CHAPTER II: SITUATION OF MARKETING-MIX ACTIVITIES AT TAN
2.2. The marketing mix of Tan Hung Trading Co., Ltd
2.2.1. Marketing activities of Tan Hung Trading Co., Ltd
Achieving these achievements is due to the Company having a sound business strategy, clear and feasible objectives in investment and business together with the organizational structure of scientific management, focus group Marketing activities, which focus on activities such as:
Marketing Plan Development: Annually, along with the development of a joint Business Plan in which the business plan and marketing plan are paid special attention. The plan specifies: programs to be implemented in the year; resources for marketing activities (including human resources, budget ...); the estimated time of each program; the geographical areas, the priority market ...
2.2.1.1. Organizing marketing activities of the Company
Market exploitation: The company has concentrated on exploiting the market of Lao Cai city, which is populated with the highest average income of the province. The company has organized distribution channels through retail stores, invested in building furniture supermarkets and from 2013 to put supermarkets Duc Huy Plaza into operation. By the end of 2016, the company will continue to invest in Duc Huy Hotel with Duc Huy Supermarket to be a hotel and supermarket complex in Bac Cuong Ward, Lao Cai City. ). The operation of the supermarket has helped the company gain a large market share in the retail and entertainment market of Lao Cai. In the survey, in Cai Vo town, there are now three supermarkets with the same size (excluding small trade centers and convenience stores).
About product policy: Product policy is one of the most important policies implemented by the Company. The exploitation of new products, famous brand name is the top priority at Tan Hung Trading Co., Ltd. The company is a partner of the famous electronics companies such as Sony, Sap; panasonic; sanyo; LG ... Duc Huy supermarket always have the latest products of famous electronics companies.
Other commodities are also very rich with high quality, to meet the tastes of consumers.
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About the policy of promotional policy, price policy: Every year on the occasion of the company establishment, Duc Huy supermarkets come into operation, the day Noen, New Year, New Year ... Company. Regularly organize promotional campaigns, curators, gifts, lucky draws ... to thank customers. Through this, a large number of loyal customers and open customer lists as a solid basis for increased sales of the company.
Advertising and promotion activities: Along with advertising on the media, through the Internet, the company regularly organizes cultural events programs:
launching new products; Company celebrations, supermarkets with the participation of singers, celebrities (each year held at least one event with the cost of hundreds of million).
2.2.1.2. Budget for marketing activities
Budgeting for marketing plays an important role in marketing strategy, which is the decisive factor for marketing success. Therefore, the Company has spent a considerable amount of money on this activity every year. Data in the budget table for marketing activities of the Company for the period 2015-2017 below
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Tan Hung Trading Co., Ltd
TABLE 3: REPORT ON EXPENSES FOR MARKETING AND SALES ACTIVITIES
Period 2015-2017 Currentcy unit: Vietnamese Dong
TT Khoản mục chi phí Marketing Business Total
I Business expenses in 2015
1 workers cost 235.786.475 625.780.945
861.567.42 0 2 Printing Document, profile, leaflet cost
180.785.649 267.845.746
448.631.39 5 3 Advertising costs 446.531.743 -
446.531.74 3
2.1 Advertise on Media 265.785.468 265.785.468
2.2 Advertise on the Web
2.3 Other advertising 180.746.275 180.746.275
4 Cost of organizing events, seminars
467.850.254 274.846.855
742.697.10 9
5 Mobile expenses 275.846.254 275.846.254
6 Promotion, gift, discount, reward 308.745.264 308.745.264
7 Other cost 237.786.479 264.979.448 502.765.927
Total of 2015 1.877.485.864 1.709.299.248 3.586.785.112 II Business expenses in 2016
1 workers cost 525.768.745 692.784.495 1.218.553.240
2 Printing Document, profile, leaflet cost 386.785.247 298.275.486 685.060.733 3 Advertising costs 718.851.995 - 718.851.995
2.1 Advertise on Media 365.845.274 365.845.274
2.2 Advertise on the Web 185.748.246 185.748.246
2.3 Other advertising 167.258.475 167.258.475
4 Cost of organizing events, seminars 527.845.274 189.247.654 717.092.928
5 Mobile expenses 679.845.274 679.845.274
6 Promotion, gift, discount, reward 452.674.875 452.674.875
7 Other cost 385.356.564 288.746.254 674.102.818
Total of 2016 3.677.127.974 1.469.053.889 5.146.181.863 III Business expenses in 2017
1 workers cost 715.846.745 886.278.442 1.602.125.187
2 Printing Document, profile, leaflet cost 587.486.275 346.875.486 934.361.761 3 Advertising costs 1.746.177.185 - 1.746.177.185
2.1 Advertise on Media 1.076.845.284 1.076.845.284
2.2 Advertise on the Web 247.846.254 247.846.254
2.3 Other advertising 421.485.647 421.485.647
4 Cost of organizing events, seminars 886.245.742 346.874.254 1.233.119.996
5 Mobile expenses 725.487.645 468.745.284 1.194.232.929
6 Promotion, gift, discount, reward 2.125.478.627 338.745.248 2.464.223.875
7 Other cost 1.060.791.608 325.476.874 1.386.268.482
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Total of 2017 7.847.513.827 2.712.995.588
10.560.509.41 5
Looking at the data table, we can see that the numbers are increasing every year, but what is remarkable is the cost ratio between marketing and business, which can be drawn in the chart below:
Chart 2: The rate of marketing cost and business cost of Tan Hung in the period 2015-2017
2 0 1 5 2 0 1 6 2 0 1 7
1877485864
3677127974
7847513827 1709299248
1469053889
2712995588
The rate of marketi ng cost and business cost of Tan Hung in the period 2015-2017
Marketing Business
Unit: Vietnam Dong
Looking at the chart, it is easy to see that the investment cost of marketing has increased significantly compared to investment in Tan Hung's business period 2015- 2017. The reason for this is not difficult, because in the days of information technology development, Marketing is the key to the composition of the business of a business. And the result of Tan Hung's investment in marketing is a jump in sales in 2017 (listed in the revenue report in section 2.1.3.2).
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In the process of organization, Tan Hung company is not rigid, but often research effectively propose solutions to adjust and response, in addition to marketing management in which effective management and cost special attention.
Along with the specific job assignment by Job disliption, there is a sharing of information between the various components that have created the first stage of performance and effectiveness.
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Marketing Director
Marketing Amind
Marketing Designer
Sales Deparment
n 1 2
2.2.1.3.The operating mechanism of Marketing Department
Diagram 5: Marketing Organization System of Tan Hung
Producs manager: (1) - Manager of Consumer Electronics (2) - Management of electrical goods
(n) - Management of the automobile and motorbike industry Marketing Disigner: (1) General programming design
(2) Interior design (construction, architecture) Marketing Director: Direct Marketing and Sales Dept. Manager
Together with the Board of Directors, the Company has set the overall strategic objectives for investment, production and business development in the long and medium term.
Decision-making on strategy level, general goal orientation for MA, Resolve issues arising during the operation
Balance resources, balance the company's overall development investment plan, based on departmental data that provides planning, presentation, and protection of the Marketing Plan and Business Plan before Director Boad.
Data manipulation during the planning period, control and control activities to regulate operations MA and business
Marketing Department is divided into 3 groups:
1. Products manager: Depending on the nature and scope and scale of the industry, each product line will have one to two people: For example, Audiovisual and Interior (2 ng). people)
Functions and duties: Responsible for market research for the industries in which they are in charge, including competitors, equivalent items, in-depth research
2 1
Products Manager
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of product specifications to find out the strengths and weaknesses of Each of the SP from that proposed marketing plan for the industry
Proposing to exploit new products and brand names after having a full evaluation of potential as well as efficiency and market demand for products.
To propose price policies for each type of goods under their management Suggest the presentation at the showroom as well as recommend sales channels for each product line.
Research and propose sales policies, promotions, events ... (in Promotion plan) Coordinate with the Disigner to design the program and implement the approved program
2. Marketing Admind:
Assisting. assisted by Director to synthesize data, monitor marketing activities, evaluate the performance of plans and programs in each reporting period.
Collaborate with other departments including the Business Department to implement the MA program
3. MA Designer:
A collection of expert design and marketing director.
After receiving the requirements, purpose, scope, scale and other resources have been approved from Product Manager, the Designer must have the task of planning, implementation plan
For example, to launch the September 2 National Day Promotion program:
Designer design leaflet printing, leaflet planning, media content planning mass media, banner advertising, flag ...
With the increasing trend of interior decoration industry, together with the development of society, customers are more and more inclined to have unique designs of decoration as well as furniture for the interior. House.
The mission of the group is to satisfy the needs of interior decorating customers in line with their housing and income conditions, allowing them to choose the form, material for the interior.
Although new in Lao Cai, Tan Hung Company has boldly organized the interior designer and a team of interior decorators. Quickly promote the strength of the segment of high-end customers and customers own high-end apartment.
A review of revenue structure research found that revenue trends increased 124.6% in 2017 compared to 2016, of which retail furniture sales rose 170.3%. This is a testament to the initial success of the interior furniture industry because retailers are customers through the design department of Tan Hung offers furniture selection.
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In other words, MA Dept's interior design department fully embodies the marketing tactics. From product design, price selection, delivery time, logistics distribution in logistics (Ditribution cannel) to cross -sellings (Cross selling effects - Through the construction of the impact to the owner of the interior design project, Pulling Customer (attracting customers) in business art, also very well deployed the technique of pronotion (discount, discount, commission, gift donate…)
Overall, the management model of Tan Hung Co., Ltd has brought many encouraging results, especially in terms of revenue, and formed the Tan Hung brand in the market not only for consumers but also for some huge giants like Samsung, Sony ...
Diagram 4: Synthesis of Marketing Proces
s