Fig 2.2
General analysis of financial situation through financial statements.
2.7.4. Marketing administration.
Regulations on business region.
Fig 2.13
Unit: 1000 ton
Distribution channel
2007
2008
2009
Nghe An
Ha Tinh
Quang Binh
Nghe An
Ha Tinh
Quang Binh
Nghe An
Ha Tinh
Quang Binh
1, Direct
8
10
15
2, Grade 1, grade 2
2
2
3
3
6
3, Distribution channel
3
1
2
7
1
4
Total
10
5
14
2
10
22
4
Fig 2.14
It has been shown that the comsumption volume was 10,000 ton, 21,000 ton and 36,000 ton in 2007, 2008 and 2009, respectively. At present, the main distribution channel is direct channel in Ha Tinh market. In the market expansion stage, the focus will be put on distribution channel and direct channel as distribution channel has advantage of risk sharing and resource mobilisation.
2.7.4.3. Product policy: Product
Fig 2.14.
Currently, Thien Loc Animal Feed Processing Company is:
- Value – according to its value (price is relatively low compared to product quality).
- Going - Rate – according to current price rate (based on price of competitors); According to following or hidden price method.
Combine two above methods
2.7.4.4. Plach policy.
- Currently, Thien Loc Animal Feed Processing Company focuses on direct channels of 2 breeding companies and some others (internal).
- Through distribution channels on target market plus expenses of transport; greater consumption customers take, higher discount rate is. A grade-1 agency consumes over 150 tons/month (average), supported by expenses of unscheduled transport of each time, depending on market demand promotion; marketing staffs of some agencies are supported on training, or the company appoint its staffs to the agency for marketing.
2.7.4.5 Promotion policy
Nature of marketing media.
Currently, Thien Loc is using:
- Advertising
- Publication, packing, television, radiobroadcast, local newspapers and magazines, advertisement boarding, signboard, display, symbol, logo.
- Set public relation
+ Effective rank model:
- Know – Understand – Like – Like much – Trust - Buy.
The company consumes (average) 3000 tons / month x 12 months = 36,000 tons/ year. Capacity is 120,000 tons / year. Like this, machinery can be applied to manufacture 120,000 tons/ year – 36,000 tons/ year = 84,000 tons/ year.
The company just deploys about 30% of machinery capacity as reported by market survey; in practice consumption of target market is:
+ About 20,000 tons/ month in Ha Tinh
+ About 12,000 tons/ month in Nghe An
+ About 8,000 tons / month in Quang
Total: 40,000 tons / month
Thien Loc Animal Feed Processing Company makes up 7,5 % of target market share. So, the company has given conditions of strong development. According to model 5 on Porter’s competitive force, Thien Loc Company needs to overcome some great challenges. Currently, Thien Loc Animal Feed Processing Company now operates in perfect competitive market; there are more than 100 cattle foodstuff companies with long-standing products, with well-known brandnames such as Proconco, CP, Cargill, New Hope, Anco, Green Fead, Mater, Lai Thieu, etc. A following company also has its advantages. Personally, Thien Loc Animal Feed Processing Company must make the best to overcome challenges. Having reasonable strategy to promote development of business.
+ A markting division should be extablish under direct management by CEO in line with ISO requirement.
+ To devide the market into segment for suiltable and effective marketing policy.
At Ha Tinh market, mega marketing (politic- related marketing) can be applied because this Company is a provincial company and entiled to the provice’s subsidy. Through the farmer association, women union to raise the demand,etc....
+ To deversify products. At present the company doesn’t process feed for poultry (ducks, geese...), feed for buffalos, cows...
+ Perfect products and potential products haven’t been appeared.
The customers can be categorised into different groups to select suiltable service and demend- promotion policies (according to the level of each farms).