Marketing Strategy for the 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 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 “Marketing Strategy for the welding and cutting products in Namviet company” for my field study report. As started above, my report consists of 3 (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. 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) 4 379 323 03 Fax: (84) 4 379 323 02 Email: sales.navicon@gmail.com website: navicon.vn b. Business field The main industries:Trafficking machinery, equipment and spare parts.Building materials businessTransportationMiningBroker dealers and auctionInstallation of machinery and industrial equipmentConstruction of public works and civilBusiness 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 Cement Nam Viet Co is distributor for Dong Lam Cement Factory, Fico Cement Factory, Phuc Son Cement Factory. 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




Business Strategy
 Organizational chart
 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, 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. CHAPTER 2: MARKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS IN NAMVIET. A. MARKETING RESEARCH ENVIRONMENT I. INVIRONMENTAL MACRO ECONOMY1. 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 $ 5 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. 2. 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 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 ENVIRONMENT1. 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. 2. 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. Sun Korean companies and TB WELDTEC: The team of mechanical engineers, electrical engineers and sales staff of engineers, officers and employees are: 150 people, they have one long development history, the brand name and experience in this field, they have established customers system, their customers are: Lilama Corporation, Vinashin, oil and gas corporation, the system of training schools.... They have full range of products from medium to high level.... The company has strengths in business high-tech products is more: HANAN companies Cat Son Company Company Catminh Vietnam Coal Corporation. Ha Noi: five strong companies such as: Ngoc Linh Company. Engineering staff crowded, with assembly plant in Hung Yen, branches nationwide, with enthusiastic sales team consulting, warranty service, maintenance good. As an official agency of the Air - Liquide from 1994 sales of the Company are mainly brought from the sale to Air Liquide, which can in terms of flexibility for customers. Contingent of technicians: 11 people, Business staff: 7people. Customers of NgocLinh company: Hong Lam Training College, Shipbuilding Bach Dang, Pha Rung Shipyard, Shipyard Halong, Saigon Shipyard, Marine Engineering, Mechanical Erection Song Da, Automobile Technology, Nghi Son Cement Factory, Tam Diep Cement ... A number of other training schools. Product leadership fully welding equipment cutting medium to high level. Air Liquide-German, Masser, Chowel - Korea, Hualian - China, Thermadyne - U.S., Welding Alloys - English, Eutecic Castolin - Switzerland. Their strength is the product of Air Liquide. An Hoa Company An Hoa is also company imports and assembling machines, welding strengths is its authorized dealer Dosun Korea. They also import and sell the line of the Taiwan computer technology and WSM WSE. They also have many years experience about distributing and selling these machines. The An Hoa sell goods by internet and through project-based, 100% payment before delivery, they have strong consulting ability, their crowded, professional engineers team and available goods stock. There are many types of machines can be delivered within 2-5 days in Hanoi. Their website was built very clear to sell goods by internet. Best selling of brands: ETS – ANHOA, Hypertherm (USA) and Kjilberg (Germany). This is a company famous on consulting, training technical for welding field and producing welding machine and assembly equipment is long to request of customers. The company has built a professional selling Website by internet. Tien Dai Phat Company. Provides a range of variety of machines and diverse types of South Korea, Italy, Japan, this company is developing very fast speeds, are conducted on professionalize all parts of company such as Customer Service, ability to serve and meet the needs of customers quickly, fast delivery capability (many items available in store), the ability to better control financial policies but not on price flexibility. Sales engineer team, mechanical engineer, the management team have more experience. Their products: and full types of industrial machines. Company Phuclink Project-based sales professional, has extensive experience in the sales channel, staff engineers and consulting sales professional, do not sell small orders. Found they were quite similar to the trend of us, but far exceeding them in terms of expertise and experience. Main products: welding cutting equipment is advanced and they have enormous strength found for Air Liquide .. How cluster market nationwide. Company Unitech This is a company specializing in mechanical cutting including welding industry, high-capacity consultant, sales team and technicians crowded, agency official 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. 3. 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 reputationb.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 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. B: MARKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS IN NAMVIET COMPANYI. MARKETING GOALS 1. Positioning the brand Creating the interest, attention and attraction of the Company to customers construction companies, shipbuilding, petroleum and cement in the years 2009-2010. 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. 2. 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. 1. 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%) 2. 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 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 CLASSIFICATION1. Total oil and gas companies 2. Corporation Cavico VN (internal customers) 3. The total construction companies (Vinashin) 4. Cement Corporation 5. Shipbuilding enterprises (Dung Quat) 6. Mining company 7. Vocational schools: Ngoc Linh, Weldcom ... other companies have exploited this market is very deep so we will not focus right. IV. MARKETING STRATEGY1.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. 2. Distribution.Number of agents need to set: 3 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 2 Agents Combining two strategies PULL - PUSHStrategy 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