PHÁT TRIỂN THỊ TRƯỜNG sản PHẨM “nắp bể cáp THÔNG TIN điện lực” tại CÔNG TY đúc GANG cầu THIÊN PHÁT e

PHÁT TRIỂN THỊ TRƯỜNG SẢN PHẨM “NẮP BỂ CÁP THÔNG TIN - ĐIỆN LỰC” TẠI CÔNG TY ĐÚC GANG CẦU THIÊN PHÁT THESIS DEVELOPING THE MARKET SHARE FOR “COMMUNICATION UTILITY SERVICE MANHOLE COVER IN THIEN PHAT COMPANY" Page Table of content LIST OF TABLES LIST OF PICTURES AND CHARTS I Introduction The necessary of the thesis The research’s aims and tasks .8 Object and scope research of Research methodology Expected contribution of the thesis .10 Content II Content Chapter I THEORETICAL BASIS ABOUT THE MARKET AND MARKET DEVELOPMENT STRATEGIES .11 1.1 Identifying the concept of market and classifying the kinds of the market 11 1.1.1 Identifying the concept of the market 11 1.1.2 Classifying the kinds of the market .12 1.2 The concept and development stages of the product 14 1.2.1 The concept of the product 14 1.2.2 The concept of the different kinds of the commodity 14 1.2.3 The development stages of the product 15 1.2.4 Theory of analyzing PEST and SWOT model 17 Page 1.3 The concept and the market for the communications utility service manhole cover 19 1.3.1 The concept of the communications utility service manhole cover product 19 1.3.2 The market classification of the communications utility service manhole cover product .20 1.4 Strategies for the market development 21 1.4.1 Overall theoretical basic of the strategy 21 1.4.2 Strategic model for developing the communications utility service manhole cover and its market share .23 1.5 Methodology and data collection methods .24 Chapter II CURRENT DEVELOPMENT MARKET SITUATION OF THE COMMUNICATIONS UTILITY SERVICE MANHOLE COVER PRODUCT OF THIEN PHAT COMPANY 28 2.1 Overview of Thien Phat Co and its business lines 28 2.2 Summary of technical factors and product features of communications utility service manhole cover 32 2.3 The external factors having impacts on the business activities of the Company 35 2.4 The Company’s internal environment 51 2.5 Market Analysis of product line of communications utility service manhole cover products .55 2.5.1 Real situation of domestic market of communications utility service manhole cover products 55 2.5.2 Real situation of communications utility service manhole cover products in some countries 59 2.6 Application of SWOT analysis in enterprise environments 62 Chapter III SOLUTIONS FOR DEVELOPING THE MARKET OF THE COMMUNICATIONS UTILITY SERVICE MANHOLE COVER .64 Page 3.1 Some achievements and weaknesses of the company in the period of 20082012 64 3.2 Predicting the development of the communications utility service manhole cover product 66 3.3 Recommending some solutions to enlarge the market for the communications utility service manhole cover 68 3.3.1 Solutions about the strategies for the product 68 3.3.2 Solutions about pricing 69 3.3.3 Solutions about differentiation strategies 70 3.3.4 Solutions about PR and name – branding 71 3.3.5 Solutions about Marketing to enlarge the market .72 CONCLUSION .74 III References .76 IV Appendixes 77 Page LIST OF TABLES No Content Page Table Revenue results in the period of 2008-2012 31 Table The comparison of the average price of some primary materials 37 used in Thien Phat Table The comparison of the average price of some Thien Phat’s 38 products in some recent years Table The comparison about the quality of the quality between 41 products suffering to D-400 (40 tons) produced by modern technology and by out of date technology Table Supplier evaluation 43 Table Average sales in each month in domestic and international 49 Table Table market Average capacity of making the mold of some products The comparison of the quality and price of communication 53 57 Table utility service manhole cover The percentage of communication utility service manhole cover 58 comparatively to the other products of Thien Phat Page LIST OF PICTURES AND CHARTS No Pic Pic Pic Pic Pic Content Page SWOT model 19 The organization structure of Thien Phat 29 Revenue chart in the period of 2008 – 2012 31 A six-wing- communications utility service manhole cover 32 The organizational differences between ductile iron micro35 Pic structure and grey cast iron micro-structure Number of the apartments which have not been sold yet in Ho Chi 39 Pic Pic Pic Minh city The exchange rate between USD and VND in 2010 – 2012 Average committed and disbursed ODA through periods Number of Thien Phat’s products sold in the domestic and 39 40 50 Pic 10 international market Expected market share of communications utility service manhole 57 cover in the domestic market Page I Introduction The necessary of the thesis Thien Phat Company specializes in producing cast iron items and its major customers are road construction and water supply and drainage companies In some recent years, the market for the other products is nearly still standing in the same position without any positive changes; for example, the total revenue of 2012 is only equal to that of 2011 It is mainly due to the sales revenue of communications utility service manhole cover increases slightly while that of the others hardly grows up comparatively to previous years Therefore, although their prices rose together with the increasing of the production cost, the total revenue in 2011 – 2012 hardly rises In earlier periods (from the beginning to until 2011), the primary development strategies are promoting the production and consumption of manholes covers and grating and warrior surface box The technological standard and appearance requirements are not too complicated, so they can be easily manufactured and priced much lower than that of the communications utility service manhole cover This strategy was considered to be most effective due to its new business operation, the limitation of experience and the fertility of the market for these products at that time Currently, the market share for the communication utility service manhole cover is becoming easy to increase sales In domestic market, telecommunications and electricity sector has an intention of undergroundizing electric and telephone line system in big cities to make the urban landscape natural as it used to be Thus, its demand in domestic market will increase as well Similarly, in overseas markets, after a period affected by the worldwide economic crisis and all inventory are sold out, distribution agents in Europe have to begin buying to re-operate Therefore, the Page expansion of the market for this product is very clearheaded and suitable for the market’s demand The research’s aims and tasks - Analyzing external factors which have effects on the business operation - Reviewing the strengths and weaknesses, then be able to identify the opportunities and threats for the company in the future - Under vesting the current consumption capacity of the electric and communication manhole cover in the market and especially that of Thien Phat’s products - Recommending to build up strategic plans for the development in the near future - Giving some suggestions for the market development to gradually grow up sales, revenue and competition capacity in both domestic and international market Object and scope of the research This thesis is built on the basis of researching the strengths and weaknesses of the company and the company's relationship with other competitors, raw materials suppliers in the market The object is Thien Phat Company and activities involved in the market of communications utility service manhole cover In particular, it also mentions the advantages of this product comparing to the others The data and content used to analysis is in the period of from 2008 to 2012 Beside the internal aspects at the company and some steel producers in the sector, it also contains the preliminary macroeconomic content both in Vietnam and over the world in this stage Page Researched product is communications utility service manhole cover which is regarded as the product line with high demands on the technical features, product quality and design Research methodology I would like to use the dialectical materialism combined with interpretation methods to collect and process information in the thesis Moreover, mathematical methods and statistical methods are also used to support information analysis, from that I can compare and then give out the special advantages of the company to develop the market share In addition to some of the information provided by the company, I also use some of the information collected by myself from reports and statistics from some involved state agencies Expected contribution of the thesis - Systemizing the theoretical basis for market and market development - Analyzing the current situation and the factors that have impact on the business operations of the company - Identifying the advantages and disadvantages of business while expanding the market so that they can get the appropriate development strategies - Giving out the positive solutions to increase sales and revenue - Strengthening the company's brand and building up their own brand for the electric and communication manhole cover Thesis’s content The thesis includes of main chapters with the principal contents as follows: Page Chapter I THEORETICAL BASIS ABOUT THE MARKET AND MARKET DEVELOPMENT STRATEGIES Chapter II CURRENT DEVELOPMENT MARKET SITUATION OF THE COMMUNICATIONS UTILITY SERVICE MANHOLE COVER PRODUCT OF THIEN PHAT COMPANY Chapter III SOLUTIONS FOR DEVELOPING THE MARKET OF COMMUNICATION UTILITY SERVICE MANHOLD COVER Page 10 Chapter III SOLUTIONS FOR DEVELOPING THE MARKET OF COMMUNICATIONS UTILITY SERVICE MANHOLE COVER 3.1 Some achievements and weaknesses of the company in the period of 20082012 3.1.1 Some achievements and weaknesses of the company in the period of 20082012 a Achievements In the period of 2008 - 2012, in spite of getting difficulties caused by the global economic crisis when they have just done the business, Thien Phat still gained some considerable achievements as follows: - They can not only overcome from the economic crisis but also have a stable standing in the market, while many companies specializing in foundry industry bankrupt or are in red - Although it has been set up for some years, the business activities become more and more stable gradually get the favor from customers and a foothold in the market - Besides old customers, they also create the relationships with many customers from different markets other than the traditional markets and customers in Japan, Italy and so on - The production techniques are better when mixing up different materials together, and then the price is lower - Apart from the 2-year-period from 2009 to 2010, sales volume of two years from 2011 to 2012 was improved increasingly, so accordingly the revenue also grew up significantly Page 64 - The board of directors has quickly built up the appropriate development strategies in the crisis Therefore, they can have accession to the domestic market, increase sales volume in the domestic market as high as that of export b Weaknesses: - Despite accessing to the domestic market, the distribution network is not strong enough to cover all cities The customers of Thien Phat currently are those in Hanoi and Ho Chi Minh City - Lacking experienced Marketing team, so in two recent years (2011 – 2012), there is no more customers but those coming from Japanese and Italia - Sales volume in 2012 increased slightly compared to that of 2011 although international banks disbursed back and projects to underground cables were also implemented in Vietnam - The quality of the product has been admitted, however, the surface form is not as good as that of products made in China This causes difficulties for the Company's products to compete in markets with high demand as Italy or when entering into new markets such as in North American countries - The quality of human resources is not stable and equal to each other Marketing staff are not skillful and experienced enough 3.1.2 Conclusion about building up development strategies in the future They used PEST market analysis tool and SWOT analysis to review both international and domestic market, both the strengths and weaknesses of Thien Phat Then, they can get the suitable development policies to restrict bad points and promote good points Page 65 - Building up reasonable strategies about design and class, taking advantages of globalization to aim at the segment for medium and large class products (the class is from 25 tons to more than 40 tons) - Focusing on developing key products, for example communications utility service manhole cover They should get appropriate polices about price, marketing and differentiation to expand the market Then, they can increase revenue and sales volume in 2015 twice as much as today’s - Expanding distribution system to some large cities Currently, in addition to its headquarters in Bac Ninh, there are only representative offices in Hanoi and Ho Chi Minh City In the future, they should open more representative offices in some major provinces, such as Hai Phong, Khanh Hoa and Da Nang - Promoting business activities and Marketing by recruiting new experience staff; usually negotiate with foreign partners to promote the sales of communications utility service manhole cover in Italy, Spain and Germany 3.2 Predicting the development of the communications utility service manhole cover product Currently, communications utility service manhole cover was launched to Vietnam market long time ago; however, it is a new product of Thien Phat Based on the textbook of Philip Kotler, Thien Phat’s products are in the early stage (5) “Re-identifying the market of the products that the current products are launched into new markets or new segments” Then, because of the fierce competition in the market, it changes to stage (6) “Reducing expense: new products with similar functions will cost lower” Yet, in international markets, communications utility service manhole cover stood in stage No and get continuous improvements in design (stage 4) In general, the theory is relatively theoretical only when with the same product; it is stood in this stage but other stages in other different markets Page 66 From analyzing and searching the needs and tastes of the market at 2.5 above, we can see the market for communications utility service manhole cover is very potential to be exploited Moreover, the more economy and society develop, the higher the demand for transport infrastructure and communications will be Providing that they have appropriate development policies, their sales and revenue for communication utility service manhole cover can increase to 49 tons for each month in both national and international markets, including: - Domestic market: about 18 tons/month - Italy: about 20 tons/month - Germany and Spain: about 11 tons/month It is predicted that 2-wing and 4-wing communications utility service manhole cover will be sold well in the future, including: 4-wing items for Vietnam and 2-wing ones mainly in Italia, German and Spanish Regarding to profit and revenue, although it increased to 49 tons, it is only equivalent to 18% of the current outputs Moreover, because of the complicated characteristics, the expense for working labor and operation will be higher than that of other products, expected revenue only increases to 15% and 12% for expected profit With the current economy, the target to raise the profit to 12% is a success to encourage them to implement this strategy For rivals in the market, in the domestic market, main competitors in the near future should be state-owned enterprises and joint ventures positioned in Dong Nai The price of communication utility service manhole cover in three firms is higher than that of Thien Phat To international market, Thien Phat’s main rivals are Chinese enterprises with significant cost advantages and production capacity To compete with these rivals, Thien Phat should focus on improving quality and production management as well as trade negotiations Page 67 3.3 Recommending some solutions to enlarge the market for the electric and communication manhole cover With the forecast of attractive revenue, based on the analysis of the market for communications utility service manhole cover, and the strengths and weaknesses, I would like to suppose some of the following solutions to expand the market: 3.3.1 Solutions about the strategies for the product - About product’s quality: it is usually impacted directly by the skill and working experience of workers Therefore, to improve product’s quality, first of all, they should regularly organize training programs for workers, and the first selection round should be screened more carefully In addition, to make sure the best quality, they should double check again and again the quality before being sold Technical Department should test carefully to minimize foam porosity; porosity affects the load capacity of the product Furthermore, KSC team should increase the number of samples to test class and technical error as well One more solution to improve the quality of the product is production specialization There are only some but not all workers to be in charge of manufacturing communication utility service manhole cover - Design: The forms of a product are influenced by the skills of workers and technology Thus, we should improve skills, get financial investment on technology to improve the mold quality Also, in terms of equipment and machinery, they can add large ball shooting machine for cleaning products to specializing in communications utility service manhole cover Shot blasting machines are now small size and low speed, so it cannot make the face of the products totally smooth Page 68 - Sample: products should be designed suitable for the taste and demand of customers 4-wing communication utility service manhole cover is favored in Vietnam while 2-wing one for export Thus, they should focus on manufacturing 2wing and 4-wing products but not 6-wing and 8-wing ones About the sample, in addition to the ability to load, they also pay attention to make nice samples to compete in both domestic and international market - Kinds of class: Because communication utility service manhole cover is usually installed in roadside which normal – class vehicles move on Thus, the development should focus on 25-ton-class and 40-ton-class trucks to take all advantages This is the biggest market segment in both Vietnam and international market - Warranty policy: increase warranty time, replacement installation from month to 45 days to easily compete with other companies 3.3.2 Solutions about pricing Price is an important factor for the success of a product in the market as well as the success of an enterprise Price should be reasonable If the price is too low, the profit is nearly zero While if it is too expensive, they will get lost customers Therefore, pricing strategies should be watched out to build up The price of Thien Phat communications utility service manhole cover is lower than that of domestic competitors but higher than that of foreign ones So, here are some solutions for communication utility service manhole cover in the near future: (1) Ready to give out the solutions to prepare the competitiveness of competitors in the local market, including: + Minimizing production costs by improving productivity and quality of human resources When workers with high working capacity can help reduce remarkably production expense; Page 69 + Reducing the cost of management and wasted products: Technical Department get a study to reduce the amount of damaged goods (1) Marketing Department builds up plans to advise customers to use a common guideline to reduce of mold expense Currently, there is no common regulation about the size of the product, the different sized products will use different sized mold, which makes the price increase (3) Technical Department constantly research on technique to lower price In particular, methods to research out cheaper alternatives will be highly appreciated The success of using silicon to melt and changing the rate of cast iron and steel CT3 in 2008 – 2009 is a remarkable achievement 3.3.3 Solutions about differentiation strategies Due to the specific characteristics and fierce competition trends in the near future, the company should create the differentiation for the product At present, the products have different patterns on the surface It's typically using patterns of Thien Phat compared those of competitors Rivals not have their own unique pattern for brand awareness To continue to differentiate communication utility service manhole cover, there can be two guidelines as follows: - Firstly, regarding to design: communication utility service manhole cover is currently using a switch for all swings Technical and Design should find out the ways to open separately one by one (wing) without depending on the main locked wing Certainly, it cost higher expense to produce different products However, extra costs will not be much but can get the satisfaction from customers - Secondly, the properties of cast iron products are often changed the form, which cannot overcome This often leads to unsafe traffic, especially no closing tidy the lid and frame often makes water fall down, causing undergrounded protection equipment flooded Therefore, it is necessary to upgrade the product by creating rubber with the shape of padding steps to improve the competitiveness of products Page 70 3.3.4 Solutions about PR and name - branding PR and branding the own business are extremely important In case, an enterprise with strong brands will have many advantages over the competition in the market When mentioning to the Sony brand, Toyota, Dell and Apple, consumers in the world that can figure out the product line and the quality That is why many enterprises are not strong enough to use the franchise of the famous brands in the market to compete Thien Phat is a newly founded company, products labeled customers’ logo After long times negotiate with foreign partners, particularly in order to increase the accountability of enterprises, they have agreed to put Thien Phat’s logo and brand name on the face With the domestic market, since the formal market entry in 2009, Thien Phat brand has been known by many customers However, Thien Phat brand name is still not as good as rivals’ although their quality is the same By doing survey 10 local design and construction companies, there is only customer knowing what Thien Phat is This number is too small So, in next time they should enhance PR and strengthen brand name Here are some proposals I would like to suppose: (1) Expanding the distribution network and customer contact, opening at least two representative offices in Da Nang and Khanh Hoa This is extremely important because customers can go to the representative offices to directly check the quality of the product (2) After building successful differentiation strategy, pricing strategy and product strategy mentioned above, promoting the PR for communication utility service manhole cover ]in the catalog, on the website and so on (3) Promoting PR about the quality of communication utility service manhole cover produced by the standards of European and the successful penetration onto the difficult markets like Japan the EU Page 71 (4) They should continue to negotiate with foreign partners about taking Thien Phat’s specific signals on communication utility service manhole cover The products of foreign competitors usually Ion the characteristic pattern of Thien Phat pattern for the tank lid communication cables - power Currently, communication utility service manhole cover is usually stamped the rhombic pattern or patterns of distribution agents on the surface of the product If successfully negotiated, it will make great impact on the development of Thien Phat brand name in international markets 3.3.5 Solutions about Marketing to enlarge the market One of the immediate solutions to expand the market is looking for new customers besides current ones Finding new customers will help the company not only increase sales and market share, but also get sustainable development In the domestic market, they should contact directly to the potential customers, such as: the Electricity Department, the members of the military telecom group and so on Because this group directly uses the product, they should focus on measures to promote excellence in product quality and price They have the important right to make decision to buy or not to buy the product This group show main concern to quality and price, so it is vital to focus on advertising and promoting the product on the field In addition, they should also keep the eyes to the group indirectly using objects or consulting (including: construction companies, bidders, consulting firms, and son on) Although they not use them directly, nor make decision to use or not to use the product, they are likely to impact on others through counseling technical criteria So, with this group, they should focus on the technical features of the product, the technical standard criteria applied to company products (for example: Standard BS EN 124:2008, ISO 1083:1987) For the international markets, they should promote finding new customers through the Internet and International Exhibitions oversea In addition to the Page 72 markets successfully penetrate such as Germany, Italy, Spain and Japan; they should to other developing countries such as France, Australia, and New Zealand and so on Because of the specific characteristics that customers are usually cooperation with high quality requirements and high revenue Therefore, it is much better if communication utility service manhole cover and other products exhibited in some international fairs to introduce them Another useful method is electronic commerce, using www.amazon.com the international product websites introduction, and such as: directly www.alibaba.com, send letters of recommendation directly to customers in this market Page 73 CONCLUSION In the context of fierce competition, a company can get a stable standing in the market only when they can build up appropriate development plans They cannot survive in case their market and market share are lost So, it is the common trend that all enterprises should constantly expand the market, take advantages of all competition strategies in order to increase revenue and profit Recently, Thien Phat has expanded the market and successfully penetrated into domestic market Nevertheless, they have not created their key products to make their brand stronger The revenue of communications utility service manhole cover is forecasted to increase, yet that of other products is nearly leveled out in the near future Hence, my thesis aims to research, analyze some of their strengths and weakness together with economic and politic factors which influence on the development in future Within the scope of the thesis, I focus on analyzing the outstanding, and then propose some solutions to aim at expanding the market and increasing the revenue In general, expanding the market share for a product is not a new topic; however, due to the specific characteristics of communications utility service manhole cover and ductile iron cast companies, there is still no-one choose it to a research So, I hope that my proposals especially the strategic solutions mentioned above can be helpful for them to differentiate and spread their brand name Despite with the best attempts, because of limited time and experience, my study has not mentioned more about export market, but only made surveys to some rivals and customers who are using their products So, hopefully that the next research can overcome these weak points During all the time doing this research, I received much valuable help from classmates, co-workers and leader team in Thien Phat Company, especially Dr Page 74 Pham Thi Lien I would like to send my deeply thanks to them for helping me to complete successfully the thesis Because of my lacking knowledge about economy and involved sectors, there certainly remains some limitation in the thesis So, I am looking forward to receiving the reasonable feedbacks to make the thesis “Developing the market share for electric and communication manhole cover in Thien Phat company” more perfect Page 75 LIST OF REFERENCES The reports of Profit and Lost of Thien Phat from 2008 - 2012 Reports of Phuong Nam Securities, Maybank Kim Eng Securties, and BIDV Securities FRED R.DAVID (1998), Definitions about strategic management , Thong ke Publisher Michael E.Porter (1996), Competition strategies, Khoa hoc va Ky thuat Publisher State bank of Vietnam Nguyen Bach Khoa (2003), International Commerce and Marketing, Thong ke Pulisher Nguyen Huu Khoa (1995), Commodity science, Giao duc Publisher Philip Kotler (2003), Marketing management, Thong ke Publisher Tài liệu giảng dạy trường Đại học Thương Mại 10 Tang Van Ben (1998), Marketing in business management, Thong ke Publisher 11 General Department of Vietnam Customs 12 General Statistics Office Page 76 APPENDIX SURVEY FOR CUSTOMERS Have you ever bought any Nắp bể cáp thông tin - điện lực yet? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… How long have you used Thien Phat’s products? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… What you think about the suffer capacity of products made by Thien Phat comparatively to other companies? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Could you please give me your idea about the price of Thien Phat’s products comparatively to that of other companies? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Could you please give me your opinion about the quality and design of Thien Phat’s products to those of other companies? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Could you please give me your opinion about the average consumption of both Nắp hố ga and Nắp bể cáp thông tin - điện lực in some recent years? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Page 77 APPENDIX QUESTION LIST TO INTERVIEW PROFESSORS Could you please give me your idea about the quality of Thien Phat’s products comparatively to those of other companies? Could you please give me your opinion about the Vietnam export tax policies of cast iron manhole cover in some recent years? Could you please give me your idea about the import tax policies of … Nắp hố ga gang đúc made by Vietnam exported to European? Could you please give me your idea about Thien Phat’s market share in domestic market? Could you please me give me your opinion about the skills and labor productivity of Thien Phat’s workers comparatively to those of other companies? Could you please give me your analysis about the current domestic and international economy in the period of 2007 - 2012? Could you please give me some news about the up-and-down change about the price in the market, especially in iron and steel market in the period of 2007 - 2012? Could you please give me your opinion about the development prospects for the cast market in the future? Page 78 ... commodity exchanges between buyers and sellers are took place Therefore, market was identified to be a place to exchange goods between sellers and buyers The concept was gradually wider and more various... development and success of an enterprise Their business can be still successful without specific strategies; however, with effective strategies, an enterprise can develop better and better The... improvement, technological alternative level, potential achievements and other issues related to intellectual property Page 17 Some of advantages when using PEST model to evaluation an enterprise: