Expert on producing wooden furniture Marketing and export to Philippines and Taiwan Market Content: - Introduction of the Enterprise - Introduction of the products, name and address of the suppliers - Market research - Data collection - Data analysis - Difficulties - Solutions of handling the difficulties - Promotion solution - Deployment of the plan of approaching and sales - Average revenue - Price and profit calculation - Product distribution - Competitiveness analysis Introduction of the Enterprise HUNG LONG INDUSTRIAL & TRADING CO.,LTD Expert on producing wooden furniture Address: No.125 Van Cao Street – Ba Dinh dist – Hanoi Phone: 043 761 5783 Fax: 043 715 922 Email: contact@dogohunglong.vn Webstie: htt:/www.dogohunglong.vn Hung long industrial & trading co.,ltd was established in 1999 with its former, Hung Long wooden furniture workshop Throughout the entire operation and development period, the company has built its solid trademark, Hung long wooden furniture with the trust to the customers, partners Hung Long has become the leading enterprise in term of supplying wooden household and office furniture in Vietnam market With the investment in building the modern factory, applying advanced technology, Hung Long Industrial and Trading co., ldt has supplied the full ranges of models and styles, meeting the demands of customers Up to now, in addition to two big showrooms displaying and selling products in Hanoi, the company has broadened the display showroom system to Hai Phong, Hung Yen, Bac Ninh, Quang Ninh, Ha Giang and so on with the country-wide distribution system Hung Long’s Wooden furniture Hung Long wooden furniture is made from natural wood having high aesthetic and performance value like Dalbergia bouruana gagu, ebony, cedar, mahogany and so on, suitable for the production of high- class furniture in office, villas, restaurants, hotels and resort The products are designed harmonically combined between the modern style and the traditional style, between the eastern culture and western culture Each product is an artistically child from the clever hand and experiences of enthusiastic craftsman with passion on art The guideline" Both wood and paint are excellent” Hung Long Enterprise always sets the quality of the products to the high position, pays attention to understand the customer demands and step by step make perfect the services The company commits to the customer rights with the special policies of sales and after-sale services Beside the direct selling method, the company has developed the modern and convenient economic commercial method at the official website http://www.dogohunglong.com.vn so that the customers can easily find the models and order products Hung Long wooden furniture has been used with the trust and favor from customers and partners The trust from customers has created the core value in the operation goals of the company It becomes the motive force for the effective and sustainable development Not restricted to the success in domestic market, the company has an idea of developing international market, firstly from Asian customers with the focus on Philippines and Taiwan Getting these above information, our expert group has met the management board of Hung Long Industrial and Trading Co.,ltd to discuss about the strategy of marketing wooden furniture into the above countries The strategy of marketing Hung Long wooden furniture to the International Market in the period 2011-2012 Introduction of products, name and address of supplier - Supplier: Hung Long Industrial and Trading Co.,ltd - Service: Wooden furniture supply - Areas of Supply : + Asean countries, Japan, South Korea and Taiwan + Focused market: Philippines and Taiwan - Email: contact@dogohunglong.vn - Webstie: htt:/www.dogohunglong.vn - Phone: +843 761 5783 - Fax: +843 715 922 Market research - Customers: in Philippines and Taiwan + Households, offices, restaurants and hotels + Furniture company + Shops and distribution agents +Brokers + Terminal enterprises - Targeted customers: Terminal enterprises, shops and distribution agents Data collection - Philippines: + Area: 300000 km2 in South East Asia + Population: 94,01 million + Culture somehow similar to Vietnam + Political situation: Not stable + Wooden furniture using trend: Relatively popular + Furniture shops: Relatively high + Wooden furniture enterprises: About 15000, mainly small and medium scope (Source: www.worldfurnitureonline.com/…) + Information Technology section: Highly developed + Infrastructure: Good, especially sea transport + WTO membership on 1/1/1995 + Vietnam relationship: Good, both are in Asia               Philippine Map        Philippinne national flag              Philippinne national  flower - Taiwan: + Area: 36000 km2 to the Eastern- Southern China + Population: 23 million + Culture somehow similar to Vietnam + Current political situation: Not stable + Wooden furniture using trend: Very popular + The number of furniture shops: High + Wooden furniture enterprises: popular but mainly on industrial furniture + Information Technology section: Very developed +Infrastructure: Good and convenient in term of sea transport + WTO membership on 1/1/2002 + Relationship with Vietnam: Very good, both belong to Asian group                Taiwan map                            Taiwan national flag                     Taiwan capital Data analysis + Philippines is the member of Asian group, so the relationship with Vietnam is quite good At present, Taiwan also has a good commercial relationship with Vietnam + Many similar characteristics in term of culture + Three countries are of WTO + Popular consumed products + The natural wooden furniture industry not developed widely + Good infrastructure + Cheap labor cost in Vietnam Difficulties - Language difficulty + Language barrier cause difficulty in communicating, researching market and advertising and marketing products to the customers + The customers would not understand the value, quality and the convenience of the products - Unstable political situation in Philippines and Taiwan - The differences in culture of furniture decoration - The limited business capacity of the Enterprise + Small business scope + Not diversified product ranges - The enterprise itself has not had the far vision and the long-term strategy - The production is implemented with so many unskilled workers + Low qualification of the workers + Product defects + Not capable of meeting the large-value order + Low delivery - The current outdated technology The advanced technology will require high investment, so leading to: + High price, low competitiveness - The State has not issued the investment policies for this section - The exchange rate between Vietnamdong and Taiwan and Philippines currencies - The high interest rate of Vietnamese Banks affects the business activities and product price/ - The requirement of capital investment in leasing business places, infrastructure system of the focused countries - Risks during transportation - The domestic strong market of Taiwan and Philippines bears the risk of failure in competition - The technical barriers to limit the import - The policies of domestic product protection in the foreign countries - The unfair competition of foreign enterprises                                                Visual illustration of survival war Solutions - Improve the foreign language ability for the staffs of the enterprise, especially the expatriated staffs working in the oversea offices In addition to the main staffs of the enterprise, the native staffs with qualification and good marketing ability should be recruited - Work closely with Vietnam embassy to have preventative plan if any political problem occurs - Finding carefully about the custom, habits of using furniture of people in two countries + Which products are customer’s demands? What are the customer’s feedbacks? Are they respected? + Reform products to match the culture of the two countries + Choose the focused products which are used popularly in the two countries +Bring to the two countries natural wooden products expressing the spirit and feng shui factors ( favored by Taiwan people) - Rebuild the long-term development strategy of the company, in which the export to the foreign market is given priority - Increase the enterprise scope - Renovate the manufacture technology and enhance the training for skilled worker - Propose to the State for the preferential policies on export tax and long-term loan with low interest rate - Use the high liquidity and stable currency as the currency in the contracts - Search for trusty enterprises, shops in the two foreign countries to co-operate or act as distributors of the products + Mobilize the capital source + Use up the business place, infrastructure of the two foreign countries + Take the advantages of wide knowledge of the foreign enterprises + Overcome the language difficulty between the sellers and the buyers Contract signing - Choose the professional, reputed delivery agents with advanced transportation means Work with the one-way transportation means to reduce the delivery cost - Use up the advantages of available natural wood sources in our country to enhance the competitiveness - Manufacture the sophisticated products with advanced characteristics Reduce the immediate stages, reduce the reduction waste to reduce prices - Finding about the technical barriers of the foreign countries to improve the production process Internationalize the manufacturing technology - Build the trademark and register the international copyright for the enterprise’s products - Study and understand the foreign country’s law code, establish the intensive legality department - Enhance and advertise the slogan “ Hung Long wooden furniture, both wood and paint are excellent” Promotion method - Promotion through terminal enterprise, agents, shop and joint venture with foreign countries’ enterprises to sell products + Pay attention to the attracting strategies and maintaining the loyalty of customers + Calculate the bonus rate and establish the suitable incentive policies + Attractive bonus + Small promotional items to the agents/ retailers + Approach the retailers through marketing staffs + Recreation activities, diner invitation - Commercial promotion through mass media, considering detail aspects, collecting key factors in creating public preference to the products, services or the enterprise itself - Use mass media means + Advertise on television, radio + Magazines, mails - Advertise on specialist magazines, send letters to enterprises, associations, conferences, fairs - Communicate directly to shops, showrooms; Call by telephones or visit individually; Video programs Deployment of the plan of approaching customers and selling products - Define the cost of advertisement and approaching customers - Define the importance of business relationship, private relationship, visits and so on for maintaining the revenue - Organize the product sales by these following forms + By staffs of the enterprise + By immediate agents + By local distributors with bonus - Attractive bonus for agents, ideal terminal enterprises and members of the joint venture - Advertise on the public mass media, internet - Organize the promotion programs to attract customers - Recruit the selling staffs good at marketing, foreign language and patient, active, enthusiastic, professional and capable of maintaining good relationship - Have incentive policies, awards, and preferential policies to selling staffs to keep them - Make the table of monthly marketing cost and sales - Make a separate table of the advertisement and promotion cost                                         Wooden furniture Average revenue - The average revenue information is an useful tool for managing and calculating the cost - Define the number of approaches, the duration needed to have a contract - Define whether having the next contracts with the previous customers or not with much effort or not - What is the total revenue from the effort? - What is the average selling revenue? How much is needed to have the “average revenue” per each sale? - The average cost for one contract multiple with the total number of sales contracts is equal to the total cost of marketing - Compare the average cost for getting one contract to that of the overall market - In case the selling cost fluctuates within large range, another plan should be made instead Define the price and profit - The price of one product is defined by multiplying the direct cost with a rate and comparing with the competitors’ price From the comparison results, we will set a standard price - Finding how the customer are sensitive with prices, they buy at large quantity so as to consider the reduction of price - The special price reduction policy is used as a selling tool - The financial support policy should be considered: consignment, discount, credit, renting and buying, contract transfer - The profit is calculated in percentage of price Product distribution - The products are distributed to customers: + Households, offices, enterprises, hotels, restaurants order by themself + Furniture implementing enterprises + Shops and agents + Brokers + Terminal offices - A representative office and branches are located in each country according to the customer number and geographical region - Check which factors among packing, brand labeling or shipping increase the cost, so that the price of products can be recalculated - Build service teams to assemble free for customers, if the customers buy a large quantity, there should be a plan to satisfy customer’s requirements Competitiveness analysis - Establish a division specializing in studying about the competitors, finding about their organization, promotion, recruitment, evaluation, sales, and distribution, then compare with the Enterprise to have the best solutions of adjustment and competition - Establish a division consulting the legality - Establish a free design consulting division - Sign the principle contracts of delivery - Choose the good and reputed enterprises in the foreign countries to co-operate, enhancing the competitiveness Estimate the sale revenue - According to the order revenue, contract revenue, make a summary table of revenue - Establish a division specializing in market research so as to make a suitable plan, - Build a plan for the promotion program via mass media mean Profit from an effective marketing strategy THANKS FOR READING! -The end- ... long-term loan with low interest rate - Use the high liquidity and stable currency as the currency in the contracts - Search for trusty enterprises, shops in the two foreign countries to co-operate... + Pay attention to the attracting strategies and maintaining the loyalty of customers + Calculate the bonus rate and establish the suitable incentive policies + Attractive bonus + Small promotional... What is the average selling revenue? How much is needed to have the “average revenue” per each sale? - The average cost for one contract multiple with the total number of sales contracts is equal