Đang tải... (xem toàn văn)
The Marketing Strategy of a multinational join stock company
The Marketing Strategy of a multinational join stock company INTRODUCTION Nowadays, marketing is obviously a more and more vital in the successes of every enterprise However, not many of the companies in Vietnam have paid adequate attention to marketing activities, especially when both domestic and global competition is getting fiercer and fiercer Being one of the companies specializing in selling air conditioners, a multinational join stock company has achieved certain success in this field Its sales of air conditioners have increased over the years since its establishment However, the company sales growth of air conditioners has been modest in comparison with other competitors’ The reason for this partly lies in its marketing After taking a close look at a multinational join stock company’s performance, I decide to choose “Marketing strategies of a multinational join stock company” as the topic for my field study report with a view to examining a multinational join stock company’s marketing strategy and making some recommendations to improve it A multinational join stock company has a lot of business activities, but because of limited time, this report focuses only on the company’s marketing activities for one line of its business, that is air conditioners, on the market in Vietnam Apart from the introduction and conclusion, the report is divided into chapters as follows: Chapter 1: Theoretical Framework Chapter 2: The marketing Strategy of a multinational join stock company Chapter 3: Some Recommendations to Improve a multinational join stock company’s Marketing Strategy Chapter 1: Theoretical Framework 1.1.1 The concept of marketing 1.1.2 The definition of marketing Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company Today’s central problem facing business is not a shortage of goods but a shortage of customers Most of the world’s industries can product far more goods than the world’s consumers can buy Overcapacity results from individual competitors projecting a greater market share growth than is possible If each company projects a 10 percent growth in its sales and the total market is growing by only percent, the result is excess capacity This in turn leads to hyper competition Competitors, desperate to attract customers, lower their prices and add give away These strategies ultimately mean lower margins, lower profits, some failing companies, and more mergers and acquisitions Marketing is the answer to how to compete on bases other than price Because of over capacity, marketing has become more important than over If forced to define marketing, most people, including some business managers, say that marketing means “selling” or “advertising” It’s true that these are parts of marketing But marketing is much more than selling and advertising Today, marketing must be understood not in the old sense of marketing a sale-“telling and selling”-but in the new sense of satisfying customer needs Selling occurs only after a product is produced By contrast, marketing starts long before a company has a product “Marketing is the homework that managers undertake to assess needs, measure their extent and intensity and determine whether a profitable opportunity exists Marketing continues throughout the product’s life, trying to find new customers and keep current customers by improving product appeal and performance, learning from product sales results and managing repeat performance”1 So that does the term “marketing” means? Actually, there is no single and universally agreed definition of marketing The American Marketing Association defined marketing “is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals”2 The writer of the book “The Silk Road to International Marketing” had another definition as follow: “Marketing is the process by which decisions are made in a totally interrelated changing business environment on all the activities that facilitate exchange in order that the targeted group of customers is satisfies and the defined objectives accomplished ” 3.Though there are many definitions, a central part of any definitions of marketing is the exchange process – the process of giving something of value in return for something of value Or in other words, it’s the process of transferring between two or more parties of tangible or intangible items of value Cash, debt, time, votes, behavior, etc Marketer Marketer Goods, Goods,Services, Services, ideas, ideas, People Peopleand andPlaces Places Le Kim Hong Tu _ 5D Customers Wants and needs The Marketing Strategy of a multinational join stock company Health, safety, comfort, transportation, beauty, productivity, etc Figure 1.1: the exchange process For marketing to occur, at least four factors are required: (1) two or more parties with unmet needs, (2) a desire and ability to satisfy them, (3) communication between the parties, and (4) something to exchange Here’s what Berkowitz stated in his book “Marketing” As marketing is a kind of exchange, certain conditions must exist before the exchange can occur 1.1.3 The goals of marketing “Today’s successful companies at all levels have one thing in common; their success is founded upon a strong customer focus and heavy commitment to marketing” They motivate everyone in the organization to deliver high quality and superior value for their customers, leading to high levels of customer satisfaction These organizations know that if they take care of their customers, market share and profits will follow Creating customer values and satisfaction is at the very heart of modern marketing thinking and practice The goal of marketing is to attract new customers by promising superior values, and to keep current customers by delivering satisfaction When a company succeeds in creating more values for customers than its competitors can do, that company is said to enjoy competitive advantage industry 1.2 Competitive Analysis It is the increasingly emerging markets that have create favorable conditions for the rapid development of world trade and investment, which is well – manifested in the sophisticated growth of a number of global companies To compete in one or more foreign markets, companies not only need to broaden relentlessly their sources of competitive position One particularly useful technique in analyzing a firm’s competitive position relative to its competitors is SWOT(strengths, weaknesses, opportunities, and threats) analysis aims to isolate the key issues that will be important to the future of the firm and that will be addressed by subsequent marketing strategy A SWOT analysis divides the information into two main categories (internal factors and external factors) and then further into positive aspects (strengths and opportunities) and negative aspects (weaknesses and threats) The internal factors could be viewed as strengths or weaknesses, depending upon their impact on the firm’s positions; i.e., they may represent strength for one firm but Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company awearness irrelative terms, for another They include all of the marketing mix (product, price, promotion and place strategy) as well as personnel and finance The external factors, which again may pose a threat to one firm but create opportunities to another, include technological changes legilation, social-cultural differences, and change in the market place or competitive position 1.3 Global Marketing Strategy In terms of globalization, worldwide businesses use global marketing when they take the same or similar approach or content for one or more elements of the marketing mix, that is, the same or similar brand names, advertising And so on in different countries Although most of the multinational companies using global marketing mix-product, pricing, promotion and place – are standardized Business can make some elements of marketing more global and others less so Accordingly, possible adaptations that firms might apply to their product, promotion, price, and place when they enter through the foreign markets will be provided in this part 1.3.1 Product Promotion There are five international product and promotion strategies for a company to extend its market base into other geographic markets (See table 1.1) Straight extension means marketing the product in the foreign without any adaptation Top manager asks its marketing people to “find customers for the product as it is” As a result, it is seen as easiest product marketing strategy and may be the most profitable one as well However, the company should first determine whether foreign consumers use that product or not Straight extension has been successful with cameras consumer electronics, and many machine tools This strategy is tempting because it involves no additional product development cost, manufacturing changes, or promotional modification But it can be costly in the long run if products fail to satisfy foreign consumers Product Do not change Adapt product Develop product product change Straight extension Product adaptation Do not promotion Adapt promotion Communication adaptation Dual adaptation new Product invention Table 1.1: Five international product and promotion strategies Product adaptation involves changing the product to meet local conditions or preferences There are several levels of adaptation A company can produce a regional version, a Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company country version, a city version or even promotion retailer versions of its products Although, products are frequently adapted to local tastes, in some instances they must be adapted to local superstitions or beliefs, too Product invention consists of creasing something new the foreign market It can be divided into two forms The first is backward invention, which means reintroducing earlier products forms that happen to be well adapted to the needs of a given country And forward invention is to create a new product to meet a need in another country 1.3.2 Promotion Companies can either adapt the same promotion strategy they used in home market or change it to suit for each local market Although some global companies use a standardized promotion campaign changes might be needed to comply with local regulations and references There are four different levels of adapting promotion strategy Firstly, companies can use one message everywhere, varying only the language, name, and colors That is because colors might be changed to avoid taboos in some countries Also, names and slogan may have to be modified in some countries Secondly, companies may use the same them globally but adapt the copy to each local market Thirdly, companies can develop a global pool of advertising from which each country selects the most appropriate one Finally, some companies allow managers to create a specific advertising – within guidelines, of course Other companies follow a strategy of communication adapting their advertising messages without any product changing Although it retains the scale economics on the manufacturing side the firm sacrifices potential saving on the communication way another strategy is dual adaptation It is changing both the product and the communication to face local differences 1.3.3 Price Global companies face several problems in setting their international prices Those problems must deal with price escalation, transfer prices, dumping charges, and black markets Price escalation problem occurs when companies sell their goods abroad The foreign prices probably will be higher than their domestic ones because it must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin Depending on these added costs, the product may have to sold for two or five times as much as another country to generate the same profit Since cost escalation varies from country, companies have three price setting approaches in different countries Setting a uniform price everywhere: charging the same price everywhere in the world By this method, companies would earn quite different price in different countries because of Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company varying escalation costs Also, this strategy would result in too high price in poor countries and not high enough in rich countries Setting a market-based price in each country: charging what each country could effort But this strategy ignores differences in the actual costs from country to country In addition, it could lead to a situation in which intermediaries in low-price countries reship to high-price countries Setting a cost-based price in each country: using a standard marketing of its costs everywhere But this strategy might price out of the market in countries where it costs are high Another problem arises when a company sets a transfer price(i.e the price that it charges to another unit in the company) for goods that it ships to its foreign subsidies If company charges too high a price to a subsidiary, it may and up paying higher tariff duties, even while paying lower income taxes in that country If company charges its subsidiary too little, it can be charged with dumping Dumping occurs when a company charges either less than it costs or less than it charges in its home market, in order to enter or win a market Various governments are watching for abuses and often force companies to charges the arm’s-length price – that is, the price charged by other competitors for the same or a similar product Global companies also face the black-market problem A black market means the same product is sold at different price geographically Dealers in the lower-price country find ways to sell some of their products in higher-price countries, thus earning more Many company finds some distributors buying more than they can sell in their own country and reshipping goods to another country to take advantage if price differences Multinationals try to prevent black market by policing the distributors, by raising their prices to lowercost distributors, or by altering the product characteristics or service warranties for different countries Moreover, one challenge o global pricing in recent years is that countries with overcapacity, cheap currencies, and the need to export aggressively have pushed prices down and devalued their currencies For multinational firms this poses great difficulties Sluggish demand and reluctance to pay higher price make selling in these emerging markets harder Instead of lowering prices, and taking a loss, some multinationals have found more creative and creative means to deal with this problem 1.3.4 Place (Distribution channels) Global companies must take a whole-channel view of the problem of distributing products to final consumers Figure 1.2 show the three major links between the seller and the ultimate user In the first link, seller’s international marketing head quarters the export department or international division makes decisions on channels and other marketingmix element The second link, channels between nations, moves the products to the Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company borders of the foreign nations The decisions made in this link include the types on intermediaries (agents, trading companies) that will be used, the type of transportation (air, sea) and the financing and risk arrangements The third link, channels within foreign nations, moves the products from their foreign entry point to final consumers Channels of distribution within countries vary greatly from nation to nation first, there are large differences in the numbers and types of intermediaries serving each foreign market Long channels of distribution means that the consumer’s price ends up double or triple the importer’s price Another difference lies in the size and character of retail units abroad Breaking bulk remains an important function of intermediaries and helps perpetuate the long channels of distribution, which is a major abstaining to the expansion of large-scale retailing in developing countries 1.4 The marketing mix strategies Philip Kotler, in his book “Principles of Marketing”; defines marketing mix as “the set of controllable tactical marketing tools – product, price, place and promotion – that the firm blends to produce the response it wants in the target market” These ingredients must be manipulated in a manner which ensures targeted customers are satisfied, marketing strategies are implemented and desired brand positioning is achieved Seller Seller’s international Marketing headquarters Channels between nations Channel within foreign nations Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company Ultimate buyers Figure 1.2: whole-channel concept for international marketing Chapter The marketing strategy of a multinational join stock company 2.1 An introduction to a multinational join stock company 2.1.1 Company development A multinational join stock company was founded on 12 th August 2002 A multinational join stock company’s headquarters was located at 236 Cau Giay Street, Hanoi It has branches in Hanoi, Hai Phong and a network of distributors around the country Since its establishment, a multinational join stock company has operated in various fields: air conditioners, electronics, medical equipment, technical machinery and equipment, etc After two years of operation, a multinational join stock company expanded into other areas such as information services, supplying and assem blind lifts and other equipment Early 2007, a multinational join stock company opened a new branch in Hai Phong for selling construction materials It also opened a new sales representative office for selling Viglacera’s products 2.1.2 Company’s products A multinational join stock company specializes in selling the following: Air conditioners of famous companies such as Toshiba(Japanese), Mitsubishi(Japanese), Trane(American) and Sanyo(Japanese) Medical and technical equipment and machinery, mainly imported from the USA, Italy, Germany and Japan Lifts manufactured by Nippon (Japanese), Thyssen (German), Volbin (Swiss) and Don Yang (Korean) Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company Construction materials and equipment of its own and Viglacera’s, and other electronic products Besides, a multinational join stock company also provide other services such as maintenance for medical and technical equipment, computer installing and programming 2.1.3 Company’s Organization Board of Directors General Director Deputy General Director Quality Acceptance Department 2.1.4 Technical Department Deputy General Director Financial & Accounting Department Trading Department Planning Department Board of Directors A multinational join stock company’s Board of Directors includes a Director General and Deputy Directors General Director General: Leading the company’s board of management is the Director General who is responsible for managing the use of capital, human and other resources Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company Two Deputy Directors General: These people provide assistance to the Director General They would sometimes act on behalf of the Director General in his absence One of them is responsible for the trading, planning, financial and accounting matters and the other is in charge of technical and research development aspects in the company 2.1.5 The departments There are five departments, each of which is responsible for a certain part of the company’s activities Trading department: this department helps the Board of Directors with trading activities These include organizing both domestic and international business The trading department is also responsible for: _ Doing marketing researches on products _ Promoting the company’s products through advertisements _ Holding negotiations and getting contracts for the company _ Organizing distribution channel for the company’s products _ Planning department: this department is in charge of marketing plans on importing, material providing and preceding the contracts Organizing the sales of products is another main task of the department Financial and Accounting department: this department deals with all financial and accounting matters Another main function is to manage the use of capital to the right purpose, right policies and regulations, and to assist business activities Technical department: this department is in charge of technical and technological matters The staff of this department also works closely with the factories to researching and applying the modern equipment and technical advance to them anufacturing and processing This department for the purpose of the company’s business development sales all the adjustments or improvement to the technology Quality assurance department: this department takes control over the quality of the products This is for the purpose of assuring that all the products will meet customers’ requirements Apart from the five departments, a multinational join stock company as branches around the country The organizational chart has been effectively applied for a multinational join stock company since its establishment and has resulted in good performance and operation There have been good assessments on the company structure: it shows to be in charge of Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company particular activities and they would be able to proceed their function reasonably, which results in avoidance of overlapping and cumbersome This helps the company to be able to take the internal and external advantages; to apply modern and advantaged technology to bring the best fruits to the whole company’s efforts 2.1.6 Company trading results Total sales Net profit 2005 5.527 595 2006 7.035 650 2007 10.783 927 2008 21.579 1.250 Table 2.1: A multinational join stock company’s trading results in recent Unit: million VND 2.2 The marketing strategy of a multinational join stock company 2.2.1 SWOT analysis of a multinational join stock company As mentioned in the previous parts, a multinational join stock company has been trading in a lot of products such as air conditioners, electronics, medical equipment, technical machinery and equipment, etc., but with the limited time, this report focuses on the marketing strategy that a multinational join stock company has used while dealing in air conditioners only In this light internal strengths and weaknesses, as well as external opportunities and threats that a multinational join stock company faces while trading in air conditioners will be identified for the understanding of a multinational join stock company’s marketing strategy - Good quality - Competitive price - Good business partners - Customers’ loyalty - A multinational join stock company corporate culture Le Kim Hong Tu _ 5D - relation with Better market growth The Marketing Strategy of a multinational join stock company - Limited capital - Growing black market - Small size and small market share - Force competition - Not enough technique staff - Lack of diversification in product quality - Poor promotion activities Table 2.2: SWOT analysis of a multinational join stock company 2.2.2 Strengths The first strength of a multinational join stock company is that its air conditioners are good quality A multinational join stock company’s air conditioners are imported from famous companies in the world such as Toshiba (Japanese), Mitsubishi (Japanese), Trane (American) and Sanyo (Japanese) These are famous brands in the world market and Vietnamese consumers highly appreciate them A multinational join stock company has never had any complaint about the product quality The second strength is that a multinational join stock company has been offering very competitive prices for its air conditioners A multinational join stock company has been a distributor for these firms since its early day (Toshiba, Mitsubishi, Trane and Sanyo), and although there are a lots of other companies are acting as distributors for them, a multinational join stock company has a certain advantage: a multinational join stock company has always kept its prices as competitive as possible Its prices are among the lowest for air conditioners, usually between 7% and 10% lower than its competitors The third strength of a multinational join stock company is the good relation with its business partners, a multinational join stock company has maintained it corporation with the above mentioned business suppliers for many years and has always been highly valued by them This an advantage for a multinational join stock company Every years, its technical staff are offered technical training by the foreign experts from a multinational join stock company’s suppliers Many staff also have chance to go abroad to get training Moreover, when there is a technical problem at a multinational join stock company, it immediately receives assistance from its partners The forth strength of a multinational join stock company is its customers’ loyalty As mentioned above, beside good quality, competitive prices, and good business relation with its partners, a multinational join stock company’s customers has contributed a lot of the company’s success The after sales services of the multinational join stock company has been developing and improving rapidly over the years This helps the firm to keep in Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company touch with the old customers And by words of mouth, these people have brought new customers for the company In addition, a multinational join stock company frequently holds customer meetings in which customers would have chances to express or a multinational join stock company their thinking about the company products and services, this enables the company to get market research information to built up its reputation and customers’ loyalty The last strength is the corporate culture of a multinational join stock company Employees of a multinational join stock company are infused with an open, value-based corporate culture The cornerstones of the company’s values are: Staff satisfaction Respect for the individual Achievement Continuous learning A multinational join stock company’s management seeks to internalize these values through debates and discussions among teams Its annual strategy meetings, plays an important role in this process The meeting focuses on barn-storming about technological and life-style trends and discussing strategic priorities of a multinational join stock company in the market 2.2.3 Weaknesses Firstly, limited amount of capital is posing a difficulty for a multinational join stock company The company’s capital hasn’t been expanded much since its establishment The Managing Director of a multinational join stock company said: “we have an advantage in comparison with our opinions in terms of customer’s loyalty and a good image and reputation, but now we have a problem of capital that thinking is weakening our competitiveness” The main source for its capital has been contributions of it shareholders and a multinational join stock company has had a lot of difficulties in finding other sources of capital As we all know there are four main sources of investment capital that domestic companies may access: Long-term credits provided by commercial banks on commercial basic: Government’s investment and Development Support Fund Soft loans and/or grants from foreign countries Non-banking capital, including company’s equity and funds mobilized from the informal banking system including the company’s employees With regards to investment capital from banks, Vietnamese banks are shortage of investment capital, because of the lack of long-term deposits, which in turn due to the Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company regulated interest rate and low reputation of the banking system As a consequence, it is normally hard to get long-term ones This mismatch of maturity causes many problems to Vietnamese companies including a multinational join stock company Secondly, a multinational join stock company size and market share have been small The shortage of capital is main cause of the company’s modest size and market share Up to now, a multinational join stock company has had only branches dealing in conditioners nationwide in Hanoi, Hai Phong As a result, its market share is among the lowest in the market for air conditioners in Vietnam This is a major weakness for a multinational join stock company and the company has to be determined to overcome if it is to be successful in the future Thirdly, another weakness of a multinational join stock company is its lack of the technical staff Although the current technical staff of a multinational join stock company are qualified for its technical word, but they are so few in terms of quantity The company’s customers has never complained about a multinational join stock company’s product quality or the quality of the maintenance work that its staff have done, but has complained about the late reply and maintenance service of the company The reason for this is the company’s not enough technical staff This is also one factor resulting in the low market share of a multinational join stock company Fourthly, lack of diversification in product quality of also a weakness for a multinational join stock company A multinational join stock company has always been concentrating in high quality air conditioners such as imports from Toshiba, Mitsubishi, Trane and Sanyo companies These products have high quality but are too luxurious for a large proportion of Vietnamese customers Besides these famous brands, a multinational join stock company should deal in some lower quality ones, which are also less expensive such as products from Samsung, LG, and Daewoo etc By this way, a multinational join stock company an attract low and middle-income consumers Lastly, a multinational join stock company has had rather poor marketing and promotion practices Marketing and promotion practice of Vietnamese enterprises are poorly and insufficiently performed Promotion is limited to market research In addition, the organization of trade fairs and collecting information with such important tasks as export consultation, trademark information and the provision of market information have not effectively been undertaken Additionally, just like many of a multinational join stock company’s competitors, it also has its own website in order to develop their images and advertising their main products However, most of those websites are not attractive enough the information about their businesses is not sufficient enough to appeal to customers 2.2.4 Opportunities Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company The only opportunity for a multinational join stock company is that can have a better market growth in the near future There are two reasons for this Firstly, the market in Vietnam for air conditioners is growing rapidly because there are more customers for this item As Vietnam people’s income has increased in recent years, more people can affort air conditioners This is no longer a luxurious item for a lot of people living in the city Secondly, a multinational join stock company is now considering expanding, as it is looking for more sources of capital Some employees in a multinational join stock company are thinking of investing in the company by buying its shares 2.2.5 Threats Despite the impressive performance so far, a multinational join stock company is facing a host of challenges The first barrier is black market pressure The flourish of black market is posting a threat for air conditioner importers, in general, and for a multinational join stock company in particular Presently, China is the biggest supplier of black market air conditioners in Vietnam The second barrier is that a multinational join stock company is facing an unprecedented level of competition from both existing competitors and new entrants Thanks to the remarkable growth of Vietnam air conditioners recently, Vietnam is becoming a battle field for air conditioner manufactures and importers There are more and more air conditioner manufactures in Vietnam These are either joint-venture companies or 100% foreign owned ones The qualities of their products are improves and their prices are much more competitive than the imported ones that a multinational join stock company is selling As most people in Vietnam are low and middle-income earners, the air conditioners of these manufacturers are better suited to Vietnam consumers than a multinational join stock company 2.3 A multinational join stock company - marketing mix 2.3.1 Product Famous firms as products, which fundamentally provide its customers various benefits, make air conditioners of a multinational join stock company These are core benefit, generic product, expert product and augment product The core benefit of a multinational join stock company is the usage of product-which the target customer finds The generic product is the basic characteristic about product, which was described by color, trademark, and the package of product Each of the products of a multinational join stock company has a separate trademark and color Besides, a multinational join stock company has always tried to diversify its range of air conditioners Initially, a multinational join stock company only sold famous brands that Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company are Toshiba (Japanese), Mitsubishi (Japanese) Then recently it has expanded and started to sell other brands: Trane (American) and Sanyo (Japanese) This is helped to increase the number of customers of a multinational join stock company Moreover, the quality of a multinational join stock company’s air conditioners has been maintained over the years There has been no complaint from the consumers about their products The company’s two-year guarantee period is also satisfactory to consumers 2.3.2 Price The first strategy that a multinational join stock company adopts is low price strategy as most of Vietnamese air conditioner use are price-sensitive buyers The prices of a multinational join stock company’s conditioners range from VND 5,000,000 to VND 30,000,000 depending on each model This policy of pricing is much more attractive to customers as a multinational join stock company prices normally are among the lowest for air conditioners The second strategy that is applied by a multinational join stock company’s for air conditioner is price competition A multinational join stock company authorized dealers indeed offer the retailers who sell a multinational join stock company’s two-way air conditioners a huge commission compared to those of its competitors As a result, the price of a multinational join stock company’s air conditioners sold by these retailers may be cheaper as some of them may want to satisfy their commission per two-way to get profits from selling a big amount It is the price competition between a multinational join stock company retailers that benefits customers The last strategy that a multinational join stock company to use is in the fourth of this year it launched a lever air conditioner at inexpressive price This kind of product is for low and middle-income people in Vietnam These are the air conditioners with model FUNIKI SC 09 and SC 12, which are offered at inexpressive price of between VND 5,000,000 and VND 6,500,000 The company belives that cheaper price of two-way air conditioners and lower installation and maintenance cost of air conditioner are the two key elements to increase the sales of a multinational join stock company’s air conditioners in Vietnam 2.3.3 Place A good distributing policy helps business activities safer, increasing the connection in business, decreasing competition and marketing the circulation of goods more quickly and efficiently In the domestic market a multinational join stock company has good relations with its partners so they help a multinational join stock company very much in the distribution They help a multinational join stock company in over other rivals even in the forecast Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company competition Two-way air conditioners retailers are said to gain much benefit when committing to sell the new FUNIKI set The company not only supplies its two ways to these retailers, but also supports them in terms of outlet decoration, staff training and marketing activities Besides, each retailer will get a juicy bonus if an air conditioner is sold A multinational join stock company offers an intensive support for any retail that is located in business centers of the cities and provinces across nation On the contrary, the company would offer the shop owner much more benefit such as free shop-sign and not correction and a greater commission if the selling volume is reached at a high level This always try their best to market as many air conditioners as ways is sold out much more than competitors 2.3.4 Promotion Promotion is the aspect of marketing concerned with increasing sales Marketing must be considered on marketing production decision, and promotion must be considered in the overall marketing process Promotion attempts to persuade and influence the customer’s attitude in various ways A multinational join stock company has used some ways to advertise its product such as advertisements on television, internet, newspaper, magazine … However, they However, they advertisements are not very effect A multinational join stock company uses two strategies promotion that is pulling strategy and pushing strategy to each of target customer as illustrated in the following figures: Factory Wholesaler Retailer Customer Figure 2.3: Pulling strategy A multinational join stock company uses this strategy to make the customers have an idea and believe in product and buy the products of a multinational join stock company Factory Wholesaler Retailer Customer Figure 2.4: Pushing strategy Pushing strategy aims at company and branch office dividing the price for advertising and discounted price A multinational join stock company uses this strategy because there are many branches in company Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company Chapter 3: Some Recommendations to Improve a multinational join stock company’s Marketing Strategy 3.1 Some recommendations to the Government and relevant authorities In doing business, in particular, and other enterprises in general, are facing not only subjective problems but also objective ones, which need efforts and solutions from the government It is, therefore, recommended that our government should take these following actions so to create better business environment for companies like a multinational join stock company 3.2 Recommendations to a multinational join stock company Global marketing strategy is not about standardizing the marketing process on a global basic Although every element of the marketing process – product design, product and brand name, packaging, pricing, advertising strategy and execution, promotion, and distribution – may be a candidate for standardization, standardization is just one part of a global marketing strategy Consequently, striking the right balance between standardization and localization greatly contribute to a multinational join stock company’s success A multinational join stock company has developed a combination of standardization and localization of marketing programs to match Vietnamese market But to further promote the sales of air conditioners by a multinational join stock company the following are recommended to the company 3.2.1 Improving the company’s marketing mix The company needs to build up an good marketing mix for the current marketing strategy, which bases on the four elements: Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company Product: improving the quality and diversifying categories of products is the core of product element in the marketing mix As discussed above, the market for air conditioners in Vietnam is becoming more sophiticated with a variety if different demands The small portion of the market usually set high requirements for the trend-catching and materialselecting criteria of the imported air conditioners Others are low and middle-income earners who require a lower quality Temporarily, the company should consider satisfying its product range as the most important element in its strategy Price: high price has always been the disadvantage in competition Although a multinational join stock company’s prices have been considered reasonable for some brands over the few years, keeping this low level is a quite difficult task for the company In a addition, as a multinational join stock company is thinking of expanding its product range with higher and also lower quality products, maintaining competitive prices is not easy This is really a jey to the company’s success in the future Place: a good distributing policy helps business activities safer, increasing the connection in business, decreasing competition and making the circulation of goods more quickly and efficiently Due to the characteristics of a multinational join stock company’s activities, there are three ways for the company to make further improvement to its distribution performance Firstly, improve a multinational join stock company’s distribution users in the shortest period of time The second alternative is to open more branches A multinational join stock company’s current branches are in big cities, so it advisable for the company to set up new in small towns, where people’s incomes have been improving and can afford air conditioners The last alternative, which should be used in the long term and considered to be the best, that is to establish a network of representative offices throughout the country Promotion: this is one of the weaknesses of a multinational join stock company For the purpose of sakes growth, the company should invest more in promotion activities This is a method not only to increase sale but also to build the company’s image The measures to build the company’s image will be discussed in the next section 3.2.2 Building the company’s image It is said that advertising is a business art A multinational join stock company’s weakness is efficiency of promotion is not good The reason is a multinational join stock company has not applied tools of promoting policy It might be an advertising on TV, on the radio in rush hours Le Kim Hong Tu _ 5D The Marketing Strategy of a multinational join stock company The strength of advertising on TV help viewers can see both images and sounds, colors Furthermore, the expenses of advertising on TV is broadcasted many time per day Besides, almost the households belong to every class in society have TV and watch favorite program on TV in their free time The effect of this type of advertising is wide Today is a era of IT and modern means of communication Internet has played an important role in social activities and in the economy The enterprise can introduce it to other companies over the word Signing the contract with Ministry of Thailand motivated A multinational join stock company’s to export in order to increase foreign currency, expands global market In my opinion, a multinational join stock company needs to build their website which has global function Website is a modern media and widely used on over the world particularly in developed and developing countries Customers can find comfortable and convenient to search information if the company they are considering on internet Partners can easily know about the product, price, quality of product, etc and they can buy through website of the company Website not only brings helpful information to the customers but also save such expenses as transport (traffic, accidents), telephone, telex, etc The importance thing now is a multinational join stock company’s politic department needs collect importance information related to the company, its products and product quality and commercial culture of the company As a result, a multinational join stock company’s brand name and reputation will be spread and have a profound impact on the customers In conclusion, advertising cost is a lot of However, it can be considered as an investment rather than an expense, more wisely spending money can help the company expand brand name good for the company’s activities Conclusion The first part of the thesis concepts related to marketing and the theory that will be later based on to research The definition, the goals of marketing , the contents of marketing as well as implementation and control are main parts of chapter one Gaining an insight into the theory of marketing gives us the background to keep the thesis to be on the right track The research has gone over the practical situation by looking at the company’s overview and the application of marketing strategies for a multinational join stock company In performing its marketing strategies, the company has achieved Le Kim Hong Tu _ 5D ... color, trademark, and the package of product Each of the products of a multinational join stock company has a separate trademark and color Besides, a multinational join stock company has always tried... international marketing Chapter The marketing strategy of a multinational join stock company 2.1 An introduction to a multinational join stock company 2.1.1 Company development A multinational join. .. in the future Thirdly, another weakness of a multinational join stock company is its lack of the technical staff Although the current technical staff of a multinational join stock company are