Recommendations for marketing strategies to attract investment in industrial park at VSIP hai phong

Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong PREFACE In the period of economic transformation in the entire world, the economy of Vietnam has also witnessed many changes In fact, developed countries have tendency to shift from manufacturing economy into service economy, whereas developing nations are still mainly focusing on manufacturing economy Therefore, Vietnam are promotingindustrialization and modernization to become an industrial country in the future Vietnamese government is tempting to facilitate favorable conditions for development of industrial zones in the whole country However, in fact, some industrial zones already projected, but no investors The status of industrial lands enclosed with costly infrastructure investment, poor investment attraction is prevalent Slow land clearance or insufficient investment capital are one of the main justification for this negative situation Hence, it requires a throughout and clear marketing strategy to deal with this warning issue Enterprises need to figure out their own marketing strategies for attracting investors from outside unless they want to face to this consequence Especially, Trans-Pacific Partnership Agreement (TPP) and Asia Economic Community (AEC) are consideredas a golden opportunity to attract foreign investors coming to Vietnam It can be obviously seen that marketing strategy plays a crucial role in developing industrial zones I declare that this report is my own unaided work It has never been submitted before If violated, I am solely responsible for and bear the punishments of the Institution and University Student Name and Signature Name: Tran Cong Thanh Class: GMA02 Page i Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong ACKNOWLEGEMENT In order to finish my dissertation“Recommendations for marketing strategies to attract investment in Industrial Park at VSIP Hai Phong”, I received many support from lecturers of Vietnam Maritime University Firstly, I would like to express my sincere gratitude to my supervisor Mrs.Hoang Thi Lich who directly support and help me during the dissertation time for her patience, dedication, motivation, and immense knowledge That brings me a solid foundation to accomplish this dissertation Her guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor for my study Besides, I also really appreciate all employers and employees of VSIP Hai Phong Limited Company who facilitate favorable conditions for me to have good working environment, as well as valuable documents, data to write this dissertation Due to limitation of understanding, that is a little double that mistakes are inevitable, so I really hope to receive feedbacks from the lecturers to accomplish my dissertation Name: Tran Cong Thanh Class: GMA02 Page ii Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong TABLE OF CONTENTS PREFACE i ACKNOWLEGEMENT ii LIST OF ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES vii INTRODUCTION CHAPTER 1: THE LITTERATURE REVIEW OF MARKETING AND MARKETING STRATEGIES 1.1 General Understanding about Marketing 1.1.1 Definition of Marketing 1.1.2 Definition of Marketing Strategy 1.2 Factors Affecting Marketing Strategy 1.2.1 Marketing Environment 1.2.2 Customer Behaviors .6 1.2.3 Competitors 1.2.4 Target Markets .8 1.3 Marketing Strategies (4P) 1.3.1 Product (Service) Strategies 1.3.2 Price Strategies 10 1.3.3 Place (Distribution) Strategies 11 1.3.4 Promotion Strategies 11 CHAPTER 2: THE MARKETING STRATEGIES TO ATTRACT INVESTMENT IN INDUSTRIAL PARK AT VSIP HAI PHONG 13 2.1 Introduction about VSIP Hai Phong 13 2.1.1 History of Foundation and Development 13 2.1.2 Main Business Activities 15 2.1.3 Organization Chart 17 2.1.4 Operational Business Result from 2012 - 2014 18 Name: Tran Cong Thanh Class: GMA02 Page iii Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong 2.1.5 Future Development 20 2.2 The Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong 21 2.2.1 Service Strategies 21 2.2.2 Price Strategies 22 2.3.3 Place (Distribution) Strategies 23 2.3.4 Promotion Strategies 24 2.3 Evaluation of Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong 26 2.3.1 Strengths 26 2.3.2 Weaknesses 30 CHAPTER 3: RECOMMENDATIONS FOR MARKETING STRATEGIES TO ATTRACT INVESTMENT IN INDUSTRIAL PARK AT VSIP HAI PHONG 33 3.1 Factors Affecting Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong 33 3.1.1 Current Market Environment 33 3.1.2 Target Customers 34 3.1.3 Competitors 35 3.2 Recommendations for Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong 37 3.2.1 Service Strategies 37 3.2.2 Price Strategies 39 3.2.3 Place (Distribution) Strategies 40 3.2.4 Promotion Strategies 40 CONCLUSION 43 REFFERENCES 44 Name: Tran Cong Thanh Class: GMA02 Page iv Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong LIST OF ABBREVIATIONS AEC Asia Economic Community FDI Foreign Direct Investment HEZA IP MICE TPP VSIP HP Name: Tran Cong Thanh Hai Phong Economic Zone Authority Industrial Park Meetings, Incentives, Conferences, and Events Trans-Pacific Partnership Agreement Vietnam – Singapore Industrial Park Hai Phong Class: GMA02 Page v Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong LIST OF TABLES Table 1: The investment capital in industrial park in the period from 2012 to 11/2015 18 Table 2: The list of land prices of industrial zones in Hai Phong 22 Table 3: The promotional situation of VSIP Hai Phong in the period from 2012 – 2014 24 Table 4: The investment capital attraction by country 29 Table 5: The top big investors in Hai Phong 30 Table 6: The tax incentives in VSIP Hai Phong 34 Table 7: The industries benefit from TPP 38 Name: Tran Cong Thanh Class: GMA02 Page vi Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong LIST OF FIGURES Figure 1: The marketing environment Figure 2: The buying decision making process Figure 3: The Ansoff Matrix Figure 4: The pricing strategies 10 Figure 5: The VSIP Projects 13 Figure 6: The strategic location of VSIP Hai Phong 15 Figure 7: Ready-built factory in VSIP Hai Phong 16 Figure 8: Organization chart of VSIP Hai Phong Co., Ltd 17 Figure 9: The investment capital in industrial park in the period from 2012 to 11/2015 18 Figure 10: The industrial park tenants by country 19 Figure 11: The industrial park tenants by industry 20 Figure 12: The list of land prices of industrial zones in Hai Phong 23 Figure 13: The promotional situation of VSIP Hai Phong in the period from 2012 – 2014 25 Figure 14: VSIP Hai Phong IP Land Availability July 2015 31 Figure 15: Top 10 foreign investors in Vietnam in 2014 35 Figure 16: The distribution of big industrial zones in Hai Phong and Hai Duong 36 Name: Tran Cong Thanh Class: GMA02 Page vii Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong INTRODUCTION Necessity The Vietnamese economic crisis in 2010 has led to the increase in interest rate Ithas led many Vietnamese enterprises including VSIP Hai Phong‟s potential customers and current customers decline and impact significantly on attracting investors for the company Besides, the year of 2010 also occurred many economic fluctuations in the world Meanwhile, VSIP Hai Phongjust started conducting business and competition has growingly become bigger and bigger In fact, there are 10 per18 Hai Duong Industrial Zones received government permission are already operated with occupancy rate 99.25 % for Nam Sach Industrial Zone, 87 % for Dai An Industrial Zone, 71,67 % for Tan Truong Industrial Zone and 100% for Phuc Dien Obviously, the success of these industrial zones and the new establishment of other industrial zones are undeniable Apparently, competition is one of the basic economic laws of market economy and as a tool to promote economic development, thereby creating strong enterprises to stand firmly on the market Besides, the industrial zones in the city is increasing, so the competition becomes tougher, requiring industrial park management of VSIP Hai Phongshould have throughout marketing strategies to effectively attract investment Research Object In this dissertation, the variety of basis for marketing will be pointed out to evaluate the situation of marketing activities to attract investment at VSIP Hai Phong Limited Company Based on this analysis, the dissertation will give some recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong It is not only beneficial for company, but also helps improve Hai Phong economy The responsibility of author is answer these questions below:  What is overview of marketing and marketing strategy?  What is the status of marketing activities at VSIP Hai Phong?  What are the recommendations for marketing strategies to attract more investment in industrial park at VSIP Hai Phong? Name: Tran Cong Thanh Class: GMA02 Page Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong Research Scope The dissertation are researched at VSIP Limited Company, located at Thuy Nguyen District, Dinh Vu-Cat Hai Economic Zone, Hai Phong City, Vietnam Besides, author also focuses to investigate some competitors and current customers of company Data was collected in the period of years from 2010 to 2014 and recommendations for period of years from 2015 to 2020 Methodology The research within the paper is basically based on qualitative and quantitative methods During the internship period, the marketing strategies to attract investment into industrial park at VSIP Hai Phongis summarized through real observation and small talks to get information from company‟s directors, officers and employee Regarding to quantitative method, the detailed data will be collected from documents and reports of the company After that, the data will be calculated, clarified into different categories and evaluated The analysis will be supported with descriptions from bar charts and tables Qualitative method is applied to find out the basis of marketing and marketing strategy, which will be selected from reports, research papers, proposals and articles in the internet Name: Tran Cong Thanh Class: GMA02 Page Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong CHAPTER 1: THE LITTERATURE REVIEW OF MARKETING AND MARKETING STRATEGIES 1.1 General Understanding about Marketing 1.1.1 Definition of Marketing Marketing is human activity directed at satisfying needs and wants through exchange process(Kotler, 1980) The aim of marketing is to make selling superfluous The aim is to know and understand the customer so well that the product or service fits him and sells himself (Drucker, 2009) Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably (CIM Definition, 2009) 1.1.2 Definition of Marketing Strategy A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage(Kazoo Associates, 2014) 1.2 Factors Affecting Marketing Strategy 1.2.1 Marketing Environment The marketing environment of the organization consists of elements which are uncontrollable or controllable by the management Firms need to understand their marketing environment so that they can make the most of positive factors and manage the impact of negative factors, as well as adjusting their marketing strategy properly A firm's marketing environment can be divided into two parts: micro-environment and macro-environment Name: Tran Cong Thanh Class: GMA02 Page Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong overseas and inside Vietnam As the result, VSIP HP is successful to attract one of the big investors in to Hai Phong coming from Japan namely Nipro Pharma Table 5: The top big investors in Hai Phong (Source: Marketing Department, VSIP Hai Phong) No Company name Nationality Activities Investment capital (USD) LG Electronics Korea Mobile communications, home entrainment, home appliances Huyndai Amco Vina (Song Gia) Korea Construction, golf course apartment, club house 720,836,000 Bridge Stone Corporation Japan Multinational auto & truck parts manufacturer 574,800,000 Chinfon Cement Taiwan Produce cement 450,000,000 Nipro Pharma Japan Pharmaceutical, medical injection equipment 250,000,000 1,500,000,000 2.3.2 Weaknesses 2.3.2.1 Service Strategies Slow land clearance:Nevertheless, there are some shortcomings in marketing activities to attract investors coming to VSIP Hai Phong Land clearance is quite slow which cannot meet demand of investors coming to VSIP Hai Phong It is also the most difficult issue facing to many critics and objections from local residents Land clearance requires move cemetery of three communes, so many local people disagree this movement due to spirituals Moreover, local people ask VSIP authorities to compensate for land at the price of VND 18,000/m² which is an attractive price for poor residents Furthermore, if local people want to use power and water of VSIP HP, they have to pay money, so many people don‟t want to move to another place, so land clearance is extremely difficult This matter influenced significantly to investors who may be afraid of trouble with local community, so they tend to choose other industrial zones In fact, until July 2015, the occupied rate is 54.06 % Obviously, after fouryear-operation, marketing team had made various effort to attract many potential Name: Tran Cong Thanh Class: GMA02 Page 30 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong investors Even through, there are total 137.36 land for lease that is mainly due to slow land clearance So it still cannot meet demand of tenants who really want to hire land for conducting business Figure 14: VSIP Hai Phong IP Land Availability July 2015 (Source: Marketing Department, VSIP Hai Phong) 2.3.2.2 Price Strategies High price for prepared land: In comparison with other industrial zones, VISP Hai Phong set highest price for prepared land with 90$ US / m² Even through, it is located in DinhVu- Cat Hai Economic Zone and receives many tax incentives, but investors‟ first impression is not good about VSIP Hai Phong and prefer another industrial zones which are lower price without fully-integrated infrastructure But it is suitable for their small budget to invest into another industrial zones in the longterm business 2.3.2.3 Place (Distribution) Strategies Owing to using intensive distribution strategy, the demand will fluctuate and your employees will sometimes be overloaded and at other times have little work Therefore, it may cause counterproductive and inefficient in business 2.3.2.4Promotion Strategies Name: Tran Cong Thanh Class: GMA02 Page 31 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong Insufficient high skilled employees: Human resource is an important element in marketing strategy who is in charge of controlling and managing all marketing activities Obviously, the numbers of employees who can speak bilateral languages in the company are quite low Because, the quantity of Korean, Taiwan and Japanese tenants are increasing significantly, it requires that employees should be able to speak bilateral languages in order to market company branch more effectively Therefore, the company should have clear strategy to attract employees who are not only good at specialized knowledge but also language competence Although the main target of recruitment process in VSIP Hai Phong is graduated students, company‟s popularity among students is not high Name: Tran Cong Thanh Class: GMA02 Page 32 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong CHAPTER 3: RECOMMENDATIONS FOR MARKETING STRATEGIES TO ATTRACT INVESTMENT IN INDUSTRIAL PARK AT VSIP HAI PHONG 3.1 Factors Affecting Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong 3.1.1 Current MarketEnvironment 3.1.1.1 Economic and social environment Viet Nam‟s deeper integration into the global economy, especially via such a comprehensive free trade agreement as the Trans-Pacific Partnership (TPP) or the establishment of the ASEAN Economic Community (AEC), brings various opportunities and challenges in different industries such as textile, footwear, agriculture, fishery, logistics and forestry These trade agreements also affect to VSIP Hai Phong to some extent Firstly, VSIP Hai Phong can attract more investment with the trend of moving FDI Many factories in China want to relocate in TPP members in order to benefit from TPP Because Vietnam is the best choice with cheap and abundant labor force and VSIP Hai Phong (IP) is the first consideration due to tax incentives of Dinh Vu economic zone, favorable location Secondly, the demand for office and housing for foreigners and workers will increase significantly Meanwhile, The AEC, which will be formed at the end of 2015, is considered a historic milestone in ASEAN regional integration, lifting the region's economic connectivity to a new height 3.1.1.2 Political environment Vietnamese government is very cautious to change investment laws, because it might lead to investor‟s dissatisfaction The tax incentives such as corporate income tax, personal income tax rate Because, VSIP locates inside Dinh Vu - Cat Hai Economic Zone, it also receives a great deal of tax incentives as table below: Name: Tran Cong Thanh Class: GMA02 Page 33 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong Table 6: The tax incentives in VSIP Hai Phong (Source: Hai Phong Economic Zone Authority, 2014) INCENTIVE CATEGORIES INCENTIVE RATES CORPORATE INCOME TAX (CIT) CIT HOLIDAY CIT REDUCTION PERSONAL INCOME TAX RATE (PIT) VSIP HAI PHONG OUTSIDE IP 10% for first 15 years 22% from Jan 1st, 2014 20% from Jan 1st, 2016 04 years Nil 50% for subsequent 09 years Nil 50% reduction Full Payment In addition, Hai Phong Economic Zone Authority (HEZA) also has strict management to control the process of manufacturing HEZA mainly focus on controlling wastewater treatment, toxic substances treatment and process of production to ensure that is in consistent with environment criteria 3.1.2 Target Customers It is apparently seen form the report for the top 10 foreign investors in Vietnam in 2014 that Japanese and Korea is the target customer of VSIP Hai Phong Therefore, the customer analysis is very crucial for marketing strategy Most of Japanese and South Korean FDI projects in Vietnam are 100% foreign capital investment, followed by Joint Venture Company (JVC) The rest is investment projects as contract According to report, the number one foreign investor in Vietnam is Korea with 37 billion US$ registered capital and 4,110 projects The follower is Japan with the same registered capital with the former and the numbers of projects is lower with 2.477 projects Meanwhile, Singapore, Taiwan, Hong Kong are the potential foreign customers Name: Tran Cong Thanh Class: GMA02 Page 34 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong Figure 15: Top 10 foreign investors in Vietnam in 2014 (Source: Marketing Department, VSIP Hai Phong) 3.1.3 Competitors In fact, the numbers of industrial zones are increasingly grow up with larger scale and investment In Hai Phong, there are three main competitors of VSIP Hai Phong namely Trang Due Industrial Zone, Nomura Industrial Zone and Dinh Vu Industrial Zone Trang Due Industrial Zone has total area 364.02 with the land occupancy rate is 97 % Currently, Trang Due IZ has attracted totally 35 projects with total investment capital is 667 million USD In general, Trang Due has a good location with convenient transportation, along national highway 10 connecting to Thai Binh - Hai _Phong-Quang Ninh With big investor – LG, Trang Due has the advantages to attract more supporting industries However, Trang Due has some weaknesses such as insufficient management of inspection and sanction, site clearance issue, tax incentive (only investors with the TIC of over US $10 mil per can receive the special investment incentives) and environmental issues Name: Tran Cong Thanh Class: GMA02 Page 35 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong Dinh Vu Industrial Zone has total area 1463 with the land occupancy rate is 80,1 % Currently, Dinh Vu IZ has attracted totally 52 tenants with total investment is very huge Overall, Dinh Vu has a great location advantages dues to the easy access to port facilities and logistic It has a good utilities system and infrastructure and Dinh Vu can attract various types of industries It has the great advantages by having big investor – Bridgestone (easy to attract more supporting industries) Dinh Vu also provided accommodation for employees Nomura Hai Phong Industrial Zone has total industrial land area 123 and currently is fully-occupied The numbers of tenants is 54 enterprises (48 Japanese tenants) Besides, some big industrial zones in Hai Duong such as Dai An Industrial Zone, Tan Truong Industrial Zone, Lai Cach Industrial Zone, Phuc Dien Industrial Zone and Thang Long Industrial Park II are concerned Figure 16: The distribution of big industrial zones in Hai Phong & Hai Duong (Source: Marketing Department, VSIP Hai Phong) Name: Tran Cong Thanh Class: GMA02 Page 36 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong 3.2 Recommendations for Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong 3.2.1 Service Strategies Firstly, VSIP Hai Phong should continue to develop its strengths in terms of exclusive service due to its convenience in terms of strategic location, utilities and amenities The marketing team should keep update hottest information from mega infrastructures including: Ha Noi – Hai Phong Highway, Ha Long – Hai Phong Highway, Cat Bi International Airport, Government and Administration Center and Vu Yen Eco Island and Lach Huyen International Seaport to provide useful information for visitors It can be collected through internet, newspapers or survey teams, social media or any other means of coverage Besides that, marketing team also has to analyze clearly advantages and disadvantages of these mega infrastructures, as well as how it affects to VSIP HP to present for investors By this way, the investors can comprehend the potential of a strategic location of VSIP Hai Phong which is right place to conducting their business and to build up their office and factories to determine whether it is a worthy investment or not Moreover, VSIP Hai Phong can ask support from Hai Phong authorities to build up Nguyen Trai Bridge in order to shorten the way to other mega infrastructures and city center The company should have strict control, management and frequently check up its quality and safety standard of fully-integrated infrastructure and utilities including ready built factories, synchronized power supply system, VSIP power plant, sewage treatment plant, efficient drainage system, telecommunication lines, internal roads, 24/24-hour security, industrial cleaning, maintenance and landscape to ensure the competitive advantage of VSIP Hai Phong In terms of land clearance, there are two important strategies to deal with this issue First of all, VSIP HP can give some proposes to Hai Phong authorities to help the company to support land clearance to cater for visitors‟ needs by resolving complaints of local people and enact appropriate policies Hai Phong authorities should appeal investors, as well as widening and upgrading ports and road to increase the competitive advantages in the field of shipping and logistics In Name: Tran Cong Thanh Class: GMA02 Page 37 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong addition, the company should have clearly detail campaign plan to persuade local people and give them equivalent compensation, as well as creating favorable conditions for resettlement Company can project a new area for people live and use fully integrated-infrastructure of the company such as water supply, electricity, tele communication lines with the same price as tenants Secondly, VSIP Hai Phong should keep searching, investigating and analyzing for other potential markets such as Korea, Taiwan, Hong Kong, Singapore and Thailand, together with maintaining the traditional customers such as Vietnamese tenants and Japanese tenants Especially, VSIP Hai Phong can take advantage of Trans-Pacific Partnership (TPP) to attract more investment into industrial park Obviously, TPP impacts significantly on Vietnam and VSIP Hai Phong in various industries with low barrier trade, high quality labor force, technology transference, less complicated procedures Regarding to VSIP Hai Phong, TPP will help the company attract more investment with the trend of moving FDI Because many factories in China want to relocate in TPP members in order to benefit from TPP, whereas Vietnam is the best choice with cheap and abundant labor force Hence, VSIP Hai Phong (IP) is the first consideration due to tax incentives of Dinh Vu economic zone and favorable location: coastal area, near port & airport & highway Especially, VSIP Hai Phong should search for customers who are beneficial from five industries as table below: Table 7: The industries benefit from TPP (Source: Marketing Department, VSIP HP) INDUSTRIES BENEFITS TERMS AND CONDITIONS Fishery • TPP can help Vietnam to abandon the anti-dumping duty from the U.S • Import tax for spawn, octopus, tuna, reduce from 6.4 - 7.2 % to 0% • Require high standard in labor, environment Port & logistics • Enjoy benefit indirectly as strong commercial flow leads to transport & logistic services • Require to increase port‟s infrastructure and facilities, together with upgrading and dredging Name: Tran Cong Thanh Class: GMA02 Page 38 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong • Enjoy favorable tax rate from TPP countries • Must include at least 55% domestic in total value and only allowed to import maximum 45% material from foreign countries Textile and footwear • Import tax will be reduced gradually from approximately 17-20% to 0% • Growth rate of textile export from Vietnam to U.S market will increase from 7% to 15%/year • Agriculture • TPP creates huge opportunity for agricultural cooperation between VN and japan (symbiotic agriculture) • Strict rule of hygiene and safety of food Forestry Materials must be imported from one or more TPP members or produced itself 3.2.2 Price Strategies Because it is really difficult to reduce the price and the company also aims to use premium pricing strategy, so the company should increase the quality of services to make it become exclusive service as mentioned before Besides, the marketing team also plays a crucial role to help investors understand the value of prepared land in a strategic location The company is located in Dinh Vu – Cat Hai Economic Zone, so even the price is even really high at 90 US$/ m², however, investors may enjoy incentivestax: Example of CIT incentive in VSIP Hai Phong: - Incentive Rate: 10% for 15 Years - Exemption: 04 Years (commencing from the 1st Profitable Year) - Reduction: 50% for 09 Subsequent Years - CIT will be reduced from 22% to 20% from Jan 1st, 2016 Name: Tran Cong Thanh Class: GMA02 Page 39 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong Nevertheless, the price can go down a little bit may be 85 US$ for land plots where is situated at inconvenient location.It is depends on the negotiation between marketers and tenants sometimes 3.2.3 Place (Distribution) Strategies The company may set up agents to marketing their services in other countries who are potential customers such as Japan, China, Korea, Tai Wan, Hong Kong, Singapore and Malaysia These sales professionals either act as individual contractors or work for an agency The agents will provide customers for VSIP HP services and take a commission Depending on the company‟s agreement with the agents, they may offer company‟s services exclusively or have a number of service providers that they offer to customers VSIP HP still have good customer contacts when they carry out the work, but they have no information about the customers that didn't order thier services By this way, it can reduce great amount of works for marketers and increase the number of customers significantly 3.2.4 Promotion Strategies Firstly, VSIP Hai Phong should keep looking for and attending various workshops in Vietnam and overseas to catch every single opportunity to promote its branch name By this way, they can meet potential investors in all over world and Name: Tran Cong Thanh Class: GMA02 Page 40 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong tighten relationship with them Word of mouth is also the good way to market the company‟s image Meetings, Incentives, Conferences, and Events (MICE)is one a good suggestions It is a type of tourism workshop in which large groups including potential investors, usually planned well in advance, are brought together for a particular purpose MICE events are usually centered on a theme or topic and are aimed at a professional, academic or trade organization or other special interest group Secondly, VSIP Hai Phong can actively organize workshops and using the relationship and experience of Becamex IDC Corporation and Sembcorp Development to appeal investors from potential markets such as Korea, Japan, Taiwan, Hong Kong, Singapore, Thailand to discuss about topic namely industrial park and township Thirdly, the growing popularity of social media sites is extraordinary therefore VSIP should pay more attention on online marketing by using websites, YouTube, Facebook and Twitter, etc In addition, VSIP Hai Phong, VSIP Binh Duong, VSIP Bac Ninh, VSIP Quang Ngai, VSIP Nghe An, VSIP Hai Duong need strong interaction between each other to support and recommend for investors That will help investors have more choice for setting up their business instead of choosing competitors outside such as Vietnam - Singapore Industrial Park, South Dinh Vu Industial Park, Trang Due Industrial Zone, Nomura Hai Phong Industrial Zone, Dinh Vu Industrial Zone, South Cau Kien Bridge Industrial Park, Trang Cat Industrial Park Eventually, VSIP Hai Phong should focus on seeking excellent employees who are not only good at specialized knowledge but also have competence in languages such as Korean, Japanese, China, etc by improving quality of recruitment process The company should consider some following recommendations: - Promote company‟s reputation and image among students so that they can be attracted and apply to the job Create more internship scholarships for junior students because this can be seen as one kind of advertisement Name: Tran Cong Thanh Class: GMA02 Page 41 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong - Pay more attention to occupational skills rather than language ability to ensure the progress and effectiveness of work - Annually HR department should hold a meeting to evaluate the recruitment process, point out the good points and bad points, and draw experience to avoid similar mistakes in the next times Name: Tran Cong Thanh Class: GMA02 Page 42 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong CONCLUSION In the market-oriented economy, the role of marketing is increasingly important with manufacturing activities of enterprises Marketing is the bridge between enterprises and markets which ensures the business activities as marketoriented So the enterprises may make right final decision based on markets and customer needs The growing number of competitors domestically and internationally requires enterprises have careful and detailed marketing strategy to achieve high productivity In the developed countries, the economy is gradually shift from industrial economy to service economy and spread out developing countries Vietnam is one of countries that will receive this movement The FDI attraction is increasingly difficult and has fierce competition amongst cities and countries Therefore, with the aim of attracting foreign investment in Hai Phong City, enhancing the quality of life, creating job opportunities for people, VSIP Hai Phong need to put all efforts to attract investment into industrial park effectively, achieving 100% occupancy rate Hence, the company should keep develop its existing strengths and minimize weaknesses and have appropriate marketing strategy to gain more success in the future Name: Tran Cong Thanh Class: GMA02 Page 43 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong REFERENCES [1] CIM Definition 2009.Marketing and the 7Ps: A brief summary of marketing and how it works 2009 [2] Drucker, Peter 2009.The Grandfather of Modern 2009 [3] Epimetheus.Elements of Macro-Environment & its impact over marketing of Bangladeshi goods & services s.l : Department of Finance Jagannath University [4] Foreign Investment Department & Ministry of Planning and Investment 2012.The proposal to evaluate the reality of foreifn investment and orientation until 2020 in Viet Nam 2012 [5] Hai Phong Economic Zone Authority 2014.The summary of investment incentives on some types of taxes in the economic zone Hai Phong : s.n., 2014 [6] Kazoo Associates 2014.Definition: Marketing Strategy 2014 [7] Kotler 1980 Marketing Management: Analysis, Planning and Control 1980 [8] Professional Academy 2014.Marketing Theories 2014 [9] Riley, Jim 2015.Marketing & Buyer Behaviour - the Decision-Making Process 2015 [10] Small Business Tool Kit 2014 Market Analysis s.l : University of Western Sydney , 2014 [11] Team FME 2013.Ansoff Matrix - Strategy Skills s.l : Free Management Ebooks, 2013 [12] VSIP HP Marketing Department 23 June 2015 The Industrial Park Survey about VSIP Competitors 23 June 2015 Name: Tran Cong Thanh Class: GMA02 Page 44 ... RECOMMENDATIONS FOR MARKETING STRATEGIES TO ATTRACT INVESTMENT IN INDUSTRIAL PARK AT VSIP HAI PHONG 33 3.1 Factors Affecting Marketing Strategies to Attract Investment in Industrial Park at VSIP Hai Phong. .. 12 Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong CHAPTER 2: THE MARKETING STRATEGIES TO ATTRACT INVESTMENT IN INDUSTRIAL PARK AT VSIP HAI PHONG. . .Recommendations for marketing strategies to attract investment in industrial park at VSIP Hai Phong ACKNOWLEGEMENT In order to finish my dissertation Recommendations for marketing strategies