CHAPTER II: Actual situation of communication marketing activities of TAME's VICHI cream products
2.2. The production and business situation of TAME
2.2.1. VICHI product introduction
VICHI folliculitis cream product set includes 1 activated charcoal soap and a bottle of VICHI folliculitis cream.
VICHI activated charcoal soap has the ability to remove dirt, sebum, bacteria accumulated for a long time on the surface of the skin, and at the same time, cleanses dead skin, helps to clear the skin surface thanks to the charcoal essential oil ingredients bamboo, Moso bamboo charcoal powder, grape seed oil...have a purifying and bactericidal effect on the skin; thereby, increasing the penetration of the special cream.
VICHI folliculitis cream with ingredients is Cajeput essential oil, turmeric essence has antibacterial, antiseptic, remove acne, pus, combined with gotu kola essence to cool and accelerate tissue recovery, regenerate damaged skin. Besides, with licorice essence in the ingredients will help reduce dark spots and scars and brighten inflamed skin.
Figure 1.2. Product image Vichi for folliculitis
(Source: https://tamegroup.vn/) 2.2.2. VICHI's business results in 2 years 2019-2020
Although the company has not been in operation for too long, the initial steps are still difficult to develop in the market, but with the potential of expertise, scale of service provision, business with high professionalism and prestige. The credibility of Tame Vietnam Co., Ltd. has increasingly affirmed its position. It can be said that the first successes are very remarkable, these are the stepping stones and the premise for future development.
Table 1.2. Number of orders of TAME over the years 2019, 2020
Products VICHI
Others
From the table above, we can see the Company's activities as follows:
- Order volume of VICHI in 2020 increased by 1000 orders, equivalent to 1.5% compared to 2019.
- The number of orders of others in 2020 increased by 200 orders, equivalent to 1.25% compared to 2019.
Entering the period of 2020, the Company's situation has many changes, the orders of products sold in general increased compared to 2019. Explaining the increase in product orders, in 2020 the Company proposed strategies to recruit more personnel, train existing employees with enthusiasm, and approach a large number of potential customers. Besides, many big promotions aim to attract customers with lower demand. In general, the number of orders in 2020 increased slightly compared to 2019, the company continued to grow.
Table 1.3. TAME's business performance over the years 2019, 2020
Expense Revenue Expense
Profit before tax Profit after tax
Based on the data table 1.3, it is clear that TAME Co., Ltd step into a more competitive market. Annual revenue has increased markedly, especially in the past year, which is considered a "jump" of the company in both revenue and profit. Looking at the data table, we can see that the company has been finding the right development strategy despite the initial difficulties and disadvantages from the competitive market.
The above are the achievements that the Company has achieved in the last 2 years, but the speed and limitations of the above results also need to be noticed in the business process that we need to pay attention to. Below is a chart comparing the company's business results based on three big criteria: revenue, expenses and profit before tax.
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35000 30000 25000 20000 15000 10000 5000 0
Year 2019 Year 2020
Revenue Expense Profit before tax
Chart 1.1. Chart comparing revenue, expenses and profit before tax From the chart 1.1 comparing revenue, costs and profits above, we can make some preliminary assessments of the company's business situation as follows:
The revenue in the past 2 years of TAME Vietnam Co., Ltd. has changed significantly. Almost profits over the past 2 years have grown and at the same time have made a great leap. Sales show that 2020 revenue is close to 1.5 times compared to 2019.
Thus, after 6 years of operation, Tame Vietnam Co., Ltd. has achieved quite good results when the revenue growth rate in 2020 compared to 2019 reached 67.6%. However, the cost of capital investment also increased high. In 2019 - when the company has been in operation for 3 years, with the revenue of VND 24,587,000,000 Tame Vietnam Co., Ltd. has taken initial successful steps in affirming its position. However,
Along with that level of revenue, expenses also accounted for 83% of total revenue (20,530,000,000 VND). The reason is that in 2019, the company focused on activities for advertising, marketing, expanding business network and salary for many new employees. The period from 2019 to 2020 is considered a
"jump" of the company with revenue growth of up to 67.6% and profit growth of up to 60.2%. If we consider 2017 as a milestone, in 2020 after 3 years of non- stop development, the company's profit growth rate has reached 147.8%.
This is a good sign for the right planning policies of the management apparatus. However, expenses during this period also increased the most and still accounted for a large proportion of total revenue, the Company's expenses increased from VND 20,530,000,000 in 2019 to VND 29,932,000,000 in 2020, equivalent to an increase up to 68.5%. The reason for the above increase is due to the increase in personnel, the increase in transportation costs and the high cost of personnel's equipment. In addition, in 2020, the company decided to expand its operation scale with the recruitment of more MKT personnel and departmental personnel to more groups. In addition, the Company has also implemented many policies to increase wages for employees with good achievements and increase bonuses during Tet holidays in order to encourage and improve the spiritual life of employees.