Analysing the marketing mix strategy of sa giang import and export corporation

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ACKNOWLEGEMENT

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First of all, I would like to express my gratitude to all respectful professors
at HUFLIT, especially to Dean Nguyen Ngoc Huan and those in International

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Business Administration

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background through my four year at university.

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Department, who have given me useful literature

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I also wish to show my deep thank to Dr Nguy~n DliG Hoai Anh for her

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f d.evoted guidance that helps me to finish my research. Without her, I would never
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know whether I could fmish my research at it best.

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I gratefully acknowledgement

all my advice, recommendation

of Mr

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~' Nguy~n Trung Dan - General director of SAGIMEXCO and Mr Dc;ing Thanh

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Buu - director of Branch office in HCM city

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I also owe many thanks to my family for their facilitations during the time I

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am carry out my research.

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together studying year in sweet university years. They have been by my side until

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the last second the research is fmished

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Finally yet importantly, I thanks my friends in class KD-0304 for four our

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ABSTRACT

Nowadays,

the number

of companies

all over the world is increasing

rapidly because of the high economy development
fierce competitions
companies

among companies

from different

in a same industry. In additional,

significantly.

and globalization.
countries

That cause

and among the

market trends change rapidly and

To survive and develop in this endless economic

war, companies

must not only alert to the fast changes of the market trends flexibly but also have
competitive

advantages

in current

situation.

In these

fierce

competitions,

marketing is the vital tool for the companies.

Recognizing

the important

role of marketing

companies

try to set up effective marketing

Marketing

mix strategy,

requires a combination
market.
seem

Mastering,

planning,

to be difficult

SAGIMEXCO

strategies.

which is a major component
of understanding

size companies.

an

effective

marketing

survival and development.

the past, it still faces the fierce coming
globalization

strategy,

theory as well as the
marketing

As a small

strategy

size company,

face to many challenges and difficulties in prawn cracker industry

Therefore,

SAGIMEXCO'

survival,

it is not easy.

of a marketing

and appraising

where the demand is not high but the competitive
fiercer.

However,

basic marketing

implementing

for small

for the business

environment become fiercer and

mix

strategy

is

important

Although SAGIMEXCO
competitors

to

succeeds in

when the economy

and

develop strongly. That is the reason why the writer choose the topic

in which SAGIMEXCO'

marketing

mix strategy

of prawn cracker

analyzed through basic marketing theories and secondary information

product

is

combining

11


•

SWOT analysis. The writer want to analyze the company's
to have a better understanding
sized company;
strategy

and to identify

for suggesting

opportunities

of marketing
strengths

some suggestions

marketing mix strategy

mix implement
and weaknesses

for the company

in a small-medium
in marketing
combining

mix

with the

and threats.

This study includes three parts: introduction,

four chapters and conclusion.

In detail, chapter I is about some basic marketing theory; especially focus on the
selling and marketing
Phili

Kotler's

SAGIMEXCO
the company
describes

marketing

theory.

The

mix strategy based mainly on

overview

and

current

situation

of

are included in chapter II. Through the secondary collected from
combining

the current

SAGIMEXCO

concepts and on marketing

with the knowledge
marketing

mix

strategy

of basic marketing,
and

the

in chapter III. In addition, by the information

III, the writer recommends

SWOT

the writer
analysis

of

analyzed in chapter

the suggested solution for the marketing mix strategy

of prawn cracker product for the company after writing some factors influencing
the marketing mix strategy .

•

iii

LIST OF FIGURES

Figure 1: The selling and marketing concepts contrasted

.4

Figure 2: Organization with a Marketing Orientation Carry out

•

the Marketing concept.

6

Figure 3: The Marketing management process

8

Figure 4: Overview of Marketing Strategy Planning Process

9

Figure 5: The four P's of the Marketing mix..

14

Figure 6: Strategy planning for producL.

15

Figure 7: Typical Product Life Cycle of a new Product concept

17

Figure 8: Basic Promotion Methods and Strategy planning

20

Figure 9: Relation of Promotion Objectives, Adoption Process,
AIDA Model

23

Figure 10: Strategy Planning for Price

24

Figure 11: The SAGIMEXCO DONG THAP's structure

35

Figure 12: The market share of prawn crackers in foreign markeL

46

Figure 13 Food hygiene quality certificate Code HK129 of
SAGIMEXCO

49

Figure 14 Some typical product package of SAGIMEXCO

51

Figure 15 The proportion of SAGIMEXCO chips in year 2006

52

•

iv


•

LIST OF TABLES

Table 1: Examples of Sales Promotion Activities

22

Table 2: Total revenue of foreign markets in year of 2004, 2005 and 2006

.40

Table 3: Total revenue of domestic markets in year of 2004,2005 and 2006

.41

..

v


CONTENT
1. Acknowledgements

.i

2. Abstract

.ii

3. List of figures

.iv

4. List of tables

v

5. Content

vi

INTRODUCTION
•

1. Research paper objectives

1

2. Scope of research

2

3. Research method

2

4. Contents of the research

2

CHAPTER I: LITERATURE REVIEW

3

1. An overview of Marketing

.3

1.1 What is Marketing

.3

1.2 Definitions of marketing

5

1.3 Marketing's role and activities in an organization

6

1.4 The strategic management process

7

2 Marketing strategy

9

2.1 Definition and determinants

9

2.2Six missions of marketing strategy

10

~

vi


2.3 Target market

10

204 Three principles to improve marketing strategy

12

204.1 Customer value principle

12

2A.2Competitive

advantage principle

12

2A.3Segmenting

and combining principle

13

2.5Marketing

mix

2.5.1 Prod uct

14
15

2.5 .1.1 What is product?

15

2.5.1. 2 Product Iife cycle

16

2.5.2 Place

18

2.5 .3Promotion

19

2.5.3.1 Three methods of promotion

20

2.5 .3.2 AIDA model

22

2.5 A Pricing

23

2.5.4.1 Price flexibility

24

2.504.2 Price level over product policy

25

2.5 04.3 Discounts and allowances

26

a. Discounts

26

b. Allowances

27

c. Geographic pricing policies

28

CHAPTER II: INTRODUCTION OF SAGIMEXCO

29

1. Company's

29

profile

1.IHead office

30

1.2 Branch

31

1.3 Enterprises

31

vii


1.4 Primary agents
2 An overview of SAGIMEXCO DONG THAP

.32
32

2.1 Foundation and development

32

2.2 Mission rights and purposes

34

2.2.1 Mission

34

2.2.2 Rights

.34

2.2.3 Purposes

34

2.3 Organization's structure and management..

35

2.3.1 Organization's structure

35

2.3.2 Responsibilities of the management board

.36

2.3.3 Responsibilities of General Director

36

2.3.4 Responsibilities of Vice General Director.

37

2.3.5 Responsibilities of Business Financial department

.37

2.3.6 Responsibilities of Administration department..

.38

2.3.7 Responsibilities of Technical department

38

2.3.8 Responsibilities of Branch in HCM city

39

2.3.9 Responsibilities of the Factories

39

3 The operation of SAGIMEXCO DONG THAP from
2004 to 2007

.40

3.1 Markets

.40

3.1.1 In foreign market

.40

3.1.2 In domestic market

.41

viii


3.2 Products of SAGIMEXCO DONG THAP

.41

3.2.1 Prawn crackers

.41

3.2.2 Products from fish and meaL

.43

3.2.3 Other products

.43

3.3 Competitors

44

3.3.1Bich Chi Food Company

.44

3.3.2 The parodied products

.46

CHAPTER III: ANALYZING THE MARKETING
MIX STRATEGY OF SAGIMEXCO

.47

1 An overview of marketing mix strategy of
SAG IMEXCO for prawn cracker products

.47

2 Analyzing the marketing mix strategy of
SAG IMEXCO for prawn cracker products
2.1 Product strategy

.48
.48

2.1.1 Quality

48

2.1.2 Branding

.49

2.1.3 Packaging

50

2.1.4 The product life cycle of SAGIMEXCO's products

51

2.2 Place

52

2.2.1 In foreign market

52

2.2.2 In domestic market

53

2.2.2.1 Indirect channel distribution

53

2.2.2.2 Direct distribution channel

54

2.3 Promotion
2.3.1 Personal selling
2.3.1.1 Domestic direct personal seIling force

55
55
56

ix


2.3.1.2 Foreign online personal selling force
2.3.2 Advertising

56
57

2.3.2.1 In foreign market

.57

2.3.2.2 In domestic market

.57

2.4 Price

58

2.4.1 Foreign customers

58

2.4.2 Agents

.58

2.4.3 Super market systems

58

3. SWOT ANALYSIS OF SAGIMEXCO

59

3.1Strengths

59

3.2Weaknesses

60

3.30pportuni ties

61

3.4Threat

62

CHAPTER IV: SUGGESTION TO ENHANCE THE
MARKETING MIX OF SAGIMEXCO

63

1 Overview of Vietnam economy and some factors effecting
the marketing mix strategy of SAGIMEXCO

63

2 Some suggestions to enhance marketing mix strategy of
SAGIMEXCO

66

2.1 Suggestion to product.

66

2.2 Suggestion to place

67

2.3 Suggestion to promotion

68

2.4 Suggestion to price

69

x


CONCLUSION

70

REFERENCE

72

xi


Analyzing marketing mix strategy of Sa Giang Import Export Corporation

INTRODUCTION
1. Research paper objective
For the past decade, the "customer is god" seems so strange. The customers
had to buy the products they needed with little choices and little rights. The
manufacturers

just produced the products available for them to produce, not the

products the customers really needed. Gone are those days!

The world really changes. It brings the knowledge-based
technologies,
businesses

information
to change

technologies

and

industries, automatic

globalization.

This

to adopt with the flow of the modern

situation, the competitive

advantages

requires

society.

the vital points for business's

the

In this

survival and

development.
While
marketing

other factors

such as technology,

finance

may be affected in many aspects. Many small companies

the ways to survive and develop in a highly competitive
competence

may be easy to obtain,

of their marketing department.

the success of a business.

environment

have found
thank to the

In fact, Marketing is a vital factor for

One of the effective

ways is to have the relevant

marketing strategies.
This chapter therefore is aimed to achieve 3 objectives:
.:. First, the author would like to make deeply understanding

about the

marketing theories through the viewpoints of outstanding theorists .
•:. Second, the author would like to study deeper in the marketing strategies of
a real company to see how the theories are applied in practice .
•:. Third, the author wishes to offer some suggestions to improve that
company's

Student:
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marketing strategies.

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

2. Scope of the research
This study focuses on the marketing strategies of SA GIANG import-export
Corporation.

In fact, this Corporation has one company and one representative

office, however, this paper just focuses on the marketing strategies taken place for
the company.
Further, the author would only analyze the marketing strategy elements concerned
with: product, place, promotion and price.

3. Research method
To do the research, I will apply the fundamental

knowledge of marketing from

the textbooks. Then I will collect the information,

data, figures for analysis and

research I also utilize the article, the international

newspapers,

material of

company and internet related information to have a subjective view for this study.

4. Content of the research
My paper includes 4 chapters:
Chapter 1: Literature review
Chapter 2: Overview of the company
Chapter 3: Analyze the marketing strategies of SA GIANG import-export
Corporation in domestic market
Chapter 4: Some suggestion to enhance the marketing strategies of SA GIANG
import-export

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Corporation

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

CHAPTER

I: LITERATURE

1. AN OVERVIEW

REVIEW

OF MARKETING

1.1 What is marketing
When people mention marketing, most people think that marketing is only
about the advertising and/or personal selling of goods and services. Advertising
and selling, however, are just two of the many marketing activities. The concept
of marketing is so common that some entrepreneurs

also identify marketing with

selling and advertising.

marketing

It is said that traditional

is the marketing,

which stimulates selling and gets more profit from increased sales.
Actually,

the concept

is not wrong, but it is not enough

meaning and functions of marketing completely.

an accurate definition

of marketing.

has to focus on consumer
marketing

definition

consumer's

needs.

Marketing
satisfying
satisfaction.

orientation

always

attaches

plays an important

goods

Ho»,ever,

and services

Until now, no one could state
a good definition of marketing

and customer's
with

needs.

it the customer

role in providing

and, more

to show the

generally,

The modern

orientation

consumers
in creating

and

with needconsumer

Other word, marketing provides needed direction and makes sure

that the right goods and service are produced to the right customers.
For a clear difference between the traditional
should

observe

Figure

1, which

presents

contrast

and modern marketing,
between

the selling

we
and

marketing concepts

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

Figure 1: The selling and marketing concepts contrasted

EJ
Factory

Existing
product

Selling and
promotion

The Selling Concept

Market

Customer
needs

Integrated
marketing

The Marketing concept

Source: Philip Kotler, Gary Armstrong, John Saunder and Veronica Wong.
Principles o/Marketing.

Prentice Hall_2001_ pagel5

1.2Definitions of marketing
In general, marketing activities are all those associated with identifYing the
particular wants and needs of a target market of customers, and then satisfying
those customers better than the competitors. This involves doing market research
on customers, analyzing their needs, and then making strategic decisions about
product design, pricing, promotion and distribution.
Even though there are many different definitions of marketing, it seems that
the two definitions below are said to be the most satisfactory ones. Both of them
arc modem customer-oriented and satisfactory marketing definitions. They are

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

marketing definition of Palmer and Philip Kotler, the most famous marketing
expert.

Palmer defines marketing as the process marshalling the resources of an
organization so that they meet the changing needs of the customer on whom the
organization depends.
According to Philip Kotler marketing is defined as a social and managerial
process by which individuals and groups obtain what they need and want
through creating exchanging products and value with each other. We see that
both of these marketing definitions emphasize the core concept of marketing
which is shown in Figure 2.
Figure 2: Organization

with a Marketing

Orientation

Carry

out the

Marketing concept

Customer
satisfaction

Source: Perreault and McCarthy. Basic Marketing.
INTERNATIONAL

EDITION]ifteen

Mc GRA W-HILL

editionyagel7

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

1.3Marketing's role and activities in an organization
Marketing plays a critical role in linking sales, development,
and

prospects,

company's

and the company's

executive

management.

window on the world outside the company.

roles, such as sales and service,

provide the interpretation
By accurately

provide

customers

Marketing

is the

Other customer

facing

major inputs, but marketing

must

that explains and predicts buyer behaviors.

observing customers'

business initiatives, companies

can

know deeply about their markets through the market research process in order to
set up and check the possibility
market into many submarkets

called

market

attractiveness

of their plans. Then, companies

can divide the

with different needs, characteristics

segmentation.

Smart

of each segmentation,

organizations

will

or behaviors,
recognize

the

select and enter the most appropriate

ones.

That is the process of segmenting.
Finally, companies
service noticeable
helpful

will position themselves

in customer's

for companies

by making their products

mind. All the four processes

to go to the next important

or

above will be

step-design

a relevant

marketing strategy in detail.

I.4The strategic management process
The above parts concern the basic concept of marketing.

marketing processes

are very important

to companies'

It is clear that

success. The marketing

management process has been used by marketing managers to help companies to
achieve their objectives.
The marketing
marketing

activities,

management

process consists of three activities:

directing the implementation

planning

of the plan and controlling

these plans.

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

.-

The

market

environment

is dynamic

because

changes continually

consumers'

needs,

and the current opportunities

competitors,

the

may slip away.

The role of planning marketing activities is essential since it will figure out the
specific plans suitable for the companies'

objectives

in order to satisfy their

customers with their capability in a particular period.
In the implementation

of the marketing

plan, it must be made sure that

everything set in the first part must be done according to the plans. This process
must be carried out under the strict supervision

in order to achieve the things

specified in plans.
Last but not least is the final process- controlling the plans, which involves
measuring results and evaluating the progress as well as reporting the feedback.

The link between
Consumers'

the controlling

important.

feedback often leads to changes in current plans or to future plans.

We can observe the three activities
understanding

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job to the plans is especially

mentioned

for the marketing management

in the Figure 3 to have clear

process.

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

Figure 3: The Marketing management process

Implement marketing plan(s) and
program

Source:

Perreault

and

McCarthy.

HILLINTERNATIONAL EDiTION]ifteen

Basic

Marketing.

Mc

GRA W-

edition-'page35

2. MARKETING STRATEGY
2.1 Definition and determinants
The term "strategy" re[ers to establishing plans and trying to finish these
plans in the most effective ways to achieve the plans' target. In marketing, a
company's marketing strategy is defined as a progress which specifies target
markets, which involves in targeting the market, segmenting the market and
positioning and related marketing mix o[ "[our Ps" in an efficient way to achieve
the goals and objectives of the company. Figure 4 shows an overview of
marketing strategy process.

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

Figure 4: Overview of Marketing Strategy Planning Process
Narrowing down to focused Strategywith quantitative and qualitative screeningcriteria

~---

-~

Company

Mrz~
-

Objectives and
Resources

-

r- ~fu'lfu:i:rJ
@l~

-

-

-

I
--

External marketing environment
Technological

Political and Legal

Cultural and Social

Source: Perreault and McCarthy. Basic Marketing. Mc GRAW-HILL
INTERNATIONAL EDITION Fifteen edition-page50
2.2 Six missions of marketing strategy

The overall marketing strategy of an organization

should focus on

developing relationships with customers to understand their needs, and to develop
goods, services, and ideas to meet those needs. A good marketing strategy should
have these following steps:

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

• Gathering

Information:

research

potential

customers,

their

needs,

and

spending habits in order to understand what sort of product, service, or idea
they wish to buy.
• Evaluating
produce

of Organization
relatively

Capabilities:

well, and what your organization

producing based on the organization's
• Identifying

Market Opportunities:

achieved

of Marketing

is not capable

can

of

specific strengths and weaknesses.

research the current market for a product

idea, and look for an opportunity;
• Setting Objectives

decide what your organization

such as no competition or strong demand.
Strategy:

decide what results need to be

in order to reach the organization's

goals; such as a specific

increase in sales, or net profits.
• Formulating
take

in

Action Plan: List the specific steps the organization
order

responsibilities

• Monitoring

to

implement

the

marketing

plan,

and

needs to

assign

the

to specific staff members

and Evaluating:

Study the marketing plan regularly, at least once

per quarter to track performance

against the set objectives

2.3 Target market

The marketing strategy planning involves strict evaluation of the market
opportunities

available

before narrowing

target market and marketing

down to focus on the most attractive

mix as shown in Figure 5 where the target market-

target customers is at the center of the "four Ps". Identifying a target market is not
easy. In general, a market is a group of potential customers with similar needs who
are willing to exchange something of value with sellers offering various good or
services - that is, ways of satisfying those needs. But how can we specify a target
market from a market

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

We can definite
segmentation.

Market

a target market from a market by usmg the market

segmentation

product markets and segmenting

is a two-step

process:

these broad product-markets

naming

the broad

in order to select

target markets and develop suitable marketing mixes. No company can satisfy all
needs of the market so the first step involves selecting some broad areas-broad
product

markets-where

the company

has some resource

and experience.

After

some broad product markets have been selected, the segmenting is used to cluster
people

with similar

needs into a market

segment-a

homogenerous

group

of

customers who will respond to a marketing mix in a similar way. Companies will
select one of the market segments as a target market and tailore for a relavent
marketing mix with this market segment

Ideally, "good" market segments meet the following criteria:
-Homogeneous

(similar) within-it means the customers in a market segment

shaul be as similar as possible with respect to their likely responses to marketing
mix variables and their segmenting demensions
-Substantial-the

segment should be big enough to be profitable

-Operational-the

segmenting

dimensions

should be useful for identifying

customers and deciding on marketing mix variables.

2.4 Three principles to improve marketing strategy
2.4.1 Customer value principle

To succeed today in competitive
centered.

It means winning customers

value to them. Today's

customers

market, companies
from competitors

must be customer

by delivering

face a vast array of products

greater

and brand

choices, prices and suppliers. The marketing managers must find the answer for

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

the key question: How do customers choose more of their company's

products

rather than other companies'?
The answer is that customers choose the products, which offer them the
most value. Customers
services

are value-maximizers,

they will compare

so before purchasing

the actual value they receive

in consuming

products to the value expected, and this affects their satisfaction
behavior.

Customer

value and customer

satisfaction

goods or

the

and repurchase

are two elements

of this

customers is not enough. The globalization

makes

question.

2.4.2 Competitive advantage principle
Today, understanding
the business environment
develop,

companies

customers

become more competitive

must gain competitive

needs better than competitors

than ever. To survive and

advantages

by satisfying

target

do. For example: they might deliver

more value to customers by offering consumers

lower prices than competitors

for similar products and services or at the same prices as theirs competitors'
but with higher quality. Companies must consider the impact of competitors

as

well as the needs of target customers.
The
competitors;

first

step

assessing

is

competitor

their objectives,

selecting which competitors

analysis

involves

identifying

key

strategies,

strengths,

weaknesses

and

to attack or avoid. The second step is developing

competitive strategies that strongly position companies against competitors
give companies the strongest possible competitive

and

advantages

2.4.3 Segmenting and combining principle
In order to develop market-oriented
single

target

combined
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market

approach,

target market approach.

the multiple

strategies,
target

companies
market

These three approaches

use the

approach

or

involve defining

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Analyzing marketing mix strategy of Sa Giang Import Export Corporation

target market but they are different in nature. The people using the first two
approaches

are called "segmenters"

and the people us the third method are

called "combiners".
Combiners

try to satisfy the target customers pretty well by combining

two or more segments. They look at various submarkets
than differences

and select one marketing

for similarities

mix for these target customers.

combined target market approach may help achieve some economies
lessen the investment

rather
A

of scale,

which is suitable for the firms with limited resources.

However, this method stilI also has disadvantages.

If too many segments are

combined,

the differences

will be greater

similarities.

Consequently,

of the target markets

it is harder to develop marketing

than the

mixes that can

satisfy potential customers.
Segmenters try to satisfy the target market very well by developing a
different marketing

mix for each segment. The segmenter

really satisfies the

target market and he can often build up a close relationship

with customers.

Therefor,

matched

a segmenter

can offer a marketing

mix precisely

to the

needs of the target market. As a result, he can often charge a higher price that
produces higher profits.
A company
company's

capacity,

similarity

of customer

must

select

the most

the nature of competition

safer to be a segmenter

suitable

approach

for their

and the most important

needs attitudes and buying behavior.

In general,

the
it is

who satisfies some customers very well than to be a

combiner who satisfies many ones just pretty well.

Student:
Department:
Class:

THIEU KIM LUAN
INTERNATIONAL BUSINESS ADMINISTRATION
KD 0304

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