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The writing of this thesis has been made possible because of the guidance, encouragement, good will and practical help of a number of people and organization. I am particularly indebted to my supervisor, Tran Van Hung, MBA, lecturer of the National Economic University, for his valuable guidance, criticism, comments, corrections, and for his kindly encouragement during the development of this study. His suggestions and recommendations were as much appreciated as his endurance, patience and genuine interest in this thesis I would like to express my deep gratitude to all my teachers at Phuong Dong University, who have been helping me for the past four years. I am grateful to managers, officers and staff at Cau Duong Timber Factory, where I carried out practice, for giving me time and great co-operation. I would also like to thank the respondents, officers and staff from various companies that I visited for their time, patience and cheerful acceptance. Most of all, my appreciation and gratitude is due to my parents, my brother and my friends, who encouraged me in many ways to fulfill this study.
Tran Thi Phuong Mai - 345B Ministry of education and training Phuong dong private university Business department final report Title: market research on Plywood & notepaper For cau duong factory By Tran Thi Phuong Mai Supervisor: Tran Van Hung, MBA In fulfillment of the BBA degree May - 2000 Phuong dong university Title: market research on plywood and paper of cau duong timber factory Tran Thi Phuong Mai - 345B Author : Tran Thi Phuong Mai Student number : 345208 Faculty : business department Research company : cau duong timber factory Supervisor : Tran Van Hung, MBA Date : may 2000 Tran Thi Phuong Mai - 345B Table of content ACKNOWLEDGEMENTS Executive Summary .1 Chapter I: Introduction I Establishment and Development History of Cau Duong factory Establishment Organization Framework Characteristic of Base line of Business .6 Asset and Equity .8 II The Important of This Theme 10 Chapter ii: literature review 12 I Overview .12 II Some Concepts Related to the Research 12 Term “Market” .12 1.1 Definition .12 1.2 Functions of market .15 Marketing concept 16 2.1 Definition .16 2.2 The Role of Marketing in Practice of a Firm 17 Marketing Research .18 3.1 Definition .18 3.2 The Duty of Marketing Research 20 III Economic Environment .20 Environment of the economy 20 Industry Structure 22 2.1 Plywood Production .22 2.2 Note-paper Procession 24 Summary 26 Chapter iii: research methodology 27 Chapter iv: results / findings .30 I Results 30 Business Activity Analysis 30 Competition Situation 32 2.1 Domestic competitors 32 2.2 Foreign rivals 33 2.3 Position of Cau Duong Factory in the Market 35 Potential Market 37 3.1 Note-paper Production 37 3.2 Market of Plywood for Construction 38 Political and Legal Factors 40 Demographic factors .41 SWOT Analysis 42 II Findings 44 Real State of Marketing Research in Cau Duong Factory 44 Elements Affect on Selling-price of Cau Duong Factory .46 i Tran Thi Phuong Mai - 345B Summary 47 Chapter v: limitations 49 Chapter VI: conclusions and recommendations 50 I Conclusions 50 II recommendations 51 Improving Awareness of the Factory’s Staff about Marketing .51 1.1 Solution to Consolidate and Expand the Market 52 1.2 Marketing Research Activity of Cau Duong Factory in short term 53 1.2.1 Establishing a Temporary Marketing Staff 53 1.2.2 Entrusting all Department with Task of doing Market Research 53 in near future Cau Duong Factory should set up a Marketing Staff .56 Solution to Improve Product Quality and Reduce Price 58 3.1 Improving Quality 58 3.2 Improving Price Policy 59 Appendix 1: questionnaire .61 Appendix 2: charts .67 Appendix 3: bibliography 68 Acknowledgements The writing of this thesis has been made possible because of the guidance, encouragement, good will and practical help of a number of people and organization I am particularly indebted to my supervisor, Tran Van Hung, MBA, lecturer of the National Economic University, for his valuable guidance, criticism, comments, corrections, and for his kindly encouragement during the development of this study His suggestions and recommendations were as much appreciated as his endurance, patience and genuine interest in this thesis I would like to express my deep gratitude to all my teachers at Phuong Dong University, who have been helping me for the past four years ii Tran Thi Phuong Mai - 345B I am grateful to managers, officers and staff at Cau Duong Timber Factory, where I carried out practice, for giving me time and great co-operation I would also like to thank the respondents, officers and staff from various companies that I visited for their time, patience and cheerful acceptance Most of all, my appreciation and gratitude is due to my parents, my brother and my friends, who encouraged me in many ways to fulfill this study supervisor’s evaluation iii Tran Thi Phuong Mai - 345B recommentator’s evaluation iv Tran Thi Phuong Mai - 345B Evaluation of probation office v Tran Thi Phuong Mai - 345B Executive Summary In Vietnam today, the Government is implementing multi - factor economy, including joint - ventures, foreign firms, State-owned enterprises In which, State-owned enterprises are considered as leading element of the development Thus, the most important thing for them is economic efficient, competitive ability and position in the market Cau Duong Timber Factory was built in 1956 with the support of former Socialist Republic of Czechoslovak It was one of the earliest State-owned enterprises in Vietnam industry; aims to rebuilt the country after a long-lasting war It has the task of synthetic timber procession with some main products such as note - papers, furnitures and plywood Since November 1997, It has became a member of Bai Bang Paper CompanyVietnamese Paper Corporation At present, major market of Cau Duong Factory in North area and Ho Chi Minh City In such narrowed market, it is necessary for this factory to implement market research in order to expand its market in the future This report is the result of a market studying by a student from Phuong Dong University with the purpose of gene Cau Duong timber factory up on the customers, the market and competitive real state of affairs Some main objectives: Providing general market assessment including economic real situation, industry review and the competitive environment Researching on business environment and an outlook of the actual market in order to analyze decisive factor of the factory’s development Identifying business opportunities as well as developmental competence, menace in the future Examining the influence of the outside environment: political, legislation, culture, consuming habit, etc Tran Thi Phuong Mai - 345B To achieve the above objectives, the project included both secondary and primary research The primary data were conducted from questionnaires and directed interview in Hanoi These were focusing on such issues as present market, competitors, and customers, etc Secondary data were collected base on various information sources, magazines and other references The major findings are: In some recent years, business environment of Cau Duong factory has been enlarged resulting from the urbanization speed with a strong demand for wooden products, especially for plywood Since 1996, as the urbanization rate of Hanoi has been speeded up with the increase of 26%, many construction projects have been being taken place by foreign constructors or domestic construction companies This demand has been intensified by the significant foreign directed investment capital (FDI), overseas development assistance (ODA) and money transmission from over seas Vietnamese The main reason for the rise in urbanization velocity came from out-of-date and bad condition of Vietnam’s infrastructure Open-door policy has been making business opportunities for foreign firms in Vietnam They have more competitive advantages than local enterprises in technology, equipment, capital Therefore, their products has more chances to secure large part of the market For example, 1996, In plywood market only, imported products accounted for 42% because they meet the demand of foreign constructors in big contracts of building; Vietnamese firms seems to be short of initiative in their own market Asian countries included Malaysia, Indonesia were the main suppliers in Vietnam plywood market with the total supplying index of 35000 tons in 1999 However, being affected by Asia financial and monetary crisis in July 1997, volume of imported product from these countries was reduced to 20% Tran Thi Phuong Mai - 345B In the field of paper production, Vietnam is a large market with the total annual demand of 75 million tons Meanwhile, the total production capacity of the Cau Duong factory and its parent company (Bai Bang Paper Company) only meets the social demand of 35% Private sector and other State-owned firms satisfied the rest demand of the Vietnam market Key recommendations to Cau Duong factory will be: Paying more attention in marketing programs, advertisement Attach special important to reform machinery, equipment and labor in marketing research Keeping good relationships with perennial customers and suppliers Attending trade fairs and exhibitions to seek for new partners Chapter I Introduction In order to better understand about Cau Duong factory, this chapter describes its some sketchy characteristics and a little information about the whole economic surroundings I - Establishment and development history of Cau Duong factory Establishment Cau Duong Timber Factory is a State - owned firm, which was put in action in July11th, 1959 and cut the inauguration band by Le Thanh Nghi, Industry Minister, belong directly to Industry bureau – Ministry of Industry It has the primary mission of processing wood, manufacturing wooden product in order to serve inland consuming and manufacturing plywood Becoming a member of Bai Bang Paper Company, Cau Duong factory has processing notepaper for its parent company since November 1997 ... demand of 75 million tons Meanwhile, the total production capacity of the Cau Duong factory and its parent company (Bai Bang Paper Company) only meets the social demand of 35% Private sector and. .. State of Marketing Research in Cau Duong Factory 44 Elements Affect on Selling-price of Cau Duong Factory .46 i Tran Thi Phuong Mai - 345B Summary 47 Chapter v: limitations ... the result of a market studying by a student from Phuong Dong University with the purpose of gene Cau Duong timber factory up on the customers, the market and competitive real state of affairs