ACKNOWLEDGEMENTS With the permission of Vietnam National University of Agriculture, Faculty of Accounting and Business Management and Advanced Training Program on Agribusiness Management I carried out to implement the Undergraduate Thesis about: “Current situation of the ceramic product’s consumption in Bat Trang pottery village” If the preparation of the report is a family effort, the quality of the final product is a reflection of the dedication of all the family members First and foremost, I would like to thank to the advice and guidance of Dr Pham Thi Huong Diu who had directly guided and provided me with useful advice in practiced period Without her, I could not complete my thesis Besides, I would like to thank to Bat Trang Commune for giving me permission to the internship at the village, providing me with a good environment and useful data to the necessary research work Last but not least, I highly appreciate the support of our seniors from Advanced Agribusiness Management batch K55, K56 who had suggested me much on how to take good advantages of the internship and how to write the reportwell This internship has really given me a lot of precious experiences After three months of feeling excited, anxious and satisfactory, I finished my trip successfully at last Hanoi, August 2016 Student Nguyen Phuong Thao TABLE OF CONTENTS i ACKNOWLEDGEMENTS i TABLE OF CONTENTS ii LIST OF TABLES v LIST OF FIGURES vi CHAPTER INTRODUCTION .1 1.1 Rationale of the study 1.2 Research objectives 1.2.1 General objective .2 1.2.2 Specific objectives .2 1.3 Scope of the study 1.3.1 Objects of the study 1.3.2 Scope of contents .3 1.3.3 Scope of time .3 1.3.4 Scope of space 1.4 Research questions CHAPTER LITERATURE REVIEW 2.1 The definition, significance and role of the product consumption .4 2.1.1 The definition of consumption 2.1.2 The role of consumption 2.2 The contents of consumption 2.2.1 Market research 2.2.2 Formulating strategies and consumption product plans 10 2.2.3 Research of distribution channels 13 2.2.4 Promotion policy .16 2.2.5 Implementing product sales plan .17 2.2.6 Customer service .17 2.2.7 Assessing the product consumption process 18 2.3 Factors affecting the products consumption of craft villages 18 ii 2.3.1 External factors 18 2.3.2 Internal factors 20 2.4 Empirical evidences 23 2.4.1 Pottery production in Vietnam 23 2.4.2 The related studies 26 CHAPTER METHODOLOGIES 27 3.1 Data collection 27 3.2 Data processing and analysis 27 3.2.1 Methods of descriptive statistics .27 3.2.2 Methods of comparison 28 3.2.3 SWOT method 28 CHAPTER FINDINGS AND DISCUSSION 30 4.1 Characteristics of the study area: Bat Trang Pottery Village .30 4.1.1 Geographical location 30 4.1.2 The history and development of Bat Trang Village 31 4.1.3 Status of population and labors .33 4.1.4 Socio-economic situation 37 4.2 Current situation of consumption of ceramic products in Bat Trang village .38 4.2.1 Results of the ceramic products consumption in surveyed household 38 4.2.2 The situation of consumption by geographic regions 47 4.2.3 The situation of consumption by customer’s categories 51 4.2.4 The situation of consumption by distribution channels 51 4.2.5 Market research of households in Bat Trang village .54 4.3 Factors affecting the consumption of ceramics products in Bat Trang village 56 4.3.1 The external factors 56 4.3.2 The internal factors 61 4.4 SWOT analysis for Bat Trang households 63 4.4.1 SWOT analysis 63 iii 4.4.2 SWOT strategy 64 4.5 Orientation and solutions to improving the consumption of ceramic product in Bat Trang village 65 4.5.1 Orientation .65 4.5.2 Solutions 66 CHAPTER CONCLUSION AND RECOMMENDATION 70 5.1 Conclusions 70 5.2 Recommendations 70 5.2.1 For State Government 70 5.2.2 For Local Government 71 REFERENCES 72 APPENDIX 73 iv LIST OF TABLES Table 4.1 Status of the population- labor of Bat Trang Commune 34 Table 4.2 Classification of hiring labors at Bat Trang village in years 36 Table 4.3 The basic situation of the household surveyed in 2015 39 Table 4.4 The quantity of main ceramic products in years 44 Table 4.5 The price of main ceramic products in years 45 Table 4.6 The revenue of Bat Trang ceramic consumption in years .46 Table 4.7 The quantity of main market consumption in 2015 48 Table 4.8 The result of ceramic consumption by geographic region in value 50 Table 4.9 The revenue of ceramic products consumption by distribution channels in years 52 Table 4.10 The evaluation of customers about Bat Trang products in 2015 55 Table 4.11 Prices of ceramics product in the consumer market .59 Table 4.12 The production cost of ceramic products 60 in Bat Trang and Phu Lang .60 Table 4.13 SWOT analysis for Bat Trang household’s ceramic production 63 Table 4.14 SWOT strategy for Bat Trang households 64 v LIST OF FIGURES Figure 2.1 Model of product sales Figure 2.2 Product life cycle 10 Figure 2.3 Types of distribution channels 15 Figure 4.1 The rate of each consumption channels of the households ceramic production in domestic market in 2015 52 vi CHAPTER INTRODUCTION 1.1 Rationale of the study Craft village is an important part of our country’s economy and bring significant benefits to economic and social The development of the village is an important contribution in the growth and economic restructuring Craft villages is not only contribute to poverty reduction by creating jobs and increasing incomes for workers, but also the way attracting tourists and foreign In addition to socio-economic, the village still preservers the cultural values, flair or skill crystallized in each product According to Ministry of Agriculture and Rural Development, now the country has about 4800 craft villages Products of Vietnam craft village is consumed domestically and exported to over 160 countries with exports amounted to 1.6 billion USD (2014) Especially export ceramics cover about 488 million USD contributed to income generation for the people change the rural areas “I wish I could marry you/ I will buy Bat Trang bricks to build our house” are the beautiful folk words honoring Bat Trang ceramic & pottery quality, the pride of northern Vietnam Bat Trang, a small village in the north of Vietnam Why is its name popular to most tourists to northern Vietnam? The answer is its ever famous ceramic and pottery products of high quality If you have known about Vietnam, you may not be surprised that Bat Trang’s vases, bowls, dishes, and many other kinds of ceramic products have been exported worldwide Its popular foreign markets are Japan (under the brand "Kochi (Giao Chi) ware"), the Netherlands, Britain, Portugal, Southeast Asia, etc As time went by, the village’s products have developed and become well known for the best quality, style and glaze, both inside and outside of the nation Many of these are now customized for aristocratic families and religious needs Each year, the balance problem between production and consumption, between domestic and foreign consumption The question is how to villages arising in the consumption of ceramic products? Accelerate the speed of consumption, point out the strengths, weaknesses, opportunity and challenge of villages Before the advantages and disadvantages require solution appropriate and timely to develop the village, promoting the sale of these products village Derived from all reason, I decided to choose the topic: “Current situation of the ceramic product’ s consumption in Bat Trang pottery village ” Research topic provided a scientific basis for the proposed solution in order to preserve and developed craft villages preserve traditional culture and improved life condition for local people to contribute to the strong oil industrialization and modernization of agriculture and rural development and international economic integration 1.2 Research objectives 1.2.1 General objective To discover the current situation of the households’ ceramic products consumption in Bat Trang pottery village, thereby proposing solutions to promote the consumption of ceramic products in Bat Trang village 1.2.2 Specific objectives o To overview the theory and practice of consumption and ceramic products consumption o To study the current situation of ceramic products consumption in Bat Trang Pottery Village o To analyze the factors affecting on the consumption activities o To propose solutions to boost consumption of ceramic product in Bat Trang Village with higher efficiency 1.3 Scope of the study 1.3.1 Objects of the study Theory and practices related to the ceramic product’s consumption in Bat Trang village 1.3.2 Scope of contents Current situation of the ceramic product’s consumption in Bat Trang Village 1.3.3 Scope of time The data collected in the period of years (2013-2015) The final internship is carried out within months, from December 2015 to August 2016 1.3.4 Scope of space The study is conducted in Bat Trang Pottery Village 1.4 Research questions These research objectives can be specified by several main research questions: - What is the theoretical framework of the state of the consumption? - What is the current of the consumption situation in Bat Trang Pottery Village? - What are factors affecting consumption ceramic products? - What are solutions to ceramic products consumption in the future? CHAPTER LITERATURE REVIEW 2.1 The definition, significance and role of the product consumption 2.1.1 The definition of consumption Product consumption is the value of goods and metabolism morphological value of goods from goods to money; the product is considered to consumed when customers accept payment for goods Product consumption is the final stage of the process of production and business, are important factors determining the survival and development of enterprises (Pham Van Duoc, Dang Kim Cuong 1999) Consumption of products to fulfill the purpose of producing goods are products manufactured for sale and profit In the market economy, every enterprise is an independent economic entity on their own and must solve three fundamental problems of economic organization Profit is the goal of every business survival Want to be profitable; enterprise must consume the goods, products suit the needs of the market To survive and develop long-term, each enterprise should determine the strategy of selling products Consumption policy-oriented with business objectives and system solutions, measures to achieve the goal set out in the consumption The purpose of the strategy of selling products usually includes: products to consume, increase sales, maximize profits, expand markets, enhance the reputation of the business Product sales strategy of a business help enterprise capture customer needs, thereby proactively deal with every movement of the market, help enterprise expand new markets, planning terms sales, revenue, profit, distribution channels and customers Product sales strategy plays a significant role in determining the success or failure of the business strategy 2.1.2 The role of consumption Consumption means the direct and final use of goods and services in the satisfaction of human wants People many consume such single-use goods as deliberately good or bad Classified according to the quality of products have different selling price due to the same channel of different channel, because product prices affect sale Due to product quality, while promoting export quality leather products more than domestic, the main concern to many more patterned types So it can range from minimize to maximize A number of factors affect the quality of ceramics products such as: - Clay ceramic materials as the main, does not guarantee quality, not old - Improper drying techniques, drying ceramic product such as oven temperature is too high or too low…will affect the enzyme, the shape of the product - Other workmanship on the product figurative art pottery was not diverse - Not professional training  Promotion activities All products sold on the market need to promote The manufacturing facility at Bat Trang pottery has introduced strategy ceramics product of their establishments to the hand of consumer; specify feature, cultural, symbolic…of products As the establishment of its own website for its basis only in Bat Trang ceramic pearl production facility has its own websites From the website promotion, Bat Trang is known better than other And this directly affects consumption in Bat Trang ceramic 4.4 SWOT analysis for Bat Trang households 4.4.1 SWOT analysis The table will show more details about advantage and disadvantage of Bat Trang households have Table 4.13 SWOT analysis for Bat Trang household’s ceramic production Strengths (S) Weakness (W) Bat Trang Village is a longstanding Technology production was old, not tradition much change 61 The production of ceramic skilled, skill Product packing is poor craftsmanship, extensive experience in Product quality has been uneven, heavy production; many young artist weight The product is quite unique village Marketing activities to support sales undeveloped Level headed management is weak, lack of understanding of international law Association produced no pottery village, does anyone still strong Opportunities (O) Economic growth( increasing income Cost of production tends to increase Threats (T) The ceramic traditions can be passed on of the population) to another village Global integration Sample products are being copied Trend of handicraft product Source of risk-fuel depletion consumption increased Lack of the attention of local authorities 4.4.2 SWOT strategy Table 4.14 SWOT strategy for Bat Trang households Combine (S) – (O) Combine (W) – (O) 62 Boots the production of high quality Innovation production technology, products (S1, S2, S3, S4, O1, O2) the To scale production of pottery meet uniform (W1, W3, O3) the market demand (S1, S2, S3, O2, O3, The new model changes frequently, O4) how good the product packing to products have good quality reduce damage, breakage (W2, W3, O2, O3) Build a team , legal counsel, the management, market research and development (W4, W5, O3, O4) Recommendations local government to pay more attention to traditional craft, building ceramic production association of village (W6, Combine (S) – (T) There are more police to encourage W7, O2, O3) Combine (W) – (T) Improving the quality of products, investment in the village (S1, S2, S3, changes from designs (W2, W3, T2, T1, T2) T3) There are reasonable production Pay attention to the innovative technology, radical savings in production production and lower production costs research, new product development technologies, market (S2, S3, S4, T3, T4, T5, T6) (W1, W4, T2, T3, T4, T6) 4.5 Orientation and solutions to improving the consumption of ceramic product in Bat Trang village 4.5.1 Orientation Based on the demand for ceramics products of the current market and the next year, the combined plans of producers as the basis for design-oriented or 63 consumption of ceramic products from 2013 to 2015 of the production facility in Bat Trang ceramic follow: - Maintain the market, understand natural climatic conditions of each region, have market research for each region…so that production planning for timely and complete - Plan of consuming a products primarily of producers in the coming years: + As a planed and expected by all producers of ceramic, in the next few years, producers will expand production scale, product design, quantity and quality of products The potential market will be overseas market Because income levels and living standards of foreign country are higher than income levels and living standard in Vietnam The producer have production plans, simultaneously studied on the market to meet the growing products line with consumers needs of individual regions, local, national and ethnic Hanoi is also a potential market, the former due to the specialized household produces simple ceramic products such as bowls, cups, ceramic picture…so the market for provinces and cities North and South still limited And as planed in the coming years the producers will provide ceramic products for all provinces need to use pottery products across the foreign country + To accomplish the task on right now, producer have to collect test, recruit skilled labors, quality materials to produce goods, beautiful skin yeast, unique pattern, alternative, good visual to attract the attention of customers, channels, consumer organizations…Besides Bat Trang producer should organize and clearly more extensive and expand consumers market, provide information, advertising, marketing…for the purpose of consumption ceramic products 4.5.2 Solutions Through the synthesis, consumption situation analysis, the factors affecting, the advantage and difficulties in the process of consume products in Bat Trang village, I offer some solutions to overcome the following major restrictions 64 weakness, taking advantage of the promotion of favorable factors to promote the consumption of village studies  Solution-related products + Quality of product Nowadays the competition based on prices, the economies focus mainly on the product quality Therefore, a solution to boost production is improve the quality of product Through investigation in the village, the quality of Bat Trang village has been relatively good To ensure the quality, improve the productivity; producer should have following measures: Ensure process in manufacturing technology and processing techniques Purchase and replaced high tech-equipment to produce good products + Product diversification: households should to find the tastes of consumers to produce new items or method to shape better than old products + Improve the aesthetics of the products In the current mechanisms in living standards and consumer demand always increases Therefore, they require in products characteristics higher than before Products must meet the requirements such as has athletic appeal, color and shape Packing process have to concerned because it impact to the evaluation of customers + Build a brand for products sold In order to compete with Chinese products in the market, it is essential for the village to build a reliable brand for consumption It needs to control and verify origin, quality of any product sold in the shop A trademark to make products realizable and unique  Apply a flexible pricing policy The producer want to attract customers not only have products with high quality, suit the need of customers, but also to have a reasonable price Ensuring that prices offset the cost of doing business and encourage to consume products Therefore, the construction of a bitter right pricing policy is necessary From day 65 trading to date, the village has a policy of price stability during periods of high competitive The households should regularly reassess the cost of the product cost, construction cost structure thereby consider any reasonable expenses, provision can save to be able to reduce prices to the lowest level, increase the competitiveness of its products Although the market has to compete on price against the construction materials had to give the position to compete on quality, but the price is still an important role for competition Therefore, the producer should set the program to cut prices to attract customers and improve product competitiveness with competitors  Maintain and expand market The village should linked to the demand of customers in production process under the motto: “produce what the market need not produce what you have” Beside, producer have to delve into the shape of product, the quality to find new products or to improve the older product design In the future, Bat Trang village need to extend protection in domestic market such as Hanoi, Hai Duong, Bac Ninh and looking for the others province in North Central Coast, South Central Coast and Southeast For export market, Bat Trang ceramic have appeared in South Korea, Japan, some country in Europe such as Russia, England…This is the potential market with high demand to use pottery products So, producers needs to keep these market to recover and diversify products They must organize production process, improve labor productivity, reduce production costs to serve export market in the best way  Use means of social media The involvement of media in marketing is gaining its popularity The website www.gombattrang.com was set up with an aim to providing tourists and tourism companies with useful information about the village and its main 66 products It no longer works now so the village’s main information can be found in the website The website is considered to be the “face” of the company, shop or other organization It may create and draw attention of a number of viewers if being exploited effectively Unfortunately, Bat Trang ceramic has not paid enough attention to this problem It can be seen that the website’s design is very simple and unattractive with poor contents and information It also does not provide many interactions with visitors Besides, the website does not point out any differences and attractive points of Bat Trang ceramic compared with others Therefore, as the E – commerce is developing at an astonishing rate nowadays, the investment in enhancing the quality of the website – a means of telecommunication between the shop and customers – is an urgent task It is supposed to enhance the website’s interfaces with a first attractive view The E – ordering item does not work well so it is important to fix this system error as soon as possible More importantly, the interaction between the shop and visitors needs to be improved To specify, in addition to links to tourist companies and services, the online consulting item; E – booking tour should be provided  Others solutions + Investment in technology: the investment in the new technology into business operations is a solution to create a competitive advantage for products and to introduce new products with better quality to replace the old product, reduce product costs In this direction, the investment needed to make a difference for the product to improve competition Household concerns to complete mechanical, manufacturing technology Machinery and equipment were more advanced than in the past, but not compared to other countries Levels of customers on a high, machinery and equipment to modern business, keep up the technological development to enhance competitiveness 67 + Human resources improvement: Each household should find new way to manage labors to ensure production process effectively The host of household must be regularly updated market trends They should involve the management in short-term classes to be able to know the basics knowledge in management Besides, they encourage and create favorable conditions for the workers upgrade their skills to enable them to work for a long time 68 CHAPTER CONCLUSION AND RECOMMENDATION 5.1 Conclusions After nearly month implementing my internship project in Bat Trang pottery village, I realized that in spite of facing a lot of threats and difficulties in production, market and competence of other enterprises in the same area, the household in the village still knows how to utilize its strengths to overcome difficulties as well as take advantage of opportunities to expand production and make the village move forward With Bat Trang village, thanks to knowing distributing resources effectively, making good use of advantages as well as having incentive policies for labors, the village still maintained production well, even in economic crisis in 2013 Recent years, when the economic situation is getting brighter, so is business performance of the cooperative All can be seen in the consumption of Bat Trang ceramic products in 2015 These years witnessed a significant development of Bat Trang village Especially, in2015, the number of order forms was much greater than that of 2014 with higher value of order forms, which shows that the development of the village is promising in the near future During this internship project, I found that it a quite a long way from theory to reality What we studied at the university is much different from what we observed in fact For instance, we were so confused when we first make the questionably to surveyed, data processing…as it was very different from what I have known before This means that it is a driving force for me to accumulate knowledge more so that I can narrow this gap and not waste what we have studied at the university 5.2 Recommendations 5.2.1 For State Government First of all, Government should create a legal framework reasonably for manufacturing, import and export activities of pottery village 69 Secondly, Government should improve legal policies more closely and have more ways to protect domestic enterprises and the rights of workers Government also should simplify the legal procedures when dealing, business operations activities In addition, the Government should continuously increase budget, regulations on wages, bonuses, loan policies, and support employment to improve production efficiency and expand production scale of village 5.2.2 For Local Government Coordinate with agencies trained workforce for skilled, technical labor for the household, and the manufacturing facility has expertise in business management Services, craft producers access to new production direction, they need support in finding markets and access to new product designs Need to strengthen the building and upgrading of infrastructure, especially roads system, wholesale market Directing departments, especially the mass media department in coordination with the owners, head to work effectively promoting products and providing timely market information for all producers 70 REFERENCES Tybout,A., Calder, B (2010), “Kellogg on Marketing” , US , Northwestern University, 2010 Kotler, P., G Armstrong, J Saunders & V Wong (2007), “Grundlagen des Marketing”, 4th Edition, Pearson, 2007 Crawens, David W., Nigel, F Piercy, (2009) “Strategic Marketing”, 9th Edition, Mc Graw Hill, 2009 Meffert, H., Burmann, C., M Kirchgeorg (2008), “Marketing”, 10th Edition, Gabler, 2008 Drucker, Peter F (1974) Management: Tasks, Responsibilities, Practices Australia: Harper & Row pp 64–65 ISBN 0-06-011092-9 Pham Bao Duong and Nguyen Thi Thuy Ly (2012), Nghiên cứu nhu cầu tiêu dùng sản phẩm phẩm gốm sứ Bát Tràng Tran Thi Thu Ha (2013), Giải pháp marketing thúc đẩy tiêu thụ mặt hàng gốm sứ mỹ thuật làng nghê Bát Tràng http://baocongthuong.com.vn/xuat-khau-san-pham-lang-nghe-chia-se-tucac-doanh-nghiep.html http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=SL 10.https://dragonknight107.wordpress.com/2008/09/29/all-about-bat-trangvillage/ 11.http://business.gov.vn/tabid/99/catid/337/item/13517/ha-n%E1%BB%99ico-chinh-sach-khuy%E1%BA%BFn-khich-phat-tri%E1%BB%83n-langngh%E1%BB%81.aspx 12.http://luanvan.net.vn/luan-van/marketing-lang-gom-bat-trang-1437/ 71 APPENDIX THE QUESTIONARE THE SITUATION OF THE CERAMIC PRODUCTS CONSUMPTION IN BAT TRANG POTTERY VILLAGE Hi! I am a student of Accounting & Business Administration faculty, Vietnam National University of Agriculture Currently, I has carried out a research on The solutions to the ceramic products consumption in Bat Trang pottery village It will be extremely grateful if you can spend a few minutes answering a few questions below All your answers will be valuable information and have important implications for my subject and I promise that your answers will be kept absolutely confidential Please let me know: I Personal information Full name: Age: Gender: Family members information Numbers Age Gender Relative with Education surveyed person levels Note: Gender 1= male 2=female Relative with surveyed person 1=wife 3=son 4=father 5=mother Education levels: (grade) Income of family from: A Agricultural B Craft Production C Service D The others (write detail) Jobs 2=husband 6=others (write detail) 72 There are…… members in work aged II The situation of production and consumption of household Total area to producing: The quantity and price of ceramic products of your household: Please filling the table Products Unit Bowls Plates Cups Incensory Lamp stands Flower pots Ceramic picture Bowl Plate Cup Incensory Price per unit (VND) Pot Pic Total cost per year: 10.When start produce in new year, your household have market research? (product? Types? Quantity? ) 11.Your household classify products: A Yes B No 73 12.Where are products sold? A In household B In ceramic market 13.The method consumption: A Direct B Indirect 14.The channel which customers known about your products: 15.The feedback of your customers: 16.Total hiring labors: Please filling the table Quantity Age Male Female Under 25 25-30 31-40 Over 40 Work experience:  The numbers of good skills labors:  The numbers of new labors: 17.What are advantage and disadvantage of your household in production process? Advantage In production In consumption Disadvantage 1.total area capital technology labors Price Customers 3.Competition 74 The evaluation of customers about Bat Trang products Price Products Quality Expensive Normal Cheap Good Normal Design Not Not Beautiful Normal good good Timeline Familia New r NO Bowl Plate Cup Incensory Landstamp Flower pot Ceramic pic 75 ... on the contact between businesses and final consumers Direct distribution strategy: the distribution strategy which producers sell their products won the final consumer without going through any... demand of domestic market Master’s Thesis Tran Thi Thu Ha: “The marketing solutions to the ceramic products consumption in Bat Trang pottery village” During research, thesis depth analysis the current... failure of the business strategy 2.1.2 The role of consumption Consumption means the direct and final use of goods and services in the satisfaction of human wants People many consume such single-use