Đề tài Marketing Strategy for welding and cutting products in Namviet company

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 High Quality Products Enthusiasm Services Prompt Delivery Competitive Pricing Customer’s benefits Organizational chart Board of Management Director Vice Director Vice Director Trading Department Administrative Department 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, 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 and it would cost for not high, act as secondary. 3. Price strategyEvaluation 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. 4. Advertising strategy a. Showroom (3 showrooms, one in Hanoi, Da Nang 1, 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 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 5 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 2 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. 3 team collaborators prestigious orders for when they can ask advice and technical support. CHAPTER 3: RECOMANDATIONS FOR MAKETING STRATEGY FOR THE WELDING & CUTTING PRODUCTS AND HUMAN RESOURCES SOLUTION IN NAMVIET 1. 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: 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 do a lot of works and makes professional marketing plan delayed so much such as training and self-training 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. 2. 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. 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 1. Trading Manager: 1 person 2. Admin (processing orders and contracts): 1 personIn charge: Processing orders and contracts, as part of the documentation relating to the Trading Department. 3. Technique manager: 1 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 ... Also involved in the sale. Partly responsible for sales and customer care. 4. Sales Engineer: 2 people Mainly on duty sales, consulting techniques, manual and participated in the work of warranty, maintenance (can not deep). Responsible for sales. 5. Technical Collaborators consultant on duty three techniques, conduct maintenance, maintenance for customers when needed. 3 people because the number of cases where you have someone replaced immediately. 6. Financial Analyst: 1 person7. Accounting treatment of debt Make a missio