Marketing strategy for woman apparel thai tuan case

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D cx MN a eM DWWPRSHETIMREDEI NGUYEN THI NGOC TRUONG a MARKETING STRATEGY FOR WOMAN APPAREL THAI TUAN CASE MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT et Hi tỏ 1?.MGA TRUGNG BAL HOC nu VIEN Tutor's Name: Hoang Thi Phuong Thao -HO CHI MINH CITY (2011) ưng TABLE OF CONTENTS — Page “HH de -«s++s nen Terms and AbbreviatiOnS . - List Of Figures cssessesssssssssseeseseesesessseseeseseeneeseserncenensenssneseneseey mm List of 'TaÏS -Gc vi c2 13 9293321119 k7 1017712 1111310240117 1011111117271 Vii gi 71110 Ẩn -rrrrrdeeg ttttrttrt 5s nhhnhhhtt Executive Summary Chapter One: Vv | INTRODUCTION aaớỶỜ"a (an ao 1.1 Iniersifiio 0m 1.2 Rationale NT HH1 1.3 Problem statement . : -c-sssrererererrrrrrrrtrtrdtrrtrrrdrrrrrrrrrrrtre 00 1711 1611100110111 «cererrrrrrrrrrrrrrrrtrdrrttrdrrrtrrrrrrrrrnrr Research ObjectiV©S -1.4 — S31 19 km 1.5 e Scope and Limitation of Research -eeeeeenrrrrrrrrerterrrrrri 1.6 Research Methodology 1.7 —_ Data Collection 1.8 — ‹ -‹ ceneenhrrrrtrrrrtrtrrrdrrrrrrrrrdtrrtrrttrrrrer ccccccesscccessseeeesreseeeereeeessnnecesenaeesenenaeessnnaesoseraceessaneeeseeeeees Project Structure . Tnhh REVIEW Chapter Two: LITERATURE CN Hg ng ng 16 km ve 2.1 Marketing Strategy — 2.2 rtrrr Marketing Obj€ctiV€S . -eeenehhrrrrrrrrrtrrrrrrddtrrtrrrrrtr 2.3 Developing the Marketing MiX -ceeererrrtrrrrrrrrrrr Chapter Three: EXTERNAL ANALYSIS rirrrrrte 11 hrrrrrrr ss hhnrHrin.‹-sshhhhnn vs 3.1 General environmen[ 3.2 Textile Garment Industry in Vietnam markKet -c+seceenernrrrrrrrre 14 3.3 — 16 Retail fashion business in Vietnam marK€( ‹‹ +++creeteettettrrrrtrrte 3.4 16 Potential Competitors and market segmentatiOn -:-.-trrrrr: 3.5 rrttrrrrrrre 17 erhrrttre - -+ern Marketing activities for apparel market Chapter Four: THAI TUAN COMPANY SITUATION 4.1 Thai Tuan Company Profiles t1 k9 4.1.1 History of Thai Tuan company ANALYSIS 011017408111 19 0861.0909 k8 TH ng rtreerrrerried 19 dtrnrrrrtret 20 4.1.2 Thai Tuans Main actIVitiâS .- ôôeehhrrrrrrnrrrrdttrrrrrrr 4.1.3 Thai Tuan’s main products 21 dtrr 21 4.1.4 Company Mission ceerrrerrrrerrrrrrrrrrrrrtrrrrdrrrttrrrrrrrr et ere nig Te : wee weep wale hưng | 21 + 4,2 Company Marketing ObJeCtIV€S chinh 4.3 Company” Organ1z24flOn 0g 22 | HH Hà nhìn + s9 tệp 22 11 Thành 4.4 Business Performance -‹ K11 11 111 111211111101 khenen «cà 4.4.1 Market Share AnySIS bene 22 24 4.4.2 Customer Segmentation +e-.+ ¬ sehhhhhhhrrHrrrdde 24 4.4.3 Production and Turnover RecOrd .se sen -hen 25 4.5 Distribution System of Thaifuan Hư the sen nhe 4.6 Analysis of marketing aCfIVI{I€S 26 he 27 .-sằ n9 4.7 Results and Discussion Of SUrV€V 4.7.1 Result of quantitative survey t1 1101110 4.7.2 Result of qualitafIV€ SUTVCY Chapter Five: DEVELOPING MARKETING 0100011719 27 Hi u 29 STRATERGY 5.1 Thai Tuan SWOT Matrix AmalySis ccesscccccsessenseneeeeessensceesesssssnnseeeesessaneess 34 5.2 Proposing Marketing Alternatives for Thaituan ccccccscsssseessnecttieetseeeeseeens 36 5.2.1 Marketing Objectives mẽ 36 5.2.2 Marketing Segmentation, Targeting and Positioning ‹‹ - 36 5.2.3 The proposal for Thaituan’s Marketing Strategies 38 5.3 CONCIUSION sesscccccesessnecccesessnnceeeeessneneeececsesseaceseesesseaeuseceeessseaeseeeensnaeeneseeseneaeas 49 REFERENCE General Literature Materials related In Vi©fnam 50 _ -uc ng HH TH t1 0011 00 tr 50 APPENDIX Lu 52 Part 1: In-Depth Ínt©CrVICWS 0001 tre Hung 52 00811 54 Part 2: Survey Sh€Gt( ng LH HH h0 ng H1 1100101 T04 APPENDIX II -Survey Resulis - Ăn SH hư 59 APPENDIX III - Supplement Eigures Net TỐ 65 ts TERMS AND ABBREVIATIONS SWOT Strength, Weakness, Opportunity, Threat HCMC Hochiminh City Vitas Vietnam textile association AFTA Asian Free Trade Area WTO World Trade Organization VINATEX Vietnam Textile Corporation R&D Research and Development PWC PriceWaterhouse and Cooper MKT Marketing Dpt Department Corp Corporation Jacquard Fabric Fabric with flower and patent design by weaving Satin Fabric Fabric with plain weaving with cool and luster surface vi te LIST OF FIGURES Figure - GDP growth rate in Vietnam during 2005-est.2011 Source: Vietnam Economic Time year 2010 Figure - Vietnam Population from 2000 - 2011 Source: Vietnam Economic Time, year 2010 Figure - Percentage of ages in population in Vietnam in 1979, 1989, 1999, 2009 Source: Statistic Department, Year 2010 Figure - Local ready made apparel Production during 2004 — 2010 Source: Statistic’s Vinatex, 2011 Figure -Vietnamese Consumer Expenses on Clothes and Shoes Source: PWC Figure - Market share of jacquard and satin fabric in Vietnam Source: Thai Tuan Marketing Department in 2010 Figure - Percentage of Fabric and Apparel Turnover Source: Thai Tuan Marketing Department (2011) Figures - Sleeping wear's brand awareness in the market Source: Thaituan marketing dept Figures -Marketing Budget's Expenditures In 2011 Source: Marketing dept Figures 10 - Attributues of sleeping wear of brands in the market Source: Thaituan marketing dept Figures 11 - Customer's group of age Source: Thaituan marketing dept Figures 12 - Customer Size of age group Source: Thaituan marketing dept Figures 13 - Percentage of apparel attributes Source: Thaituan marketing dept (1995-2015) Vii be LIST OF TABLES Table - The number of retail shops in Vietnam market Source: PWC Table - Thai Tuan’s Main Development Milestones Source: Thai Tuan Corp Table - Thai Tuan’s Organization Chart Source: Thai Tuan Corp Table - Thaituan Production and tugnover Record (2008 - 2011) Source: Thai Tuan Corp Table - Direct channel Source: Thaituan Sales Dept Table 6- Indirect channel Source: Thaituan Sales Dept _ Table - Thaituan's sub-brands Source: Marketing Dept Table - Ready - made apparel brands Source: Marketing Dept Table - List of yarns to make material to supply for apparel industry Source: PWC Table 10 - Marketing Objectives Table 11 - Market Segmentation Table 12 - Proposal Implementation Marketing Strategy Table 13 - Channel list Table 14 - Channel of company showroom + EXCUTIVE SUMMARY - Since year 1993 - Thaituan Group Corporation's established, Thaituan had set up business for fashion fabric only woman, there were several marketing activities which had been implemented under marketing strategy of fabric In 2008, Thaituan decided to expand production and trading fashion apparel product, however there are no any’ properly marketing strategy for this category, so in the mind of almost customers still recognize Thaituan as a supplying fabric To this aim, the author has of Thaituan Group Corporation in Vietnam market examined the current situation of Thaituan Corp and focused on the marketing strategy for fashion apparel for woman of company Then, the marketing strategies are proposed | based on the analyzing of related external and internal factors | ị i I" ° : : ` Then, the author has introduced a general view of Thaituan Corp during the time of establishing until 2011, described business activities and main products which are doing business, stated how is the company mission; explained Thaituan's marketing objectives and business performance during year from 2008 to 2011, analyzed current marketing activities in the purpose of finding out the main marketing problem of apparel business The last part of this step has explained and reported the result and discussion of market survey based on quantitative and qualitative research This is considered the most important part for author understanding thoroughly before going to final step of developing Thaituan's Corp.'s marketing strategy ees \ At first, the author has analyzed external environment, focused on textile garment industry in Vietnam market as well as forecasting the consumption demand, to find out how the retail fashion business is growing, understanding potential market and marketing activities of textile garment in Vietnam market Finally, the main part of the study has analyzed Thaituan's SWOT matrix which is helpful in evaluating the environment factors and internal situation facing a project, j then suggested proposal marketing strategy based on marketing mix in order to achieve et, | marketing objectives of fashion apparel business If marketing strategyare properly implemented, author believes that Thaituans marketing activity will be improved significantly as well as increase the market share in domestic market and gain more profit for company Nguyen Thi Ngoc Truong February 2012 he 1.1 Introduction: Thaituan Group Corporation was established in 1993, is one of the leading ‘textile garment enterprise in Vietnam that specializes in manufacturing and trading varieties of polyester fashion fabric such as Jacquard fabric, Satin fabric, stretch fabric etc.; and produce fashion apparel only use for ladies Company has its owned position in the market and in the mind of customers Company has totally factories with over 1,600 workers and its head office is located in Ho Chi Minh City , Sinee establishment, Thaituan has focused on researching and producing fancy jacquard fabric, so until now, company has satisfied the demand of fabric over 15 million meters _ of high and stable quality per year, Vietnamese ladies They specializing in producing are consumed widely in domestic different regions all over the world "Ao dai" uniform of market and exported to | Taking advantages of Thaituan’s brand in local market as well as which is considered as "a nice piece of cake of many people's desire", since end of 2008, Thaituan developed new production line which is woman fashion apparel in local market For the distribution system, Thai Tuan has both indirect sales with wholesales system and direct sales with own retail showroom system in Ho Chi Minh City The fabric wholesales system was firstly established in 1993 and the direct retail showroom system was established in 1999, 1.2 Rationale: In current situation of fabric and garment business in Vietnam, marketing strategy plays an important role in success of company as well as its business efficiency In fact, who has a strong and effective marketing strategy those can access and penetrate the market in order to look for the growth opportunities on our target customer? Otherwise, it may be lost the control and may not develop well enough The current brand of Thaituan’s textile has now very famous in domestic while apparel sector has seldom recognized apparel sub-brands well In current situation, many te significant Vietnam consumers not know or have about doubts capacities of manufacturing the apparel product ve this target, right from now, as well as business profit in apparel In order to achie t the opportunities that could company need to develop marketing strategies to exploi as changes to market factors include new brand or adapted products, services as well can establish and develop a strong “With appropriate marketing strategies, company then the optimal marketing mix to and effective marketing system in order to determine attain company goals sonnet L the revenue market share, maximize The problem for Thaituan is how to increase the ~ - AXNNG 1.3 Problem statement: has Company a strong brand name and high production capacity | in manufacturing | profit since establishment until, textile fabric field, gaining high market share and stable with very low speed and it is while the apparel sector, market share has increased er area as expectation Many ’ difficult for company to launch new products to all consum know that Thaituan produce areas, even in big cities in Vietnam, customer not customer’s demand at such apparel and some sub-brand of company can not reach the | , area Secondly, doing business of apparel can not help company to maximize the sales | turnover and its profit marketing Therefore, this raises a requirement to set up an appropriate strategy for s, including a mixture of apparel to enhance the competitiveness of the apparel product ant role in occupying and solutions marketing for these products which play an import exploiting domestic market potential of the company h: So the following questions must be answered through this researc e l? Whatare the problems of marketing system of Thaituan’s appare e effect to Thaituan’s What are the major external and internal factors that may e strategies? business in formulating and implementing of its marketing Thaituan apparel to achieve How to develop an effective marketing strategy for company objective? | + As the above reasons, I’d like to choose the theme “MARKETING WOMAN 1.4 STRATEGY FOR APPAREL - THAI TUAN CASE” for my master's final project Research objectives: The objectives of my research project to summarize what is to be achieved by my study and closely related to research problem such as: e To understand the current marketing , strengths and weakness To © analyze apparel and find out its system of Thaituan the external factors and internal factors that influence to Thaituan’s business And based on these factors, find out the opportunities and threat that effect to company’s business e To develop the marketing strategies for Thaituan apparel which focus on developing and recommend on the implementation of selected strategy 1.5 Scope and Limitation of Research: This study only focus on marketing system of textile garment firm which have main products including fabric and apparel The research relates to the development of the marketing strategies which mainly focus on products, markets and customers The most consumers of company’s apparel product are in the South of Vietnam with the consumption about 70% of total sales of company so all major customer surveys needed in this research are plan to conduct in Ho Chi Minh, Can Tho, Dong Nai city 1.6 Research approach and methodology: This is an exploratory research and the author try to analyze the external factors and internal factors that influence to business system in order to find out the opportunities and threats that effect to company’s marketing strategy With all these, the qualitative approach is thé suitable method The qualitative research is used to identify current situation of Thaituan business system, to identify the external and internal such factors as business environment, : customers, competitors, intermediaries, product, and promotion activities After understanding the significant factors, then the quantitative applied in order to measure and rate the important of that factor research will be ... has of Thaituan Group Corporation in Vietnam market examined the current situation of Thaituan Corp and focused on the marketing strategy for fashion apparel for woman of company Then, the marketing. .. marketing Thaituan apparel to achieve How to develop an effective marketing strategy for company objective? | + As the above reasons, I’d like to choose the theme ? ?MARKETING WOMAN 1.4 STRATEGY FOR APPAREL. .. group of age Source: Thaituan marketing dept Figures 12 - Customer Size of age group Source: Thaituan marketing dept Figures 13 - Percentage of apparel attributes Source: Thaituan marketing dept (1995-2015)