I Introduction 1.1 Company name: RANG DONG LIGHT SOURCE & VACUUM FLASK JOINT STOCK COMPANY 1.2 Business name: RALACO 1.3 Business line: Manufacturing, distributing lighting products, electrical appliances and materials, lighting equipment, glass products and vacuum flasks Scientific and Technical services and technology transfer Direct export and import Consulting and designing residential and industrial lighting systems (excluding civil design) Repairing and installing residential and industrial lighting systems Commercial advertising services Goods transport services 1.4 Slogan for LED Lighting: Reputable & reliable 1.5Mission: Rang Dong is committed to provide high-qualitified and cost-effective products for people livings and the society 1.6Vision: Rang Dong is expected to become leading Vietnam company pioneering in providing green lighting products with high-quality II, Segmenting Domestic Consumer market 1.1 Rang Dong has wide domestic distribution network with: - Board Business Advisory Services in Hanoi - branches in the central and South Vietnam - Centre for Consultation on Lighting and Energy saving - 400 distributors - >7000 agents and retail shops in 63 provinces and cities nationwide - 05 sale channels: Traditional channel, Construction channel, Hi-tech agricultural lighting channel, Mordern consumption channel and OEM channel a) Products of thermos: Geographic: Rural, urban Demographic: - Ages: from 15 to 60 - Serving for individuals or families Behavioral: - Benefits: Keep warm water, have high safety, beautiful packaging b) Products of lighting equipment: Geographic: Rural, Urban Demographic: - Ages: from to 70 - Serving for indiduals, families, schools, hospitals, businesses… Behavioral: - Benefits: Serve for great demand for civil and industrial lighting equipment c) Products of lighting equiment in hi-tech agriculture Geographic: Rural area Lam Dong, Binh Thuan, Tay Ninh, Tien Giang, Long An, Thanh Hoa, Hai Duong… Demographic: - Serving for Farmers Behavioral: - help farmers in agriculture and cultivate tissue for plant breeding III, Segmenting international market Export network: 40 countries in the world, all continents included: Korea, Srilanka, Egypt,Australia, India, Cuba, Eastern Europe… At each country: rural, urban Other variables: buying reasons: School lighting Office buildings Healthcare premises Industrial buildings Retail and supermarkets Home Restaurants and hotels Urban construction Suburban construction Lighting for High-tech Agriculture IV, Discuss the effective segmentation of the company - Measurable: + Domestic market: In 2015, 85% of Rang Dong revenue comes from domestic market + International market: 15% of the revenue Target customer of Rang Dong focus on domestic market and meet the demand of Vietnamese people - Accessible: Since Rang Dong have more than 7000 agent and retail shops in 63 provinces and cities nationwide It is easy for the firm to access to the customers with this thick density stores - Substantial: The privatization of Rang Dong in 2004 is a new beginning for the firm itself when they modernize the company’s management, release resources, spend 2% of its revenue for developing equipment and 20% of profit after taxes for the improvement of technology In long term, the products of company will continuously be innovated and the quality is getting better and meet the global standard - Differentiable: + For the domestic market Rang Dong concentrates on traditional products such as: lightning bulb, Glass refill, Compact lamp and so on + For export to international market in Europe, America, Japan… they spend resources mostly on developing LED lightning from the beginning to the ending and manufacture global standardized commodities - Actionable: According to financial report of 2017, during the first 9-month, Rang Dong reach 176 billion VND of profit before taxes, which is 35% more than the last year And 85% of the revenue comes from domestic market while 15% left is from export V, Explain how the company identify attractive market segments and choose a market-targeting strategy Which strategy (undifferentiated, differentiated, concentrated, and micro marketing targeting strategies) is best for the company ? What are attractive market segments? An attractive market segment is one that - offers solid current or long-term profitpotential for your business - Companies typically consider the various segmentoptions they have to market to and may target one or multiple markets dependingon how much money they have available to invest in marketing How Rang Dong identify attractive market segments: a Rang Dong chooses the market segment can mobilize the company capability: RALACO (Stock code: RAL) is the only company in Lighting Industry that has been honorably voted by Forbes Viet Nam for consecutive years Rang Dong is best known about LED lighting products, especially for the best-selling ones such as LED PANEL 36W, LED BULB A60N2 9W which have high lightning efficiency, low voltage using and long lasting These products of LED lighting are believed to be well-known to nationwide dealers and retailers, lighting consultancy service centers,… This aspect explain how Rang Dong take advantage of the common users segment, who are considering as the largest consumer group in the market On the other hand, the low price makes difficulty for Rang Dong in the exporting field with just a small amount of products exported to China and Cuba, and only focuses on the internal market b Rang Dong gets the market segment which are profitable to the company: Arcording to Pareto rule, Rang Dong has to choose the market segment that can help 80 percent of the output from a given situation or system is determined by 20percent of the input Rang Dong need a large market segments, where advertisers can generate business without having to pull in as high of a percentage of the market segment Additionally, Rang Dong need the opportunity to derive high profit margins by offering value in a way that the market has not experienced is a draw A market with growth potential and benefit from the economical speding habit as a culture of consumers For these reasons, Rang Dong chose the Northern Viet Nam as their main marketsegment Choose a strategy for Rang Dong: Concentrated Marketing is the best Strategy for Rang Dong A company following multi-segment targeting strategy serves two or more welldefined segments and develops a distinct marketing mix for each one of them Separate brands are developed to serve each of the segments Rang Dong is now giving espeicially electric light bulb and vacuum flask to the Vietnamese domestic market, and clearly not everyone shows interest to those products Only people who are responsible to buy household applicances in family or company will give concentration on those stuffs Therefore, on the other side, Rang Dong should also concentrate on that customer base They have to focus on some people like a 30-year-old father, a 40-year-old manager, but never on a young student or a very old lady Rang Dong will strongly improve their bussiness sales number by spreading that strategy → Rang Dong chooses the Northern Viet Nam as their main market segment VI, Explain how the company combine its understanding of the market with its internal capabilities - Strength: + The local leader in plastic business scale, production technology and scope of activities + Using Japanese advance technology in manufacturing + Substantial skills labor force and good management from top-managers + Rang Dong earn 25% of lighting bulbs market and 70% of PVC films in domestic market share + 30 years being recognized by customers and the quality is proven + Strong financial statement with EPS (index earning per share) up to 12.090 billion VND + Product development is strong enough to produce global standard LED lightning - Weaknesses + Marketing activities have not been paid attention yet + Depending on imported sources of raw materials + Limitation of information about foreign markets and competitors because market research is not attention - Opportunity + Increase market share on both domestic and international market if they can change the strategy of the company + The priority of the government for industry related to light sources + Demand for using light equipment is increasing year by year + Potential market such as Korea, Japan, India… - Threats + Meet the extreme competitive from other bran like: Dien Quang, Philips, GE, OSRAM, China’s product + Price for raw material is going up VII, Discuss how the company differentiate and position its product for maximum advantage in the marketing place When businesses make decisions to how to develop their marketing strategy and decide how to try to create value for customers there are essentially two issues they have to consider: Firstly, they have to choose which customers they want to target, which customers they want to sell to The next question is how best to compete in that market, how to serve the customers in the target market segment The issue here is around market positioning how you identify the right positioning for your product in terms of the features that the target customers want In brief, market positioning is how you identify the right positioning for your product in terms of the features that the target customers want the second approach of targeting is to differentiation The aim here of is to try and identify a profitable niche where you can very quickly build a strong market position and hopefully maximize the returns Product differentiation is a marketing process that showcases the differences between products Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products Successful product differentiation creates a competitive advantage for the product's seller, as customers view these products as being unique or superior a) To point out the company’s position in the market, first, we choose to analyse LED light in Domestic market since LED lighting in recent years has becomes a very potential segment due to the demand of the market, Rang Dong is believed to position its product LED as national product when LED lighting is using to replace normal lighting bulbs since it economizes energy The market of 90 million people of Vietnamese is a promised market because everyone need to use light bulbs We now have to decide how to compete effectively in that target market by value propositions - the essential part to differentiate the firm’s products and make market positioning Always remember that market positioning and the value proposition should be from the customer point of view not from the business's point of view because ultimately it is customers who buy products and services With positioning the key issue here is it’s from the point of view of customers and what a business needs to is to try to find a value proposition that gives it a competitive advantage In Rang Dong, to know value propositions, the company asks the customers what appears in their mind when we mention “Rang Dong light bulb” And what we can collect are these five factors: - Quality: include brightness, long life-span, low heat,… Price: reasonable prize Energy saving Distribution system: throughout Vietnam and foreign markets Variety with many kind of products with different models Through these positioning criteria, it helps the company to grasp the needs of its customers These criteria directly affect the purchase decision of the customer as well as find the correlation with the opponent From the research of the criteria, we can establish the best positioning and market plan Positioning map - In Vnmese’s light bulb market, there are three segments of competitors: Chinesse products, Vietnamese products have Rang Dong and Dien Quang and Phillips represents for imported products The job of differentiate is how to make Rang Dong LED bulb stand out of other products Compared to Chinesse and Dien Quang product, Rang Dong’s LED bulb have better quality, much better like Brighter and have longer life-span This is because Rang Dong applied high technology to produce their products Compared to very strong component from outside like Phillips, even though the technology can’t be Rang Dong strongest strength, the prize does I wandered in some threat on the internet to see what kind of light bulb would people choose when they compared all kind of light bulb They said that they would choose Rang Dong for an acceptable prize in pact with acceptable prize Image survey result: Source: http://forum.aicgroup.com.vn/index.php?threads/mot-so-danh-gia-ve-thitruong-thiet-bi-chieu-sang-tai-viet-nam-nhung-nam-gan-day.789/ Brand Energy Distribution prize variety quality saving system Rang 2 Dong Dien 3 Quang China’s 1 1 products Philips 4 Looking at the positioning map, it can be obvious seen that In domestic market, Rang Dong can choose competitive advantages such as wide domestic distribution network and good quality In international market, Rang Dong can choose competitive advantages cheap prices and good quality Conclusion: - Rang Dong has a certain place in customers’ mind and provides its different line of products into the market to meet the need of consumers - Rang Dong had a strong position in the light source and vacuum flask manufacturing market as one of the Top Brands although they have fierce competitors such as Dien Quang or Phillips - Rang Dong owns resources that good and strong enough to compete in nots only domestic market but international market Their products like LED bulbs, lightning bulbs have already been exported to Japan, India, China… And to this better they need to turn the company from state-owned firm to a joint stock company