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Stock Company, Vinh Quang Group, Thanh Hung Automation Joint Stock

Company, ….

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

Corporate objectives

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.

Human resources

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

Business culture

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









Total expense






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.

Customer Service

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

official employees.


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

drawback and

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

unnecessary misunderstandings.

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





















22,649,182. 106.93%


20,976,824. 107.24%






101.86% 143.65% 146.33




19,028,663 20,406,499.















102.79% 110.24


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








Total revenue


Total Cash

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.






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

potential customers


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

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