MARKETING STRATEGY OF LA VIE LIMITED LIABILITY COMPANY (COMPLETE SOLUTION FOR DEVELOPING MARKETING MIX MINERAL WATER OF LAVIE LTD)

Paris Graduate School of Management Thai Nguyen University INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS TITLE: MARKETING STRATEGY OF LA VIE LIMITED LIABILITY COMPANY (COMPLETE SOLUTION FOR DEVELOPING MARKETING MIX MINERAL WATER OF LAVIE LTD) Student’s name: LE MINH QUANG Intake I 2012 – The Thesis of IeMBA TABLE OF CONTENT INTRODUCTION Chapter I: The situation of the marketing mix activities for mineral water products of Lavie Ltd in the past 1.1 About Company Limited Lavie and the production of mineral water 1.1.1Foudation and development 1.1.2 Vision - Mission - Values 10 1.1.3 Production and business results 15 1.1.3.1 The product structure of La Vie Co 15 1.1.3.2 Revenue and profit over the years 16 1.2 Business environment analysis of la vie - external environment 17 1.2.1 17 General environment - PEST model 1.2.1.1 Economic Environment 17 1.2.1.2 Political environment, policy and law 21 1.2.1.3 The socio-cultural environment 22 1.2.1.4 Population Environment 24 1.2.1.5 Technology environment 26 International Executive Master of Business Administration – The Thesis of IeMBA 1.2.2 Years of work environment Five Forces 27 1.2.2.1 Competitors 27 1.2.2.2 Customers 27 1.2.2.3 Suppliers 27 1.2.2.4 - Substitutes 28 1.2.2.5 Potential competitors 28 1.3 ENVIRONMENTAL ANALYSIS IN 28 1.3.1 The need to analyze the enterprise 28 1.3.2 Tangible resources 29 1.3.3 Intangible resources 30 1.3.4 Value Chain 31 1.3.5 Analysis of evaluation resources (7S) 35 1.3.6 Analysis and evaluation functions 36 1.3.7 Analysis and evaluation capacity 41 1.3.8 Identification and evaluation of valuable resources and core competencies 41 1.3.9 Analysis and evaluation of competitive advantage 41 International Executive Master of Business Administration – The Thesis of IeMBA 1.4 STRATEGIC ANALYSIS MODELS 42 1.4.1 Evaluate the matrix elements outside - EFE 42 1.4.2 CPM matrix 43 1.4.3 Evaluate the matrix elements inside - IFE Matrix 44 1.4.4 SWOT matrix 46 CHAPTER II : Production and business results achieved by Lavie Co., Ltd 48 2.1.Mixed reality marketing activities for products co lavie 49 2.1.1.Product Policy 49 2.2.2 Price policy 51 2.2.3.Policy objective of price 52 2.2.4 Factors affecting the price 52 2.3.Advertisement 53 2.3.1.Sales promotion (sales promotion) 55 2.3.2 Sales promotion activities for consumers 58 2.3.3 Other promotional activities: 59 2.4 Direct Sales 59 International Executive Master of Business Administration – The Thesis of IeMBA 2.5.Public relations activities 60 2.6 A number of marketing activities affect the marketing mix strategy for 61 Lavie mineral water products CO., LTD Lavie CHAPTER III : A number of measures to improve the marketing mix 64 activities for mineral water products Co., Ltd Lavie 3.1.Objective of the marketing system development mixed 64 3.1.1.The overall objective marketing 64 3.1.2 Objectives for the marketing mix activities 64 3.2 Solutions to finishing system combination marketing for mineral water 65 products company lavie lavie ltd 3.2.1 Improve the company's marketing capabilities 65 3.2.2 Complete marketing system for mineral water product mixture Lavie 66 3.2.2.1.Program planning organizations marketing mix activities 66 3.2.2.2.Predict response response 67 3.2.2.3 Designed for marketing messages mixed 67 3.2.2.4.Decide the scope, frequency and intensity effects 68 3.3.The complete system solutions marketing mix for Lavie mineral water 69 through its tools 3.3.1.Advertisement International Executive Master of Business Administration 69 – The Thesis of IeMBA 3.3.2.Sales promotion activities 70 3.3.3.Direct Sales 71 3.4 Other solutions 72 3.4.1 Development of management information systems, marketing 73 information 3.4.2 Coordinate the policies of the marketing-mix 73 3.4.2.1.Coordinate with product policy 73 3.4.2.2.Coordinate with the pricing policies: 74 3.4.2.3 Coordinate with distribution policy 75 CONCLUSION 75 REFERENCE 75 INTRODUCTION International Executive Master of Business Administration – The Thesis of IeMBA Vietnam is now on the development of market economy, many components, the integration with the regional economy and the world In the development process, there is a new job, new opportunities for the people of Vietnam, which is the field of Marketing Only a few years ago, when it comes to Marketing people not understand what it is industry, they provided it is simply marketing But perhaps now, the term "Marketing" is no stranger to the people but they have not been able to fully understand the role of its activities in the field of manufacturing and trading In the past customers have to be proactive to find the goods, and today's businesses to find customers for his goods more and more, increasingly diverse Consumers may select goods for his business and marketing has helped to sell, just to help consumers choose the right products they need Joint Venture Company La Vie is the one who must find his client because the bottled water market today are widespread in Vietnam market Issues need to set out what companies must to stay on the market this fierce watch? In this article I would like to know how the company La Vie can stand strong even in the Vietnamese market and Marketing department has contributed to that success CHAPTER I: THE SITUATION OF THE MARKETING MIX ACTIVITIES FOR MINERAL WATER PRODUCTS OF LAVIE LTD IN THE PAST International Executive Master of Business Administration – The Thesis of IeMBA 1.1 ABOUT COMPANY LTD LA VIE 1.1.1Foudation and development Lavie venture company formed investment partnership of Long An Food Company and Franco Asiatique Holdings Company Pte.Ltd (CFAH) under license number 423/GP investor on 30/09/1992 with a total initial investment of $ 5,600,000, capital of $ 2,000,000 of which the country accounts for 35% stake share, foreign accounting for 65% share In October / 1993 Perier Vittel Group-a group of the world's leading mineral water Company has equity participation CFAH with the level of contribution is 51% of the shares of the Company CFAH For Vietnamese partners, on 04/04/1996 General Trading Company nominated Long An Province Long An alternative Food Company under the investment license number 423/GPDC2 Lavie Venture company officially changed the name into Co Lavie on 17/07/2007 under number 501 022 000 040 investment certificate by the People's Committee of Long An Province-level Co Lavie is the cooperation between General Trading Company Long An Province and Nestle Waters corporations La Vie Co officially put into operation on 01 May 07, 1994 with an initial capacity of 15 million liters / year Investment each year to be considered by the growth of manufacturing and trading company Current capacity 3-fold increase compared with the initial capacity, there are two kinds of mineral water production line From the beginning of modern automated equipment with a closed process technology from production of bottles, bottle packaging under strict quality supervision of Neslte Waters, a member of the Nestle Group, along with good market access and exploit the products of the company is leader in the field of products and bottled International Executive Master of Business Administration – The Thesis of IeMBA water is the only bottled water products sales network across the country Now, the company is providing the Vietnam market products called 'natural mineral water La Vie' Co., Ltd La Vie is the first beverage company in Vietnam granted certificate of international standard ISO 9002 and continuously for 14 years (1997 - 2011) La Vie was voted by consumers' 'High Quality Vietnamese Goods' In particular, for consecutive years (2001-2008), La Vie is considered the best and award winning 'Golden Dragon' by the Economic Times in conjunction with the Ministry of Planning and Investment organization La Vie Co., whose office is located in Long An and three branch operations in Ho Chi Minh City, Hung Yen and Hanoi The company operates under the administration of the board, including general manager and deputy general manager of the Company From its inception, the company was interested in the development of local human resources, the company has nearly 272 staff members, but only two foreigners is CEO and plant manager The key staff are university graduates and be nominated to France to attend training under the guidance of experts of Nestlé Waters Corporation The Company also applies mentoring training measures in place or send professional training courses in the country to improve the skills of officials and employees of the Company A crucial part of the success of La Vie Co., Ltd is a clever combination of professional qualifications in the field of international mineral of Nestlé Waters Corporation with the intelligence and diligence of the basic training Vietnam Company to a sufficient level, access to new technologies as well as take on the important position International Executive Master of Business Administration – The Thesis of IeMBA The milestone of La Vie 1992: Establishment of Joint Venture mineral La Vie in Long An 1993: Nestle Water is a major investment for a 65% stake 1994: La Vie debut product markets 0.5L and 1.5L 1999: La Vie launched 5G bottles for home and office 1999: La Vie achieved ISO 9001 certification, the first company in the field of beverage achieve this certification 2002: The factory in Hung Yen official manufacturer La Vie provides market the North 2005: Innovation from the square bottle round bottle switch use to this day 2008: Investing in small bottles and bottles of 19L line with the most modern technology for the plant in Long An 2009: Achieving ISO 22000 certification, ISO 14001 and OHSAS 18001 2010: Investing in small bottles and bottles of 19L line to the factory in Hung Yen 2011: launch of the new line Krones for Hung Yen plants (20 000 bottles / hour, project investment PET line for Long An (48000 bottles / hour) and extended storage 1.1.2 Vision - Mission - Values Vision: Maintain and promote La Vie become the number one bottled water company in Vietnam (On production and sales) with the resulting high-quality products bring profit to the company International Executive Master of Business Administration – The Thesis of IeMBA Correctly identify the target public to measure the impact, efficiency, avoid missing customer in promotion activities and the promotion to customers that fall into the hands of competitors.Determining the public believe it will determine the tools and means of implementation 3.2.2.2.Predict response response: Companies should anticipate the response reaction of target customers at any level to make plans to meet those changes Reaction response is that businesses are now very interested This problem Lavie firms have not really paid attention to.So need to take measures to infer response to predict the response to how to overcome the adverse reactions and exploit the beneficial response for the business process The conduct of response predicted response based on customer behavior, and the behavior will greatly affect sales and profits.To make accurate predictions, the company should appoint experienced people in charge of this area for monitoring If you this, the promotion activities in promoting efficiency will be enhanced, contributing to the Company's business results 3.2.2.3 Designed for marketing messages mixed Messages for promotion activities and the promotion must agree on the content, form and texture.Messages must so clearly the role of health for every human being, the benefits of using the product Lavie mineral water for health, to compare the features of the product, the price of the product products must be raised and place of sale and to reassure customers about the information they provide.These are the criteria needed to conduct design effective communication messages Message transmission to the idea, of the mainstream media, but that International Executive Master of Business Administration 66 – The Thesis of IeMBA message should be concise, remember roots, easy to understand When designing a message to the active tool should pay attention to the following characteristics: Message: Be concise, brief, easy to understand, easy to remember, easy to listen to, there should be emphasis on the element of interest, taking health products, prices and promises announced -Wishing messages: With the message content so it is necessary to set how the message structure with logical and reasonable to increase the awareness, appeal to lead the customer psychology - Type of message: This is a very important issue, in addition to the content and structure, the form must be designed to attract the attention of the audience Forms to the attention of the visual (color), auditory attention, so to design more exciting, novel contrast At the same time there must be harmony between the lines and illustrations, depending on the media to present the appropriate form, not machinery, confined 3.2.2.4.Decide the scope, frequency and intensity effects Need to determine the scope, frequency, intensity effects before deciding to choose the tools and means of implementation Before deciding to choose the tools and means of implementation Before deciding to tool selection, the decision of the scope must be passed Each vehicle has its own scope, but also the means of overlapping scope of activities therefore need to research before making a decision means used to reduce unnecessary duplication The scope is understood as the number of different animals with specific promotion activities on a specific medium, at least once in a given period Perform frequency which is the number of messages with the purpose to make customers exposure to the message as much as International Executive Master of Business Administration 67 – The Thesis of IeMBA possible in a given time, to bring targeted customers to a higher state of readiness purchase The determination of the frequency of implementation is difficult, and it depends on the objectives, costs and psychological characteristics of target customers Done with high or low frequency, the effect of the promotion mix is achieved and with a frequency of how much is enough, this requires the cooperation of psychological researchers Decisions about the scope and frequency of the promotion activities and the promotion based on the objectives define the content, form and nature of the operation, on the other marketing elements relevant to the situation particular, at the time of the operation These are the most common problems need to define carefully before deciding to choose the tools and means of implementation 3.3.The complete system solutions marketing mix for Lavie mineral water through its tools 3.3.1.Advertisement Due to the public nature of the ad viewers choice is not high, wide dynamic range, exposure levels deep, good impact strength it will create an effective barrier Advertising is a tool used by companies, especially advertising on television, radio, magazines, golf For Lavie mineral water company advertising activities only through financing activities.As for the advertising activities through television, newspapers only happened a few times in the new MAM bring products to market Lavie products are in the early stages of the development process of the product life cycle process.Therefore, the conduct of the campaign is very need effective thietva International Executive Master of Business Administration 68 – The Thesis of IeMBA In fact, this activity is not really taken seriously, knowing that the budget for this activity is not small But advertising investment is a long term investment that can open a lot more customers, enhance and maintain the reputation of the brands on the market If this activity is to pay due attention will surely bring success to the company 3.3.2.Sales promotion activities Sales promotion is one of its activities Lavie used a lot in recent times and it's really effective.However, sales promotion system Lavie also need to consider the following issues: - Frequency of sales promotion activities Lavie place average January times and lasted for almost weeks for the Hanoi area.As other provinces happened times in months and lasted for two weeks Promotion and sale is too dense to make this activity overlaps other activities.Because it is happening too often so it was not announced in advance to the consumer Unlike some other manufacturers as Lavie example, every year they held promotion from to times.The information on this program was announced to the tank shell Due to be carried out with such frequency Lavie should have time to prepare yourself for the sales promotion planning, determine their promotional program, the frequency as well as the budget for it For Lavie Operating as such should not timely identified above criteria make high budget for this operation does not obtain the desired results - On stage manager sales promotion activities: A number of issues arise in the course of promoting the sale of stores, dealers, especially consumers often get less or did not receive the gift of which they International Executive Master of Business Administration 69 – The Thesis of IeMBA should be received This happens due to the steal of the upper level Thus Lavie should appoint one person in charge of the inspection and monitoring.At the same time, to give sanction for the agents try to eat less On the other hand this work is widely well need to inform consumers about their promotions Since then the plant will have ideas information provided hoicua the consumers on this issue 3.3.3.Direct Sales This is the most effective approach to potential customers, customers are organizing the event, the sport And this is the client needs little change, high fidelity volume great buy The offers for the customers can be carried out according to the following steps: - Step 1: Perform a search and screening of potential customers through sources such as: existing customers telephone directories, local taxes - Step 2: Gather preliminary information about potential customers have selected as type of business, the decision to buy, what are their needs? - Step 3: Conduct direct contact such as brochures about the company, the company, the benefits brought to them - Step 4: Handling objections The object is of course in the process of contact with customers.That may object to the price, product quality, annoying or no reason at all The problem now for how company employees are fully aware of the objections to customers from including the appropriate response - Step 5: Finish the offers International Executive Master of Business Administration 70 – The Thesis of IeMBA Need to select the end of the reasonable this depends greatly on the ability and experience of the staff.Often the salesperson or difficulty in this step - Step 6: Monitor and maintain After offers employees must complete the procedures in order, their offers, the exchange and shall classify customers as a basis for the next exposure 2.5.4.Public relations activities This is a tool that has a very important role, it creates an atmosphere favorable product.According to the study, most customers before deciding to buy the product they are looking for information from friends, colleagues, own experience as well as the popularity of the brand Therefore, public relations is very good catalyst for an increase in media relations as well as open up new relationships Public relations play such an important role on the spending budget for this great work For Lavie mineral water company public relations activities are a very important role in creating prestige brand products Lavie.During the plant should continue to develop its relationship to promote products, improve production efficiency 3.4 Other solutions 3.4.1.Development of management information systems, marketing information Communication is necessary relationship between inside and outside the factory, though so important, but it's still a cause mistakes and inefficiencies learn selection and evaluation of activities channel.Lack of proper information is the first cause leading to mistakes and inefficient to examine and evaluate the promotion mix International Executive Master of Business Administration 71 – The Thesis of IeMBA Lack of proper information is the first cause can lead to mistakes and create an atmosphere of dissatisfaction for both customers and employees of the Company The development of management information systems and marketing information systems management will help organizations better internal information systems, maintaining the flow of accurate information to intermediaries and customers 3.4.2 Coordinate the policies of the marketing-mix 3.4.2.1.Coordinate with product policy On the actual promotion of mixed and what plants are present for the product is very effective, if there is policy coordination with product promotion and the promotion policy, convinced that cost-effectiveness business of the company will be even greater In the promotion mix we always confirm product like this or that, but when the product is in the hands of customers, it is too far away from what has been said, the response of the customer as How So what say, offering activities such as the promotion mix should only say what the product Ensure and maintain the quality of the product will ensure long-term business reputation Currently businesses are businesses in the modern competitive environment, the product outward appearance does not vary much, the quality of the product, the reputation of the brand is the competitive factors weak With a view of customer service is above all, the company should follow the motto of correct: (1) time, (2) the right price, (3) the right quality, (4) the right places The promotion for the product is a mixture of art but not magic, illusion, false say about the product.Customers only recognize quality when they actually used the product, and the information they collect does not reflect all the International Executive Master of Business Administration 72 – The Thesis of IeMBA characteristics that product The agreed customer code is especially important According to calculations satisfied, they will recommend for ten people, a person is not satisfied, they will tell a hundred So, we have the satisfaction through quality products On the other hand the results of the customer research before deciding to buy the product for use, they most seek information from friends and colleagues, personal experience as well as well-known brands on the market Therefore promotion mix to go along with quality products, avoid the magic or promotion does not reflect what the product 3.4.2.2.Coordinate with the pricing policies: This is a policy that touches the immediate benefit of the customer.An optimal price policy must ensure that the target customers can afford Pricing policy is a very difficult operation, it does not only touch the interests of customers, but also a huge impact on sales and profitability of the Company Promotion activities and the promotion requires costs and the cost of which ultimately included in the selling price of the product Currently consumers are afraid of the phenomenon of charge prices that are too high compared to the actual price of the product, most of them thought that mixed promotion activities need to be assembled with the concentration pricing policies So mixed promotion activities need to add prices to consumers can buy products with the right price Good product quality, mixed conducting promotion activities will create an efficient optimal pricing is within reach of the business 3.4.2.3 Coordinate with distribution policy Policy implementation is widely distributed company wanted to be If active distribution policy effective, quick promotion activities will be promoted and made International Executive Master of Business Administration 73 – The Thesis of IeMBA possible through the intermediary distribution Channel system activity Lavie today is short, not long, mainly in areas where development.Elsewhere no or little product the customer does not know our product they are buying is understandable, this makes over the loss of production and sales of competitors is significant Channel system to operate effectively whether to open a few agents in the area, or for higher discounts for intermediaries operating in the area, we may not be profitable or less to keep the market to develop in the future All IEC v that would be slime in channel activity.The discount will make the intermediate product to give business competitors and business focus of plant products.Intermediaries they usually not care what the product is, what they are interested in a product to sell more profitable Made that our products will everywhere, "surrounded" customer when the customer demand for such products CONCLUSION In summary hardly a separate policy activities to bring about efficiency, so there should be coordination between policies promoting promote the policies of the marketing-mix system to operate business of the company become more efficient TABLE OF CONTENT INTRODUCTION Chapter I: The situation of the marketing mix activities for mineral water products of Lavie Ltd in the past International Executive Master of Business Administration 74 – The Thesis of IeMBA 1.1 About Company Limited Lavie and the production of mineral water 1.1.1Foudation and development 1.1.2 Vision - Mission - Values 10 1.1.3 Production and business results 15 1.1.3.1 The product structure of La Vie Co 15 1.1.3.2 Revenue and profit over the years 16 1.2 BUSINESS ENVIRONMENT ANALYSIS OF LA VIE - EXTERNAL 17 ENVIRONMENT 1.2.1 General environment - PEST model 17 1.2.1.1 Economic Environment 17 1.2.1.2 Political environment, policy and law 21 1.2.1.3 The socio-cultural environment 22 1.2.1.4 Population Environment 24 1.2.1.5 Technology environment 26 1.2.2 27 Years of work environment Five Forces 1.2.2.1 Competitors International Executive Master of Business Administration 27 75 – The Thesis of IeMBA 1.2.2.2 Customers 27 1.2.2.3 Suppliers 27 1.2.2.4 - Substitutes 28 1.2.2.5 Potential competitors 28 1.3 ENVIRONMENTAL ANALYSIS IN 28 1.3.1 The need to analyze the enterprise 28 1.3.2 Tangible resources 29 1.3.3 Intangible resources 30 1.3.4 Value Chain 31 1.3.5 Analysis of evaluation resources (7S) 35 1.3.6 Analysis and evaluation functions 36 1.3.7 Analysis and evaluation capacity 41 1.3.8 Identification and evaluation of valuable resources and core competencies 41 1.3.9 Analysis and evaluation of competitive advantage 41 1.4 STRATEGIC ANALYSIS MODELS 42 International Executive Master of Business Administration 76 – The Thesis of IeMBA 1.4.1 Evaluate the matrix elements outside - EFE 42 1.4.2 CPM matrix 43 1.4.3 Evaluate the matrix elements inside - IFE Matrix 44 1.4.4 SWOT matrix 46 CHAPTER II : Production and business results achieved by Lavie Co., Ltd 48 2.1.Mixed reality marketing activities for products co lavie 49 2.1.1.Product Policy 49 2.2.2 Price policy 51 2.2.3.Policy objective of price 52 2.2.4 Factors affecting the price 52 2.3.Advertisement 53 2.3.1.Sales promotion (sales promotion) 55 2.3.2 Sales promotion activities for consumers 58 2.3.3 Other promotional activities: 59 2.4 Direct Sales 59 International Executive Master of Business Administration 77 – The Thesis of IeMBA 2.5.Public relations activities 60 2.6 A number of marketing activities affect the marketing mix strategy for 61 Lavie mineral water products CO., LTD Lavie CHAPTER III : A number of measures to improve the marketing mix 64 activities for mineral water products Co., Ltd Lavie 3.1.Objective of the marketing system development mixed 64 3.1.1.The overall objective marketing 64 3.1.2 Objectives for the marketing mix activities 64 3.2 Solutions to finishing system combination marketing for mineral water 65 products company lavie lavie ltd 3.2.1 Improve the company's marketing capabilities 65 3.2.2 Complete marketing system for mineral water product mixture Lavie 66 3.2.2.1.Program planning organizations marketing mix activities 66 3.2.2.2.Predict response response 67 3.2.2.3 Designed for marketing messages mixed 67 3.2.2.4.Decide the scope, frequency and intensity effects 68 3.3.The complete system solutions marketing mix for Lavie mineral water 69 through its tools International Executive Master of Business Administration 78 – The Thesis of IeMBA 3.3.1.Advertisement 69 3.3.2.Sales promotion activities 70 3.3.3.Direct Sales 71 3.4 Other solutions 72 3.4.1 Development of management information systems, marketing 73 information 3.4.2 Coordinate the policies of the marketing-mix 73 3.4.2.1.Coordinate with product policy 73 3.4.2.2.Coordinate with the pricing policies: 74 3.4.2.3 Coordinate with distribution policy 75 CONCLUSION 75 REFERENCE 75 List of tables , figures, graph Table 1.1.: Summary of revenue and profit International Executive Master of Business Administration 16 79 – The Thesis of IeMBA Table 1.2.: Growth rate of GDP in the period 2002-2011 18 Table 1.3.: GDP per capita in 2002-2011 19 Table 1.4 : Vietnam population data 24 Table 1.5: Age structure of the population, 2009 25 Table 1.6: Matrix of external factors affecting EFE 42 Table 1.7: competitive comparison matrix (CPM) 43 Table 1.8 : Matrix elements within the company Lavie (IFE) 44 Figure Organization Chart Company La Vie 12 Chart 1.1.: Revenue growth and profit 17 Figure 2: The growth rate of GDP of Vietnam during the period 2002 - 2011 18 Graph 1: GDP per capita in 2002-2011 19 Chart 1.2: The McKinsey 7S model 35 International Executive Master of Business Administration 80 ... number of marketing activities affect the marketing mix strategy for 61 Lavie mineral water products CO., LTD Lavie CHAPTER III : A number of measures to improve the marketing mix 64 activities for. .. particular they are evoked in the mind that is Lavie Lavie even become common noun only bottled water Sometimes buyers usually called Lavie buy for any other product not Lavie This shows that Lavie. .. Thesis of IeMBA TABLE OF CONTENT INTRODUCTION Chapter I: The situation of the marketing mix activities for mineral water products of Lavie Ltd in the past 1.1 About Company Limited Lavie and