The Marketing Strategy of Hung Long Jsc

INTRODUCTION Nowadays, marketing plays an important part 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 TV LCD in Ha Noi, Hung Long Jsc has achieved certain success in this field. Its sales of TV LCD have increased over the years since its establishment. However, the company sales growth of TV LCD has been modest in comparison with other competitiors’. The reason for this partly lies in its marketing. After the time I worked there, my field study is “Marketing strategies of Hung Long Jsc” as report with a view to examiming Hung Long Jsc’s marketing strategy and making some recommendations to improve it. Hung Long Jsc 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 TV LCD, on the market in Ha Noi. The report is divided into 2 chapters as follows: Chapter 1:Basic theory about marketing strategy Chapter 2: The marketing strategy of Hung Long Jsc. Chapter 3: Some recommendations to Improve Hung Long Jsc’s Marketing Strategy. Chapter 1 Basic theory about Marketing Strategy Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales . A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service." A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing,promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Chapter 2 The Marketing Strategy of Hung Long Jsc 1. An introduction to Hung Long Jsc. 1.1 The company in general. Hung Long Jsc was founded on August 2003 with the staring point of a small company and few worker at the head office make production of food. After over 6 years of establishment, Hung Long Jsc opened 2 branches in Ha Noi: 482 Tran Khat Tran,157 Thai Ha and a network of distributiors around the country. There are about 100 skillful and experienced staff working, they are almost from 20 to 35 years old. Since its establishment,Hung Long Jsc has operated in various fields: Karaoke, LCD, Plasma TV, Home theater, camera, etc. Early 1999,Service Center and technical Informatics Future was established.It also opened a new sales representative office for selling Califonia’s products.Today Hung Long Jsc has developed rapidly,becoming one of the leader in the field of information technology n Vietnam in particular and in the word in general . Hung Long Jsc can meet the demands of valuable customers with a large orders. Hung Long Jsc has more than 2,000 samples of TV LCD, 1,000 samples of hometheater and 2,500 samples of products with diffierent types, styles, designs from well-known companys; meet the needs for daily usage of customers. Company’s product sand services Products: Hung Long Jsc is one of the leading companies in Vietnam in the field of distribution of information products to customers, agents, as well as to users directly. Products information technology company provides include: - Computer brand Future: Creating a brand name computers with high quality, suitable weather conditions in Vietnam, price benefits for customers. - The computer components: Supply of accessories, spare parts left, and peripherals for high-quality systems integration: Processor, Mainboard, HDD, video card, printer, speakers .. ... - The network device: a distribution agent for the manufacturer of the world leading reputation in the field of network - Product Server and Desktop, Notebook of the world's largest airline HP, IBM, Dell .... product quality and comply with the provisions of the manufacturer. - The software packaging, software management ...... Services: March 1 Warranty, maintenance network - Equipment for inspection, warranty, maintenance of adequate and modern, dedicated professional working style -Technical documentation of products provide complete - Spare parts and components replaced always meet customer needs - Plan and perform warranty repair, replacement new or leaving the cluster components each March 2 training and consulting for computer rental - In parallel with providing customers the information technology infrastructure is modern, Hung Long Company is ready to cooperate with partners and customers to design consultant selection designed to build applications . - The information system, built on the basis of traditional services (LAN, WAN) is provided in Hung Long Company always promote efficiency, security and durability - Issues of implementation, installation of operating equipment to conduct the training, technology transfer in the company's sales are Hung Long proceed in earnest, to meet the needs and trust customer. - Services computer rental for workshops, training and technology transfer: Hung Long has been deployed for a thorough machine rental amount to hundreds of machines is always ready to serve customers. Company’s Organization
 Board of Directors Hung Long Jsc’s Board of Directors includes a Director General and 2 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. Two Deputy Directors General: These pepole 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, financiak and accouting matters and the other is in charge of technical and research anddevelopment aspects in the company. 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 bussiness. 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 id 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 do researching and applying the modern equipment and technical advance to themanufacturing and processing. This department for the purpose of the company’s business development tales all the adjustments or improvement to the technology. Quality assurrance 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. The organizational chart has resulted in good performance and operation. There have been good assessments on the company structure: it shows to be in charge of particular activities and they would be able to precede their fuction reasonably, which results in avoidance of overlappong and cumbersome. This helps the company to be able to take the internal and external advantages; to apply modern and advantanced technology to bring the best fruits to the whole company’s efforts. 1.3.3. Company trading results Table 2.1: Hung Long Jsc’s trading results in recent.  2004  2005  2006  2007   Total sales  2.527  3.035  5.783  8.579   Net profit  295  350  527  950   Source: Hung Long Jsc’s finalcial reports. Unit: million VND. 2.The marketing strategy of Hung Long Jsc SWOT analysis of Hung Long Jsc As mentioned in the previous parts, Hung Long Jsc has been trading in a lot of products such as TV LCD, Plasma TV, Home theater, Karaoke, etc., but with the limited time, this report focuses on the marketing strategy that Hung Long Jsc has used while dealing in TV LCD only. As well as external opportunities and threats that Hung Long Jsc faces while trading in TV LCD will be identified for the understanding of HungLong Jsc’s marketing strategy. Table 2.2: SWOT analysis of Hung Long Jsc    Good quality Competitive price Good busiess relation with partners Customers’ loyalty Viet Hai Ltd’s corporate culture  Better market growth      Limited capital Small size and small market share Not enough techniqual staff Lack of diversification in product quality Poor promotion activities.  Growing black market Firce competition   2.2 Strengths The first strength of Hung Long Jsc is that its TV LCD are of good quality. Hung Long Jsc’s TV LCD are imported from of famous companies in the world such as Samsung (Korea), LG (Korea), Sony (Japan) and Shap (Japan). These are famous brands in the world market and Vietnamese consumers highly appreciate them. Hung Long Jsc has never had any complaint about the product quality. The second strength is that Hung Long Jsc has been offering very competitive prices for its TV LCD. Hung Long Jsc has been a distributor for these firms since its early day (Samsung, LG, Sony and Shap), and although there are a lots of other companies are acting as dictributors for them, Hung Long Jsc has a certain advantage: Hung Long Jsc has always kept its prices as compeitive as possible. Its prices are among the lowest for TV LCD, usally between 7% and 10% lower than its competitors. The third strength of Hung Long Jsc is the good relation with its business pertners Hung Long Jsc has maintained it coporation with the above mentioned business suppliers for many years and has always been highly valued by them. This an advantage for Hung Long Jsc. Every years, its technical staff are offered technical traning by the foreign experts from Hung Long Jsc’s suppliers. Many if these staff also have chance to go abroad to get training. Moreover, when there is a technical problem at Hung Long Jsc, it immediately receives assistance from its partners. The forth strength of Hung Long Jsc is its customers’ loyalty. As mentioned above, beside good quality, competitive prices, and good business relation with its partners, Hung Long Jsc’s customers’ has contributed a lot of the company’s success. The after sales services of the Hung Long Jsc has been developing and improving rapidly over the years. This hepls the firm to keep in touch with the old customers. And by words of mouth, these people have brought new customers for the company. In addition, Hung Long Jsc frequently holds customer meetings in which cutomers would have chances to express or Hung Long Jsc their thinking about the company products and services, this anables the company to get market research information to built up its reputation and customers’ loyalty. The last strength is the coporate culture of Hung Long Jsc. Employees of Hung Long Jsc are infused with an open, value-based coporate cuture. The cornerstones of the company’s values are: Staff satisfaction Respect for the individual Achievement Continuous learning Hung Long Jsc’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 brainstorming about technological and life-style trends and discussing strategic priorities of Hung Long Jsc in the market. Weaknesses Besides, there are many weaknesses in Hung Long Jsc .Firstly, limited amount of capital is posing a difficulty for Hung Long Jsc. The company’s capital has’t been expanded much since its establishment. Mr Hai, the Managing Director of Hung Long Jsc, said: “we have an advantage in comparison with our opponents in terms of customer’s loyalty and agood image and reputation, but now we have a problem of capital that thinking is weakening our compeititveness”. The main source for its capital has been contributions of his family and Hung Long Jsc has had a lot of difficulties in finding other sources of capital. With regards to investment capital from banks, Vietnamese banks are shotage of investment capital, because of the lack of long-term deposits, which in turn due to the 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 Hung Long Jsc. Secondly, Hung Long Jsc’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, Hung Long Jsc has had only 4 branches dealing in TV LCD . As a result, its market share is among the lowest in the market for TV LCD in Vietnam. This is a major weakness for Hung Long Jsc, and the company has to be determined to overcome this if it is to be successful in the future. Thirdly, another weakness of Hung Long Jsc is its lack of the technical staff. Although the current technical staff of Hung Long Jsc are qualified for its technical word, but they are so few in terms of quantity. The company’s customers has never complained about Hung Long Jsc’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 Hung Long Jsc. Fourthly, lack of diversification in product quality of also a weakness for Hung Long Jsc. Hung Long Jsc has always been concentrating in high quality TV LCD such as imports from Toshiba, Sony, Shap… companies. These products have high quality but are too luxurious for a large proportion of Vietnamese customers. Besides these famous brands, Hung Long Jsc should deal in some lower quality ones, which are also less exprensive such as products from Samsung, LG, BenQ etc. by this way, Hung Long Jsc can attract low and middle-income consumers. Lastly, Hung Long Jsc has had rather poor marketing and promotion practices. Marketing and promotion pratices 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 formation and the provision of market information have not effectively been undertaken. Additionally, just like many of Hung Long Jsc’s competitors, it also has its own web site in oder to develop their images and advertising their main products. However, most of those web sites are not attractive enough and the information about their businesses is not sufficient enough to appeal to customers. Opportunities The only opportunity for Hung Long Jsc is that can have a better market growth in the near future. There are two reasons for this. Firstly, the market in Vietnam for TV LCD 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 TV LCD. This is no longer a luxurious item for a lot of people living in the city. Secondly, Hung Long Jsc is now considering expanding, as it is looking for more sources of capital. Some employees in Hung Long Jsc are thinking of investing in the company by buying its shares. Threats Despite the impressive performance so far, Hung Long Jsc is facing a host of challenges. The first barrier is black market pressure. The flourish of black market is posing a threat for TV LCD importers, in general, and for Hung Long Jsc in particular. Presently, China is the biggest supplier of black market TV LCD in Vietnam. The second barrier is that Hung Long Jsc is facing an unprecedented level of competition from both exsting competitors and new entrants. Thanks to the remarkable growth of Vietnam TV LCD recently, Vietnam id becoming a battlefied for TV LCD manufactures and importers. There are more and more TV LCD 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 Hung Long Jsc is selling. 3. Hung Long Jsc -marketing mix Product Famous international firms as products, which fundamentally provide its custommers various benefits, make TV LCD of Hung Long Jsc. These are core benefit generic product, experted product and augment product. The core benefit of Hung Long Jsc is used 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 Hung Long Jsc has a separate trademark and color. Besides, Hung Long