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PháttriểnchiếnlượcMarketing - Sảnxuấtkinhdoanhđồnộithấtthịtrườngquốctế “Marketing strategy development in the period of 2011-2012.” APPENDIX Page GENERAL INTRODUCTION MARKET RESEARCH AND PRODUCT DEVELOPMENT 2.1 Market analysis 2.1.1.Market research and taste catching 2.1.2.Influencing factors research: 2.2 Customer and potential customer identification 2.3 Competitor research on the market 2.4 SWOT analysis: MARKETING strategy 3.1.Mid- term market target(2011-2012) 3.2 Market segment and target market: 3.2.1.Market segment 3.2.2.Target market 3.3 Strategy establishment 3.3.1.Key strategy 3.3.2 The kinds of marketing used in Niche strategy 3.3.3.Location strategy 3.3.4.Trademark 4.MARKETING PROGRAM 4.1.Marketing mix 4.1.1 Product 4.1.2 Price 4.1.3 Place 4.1.4.Mareting advertisement 4.2.Sale promotion 4.3.Customer supporting service,direct sale and commercial sale IMPLEMENTATION PLAN: MARKETING BUDGET 6.1 Survering cost of Philipines and Taiwan markets 6.2 Finacial Plan IMPLEMENTATION EVALUATION AND SUPERVISION 7.1 Advertisement strategies supervision 7.2 Business performance evaluation 7.3 Meeting plan 7.4 Difficulties and solutions CONCLUSION 3 3 4 5 6 6 7 8 8 9 9 10 11 11 12 13 13 14 14 14 15 15 16 16 Marketing sreategy in the period of 2011-2012 GENERAL INTRODUCTION + Established on 18/01/2007, Dan Viet production and commercial company.,Ltd registers business on many fields,but the company has focus on exporting wood products production since company was established Thanks to support and consultancy of production organisation mode and quality management …from specialized nations and organisations such as Development Cooperation Program from Netherlans, Denmark, Mekong supporting Fund, production and business performance of the company developes non-stop on scale + Consuming turnover and market: Toda, the company specializes on producing, processing exporting household furniture from rubber, acacia, oak, mahogany and importing types of wood for the customers’ request Slogan: Bringing values for your room + Because the deeply-trained management staff with longterm experience in the wood production field has ever worked for leading companies in this field in Vietnam, the company’s product has responded the customers’ request in term of techinique, fine arts and product quality Currently, DanViet has been affirmed its’ stability stand in Vietnamese market In the international market, the company’s products has appeared in the America market, Japanese market and some other Europe markets + In next time, the company inplements to develop the company’s products to neighboring countries and Southeast Asia region Meanwhile, the company’s Director Board has priority of developing the market to Philipinnes and Taiwan MARKET RESEARCH AND PRODUCT DEVELOPMENT 2.1 Market analysis Although Taiwan and Philipinnes are also in Southeast Asia they have clear differences of culture, income, language 2.1.1 Market research and taste catching: + To develop furniture into Philipinnes and Taiwan markets, the company will appoint the best peopople to supervise the market and send some sample of goods for searching the customers and then analysis the collected information + Taste catching: Study the market’s diversity (4 seasons, age, region…) The production must connect to the market (Market-in) and “Supply makes demand " Preparing various classifications, even one item, for the consumer’s selection such as big or small, multifunction, form…) 2.1.2 Influencing factors research: a Polictical economic enviroment: + Influence of economic crisis makes construction cost decrease + Policies, law approves the development of munual industries such as interior wood products + Credit policy supports the export through Development Supporting Fund, exporting reward policy + Taiwan and Philippines Politics are relatively stable b Social and cultural factor: + The birth rate decereases, the aging population + Demand of wood products for the marriage decreases because of single living tendancy and late marriying age + Tendency for consuming high- class products decreases, price of high-class products decreases, especially household products The tendency for consuming medium-quality and cheap products increses + Taste of Europe style increases + Taiwan market near Viet Nam brings influence of Eastern Asia culture and Phillipinnes brings influence of Europe and American culture c Technological factor: + Vietnam wood processing enterprises have small-scale, limited human resource and technology Vietnammese wood products are mainly sold through intermediate (account for 90% of the product quatity) Processing, receiving design patterns and contracts from foreign couterparts are main business + Researching specific technological standards for each kind of wood product imported into Taiwan and Philipinnes market d Enviromental factor: + The renewable wood products,also the original one are winning big market share in the countries The company will provide information about the timber treatment chemicals to increase the reliability and peace of mind of the customer when trading 2.2 Identification of customer object and potential customer: + Households, companies’s office, restaurants and hotels are the customer objects of the company + Currently, household wooden furniture, wooden furniture with two main styles are modern patterns and colors one and wooden furniture with many ancient details In term of modern wooden furniture, it will focus on young families, new style restaurants and hotels, apartments; taste and appearance will be renovated in 5-10 years The wooden furniture with many ancient details will be focused on middleaged customers with high economic capability and Eastern Asia styled restaurants and hotels 2.3 Competitors research on the market Competitors are the salespersons of the copany that everyday have to struggle to win the deal They are companies that intend to entice your customers.We not know who they are, but to know their strong points and weak points is not simple In the domestice market, the company have to face southern enterprises and even compete with the products of China and Malaysia‘s origin In the international market, the company has to compete with strongly- producing countries of the interior furniture, especially in Taiwan 2.4 SWOT analysis: 2.4.1 Strong points: + Various products serve many objects with ensuring quality; high investment on product’s research and development ; capability of production design independently for individual customer’s request, and creative combination on many different materials … + Modern and convenient marketing mode, advertisement to a large number of the customers + The products are delivered at the place the customers want; attentive sale service before, during and after the sale + Weak points: + Far from input material source, as well as production cost increses Product’s price increases and finally,the company meets many difficulties in the competiton + The condition of direct introduction to customer is limited, so in the early period, the company will meet many difficulties in building customer’s belief 2.4.3 Opportunities + Domestic wood producing industry is cared and increasingly invested by the State + Household furniture producing industry has solved mostly abundant common labor resource, created jobs for the local + Tendency of online technology is increasingly developing, overcoming the border, spreading to a huge of various customers and partners 2.4.4 Risks: + Because of limited supply source profession, product quality ensurance is not easy + Beacause of increasing cost of material source, electricity, water, it leads to increase of the products’price and difficulties in the competition + Vietnam’s household furniture in general has not been affirmes on the international market Vietnam’s products have not been highly-evaluated, also put in the customers’ mind + Exporting wood products must have Material Certificate From 1/4/2009, all exporting –importing enterprises must submit the product’s statement + Forestry laws and forest management has appeared in all the countries These are the biggest challenges to our wood industry MARKETING STRATEGY 3.1 Market target in medium-term (2 years: 2011-2012) In the first period of penetration in new market, objectives of Dan Viet Company are shown as follows: + Getting familiar with new market, building friendly customer staff of the company according to marketing product line in market + Improving familiar level of product image and Dan Viet company’s trademark yearly + Strengthening the level of contact with target customer up to 90% in advertising campaigns + Boosting up identity of trademark and the image of new product which will be introduced in the market next quarter + Having at least 20 new customers in Taiwan market and 30 new customers in the Philippine market next quarter and promoting the number of customer in each coming quarter ( in average, increase 10% more for quarters) + Selling 10 products per week + The rate of customers who have satisfied with company’s product and service reaches 90%, based on the amount of customers buying products at Dan Viet’s stores and agents + Expanding business share in the Philippine market and Taiwan market, increase 5% per year + Reducing 10% marketing cost in six years 3.2 Market segment and target market 3.2.1 Market segment + By Income: Those who have relatively high income + By Social status: Those who succeed and have more than enough money, however, a barrier toward these customers is that they shopping basing on their familiar and company’s reputation + By Age: Those who are at the age from 30 to 55 because at this age, they can have succeeded (enough financial capacity), have much experience (ability to identify product) + By Characteristic: Toward the customers who like changes, designs without much attention to product durability, practicality, in their opinion, furniture in their house must go with decorativeness for the house 3.2.2 Target market It is expected that penetration and distribution areas in Taiwan market will be rural and small urban ones and in the Philippine market will focus on large urban areas The target market which Dan Viet company pays attention to is customer group with medium or high income People: o Age: From 20 to 50 o Sex: non-differentiated o Career: state employees, businessmen… o Ethic group, religion: multi –ethnic and religion o Income: average rate at 10000$ /year Consumption and using model: o Target customer group will buy product when they have utilization and replacement demand o They will choose their favourite trademarks at product allocating stores of these trademarks They demand good service o The number of people in this customer group is large with high demand on using and changing furniture products o They will shopping on vacations: building house, replacing old and out of order products or change at the end of a year when they have high revenue and those who have just got married or those want to change their living environment Marketing and Trademark o This customer group bases on marketing programs to consider their trademark choice and buying products of which trademark o The knowledge on trademark of target customers is only one of the considered criteria, however, factor which makes customers decide to buy product is the attribute if the product meets their real needs This is the basis for Dan Viet to have opportunity and stand in this new market o Dan Viet Company pays attention to build their customer – friendly trademark, create customer’s sympathy on their service and try to improve product for customer’s satisfaction 3.3 Strategy establishment: 3.3.1 Primary strategy: The strategy on difference (niche strategy) + Specific design with even quality The company always studies, creates products next to previous ones, products serve previous ones For example, when we sell a chair, we have to include complement products for it such as seat cushion, terra – cotta seat,… + Subdivision of product to sell also enriches the ability of satisfying customers’ demands 3.3.2 Types of marketing used for niche strategy + Marketing by traditional methods (printing, television, outdoor and public relation) + Marketing by interacting through Web site, social network + Personal marketing (Direct marketing, relation – based marketing) + Marketing toward customers + Marketing by market segment + Marketing with the quantity of abundant and simple products + Marketing with suitable quality products + Highly useful products with reasonable cost + Good portage service and payment + Customer care service before/in and after buying product is focused on and at top priority + 3.3.3.Location strategy: Each customer is an efficient partner to support Dan Viet Company for finding the right way for a new market as present With the line of household furniture product, our slogan is: “Dan Viet household wooden furniture – Bringing to the value in your room” Through this slogan, we want to confirm: Dan Viet Company’s products are friendly and suitable for every family, bring convenience to customers when using Dan Viet service brings reality to customers when using with a series of after-sale support: maintenance, free repair, …during the period of six months Products will be machined and polished at each family Paying more attention to common customers by creating new product lines suitable for their needs and expectation Creating opportunities to meet customers: Showroom, hotline, online support, letter, room for customer care service … o Post-box for feedback, attributive ideas for Dan Viet company o Actively communicating with customers on some special vacation (Abatement, free maintenance, new product introduction) 3.3.4 Trademark: Dan Viet Company Trademark at international market will be: Registered for exclusive right protection in home country as regulated Each leaflet, catalogue, or each product must express the trademark of Dan Viet Company Building specific images, related to Dan Viet Company trademark Any advertising and marketing campaigns must show the trademark of Dan Viet and slogans along with trademark MARKETING PROGRAM 4.1 Marketing mix 4.1.1 Product The main wooden furniture products of Dan Viet Company which are expected to put on Taiwan and the Philippine market are table, chair, bed, wardrobe, cabinet, household furniture from natural wood such as wood of rubber, oak, acacia, mahogany, … is used for family, restaurants and hotels and directly supplied or through agents to customers Difference: Most of products are made of natural wood such as wood from acacia, rubber and oak…with original form, vecni quality, and painting is finished through stages, item is dried carefully so it will not be warping and termite Products with quality suitable for necessary demand and cost along with the quality Products are designed in set in order to improve the utility for customers For example, a set for living room includes a set of salon furniture, TV shelf A set for bedroom includes a bed, cupboard at the head of bed…These products are all assembled easily with different functions Each product pack is attached by specific instruction for using and assembling product Products have sophisticatedly carved parts which create vivid points and express artist’s feeling 10 Company applies guarantee, repair, and change for new one with fail product due to manufacturing and repairing or replaces fail products due to usage 4.1.2 Price: + Price of Company’s product will be not only based on retail price in the market, it will be based on the fact of overall cost (tax, transportation cost) and balanced at the equivalence rate with products which have same property in segment + Price of modern furniture products with types of natural wood at group IV or V mixed by industrial wood will be lower than that of ancient multiple-part furniture or those which use 100% of natural wood at group 1, 2, 3…In specific cases, price will be balanced according to order and objects 4.1.3 Place: + Now, in Taiwan and the Philippine market, the company has relatively complete distribution system, after products are imported, they will go through many distribution and transportation channels to customers In which, the most popular form is wholesale one: products through a supplier will be distributed to stores and supermarket Besides, there is online sale method through websites which specify in online sale in these countries + Finding intermediate units such as supermarket management company, shopping centres, furniture distributors to collect research information, provide market information, advertise product, increase price, negotiate with customers or intermediate unit, transport and store goods + At the present, in Taiwan, form of multi – level sale is quite popular so the company also studies specific demands to introduce and distribute some specific by this form + The company will seek for direct retail channels and online distribution channels Besides, the company will look for distribution unions who have share in penetration area in order to send samples and negotiate directly in supply 4.1.4 Marketing advertisement Advertising appeal, advertising message: After 20 years the value still remains 11 + The above message implies quality, durability, time-challenging form, and it will bring customers value in use and benefit + Advertising plan in living stage of product is: o Establishing stage (three months): Advertisement is used continuously to introduce the company and product’s characteristics to customers, provide new concepts, to change customers’ habit, and try to change their purchase behaviour o Competitive stage (one year): Advertisement plays an important part in setting up the strength of products in competition with other brands o Improving stage (depending on fact) The advertisement simply aims at improving or reminds customers of product’s quality and the company’s product is accepted in market Pull strategy creates users’ demand through advertising programs Using practical and comparative advertising forms “After 20 years the value still remains” Advertising media includes: Advertising by printing on newspapers, leaflets, magazines: selectively advertising on newspapers, tourism magazines at international airlines which have route to Taiwan and the Philippine, purchase papers of Paying attention to furniture specialized magazines, magazines for introducing new products and consumption + Head office and display section: Setting up an address for dealing and displaying products at penetration market with reasonable cost, convenient traffic to directly deal with customers and customers can see online manufacturing facility of the company + Actively joins fairs, takes part in Vietnam association of item export to use up exchanging and advertising activities of association, connects the company with association closely in order to develop Dan Viet Furniture products + Sponsoring charity programs by form of auctioning products supplied by the company to attribute to charity fund + Websites (online store): uses technology of contacting to customers ( noticing the used language); introduces image, price of typical products: 12 introduces the origin of developing product (for example: the meaning in Vietnam culture, originated from a legendary story…); material, material origin, methods to produce product, attribute…; Customers can question, exchange information, give their demands on product …,especially, it customers want to set individual requirement, they can describe specifically or directly exchange with sales, designers to have satisfactory products Promoting extensive participation of customers in designing and developing product This will help bring the right product to customers as expected and reduce cost for solving after – sale claims of customers The company will give presents for great customers, those who registered as members and have high and effective contact level (idea, comment) with the company ;store data of information figure in order to use for Customer Relation Management Opening online store on websites such as Ebay or Amazon Opening store in local language at some local websites At these websites, there are key words at searching pages such as Google, Bing, Ask… Choosing exact key word will help us a lot in seeking for customers Using targeted email software or auction programs will help find out customers on high accessed websites such as eBay, Amazon.com Registering online directory of the area Using online tools such as facebook, Youtube , netlog, Twitter, friendster Blog …: set up accounts and promote company’s staff to create accounts (presented depending on the effectiveness) to create forum, introduce product, link to major web pages of the company, access webs for those who have same concern, those who have demand on buying products especially relating to the company’s products Building advertising clips on Youtube, Dailymotion 4.2 Sale promotion: + Supporting retailer under turnover and place + Exciting customers: 13 Using the selling form through websites specialized in selling to a large number of customer and buying registration is the effective way to advertise product as well as make customers have chance to approach the low price and links to company’s website Discounting – 10 % for customer introduced product by the old customer Keeping having discount programs to each subject and product groups For example, furniture used daily as cloakroom furniture, bed, shelf …are discounted on the occasion of Valentine, Noel 4.3 Customer supporting service, direct sale and commercial sale + Building sales staff with such detailed tasks as surveying, determining the target, communication, sale, service, finding information, distribution + Establishing the business force including aspects: business team of individual and household sale and project business team Individual business team: including online business, selling at showroom, selling for sites in the region Requirements: having knowledge of sale through network, understanding the product deeply, product’s advantages, good communication, knowing how to persuade customer to sign contract, besides having knowledge of technical issues, installation, and having capacity of implementing and managing simple marketing methods Project business team: Good communication, having many social relations, capacity of solving difficult situations, prediction mind and realizing the situation, high responsibility People not need high capacity of information technology, installation technique but high capacity of building relations + + The consulting system supporting service and 24/7 guarantee with a free hotline phone number, using service of online answer through internet + Online sale through mail, telephone, and direct contact on the website Price of product is separated into each part including selling price + tax + delivery cost + Ensuring the delivery time + Payment: Customers can pay in cash , online payment on the website or through other ways as through company’s account, Paypal, credit card, ATM 14 IMPLEMENTATION PLAN To enter into the above markets, we propose to use main methods as export, through the contract and production organization Export: including indirect export, export cooperation and direct export Export just requires few capital and easy to enter the international market and it is also a good way to learn international experience + Contract: There some kinds of contract when going into the market Lixang contract recognizing the patent rights Hand to hand transfer contract Production contract Management contract ( widely used in mid-East countries) Joint venture: Joint venture is the effective form to go into the market in such countries having different economic modes as Taiwan, Philipine, and other developing countries The most typical form of joint venture is the two partners joining capital Advantages: reducing requirement of investment and other sources; dividing risk; using experts and contacting directly to the foreign market Disadvantages: arising dispute between partners of joint venture; difficulty in communication, administration, management and controlling the partner + Production: Due to the uncertainty of economic, politic, and social conditions in the whole world, so penetration by this form containing the most risks MARKETING BUDGET In term of capital to implement the above strategy, we propose as follows: 6.1 Surveying cost of Philipines and Taiwan markets: -We propose to send staff to these countries in order to study the market + Air Ticket ( return ticket) 40.000.000 VND + Hotel: 30.000.000 VND + Travelling and accommodation cost: 70.000.000 VND + Other costs: 10.000.000 VND Total: 150.000.000 VND 6.2 Financial Plan 15 a) The expected capital: - Company’s capital: 1.500.000.000 VND - Borrowed capital from Ba 400.000.000 VND 6.2.1 Expected cost and turnover *Cost: - Direct employee cost: 171.000.000 VND - Material cost: 500.000.000 VND - Common production cost: 40.000.000 VND - Marketing cost: 160.000.000 VND - Discharge cost: 20.000.0000 VND/ containers - Export tax: 20.000.000 VND - Delivery cost: 30.000.000 VND - Other cost: 10.000.000 VND * Turnover: Product’s name quantities (unit) Price unit (usd) Turnover (usd) Shelf 100 100 10.000 Sofa 50 800 40.000 Backed chair 120 150 18.000 Cane chair 100 50 5.000 Terra-cotta seat 110 50 5.500 Price 200 20 4.000 Total: 82.500 6.2.2 Primary evaluation of the strategic financial effect: - Business income tax: 2,33 % / month - Interest rate: 1,8 % / month - Discount rate: % / month - Amortization: 5.000.000 VND / month - The project is expected to be implemented in 2- months 6.2.3 Profit – Loss plan of the project: - Turnover: 1.690.000.000 VND - Operation cost: 1.100.000.000 VND - Amortization: 5.000.000 VND - Interest payment: 7.200.000 VND 16 - Pre-tax income: 577.800.000 VND - Business income tax :( 25 %) 144.450.000 VND - After-tax profit: 433.350.000 VND The above is the implementation cost in quarter, the plan in years based on the real situation will be adjusted or applied equal to the total of the quarters combining IMPLEMENTION EVALUATION AND SUPERVISION 7.1 Advertisement strategies supervision Implementation standard: Advertisement is the form of the non-individual presentation and promotes ideas, products, and services of the company paying for customers knowing products The success of company’s advertisement strategies will be confirmed through the following measurement standards: + The marketing subject: The effective strategy of advertisement will approach the maximum people in the marketing subject group of the program + The special goal of the campaign: The advertisement campaign whether gain the placed targets or not + The marketing result is whether much better than the applied strategies or not + Capacity of realizing the image of trade mark after the advertisement strategies is more positive or negative In order to specify the standards measuring the success of advertisement strategies based on several factors: + Behaviour of the marketing subject: The effective advertisement campaign will be confirmed when number of people accessing company’s website increasing gradually, they study sections more carefully, such as origin of products, technical parameters, model and they can contribute ideas The accessing number of the marketing subject is an important factor to assess an advertisement campaign Customers call directly to the company, show room or company’s agents in these countries to study more about company as well as products The more customers call to company, the more success of the marketing program is gained 17 Customers’ complain is also a measurement for company’s advertisement strategy Customers’ complain plays an important role in improving the quality of product and service caring customers of company Meanwhile it helps company have advertisement orientation more suitable and closer to the local market Customers’ behaviour and buying method are also factors used to measure the marketing campaign’s success, customers’ behaviour can be changed after they approach company’s advertisement campaign and it is the precondition to promote the buying decision + Advertisement cost: Cost for advertisement is one of reverse investment form of the company For a advertisement program, effective marketing, one pence for advertisement will bring a stable and long-term earning source which is much higher than the primary cost Cost for advertisement in new markets can be considered as cost for receiving new customers or new partners + Trade mark : Trade mark plays an important role in the success of Dan Viet Dan Viet’s logo is a typical image to realize Customers’ satisfaction to trade mark is the precondition to confirm company’s success 7.2 Business activity evaluation 7.2.1 Reporting plan Frequent report on business is to balance cost for advertisement campaigns These campaigns also depend on each action of competitor and will what campaign: advertisement, public relations, or introducing new product 7.2.2 Business decrease Business decrease is required to be established in the business report indicating the reason of decrease clearly: Due to business area Business representative Product, package appearance, product design, product taste, Customer kind ( new/old) 18 Customer kind based on population, occupation, scale Buying method: telephone, letter, website, direct sale The number of order Bonus for staff + Profit and loss report: Establishing profit and loss report for each product or for each area, each part of the market or each department This can be implemented in quarter or year Net sales – cost of sold product = gross profit – advertisement cost, direct sale – dealing placed orders and disbursing invoice, yard and distribution, direct selling management Percent rate between gross profit and turnover ( Applying for each product) 7.3 Meeting plan + Establishing meeting plan is to review and supervise the process of marketing activity + Establishing timed points of investigation to reassess the strategy to supplement the new one or reassess fund 7.4 Difficulties and solutions: The target of any advertisement campaign is to promote number of customers coming to company’s trade mark Therefore, the biggest risk is the advertisement campaign making customer far from company due to Losing trust in company Company’s product does not meet the real demand of customers The advertisement campaign reverses their expectation Solutions: Find information about customers in order to build a complete and detailed data facility of customer Storing and analysing information about geographic feature and buying characteristic of customer as population, residence, buying place, often bought product, buying times, medium of exchange Listing customers’ opinion, establish opinion group and having feedback 19 Keeping studying business market Establishing special events or activities to excite Establishing behaviour to meet the demand of events/activities excited Building sales staff with clear regulation of reward and salary, encouraging them through many forms Establishing a special selling service compared to competitor and giving thoughtful care to customer CONCLUSION: The above is the marketing campaign of Dan Viet in the period of 2011 – 2012, based on the real situation this campaign will be updated and can be adjusted With the determination to make Dan Viet furniture trade mark become a strong trade mark on the international market, company will overcome the biggest challenges to confirm the value and trade mark of Dan Viet on the regional market 20 ... promote the buying decision + Advertisement cost: Cost for advertisement is one of reverse investment form of the company For a advertisement program, effective marketing, one pence for advertisement... advertisement strategies will be confirmed through the following measurement standards: + The marketing subject: The effective strategy of advertisement will approach the maximum people in the marketing. .. advertisement strategies based on several factors: + Behaviour of the marketing subject: The effective advertisement campaign will be confirmed when number of people accessing company’s website