Implementing marketing mix for logistics services of DHB logistics co , ltd

INTRODUCTION Logistics activities make an important contribution to the distribution of goods from production to consumers and also a "global commercial bridge" Today's logistics activities are not only associated with warehousing, freight forwarding, but also planning, arranging raw flow, materials from suppliers to manufacturers, then moving goods from production stage to the final consumer, creating interconnection in the whole society according to optimization plans, reducing the cost of rotation and storage After years of Vietnam joining WTO, the market of Vietnam's logistics Services has seen positive changes with the number of enterprises operating in the industry growing fast and having high growth rates If we look at the pace of trade development in our country, which is also the development target of logistics Service industry, we will see import and export tumover increase by 1.86 times, the domestic retail market will increase by 20- on average 25% per year and as a result, the logistics Service sector also increased by 20-25% per year However, according to statistics, Vietnam logistics companies only operate in domestic or some regional countries, and mainly act as agents or undertake each stage for intemational logistics enterprises Meanwhile, tồreign companies (about 25 multinational companies, accounting for 70-80% market share of logistics Services in Vietnam) with a range of activities in nearly 100 different countries This is one of the obstacles for Vietnamese enterprises to provide package Services to customers Because, in the trend of globalization, shippers tend to outsource from many countries and territories around the world Although it may take into account the role of agents established by Vietnamese companies in other countries, this relationship is often quite loose and heterogeneous These are the basic reasons that make the competitiveness of Vietnamese logistics enterprises far below the current tồreign enterprises, only undertakes a number of single Services in logistics operations such as customs clearance, transportation vehicles, warehouses, etc In the context when Vietnam's import and export activities are growing, domestic trade is expanding and the demand for logistics Services increases, this is an issue that needs special attention and overcome to limiting the loss on the domestic market for the sector considered the importance Service sector of the economy, not only bringing great benetĩts to the country but also playing an important role in renovating the current growth and economic restructuring model For all of the above reasons, it is very important to develop successfully in Logistic field at Vietnam market for DHB Logistics Co., LTD, which not only contributes to the development and enhancement of economic performance jointly, create a source for the company, but also create a premise for expanding the logistics activities of the company to other markets Therefore, it is necessary to have an overall view of the marketing environment from which to develop Solutions to improve the marketing strategy, help improve the efficiency of logistics business That is also the reason for the research: IMPLEMENTING MARKETING MIX FOR LOGISTICS SERVICES OF DHB LOGISTICS co., LTD Research question What factors inHuence marketing strategy of DHB Logistics Co.,Ltd? How to develop a marketing strategy for DHB Logistics Co.,Ltd ? Contribution of Research - Researching the theory of marketing concept, mixed marketing strategy and how to formulate marketing strategy - Analyzing the business situation of the company in 2013 - 2018 - SWOT analysis to propose company strategies that need to be implemented first - Develop Marketing Mix strategy for Logistics activities Methodology Methods for Processing and analyzing data: - For secondary data and primary data in qualitative research: Using inductive method, synthetic analysis method, comparing collected results for research through SWOT matrix tool SWOT analysis method to identify market needs and volatility to determine characteristics of target customers - For primary data in quantitative research: All collected data will be processed with the help of the MOS EXCEL 2010 software Scope of the research - Space: Main business activities of DHB Logistics Co.,LTD: Customs clearance, Warehouse leasing, Sea transport, Air freight forwarding, Domestic Container transportation, Multilateral transport awake - Time: analysis time from 2013 to 2018 Structure In addition to the Introduction and Conclusion, the thesis composition consists of three main chapters as follows: CHAPTER 1: LITERATURE REVIEW OF MARKETING MIX FOR LOGISTICS SERVICE CHAPTER 2: BACKGROUND OF DHB LOGISTICS CO.,LTD CHAPTER 3: SOLUTIONS TO COMPLETE MARKETING STRATEGY FOR LOGISTICS SERVICES CHAPTER 1: LITERATURE REVIEW OF MARKETING MIX FOR LOGISTICS SERVICE 1.1 Definition of Marketing mix In the behavioral Sciences, Marketing is one of the youngest industries The appearance of Marketing only started in the 1990s, can generalize the development process of Marketing into two periods: (1) the period from the beginning of the 20th century to the early 1960s and (2) the period from the 1960s to the beginning of the 21st century Marketing comes from an English term "market." The term "marketing" was first used in 1902 on the lecture hall of Michigan State University in the us In 1910, all General Universities An important case in the United States began teaching Marketing, and for nearly half a century, Marketing was taught only in English-speaking countries, but only aíter the world economic crisis (1929 1932) and especially after the Second World War (1941-1945), marketing activities have made great leaps, strongly developed to really become a popular scientiíĩc íĩeld like today In the 50s and 60s Marketing was spread to Westem Europe and Japan, to Eastem European countries in the 60s and 70s, to Vietnam in the 80s of the twentieth century The intemationalization process of Marketing has grown very fast Today, almost all countries in America, Europe, Asia, Australia, Africa have taught and applied Marketing in production and business effectively As Philip Kotler explains in his book Marketing Management: “Marketing is an administrative and social process through which individuals and groups obtain what they need and desire by the generation, offering and exchange of valuable Products with their equals Marketing research, conducted for the purpose of new product development or product improvement, is often concemed with identiíying the consumer's unmet needs Customer needs are Central to market segmentation which is concemed with dividing markets into distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who might require separate Products or marketing mixes." Needs-based segmentation (also known as benetĩt segmentation) "places the customers' desires at the forefront of how a company designs and markets Products or Services." Although needs-based segmentation is difficult to in practice, it has been proved to be one of the most effective ways to segment a market In addition, a great deal of advertising and promotion is designed to show how a given Products beneíĩts meet the customer's needs, wants or expectations in a unique way The marketing mix (also known as the Ps) is a tồundation model It has been detĩned as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market" Thereíồre, it refers to four broad levels of marketing decision, namely: product, price, promotion, and place Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century The contemporary marketing mix, or the Ps, which has become the dominant framework for marketing management decisions, was first published in 1960 In Services marketing, an extended marketing mix is used, typically comprising Ps, made up of the original Ps extended by process, people, and physical evidence Occasionally Service marketers will refer to Ps, comprising these Ps plus pertbrmance 1.2 The importance of Marketing mix 1.2.1 The necessity of developing marketing MIX • It helps in a clean mix creation Your marketing mix should have all the P’s compatible with each other The price should be compatible with the placement of the product The product should be compatible with the promotions In general, all the P’s are intrinsically linked to each other As a result, when you are making a marketing mix, it becomes a Chain of strong bonds And these bonds then guide you forward in making the Chain longer Whenever you are considering adding a new feature or changing existing things, you have to look at the overall picture, which helps in creating a clean marketing mix for the product • Marketing mix helps in New product development While designing an existing product, there are any number of ideas which can come up for a related product that can be designed by the company The pricing, place and promotions might be different for such a product Nonetheless, it can be classitĩed as a new product and hence while designing the marketing mix, the company can come up with good ideas for NPD as well • Marketing mix helps increase the product portíồlio Whenever you want to increase the product depth or product line and length, you have to make minor changes to the product In essence, you are making minor changes in the marketing mix itself You are making changes to the product íeatures, to its pricing and possible to its promotions As a result, by altering the marketing mix and certain features within it, you can end up with an enlarged product portíồlio • It is a guide to improve a business Physical evidence was an important p in the Service marketing mix If a restaurant or an interior design business realises its important, then naturally they can act on it and improve the physical evidence of their business thereby bringing in more business The importance of marketing mix is evident in more then a single p People and process are important to the organization too and optimizing both can improve the overall working of the organization Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis • It helps in differentiation When you analyse the marketing mix of Competitors, there are many different ways that you can differentiate yourself from the competitor The competitor might have poor promotions and by analysing them, you can create better promotions of your own product The competitor might have poor placement of Products or he might have the wrong process or the wrong people in place All this can be improved upon giving you a better marketing mix and thereíồre a competitive advantage in the market • Finally, it helps you in being dynamic A company which is well prepared is also prepared when disaster strikes During recession or during a poor business environment, a company should be ready to respond At such times, the company needs to be dynamic in nature Such a company needs to understand its product, processes, people, promotions and all other P’s better If it understands them, it will respond with a better agility Thus, there are many ways that marketing mix may be important to an organization The best part is, analysing and understanding the marketing mix is not a lengthy procedure and the ROI on the time spent is much higher 1.2.2 The role of marketing strategy Marketing plays a very important role in business It guides, directs and coordinates the production and business activities of businesses Thanks to marketing activities, the decisions made in production and business have a more solid scientiíĩc basis, the enterprise has more conditions and more information to satisfy all requirements of customers The role of Marketing is shown in the following aspects: • For production - Helping to survey the market, production and consumption activities, to meet customers' needs in a practical way - Marketing is a method to concretize business plans at enterprises - Help to harmonize the objectives of the enterprise, stimulate research and improve production • Forthemarket Applying Marketing has the effect of stimulating the social market in and outside the country, closely associated with the mechanism of economic life Marketing is essential when dealing with market problems, in the relationship between the company and the market • Forplanning As a means, a tool finds the direction and path of future operations of the company Marketing retlects centralized economic planning Planning and Marketing are closely related: Marketing serves first the processes of implementing plans and creating an objective scientihc basis for the plan; whereby the Science and reality of the plan are enhanced On the basis of marketing research, draw conclusions about the ability to consume Products obtained through the operation of corresponding investment Capital 1.3 The process of developing marketing MIX The Marketing mix is a set of decision that needs to be considered prior to introducing a new product These variables are also called the P's of marketing They help an industry in making strategic decisions required for the smooth running of an organization These variables are: PLACE Retdil VVholesale Mail order Internet Direct Saies Peer to Peer Multt-Channel PRODUCT Desiqn Technology ú