Marketing Strategy for welding and cutting products in Namviet company
ACKNOWLEDGEMENT
First and foremost, I would like to thank you all Nam Viet Trading
and construction investment joint stock Company's leaders and staff
for their help during my study field and writing this report.
Sincere thanks should be expressed to the lecturers and professors
who have devoted their best in taking charge of the class of TATM6
- A1 Foreign Trade University
The writer’s appreciation is to Ms Tran Thi Lan Huong (M.A) for
her kind supervision and suggestions in preparation and writing the
report.
Gratefulness is to the readers also, whose feedback will help much
in improving the report.
Writer
Dam Thi Le Minh
Field study report – Dam Thi Le Minh
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Marketing Strategy for welding and cutting products in Namviet company
INTRODUCTION
In a market economy, to succeed in business, enterprises must
have effective marketing activities. Distribution strategy emerged as
an important marketing tool to help companies create and maintain
long-term competitive advantage in the market. It focused on
system administration of the company’s marketing channels in the
market for product consumption.
Start with the rhythm of development trend of the economy;
hopefully bring the best products, perfect customer service.
After many open fields and new business, because growth and
development of its future development and to create momentum for
a new powerful company, joint stock company investment and
commercial construction Nam Viet was born.
Namviet was
separated from Cavico Constructions Main Power and Service joint
stock Co,
NamViet company is a new company established in July 24,
2009 and inherited the system from the client company Cavico
CMS.
Viet Nam inherited from system customers and traditional
CAVICOVN corporation is a company built bridges and tunnels
already are experienced and very good relationships with other
companies provided industrial equipment products with the world
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Marketing Strategy for welding and cutting products in Namviet company
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.
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Marketing Strategy for welding and cutting products in Namviet company
CHARTER 1: INTRODUCTION TO NAMVIET TRADING
INVESTMENT & CONSTRUCTION JOINT STOCK
COMPANY
1.
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:
[email protected]
website: navicon.vn
b. Business field
The main industries:
Trafficking machinery, equipment and spare parts.
Building materials business
Transportation
Mining
Broker dealers and auction
Installation of machinery and industrial equipment
Construction of public works and civil
Business and production chemicals
2.
Customers information
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Marketing Strategy for welding and cutting products in Namviet company
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.
3.
Business products
a. Cement
Nam Viet Co is distributor for Dong Lam Cement Factory, Fico
Cement Factory, Phuc Son Cement Factory.
b. Industrial Equipments and machine
NAVICON supplies solutions for profession welding, cutting
field, equipments and spare parts for welding, cutting – main
supplier of Uniweld Corporation in Vietnam – famous in over the
World in welding, cutting area.
* Distribute products of famous brands as:
* Metrode offers one of the largest ranges of alloyed welding
consumables available from a single source. The product range
from those suitable for low alloy steels, through numerous
diverse steels, to those matching the performance of nickel-based
alloys.
*. ESIWELD: supply welding, cutting machine with Europe
Standard
* ESIWELD Ceramic packing tape system is breakthrough in
creative to application for welding field in order to fix fillet.,
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Marketing Strategy for welding and cutting products in Namviet company
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
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Marketing Strategy for welding and cutting products in Namviet company
4.
Business Strategy
High Quality
Products
Competitive
Pricing
Customer’s
benefits
Enthusiasm
Services
Prompt
Delivery
5.
Organizational chart
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Marketing Strategy for welding and cutting products in Namviet company
Board of Management
Director
Vice Director
Trading
Department
Administrative
Department
Vice Director
Finance &
Accounting
Department
Plan &
Construction
Department
Task of Board of Management: Board of Management responsible
for capital investment and direction and control of all activities of
the company through its meetings and the annual report from the
Director as well as periodic management.
Task of Director: Director operate directivity all activities of the
company and response to the Board of management activities of the
company's such as interest, lost, turnover, human resource and set
up a new business plan.
Task of Vice Director: Vice Directors consult to Director and Board
Manager to manage all marketing strategies for specific business
directly, in charge of all works of related departments,
implementing functions other specific tasks.
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Marketing Strategy for welding and cutting products in Namviet company
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.
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Marketing Strategy for welding and cutting products in Namviet company
CHAPTER 2: MARKETING STRATEGY FOR THE
WELDING & CUTTING PRODUCTS IN NAMVIET.
A. MARKETING RESEARCH ENVIRONMENT
I. INVIRONMENTAL MACRO ECONOMY
1. 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,
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Marketing Strategy for welding and cutting products in Namviet company
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 ENVIRONMENT
1. Internal power of Company
a. Advantages
- There is support for close attention from the Board of
Management, has potential financial
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Marketing Strategy for welding and cutting products in Namviet company
- 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....
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Marketing Strategy for welding and cutting products in Namviet company
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
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Marketing Strategy for welding and cutting products in Namviet 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.
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Marketing Strategy for welding and cutting products in Namviet company
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.
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Marketing Strategy for welding and cutting products in Namviet company
a.2. Namviet can change quickly and flexibly if Namviet sees their
marketing programs are not effective.
a.3. Namviet can be control all activity in first period so that we can
offer values better to customers.
a.4. We have a certain number of internal customers are CavicoVN
Corporation a series of partners we have good relationships.
b. Weaknesses:
b.1. The company has no market and long-term reputation
b.2. We could not advoice key staff or one of managers of company
who meet bad things as sickness, disease or even remove. ...
b.3. Flow of capitalism, which is unstable in starting period.
b.4. The welding and cutting machine market has come into
saturated, many types of welding rods, welding wire produced in the
Vietnam market
c. Opportunities:
c.1. It is necessary to disburse FDI, the country is focusing so much
on constructing infrastructure, urban works, hydroelectric power,
building factories, industrial zones ... so that there have high
demand for industrial products such as welding, cutting 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.
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Marketing Strategy for welding and cutting products in Namviet company
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.
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Marketing Strategy for welding and cutting products in Namviet company
B: MARKETING STRATEGY FOR THE WELDING &
CUTTING PRODUCTS IN NAMVIET COMPANY
I. 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:
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Marketing Strategy for welding and cutting products in Namviet company
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 CLASSIFICATION
1. 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 STRATEGY
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Marketing Strategy for welding and cutting products in Namviet company
1.Choosing main products.
With welding machines, we focus on the type of high-tech machines
or automation systems.
With cutting machines, we focus on the types of laser cutting
machines, CNC machines and the really advanced technology.
With welding consumable: focus on selling welding rods of
Metrode company
Other auxiliary equipment: paint marker pen and other equipments
using to protection clothes but the goods imported from China,
Korea or producing in Vietnam can not supply, they can only import
from Euro as Saf –fro products or other advanced equipments that
Uniweld supply with competitive prices.
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 - PUSH
Strategy mainstream strategy by pulling our direct sales is mainly
because the policies are focused care for the buying decisions and
those related impacts should use a purchase war Drag the
mainstream strategy is effective.
Push strategy: the incentives for agents to help us get where product
display, advertising products and take advantage of the storage
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