CHAPTER 2: CURRENT STATUS OF MARKETING STRATEGY OF THE
2.4 CURRENT MARKETING STRATEGY OF COMPANY
Currently, due to the lack of marketing department, the marketing team is just one part of the sales department. This is a great disadvantage when trying to implement a policy or a marketing strategy. Because there is no marketing department, research and market analysis are not concerned properly, just do it simple and spontaneous when a new product entered to market or defective.
Marketing activities of the company are organized as follows: The market research method of the company is simple, based on the annual statistics to make speculation.
Therefore, the information collected is mostly limited to the basic information of the market, the economic, legal, cultural and customary factors. The information on competitors is very little. Therefore, the forecast data is not accurate and not close to reality. However, to focus on market research, there must be a huge source of budget.
Meanwhile, the company's finances are limited. Therefore, the marketing department must have a policy and annual plan to suit the current conditions of the company.
At present, the company uses the following methods to collect information: Send surveys and questionnaires to consumers; Frequently updated information from books and media; Combine the information of the marketing trips of the marketing department.
Even gathering and storing information collected is sometimes not done by the marketing staff but by the staff of the sales department or other departments. This is not professional work and not highly specialized, affecting the marketing strategy as well as the success of the company.
2.4.2 Product strategy
2.4.2.1 Branding and category strategy.
Although only concentrate to produce and do business mainly two types of products that are detergent and dishwashing liquid, But the products of Duc Giang Detergent and Chemicals Corporation are diversified in types to meet the different needs of consumers in all market segments that the company has chosen in country. The company's products are available in the domestic market:
Duc Giang powder and liquid Detergent
Will Powder and Liquid Detergent
Soffy powder and liquid detergent
Will dishwashing liquid
Duc Giang dishwashing liquid
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Beside the two above products, Duc Giang Detergent and Chemical Joint Stock Company also manufactures and sells other products in the field of detergent such as:
Will fabric softener
Will floor cleaning liquid
Duc Giang fabric softener
Javen bleach
Will toilet cleaner
Cassia Shower Soap 2.4.2.2 New product strategy
Although the production and business must always run under the big corporations in the field of cleaner such as Unilever and P&G, but Duc Giang company always try to invest in new products to create competitive driving force and improve the prestige for the company. In 2017, the company successfully researched the fabric softener Will and soap Cassia to bring to the domestic market.
However, the level of advertising investment has not really been strong, not creating competitive advantage over the equivalent product line in the market.
2.4.2.3 Packaging strategy
Packeging is an important marketing tool for the company, so the company always focuses on design as well as packaging. In recent years, the packaging and labeling of the company's products has changed a lot and is flexible. Currently the company is hiring design agents for the products brand to fit the tastes as well as the needs of consumers.
Currently the company also invested in packaging machines, forming closed lines in the production process.
The packaging is also ordered stably with good quality, ensure the product when shipping.
2.4.3 Price strategy
Price plays a decisive role in purchasing this or other goods for consumers. For a company, the price is decisive when it competes in the marketplace, which is a big influence on the company's existence because it directly affects sales and profits.
From such important factors, the valuation of products at Duc Giang Detergent Joint Stock Company is usually set by the management of the company. Because finances are limited, the company's pricing is often based on costs. However, in order to survive and develop its products in the market, the pricing is based on the supply and demand rules and competitive factors in the market.
62 2.4.3.1 Cost-based pricing strategy.
To evaluate the price of a product, normally related departments will calculate the costs of materials and costs in the production process, plus promotion and advertising costs to produce the cost of the product. Based on this cost plus the target profit of the board will determine the price for a product. It is known that the target profit that the board made is usually about 10% of the sale price.
The evaluation based on costs of Duc Giang Detergent and Chemicals Joint Stock Company is difficult due to the fluctuation of raw material prices as well as the prices of some of the same products on the market.
2.4.3.2 Pricing strategy based on market demand, competitive factors
To sell products, the price of the company's products also often refer to the price of some products of the same type on the market. However, most of the products has selling price lower than same products from Unilever or P & G.
Due to the characteristics of detergents, the rule of supply and demand on the market does not affect the pricing of products of companies. Because in this industry is always bigger than demand.
2.4.4 Place strategy
The distribution network of Duc Giang Detergent and Chemicals Corporation has existed and developed for many years. Due to the special nature of the chemical industry, while focusing on developing in the North, the distribution channel of the company is quite simple. Distribution channels that the company often use and operate quite successfully, is also the main distribution channel of the company in the domestic market. That is:
2.4.4.1 Three level distribution channel.
According to the regulations of the company, in provinces only one distributor, if any province has high annual sales, there will be two or three distributors.
The company's products will be shipped to the provinces and delivered to distributors, so that the products can be sold to retailers (department stores, markets ...) but can be sold to wholesalers (dealer or smaller distributor) and finally to the consumer.
Figure 6: Three level distribution channel The company also uses the distribution channel as below:
2.4.4.2 One level distribution channel
Duc Giang Distributor Wholesaler Retailer Consumer
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The retailers here are the supermarkets in the city. They will take the goods directly from the company and then sell the product to consumers through their retail channels.
2.4.5 Promotion strategy
In order to implement this strategy, Duc Giang detergent and Chemical Corporation has also used four main tools in this approach: Advertisement; Sales Promotion; Personal Selling; PR.
2.4.5.1 Advertising strategy.
From the beginning, the company's products are positioning in the rural and small urban markets, most of the advertising of the product is aimed at these markets. The forms of advertising that the company usually uses are advertising on television, radio and sometimes in newspapers, magazines. In addition, when launching new products, the company still forms a separate advertising strategy for the product to engage consumers to keep an eye on the products.
2.4.5.2 Sales promotion strategy.
Companies often use push strategies to sell the products, so most promotions focus solely on the wholesalers to push the product through the distribution center. However, the company still uses promotional methods for consumers on the occasion of introducing a new product, or a certain season of the year.
2.4.5.3 Personal selling strategy
In addition to the distribution channel as mentioned above, the company also uses sales staffs to offer products, introduce new products or launch new products.
Based on this personal selling the company has achieved its goal:
Explore new customers
Express information about the company's products and services Selling
Technical assistance
Research and collect information about the market
Evaluate the customer characteristics and coordinate the goods.
The sales staff have been trained to understand the product, the process of offering…
2.4.5.4 PR strategy
Sometimes the company also organizes a group of employees go to market for PR as well as washing for the consumer to see the quality of their products. In addition, the
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company is also actively participating in domestic trade fairs to introduce and display its products. Participating in such fairs also contributes actively to introduce the products to consumers in large cities. At the same time, it helps customers find the company more easily.
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