some recommendations to improve ha anh international commercial services company limited’s marketing strategy

The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Field Study Report
‘‘The Marketing Strategy of Ha Anh INCOSE Co.,Ltd’’
Student: Vi Nhat Anh
Class: TATM CN6 A1
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Hanoi, November 2009
Field Study Report
‘‘The Marketing Strategy of Ha Anh INCOSE Co.,Ltd’’
Student: Vi Nhat Anh
Class: TATM CN6 A1
Supervisor: Bui Nguyet Anh M.A
Hanoi, November 2009
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Acknowledgements
In the process of writing this report, I have gained a great deal in terms of project
planning, research methodology and information acquisition. But I could never have done
this work without the help and advice of many whose ability far exceeds my own. With
gratitude, I acknowledge a specific debt to my supervisor, Ms Bui Nguyet Anh, for her
invaluable advice and personal guidance from the planning stage to the completion of this
report.
My thanks also go to all my teachers at the Foreign Trade University for their devoted
teaching and for introducing me to the world of knowledge during my four and a half
years at the University. Their influence will remain with me for my entire life.
I would like to thank Ha Anh INCOSE Co.,Ltd for providing the information, data,

materials that enabled me to complete my report.
Finally, I wish to express my deepest appreciation to all people in my family for their
love, understanding and encouragement.
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
TABLE OF CONTENTS
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
INTRODUCTION
Nowadays, marketing is obviously more and more vital in the success of every enterprise.
However, not many of the companies in Vietnam have paid adequate attention to
marketing activities, especially when both domestic and global competition is getting
fiercer and fiercer.
Being one of the companies specializing in Production line and equipment for foodstuff
industry, mechanical engineering, construction machinery in Vietnam, Ha Anh
International Commercial Services Company Limited (HA ANH INCOSE CO.,Ltd) has
achieved certain successes in this field. Its sales of line and equipment for foodstuff
industry have increased over the years since its establishment. After taking a close look at
HA ANH INCOSE CO.,Ltd’ s performance, I decided to choose “Marketing strategies of
Ha Anh International Commercial Services Company Limited” as the topic for my field
study report with a view to examining Ha Anh International Commercial Services
Company Limited’s marketing strategy and making some recommendations to improve
it.
Ha Anh International Commercial Services Company Limited has a lot of business
activities, but because of limited time, this report focuses only on the company’s
marketing activities for one line of its business, that is line and equipment for foodstuff

industry, on the market in Vietnam.
Apart from the introduction and conclusion, the report is divided into 3 chapters as
follows:
Chapter 1: Theoretical Framework
Chapter 2: Marketing strategies of Ha Anh INCOSE Co.,Ltd
Chapter 3: Some Recommendations to Improve Ha Anh International Commercial
Services Company Limited’s Marketing Strategy
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Chapter 1
Theoretical Framework
1.1. The concept of marketing
1.1.1. The definition of marketing
Today’s then central problem facing businesses is not a shortage of goods but a shortage
of customers. Most of the world’s industries can produce far more goods than the world’s
consumers can buy. Overcapacity is resulted from individual competitors projecting a
greater market share growth than is possible. If each company projects a 10 percent
growth in its sales and the total market is growing by only 3 percent, the result is excess
capacity. This in turn leads to hyper competition. Competitors, desperate to attract
customers, lower their prices and add give away. These strategies ultimately mean lower
margins, lower profits, more failing companies, and more mergers and acquisitions.
Marketing is the answer to how to compete on bases other than price. Because of over
capacity, marketing has become more important than over.
If forced to define marketing, most people, including some business managers, say that
marketing means “selling” or “advertising”. It’s true that these are parts of marketing.
But marketing is much more than selling and advertising. Today, marketing must be
understood not in the old sense of marketing a sale-“telling and selling”-but in the new
sense of satisfying customer needs. Selling occurs only after a product is produced.

In contrast, marketing starts long before a company has a product. “Marketing is the
homework that managers undertake to assess needs, measure their extent and intensity
and determine whether a profitable opportunity exists. Marketing continues throughout
the product’s life, trying to find new customers and keep current customers by improving
product appearance and performance, learning from product sales results and managing
performance”
1
. So what does the term “marketing” mean? Actually, there is no single and
universally agreed definition of marketing. The American Marketing Association defined
marketing “is the process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods, and services to create exchanges that satisfy individual
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
and organizational goals”
2
.
The writer of the book “The Silk Road to International
Marketing” had another definition as follow: “Marketing is the process by which
decisions are made in a totally interrelated changing business environment on all the
activities that facilitate exchange in order that the targeted group of customers is satisfied
and the defined objectives accomplished ”
3
.
Though there are many definitions, a central
part of any definitions of marketing is the exchange process – the process of giving
something of value in return for something of value. Or in other words, it’s the process of
transferring between two or more parties of tangible or intangible items of value(see
figure 1.1).

Cash, debt, time, votes, behavior, etc
Health, safety, comfort, transportation, beauty, productivity, etc.
Figure 1.1: the exchange process
Source: Courtland L. Bovee, Jonh V. Thill , “Marketing”, 2
nd
edition, p.6.
For marketing to occur, at least four factors are required: (1) two or more parties with
unmet needs, (2) a desire and ability to satisfy them, (3) communication between the
_______________________
1
Amber, T.and Styles, C.(2000), The Silk Road to International Marketing, Harlow: FT Prentice Hall
2
Arch G. Woodside(1990), Outdoor advertising as experiments, Journal of the Academy of Marketing science.
3
Berkkowitz, Kerin, Hartley, Rudelius, (1990), Marketing, 2
nd
edition, Irwin McGrawHill.
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Marketer
Goods, Services,
ideas,
People and Places
Marketer
Goods, Services,
ideas,
People and Places
Customers
Wants and needs.

The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
parties, and (4) something to exchange
4
. Here’s what Berkowitz stated in his book
“Marketing”. As marketing is a kind if exchange, certain conditions must exist before the
exchange can occur.
1.1.2. The goals of marketing.
“Today’s successful companies at all levels have one thing in common; their success is
founded upon a strong customer focus and heavy commitment to marketing”
5
. They
motivate everyone in the organization to deliver high quality and superior value for their
customers, leading to high levels of customer satisfaction. These organizations know that
if they take care of their customers, market share and profits will follow. Creating
customer values and satisfaction is at the very heart of modern marketing thinking and
practice. The goal of marketing is to attract new customers by promising superior values,
and to keep current customers by delivering satisfaction. When a company succeeds in
creating more values for customers than its competitors can do, that company is said to
enjoy competitive advantage in an industry.
1.2. Competitive Analysis
It is the increasingly emerging markets that have created favorable conditions for the
rapid development of world trade and investment, which is well – manifested in the
sophisticated growth of a number of global companies. To compete in one or more
foreign markets, companies not only need to broaden relentlessly their sources of
competitive position. One particularly useful technique in analyzing a firm’s competitive
position relative to its competitors is SWOT (strengths. Weaknesses, opportunities, and
threats) analysis aims to isolate the key issues that will be important to the future of the
firm and that will be addressed by subsequent marketing strategy. A SWOT analysis
divides the information into two main categories (internal factors and external factors)
_________________________

4
Courtland L. Bovee, Jonh V. Thill, (2000), “Marketing”, 2
nd
edition
5
Crag, C.S and Douglas, S.P. (2000), International Marketing Research, Chichester: Wiley
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
and then further into positive aspects (strengths and opportunities) and negative aspects
(weaknesses and threats).
The internal factors could be viewed as strengths or weaknesses, depending upon their
impact on the firm’s positions; i.e., they may represent strength for one firm but a
weakness, in relative terms, for another. They include all of the marketing mix (product,
price, promotion and place strategy) as well as personnel and finance.
The external factors, which again may pose a threat to one firm but create opportunities
to another, include technological changes, legislation, socio-cultural differences, and
change in the market place or competitive position.
1.3. Global Marketing Strategy
In terms of globalization, worldwide businesses use global marketing when they take the
same or similar approach or content for one or more elements of the marketing mix, that
is, the same or similar brand names, advertising. And so on in different countries.
Although most of the multinational companies using global marketing mix-product,
pricing, promotion and place – are standardized. Business can make some elements of
marketing more global and others less so. Accordingly, possible adaptations that firms
might apply to their product, promotion, price, and place when they enter through the
foreign markets will be provided in this part.
1.3.1. Product
There are five international product and promotion strategies for a company to extend its

market base into other geographic markets (See table 1.1).
Straight extension means marketing the product in the foreign market without any
adaptation. Top manager asks its marketing people to “find customers for the product as
it is”. As a result, it is seen as the easiest product marketing strategy and may be the most
profitable one as well. However, the company should first determine whether foreign
consumers use that product or not. Straight extension has been successful with cameras
consumer electronics, and many machine tools. This strategy is tempting because it
involves no additional product development cost, manufacturing changes, or promotional
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
modification. But it can be costly in the long run if products fail to satisfy foreign
consumers.
Table 1.1: Five international product and promotion strategies
Product
Promotion
Do not change
product
Adapt product Develop new
product
Do not change
promotion
Straight extension Product
adaptation Product
invention
Adaptation
promotion
Communication
adaptation

Dual adaptation
Source: Subhash C.Jain (1995), international marketing management
Product adaptation involves changing the product to meet local conditions or preferences.
There are several levels of adaptation. A company can produce a regional version, a
country version, a city version or even promotion retailer versions of its products.
Although, products are frequently adapted to local tastes, in some instances they must be
adapted to local superstitions or beliefs, too.
Product invention consists of creasing something new the foreign market. It can be
divided into two forms. The first is backward invention, which means reintroducing
earlier products forms that happen to be well adapted to the needs of a given country.
And forward invention is to create a new product to meet a need in another country.
6
1.3.2. Promotion
Companies can either adopt the same promotion strategy they used in home market or
change it to suit each local market. Although some global companies use a standardized
promotion campaign changes might be needed to comply with local regulations and
references. There are four different levels of adapting promotion strategy.
_______________________
6
Subhash C.Jain (1995), International Marketing Management
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Firstly, companies can use one message everywhere, varying only the language, name,
and colors. That is because colors might be changed to avoid taboos in some countries.
Also, names and slogan may have to be modified in some countries. Secondly,
companies may use the same name globally but adapt the copy to each local market.
Thirdly, companies can develop a global pool of advertising from which each country
selects the most appropriate one. Finally, some companies allow managers to create a

specific advertisement – within guidelines, of course.
Other companies follow a strategy of communication adapting their advertising messages
without any product change. Although it retains the scale economy on the manufacturing
side the firm sacrifices potential saving on the communication way. Another strategy is
dual adaptation. It is changing both the product and the communication to face local
differences.
1.3.3. Price
Global companies face several problems in setting their international prices. Those
problems must be dealt with price escalation, transfer prices, dumping charges, and black
markets.
Price escalation problem occurs when companies sell their goods abroad. The foreign
prices probably will be higher than their domestic ones because it must add the cost of
transportation, tariffs, importer margin, wholesaler margin, and retailer margin.
Depending on these added costs, the product may have to sell for two to five times as
much as in another country to generate the same profit. Since cost escalation varies from
country, companies have three price setting approaches in different countries.
Setting a uniform price everywhere: charging the same price everywhere in the world. By
this method, companies would have quite different prices in different countries because
of varying escalation costs. Also, this strategy would result in too high price in poor
countries and not high enough in rich countries.
Setting a market-based price in each country: charging what each country could afford.
But this strategy ignores differences in the actual costs from country to country. In
addition, it could lead to a situation in which intermediaries in low-price countries reship
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
to high-price countries. Setting a cost-based price in each country: using a standard
markup of its costs everywhere. But this strategy might price out of the market in
countries where costs are high.

Another problem arises when a company sets a transfer price (i.e., the price that it
charges to another unit in the company) for goods that it ships to its foreign subsidiaries.
If a company charges too high a price to a subsidiary, it may end up paying higher tariff
duties, even while paying lower income taxes in that country. If company charges its
subsidiary too little, it can be charged with dumping. Dumping occurs when a company
charges either less than it costs or less than it charges in its home market, in order to enter
or win a market.
7
Various governments are watching for abuses and often force
companies to charge the arm’s-length price – that is, the price charged by other
competitors for the same or a similar product.
Global companies also face the black-market problem. A black market means the same
product is sold at different prices geographically. Dealers in the lower-price country find
ways to sell some of their products in higher-price countries, thus earning more.
8
Very
often a company finds some distributors buying more than they can sell in their own
country and reshipping goods to another country to take advantage if there are price
differences. Multinationals try to prevent black market by policing the distributors, by
raising their prices to lower-cost distributors, or by altering the product characteristics or
service warranties for different countries.
Moreover, one challenge of global pricing in recent years is that countries with
overcapacity, cheap currencies, and the need to export aggressively have pushed prices
down and devalued their currencies. For multinational firms this poses great difficulties.
Sluggish demand and reluctance to pay higher price make selling in these emerging
markets harder. Instead of lowering prices, and taking a loss, some multinationals have
found more lucrative and creative means to deal with this problem.
_____________________________
7
Keegan, Warren J.(1995), Multinational Marketing Management

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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
8
Kotler, Philip(2000), Marketing Management.
1.3.4. Place (distribution channels)
Global companies must take a whole-channel view of the problem of distributing
products to final consumers. Figure 1.2 show the three major links between the seller and
the ultimate user. In the first link, seller’s international marketing headquarters the export
department or international division makes decisions on channels and other marketing-
mix element.
9
The second link, channels between nations, maces the products to the
borders of the foreign nations.
10
The decisions made in this link include the types on
intermediaries (agents, trading companies) that will be used, the type of transportation
(air, sea), and the financing and risk arrangements. The third link, channels within foreign
nations, moves the products from their foreign entry point to final consumers.
11
Channels of distribution within countries vary greatly from nation to nation first, there
are large differences in the numbers and types of intermediaries serving each foreign
market. Long channels of distribution means that the consumer’s price ends up double or
triple the importer’s price. Another difference lies in the size and character of retail units
abroad. Breaking bulk remains an important function of intermediaries and helps
perpetuate the long channels of distribution, which is a major obstacle to the expansion of
large-scale retailing in developing countries.
1.4. The marketing mix strategies
Philip Kotler, in his book “Principles of Marketing”; defines marketing mix as “the set of

controllable tactical marketing tools – product, price, place and promotion – that the firm
blends to produce the response it wants in the target market”
12
. These ingredients must be
manipulated in a manner which ensures targeted customers are satisfied, marketing
strategies are implemented and desired brand positioning is achieved.
_______________________
9,10,11
Charlers Hill(1997), International Business
12
Philip Kotler, Gery Armstrong, John Saunders, Veronica Wong, principles of Marketing, 2
nd
edition,p.97
Figure 1.2: whole-channel concept for international marketing.
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Source: Chatles Hill(1997), international Business
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Seller’s international
Marketing
headquarters
Seller
Channels between
nations
Channel within foreign
nations

Ultimate buyers
The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Chapter 2
The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
2.1. An Introduction to Ha Anh INCOSE Co.,Ltd
2.1.1 Company development
Ha Anh INCOSE Co.,Ltd was founded on 24th March 2006. Ha Anh INCOSE Co.,Ltd’s
headquarters was located at 22 Alley 72/124, Hoang Ngan, Cau Giay, Ha Noi. It has 4
branches and plants nationwide in Ha Noi, Nghe An, Da Nang and Ho Chi Minh city, and
a network of distributors around the country. Since its establishment, Ha Anh INCOSE
Co.,Ltd has operated in various fields: Production line and equipment for foodstuff
industry, mechanical engineering, constructions, fiduciary agent import and export for
every company in Viet Nam. Medical and technical equipment and machinery;
Construction machinery and materials and equipment of its own.
After two years of operation, Ha Anh INCOSE Co.,Ltd expanded into other areas such as
information services, supplying and assembling for food machinary and other equipment.
2.1.2. Company’s products
Ha Anh INCOSE Co.,Ltd specializes in selling the following:
Production line and equipment for foodstuff industry such as: Juice Machinery, Food
packaging machinery, Food ration packing equipment, Canning machinery, Food product
line etc
mechanical engineering, constructions fiduciary agent import and export for every
company in Viet Nam.
Construction machinery and materials and equipment of its own and other electronic
products.
Besides, Ha Anh INCOSE Co.,Ltd also provide other services such as maintenance for
medical and technical equipment
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
2.1.3. Company’s Organization
2.1.4. Board of Directors
Ha Anh INCOSE Co.,Ltd’s Board of Directors includes a Director General and 2 Deputy
Directors General.
Director General: Leading the company’s Board of Management is the Director General
who is responsible for managing the use of capital, human and other resources.
Two Deputy Directors General: These people provide assistance to the Director General.
They would sometimes act on behalf of the Director General in his absence. One of them
is responsible for the trading, planning, financial and accounting matters and the other is
in charge of technical and research and development aspects in the company.
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Board of Directors
Deputy General
Director
General Director
Deputy General
Director
Quality
Acceptance
Department
Tectnical
Department
Trading
Department
Financial &
Accounting
Department

HR
Department
The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
2.1.5. The departments
There are five departments, each of which is responsible for a certain part of the
company’s activities.
Trading department: this department helps the Board of Directors with trading
activities. These include organizing both domestic and international business. The trading
department is also responsible for:
Doing marketing researches on products.
Promoting the company’s products through advertisements.
Holding negotiations and getting contracts for the company.
Organizing distribution channel for the company’s products.
HR department: this department is in charge of deciding what staffing needs, using
independent contractors or hire employees to fill these needs, recruiting and training the
best employees, ensuring they are high performers, dealing with performance issues, and
ensuring company personnel and management practices conform to various regulations
Financial and Accounting department: this department deals with all financial and
accounting matters. Another main function is to manage the use of capital to the right
purpose, right policies and regulations, and to assist business activities.
Technical department: this department is in charge of technical and technological
matters. The staff of this department also works closely with the factories to do
researching and applying the modern equipment and technical advance to the
manufacturing and processing. This department for the purpose of the company’s
business development tales all the adjustments or improvement to the technology.
Quality assurance department: this department takes control over the quality of the
products. This is for the purpose of assuring that all the products will meet customers’
requirements.
2.1.6. Company trading results
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Table 2.1: Ha Anh INCOSE Co.,Ltd’s trading results in recent years.
2007 2008 2009
Total sales 1.570 2.282 2.550
Net profit 320 540 720
Source: Ha Anh INCOSE Co.,Ltd’s finalcial reports. Unit: million VND.
2.2. The marketing strategy of Ha Anh INCOSE Co.,Ltd
2.2.1. SWOT analysis of Ha Anh INCOSE Co.,Ltd
As mentioned in the previous parts, Ha Anh INCOSE Co.,Ltd has been trading in
a lot of products such as: Line and equipment for foodstuff industry ; Medical and
technical equipment and machinery; Mechanical engineering, constructions,
fiduciary agent import and export for every company in Viet Nam; Construction
machinery and materials and equipment of its own and other electronic products.
but with the limited time, this report focuses on the marketing strategy that Ha
Anh INCOSE Co.,Ltd has used while dealing in Line and equipment for foodstuff
industry only. In this light internal strengths and weaknesses, as well as external
opportunities and threats that Ha Anh INCOSE Co.,Ltd faces while trading in Line
and equipment for foodstuff industry will be identified for the understanding of Ha
Anh INCOSE Co.,Ltd’ marketing strategy.
Table 2.2: SWOT analysis of Ha Anh INCOSE Co.,Ltd
- Good quality
- Competitive price
- Good business relation with
partners
- Customers’ loyalty
- Ha Anh INCOSE Co.,Ltd’s
corporate culture
- Better market growth

- Limited capital - Growing black market
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
- Small size and small market share
- Not enough technical staff
- Lack of diversification in product
quality
- Poor promotion activities.
- Fierce competition
2.2.2. Strengths
The first strength of Ha Anh INCOSE Co.,Ltd is that Line and equipment for foodstuff
industry are of good quality. Ha Anh INCOSE Co.,Ltd’s Line and equipment for
foodstuff industry are imported from of famous companies in China, Japan, Taiwan with
famous brands such as Pacelead, Brother, Hofen, Lonhon… These are famous brands
in the world market and Vietnamese consumers highly appreciate them. Ha Anh INCOSE
Co.,Ltd has never had any complaint about the product quality.
The second strength is that Ha Anh INCOSE Co.,Ltd has been offering very competitive
prices for its Line and equipment for foodstuff. Ha Anh INCOSE Co.,Ltd has a certain
advantage: Ha Anh INCOSE Co.,Ltd has always kept its prices as competitive as
possible. Its prices are among the lowest for Line and equipment for foodstuff, usually
between 7% and 10% lower than its competitors.
The third strength of Ha Anh INCOSE Co.,Ltd is the good relation with its business
partners. Ha Anh INCOSE Co.,Ltd has maintained its corporation with the above
mentioned business suppliers for many years and has always been highly valued by them.
This is an advantage for Ha Anh INCOSE Co.,Ltd. Every years, its technical staff are
offered technical training by the foreign experts from Ha Anh INCOSE Co.,Ltd’s
suppliers. Many if these staff also have chance to go abroad to get training. Moreover,
when there is a technical problem at Ha Anh INCOSE Co.,Ltd, it immediately receives

assistance from its partners.
The forth strength of Ha Anh INCOSE Co.,Ltd is its customers’ loyalty. As mentioned
above, besides good quality, competitive prices, and good business relation with its
partners, Ha Anh INCOSE Co.,Ltd’s customers’ has contributed a lot of the company’s
success. The after sales services of the Ha Anh INCOSE Co.,Ltd has been developing
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
and improving rapidly over the years. This hepls the firm to keep in touch with the old
customers. And by words of mouth, these people have brought new customers for the
company.
In addition, Ha Anh INCOSE Co.,Ltd frequently holds customer meetings in which
customers would have chances to express their thoughts about the company products and
services, this enables the company to get market research information to built up its
reputation and customers’ loyalty.
The last strength is the corporate culture of Ha Anh INCOSE Co.,Ltd. Employees of Ha
Anh INCOSE Co.,Ltd are infused with an open, value-based corporate culture. The
cornerstones of the company’s values are:
• Staff satisfaction
• Respect for the individual
• Achievement
• Continuous learning
Ha Anh INCOSE Co.,Ltd’s management seeks to internalize these values through
debates and discussions among teams. Its annual strategy meetings, plays an important
role in this process. The meeting focuses on brainstorming about technological and life-
style trends and discussing strategic priorities of Ha Anh INCOSE Co.,Ltd in the market.
2.2.3. Weaknesses
Firstly, limited amount of capital is posing a difficulty for Ha Anh INCOSE Co.,Ltd. The
company’s capital hasn’t been expanded much since its establishment.

The main source for its capital has been contributions of it shareholders and Ha Anh
INCOSE Co.,Ltd has had a lot of difficulties in finding other sources of capital.
As we all know there are four main sources of investment capital that domestic
companies may access:
Long-term credits provided by commercial banks on commercial basic:
• Government’s investment and Development Support Fund
• Soft loans and/or grants from foreign countries
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
• Non-banking capital, including company’s equity and funds mobilized
from the informal banking system including the company’s employees.
With regards to investment capital from banks, Vietnamese banks are short of investment
capital, because of the lack of long-term deposits, which in turn due to the regulated
interest rate and low reputation of the banking system. As a consequence, it is normally
hard to get long-term ones. This mismatch of maturity causes many problems to
Vietnamese companies including Ha Anh INCOSE Co.,Ltd.
Secondly, Ha Anh INCOSE Co.,Ltd’size and market share have been small. The
shortage of capital is the main cause of the company’s modest size and market share. Up
to now, Sow has had only 4 branches dealing in conditioners nationwide in Ha Noi,
Nghe An, Da Nang and Ho Chi Minh city. As a result, its market share is among the
lowest in the market for Line and equipment for foodstuff in Vietnam. This is a major
weakness for Ha Anh INCOSE Co.,Ltd, and the company has to be determined to
overcome this if it is to be successful in the future.
Thirdly, another weakness of Ha Anh INCOSE Co.,Ltd is its lack of technical staff.
Although the current technical staff of Ha Anh INCOSE Co.,Ltd are qualified, but they
are so few in terms of quantity. The company’s customers has never complained about
Ha Anh INCOSE Co.,Ltd’s product quality or the quality of the maintenance work that
its staff have done, but has complained about the late reply and maintenance service of

the company. The reason for this is the company’s not enough technical staff. This is also
one factor resulting in the low market share of Ha Anh INCOSE Co.,Ltd
Lastly, Ha Anh INCOSE Co.,Ltd has had rather poor marketing and promotion practices.
Marketing and promotion practices of Vietnamese enterprises are poorly and
insufficiently performed. Promotion is limited to market research. In addition, the
organization of trade fairs and collecting information with such important tasks as export
consultation, trademark formation and the provision of market information have not
effectively been undertaken.
Additionally, just like many of Ha Anh INCOSE Co.,Ltd’s competitors, it also has its
own web site in order to develop their images and advertising their main products.
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
However, most of those web sites are not attractive enough and the information about
their businesses is not sufficient enough to appeal to customers.
2.2.4. Opportunities
The only opportunity for Ha Anh INCOSE Co.,Ltd is that can have a better market
growth in the near future. There are two reasons for this. Firstly, the market in Vietnam
for Line and equipment for foodstuff industry is growing rapidly because there are more
customers for this item. Secondly, Ha Anh INCOSE Co.,Ltd is now considering
expanding, as it is looking for more sources of capital. Some employees in Ha Anh
INCOSE Co.,Ltd are thinking of investing in the company by buying its shares.
2.3. Ha Anh INCOSE Co.,Ltd -marketing mix
2.3.1. Product
Famous international firms as products, which fundamentally provide its customers with
various benefits make foodstuff of Ha Anh INCOSE Co.,Ltd become a good choice of
many customers. These are core benefits, generic product, exported product and augment
product. The core benefit of Ha Anh INCOSE Co.,Ltd is the usage of product-which the
target customer finds.

Moreover, the quality of Ha Anh INCOSE Co.,Ltd’s foodstuff has been maintained over
the years. There has been no complaint from the consumers about their products. The
company’s two-year guarantee period is also satisfactory to consumers.
2.3.2. Price
The first strategy that Ha Anh INCOSE Co.,Ltd adopts is low price strategy as most of
competitors. This policy of pricing is much more attractive to customers as Ha Anh
INCOSE Co.,Ltd’ prices normally are among the lowest for air foodstuff’.
The second strategy that is applied by Ha Anh INCOSE Co.,Ltd’s for Line and
equipment for foodstuff is price competition As a result, the price of Ha Anh INCOSE
Co.,Ltd’s Line and equipment for foodstuff sold by these retailers may be cheaper as
some of them may want to satisfied their commission per two-way to get profits from
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The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
selling a big amount. It is the price competition between Ha Anh INCOSE Co.,Ltd
retailers that benefits customers.
2.3.3. Place
A good distributing policy helps business activities safer, increasing the connection in
business, decreasing competition and marketing the circulation of goods more quickly
and efficiently.
In the domestic market Ha Anh INCOSE Co.,Ltd has good relations with its partners so
they help Ha Anh INCOSE Co.,Ltd very much in the distribution. They help Ha Anh
INCOSE Co.,Ltd win over other rivals even in the fiercest competition. The company not
only supplies its two ways to these retailers, but also supports them in terms of outlet
decoration, staff training and marketing activities. Besides, each retailer will get a juicy
bonus if a product line is sold.
2.3.4. Promotion
Promotion is the aspect of marketing concerned with increasing sales. Marketing must be
considered on marking production decision, and promotion must be considered in the

overall marketing process. Promotion attempts to persuade and influence the customer’s
attitude in various ways.
Ha Anh INCOSE Co.,Ltd has used some ways to advertise its product such as
advertisements on television, internet, newspaper, magazine…. However, they
advertisements are not very efficient.
Ha Anh INCOSE Co.,Ltd uses two promotion strategies that is pulling strategy and
pushing strategy to each target customer as illustrated in the following figure:
Figure 2.3: Pulling strategy

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Factory Wholesaler Retailer Customer
The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Ha Anh INCOSE Co.,Ltd uses this strategy to make the customers have an idea and
believe in product and buy the products of Ha Anh INCOSE Co.,Ltd
Figure 2.4: Pushing strategy
Pushing strategy aims at company and branch office dividing the price for advertising
and discounted price. Ha Anh INCOSE Co.,Ltd uses this strategy because there are many
branches in company.
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Factory Wholesaler Retailer Customer
The Marketing Strategy of Ha Anh INCOSE Co.,Ltd
Chapter 3:Some Recommendationsto Improve Ha Anh
INCOSE Co.,Ltd’s Marketing Strategy
3.1. Some recommendations to the Government and relevant authorities
In doing business, Ha Anh INCOSE Co.,Ltd in particular, and other enterprises in
general, are facing not only subjective problems but also objective ones, which need

efforts and solutions from the government.
It is, therefore, recommended that our government should take these following actions so
as to create better business environment for companies like Ha Anh INCOSE Co.,Ltd.
3.2. Recommendations to Ha Anh INCOSE Co.,Ltd.
Global marketing strategy is not about standardizing the marketing process on a global
basis. Although every element of the marketing process – product design, product and
brand name, packaging, pricing, advertising strategy and execution, promotion, and
distribution – may be a candidate for standardization, standardization is just one part of a
global marketing strategy. Consequently, striking the right balance between
standardization and localization greatly contribute to Ha Anh INCOSE Co.,Ltd’s success.
Ha Anh INCOSE Co.,Ltd has developed a combination of standardization and
localization of marketing programs to match Vietnamese market.
3.2.1. Improving the company’s marketing mix
The company needs to build up a good marketing mix for the current marketing strategy,
which bases on the four elements:
Product: improving the quality and diversifying categories of products is the core of
product element in the marketing mix. As discussed above, the market for Line and
equipment for foodstuff in Vietnam is becoming more sophisticated with a variety if
different demands. The small portion of the market usually set high requirements for the
trend-catching and material-selecting criteria of the imported Line and equipment for
foodstuff.
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