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
Trang 2These are the basic reasons that make the competitiveness of Vietnamese logistics enterprises far below the current foreign 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 benefits 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 1s 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
Trang 31 Research question
What factors influence marketing strategy of DHB Logistics Co.,Ltd? How to develop a marketing strategy for DHB Logistics Co.,Ltd ? 2 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 3 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
4 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
Trang 4Š 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
Trang 5CHAPTER 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 after 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 scientific field like today
In the 50s and 60s Marketing was spread to Western Europe and Japan, to Eastern European countries in the 60s and 70s, to Vietnam in the 80s of the twentieth century The internationalization 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”
Trang 6needs Customer needs are central to market segmentation which is concerned 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 benefit 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 do 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 product's benefits meet the customer's needs, wants or expectations in a unique way
The marketing mix (also known as the 4 Ps) is a foundation model It has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market" Therefore, 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 4 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 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps plus performance
1.2 The importance of Marketing mix
1.2.1 The necessity of developing marketing MIX e It helps in a clean mix creation
Trang 7be 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
e 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 classified as a new product and hence while designing the marketing mix, the company can come up with good ideas for NPD as well
e Marketing mix helps increase the product portfolio
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 features, 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 portfolio
e Itis 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
Trang 8The 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
e 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 therefore a competitive advantage in the market
e 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 1n 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 1s, 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
Trang 9solid scientific basis, the enterprise has more conditions and more information to satisfy all requirements of customers The role of Marketing 1s shown 1n the following aspects:
e 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
e For the market
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
e For planning
As a means, a tool finds the direction and path of future operations of the company Marketing reflects centralized economic planning Planning and Marketing are closely related: Marketing serves first the processes of implementing plans and creating an objective scientific 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
Trang 10They help an industry in making strategic decisions required for the smooth running of an organization These variables are: PRODUCT e Design e Technology e Usetuiness e Convenience | e Value e Quality e Packaging TARGET MARKET Figure 1: Marketing mix 7P model 1.3.1 Product
This is the 1st p which is the unit that an organization wants to supply in the market It might be a tangible object or an intangible service Tangible products
Trang 11are items such as consumer goods (soaps, toothpaste, and spoons) while intangible can be services like tourism This is the most crucial thing in an organization
A tangible product should have certain characteristics such as direction of usage, warranty, service, ingredients or contents, manufactured date and the expiry date In addition, a product should have distinguishing characteristics that 1s, Unique Selling Proposition (USP) This will assist you to differentiate a product from another Moreover, the packaging concept and the phenomena of originality play a very crucial role
It is as very essential to understand the nature and dynamics of the product in question Each item that the marketing strategist considers consists of levels of products There are just three levels of products They include augmented product, actual product and core product
1.3.2 Price
This is the 2nd P which is simply the amount paid by a consumer for the product It is the amount that a firm will charge a customer for offering the product to him This is another very crucial step whereby if the pricing of certain item is too low, the general trend of the consumers that the item is of sub-standard quality, shows on the sale Alternatively, if the pricing of an item is too high, very few people would be interested with the product since the price tag shocks them off However, it is also hard to decide on the pricing strategy as at times some of the consumers tends to believe that if a product charges high it has to be good
1.3.3 Place
Trang 12are like departmental stores and supermarkets This encourages the consumer to pay heed to the item and this offers the place utility to the customer
1.3.4 Promotion
This is the 4th P that involves publicizing of the product This characterizes of all the communications that a promoter can use in the marketplace to raise the awareness of the product along with its benefits to the aimed segment Promotion has four different elements: public relation, advertising, sales promotion and personal selling Another effective and cheap way of promoting a product is internet Promotion 1s better started before the product is introduced in the market since it increases the interest of the customers and gets him eager to find out what the item is Promotion also determines the positioning of the item as well as the segmentation targeting The right way of promoting affects all the above three variables, the product, price and place If there are effective promotions the distribution points might go up, the price might increase due to increasing brand equity of the item and get the support to introduce other products Nevertheless, the amount of cash required for broad promotions are high
1.3.5 Process
The systems and processes of the organization affect the execution of the service So, you have to make sure that you have a well-tailored process in place to minimize costs It could be your entire sales funnel, a pay system, distribution system and other systematic procedures and steps to ensure a working business that is running effectively Tweaking and enhancements can come later to “tighten up” a business to minimize costs and maximise profits
1.3.6 People
Trang 13market that is in demand for certain types of products and services The company’s employees are important in marketing because they are the ones who deliver the service It is important to hire and train the right people to deliver superior service to the clients, whether they run a support desk, customer service, copywriters, programmers etc When a business finds people who genuinely believe in the products or services that the particular business creates, it's is highly likely that the employees will perform the best they can Additionally, they'll be more open to honest feedback about the business and input their own thoughts and passions which can scale and grow the business This is a secret, “internal”? competitive advantage a business can have over other competitors which can inherently affect a business's position in the marketplace
1.3.7 Physical Evidence
In the service industries, there should be physical evidence that the service was delivered Additionally, physical evidence pertains also to how a business and its products are perceived in the marketplace It is the physical evidence of a business' presence and establishment A concept of this is branding For example, when you think of “fast food”, you think of McDonalds.Whe n you think of sports, the names Nike and Adidas come to mind You immediately know exactly what their presence is in the marketplace, as they are generally market leaders and have established a physical evidence as well as psychological evidence in their marketing They have manipulated their consumer perception so well to the point where their brands appear first in line when an individual is asked to broadly “name a brand” in their niche or industry
Trang 141.4 Nature of Logistics services 1.4.1, Definition of Logistics
Logistics - the science of planning, controlling and managing transportation, warehousing and other tangible and intangible operations performed in the process of bringing raw materials and materials to the production enterprise , in-plant processing of raw materials, materials and semi-finished products, bringing finished products to the consumer in accordance with the interests and requirements of the latter, as well as transfer, storage and processing related information
This definition, as follows from its content, treats logistics as a science As an economic activity, logistics is represented in the following definition: Logistics is the process of managing the movement and storage of raw materials, components and finished products in economic turnover from the moment of paying money to suppliers until the money is received for delivering finished products to the consumer (the principle of paying money - receiving money)
A business that sells products has to find a way to get those items to customers Even if the items are sold online, they’ll still move from Point A to Point B, usually through a shipping service If you’re a one-person operation, you may take each item to the post office, but over time you'll want to upgrade to a shipping provider Grow even further, and things will get a little complicated since you ll deal with shipments using multiple carriers on a regular basis That’s where logistics services providers come in They specialize in managing the shipment process for business, coordinating things so that products end up where they need to be in as efficiently a manner possible
1.4.2 Customers
Trang 15“outsourced logistic services” to transfer their goods In Vietnam, large enterprises in consumer goods, food or technology goods, electronics such as Masan, Vinaphone, Samsung, ect have been at the forefront of this trend and are the main customers of logistics companies
In Vietnam, domestic trade in goods has increased rapidly over the years, besides, import and export of goods has also grown steadily, thus, the demand for logistics services for production, circulation and distribution processes and import and export is also increasing, especially the demand for outsourced services In the future, the demand for full-service, high-quality logistics services across the country, the AEC region and the global scope will also increase
1.4.3 Competitors
In the trend of fierce competition and integration, cutting costs to increase competitiveness for goods is an urgent requirement for most businesses In particular, logistics activities are increasingly concerned by businesses to optimize production costs Vietnamese businesses not only compete with each other but also compete with large foreign enterprises
Statistics of Vietnam Logistics Business Association show that there are more than 1,300 logistics enterprises operating in the country; 80% of which are domestic logistics enterprises but only 20% of logistics market share in Vietnam The remaining 80% market share belongs to foreign-invested logistics enterprises Many powerful logistics corporations in the world have been gradually penetrating and dominating our country markets such as APL, OOCL, Mitsui OSK Line, Maerks Logistics, NYK Logistic, ect These firms not only provide a full range of
Trang 16small part of the above series of activities, or are only subcontractors to foreign logistics investors
Vietnam logistics market is increasingly attracting domestic and foreign enterprises to participate with exciting competition However, the number of inefficient enterprises and withdrawing from the market is not less because the development is largely spontaneous, lack of orientation, lack of capital, inadequate capacity for long-term competition Moreover, the service of these units is single, not yet highly integrated Currently, only a few large logistics companies in Vietnam have a closed chain of services such as Vinatrans, Vinalinks, Sotran, etc mainly small and medium enterprises, mainly doing single supply services 1n the field Vietnamese territory such as forwarding services, packaging services, warehousing, customs services, etc Meanwhile, international intergrated, integrated services are handled by foreign logistics companies Vietnam logistics enterprises operate inefficiently and increasingly feel more difficult in the competition for this service
1.4.4 Marketing mix in Logistics service
There is no universally agreed definition for logistics services, and the role may be interpreted in very different ways across the region At the same time, globalization and increased use of technology are changing customer expectations and the way services are delivered These factors have consequences for the development of logistics policy, as the traditional ways of doing business in logistics, and therefore the way the industry is regulated and promoted, may no longer be appropriate
Trang 17Assembly: There is a wide range of assembly activities that can be carried out in the context of logistics services, covering both low-end assembly (such as kitting) and high-end assembly (e.g assembly of final product based on store requirements) Tahese activities can take place at client premises or the warehouses of logistics service providers Kitting services could also be included in the role of freight forwarder as they may involve basic labeling and repackaging Services
Supply chain: Logistics service providers increasingly offer services from the perspective of supply chain rather than transport This can include logistics consulting and supply chain design, management of supply chain, operation of supply chain, operating as lead logistics provider, procurement responsibilities or inventory management Quality control: Logistics service providers may provide technical testing, localization and quality inspection services, either as in-plant services or at the warehouse
Financial services: Some providers may choose to provide collateral management services, and act as insurance brokers for their clients
upon request
Trang 18Table 1: Mapping of logistics services
Services Carrier Warehouse
provider Terminal operator Freight
forwarders NVOCC MTO Logistics service providers Carriage xX Information services, including track and trace Arrangement of transport operations (x) Warehousing (CFS) Consolidation Customs formalities and other order administration ral es | me le |“ Selection and integration of multiple carriers Kitting Assembly and processing of goods Technical testing Localization Quality inspection Lead logistics provision Logistics consulting and supply chain design
Management of supply chain (including transport, warehousing and inventory) J2 |“ |, | | hs |}®# Operation of supply chain Project logistics Procurement Financial services, such as collateral management or insurance brokering |» |» |“
After market services, e.g reverse logistics,
retums and repairs
Outsourced call centre (e.g technical and
warranty enquiries)
Trang 19
According to the assessment of logistics customer, logistics services are now provided with a variety of prices, but there is a shortage of service quality and the number of logistics companies can meet All stages in the chain according to user requirements Through the assessment results, the important factors that service providers should pay attention to improve the quality of logistics services are (1) Flexibility (83.8%); (2) Price (78.4%); and (3) Quality of service (75.7%) ovided with a variety of prices, but there is a shortage of service quality and the number of service providers can meet All stages in the chain according to user requirements Through the assessment results, important factors that service providers should pay attention to improve the quality of logistics services, the three most important factors are (1) Flexibility (83.8%); (2) Price (78.4%); and (3) Quality of service (75.7%) Figure 2: Evaluate important factors to improve the quality of logistics services Unit: % Reputation EE 21.60% Human DT 24.30%
Information support system DE 27%
Customer support policy Dns 40.50% Reliability Ds 48.60% TC a § 56.80% Quality of service En § 75.70% Price a § 73 40% Flexibility i 83 80% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
Source: Survey of Ho Chi Minh City University of Transport and VLI team
Trang 20customers also require relatively special services such as C / O declaration (certificate of origin), transporting bulky goods or tying special goods
Price 1s an important factor affecting the choice of service users and the competitiveness of service providers, so the manufacturing enterprises also want to be able to cooperate with suppliers services to become strategic partners (logistics companies use products of manufacturing enterprises and manufacturing enterprises using logistics services) to have stable and long-term contracts, minimize risks ro As a result, logistics businesses can also rely on price tools to create competitiveness by reducing prices for loyal customers, customers go in large numbers However, sometimes there are situations that arise that increase because of fluctuations in freight rates, which greatly affect customer satisfaction
In order to improve the quality of service, a specific issue is mentioned that the supply of empty containers needs to ensure the demand for containers in time and better container quality This is a concern for shipping lines and logistics service enterprises Another proposal was to develop the self-printing of Bill (transport documents) at the enterprise for export goods In addition, businesses need to have an effective grasp and update of tax policy knowledge, which is an opportunity for LSP to consult and support customers In addition, some businesses want to improve the coverage and delivery time of logistics companies, such as the supply of new roads, the transport time of North-South lines should be shortened
Trang 21competition as well as use transport applications to find empty vehicles on the journey
Logistics companies are advised to closely monitor each order and continuously review customer feedback at the smallest stages as well as invest or improve hotlines so customers can reflect and Search for information quickly And the problem should be concerned and invested is the integration of application tracking and retrieval on the website so customers can actively check the status of goods in the process of transport quickly
In terms of information technology, logistics service providers are expected to have a uniform, flexible, more stable logistics system and have the following services better met in the future: ERP applications service management, integrated distribution system, EDI container management system as well as warehouse management, inventory management services The proposed JIT principle applies in transportation and order control to save costs and significantly reduce inventory Quality of service staff also needs to be considered and improved Currently, when the issue of the last delivery has brought a lot of added value, sometimes the driver or delivery staff is an important factor in direct contact with the customer and determine the satisfaction of the customer goods about service quality Therefore, business and production enterprises also recommend logistics enterprises to train non-professional staff to improve soft skills such as the ability to communicate with customers, contributing to improving service quality of the business In addition, a team of planning consultants, supply chain operation consultants, logistics specialists and supply chain management also need to be invested in both quantity and quality because the team cannot respond meet the
Trang 22CHAPTER 2: DHB LOGISTICS CO.,LTD INSIGHTS OE MARKETING MIX
2.1 A brief Introduction of the company
Company name: DHB LOGISTICS COMPANY LIMITED Company name abbreviated: DHB LOGISTICS CoO., LTD
Type of company Economic organization of production and service business Charter capital: ONE BILLION
Year of establishment: August 9, 2012 Tax code: 0105965238 Main market: Nationwide
Head office address: No 3 Ngo 92 Nguyen Khanh Toan, Ward Quan Hoa, Cau Giay District, Hanoi
Phone: 02435553558
Owner - The legal representative of the company: LE VIEN HIEU
Trang 23With seniority and experience in the field of logistics, company has been proud that the staff active and enthusiastic, DHB are fully independent and active in his field Especially with foreign companies, DHB LOGISTICS provides investment advisory services, import and export procedures, procedures for obtaining the C/O, customs procedures and other legal procedures company we appreciate the cooperation with customers Such cooperation is mutually beneficial trend was the top priority, clients will save a lot of time and cost and also the credibility of they, DHB LOGISTICS will devote our best to bring about the best results customers desire With 3 offices in Hai Phong, Da Nang and Ho Chi Minh city
Address: 05FL, No 3 Lane 92 Nguyen Khanh Toan, Quan Hoa Ward, Cau Giay Dist, Ha Noi, Viet Nam
Hai Phong Office: No 388 Lot 22 Le Hong Phong, Ngo Quyen Dist, Hai Phong City
Da Nang office: 03 Dong Da street, Hai Chau Dist, Da Nang City
Ho Chi Minh office: 158 Dinh Bo Linh street, Ward 26, Binh Thanh Dist, Ho Chi Minh City
DHB can serve customers at every time and it is aiming at setting up more offices and facilities in Vietnam next time to enhance our services Besides, the company also will develop an agency network in countries and territories to meet customers demand for logistics service all over the world
Trang 24- Prestige: once we made our commitment, we will never break it
- Integrity: we based our business on honesty, responsibility, and ethicality
- Professional staff: we create a friendly, supportive, creative working environment with extensive training programs for our people, so that you can enjoy their sense of service, responsiveness, and professionalism DHB supplies optimal logistics solutions on demand with international standard- To become an expert in logistics that customers and partners can always trust and rely on To offer unique services, and accomplish challenging tasks entrusted by customers and partners no matter how hard the tasks may be
DHB’s commitment:
Offering the most simple - most effective logistics solutions - Competitive price
- Free of charge consultancy
- Maximum saving time & money of customers - Easy payment method
- Enthusiasm - thoughtful style of serving 2.2 The areas of operation of the company
DHB LOGISTICS CO., LTD is a solution to save import and export costs; international and domestic transport 1s safe and effective; Customs declaration exactly according to the import tariff; Strong support for the most profitable customers on taxes that are completely free DHB always offers effective cost control solutions:
Trang 25Control transportation costs and local costs term FOB, CIF, FCA, EXM, DDU
Control the time limit for temporary import for re-export
Control the post-clearance consultation, avoid import and export tax
increase
DHB's strength is a large containerized cargo (FCL), providing package services for international forwarding Dealer system is spread across all continents, especially China, Korea, ASIAN, EU, USA
Services and areas of operation of DHB LOGISTICS: International freight forwarding (FCL)
Collection of goods and international retail freight (LCL) Customs procedures
Packing, labeling, warehousing, warehousing
Trang 262.3 Structure of the organizational management
Figure 3: ORGANIZATIONAL STRUCTURE OF DHB LOGISTICS CoO., LTD
Logistics Director
Documentary Export- Import Bussiness Finance
Department Department Department Department
Role of departments: 2.3.1 Logistics Director
Company representative is responsible to the State management agency for all aspects of the company’s business, directly directing business activities, building an assisting apparatus and directing and supervising to other departments 2.3.2 Documentary Department
- Prepare and handle import and export documents: contracts, bills of lading, invoices, delivery orders, delivery papers to
- Prepare customs declaration documents, apply for certificates of origin, quality certificates, official documents, submission to related parties - Contact the customer, coordinate with the field department to do
customs clearance
- Store records and vouchers
Trang 27- Performing customs declaration activities through software - Instruct field staff to do necessary procedures to clear goods 2.3.3 Export- Import Department
- Receive and process information of shipments
- Get D/O, authorization letter at shipping company, agent - Support and advise customers to provide optimal solutions - Arrange and transfer means to support transportation
- Coordinate with relevant departments to serve customers in the best way - Track delivery progress
2.3.4 Bussiness Department
This is a very important part, playing a key role in the Company Ensure input and output of the Company, access and market research, product introduction and market expansion as well as attract new customers Organize the implementation of business plans, calculate prices and make contracts with
customers
Provide information, translate documents, translate for management Monitor and supervise the implementation schedule of departments in time with contracts with customers and promptly propose the most effective production and business plans
- Sales staff offer prices, provide necessary information and convince customers to use the company's services
- Maintain the existing customer base by keeping in touch regularly, updating policies, new incentives
- Expanding customer groups by promoting new services and customer
Trang 28- Incharge of support and supervision when problems arise to ensure the best service quality to customers
- Provide necessary documents for customers
- Handling customer requests quickly and effectively
- Notice of goods status on the way of transportation to customers - Keep track of large orders, solve customer requests promptly 2.3.5 Finance Department
- Managing financial activities throughout the company
- Prepare monthly, quarterly and annual financial plans and periodically report or report at the request of the Director on the financial situation of the company
- Financial analysis, financial assessment of all business activities of the company
- Prepare accounting statistics, monitor financial implementation to propose effective capital use measures Provide fast and accurate economic information as prescribed by the Director
2.4 Customers
Trang 29AL HYUNDAL ELEVATOR YASKAWA
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A company of ThyssenKrupp Elevator PANlos FF s ei90e5i<eI^ na HR: sj2t@+\C‡ 2) Qne Viszont KŨIEA~ w234vee Œ TOÀN THANG wa R siemens @LG Tg \\ h ENERGY
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Figure 4: Customers of DHB Logistics Co.,Ltd 2.5 Competitors
Along with the economic development and increasing international trade activities, Vietnam's logistics services market has been explored and has been quite active According to Vietnam Logistics Services Association, Vietnam has more than 1,000 enterprises providing logistics services but the number of businesses operating in the field of transport, warehousing, wholesale, retail and fast moving up to nearly 140,000 The number of domestic enterprises accounts for 80% of the total logistics enterprises in Vietnam but only accounts for nearly 25% of the market share More and more large corporations in the world appear and operate: APL Logistics, Sun Express, Schenker, BirKart, BJ, Errmey, Sunil Mezario, Hapag Lloyd, Zim, Maersk Logistics, NYK Logistics, TWT, ect that have high quality and professional human resources, strong and abundant financial resources are taking up 75% market share This poses a big challenge for the company in the context of Vietnam's logistics market
However, the company can still compete well with the nght steps DHB has surpassed its rivals to win the right to transport equipment for the Hanoi - Lao Cai
Trang 30Expressway project; transporting goods for Hyundai aluminum factory project in Diem Thuy Industrial Zone, That Nguyen; Cargo transportation for the project Labor Safety Training Center (Son Tay Town) funded by Koica of Korea, ect In order to achieve this, DHB LOGISTICS has implemented 3PL (third party logistics) package from storage, packaging, distribution, storage, order fulfillment to delivery, delivery, Troubleshooting, supporting manufacturer's marketing, transport, distribution programs, providing solutions to optimize customer profitability
DHB company determined to invest in infrastructure, improve service quality, the system operates according to international standards is the leading competitive value The company invests in management system, specializes in supplying 3PL services in strategic economic locations such as Hanoi, Hai Phong, Da Nang, Tp Ho Chi Minh City, capable of managing and regulating goods on many locations within the region, country and area DHB also implemented the most advanced management software, which helps reduce 50% of employees’ working time in seeking vouchers, tightening relationships with partners, and responding quickly to market changes
2.6 Situation of business activities of the company 2.6.1 Service structure of the company (2013 - 2018)
Trang 321200 1000 800 600 400 200 Figure 5: Revenue of services (2013 - 2018) Unit: Million VND 1123.5 1032.3 500.7 167.7 1109.3 a 94 02 99, a 77.99.2
Customs declaration Packaging & Warehousing International sea Transportation by air Domestic container Multi - modal
and distributing transportation transportation transportation
M2015 ©2014 ©2015 ©2016 M2017 M2015
Trang 33Note: In general, the revenue from the company's services is uneven Revenue from Customs declaration sends the highest position, then Packaging & Warehousing and distributing, the lowest is Multi - modal transportation The reason for the highest turnover of customs declaration is that this is still a potential industry because there are many enterprises specializing in import and export business without knowledge about maritime law Therefore, they often go to such service companies to ensure the process of delivery as well as receiving goods, minimizing unnecessary costs
Customs clearance services bring big revenue to the company and account for a high rate of 33.1% in 2013, 33.6% in 2014, 33.4% in 2015, 33.11% in 2016, 33.77% in 2017, 33.02% in 2018 In 2017, it increased VND 248.3 million compared to 2016, the corresponding application increased by 26.4% In 2018, it increased by 113, 2 million VND compared to 2017, corresponding to an increase of about 10.1% It can be seen that the customs clearance still accounts for a large proportion and the revenue still increases every year but the growth rate decreases The company needs to review the orientation for services and develop new strategies in the difficult economic situation and fierce competition today
Trang 34Domestic container transport services are also interested and invested by the company DHB 1s upgrading and buying more tractors and small trucks to meet the demand of domestic transportation However, due to many factors, this industry's revenue tends to decrease, due to competitive prices, gasoline price increases, and traffic difficulty Turnover rate in 2016-2017-2018 reached 12.18% - 16.74% - 11.17% The company needs to take positive measures to improve its competitiveness
Trang 36Figure 6: Market structure (2013 — 2018)
|
2013 2014 | 2015
Domestic I China Korea HB Domestic B China Korea MDomestic China E Korea l ASEAMN MUSA B® Other markets @ ASEAN BUSA B@ Other markets ®@ ASEAN MUSA B® Other markets
2016 2017 2018
= Domestic m China Korea Domestic li China Korea Domestic China Korea
E ASEAN MUSA @ Other markets ®@ ASEAN BUSA @ Other markets ®@ ASEAN @USA B® Other markets
Trang 37Note: It can be seen that although the market value 1s increasing, the growth rate is decreasing The development of existing markets is not good and uneven
The domestic market always accounts for a large proportion of the total market value of the company, namely VND 1202.1 millon (52.24%) in 2016, 61320.4 (48.1%) in 2017, 1400.1 (41.15%) in 2018 In 2017, the value increased by VND 118.3 million (up 9.84%) compared to 2016, in 2018 it increased by VND 79.7 million (up 6.04%) compared to 2017 Although the domestic market still accounts for a large proportion, it has downtrend This shows that the company is aiming to expand other markets, this is a good expression but the company also needs to pay attention to maintaining the domestic market with more incentives
China also accounts for a significant proportion and little change in the total market value of 21.22% - 21.06% - 21.45% - 22.18% - 22.00% - 22.58% in the 6 years 2013 - 2018 Compared to 2016, the value increased by VND 147.8 million (up 28.96%) in 2017 The year 2018 increased by VND 110.1 million (up 16.73%) China is a potential market with population and geographical distance near Vietnam so the company needs to pay attention to research and development of this market
Korea is a small but promising market with a six-year increase rate of 5.55% - 6.32% - 6.31% - 6.61% - 10.01% -11.41% In 2017, the value increased from 152.2 million VND to 299.3 million VND compared to 2016, equivalent to 147.1 million VND (up 96.65%) In 2018, compared to 2017, it increased by VND 88.9 million (up 29.07%) Currently DHB import and export to the market is erowing very well, so the company should maintain positive expression
Trang 38Dong (increase by 24.20%) compared to 2017 This market growth rate is very high in 2017 (43.25%) and in 2018 reaches 24.20% Because this 1s a market in the ASEAN region, the preferential import and export policies are very good so the company has been on the right track to rapidly develop this market
The United States is a fast-growing market in 2016 but slowed down in 2018 The year 2017 increased by VND 78.9 million (85.48%) compared to 2016 In 2017, it increased only 18 million compared to 2016, equivalent to 10.51% This is a bad sign that the company needs to review the business policy of this area
Other markets (such as Thailand, India, Germany, New Zeland, etc.), while accounting for small values, are growing rapidly In 2016 increased 113 million (up 76.77%) compared to 2016 In 2018, it increased by 46 million (up 17.68%) This is a bad sign that the company needs to review the business policy of this
area
Trang 39Table 4: Company's business results (2013-2018) Unit: Milion VND 2014/2013 2015/2014 2016/2015 2017/2016 2018/2017 2013 2014 2015 2016 2017 2018 T t Absolute Relative | Absolute Relative Absolute | Relative | Absolute Relative Absolute Relative argets Revenue | 1738.2 1958.2 2146.5 | 2301.1 2991.4 3402.4 220 12.66% 188.3 9.62% 154.6 7.20% 690.3 30.00% 41] 13.70% Cost 1482 1625 1709 1725.7 | 2310.1 2654.9 143 9.65% 84 5.17% 16.7 0.98% 584.4 33.86% 344.8 14.90% Profit 256.2 333.2 437.5 575.4 681.3 7475 77 30.05% 104.3 31.30% 137.9 31.52% 105.9 18.40% 66.2 9.70%
Source: Authors’ calculations based on financial statements
Trang 40Note:
- Revenue: The company's revenue is increasing In the 6 years from 2013 to 2018, revenue increased from VND1738.2 million to VND3402.4 million In the year of 2016, it increased by VND 690.3 million (up 30%), particularly there was strong growth compared to the results of 2017 In 2018, revenue increased by VND 411 million (13.74%) compared to that in 2017 Although the revenue increased but the growth rate decreased was a bad expression
- Cost: In 2017, the cost increased from VND 1725.7 million to VND 2310.1 million compared to that in 2016, equivalent to an increase of VND 584.4 million (up 33.9%) It can be seen that the company's cost is much larger in 2017 due to inappropriate cost management The reason is partly due to inflation in the economy, besides, the company also needs to have policies to cut unnecessary expenses From 2016- 2018, the cost increased from VND 2310.1 million to VND 2654.9 million, equivalent to VND 344.8 million (up 14.9%) Costs have fallen more than the period 2013-2018 and lower than the reduction rate of revenue, which 1s a positive sign of cost cutting