group assignment module competitive planning and strategy final assignment report

Fas Link website*In 2025, Faslink aims to achieve a 20% growth in its business uniform product line whilefocusing on promoting sustainable and green fashion through social media channels

UNIVERSITY OF FINANCE – MARKETING FALCUTY OF BUSINES ADMINISTRATION

GROUP ASSIGNMENT MODULE: COMPETITIVE PLANNING AND STRATEGY

FINAL ASSIGNMENT REPORT

Group members: 1 Lê Hoàng Hồng Ân ID: 2121009734

2 Trần Thị Hương Thanh ID: 2121002861

3 Lê Ngọc Trúc Anh ID: 2121013587

4 Huỳnh Kỳ Tấn Phát ID: 2121011829

Friday, April 19, 2024

TABLE OF CONTENTS

Contents

I Executive summary 3

II Situational analysis / SWOT analysis 4

II.1 Macro 4

a Politics 4

b Economic: 5

c Social: 6

d Technology: 7

e Legal 8

f Environment: 9

II.2 Micro 9

a Competitive analysis 9

b Customer analysis 10

II.3 SWOT 11

III Marketing objectives 14

III.1 Specific 14

III.2 Measurable 14

III.3 Actionable 15

III.4 Relevant 15

III.5 Time-bound 15

IV Marketing Strategies 15

IV.1 Segmentation 15

IV.2 Target market 17

IV.3 Positioning statement 18

V Marketing– mix strategy 18

V.1 Product 18

a About ready-made uniforms: 19

b Differences in Faslink fabric material: 19

c Types of shirts and color palettes: 20

V.2 Price 21

a Average price of each type of shirt: 21

V.3 Place 22

V.4 Promotion 22

VI Action program 23

VII Budgets 24

VIII.Control 25

IX References: 26

I Executive summary

Fashion Connection Joint Stock Company (Faslink JSC.) is a leading provider of textilesolutions and services in Vietnam Established in 2008, Faslink has grown into a trustedpartner for businesses across the apparel industry.There are three key services FabricSourcing: Faslink offers a wide range of fabrics from reputable suppliers, ensuring highquality and consistency for their clients.Uniform Manufacturing: With expertise in design,production, and customization, Faslink caters to the uniform needs of various industries,including hospitality, healthcare, and corporate sectors.Full-Package Solutions (FOB):Faslink provides comprehensive FOB (Free on Board) services, handling everything fromfabric procurement to production, logistics, and export, streamlining the process for theirclients.( Fas Link website)*

In 2025, Faslink aims to achieve a 20% growth in its business uniform product line whilefocusing on promoting sustainable and green fashion through social media channels.Additionally, Faslink seeks to increase interactions on its product introduction page by25% Detail:

1 Faslink’s primary objective is to drive a 20% increase in sales for its businessuniform products This growth will be pursued through targeted marketing efforts,product enhancements, and customer-centric strategies

2 Recognizing the growing consumer demand for sustainable fashion, Faslink plans

to utilize its social media platforms to educate and inform customers aboutsustainable and green fashion practices By highlighting its commitment tosustainability, Faslink aims to attract environmentally-conscious consumers anddifferentiate itself in the market

3 Faslink’s product introduction page will undergo enhancements to improve userengagement and interaction Faslink aims to increase interactions on its mediachannels by 25% This will involve creating engaging multimedia content,fostering community engagement, and providing valuable information to users

As it works to become one of Vietnam’s leading producers of garments and textiles,Faslink is always looking to build a strategic marketing plan by analyzing the PESTLEmodel, SWOT model, Porter’s Five Forces, Marketing Strategies and finally is actionprograms and budget that affect its operations here To put it briefly, enterprises willthoroughly understand the business landscape and the trajectory of their future growth

II Situational analysis / SWOT analysis

II.1 Macro

a Politics

Trade pacts significantly contribute to Vietnam’s textile and garment sector, a pivotaldriver of its export-driven economy These agreements offer several advantages toVietnam’s textile industry:

Enhanced Market Reach and Reduced Tariffs:

Vietnam’s FTAs with major economies such as the United States, EU, Japan, and Canadaeliminate or substantially decrease tariffs on textile and garment exports This fosterscompetitiveness in these markets, enabling businesses to broaden their customer base andbolster sales

*Rules of Origin: Compliance with the “rules of origin” stipulated in FTAs can beintricate, mandating a minimum level of local content for products to qualify forpreferential tariffs

Competition: Increased market access may intensify competition from other producing nations

textile-Vietnam regulates its textile industry to balance growth with environmental and workerwell-being

Minimum wage hikes raise production costs, but improve worker livelihoods

● Comprehensive Labor Law: A general labor law establishes the foundation,outlining worker rights, obligations, working conditions, wages, social insurance,and safety regulations

● Specific Guidance Documents: Supplementary documents provide more specificguidance on implementing the labor law within the garment industry

● Working Regime: Regulations ensure fair working hours, breaks, holidays, andrest periods to promote a safe and healthy work environment

● Salary Regime: Clear guidelines govern basic salary, benefits, and other related aspects for garment workers

wage-● Labor Safety: Measures are in place to ensure occupational safety and health Thisincludes regulations on protective equipment, waste management, and workersafety training

● Social Insurance: Garment workers are entitled to social insurance benefits,including health insurance, unemployment insurance, and social security

● Worker Rights and Obligations: The law upholds workers’ rights to freedom ofassociation, petition, and joining labor unions, along with outlining their job-related obligations.

These regulations can be challenges, but also opportunities for Vietnamese textilecompanies to become more sustainable, ethical, and competitive in the globalmarket

b Economic:

The garment industry is an industry that has suffered many losses after the Covidpandemic Up to now, many businesses are still facing a shortage of orders Therefore theglobal economic situation is a major driver for the textile industry Here’s how it playsout:

Positive Impact of Strong Economy:

● Increased Consumer Spending: When the global economy thrives, consumers havemore disposable income This translates to increased spending on discretionaryitems like clothing and textiles, boosting demand for apparel and textile products

● Expansion of Markets: Economic growth can lead to the emergence of new middleclasses in developing countries These new markets present significantopportunities for textile exporters like Vietnam

● Rising Investment: A strong global economy encourages businesses to invest inexpanding their production capacities This can lead to increased demand fortextile raw materials and machinery, benefiting the entire industry

Challenges to keep in mind:

Economic Downturns: During global economic recessions, the textile industryoften faces substantial challenges Decreased consumer spending reduces demandfor apparel and textiles, resulting in production slowdowns and potential job cuts

Fluctuating Exchange Rates: Currency exchange rate fluctuations can impact thecompetitiveness of textile exports For example, a strong Vietnamese Dong mightincrease the price of Vietnamese textiles in foreign markets, potentially reducingdemand and competitiveness

- Currency fluctuations can be a double-edged sword for the textile industry,impacting both production costs and export competitiveness:

Impact on Costs:

● Imported Materials: The textile industry often relies on imported raw materials likecotton or synthetic fibers When the Vietnamese Dong weakens against thecurrency where these materials are purchased (e.g., US Dollar), the cost of importsincreases This can squeeze profit margins for Vietnamese textile companies.Impact on Exports:

● Competitiveness: A weaker Vietnamese Dong can make Vietnamese textileexports more affordable in foreign markets This can be a significant advantage,allowing Vietnamese businesses to undercut competitors whose currencies havestrengthened

● Uncertainty: However, constant fluctuations create uncertainty for businesses.Companies struggle to fix prices and plan production costs due to unpredictableexchange rate movements

● According to, baochinhphu.vn* the State Bank of Vietnam is actively supportingthe growth and development of small and medium-sized enterprises (SMEs),recognizing their significant contribution to the country’s economy By prioritizingcredit granting activities for SMEs and implementing various resolutions and lawsaimed at supporting their development, the government is creating a favorableenvironment for businesses to thrive The industry action programs developed bythe State Bank aim to address challenges faced by SMEs and to facilitate theirgrowth, ultimately contributing to overall economic development

c Social:

Social factors pertain to the prevailing beliefs and attitudes within a population, exertingsignificant influence on consumer behavior Currently, we are all aiming for a greenlifestyle, prioritizing environmentally friendly materials that are easy to recycle.Therefore, the garment industry in general and Faslink company in particular always try toimprove their understanding of green materials while still being consistent with currentfashion trends:

● Using organic cotton or recycled materials

● Implementing water-saving dyeing technologies

● Reducing waste generation during production

● Partnering with fair-trade certified suppliers

● Ensuring safe working conditions and fair wages for workers

Currently Fashion Trend:

● Demand for Specific Fabrics, Colors, and Styles: Shifting fashion trends dictatewhich fabrics (e.g., linen, silk), colors (e.g., neon green, classic black), and styles

(e.g., oversized blazers, skinny jeans) are in vogue Textile companies need to beadaptable and responsive to these changes to meet consumer demand.

● Seasonal Shifts: Fashion trends often have seasonal variations Textile businessesneed to anticipate upcoming trends and produce fabrics and garments accordingly

to stay relevant throughout the year

● Fast Fashion: The rise of fast fashion, with its emphasis on trendy, low-costclothing, has created a demand for readily available and affordable textiles Thisputs pressure on the industry to produce quickly and adapt to rapidly changingtrends

In conclusion, Consumer preferences: Growing awareness of sustainability and ethicalproduction practices can influence consumer purchasing decisions

d Technology:

Technological advancements are a constant force for disruption and innovation in thetextile industry Let’s delve into how some key technologies are impacting the

Vietnamese textile sector Technology is introduced into production stages to save labor

costs and increase work efficiency

Thanks to the development of current technology, more and more Vietnamese people areusing electronic devices to access the Internet, creating extremely favorable conditions forFaslink to promote its modern technology to customers via Facebook, Youtube,News, And Faslink website updates the latest news about modern machinery andmaterials technology that the company has updated to apply to its products For example:fabric made from bamboo, fabric made from coffee grounds Both are Vietnameseagricultural products, thereby not only solving the outstanding problem of waste treatment

in the agricultural industry but also providing customers with quality fashion products.(Fas Link website)

Finally, Internet Penetration and E-commerce:

• Direct-to-Consumer (D2C) Sales: Online platforms allow textile companies to bypasstraditional retail channels and sell directly to consumers This reduces costs and allows forgreater brand control

• Global Market Reach: E-commerce opens doors to a wider customer base, enablingVietnamese textile companies to reach international markets more easily It’s impressive

to see the rapid growth of Vietnam’s B2C e-commerce sector over the past few years

“From reaching 8 billion USD in 2018 to surpassing the 20 billion USD mark in 2023, it’sclear that e-commerce has become a significant contributor to the country’s retail saleslandscape The increasing revenue figures reflect not only the growing consumer demand

for online shopping but also the maturation and expansion of the e-commerce ecosystemwithin Vietnam As B2C e-commerce revenue continues to account for a larger proportion

of total retail sales, it underscores the importance of digital platforms in shaping the retailindustry’s future in Vietnam” *

• Data-Driven Decision Making: E-commerce platforms generate valuable data oncustomer preferences and buying habits This data can be used to inform productdevelopment, marketing strategies, and inventory management

e Legal

The Vietnamese textile industry operates within a framework of legal regulations that aim

to balance economic growth with environmental protection, worker safety, and consumerwell-being

First, environmental regulations include wastewater treatment during operation andproduction before being discharged into the environment

• Wastewater Treatment: Factories must have wastewater treatment systems to minimizewater pollution from dyes and chemicals used in the production process

• Waste Management: Companies need effective solutions to manage, process, anddispose of textile waste safely and legally, potentially involving recycling or properdisposal of hazardous materials

• Sustainable Resource Use: Businesses are encouraged to adopt practices that minimizewaste and resource consumption, such as using recycled materials or organic cotton.Second, Labor Law and Guiding Documents:

• General Labor Law: This law establishes the foundation for worker rights andobligations, working hours, wages, social insurance, and safety regulations

• Specific Guidance Documents: Supplementary documents provide more specific details

on implementing the labor law within the garment industry These may address workinghours, breaks, holidays, salary and benefits, and labor safety measures

• Social Insurance: Garment workers are entitled to social insurance benefits, includinghealth insurance, unemployment insurance, and social security

Finally, Product Safety Standards:

• Product Labeling: Clear and accurate labeling of clothing content, care instructions, andcountry of origin ensures transparency for consumers and compliance with regulations

• Quality Standards: Products must meet specific quality standards to be sold domesticallyand exported This ensures a certain level of quality for consumers and maintainsVietnam’s reputation as a reliable textile producer

● Opportunities for Businesses: Proactive compliance can lead to benefits likereduced environmental impact, improved brand reputation, and potentially lowerlong-term operational costs through resource efficiency.

● Government Support: The Vietnamese government often provides resources andguidance to textile businesses to help them comply with environmental and otherregulations

At the same time, Faslink makes commitments to sustainable fashion Say no tofast fashion Committed to not causing environmental impact during theproduction process

II.2 Micro

a Competitive analysis

1 Threat of New Entrants: Entering the market for textile production in Vietnam may

seem enticing due to its established industry and skilled labor force However, potentialnewcomers could face hurdles such as navigating stringent government regulationsconcerning labor and environmental standards, which might increase their operationalcosts Additionally, breaking into the market could prove challenging due to the strongbrand loyalty enjoyed by established companies like Faslink

2 Bargaining Power of Suppliers: The concentration of suppliers in the raw material

market, particularly fabric, could give them leverage in negotiating prices with Faslink.However, the availability of alternative suppliers and the importance of Fas link as amajor customer may mitigate this power imbalance to some extent

3 Bargaining Power of Buyers: Large retailers exert significant influence over Faslink’s

pricing strategy if they constitute a considerable portion of its customer base Moreover,buyers’ ability to switch to competitors easily and their sensitivity to price fluctuationsamplify their bargaining power, underscoring the importance of competitive pricingstrategies

4 Threat of Substitutes: The emergence of synthetic fabrics and the thriving

second-hand clothing market pose considerable threats to Faslink’s product demand This isparticularly relevant if Faslink focuses primarily on natural materials or targets cost-conscious consumers, highlighting the need for diversification and adaptation to evolvingmarket trends

5 Competitive Rivalry: Faslink’s competitive landscape is directly influenced by the

number and strength of its rivals within Vietnam’s garment industry To stand out, Faslinkmust emphasize product differentiation, sustainability practices, and brand recognition.Additionally, optimizing cost structures and operational efficiency can enhance itscompetitiveness amidst industry rivals

b Customer analysis

Who:

● The target customer likely falls into two main categories:

o Eco-conscious consumers: These individuals prioritize sustainable andethical clothing production They might be interested in organic cotton orrecycled materials

o Quality and innovation seekers: These customers value high-qualitygarments and appreciate the use of modern technology in production

to the seasons of the year

Why:

● Value Alignment: Customers who prioritize sustainability are likely drawn to thecompany’s commitment to eco-friendly practices.

● Quality and Design: Customers seeking high-quality clothing may be drawn to theuse of modern technology for innovation in design or functionality

● Brand Trust: A positive brand reputation built on quality and sustainability can be

a key motivator

Where:

● Retail Stores: Physical stores allowing customers to try on clothes before buying

● Online Stores: E-commerce platforms offering wider product selection andpotentially convenience such as Shopee, Tiki, Tik Tok Shop,Amazon Throughe-commerce platforms, it will be easier for customers to access and buy

● Wholesale Distributors: Faslink may sell to other businesses that then sell theclothing to consumers

II.3 SWOT

-Garment industry equipment has been

innovated and modernized, creating

conditions for upgrading CGT, especially

processes and products

-Vietnamese garment products penetrate

many markets, expanding access to

-Weak in raw material autonomy: TheGarment industry must import rawmaterials, making businesses dependent andunable to enjoy preferential tariffs from freetrade agreements

-Low labor productivity: Although labor

-The Garment industry has built close

relationships with global customers,

ensuring stability for exports

-Cheap labor advantage is an important

competitive factor

-Stable socio-political and macroeconomic

environment attracts investment

-The tradition of the Garment industry

strengthens domestic economic

relationships and increases attraction

-Vietnam’s favorable trade location

facilitates the import and export of Garment

products

-Developing supporting industries creates

conditions to produce raw materials,

especially fabric, to serve the Garment

industry

costs are low, low labor productivity causesproduction costs to increase, makingVietnamese garments uncompetitive onprice

-Small business scale: Garment businessesare often small and medium-sized, have lowcapital potential, and are limited ininnovative technology and equipment

-Monotonous products: Most of Vietnam’sgarments belong to the simple, populargroup, are not diverse in types, and cannotmeet the increasingly sophisticated needs ofconsumers

-Accessing the market through globalbuyers: The Garment industry has difficultyaccessing retailers directly, and is weak inthe stages of Marketing, Distribution andBranding

-Shifting production from China to

Vietnam: With China shifting away from

polluting industries like garments,

Vietnam’s cheap labor and young workforce

make it an attractive production destination

-Export opportunities: Vietnam’s strategic

location and access to raw materials present

opportunities for garment exports to

-Constraints from trade agreements:Vietnam as well as its competitors benefitfrom preferential trade agreements but mustalso comply with strict regulations on originand labor standards

-Increased global competition:Strengthening supply chains andrationalizing sourcing options can

emerging markets like China, India, and

Russia

-Trade globalization: The process of

globalization and trade liberalization opens

and strengthens the market for Vietnamese

garments, especially through free trade

agreements

-Technology development: Ongoing

advancements in technology are boosting

productivity and quality in garment

manufacturing, driving improvements

across the production process

-Increasing consumption demand: World

demand for garments is increasing, and at

the same time, Vietnam’s domestic market

is also growing, creating favorable

conditions for the garment industry

disadvantage small businesses in everycountry, while Vietnam’s garment industrystill relies heavily on cheap labor

-Labor and investment costs: Labor costs inVietnam are increasing, which may causeinvestors to shift to other countries withlower costs, and the risk of losing jobs inthe industry is also increasing

-Industrial Revolution 4.0: New technologycan change the labor structure and thegarment industry may face the risk of losingjobs, as well as considering bringingfactories back to their country

-Risks to businesses: The rapid change inglobal buyers and risks from factors such aspolitics, society, and the businessenvironment can cause sudden loss ofcustomers

SWOT analysis shows that the Vietnamese Garment industry in general and FaslinkFashion Connection Joint Stock Company in particular have many intertwined strengths,weaknesses, opportunities and challenges Therefore, to successfully upgrade the globalCGT of Vietnam’s garments to achieve the socio-economic goals set for the industry, it isnecessary to have a “mixed” strategy that both promotes strengths, overcome weaknesses,and seize opportunities to overcome challenges

During the process of working and surveying

the market, Ms Xuan recognizes the global

shift towards sustainable fashion and the

abundance of eco-friendly fibers in the textile

market Impressed by health-conscious and