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Phân tích chiến lược kinh doanh sản phẩm Cơng ty TNHH Trà Tâm Châu Business strategy analysis of products of Tam Chau Tea Company Limited TABLE OF CONTENT TABLE OF CONTENT INTRODUCTION RESEARCH OF CONTENT Overview of enterprise .4 Products Export Company Analysis entry strategy, market development in Russia 3.1 Russia Market Research .5 3.1.1 Natural environment 3.1.2 Political Environment 3.1.3 Economic Environment .6 3.1.4 Regulatory environment 3.1.5 Cultural environment 3.2 Analysis of market entry strategies: 3.2.1 Product Strategy 3.2.2 Pricing strategy 3.2.3 Promotion Strategy 13 CONCLUSION 17 LIST OF REFERENCES 18 INTRODUCTION In Vietnamese tradition in particular and Asia in general people, tea is not only a simple drink that contained within it is both a rich cultural tradition associated with the life and activities of people on weekdays So when it comes to country, culture and people of Vietnam can not fail to mention Vietnam teacup full of rustic but charming and full of warmth as the people of Vietnam However, today the international business is growing, the process of globalization going strong, especially in the economic field, the Vietnamese tea no longer have the opportunity to develop and promote broad market, which concentrate a small market share in the domestic tea market Meanwhile tea export volume of the country's tea mostly unprocessed raw materials, mainly exported through intermediary countries like: Britain, Germany, Taiwan,etc, Then are processed and closed the labels of intermediate water to go consumption The contradiction here is that the tea farmers obtained only very little profit margin (due to raw material price is very cheap tea, usually 1/5 or 1/10 of tea has been processed), in addition though Vietnam is considered the largest tea exporting country but the country has no real tea brand of their own on the world market Because of these reasons, the Tam Chau company decision analysis and researched more about tea, driven road penetrating processed tea market in the world an effective and more successful RESEARCH OF CONTENT Overview of enterprise - Headquarters: No.11 - Kim Dong - Ward - The town of Bao Loc - Lam Dong Trademark - Brand: Tam Chau - The meaning of the symbol (logo): T and C Tea & Coffee represents the main business sector; and represents the name of the two founders; The circle represents unity and consensus - Phone: 063.3864566 - Fax: 063.3862234 - Email: - Website: - Date of establishment: On May 4, 1999 - Business activities: procurement and processing of tea - coffee, agriculture, agricultural products, mechanical processing plant tea - coffee; growing, processing, trading and exporting all kinds of agriculture, forestry, native products: tea, coffee, fruits and vegetables; business of crafts, food services, - Markets: Domestic markets with abundant commodities: green tea, black tea, flavored tea, flavored tea not pure - Capital: 200,000,000,000 (two hundred billion VND) - Business philosophy: Get the credibility and customer satisfaction as top priority Tam Chau name meaning "pure heart", "bright as jade Mind" - Orientation for development of the company: To continue building and developing brands Tam Chau Tea: + Expanding the market for black tea in the Russian market + Production line of black tea: including pre-processing stage, refining, packing - Technology: traditional scenting technology Vietnam, Japan, Korea - Capacity: 1,200 tons / year - Main products: black tea flavored (mainly for export), green tea, green tea flavored Products Export Company Black Tea scented with jasmine tea three major categories, lotus tea and flavored tea roses are the main export product and mainstay of business for the first time to penetrate the Russian market Besides the two products under incense traditionally marinated lotus Tea and Jasmine tea the product also has added a probe of the enterprise market is flavored Black Tea roses, a popular trend in Russia In recent times, ties Vietnam - Russia increasingly take place under good direction for improving policies and incentives to encourage more development On the other hand, according to updated figures, Russia is one of the major markets and many tea consumption in the world with average consumption of more than kg of tea/person/year, can be considered Russia as a full market potential in exporting goods Tea, Black Tea particularly by consumption trends in commodity highest proportion of exports On the other hand, Black Tea is also easier to maintain a healthy and more should be acceptable at a certain level is also easier than other kinds of Tea Analysis entry strategy, market development in Russia 3.1 Russia Market Research 3.1.1 Natural environment The territory stretches across two continents of Asia and Europe, the majority of the population as well as economic activities, politics are concentrated in the European territory Along the southern steppes through humid continental regions of Russia lies in Europe, diverse winter climate along the coast cool to cold in Siberia black, diverse climates from warm summer in the steppe to cool along Arctic coast Broad plain with low hills west of Urals; Plant forest and tundra in Siberia large; high mountains along the northern border region Abundant natural resources, including large and small mines, including oil, natural gas, coal and other minerals, wood joinery,etc, 3.1.2 Political Environment After many important reforms were implemented in the tax law, banking, labor and land laws These results add to the confidence of investors and businesses in Russia Bringing Russia into an attractive investment environment for foreign investors Environmental legislation and policies of Russia is changing positively adjusted towards trade liberalization and international economic integration, together with the tariff reduction and harmonization of administrative procedures, so the environment business in Russia certainly more transparent, more open and equitable, will create new opportunities for our company exports tea to Russia 3.1.3 Economic Environment Since the economic crisis in 1998 to 2007, Russia maintained an annual economic growth and improved position in the international financial sector In 2009 is considered the worst year for the economy of the Russian Federation, but the Russian government has given the optimistic forecasts about the prospects for economic development - economic development of this country in 2009 and 2010 In 2014, talking about one of the weaknesses of the Russian economy is the application of science and technology is still inadequate, the Russian prime minister emphasized that "Russia should have standards and the most advanced technology to the path from project to inaugurate a new building, opened a factory, factories, workshops most recently shortened" 3.1.4 Regulatory environment The administrative offices and executive management tea importers include: Ministry of Economic Development and Trade Russia, the Ministry of Agriculture, General Administration of Customs Russian National Committee of the Russian standards Russia applies the system "ensures Paper" and "standard certificate" by the National Committee of the Russian standards and the Russian Ministry of Agriculture grant, to make the procedure adopted to control the importation of tea into the market Russia The Russian Federation also approved regional import consignment of tea, tea imported via third countries and approved the payment related to the particular payment methods such as barter, payment in advance, leasing (Leasing), signed the check The provisions of the Russian Federation on procedures for import of tea: Regulations on labeling, packaging: Every shipment of tea shipped to Russia to be labeling in Russian, are packaged in a volume or weight cardboard boxes and crates, or bulk container, depending on the contract of sale between Exporters and importers (tea bagging weighing 60kg, less than kg of tea packaging, tea should close by in vacuum thin film or paper bag if the weight from 50-250g) + External packaging must have the shipper's tag, label and port should be numbered according packing list, trade names and contracts must be recorded on the external packaging shipments + Packing tea products have eco-labels, the origin of tea, types of tea, tea products form under the system prescribed norms of Russian Standard Committee + Certificate standard: tea exporters when bringing goods into the Russian market must have a certificate of quality standards and food safety, qualified by national standards committee regulations, and certificates of food hygiene of the tea must be made by the competent authority of the country of origin The certificate is required when the procedures for customs clearance of export tea to Russia 3.1.5 Cultural environment Tea is one of the most popular drinks of Russians (98% of the population uses Russian), tea is increasingly asserting its position as the preferred beverage with the advantages effects as healing, tonic health Tea is the only beverage the Russian government put in the list of essential consumer goods, are included in the national reserve to prevent war and natural disasters As cold countries should not drink tea Russian style as Asians sip In Russia, traditionally associated with warm tea Samovar It is made of large well-designed beautiful, containing over one liter of boiling water at altitude The weather almost all year round, hot drink with sugar or candy Russians usually drink black tea (taste almost like Lipton), in a loud cups (about 100-200 ml) Freezing Russian winter, drinking hot tea is almost a necessity, because with the Russians, the tea that keeps the body warm is the heart Therefore in every house in Russia, mostly in special jars are filled with water Samovar tea Popular Russian market and mainly imports tea from India, Sri Lanka, China, Vietnam, Indonesia Tea tastes of Russian consumers are very diverse Currently in the world there are about 3000 different kinds of brands of tea (green tea and tea processing) In that Russian consumers of fish teas 1,000 different brands Black tea is a variety of tea consumption and traditionally the most popular in Russia accounted for 90% of total tea consumption 3.2 Analysis of market entry strategies: 3.2.1 Product Strategy Marinated black tea product with 100% natural flavors include lotus incense, jasmine and rose essence The processing, production technology, drying time tempering stars incense are produced on modern lines is monitoring on each stage Along with traditional methods of marinated product gives the distinctive look About 80% of the tea bud two leaves and shrimp type a quick pick to gently, not to bud crumpled Delicious teas are back to rest after a certain amount of water from 5-7% Not flavored tea pickers finished soon which must be kept in jars land on banana leaf compost, for 2-3 years to reduce the extent to wing tea chat and get more flavor inflated Lotus have picked before dawn Lotus also take part dew grain is separated and then spread, on a layer of lotus tea a layer of rice, a pound of scented tea lotus lotus required 800-1000 Finally the coated paper Such continuous marinade 5-6 times, each chilled marinated back then further dried Thus one can drink lotus tea kettle dozens tea week Jasmine tea products but equally sophisticated, requiring meticulous stitching must marinate in each stage Jasmine tea to marinate certain clean tea is grown naturally, without chemical fertilizers, wings are to be able to absorb a lot of flavor Jasmine is used as jasmine cinnamon, although billing, thin wings, tiny but very fragrant flower Just another layer to sprinkle a layer tea jasmine, then a layer of tea, a chilled flower class In about 18 to 24 hours, first sucking floral tea made from opaque white wing switched over, this time bringing new tea jasmine sieve to remove Tea given in a bag to keep the moisture and flavor jasmine tea, and bring drying until dry tea, jasmine tea blends on the money and considered complete once chilled Includes four stages so And tea roses are made from very small pink buds are dried The product is monitored from raw material warehousing time until the product is launched Raw materials are bought in Bao Loc Town (Lam Dong) on a regional focus, ensuring pesticide residue levels in tea does not exceed the permissible level, focusing on improving quality and food safety Warehouses ensure proper storage of technical standards, not wet Design, packaging, color box cover properly registered form, with paper quality inspection, production expiry date Trademarks specify the content names, additives, manufacturer, address, exporter, weight, method of preservation and attention when using Russia is a very popular market for packaged teas but prices high but consistent taste and convenience Packet tea consumption in Russia is increasing and in the coming years will account for a large share of total consumption of tea in Russia Thus from the outset the company decided to put to market canned product line 100g and 250g sizes 3.2.2 Pricing strategy a) Factors affecting: * The income level of the people: Euromonitor International said that in 2008 the Russian market is the 11th largest consumer world and only 2020 could rise at No According to statistics, in the two years 2007 and 2008 spending by Russian consumers increased 10.9%; Average after-tax income per capita increased by 80% from 2003 to 2008 to reach 6.522 US dollars in 2008 TIME Magazine also predicted economic growth of Russia in the next years at 15% Forecast income of Russian consumers in 2009 may increase by 3.6 times to making Russia the largest market with attractive prices in the world " As for commodities tea, Russia tends to increase consumer demand Right from the first months of 2015, in this market, people tend to switch from other beverages into consumer products such as tea, traditional teas, instant drink tea, processed tea, especially with the average consumption of more than kilogram of tea/person/year * Inflation: Inflation in recent years was only 6.1% Inflation in Russia this year will retain their parameters as previously forecast, although there is some risk of inflation However, the Russian government believes that inflation will retain their general parameters as predicted Earlier, the Russian Economic Development Ministry statement, except in August did not happen phenomenon of deflation, but inflation forecasts for this year is about 6% so far nothing changed According to the Federal Statistics Agency (Rosstat), inflation in Russia in the period from July 24 to July 30 was 0.1% The last week in July had recorded a significant rise in commodity prices, including for services of housing, electricity, water and heating * Taxes: Russia applies import duties and taxes Non-percent percent for imported tea However, the Government is making adjust import duties towards simplifying the tax structure and reduce the minimum tax The level of provisions for tea products originating from Vietnam as follows: - Prior to April 1996: The rate base for black tea, green tea (bulk or packaged goods of less than kg) is 20% preferential tax rate of 50% base rate VAT is 18% - In the period in May 1996 to December 2000: the tax base of black tea, green tea is 20%, deals 75% base rate, VAT 18% - In the period from January 1, 2001 to present: the tax base is 10%, 75% and VAT preferential 18% In addition, participants in the Russian tea prices also affected by five factors: - Movements in the price of tea in the world market due to seasonality and due to speculation - The rapid demand growth (10-12%) and consumer trends packet tea and tea quality is increasing fast leading factor affecting the price of tea increased in Russia, especially the tea packet, tea quality high demand leads to differentiation and price variation of tea: tea package price, high quality tea leaves tea times expensive and affordable tea - Russia's National Reserve of tea products - The phenomenon of hoarding of some component tea also cause distortions in supply and demand and price of tea - The limitations come from the method of payment of the import business of Russian tea, not competitive compared to some other reliable importer In the period 2010-2015, imports of Russian black tea from 223.600 tons will increase to 315.200 tonnes, an annual average growth rate of 3% However, consumption of black tea (teas account for nearly 80% of annual consumption) is in downtrend The proportion of green tea, fruit tea, tea made from the herb plants will tend to increase b) Strategic Orientation prices: Vietnam currently ranks 5th in terms of acreage and export tea production 10 According to statistics of the General Administration of Customs, in 2014 Vietnam's tea exports reached 133.9 thousand tons, worth $ 204 million, down 1.9% in volume but increased by 2.02% in value EXPORT OF TEA Unit Black tea types PF1 Tons $1,550.00 Green Tea OPA Std.1162 Price kg $2.50 Black Tea OPA (New 100%) kg $1.87 The country Russian Federation Russian Federation Russian Border gate The code GH Hai Phong Port FOB Hai Phong Port FOB Hai Phong Port FOB Federation * In Russia: Exports of tea with many characteristics of agricultural products, export price of tea in different periods of the year will be different due to the tea production is seasonal depending on the weather, so the quality of tea to change To remedy this situation, enterprises offering stable pricing policy to create confidence in the export market With income levels of the people in each of the world's above average and although the tea industry is slowly advanced, the enterprise is favored towards product lines still have affordable prices, consistent with the majority population Russia - where the surface is classified into the category of tea essential consumer goods In fact, Vietnam's tea prices generally remain dominant on competitiveness (only about 60-80% of similar quality tea in Russia), promoting it will create a good premise for farming entered and stayed in the market A comprehensive review, penetration pricing policy remains consistent over the whole, especially in the context of Russia's inflation rise, people's income levels tend remission today With this policy, believe the application will bring positive effect, increase in demand for products, to create a foothold in the market * Correlation between domestic and export prices to Russia: Russia and Vietnam has excellent relationships for a long delivery but on geographic location away from each other again, this affects the cost of transportation of goods between the two parties Plus the imposition of high tariffs on goods tea and availability of customer accepts the price Russia tea products in two different markets Distribution strategy: 11 To get the steps in the process of penetrating and build their brands on the Russian market, the most important thing is to have a distribution system effectively Right from the initial preparations, we need to collect and evaluate information and comments on the Russian market of information that we had earlier, on infrastructure (transportation downloads, communications, electricity, water,etc, ) have created favorable or difficulty when we invest in it; barriers in the delivery of our products to consumers; also need to identify and make plans for their product distribution channels so effective and the most reasonable cost When considering the factors of transportation, we can see the transport system of Russia is relatively developed with the gas pipeline system, the highway and very comfortable cruise Private capital Moscow is considered one of the cities with urban transportation system the best in the world at present Road systems include road and street circle in the large circle, cut through it is the street, avenue Also the system of tram, tram, train Total traffic jams in the city during a year is less than the amount Moscow traffic jams in one day at a ward of Ho Chi Minh City Currently, there are major international airports serving Moscow is: Sheremetyevo-2, Domodedovo, Bykovo, Vnukovo In it alone Sheremetyevo-2 airport and Domodedovo have served more than 25 million annual international visitors to this place So here's to facilitate the transport of goods in the capital when we put major dealer here, as this would easily cover all geographical areas throughout the city Also, we need to analyze the distribution system It was found that Moscow is very convenient for the headquarters of the company's activities in the distribution of black tea (large population, transportation systems and facilitate infrastructure), but should pay attention to difficulties in the process of business license as well as meet all the criteria to enter the city Because according to statistics from the World Bank experts in recent times, the Moscow entrepreneurs to run around 54 agencies to be able to set up their own business Even in terms of international trade the procedures for export and import takes 36 days later than in other cities (Like Kazan, Petrozavodsk, Rostov-on-Don Tomsk) 12 Should consider the distribution channels so that the most appropriate depending on the market and each product while black tea export decisions to the Russian market and is headquartered strategic focus and main distributor in Moscow Can be based on two main strategies focus on two directions First, towards the traditional, which is to establish a primary dealer with the advice of experts in Marketing and Market Research, staff mostly natives (so they can understand the style way, the behavior of people, encourage more efficient sales through policies to encourage sales with discounts and commissions to distributors) Main dealers will directly offer its distribution plan as well as the management of direct sales staff through the joint program by the Department of Planning and Investment direct Tam Chau launched Also, if the business needs to expand and is the main company, the agent accept will direct power test, monitoring, encouraging sales performance of lower-level dealers Particularly the main distribution agents in addition to the company's salaried primary also receive sales discounts and commissions norms to encourage increased sales and expanding market for tea in Moscow Secondly, there is the access to and distribution of the brand of tea towards modernization The main reason is that in recent times, the number of Internet users worldwide has increased Leading this growth trend to mention India, China and Russia In Russia it grew by 21% of Internet users new and has 59 million users In particular, Moscow has the proportion of Internet users, accounting for about 57% Therefore may combine advertising and online tea sold through the sales site And ads on your favorite Web sites that customers visit the most In order to reach potential customers 3.2.3 Promotion Strategy All activities to stimulate the desire to use the product's potential customers, involves communicating information about products and enterprises to the public Heading towards corporate customers are persons belonging to the middle class of Russian society Before making a specific strategy, we need to consider the factors that could affect the messages and activities to promote their business products * Legal: This factor tells us what to avoid are the requirements that Russian law prohibited, so as not to violate Because a breach will impact significantly on the product 13 * Culture: Cultural factors always exist, tied to every person in general and Russia in particular, so if we put messages to target customers contrary to the habits and customs, the identity of they (albeit inadvertently) will also have a negative impact on their business products When launching the strategy to bring the products to Russian consumers, need to consider this factor * Public information system: Depending on the popularity of the media, how the business will have the choice of how best to provide product information to the customer (For example, in some places, the media is limited, if we choose advertise on television or radio, it really is a losing strategy.) - In the coming years the amount of internet users in Russia posted large bandwidth tends to increase, which is a favorable factor for businesses when choosing how to communicate product information via e-commerce, has reduced the costs for businesses, have benefits Another aspect to mention here, even though the information was transmitted, it still factors affecting effective communication to customers * Cultural Barriers: There are cultural, but unwittingly had a large effect on the efficiency of enterprise information to convey For example: -In A television ad, concludes a man is talking on the phone on the road, one hand in pocket, that's Russia for indecency Such ads will be offensive to the product information - In Russia, all your correspondence should be written in Russian, this will allow your letter has been received and read quickly In most offices, people receive a letter from their normally open, rather than the administrative staff; so mail can be delayed So go straight to the main point of transaction messages and related documents Some Russian culture that now when doing the promotion strategies of note: Meet between men, the handshake should be cut but not too strong shaking Where a party is the time women should not last handshake When in a restaurant should not hang coats behind the seat because it is understood as an affront Let hanging clothes hanging clothes in the room is available at all the restaurants Stand in a public place for hands in his pockets actions shown rudeness 14 * The level of noise information: More information is transferred to the customer, the information noise levels higher All businesses and competitors, all want to move their product information to target customers, so choose to communicate how to customers and are not disturbed much information is a very important issue in the promotion, should make a difference to the ability of information received product information of customers is the highest goal When making a decision to select the product promotion strategy, enterprises should pay attention to these factors: Category of product and customer level, length distribution channels and the popularity of the media; to have an effective strategy From the analysis above factors, the enterprise has given a specific job number below: The first step: + Negotiation, agreement with the supermarket allows enterprises were displayed and sold products + Join the tea festival competitions, exhibitions and fairs have tea products in Russia Establishing trade representative in Russia Flea markets or through cooperation with major distribution channels in Russia today to bring products to customers Next: Creating a relationship with the Russian media, dailies and weekly newspapers as sources of information and useful contacts to surprise, can bring you a lot of potential customers Look for the names of those who are entitled to the promotion, who has won, who has opened new businesses They can become potential customers Please send individual letters to these people so that they know the benefits that they may have to buy your product Join the event, sponsored charity programs Learning from competitors Advertise where your opponent is in use Promotion of your products where your competitors are promoting the advertising program Use multiple small ads instead of one big advertisement If like most people in the same business line with your advertising to attract customers, you should so But plans for the advertising program with smaller scale instead of pursuing a massive advertising plan The repeats will entice people to identify the product name If such advertising on yellow pages, consider putting the ad content into the header row of each index 15 In addition, strengthening strategic partnerships with long-term stability of the major importers of Russia (Qrimi Trade, Princes Nuri, Princess Gita, Princess Kandy, Princess Java,,etc, ) to link network expansion tea distributor in the Russian market Maximizing the capacity and role connected transactions of the Vietnam people are trafficked in the flea markets, kiosks in big cities of Russia to establish and expand the distribution network 16 CONCLUSION Strategy is the general solution, oriented to help businesses achieve long-term goals Strategies are based on the information inside and outside enterprises and be selected by a scientific process At the same time, the strategic management process, administrators are always monitoring the changes of the business environment and adjust strategy as necessary So strategic management will enterprises always have good strategies, adapted to the environment This is very important in the context of an increasingly complex environment, constant changes and competition takes place on a global scale With demand for the world's largest tea in recent years, Russia has become a market for tea business profitable high for businesses The initiative enterprises have access to this large market seriously or taken raven eating style as before or not depends on the policies and strategies that encourage export of government But the most important thing is that enterprises requires goal-oriented and market yourself properly In the near future to 2010 has many opportunities and challenges open to exporters Vietnam tea, so tea exports to Russia should be further promoted So that not only can acquire resources from tea exports the most, but also contribute to building the brand and affirm Vietnam tea commensurate with productivity up calls my tea 17 LIST OF REFERENCES 18 ... businesses The initiative enterprises have access to this large market seriously or taken raven eating style as before or not depends on the policies and strategies that encourage export of government... has opened new businesses They can become potential customers Please send individual letters to these people so that they know the benefits that they may have to buy your product Join the event,... entered and stayed in the market A comprehensive review, penetration pricing policy remains consistent over the whole, especially in the context of Russia's inflation rise, people's income levels
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