The Marketing Strategy of Hung Long Jsc.doc

The Marketing Strategy of Hung Long Jsc

Nowadays, marketing plays an important part in the successes of everyenterprise However, not many of the companies in Vietnam have paid adequateattention to marketing activities, especially when both domestic and globalcompetition is getting fiercer and fiercer

Being one of the companies specializing in selling TV LCD in Ha Noi, HungLong Jsc has achieved certain success in this field Its sales of TV LCD haveincreased over the years since its establishment However, the company salesgrowth of TV LCD has been modest in comparison with other competitiors’.The reason for this partly lies in its marketing After the time I worked there, myfield study is “Marketing strategies of Hung Long Jsc” as report with a view toexamiming Hung Long Jsc’s marketing strategy and making somerecommendations to improve it.

Hung Long Jsc has a lot of business activities, but because of limited time, thisreport focuses only on the company’s marketing activities for one line of itsbusiness, that is TV LCD, on the market in Ha Noi.

The report is divided into 2 chapters as follows:

Chapter 1:Basic theory about marketing strategyChapter 2: The marketing strategy of Hung Long Jsc.

Chapter 3: Some recommendations to Improve Hung Long Jsc s’

Marketing Strategy.

Chapter 1

Basic theory about Marketing Strategy

Marketing strategy is a process that can allow an organization to concentrate itslimited resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage A marketing strategy should be centeredaround the key concept that customer satisfaction is the main goal.

Marketing strategy is a method of focusing an organization's energies andresources on a course of action which can lead to increased sales and dominanceof a targeted market niche A marketing strategy combines productdevelopment, promotion, distribution, pricing, relationship management andother elements; identifies the firm's marketing goals, and explains how they willbe achieved, ideally within a stated timeframe Marketing strategy determinesthe choice of target market segments, positioning, marketing mix, and allocationof resources It is most effective when it is an integral component of overall firmstrategy, defining how the organization will successfully engage customers,prospects, and competitors in the market arena Corporate strategies, corporatemissions, and corporate goals As the customer constitutes the source of acompany's revenue, marketing strategy is closely linked with sales A keycomponent of marketing strategy is often to keep marketing in line with acompany's overarching mission statement.

A marketing strategy can serve as the foundation of a marketing plan Amarketing plan contains a set of specific actions required to successfullyimplement a marketing strategy For example: "Use a low cost product to attractconsumers Once our organization, via our low cost product, has established arelationship with consumers, our organization will sell additional, higher-marginproducts and services that enhance the consumer's interaction with the low-costproduct or service."

A strategy consists of a well thought out series of tactics to make a marketingplan more effective Marketing strategies serve as the fundamental underpinningof marketing plans designed to fill market needs and reach marketing objectives.Plans and objectives are generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals,policies, and action sequences (tactics) into a cohesive whole Similarly, thevarious strands of the strategy , which might include advertising, channelmarketing, internet marketing,promotion and public relations can beorchestrated Many companies cascade a strategy throughout an organization, bycreating strategy tactics that then become strategy goals for the next level or

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group Each one group is expected to take that strategy goal and develop a set oftactics to achieve that goal This is why it is important to make each strategygoal measurable.

Marketing strategies are dynamic and interactive They are partially planned andpartially unplanned See strategy dynamics.

Chapter 2

The Marketing Strategy of Hung Long Jsc

1 An introduction to Hung Long Jsc.1.1 The company in general.

Hung Long Jsc was founded on August 2003 with the staring point of a smallcompany and few worker at the head office make production of food.

After over 6 years of establishment, Hung Long Jsc opened 2 branches in HaNoi: 482 Tran Khat Tran,157 Thai Ha and a network of distributiors around thecountry There are about 100 skillful and experienced staff working, they arealmost from 20 to 35 years old.

Since its establishment,Hung Long Jsc has operated in various fields: Karaoke,LCD, Plasma TV, Home theater, camera, etc Early 1999,Service Center andtechnical Informatics Future was established.It also opened a new salesrepresentative office for selling Califonia’s products.Today Hung Long Jsc hasdeveloped rapidly,becoming one of the leader in the field of informationtechnology n Vietnam in particular and in the word in general

Hung Long Jsc can meet the demands of valuable customers with a large orders.Hung Long Jsc has more than 2,000 samples of TV LCD, 1,000 samples ofhometheater and 2,500 samples of products with diffierent types, styles, designsfrom well-known companys; meet the needs for daily usage of customers.

1.2 Company s product sand services’

Hung Long Jsc is one of the leading companies in Vietnam in the field ofdistribution of information products to customers, agents, as well as to usersdirectly Products information technology company provides include:

- Computer brand Future: Creating a brand name computers with high quality,suitable weather conditions in Vietnam, price benefits for customers

- The computer components: Supply of accessories, spare parts left, andperipherals for high-quality systems integration: Processor, Mainboard, HDD,video card, printer, speakers

- The network device: a distribution agent for the manufacturer of the worldleading reputation in the field of network

- Product Server and Desktop, Notebook of the world's largest airline HP, IBM,Dell product quality and comply with the provisions of the manufacturer

- The software packaging, software management

March 1 Warranty, maintenance network

- Equipment for inspection, warranty, maintenance of adequate and modern, dedicated professional working style

-Technical documentation of products provide complete

- Spare parts and components replaced always meet customer needs

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- Plan and perform warranty repair, replacement new or leaving the cluster components each

March 2 training and consulting for computer rental

- In parallel with providing customers the information technology infrastructureis modern, Hung Long Company is ready to cooperate with partners andcustomers to design consultant selection designed to build applications

- The information system, built on the basis of traditional services (LAN, WAN)is provided in Hung Long Company always promote efficiency, security anddurability

- Issues of implementation, installation of operating equipment to conduct thetraining, technology transfer in the company's sales are Hung Long proceed inearnest, to meet the needs and trust customer

- Services computer rental for workshops, training and technology transfer:Hung Long has been deployed for a thorough machine rental amount tohundreds of machines is always ready to serve customers.

1.3 Company s Organization’

Two Deputy Directors General: These pepole provide assistance to the DirectorGeneral They would sometimes act on behalf of the Director General in hisabsence One of them is responsible for the trading, planning, financiak andaccouting matters and the other is in charge of technical and researchanddevelopment aspects in the company.

General Director

Deputy General Director

Quality Acceptance Department

Tectnical Department

Trading DepartmentFinancial &

Accounting Department

Planning Department

Trading department: this department helps the Board of Directors with tradingactivities These include organizing both domestic and international bussiness.The trading department is also responsible for:

Doing marketing researches on products.

Promoting the company’s products through advertisements.Holding negotiations and getting contracts for the company.Organizing distribution channel for the company’s products.

Planning department: this department is in charge of marketing plans onimporting, material providing and preceding the contracts Organizing the salesof products is another main task of the department.

Financial and Accounting department: this department deals with all financialand accounting matters Another main function id to manage the use of capitalto the right purpose, right policies and regulations, and to assist businessactivities.

Technical department: this department is in charge of technical andtechnological matters The staff of this department also works closely with thefactories to do researching and applying the modern equipment and technicaladvance to themanufacturing and processing This department for the purpose ofthe company’s business development tales all the adjustments or improvementto the technology.

Quality assurrance department: this department takes control over the quality ofthe products This is for the purpose of assuring that all the products will meetcustomers’ requirements.

The organizational chart has resulted in good performance and operation Therehave been good assessments on the company structure: it shows to be in chargeof particular activities and they would be able to precede their fuctionreasonably, which results in avoidance of overlappong and cumbersome Thishelps the company to be able to take the internal and external advantages; toapply modern and advantanced technology to bring the best fruits to the wholecompany’s efforts.

1.3.3 Company trading results

Table 2.1: Hung Long Jsc s trading results in recent’

Total sales

Source: Hung Long Jsc’s finalcial reports Unit: million VND.

2.The marketing strategy of Hung Long Jsc2.1 SWOT analysis of Hung Long Jsc

As mentioned in the previous parts, Hung Long Jsc has been trading in a lot ofproducts such as TV LCD, Plasma TV, Home theater, Karaoke, etc., but with thelimited time, this report focuses on the marketing strategy that Hung Long Jschas used while dealing in TV LCD only As well as external opportunities andthreats that Hung Long Jsc faces while trading in TV LCD will be identified forthe understanding of HungLong Jsc’s marketing strategy.

Table 2.2: SWOT analysis of Hung Long Jsc

- Good quality- Competitive price

- Good busiess relation with partners

- Customers’ loyalty

- Viet Hai Ltd’s corporate culture

- Better market growth

- Firce competition

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2.2 Strengths

The first strength of Hung Long Jsc is that its TV LCD are of good quality.Hung Long Jsc’s TV LCD are imported from of famous companies in the worldsuch as Samsung (Korea), LG (Korea), Sony (Japan) and Shap (Japan) Theseare famous brands in the world market and Vietnamese consumers highlyappreciate them Hung Long Jsc has never had any complaint about the productquality.

The second strength is that Hung Long Jsc has been offering very competitiveprices for its TV LCD Hung Long Jsc has been a distributor for these firmssince its early day (Samsung, LG, Sony and Shap), and although there are a lotsof other companies are acting as dictributors for them, Hung Long Jsc has acertain advantage: Hung Long Jsc has always kept its prices as compeitive aspossible Its prices are among the lowest for TV LCD, usally between 7% and10% lower than its competitors.

The third strength of Hung Long Jsc is the good relation with its businesspertners Hung Long Jsc has maintained it coporation with the above mentionedbusiness suppliers for many years and has always been highly valued by them.This an advantage for Hung Long Jsc Every years, its technical staff are offeredtechnical traning by the foreign experts from Hung Long Jsc’s suppliers Manyif these staff also have chance to go abroad to get training Moreover, whenthere is a technical problem at Hung Long Jsc, it immediately receivesassistance from its partners.

The forth strength of Hung Long Jsc is its customers’ loyalty As mentionedabove, beside good quality, competitive prices, and good business relation withits partners, Hung Long Jsc’s customers’ has contributed a lot of the company’ssuccess The after sales services of the Hung Long Jsc has been developing andimproving rapidly over the years This hepls the firm to keep in touch with theold customers And by words of mouth, these people have brought newcustomers for the company.

In addition, Hung Long Jsc frequently holds customer meetings in whichcutomers would have chances to express or Hung Long Jsc their thinking aboutthe company products and services, this anables the company to get marketresearch information to built up its reputation and customers’ loyalty.

The last strength is the coporate culture of Hung Long Jsc Employees of HungLong Jsc are infused with an open, value-based coporate cuture Thecornerstones of the company’s values are:

2.2 Weaknesses

Besides, there are many weaknesses in Hung Long Jsc Firstly, limited

amount of capital is posing a difficulty for Hung Long Jsc The company’scapital has’t been expanded much since its establishment Mr Hai, the ManagingDirector of Hung Long Jsc, said: “we have an advantage in comparison with ouropponents in terms of customer’s loyalty and agood image and reputation, butnow we have a problem of capital that thinking is weakening ourcompeititveness”.

The main source for its capital has been contributions of his family and HungLong Jsc has had a lot of difficulties in finding other sources of capital.

With regards to investment capital from banks, Vietnamese banks are shotage ofinvestment capital, because of the lack of long-term deposits, which in turn dueto the regulated interest rate and low reputation of the banking system As aconsequence, it is normally hard to get long-term ones This mismatch ofmaturity causes many problems to Vietnamese companies including Hung LongJsc.

Secondly, Hung Long Jsc’size and market share have been small The shortage

of capital is main cause of the company’s modest size and market share Up tonow, Hung Long Jsc has had only 4 branches dealing in TV LCD As a result,its market share is among the lowest in the market for TV LCD in Vietnam Thisis a major weakness for Hung Long Jsc, and the company has to be determinedto overcome this if it is to be successful in the future.

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