Xây dựng chiến lược markeing xuất khẩu đèn led của đèn rạng đông

MARKETING STRATEGY FOR EXPORTING LED PANEL LIGHT BULB INTO CHINA (GUANGZHOU) OF RANG DONG LIGHT SOURCE AND VACUUM FLASK JOIN STOCK COMPANY CONTENT Executive Summary 1.1 Introduction of Rang Dong light source and vacuum flask Joint Stock Company (herein after called “Rang Dong Company”) Rang Dong Company, former Rang Dong light source and vacuum flask factory, was established in 1958 Being of 13 first companies established following Government’s Decision, lay the foundation for Vietnam industry in socialist construction period Establishment history 1961 Rang Dong light source and vacuum flask factory was established following Decision 003 BCNN/TC dated 24/02/1961 1963 Opening factory operation Began production, products included incandescent lamps, fluorescent lamps, vacuum flask 2001 Applying Quality Control System ISO 9001: 2000 into production an management (now called ISO 9001:2008) 2004 Equitization, becomes Rang Dong light source and vacuum flask J.S.C following Decision No 21/2004/QD - BCN signed on 30/3/2004 Equalization period 2006 Production expand, built base no in Que Vo Bac Ninh Industry zone with area of 62.000m2 2007 Official listed on Ho Chi Minh city Stock Exchange 2008, investment on installation of Soda-lime glass furnace, most modern technology of Japan, having capacity of 30 tons/ day and lead-free glass, most modern in Viet Nam, having capacity of 19 tons/ day This help Rang Dong to not only having initiative in supplying glass finished product for producing light bulbs, increasing quality of products, limit exhaust fumes, protecting environment but also giving Rang Dong to extend exportation of glass products to overseas markets 2010 Rạng Đông coordinated with Hanoi University of Science & Technology to establish HUT – RALACO joint lab specializing in study of new technology, materials for production application Coordinate with CTDAS, Vietnam Science Institute to study, produce LED light source which is energy saved, eco-friendly In strategy of developing high quality, efficiency, economy of electric, eco-friendly, Rang Dong has advocate development of new light source such as high voltage ligh bulb, LED light bulb 4/2011, Rang Dong established R&D center, continuing to study and develop new product lines together with improving company’s technology and sciency level Brief description of products or services Majot products of Rang Dong include: light bulbs, compact, led, high voltage, fluorescent, balat, desk lamp, lighting device and vacuum flask Among of those products, the product targeting to China market is LED panel type 300x300, 300x600, 600x600, 150x1200, 300x1200… with high quality, having much customers’ goodwill in Vietnam Product image Panel LED 150x1200 Product characteristic: - Applied technology of light guide on optical glass plate following full reflection principal - Frame panel made by aluminum alloy, quick heat release, good strength bearing, less deformation, frame panel surface is non-oxygenizable - Panel use light dispersive plate creating even light across the face of panel, reduce glare - Comply with standard: IEC 62031: 2008, IEC 62384: 2008, IEC 61347- 213: 2006 - LED Samsung chip Advantages: - Use high quality LED chip, long life-time and high color rendering index - Save energy of 30% comparing to fluorescent light T10 using magnetic iron balat - High capacity index (cosφ >0,95), low electromagnetic diffraction, not affecting to other electronic devices - No mercury contained and no virulent chemical, no ultraviolet rays and ecofriendly - Beautifully designed, suitable with restaurant, hotel, office Specification Model wattage (W) Luminous flux (lm) Ra Color temp (K) Lifetime (hrs) Dimension DxRxC (mm) D P01 15x120/28W 28 1750 80 5000/6500 25000 1200x150x14.5 1.2 Define target market China is a strong consuming market because of large population, stable and steady economic Target market in China targets is high and middle class This is the group of high income earners preferring to use goods which are high quality, health safety, environment protective and energy saving 1.3 Competitive advantage The advantage of Rang Dong’s products comparing to other company’s lighting products are good quality products, meeting requirement of China’s standard as well as applying international quality control system such as ISO 9000, ISO 14000, SA 8000 1.4 Positioning Statement Development strategy aiming green economic, applied science technology in production, using less material, higher performance, eco-friendly plays important, decisive role in stable development, environment protection With the understanding of light, customer’s demand, Rang Dong target to become the leading producer of high quality, high efficiency, energy saving, ecofriendly light sources Statement of Rang Dong is: DON’T SAVE LIGHT, SAVE ENERGY! COMFORTABLE LIGHTING CONSTITUTES QUALITY OF LIFE! 1.5 Anticipated sales, profits and market shares Anticipated markets: Beijing and Sub-urban cities in China Market and Situation Analysis SWOT analysis 2.1 Strengths: + Outstanding strengths are good quality, diversified products: this is presented through the awards received from internal markets as well as international customers’ trust + LED product are high quality product, high technology, high efficiency, electric saving, safety and environment protected It is safety because it is using semiconducting electric current instead of alternating current + Policy of product exchange when associating with giant commercial partner Alibaba.com is applied in purchasing production line of LED light and rare earth material in China, therefore there is commitment to consume 50% production of supplied line and material + China produces redundant electric from coal-thermoelectric and hydropower plants However, Government protect and stabilize electric only for production and State company in order to stabilize price, regulate macroeconomic but not for household consumer People have to pay high price for electric consume therefore they will save electric + Distribution channel of Alibaba.com in China is very famous and popular in domestic and abroad therefore it is prestigious to deliver product to consumer together with traditional distribution channel & construction project + Particularly, LED panel have no mercury contained, no ultraviolet ray created, no virulent chemical therefore it is very safe and eco-friendly Efficiency reaches to 90 lm/w, high capacity index (cosφ > 0.95), low electromagnetic diffraction, not affecting to other electronic devices Besides, it use high quality LED chip creating a long life-time LED pane lasting over 25000h, high lighting efficiency, save up to 30% electric energy comparing to fluorescent light T10 using magnetic iron ballad + Safe, environment protected, energy saving + Similar culture between China and Vietnam + Modern production equipment: Rang Dong has invested to innovate production technology, increase coordination with scientists to study and produce new products Company has also invested more than 20 billion VND for R&D center in order to create best environment for research activity, application of technology & science for production + Qualified and skilled staff: well trained by company for the purpose of using new technology equipment for production Besides, Rang Dong has developed large and powerful engineers, up to 40-50 peopole + China has reformed as well as issued attractive and stable policy absorbing foreign investors Since 1992, China has introduced policy series of reducing restriction of foreign investment including: Policy of foreign investment company in 1995; “foreign law”, “Law of joint venture between People’s Republic of China and foreign company”, “Law of owner’s capital for joint venture company” issued from 2000 to 2001 Accordingly, foreign investor has legal right and are protected by foreign investment regulation, In 2002, China issued “List of guidance on foreign investment on Industry” to reduce more restriction of foreign investment activity and canceling the difference of exchange rate and other aspect arisen from policy As a result, government’s policies have created equally competitive environment for multinational corporations and encouraged a possession in China + China and ASEAN country have a strong economic cooperation Trade between China and ASEAN country in general and Vietnam particularly has promptly developed + Finally, China has a long border with Vietnam, therefore, goods transportation and supply shall be convenience This help to save cost and make the products more competitive than multinational corporations’ or Eastern company’s ones 2.2 Weakness: + As same as other Vietnam companies, Rang Dong’s staff still lack skill in studying investment law and regulation This cause challenges as well as competition with other company + Chinese language is also a great challenge to Rang Dong’s staff They need to spend more time to learn language which may cause opportunity loss of investment + There is no separate product’s brand name for China market but mainly export through Alibaba’s distribution channel This is very difficult for Rang Dong’s strategy of creating separate product’s brand name and direct exporting to China market + Materials for company production are imported from abroad Therefore, it has a risk when material’s price in the world has extraordinary variation, causing the increase of input material’s rate and reduces the product’s completion in China market + Detailed know about China market is limited It is because of complicated legal environment of China 2.3 Opportunity + Approaching to China market is an approach of extremely huge market China has largest population in the world According to national population investigation performed in 2010, China population reach to 1.316.562.729 billion people with more than 50% China population in range of working age 2.4 Threat + Legal environment in China is complicated, sophisticated in line with technical barriers China is prepared for criticizing foreign company sometimes in order to protect domestics It is considered a challenge to any company bringing products into this market + Economics: as noted, GDP has increased but months of Q2 has decreased 3% and experts predict that there is a signal of more reduction + Severe competition in electric light bulb market: occur between companies from developing countries, particularly the remarkable companies from India, Bangladesh, Mexico… + China’s consuming trend is high requirement and diversified creating a difficulty for Rang Dong in producing separate product for this market + Resulting from the above information, build of SWOT matrix of Rang Dong in China market could be as follows: Opportunity: • Large scale China market, Threat: high • Leal consumption; environment in China is complicated, sophisticated in line with • Vietnam is member of WTO creating technical barriers; • Economic crisis and depression; advantaged condition for Rang Dong to receive tax incentive • Severe competition in electric light bulb market; • Chiness people’s consuming trend is diversified and unstable Strength: Weakness • Good quality and diversified products; • No separate product’s brand name for • Products are safe, environment protected, China Exported through distribution channel; energy saving up to 30% for people; • Competitive price; market • Most of materials for production is • Good relationship with numerous partners imported from abroad; in China market; • Qualification of design team required • Large scale and high productivity; improvement to meet a demand and • Long term prestige with foreign partners; changes of new tendency; • Modern production equipment; • Limitation in knowing China market; • Skilled staff • Capacity and resource for marketing remain limitation Market Segmentation and Customer Analysis 3.1 Market Segmentation Ancient China has obtained many achievements in technical and science research Among them, there are mentionable achievements such as compass, gunpowder, technique of paper making and printing which are considered as four great inventions In addition, there are other inventions on different fields China’s space program today is outstanding achievement, applying and corporating various advanced and improved technique and science In order to meet demands from different customer group, Rang Dong has created a product type representing a separate product line which is high grade product for high and middle class people in Beijing, China Those people trend to use high grade and elegant designed product 3.2 Target market/segmentation characteristics + High class people in China: high demand and often purchase goods based on famous brands, high quality product, and luxurious shops and require close standards Such customers often concentrate in center areas, goods supplied are world famous brand names and originated from reputed countries such as France, Italy, Germane… + Middle class people: They are the ones who have fairly high income They are somehow easy and more comfortable to demand in purchasing household goods Such customers are interested in beautiful design, high quality and reasonable price + There are many cheap price, low quality goods in China Foreign company have less chance to compete domestics in this market, therefore Rang Dong has considered that Rang Dong is capable to compete with other companies from foreign and domestic in chosen segmentation market Objectives and Goals “Where the business needs to be” 4.1 Mission Statement Rang Dong has determined main duty of building strong company for all aspects, creating more jobs for works, actively participating in social activities contributing to stabilize employee’s life, close community Effort to create brand name product having steady position in market as well as customer’s trust 4.2 Objectives for volumes, sales, market shares, gross margins, net profit, return on investment (general objective) + To maintain stability, organize operation model of parent company having large scale, advanced technology, modern equipment + To make plan and progress that until 2008 Rang Dong shall become a corporation, interdisciplinary business in which majoring in exporting products to abroad + To make strategy for reforming the company which bring the Company to be flexible in operation, create strong brand name of product, gradually export Rang Dong’s product to overseas markets + To train skill staff in professional in technology, organization management of production meet the Company and member’s demands + To create best conditions and policy for caring employee’s life, involvement in environment protection and development of community 4.3 Particular objectives + Determine the target of increasing annual sales average of Company to be 10% to 15% during period from 2014 to 2017, and up to 2018, total Rang Dong’s sales shall be 02 time higher than in year + Major objectives in 2013 are as follow: Turn over: 3,150 billion VND Profit before tax: 110 billion VND Minimum dividend expected: 20% Strategies and Tactics “How to get there” 5.1 Pricing strategy Product evaluation: high grade product 10 Target customer: appropriate with customers who have medium income upwards (household, apartment block, supermarket, public civil construction, high level hotels) Determine price strategy: price shall lower than other products having same quality and possibly replace other simila light bulb Price: Use strategy of setting up price to be a bit lower Penetration price access: try to have customer’s preference of product by applying good price for the same level quality products (normally, price shall be valued at 5%-15% lower than other similar products’ price from other company available in market) In addition, if price is too low, it shall cause an suspect of dumping price, meaning than offer an price lower than production’s cost This is illegal and leading to “strike back” from competitive company as well as reaction of domestics They shall inform to tax inspectors of government for inspection In fact, pay attention on setting price at “recognizable value” corresponding between selling price and value Researching and surveying market help you to determine the price which customer could recognize the value Applied time: at least year It is sufficient time to positioning product of LED pany of Rang Dong After this time, price shall increase gradually up to current price Reason: First, we cannot remain low price without affecting to company’s profit and business Second, low price policy will not bring advantages to competition When gaining position in target market, it is possible to increase profit by increasing price This is reasonable process with the conditions that customer accept it Change in price after penetration: Gradually increase price to current level It depends on following factors: income growth, breakeven point, price sensitivity, inflation For LED panel, its price is calculated following formula: processing price = labor cost + material cost + training cost + packaging, transporting and shipping cost This current price is not high causing possibility of low profit Therefore, in coming time, by strategy of creating separate brand name and 11 product of Rang Dong, the price shall include the added value of product Rang Dong is able to value the higher price of product which the customer find acceptable because the middle & high class people in China have good income; they are not sensitive to changes in price 5.2 Product Strategy China people’s needs and hobby are diversified, plentiful product requirement which attached with different quality level However, in China’s electrical market, Rang Dong should focus on high quality product having advantaged competition comparing to other domestic’s product due to the spread of low quality China’s products In product strategy, Rang Dong’s product is high quality, energy save which shall be guaranteed by Rang Dong 5.2.1 Strategy of product quality Chian is a potential market therefore the competition in this market is fierce IN order to have strong position in this market, Rang Dong has to incessantly improve product design to meet Chinal peopole’s liking, create new products and maintain products in high quality level 5.2.2 Strategy of product packaging Rang Dong’s product are light bulbs transported to China by road or railway through border gates There are some difficulty accessible roads, hence the product shall be packed in lot putting into cask and transported in container However, for the purchase order of small quantity and urgent delivery requirement, products shall be transported by airway and accordingly packaging of product is flexible to be convenience for transportation In that case, product shall be packed in plastic bag then put in carton box which keep product in good shape Company product packaging shall be printed information of specification, usage guidance which is now currently not applicable This current package not reflect correctly function of packaging, only for basis function of product protection The main reason is that direct sales to foreign customers is limit, products are mostly purchased or order through middle party, channel distribution, 12 therefore, company could not print information for advertisement of product and brand name As a result, in coming time, together with create brand name for company’s products to sell to the final using customer, Rang Dong needs to pay attention on improving product’s packaging, printing information for advertisement of company’s products, brand name and images 5.3 Promotion strategy 5.3.1 Advertising Advertisment of Rang Dong’s product should focus on targets: Firstly: Information conveying; Secondly: Customer convincing; Thirdly: Propaganda for reminder Advertisement’s message should be simple, attractive, easily understandable and emotional Advertisement means: through television, radio, newspaper or internet However, in the short term and to save expenses, company is advised to use advertisement tools which are less expenses but high effective, widely spread and popular nowadays such as social media marketing or advertisement on famous China websites Besides, company can use television, radio channel network of Vietnamese community living in China to advertise the product to target customers In addition, company could proceed advertisement through catalogue, billboard… 5.3.2 Selling Beside advertising, Rang Dong needs to innovate thought and develop selling by product exporting About thought, company sales and agents needs to change thought from passive role, caring about selling product out, to self-motivated sales and care about development in customer services and customer relationship marketing in order to keep and develop repeated and loyalty company’s customers To that, Rang Dong should pay attention on employment of staff and training sales staff In oder to reduce cost, company could employ Vietnamese residing in China, train them for company’s product sale The employment of overseas Vietnamese shall bring benefit to company because the low salary 13 payment than hiring local people As long residing in local, they will have knowledge of culture, local habit, consuming demand 5.3.3 Sales promotions Internet is a tool supporting to company’s business operation as it has high speed of image, information conveying, low expenses, able to widely connect with customers in everywhere of China Therefore, Rang Dong should exploit internet environment at the highest possibility for sales promotion, development of brand name through websites Company could establish its own website with Chinese language in order to introduce about company, products to Chinese customers, concurrently developing it to be sales channel, advertisement and development of Rang Dong’s brand names Information in website should be a scientific layout, rational, userfriendly interface and suit Chinese liking Besides, the company should also regularly update information of company’s image and product for the customer’s information If not maintain the website, it shall soon become useless conditions Budgets and Controls Sales, expenses and marketing budgets Company should increase budget for marketing strategy in China’s market, in which expenses for market research, looking for partners should be focused in initial time, afterwards are expenses for marketing operation (particularly social media marketing) Details of estimation cost for marketing operation are as follows: Cost for hiring shops: …………………………………… 3,000 USD/month Cost for product promotion: Cost for advertisement: …………………………………… 20,000 USD Cost for promotion: ………………………………… 10,000 USD Cost for public relations: ………………………………… 7,000 USD Cost for employment: …………………………………… 4,000 USD/month Cost for maintaining goods: …………………………… 1,000 USD/tháng Cost for shop decorations: ………………………………… 10,000 USD 14 Besides, indentifying and deploying risk management are the weakness of Vietnam’s company in general and Rang Dong in particular, therefore, in order to assure the success of marketing strategy in China, Rang Dong should establish a separate division to be in charge of risk management arising from implementation of marketing It should particularly pay attention on legal environment and severe competition from similar product suppliers in China’s market REFERENCES http://www.youtube.com/results? search_query=raffles+amedabad+channel&oq=raffles+amedabad+channel&gs_l=yout ube.3 7416.8659.0.9468.8.8.0.0.0.0.155.808.4j4.8.0 0.0 1ac.1.QvyG8LX_Wus 15 ... environment but also giving Rang Dong to extend exportation of glass products to overseas markets 2010 Rạng Đông coordinated with Hanoi University of Science & Technology to establish HUT – RALACO joint... light bulbs, compact, led, high voltage, fluorescent, balat, desk lamp, lighting device and vacuum flask Among of those products, the product targeting to China market is LED panel type 300x300,... with standard: IEC 62031: 2008, IEC 62384: 2008, IEC 61347- 213: 2006 - LED Samsung chip Advantages: - Use high quality LED chip, long life-time and high color rendering index - Save energy of