Global marketing strategy of thien long company

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE SENIOR THESIS Topic: “Global marketing strategy of Thien Long company” Pham Hoang Cuong, MSc Instructor: Student: Le Tuyet Trinh Student ID: 5073106073 Class: KTĐNCLC7B Hanoi, July 2021 ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE SENIOR THESIS Topic: “Global marketing strategy of Thien Long company” Instructor: Student: Pham Hoang Cuong, MSc Student ID: 5073106073 Class: KTĐNCLC7B Le Tuyet Trinh Hanoi, July 2021 i DECLARATION I pledge that this is my research project, with the enthusiastic guidance from Pham Hoang Cuong, MSc The figures in the tables serving the analysis and evaluation are collected by author from various sources listed in the references In addition, the thesis also uses a number of comments, reviews as well as data of other authors and organizations, which are also cited and recorded in the references If any dishonesty is found, I am fully responsible to the council, as well as the results of my graduation thesis Hanoi, July 02, 2021 Author Le Tuyet Trinh ii CONTENTS DECLARATION ii LIST OF TABLES AND FIGURES v Chapter SCIENTIFIC BASIS OF MARKETING 1.1 Global Marketing 1.2 Concept and components of marketing mix 1.3 Marketing decisions .7 Chapter ANALYSIS OF THE STATUS OF MARKETING ACTIVITIES IN THE COMPANY 12 2.1 Company introduction 12 2.2.1 The process of formation and development of the Company .12 2.2.2 Occupation 16 2.2.3 Organization structure 16 2.2 Analysis of recent business activities 17 2.3 Overview of Vietnam stationery market 19 2.4 Overview of the company's export situation and activities 20 2.5 Analyze and evaluate the current state of the company's marketing activities 23 2.5.1 Analyze the organization and build the marketing plan 23 2.5.2 Analyze current marketing plan and implementation 25 2.6 Competitor 48 Chapter SOLUTIONS TO COMPLETE MARKETING ACTIVITIES AT THIEN LONG COMPANY 51 iii 3.1 Intended direction and direction of business activities 51 3.1.1 Mission 51 3.1.2 Visson 51 3.2 Swot analysis 51 3.2.1 Opportunities .51 3.2.2 Threats 51 3.2.3 Strengths 52 3.2.4 Weaknesses 52 3.3 Building solutions to improve marketing activities at the Company 52 3.3.1 Strategic orientation to complete marketing activities in the commercial field of the company 52 3.3.2 Evaluate strengths and weaknesses of Thien Long company .56 3.4 Solution for Marketing - Mix strategy of Thien Long Company .58 3.4.1 Product strategy 58 3.4.2 Pricing strategy 61 3.4.3 Distribution strategy 63 3.4.4 Promotion strategy 67 CONCLUSION 71 REFERENCES 73 iv LIST OF TABLES AND FIGURES Table 2.1 Thien Long's ballpoint pen products’ size 40 Figure 1.1 The process of segmenting, selecting and positioning the target market Error! Bookmark not defined Figure 1.2 Marketing mix model Figure 1.3 Average cost plus profit pricing modelError! Bookmark not defined Figure 1.4 Map of the objectives of a pricing strategyError! Bookmark not defined Figure 1.5 Marketing communication model Error! Bookmark not defined Figure 1.6 Advertising Program Decisions Error! Bookmark not defined Figure 1.7 Multi-stage, multi-media approachError! Bookmark not defined Figure 2.1 The organization structure 17 Figure 2.2 Price list of some products 37 v INTRODUCTION Research motive Customers only buy products or services that they think are most likely to bring them the most added value Therefore, the goal of the business is to create added value from the will of customers and customers In addition, those added values must have the nature, content and scale that customers appreciate as higher than the added values brought by products/services from competitors Thien Long Company as well as other businesses are struggling, researching and trading new products to survive and develop Facing the general trend of the whole society, it is very necessary to apply marketing methods to increase sales efficiency and increase market share of each product that the company does business Only when researching and finding new approaches to customers can businesses increase profits and sales Be aware of the shortcomings in the sales strategy at the business that you work for The student have found some right directions through the lecture on Marketing such as: Marketing strategies to overcome and build new directions This is the purpose of choosing a topic: Marketing strategy orientation of Thien Long company Research purposes and objectives The research purpose of the thesis is from the theoretical foundations of marketing, especially marketing for enterprises dealing in production materials and from the actual operation of Thien Long company, the situation analysis and solutions specific methods to improve marketing activities at the company From there, analyze and predict the actual effects that will bring to businesses if the above measures are applied Research object and area The production and business activities of Thien Long company have many fields, in the thesis will generalize, but the main focus is on some products with good development direction, in the investment orientation of the business - Research methods Methods of collecting data from reference materials: Based on primary and secondary information collected to build theoretical basis and prove the hypothesis - Methods of analysis and summarizing experience: Combining reasoning with reality, bringing reasoning for practical analysis combined with a review of past activities to draw conclusions for the hypothesis - Methods of observation: Collect data, specific events that characterize the course of events, phenomena to discover research and bring to study specific documents, intuitive feelings but has great scientific significance Contents and structure of the thesis In addition to the introduction, conclusion and the list of references, the research topic consists of three chapters: Chapter SCIENTIFIC OF MARKETING Chapter ANALYSIS OF THE STATUS OF MARKETING ACTIVITIES IN COMPANY Chapter SOLUTIONS TO COMPLETE MARKETING ACTIVITIES IN THIEN LONG COMPANY Chapter SCIENTIFIC BASIS OF MARKETING 1.1 Global Marketing Conception Global marketing is a type of international marketing Global marketing is the application of the same marketing mix in all countries Example: A business offers the same product, using identical images and promotion methods in different markets Global marketing is the application of the same marketing strategy by international companies in all markets on a global scale Characteristics The characteristic of global marketing is to standardize marketing strategies and apply them uniformly to all markets on the principle of ignoring differences Global marketing focuses resources and goals to take advantage of global needs and opportunities A global market is a geographical expansion of the domestic market An important job in global marketing is understanding to realize that marketing plans and programs can span the world but also have to adapt in these places Many researchers argue that global marketing companies must be ready to adapt to a globally integrated environment and that it is not necessary that products, promotions, prices and distribution be standardized The majority of the market of consumer products today does not participate in the global market, due to differences in preferences, tastes, consumption habits, etc However, for industrial product lines and raw materials materials serve the general needs of the world Nowadays, along with a higher standard of living, the demand for stationery specifically is ballpoint pens Quality check: Product quality has brought success and prestige to the Company in recent years However, in recent times, the company's product quality is not stable The company needs to strengthen the inspection of the quality of finished products, invest properly in the production stage, boldly handle the finished products that not meet the quality requirements due to the workmanship of workers or due to technical errors to minimize the risks Most of the products are not good quality on the market Support launching new products: The company needs to pay attention to the work of launching new products to the market Before a product is put into production, product staff and market research staff need to coordinate to survey consumer tastes to adjust accordingly After that, the product needs to have a marketing support program from the marketing staff to help customers identify information about the product, the seller and the regional sales-marketing representative can smoothly specific characteristics of the product, favorable for the consumption process It can be an advertising program, promotion for agents, promotion for consumers or a communication activity for the product Product life cycle tracking: Products need to be monitored for their life cycles for timely handling, limiting production costs and storage costs Ballpoint pens that are in the saturation stage should be to step up measures to support consumption to maximize sales and prolong life Redefine target customers for products: Each product has a target customer group, which needs to be differentiated and identified to avoid spreading in advertising and promotions The analysis of product consumption will help the Company get accurate information about the consumption market Check the number of products produced and distributed: The company needs a more flexible policy on the number of products produced per shipment The factory and the marketing department need to coordinate information more closely to redefine the optimal order quantity for orders to match the implemented marketing program The sharing of internal information will also help reduce costs for the Company The factory's production capacity for each item depends on the progress of material supply, the capacity of machinery and equipment, and production regulation The marketing department did not grasp the information about the factory's supply capacity, leading to the case that the promotion program is well implemented, the market's feedback on the demand for goods is in the peak period, the production capacity will be reduced Factory output does not meet demand Product quantity checks are also carried out regularly At present, the Company still has many product lines in the peak season, even though it has exploited its production capacity to the fullest, it still cannot meet the demand, so it can arrange a reasonable amount of inventory to serve when it is in season season Improve design work: In addition to a reasonable human resource policy, a motivational policy to improve the enthusiasm of employees and increase work efficiency, design staff should be recruited with sufficient capacity to meet the needs of the customers for work After that, the Company needs to organize training to improve the qualifications and promote the creative ideas of employees The design staff is responsible for conveying all ideas to the company's product packaging after coordinating the ideas from the market research department and the 60 product department The fact has shown the decisiveness of the packaging design, product label to meet the right consumer tastes for product consumption The design of agency signs should be consistent throughout the system in terms of color, layout, and content so that consumers can recognize Thien Long's brand Advertising designs need to have a layout, a focal point for ideas, suitable for the target audience, avoid spreading lists covering the design surface, failing to convey a specific message to the recipients information, does not bring high efficiency 3.4.2 Pricing strategy Applying flexible pricing policy: although in the market, competition by price strategy is increasingly giving way to competition by quality and brand, but price still plays an important role The company needs to use marketing information in determining the selling price of its products instead of the usual cost-based calculation method Products with outstanding differences or advantages, research shows that the market has good consumption ability, the Company invests, while other competitors want to produce it, it takes time and preparation At that time, the Company boldly set a high selling price according to the principle of "skimming milk" to bring about maximum profit For the demand for advertising goods, the Company can take advantage of the advantages of production capacity, supply ability, and brand reputation to set a high price Efforts to reduce production costs: Currently, production costs have made the company's product costs much higher, reducing competition 61 for many product lines There are many costs that can be reduced if the work is arranged more logically and methodically: - Reduce inventory cost of materials: due to the diverse product categories, many models, the type and quantity of materials is also very large Currently, the process of ordering and supplying materials is done as follows: After receiving an order for finished products from the Sales Department, the factory proceeds to make a purchase order for materials and transfer it to the Planning and Materials Department The planning-material department is responsible for providing the factory with the required quantity of materials according to the order requirements Among thousands of types of materials needed for the production process, each type has its own characteristics in terms of time, quantity and corresponding price The planning - materials department is given full autonomy to decide the optimal order quantity to enjoy the reduced price according to the quantity That's the math at hand However, if you look closely, there are many types of materials that are used in very small quantities, not often With the quantity supplied by the Planning and Materials Department, the factory had to store for a long time and lead to capital stagnation To overcome this, the Factory and the Planning and Materials Department need to set up information boards about their work to share in the process of coordinating work The management level needs to strengthen supervision and check the inventory of materials in order to promptly take action The company also strengthens the training to improve the qualifications of full-time employees, especially in inventory management skills - Reduce the cost of inventory of semi-finished products: Regularly monitor and check the warehouse of semi-finished products to handle the asynchronous inventory of semi-finished products arising in the production process, minimizing this cost 62 3.4.3 Distribution strategy A, Dealer channel: Debt policy: + Find out the financial capacity, business ability, industry experience of new customers before signing an agency contract Research on the application of deposit regulations for new agents + Commendation for regional and branch marketing-sales representatives who perform well in collecting customer debts according to regulations + Apply the form of salary payment based on sales revenue instead of current sales Complete sales policy for general agents and agents under branches: + The company needs to have specific policies stipulating the consumption capacity, geographical limits or discount rates, sales policies for customers for general agents + Encourage branches to establish regional distributor model Select large first-level agents, have a healthy financial situation, have the ability to cover a large area, reputation, experience pilot the distributor model Assign to distributor specific area covered The branch will support the distributor in market development and sales support The distributor is responsible for developing and taking care of customers in the area, ensuring that it covers the assigned area, grasping information about the area to promptly report to the branch for an appropriate response policy Price policy: + Apply the policy of immediate payment bonus (within days for customers in the area of the branch or week for customers in the province outside the area) to quickly collect debts, reduce the situation in debt repayment or intentionally misappropriated capital 63 + Have a preferential price policy with orders in bulk, bags or encourage customers to sign contracts to buy products in a stable quantity regularly Local coverage policy: + Bonus for regional sales representative or regional distributor when opening new customers by discounting method according to first order value, then bonus according to total sales in the next months to encourage regional sales-sales representatives and distributors to seek to expand distribution systems Product diversification policy: + Applying preferential policies to encourage customers to expand their business product categories, especially for new products through many forms such as preferential prices, gift support, promotional material supply pages, display shelf + Reward agents who have market information about new products and put them into effective production and business + Encourage the branch to boldly expand the range of business goods in the area Source guarantee policy: + Make orders for regional sales representatives and branches according to weekly, monthly, quarterly orders instead of daily orders or when needed Weekly, monthly and quarterly orders help the ordering-coordinating department to operate more scientifically and on a more grounded basis, thereby improving the efficiency of ordering as well as meeting the demand for goods in business At the same time, the ordering department is able to share the work of sales planning as well as the responsibility for the branches - the units that directly hold the market + Regularly monitor, check and predict market demand to determine a reasonable order adjustment level Remind branches with incorrect orders and 64 reward branches with correct orders to improve the overall efficiency of the system Debt policy: + Find out the financial capacity, business ability, industry experience of new customers before signing an agency contract Research on the application of deposit regulations for new agents + Commendation for regional sales-sales representatives and branches for performing well in collecting customer debts according to regulations + Apply the form of salary payment based on sales revenue instead of current sales Shipping services: strengthen the supervision of regional sales-sales representatives for branches to ensure the delivery schedule for agents Sign transportation contracts with professional transport units when delivering large quantities to customers to ensure time and save costs (rail transport instead of cars) Customer care policy: + Organize bonus programs according to sales for registered customers; + The page provides dealer signs, display shelves, advertising gifts + Quickly solve cases of products with technical defects or complaints from customers B, Bookstore Channel: Policy to expand distribution of bookstore system: The distribution channel through bookstores should be assigned to full-time staff instead of staff in charge of the current area This dedicated staff only specializes in monitoring, managing and developing customers in the bookstore system Doing this, the Company will get the best information from the market to respond promptly Bookstores have different consumption 65 characteristics than agents In terms of sales, this place can sell not as much as a level agent However, because customers buy consumer goods directly, the number of customers is large, the ability to promote products is high This place often focuses on entertainment programs to advertise and promote products and brands, so if combined, it will bring high efficiency Debt policy: apply a policy of overlapping debt to encourage bookstores to order in batches Reward and encourage bookstores with high turnover and good payment Diversity policy: There are preferential policies for employees in charge of stationery industry at bookstores to increase the number of products of the Company at the bookstore system Product display policy: Cooperate with bookstores in increasing the display area of the Company's products at convenient locations Building a good relationship with the bookstore's sales staff - the most effective channel of communicating information to consumers Product diversification policy: + Separate the department in charge of advertising customers - the school directly belongs to the sales department, only coordinating with the marketing department horizontally This department is responsible for exploiting new sources of suitable products for its customers The company has a specific reward policy for employees in charge when exploiting new products well + For preschools and primary schools, it is necessary to keep abreast of the demand to promptly supply products for children, take advantage of exploiting internal information to search for orders to supply learning tools 66 Flexible sales policy: building an official sales regulation that applies exclusively to this channel, avoiding the current situation of emotional decision of each order, part of the workload on the management level , on the other hand limits the flexibility of employees and reduces business efficiency The policy of advertising sales should be built towards two specific goals: products that meet the needs of advertising customers; satisfy the interests of the person in charge of the order D, Direct retail channel: It is necessary to develop a reasonable retail price applied at the Company for retail customers or small stores Specify a minimum sales level to apply the wholesale price 3.4.4 Promotion strategy In the coming time, marketing and advertising strategies should be oriented on the following contents: A, Continue to maintain and expand brand promotion, build advertising strategies towards specific goals: - Launching a contest to create advertising slogans for the Company Perform re-branding, identify target customers, and then transmit advertising messages to customers - Depending on the objectives of the advertising plan, the characteristics of the customer, the advertising message needs to be close to the content the company wants to convey -Choose suitable newspapers and magazines to advertise The advertising template must be designed impressively, professionally and with clear ideas, not just listing a series of product images like today 67 - Redesigning the unified agency sign template, with a clear layout, can include types of signs: only brand advertising signs and new product advertising combined signs Conduct a review of the list of dealer signs, systems and classifications to monitor Choose large-sized signs, located in beautiful locations (populated, gateway to the city, large intersections, places that attract passersby's vision) for new construction first Then gradually replace other signs as they mature - Encourage branches to find convenient locations to install advertising signs, to maximize the location of stores to serve the installation of billboards - Making self-introduction films in the form of reportage to broadcast at provincial and city stations, and at trade fairs - Enhance the printing of new product introduction leaflets attached to the distribution channel during the first product introduction so that sellers can easily introduce to consumers the features of the new product, its use in the process of convincing customers as well as consumers can recommend more about the new product to others B, Enhance customer care activities: - Regularly organize visits to distribution customers on agent channels Every year, it is recommended to make visits and give gifts to customers throughout the system: + The first time around July, August: organizes customer visits, applies a bonus policy for some customers (can choose different criteria such as customers with the highest revenue in the area, customers with customers with the best payment situation, the best customer consumes certain product codes ); giving samples of new products on the occasion of the back-toschool season; implementing promotional programs; collect information, comments from agents, handle and record complaints and complaints 68 + Second time in November, December: organizing customer visits, sending New Year greetings, spring cards, giving new year calendars, introducing new products, advertising and promotions of the Company, collecting information customers, regional markets C, Focus on investing in trade fairs: - Encourage branches to participate in prestigious trade fairs in the area in charge of the branch in order to strengthen the promotion of brands and products in the area - In addition to direct sales, it is necessary to invest in advertising work at the fair such as designing and staging booths with brand style, Company products, organizing fun and exciting activities at the booth products associated with the Company's products to attract visitors at the fair D, Effective exploitation of sponsorship programs: - Strengthen supervision of the benefits of sponsorship programs, not simply assigning contracts to organizations to implement Sponsorship activities bring the benefits of advertising in the press, advertising on banners, signs, information at press conferences if not well monitored, sponsorship benefits cannot be exercised fully or not adjusted to suit the message of the Company from time to time - Organize or participate in fun activities for children associated with the Company's products to quickly create sympathy for young customers such as painting and coloring contests on the 1st day of the year On the occasion of the Mid-Autumn Festival, on the occasion of the Mid-Autumn Festival, on the occasion of the Mid-Autumn Festival, on the occasion of the Mid-Autumn Festival, holidays, and holidays, organize festivals for mothers and children on the occasion of March 8, October 20 to create a playground for the whole family 69 E, Exploiting media information: - The company needs to strengthen the exploitation of press information in the form of public relations (PR) and social media Every month the Company has new or improved products The company regularly participates in social charity activities, organizes sponsorship programs, promotions, participates in fairs Such information, if introduced, will bring about very high advertising effectiveness, easy to get into people's hearts at a much lower cost than buying advertising space 70 CONCLUSION There are many marketing solutions, but choosing the solutions that are really suitable for businesses with the products that Thien Long company is trading and in line with the development trend of the market has a very important meaning for them production and business activities of the company Based on the scientific basis of the topic and the solutions outlined on those bases I realize that the product development environment for peripheral networks of telecommunications systems that Thien Long does business has advantages because the company has been operating in this field for a long time, has experience in implementing the following projects project and has a certain place in the customer's mind Here are some recommendations that businesses should consider when implementing the solution: - When realizing the importance of marketing activities, the company needs to organize a marketing department and allocate departments according to functions to specialize in this activity of the business - Re-evaluate the market, market share, take promotion measures to increase sales, look for new products, new brands with similar quality but high price competition to fill the product segment is in decline - The company's leadership needs to research an appropriate marketing strategy, with an investment cost equivalent to the set goal to be able to bring about the desired effect - On the basis of the above-mentioned solutions, it is necessary to implement synchronously so that the solutions with advantages will support each other, enterprises also need to balance the level of expenses spent at each time to suit their ability capabilities, suitable for each target audience It is necessary to 71 flexibly apply the price solution (the solution with the highest rate of return on investment) to have a good impact on customer psychology As a student, I have outlined the scientific basis and measures to promote the company's activities and hope to apply the above solutions to the actual activities of my company, contributing to the development of the company strong and sustainable development for the business in the long term 72 REFERENCES Marketing bản, NXB Lao Động - Xã Hội, Trường Đại Học Tài Chính – Marketing Nguyên lý Marketing, NXB Đại học Quốc gia (2003), Trường Đại Học Quốc Gia TP.HCM, TS Nguyễn Đình Thọ, Nguyễn Thị Mai Trang http://www.marketingchienluoc.com/ http://ust.vn/ thienlonggroup.com http://sohuutritue.thv.vn/ flexoffice.com.vn Tổng quan marketing quốc tế, 2014, Bản quyền UEHLEAK.COM Marketing quốc tế, ThS.Trần Thu Trang Chiến lược kinh doanh quốc tế, Tổ hợp công nghệ giáo dục Topica 73 ... STATUS OF MARKETING ACTIVITIES IN COMPANY Chapter SOLUTIONS TO COMPLETE MARKETING ACTIVITIES IN THIEN LONG COMPANY Chapter SCIENTIFIC BASIS OF MARKETING 1.1 Global Marketing Conception Global marketing. .. weaknesses of Thien Long company .56 3.4 Solution for Marketing - Mix strategy of Thien Long Company .58 3.4.1 Product strategy 58 3.4.2 Pricing strategy 61 3.4.3 Distribution strategy. .. 2.1 Company introduction 2.2.1 The process of formation and development of the Company 2.2.1.1 History Thien Long (official name: Thien Long Group Joint Stock Company, English name: Thienlong