CHAPTER II: SITUATION OF MARKETING-MIX ACTIVITIES AT TAN
2.2. The marketing mix of Tan Hung Trading Co., Ltd
2.2.2. Marketing-mix activities at Tan Hung Trading Co., Ltd and achievements
For a business in the commercial sector (except furniture) there are not many options for surveying and designing products that fit the tastes and integrating modern technology to attract consumer behavior. of cutomer. The Marketing Department of Tan Hung still has the long-term orientation of Consumer Products.
Develop an Action Plan
Implement the Plan
Evaluate performance over time
Review, adjust and supplement the plan
Review experience Determine the target
Market research Balance resources Use existing data CS Strategic Orientation
MA
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Previously, the proportion of non-branded products on the revenue was relatively high and the proportion of products of big brands such as Samsung and Sonny also accounted for a modest growth. year, Tan Hung Company has the right to choose reputable suppliers with high technology, aesthetic and quality products in the best compared to the same products on the market.
2015 2016 2017 0
10 20 30 40 50 60 70 80 90
Sonny Samsung LG Other Pro
Chart 3: Chart of electronic products of Tan Hung in period 2015-2017 Thanks to products from well-known manufacturers not only in Vietnam but also famous in the world of technology and electronic products such as Samsung, Sonny, LG, Tosiba ... Supermarket is the first choice when behavior Consumption related to electrical appliances, consumer electronics ...
Through the selection of products not only help Tan Hung has high turnover and also help the brand of Tan Hung Supermarket as well as the famous Tan Hung Company on the LC market and help Tan Hung reduce the inventory increase rapidly. Rotation of capital due to stable supplier and prestige. Coming to Tan Hung, consumers are assured of quality because they know the origin of goods and manufacturers are very reputable.
In addition to the direct benefits of consuming reputable suppliers, Tan Hung Company also learns and benefits from the MA programs of these caves and makes other products such as furniture, car car (also launched in 2018) also benefit from reputation as well as Tan Hung brand.
2.2.2.2. Price policy
The company through sales policy is built on long-term strategy and objectives to dominate the market, through annual business plans to adjust the target.
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The selling price is specified for each type of customer, wholesale or retail and according to the quantity of goods purchased
In supermarkets and warehouses there are about 500-600 products divided into groups, although according to the actual situation of consumption, inventories, Products Manager will recommend Director MA to change the price of sales purpose Release of inventory, while also using the price adjustment tool to create competitive edge.
Recognizing the importance of pricing policy, Tan Hung has taken a strategic position in the market, maximizing the volume of supply and creating a reputation for new products. Potential for profitability and high turnover (furniture, automotive business ...).
For that reason, Tan Hung's pricing policy is quite attractive to consumers and wholesale customers, especially during the year-end shopping season. In addition to promotional policies, price policies are also an element of enhancement. revenue.
(Appendix of turnover by product group)
In Lao Cai, direct competition with Tan Hung is the Bac Do supermarket. In each product line, there are certain differences between the commodity segments and Tan Hung's products, but in the end, we can clearly see the softness of Tan Hung's pricing policy in the table below:
TABLE 4: COMPARISON OF THE EQUIVALENT PRICE OF COMPLEX ITEMS BETWEEN TAN HUNG AND THE SUPERMARKET BAC DO Average price of
product groups
Tan Hung Trading Company Limited
Bac Do Supermarket
Furniture 2.175.916 1.972.000
Consumer electronics 9.856.200 10.662.384
Home electric 10.272.190 12.003.451
* Unit: Vietnamese dong
Looking at the table, it can be seen that among the three groups of key products, only Tan Hung furniture group is more expensive than Bac Do supermarkets, while the remaining two groups are soft more. It can be clearly seen that Tan Hung's pricing policy is to focus on the sale of household electronics and consumer electronics products at low prices, focusing on boosting wholesale because these are two groups of commodity prices. Wholesalers earn very high profits, while furniture prices are higher than competitors, but the form of sales is mainly retail, so still earned a certain amount of profit. The results of each specific item are shown in the table below
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2.2.2.3. Distribution policy
Distribution channel is the important factor that the connection between the seller is Tan Hung and the enduser can be directly through Tan Hung Supermarket, also indirectly through agents in the district in Lao Cai province.
Previously, Tan Hung was only based on the dealer system to distribute goods.
The management and use of the distribution system is part of the MA, which is difficult to cope with due to the customs, business culture and behavior of the intermediary.
Currently, after the Tan Hung supermarket has been put into operation, MA has redefined the strategy of choosing the distribution channel for supermarkets after the new agent.
Diagram 6: Distribution structure of Tan Hung at present
With this distribution system, Tan Hung's Marketing work becomes more convenient as marketing forms are available through intermediaries such as supermarkets and distributors. Distributors of Tan Hung are present mostly in small districts and towns of Lao Cai province. However, Tan Hung needs to focus more on communication channels as well as distributors in other localities in order to expand its market.In the supermarket business logistics issues from warehouses to consumers and dealers are also important, arranging coordination, installation and transportation are assigned to the warehouse is well trained.
Tan Hung
Supermar ket
Distributor
Wholesale
Retail stores
Customer
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In fact, the priority of direct distribution channels through supermarkets is the right solution for business units such as Tan Hung, resulting in sales increasing continuously over the years, shifting the proportion from wholesale Gradually increase to retail at Supermarket.
2.2.2.4. Promotion policy
The main forms of promotion of Tan Hung:
+Printing Document, profile, leaflet +Advertise on Media, Internet..
+Organizing events, seminars +Promotion, gift, discount, reward
With data on the cost of Promotion Maketing each year, Tan's MA has invested heavily in advertising and marketing.
Advertising: Tan Hung selects a wide range of ads suitable for regional culture, focusing, from advertising on television (media) to the web, according to the Web and tables and banners.
The company also focuses on organizing customer conferences, scientific seminars for business purposes, organizing events associated with the time consuming products such as 1.5, 2.9 and the last occasion. year. The program is designed professionally and targeted, customer oriented.
Besides organizing the event, the company is also very interested in the program organized by the mobile fair, partly due to mountainous terrain only residential population in the district town and the market session. Through this kind of fair, Tan Hung has the conditions to advertise the image of the company while still providing effective support to the Agent.
Promotion, can not be separated from promotions, discounts, gifts or register membership card to mark points for customers to the relationship between long- term sustainable buyers with customers. .
In general, communication activities in Tan Hung are very effective through internet communication due to the explosive development of social networking channels. Campaigns for gift giving or event management have not really been effective because of the way the organization is not well organized, the event content is not really attractive so it has not attracted the attention of customers.
2.2.2.5. Human resource manage
Tan Hung is very specialized in the field of MA, in the selection process Tan Hung selected only professional candidates in each field, each position has been described. In the process of working, Tan Hung is also very interested in working
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for MA staff to update new knowledge, new technology and integrate with business culture of Tan Hung.
All MA staff have a bachelor's degree in management, MA, interior design, graphic design ...
Thanks to the professional MA, marketing research, planning and implementation of the MA plan is relatively close to reality, which is the basis for leading the right decision on the business plan. Adding to that in the creative process is an indispensable part of the MA team
In conclusion: Confirming the brand name of Tan Hung in the electronics retail market in Lao Cai is the initial success of the establishment to invest in the next projects such as hotels, restaurants, car business machine.
This is partly due to the right MA strategy, the right target segmentation and customers, the orientation is sustainable in the implementation process, but besides the success is not missing the face Limited impact on revenue and profit of the Company
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