Marketing Strategy for welding and cutting products in Namviet company ACKNOWLEDGEMENT First and foremost, I would like to thank you all Nam Viet Trading and construction investment joint stock Company's leaders and staff for their help during my study field and writing this report Sincere thanks should be expressed to the lecturers and professors who have devoted their best in taking charge of the class of TATM6 - A1 Foreign Trade University The writer’s appreciation is to Ms Tran Thi Lan Huong (M.A) for her kind supervision and suggestions in preparation and writing the report Gratefulness is to the readers also, whose feedback will help much in improving the report Writer Dam Thi Le Minh Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company INTRODUCTION In a market economy, to succeed in business, enterprises must have effective marketing activities Distribution strategy emerged as an important marketing tool to help companies create and maintain long-term competitive advantage in the market It focused on system administration of the company’s marketing channels in the market for product consumption Start with the rhythm of development trend of the economy; hopefully bring the best products, perfect customer service After many open fields and new business, because growth and development of its future development and to create momentum for a new powerful company, joint stock company investment and commercial construction Nam Viet was born Namviet was separated from Cavico Constructions Main Power and Service joint stock Co, NamViet company is a new company established in July 24, 2009 and inherited the system from the client company Cavico CMS Viet Nam inherited from system customers and traditional CAVICOVN corporation is a company built bridges and tunnels already are experienced and very good relationships with other companies provided industrial equipment products with the world brand as Boring machine KoKen from Japan, Uniweld Corporation from Singapore, NamViet should have taken the starting point is the business of cement, steel and business industrial equipment imported from the those big companies Therefore I am an employee of the Commerce Department of the Nam Viet company has launched a business plan welding and cutting machine to contribute their small role in the development of the company so that I select subject Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company “Marketing Strategy for the welding and cutting products in Namviet company” for my field study report As started above, my report consists of (three) chapters, the first one is the company’s business operation background which provides general information of the company’s business operation to readers, the following one is a description of the Marketing Strategy for the welding and cutting products in Namviet, and the last one I give out some more main solutions to improve this Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company CHARTER 1: INTRODUCTION TO NAMVIET TRADING INVESTMENT & CONSTRUCTION JOINT STOCK COMPANY History and business field a History Namviet Trading and Construction Investment joint stock company is a new company established in July 24, 2009 and inherited the system from the customers of company Cavico CMS Telephone: (84) 379 323 03 Fax: (84) 379 323 02 Email: sales.navicon@gmail.com website: navicon.vn b Business field The main industries: Trafficking machinery, equipment and spare parts Building materials business Transportation Mining Broker dealers and auction Installation of machinery and industrial equipment Construction of public works and civil Business and production chemicals Customers information Now, Nam Viet is focusing on internal cavico customers system to sell cements, equipments as Namviet start to business and some key customers they are Lilama Corporation, Petro Shipyard Corporation Business products Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company a Cement Nam Viet Co is distributor for Dong Lam Cement Factory, Fico Cement Factory, Phuc Son Cement Factory b Industrial Equipments and machine NAVICON supplies solutions for profession welding, cutting field, equipments and spare parts for welding, cutting – main supplier of Uniweld Corporation in Vietnam – famous in over the World in welding, cutting area * Distribute products of famous brands as: * Metrode offers one of the largest ranges of alloyed welding consumables available from a single source The product range from those suitable for low alloy steels, through numerous diverse steels, to those matching the performance of nickel-based alloys * ESIWELD: supply welding, cutting machine with Europe Standard * ESIWELD Ceramic packing tape system is breakthrough in creative to application for welding field in order to fix fillet., allowing welding all positions and all kinds of welding easier very much * ESIWELD: All in one pickling Solution – Scale remove & pickling for Stainless Steel any high temperature scale and any adjacent low chromium layer of metal from the surface of stainless by chemical means * Tempil® Tempil incorporates state of the art * temperature indicator technology to develop a wide range of temperature measurement products * Dykem® Dalo® Marker industrial paint markers stand out for their distinctive, bold oil-based paint markings The stainless steel – ball valve action tip writes through oil, grease and underwater without losing legibility or brightness even in extreme weather conditions * UNIWELD - the professional is a basic heavy duty cutting outfit The ultimate for construction and industrial applications Addition accessories are required And more, NAVICON provide industrial machines, equipments – spare parts for drilling, ejecting…of KOKEN – Japan Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company Business Strategy High Quality Products Competitive Pricing Customer’s benefits Enthusiasm Services Prompt Delivery Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company Organizational chart Board of Management Director Vice Director Trading Department Administrati ve Department Vice Director Finance & Accounting Department Plan & Construction Department Task of Board of Management: Board of Management responsible for capital investment and direction and control of all activities of the company through its meetings and the annual report from the Director as well as periodic management Task of Director: Director operate directivity all activities of the company and response to the Board of management activities of the company's such as interest, lost, turnover, human resource and set up a new business plan Task of Vice Director: Vice Directors consult to Director and Board Manager to manage all marketing strategies for specific business directly, in charge of all works of related departments, implementing functions other specific tasks Task of Trading Department: implement all project business for welding and cutting products and cement business, implement import and export activities of industrial equipment The entire work of marketing, selling, customer service, Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company maintenance of industrial products Trading Manager give out policies such as selling, marketing and other policies, in charge directive selling for all of products by month, quarter and year Task of Administrative Department: in charge all issues of administrative human, labor salary policy, internal affairs, foreign affairs, equipment office Admin Manager consults human resources for Director and Board of Manager Task of Finance and Accounting Department: responsible for all issues of financial companies on projects such as a loan bank for new business projects, manages the activities of the company's revenue and expenditure, together with Trading Dept is responsible for collecting debts, making the works of tax and banking Construction and installation Department: is not formed, the border is Dept for future development of NamViet in three years Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company CHAPTER 2: MARKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS IN NAMVIET A MARKETING RESEARCH ENVIRONMENT I INVIRONMENTAL MACRO ECONOMY Environmental Government a Advantages Foreign investment has reached high levels, primarily focused on infrastructure, high capital disbursements, and use to buy equipment, high quality standard and high technique There are many opportunities to win more contracts and preferential tax ODA has committed more than $ billion for Vietnam in 2009 FDI, in 2008, about 11 -11.5 billion of capital was made According to the Ministry of Planning and Investment, the current registered capital of the period 2007-2008 is high due to latency so that these projects will be implement in 2009 and after years FDI capital flow in 2009 is not much but their quality will be better in and focus on the system infrastructure, major projects, using high technology and have ability to create competitive products (Excerpt from the book publisher's information release in June 2009) b Disadvantages we are still in the crisis period, inflation in 2009 is expected about 15% Market welding & cutting machine went into low-level saturation, factories and companies bought enough equipment for workshops Environmental industry a Advantages Through market research showed that although the welding machine market compete very hard but there are some gaps in the high-tech welding machines, laser cutting machine, CNC high-tech cutting machine, welding rods for cover welding , pressured welding , low carbon alloy has high hardness And advanced equipment protection In addition, this welding machine cutting equipment in the Field study report – Dam Thi Le Minh Marketing Strategy for welding and cutting products in Namviet company workshop in the period 2004-2005 was to be replaced entirely or replaced spare parts and this can be a good opportunity for the Company to enter the industry b Disadvantages - There have been many companies offer the same products, they have the depth of market experience, team sales engineer, consultant and engineer, warranty, maintenance and experienced - There are many firms specializing in welding, cutting industrial and welding accessories are in the market II MICRO ENVIRONMENT Internal power of Company a Advantages - There is support for close attention from the Board of Management, has potential financial - The new young, dynamic human resource and adapt easily - Having good relationships with large corporations such as attracting, oil and gas and shipbuilding to have the advantage of direct sales by the project that these companies have - Can be flexible in the marketing plan b Disadvantages Namviet has not got experience to business in this field, team engineer warranty, maintenance yet to get transferring technology, which is very important in this field - have to set new the whole system operating companies Researching competitors Competitors is divided into two regional markets: Ho Chi Minh: There are about 25 large companies including the direct production companies and trading companies more productive factory and assembly In there these five companies are strongest Field study report – Dam Thi Le Minh 10 Marketing Strategy for welding and cutting products in Namviet company airline of Finland Kemppi Addition, they also distributed the welding cutting equipment from Taiwan, China Product leadership they can provide diverse category of goods from average to advanced, from simple technology to high technology They also have six years experience in this business Researching SWOT Matrix a Strengths: a.1 Namviet can implement customer care very well and amount of customers is not much yet because the company has started business so that we have a lot of time to interest all customers a.2 Namviet can change quickly and flexibly if Namviet sees their marketing programs are not effective a.3 Namviet can be control all activity in first period so that we can offer values better to customers a.4 We have a certain number of internal customers are CavicoVN Corporation a series of partners we have good relationships b Weaknesses: b.1 The company has no market and long-term reputation b.2 We could not advoice key staff or one of managers of company who meet bad things as sickness, disease or even remove b.3 Flow of capitalism, which is unstable in starting period b.4 The welding and cutting machine market has come into saturated, many types of welding rods, welding wire produced in the Vietnam market c Opportunities: c.1 It is necessary to disburse FDI, the country is focusing so much on constructing infrastructure, urban works, hydroelectric power, building factories, industrial zones so that there have high demand for industrial products such as welding, cutting Field study report – Dam Thi Le Minh 13 Marketing Strategy for welding and cutting products in Namviet company machines c.2 Using existing relationships and internal customers for the period starting business c.3 Remain niche markets for high-tech equipment, advanced welding rods, spare parts d Risk: a.1 Technical staff and business staff is not currently available b.2 Not built a team of warranty, maintenance products b3 Our competitors are having many experiences b.3 Goods depends on supplier is Uniweld (from Singapore) so that there are some risks as goods should may be delayed, disconnected stock Field study report – Dam Thi Le Minh 14 Marketing Strategy for welding and cutting products in Namviet company B: MARKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS IN NAMVIET COMPANY I MARKETING GOALS Positioning the brand Creating the interest, attention and attraction of the Company to customers construction companies, shipbuilding, petroleum and cement in the years 20092010 By early 2011 we have created the brand and firmly in mind customers know and understanding the basic system of potential customers with specific marketing programs Turnover Achieve 6,5 billion VND in selling (price from Unwieldy) in the first year and growth is up 30% of sales annually II GOALS OF BUSINESS AND PROFIT (T9/2009 - T9/2011) Make sure the sales signed distributor contract with UNIWELD is 500.000 SGD (in exchange rates 12,558 on July 10, 2009) is rounded 6.279.000.000VND the need to increase sales is 6.500.000VND After calculating the costs will be added to prices with profits expected to work out the business of selling themselves to market Profit after tax corporate income is expected: 8% of sales base on report results of business operations of the company Welcome this company is a model compact and similar sales levels set out our profit after tax of their reach is 10%) Annual growth rate expected up to 30% (according to the research information from rival companies such as Ngoc Linh, Weldcom, Tien Dai Phat showed growth in their sales are in rate from 50% to 100% in 2008 During the period from 2009 to 2011 FDI of VN VN is still high and more focused areas to build transportation infrastructure, the construction works , hydroelectric works to meet the process of industrialization and therefore Field study report – Dam Thi Le Minh 15 Marketing Strategy for welding and cutting products in Namviet company growth of the industry is certainly high, but the situation of economic crisis still capture the period should end up at 30% growth is the safety that the company be able to achieve III CUSTOMER CLASSIFICATION Total oil and gas companies Corporation Cavico VN (internal customers) The total construction companies (Vinashin) Cement Corporation Shipbuilding enterprises (Dung Quat) Mining company Vocational schools: Ngoc Linh, Weldcom other companies have exploited this market is very deep so we will not focus right IV MARKETING STRATEGY 1.Choosing main products With welding machines, we focus on the type of high-tech machines or automation systems With cutting machines, we focus on the types of laser cutting machines, CNC machines and the really advanced technology With welding consumable: focus on selling welding rods of Metrode company Other auxiliary equipment: paint marker pen and other equipments using to protection clothes but the goods imported from China, Korea or producing in Vietnam can not supply, they can only import from Euro as Saf –fro products or other advanced equipments that Uniweld supply with competitive prices Distribution Number of agents need to set: agents, one in Ho Chi Minh City, one in Vung tau City, one in HaNoi Capital because these are main market in Vietnam which focus on big company in industry Policy: Sea gift table for agents and hanging banners: 20 million Agents Combining two strategies PULL - PUSH Field study report – Dam Thi Le Minh 16 Marketing Strategy for welding and cutting products in Namviet company Strategy mainstream strategy by pulling our direct sales is mainly because the policies are focused care for the buying decisions and those related impacts should use a purchase war Drag the mainstream strategy is effective Push strategy: the incentives for agents to help us get where product display, advertising products and take advantage of the storage agents so we will not open much and it would cost for not high, act as secondary Price strategy Evaluation methods: The price is high for products originating in Europe and the U.S price of it is really high and was being evaluated since then Uniweld plus costs, plus profit after tax of the Company is 8% to the price of imported products sold in the market Advertising strategy a Showroom (3 showrooms, one in Hanoi, Da Nang 1, HCM) set up showroom in Hanoi in September always, a Ho Chi Minh City will be established in December, Da Nang will set up in 2010 Purpose: open showroom aims to take advantage of the support machinery and equipment from Uniweld, staff engineer, warranty, maintenance, search business working in the showroom can share costs with Uniweld doing advertising, brands Uniweld b Catalogs, brochures Products need to focus: Production part welding, cutting high-level, solders Metrode, put paint marker, spare parts and equipment protection high level Quantity released: 700 books Brochures: 1000 sheets Time of release: proceed to Singapore as soon as the tool for direct marketing Location Released: Send all customers can have on the country, focusing more in Hanoi and Ho Chi Minh c E-Marketing Field study report – Dam Thi Le Minh 17 Marketing Strategy for welding and cutting products in Namviet company Setting website: combine the company's website Objective: sales through the network, advertising products, advertising and Company Uniweld provider E-newspaper advertising based on the characteristics access, number of access will make a decision choice (Website, online newspapers, e-mail - based on the object to the report, the number of access) d PR, Event: Conduct writes and write press releases as soon as bring products to market, intended to mid August and early September Number at least items or more, posted on two newspapers or journals or mechanical construction Magazines Magazines (selected journals, based on the amount released, audience) Articles presented marketing customers: - Raincoat - Coat - Other Food Gift e Warranty and maintenance policy Select methods proceed warranty, maintenance: Warrantee team has staff techniques sale person are in charge of work-related techniques such as consulting for computer use what works, manuals, instructions on maintenance machines that perform maintenance of machinery in customer care programs Besides hiring a number of contributors have names to help solve the current orders to use high-tech and high technical requirements team collaborators prestigious orders for when they can ask advice and technical support Field study report – Dam Thi Le Minh 18 Marketing Strategy for welding and cutting products in Namviet company CHAPTER 3: RECOMANDATIONS FOR MAKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS AND HUMAN RESOURCES SOLUTION IN NAMVIET Reasons for weaknesses of implementing marketing strategy from 07/09 to 10/09 After three months implementing marketing strategy arising out many issues to be resolved and additional new elements and we need to adjust immediately for selling welding & cutting products plan , can achieve sales target in 2009 and building initially the brand in 2010 First: there are some problems generated by recognizing key products wrongly to make marketing strategy in Vietnam market Second: implementing to classify customers and plans to reach selling to them still slow and limited Third: The process of promotion to build identifying brand has not been conducted Fourth: The conducting advertising and selling by internet was slow, has not take advantage of this advertising tool by a new company as NAMVIET about its wide level, the universal access and the cost savings when making advertising as it is a sales tool sales industry effectively Last: issues of human resource need to interest if there have not got good human we could not make any plans or strategies In fact today is the shortage of personnel NAMVIET serious To ensure business success in this moment with a brand new start as NAMVIET need to have the framework of the good, especially the framework of the Trading Department of the main forces company’s Present staff of the Trading Department includes: Field study report – Dam Thi Le Minh 19 Marketing Strategy for welding and cutting products in Namviet company A vice director in charge of general welding and cutting products business, a technical sale person, a marketing specialist in charge all issues such as imported goods, office document management business, make the work of sending documents to introduce their products to customers, clients set up the system, set up the system agent, call and visit customers to exploit the project There are currently no staff is expected to replace or supplement to ad voice the risk of personnel as having a person off the team has no technical doing customer care and maintenance products after sale service The lack of personnel is the reason making one staff have to a lot of works and makes professional marketing plan delayed so much such as training and selftraining knowledge about new products and methods of selling consumable, deal with customers with lower frequencies so that it is difficult to find their project It makes chance to know customer's project is limited and it cause many bad things for implementing the marketing strategic From the above issue I would like to make the following recomendations to more complete marketing strategy for 2010 to come Recommendations First: According to customer classification as NAMVIET were expected to divide into customer groups as classified customers above we need to carry out the work of early tele-marketing to reach customers to search Project information, customer information, focus on oil and shipyard customers for this kind really needs to consume the product and pricing more appropriate Second: Need to recognize key products to suit for current market as consumables as Metrode wire, Esiweld's cutting & welding machine, this machine has good quality and very competitive pricing and more Esiweld brand has not sold in Vietnam market will lead to there are many advantages factor for us to make brand as well as to receive priority from manufacturer when Namviet is the first company to exploit new markets help them Field study report – Dam Thi Le Minh 20 Marketing Strategy for welding and cutting products in Namviet company Third: immediate investment in building brand recognition system, starting from the decoration of the office and stationery supplies such as letter, paper billboard in the agents, catalogue, brochure, website to quickly bring the company's image and image of main products to the customer directly Fourth: establishing tool selling by internet and advertising on page of famous industrial selling website immediately we can start with simple ways and saving costs Advertising through out internal channel is Cavico magazine, Cavico VN website Last: The problem of human resource need to be resolved first as follows: Conducting recruitment or transfer human now to form the necessary framework and then training to improve staff’s knowledge products and selling consumables skill need to business on the cutting welding products, ensuring the issues serving for sales activities as importing goods and customer service activities, implementing maintenance products services very well and ensuring reputation and professional selling of the company Implementing marketing by phone, meeting customers find the project and other deals Specific need for the number of these recommendations would be as follows: People Position Duties Trading Manager: person Admin (processing orders and contracts): person In charge: Processing orders and contracts, as part of the documentation relating to the Trading Department Technique manager: person In charge of selling a search technique Responsible array of techniques for all Trading Department Specifically, in charge of general counseling techniques, equipment installation, equipment manuals, warranty, maintenance machinery and equipment Field study report – Dam Thi Le Minh 21 Marketing Strategy for welding and cutting products in Namviet company Also involved in the sale Partly responsible for sales and customer care Sales Engineer: people Mainly on duty sales, consulting techniques, manual and participated in the work of warranty, maintenance (can not deep) Responsible for sales Technical Collaborators consultant on duty three techniques, conduct maintenance, maintenance for customers when needed people because the number of cases where you have someone replaced immediately Financial Analyst: person Accounting treatment of debt Make a mission to track documents and recovery of customer debts with other tasks as required by Accounting Chief Salary Accounting and other expenses a task requested by accounting Chief Total Personnel: 11 people Field study report – Dam Thi Le Minh 22 Marketing Strategy for welding and cutting products in Namviet company CONCLUSION During the global economy still fall into crisis and the restoration of the economy have prospered signs, however, Namviet still find the direction its business and established in sensitive to this point is a great effort, the results of the search reasonable business directions, finding a nick market to business in the cutting & welding industry, a sector are fierce competition However, as described in the industry to explore market in Vietnam is in the initial period of market economy, infrastructure investment should be a lot The exploitation of natural resources such as oil, coal, cement still boom business so this product actually still much space of market Marketing strategy for welding and cutting products are made but had to prepare and calculate the thoughtful then still need the additional adjustments in time to achieve the profit targets set out To contribute to the development of marketing strategy I would like to make recommendations on issues of distribution channels, advertising network, selling the network, redefine product strategies and human resource issues for marketing this strategy I hope that my comments may be used for the development of the company in future Field study report – Dam Thi Le Minh 23 Marketing Strategy for welding and cutting products in Namviet company REFERENCES Marketing – Philip Kotler Kinh tế Việt Nam thời kỳ khủng hoảng http:/ www.marketingchienluoc.com http:/www.Cavicocms.com TABLE OF CONTENTS INTRODUCTION……………………………………………………………….…2 CHARTER 1: INTRODUCTION TO NAMVIET TRADING INVESTMENT & CONSTRUCTION JOINT STOCK COMPANY……4 History and business field………………………………………………… Customers information…………………………………………………… Business products……………………………………………………….… Business Strategy ………………………………………………………… 10 Organizational chart………… ………………………………………… CHAPTER 2: MARKETING STRATEGY FOR WELDING & CUTTING PRODUCTS IN NAMVIET ………………………………….9 A MARKETING RESEARCH ENVIRONMENT …………………………… I INVIRONMENTAL MACRO ECONOMY…………………………………… Environmental Government ………………………………………………… Environmental industry ……………………………………………………… II MICRO ENVIRONMENT…………………………………………………….…9 Internal power of Company ……………………………………………………9 Researching competitors ……………………………………………………….9 Researching SWOT Matrix………………………………………………… 12 B: MARKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS IN NAMVIET COMPANY……………………………………….15 Field study report – Dam Thi Le Minh 24 Marketing Strategy for welding and cutting products in Namviet company I MARKETING GOALS …………………………………………………………15 Positioning the brand………………………………………………………… 15 Turnover……………………………………………………………………… 15 II GOALS OF BUSINESS AND PROFIT (T9/2009 - T9/2011) ……………… 15 Profit after tax corporate income is expected……………………………… 15 Annual growth rate expected………………………………………………….15 III CUSTOMER CLASSIFICATION……………………………………………16 IV MARKETING STRATEGY………………………………………………… 16 1.Choosing main products ………………………………………………………16 Distribution…………………………………………………………………… 16 Price strategy………………………………………………………… ……….17 Advertising strategy ………………………………………………………… 17 CHAPTER 3: RECOMANDATIONS FOR MAKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS AND HUMAN RESOURCES SOLUTION IN NAMVIET ………………………………19 Reasons for weaknesses of implementing marketing strategy from 07/09 to 10/09……………………………………………………………………………… 19 Recomendations ……………………………………………………………….20 CONCLUSION…………………………………………………………… 23 Field study report – Dam Thi Le Minh 25 Marketing Strategy for welding and cutting products in Namviet company Field study report – Dam Thi Le Minh 26 Marketing Strategy for welding and cutting products in Namviet company ACKNOWLEDGEMENT First and foremost, I would like to thank you all Nam Viet Trading and construction investment joint stock Company's leaders and staff for their help during my study field and writing this report Sincere thanks should be expressed to the lecturers and professors who have devoted their best in taking charge of the class of TATM6 - A1 Foreign Trade University The writer’s appreciation is to Ms Tran Thi Lan Huong (M.A) for her kind supervision and suggestions in preparation and writing the report Gratefulness is to the readers also, whose feedback will help much in improving the report Writer Dam Thi Le Minh Field study report – Dam Thi Le Minh 27 ... Thi Le Minh 25 Marketing Strategy for welding and cutting products in Namviet company Field study report – Dam Thi Le Minh 26 Marketing Strategy for welding and cutting products in Namviet company. .. Le Minh 19 Marketing Strategy for welding and cutting products in Namviet company A vice director in charge of general welding and cutting products business, a technical sale person, a marketing. .. focusing more in Hanoi and Ho Chi Minh c E -Marketing Field study report – Dam Thi Le Minh 17 Marketing Strategy for welding and cutting products in Namviet company Setting website: combine the company' s