Chapter 3 : The mission: assigned tasks and goals This chapter consists of tasks, goals need to achieve during internship Chapter 4: Implementation of the trade marketing activities
SETECH BACKGROUND
An introduction of SeTech – history of establishment and development
- Name of company: Service & Development Technology of Vietnam Company Limited
- Short name: SeTech Co., Ltd
- Forms of ownership: Limited liability Company with two or more members
- Certificate of business registration No 0105478900 by Department of Planning and Investment of Hanoi, issued on August 31, 2011
- Business account: VND 86610469 at VPBANK – ThuyKhue Branch
- Head office: 513 Au Co Street, Nhat Tan, Tay Ho, Hanoi, Vietnam
Hanoi: No.25/82 Pham Ngoc Thach, Dong Da, Hanoi
DakLak: No.33 Nguyen Cong Tru, Tu An, Buon Ma Thuot, DakLak province
- Email: info@vnsetech.com / minhnguyet@vnsetech.com
1.2 History of establishment and development:
- SeTech was founded in 2011 on the basis of a team of young, enthusiastic, willpower and experienced people working in the field of supplying and installing security equipment, telecommunication electronics, organize international exhibitions and seminars, investment consultancy and technology transfer
- When it was first set up, SeTech faced many difficulties and challenges of the followers because at that time the market of security equipment in Vietnam began to develop Many of the big competitors have had a strong foothold with many powerful resources
- But with the firm belief in its core values, including staff’s creativity, flexibility, high adaptability single market and global thinking that are fundamental for the long-term growth and sustainability of the Company Nowadays, it is recognized as an important link to the supply chain of security equipment sector in Vietnam, a bridge between Vietnam and the world in accessing modern security and surveillance technologies Although set up late but It is truly a pioneer in develop market, improve business methods, focus on marketing, financial
3 management to create competitive advantages with more solutions to satisfy the increasing needs of customers
- With extensive experience from founders, combined with the ability of connection and building relationship with local partners and global supplier, SeTech is looking towards to become a leading enterprise in the country and regions, also create a dynamic working environment, creativity, multicultural, hence bringing development opportunities for business partners and local communities.
Main business fields
With the goal of becoming a leader in technology and service development, SeTech is currently operating in the following areas:
SeTech is now the official distributor for many leading security equipment companies in the world as EL-Far (Israel), Haritham Technology (India), Gallagher (New Zealand), Secus (Korea), Panasonic (Japan), Honeywell (USA), So they set up agents throughout Vietnam and have around 100 agents nationwide
Products in their distribution system include: Camera, Access control, Intrude and Fire alarm, Video door phone, Security Fence and some other products
Developed from mission technology transfer and, SeTech has organized many international conferences and exhibitions in Vietnam to connect Vietnamese businesses with foreign suppliers This is an activity that geting the great support from the government departments and creates a strong brand for SeTech in technology development activities in Vietnam and in the world
Some of events which SeTech organized as bellows:
VNSecurity 2011 exhibition which took place on November, 2011 at Hochiminh
VNSecurity 2013 exhibition which took place on August, 2013 at Hanoi
TechnoJapan 2013 exhibition which took place on November, 2013 at Hanoi
Conference “Information security and hacker prevention” at Sheraton Hotel Hanoi in
Conference “Transfer of IMS-mini portable gas detector assembly technology” at Ministry of Defence in 2012
Conference “Information security – TetCon’2012” at Hochiminh in 2012
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This activity has been invested by SeTech since 2016 and is in the construction phase of infrastructure, not many results but predicted to be a key activity of SeTech in the future.
Basic financial data
Below is consolidated financial report dated on December 31, 2016 included:
Table 1.1 Consolidated Balance Sheet Report dated December 31, 2016
Contributory tax payer: SeTech Co., Ltd
No Items Beginning year Ending year
III II Short-term investment - - III III Short-term receivables 43,746,828,686 3,411,336,346
III III Long-term investment - -
IV IV Other long-term assets 2,144,824,000 1,713,021,519
1 1 Short-term loans and debts 19,051,296,000 5,759,688,000
II II Long-term liabilities - -
Table 1.2 Income Statement dated December 31, 2016
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From the income statement, we see that sales and net income of 2016 almost doubled in 2015, which is impressive, proving the company's phenomenal growth 2016 was the difficult year for almost Vietnamese company with the influence of Election of the 14th National Assembly as well as the economic and political impact of the world but SeTech has achieved tremendous growth both in terms of sales and profits, demonstrating the right direction of Board of Director, building momentum for the growth of next year
SETECH COMPANY STRUCTURE AND ORGANIZATION CHART 7 1 SeTech Company Structure
Intern’s position
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Intern’s position is as an assistant for general director specializing in marketing activities with various initiatives and objectives
Cooperate with marketing manager to deploy the marketing activities as bellows:
- Review current marketing activities of company
- Reset the functions and duties, structure of the marketing department
- Build the marketing plan on month, quarter, year
- Provide training, guidance for marketing staff
- Cooperate with marketing manager implement plans which approved by CEO
THE MISSION: ASSIGNED TASK AND GOALS
My tasks at SeTech
During the internship, my tasks were to work at the marketing department as a trainee and assistant of CEO to reset the marketing activities because the marketing department at SeTech is not effective as assessed by CEO The involved works are as follows:
1.1 Work with the marketing manager to review all marketing activities such as departmental structure, job description of each staff, key tasks and how to implement the activities that the marketing department is carrying out as well as result of each marketing activity at SeTech 1.2 Based on the obtained information, I will analyse and evaluate current marketing practices with strength and weakness and then re-establish roles of marketing to improve the efficiency Beside I will combine with marketing manager to rebuild the job description, the functions, duties and responsibilities of each employee, train and guide them how to deploy the task to achieve the highest results
1.3 Make the marketing plan on the base of key duties and find out how to implement the marketing activities to promote the business best Specially focus on the business development of dealer system as required by director This is the most central and important task that the CEO entrusted to me and also the challenge that I must work hard during internship at SeTech
1.4 Controlling marketing activities has been established to ensure that operations are as planned A marketing plan consists of a lot of activities from advertising, media, images, events, promotion programs, etc., so need control both internal and external factors, barriers, problems to reach the end result as expected
1.5 Combine with marketing manager report the results to CEO to compare the performance of the activity after adjustment.
The link between the subject matter and my mission in SeTech
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During the internship, I have acted as assistant of general director at SeTech and work as a trainee and assistant of the marketing operation management I have to review the current marketing activities and find out lack of them which make the dealer business has not good as expected I have worked as a real marketing officer in the marketing department, spend much time exploring all the activities of the department, I found that the marketing department at SeTech had never implemented trade marketing activities Trade marketing as the modern marketing method to develop the business at the point of sale SeTech does not have its own retail system but each dealer is like a retail store with a lot of goods from the competitors, so not have investment on trade marketing at the store of dealer is the huge omission to promote sales This is subject matter I propose to deploy at SeTech This is also the most central and important task that CEO has assigned to me when I am interned at SeTech Agent business is not as good as expected can come from many reasons, but the lack of deployment of trade marketing activities in the distribution system which greatly affect to the agent business results.
The goal I was asked to achieve
As required by CEO, I need to restructure the marketing department, rebuild the duties and responsibilities of each person, finding out the reason that marketing activities are less effective in developing dealer business at SeTech while sale department processed very positive and product with high quality CEO asked me need to analysis the causes and work out how to push sales target through dealer system by marketing activities Distribution business is main field which bring the biggest revenue to SeTech in this time Investment on marketing to promote the segment is very important and significant My task is very difficult to meet the requirements of General Director, I need to carefully review the current activities, learn the modern marketing trends to find the gaps in marketing activities at SeTech, on that basis, setup the new method to bring the highest business efficiency.
Feedback to SeTech
After reviewing all of the existing marketing activities, analysis the issues, I found out that SeTech had not invested in trade marketing at the dealership's stores to increase the recognition of SeTech’s product comparison with competitors' products is a major flaw in the business, because SeTech's dealer system is not an exclusive dealer which not only cooperate with SeTech but also the sales of its competitors That is why I suggested implementing trade marketing to win at the point of sale, promote business Of course with the implementation of this new marketing method requires the investment of personnel and financial strongly to be able to implement synchronously
Especially for the implementation of trade marketing activities need a very active coordination from the sales department, because in fact trade marketing is the middlemen between marketing and business, trade marketing are a part of marketing department or a part of sales department depend on each company At SeTech, if trade marketing is under marketing department should require the strongly support from the sales department and the investment from the Board of Director (BOD) to promote business at the dealer system as requested from CEO Before starting, I needed the BOD as well as the sales department to understand the importance of this activity for boosting the distribution business and having the proper investment to deploy.
Theoretical knowledge acquired during my academic year in Master AMI that is
All courses in Master AMI program have helped me a lot in my internship at SeTech, especially the subjects related to marketing activities such as: international distribution channels, international & intercultural negotiation, international business communication, international business plan and business strategy The knowledge gained from these courses has given me the foundation to carry out the following specific activities: a Make the marketing plan: To do this, I need to have a basic understanding of the steps to make a plan with traditional and modern marketing methods, the factors that influence and affect to marketing activities Moreover, marketing is an integral part of the business plan, learning international business methods also gives me new insights about modern marketing from the professors throughout all of the programs b Promote the business of dealers by the marketing method: have the mastered knowledge of distribution channel which studied in lectures about international distribution channels and business strategy is the key support me research and analysis the business process of dealer as well as the marketing support to increase sales at retail stores It is also from modern business methods, new information from develop countries that learned in the program gave me new ideas to setup new methods in marketing activities c Coordinate with manager and staff of marketing department: To achieve my goals and meet the requirements of CEO, I need to work closely with the marketing manager and get positive cooperation from all staff of marketing department In order to balance the relationship, besides having the solid knowledge about marketing, it is necessary to be able to communicate and negotiate which is learned from the courses
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14 as intercultural negotiation and business communication helped me a lot during my internship at SeTech d Present plan and report to CEO: with all courses at Master AMI program, we always have opportunity to make the report of each lecture and presentation in class which helped me so much in moving ideas, plan to implement and report results to CEO with the best expression In addition, negotiating and communication skills helped me give out the cases to persuade BOD for investment on the trade marketing activities, which required large personal and financial to bring the efficiency of distribution system as my main duty at the internship e It can be said that all the lectures in the Master AMI program supported me a lot and are applied more or less during my internship, including lectures about financial, risk management or international commercial what helped I can interact well with other departments in the company to achieve the highest efficiency in my task
IMPLEMENTATION OF THE TRADE MARKETING ACTIVITIES
Highlight of the trade marketing
1.1 What is the trade marketing?
Have many definitions about trade marketing, but we can hear a shortcut: Trade marketing is the application of marketing techniques to retailer to reach or win with shopper at point of sales
Today, point-of-sale is increasingly having a major impact on shoppers' purchasing decisions Company want to sell goods need to be satisfied by customer and thus helping to lure shoppers Direct contact with shoppers requires a dedicated team to think through the roles of marketing tools and coordinate to use them They will, on behalf of the company, persuade and shows the tangible and intangible benefits of choosing the product and making the customer more loyal to the product and brand of company
Today companies have formed trade marketing to undertake this task This job requires full responsibility for marketing, implementing policies, using various marketing tools, tracking all marketing costs follow items, format, the product life cycle, coordinate to implement the large campaigns, the synchronization program in the point of sale
These challenges are the driving force leading to the formation and development of the marketing division The moment to choose where to shop or what to buy is the moment the sales and market share of a brand are decided Trade marketing was born to support the brand win at that moment
1.2 The tasks of trade marketing
Trade marketing in the basic form is responsible for strategic planning to support the sales department In small-scale companies, Trade Marketing is often an integral part of the sales department, planning marketing-related tasks such as launching nationwide promotions, sales standards advertising, product forecasting, budget management, etc These activities are merely to support the sales department and support the stores to operate more effectively Optimization Patterns:
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Trade marketing has grown tremendously and is the foundation for a new industry that is shopper marketing (also known as targeted marketing) Shopper marketing is the interface between the concept of trade marketing and consumer marketing Because the fundamentals of trade marketing are aimed at the point of sale or distribution, while shopper marketing's primary audience is shoppers, the general audience will increase sales, competitiveness and market share of the point of sale and brand Ultimately, the purpose of trade marketing is also to influence the purchase decision of shoppers so should be considered shopper marketing is a higher development of trade marketing
The cost of media is becoming more expensive, while the channels are increasingly dispersed and their impact on customers' purchasing decisions is reduced By contrast, by virtue of having an impact on point-of-sale shopping behavior, shopper marketing will become a new way to reach shoppers
1.3 The important of trade marketing
As well as marketing, the two aspects of TRADE marketing and BRAND marketing are completely different Brand marketing is the ultimate consumer object that directly uses the product or service, while trade marketing is the object of existing or built distribution channels, where the delivery of the product to the end-user
Due to the specificity of the object, today trade marketing seems quite new to many Vietnamese companies However, companies are aware of the need to giving proper trade marketing strategies and align with other existing marketing strategies which they are implementing
First of all it is important to master the fundamentals because mastering the fundamentals and differentiating trade marketing from other marketing concepts will help company give out the right strategy, as well as the use of resources, especially manpower need to suitable for each strategy The importance of understanding retailers specific needs and desires in distribution From these analyzes and assessments, company will understand the customers and know how to apply the most effective tactics for each target when implementing each trade marketing strategy
In addition, trade marketer must monitor and improve processes to align all marketing activities with sales activities Work closely with the marketing manager to improve the process of corporation build brand and product development as well as sales activities
Trade marketing is increasingly considered by Vietnamese enterprises as an effective tool for winning at their distribution system, which is considered as an intermediary for the sales department and marketing department of company Therefore, trade marketer must know clearly about the company's plan, specifically the marketing plan to promote the activities with the sale staff in accordance with the plan
In addition, trade marketers must roll out with seller to understand about programs which trade marketing is capable to done or not and what extent Because when we made at 10 points of sales will different entirely with the implementation at 5,000 points at the same time
A common mistake that many marketers make: doing things too complicatedly, making it difficult for seller to do well So, think simply when make marketing trade
Another content that is presented quite deeply is the importance of POP (Point of Purchase) - and how it impacts the selling point The impact must be to ensure the following factors: Place the product on the right selling point; The selling point is not only superior about image but also convey the message to the person who wants to buy the product, or how to ensure that before or at the time the buyer makes a purchase decision, the brand name of the product which will be first mentioned more than the competition Wining in the buying area is the key to success
Enterprises have many opportunities to discuss and give individual ideas about the forms of trade marketing for different categories Trade marketing for a new product of the FMCG industry specifically like? What is the difference between trade marketing in the Northern and South? From these practical experiences, enterprises can draw on methods of conducting trade marketing to suit their respective industries in order to achieve the highest efficiency
The structure and duties of trade marketing team at SeTech
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Trade marketing is the decisive factor in winning at the point of sale, changing the behavior and the decision of the buyer Since then, this activity has a direct impact on sales and profitability of the company Object of the trade marketers are shoppers and partners in the distribution channel
I build the trade marketing team with 5 people include one leader and four staffs with structure as follows:
Diagram 1.2 Structure of trade marketing team
Duty of each people at the trade marketing team:
2.1 Trade marketing leader: Manage and divide duties of team to each member and in charge of activities as follows:
- Planning, forecasting: Team leader have to read and forecast sales, quantify sales opportunities and prove the feasibility of the proposed plans
- Coordinate and lead: needs to coordinate with brand marketing team and sale department to influence the shopper, customer at the point of sale Team leader must smoothly coordinate his team with other departments to bring high business results and make believe for trade marketing team
- Business Sensibility: Team leader need practical insight and business sensitivity because all most of trade marketing programs to achieve sales target
2.2 Customer development staff: Develop and build a distribution system through activities:
- Channel Development: These are activities to expand the dealer channel of SeTech, by building a distribution system in new urban areas to rural areas where had the demand about security equipment Need to combine the traditional channel to the modern channel, or online channel
Staff 3: Consumer Engagement Staff 2: Category
- Trade discount: Cooperate with sales department to build a pricing system that SeTech give to distributors, at an appropriate discount rate for distributors to purchase and redistribute product It depends on the number of purchases and the type of distribution channel to decide the commercial discount rate
- Loyalty program: Need to build loyalty program to encourage distributors to buy more and more product from SeTech but not from competitors Examples are promotions for big quantity invoices, gift promotion, year-end bonus promotions…
- Customer events: In charge of organize the events of gratitude, rewarding to support for sales staff have opportunity build good relationships with partners
The person responsible for this part must coordinate with the sales team to develop the common strategies involved: Penetration, portfolio, pack – sizes and pricing
These strategies will help to increase brand coverage, increase penetration in the store, which will have more buyers, more users try (Trade - in) Then stimulate them to consume more products with different categories in the category (Trade - across) And finally, they propose to use higher value products, sales grow up
2.4 Consumer engagement staff: the person responsible for this part must deploy the marketing activities at point of sales to promote change shopper's decision to buy goods of SeTech but not competitor, activities include:
- Consumer promotion: Examples include free samples, gifts, discounts, gift vouchers, prizes
- Merchandising: Is the arrangement and display portfolio of brands that are reasonable and the most eye-catching Example: Prioritize new products or large inventory to help the company take advantage compare with competitors
- Point of Sales Materials (POSM): Bill-board, display shelf, VM, clothes of PG…
- POS Activation: Are activities to attract the attention of shoppers These activities include trial products and equipment, consulting and persuading customers…
2.5 Company engagement staff: Is an interactive operation with the sales department to promote sales, increase turnover The tasks include:
- Sale Forecast / Target: give sales targets, sales volume for products and brands to sales department can make suitable strategies
- Activation of Sales Team: These are new product introductions, fire and motivation propagation for the seller at shops
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- Visibility: organize the contests to improve creatively and effectively of seller at shops, bringing innovations to activities at POS.
How to implement the trade marketing activities at SeTech
SeTech is trading company, major field of SeTech is distribution business, is not retailer, so trade marketing activities will direct agents and support agents sell products of SeTech but not competitors
Diagram 1.3 Position of trade marketing at SeTech
To deploy the trade marketing activities at SeTech, I performed steps as bellows:
3.1 Setup trade marketing team: Build the structure of trade marketing team with job description clearly at each position to get highest effective in deployment Set up trade marketing team will be based on the standard of group described above, but can be done in the sense that it is not possible to set up enough people for the system SeTech does not have private retail system, but SeTech has a large agent system, so if there are not clearly define the tasks of each employee at trade marketing team, it will be difficult to recruit and coordinate work
3.2 Recruitment staff: We conduct recruitment with descripted position because current marketing department of SeTech is not staff to handle this additional activity, so it is necessary to recruit new staffs and especially those who have experience in implementing trade marketing activities at other companies
3.3 Training: After have enough staffs as required, we conducted intensive training and professional training with activities as follows:
Step 1: Category understanding of SeTech: through this training course, news staff hear contents:
- Distribution: Current SeTech have 100 agents nationwide, each has its own characteristics about the level of products and products are distributed in each different region
- Price of product: price of product of brands which SeTech distributing compare with other competitor at shop of agents SeTech has high quality products at an average price so bring highly competitive
- Visually Merchandising: At dealer’s stores, SeTech has never performed any VM operations to enhance the presence of SeTech products in many other competitors, this is shortcoming in promote sales
- Promotion: The same with VM, SeTech never implement any promotion program with agents to promote sales for products of SeTech So we also will build some promotion program to improve
Step2: Channel and trade understanding of SeTech: SeTech has over 100 agents in the country, each agent have different demand and relationship, if we trade marketer build the good relationship with them, SeTech’s product will be actively sell instead of rivals Beside need “mapping” all retailers/agents where SeTech’s products are sold, so trade marketer must find and expand
Step 3: The shopper understanding: Need to understand the goals that customer purchase product of SeTech and understand consumer trends now to give products fit the needs Beside find way to attract more shopper to stores or increase spending of shopper on SeTech’s product
3.4 Perform the trade marketing activities:
- Provide the new VM and POP for all agents with bill board, poster, shelve and specially offer free a demo set to customer trial in-store of agents Each year will change 2 times according to the development of products and technology, or replace when broken, when new arrive The purpose of this is to ensure that before or at the time the buyer makes the purchase decision, the SeTech's product brand will be more concerned than the competitors The where take place the decision for purchasing is usually the counter - fixed shelves, payment location, exhibition stands The purchase area has a great impact on the success or failure of marketing activities
- Offer a higher discount to the agent to get a good display at the dealer's store Displaying to attract customers' eyes will be a huge advantage in sales promotion At the point of sale, a product only has a few seconds to attract the attention of the buyer Therefore, the most important element in the showcase is that the product must be seen easily To do so, we must
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22 choose the right place Even if the product is eye-catching packaging, but if the wrong position, then there is no chance to see
- Organize customer conference in the end of every year to reward high-volume agents This activity will help establish good relationships with distributors and make environment for sales staffs to access, exchange and create additional business opportunities to increase sales
- Every year there are 3 big promotions for agents in March, July and December to stimulate purchases at dealer’s stores, beside will organize many small promotions as get gift when buying certain types of products, when contracts are of great value Promotion to increase coverage, reduce inventory, and respond to competitors The promotion of distribution channel is not easy, requires the trade marketer to answer a series of questions, such as promotion when, what promotion, promotion how, promotion to achieve sales how much How do consumers perceive promotions, factors that increase sales and profit which product is suitable for each the program Which promotions help increase the loyalty of the product, the type of promotion for customers do not like discount with all question like this, we must discuss with each dealer to give promotion program adapt to purchase behavior at each locality
- Organize sell-in program to introduce new products for agents so agents will order and forecast the level of product sold to import This helps to avoid inventory and pressure on residual inventory as well as a decrease in profits due to the implementation of too many discount programs
- Trade marketer regularly goes to the dealer's store to carry out standardized display activities and make sure SeTech's products are the most attractive The first impression is an advantage when the buyer approaches the product at the point of sale At the point of sale, we have to use displaying tools and installation art to promote SeTech products and brands This must be regularly monitored so that competitors' products are not more attractive
- Co-ordinate with agents to implement activities to increase the buyer's attention on special occasions such as opening, promotion Each promotion program should have a defined and understandable goal The design of the program must revolve around finding opportunities, how to build SeTech’s brand or for some important event Therefore, it is necessary to have an extensive promotion program, understanding consumers will bring good results, especially when the quantity of goods sold is low
- Find new agents to expand distribution system Currently SeTech has more than 100 dealers nationwide but there are many places there is demand for products and equipment of
SeTech but we does not have agent, the expansion of the distribution system is necessary to increase sales, market share and promotion business as required by the BOD
3.5 Estimated budget of implementing trade marketing activities each year
No Description Price (VND) Quantity Total (VND) Note
1 Cost for VM with all category for
5 Cost for transportation to carry out display products
6 Cost for salary of trade marketer 150.000.000 5 750.000.000
Table 1.3 Budget for trade marketing per year
At the cost of the trade marketing activities and staffs, I also set a sales growth of the agent system will increase 30% for sales without deploying this activity.
Some note when implementing trade marketing activities
Scope of Trade Marketing activities are often below the line To optimize the performance of trade marketing, it is necessary to optimize the way consumers approach the product
A good position in trade marketing will be understand as the location of store, the position of product in the store Good position will make customers see the product quickly and then give out purchase decision soon, aims of trade marketing to reach approach that mean customers need to hear, see and feel the product There are new products, just show to consumer familiar items, not hastily sales If the items have sold, in addition to pay incentive display also accompanied by sales monthly, quarter or even accumulated by the year However, there are shops that will take advantages, only buy enough displays, monthly awards for show but does not buy more in the month to sell, or buy "floating" to sell without buying from official provider To solve this problem, the bonus for display along with sales is also a good way Good presentation and sales have many benefits:
- Stimulating consumers: If consumers go to the store, do not request a specific product, seller usually sell products that have a lot of benefit Currently, due to the understanding of
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24 consumer is not high so consultant and persuasion of shopkeepers still plays a very important role in purchasing decisions of customer
- VM policies: Through some of VM techniques such as eye level, hand level, block size, color, product value, size,…Some tools such as shelf talker (advertising stickers on the shelves), wobbler, For some products, need to have the glass cabinets, mica cabinets, small shelves, hanger to display at the shop or at the supermarket, depending on demand of customers to make the shelves accordingly It is mean that need to make display goods suitable for each customer
- Through display (especially in supermarkets and convenience stores, consumers have more interactive time at the counter) VM with manual instructions, especially for new goods, will stimulate more consumption
- Test product: The user experience in the store is an attraction, especially with technology products such as camera, computer Consumers only decide to buy when they understand the full range of features, the actual product experience It is important to improve knowledge, skills for the PG, PS at the point of sale to explain, present, persuade consumer to make the final decision
The moment a consumer sees a product affects the result of trade marketing For example, if you sell clothing, the right time is not in the early hours of the morning but in the evening or weekend The good time to make the trade marketing most effective is when the product is sold to the right customers who need it or the right way
Promotion and discounts are two of the top selling tactics in trade marketing But this is a double-edged sword, if there is no suitable discount / promotion plan, the business is likely to suffer losses or incomplete sales goals Incorporate promotion to promote trade marketing but do not forget the core purpose of the business is to make a profit
Retailers are direct distributors to consumers Trade marketing is only successful when company understands benefits, desires, nature of the retailer Stimulate buying and selling for retailer as below: for big companies, there are often trade terms to implement promotion; for small companies, sometimes also deploy promotion to increase sales, especially in the end of the year Based on that, trade marketing will have the appropriate way to promote interactive with customers through the retail channel system
Trade marketing focuses on reaching customers and optimizing point of sale so understanding the market is extremely important Understand what the market wants is to understand a part of customer psychology, understand what competitors do with their customers to develop a unique trade marketing policy that holds the buyer It is need to deep understand, know the reasons for the current market situation is a problem that all marketers are concerned about It is wasteful if consumers watch TV, read newspapers, find new products, but when go to store this products are not available.
Summary
Trade marketing is a chain of marketing activities that directly support sales at the point of sale Trade marketing will become a tool to nurture the distribution process, if the business knows how to implement it effectively The importance of distribution channels in trade marketing has been recognized by many companies and wants to apply, because if only focus on brand development but forget to care for the distribution channel, there will never be get good results for consumer-driven marketing strategies that enterprise are now adopting
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CONCLUSION AND RECOMMENDATION
Have the goals been reached?
On the basis of goals which set in Chapter 3, I want to back and review all with detail as follows:
- I need to restructure the marketing department, rebuild the duties and responsibilities of each person: I worked with the marketing manager to reestablish the function of the marketing department, rebuilding job descriptions for each staff to materialize the activities of the marketing department During the first month, we have completed this goal and staffs have been deployed in an independent and interactive manner
- Finding out the reason that marketing activities are less effective in developing dealer business at SeTech: From the beginning of my internship at the company, I have seen the fact that marketing activities at SeTech have not been developed, the marketing department has no specific plans and directions as well as has not actively looking for new marketing methods to promote business In particular, SeTech is completely lack of trade marketing activities to develop distribution channels - an active support to increase sales at the point of sale
- Analysis the causes and work out how to push sales target through dealer system by marketing activities: Finding out the lack of trade marketing activities at dealer stores which help to explain that is one of the main causes leading to the business of the dealer system is not good as expected In addition, I have made the plan for implementing trade marketing activities in detail as described in previous chapter to promote the business of the distribution chain However, due to the internship period only 4 months, I did not have enough time to monitor and evaluate the actual results after implementing trade marketing activities at SeTech
Review all the goals above, may can said that the most of goals have been achieved, only the third goal is halfway because I have only 4 months for internship, I cannot continue this job at SeTech to deploy activities about trade marketing to evaluate the fact result after implementing But with all that has been achieved, I am completely satisfied, even exceed my expectation Besides the knowledge about marketing, I know a lot of new knowledge which I have never known before I also studied the tools which support effectively marketing activities and find out how these tools operate
In addition, discussion, communication with the people of marketing department, sales department and other teams help me have more knowledge about management which will support me so much in the next time.
Suggestion and recommendation with SeTech
During my 4 months of internship at SeTech, I spend almost my time to working with the marketing department to restructure the function of marketing department and making the plan for implementation of trade marketing activities Without the methods I have used in the plan, I would also like to suggest some other measures, if SeTech applies it in the future I believe the business of distribution system will thrive beyond the BOD’s expectations
Distribution channel management is the responsibility of the sales department, but actually I see the relationship of sellers with the distributors is not really good, not encouraging them to focus on selling SeTech’s products instead of competitor To improve the efficiency of this activity, it is necessary to implement the following tasks:
2.1.1 Encourage members in the distribution system
The relationship between distribution channel members and suppliers is a two-way relationship The more intimate the relationship, the easier it is to reach the goal of the whole system To make the same, SeTech have to regularly research, find out the needs of intermediaries and direction to help solve
- Support about product lines: SeTech ensure to offer distributors with the best product line, likely sold with high sales, achieving high profits
- Support about advertising and promotion: An advertising campaign is the best way to appeal to customer because when they know about products, stores and then increase the opportunity for selling
- Support about management: SeTech should train for sales staff so that they have the ability to analyze and promote the market
In addition to the above measures, SeTech must also help distributors when they face competition from their competitors, the changing of the business environment in the market economy
SeTech have to let the distribution chain members to see that they have the support when they need to get involved in the supplier's distribution channel and that this help is ongoing during their time as a member of the channel SeTech must see that the intermediaries are their customers And then satisfying the needs and desires of intermediaries is essential
2.1.2 Evaluate the performance of distribution chain members
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For channel members, their performance evaluation is very important, periodic and general review to provide timely payoffs
Although there are many criteria for evaluating the activities of members, SeTech can use factors such as sales volume, inventory retention, competitiveness, attitude of the members in distribution system
- Sales activities: this is the most important and commonly standard for evaluating the performance of members Business performance is judged on the basis:
+ Current sales compared with sales in history
+ Sales of each member compared with total sales
+ Sales of each member compared with target
From the results of the comparison, SeTech will know which members are performing well, compared with the budget spent on distribution channel development, for each member of the distribution channel and from there have appropriate investment
- Inventory retention: Inventory is reflected in the sales contract between SeTech and distributor Determining a steady stock level is necessary to ensure the availability of goods in the market Inventory activity is expressed by:
+ What is the average inventory level of each distributor?
+ Which are the conditions and means of inventory?
In addition, SeTech must evaluate the performance of channel members based on their competitiveness
Through the assessment, SeTech going know which members are working effectively so that they have timely investment or disposals, creating the best channel structure to meet the market demand
At SeTech, during my internship, especially working with the marketing department and sales department, I found the employees in these departments and other departments to be disjointed and less interactive This certainly causes the business to be affected, and I suggest that measures be taken to improve the efficiency of teamwork
Creating a combination for a team is not easy at all The team is a collection of multiple personalities and methods to deal with work for achieving the same results However, not all team can work as well as they expected Even some of the teams are in serious conflict, and at the same time they bring in heavy psychological and ineffective for members
This is why creating a unified and effective working group I suggest SeTech need to think carefully and plan in detail the activities of the group before setting up a working group
Although in the process, there are many things which managers cannot control, such as individuality, but the methods below can help managers at SeTech create a favorable environment for team members to take full advantage of their ability to reach a common goal
The people have working method and perspective of effort to achieve the goals similarly will be high engaged when join teamwork So that, to set up team, manager should select members who have habit to working or usually offer methods to solve difficulties are the same
However, to create a team with many member is not easy, but manager can choose an employee to responsible for creative to combine with other employee who responsible for analysis Although, there are many different skills but members of team, they are highly responsible for completing the job on time and regularly updating the workflow
- Set up clear and specific goals for the team
You need to pay special attention to the goal which has given Because if members of team understand what they need to achieve, it is easier for them to find a common solution in the way they do it Differences in idea can easily be solved when team members sit together and set objectives which have given as orientated information
In other words, if the goal is not clear, each member will do the work in a particular way Then the members of team are inevitably in disagreement The connection between members becomes fragmented by the members who insist on their own way of thinking
- Encourage employee by competitive spirit
Concentration in the group will be most powerful when they have the same enemy They will work together to protect the reputation of their team This can create a friendly competitive spirit within the company but can also create a situation of mutual struggle to achieve the goal