Selling activities of Ha Trung Plastic Technology JSC

Selling is a process by which one person guides other people''s behavior along a path in a desired direction, culminating in the purchase of a product or service

Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 Introduction Viet Nam ‘s effort to restructure the economy really got underway with the Sixth Party Congress held in December 1986. Our economic structure mechanism was really changed from planned market oriented economy to market oriented economy. Then Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry into force of the US-Vietnam Bilateral Trade Agreement in December 2001 have led to even more rapid changes in Vietnam's trade and economic regime. Following over a decade long negotiation process, Viet Nam became the official one of members of WTO in January 2007. The economy have moved to implement the structural reforms needed to modernize itself and to support more competitive, export-driven industries. This fast economic development results that the main target of every Vietnamese enterprises is how to complete with other domestic and foreign enterprises. Getting to know of the importance of changing, during probation period at Ha Trung Plastic Technology Joint Stock Company( Ha Trung JSC), I have decided to choose the subject “Selling activities of Ha Trung Plastic Technology JSC ” for my graduation thesis. In my view, this is interesting subject. Many researchers is trying to research and set up detail marketing plans as well as selling plans for their own product. I would like to thank my supervisor Nguyen Luong Long MBA for his coaching and comments during the carrying out of thesis. Without the intensive assistance of my supervisor the results of this thesis would never have been possible. Further, I would like to thank all professors of Hanoi University of Business and Technology and Managers of Ha Trung JSC for their support and kindness toward me. 1 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 Chapter 1. theoretical and practical background I/ Theoretical background 1/ Selling: Selling is a process by which one person guides other people's behavior along a path in a desired direction, culminating in the purchase of a product or service.Good selling is convincing someone of something they didn’t think they needed, they buy it and love it and realize they did need it!! Life insurance, or car breakdown and recovery cover, or double glazing, or a mobile phone agreement. The most of the skills are out there in the public domain, more so than ever before. It’s like how we learn to use the Internet: somehow, we soak up the universal knowledge. Many people know what it takes to be good at selling, it’s just a matter of applying it. Sellers know there’s enough books and stuff on the Internet, and if sellers have got the driver and motivation to read them, then they are likely to have the same drive that makes them good and successful at selling. The selling concept is practiced most aggressively with unsought goods - goods that buyers normally do not think of buying, such as insurance and funeral plots. The selling concept is also practiced in the nonprofit area by fund-raisers, college admissions offices and political parties. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. In modern industrial economies, productive capacity has been built up to a point where most markets are buyer markets( the buyers are dominant) and sellers have to scramble for customers. Prospects are bombarded with sales messages. As a results, the public often identifies marketing with hard selling and advertising. However, marketing based in hard selling carries high risks. If assumes that customers who are coaxed into buying a product will like it: and if they don’t, that they won’t bad-mouth or complain to customer organizations and will forget their disappointment and buy it again. These are indefensible assumptions. One study 2 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 showed that dissatisfied customers may bad-mouth the product to 10 or more acquaintances: today bad news travel even faster and father with the Internet. 2. Types of Selling - Service-Oriented Selling The focus is on the product -- communication information about products, merchandise or services. The sole function of the salesperson is to process sales transactions. Consumers make their own decisions about how the product satisfies their needs. Service sales are the easiest to make. - Developmental Selling + The focus is on the customer. The product is positioned by the salespeople in relation to the needs of prospects. + Involves much more creativity than service selling. + Requires acquiring knowledge about the market, economy, client 2/ Selling process Most of sale professionals agree on the major steps ( see chart 1) involved in any effective sale process as follows: - Prospecting and qualifying : The first step in selling is identifying and qualifying prospects. The purpose of this step is to find potential buyer who have a need for your product, the ability to afford it, the authority to make the buying decision. For instance, sales representatives at Gulfs tram Aerospace, which sells corporate jets, focus their selling effort at those finite number of company that can afford to buy jets and at the top executive who will benefit most and who have authority to approve the purchase. - Preapproach: the successful salesperson prepares before actually making the first cal, learning as much as possible about the prospect (whenever a person or company) and the prospect’s want and needs. Then the salesperson should plan a strategy – including determining the best initial contact approach (phone, visit, letter, email) and selecting the right time to make that initial contact. - Approach: in the initial contact, the salesperson will want to make a good first impression and begin building a rapport with the customer. Little things – 3 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 dress attire, use of language, mannerisms –may seem superficial but the contribute to that first impression. In some businesses, it can take years to make an eventual sale. For instance, a sales rep at Herman Miller, the furniture manufacturer, spent ten years calling on the Pentagon before he landed a major contact. The approach step in the sales process lays the foundation for building and continuing a relationship. - Presentation and demonstration: the presentation and demonstration must be tailored to the customer’s needs. The salesperson needs to effectively grab the customer’s interest and arouse desire. A good sales presentation will describe the product’s futures, advantage, benefits and value- all in terms of the customer’s point of view. Company like Xerox, Cisco systems and Guffstream Aerospace invest heavily in sales training to ensure that their salespeople know their products inside and out. - Overcoming objections : customer almost always have questions and doubts .It’s the salesperson’s responsibility to overcome them. Objections shouldn’t be seen as negative or threatening. They’re natural part of the sales process. But a trained and knowledgeable salesperson- one who knows both the product being sold and potential customer’s needs- is equipped to successfully overcome objections. 4 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 Chart 1. The seven steps in effective selling; 5 PrpProspecting and qualifying Preapproach Presentation Demonstra tion Approach Overcoming objections Closing Follow up Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 - Closing : the successful sales has the confidence and timing to know when to “ask for the sale”. Sales training programs typically include a number of techniques that can be effective closer . - Follow-up: Selling should be viewed as part of creating a relationship. As such, the sale isn’t over when the customer says yes and an order is written. The end goal is a satisfied customers. To ensure that goal is reached, the effective salesperson makes a follow- up call to certify that the order was received in the condition expected, to make sure the customer is happy with the product, and to ask what additional service if any the sales representative can provide. 3. Practical background of VietNam Plastic Industry The plastic industry commenced almost half a century ago in Vietnam; however, the production remained limited and diminutive until recent years. Thus, the Vietnamese plastic industry is considered still in its infancy compared to that of other countries in the region like Malaysia, Singapore, Thailand and China. By way of comparison, Vietnam’s production output of plastics per capita was 25 kg of plastic per person in 2005, and is expected to rise to 40 kg per capita by 2010. Although this is a rapid increase, plastic output per capita of Malaysia in 1999 was 49kg, five times higher than Vietnam’s figure in the same year (9.4kg). Singapore’s output per capita for the same year was 10 times higher and Thailand’s was three times greater and even Indonesia was two times greater for the same period. Currently, there are about 2700 plastic corporations in Vietnam, 80% of which are of small or medium size and privately owned. Only 6% are state-owned, but they represent about 20% of the total capital invested in the industry. State- owned companies tend to be larger and to employee more workers and have a greater investment total than their small or medium sized private competitors. The rest are foreign invested enterprises, with about 35% in terms of overall capital investment. Despite its somewhat smaller size than competitor markets in China, Thailand and Malaysia, plastics is a growth industry in Vietnam with an annual growth rate of around 30 percent per year in recent years. This growth has made 6 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 plastics a major export earner for the country. In 2005, Plastics was third after coal and rice as the fastest growing sector despite the rapid rise of petroleum and other inputs that caused major jumps in plastic resins prices. This growth has been noted particularly by regional competitors such as Malaysia which has responded by investing to try to develop new markets. Examples of this are Poly Tower Ventures Bhd, and Tong Guan Industries Berhad are both opening factories in Vietnam shortly , in order to gain both local market share and to be able to take more orders from EU and the U.S 7 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 Chart 2 Plastics are one of the most important and versatile materials in the global economy. Plastics are durable, strong, lightweight, and resistant to chemicals; they can be transparent, translucent, or opaque; soft, flexible, or hard; insulators or conductors of heat and electricity. They can be fabricated into almost any shape and size. And they are recyclable using multiple resource recovery options. From packaging to aerospace applications, plastics provide designers, engineers, manufacturers, and consumers with products that contribute to economic growth, sustainability of the environment, and a higher standard of living worldwide. Inherently light weight, plastics are an efficient use of natural resources. Plastic products are used as the basis for manufactured articles (such as toys) and as components of manufactured products (such as automobiles) making plastics an important and strategic factor in economies in which manufacturing plays a significant role. As developing countries enter into the manufacturing stage of economic development, plastics will continue to grow in importance. There is already international trade in end-of-life products for the purpose of reclaiming or recycling the plastic components. Plastics products figure in all nine ISO technical 8 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 sectors: Agriculture and food technology; Construction; Electronics, information technology and telecommunications; Engineering Technology; Generalities, infrastructure and sciences; Health, safety and environment; Materials technologies; Special technologies; Transport and distribution of goods. The national plastic industry produces virtually all of what the domestic market consumes and production is currently more oriented toward domestic items and packaging vis- -vis export. Vietnam’s internal market is changing andà increasingly there is more demand for hi-tech plastics products. Prior to 2004, all Vietnamese plastic products were manufactured with genuine plastic resins. Since then, to comply with the growing demand, the government has allowed the imports of cheaper plastic scrap: Vietnam is Asia’s second largest importer of plastic materials. Nonetheless, such fact is raising an issue as raw plastic material prices have soared recently. The plastics industry in Vietnam tends to be highly labor intensive. A survey in 2004 revealed that 70% of the labor force in the Vietnamese plastic industry is unskilled, seven times higher than the combined average of other sectors. Most plastics companies employ between 10 and 50 people. The average monthly salary for a plastics industry employee is just under 2 million VND, with a large degree of variation depending on whether the company is foreign or locally owned and dependent on location of the factory facility. The development strategy of Vietnam's plastics industry to 2010 has stated that the industry will need investment of US$ 3 billion to achieve industry goals. The plan outlines an integrated plastics industry where raw materials would be almost exclusively supplied by in-country resources and product is both used for domestic selling and export. By 2005, 30% of the industry's demand on materials should be supplied domestically, lessening its heavy dependence on imports. The industry will focus on replacing and upgrading machinery and equipment for raw material production and hi-tech products such as construction materials, parts for the auto, motorcycle, and refrigeration equipment industries . The Vietnamese plastics industry is highly dependent on imports. Currently the Vietnamese plastic industry must import about 1.5 - 2 million tons of raw materials annually, plus hundreds of auxiliary chemicals used in the plastics 9 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 industry. Domestic raw materials can meet only 30 percent of the country’s demand. In 2004 Vietnam was Asia’s second largest importer of plastics materials. The Vietnamese government is attempting to promote import substitution by helping to finance several domestic production facilities but the government forecasts that Vietnam will still have to import roughly half of the resins it needs after these production facilities are completed in 2010. Vietnam is dependent upon polyethylene (PE), polypropylene (PP), polyvinyl chloride E (PVCE) and polyvinyl styrene (PS) imported from abroad. Vietnam is less dependent upon imports of B oriented polypropylene (BOPP), polyvinyl chloride S (PVCS) and dioctyl phthalate (DOP) resins as growing amounts of this are being produced domestically - supply is still inadequate to meet demand. The major plastic exporters to Vietnam are regional countries such as China, South Korea, Japan and Taiwan. In 2005, Vietnam imported 1,147 MT of both raw materials and finished products. The plastic import value was $1,426mil, equal to four times of export value of $350 in 2005. In 2004, Vietnam exported only 10 percent of total output, i.e. 90 percent for domestic demand (VPA). Vietnamese plastics products have been shipped to many countries, such as Cambodia, Laos, India, Sri Lanka, Japan, China, the EU, Taiwan and the US. Investment opportunities exist in the packaging field, plastics machinery production, plastics resin production and waste plastics reprocessing sub-sectors. 10 [...]... Table of content Introduction .1 Chapter1 Theoretical and practical background I Theoretical background………………………………… 2 1/ Selling 2 2/ Selling process ……………………………… 4 3/ Practical background of VietNam Platic Industry .6 Chapter2 The situation and selling of Ha Trung plastic technology joint stock company I The outlines of Ha Trung Plastic Technology JSC ………… 1 The history of Ha Trung. .. improve selling activities of Ha Trung JSC As is given the selling process of Ha trung has some disadvantages such as : payment policy, customer searching strategies, The disadvantages have made many barriers to selling process of company Getting to know of the problems, during probation period at Ha Trung Plastic Technology Joint Stock Company plus studying on books and magazines, I want to give some of. .. lienhe@docs.vn Tel (: 0918.775.368 Chapter2 the situation and selling of hatrung plastic technology joint stock company I The outlines of HaTrung JSC 1 The history of Ha Trung JSC HaTrung company is based in 551 Nguyen Van Cu, Long Bien district, Ha Noi, is a joint stock company which started on 1/6/1994 with business registration number 0103004549 Company provides a broad range of plastic bags, packaging supplies... history of Ha Trung JSC …………………………… 10 2 Management and organization structure………………… II Business actives of Ha Trung plastic joint stock company… 1 Business activities in Ha Trung Company JSC 2 Production Process and Facilities .18 3 Process of work 24 Chapter3 Direction and principle measures to extend selling channel of Ha Trung 1 The advantages and disadvantages of Ha Trung JSC ……… 2 Solutions... people and our shareholders Ha Trung wants to ensure delivery through innovative solutions, quality service and operational excellence Getting this balance right is what we constantly strive to achieve Chapter3 Orientations and solution to improve selling activities of hatrung jsc 1 The advantages and disadvantages a/ The Advantages: After many years of distributing plastic, Ha Trung plastic has a strong... it’s an advantage for rotation speed of funds Although, product of company is various of plastic so technology process is same as The Ha Trung plastics machinery sector is typified by efficient, innovative and flexible companies that are operating at the cutting-edge of technology As such they are able to respond quickly to their customers’ new requirements and ensure that they remain highly competitive... system ISO 9001 helps Ha Trung to make good control of the process and ensure customers’ satisfaction Ha Trung s factory is equipped with modern machines and tools, and they are always upgraded annually by famous providers as K Krauss-Maffei, Cincinnati, Corma, In parallel, Ha Trung s engineers and staffs are well and professionally trained With these advantages, products of Ha Trung and precision molds... assignment, but I hope my small opinions can help Ha Trung Plastic joint stock company to develop and improve its selling activities own product selling in the future Due to the lack of time and knowledge about Ha Trung JSC shortcomings are inevitable Suggestions and corrections from lecturers, readers and friends will be highly appreciated This thesis would not have been made possible without the help from... 43,12% It showed that selling activity is pretty good and favors This is a result of trying employees’ best It proved that the capital resource of company is always stable and can ensure of business activity next year Beside of production, HaTrung takes apart on other activities such as: confinement for other companies, importing for them and receiving commission Commission depends on value of contract (0,9%... domestic and foreign brands, which is resulting in rising promotion costs and shrinking profit margins Thus, Ha Trung has to spend more money to improve trained-workers, manufactures, buy new technology Hatrung ‘s market is small -Southern provinces have contributed 75 per cent of the total plastics production Ha Noi and northern provinces account for 20 per cent and the central region produces the