master internship report implementation of the trade marketing activities at setech co ltd

 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

UNIVERSITE DE NICE SOPHIA ANTIPOLIS

Institut d’Administration des Entreprises

THANG LONG UNIVERSITY

Hanoi, Vietnam

MASTER INTERNSHIP REPORT:

IMPLEMENTATION OF THE TRADE MARKETING ACTIVITIES AT SETECH CO., LTD

Class : Master Affaires et Management International

I also would like to express my special thanks to Assoc.Pr Dao Ngoc Tien, my supervisor, who gives me guidance, suggestion and assistance during my internship report

Furthermore, I would like to express my deep appreciation to the experts who have gave me lecturers and knowledge that I applied during my internship, especially thanks to the enthusiastic support of staffs of The International Relations Department during the MBA program

I wish to express my special gratitude to my parents, my husband and classmates who always support me in the process studying and writing the internship report

Finally, all possible mistake in this report belong the author I look forward to receiving the sincere advice of the Professor in the Nice Sophia Antipolis University

 Chapter 2: SeTech Company Structure and Organization Chart

This chapter provides an overview of the structure of corporate organization  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 at SeTech

This chapter deals with developing a plan for implementing trade marketing activities at SeTech with the detail content of plan

 Chapter 5: Conclusion

Evaluate the goals achieved and some measures to improve business performance at SeTech

TABLE OF CONTENTS

INTRODUCTION 1

CHAPTER 1: SETECH BACKGROUND 2

1 An introduction of SeTech – history of establishment and development 2

1.1 General information: 2

1.2 History of establishment and development: 2

2 Main business fields 3

2.1 Distribution business: 3

2.2 International exhibition and seminar: 3

2.3 Develop high-tech agriculture 3

3 Basic financial data 4

CHAPTER 2: SETECH COMPANY STRUCTURE AND ORGANIZATION CHART 7 1 SeTech Company Structure 7

2 SWOT Analysis of SeTech 8

2.1 Strengths and Weakness 8

2.2 Opportunities and Threats 9

3 Intern’s position 9

CHAPTER 3: THE MISSION: ASSIGNED TASK AND GOALS 11

1 My tasks at SeTech 11

2 The link between the subject matter and my mission in SeTech 11

3 The goal I was asked to achieve 12

1 Highlight of the trade marketing 15

1.1 What is the trade marketing? 15

1.2 The tasks of trade marketing 15

1.3 The important of trade marketing 16

1.4 Decoding Trade Marketing 16

2 The structure and duties of trade marketing team at SeTech 17

3 How to implement the trade marketing activities at SeTech 20

3.2 Recruitment staff: 20

3.3 Training: 20

3.4 Perform the trade marketing activities: 21

3.5 Estimated budget of implementing trade marketing activities each year 23

4 Some note when implementing trade marketing activities 23

5 Summary 25

CHAPTER 5: CONCLUSION AND RECOMMENDATION 26

1 Have the goals been reached? 26

2 Suggestion and recommendation with SeTech 27

2.1 Improve distribution channel management: 27

2.2 Improve teamwork efficiency: 28

REFERENCES 31

LIST OF TABLES, DIAGRAMS 32

LIST OF SYMBOLS 33

INTRODUCTION

Today, consumers have more power than ever, they can control where products, services as well as when, how, it means they will have more choices, they are rarely loyal to a particular brand Trade marketing was born to support increase in wholesale demand for its products at distributors, retailers, not consumers Currently, 76% of customer purchase decisions are made at points of sales This new trend has led to the need for marketers to maintain relationships with retailers From there, make sure the retailer will promote the company's products against competitors And in the fiercely competitive market now, trade marketing has shown its importance when it comes up with many measures to help manufacturers win at the point of sale

SeTech was founded in 2011 with main fields as supplying and installing security equipment, telecommunication electronics, organize international exhibitions and seminars, investment consultancy and technology transfer They focus on distribution business as SeTech's biggest revenue earner, with over 100 dealers nationwide, SeTech is looking forward to further expanding this field to expand market share and promote revenue from dealer system To learn about the shortcomings of marketing in promoting the development of the agent system, I selected the subject "Implementation of the trade marketing activities at SeTech Co., Ltd" for my internship report to offering stimulus for business at point of sale and increase sales from the distribution system as requested from CEO of SeTech

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CHAPTER 1: SETECH BACKGROUND

1 An introduction of SeTech – history of establishment and development 1.1 General information:

- 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 - Authorized capital: 9.900.000.000 VND

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

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

2 Main business fields

With the goal of becoming a leader in technology and service development, SeTech is currently operating in the following areas:

2.1 Distribution business:

 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

2.2 International exhibition and seminar:

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 2012

 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 2.3 Develop high-tech agriculture

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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 3 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

A A –SHORT-TERM ASSETS 92,661,294,319 29,931,855,261 I I Cash and cash equivalents 10,993,030,048 5,753,287,078 III II Short-term investment - -

III III Short-term receivables 43,746,828,686 3,411,336,346 1 1 Accounts receivable 33,963,890,686 1,158,502,400 2 2 Prepayments to suppliers 9,782,938,000 2,252,833,946 3 3 Other receivables - -

IV IV Inventories 37,485,801,034 20,543,122,523 1 1.Inventories 37,485,801,034 20,543,122,523 V V Other current assets 435,634,551 224,109,314 1 1 Deductible value added tax 435,634,551 224,109,314 2 2 Other current asset - -

B B –LONG-TERM ASSETS 2,144,824,000 1,713,021,519 I I Fixed assets - -

III III Long-term investment - - IV IV Other long-term assets 2,144,824,000 1,713,021,519 1 1 Other long-term assets 2,144,824,000 1,713,021,519

TOTAL ASSETS 94,806,118,319 31,644,876,780

A A - LIABILITIES 43,677,435,428 6,030,450,250 I I Short-term liabilities 43,677,435,428 6,030,450,250 1 1 Short-term loans and debts 19,051,296,000 5,759,688,000 2 2 Seller short-term liabilities 21,674,779,335 - 3 3 Advances from customers 2,199,296,000 - 4 4 Taxes payable to State

5 5 Other short-term liabilities 110,000,000 47,850,000 II II Long-term liabilities - - B B - EQUITY 51,128,682,891 25,614,426,530 I I Owners’ equity 51,128,682,891 25,614,426,530 1 1 Contributed capital 32,076,000,000 20,130,000,000 2 2 Unappropriated profits 19,052,682,891 5,484,426,530 TOTAL RESOURCES 94,806,118,319 31,644,876,780

Table 1.2 Income Statement dated December 31, 2016

IMCOME STATEMENT DECEMBER 31, 2016

1 Sales 218,957,656,401 123,482,653,745 2 Less sales - - 3 Net sales 218,957,656,401 123,482,653,745 4 Cost of goods sold 165,975,863,680 90,218,697,602

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5 Gross profit 52,981,792,721 33,263,956,143 6 Profit from financial

activities 23,134,672 3,303,635,038 7 Expenses for financial

activities 951,932,663 458,788,000 - Include: Interest expense 951,932,663 458,788,000 8 General and administrative

expenses 35,092,674,276 26,026,132,066 9 Operating Income 16,960,320,454 10,082,671,115 10 Other profit - - 11 Other Expenses - - 12 Other Income - - 13 Income before tax 16,960,320,454 10,082,671,115 14 Income tax expenses 3,392,064,093 2,016,534,223 15 Net Income 13,568,256,361 8,066,136,892 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

Explanation: + Management relation:

+ Impact of Intern:

CHAPTER 2: SETECH COMPANY STRUCTURE AND ORGANIZATION CHART

1 SeTech Company Structure

Diagram 1.1 Structure of SeTech

The functions and duties of each division at SeTech are described as follows:

- General Director (CEO): is the manager of the day-to-day business operations of the company and is responsible to the Members' Council for the deployment of her rights and duties, including: Council Members; decide on issues relating to the day-to-day business operations of the company; organizing the implementation of business plans and investment plans of the company; issuance of internal management regulations of the company; appointment, dismissal of management positions in the company; signing contracts on behalf

Assistant general director

Sales Manager

Project

Leader Distribution Leader

Vice Director

Marketing Manager

Financial

Manager Technical Manager General Director

Chief Accountan

HR Leader

Warehouse Leader

International relation Manager

Software Leader

Solution Leader

Installation Leader

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- Vice Director: is the person who assists the general director in each part of work assigned by general director and is responsible to the general director for his decisions The vice director shall be entitled to replace the director in handling the work under the authorization of general director and shall report the work done to general director

- Sale Manager: is the person who advises the board of directors to develop business plans, develop and implement business plans to meet the company's sales targets Sales Manager is also responsible for managing the sales department and coordinating with other departments to carry out sales promotion activities

- Marketing Manager: is the person who sets the marketing strategy, builds and implements marketing activities to promote the business Closely linked with the sales department to implement sales promotion activities

- Financial Manager: is responsible for analysing the financial situation of the enterprise in order to identify the strengths and weaknesses of the enterprise; Planning the financial strategy of the business; Evaluate the program of operations of the business in terms of finance; Make budget contingency plans in the appropriate forms to meet unexpected funding needs; Maintaining liquidity of enterprises and ensuring sufficient financial resources for enterprises; Develop a reasonable profit distribution policy; Ensure that the assets of the Company are controlled and used appropriately and profitably; Responsible for managing and directing the activities of Chief Accountant, Accounting Department, Human Resources Department, Warehouse Department to bring about optimal performance

- Technical Manager: is responsible for manage the process of software, solution and installation to meet request of sales department as well as meet with the developed trend of information technology in the world

- International relation manager: On behalf of the company dealing with foreign partners on all activities, especially in import goods from all partners in the world

Young business and management activities are not good, leading to many activities have not been invested

large projects as well as development of distribution chain in Vietnam

effectively to promote business development

Have a good international relationship so that become distributors for almost famous brands about safety and security in the world

Dependent on foreign partners too much and new investment activities have not brought efficiency

Labour is young, dynamic and have high levels of qualification

Young workers lack the management skills that lead to affected management Strong financial resource, especially with

the sales growth rate as 2016 has brought strong financial resources for future investment activities

Marketing activities have not well invested, lack completely the trade marketing activities at stores of dealers

2.2 Opportunities and Threats

Security equipment market in Vietnam is in the development stage, so the growth potential will continue to increase sharply in the coming time

Facing a lot of competition from large international corporations are planning to invade Vietnam market

Good international relationship will help to expand some new business opportunities

Breaking exclusive distributor will lose many competitive advantages The new investment in high-tech

agriculture is meeting the requirements of Vietnam's agricultural development so high probability will succeed in the future

High-tech agriculture is being invested by many large corporations in the country and will face many challenges in production and business

Vietnam is opening up and integrating into the international economy, attracting large foreign investment, and the opportunity to organize international trade and events in Vietnam to boost business

Increasing competition with both of domestic and foreign companies

3 Intern’s position

- Develop the trade marketing

- Provide training, guidance for marketing staff

- Cooperate with marketing manager implement plans which approved by CEO

CHAPTER 3: THE MISSION: ASSIGNED TASK AND GOALS

During the internship, I have acted as assistant of CEO at SeTech My tasks and responsibilities are to review all existing marketing activities, on that basic to re-establishing functions, tasks and activities for marketing department in the coming time Especially need to find the lack of marketing activities to develop business in the dealer system That is for finding out SeTech has almost never implemented the trade marketing - a modern marketing trend being interested in the recent time to grow the business at the point of sale This matter will be developed and recommend in the next chapters

1 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

2 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

3 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

4 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

5 Theoretical knowledge acquired during my academic year in Master AMI that is applicable during my internship

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

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