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MARKETING PLAN ONLINE SHOP FOR SELLING SOUVENIRS AND HANDICRAF PRODUCTS OF VIETNAM Content Overview………………………………………………………… .3 Target market…………………………………………………… .4 Situation Analysis (SWOT)……………………………………….5 Plan Objectives (SMART)……………………………………… Marketing Mix Strategy………………………………………… 6 Implement Plan………………………………………………… Evaluate and Monitor Implementation………………………… Financial Plan…………………………………………………… 9 Alternative Plan………………………………………………… 10 10.Appendix………………………………………………………… 11 1.Overview In recent years, Vietnam tourism industry is developing strongly with the number of foreign tourist increased rapidly, according to statistic form the General Department of Vietnam Tourism in 2008 there were 4,253,740 visitors In 2009 there were 3,800,000 visitors In 2010 there were totally 5,049,855 visitors increased 34.8% over the same period in 2009 (12 months) Foreign tourist come to Vietnam with different purposes, many of them after completion of travel time in Vietnam were very sorry as they cannot bring home any souvenirs or handicraft products Beside foreign tourists there are number of Vietnamese who living abroad also plan to visit their homeland on the rise, especially on New Year time, according to VnExpress in 2008 there were 400,000 oversea Vietnamese travelled to Vietnam According to Committee of Vietnamese oversea (Foreign ministry) in 2009 the numbers of expatriates to visit their home land reached to 500,000 and there were many of them stayed in Vietnam to celebrate Hanoi – Thang Long 1000 year ceremony They also have needs to own souvenirs products which are traditional Vietnamese styles, light, small size, good quality with reasonable price and the souvenirs are unique that they only can find in Vietnam but nowhere else in the World Derived from actual demands, our company decides to market products which are pure Vietnamese souvenirs combining key elements: First- product based on traditional Vietnamese characters, landscapes and culture Second- handmade technology by artisan in Van Phuc village – famous village for handmade embroidery products in Vietnam Third - all materials originating from Vietnam The combination of these basic elements will create the core values of the products, ensure basic product principles, souvenir products bring in unique and different from Vietnam in comparison with souvenir products from other countries After creating pure Vietnamese souvenir products with high quality we will apply modern marketing methods to create effective business and oriented market segments are group of selected target customers of main groups : First – foreign who travel to Vietnam in short time or ones whose long term of working is expired Second – Vietnamese people living abroad to visit their home town every year Third – collectors of Vietnamese art and handicraft products To the characteristics of three target customer groups, most have good education, have habit of using internet to seek for information we decided to chose the solution of setting up “ Online shop selling souvenirs and handicraft products of Vietnam with brand name “Song Viet” Our selected products satisfy the core values mentioned above that are craft works of artisan of Van Phuc Village on silk material which are well known for thousands of year named “Ha Dong Silk” Target Market a Target customer: i Foreign tourist in 2010: 5,049,855 visitors (according to Vietnam National Administration of ii Tourism.) Vietnamese living abroad 2010 were: 4,000,000 (compiled from the statistics of Vietnam and demographic survey of the countries concerned) Among them there are about 500,000 visitors who iii travel to their homeland every year The collector of Art and Handicraft products: we will only focus on 200 collectors in Vietnam b Geography : a b c Gender: according to our company list Customers from all over the World Online distribution nationwide Focus on tourist attractions and major cities a No gender discrimination d Age, consumption habit: a Main group who has life experience and cultural references over 30 years old b Customers who are well educated, having habit of using internet c Customers who have habit to buy souvenirs when travelling abroad 3 Situation Analysis (SWOT): a Strength: Pure Vietnamese (different): Ha dong Silk or Van Phuc silk is woven by hand This handmade silk is really beautiful and very well-known for thousands of year ago + Diversity : Van Phuc silk has different types of silk such as : The La, The Linh, The Doan, The Dui, The Sa, The Voc, The The, The Van… and the most famous among these is “ The Van silk ” which have smooth surface and great pattern, the traditional oldest one + Van Phuc silk has approved by foreign market It has many patterns and it is the oldest silk in Vietnam Van Phuc silk or Ha Dong silk - “Lua Ha Dong” was chosen to be material for Royal Court’s clothes “Lua Ha Dong” keeps you warm in winter and keeps you cool in summer “Lua Ha dong” was first introduced to International foreign market in 1931 in Marseille and was rated as French Sophistication of French products in Indochina which belonged to French in 1932 Since 1958 – 1988 Van Phuc silk products were exported to Eastern and European countries and since 1990 were exported to many other countries bringing foreign currency back to Vietnam + Production capacity to ensure large quantity: In 2009 Van Phuc village has 1,000 embroidery machines + Handmade productions with high quality: Van Phuc village offers variety of silks to meet the demand of local market as well as international market such as the “Van Que Hong Diep” silk and “Van Luong Long Song Phuong “silk In the year 2010 to celebrate Ha noi – Thang Long 1000 year, the famous artisan Nguyen Huu Chinh has created new silk pattern” The Van silk with two Dragons flanking at “Khue Van Cac” in the middle of lotus image b Weakness : + Blended by Chinese silk, small size: 90 – 97 cm +If production of “Song Viet” is successful there might be chances for other companies to imitate c Opportunities : + Potential market: market segmentations are selected with great potential and increased annually through the statistic on number of tourists to Vietnam + Product line with the tastes of most visitors: visitors are more likely to pay for products that meet the need of souvenir and essential combination Van Phuc silk is light and soft, keep your body warm in winter and cool in summer Variety of patterns can be used to make bags, scarves, and different types of table clothes, ties…Traditional clothes as well as modern ones d Risk : + Can be rivaled by Chinese silk and other silk productions which embroidered by machines Plan Objectives (SMART): a Sales target: vnd 2,000,000,000/ 12 months after years b Market share target: 4% after years c Branding target: familiar brand awareness, brand recognition, and brand known in local as well as international market after year d Profit target : 40% after years Marketing Mix Strategies: 5.1 Product strategy: a Product description: Silk Product of Vietnam Variety of patterns and diversity of productions b Product differentiation description: Handmade silk Light, soft and smooth Warm in winter and cool in summer c Description of different strengths with competing products : + Having own brand “Song Viet” +Having unique traditional Vietnamese patterns, Vietnamese legend patterns which is cannot copy by other countries such as legend of Mouse wedding, “Khue Van Cac” in the center of Lotus Image… are embroidered on plain silk 5.2 Price strategy: Small souvenir at USD 1.00/unit Valued souvenir at USD 100.00/unit 5.3 Marketing strategy (promotion): i Advertising message Slogan : “Vietnam Gifts” Transmission of product differentiation: focus on the differences of product which are ii product’s strength Pull strategy: creating consumers demands from advertising programs Advertising on internet through online store Advertising on the website of tourist companies, airlines, depending on budget for advertising Advertising at travel desk by leaflet Advertising in souvenir shops Might send staffs to support big shops to introduce “Vietnam Gift”‘s products to consumers iii Push strategy: Discount on sales volume of souvenirs Discount for travel companies 5.4 Distribution strategy (Place): Online sales through website, delivered via postal services Online sales through website, delivered via postal services to tourist companies Online sales through website, delivered via postal system to souvenir shops Sale by marketing staffs coming to souvenir shops at major tourist attractions… Implement Plan: a Design and product development b Recruitment, assignment, and training of direct sale staffs as well as online sale staffs c Design and implement advertising programs d Contact and setting up shops i Program for direct consumers ii Program for souvenir shops iv v Program for tourist companies Setting up company own stores Assignment Table Description Start date Design and product June 01, 2011 development Recruitment, assignment, Aug 01, 2011 and training of direct sale staffs as well as online sale staffs End date July 31, 2011 PIC Nguyen Van Anh Manager Vuong Thuy Hien Aug 30, 2011 Nguyen Thanh Tan Vuong Thuy Hien Design and implement June 01, 2011 advertising programs July 31,2011 Vuong Thuy Hien Vuong Thuy Hien Contact and setting up shops Aug 30, 2011 Phan The An Vuong Thuy Hien Aug 01, 2011 Evaluate and Monitor Implementation: a Monitor work progress Check: once/week or when having problem + Find out solution when having problem b Monitor advertising programs + Check Ideas: images and messages are always focused to highlight the strength of products as well as focused on the core values of “Song Viet” products + Check contents + Check time, duration and website for advertising c Check revenue + Revenues from direct sale channels or online channels + Revenue on reports: daily, weekly, monthly, months, yearly 8.Financial Plan: a Sales target expectation: i Sales Expectation in First months Place/Products Sales /1st Sales/2nd Sales/3rd Sales/4th Sales/5th Sales/6th Hanoi city Ho Chi Minh city month 30,000,000 50,000,000 month 40,000,000 50,000,000 month 60,000,000 65,000,000 month 50,000,000 70,000,000 month 65,000,000 70,000,000 month 70,000,000 80,000,000 Total 80,000,000 90,000,000 125,000,000 130,000,000 135,000,000 ii Sales expectation in first years 150,00,000 Place/Products Sales /1st year Sales/2nd year Sales/3rd year Vietnam 1,000,000,000 950,000,000 1,200,000,000 b Financial information 1st year 1,360,000,000 360,000,000 1,000,000,000 26.4% Sales Gross profit Total cost Net profit before tax 2nd year 1,600,000,000 650,000,000 950,000,000 40.6% 3rd year 2,000,000,000 800,000,000 1,200,000,000 40% (EBITDA) Alternative Plan: a Signs of failure Brand recognition is not expected through customer survey Advertising message is fail to convey the difference of products through customer survey Sales donot increase as expected through sale reports Do not reach expected sales through sale reports b Alternative plan Adjust products Adjust price Adjust advertising content, advertising image Adjust distribution channels, place for setting up shops Discount policy Change , cut down or setting up more shops Adjust or re-train sales staffs 10 Apendix ... Vietnamese who living abroad also plan to visit their homeland on the rise, especially on New Year time, according to VnExpress in 2008 there were 400,000 oversea Vietnamese travelled to Vietnam... and different from Vietnam in comparison with souvenir products from other countries After creating pure Vietnamese souvenir products with high quality we will apply modern marketing methods to... travel to Vietnam in short time or ones whose long term of working is expired Second – Vietnamese people living abroad to visit their home town every year Third – collectors of Vietnamese art and
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