Some solutions to improve sales and promotions in vinacomin – mining chemical holding corporation limited

MINISTRY OF FINANCE ACADEMY OF FINANCE Student: Nguyễn Thị Ngọc Đan Class: CQ47/51.03 Topic: “Some solutions to improve sales and promotions in Vinacomin – Mining Chemical Holding Corporation Limited” GRADUATION THESIS Major: English for Finance and Accounting Hanoi, Year 2013 MINISTRY OF FINANCE ACADEMY OF FINANCE Student: Nguyễn Thị Ngọc Đan Class: CQ47/51.03 Topic: “Some solutions to improve sales and promotions in Vinacomin – Mining Chemical Industry Holding Corporation Limited” GRADUATION THESIS Major: English for Finance and Accounting Supervisor: MBA Nguyễn Thị Thùy Trang Hanoi, Year 2013 DECLARATION I hereby declare that this thesis is my own work and effort and that has not been submitted anywhere for any award Where other sources of information have been used, they have been acknowledged The data and results described in the thesis are derived from the actual situation of the practice company Hanoi, 06th May, 2013 Student Nguyễn Thị Ngọc Đan Nguyễn Thị Ngọc Đan – CQ 47/51.03 i ABSTRACT In the modern economic world, especially when the number of bankrupt enterprises is rising, improving sales and promotions have become more and more important, for every company in general, and for Vinacomin – Mining Chemical Industry Holding Corporation Limited in particular Therefore, my thesis with the topic “Some solutions to improve sales and promotions in Vinacomin – Mining Chemical Industry Holding Corporation Limited” will point out the importance of having a healthily and effective strategies for promoting product consumption The main content is reflected in three chapters chapter is about the literature review for every company, mainly showing definitions, main objectives and roles of sales; factors affecting the sales In chapter 2, by taking a scenario in MICCO, the thesis focuses on a real situation of sales and sale promotions From that, chapter points out the company’s strengths and weaknesses, its orientations and objectives, finally suggests some solutions to improve the current sales and promotions in MICCO In conclusion, the thesis has already been complete in comparison with proposed objectives and targets in the introduction Nguyễn Thị Ngọc Đan – CQ 47/51.03 ii ACKNOWLEDGEMENT Firstly, I am deeply indebted to my supervisor Ms Nguyen Thi Thuy Trang whose help and encourage me in all the time of research for and writing of this thesis I also want to thank MICCO for giving me permission to commence this thesis in the first instance, to the necessary research work and to use departmental data I have furthermore to thank the former Vice President and Chief Accountant as well as all seniors at MICCO who gave and confirmed this permission and encouraged me to go ahead with my thesis My friends from Foreign Language Faculty also supported me in my thesis I want to thank them for all their help, support, interest and valuable hints Especially, I would like to give my special thanks to my family whose patient love enabled me to complete this work Finally, because of limitation of time and knowledge, mistakes are unavoidable, so I wish to have more opportunities I also wish to receive more contribution and suggestions to make my thesis better Nguyễn Thị Ngọc Đan – CQ 47/51.03 iii LIST OF ABBREVIATIONS No Abbreviation Full phrase B Billion CPI Consumer Price Index Cu.cm Cubic centimeter Dept department GAET General Army of Economic and Technology GDP Gross Domestic Product HM Human Resources IEM Industrial Explosive Materials M Million MICCO Vinacomin - Mining Chemical Industry Holding Corporation Limited 11 No Number 12 Ppl people 13 SNG 14 Socio-economic environment Social and economic environment 15 VND Vietnam Dong 10 Nguyễn Thị Ngọc Đan – CQ 47/51.03 iv TABLE OF CONTENT Part I: Introduction 1 Rationale Aims of the study Subjects and scope of the study 3.1 Subjects of the study 3.2 Scope of the study Introduction of the main contents Part II: Main contents Chapter 1: Literature review for sales and promotions of industrial enterprises 1.1 Definitions, objectives, and roles of sales 1.1.1 Definitions 1.1.2 Main objectives of the sales 1.1.3 The main roles of sales 1.1.3.1 For enterprise 1.1.3.2 For society 1.2 Main factors affecting the sales 1.2.1 The external factors 1.2.1.1 The socio-economic environment 1.2.1.2 The political and legal environment 1.2.1.3 Customers Nguyễn Thị Ngọc Đan – CQ 47/51.03 v 1.2.1.4 Suppliers 1.2.1.5 Competitors 10 1.2.2 The internal factors 10 1.2.2.1 Group of factors about the business’s products 10 1.2.2.1.1 Quality of products 10 1.2.2.1.2 Price of products 11 1.2.2.2 Group of factors about market research activites and activites to support the sale 11 1.2.2.2.1 Market research activities of the enterprise 11 1.2.2.2.1.1 Making common market research 12 1.2.2.2.1.2 Making market forecast 13 1.2.2.2.2 Activities to support the sale 14 1.2.2.2.2.1 Building agents 14 1.2.2.2.2.2 Participating in the associations and organizations 14 1.2.2.2.2.3 Advertising products 15 1.2.2.3.2 Human Resources 15 1.2.2.3.3 Enterprise’s financial situation 16 Chapter 2: Current situation of the sale and promotions in MICCO 17 2.1 Overview about MICCO 17 2.1.1 History 17 2.1.2 Business field and Products 18 2.1.3 Organizational structure 20 Nguyễn Thị Ngọc Đan – CQ 47/51.03 vi 2.2 Current situation of MICCO’s sales in three fiscal years 2010, 2011 and 2012 21 2.2.1 Current situation of factors affecting MICCO’s sales 21 2.2.1.1 The external factors 21 2.2.1.1.1 The socio-economic environment 21 2.2.1.1.2 The political and legal environment 22 2.2.1.1.3 Customers 23 2.2.1.1.4 Suppliers 24 2.2.1.1.5 Competitors 24 2.2.2 The internal factors 25 2.2.2.1 Group of factors about MICCO’s products 25 2.2.2.1.1 Quality of products 25 2.2.2.1.2 Prices of products 28 2.2.2.2 Group of factors about MICCO’ market research activities and activities to support the sale 30 2.2.2.2.1 Market research activities 30 2.2.2.2.1.1 Making common market research 30 2.2.2.2.1.2 Making market forecast 31 2.2.2.2.2 Activities to support the sale 32 2.2.2.2.2.1 Building agents 32 2.2.2.2.2.2 Participating in the activities of the association and organizations 33 2.2.2.2.2.3 Advertising products 34 Nguyễn Thị Ngọc Đan – CQ 47/51.03 vii 2.2.2.3 Group of factors about MICCO’s resources 35 2.2.2.3.1 Physical and technical foundations 35 2.2.2.3.2 Human Resources 35 2.2.2.3.3 The financial situation 37 2.3 General conclusion about consuming products of MICCO 39 Chapter 3: Some solutions to improve the sales and promotions in MICCO 40 3.1 Evaluation of sales and promotions in MICCO 40 3.1.1 Strong points 40 3.1.1.1 About the external factors 40 3.1.1.2 About internal factors 40 3.1.1.2.1 For group of factors about MICCO’s products 40 3.1.1.2.2 For group of factors about MICCO’s market research activities and activities to support the sale 40 3.1.1.2.3 For group of factors about MICCO’s resources 41 3.1.2 The weaknesses and reasons 41 3.1.2.1 About external factors 41 3.1.2.2 About internal factors 41 3.1.2.2.1 For group of factors about MICCO’s products 41 3.1.2.2.2 For group of factors about MICCO’s market research activities and activities to support the sale 42 3.1.2.2.3 For group of factors about MICCO’s resources 42 Nguyễn Thị Ngọc Đan – CQ 47/51.03 viii Graduation thesis Chapter 3: Some solutions to improve the sales and promotions in MICCO 3.1 Evaluation of sales and promotions in MICCO 3.1.1 Strong points After nearly 50 years of building and development, in overview, MICCO took their advantages effectively to promote the product consumption, meet the tasks the government and superior assigned, achieve remarkable results These are shown clearly by some strong points as follows 3.1.1.1 About the external factors Due to manufacturing and supplying the special products, the competitors are few, the market for sale are wide Therefore, the company can build the number of relatively big traditional customers, and there are many opportunities to reach out and attract more new customers, increase the sales significantly 3.1.1.2 About internal factors 3.1.1.2.1 For group of factors about MICCO’s products The company really efforted to improve their traditional products and make some new products This shows their profound acknowledgement about the changes of supply and demand relation and other fluctuations in the market 3.1.1.2.2 For group of factors about MICCO’s market research activities and activities to support the sale The market research activities are promoted strongly, the company can grasp of consumers’s demand, then plan production realizably The agent system is distributed throughout all over the country, thus MICCO can ensure to serve the nationwide customers Nguyễn Thị Ngọc Đan – CQ 47/51.03 40 Graduation thesis 3.1.1.2.3 For group of factors about MICCO’s resources The infrastructure systems are increasingly invested, so they increase production efficiency, contribute to make production costs lower, improve and enhance product quality Besides, with the team of experienced labors and the ability to raise capital for reinvestment and reproduction they can meet the needs of the market well All of them create positive impacts on the development, success and reputation of MICCO, increase competition of them on the market 3.1.2 The weaknesses and reasons 3.1.2.1 About external factors In the general context of the world, the socio-economic and political-legal conditions fluctuate strongly, they limit development of both the country and the enterprises as MICCO Being one of two businesses licensed by the state to manufacture and supply IEM, the competitors of the company are few but it is powerful and is more advantageous than the supply of materials and small contracts, MICCO has to face with many difficulties The company must to import raw materials and even the explosives from abroad to meet domestic demand Therefore, the production cost is a big problem for the company 3.1.2.2 About internal factors 3.1.2.2.1 For group of factors about MICCO’s products Although the company carried out the basis of innovation and modern production lines, the pressures from raw material costs make product prices very Nguyễn Thị Ngọc Đan – CQ 47/51.03 41 Graduation thesis high Besides, MICCO really attempted to improve their product quality, but most of them still have limitations This is a big challenge for the company 3.1.2.2.2 For group of factors about MICCO’s market research activities and activities to support the sale MICCO carried out the market research activities well; however, with the consuming direct channel, advertising the company’s products are simple, limits the chances to access the potential customers 3.1.2.2.3 For group of factors about MICCO’s resources As analyzed in the real financial situation of the enterprise, ability to raise capital of MICCO is big, but raising capital itself is difficult; therefore, they will have to face with risks if these sources are trouble 3.2 Orientation, objectives consumption in MICCO and some suggestions for promoting To maintain the role as a leader in the Vietnamese industrial explosive materials, the leadership of MICCO always concern about their orientation and objectives in the future 3.2.1 Orientation As a new convert into a member limited liability company it means that being independent of economic accounting and responsibility for the results of their business are more and more; from the beginning of this transformation, the leaders promptly set out the goals and the objectives for the company as well to constantly evolve, go up a comprehensively strong business Being the manufacturing and trading business, MICCO is difficult to deal with issues about external factors impacting its sales and sale promotions especial Nguyễn Thị Ngọc Đan – CQ 47/51.03 42 Graduation thesis political and legal environment, but it does not mean that they can not affect them to promote their product consumption Through out the strategies to deal with weaknesses and developing strengths of business’s leadership, these affects are not infeasible Because of pursuing these ideas, the general orientation and the goals of the company as follows 3.2.1.1 About their products  Perfect the production of industrial explosives and network of professional providers to timely satisfy customer requirements  Invest to research and produce several types of explosives, explosive accessories  Invest to research for manufacturing materials  Meet the domestic demand and proceed to export 3.2.1.2 About market research activities and activities to support the sale  Promote market research to catch every changes of both the world economy and the national economy, then build plans for production, distribution and selling activities  Bulid attracted agents  Promote advertising activites through intermediary sellers 3.2.1.3 About the company’s resources  Enhance and perfect the current organizational structure, establish new organizations  Layout labor officials reasonably to improve the quality of work of each organization  Take care and protect legitimate interests of workers, ensure employment and stable income for the overall development of the company Nguyễn Thị Ngọc Đan – CQ 47/51.03 43 Graduation thesis  Being more active about capital 3.2.2 Objectives 3.2.2.1 For the products Diversifying products and choosing the key product are seemed to be strategies being separating or even opposing, but actually it is not Diversification is a form of commonly developing products for businesses today Under this method, being beside with the traditional products, businesses can expand his business into one of the other fields relating to his sectors and traditional field or not Recognizing the significance of this strategy, MICCO has been and will continue to pursue it Specifically, the company develops the following activities:  Produce, blend and test the industrial explosives  Import and export of the industrial explosives and raw materials for producting these goods  Preserve, pack and supply the industrial explosives for the national reserve Besides,  Make blasting services required by customers  Product and supply of electric wire, packaging, paper for living activities, construction materials etc  Design, construct traffic and irrigational projects Expanding the business is a good intention; however, thoroughly graspingness ideas of Vietnamese industrial Coal & Mining Group as well as the company Nguyễn Thị Ngọc Đan – CQ 47/51.03 44 Graduation thesis leadership, MICCO has focused on developing the explosives being his primary product Especially, in 2013, the company puts a major concern about implementation new project for Amon Nitrat factory with capacity of 200,000 tons per year The objectives for products of MICCO is emphasized following criteria: Criteria Unit Objectives Growth rate Percent 4.5 Sales Thousand tons 110 Turnover Million VND 5,678 Price of products Percent (10) 3.2.2.2 For the market research activities and activities to support the sale In the current context, when the world economy and the domestic economy as well are more and more volatile, the company’s leadership always focus on the issues being the most relevant to activities as follows  Promote investment in market research and forecast activities for annual investment over billion VND  Build attracted agents in some potential provinces especial Bac Giang, Quang Binh, Cao Bang  Spend on advertising activities on multimedia billion VND Nguyễn Thị Ngọc Đan – CQ 47/51.03 45 Graduation thesis 3.2.2.3 For the company’s resources With the goal of building and developing a team of professional officials and employees, the company leaderships focus on many activities to the organizational structure as follows  Organize retraining for all staff in the company, especially the specialized English training courses and English communication for key staff, official computerization classes to perform software management  Build a new office system, equip multiple computers and other working tools to create a favorable and safe working environment for the staff, at the same time, equip protective clothing and other necessary accessories workers in production units  Give the staff to survey curent situation in the units  Hold mechanism by tenure for the key managers to encourage working spirit and dedication of the entire staff  Establish and raise Welfare fund to reward employees, officers having contributions to the company  Establish and maintain activities of the Youth, facilitate to help them train themselves and have opportunities to improve the understanding of the sector's activities  Organize tours to the collective staff and employees giving them many opportunities to communicate with each other and with other units Nguyễn Thị Ngọc Đan – CQ 47/51.03 46 Graduation thesis Moreover, to reduce price of products, the company still try to improve the production lines, encourage initiatives of all staff and workers, especial invest ten billion VND for innovation Simple Anfo and Water Resistane Anfo and more than twenty billion for building AMON NITRAT factory with expected capacity about two hundred billion per year 3.2.3 Some suggestions for promoting product consumption in MICCO 3.2.3.1 For solutions about the products With the goals diversificating the products and selectting the key product, the company not only focuses on designing new products but also should focus on the following issues  Determine the market demand for products that the company can provide  Compare products of the business with the same kind of the competitors  Identify standards about quality, packaging and instructions for use of explosives because of absolute safe requirement of this products  Concern about the life cycle of the product and determine appropriate pricing policies For criteria MICCO set out:  It is necessary for MICCO to build the detailed strategies to reduce input materials for their production such as studying to produce some explosive accessories etc  The growth rate of MICCO during three fiscal years have very big distance with the objective 4.5 percent Moreover, Vietnamese economy also is in Nguyễn Thị Ngọc Đan – CQ 47/51.03 47 Graduation thesis the stage of recovery after affecting from the global crisis; therefore, 4.5 percent of the growth rate is infeasible MICCO can reduce it at 3.7 percent for exxample 3.2.3.2 For the market research activities and activities to support the sale  Primarily, the agents for the distribution of the business’s products are the areas of mining industries Normally, these areas are pretty large, so the agents should be located to ensure that they are not too far away and they are convenient to transport  The market research should be sentinel, avoid spreading, wasting  The company should have Marketing Department to work more effectively 3.2.3.3 For the company’s resources To improve qulification of almost staff and workes by courses, the company needs to carry out testing activities carefully Besides, the company also should take higher criteria in recruiment to have a good staff because of the general development of them Nguyễn Thị Ngọc Đan – CQ 47/51.03 48 Graduation thesis Part III: Conclusion In conclusion, for a manufacturing and trading as Vinacomin - Mining Chemical Industry Holding Corporation Limited, selling phase plays such an important role It is a good sales campaign that can increase the business result and maintain the company’s market share This requires a high management level and professional as well as enthusiastic staff In which, an effective accounting department is essential because it provides accounting and financial information to decision makers in the company Besides, every departments relationship is one of the elements to make their company sucessful Saying in another way, the sale promotions strategies need to have an unified direction in thewhole company Nguyễn Thị Ngọc Đan – CQ 47/51.03 49 Graduation thesis REFERENCES MICCO – Annual Financial Report 2010 – 2012 Websites: http://micco.com.vn/ http://gaet.com.vn/ http://www.voer.edu.vn/tieu-thu.html Nguyễn Thị Ngọc Đan – CQ 47/51.03 Graduation thesis LIST OF APPENDIXES Table 1: Units and braches of MICCO HEAD QUARTER MINING CHEMICAL INDUSTRY COMPANY LIMITED Phan DinhGiot Street- Phuong Liet – Thanh Xuan – Ha Noi city* Tel: 04.38642778 * Fax: 04.38642777 QUANG NINH MINING CHEMICAL INDUSTRY COMPANY Ha Khanh ward, Ha Long city, Quang Ninh province * Tel: 033.3825349 * Fax: 033.3828283 CAM PHA MINING CHEMICAL INDUSTRY COMPANY Camphu ward, Campha town, Quang Ninh province * Tel: 033.3 862 094 * Fax: 033.3 862 094 BACH THAI BUOI MINING CHEMICAL INDUSTRY COMPANY Phuong Dong village, Uong Bi town, Quang Ninh province * Tel: 033.3855328 * Fax: 033.3855344 BAC TRUNG BO MINING CHEMICAL INDUSTRY COMPANY Nam Son ward, Tam Diep town, Ninh Binh province * Tel: 030.3824028 * 030.3824293 TRUNG TRUNG BO MINING CHEMICAL INDUSTRY COMPANY 137 Ngu Hanh Son st , Ngu Hanh Son District, Da Nang city * Tel: 0511.3950702 * Fax: 0511.3836052 TAY NGUYEN MINING CHEMICAL INDUSTRY COMPANY 231 Le Duan st., Pleiku town, Gia Lai province * Tel: 059.3861576 * Fax: 059.3872186 NAM BO MINING CHEMICAL INDUSTRY COMPANY Hamlet 6, Toc Tien village, Tan Thanh District, Baria – Vung Tau province * Tel: 064.3895248 * Fax: 064.3876636 NAM TRUNG BO MINING CHEMICAL INDUSTRY COMPANY 311 Le Hong Phong st , Nha Trang city, Khanh Hoa province * Tel: 058.3844147 * Fax: 058.3884146 10 VIET BAC MINING CHEMICAL INDUSTRY COMPANY Pho Yen town, Thai Nguyen province * Tel: 0280.3863510 * Fax: 0280.3863349 11 TAY BAC MINING CHEMICAL INDUSTRY COMPANY 278 Truong Chinh st , Quyet Thang ward, Son La town, Son La province Tel : 022 3855024 ; Fax : 022 3855023 Nguyễn Thị Ngọc Đan – CQ 47/51.03 Graduation thesis Table 2: Other branches of MICCO No Names of MICCO’s branches Nghe An Ha Nam Lai Chau Quang Ngai Ha Giang Lao Cai Phu Yen Dong Nai Bac Kan Table 3: Branches of GAET No GAET’ branches NinhBinh Dong Bac Tay Nguyen Ba Ria – Vung Tau Mine Explosion National Centre Nguyễn Thị Ngọc Đan – CQ 47/51.03 Graduation thesis SUPERVISOR’S JUDGEMENT Name of supervisor: Comment on Graduation thesis of student: Nguyễn Thị Ngọc Đan Course: 47 Class: 51.03 Topic: “Some solutions to improve sales and promotions in Vinacomin - Mining Chemical Industry Holding Corporation Limited” …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………… Mark - In number: - In word Nguyễn Thị Ngọc Đan – CQ 47/51.03 Hanoi, …./…./ 2013 Supervisor Graduation thesis REVIEWER’S JUDGEMENT Name of reviewer: Comment on Graduation thesis of student: Nguyễn Thị Ngọc Đan Course: 47 Class: 51.03 Topic: “Some solutions to improve sales and promotions in Vinacomin - Mining Chemical Industry Holding Corporation Limited” …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………… Mark - In number: -In word Nguyễn Thị Ngọc Đan – CQ 47/51.03 Hanoi,……/……/ 2013 Reviewer ... company in general, and for Vinacomin – Mining Chemical Industry Holding Corporation Limited in particular Therefore, my thesis with the topic Some solutions to improve sales and promotions in Vinacomin. ..MINISTRY OF FINANCE ACADEMY OF FINANCE Student: Nguyễn Thị Ngọc Đan Class: CQ47/51.03 Topic: Some solutions to improve sales and promotions in Vinacomin – Mining Chemical Industry Holding Corporation. .. the sales and promotions to industrial enterprises in Vietnam and especial MICCO, I would choose " Some solutions to promote consuming products of Vinacomin- Mining Chemical Industry Holding Corporation