dye substances into rivers and lakes Annually, the country consumes over 100,000 tons of agricultural chemicals, contributing to more than 23 million tons of domestic waste, over 7 million tons of industrial solid waste, and upwards of 630,000 tons of hazardous waste.
Environmental pollution is becoming increasingly severe, leading to a growing demand for air quality analysis and environmental planning services This trend presents a significant opportunity for businesses like the Center for Water Resources Technical and Consultant to expand their offerings and meet the rising needs of clients seeking effective solutions for environmental challenges.
2.2.2 Sectoral Environmental Analysis 2.2.2.1 ĐCurrent competitors
There are many competitors competing in the same field with the Center for Water Resources Technical and Consultant The number of current competitors is as follows:
Diagram 2.2: Number of current competitors in the market of the Center
Analysis of the actual marketing strategy situation of the Center
The Center for Water Resources Technical and Consultant excels in product strategy by offering a diverse range of products and services, including water resource planning, monitoring, exploration, and treatment solutions.
Table 2.7: Some products and services provided by the Center
Product groups related to water resource planning 1 1 2 Establishment and operation of the monitoring network 3 3 3
Product groups related to exploration consultants 2 2 4 Product groups related to the drilling, exploration and exploitation of water 2 2 5
Product groups related to the construction of water treatment systems, transmission networks 2 3 3
Source: Center for Water Resources Techical and Consultant
The Center for Water Resources Technical and Consultant offers a range of products across various fields, although its diversity in products and services remains limited As of 2017, the Center has expanded its offerings to include 17 services, marking an increase of 6 services from 2016.
Since 2017, the Center has faced limitations due to its undiversified services, which fail to meet the diverse demands of its customers This shortfall has led to resource wastage and hindered overall business efficiency.
The Center for Water Resources Technical and Consultant adopts a flexible pricing strategy tailored to the scale of each project, informed by thorough market price research and insights from its planning department Despite this adaptability, the Center's prices consistently exceed those of its competitors For instance, when compared to key projects, the Center's bids are typically 0.1% to 0.5% higher than those of Vietnam Consulting for Natural Resources and Environment JSC., and 0.4% to 0.6% higher than 86 Natural Resource and Environmental Consulting JSC This pricing disparity is attributed to suboptimal cost management within the Center, leading to increased planning costs that negatively impact its marketing efforts and overall operational efficiency in recent years.
Currently, the Center has only one transaction office at its Head Office
Due to the low distribution channel system, it is difficult to reach customers
The projects primarily reflect the prestige and image of the Ministry of Natural Resources and Environment, leading to a passive approach by the Center for Water Resources Technical and Consultant in reaching customers The Center has not prioritized the development of distribution channels to enhance market coverage To improve marketing effectiveness and business efficiency, the Center must engage in market research and establish direct or indirect distribution points to better access potential customers, including those in industrial and export processing zones.
The Center for Water Resources Technical and Consultant, as a state-owned enterprise, does not prioritize marketing efforts to promote its products and services To attract customers, the Center proactively sends offer letters to businesses and Departments of Environmental Resources that may require its expertise in related fields.
Offer letter Feedback from the customersNumbers of signed contracts
Diagram 2.3: Marketing activity of the Center
The Center for Water Resources Technical and Consultant implements its marketing programs by sending offer letters and receiving customer feedback through various channels, including post office, email, and fax In 2015, the Center dispatched 36 open letters and garnered responses from 15 organizations The following year, 2016, saw an increase in outreach with 45 letters sent and feedback from 30 units However, in 2017, the number of offer letters sent dropped to 30, resulting in 17 responses from customers.
The Center for Water Resources Technical and Consultant has limited and undiversified marketing programs, which have proven to be ineffective, as evidenced by the minimal change in the number of annual signed contracts This lack of effective marketing strategies has negatively impacted the Center's business strategies in recent years.
Evaluation of actual situation of marketing strategy of the Center for
The Center for Water Resources Technical and Consultant is continuously expanding its business operations, leading to a growing range of products and services offered to customers.
Price strategy: The Center for Water Resources Technical and Consultant has developed a flexible price policy suitable with scale of each project and business situation of the Center
The transaction office of the Center serves as the exclusive distribution channel, featuring a spacious design and well-invested infrastructure that enhances its appeal to customers.
The Center has effectively enhanced customer satisfaction by actively sending offer letters and soliciting feedback, ensuring that clients feel valued and engaged with the services provided.
The Center operates in a broad business field, but its limited range of implemented products and services leads to resource wastage and underutilization of both human and material assets.
The Center's pricing strategy typically positions its prices above those of competitors, coupled with ineffective cost management This approach negatively impacts the Center's business efficiency, as it lacks a competitive edge in pricing.
The distribution strategy of the Center is limited, with only one distribution channel available at the head office This lack of expansion creates significant challenges for customers trying to access the Center's services effectively.
The current promotion strategy is limited and lacks diversity, primarily relying on sending offer letters to customers As a result, the effectiveness of these efforts is low, as evidenced by the stagnant annual contract signing rates.
PROPOSAL OF MARKETING STRATEGY FOR THE
Proposal of marketing development for the Center for Water
3.2.1 Proposal of marketing development for the Center for Water Resources Technical and Consultant by 2025
Based on the results of Chapter 2 analysis, the SWOT matrix composes the strengths, weaknesses, opportunities, and challenges of the Center for Water Resources Technical and Consultant as follows:
S1 Capacity of arranging and implementation of marketing programs
S2 Coordination among individuals in arranging the project implementation construction site S3 System of machinery and equipment for research and development S4 Suitability in job arrangement for the employees
W1 The diversity, attraction of marketing programs W2 System of equipment, machinery for project execution, environmental treatment consultancy
W4 Staff quality is not high, the coordination among the departments is not tight
W5 There is no initiative in resources and equipment for business activities
O1 Vietnamese economy has been steadily growing and the number of industrial parks is increasing
S1S2S3+O1O2O3: Taking advantage of the ability of research and development, the capacity of organizing marketing activities combined with the support
W1+O1O4O5: Taking advantage of opportunities from the the economy, increasing demands for products and services, few number of alternative
The government has established stringent regulations to address environmental and water resource challenges Concurrently, advancements in science and technology, alongside the ongoing industrial revolution, are driving significant progress in these fields As a result, there is a growing demand for clean water products and services, as well as effective solutions for environmental pollution treatment.
O5 Business areas are less influenced by potential competitors and alternative products of the state, the technology environment, the Center can implement the
Horizontal product diversification involves expanding a company's product line to include new offerings that are related to existing products, which can help mitigate weaknesses and capitalize on market opportunities The organization should focus on a strategy of broad distribution to effectively promote and introduce these products and services By implementing this functional strategy, the center can enhance its competitive position and drive growth in the marketplace.
"Investing in machinery systems" to improve service quality, meeting the increasing demand for products and services in the market
C1.Competitors have high prestige, strong potential
C2 Inadequate and incomplete policy and legal system
Implement overall marketing mix strategy to enhance the competitiveness of the Center and reduce the
W5+C1C3 Investing in additional products suitable to the business sector of the Center, implementing the strategy "Horizontal product diversification"
C3 Business operations are dependent on foreign suppliers and capital providers
C4 Under pressure of price and payment schedule from customers pressure from the customers
"Market penetration price" strategy to reduce the pressure of reducing price from the customers
W4W3+C1C4: Implementing the functional strategy of
"Accelerating Training activities" in order to improve the quality of human resources, meeting job requirements to better satisfy customers' needs and improve competitiveness
Based on the comprehensive analysis of the SWOT matrix and the integration of SO, SC, WO, and WC strategies, the Center for Water Resource Technical and Consultant can effectively implement two strategic groups.
Product and service diversification strategy Market penetration price strategy
Broad distribution strategy Product promotion, introduction strategy
Focus on the synchronous investment in machinery and equipment Promote training to improve the quality of human resources
In general, the proposed strategic groups are in line with the objectives and development orientation of the Center for Water Resource Technical and Consultant
3.2.2 Strategy implementation method 3.2.2.1 Product and service diversification strategy
To implement product and service diversification strategy, the Center for environmental and water quality research that are quite suitable with the Center’s operation field as follows:
The Center offers a range of additional services, including product inspection and acceptance in monitoring and geodesy, machine calibration testing, and equipment monitoring We also provide inspection certificates for machines and equipment, along with tailored consulting services to meet customer needs.
The Center for Water Resource Technical and Consultant offers a range of services, including Strategic Environmental Impact Assessments and comprehensive environmental impact assessments They also specialize in developing environmental protection plans in accordance with current Environmental Protection Laws Additionally, the center provides expert advice on the establishment, extension, and withdrawal of licenses, permits, and certificates related to environmental protection.
We specialize in the development and transfer of environmentally friendly production technologies and environmental consulting services Our offerings include training and providing critical environmental information, as well as inspecting goods, machinery, and equipment for compliance We conduct thorough assessments of environmental damage and health examinations, while also offering consultancy for resolving complaints and petitions related to environmental issues Additionally, we manage projects focused on the prevention, response, identification, and remediation of environmental incidents.
The Center for Water Resource Technical and Consultant offers expert consultancy services for the planning and management of water resource programs and projects They focus on developing proposals and strategies to prevent and address the reclamation of polluted and degraded water sources, as well as responding to climate change impacts on water resources Their services include advising on the resolution of disputes related to water resource exploitation and wastewater discharge, as well as creating plans for the coordination and supervision of water resource use and protection Additionally, they work on measures to prevent and mitigate the harmful effects of water in river basins and irrigation systems.
To enhance inter-reservoir operations in river basins, it is essential to classify water sources and compile a comprehensive list of river basins and their respective water sources in accordance with regulations Additionally, providing guidance, instruction, and oversight for the construction and operation of water resource monitoring systems is crucial Effective management of basic surveys, observations, and supervision of water resources, along with the monitoring of water exploitation and wastewater discharge, is necessary for sustainable water resource management.
To ensure the successful execution of all projects and services, the Center must establish a dedicated team to oversee ongoing and completed projects, enabling timely error detection and prompt corrective actions Additionally, it is essential to train the staff in the repair department on equipment warranties and to explore new technologies creatively, ensuring that customer needs are effectively met.
Human Resource: Recruit 15 more employees in the following industries:
- Hydrological geotechnical- Geotechnical engineering engineer: 3
Implementation procedure: From now to 2020, providing additional monitoring services and supplement 5 employees By 2025, implement all services for monitoring, water resources and environment with total 15 employees
To successfully implement a market penetration strategy, the Center for Water Resources Technical and Consultant must meticulously monitor expenses such as depreciation, operational costs, and personnel expenses To achieve cost reduction, the Center can adopt various strategies aimed at optimizing these expenditures.
- Firstly, choosing the location to build storage system of equipment and machinery to facilitate the transportation of machinery and equipment to the construction site, from which saving transportation cost
Effective fixed asset management requires maximizing the production capacity of machinery and equipment while enhancing storage solutions for materials and equipment to reduce repair costs Additionally, it is essential to establish wastage norms and rigorously oversee the factors contributing to natural loss throughout the management process.
- Thirdly, strictly control the business management expenses, minimizing the contingencies which cause increase in the operation expenses of the Center
To enhance service business operations, it is essential to refine the contracting and bidding processes, ensuring equitable benefits for staff and the center while focusing on reducing circulation costs.
To reduce administrative expenses, it is essential to streamline public administration management and enhance the management framework in alignment with the Center's development Implementing scientific advancements in administrative management will facilitate the flow of information, ensuring it is both smooth and accurate.
To enhance profitability and maintain competitive service pricing, the Center must implement thorough cost control measures by identifying and eliminating unreasonable expenses, thereby reducing unit costs without compromising efficiency.
Effective implementation of expense control measures will enable the Center to save costs and minimize unnecessary expenditures, ultimately leading to reduced service and product prices while enhancing its market presence.
5 competitive pressure model
Source: Micheal Porter, 1996 Current competitor
Current competitors are businesses within the same sector striving to boost sales and profits by implementing strategies that may disadvantage others In a limited market, these enterprises vie for market share through price reductions, advertising, promotions, customer persuasion, enhancing product quality, differentiating their offerings, and creating added value for customers.
In the supply market, in the near future there will be new competitors Although they haven’t appeared, business strategists must predict this
Alternative products Potential competitors and experiences Once appearing, they will compete with the business on three sides:
- Winning consumption market of the products with many different tricks
- Buying materials with more flexible and attractive policies,
- Attracting qualified and skilled workforce through competitive incentive policies,
Businesses supplying manufacturing components, including machinery, equipment, spare parts, and transportation services, can exert price pressures and influence supply and payment methods, potentially impacting company profits However, these suppliers also present valuable business opportunities To mitigate the challenges posed by this environmental factor, companies can leverage competitive advantages in their supply chains, establish strategic alliances, and engage in supply contracts.
A product or service that meets customer needs in the marketplace is not guaranteed to remain unique, as alternative options will eventually emerge Competitors can address current consumer demands using their offerings, often enhanced by innovations and advancements in science and technology These alternative products typically provide improved features and lower prices, making them more appealing to consumers.
The emergence of new alternative products can constrain the profitability of established offerings and diminish a company's market share To mitigate this risk, businesses should prioritize strategic investments in research and development.
Customers play a crucial role in business success as they are the primary purchasers of products Businesses must prioritize customer benefits and implement strategies to achieve maximum satisfaction regarding product quality.
To develop effective business strategies, companies must prioritize product quality while also understanding and catering to customer tastes and needs Key considerations for studying these preferences include analyzing market trends, gathering customer feedback, and identifying emerging demands.
- Customers have the habbits to choose the products according to which methods?
- Customers’ habbits of using products
1.3.4 Matrix evaluating external factors (EFE)
The EFE matrix is a strategic tool designed to assess external factors impacting a business, highlighting key opportunities and threats in the environment By utilizing this model, executives can evaluate how effectively the company responds to these external influences, ultimately determining whether conditions are advantageous or challenging for the organization Establishing the EFE matrix involves a series of systematic steps to ensure a comprehensive analysis.
Table 1.2: EFE matrix summary table External factors Importance level Phân loại Importance score
Source: Nguyen Thi Lien Diep (2006)
- List the major risk and opportunity factors which are believed to affect
- Classify the importance on a scale of 0 (Unimportant) to 1 (very important) The importance of each factor depends on the level of influence on the business of the business
- Determining the weight from 1 to 4 for each factor, the weight depending on the level of response of the company to each factor
- Multiply the importance to each factor and its weight to get the corresponding score
- Plus the score of all the factors to get total score of the matrix
The higher the total score is, the better the company responds to the opportunities and threats
To effectively assess an enterprise's strengths and weaknesses, it is essential to analyze internal factors such as finance, accounting, human resources, and production, along with their interrelationships This comprehensive evaluation enables the company to establish strategic goals while considering external opportunities and threats, allowing it to leverage its strengths and address its weaknesses in the competitive landscape.
Evaluate the production capacity and operation of the enterprise
The layout of machinery in the production process is crucial, as it influences transport efficiency, storage, system fluidity, and the synchronization of equipment Therefore, workshop managers and production control teams must accurately assess the level of rationalization in machinery placement within the company A higher rationalization level enhances work efficiency and productivity, while a lower level can negatively impact these targets Additionally, improper machine allocation or capacity discrepancies among departments can lead to excessive distances for transferring finished goods or result in bulk storage issues.
A significant amount of unused machinery and equipment can complicate the evaluation of their optimal arrangement within a company This assessment is crucial for identifying and documenting the factors that impact management activities.
Evaluation of the human resource management level of the enterprise:
Taking care of the employees is the best way to attach them to the company
Conducting studies on the influence of time and passion in the workplace is crucial for understanding employee mindsets, attitudes, and behavioral changes during business operations These insights enable enterprises to implement timely and effective responses to enhance overall productivity and employee satisfaction.
Evaluation of research and development
Research and development (R&D) are crucial for enterprises to strengthen their market position and achieve significant growth As the importance of R&D increases, evaluating performance levels within companies becomes essential However, many Vietnamese businesses lack dedicated R&D departments, presenting a significant challenge To overcome this, these companies must develop specific plans for R&D initiatives Successful implementation of R&D requires substantial equipment and financial resources, particularly in high-tech manufacturing, making adequate investment in these areas vital for effective operations.
IEF Matrix of internal factors
Internal factors play a crucial role in shaping business strategies for enterprises The effectiveness of strategic planners hinges on their ability to accurately evaluate the strengths and weaknesses of these internal factors, as well as their responsiveness to changes The IEF Matrix serves as a valuable tool in this assessment process.
Table 1.3: IFE summary table External factors Importance level Phân loại Importance score
Source: Nguyen Thi Lien Diep (2006)
- List the strengths and weaknesses that affect the business
- Classify the importance on a scale of 0 (Unimportant) to 1 (very important) The importance of each factor depends on the level of influence on the business of the business
- Determining the weight from 1 to 4 for each factor
- Multiply the importance of each factor and its weight to determine the score of each factor
- Plus the score of all the factors to get total score of the matrix
The higher the score of the matrix is, the greater the probability that internal factors will respond to the challenge is
1.3.4 Develop Marketing strategy with SWOT matrix
After assessing both internal and external factors, the subsequent step is to formulate effective marketing strategies Businesses frequently utilize the SWOT model to create an organizational fit strategy, allowing them to evaluate their strengths, weaknesses, opportunities, and threats.
Strength is an activity that the company can do well or a competitive strength of the company, including
- Advantage of low price thanks to specific business secret
- Easy access to high-end natural resources,
- Easy access to distribution networks
Weaknesses: The absence of strengths is considered as a weakness The following characteristics may be considered as weaknesses:
- Lack of brand, know-how, experience or capability
- The customer thinks that there is a bad reputation,
- Little access to natural resources,
- Little access to key distribution channels
Opportunities: External environmental analysis can reveal new opportunities for generating profit and growth, including
- Customer needs are not fully satisfied,
- The emergence of new technology,
- Removal of international trade barriers
Threats: Changes in circumstances, external environment might cause threats to the business such as
Tastes of customers change from the company's products to other products,
Stricter barrier of international trade
Table 1.4: SWOT matrix model SWOT matrix O: Main opporunities T: Main threats
S: Main strengths S-O: Strategies to combine strengths to take advantage of opportunities:
S-T: Strategies combining strengths to limit and avoid threats:
W-O: Combined strategies to overcome weaknesses to take advantage of opportunities:
W-T: combined strategies to overcome weaknesses to reduce the threats:
SWOT matrix analytical techniques are important tools that help managers develop four types of business strategies, including strengths – opportunities strategy; weaknesses – opportunities strategy; rtrength-risk strategy; weakness – risk strategy
Strengths-Opportunities (SO) strategies leverage a business's internal strengths to capitalize on external opportunities, while Weaknesses-Opportunities (WO) strategies focus on addressing internal weaknesses by utilizing favorable external conditions.
Strengths - threats strategies (ST): These strategies use the strengths of the business to avoid or reduce the impact of external threats
Weaknesses-threats strategies (WTs): These are defensive strategies to reduce internal weaknesses and avoid threats from the outside world
CHAPTER 2 ACTUAL SITUATION OF MARKETING STRATEGY
AT CENTER FOR WATER RESOURCES TECHNICAL AND
2.1 Introduction of Center for water resources technical and consultant
Transaction name: Center for water resources technical and consultant Head office: No 93, Lane 95 Vu Xuan Thieu, Sai Dong, Long Bien, Hanoi Website: www.cewaco.gov.vn