Phân tích SWOT xây dựng kế hoạch kinh doanh sản phẩm lụa tư tằm công ty CP tơ tằm á châu – lụa ván phúc e

Select a country anh product or services you feel will be a
wise anh long term investment potential for your Vietnamese
company expansion in to a foreign country

Chapter 1: ASIA SILK CORPORATION (ASC)
1.1.

Introduction

Asia Silk Corporation (ASC) is formerly knowed under the name of Hiep Sang
company which is founded in 1994. From 01/01/2001, the company is officially
converted into Asia Silk Corporation. The company is one of the leading
companies in the production of mulberry silk in Vietnam.
Products of ASC have been certified of the management quality according to
international standards (ISO 9001:2000) by SGS. Products are exported to many
countries, receiving the trust and high appreciation of international customers.
Traditional customers of companies from Japan, India, the former Soviet Union,
Singapore, Thailand, Malaysia, Indonesia, Laos and Bangladesh
Name of company: CÔNG TY CỔ PHẦN TƠ TẰM Á CHÂU
 Trading name: ASIA SILK CORPORATION
 Brief name: ASC.
 Businesses: produce and provide silk products and related goods.


 Capital: 50.000.000.000 VND.
 Foreign investment: Total investment: 2.849.163 USD.


At present, ASC has a subsidiary and three joint ventures (one in Uzebekistan
and 2 in Taijikistan)
1.2.

Silk of Van Van Phuc – Subtle feature of tradition and modern

Van Phuc silk is not only the peak of the silk weaving industry but also the
epitome of visual style on silk of Vietnamese folk artists.
From the old days, the most beautiful, thinnest, softest silk sheets which were
weaved and knitted sophisticately were the tributes to the Court. For girls, the
most precious gifts were the shirts made from silk of Ha Dong. So, for a long
time, Van Phuc silk has become a "brand" that every Vietnamese know and
respect.
Currently, the domestic designers also pay attention to the use of silk as raw
materials for their works. Particularly, young designer David Minh Duc used the
finest silk of Van Phuc to launch the wedding dress collection which is designed
according to the Hue royal style. The wedding gowns are embroidered by images
of dragon and phoenix are sophisticated, polished and have a strange attraction.
Perhaps it is because the silk makes charming, soft features and brings a special
soul to the dress. The collection is sold at very high price, about 3500 $/dress.
1.3.

Reason of selections

Currently, export products of ASC are mulberry silk and silks. In which, silk is
the main product and takes high proportion of the company's business strategy.
However, the silk which is sold are quite popular without breakthrough on the
brand. Thus, the product of ASC has not been well known while Van Van Phuc
silk is in high-quality and made by artisans of Van Phuc silk village. However,
the silk of Van Phuc is facing up with the eriosion for many reasons, for example,
the appearance of cheap Chinese silk. Though Van Van Phuc silk has been
improved, investments in design, materials are not taken seriously so the
application of the product is not high, and competition is not high too. Since then,

the cooperation of ASC and Van Van Phuc silk is an effective way to preserve
and promote the value of a pure aesthetic beauty and increase competitiveness of
ASC. Thus, ASC implements the strategy of using Van Van Phuc silk to enter the
US market in the future.
1.4.


Reason for choosing US market
The US is a big market with high population (over 300 million people);
The US economy is highly developed, the standard of living is also very
high.



The US has a big community of Asian (over 14 million people), in which,
Vietnamese community has 1 million people.



Vietnam – US relation has many improvements



Moreover, US is a potential market which ASC has yet penetrated while
other textiles companies like Viet Tien, Thanh Cong, Phuong Dong… had
come into for a long time and gained big success. This is really a big
chance for ASC and silk of Van Van Phuc when US is the biggest market
for garments.

Chapter 2: US market
2.1. Economic environment:
Currently, the US remains the largest and most competitive economy in the
world. Although the proportion of US in the total GDP of the world tends to
decrease, the US still has the highest national income and income per capita in
the world. In 2012, the total national income of the US is estimated at over 16
trillion USD, accounting for 20% of global gross national income… the USD has
a developed infrastructure, industry and business support services.
2.2.

Legal environment:


The US applies the system of UK- US law. Regulatory environment of the US is
very strict, clear and detailed, especially for the system of commercial law.
Some regulations relating to the exports of silk in the US:
About detailed vouchers, the company must contact the importer or the buyer to
get updated information and specific instructions of the state. US companies
often hire companies specializing in customs brokerage to do the customs
declaration. If the importer does not know their procedures, contact the dealer for
more information.
* Note: for textile products, companies should contact importer to get detailed
information about vouchers, and always provide the percentage of fibers in the
product according to the Textile Fiber Products Identification Act - TFPIA, see
details in the appendix.
Other regulations:
Regarding to the export environment, the constitutional provisions of US
Congress are set to manage foreign trade and decisions of import tax. However,
due to the increase or reduction of import duties, fixing of import quotas or the

complex of international trade agreements affect the interests not only of the U.
but also of other countries, so many responsibilities in these areas have been
authorized by Congress for the law enforcement agencies. In the process of
implementation of the tasks authorized by the National Assembly, the law
enforcement agencies have duties of regular consultation with the relevant
committees of the National Assembly and advisory groups of private sector.
2.3.

Social-cultural environment:

Generally, dressing of US people is quite simple, not fussy; and only in special
cases such as the ceremonies or parties, they pay more attention to dress
elegantly and aristocratically. The US people do not have too much prejudice to


the origin of products. Apparels had to be very comfortable and pleasant. The
quality is considered as a very important factor. Dressing of US people, in
general, comes from the concept of not judging anything by their appearance.
For the Asian community in the US in general and the Vietnamese community in
particular, the culture of dressing is also influenced by the Western way of life,
which means that Asians in the US also loves to dress simply and comfortably.
However, in some respects, when living outside the community, Asians tend to
pay more attention to form. Therefore, dressing formally is still seen as a way of
showing respect for others.
Chapter 3: SWOT analysis
3.1.

S (strengths)

 Asia Silk Corporation (ASC) has a young, dynamic and highly

professional staff.


The products of the company are manufactured in a closed process,
modern production lines, advanced technology which is imported from the
developed industrial countries such as Japan, EU ...



Before entering the US market, Asian silk stock company (ASC) has
exported a lot of their products to Japan, Bangladesh, Thailand, India…So,
it can be said that the company has a lot of experience in the field of
export and market penetration. It can be clearly seen through the Japanese
market which is a very tough market with strict technical standards...

 The quality of the company's products are tested strictly before packing,
the reputation of the company was highlighted in all the stages of product
consumption.
3.2.

W (weakness)


 Have yet had a direct system of marketing.


Advertising is done mainly through journal, have yet accessed directly to
consumers.

 Shortage of experience in copyright registration and protetion.

 The organizational structure is not specialized so that the company can not
take full potential.


Van Van Phuc silk is hand-made good so the productivity is not high,
affecting to the price and the competitiveness in the market



The sources of materials are not stable and scattered in many places like
Vinh Phuc, Thai Binh, Ha Nam, Ninh Binh, Thanh Hoa, Da Nang, Lam
Dong…

3.3.

O (opportunities)

 The purchasing power of the US for garments, especially for traditional
crafts like silk, is great and is the first in the world.


The US market has high population and the gap of income in society is
quite big. Thus, the US is a big and diverse market.

 The abundant and avaiable supply of raw materials due to the oldest
traditional industries of Vietnam, even today there still are many large
areas of Quang Nam, Nghe An.


Policies of the Government are implemented to preserve and promote the

traditional villages, which help those silk weaving villages recover and
support for business activities of silk products and products derived from
silk.

3.4.


T (Threats)
Brand of Van Phuc is very famous, so there is a trend of mimic and lowquality products.


 The product is traditional so it is very hard to change the design, which
makes the product become popular and less interested.


The product has no highlights, outstanding features in comparison to other
strategic products of other companies although there have been a lot of
beautiful designs.

 One of the characteristics of market economy is the unstability, which
creates risk of losses for farmers, making them give up and leading to the
oblivion of the villages.
Chapter 4: Strategies and plans for market penetration
4.1.

Product strategies

4.1.1. Core values of products:
 Highlight the noble beauty, human charming, traditional but not a lack of
integration.

 The products are designed suitably to be gifts.


The materials are made from nature, are friendly with the environment.

4.1.2. Realistic value of products:
 Quality ( Polish the image by creating a credibility of quality)
Our business focuses on developing and manufacturing products which are
ensured by the quality, environmentally friendly and complied with the quality
management standard ISO 9000, ISO 14000, environment management system
SA 8000 to overcome barriers to the US market. At the same time, it is necessary
for the company to confirm that Van Phuc is Vietnamese oldest silk brand,
standards for a product is very demanding, always more outstanding quality
traditional products from India , China, ...
 Designs (diversify designs to fulfil the tastes of customers).


The Department of marketing in collaboration with the company's representatives
in the US continuously monitors and understands consumers’ preferences for all
kinds of designs to keep up with the development of taste, fashion, styleway of
life... Since then, the company strengthens investment, research and design
models to meet the rising needs.



Trademark (Strategy of trademark standard)

The company will use a combined trademark ASC – VAN PHUC SILK. So, the
company can make use of the reputation of ASC in the world and highlight the
fame of Van Phuc silk.

 Packing
When exporting to countries with a high standard of living like the US, the
packaging needs to be perfect. We use the best materials available and
economically feasibleto make the packages.
The package: We set up a stable order on packaging and size of package.
Transport codes on packages are accurate, clear and ensured to comply with
international regulations. The bag/box is stamped or printed on one side with all
codes with unfading ink. Packaging material which is used is renewable in order
to solve environmental problems. Packages which are under the standard may
damage the products and cause problems for importers such as: disposal of
shipments, commodity marketing...
4.1.3. Supplemental value of products:
Design a special sales program: have commercial discount for large orders, have
different preferences for traditional customers such as the trading conditions... In
the process of offers, the company tries to convey this information to customers.


Have cources to train employees attitudes, communication skills and customer
services so that the staff can advise customers how to select fabrics, the way of
storage and use... to help customers make the best selection with highest
satisfaction.
Ensure fast and perfect method of delivery: Establish working partnerships with
reputable transport units to meet the transport requirements of the customers. If
the customers have needs of home delivery, the company will try to do it in the
shortest possible time; and if the product is purchased as a gift, the company can
wrap and send gifts at the request of customers.
Customer Caring: regularly receive, promptly provide and share relevant
information, the company's policy to customers, creating relationships between
the customers and the companies.
4.2.

Price strategies

4.2.1. New strategy of setting price
Joining the US market, Van Phuc products will be priced equally or slightly
higher than its competitors in order to enhance the brand value of Van Phuc.
4.2.2.

Strategy of price control

 Discount pricing.
Cash discount: for customers who pay early
Quantity discount: for customers who buy much.
Function discount: for members of distribution channels
 Psychological pricing.
Pricing products with odd number (For example, 99$ instead of 100$).
4.2.3. Strategies of price adjustment


 Increase the price actively
The price of new products ỉmported to the US market is low due to the price
strategy of penetration. This hiddens the risk of violating anti-dumping policy of
the host country and reduces the low rate of return for the company. These issues
combined with the cost of persistent inflation make the company raise prices. A
successful increase of price can makes the profit go up. To get the success, the
company needs a strategy of slow increase to avoid shocking customers. Also, it
is necessary to have a traditional program to tell the customer the reason for the
price increase. Accompanied by price increases is the improvement of product
designs, packagings, after sales service and advertisements...which make
customers know about the superiority of products and they are willing to pay

more money to get the produeys they want.
 Adjust to changes of competitors
On the US market, ASC - Van Phuc SILK products always face up with the fierce
competition of competitors coming from China, India and Thailand...So, the
company needs to keep a close watch on the changes in the price of competitors.
In the case the competitors reduce the prices of their products, the company need
to have certain reactions to remain the market shares. Depending on the specific
circumstances, the company can adjust the strategies flexibly: keeping the cost
unchanged while improving the quality, accepting discounts of rivals, or reducing
price together with increasing the customer's impression of the quality.
4.3.

Strategy of promotion

4.3.1. Advertising
The message the company wants to convey to customers is that ASC - Van Phuc
Silk - "bringing traditional sophistication for you." The slogan is written in
English and Vietnamese (smaller below) to attract the attention of potential


customers. Since the targeted customers are Americans who love Oriental beauty,
especially the overseas Vietnamese patriotism. Thus, we choose the message to
highlight the core values of products: distil the essence of culture but also bring
the beauty of integration.
Advertising medium: mixed media, taking advantage of media marketing to
bring the image of ASC - Van Phuc Silk to end-consumers.
Press: Instead of big, expensive and uneffective advertisings on television, we
will apply ads published in as many newspapers as possible, especially the
fashion press; the contents are filtered to reduce the costs and increase the
frequency of appearance of products.

4.3.2. Promotion
Promotional tactics that businesses use in the first release is a gift to the first 200
customers who buy products, and customers who have many orders will also get
discounts... Issue loyalty cards to some customers and have discounts for them in
order to maintain the loyalty from customers.
4.3.3. Sales Forces
Because the main customers are in Vietnamese community, the sales forces hired
are overseas Vietnamese people. The sales force has an understanding of
Vietnamese culture as well as the habits, customs and needs of customers in the
US.
Employees are trained of customer-caring knowledge and the style of services is
consistent. Sales teams are always ready to give out advice of fashion and
guidance of laundry and storage to customers with an attitude of respect.
Employees always say "thank you" to the visiting customers, helping them select
and finally saying "goodbye, thank you" when people leave the stores. The


customer always fell comfortable and cozy when entering the stores of ASC Van Phuc SILK.
4.4.

Strategy of distribution:

The way of products distribution of Van Van Phuc will be done as following:


Firstly, the company will open a store to display and sale products in
California or Texas where many overseas Vietnamese are living (especially
the Little Saigon), then expand the network of distribution to other states.



Secondly, the company will offer and provide products for shops selling
silk products only. It is because salespeople there will know more about
silk products so that they can advise customers in the shopping.



Thirdly, the company implements the strategy of franchising to
Vietnamese businessmen living in local areas.

Referrences:
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Department of Trade Promotion, the Ministry of Industry and Trade:
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