Solutions to develop Sweet fashion products till 2010

1 MINISTRY OF EDUCATION & TRAINING HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE’ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MBMM PROGRAM NGUYEN THI HONG MAI Solutions to develop Sweet fashion products till 2010 FINAL PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT TUTOR: Prof.PhD   P Ho Chi Minh City 2007 2 COMMITMENT I assure this is a project of mine. All data, results mentioned in project are righteous NGUYEN THI HONG MAI 3 ACKNOWLEDGEMENTS I am grateful for being with MBMM program. I would like to thank Solvay University and Ho chi minh Open University co-organizers this program and their professors who gave me updated knowledge and experiences on modern marketing in practice. I would like to thank professor Nguyen Thi Lien Diep – my tutor who enthusiastically helps me in orientation, finding the objectives and instructs me in project realization process. I would like to thank Ms Do Thi To Nga – S-fashion General manager for her direction and experimental advices. Many other colleagues and friends made significant contributions on this project. Extra special thanks are due to preparers of ancillary materials. I would also like to thank the good people who spent time on answering my questionnaire. Their contributions have particular role in success of this project. Last but not least, I would like to thank my family and friends for sticking by me during this project. Hochiminh City May/2007 Nguyen Thi Hong Mai 4 TUTOR’S COMMENTS Ms. Nguyen Thi Hong Mai has proved her business analysis capacity in scrutinizing the status-quo of Sweet brand products in the market. Objective assessments on environmental impacts on the products, together with particular collection of customer information are crucial for a business to see the solutions to develop its products and widen the market share. Ms. Hong Mai was successful to do so. Feasible solutions, therefore, have been recommended by her to build up strategy for Sweet branding. With neat and concise structure, diversified data inputs and in-depth analyses, the project is graded 36/40. Ms. Hong Mai is recommended to defend her Final Project of “Solutions to develop Sweet Fashion Products till 2010” before the Committee. HCMC, May 21, 2007 Prof. PhD. Nguyen Thi Lien Diep 5 MENTOR’S COMMENTS S-Fashion Corporation appreciates what Ms. Nguyen Thi Hong Mai is contributing in the strategy building of the company till 2010. As a start-up company, it is a rare opportunity that S-fashion receives such in-depth analysis of its products status in the market. The possible environmental impacts on the products are also pointed out, which helps the company see its strengths and weaknesses. At the same time, very effective solutions have been suggested by Ms. Mai that helps our company develop our products in the market. We wish her all the best and success in her study and career. Ho Chi Minh City, May 23, 2007 Do Thi To Nga 6 CONTENT EXECUTIVE SUMMARY INTRODUTION 1 CHAPTER 1: S-FASHION 3 1.1 Establishment 3 1.2 Business Scope 3 1.3 Legal capital 3 1.4 Organization 3 1.5 Marketing mix 4 1.5.1 Product 4 1.5.1.1 Sorts 4 1.5.1.2 Style 4 1.5.1.3 Designs 4 1.5.2 Price 5 1.5.3 Promotion 5 1.5.4 Distribution 5 1.6 Production 5 1.7 R&D 5 1.8 Customers 6 1.9 P&L the last 8 months 6 1.10 The Strengths and weaknesses of S-Fashion 6 CHAPTER 2: 7 2.1. The Macro Environments 7 7 2.1.1. Demand and demand trends 7 2.1.2. Economic environments 7 2.1.3. Political environments 9 2.1.4. Social and culture factors 9 2.1.5. Demographic 10 2.1.6. Natural environments 11 2.1.7. State of technology 11 2.2. The micro environments 12 2.2.1. Customers 12 2.2.2. Competitors 14 2.2.2.1. Nem 14 2.2.2.2. Xinh 14 2.2.2.3. Pierre Cardin 15 2.2.3. Alternatives 16 2.2.4. Suppliers 16 2.3. Opportunities and threats 17 CHAPTER 3: SOLUTIONS 18 3.1 Goals and missions 18 3.2 Some proposal solutions 18 3.2.1 Build a appropriate organization structure 18 3.2.1.1 Set up marketing department 18 3.2.1.2 Build up organization culture 19 3.2.2 Consolidate marketing mix strategy 20 3.2.2.1 Products 20 3.2.2.2 Branding 21 8 3.2.2.3 Services 22 3.2.2.4 Price 23 3.2.2.5 Promotion 23 3.2.2.6 Distribution 23 3.2.3 Find stable material sources 24 CONCLUSION AND RECOMMENDATIONS 25 REFERENCES TABLES FIGURES PICTURES APPENDIX 9 ABBRIEVIATIONS CEO chief executive officer CMO chief marketing officer EDI electronic data interchange GDP Gross domestic product HCMC Ho Chi Minh city PC Pierre Cardin POS point of sale R&D research and development Savico Saigon General Service Corporation SKU stock keeping unit SME small to medium –sized enterprise SWOT Strengths, weaknesses, opportunities, and threats TQM Total quality management VAL Value and Lifestyle VND Vietnamese dong WTO World Trade Organization 10 LIST OF TABLES, FIGURES, PICTURES, APPENDIXES TABLES Table 1: Balance Sheet Table 2: P&L Table 3: Monthly Average Income Per Capita Table 4: National Statistics Socio-Economic Classification Table 5: Female employees in enterprises FIGURES Figure 1: Level of Needs in The Maslow Hierarchy Figure 2: In urban Vietnam, Income is Sharply Raising Figure 3: Young population Figure 4: Potential Consumers per age Group Figure 5: VALS 2 Segmentation System Figure 6: Organization Culture Types Figure 7: Creating a Relationship Web PICTURES Pictures 1-5 Example of Nem Products Pictures 6-10 Example of Pierre Cardin Products Pictures 1-5 Example of Sweet Products APPENDIXES Appendixes 1: Theoretic Appendixes 2: Questionnaire Appendixes 3: The survey results Appendixes 4: The main target of HCMC [...]... services; from satisfied customers to extremely satisfied customers To build up customer centralized structure: personalize relationship between marketers and customers It means that all company’s members should carefully listen to customers and try to understand them, i.e you need to sell to customers what they want to have but not what you want to sell, i.e you have to understand customers carefully and... environments; the target market to be reached; opportunities and threats faced by Sweet Fashion Corporation; and recommendations for solutions to develop Sweet fashion products; 15 A time constraint of 250-300 hours to finish the entire project causes the content and detail of the project to be narrowed down in focus Therefore only solutions of product development can be developed In order to collect necessary... one company and developed high-end office attire products for over 30 women The challenge is always how to make the brand a good choice of customers amongst too many other brands This is the reason why I select the topic of Solutions to develop Sweet Fashion Product till 2010 for my final project This project will include an analysis of consumer behaviors, market situation, competitors and company... 3.2.2.3 Services: In order to make customers extra satisfied, S -fashion should create customer service culture that every enterprise’s members should be aware and implement I would like to suggest some actions that S -fashion should take to achieve this goal: To set up new business situation: move from reaction to pro-action; from deal to relation; from preferential treatments to customer centralized services;... the most favorite Sweet customers like to wear costume with skirt or with pants The survey results also show that the most expectation from a customer to pick up a fashion product is to become unique, then to be more attractive as second wish Therefore, S -fashion should continue producing products with small quantity for each design Office apparel is still the main product line of S -fashion Product designed... differ from old office uniform Sfashion should create customer service culture in order to make customers extra satisfied Due to limited time line, writer just proposed solutions mainly for product and service The detail plan should be developed as soon as possible to realize the business ideas The writer also recommended that S -fashion should diversify 13 of product lines to sport wear and socks and pay... accessories like hats, handbags to progressively satisfy customer needs Add belts, bracelets, necklaces in business to create perfect collection with clothing 3.2.2.2 Branding: Sweet seeks for solutions for its female customer to be attractive and motivated with a sense of fashion; continuously improved customer 35 services Increased brand awareness by using Word of Mouth Sweet slogan is the beauty is... Vungtau get to know and buy Sweet products There is the only one Sweet shop in HCMC, that is located at 263 Nam Ky Khoi Nghia, Ward 7, District 3 It is a small shop with around 40 square meters in area Inventory is of 800 sku : S -fashion produces 400-500 units per month Sweet products are tailored Stitching is edged by silk ribbons instead of overcastting There is hand embroidery logo of Sweet on shirt-sleeve,... market views when it comes to twenty-first century S -fashion should periodically carry out market researches in order to catch up with the market changes and to build up or maintain marketing strategy in coherence with the situations 3.2.2.1 Products The results of customer survey (See Appendix 3, results) showed that Sweet customers pay most attention on style than designs They are fashion with French style... advantages offered by Sweet products will be the simple French style fashion, professional cuttings and embrace cups taken out body to create curves that highlight feminine beauty; ethic crotchet and/or embroider vignettes and good services The aging of population, an increasing income and the lack of another such upscale products will contribute to the success of the Sweet S -fashion is expected to have a potential . always how to make the brand a good choice of customers amongst too many other brands. This is the reason why I select the topic of “ Solutions to develop Sweet Fashion Product till 2010 for. competitors and company environments; the target market to be reached; opportunities and threats faced by Sweet Fashion Corporation; and recommendations for solutions to develop Sweet fashion products; . NGUYEN THI HONG MAI Solutions to develop Sweet fashion products till 2010 FINAL PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT TUTOR: Prof.PhD   P