Establish marketing strategies at center for water resources technical and consultant

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐỖ VIỆT HÀ ESTABLISH MARKETING STRATEGIES AT CENTER FOR WATER RESOURCES TECHNICAL AND CONSULTANT XÂY DỰNG CHIẾN LƯỢC MARKETING TẠI TRUNG TÂM KỸ THUẬT VÀ TƯ VẤN TÀI NGUYÊN NƯỚC LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐỖ VIỆT HÀ ESTABLISH MARKETING STRATEGIES AT CENTER FOR WATER RESOURCES TECHNICAL AND CONSULTANT XÂY DỰNG CHIẾN LƯỢC MARKETING TẠI TRUNG TÂM KỸ THUẬT VÀ TƯ VẤN TÀI NGUYÊN NƯỚC Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… i ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my special thanks to my company for giving favorable conditions for my study and my master thesis completion at Hanoi school of business and management (HSB) Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and co-workers to make this essay more complete Thank you very much./ Ha Noi, ii 2019 INDEX DECLARATION I ACKNOWLEDGEMENTS II INDEX III LIST OF TABLES VII LIST OF FIGURES AND CHARTS VIII INTRODUCTION 1.Urgency of the subject Overview of research situation 3 Research objectives Research subjects 5 Research scope 6 Research Methodology Structure of the thesis CHAPTER RATIONALE OF MARKETING STRATEGY DEVELOPMENT iii 1.1 Basic Definition of Marketing and Marketing Strategy 1.1.1 Definition of Marketing 1.1.2 Marketing Strategy 1.1.3 Role, importance of marketing and marketing strategy 1.2 Content Of Marketing Strategy 10 1.2.1 Research models 10 1.2.2 Product Strategy 11 1.2.3 Product price strategy 15 1.2.4 Distribution strategy 18 1.2.5 Promotion Mix Strategy 19 1.3 Procedure of Marketing Strategy Development 21 1.3.1 Setting Marketing goals 21 1.3.2 Macro-environmental analysis 21 1.3.3 Sector environment 22 1.3.4 Matrix evaluating external factors (EFE) 25 1.3.5 Micro-environment analysis 26 1.3.4 Develop Marketing strategy with SWOT matrix 28 CHAPTER ACTUAL SITUATION OF MARKETING STRATEGY AT CENTER FOR WATER RESOURCES TECHNICAL AND CONSULTANT 31 2.1 Introduction of Center for water resources technical and consultant 31 2.1.1 General information 31 2.1.2 Organizational chart 32 2.1.3 Function, duties 33 2.1.4 Manufacturing and business status of the company 35 2.2 Analysis of the marketing environment at the Center for Water Resources Technical and Consultant 36 iv 2.2.1 Macro-environmental analysis 36 2.2.2 Sectoral Environmental Analysis 43 2.2.3 Micro environment 51 2.3.4 Research and development capacity 57 2.3.5 IFE matrix 58 2.3 Analysis of the actual marketing strategy situation of the Center 60 2.3.1 Product strategu 60 2.3.2 Price strategy 61 2.3.3 Distribution strategy 61 2.3.4 Mixed promotion strategy 62 2.4 Evaluation of actual situation of marketing strategy of the Center for Water Resources Technical and Consultant 63 2.4.1 Achievement 63 2.4.2 Limitations 64 CHAPTER PROPOSAL OF MARKETING STRATEGY FOR THE CENTER FOR WATER RESOURCES TECHNICAL AND CONSULTANT 3.1 Development orientation of the Center for Water Resources Technical and Consultant by 2025 65 3.2 Proposal of marketing development for the Center for Water Resources Technical and Consultant by 2025 66 3.2.1 Proposal of marketing development for the Center for Water Resources Technical and Consultant by 2025 66 3.2.2 Strategy implementation method 69 3.3 Some recommendations to the State 80 3.3.1 Renovate the financial mechanism of the State capital management 80 3.3.2 Improve incentive policies for the employees 81 v 3.3.3 There should be a clear policy of the relationship between the State and the organization 81 CONCLUSION 83 REFERENCE DOCUMENT 85 vi LIST OF TABLES Table 1.1 : Product status and appropriate promotion strategies 20 Table 1.2: EFE matrix summary table 25 Table 1.3: IFE summary table 28 Table 1.4: SWOT matrix model 30 Table 2.1: Manufacturing and business status of the Center 35 Table 2.2: Some Regulations on Environmental and Water resource protection 39 Table 2.3: Number of the customers of the Center annually 47 Table 2.4: EFE matrix synthesis 50 Table 2.5: Human resources of the Center 51 Table 2.5: Machinery system 56 Table 2.6: IFE matrix 58 Table 2.7: Some products and services provided by the Center 60 Table 3.1: SWOT matrix synthesis 67 Table 3.1: Estimated budget for strategy implementation 76 vii LIST OF FIGURES AND CHARTS Chart 1.1: competitive pressure model 23 Diagram 2.1: Number of industrial zones in Vietnam at the present 37 Diagram 2.2: Number of current competitors in the market of the Center 44 Diagram 2.2: Organize the project implementation site of the Center 54 Image 2.1: Equipment, tools for analysis, research and development 58 Diagram 2.3: Marketing activity of the Center 63 Diagram 3.1: Organizatoin chart of the expense mangement division 73 Image 3.1: Some construction equipment 77 Image 3.2: Specialized machinery 78 viii Implementation procedure: From now to 2020, providing additional monitoring services and supplement employees By 2025, implement all services for monitoring, water resources and environment with total 15 employees 3.2.2.2 Market penetration price strategy Content In order to implement the market penetration strategy, the Center for Water Resources Technical and Consultant should closely control the expenses arisen during the business, including depreciation expense, operation expense, personnel cost, etc The Center can apply some methods to reduce expense as follows: - Firstly, choosing the location to build storage system of equipment and machinery to facilitate the transportation of machinery and equipment to the construction site, from which saving transportation cost - Secondly, for fixed asset management, it is necessary to exploit the maximum production capacity of machinery and equipment; consolidate and improve the storage, cover materials, equipment in the store to save repair costs; developing wastage norms and strictly managing stages, factors related to natural loss - Thirdly, strictly control the business management expenses, minimizing the contingencies which cause increase in the operation expenses of the Center - Fourthly, improve the method of service business, apply well the contracting and bidding regime while satisfactorily resolve benefits between the staffs and the center and paying attention to lowering circulation expense - Fifth, measures to reduce administrative expenses include streamlining of public administration management and improving the management apparatus in line with the development of the Center; Aply scientific advances in administrative management to ensure smooth and accurate information 72 On the basis of detailed cost control, the Center should eliminate unreasonable costs, reduce unit costs without efficiency, causing expense increase, profit reduction and increase of the service price of the Center Good application of the measures to control the expenses as above shall help the Center to save the expenses, reduce unreasonable expenses, contributing to the reduction in service and produt price of the Center and at the same time emerging into the market Implementation method To implement this strategy effectively, the Center for Water Resources Technical and Consultant needs to arrange financial mangement organization, controlling arisen expenses at the Center The organization can be as follows Deputy Director Financial Planning Division Department Department of of equipment Humna Resource expense Expense management management Department of research expense management Department of operation Department of other expense management expense management Diagram 3.1: Organizatoin chart of the expense mangement division The Center for Water Resources Technical and Consultant should ask the Chief Accountant to assign job for each individual according to the managament field, forming an expense management apparatus This apparatus includes; - Department of human resource expense management: staffs 73 - Department of equipment expense management: staffs - Department of research expense management: staff - Department of operation expense management: staff - Department of reserve and other expense management: staff Each staff is responsible for accounting and monitoring expenses arising in the assigned management area and periodically making the report to the Chief Accountant Submitted reports must be enclosed with valid documents and invoices to prove the costs are true and fully recorded These reports are the basis for the chief accountant to monitor expenses, limiting unreasonable expenses 3.2.2.3 Broad distribution strategy Content The purpose is to attract the attention of business customers in industrial zones in export processing zones discharging waste water into the environment during their manufacturing and business process, this is the group of potential customers that the Center should pay attention to in the upcoming time In order to access to this group of customers, the Center can implement the direct distribution strategy as follows: - Organizing consultancy teams going to the industrial parks and export processing zones to directly approach enterprises - In large industrial parks, a fixed or mobile office can be established to approach customers - For clients who are public service delivery agencies, the Center may ask for the support from the Ministry of Natural Resources and Environment to sign project contracts Implemtentation + Location to develop distribution channel - Phu Nghia Industrial Zone, Chuong My, Hanoi - Yen Phong Industrial Zone, Bac Ninh Province 74 - Dong Van Industrial zone, Duy Tien district, Ha Nam province - Cong Hoa - Chi Linh Industrial Zone, Hai Duong - Sai Dong A Industrial Park, HanoiKhu công nghiệp Đài Loan, Hà Nội + Initial capital: 500 million dong Initial implementation investment cost: 200 million VND, including Parts, equipment, tools: 300 million dong + Personnel structure and organization for the project Management group: staff with the positions such as Director, Deputy Director, Managers Technical, engineering, service group: 14 staffs Administrative group: staffs 3.2.2.4 Product introduction, promotion strategy Content In the past time, the Center for Water Resources Technical and Consultants has only promoted its brand name and business through the offer letters without paying much attention to the advertising of products and services of the Center Advertising is still passive, not diversified and ineffective Therefore, in the coming time, the Center should carry out the following tasks: - Implement advertising programs through advertising letters sent to potential customers, letters informing new services to traditional customers - Use a commission discount campaign for repeat customers, traditional customers - The Center can advertise products and services through community relations such as sponsorship for community-related, clean water, environmental service programs - Use email: Provide detailed information about the products and services of the supply center 75 - The center should set up a specialized website to introduce specific, detailed and accurate information about the products and services being or to be provided in the market along with an introduction video about the Center Implementation The number of human resources and financial resources estimated to implement the promotion strategy, product introduction of the Center for Water Resources Technical and Consultant are as follows: Table 3.1: Estimated budget for strategy implementation Activity Estimated budget Proportion Human resources Advertising 300,000,000 32% Public activity 370,000,000 40% PR 90,000,000 10% Sending offer letter 50,000,000 5% Website development 120,000,000 13% Discount Total 2%-5% hợp đồng 9,300,000,000 100% Source: author’s proposal 3.2.2.5 Focus on synchronous investment in the system of machinery and equipment, technology software At present, although the machinery and equipment of the Center for Water Resources Technical and Consultant has been fully invested, the operation efficiency is not high because most of the machinery is old and out of date and regularly damaged Therefore, in the coming time, the Center should ask for additional funds for investment, replacing the equipment which has been fully depreciated and cannot be used for production Some machines that the Center needs to invest are as follows: 76 Machines need to be invested + YPБ-3A3-13 drilling machine YPБ-3A3-13 drilling machine helps to drill to 1000m, supporting hydrological geological research through soil sampling for lithological studies, drilling for geophysical measurements of boreholes and experimental pump conduction Image 3.1: Some construction equipment + Mobile Screw Compressor Being used in difficult conditions, facilitating drilling and exploring water resources of the Center 77 + ABEM SAS 4000 measuring equipment Image 3.2: Specialized machinery These are out of date equipment which are regular broken Therefore, it is needed to have timely investment to avoid business activities of the Center from being interrupted Financial investment The equipment and machinery in need of being invested are very valuable so the Center for Water Resources Technical and Consultant need to develop a specific financial plan The investment capital can be mobilized as follows: + Budget Source: 65% This is the main source of funding + Retained earnings: 23% + Funds for investment and development: 12% 78 Investment activities will not be implemented immediately due to insufficient funds for implementation so the Center can implement the investment route as follows: 2018: Invest ABEM SAS 4000 measuring equipment 2020: Invest Screw Compression Machine 2025: Invest YPБ-3A3-13 drilling machine (this machine cost so much) so this machine is estimated to be invested by 2025 3.2.2.6 Promote training to improve the quality of human resources Content In the coming time, the Center for Water Resources Technical and Consultant should pay special attention to training, fostering and building a contingent of skilled and qualified professional satffs in the field of drilling and monitoring, especially the management and business operation team Training activity can be conducted in the following ways: Open short-term training courses on economics, business administration, monitoring, geodesy, machinery and equipment in the industry Standardize the employees working at the Center as a basis for the recruitment, training, utilization and evaluation of the employees Apply the mechanism of supplementation and dismission of human resources to maintain the contingent of professional staffs, meeting the requirements of competition and innovation of the market Have policies to encourage young and qualified staffs having passed the domestic and abroad training courses, creating qualified suborndinate source with competent professional knowledge, managemnet capacity and actual experience to current staffs Strictly implement examination, evaluation, promotion, dismissal and commendation of State officials and employees at the Center By doing well 79 these activities, staffs and employees shall have motivation to be active in their training and to constantly improve - Train skills to receive information and handle complaints of customers; Customer communication skills, communication culture and build corporate culture Implementation + Fund for implementation Estimation: 600 million VND/year (35% is from external support, the rest is from the investment and development fund) + Number of classes: It is planned to organize 15 courses to train engineers, masters and workers in turns (9 training courses on vocational level upgrade and training courses on skills) + Document: The consultant prepares the materials and conducts training at the Center with the form of training in the organization 3.3 Some recommendations to the State 3.3.1 Renovate the financial mechanism of the State capital management Financial mechanisms of revenue generating public service delivery units currently remain inadequate Non-business units not have full authority in evaluating assets and are not encouraged to evaluate the assets with the preservation and development of capital There is still confusion between the preservation through development of value and preservation through property interference, through the determination of property such as mortgages, mortgages, leases, sale or liquidation, etc Rights of the owner or the rights of the capital management member to the profit after tax has not been clearly defined The mechanism of profit distribution is still average, not encouraging revenue generating public service delivery units doing business effectively to get more benefits in income as well as capital investment accumulation 80 Therefore, there should be solutions such as: - It is necessary to clarify the State ownership to the unit, including the right to benefit from the efficiency of business activities After-tax profit is from the State With the assets owned by non-business units, they have the right to decide procurement, liquidation, transfer, etc - The financial management mechanism should be clearly defined It is needed to transfer from the subsidized administration to the financial investment, apply the mechanism of capital allocation to the legal entity and at the same time to expand the business autonomy of the organization - It is necessary to strengthen the internal audit and the State audit through financial reporting, promulgated law and policy enforcement 3.3.2 Improve incentive policies for the employees The State should have incentive policies to evaluate the employees working in the state-owned enterprises according to their performace rather than seniority to encourage creativity and save cost for the organization Currently, the Sate still prefers capacity assessment through seniority, making the salary regimes less satisfactory Some young staffs have significant contributions to the organization, but their salaries and bonuses are not competitive enough to encourage them Meanwhile, staffs with many years of working have very high salaries even they not contribute much to the organization This creates a moral hazard, causing stagnancy in the activities Therefore, the State should have policies to improve the identical regime of salaries and bonuses in the State enterprises, encouraging salary payment based on working performance rather than seniority 3.3.3 There should be a clear policy of the relationship between the State and the organization Currnently, there is an actual state that the revenue generating public service delivery units is facing lots of difficulties in sending staffs to go on 81 abroad business trip, study the market, expand the market According to the regulations, having decision of the organization manager is enough but the Department of External Affair still insists on decision on going on abroad busisness trip of the Ministry, provincial government or the previous agency of the governance agency of the unit These requirements cause the units to take more time and expenses than initial planning and sometimes loose business opportunities Therefore, it is essential for the State to issue proper policies for the revenue generating public service delivery units on the issues related to import-export, shortening procedure for the staffs to be going on abroad business trip Besides, it is needed to improve the practival legal system synchronously to endure that the enterprises can make plan by themselves and be independent in the market mechanism, remove subsidy, protection with the enterprises, creating good condition for the enterprises doing business in an equally competitive business environment At the same time, information supply, policy dissemination to the enterprises should also be paid attention to, creating unified information in all activities of the enterprises 82 CONCLUSION In the past few years, the Center for Water Resources Technical and Consultant has been continously receiving Certificate of the Department and the Ministry of Natural Resources and Environment During its operation, the Center always focuses on emulation and reward activitíe, promptly encourage with both material and spiritual awards the units and individuals with excellent achievement, technical innovation contribution, improving common manufacturing and business efficiency of the Center.Those are some achievements that the Center has got in recent years Beside this success, the task set for the Center is to continue maintain current business efficiency, constantly expand providing services to ger higher profits, contributing to the improvement of the social life of the country, genterating more jobs, from which enhance quality of the environment in general and water environment in particular Through the research result of the subject “Development of Marketing strategies at the Center for Water Resources Technical and Consultant”, the thesis has summarized the strengthes, weaknesses, opportunities and challenges in business activities of the Center According to the analysis result of the SWOT matrix, the thesis propose some marketing and functional strategies in order to strengthen business efficiency of the Center in the upcoming time Suggested strategies include the strategy of product and service diversification, strateg of market penetration price, strategy of broad distribution, strategy of product introduction and promotion, strategy of focusing on the synchronous investment in the system of machinery and equipment, strategy of strengthening traning, improving the quality of human resource Although the author has tried her best in the study, with subjective perspective, the thesis might remain shortcoming, not covering and handling all arisen problem during business activity at the Center of Water Resource 83 Technical and Consultant With remaining shortcoming, the author would like to receive feedbacks from the teachers, the Board of Director and the whole staffs of the Center to handle and consider the issues more thoroughly 84 REFERENCE DOCUMENT Alfred Chandler (2013), Strategy and Structure, Cambridge: M.I.T Press Dao Duy Huan (2015), Strategic Management, Science and Technics Publishing House Do Thi Thanh Vinh and Do Bao Anh (2012), Electrical business strategy planning of Hau Giang electricity Company by 2020, Scientific records of Can Tho University: 107-114 Fred David (2006), Definition 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Pham Minh Duc (2015), Business strategy development of Khang Viet Production Trading Company, Master of Business Administration thesis, Financial Management Institute IFA 12 Pham Van Cuong (2016), Strategic Management in Vietnam Shipping Businesses: Journal of Marine Science and Technology,No 11 + 12 of November, 2016 13 Thomas L Wheelen & J David H., (2002), Definition of Strategic Management, Statistical Publishing House 14 William F.Glueck (2013), Business Policy and Strategic Management, McGraw-Hill Companies 86 ... situation of the development of marketing strategy at the Center for Water Resources Technical and Consultant - Propose marketing strategy for the Center for Water Resources Technical and Consultant. .. Actual Situation of Marketing Strategy at Center for Water Resources Technical and Consultant Chapter 3: Proposal of Marketing Strategy for the Center for Water Resources Technical and Consultant. .. including the Center for Water Resources Technical and Consultant; The Center for Water Resources Engineering and Consultancy is a public non-business unit of the National Center for Water Resources