The Marketing Strategy of Hung Long Jsc.doc

The Marketing Strategy of Hung Long Jsc

The Marketing Strategy of Hung Long JscINTRODUCTIONNowadays, marketing plays an important part in the successes of every enterprise. However, not many of the companies in Vietnam have paid adequate attention to marketing activities, especially when both domestic and global competition is getting fiercer and fiercer. Being one of the companies specializing in selling TV LCD in Ha Noi, Hung Long Jsc has achieved certain success in this field. Its sales of TV LCD have increased over the years since its establishment. However, the company sales growth 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, my field study is “Marketing strategies of Hung Long Jsc” as report with a view to examiming Hung Long Jsc’s marketing strategy and making some recommendations to improve it.Hung Long Jsc has a lot of business activities, but because of limited time, this report focuses only on the company’s marketing activities for one line of its business, 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. 1 The Marketing Strategy of Hung Long JscChapter 1Basic theory about Marketing StrategyMarketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales . A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin 2 The Marketing Strategy of Hung Long Jscproducts and services that enhance the consumer's interaction with the low-cost product or service."A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of 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, the various strands of the strategy , which might include advertising, channel marketing, internet marketing,promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. 3 The Marketing Strategy of Hung Long JscChapter 2The Marketing Strategy of Hung Long Jsc1. 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 small company and few worker at the head office make production of food.After over 6 years of establishment, Hung Long Jsc opened 2 branches in Ha Noi: 482 Tran Khat Tran,157 Thai Ha and a network of distributiors around the country. There are about 100 skillful and experienced staff working, they are almost 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 and technical Informatics Future was established.It also opened a new sales representative office for selling Califonia’s products.Today Hung Long Jsc has developed rapidly,becoming one of the leader in the field of information technology 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 of hometheater and 2,500 samples of products with diffierent types, styles, designs from well-known companys; meet the needs for daily usage of customers.1.2 Company s product sand services’Products:Hung Long Jsc is one of the leading companies in Vietnam in the field of distribution of information products to customers, agents, as well as to users directly. Products information technology company provides include: 4 The Marketing Strategy of Hung Long Jsc- 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, and peripherals for high-quality systems integration: Processor, Mainboard, HDD, video card, printer, speakers . - The network device: a distribution agent for the manufacturer of the world leading 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 Services: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 - Plan and perform warranty repair, replacement new or leaving the cluster components each March 2 training and consulting for computer rental 5 The Marketing Strategy of Hung Long Jsc - In parallel with providing customers the information technology infrastructure is modern, Hung Long Company is ready to cooperate with partners and customers 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 and durability - Issues of implementation, installation of operating equipment to conduct the training, technology transfer in the company's sales are Hung Long proceed in earnest, 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 to hundreds of machines is always ready to serve customers.1.3 Company s Organization’ 6 The Marketing Strategy of Hung Long Jsc1.3.1 Board of DirectorsHung Long Jsc’s Board of Directors includes a Director General and 2 Deputy Directors General.Director General: Leading the company’s board of management is the Director General who is responsible for managing the use of capital, human and other resources.Two Deputy Directors General: These pepole provide assistance to the Director General. They would sometimes act on behalf of the Director General in his absence. One of them is responsible for the trading, planning, financiak and accouting matters and the other is in charge of technical and research anddevelopment aspects in the company. 7Board of DirectorsDeputy General DirectorGeneral DirectorDeputy General DirectorQuality Acceptance DepartmentTectnical DepartmentTrading DepartmentFinancial & Accounting DepartmentPlanning Department The Marketing Strategy of Hung Long Jsc1.3.2 The departmentsThere are five departments, each of which is responsible for a certain part of the company’s activities.Trading department: this department helps the Board of Directors with trading activities. 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 on importing, material providing and preceding the contracts. Organizing the sales of products is another main task of the department.Financial and Accounting department: this department deals with all financial and accounting matters. Another main function id to manage the use of capital to the right purpose, right policies and regulations, and to assist business activities.Technical department: this department is in charge of technical and technological matters. The staff of this department also works closely with the factories to do researching and applying the modern equipment and technical advance to themanufacturing and processing. This department for the purpose of the company’s business development tales all the adjustments or improvement to the technology.Quality assurrance department: this department takes control over the quality of the products. This is for the purpose of assuring that all the products will meet customers’ requirements.The organizational chart has resulted in good performance and operation. There have been good assessments on the company structure: it shows to be in charge of particular activities and they would be able to precede their fuction 8 The Marketing Strategy of Hung Long Jscreasonably, which results in avoidance of overlappong and cumbersome. This helps the company to be able to take the internal and external advantages; to apply modern and advantanced technology to bring the best fruits to the whole company’s efforts.1.3.3. Company trading resultsTable 2.1: Hung Long Jsc s trading results in recent’ .2004 2005 2006 2007Total sales2.527 3.035 5.783 8.579Net profit 295 350 527 950Source: Hung Long Jsc’s finalcial reports. Unit: million VND.2.The marketing strategy of Hung Long Jsc2.1 SWOT analysis of Hung Long JscAs mentioned in the previous parts, Hung Long Jsc has been trading in a lot of products such as TV LCD, Plasma TV, Home theater, Karaoke, etc., but with the limited time, this report focuses on the marketing strategy that Hung Long Jsc has used while dealing in TV LCD only. As well as external opportunities and threats that Hung Long Jsc faces while trading in TV LCD will be identified for the understanding of HungLong Jsc’s marketing strategy.Table 2.2: SWOT analysis of Hung Long Jsc- Good quality - Better market growth 9 The Marketing Strategy of Hung Long Jsc- Competitive price- Good busiess relation with partners- Customers’ loyalty- Viet Hai Ltd’s corporate culture- Limited capital- Small size and small market share- Not enough techniqual staff- Lack of diversification in product quality- Poor promotion activities.- Growing black market- Firce competition2.2 StrengthsThe 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 world such as Samsung (Korea), LG (Korea), Sony (Japan) and Shap (Japan). These are famous brands in the world market and Vietnamese consumers highly appreciate them. Hung Long Jsc has never had any complaint about the product quality.The second strength is that Hung Long Jsc has been offering very competitive prices for its TV LCD. Hung Long Jsc has been a distributor for these firms since its early day (Samsung, LG, Sony and Shap), and although there are a lots of other companies are acting as dictributors for them, Hung Long Jsc has a certain advantage: Hung Long Jsc has always kept its prices as compeitive as possible. Its prices are among the lowest for TV LCD, usally between 7% and 10% lower than its competitors. 10 [...]... The Marketing Strategy of Hung Long Jsc Conclusion The first part of the thesis concepts related to marketing and the theory that will be later based on to research The definition, the goals of marketing , the contents of marketing as well as implementation and control are main parts of chapter one Gaining an insight into the theory of marketing gives us the background to keep the thesis to be on the. .. Hung Long Jsc is used of product-which the target customer finds The generic product is the basic characteristic about product, which was described by color, trademark, and the package of product Each of the products of Hung Long Jsc has a separate trademark and color 14 The Marketing Strategy of Hung Long Jsc Besides, Hung Long Jsc has always tried to diversify its range of TV LCD Initially, Hung Long. .. major weakness for Hung Long Jsc, and the company has to be determined to overcome this if it is to be successful in the future Thirdly, another weakness of Hung Long Jsc is its lack of the technical staff Although the current technical staff of Hung Long Jsc are qualified for its 12 The Marketing Strategy of Hung Long Jsc technical word, but they are so few in terms of quantity The company’s customers... pulling strategy and pushing strategy to each of target customer as illustrated in the following figures 16 The Marketing Strategy of Hung Long Jsc Pulling strategy Factory Wholesaler Retailer Customer Hung Long Jsc uses this strategy to make the customers have an idea and believe in product and buy the products of Hung Long Jsc Figure: Pushing strategy Factory Wholesaler Retailer Customer Pushing strategy. . .The Marketing Strategy of Hung Long Jsc The third strength of Hung Long Jsc is the good relation with its business pertners Hung Long Jsc has maintained it coporation with the above mentioned business 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 offered technical traning by the foreign experts from Hung Long. .. successes in a long run In this thesis, the write also has suggested some of solutions to improve the marketing strategies for Hung Long Jsc in the time to come The macro22 The Marketing Strategy of Hung Long Jsc solutions give recommendations for the government to complete the legal framework, to improve the infrastruture and to increase the effectiveness in anti countefeit mission The micro-solutions... Noi 15 The Marketing Strategy of Hung Long Jsc 3.3 Place A good distributing policy hepls business activities safer, increasing the connection in business, decreasing compatition and marketing the circulation of goods more quickly and efficiently In the domestic market Hung Long Jsc has good relations with its partners so they help Hung Long Jsc very much in the distribution They help Hung Long Jsc... build the company’s image The measures to build the company’s image will be discussed in the next section 3.2.2 Building the company’ s image It is said that advertising is a business art Hung Long Jsc’s weakness is efficiency of promotion is not good The reason is Hung Long Jsc has not 20 The Marketing Strategy of Hung Long Jsc applied tools of promoting policy It might be an advertising on TV, on the. .. competition Hung Long Jsc authorized dealers indeed offer the retailers who sell Hung Long Jsc’s two-way TV LCD a huge commission compared to those of its competitors As a result, the price of Hung Long Jsc’s TV LCD sold by these retailers may be cheaper as some of them may want to satifice thei commission per two-way to get profits from selling a big amount It is the price competition between Hung Long Jsc... and branch office dividing the price for advertising and discounted price Hung Long Jsc uses this strategy because there are many branches in company Chapter 3: Some Recommendations to Improve Hung Long Jsc’ s Marketing Strategy 2.1 Recommendations to Hung Long Jsc Global marketing strategy is not about standardizing the marketing process on a global basic Although every element of the marketing process . VND.2 .The marketing strategy of Hung Long Jsc2 .1 SWOT analysis of Hung Long JscAs mentioned in the previous parts, Hung Long Jsc has been trading in a lot of. Hung Long Jsc s’ Marketing Strategy. 1 The Marketing Strategy of Hung Long JscChapter 1Basic theory about Marketing StrategyMarketing strategy is