Marketing mix strategy to expand the market for 3d shirt uniforms

PROFESSIONAL DEGREE IN MARKETING AND SALE (2015-2018) INTERNSHIP REPORT MARKETING MIX STRATEGY TO EXPAND THE MARKET FOR 3D SHIRT UNIFORMS Class : Marketing Name : Le Hoai Nam Tutor teacher : La Tien Dung, Prof Corinne Montoya Company name : Paradise Vietnam Tutor in the company : Hoang Van Thanh HA NOI - 2018 SUMMARY With our current market, with the tendency of opening up the integration of the world economy, the application of marketing strategies in brand marketing communication activities is extremely important for the company’s survival and development Private business is an important factor in promoting the development of the business In the context of an evergrowing economy, optimizing profit and increasing brand credibility are important steps for this long-term market survival Vietnam garment market is a very potential market, the demand for this item is endless Stepping into this market, the profitability of the business is extremely large; however, the competition between business enterprises in the same industry is increasingly fierce Having favorable opportunities for business development, Zenco Co., also encountered many obstacles Although the company has been established for nearly years, it has just begun to produce and market its own garments The volume of goods sold and profitability is still low and unstable Therefore, maintaining and expanding the market is an urgent matter that need to be addressed now if the company wants to stay in the domestic garment sector Throughout my internship at Zenco with the kindly supervisor of Dr La Tien Dung accompanying with my effort research, I have completed our graduation thesis on the subject: " Marketing mix strategy to expand the market for 3D shirt uniforms." ACKNOWLEDGEMENT During my internship, research and doing the lecture "Marketing strategy for 3D uniforms", I received a lot of help from the school as well as ZencoVN Co., Ltd First of all, I would like to send my gratitude to all the teachers who are working at the Thuong Mai University and gave me the opportunity to study, study and practice in a professional environment I would like to express my deep gratitude to the instructor - Dr La Tien Dung - for his helpfulness, guidance and instruction during the course of this thesis I would like to thank all staffs and employees in Zenco limited liability company for creating all best conditions and guiding me dedicatedly during the practice of your company and providing data and information for me to complete this essay Due to several shortcomings, my lecture is still limited I look forward to receiving the comments of teachers Sincerely! INTRODUCTION What you think about fashion? Luxury and expensive? What is your dressing style? (simple or sophisticated)? Do you think that it is so trendy? How much money you spend on shopping for clothes? These are questions often posed to young people who love fashion Today, along with the development of society, fashion trends also change and grow rapidly based on the demand From the characteristic materials for each season of the year, the designers also create new styles and bring a new fashionable breath of modern fashion When wearing pants, a trendy dress will make people more beautiful, more confident Fashion can play a very important role in today's society, and that is why this industry has attracted many businesses to join the market including ZENCO LIST OF TABLES CHAPTER 1: OVERVIEW ABOUT TO MARKETING STRATEFY TO EXPAND HANOI MARKET FOR PRODUCTS OF Zenco Co., Ltd 1.1 Research urgency of the project For any business, issues related to consumer markets are also vital The market is the place where the business sells products and services, serves the needs of consumers and get profits from it But the economic situation is always fluctuating; as a result, the market also changes and there is no long-term stability In order to survive, develop and affirm the position, every business needs to make good use of its resources and adapt to change flexibly and to constantly develop strategies to occupy market share Vietnam, with a population of nearly 90 million, is a country with a young population structure, people's income is constantly increasing, the demand for garment is diverse, so the business of garment is a rich and potential business In recent years, thanks to the variety of models and good quality, Vietnam's garments are increasingly popular among consumers, promising to bring many benefits for domestic enterprises By running a business and moving towards a promising market such as the apparel market, plus companies starting to make their own and branding themselves as Zenco, competition is fierce From the business sector is inevitable Not to mention the businesses have confirmed the status and growth in the country such as Gấu uniform, Zumi.com, Zenco also faces many difficulties when Vietnamese consumers are also favored foreign products – the famous and affordable brands such as Zara, Mango, H & M, Due to the company's market issues and the fierce competition that I have mentioned above, it is imperative to research the marketing solutions to help Zenco Ltd expand the market for its products garment company 1.2 Research objectives - Systematizing the basic theories, market expansion modalities, and mixed marketing tools to market the company's business - Analyze the situation of marketing solutions to expand the market of garments of Zenco Co., Ltd in Hanoi, thereby multiplying the advantages, limitations and causes - Proposed solutions and recommendations to address the remaining constraints in the marketing solution of Zenco Co., Ltd., helping the company improve its competitiveness, position as well as expanding and developing the market share 1.3 Research scope The scope of the study includes: research subjects, research scope, research products and study period - Research subjects: + Content of the research: marketing solutions to expand the company's garment market, focusing on variables: products, pricing, distribution and promotion + Customers: mainly institutional customers and schools - Scope of market research: the research activity is limited at Zenco Co., Ltd in the area of Hanoi - Research products: the company's 3D uniform - Research time: research on the data from 2015 to 2017 Then introduce mixed marketing solutions to develop the market in years 2018-2020 1.3 Research Methods 1.3.1 Data collection methods 1.3.1.1 Secondary data a, Collected data + History and development of the company + Business lines, organizational structure + Business results in years 2015-2017 + List of products, policy of discount + The list of customers of the company + Budget for promotion activities + Marketing concepts and theories b, Source: + Source inside company: Collect data about the list and price of the company's products through the Zenco.vn website; Obtain reports on business results from marketing department and financial reports of the company through the years especially years 20152017 + Source outside the company: Basic Marketing Curriculum – Assoc Prof Tran Minh Dao, Marketing Manager - Philip Kotler, 1.3.1.2 Primary data a, Collected data  For administrators: + The market and target customers of the company + Objectives and strategies of the company + The current marketing solutions that the company is using + The urgent issue that the company sets  For customers: + Interest and preferences of customers about the company's products + Assessment and evaluation of quality, price, product design + Advantages and disadvantages when buying goods + Information accessing + The contributions that helps the company to improve the product to the customer b, Source: synthesized from the observation, investigation, interviews directly with the members of the company about issues related to business and marketing solutions to expand the company's garment market recently; and from customers through interview questions about wants, preferences, reviews and opinions about the company's products c, method of collection:  For administrators: Subjects: interviews with managers of the company, including one director and one vice director, three sales managers and three sale staffs + Time: week + Number of questions: 17 questions revolve around the company's market development policies  For customers: + Subjects: randomly Conducted questionnaire for 50 consumers in Hanoi + Time: week + Number of questions: 16 questions for customers have used and 12 questions for consumers have never used the company's clothing, survey about the demand and reviews about products and policies of the company 1.3.2 Data Analyzing Method 1.3.2.1 Secondary data + Comparison method: It is used in analyzing the selling data and financial situation by comparing with previous years Consequently, realize the trend in selling effectiveness to suggest the suitable solutions for the next period + Ratio method: Usually used with comparison method to show the change of statistics through years, 1.3.2.2 Elementary data + Synthesis method: Summary of questionnaires, interviews to analyze the data collected; synthesize and select information logically, in accordance with the content of the topic + Statistics method: Statistics results in the coupon template, emulation From that, extracting percentage of percentage, judge the current problems accurately + Comparison method: Comparing among ideas and suggestion to figure out the core problems CHAPTER : BRIEF SUMMARY OF BASIC ISSUES IN MARKETING MIX SOLUTIONS TO EXPAND THE MARKET FOR COMPANY PRODUCTS 2.1 Market concept Market is closely stick to the term “commodity of manufacture”, it is environment for process of the business transaction of every company Accompany with the productmanufacturing development, the term “market” is becoming more popular and variable There are some concepts about the term “Market”: Philip Kotler’s concept: "the organization's marketing task is to determine the needs, wants and interests of target markets and to achieve the desired results more effectively and efficiently than competitors, in a way that preserves or enhances the consumer's or society's well-being According to marketing perspective, the term marketing is judged in two aspects: In macroscopic aspect: Market is understood as a complex and continuous set of business environment, attractive goods-exchange relationships executing in an open space of providing objects and the interactive relationship between them - In microscopic aspect: Market is understood as a set of customers who have the same demand for the product of the companies and its rivals 2.1.1 The concept of market expansion Market expansion or market development is understood to be an extension to meet the unsatisfactory need to create new opportunities for the business Market expansion is the process of enhancing the ability to exploit the market and develop new markets of the business company to achieve business goals and improve the position of the company in the specified period 2.1.2 The role of market expansion for business Market expansion is a condition of business survival In the modern manufacturing economy, science and technology are increasingly advanced, the competition is fierce on the global scale To be successful in business, a business must not only gain market share, but the company must the top of the market In order to that, it is imperative that businesses keep expanding their markets and gaining a firm foothold Expanding the market helps businesses speed up the consumption of products, exploit all potential of the market thoroughly Expanding the market shortens product life cycle in the process of circulation, accelerates the cycle of expanded reproduction, increases the turnover of capital, and increases profitability Expand the market to develop stably, increase market share, improve its position in the domestic and international market The higher the market share, the more competitive your business is, so it can easily enter the new market 2.2 The basic content of the marketing mix solution to expand the market 2.2.1 Research and target market of the company 2.2.1.1 Company market research Market research is the first and most important step of every marketing strategy to penetrate and expand your business A well-executed market research will provide businesses with accurate information about the market and factors that influence the market of the business From there, it creates the conditions for the manager to make appropriate and effective marketing decisions Market research will focus on the matter subject of the purchase and the type of merchandise that the business is producing, and the structure of the commodity market as well The enterprise must determine its market share In comparison with competitors' market share, there are specific marketing solutions Market research must answer the question: Who are the customers? What characteristics they have? How much they buy? Structure type of goods? Where they buy it? What is the purpose of the purchase? Who is competitors? The main purpose of market research in market penetration and expansion is to study consumer attitudes, habits and characteristics From there, businesses seek the adaption or influence on other impact factors In other words, this is the study of potential customers of the business in all aspects such as scale, financial status, affordability, behavior, motivation to buy, so that it can meet the needs of the customer 2.2.1.2 Customer set and characteristics of customer sets With the strategy of penetrating and expanding the market, the target customers of the business are new customers and current customers in the new market and the current market New customers haven’t known or used products of the business, they may be customers of competitors and have no trust in the product of the business In this case, businesses need to take measures to entice them to use their products by enhancing their credibility and position in the marketplace, creating credibility and satisfaction about the product in customer With current customers, they are the ones who have used and have had a certain belief in the product of the business However, depending on the needs and conditions allowed, they only buy in certain quantities, they can also fluctuate and switch to other competitors' products with greater benefits To that, the company needs detailed research and specify its customer CHAPTER 3: ANALYSIS OF RESULTS OF MARKET RESEARCH IN MIX MARKETS TO PARTICIPATE IN HANOI MARKET FOR ZENCO PRODUCTS 3.1 Overview of the business of Zenco Ltd 3.1.1 About Zenco Co., Ltd Company Name: Zenco Co Ltd., Head office: 55/5 - Huynh Thuc Khang - Dong Da - Hanoi Chartered capital: VND 6,171,000,000 Zenco Co Ltd., is a state-owned enterprise operating under the Business License No 0106115850 dated 06/03/20012 issued by the Department of Planning and Investment of Hanoi City The company has been named Zenco since its inception and has continued existing for six years In the early years of establishment and operation of the company, there is only a few samples of uniforms with simple monochromatic colors Later, when the demand for aesthetics increased, the company has researched and developed many different models and types, specially the product of 3D clothing launched in mid-November 2017 Currently, the company has a business capital of VND billion and 150 employees are assigned tasks in accordance with the professional level of each person  The organizational structure of the company Company director Vice director – in charge of production Vice director – in charge of technique Organization and administration department Financial department Profession and major department Marketing department Technology and electricity department  Main business fields of the company - Producing and processing textile and garment products for export and domestic consumption - The main activity of the company is processing customers provide raw materials, designs, models, technical documents, the company manufactures according to the request of 10 3.2.1.5 Technological - technical environment Today, the technology is modern and has a great influence on the commercial business of the business Modern technology supports enterprises from manufacturing, managing quality and consulting sales-payment- transportation The garment enterprises in Vietnam in recent years are well aware of the importance of technology in production Companies continually import machinery and equipment of foreign countries to replace peanut equipment for example, the manufacturing system has changed from foot pedal machines to modern automatic sewing lines Thanks to modern technology, Vietnamese enterprises have improved their labor productivity and product quality and lowered product prices to increase their competitiveness 3.2.2 Micro environment 3.2.2.1 Customer Hanoi is a city with rapid economic development of in country, which is concentrated large number of customers have high living standards and stable income With the increase in living standards, they are willing to spend more on clothing - most of which show social status and personal style They are increasingly demanding in shopping and require the higher level of quality, design and brand reputation Developing business to meet the maximum customer demand and completing the services is the necessary act that Zenco have to achieve 3.2.2.2 Competitors Having a business is sure to have competitors, especially in the garment market which is trending to be saturated As a company engaged in both fashion and production, Zenco needs to face a lot of competitors in order to maintain its track record and develop its market The first competitor is the domestic textile and garment enterprises It is the past that Vietnamese consumers bought cheap clothes, cheap Chinese goods People increasingly prefer to use textile products of domestic enterprises because of following reasons: the model is increasingly beautiful, the price is more suitable, good material, less toxic worries Prominent among them are the famous Gấu Uniform with uniforms of various designs and colors, ZUmi with excellent marketing team and good quality products are favored for variety of types and prices The second competitor is the foreign fashion brands The most popular brands in Vietnam are F5, Cava, Anima They are fashion brands from Malaysia, very popular for its modern color, trendy design, fast pace of change, affordable price and now dominates the fashion market In Viet Nam F5 has a huge fan base in Vietnam because of low price, simply and fast-update In order to deepen the market, Zenco needs to learn the advantages of these 13 brands in product design, then have to quickly promote their brands and also take the price as a competitive advantage 3.2.2.3 Supplier Suppliers are parties that provide inputs to the business The main material of the textile industry is fabric The fabric is very diverse in design and type There are also garment accessories such as: needles, straps, buttons, laces, chemicals If the supply of these inputs fails, it will greatly affect the business process of the enterprise, especially in the context of competition As such, Zenco is now building a strong relationship with the fabric supplier as well as garment accessories, and there are always alternative policies that avoid the risks at the highest level 3.2.2.4 Marketing intermediaries Intermediaries have a great influence on the business of the company Intermediaries such as Techcombank, Agribank, Agribank, are available The intermediaries and the company are in a good term so the company has cooperated with two banks Techcombank and Agribank from 2012 However, the company should also hire more research market intermediaries to have a better understand about customer’s need For the Hanoi market, the company needs to try to contact more marketing agencies such as radio and television stations in Hanoi to bring Zenco brand to consumers in a fastest and most memorable way 3.3 Current situation of marketing mix solution to expand Hanoi market for 3D uniform products of Zenco Co., Ltd 3.3.1 Determine the target market of the company 3.3.1.1 Current market of the company The main consumption market of the company is mainly in Hanoi and Hung Yen In Hanoi, Zenco's products are sold mainly in Hai Ba Trung district and some big surrounding districts Although the market is new and deployed quite late, but the consumption of products in Hanoi accounts for 70% of the total product consumption of the company Thanks to the initial steps before launching the Hanoi branch of the company such as market research, market evaluation, the company’s product has achieved encouraging results Due to the negative impact of the economy and the demand for uniformed clothes in Hanoi is gradually becoming saturated, Zenco's product consumption rate is still much lower than that of its competitors At present, the company is trying very hard to create and perfect appropriate policies to make difference to attract customers and increase market share 3.3.1.2 Customer and customer set characteristics 14 The main customer targets are the groups of close friends aged from primary to high school, even university and the tourism company They are the customers who are young and energetic and they have a high demand for uniforms 3.3.2 Current situation of marketing mix solution to expand Hanoi market for products of the company 3.3.2.1 Product solutions Through investigation and exploration, Zenco products are popular with consumers because of good quality, nice design, trendy, reasonable price But the products of the company are too narrow-range Positive signs are many customers want to buy more products which are not available such as skirts, leg skirts, T-shirts, Therefore, one of the important measures to help companies penetrate and expand the market is the diversification of product types and models combined with enhanced services Table 3.2 Category list and product structure (product line) of the company `1 Product Category Summer clothes Cartoon blazer: size S, M, L Class-image blazer Beach blazer Proportion 65% Three-layer winter clothes: 35%  Cotton coat (size S, M, L) Hat coat Non-hat coat  Non-cotton coat (size S, M) Cross non-cotton coat Straight non-cotton coat  Feather coat (size S, M) Neck-feathered coat Neck-normal coat Hat-feathered coat Neck-normal coat - Policy of product diversification in terms of types and designs: From the first designs, Zenco products have been appreciated in style as well as colors and are loved by consumers According to the survey, 80% of customers rated the company's product model and product image as beautiful, 12% rated normal and 8% felt dissatisfied This sign affirms that the company has a firm foothold in the market positively - Raising the value of the price increases and accompany services: The company's branch in Hanoi has the role of displaying, introducing products and taking care of both wholesale and retail Buyers are the end consumer here will be consulted by enthusiasm sale 15 staff about how to choose clothes that fit the shape, how to coordinate the clothes beautifully, Customer can change or return the bought items within days As for bulk buyers, as there is no professional delivery team and the majority of buyers are located in the vicinity of the branch, the cost of shipping is generally low and medium The branch has policy to support 50% freight charges for this set of customers On the method of payment, Zenco's branch encourages customers to make direct payments The company also accepts deposits of 50% of the order value and pays the remaining amount immediately after delivery to patrons (dealing three times or more with branches) 3.3.2.2 Price solution With a cost-based pricing approach, the company calculates the price of the product by adding up the cost of purchasing the materials and the cost of manufacturing the product per unit of output plus profit per unit of product that the company wishes To simplify the calculation of the price of a product by the number m ^ create a product Price formula: P = CxS + cost of production C: price of 1m2 fabric S: the size of fabric to create a product This is a simple, easy-to-calculate pricing method that ensures that the company is profitable when it comes to selling Zenco always determines the price lower than the main competitors such as F5, Zumi, to attract customers The competitor’s product price is higher than Zenco’s one oneand-a-half times According to the survey, about 70% of the interviewed customers were satisfied with the price offered by the company, 8% said that the price was low and 22% said that the price was relatively high The company also needs to research and adjust the product price to satisfy more and more customers The company has also studied and implemented some preferential payment policies in order to have a stable relationship with customers Table 3.3 Preferential mode in payment Content Customer made payment before required time Customer made payment immediately Customer made payment late than 14 days Customers with purchase bill more than 20 million Customers with purchase bill more than 30 million Preferential mode 0,7% discount 0.5% discount 0.4% discount 5% discount 10% discount (Source: Marketing Dept.) 16 The company also regularly launch promotions discounts on holidays and Tet The discount rate depends on the quantity of goods, payment method and time of payment For wholesale buyers, the discount rate of the company ranges from 7% to 10% and retail customers discount rates are usually 3% - 6% During holidays, the company discounts for all customers from 15% - 20% 3.3.2.3 Distribution solution Thai Binh Garment Export Joint Stock Company has chosen for its distribution channel system including distribution channels: direct sales distribution channel and distribution channel through retailers and wholesalers Channel 0: Company  Consumer Channel 1: Company  retailer  consumer Channel 2: Company  wholesaler  retailer  consumer Channel distribution (direct channel): This is a direct sales distribution channel through the product launch shop, the company's branch, no marketing intermediaries The main buyers of this channel are individual consumers, earning 40% from this channel Through the level channel, the company advertises and introduces products and services, which play an especially important role in exploiting demand and penetration information for products and competitors At present, the company has two stores, one branch in Hung Yen and one in Hanoi Channel distribution: This distribution channel aims to overcome the limit of zerolevel distribution channel by the marketing intermediary With this type of channel, the company's products will be distributed through retail stores and then delivered to customers This type of distribution helps the company expand distribution channels, improves the ability to consume goods However, with this channel, the manager must pay attention to many of the management activities of the company Channel channels bring in up to 25% revenue Currently, in Hanoi, the company signs a contract with five retailers Channel distribution: This channel has two marketing intermediates - wholesalers and retailers, aims to overcome the limitations of the two distribution channels and expand the consumer market With this channel, the company's products will be delivered to wholesalers, and from wholesalers to retailers and final consumers Revenue of this channel is 35%, this is the main distribution channel of the company At present, the company has 20 wholesalers importing goods from factories in Hanoi and Hung Yen In the Hanoi market, Zenco has only one store to introduce and sell products for wholesalers as well as retailer The ability to interact with customers is limited With this situation, the company needs more positive measures to gain market share in Hanoi market 17 3.3.2.4 Solution on promotion Because of the limited number of Zenco customers, the promotion policies of the company are limited; however, the company's strategies are reasonable and effective, it’s aim is not only to keep up old customers but also attract more potential customers The main promotional tools that the company uses in its strategy are advertisement, sales promotion and direct marketing The goal that the company wants to achieve when implementing these activities is to remind and attract customers, improve brand awareness, encourage customers to buy more products, boost sales both in the current market and in the new market The fact that these activities have brought great effect for the company, is clearly demonstrated through the invoice of customer orders of the company valued over 15 million Table 3.4 The budget allocation for the promotion tools of the company (Unit: million dong) Year 2013 2015 2017 Total expenditure 200 350 600 Budget allocation Advertisement Direct marketing Expendic ture Expendit ure 20 50 90 Proportio n (%) 10% 14% 15% 80 110 190 Sale promotion Proportion Expendi (%) ture Proporti on (%) 40% 100 50% 31% 190 55% 32% 320 53% (Source: Marketing Department) - Advertising: This is a tool to contribute information to customers on the market, meanwhile highlighting the advantages of the product In 2013, before the start of the production of Zenco-brand clothing, the budget for advertising is almost nonexistent The company only tries to attract foreign customers who need to outsource and only advertise on their website www.Zenco.vn which scare content and difficult-to-look-up information In 2015, with a big turning point, the time when company launched company-brand- name products is also the time the company launch advertising campaign to make the Zanco brand become more popular The company only advertises through radio and television stations in Hung Yen with the desire to firmly grasp the Hung Yen market, becoming the brand the local people believe in Advertising through the company website is still maintained and is the only one internet advertisement; however, the website is much improved than before in terms of content and specific information The interface is also attractive and beautiful - Promotion: + Promotion policy: The company conducts discounts on holidays and tourist and yearbook seasons to promote consumption This is a direct method with high efficiency 18 + Discount policy for intermediaries: the company has the policy of discount basing on product, quantity, payment method, order value There are also seasonal discounts (holidays, New Year, ), discounts for items which are difficult to consume - Direct marketing: With the characteristics of customers to buy large numbers, personal sales promotion tool proved to be quite effective because it has the ability to reach and get feedback from the customer The sales and marketing department of the company has people with junior college or higher degree who are young and enthusiastic about their work Direct marketing is very effective when applied to this group of customers, but with limited budget and human resources, the company only invested 40% of promotion budget for this activity Today, the company uses some forms of direct marketing: + Directly through phone, mail, internet + Establish and understand the customer database to understand and meet their needs + Search for customers and increase orders for the company According to the survey, 64% of customers were satisfied with the quality of service provided by the sales staff, 30% were relatively satisfied and 6% were not satisfied Zenco initially performed its direct marketing activities well CHAPTER 4: CONCLUSION AND RECOMMENDATIONS FOR MARKETING MIX TO EXPAND HANOI MARKET OPPORTUNITY FOR ZENCO’S PRODUCTS 4.1 Conclusions and findings from the study 4.1.1 The achievements Over the past three years from 2015 to 2017, the company has accomplished the goals set out in its development policy Those are: - The company has secured a profitable business Its business is maintained and increased, ensuring regular employment and income for more than 150 staffs and employees throughout the company - The company has a clear investment plan in the design and manufacture of Zencobrand products The company's products are widely known and successful initially - Quality, design and cost of products meet the needs of the target customers - office workers - The company has built and expanded relationships with many customers and suppliers The products are consumed effectively and exchange activities with partners are executed smoothly - The distribution channel of the company has been improved rapidly The company has access to more targeted customers and well-manage the distribution channels According to 19 the results, with good performance in two big markets, Hung Yen and Hanoi, the company is taking firm steps in building the brand - Promotion policies also bring positive business results and attract the attention of consumers - The growth rate of revenue and profit of the company has gradually increased over the years, achieving the set targets, is an encouragement for the management as well as the staff of the company - In addition to implementing a reasonable compensation policy, company leaders also create favorable conditions for their employees to work in a friendly environment Employees are regularly trained and upgraded to improve their qualities and abilities 4.1.2 Existing limitations - Fashion items always change very quickly Each design has a short life cycle Nevertheless, the company will produce new garments from 2013, so it has not caught up with the design of the product - The company's products are narrow It is a drawback because the demand of consumer is increasing rapidly - The company encounters difficulties in equipping more production machinery and contacting suppliers of materials - Price policy is not flexible - Distribution channel of the company is short channel; the channel type is not rich So, the consequence is the poor market-cover ability Moreover, preferential for the channel members are not really attractive 4.1.3 Cause of the shortcomings - Socio-economic development has led to increasing people's living standards, they are more knowledgeable and also demand higher products - The area where the company is located is also a potential market that many businesses want to invest in business, competitors also increase accordingly - The financial potential of the company is still limited so investment in marketing activities as well as business expansion is difficult and requires careful consideration - As a processing enterprise, the company is passive in terms of raw materials (as supplied by partners); most machines are suitable only for export production with size larger than Vietnamese stature leads to the possibility of slow conversion - Market research, capturing and evaluating competitors are sketchy and not focused 4.2 Targets and directions to expand the garment market of Zenco Co., Ltd 20 4.2.1 The goal of expanding the market and expanding the market of garments of Zenco Co., Ltd 4.2.1.1 Target to expand the market Although Zenco has just launched its garment manufacturing and trading business since 2012, the achievements are encouraging and show that the company is fully capable of affirming its brand I am in the domestic garment market The company has clearly identified market development targets are: - In the next 10 years, the company will develop and affirm the company's position in the market of Hanoi and the whole North The target is to occupy 10% market share of fashion in Hanoi and expand to branches in some neighboring provinces such as Hai Duong, Hai Phong, Nam Dinh - To ensure stable annual revenue growth, the company strives to increase the profit from garment business to 10% annually 4.2.2.2 Direction to expand the market Zenco Co., Ltd should continue to implement the following strategies: - Intensive market penetration: To increase sales volume in the Hanoi market, company needs to attract customers who have not used the product, attract customers of competitors, encourage customers to continue buying products - Expanding the consumption market: The company has expanded its business area to some neighboring areas such as Hai Duong, Nam Dinh, Hai Phong, etc through strategies to attract new customers 4.3 Proposals and recommendations on marketing mix solutions to expand the Hanoi market for Zenco products 4.3.1 Proposal in market research activities Market research is the first and most important activity for every company when conducting business This activity will help the company capture the new consumer needs and their appraisals about the company and its competitors The research must be conducted regularly and continuously In order to develop the Hanoi market, the company needs to have a proper and effective market research method, The company should divide its customers into two groups: - The bulk customer group (wholesalers, retailers, ): a order value of 15 million or more, the company needs to understand their desires and requirements for quality products, their expect price, discount, promotion, payment and delivery conditions For customers with less than 15 million in bills, the company needs to find out why they buy in small quantities 21 The reason maybe because they not trust the product, the product does not meet the requirements or the other conditions Consumer groups: The company can divide the study into districts to compare the differences between districts Since then, the company can conduct research on the characteristics of the population such as demand, occupation, income, habits, interests, to know customer’s characteristics then find a suitable marketing strategy 4.3.2 Proposal marketing mix solution to expand Hanoi market for products of Zenco Ltd 4.3.2.1 Perfecting products to expand the Hanoi market for Zenco products With fashion products, the biggest requirement is the style, the beautiful design, catch up the trend and show the style of the wearer The target customers for the company's products are office workers, they communicate widely and therefore have high demands on costumes Want to attract them to buy more products of the company, there is only solution is to improve the design to be beautiful and trendy One product must have many designs in different styles In the future, the company should: - Expanding the product portfolio, adding new products (such as uniforms that keep pace with today's trend of youth ) for ladies and gentlemen The products are also diverse in color - Positively design the product in sets to help customers easily shape their style and support them in the way they combine and coordinate Besides, the importance of product quality cannot be neglected because customers always want to buy the perfect products, giving them confidence when wearing them To meet this requirement, the company should: - Have regular contact with suppliers to ensure their products are always up to standard - Looking for new suppliers with reputable brands in the market 4.3.2.2 Price to expand the Hanoi market for products of Zenco Co., Ltd Zenco's pricing is lower than its competitors With good design, good quality and competitive price, the company can attract more and more customers In addition, the company can apply price adjustment measures to entice more new customers, old customers as well - For familiar customers who have long time cooperation, good relationship with the company, the company can extend the payment time - Also, with the customer is the wholesale, the company now has discount policy at the value of each order, in addition, the company can refer to the policy of quarterly discount 22 applied for wholesaler who meet the requirements For example: 25% discount on the total value of orders if the purchase is over 100 million VND / quarter, 28% discount on the total value of orders if 500 million VND / year This form of discounting can lead to a stable and long-lasting relationship with the company - With customers are rarely or recently cooperated, it is possible to apply discount policy in early payment to encourage them to pay early, avoid the backlog of capital, minimize the financial risks to the company They also encouraged them to continue working with the company - For consuming customers, the company policy should apply the most is attached gifts and discounts directly on the product The application of this price adjustment must bring attention to the customer through the promotion of the company 4.3.2.3 Complete distribution to expand Hanoi market for products of Zenco Co., Ltd Recruiting channel members: The company is a brand new in the market so the more channel it has, the better it be But the selection of channel members cannot be ignored Distribution channel of the company is including indirect channels, so to select the best channel members, the company must ensure strict implementation of the rules in terms of scale, capacity, ability, selling, management ability, of the channel members to impact the brand positioning in the minds of customers Encouraging channel members: Based on the long-term relationship and engagement between the company and the distribution channels, the company can make appropriate requests and agreements with channel members about the benefits that they can be achieved if they fulfill the requirements For example: the company negotiates attractive discount rates if channel members display the company's products in an appropriate and easy to spot location and the product price does not differ much from the price the company sells Managing channel members: The distribution system of the company has few intermediaries, so the management of channel members is quite easy During current time, managers must take advantage of the time to spend time on managing the channels, look closely at the activities of the channel members, help and support them when necessary, ensure they sell the product price is not too much difference with the price set company Companies need to ensure the best possible benefits for channel members so that they can make an effort in selling and helping the company build the brand Channel member rating: Companies must regularly evaluate their channel members to make rewards, fines, maintain or use new marketing intermediaries to effectively distribute their business 23 In addition, the company may have other policies to improve its distribution channels such as: - Addition of means of transport, support channel members in the transportation of goods - Always ensure the inventory is full and continuous, especially during the holidays (the time of consuming more goods), helping business activities without interruption - Search for new channel members in potential locations of the company At present, the company does not have relations with the supermarkets in the city, this is a complete disadvantage that needs to be overcome in time - Find out the needs and obstacles of channel members and provide appropriate help 4.3.2.4 Complete the promotion to expand the Hanoi market for the products of Zenco Co., Ltd Determine the promotion target and promotion object - The company must plan to study attitudes and needs of target customers to have suitable promotion plan for each object - When setting promotion goals, it must be from the business objectives of the company Objectives must ensure that the criteria: available, feasible, challenging, measurable and timebound According to the actual business situation, the company can pursue promotion objectives such as increasing average sales to 10% per year, expanding sales locations covering Hanoi, each year or open more intermediaries Define promotion budget: The method of determining the company's budget which is currently applied is ability-depend method This method is quite suitable for a new company producing and trading domestic garment and has a tight budget However, in order to achieve the most effective promotion policy, the company should use the percentage on sale method to ensure that the company does not invest in over-promotion which is not effective and lead to loss in business In order for take advantage of promotion tools, coordination between the tools is very important The company should continue to use direct marketing tools and sales promotion as a key tool for its promotion - Direct marketing: The company should select the most appropriate direct marketing through the means: catalog, telephone, mail, fax, + Send a offer letter to all customers who have purchased the company's products and some new customers After sending a letter of offer, the company should make a phone call to confirm that the customer has received the offer letter and add information 24 + Particularly with potential customers who have never bought the company's products, company should pay special attention because they have no confidence in the product Companies should send sale staff to persuade them to directly try the product and encourage them to purchase the product + For customers who have purchased the company, in holidays, the company should send a wishing cards in order to build a good relationship and strengthen the brand image Zenco in their minds, - Promotion: In the near future, the company should learn and apply more different forms of promotion to attract and stimulate demand of customers such as accompanying gifts, reward for high-revenue channels - Advertising: At present, the company only advertises via internet in Hanoi location + With the rapid growth of the Internet, the company needs to capture good opportunities, advertising via the internet which is not only save costs but also be able to achieve high interactivity with customers The company needs to upgrade, change its website, provide more useful information and strong search engine + Through the website, the company can post logo and logo of the big partners, help them have more confidence in the product as well as the company + The company should also rent banner ads on the website with high traffic to increase the ability to reach and attract potential customers Build online sales channel via facebook This is the social networking site that beloved by the youth, especially students - potential customers in the future of business CHAPTER 5: THE ACTUAL PRACTICE SITUATION AT ZENCO Admitted to the company as a "Professional trainees expand the market” for months at Zenco Co., Ltd The first job assigned to take a job at a company is to follow and learn from the experts of marketing, who have extensive experience in marketing and market expansion During the first days of work, they taught me how to analyze data, market survey methods to find potential first-class agents, potential institutional clients, and suitable locations To focus on developing the market there, in addition I was instructed and trained online marketing skills to keep up with current trends, combining both methods of marketing that help me have skills and knowledge to better fulfill the tasks assigned to the current company and other companies later with the same position 5.1 Admin 5.1.1 Essential skills of a website administrator 25 Computer Proficiency: This is the minimum requirement of a webmaster because it will make your work smoother and bring more work efficiency when manipulating content on company’s website Ability in Graphic Design: The requirement for a graphic design ability is a requirement that may seem a high requirement for an enterprise webmaster But it is also an indispensable requirement if you want your business to have a beautiful Website interface, attract viewers, have beautiful and professional banners, images or slides Understand SEO website: This is also a requirement that may seem a high requirement for an enterprise webmaster But it is extremely important in the management of the website In order to both bring values to the articles or content of the website with readers and friendly with Google’s search engine, then the administrator is having mission to all that work Website administrators must know how to write standard SEO articles, how to post Google-friendly images, how to increase the number of visitors to the website, as well as backlinks and create valuable backlinks 5.1.2 Experience to develop websites Should write articles every day With us, the minimum is still posts per week, but the more you often write, the higher Google algorithm will rank you than the other units if the content is accreted and refreshed daily for hours Some pages which I need to SEO quickly, surely I write articles every day, the more I write, the more opportunities to Top than others! Constantly create high quality content The more exclusive and colorful, the better you are, not try to copy because the hard quality article are difficult to SEO and even entangled in the DMCA copyright infringement If you own quality content, the keyword itself will pick up, not need too many articles and SEO also much louder Plows quality backlink Many of you go to the forums in the hope that as many backlink as possible, not very well, because in our experience, not all backlink is valuable in SEO Now and latter, only quality backlinks help your keyword to top and top rankings If you own a backlink from Vnexpress, maybe the keyword will be on the top due to Backlink here is extreme quality, because the site has very high PR and prestige, owned content like earthworms Have a proper keyword strategy 26 An SEO plan will fail if you not have a list of keywords and related keywords in your hand, focus on easy-to-do keywords first, then look at long and last words as keywords and the last is hard and short, so you will save time on top of that! Take care of the website as your child Finally, consider the website as your child, take care, irrigate it like a tree to it can grow every day If you work hard with the highest heart, you will have the best results 5.2 Market 5.2.1 Select Agents and retailers In months of internship, the company has made it very easy for me to go to the market to collect data for assessing the region with the most potential customers in the Hanoi area As mentioned above, the company through the evaluation, thorough analysis, through the objective data provided by the market survey, has identified the key areas to develop new products "uniforms 3D '' in the districts: Thanh Xuan, Hai Ba Trung, Dong Da, Hoan Kiem, Tu Liem These districts have specific characteristics that help the company expand its market For example, in Hoan Kiem, there are many travel companies suitable for tourists and teambuilding, or in Thanh Xuan, with many large companies therefore need uniforms are also very high, and in Hai Ba Trung concentrated more secondary schools due to population density so that can go into the high school level To be exact price, indispensable Through such market surveys I have been able to analyze and evaluate what is the target market for any product by analyzing the results of the survey and the factors about environment and population help me more accurately assess the potential development of the item My negotiating skills with my clients have been greatly improved and improved, especially when customers refuse or want to change their terms of contract What I want before entering the internship 27 ... graduation thesis on the subject: " Marketing mix strategy to expand the market for 3D shirt uniforms. " ACKNOWLEDGEMENT During my internship, research and doing the lecture "Marketing strategy for 3D uniforms" ,... and mixed marketing tools to market the company's business - Analyze the situation of marketing solutions to expand the market of garments of Zenco Co., Ltd in Hanoi, thereby multiplying the advantages,... information about the market and factors that influence the market of the business From there, it creates the conditions for the manager to make appropriate and effective marketing decisions Market