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KẾ HOẠCH TIẾP THỊ TRỰC TUYẾN CỦA CÔNG TY OSC

TABLE OF CONTENTS
PREFACE.........................................................................................................................................1

ONLINE MARKETING PLAN OF OSC

PREFACE
Handicraft products are found to have a long tradition in Vietnam and were exported
quite early compared to other commodities; they have contributed positively to total
exports of the country and have an important role in solving some social and economic
problems in rural areas. These products have a quite high annual average growth rate of
about 20% a year, with the total exported value reaching 300 million USD in 2004 and
more than $ 750 million in 2007; in 2008, despite the impact of the global recession, the
exported value of the whole country still reached nearly $ 1 billion. Even though the
exported value of handicrafts in recent years is not significant, but it has the important
role in economic restructuring in rural areas and attracts many workers.
In addition, the export value of these products bring great added value so it can be
considered to be the key sector to focus to increase the export in the coming years.
Compared with some other products such as clothing, wood and leather which have to
import raw materials so the real value of foreign exchange is only accounted for around
5-20% of the total value of imports. But for this product, since the material was
collected from scrap and secondary materials of agricultural and forestry products, the
real value of foreign currency revenues are high; for example there are handmade items
which almost reach 801-100% of export value. For every 1 million USD export value of
handicrafts sector, the profit is 5-10 times higher than the mining industry; creating
approximately three to five thousand jobs; the group of handicraft products is classified
as group which has great export potential and high margins. It has also been listed in the
list of top 10 items with highest growth. (Source: Vinanet)

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A. ABOUT OSC

1. Establishment and development
- Name: OSC Commercial and Service Joint Stock Company
- Address: 15th floor, Tosy Building, extended part of Nguyễn Phong Sắc street
OSC is OSC Commercial and Service Joint Stock Company established in 2005. The
company is a member of Group 66; over 06 years in business, the employees of the
company have constantly strived to create strong growth for the firm. With these efforts,
the company has established 03 sub-units including 03 processing and manufactoring
factories and 02 branches.
With the total number of staff of more than 300 and highly qualified executive
management team which is experts and technicians graduated from university or
college; the annual turnover of the company has reached from 200 to 300 billion Dong.
2. Business field and scope
OSC’s business field and scope includes:
• Manufacture fefined furnitures
• Manufacture high quality handicrafts from ceramic, bamboo and wood
• Exploit and process the forestry products
• Import and export services, customs registering, freight forwarding, warehousing
• Travelling, hotels and restaurants, events managing
• Labor export service
• House building and renting services
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To improve the quality of products, the company is adopting the quality management
systems with ISO 9001:2000 standards; with that, OSC has created trust with the client
and the company's brand OSC is known more widely.

3. Goals and development orientation until 2015
The plan of developing the business from 2015, the company will focus on several
major following goals:
Improve quality of the products in order to make it able for handicraft products to
enter the U.S. and European market through online marketing
• For the commercial service, will upgrade the OSC hotel to 3-star scale with 80
-100 rooms, diversify tourism activities such as organizing events, flight ticket
agents, organizing international travel tours, creating a fleet for toursist service.
The Customs registering service will gradually be transfomred into logistic
service.
• These projects will be implemented through various forms such as bank loans,
issuing more chartered capital, cooperating with the domestic and foreign
investors.
The goal of the OSC in the future is to improve the quality of products in order to make
it able for handicraft products to enter the U.S. and European market through online
marketing. Therefore, I chose the topic of "Online sale of souvenir and handicraft
products of Vietnam" to analyze in my individual assignment.
Nowadays, besides implementing marketing and traditional advertising through media
such as newspapers, radio .... or through introducing that sellers and buyers meet each
other at one point like in the past; online sales and marketing is a “flexible and
proactive” sales and distribution channel which is indispensable for people’s life.
In the scope of this individual assignment, I only mentioned an innovative marketing
plan which is effective in today society. It's the online marketing plan by selling online
the souvenir and handicrafts products of OSC in order to ensure that the product reaches
the customer of the following groups:
- Foreigner tourists visiting Vietnam
- Vietnamese people who live outside the country
- The collector of art and handicraft products of Vietnam
In order to conduct online marketing plan effectively, OSC should create a detailed plan
and adopt one of the model and marketing tools that OSC consideres as a great way to

achieve efficiency and maximum profits.


B. MARKETING PLAn
1. Market analysis
1.1. Sector
Crafts, art and household items made from Vietnam's traditional materials such as
ceramic, porcelain, lacquer, rattan, bamboo, papyrus, wood, stone, silk, horn, ivory,
silver, copper, ... through the skilled hands of the artist in traditional handicraft villages,
became the consumer and export products that bear deep cultural and ethnic value of
Vietnam.

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In recent years, the handicrafts export market of Vietnam has been increasingly
expanded, aside from major markets such as Germany, France, Korea, Japan ..., the
handicrafts of Vietnam are now present in 163 countries and territories around the
world.
According to the Ministry of Industry and Commerce, the European markets has great
demand for these products; in recent years EU has imported about 7 billion USD and
Vietnam has also gained about 5.4% of that amount. EU will be a promising market for
handicraft product of Vietnam.
1.2. Target markets:
1.2.1. About export market:
Markets that achieve high value of export
No
Country
USD
1.

Germany
2.654.351
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Japan

2.334.715

U.S.A

1.326.129

Taiwan

818.839

Italy

707.760


Korea

642.458

Holland

532.641

UK

489.056

Spain

472.925

Australia

453.797

France

426.643

Poland

404.544

(Source: The statistics Office)


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Ranking
1
2
3
4
5
6
7
8
9
10
11
12


1.2.2. About export categories:

(Source Vinanet)
1.2.3. Some main indicatorsof the first five months in 2011(increase/decrease)
over the same period in 2010
No.

Increase/Decrease
Percentage (%)

Indicators

1.

Value of industrial manufacture

+14,2

2.
The total amount of retails and consumer service revenue

+22,5

3.
Total export value

+32,8

4.
Total import value

+29,7

5.
Foreigner tourists coming to Vietnam

+18,0
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6.Implemented investment of government budget compared to
39,0
yearly plan
7.Average Consumer Price Index for the first five months of

+15,09
2011 compared to the same period in 2010
(Source: The statistics office)
Looking at the data of the tables from 1.2.1 to 1.2.3 we can see that:
The countries that have high export turnover (target market) of the OSC which mostly
are neighboring countries such as Taiwan, Korea, Japan to Germany, Italy, Netherlands,
UK, Spain ... are all developed countries where using internet as a tool for work,
entertainment, shopping, reference ... is really inevitable and indispensable in life. This
can be seen as an opportunity as well as a challenge for the OSC to improve the selling
method to online method. The opportunity lies in the fact that the product of OSC is
very diverse; the company has many skilled, qualified staff with skills and enthusiasm
in work; it also has the manufacturing factories and a wide network of branches. One
more advantage over other sectors, since it’s mainly produced from materials available
in the country, the actually earned foreign currency from exporting handicrafts are quite
high, from 95% to 97% ... However, the challenge is that online sales actually is a new
style, which requires more investment and technology than the traditional selling
method. Besides, it’s a must to be able to keep the trust and confidence of foreign
customers when they view, select and purchase products by looking at the photos on the
online sales website. Some markets such as Japan and Canada which have the high
imported rate of handicrafts, so the competition is very strong. Exporters who wish to
enter these markets should consider the factors of producing sample faster, answering
requests within a day, the delivered products match the specifications agreed upon or
match the agreed sample; continuity of supply, maintaining high quality at competitive
prices; suitable packaging for sea transporting... In addition, the price of handicrafts
depends on the quality factor which relies upon the craftsmen and raw materials used. In
particular, most of these markets require the products to have high-quality, durable, and
must be in good condition when being placed on sale. Therefore, the exporter should
pay attention to the specific requirements for labeling and packing accuracy. Every craft
to be used outside must be able to withstand temperature and humidity, while the
products for children have to meet safety requirements and standards. However, the

increase (+) in total exports and the number of international visitors to Vietnam shows
that the market to develop the sale and export of handicraft products and souvenirs has a
lot of potentials for OSC to penetrate and develop the marketing plan, especially online
marketing plan.
2. SWOT Analysis
STRENGTHS
- The management board is competent,
trustworthy, have wide network of contacts
and experience in the field of trading and
processing, manufacturing handicraft
products, focused management
- Well-trained employees with knowledge,
devotion and commitment for the

WEAKNESSES
- The contract acquired due to the
connection of the General Director
- The material is in danger of depletion.
This situation occurs for most types of
products. Bad and unstable supply of
rattan, bamboo ... , the source of precious
wood become more and more scarce due

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company
- The company directly selects the input
material for processing and outsourcing,
diversified product types and designs

which meet the requirements of customers
in strict country such as Germany and
Japan.
The company has import and export
services, customs registering, logistics and
warehousing, travel, hotels, restaurants,
events
management,
labor
export
service ... this is also an advantage in
serving
international tourists and
identifying the needs of tourists, abroad
living Vietnamese about handicraft
products in other countries .
- The company has high prestige in the
field of hotels and restaurants service,
events management, and with this
advantage the company will be able to
promote further about their products.
OPPORTUNITIES
The
industry
of
processing,
manufacturing and exporting handicrafts,
souvenirs are promising potential as
Vietnam is integrating into the world
economy; the introduction of the

traditional culture of Vietnam's to the
world is essential.
- The number of visitors visiting and
coming to Vietnam is increasing
- The number of living abroad Vietnamese
return to develop and contribute for the
country is also increasing
- The experience in management, prestige
and fame in the field are the great
advantages of the company in the
upcoming time
- The ability to access, to learn the modern
technology in the world will help the
company to promote its position and
develop the products design competence.
- In order to save time, cost, and to satisfy

to forests being cut down by people. This
fact has greatly impacted the cost, price
and competitiveness of Vietnamese
products to products of other countries.
- The demand of foreign tourists for
handicraft is very diverse and seasonally
changing. The life cycle of a product is
very short; therefore it requires the
company to be very flexible to be able to
meet those requirements.

CHALLENGES
- Diversify the business scope, broaden

the online businees in order to meet the
demand of foreign customers who don’t
have time to really learn about Vietnam or
wish to know more about the traditional
products which carry the cultural traits of
Vietnam.
- The challenge of accessibility to new
modern technology
- The challenges for the employees (need
knowledge and experience about law and
regulations, good language ability, good
negotiation skills… ability to get used to
information technology (IT) and use the
supporting tools such as facebook, blog
360o, website… as well as the ability to
design the products quickly along with the
new trends of the world
- Improve the competitive advantage to
other domestic companies.

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the selection demand. People are
increasing the demand for trading, selling
and buying through Online Store (Shopa
on Internet), or the websites of introducing
and selling products.
3. Competitors
Export has an important role in the development of a nation’s economy; it facilitates the

economic development in a healthy way and also help countries to identify and
effectively use their comparative advantages.
Along with the global trend, Vietnam is increasingly integrating into the regional as well
as the world economy. In order to survive and stand firmly in the market, all the
companies always have to fierely compete with not only domestic firms, but also with
the even more dangerous competitors which are foreign companies and transnational
corporations.
Being a company which was established and developed in the volatile and competitive
market economy, OSC has constantly tried to thrive is business and production, in
addition to frequently analyse the competitors in order to become more complete and
get the best of its competence.
The first to be analysed are the domestic companies producing and exporting products
made from bamboo and rattan as well as handicraft products, as they are the one who
compete directly with the OSC on the export market of bamboo and rattan products :
 The bamboo-rattan products manufacturing and exporting company
THAI BINH :
The main markets are USA and EU. Annual revenue: more than 30 billion
dongs .

Strengths
• Able to take advantage of the local
labor resource with more than 20000
workers.
• Was established in a traditional
handicraft village
• Able to take advantage of the support
of capital and land from the local
government

Weaknesses

• The workers still mainly work
based on self experience, therefore
the skills are underdeveloped
• Having difficulty about investment
capital to expand production and
train employees.
• Production technology hasn’t been
invested appropriately
• Local material can only meet 20%
of the demand, unstable and costly
supply source
• The design and diversification of
the products haven’t been given
enough attention
 The bamboo-rattan import and export company ĐOÀN KẾT 1:
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Main markets are Germany and Japan, annual revenue from 2,5- 3 million
USD
Strengths
Weaknesses
Being the most competent company
• Unstable and passive supply source
of the famous bamboo-rattan village
• Inconsistent product quality
Phu Vinh
Have 3 manufacturing factories with
more than 200 skilled workers along
with hundreds of temporary workers
The products’ brand has been
established in many countries with a
lot of types and diversified designs.
Modern technology
Always focus on the human resource
training and developing
Being a well-known and reliable
company
 China is the country which has the biggest market share of exporting
bamboo-rattan products in the competing markets with Vietnamese
companies such as USA, EU, Japan... Generally, Chinese companies have
the following notable characteristics:

Strengths
Weaknesses
Abundant and low cost human
• Inconsistent product quality, there are
resource
still many fake products
Large territory with many material
areas
Highly
developed
technology
environment, have already applied
modern
technology
in
many
production steps.
Competitive prices.
Broad distribution channels in many
countries
There are a lot of big corporation
with strong economic resources such
as: Hengyang Da Wei Bamboo
Product Co.Ltd, Xiamen PEKE
Co.Ltd…

4. Marketing goals and plan
4.1. Customers’ preference
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In reality, travelers are all interested in buying some souvenir to memorize the trip.
Foreign tourists are also quite interested in the handicraft products of Vietnam.
However, many tourists coming to the craft store in Hanoi mainly just for seeing. The
souvenirs for visitors of the Hanoi market can be divided into two types: to be used and
to be displayed. In the first group – products to be used, the quality and the style are the
most important. The embroidered bags or silk shirts are good examples. Mrs. Jenifer, an
American tourist said: 'I love the silk products, but the design is too poor. Compared to
a few years ago, there’s nothing new '. Moreover, these handicraft products can’t last
long and look clearly deteriorated just after a short period due to being worn out and
broken. The T-shirts with the flag of Vietnam, or the words 'I love Pho' ... have very low
quality. As for handicrafts to be displayed, visitors can pass the money factor to buy
beautiful products. However many items still make people disappointed. Japanese
customers normally prefer lacquer products. However, lacquer items now are mainly
made with ... Japanese lacquers, so many Japanese tourists refuse such items.
Additionally, the preference of tourists from each country is different. However, due to
the lack of understanding about taste and preference of each customer group, there is no
appropriate product which can make them willing to buy immediately once seeing it '.
One item which is very symbolic of the culture of Vietnam is the wooden figure of girls
wearing conical hats and long dress; this item has been presented in many souvenir
shops but did not sell very well. The reason for it is not because tourists don’t like them,
but because they are quite ... cumbersome. Similarly are the water puppets, very eyecatching, very distinctive for Vietnamese culture, but tourists mostly stop just to ...
photograph. The producers did not think through about the fact that when traveling
many days, tourists have to bring their own belongings and it would be very
inconvenient if they have to carry the bulky and fragile sourvenirs. Thus, it’s hard
enough for them to choose what to buy for themselves, not even mention buying some
gifts for friends. During the launching ceremony of tourism stimulus program in 2010,
The Director of Travelling Bureau (Vietnam Administration of Tourism) Mr. Vu The
Binh has reported the sad figure of poor spending of international tourists: In the total
cost of the trip to Vietnam, tourists spend only about 10 to 15% for shopping. This

figure in Thailand ranged from 50-55%. In addition, the average spending of tourists in
Vietnam is lower than other countries in the region. Among many reasons, there is the
cause of the lack of appeal of souvenir products. (Source: Nhan dan)
4.2. Concept of Marketing internet
Selecting and changing to the modern marketing instead of traditional method is now
the first priority concern of many companies, and OSC is not an exception. Researching
about E-marketing (Internet marketing or online marketing), online marketing is the
method through which the products and services can be offered through a global
connected Internet. OSC has reliazed that with the interactive nature of E-marketing, the
recipients can respond immediately or communicate directly with the message sender.
This is the big advantage of E-marketing compared to other types. E-marketing has
combined the creative and technological nature of Internet; including designing,
developing, advertising and selling. E-marketing is the process of developing and
promoting businesses using online media. E-marketing is not simply website creation.
E-marketing has to be a part of marketing strategy and should be reasonably invested in.
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One of the advantages of E-marketing is the availability of large amount of information.
Consumers can access product information and conduct transactions, make the purchase
wherever and whenever they want. Using e-makerting can helo to save the cost of
selling such as renting costs, reducing the number of sales staff, .. and help OSC to
access larger market as well as develop globally. In addition, when being compared
with other media channels such as printing, media, television, e-marketing has a big
advantage in terms of cost.
E-marketing activities, while being deployed, can be easily monitored and evaluated.
For example, for websites, the service 'Web Analytics' allows users to keep track of the
number of visitors, content of interest and with that, can evaluate whether or not the
message displayed is compatible with the desire of customers. Because of the
advantageous characteristics and features of E – marketing, OSC has established the

online marketing plan for handicraft and souvenirs products to enter the world market.
4.3. Selecting and using marketing models, marketing tools of OSC’sE-Commerce
marketing
- The customers get to choose products based on their requirements (the products are
listed under a list with detailed images of sizes, material, safety criteria, climate
conditions…)
- OSC can gain the profit by reducint the median and inventory
- In order to satify large demand, OSC adopts the third model which is online
shopping to increase the efficiency in buying material, buying input equipments and
cooperate with partners and increase the internal operation effectiveness.
- Design the website with all the features and supporting information such as:
translating the products’ information into English, posting and selling the products in
American ebay.com, answering all the customers’ enquiries…; with the instruction
for customers on how to buy in the most effective and least risky way, help in
solving the arising problems during the transaction process and especially with the
support in terms of payment.
- We can see that, selling products in international market through E-marketing and
website has a lot of advantages such as: No cost for renting space, finding the
customers, reducing the cost and human resource at the maximum level. Besides. Emarketing helps OSC to constantly add more new features which the most recent is
auction service: auctioning the products to attract more customers’ attention,
increasing the level of attractiveness, faster selling and gaining more profit. This
feature helps OSC to have more choices and increase the profit.

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4.4. Programs of online media and advertisement
Some media methods and online advertisement that are currently being used by OSC:
- Carry out an overall online campaign with the cost around 50-60 million dongs/ 2
months.

- Measuresments of methods: forum seeding, email marketing, identifying
advertisement, book banner, facebook advertisement…
- Link and find more agencies which specialize in online advertisement
4.5. Online business methods: sales, delivery and payment
4.5.1. Traditional 4P model

4P – is the combination of 4 words - Product – Price – Place – Promotion.
4.5.2. 4P Model and Internet Marketing
Above is the traditional marketing mix model. But when applied into Internet
Marketing, how will the components look like? Some think that 4P should be modified
into 4C in Internet Marketing, specifically, Product corresponds with Customer
Solution, Price <-> Customer Cost, Place <-> Convinience, Promotion <->
Communication.

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However, with its own thinking, OSC still think that 4P is still applicable for Internet
Marketing, just as its name
PRODUCT
Firstly, Product. The problems turns to be very simple, how is the concept of the
product, what type of customer's needs it aims for. eBay has been very successful as the
first product that satisfy simple needs of customers, selling old stuffs with the highest
possible price, and they had introduced a very unique product at that time, a model of
auctioning, online shopping in Internet that with eBay, it solves the weaknesses of
uncertainty of the Internet, the seller and the buyer does not know each other, nobody
fully trust others. Youtube was born to solve a simple demand, boredom with photo
sharing, now it’s time to share video. They have solved the problems file format and
streaming is a quite perfect way
To conclude the problem, the product is still the most important thing. So how to shape

a good online product? OSC think that by adhering to the following factors, the
company will more or less solve this question:
- Concept: Firstly, always have to begin with an unique concenpt, the unsolved
demands identified through market researches, general analysis and sharp grasp to
identify the primary ideas, then with the market researches, perform the more
thorough analysis of demand, of customer segmentation…
- Functional: Based on the above analysis, OSC designed the features to solve the
identified demands – the demand here can be understood as the customers’ demand.
Anytime in any analysis, the companies always have to keep in mind that they need
to analyse with the viewpoint of their target customers. For example, when
producing the products for teenagers, they have to use the viewpoint of teenagers.
- Usablity: A good concept, the features to meet the demands, all of them have to be
combined with good implementation.
- Performance: This is the last requirement after satisfying the mentioned above
demands. Good service, perfect function, easy to use, constantly update and
maintainance of the system, website to ensure the connection and all related things
have to always operate well, without any disconnection or overload…
PRICE
Perhaps we can say, don’t even mention about Price in the online environment, as said
by Google - Do not be Evil. Indeed the majority of these services is almost complete
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and is provided free of charge. The thought of collecting money from user really is a
"risk" - of course there are certain services thrive on user charge, but they can only be
counted on the fingers.
So does that mean that we should discard the Price factor in internet marketing? No, the
OSC thinks of this issue in a different perspective, price is a factor that all users have to
"pay" for our services. OSC prefers to see this factor in the negative price method, when
we produce a teapot, the customer buys the teapot from us, they pay us some money, it

can be called positive price - the benefit that we get (of course, customers also have
their benefits - but here we do not discuss that aspect). But with an online service,
customers benefit when they use our services (and we also benefit in another way –
which is also not discussed here). Understood in a different way, it’s a form of benefit to
the customer, the more benefits the service brings to customers, the bigger the positive
value the service has to them - they do not pay the company any money – which means
they are paying a negative cost for that service, and the higher this negative cost is the
better the price we set.
Of course not because of that that we cram billions of functions into service; we want to
emphasize that "benefit" is not measured by the quantity but by the benefits that users
get.
PLACE
Again, if the internet environment knows no borders, then does it mean that the
distribution network is meaningless? The distribution network here can be understood
as the convenience of customers. Twitter can be easily used in your own site, but still
provide the twitter widget to use for Daskboard of the Mac, or provide addons to use
with Firefox. Flickr was already extremely convenient with website, but Flickr still
constantly updates its uploading tools Flickr Uploadr, and almost all successful services
are now building its own API for connection to its service.
Today with the development of mobile devices, websites also have to create the tools to
distribute their services on mobile phones, Flickr, Facebook, Amazon, eBay ... they all
have done that and have done a very good job.
All that is just to do one thing, to expand the distribution capability - Place.
PROMOTION
Like traditional marketing, this takes a lot of time from us. Unlike traditional marketing,
I think this last letter P is more important in online marketing. With traditional business,
in some cases we can still survive without this letter P, is the case of the product that
goes straight to consumer in the West market without any forms of advertisement, no
one knows about these products, but they still survive.
But with the Internet, doing so is similar to build a park outside the island and does not

provide cable car, train stations or airports ... Customers can swim there to play if they
want.
We have known a lot of Internet promoting tools: SEO, Social Marketing, Display Ads,
Email Marketing, Affiliate Marketing ... The essential issue is how we implement and
apply these tools. This problem probably has already been discussed a lot and will still
be even more.
C. CONCLUSIONS

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OSC
“OSC THE UNIQUE OF THE ORIENTAL”
-

-

1. Mission
The mission of OSC is to develop commercial business activities and research to
design and create a diversified range of handicrafts products to bring the best
products that can meet the requirments and preferences of customers all over the
world; as well as bring to the world the new image of cultural values and Oriental
tranditions of Vietnam
2. Business Philosphy
All activities of the company aim at one long-term goal: bring benefits to both the
company and the country
Each and every products and service, large or small, should always satisfy the
customer
Quality, efficiency and timeliness to give the impress of “Profesional” in customers’
mind

The core values of the company are human resource, enthusiasm and determination
of achieving something together
Company culture is the pride of employees and the faith of the public
Consistantly studying and thriving in order to change and adapt is the responsibility
of the whole company and of each OSC’s member.

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