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Chapter 2. CURRENT SITUATION OF MARKETING ACTIVITIES IN NGOCHUY TECHNOLOGY DEVELOPMENT AND TRAINING EQUIPMENT LIMITED COMPANY
Stock Company, Vinh Quang Group, Thanh Hung Automation Joint Stock
Economy – Society
Trend of social and cultural environment greatly affects the shopping way of
consumers. Due to rapid population growth and high standards of living, the
demand for products also increases dramatically. In fact, standard of living
influence on consumption situation of enterprises. Therefore, companies should care
and study cautiously to give appropriate solutions.
During the stage of developing economies, GDP per capita is increasing, for
example, in 2016, GDP reached 2,185.69 USD/person. Sector factors such as
inflation and especially economic crisis in 2008 have affected remarkably
confectionery consumption situation of consumers. Besides, the gap between the
rich and poor is a major challenge for the company since the company's products
are to serve consumers with the low and medium price.
2.1.2. Internal factors
As with all the functional areas, corporate objectives are the most important
internal influence. And the marketing staff in Ngochuy company always set
marketing objective that do not conflict with a corporate objective.
For a services business in particular, the quality and capacity of the workforce is
a key factor in affecting marketing objectives. A motivated and well-trained
workforce can deliver market-leading customer service and productivity to create a
competitive marketing advantage
E.g. a marketing-orientated business is constantly looking for ways to meet
customer needs. A production-orientated culture may result in management setting
unrealistic or irrelevant marketing objectives.
Budget for marketing activities
Table 1: Budget for marketing activities
Unit: Million dong
The proportion of the total 12.65%
Source: Financial report of Ngochuy company in 2014, 2015 and 2016
The budget for marketing activities has increased annually, accounting for
about 15% of the total cost which Marketing and Sales department manages and
allocates.With limited budget, it is quite difficult to boost marketing activities in an
effective way. Therefore, company should spend on marketing activities and
Marketing and Sales department needs to select and allocate appropriate budget for
the agencies, markets, to create vast sales network.
Current marketing activities
Marketing decides and coordinates the connection of business activities of
the enterprise to the market. It is to ensure business operations of the enterprise
oriented to market, know to choose the market, needs and wants of the customer
support solidly for all business decisions.The marketing activities of Ngochuy
company include: marketing offline activities and marketing online activities.
2.2.1. Marketing offline activities
Sending catalog by post or direct mail
Marketing staff will send quarterly catalogs to potential companies. Catalogs
not only update new product models but also offer coupons, great deals or
promotions that not everyone receives. All ordering methods are also included in
the catalog. Customers can order via mail, phone, fax,…
Participate in trade shows
Trade shows put company under the same roof as the competition. The
company can study their pitch, check out their marketing materials, and generally
gain real insight into their strategy. Of course, trade shows are also awesome
opportunities to showcase
product and market company.
The company can
network with other professionals and look for opportunities to grow by working
together. Some trade shows are regularly held in Vietnam, such as: VINAMAC
EXPO 2014, VINAMAC EXPO 2015, E&A VIETNAM 2015, …
Word of mouth marketing
When the new company comes into operation, the budget is limited so it can
not afford to pay for marketing. Consequently, the majority of customers are
through word of mouth marketing. Therefore, the network of potential customers is
now partly thanks to this marketing method.
Most of the company's customers are universities. Therefore, the marketing
department will be in charge of giving flowers and gifts on special occasions such
as opening day, Vietnamese Teacher’s Day,…. Besides, the staffs of the company
having extensive experience in expertise should create favorable conditions for the
work in the company. From contacting the customers, taking orders, performing
delivery ... are done in a professional way. The workforce is still thin, however, with
many years of experience in the industry, the hardest situations are resolved quickly
and bring satisfaction to the customers.
2.2.2. Marketing online activities
Answering questions and advising customers on website
Ngochuy Training Equipment and Technology Development Co, Ltd has an
official website called https://thietbidaotao.com.vn. There, customers can find out
information about the company; learn more about services that the company offers
and get detailed quotations for each product or service. Ngochuy has integrated
online chat tools (chat) on the website to help customers chat with related staffs.
Marketing staff using the account (username) and password (password) provided by
company log in to the website https://thietbidaotao.com.vn and stay available there.
Customers getting access to the address will find the current chat dialog box at the
right corner of the screen. There, customers will be supported and be answered
questions about the company, information or quotation services. After receiving
questions from customers, support staff based on document content is provided to
conduct response. If the support staff can not give answers to customers,
appropriate answer can be arranged through the help of the salesperson or manager.
The answer is also done right in the dialog online chat.
Facebook page management and customer service
Besides the official website, the Facebook page is also an effective
communication channel between the customer and the company. Every day, support
staff has a duty to be available at the website and the Facebook page of the
company to control situation and the interaction between customers and companies,
which is also called simultaneous online customer care. Initially, support staff log
into Facebook with the personal account. Manager will take your Facebook account
and list administrators in the " Ngochuy vocational training equipment" (“Thiết bị
dạy nghề Ngọc Huy”). Shortly thereafter, the support staff can conduct business
management and customer service in name of administrator of the page. The first
job is to write on the page. The content will be provided in written form on paper
by marketing staff. Marketing staff’s task is to type and then post it on Facebook.
Under the post, there is the comment section (comments) which allows customer
interaction or questioning Ngochuy. The mission of staff are re-interact with
customers by answering or commenting thank below. Besides comments, customers
can send a message through Messenger on Facebook. Answering customer
messages on Facebook is conducted in the same way as it is on the website.
Support in handling orders from customers
Due to the great number of customers everyday, staff is assigned more tasks
to help official staffs in handling orders from customers. Customers will choose
their product suppliers by themselves or through the suggestion of support staff,
and conduct placing an appropriate order. Customers resubmit link address of the
product with its name and model, and the quantity of each type. Based on the
information provided, the staffs confirm the order, calculate total cash, including
cost of transport and service charges.
After completing the calculation, the staff send quotation to customers.
Customers rely on that to conduct checking the information about commodity
prices and the cost stated. Then, staff notify customers of payment terms. According
to the total cost that customers purchase, they will have to settte the payments at
different levels. For small orders which are worth less than 15 million VND,
customers have to settle all payments in advance except for freights the dollar; the
rest will be paid when customers receive the goods. If the order is worth more than
15 million VND, customers need to pay in advance 70% of the contract value, 30%
left will be paid when customers receive the goods. When the customer confirm the
terms of the order one more time, the company staff, notify new orders to the
Assessment on Marketing activities
2.3.1. Advantages on marketing activities
Marketing offline activities
In general, offline marketing activities at the trade shows are well organized.
After each exhibition, the company attracted many more orders as well as potential
customers. Besides, with nice image, beautiful design, updated model continuously,
good price, good promotion, catalogs also provide the impression and satisfaction
of customers when they buy products.
With a young and enthusiastic staff, they always give customers satisfaction
when ordering and buying. That becomes one of the most influential factors in
increasing company ’s revenue.
Word of mouth marketing method can save a lot of money for marketing.
This method also bring a large numbers of customers. The method develop thanks
to many years of experience and professionalism and proficiency. Over the years,
the company does not encounter any bad claims or litigation. The company also has
never been litigated by the customers about technical specification of the goods and
packaging as well as quantitiy or delivery time, which has always been in strict
compliance with the contract between the parties. That makes customers more
satisfied with the company's products and introduce more people to know products.
Actually this is a good signal, because this will help the company consolidate longterm collaborative relationships with partners, and create trust for the partner and
Ngochuy can be more likely to be able to sign other major contracts.
Marketing online activities
It can be said that the sales website of the Ngochuy company almost
provided all the information that customers need, highly interactive easy to use and
search information. Website friendly interface, easy to use, create convenience for
customers to view the goods and ordering online. The new products are updated and
attractive on the website with beautiful banners, high interactivity.
The product groups are arranged according to the needs of customers to help
them easily choose products . All information about the product is provided full
convenient for the search, research and tracking of customers.
Ngoc huy Company is known to exploit marketing channels on social networking
Facebook to reach customers through: fanpage, groups, events.
2.3.2. Disadvantages on marketing activities
Marketing offline activities
Although, marketing activity through taking part in trade shows can attract
many orders and potential customers, the cost for this is quite expensive. Because
all shows are just held in Hochiminh city, this cost includes many kinds of fee, such
as: delivery fee, ticket fee,…
Marketing online activities
The company's website is limited to giving general information about the
items/products, allowing users to get access to and obtain information related
purchase (through contacting Mr. Đôn). This is an obvious
somewhat inconvenient for the users if they want to order directly from the website
of the company. Meanwhile, today's e-commerce development is significantly rapid,
the integrated website ordering function online has become so common and familiar
to users. Companies might want to consider integrating this function to the website
if they do not want to lose their advantage compared to competitors in the same
Facebook interaction is also not taken seriously, only few orders has been
dealed through this channel.
According to the current development trend, there are quite a few companies,
foreign partners who want to trade, exchange business with the company. However,
due to a lack of skilled workforce in foreign languages for transactions, negotiations
with foreign partners, sometimes meeting with foreign partners is still limited in
terms of communication. This can lead to time-consuming outcome or even lead to
These years, the company's marketing activities have not been respected and
taken seriously. Although the company use some marketing methods in both offline
and online activities, company still depend too much on word of mouth marketing
method. Ngochuy bear the idea of waiting inactively for customers and then
introduce the products, execute business strategic planning, trade promotion has had
no apparent effect.
The company does not have its own marketing department. They just have
marketing and sales department. On the other hand, this activity is very limited
compared to other companies. Customers mainly are long-time customers, or
customers specified by Ministry of Construction.
Business performance in the last 3 years
Table 2: Performance of Ngochuy company in 2014, 2015 and 2016
Unit: thousand Vietnam dong
101.86% 143.65% 146.33
Source : Financial reports in 2014, 2015 & 2016
Figure 2: Performance of Ngochuy company in 2014, 2015 and 2016
Performance of Ngochuy Company
Profit before tax
Source : Financial reports in 2014, 2015 & 2016
Profit after tax
As can be seen, the business situation of Ngochuy company had a slightly
increase in a period from 2014 to 2016. The growing evenly over the three years
shows the company’s effective business.
In terms of total revenue, the company's revenue in 2015 was 21,570,650
thousand VND, up 6.93% from 20,171,552.63 thousand VND in 2014. In 2016, the
total revenue was 22,649,182.5 thousand VND, up 4.9% over 2015.
In terms of cost, in 2014 the company had to spend 19,028,663.58 thousand
VND on costs and taxes. The figures in 2015 was nearly equal to that in 2016
(20,406,499.28 thousand VND and 20,976,824.25 thousand VND respectively).
The profit after tax had a tendency to rise in three years with 891,453.47
thousand VND, 908,037.56 thousand VND and 1,304,439.4 thousand VND.
However, there had great differences between total revenue and profit in three
years. Therefore, the solution should be found to reduce cost.
Chapter 3. DEVELOPMENT ORIENTATION AND SOME
RECOMMENDATIONS TO IMPROVE THE MARKETING
Future goals & development orientation in the next 5 years
Ngochuy Training Equipment and Technology Development Co., Ltd is doing
business in an increasingly complex market, competition between the economic
sectors have been becoming increasingly fierce. Finding orientations and tasks in
the fortcoming period is an objective requirement for survival and development of
the market economy
Vision: Top 10 teaching and vocational equipments supppliers in the North of
Vietnam, expanding market to the South.
Customers: Target customers are longtime customers, actively seek new
Products: focus on core products that bring more profits to the company, such
as practical models, experimental modules specialized in industrial electricity
and outsource the other less important products.
Facitilies: with favorable conditions available, the company constantly improve
the technical facilities to better serve our customers and reduce labor intensity
for officials and staffs. Such change is due to the trend of the common
commercial civilization er, if the company can not catch up, they will destroy
themselves in competition.
Expand marketing activities both in the North and South. Keeping ties with
longtime customers, proactively approach new customers to gain new contracts.
Ensure unity of direction and run the two most important areas of business and
finance for companies. Maintain and promote the autonomy of business, expansion
and development of production on the basis of a common strategy taking into
account the efficiency of investment and the scope of the assignment, the field, the
market for each unit.
Always focus on innovation, creativity, with development and share the benefits,
associated with community responsibilities, socially and always bring trust, peace
of mind for customers, partners and employees
Recommendations to improve marketing of the company
Integrate ordering functions associated with the Website and pay more attention
to Marketing, especially Digital Marketing and interaction through Facebook page
As mentioned earlier, the website of the company has not been exploited
effectively to some extents. To become more user-friendly and customer-oriented, I
highly recommend the company integrate online ordering tool right on the website.
Through that online ordering tools on the website, customers can also use the online
ordering function if registered account there. After ordering, customer orders will be
displayed in the Order Management section. Staff log into the company's account at
the website and retrieve data conduct orders. Orders including information about the
goods, quantity, supplier and contact address of the
customer. Based on the
information obtained, the business staff will be able to conduct calculation of cost
and then send an electronic mail (email) of confirmation and price of goods and
services to customers. After that, the customer will contact by email or phone that
has confirmed the order and initiate a funds transfered. Confirmed money will be
transferred to the accounts of the company.
On the other hand, interaction through Facebook is increasingly important since
Facebook has become of the most popular online communication channels all over
world. The company should make their Facebook page more active, increase the