TRệễỉNG ẹAẽI HOẽC Mễ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM4 NGUYEN HOANG THANH MARKETING PLAN FOR TRUONG THANH AGRICULTURE CORPORATION TILL 2015 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT ADVISOR: Dr NGUYEN MINH DUC HO CHI MINH CITY (2010) COMMITMENT I hereby commit that the paper was written by myself with information retrieved and obtained from reliable sources and was prepared under the guidance of Dr Nguyen Minh Duc Where ideas were reproduction of other publication, the sources were clearly indicated, thus assuring no plagiarism committed HCMC, 28 February, 2011 NGUYEN HOANG THANH ACKNOWLEDGEMENT I would like to express my sincere thanks to Hiep Quang Co and Truong Thanh Corp., for its documents and guidance during my thesis My deepest gratefulness goes to the dedicated professors of Solvay Business School University of Brussels for the profound knowledge that they managed to impart to me, for the time they spent with us after class to clarify any hazy points we might have had, and for the patience they carried with them during difficult moments when we seemed to disagree with the professors My sincere thanks are reserved for Dr Nguyen Minh Duc, a senior lecturer in economics at Nong Lam University and Ho Chi Minh City Open University Without his invaluable help my paper would never have been finished as it is now I will not forget Mr Serge Bywaski and Ms Nguyen Thi Mong Thuy, our helpful academic program coordinator, who has been along with us throughout the course work, giving necessary help and enthusiastically as a medium between the class and Solvay professors HCMC, 28 February, 2011 NGUYEN HOANG THANH acting ADVISORS REMARKS The author has selected a good topic related to his expertise in agricultural business He has come up in the right direction and complete the proposed objectives The marketing plan suggested in useful, realistic and applicable to direct business activities of the Truong Thanh Corporation going well The structure of this project is well-defined with logical and sub-sections The author has worked hard to conduct field survey, collect information and analyses for this project With this study, the author has been proved that he had understood to apply achieved knowledge from MBA program to solve specific and important problems of the Truong Thanh Corporation I believe that this project has been well prepared and studied in a limited time Therefore, I strongly recommend the jury to accept his presentation to complete his master program HCM City, 01 March, 2011 Dr Nguyen Minh Duc TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER INTRODUCTION 1.1 Purpose of the Study 1.2 Scope of the Study .3 1.3 Methodology and Source of Data .3 1.3.1 Desk research .3 1.3.2 Market research 1.4 Company description CHAPTER SITUATION OF ANALYSIS 2.1 External Analysis 2.1.1 Market analysis 2.1.1.1 Market Size .6 2.1.1.2 Market Growth 2.1.1.3 Market trend .8 2.1.2 SLEPT Analysis 2.1.2.1 Social Environment 2.1.2.2 Legal Environment 2.1.2.3 Economic Environment 2.1.2.4 Political Environment .10 2.1.2.5 Technology Environment .10 2.1.3 Competitors Analysis .10 2.1.3.1 Suppliers (Bargaining Power Supplier): Medium 11 2.1.3.2 Buyers (Bargaining of Power Buyers): High .11 2.1.3.3 Potential Entrants (Threats of new entrants): High .12 2.1.3.4 Substitute (Threats of Substitute Product or Service): low 12 2.1.3.5 Industry Competitors (Rivalry among existing firms): High 12 2.1.4 2.2 Customers Analysis 13 Internal Analysis 14 2.3 Company Environment: SWOT analyzing .15 2.3.1 Strengths 15 2.3.2 Weakness 15 2.3.3 Opportunities 16 2.3.4 Threats .16 2.4 Key success factors 16 2.4.1 Company 17 2.4.2 Customers 17 CHAPTER 19 MARKETING PROGRAM 19 3.1 Marketing Objectives 19 3.2 Marketing Strategy 19 3.2.1 Targeting 19 3.2.2 Re-Positioning 20 3.3 Marketing Mix 20 3.3.1 Product Strategy 21 3.3.2 Price Strategy 22 3.3.3 Promotion Strategy 22 3.3.4 Distribution Strategy .23 3.4 Convincing target customers .24 3.4.1 Strengthen sales force team 24 3.4.2 Field action plan .24 3.5 Sales Forecast 24 3.6 Implementation and Monitoring 25 3.7 Monitoring and assessment .27 CONCLUSION 28 REFERENCES APPENDIX ABBREVIATION Truong Thanh Corp : Truong Thanh Agriculture Corporation Hiep Quang Co., : Hiep Quang Co., Ltd B2B : Business to Business B2C : Business to Customer GDP : Gross Domestic Product DDGS : Dried Distiller Grains with Soluble LIST OF FIGURES & TABLES Figure 2.1: Imported values of animal feed and ingredients in 2008 2009 (million USD) Figure 2.2: Number of animal feed production factories Figure 3.1: Sales forecast Table 2.1: Feed for livestock industry Table 3.1: Customers segmentation Table 3.2: Quality of Soybean Table 3.3: Quality of Soybean meal Table 3.4: Sales forecast Table 3.5: Milestone EXECUTIVE SUMMARY Truong Thanh Corp is a member of Hiep Quang Co., one of the leading companies in supplying feed ingredients in Vietnam Truong Thanh Corp specializes in trading ingredients for animal feed and aqua-feed production Sale volume in its first operating year achieved only 30 percent relative to proposed plan This shows that Truong Thanh Corp is carrying in business ineffectively Current physical assets of Truong Thanh Corp include four depots and one manufacture factory to produce soybean In order to support Truong Thanh Corp carries out it business for a stable development, we have done a marketing plan for it till 2015 with following contents: - To 2015, the objective of Truong Thanh Corp is covering up percent of market share (50,000 tons/years) of soybeans and becoming one of five leading companies in soybeans supply in Vietnam; - Major products include soybeans (about 70 percent of sale volume) and soybean meal (about 20 percent of sale volume); - With products of soybean and soybean meal diversified based on quality and price, Truong Thanh Corp still develop soybean products serving human nutrition segment (soybean number 1); - Re-segmenting toward target customers are small production factories, dealers, wholesaler, marketing strategy is business to business (B2B): - Re-positioning Truong Thanh brand based on professional workforce, diversifying products with good quality and reasonable price; Inter-relationship (society) marketing strategy is emphasized with maintaining long business relationships as well as establish good relationships to attracting new customers via an enthusiastic sale team Sale Forcast of Truong Thanh Corp till 2015 Others Sale Forecast Soybean meal 50.000 Soybean 40.000 30.000 20.000 10.000 2011 2012 2013 2014 2015 year 25 Table 3.4: Sales forecast Sale Forecast Total Volume ( Tons) Soybeans Soybean meal Others Total Revenue ( US D ) Sales & Marketing Expenses Sale Expenses Marketing Expenses 2011 2012 2013 2014 2015 30.000 34.500 39.250 45.500 50.000 20.000 23.000 25.500 30.000 35.000 7.000 8.000 8.750 9.000 10.000 3.000 3.500 4.000 4.500 5.000 15.000.000 17.250.000 19.625.000 22.750.000 25.000.000 220.465 226.933 197.085 200.571 211.765 122.791 97.674 134.933 92.000 146.979 50.106 163.429 37.143 172.549 39.216 Sales forecast tons per year 50.000 40.000 30.000 20.000 10.000 2011 2012 2013 2014 2015 year Figure 3.1: Sales forecast 3.6 Implementation and Monitoring The Milestone table (Table 3.5) identifies the key marketing program We will be tracking plan vs actual plan for each of these programs and discussing our monthly marketing meetings The program will be revised each year This years plan includes only the programs to be implemented this year 26 Table 3.5: Milestone PHASE & MILES TONE Preparati on Commission policy PLANE PLANE D D START DEAD DAY LINE 01-Jan- 30-Jan11 11 01-Jan- 10-Jan11 11 Trainings about selling skills, product information 01-Feb11 KEY PEOPLE CONCERN ACTION Sale manager Recruitment people for Sale Force Sale manager Product Specialists & Sale Team Sale Team Field action plan Sale Team Monthly review meeting Sale Team, Logistic team, Producer Team Create special team to train on how to enhance customer 01-Marsatisfaction or customer 11 relationship Assign one person as key account executive -Daily calling phone to 01-Febcustomer, weekly plan to visit 11 target customers Explore & customize their needs Offer the contracts Coordinate with manufactory manager about Inventory, producer plan Coordinate with logistics team to Delivery on time Evaluate and correct the field action plan Review & evaluate about logistic & product quality Review key customer relationship management Evaluate achievements vs objectives 01-Feb11 30-Mar11 01May-11 31-Dec11 31-Dec11 27 PHASE & MILES TONE Commun ication Plan KEY PEOPLE CONCERN Sale Team ACTION Creating product brand awareness Participating in Vietstock fair each year PLANE PLANE D D START DEAD DAY LINE 01-Feb11 31-Dec12 3.7 Monitoring and assessment Monthly review: Evaluation and correction Yearly business review (kick-off meeting): Identify the gaps and update the plan Post-purchase surveys: Brand awareness/recognition level is assessed through surveys and feedback through sign, symbol, name, or design that can be tagged as ownership label of Truong Thanh brand awareness survey can be conducted by using online survey, e-mail questionnaires, or direct mail Planning Phases & Milestones Tracking Planned deadline Problems to solve Recommendations Decisions Revised deadline 28 CONCLUSION Truong Thanh Corperation is doing business ineffectively as sale volume in its first year achieved just 30 percent of the proposed target To catch up to percent of soybean market, marketing plan is suggested to focus on soybean products diversified with good quality and reasonable prices, using inter-relationship marketing strategy followed by professional workforce The marketing plan for Truong Thanh Corp till 2015 is expected to help the company overcome current difficult situation and has the prospective development in a right direction REFERENCES Books Michel Porter, (1998), The competitive strategy, New York, The Free Press Philip Kotler, Gary Armstrong, John Saunders, Veronica Wong, (2001), Principle of marketing, (third European Edition 2001) Pearce and Robinson, (1997), Strategic management Lectures Prof Clare Gruslin, (2008), Market Research Prof Jean-Pierre Aerts, (2009), Bussiness & Marketing Strategy Prof Jean-Pierre Baeyens, (2009), Marketing Strategy Prof Marianne Claes, (2010), International marketing Strategy, 2nd, 2010 Prof Patricia Garcia-Prieto Chevalier, (2009), Organizational Behavior and leadership Websites www.profeed.com.vn www.hiepquang.com.vn www.vietlinh.com.vn www.qdfeed.com.vn APPENDIX QUESTIONNAIRE SURVEY OF THE IMPACT OF FACTORS ON PURCHASE DECISION OF INGREDIENTS FOR FEED PRODUCTION Company name: Capacity of factory: Total staff: Question 1: What is business type of your company? Trading & Commercial Services, Ltd Feed production Company Production Trading., Ltd Farmer Question 2: Have you ever heard about Truong Thanh Agriculture Corporation? No Question Yes Question Question 3: How you know about Truong Thanh Agriculture Corporation? By introducing of partner companies By directly contacting of employee of Truong Thanh Corp By telephone directory, 1080 switchboard, information in the Internet Others: Question 4: Do you use products of Truong Thanh Agriculture Corporation? No Question Yes Question Question 5: Please tell us about level of your satisfaction with supplying ingredients and services of Truong Thanh Agriculture Corporation No ISSUES Dissatisfied Satisfied Working style, working attitude, enthusiasm to serve customers 10 Supporting services, technical treatment and quality after delivering products 10 Quality of ingredients is stable and assured 10 Delivery time 10 Reasonable and competitive price 10 Ability to meet customer requirements with regard to provide information about the market, predict fluctuation of raw ingredients, efficiency of replacement ingredients, or other relevant advices 10 Question 6: Please tell us your interests about following issues for a ingredients supplier No ISSUES Not important Very important Financial capability and reputation of the supplier 10 Professional and enthusiasm servicing style of staff, managers 10 Quality of ingredients is stable and coherent 10 Ingredients price 10 Delivery time 10 Provided ingredients must be achieved technical standard as well as ensured safely for producing and checked in accordance with regulation of state 10 Ability to meet customer requirements with product, new ingredients, replacement ingredients when customers require 10 Technical supporting, services before and after sale (Method of receiving and trouble shooting abilities for technique, quality) 10 US SOYBEAN Grade US No Foreign ingredients: 1% max Damaged kernels: 2% max Splits: 10% max Other colour: 1% max Moisture: 13% max Test weight: 54 lbs ARGENTINA SOYBEAN MEAL Protein: 47% Moisture: 12.5% max Fat: 2.5% max Fibre: 3.5% max Sand and silica: 2.5-3% max US SOYBEAN MEAL Protein: 47% Moisture: 12.5% max Fat: 2.5% max Fibre: 3.5% max Sand and silica: 2.5-3% max INDIAN SOYBEAN MEAL Protein: 46% Moisture: 12.5% max Fat: 2.5% max Fibre: 3.5% max Sand and silica: 2.5-3% max RESULT OF SURVEY How you know about Truong Thanh Corp Frequency By introducing of partner companies By telephone directory, 1080 switchboard, information in the Internet By directly contacting of employee of Truong Thanh Corp Total Percent Valid Percent Cumulative Percent How you know about Truong Thanh Corp 30 30 30 30% 3,3 3,3 33,3 3.3% 66.7% By introducing of partner companies By telephone directory, 1080 switchboard, information in the Internet 20 30 66,7 100 66,7 100 100 By directly contacting of employee of Truong Thanh Corp Do you use products of Truong Thanh Corp Businesses No Yes Total 12 18 30 Percent 40 60 100 Valid Percent 40 60 100 Businesses using products of Truong Thanh Corp 100% 80% Use (18) 60% 40% 20% Not use (12) 0% Businesses Please tell us about level of your satisfaction with supplying ingredientss and services of Truong Thanh Agriculture Corporation Supporting services, technical treatment and quality after delivering products Working style, working attitude, enthusiasm to serve customers Very dissatisfied Dissatisfied Normal Satisfied Very satisfied Total 8 18 Quality of ingredients is stable and assured 0 18 0 12 18 Delivery time 0 12 18 Reasonable and competitive price 0 13 18 Ability to meet customer requirements with regard to provide information about the market, predict fluctuation of raw ingredients, efficiency of replacement ingredients, or other relevant advices 0 15 18 Statistics of Satisfaction Ability to meet customer requirements with regard to provide information about the market, predict fluctuation of raw materials, efficiency of replacement materials, or other relevant advices Reasonable and competitive price Delivery time 13 20% Normal 8 10 Dissatisfied 12 0% 12 Supporting services, technical treatment and quality after delivering products Very dissatisfied Quality of materials is stable and assured Working style, working attitude, enthusiasm to serve customers 15 40% 60% Satisfied 80% Very satisfied 100% Please tell us your interests about following issues for a ingredients supplier Financial capability and reputation of the supplier Very unimportant Unimportant Normal Important Very important Total 0 16 11 30 Professional and enthusiasm servicing style of staff, managers 0 11 16 30 Quality of ingredients ingredients Delivery is stable price time and coherent 0 18 10 30 0 21 30 0 28 30 Provided ingredients must be achieved technical standard as well as ensured safely for producing and checked in accordance with regulation of state 0 22 30 Ability to meet customer requirements with product, new ingredients, replacement ingredients when customers require Technical supporting, services before and after sale 16 0 30 5 12 30 Statistics of Importance Technical supporting, services before and after saling 5 Ability to meet customer requirements with product, new ingredientss, replacement ingredientss when customers require 8 Provided ingredients must be achieved technical standard as well as ensured safely for producing and checked in accordance with regulation of state ingredients price 16 22 Delivery time 28 21 Quality of ingredients is stable and coherent Professional and enthusiasm servicing style of staff, managers 18 10 11 Financial capability and reputation of the supplier 16 16 0% Very unimportant 12 20% Unimportant 40% Normal 60% Important 11 80% Very important 100% ... customers 3.3 Marketing Mix For its marketing strategy, Truong Thanh should focus on inter-relationship (via words of mouth) marketing philosophy and try to maintain long business relationships and create... in order to identify factors affecting purchasing decision-making the process customers and to get staff’s comment for a new marketing and business plan 1.4 Company description Truong Thanh Agriculture. .. market, focusing on the corporation s business in feed ingredients supplying This study does not analysis for activities in Manufacturing and logistics of Truong Thanh Corp 1.3 Methodology and Source