Improving the competitiveness by marketing and sale personnel management strategy (A case of protective and marine coating products in Sigma Yung Chi Coating C.,ltd)

TRƯỜNG ĐẠI HỌC MỞ TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB3 Lê c Th ng Improving the competitiveness by marketing and sale personnel management strategy (A case of protective and marine coating products in Sigma Yung Chi Coatings Co., Ltd) MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Ho Chi Minh City (2011) COMMITMENT This dissertation is study of me, which is made on the basic of theoretical studies, survey research of the real situation under the guidance of Professor: PhD Hoang Thi Phuong Thao The data, figure and questionnaire results of the thesis is true The specified marketing strategy, the competitive improvement strategy launched from a case study of protective and marine coating products in Sigma Yung Chi Coatings Co., Ltd and is submitted by Dissertation evaluation association of economic Master Once more, I would affirm the truthfulness of my promise ACKNOWLEDGEMENTS On completing this graduation paper, I would like to send my deepest and most sincere gratitude to many people for their invaluable help during the conduct of the research First and foremost, I would like to send my heartfelt gratitude towards my supervisor PhD Hoang Thi Phuong Thao for her constructive and timely feedbacks as well as her constant and unfailing support which were decisive factors to the completion of the study Additionally, I would like to show my deepest gratitude towards my colleagues as well the Mantor Mr Nguyen Duy Chinh, Regional Sales Manager of Sigma Yung Chi Coatings Co., Ldt for his valuable information, advice and guide in the methodology of the research Furthermore, I would also like to say the sincerest thanks to my classmates On a personal note, I express my truly gratitude to my family and friends who emotionally and spiritually comforted me through the challenging time of conducting the research The study could not have been completed without their continual encouragement 58 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Background 1.2 Rational of study 1.2.1 Asia industrial coating market overview 1.2.2 Major markets in Asia 1.2.3 Vietnam industrial coating market overview 1.2.3.1 General information 1.2.3.2 Some well-know industrial paint companies in Vietnam market 1.3 Research problem and research objective 1.3.1 Research Problem 1.3.2 Research Objective 1.4 Methodology of study 1.5 Structure of study CHAPTER 2: LITERATURE REVIEW 10 2.1 Concept of competition and competitive advantage 10 2.1.1 Competition 10 2.1.2 Competitiveness 10 2.1.3 Competitive advantage 10 2.2 M Porter model analysis 11 2.3 SWOT model analysis 13 2.4 Factor effecting to competitiveness of enterprise: 14 2.4.1 Macro factors 14 2.4.2 Micro- factors 16 2.5 Marketing mixed and HR strategy to improve the competitiveness 18 2.5.1 Marketing mix 18 2.5.2 HR strategies 19 2.6 Chapter Summary 19 CHAPTER 3: ANALYSIS OF THE COMPETITIVE ENVIRONMENT AND COMPETITIVENESS ABILITY OF SIGMA YUNG CHI COATINGS CO., LTD 20 59 3.1 General introduction about PPG Corporation and Sigma Yung Chi Coatings Co., Ltd 20 3.1.1 PPG Corporation 20 3.1.2 Sigma Yung Chi Coatings Company Limited 21 3.2 Competitive business environment analysis of Sigma Yung Chi Coatings Co., Ltd-Protective and Marine Coating products 25 3.2.1 Macro environment 25 3.2.2 Micro environment 28 3.2.3 Porter competitive Analysis 29 3.2.4 Products 31 3.2.5 Prices 32 3.2.6 Sales personnel 33 3.2.7 General comparison of Sigma Yung Chi with other competitors 35 3.3 SWOT analysis of the competitiveness advantage of Sigma Yung Chi 38 3.4 Conclusion 40 CHAPTER 4: STRATEGY OF IMPROVEMENT OF COMPETITIVENESS OF PROTECTIVE AND MARINE PRODUCTS- FOCUS ON MAKETING MIX AND SALE PERSONNEL 41 4.1 The company recommended development objectives 41 4.1.1 Sales and marketing objectives 41 4.1.2 Personnel management objectives 41 4.2 Strategic solution of marketing mix and sales personnel for the company to be able to achieve these objectives 42 4.2.1 Marketing mix strategy recommendation 42 4.2.1.1 Product 42 4.2.1.2 Price 42 4.2.1.3 Distribution 43 4.2.1.4 Promotion 46 4.2.2 Personnel strategy 46 4.2.2.1 Technical and sales staff recruitment process 46 4.2.2.2 Technical staff training process 47 4.2.2.3 Motivation of technical and sales staff in the firms 48 60 4.2.2.4 Role of line manager in training and developing the people in the organization 50 4.2.2.5 Being the Best Team in the marine and protective segments in comparison with competitors 51 4.2.2.6 Customer relationship 52 4.3 Conclusion 53 REFERENCE LISTS 55 APPENDIX 57 ABBREVIATIONS ACC : Asia Coating Congress DD : Dry Docking EMEA : Europe, Middle East, and Africa EPC : Engineering Procurement and Construction FDI : Foreign Direct Investment FROSIO : The Norwegian Professional Council for Education and Certification of Inspectors GDP : Gross Domestic Product ISO : International Standard Organization MC : Marine coating NACE : The National Association of Corrosion Engineers NB : New Building OBP : Onboard Program OEM : Original Equipment Manufacturer PC : Protective coating PFP : Passive fire protection PPG : Pittsburgh Plate Glass Corporation PTSC : Petro Vietnam Technical Service Corporation PVN : Petro Vietnam Corporation PVC : Petro Viet Nam Construction Corporation ROC : Return On Capital Sigma YC : Sigma Yung Chi Coatings SOEs : State-owned enterprises SS : Sea Stock SSPC : The Society for Protective Coatings SWOT : Strengths, Weaknesses, Opportunities and Threats TSR : Technical Service Vinashin : Vietnam Shipbuilding Industry Corporation VPIA : Viet Nam Paint and Printing Ink Association WBT : Water Ballast Tank 58 LIST OF FIGURE Figure 1: Five forces model of M.Porter 11 Figure 2: The SWOT Matrix 13 Figure 3: Vietnam GDP growth rate 26 Figure 4: FDI Commitment and Implementation 27 Figure 5: Competitive price in the market of industrial products of Sigma 33 Figure 6: Factors to improve technical staff’s skills and knowledge 34 Figure 7: Limited distribution channel 37 Figure 8: Recommended distribution network of Sigma Yung Chi in Vietnam 45 58 LIST OF TABLE Table 1: Market size of countries in 2009 and 2014 Table 2: General Information of Survey feedback Table 3: The tables of comparison among coating company in term of market share 23 Table 4: Comparison of the market shares in field of protective coatings from 2009 to 2012 23 Table 5: Sales of Marine and Protective Coatings 25 Table 6: Main PVN’s projects from 2009-2020 29 Table 7: Frequency of product usage 32 Table 8: Competitors and SWOT 36 Table 9: The drawback of Sigma Yung Chi Coatings Co., Ltd in Vietnam Market 36 Table 10: Promotion activity 38 Table 11: SWOT of Sigma Yung Chi Coatings 39 Table 12: Recommended strategy on product and price 43 Table 13: Summary of sales and technical staff motivation strategy 49 Table 14: OBP recommended strategy 53 1- CORPORATE INFORMATION A World Leader in Coatings Corporate Information SIGMA YUNG CHI COATINGS CO LTD FACTORY • ADDRESS • TEL, FAX No : Lot 219, AMATA ROAD, LONG BINH IZ, BIEN HOA CITY, DONG NAI PROVINCE : + 84 613 936121-3 Fax: + 84 613 936124 COMMERCIAL OFFICE • ADDRESS • • TEL, FAX No WEDSITE : 17th FIDECO Tower, Ham Nghi Street, DISTRICT 1, HOCHIMINH CITY : + 84 8275786-7 Fax: + 84 8236784 : http:// www.ppgpmc.com Sigma Yung Chi Coatings – Vietnam • Sigma Yung Chi Coatings - Vietnam is a division of the PPG Group, US It is a worldwide in Marine, Protective, Architectural, Automobile, Packaging coatings… • Sigma Yung Chi Coatings Co., Ltd officially commenced operations in June 2006 through a fixed assets acquisition of an ongoing paints manufacturing plant in the Industrial Area Bien Hoa – Dong Nai • The plant has the total capacity 20 millions tons per annum, Sigma Yung Chi Plant’s capacity is millions tons per annum, and has the capability to produce Marine, Protective Marketing under the renewed brand names of “Sigma Yung Chi Coatings” for Marine, Protective Coatings to cater for both domestic and overseas markets • Our Vietnamese operation is managed and controlled by an experienced and qualified of the Group (General Manager, Finance, Quality Control and Technical Service) with high dedication to our customers • Our Taiwanese partner, Yung Chi Paints, is our licensee in Taiwan since 1996 (First Paints Manufacturer in Taiwan) and give to our join – venture all their Asian Expertise SIGMA COATINGS FACTORY IN AMSTERDAM NETHERLAND YUNG CHI PAINTS & VANISH MFG, TAIWAN SIGMA YUNG CHI COATINGS CO., LTD – AMATA, DONGNAI, VIETNAM Sigma Glide Application – Hyundai Vinashin MARINE COATINGS PICTURES Hyundai Vinashin Shipyard, Vietnam Sigma Glide Application-Hyundai Vinashin Sigma Glide Application in Vietnam New Building – Halong Shipyard Sigma Glide Application – Hyundai Vinashin Hyundai Vinashin Shipyard Hong Ha Shipyard 8,500 Dwt Floating Dock – Strategic Marine Pha Rung Ship Yard Thinh Long Shipyard Nam Trieu Shipyard 4- ORGANIZATION CHART ORGANIZATION CHART SIGMA YUNG CHI COATINGS CO GENERAL DIRECTOR BUSINESS DEVELPMENT MANAGER SALES MANAGER TECHNICAL MANAGER QA/QC MANAGER PRODUCTION & LOGISTIC MANAGER ADMIN & FINANCE CONTROLLER 5- WORLDWIDE NETWORK Global operations Network Manufacturing and logistics Production locations Europe - Belgium, Deurne, - Czech Republic, Brasy - France, Ruitz, Morueil, Genlis - Germany, Bochum - Hungary, Budapest - Netherlands, Amsterdam, Uithoorn, Den Bosch, Veenendaal - Poland, Wroclaw, Cieszyn - Portugal, Cacem - Slovakia, Dolny Kubin - Spain, Madrid - United Kingdom, Birstall, Morley Central America - French Guyana, Cayenne - Guadeloupe, Les Abymes - Martinique, Fort de France Middle East - Abu Dhabi, Abu Dhabi - Egypt, Cairo - Iran, Ghesm Island - Saudi Arabia, Damman - United Arab Emirates, Asia/Pacific - China, Malou, Kunshan, Shanghai - India, Visakpathnam - Indonesia, Jakarta - Malaysia, Kuala Lumpur - New Caledonia, Nouema - South Korea, Ulsan - VietNam Africa - Cameroon, Douala - Gabon, Libreville - Ivory Coast, Abidjan - Reunion Island, Saint-Dennis - Senegal, Dakar - South Africa, Alberton - Tchad, “Tchadipaints” - Tunisia, Feriana ... results of the thesis is true The specified marketing strategy, the competitive improvement strategy launched from a case study of protective and marine coating products in Sigma Yung Chi Coatings... tools and machines, a wide range of coatings have come into beings in the world market in general and in Vietnam in particular Being aware of potential in segment of protective and marine coatings,... Chi Coatings staffs 3.1.2.1 Market Share After a period of penetrating into the market of Vietnam, the product of protective and marine coatings by Sigma Yung Chi Coatings gradually gains the