8 Hoa Phat has 4 corporations under the Group, including: Iron and Steel Corporation, Steel Pipe and Color Coated Steel Corporation, Agriculture Development Corporation, Real Estate Dev
COMPANY INTRODUCTION
About the company
Hoa Phat Group, established in 1995, is the leading industrial production group in Vietnam and the largest steel producer in Southeast Asia Starting from a company specializing in trading construction machines since August 1992, Hoa Phat in turn expanded into other fields such as Furniture, steel pipes, construction steel, refrigeration, real estate and agriculture Karma
The Group operates in 05 fields: Iron and Steel - Steel Products - Agriculture - Real Estate - Appliances Steel production is the core field that accounts for 90% of the Group's revenue and profit b Vision
To become an industrial production group with leading quality, in which Steel is the core field
With a vision to become an industrial manufacturing corporation with leading quality and core field of steel Hoa Phat Group has chosen quality as a development criterion, this is a correct strategic vision Because only when the product quality is good, will customers trust it, and the guaranteed quality will build a reputation with customers partners and customers Not only that, the leading quality will help the corporation become the first choice of everyone, creating an unbeatable strength in the market Since then, the company has grown and grown steadily The company also emphasizes its core focus on the steel industry This is the main industry and strength of Hoa Phat Group, bringing huge profits to the group With advanced modern technology, Hoa Phat's steel quality is constantly increasing, plus the development of the world, as well as the construction industry, the steel manufacturing industry will also have a great influence The quality standards will be larger, more difficult, more demanding on technology Therefore, focusing on developing to lead in quality can meet the requirements of the market, only then can we develop c Mission
Providing leading products, contributing to improving the quality of life, gaining the trust of customers
Hoa Phat produces basic products for the economy, raw materials for other export industries, so quality must be the top concern Hoa Phat always invests in improvement, focuses on producing leading quality products, constantly diversifying export markets, creating momentum for the consumption of Hoa Phat steel products in the domestic market as well as in the domestic market In the following year, the group also strives to improve the quality of life and gain the trust of customers with product quality Consumer preference will be a consequence of the development strategy Along with the development of society, products are always aimed at customer benefits Sustainable cooperation, reliable partner, bringing long-term value to shareholders Bringing into play talent, wisdom and bringing a good life to the company's members with the prospect of expanding investment to make a great contribution to the prosperity of Vietnam Building the two words Hoa Phat becomes a prestigious and transparent brand image in harmony and co-development as the business philosophy of "Harmony and development" of the corporation Especially when Hoa Phat has grown to a much larger scale, becoming a large private corporation that has an influence on the overall development of the industry d Goal : Hoa Phat Group - Vietnamese brand - Global class e Core Values
The core value of Hoa Phat Group is the philosophy of Harmony and Development This is reflected in the relationship between officers and employees, between the Group and its partners, agents, shareholders and the social community, ensuring the harmony of interests of stakeholders on the same boat towards sustainable development In particular, Hoa Phat Group has built a stable, long-term, trusting partnership with sales agents who have accompanied the Group since the early days of its establishment.
Organization structure
Hoa Phat has 4 corporations under the Group, including: Iron and Steel Corporation, Steel Pipe and Color Coated Steel Corporation, Agriculture Development Corporation, Real Estate Development Corporation
Consisting of all shareholders with voting rights, the General Meeting of Shareholders is the highest authority, deciding on issues prescribed by Law and the corporation's charter In particular, shareholders will approve the group's annual financial statements and the financial budget for the next year The General Meeting of Shareholders will elect the Board of Directors and the Supervisory Board of the corporation
- Administrative Council : As a management agency, it has full power on behalf of the corporation to decide on all issues related to the purposes and interests of the corporation, except for matters falling under the authority of the General Meeting of Shareholders The Board of Directors is responsible for supervising the CEO and other managers The rights and obligations of the Board of Directors are prescribed by the Law and the Charter, the internal regulations of the corporation and the resolution of the General Meeting of Shareholders
- Board of Directors : The Board of Directors consists of the General Director and a number of Deputy General Directors The General Director is the person who runs the daily operations of the group and is responsible to the Board of Directors for the implementation of the assigned rights and duties The term of the General Director is 3 years unless otherwise provided by the Board of Directors The Deputy General Director is an assistant to the General Director and is responsible to the General Director for the assigned work, actively handling the tasks authorized and assigned by the General Director in accordance with the policy regime state and corporate charters
- Control Board : Is an agency directly under the General Meeting of Shareholders, elected by the General Meeting of Shareholders The Supervisory Board is responsible for checking the rationality and lawfulness in operating business activities and financial statements of the corporation The Supervisory Board operates independently from the Board of Directors and the Board of General Directors
The Group has built a management system under which the management apparatus will be responsible and under the leadership of the board of directors From the initial
9 business field of manufacturing and distributing all kinds of machinery and equipment for the construction and mining industries, Hoa Phat has now become a multi-industry manufacturing corporation, operating in many different industries fields such as iron, steel, steel pipes, furniture, refrigeration Built a production system with dozens of factories and a network of product distribution agents spanning the whole territory of Vietnam Currently, Hoa Phat is known not only as a multi-industry private economic group with a turnover of hundreds of millions of dollars per year, but also highly appreciated for its boldness in production investment, construction and develop new products with a team of 6000 employees of the whole corporation
The accounting apparatus of Hoa Phat Group includes the finance and accounting department of the whole group and the accounting and finance departments at the member units
In particular, the group's finance and accounting department has both assumed the function of advising the group in developing financial strategies and plans, and is also responsible for managing the accounting and statistical work at the finance departments member accountant In particular, you are the main accountant responsible for managing and coordinating the funds at the member units to serve the production and business activities of the whole corporation The function of organizing audits of units and making recommendations to advise and help the group's leaders to manage the economic and financial system in the whole group effectively and in accordance with the regulations of the State The task of the Audit Committee is to periodically and irregularly audit the production and business results of the units in accordance with the law on auditing (or the provisions of the State's current law on internal audit and the regulation on auditing) the group's internal audit in the absence of an audit law) Proposing effective financial-accounting management measures in accordance with the regulations of the State, the corporation and the contracts signed between the corporation and its partners Participating in the inspection and settlement of capital construction investment capital
Organization chart of Hoa Phat Group
Product
Hoa Phat Group mainly focuses on the following fields: Construction iron and steel, steel pipes and galvanized steel; refrigeration, furniture, machinery and equipment industries; Real Estate, including Industrial Park Real Estate, Residential Real Estate; The agricultural sector includes the production of animal feed and livestock
Up to now, iron and steel production is the core production field, accounting for over 80% of the Group's revenue and profit
- Human resources: The human resource team consists of 1440 people, divided into
8 different departments: Board of Directors, Department of Materials/Import- Export, Sales Department, Factory, Organization Department, Accounting Department The factory is divided into small workshops to ensure specialization and operation
- Raw materials: Hoa Phat has been partially self-sufficient in domestic iron ore input through its subsidiary, An Thong Mineral Joint Stock Company However, this supply only meets about 20% of the current demand With the rest, Hoa Phat also has to import monthly from major suppliers in the world in Brazil, Australia, South Africa Hoa Phat construction steel has a variety of types and sizes, suitable for many uses applications, including coil, rebar, steel pipe and box steel
Hoa Phat steel production process from upstream through 4 steps: First, raw iron ore of all kinds will be put into the raw material processing plant to remove impurities, increase iron content and pellets into round balls; Pelleted iron ore, coke, lime and other additives are put into the blast furnace to melt into cast iron water, then the liquid iron from the blast furnace will be transferred to the refining furnaces of the Steel Plant to produce a guaranteed billet the specified standards, finally, the billet that has just been released is immediately transferred to the rolling mill to produce finished construction steel and complete the closed production cycle
- Funding: Hoa Phat's advertising and branding plan has consumed a lot of capital of Hoa Phat enterprise, in addition to investing in the establishment of factories And when this budget was determined, they were based on the method, goals and mission set out The goal this time is to maximize brand awareness and invest capital in new steel factories The work that needs to be done, the work that needs to be implemented in order to be able to achieve the set goals
- Process: Review the production results of the previous day, request, coordinate the implementation and regulate production with arising problems affecting output, quality of finished/semi-finished products, export sell - store The remaining time is allotted for the work of supervising the implementation of the production process, technological requirements at each stage, implementing the material plan, short-term production plan in accordance with the production plan years, developing and adjusting technology requirements, work orders for new products and actual production conditions of equipment and materials
- Technology: In the field of iron and steel production, the investment in technological equipment is to control environmental problems, thoroughly treat all kinds of waste and emissions The most important of them is a closed-loop, environment-friendly technology solution Hoa Phat has always determined that the assessment and application of the environmental management system according to TCVN ISO14001: 2015 is an important requirement for industrial production in general and in the steel sector in particular Therefore, the Company has invested and improved equipment and advanced technology to ensure environmentally friendly operation, and at the same time, build and operate an effective environmental management system to maximize its use benefits of the ISO 14001 family of standards and sustainable development.
Canvas
Key Partners Key Activities Value Proposition Customer Relationsh Customer Segme
- Iron ore concentrate processing unit
- Research on optimizing plant operation
- Own the optimal solution for plant operation
- Autonomous source of iron ore in the country
SITUATION ANALYSIS
Market Analysis
Hoa Phat has supplied more than 4.5 million tons of steel to the market after 7 months of July 2022, sales volume of billet, construction steel, hot rolled coil reached 526,000 tons, equivalent to the same period in 2021 In which, construction steel contributed 372,000 tons, 2% higher than July 2021 b) Market growth
Hoa Phat supplied nearly 4 million tons of steel to the market in the first 6 months of the year 560,000 tons were the sales volume of construction steel, billet and hot rolled coil (HRC) of Hoa Phat Group in June, up 14% compared to that of Hoa Phat Group in the same period of 2021 In which, construction steel output reached 348,000 tons, up 51% compared to June 2021 HRC was 202,000 tons, down 12% y/y Construction steel consumption last month grew well thanks to a strong increase in the southern market and exports, 200% and 60% respectively over the same period in 2021 The Government's promotion of the progress of investment projects public private sector, especially key infrastructure projects, including the North-South expressway, has helped the demand in the construction material market to improve compared to the previous year c) Market share: Market share
HOA Phat's construction steel market share increased by 36.3% In January 2022, HOA Phat's construction steel achieved a sales volume of nearly 382,000 tons, double the same period last year In which, the volume of construction steel in January reached 116,000 tons, three times higher than the corresponding period in
2021 and accounting for 50% of Vietnam's total construction steel HOA Phat's construction steel market share in Vietnam reached 36.3%, an increase of nearly 6% compared to the end of 2021 d) Market need
According to Mr Kieu Chi Cong - Director of Hoa Phat Hung Yen Steel Co., Ltd., steel demand in the coming months in the domestic market and export is still high The company has received maximum export orders for factories in Hai Duong and Quang Ngai until April With this number of orders, factories must always operate at full capacity to serve market demand The exploitation of export markets aims to diversify consumption markets, and at the same time contribute to foreign currency collection and balance of trade balance of Vietnam e) Market trend
The export volume of finished steel achieved an encouraging growth of 13% in the first 5 months of 2022 However, the export channel still tends to slow down in recent months, especially in the steel sheet segment plating, with monthly output about 30% below its peak in Q4 2021 Such a drop in output is due to reduced demand in key export markets (particularly the US and EU) ), markets which, under favorable conditions, once accounted for 60-70% of Vietnam's galvanized steel exports.
Pestel
Political stability is favorable for the business of companies
- The Government creates favorable conditions for the development of the steel industry through the policy of committing to export iron ore, the policy of anti- dumping steel
- Reduced tax rates such as corporate income tax, import tax b) Economic
- Vietnam's economy is relatively stable (over 6% per year) The real estate market recovers, grows well, many supportive policies have large fluctuations in exchange rates, making input material prices highly volatile
- Stable interest rates tend to decrease c) Social
- The young population (50 million people in working age) has the need to buy a house and build a big house
- The rapid urbanization process increases the demand for steel for housing and infrastructure construction
- The factor of living region affects the types of products, especially galvanized steel The demand for galvanized steel sheet is higher in the South than in the North d) Technology
Vietnam's steel industry 100% uses electric furnace technology
The world is moving towards the use of clean energy, using renewable materials e) Environment
Steel production is an important heavy industry, meeting the requirements of construction and development of the country The steel production industry has achieved many results in the past time, but there are still many shortcomings, especially in waste treatment and environmental protection, causing great damage to the country's economy Therefore, the management and control of the steel manufacturing industry to minimize the consequences to the environment is an urgent issue today f) Law
Trade, this is a principled requirement that any business or individual doing business in the Vietnamese territory must comply with Detail:
- Legal responsibilities for business activities: doing business in accordance with the law, fulfilling obligations to the state regarding taxes, stabilizing prices, etc
- Liability for product quality: suppliers manufacturing and importing construction steel must trade in all kinds of quality steel in accordance with TCVN quantity, fake goods, imitation goods…
- Legal responsibilities for the selling price of construction steel:
+ If a supplier (or distributor) establishes its own affiliated steel distribution network such as branches, factories, retail stores, the supplier must manage its affiliated units not to sell steel wrongly built with the price set by themselves – This regulation has affirmed the right and position of the supplier (distributor) to its system That is natural because the supplier is the owner of the goods and the owner manages his system
Financial resources: Owner's investment capital, borrowed capital; The ability to create internal corporate funds
Physical resources: Exquisite equipment or factory location; The right to dominate the resources of raw materials
Human resources: Training, experience, judgment, intelligence, adaptability, dedication to work and loyalty of individual managers and employees,
Organizational resources: Formal report structure, plans, inspection and supervision system, organizational apparatus system
Intangible resources include factors from intellectual property rights, business networks, business organization skills, reputation and community relationships b) Core competencies: Core competencies
The core value of Hoa Phat Group is the philosophy of Harmony and Development
It is reflected throughout the relationship between officers and employees, between
17 the Group and its partners, agents, shareholders and the social community Ensure harmonization of interests of stakeholders on the same boat, towards sustainable development c) Partnership resources
The Group and its partners, agents, shareholders and social community, ensure the harmony of interests of stakeholders on the same boat, towards sustainable development In particular, Hoa Phat Group has built a stable, long-term, trusting partnership with sales agents who have accompanied the Group since the early days of its establishment d) Product leadership
Hoa Phat Steel Pipe products have excellent quality, not only occupying the No 1 market share position in the country for many consecutive years, but also meeting export standards to many demanding markets such as Australia, North America, Latin America, and India … Since the beginning of 2020, Hoa Phat Steel Pipe is a pioneer in manufacturing and supplying the market with large-sized steel pipes with sizes such as round pipes, square pipes, rectangular pipes e) Customer intimacy
On July 19, 2019, at Gem Center Convention Center, Ho Chi Minh City, Hoa Phat Construction Steel Customer Conference 2019 took place with the participation of
350 loyal customers who are level 1 and level 2 agents of Hoa Phat Steel in the South and Cambodia This is an opportunity for the Board of Directors of the Group and Hoa Phat Steel to be grateful to distributors and agents who have accompanied and brought Hoa Phat construction steel brand to more and more presence in the South f) Operational excellence
Beside production and business activities, Hoa Phat always implements corporate social responsibility in a substantive manner and comes from the heart with the motto "Harmony and development" In the first 9 months of the year, Hoa Phat spent nearly 16 billion dong on a series of meaningful social security and charity programs, joining hands for the community
- Support against Covid :With the desire to join hands with the Government and Ministries to cope with the spread of the Covid-19 Pandemic in Vietnam, Hoa Phat Group has donated 5 billion VND in cash to the Fund of the Ministry of Health and Hospitals Central Tropical
- “Love Beat”: Successfully supported 34 patients in the first 6 months of the year : "Love beat" has been developed by Hoa Development Group since the end of
2015, in order to finance the cost of heart surgery for patients with difficult circumstances
- Spring love : It is an annual activity conducted by Hoa Phat Group on the eve of the Lunar New Year, in order to bring a warmer and fuller Tet to families in difficult circumstances
- Build a bridge : Starting in 2019, this activity aims to support localities in the Mekong Delta provinces
Competition analysis
Competitors Future Goals Assumption Current Strategy Capabilities
VNSteel aims to become the leading steel enterprise in Vietnam, with multi-ownership on the main basis of manufacturing and trading steel products, playing a key role in Vietnam's steel
The establishment of an efficient mining and mine operation system has brought VNSTEEL a source of raw materials with good quality and
The strategic orientation focuses on increasing the capacity of key products which are construction steel and galvanized steel, developing strong brands trusted by consumers such as Southern Steel /V/, Vina Kyoei Steel,
With the criterion of leading product and service quality, over the years, VNSTEEL has constantly invested in new and replaced outdated equipment with advanced technology and equipment to
19 industry in particular and the Vietnamese economy South in general competitive prices that few enterprises in the
Nam, Ton Thang Long… Strengthen the application of modern and environmentally friendly technology in production;
Simultaneously, reducing the focal points, streamlining the apparatus, improving management capacity through digital transformation and developing high- quality human resources improve product quality
POMINA Expecting an increase in steel selling price in
2022, Pomina sets a big target with net revenue of
VND 15,000 billion, up 7%, profit after tax of VND 400 billion, 2.1 times higher than the bring products with the "core of life" value
Pomina Steel Joint Stock Company is a pioneer manufacturer in investing in the most modern technology
Determining the long-term survival strategy of the steel industry, Pomina has invested in the most advanced modern technologies in Europe such as Techint, Tenova,
High product quality and competitive price
- Gained the trust of customers for many years - Bring added value to society performance in
The company focuses on training and developing human resources to master technology and manage product quality, meeting the goal of maintaining sustainable and stable development in the future
At Vina Kyoei, technology and machinery are continuously improved, automated in many processes, thereby helping employees to be proactive in handling work, improving productivity and motivating employees to work Be creative, find solutions to bring better efficiency, save more time
Known as the leading Steel brand in Japan for its outstanding quality, with its growth, Kyoei wants to reach beyond the ocean of the land of the rising sun to reach the internationallevel
Therefore, in its long-term strategy, Kyoei has been expanding foreign projects to take advantage of the developing market
Vina Kyoei also always focuses on training to improve skills and professional knowledge for officials and employees, especially the young workforce to meet the requirements of operation, maintenance and maintenance company's equipment with the criterion of producing the best quality products at competitive prices to provide to the market in order to improve customer satisfaction and benefits.
Five Forces
- The Government and localities give priority to investment policies for enterprises engaged in the production of ore, steel billet and finished steel;
- Operating in the steel industry requires a large amount of capital and high technical level This is the entry barrier for enterprises without strong resources;
- The steel industry's consumption growth rate is high (about 17%/year), the market is very potential because the production capacity of domestic enterprises has not yet met the demand, especially in some products such as structural steel, engineering steel
- Hoa Phat Group's internal customers are member companies, HPG gives priority to supplying raw materials to member companies; Therefore, HPG does not have to bear much pressure from this group of customers
- HPG's customers are also individual customers, the conversion of using HPG's products to other products does not take much time and cost
- Raw materials for production and business activities of member companies are mainly provided from the parent company HPG;
- HPG can be proactive in 80% of the billet for the production process, the remaining 20% depends on imported sources However, HPG has built a long-term business relationship with the supplier of billet and its member companies also have a good relationship with the supplier of raw materials Raw materials will be guaranteed in terms of quality and reasonable price
- Instead of using steel in construction, iron materials can also be used instead
- Aluminum plate can be used to replace steel plate in some cases
- Instead of using air conditioners, customers can use ice fans, ordinary electric fans instead
- With furniture, in addition to using furniture made of wood and plastic, customers can use furniture made from stone and glass
- Steel industry is a distributed industry Unfair competition among enterprises in the industry is inevitable There used to be a phenomenon where an enterprise imported rebar from China and labeled it for domestic consumption These events make users feel insecure about the quality of steel products;
- Hoa Phat brand has made a great impression in the perception of customers, creating a great competitive advantage for HPG
- HPG also has a great competitive advantage compared to other steel companies as HPG has a billet factory, providing most of the input billets for the Company's production process;
- Many FDI projects in the steel industry will be implemented, which will create great competitive pressure for Vietnamese steel enterprises, including HPG.
SWOT
- State-of-the-art production line
As a pioneer in the field of steel production, Hoa Phat always focuses on each stage of producing its finished products Specifically, all products of Hoa Phat Steel are completed on a closed technology line synchronously with a strict production process To realize this, the enterprise has installed the Italian Danieli steel rolling system, which increases mechanical properties and weldability, optimizes flexural strength, as well as reduces the degree of rust
Besides, Hoa Phat also focuses on expanding production facilities Primetals Technologies' investment in a comprehensive production line helps this brand increase its production scale up to 5.6 million tons/year Thereby, supplying enough
23 current market demand, limiting import from other countries to help maximize revenue
With 30 years of establishment and development, Hoa Phat has many times touched the prestigious awards that every competitor aspires to The most prominent include: ã Top 50 most effective business companies in Vietnam ã Top 10 listed stocks with the largest market capitalization ã Top 50 best listed companies in 2018 ranked by Forbes Vietnam ã Top 20 largest enterprises paying CIT in Vietnam ã Top 40 most valuable brands in Vietnam
As of January 2022, Hoa Phat's sales of construction steel reached nearly 382,000 tons, doubled over the same period last year Accordingly, the market share of the business also increased significantly, specifically reaching 36.3% With this number, Hoa Phat still maintains its leading position in the steel industry, far ahead of enterprises
The cost of input materials has not been optimized: Currently, Hoa Phat has not been able to keep the price of input materials at the lowest level Accordingly, this brand is also dependent on market movements, making the revenue not maximized
Risk of oversupply: With increasing focus on expanding production scale, Hoa Phat may fall into oversupply situation In fact, the current market demand for construction steel is about 10 million tons/year However, when the Dung Quat project comes into operation, the company can completely supply about half of the current consumption to the market The amount of supply is too much, making the market unable to adapt and consume, leading to overproduction
- Integrated economy: Since joining the WTO, the Vietnamese government has always created favorable conditions for domestic and foreign enterprises to cooperate and develop Thereby, opening up many opportunities to help businesses attract capital from abroad to expand business, increase import and export of the steel industry
- Great market potential: It can be seen that in the past few years, Vietnam's steel market is becoming more exciting than ever, partly due to the impact of construction projects that are racing up In 2022, it is estimated that the domestic steel market will grow by 20%, creating opportunities for businesses in the industry to develop together
- Facing stiff competition: As the market expands, it is inevitable that more competitors will appear Currently, Hoa Phat is facing stiff competition from many big players such as Formosa, Thai Nguyen Steel, Vina Kyoei, etc
- Other market entry barriers: Steel has always been an important industry in the world with an amazing growth rate However, many countries currently still put many barriers to entry to protect domestic enterprises This makes it difficult for Vietnamese businesses to access other markets.
MARKETING STRATEGY
Customer segmentation
Type of Segmentation Segmentation criteria Renault target customer
Hoa Phat steel is one of the indispensable materials in the construction market
Areas Urban, big cities such as Hanoi ,Ho
Company Size Hoa Phat steel serves for projects from small to large Occupation Managers, executives
Psychographic Social class Upper class
Lifestyle Busy,decisive,quickly Personality traits Organized
User status Potential and ex-users
Usage rate Medium to high
Benefit Sure, sustainable, high value of use Loyalty status Medium to high.
Target customer
Regarding target customers, Hoa Phat targets the following subjects:
External customers: Steel, billet, household goods, shipyards, irrigation, road construction, construction contractors, etc., each order is by number large amounts Therefore, this group of customers requires high standards of size and volume
Internal customers: These are member companies of Hoa Phat group such as steel company, equipment and spare parts company, construction company, material company Although the number of internal customers cannot be compared with external customers, they are loyal and long-term users of the company's products.
Positioning
Brand positioning map showing Reliability and Safety In the Vietnamese market, Hoa Phat steel has higher reliability and safety than other competitors such as Pomina,Vnsteel,Vina Kyoei, Po sco SS Vina The majority of businesses in the Vietnamese market use Hoa Phat because they find that Hoa Phat has high reliability and safety, in addition to a variety of products, bringing sustainable value
Designed in the form of a box, galvanized steel has many outstanding features in both the process of moving and using in the construction
Moreover, when workers work with this steel, it is sure to ensure safety and no risk
Another outstanding advantage of steel has low production costs, so when you use it, you will also save a lot of costs
If you can find a cheap, preferential and quick address in large quantities, the price can be reduced Therefore, this type of steel is suitable for all types of construction such as: transportation, bridges or other service works
The increasing demand for construction, the greater the production of steel However, even working and producing at full capacity cannot meet the needs of the works b) POD
- Using modern, environmentally friendly blast furnace technology
- Modern, synchronous and self-contained production lines from input materials in production to finished steel products
- Application of the world's leading Italian Danieli steel mill, a QTB process that increases mechanical properties and weldability as well as optimizes flexural strength and reduces rust
- Applying technology to produce oxygen blowers with lower electricity consumption than traditional blowers, helping to reduce product costs
- The possibility is to provide large quantities, diverse designs quickly, and indirectly accelerate the construction progress of large works
- Modern process with the world's leading production technology
- The selection of raw materials takes place closely, carefully controlled to meet all the needs of consumers
- High life expectancy and good resistance to all agents from the surrounding environment
- Steel has extremely high bearing capacity This is also an important point that determines the durability of construction works
- Steel size is extremely diverse This helps to suit all works, all textures When requiring rich materials
- Steel I has extremely high durability Especially with galvanized steel with extremely hard, antioxidant and corrosion properties Therefore, steel is always durable for outdoor works or harsh environments
- Viet Nhat steel has very good resistance to oxidation and chemical corrosion in harsh conditions
- Viet Nhat steel has a very outstanding durability compared to ordinary steel Hard to rust in wet environments or over time
- Vietnam-Japan steel has high ductility and bending strength
- Modern production process and quality iron materials
- Vietnam-Japan steel has high quality, many types, to meet all usage requirements
- The product is highly appreciated for its quality from durability, bearing capacity to barem steel bundle specification which is also very convenient and easy in transportation as well as construction
- VN Steel is produced on a modern, closed technological line, imported synchronously from the Italian Danieli Group No 1 to supply the world's leading machinery and equipment in the field of steel smelting and rolling
- VN Steel is focusing on more diverse designs and product categories to meet all the needs of using steel in large and small construction projects Steel is focusing on more diverse designs and product categories to meet all the needs of using steel in large and small construction projects
Target sales abd market share of construction steels,Vietnam’s largest steel pipe from 2023-2025 ỉ Increase customer awareness from 32.5% to 51% ỉ Increased customer confidence level from 48.7 to 62,7% ỉ Expanding market share to 0.5-1% ỉ Expanding distribution agents in 64 provinces and cities ỉ 15% increase in sales per year
(Product) : Regarding Hoa Phat's product strategy, the company is currently implementing a product diversification strategy This process helps businesses launch many new product categories to meet the needs of the market
In addition to achieving higher profits, there are several reasons for a company to diversify, such as:
• Minimizing risks in case of industry downturn
• Diversification can be used as a defensive measure By diversifying products or services, a company can protect itself from competitors
• Diversification allows for a wider selection of products and services If done properly, diversification will positively promote brand image
Some notable product lines of Hoa Phat include:
• Construction steel: billet, coil, bar, hot rolled coil, special steel and products related to the steelmaking process
• Steel pipes: Black steel pipes, Hot dipped galvanized steel pipes, Galvanized steel pipes, Large steel pipes, Galvanized coils, Other industrial steels
• Color coated and galvanized steel sheet: Rusted and oil coated steel coil, Cold rolled steel sheet, Galvanized steel sheet
• Metal fabrication: Supply of spare parts – Mining equipment, Construction equipment
• Household appliances: Air conditioner, Freezer, Refrigerator
• Furniture: Office furniture, buildings, schools, hospitals, household appliances, decor with tables and chairs of all kinds
• Real Estate: Apartment, Office, Trade Center
In addition, for key product lines such as steel, Hoa Phat always adheres to a strict production process with 5 steps: iron ore processing; sintering and pelletizing; iron; steelmaking; and rolled steel Hoa Phat applies closed circulation technology, controls and processes from input materials to finished products, ensuring products of superior quality
(Price): Product line pricing is a strategy that businesses use to separate their products and services into multiple prices, the purpose is for consumers to form a perception of quality product differences Simply put, this is the process of grouping similar products together and offering different prices, for each version are added features, in order to entice consumers to choose the product that the business wants would like
Realizing that the steel industry is characterized by having many products but different sizes and materials, Hoa Phat has offered an appropriate price for each of its products
Marketing strategy of Hoa Phat steel on price
( Place ): Hoa Phat's distribution system is invested very strongly, as this brand has been able to cover its products throughout 63 provinces and cities in Vietnam
To do this, Hoa Phat has sought and approached many reputable agents and businesses to cooperate with, along with high discounts to help consumers find their products in the easiest way
(Promotion): Promotion is a necessary business activity to keep pace with the consumer market Currently, Hoa Phat's promotion strategies are focused on promotional activities such as TVC or OOH
For OOH, Hoa Phat Group's billboards are always placed in expensive locations that are always crowded with people passing by
For TVC, the company always chooses national television stations such as VTV1, VTV3 as the main advertising channel With the top viewership ratings of TV channels, plus the selection of TVC broadcast time in the prime time frame, Hoa Phat successfully increased the brand awareness of the product
Over time, along with the change of the Group's development strategy, products that are given priority "pour money" on the broadcast have also changed
In the period of 2015 - 2016, the company focused on advertising interior products with the slogan "Hoa Phat, not Hoa Phat" In 2017, on a good growth momentum, the company chose to "build" brand "steel to build market share No 1 in Vietnam" based on data on market share of the Vietnam Steel Association After that, the company "cleared the way for Dung Quat project" with a strategy of advertising corrugated iron products in the South
In the 2015 period, the familiar slogan of this brand was "Hoa Phat, not just playing, developing with Hoa Phat" Image cut from Hoa Phat interior advertising video in 2015 - Source: Youtube
Image cut from Hoa Phat steel pipe advertising video in 2017 - Source: Youtube
Advertising construction steel with the familiar slogan "Hoa Phat - Construction steel with the No.1 market share in Vietnam" - Company website source
In 2018, with the goal of promoting the consumption market in the South, Hoa Phat built an advertising strategy with TVC with the participation of the famous actor couple Thanh Thuy - Duc Thinh and outside the news frame VTV1 Vietnam Television also broadcasts on channels HTV9 and THVL1
Even though it is a 30-year-old unit, it is not because of that that Hoa Phat stands out from the prevailing trends Recognizing the trend of integrating advertising into music videos that are "hot" in recent years Hoa Phat is not afraid to spend heavily when together with Bich Phuong launch the product "Choosy fish choose soup".
Marketing Objective
Target sales abd market share of construction steels,Vietnam’s largest steel pipe from 2023-2025 ỉ Increase customer awareness from 32.5% to 51% ỉ Increased customer confidence level from 48.7 to 62,7% ỉ Expanding market share to 0.5-1% ỉ Expanding distribution agents in 64 provinces and cities ỉ 15% increase in sales per year.
Marketing Mix
(Product) : Regarding Hoa Phat's product strategy, the company is currently implementing a product diversification strategy This process helps businesses launch many new product categories to meet the needs of the market
In addition to achieving higher profits, there are several reasons for a company to diversify, such as:
• Minimizing risks in case of industry downturn
• Diversification can be used as a defensive measure By diversifying products or services, a company can protect itself from competitors
• Diversification allows for a wider selection of products and services If done properly, diversification will positively promote brand image
Some notable product lines of Hoa Phat include:
• Construction steel: billet, coil, bar, hot rolled coil, special steel and products related to the steelmaking process
• Steel pipes: Black steel pipes, Hot dipped galvanized steel pipes, Galvanized steel pipes, Large steel pipes, Galvanized coils, Other industrial steels
• Color coated and galvanized steel sheet: Rusted and oil coated steel coil, Cold rolled steel sheet, Galvanized steel sheet
• Metal fabrication: Supply of spare parts – Mining equipment, Construction equipment
• Household appliances: Air conditioner, Freezer, Refrigerator
• Furniture: Office furniture, buildings, schools, hospitals, household appliances, decor with tables and chairs of all kinds
• Real Estate: Apartment, Office, Trade Center
In addition, for key product lines such as steel, Hoa Phat always adheres to a strict production process with 5 steps: iron ore processing; sintering and pelletizing; iron; steelmaking; and rolled steel Hoa Phat applies closed circulation technology, controls and processes from input materials to finished products, ensuring products of superior quality
(Price): Product line pricing is a strategy that businesses use to separate their products and services into multiple prices, the purpose is for consumers to form a perception of quality product differences Simply put, this is the process of grouping similar products together and offering different prices, for each version are added features, in order to entice consumers to choose the product that the business wants would like
Realizing that the steel industry is characterized by having many products but different sizes and materials, Hoa Phat has offered an appropriate price for each of its products
Marketing strategy of Hoa Phat steel on price
( Place ): Hoa Phat's distribution system is invested very strongly, as this brand has been able to cover its products throughout 63 provinces and cities in Vietnam
To do this, Hoa Phat has sought and approached many reputable agents and businesses to cooperate with, along with high discounts to help consumers find their products in the easiest way
(Promotion): Promotion is a necessary business activity to keep pace with the consumer market Currently, Hoa Phat's promotion strategies are focused on promotional activities such as TVC or OOH
For OOH, Hoa Phat Group's billboards are always placed in expensive locations that are always crowded with people passing by
For TVC, the company always chooses national television stations such as VTV1, VTV3 as the main advertising channel With the top viewership ratings of TV channels, plus the selection of TVC broadcast time in the prime time frame, Hoa Phat successfully increased the brand awareness of the product
Over time, along with the change of the Group's development strategy, products that are given priority "pour money" on the broadcast have also changed
In the period of 2015 - 2016, the company focused on advertising interior products with the slogan "Hoa Phat, not Hoa Phat" In 2017, on a good growth momentum, the company chose to "build" brand "steel to build market share No 1 in Vietnam" based on data on market share of the Vietnam Steel Association After that, the company "cleared the way for Dung Quat project" with a strategy of advertising corrugated iron products in the South
In the 2015 period, the familiar slogan of this brand was "Hoa Phat, not just playing, developing with Hoa Phat" Image cut from Hoa Phat interior advertising video in 2015 - Source: Youtube
Image cut from Hoa Phat steel pipe advertising video in 2017 - Source: Youtube
Advertising construction steel with the familiar slogan "Hoa Phat - Construction steel with the No.1 market share in Vietnam" - Company website source
In 2018, with the goal of promoting the consumption market in the South, Hoa Phat built an advertising strategy with TVC with the participation of the famous actor couple Thanh Thuy - Duc Thinh and outside the news frame VTV1 Vietnam Television also broadcasts on channels HTV9 and THVL1
Even though it is a 30-year-old unit, it is not because of that that Hoa Phat stands out from the prevailing trends Recognizing the trend of integrating advertising into music videos that are "hot" in recent years Hoa Phat is not afraid to spend heavily when together with Bich Phuong launch the product "Choosy fish choose soup".
Action Program in 2023
MV “Choosy fish choose soup” - Sources:Youtube
This campaign also achieved quite successful results when it received more than 6 million views on Youtube, along with tens of thousands of likes
Consumption results in 2021, construction steel and HRC contribute 72% to steel consumption of all kinds Construction steel recorded 3.9 million tons, up 14% over the same period HRC reached 2.6 million tons, 3 times higher than 2020.
Sale Strategy
For iron and steel products, Hoa Phat's Marketing Strategy uses Product line Pricing Accordingly, with the characteristics of construction materials, iron and steel will have different materials and sizes so that customers can choose to suit their needs Therefore, different types of iron and steel will have different prices according to their value.
Human Resource Strategy
HPG acknowledges that human resource is an invaluable asset and a main value to built the success and sustainable development of the Company Hence, they always concentrate in the strategy of training and development of human resource to:
● Set up and develop a strong, professional and lasting legacy human resource
● Develop the creative, dynamic and highly qualified staffs
● Develop and implement training programs, fostering regular and professional practice for each officer, employee of the Company Continue proactive training potential officers for our Company
Current status of human resource recruitment:
Like many other businesses, at Hoa Phat Steel Pipe Company, recruitment is the process of finding, attracting and selecting personnel to satisfy the company's use needs and supplement the necessary workforce to meet the needs of the company implement the company's goals, help the company get the best human resources for current work and future business plans
The company's recruitment sources include: internal sources and external sources of the company
- Internal sources are employees currently working at the company The company often prioritizes candidates from internal sources to recruit into important positions such as heads and deputy heads of departments; in charge of departments, branches, etc when needed to encourage employees to strive for excellence at work
- Sources outside the company include fresh graduates, workers who need to find new jobs, seek new development opportunities, etc., who want to work at the company
The recruitment method used by the company:
- For internal recruitment sources: Recruitment through bulletin boards, internal website, through the introduction and promotion of officials and employees in the company or through the company's personnel file
- For external recruitment sources: recruitment through media, job websites, through brokers, job placement centers, or introduced by employees in the company
Coaching and Training
At Hoa Phat Steel Pipe Company, training and human resource development are always focused Every year, the company organizes 2-3 training courses, invites leading experts to teach about the Quality Management system, about ISO 9001-
2000 and disseminate it to all departmental staff In addition, the company also sends staff to study short courses to further improve their professional skills at universities The training process at the company takes place as follows:
- Identify training needs: The company's training needs are based on the needs of the job and the current skill level of the employees The Organization
Department based on the training needs proposal of each unit to determine the training needs of the whole company The Head of the Organization
Department is responsible for proposing to supplement the company's overall human resource training plan and submitting it to the Board of Directors for approval
- Developing training plans: After receiving training needs proposals from departments and units in the company, the Organization Department will summarize, evaluate and make an overall training plan to submit to the Board of Directors Director approved
The training content includes: political theory training, legal knowledge training, management skills, administration, knowledge training, professional skills, foreign languages and complementary knowledge…
Forms of training: planned/unscheduled training; long-term/short-term training; intensive training/in-service training; class/individual training; internal/external training
- Approving training needs and organizing the implementation of the training plan: After submitting and the Director has approved the training plan, the Organization Department will notify the training plan to the heads of other departments to notify the training plan train all employees in their departments and arrange appropriate work so that employees have time to participate in training as planned
- Evaluating training results, issuing certificates and keeping training records: At the end of each training course, the company has an assessment of training results, finding out the advantages and limitations of the training process and evaluating it trainees, issue certificates and confirm student results and store in personnel files At the end of the year, the company also evaluates the effectiveness of training programs, compares costs and benefits, assesses labor productivity, work quality and employees' working attitude post-training action Information for evaluation is taken from training results, survey opinions of students, lecturers and students' work performance
Expenses for company training from 2012-2014: (Source: Organization Department
- Hoa Phat Steel Pipe Co., Ltd)
- Training expenses in 2012: 90 billion VND, accounting for 8.92% of the total cost
- Training expenses in 2013: 146 billion VND, accounting for 11.98% of the total cost
- Training expenses in 2014: 340 billion VND, accounting for 19.02% of the total cost
→ Through the above data, we can see that the amount of money spent on training of the company has increased over the years, showing the investment interest of the company's leaders in training and human resource development in the unit
In order for new employees to understand the company and the product they are about to sell, they will have to participate in an initial training and coaching program for new salespeople Here are some of the trainings recommended by the team for the sales force:
Initial training and coaching program for new sales staff
1 About Hoa Phat Group (HPG)
2 Details of Hoa Phat steel products
4 Popularizing KPIs, salary and bonus regimes
6 How to handle common situations when selling
Training and coaching program for sales staff
7 The art of creating and maintaining relationships with customers
8 The art of presenting products to customers
Hoa Phat Group has been investing a lot of money in personnel training The number is up to hundreds of billions of Vietnamese dong and accounts for nearly 20% of the total cost Therefore, implementing detailed training with specific training courses is feasible and suitable for HPG's budget
For iron and steel products, Hoa Phat's Marketing Strategy uses Product line Pricing Accordingly, with the characteristics of construction materials, iron and steel will have different materials and sizes so that customers can choose to suit their needs Therefore, different types of iron and steel will have different prices according to their value.
Price strategy
Average cost of raw materials for products accounts for 75% to 80% of the price Therefore, in order to limit the impact of raw material prices on production and business, Hoa Phat has increased the reserve of raw materials, ensuring a continuous ability of 4-6 months to implement the strategy stabilize prices when the price of raw materials in the market soars
With agents nationwide, Hoa Phat Group has implemented many promotions, discounts and dedicated and thoughtful customer care policies Some promotions for customers across the country can be mentioned such as Golden Buffalo carrying early spring, Special promotions, etc In which, the new product C135 chair has implemented many different forms of promotion rich: gift when buying, percentage discount for the total value of standard goods In particular, the policy for loyal customers is extremely attractive and there are special incentives when customers become excellent Diamond Customers, Diamond Customers, Pearl Customers, Gold Customers, Platinum Customers …
Program Detail Person in charge
Sales staffs HR and Sale
Identify the skill sets needed to recruit new employees and work with HR to organize the recruitment and hire of the right talent
Last week of every month
Consolidate data and pay wages on time
Last week of every month
Consolidate data and pay wages on time
Last week of every month
Consolidate data and pay wages on time
Last week of every month
Last week of every month
Post recruitment information on time, the content must be detailed, accurate, clear, attracting candidates
January, March, April, June, July,
Post recruitment information on time, the content must be detailed, accurate, clear, attracting candidates
January, March, April, June, July,
Post recruitment information on time, the content must be detailed, accurate, clear, attracting candidates
January, March, April, June, July,
Post recruitment information on time, the content must be detailed, accurate, clear, attracting candidates
January, March, April, June, July,
Post recruitment information on time, the content must be detailed, accurate, clear, attracting candidates
January, March, April, June, July,
Gifts every holiday for retailer and staff HR,
The marketing and sales department offers and creates gifts for retailers, the human resources department offers and creates gifts for employees, and the accounting department spends enough money
Tet, March 8, mid- autumn festival, noel
Honor program ceremony HR and Sale
Organizing small parties, awarding gold star medals to outstanding individuals who exceeded targets in the quarter, giving promotion decisions to sales team leaders to sales staff
At the end of each quarter
Create a detailed plan for the annual vacation, balancing the plan to fit the budget
Observe the sales staff, understand and recognize the employee's missing skills and choose for
January, April, July, October them a course organized by the company to improve the employee's missing skills
Include the necessary, accurate and valuable information as the plan so that the new employee is confident and starts work
Evaluate technical staff's qualifications, train them to be in better condition
Bank to bring the most preferential installment policy for B2B customers
Approach, contract, negotiate with representatives terms and discounts if needed
According to the target revenue in 2023 of 24.000 billion VND, we will take 46% of the revenue of 1,104,000,000,000 VND as an expense for the sales plan
Program Detail Price Quality Total
Sales staffs salary 5.000.000/person/month
Commission bonus 4,000,000/ business 2000 packages 8,000,000,000 Bonus Group 70,000,000/quarter 4 quarters 280,000,000
Sales managers salary 50,000,000/person/month 80 persons/12 months 48,000,000,000
Hoa Phat Website Free 6 times 0
Gifts every holiday for retailer and staff 5,000,000,000/time 4 times 20,000,000,000
Honor program ceremony 600,050,000/quarter 4 quarters 2.400.200.000 Annual Vacation 4,500,000,000/time 1 times 4,500,000,000
New sales staff Meeting 400,000/time 3 times 1,200,000
Sales staff Course 30,000,000/course 10 courses 300,000,000
Technical staff Training 220,800,000,000/ training 1 training 220,800,000,000
In general, with a very diverse field of activities including: furniture, steel pipes, construction steel, refrigeration, real estate and agriculture
In which, the main field that accounts for a high proportion of revenue and profit of over 80% is steel production, with a pioneering brand, leading in quality as well as output, being the bright spot of Vietnam's steel industry Hoa Phat steel products for construction will ensure the most durable construction
Steel products of Hoa Phat Company Currently, Hoa Phat Steel has 3 main product lines: construction steel, pipe steel, box steel
In each product, there are product lines such as Box steel: Black box steel and galvanized box steel; Steel pipe: Black steel pipe, galvanized steel pipe and hot-dip galvanized steel pipe
Hoa Phat construction steel is manufactured according to many different standards such as: British standard BS4449, American standard ASTM A615/A615M, Japanese standard JIS G 3112
- British standard BS4449, on the trunk will show the following information: Hoa Phat Logo (Embossed 3 arrows symbol), next to the word: HOA PHAT, followed by Vietnam country code (9) , product nominal diameter
- American standard ASTM A615/A615M, on the trunk will show the following information: Hoa Phat logo (embossed 3 arrows symbol), capital letter PHAT, product nominal diameter, product steel mark according to the symbol (Usually will be denoted "S/S4", equivalent to steel grade Gr40, Gr60)
- Japanese standard JIS G 3112, on the trunk will show the following information: Hoa Phat logo (Embossed 3 arrows symbol), PHAT capital letter, diameter D , Steel mark symbol (Mark SD295A) no dot, Mark SD345 1 dot
".", Mark SD390 2 dots " ", Mark SD490 3 dots " ", the dot is placed between the stripes and between the 2 stripes only 1 dot)
Hoa Phat galvanized steel pipe has 3 types: black steel pipe, galvanized steel pipe and hot-dip galvanized steel pipe Each type of steel pipe has completely different identities, features and applications
- Rolled up from black corrugated iron material, the steel surface is dark blue or black, depending on the raw corrugated iron coil as well as the rolling process, the material color will be different Black steel pipe after being manufactured will be covered with a layer of preservative oil to prevent material rust
- Hoa Phat black steel pipe is manufactured according to the standards of TCVN 3783: 1983, ASTM A500, ASTM A53
- The application of Hoa Phat black pipe steel is very popular from the construction industry, technical industry, in daily life
- Galvanized steel pipe is the main product of Hoa Phat Steel Pipe factory, which is rolled up from galvanized sheet material, the product is silvery white, shiny zinc flower Products conform to ASTM A53/A53M-12, ASTM A500/A500M-
- Currently, hot-dip galvanizing technology is considered the best iron and steel protection technology today
❖ Hot dipped galvanized steel pipe
- Made from black steel pipe material, then dipped into a hot-dip galvanizing bath until a certain zinc coating is reached The advantage of Hoa Phat hot-dip galvanized pipe line is that it has the best anti-rust ability
- Therefore, the product is widely used in waste, clean water, food processing industry, fire prevention
Hoa Phat steel box includes two main types: black box steel and galvanized box steel
- Black box steel is also a product that is rolled up from black corrugated iron, rolled according to the factory's process and technology, ensuring the standards: TCVN 3783: 1983, ASTM A500, ASTM A53
- The application of Hoa Phat black box steel is in construction works, mechanical processing, making art products, making fences, box iron gates
- Rolled up from galvanized sheet material, the product conforms to ASTM A53/A53M-12, ASTM A500/A500M-13, BS EN 10255:2004 standards
- The application of the product is also quite popular such as used to make roof frames, applications in the production of household appliances, furniture
- Hoa Phat steel coil is supplied in coil form, about 1.2 m in diameter, weighing about 1000kg - 2100kg per roll
- Steel thread with common diameters: Φ 6, Φ8, D8 gai, Φ10
- Steel coils are widely used in civil works, bridges and roads, infrastructure such as the National Assembly building, Samsung Thai Nguyen project
- Steel bars with diameters from D10mm to D55mm
- Steel is manufactured according to standards Jis G3112-1987 (Japan), TCVN 1651-2008 (Vietnam), ASTM A6115/A615M-08a (USA)
- Steel has high strength, withstands the impact of the natural environment without rusting
- Large size steel pipes 141.3, 168.3, 219.1 with thickness from 3.96mm to 6.35mm according to Asian standard A53-Grade A
- Large rectangular square pipes 100x100, 100x150, 150x150, 100x200 with thickness from 2.0mm to 5.0mm according to ASTM A500 standard
In the field of steel production, Hoa Phat Group's marketing strategy focuses on product quality development Hoa Phat's production process for a steel bar includes
The production process is applied modern technology, closed circulation, controlled and processed from input materials to finished products, ensuring superior product quality Every process from input to output is strictly controlled according to ISO quality management systems such as ISO 9001: 2015 (Quality management system), ISO 17025: 2017 (General requirements for the competence of testing and calibration laboratories), ISO 14001:2015 (Environmental management systems)
In addition, the Group applies and develops many innovative initiatives that contribute to improving the quality of steel products produced, saving costs and making the operation process more efficient
For example, the steel mill at Hoa Phat Hai Duong Complex, at the end of 2018 and the beginning of 2019, the factory combined with departments to form a team to implement solutions to improve the quality of castings and The results achieved are very encouraging with the casting quality rate significantly improved, with the rate of castings achieving grade 1 in 2019 is >98%
In addition, there are many improvements in mechanical, electrical and technological groups suitable for production, which are also very important factors promoting the increase in output of the Steel Mill
Equipment and machinery are also regularly replaced and maintained by Hoa Phat Group, such as at the steel factory at Hoa Phat Hai Duong Complex, which has the
No 2 Casting Machine Overhaul Maintenance Program Deep maintenance package of casting machine 1, casting machine 3 and casting machine 4 with the aim that
63 after performing the maintenance, the billet casting speed of 150×150 billet to an average of about (2.7-2.8 ) m/min and the average billet 165×165 is (2.4 -2.5) m/min…
Only finished products are sold to customers Especially, the exported products have now met international quality standards such as JIS GS3505:2004, JIS G3112:2010 (Japan), BS 4449:2005 (UK), ASTM A615 (USA)
Certificate of steel standard of Hoa Phat Steel Company
Avatar Profile External customers Internal customers
Demographic Field Enterprises producing steel, billet, household goods, shipyards,
Member companies in Hoa Phat group such as steel company, irrigation and road construction units, construction contractors equipment and spare parts company, refrigeration company, furniture company
Accomodation HCM, HN City HCM, HN City
Every order is in bulk
Therefore, this group of customers requires high standards of size and volume
Long-term use of the company's products
The level is suitable for products and services
Desires for products and services that can be solved directly and indirectly
Solve the problem of buying steel products for the company: high standards of size and volume meet the needs of the company
Solve the problem of buying steel products for the company: technology, operation, machinery, warranty and maintenance
Priority for products and services
Special steel and products related to the steelmaking process
Steel pipes: Black steel pipes, Hot-dip galvanized steel pipes, other industrial steels
Color coated steel sheet, galvanized sheet: Rusted and oil coated steel sheet
Many other competitors Picking a product that doesn't fit the company's standards can be challenging
XI TOTAL CUSTOMER EXPERIENCE (TCE)
Customer Experience (customer experience) is the feelings, impressions, perceptions of customers about their experience with your business throughout the buying journey
In order for customers to have a good experience besides providing quality products, the process of pleasing them and giving them positive emotions is also extremely important
[Vietnamese: Customer Experience is the feelings, impressions, perceptions of customers about their experience with your business during the buying journey
In order for customers to have a good experience besides providing quality products, the process of pleasing them and giving them positive emotions is also extremely important ]
What are the benefits of good customer experience:
English: What are the benefits of a good customer experience for businesses?
Difficulty in designing customer experience:
- Customer behavior is increasingly unpredictable as it is influenced by social media…
- The customer journey passes through many touchpoints over which we have no control
- Loyalty is a difficult request to fulfill For example, when you book a hotel, open many apps, choose the cheapest place
- Brands are hard to be unique For example, now there are hundreds of coffee chains, customers will prioritize choosing the most convenient place Difficulty in designing customer experience
- Customer behavior is increasingly unpredictable because of the impact of social media
- The customer journey goes through many touch points that we have no control over
- Loyalty is a difficult request to fulfill For example, when you book a hotel, open many apps, choose the cheapest place
- Brands are difficult to be unique For example, now there are hundreds of coffee chains, customers will prioritize choosing the most convenient place
Increasing customer experience is a way to promote business activities necessary to optimize sales processes and improve successful conversion rates Currently, Hoa Phat's promotion strategies focus on advertising activities like OOH or TVC on national television stations like VTV1, VTV3 as the main promotion channel With the top viewership ratings of TV channels, plus the selection of TVC broadcast time in the prime time frame, Hoa Phat successfully increased its brand awareness At the same time, the number of known customers has also increased sharply, so it is essential to have a customer journey map to optimize the customer experience CUSTOMER JOURNEY MAP
Step 1 - Want to buy steel products
Step 2 - Clicks ad to landing page
Step 1 - Goes through check-out
Step 2 - Land on Thank You page
Step 3 - Waiting for the package
Step 4 - Check the goods upon receipt
TOUCHPOINTS Sh op pin g Ca rt
Lo gin /R egi str ati on
Pai d Se rvi ce Pr ovi de rs
Th an k Yo u pa ge
Or de rin g Co nfi rm ati on
Shi ppi ng Upd ates
Step 1 - Want to complain but do not understand the process
Step 1 - Receive newsletter for evaluation campaign
Step 3 - Get loyalty coupons for new purchases
Newsletter E-Shop Landing page Form Loyalty coupons DEPARTMENTS
Step 1 - Good reviews with relationships or on community platforms
Step 2 - Join the enhanced loyalty program
Newslet ter E-Shop Landing page Form Loyalty coupons
OOH or TCV advertising emphasizes cohesion, pride and devotion to elicit empathy from business customers Give customers a friendly experience as a companion
Convey to customers the most accurate, clear and concise information
Set high UI/UX standards for the design team Building
"inbound content" competitive advantages over competitors
Connect directly for personalized support, solving customer problems by building bespoke orders tailored to their business
The buying process is simplified to the simplest level for customers to have convenience and easy decision to buy At the same time with personal support
The buying experience should also be one that makes customers happy, sharing their struggles, and feeling their own priorities
Personal assistance with any merchandise issues Develop special strategies to enhance the service experience
Example: Shorten the time to solve the problem and increase the commitment depending on the contract
Optimizing services so that customers can have peace of mind and solve problems faster
Loyalty Loyalty coupons for new purchases are designed with
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
A CRM system helps businesses keep customer contact details up to date, track every customer interaction, and manage customer accounts It is designed to help businesses improve customer relationships and also Customer Lifetime Value (CLV)
Management guru Peter Drucker said, “The purpose of business is to create and keep a customer.” And businesses, small and large, have long since used a variety of manual methods to track and connect with customers
It was only in the 1990s that customer relationship management (CRM), as we know it today, started taking shape Contact management, database marketing, and sales force automation were among the first functions to be offered in CRM software
Today, CRM software has grown in complexity, supports collaboration among multiple teams, and provides predictive and prescriptive insights to optimize sales initiatives It also helps businesses integrate their marketing, customer service, and sales efforts across offline and online channels
Based on an analysis of more than 9,000 inquiries about CRM software, Software Advice received from buyers in 2019 revealed that the following are the most in- demand CRM features:
The majority of customers still seek the same core CRM functions that were first automated in the ’90s This suggests that managing leads and contacts to automate sales processes continues to be one of the primary functions of CRM software
Marketing features are also gaining prominence given the many channels available today to reach out to customers Similarly, the demand for reporting and analytics is increasing, as businesses are leveraging data to understand customer behavior and predict sales volumes
According to Gartner’s CRM Application Functionality Starfish report (full report available to clients only), at the finest level, there are 232 CRM function subcategories, and no single vendor offers functionality in more than 150 of these subcategories
Let’s discuss ten key functions that you should have in your CRM tech stack We’ll also cover a few questions that you can ask vendors to understand if a software tool meets your needs
Generating leads is the first step in the sales cycle CRM software helps capture lead details from multiple channels, including web forms, phone calls, social media platforms, and emails Lead management functionality ensures that you don’t lose any leads and that you score and qualify leads correctly It also tracks the progress of leads through the sales cycle and helps decide on marketing initiatives for nurturing them
Key questions to ask a vendor:
• How many leads can I store?
• Is there an option to analyze and visualize leads?
• Can I create custom rules to qualify leads?
Contact management involves recording customers’ details, such as name, phone number, address, and social media handle, in a searchable database It also tracks and saves customer interactions in the contact database to build an integrated client profile Contact management saves sales representatives the time and effort spent on remembering customer details or searching for them in multiple databases Key questions to ask a vendor:
• How many contacts can I store?
• What are the additional charges for increasing contact storage/numbers?
• Which details does the contact management feature let me capture?
Email is the most preferred channel for B2B communication Email management offers the ability to send mass emails, track email conversations with clients, plan drip email campaigns, and send automated emails to clients for events such as birthdays or anniversaries As per Software Advice call notes analysis, an option to integrate the CRM system with existing email applications, such as Outlook or Gmail, is highly desired by buyers
Key questions to ask a vendor:
• Do you provide customizable email templates?
• Are there predefined drip email marketing campaigns available?
• Can the software integrate with Gmail or Outlook?
Reporting and analytics is required across all major business functions that CRM supports-sales, marketing, customer service, field service, ecommerce, and more It helps track metrics such as profitability, rate of customer retention, and effectiveness of marketing campaigns Reports and dashboards provide a high- level view (with drill-down options) of how a business is faring on different metrics This feature also lets you share reports with different teams to make collaborative data-driven decisions
Key questions to ask a vendor:
• Do they offer drill-down options?
• What analytics and reporting features are available in the free version?
Marketing-related inquiries mainly revolved around the ability to segment and nurture leads, prepare and launch marketing campaigns, track campaign optimization, and support social media marketing The marketing function covers aspects such as content marketing, marketing resource management, and automation Marketing automation helps reduce costs and improve the efficiency of marketing initiatives
Key questions to ask a vendor:
• Are marketing features included natively in the CRM solution, or are these offered via integrations?
• What are the different types of marketing tasks supported by the software?
• Can the software be integrated with other marketing tools, such as
Sales pipelines help visualize the sales cycle and identify where in the sales funnel a particular deal is They allow you to sort and filter deals and perform bulk actions, such as sending emails to select customers If you sell different products, you can create multiple sales pipelines to compare sales volume across products Pipeline management helps tally sales with revenue and decide which deals to proceed with on priority and which ones to drop
Key questions to ask a vendor:
• Can I use custom color codes for the pipeline?
• What interactive elements and drill-down options does this function support?
Workflow automation allows you to create intelligent workflows using logic or rules, such as if-then-else, to automate repetitive tasks, including following up on leads, raising invoices, and sending emails You receive notifications when tasks are completed as well as reminders if you need to input data manually Workflow automation helps salespeople save time, avoid duplicate jobs, and ensure that the right actions are completed at each stage of the sales process
Key questions to ask a vendor:
• Is this feature provided in your paid or free version?
• What different types of rules can I create for my workflows?