CHIẾN lược MARKETING về sản PHẨM CHO CÔNG TY CP THIẾT bị GIÁO dục 1 e

Marketing Strategies for products of Education Equipment Joint-Stock Company1

TABLE OF CONTENTS
1. Introduction about Educational Equipment 1 Joint Stock Company.....................3
* Company’s history and company’s functions....................................................
3
* Company structure............................................................................................
4
* Introduction about Company’s products............................................................
5
2. Business environment analysis...............................................................................5
2.1 External environment.......................................................................................
* Macro environment............................................................................................
5
Geography and population............................................................................
Politic............................................................................................................
Economic......................................................................................................
* Industry environment.........................................................................................
7
Demand analysis............................................................................................
Analysis on competition in the market of teaching equipment for kindergarten to high
schools...........................................................................................................................

2.2 Internal environment........................................................................................9
3. Proposal of Marketing strategy for the company’s products..................................10


1. Introduction

of Educational Equipment Joint Stock

Company 1
Company history and the company’s functions
Educational Equipment Joint Stock Company 1 (EECo1. JSC) is a company under
the Ministry of Education & Training. The company was established on the basis
of transformation (Privatization) Government Company, which was Educational
Equipment 1 Company (under Ministry of Education and Training), following the
Decision No.2690/QD-BGDDT dated 25/5/2007 of the Ministry of Education and
Training. Currently, the government is holding controlling share of EECo1.JSC,
which is 51%. The representative of the government managing this share is
Vietnam Education Publisher.
Educational Equipment Joint Stock Company 1 is located at:
No.18/30 Tạ Quang Bửu street, Hai Bà Trưng district, Hà Nội city.
Tel: ++84.4. 38693285

Fax: ++84.4. 36863236

The factory is located at:
- Factory 1: No. 62 Phan Đình Giót street, Thanh Xuân district, Hà Nội
city
- Factory 2: Bần Yên Nhân town, Mỹ Hào district, Hưng Yên province
Educational Equipment Joint Stock Company 1was established with the objectives
to produce and provide educational equipment for schools of all level ranging from
kindergarten school to universities
Educational Equipment Joint Stock Company 1 is the biggest one in its industry
with the total number of regular employees is 300. The company has had
experiences in this field since 1962.
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Company Structure
 General Director
 Departments
♦ Planning and Financial department
♦ Administration and HRM department
♦ Project department
♦ Equipment & Technology transfer department
♦ Technical and Quality control department
♦ Representative office in Ho Chi Minh city
 Centers and Factories
♦ Kindergarten equipment center
♦ Educational equipment factory
Company Structure:

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Chart 1: Company Structure of Educational Equipment Joint Stock Company 1–
Source: Educational Equipment Joint Stock Company 1

Products and Services
Main products:
- Teaching equipment for all school levels
- Teaching equipment and toys for kindergarten
- Chairs, tables, chalks and school interior furniture
Other products and services
- Provide and install IT equipment, computers and computer network

- Provide and install equipment for foreign-language studying classroom
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- Provide and install technical and scientific equipment
- Provide and install vocational equipment
- Authorized distributor of equipment for some foreign manufacturers

2. Business environment analysis
2.1External environment
• Macro environment
Geography and Population
Vietnam occupies about 331,212 km², in which the land area is 327,840
km² and internal water area is 4,200 km². Vietnam terrain is quite varied
with hilly, mountainous & forestry in North East, North West & Central
Highlands, low & flat areas accounting for 20% of total Vietnam area.
According to research from Vietnam General Statistics Office, Vietnam’s
population as of 01st Apr 2009 is 85.846.997 people. Red River Delta is
the most densely populated area, with 19.5 million people. The next is
Coastline Southern Middle with 18,8 million people and the third is Cuu
Long River Delta with 17,7 million ones.
There are three (3) administrative subdivisions: provincial & equivalent,
townships & equivalent, counties & equivalent. Vietnam is divided into
58 provinces and 5 city municipalities. Hanoi is the capital with 63 cities
and provincial municipalities.
Politic: Stable politic. Vietnam is currently a republic socialist country.
Political system is run and led by one party which is Communist Party of
Vietnam. The Party’s principle is: the Party leads, The Government

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manages and the People own. The Communist Party of Vietnam is
formally directed by National Congress.
The budget for purchasing teaching and educational equipment in
Vietnam is mainly from government fund (Except for private schools
or semi-private schools) by way of purchasing tender. The investors for
big and major contracts are mainly at the central and provincial level. To
be successful in this market, those companies in this industry need to be
highly aware of this factor.
Economic environment
Sustaining high economic growth rate in a long time, Vietnam officially
became the 150th member of World Trade Organization on 11th Jan 2007.
Regarding economical geography, Vietnam government divides the
country into economical-societal regions and key economical regions in
the North, the Middle and the South.
However, corruption has always been ranked among the high level in the
world. Plus, difficulties in capital, human resource training, land,
administrative transformation including thousands of administrative
procedures which have been lasting for 20 years now, have become
obstacles for economic development, especially calling for foreign direct
investment (FDI).
Vietnam is currently being lagged far behind by other countries in the
region. According to Vietnam Development Report 2009 by World Bank,
in terms of economic, it will take Vietnam a long time to catch up: 51
years with Indonesia, 95 with Thailand and 158 with Singapore

Year
GDP (billion USD)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
31

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32

35

39

45

52

60

70

89

91

101

6

GDP/per head ( USD)

402

416

441

492

561

642

730

843 1052 1064

GDP growth (compared to previous
years)

6.8

6.9

7.1

7.3

7.8

8.4

8.2

8.5

6.2

1168

5.3

6.7

Chart 2: GDP data of the last 10 years (2000-2010) - Source: The Year book 20002010 – Vietnam General Statistic Office

• Industry environment:
Demand evaluation: This assignment focuses on analyzing, evaluating
and proposing a Marketing strategy for the company’s main product i.e.
teaching equipment for kindergarten, elementary, primary and high
school.
The observation for data from Ministry of Education & Training
published on website is
as the following
Chart 3: The number of schools and students
2008-2009
Pre
Education

Primary

Primary Education

Number of schools
Number of
students
Number of schools
Number of
students

2009-2010

2010-2011

28.114

28.413

28.593

3.305.391
15.051

3.409.823
15.172

3.599.663
15.242

15.212.028

15.022.759

14.851.820

Chart 4: Government spending on Education & Training
Total
Central
Local

2008
74.017
18.912
55.105

2009
94.635
23.834
70.801

(Billion VND)
2010
104.775
27.216
77.559

Capital expenditure

12.500

16.160

20.275

5.900
6.600

8.416
11.859
84.500

Of which
Central
Local
Recurrent expenditure
Of which
Central

61.517

7.450
8.710
78.475

13.012

16.384

18.800

Local

48.505

62.091

65.700

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Therefore, the market has always been on a growth trend because of the
fact that the number of schools is increasing. Government spending on
education (including spending on teaching equipment) keeps increasing.
The growth rate is 27,8% from the year 2008 to year 2009, 10,7% from
the year 2009 to year 2010. Non-government schools are also required to
purchase teaching equipment pursuant to the policy on the list of
minimum teaching equipment for each school level regulated by Ministry
of Education & Training. Moreover, non-public schools tend to have
sound investment on teaching equipment. Thus this market segment is
quite huge. The budget Vietnam government spending on education
accounts for 20% of GDP, which implies that Vietnam takes education
among the country’s priority.
Due to the current not-highly developed economic situation, Vietnam can
only afford teaching equipment at the basic level and at the standard
price. Therefore, the equipment are mainly manufactured locally or

imported from China.
In my opinion, there would be a dramatical change in the purchasing
trend. Teaching equipment at higher quality and better meeting the
requirement for teaching equipment of the new set of text book
implemented in 2015 would be the trend. Teaching equipment aim to
catch up with the middle and average level of those Asian countries
which have developed education system e.g. Japan, Korea.
The market shall have significant growth rate from 2015 (purchasing
equipment according to the new set of textbook). This period of high
demand will last for around 7 years and then the market will saturate (the
percentage of GDP spending on education).
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Analysis on competition in the market of teaching equipment for
kindergarten to high schools
Objective

Product

Educational
The lead in the Teaching
Equipment
market
equipment
Joint
Stock
following the

Company 1
requirement for
the list of
minimum
teaching
requirement for
each school
levels regulated
by Ministry of
Education &
Training
Hong
Anh
Educational
Equipment
Joint
Stock
Company
(HCM city)
Lô B8 Hiệp
Phước Industrial
zone, Nhà Bè
district,
HCM
city
Mountainous
Area
Restructuring
Support
and

Commerce Co.,
Ltd

The lead in the As above
market

The lead in the As above
market

47 – 49 Hàng
Buồm,
Hoàn
Kiếm, HN

Segment
Those
organizations
purchasing by
government
fund or foreign
sponsored fund:
- Ministry of
Education &
Training
- Provincial
department of
Education &
Training.
Private schools
As above

As above

Actual market
share
- Transformation
on teaching
equipment 2003
– 2008:
approximately
30%.
- From 2009 now: 25%.

Transformation
on teaching
equipment 2003
– 2008:
approximately
25%.
- From 2009 now: 15%.

Transformation
on teaching
equipment 2003
– 2008:
approximately
25%.
- From 2009 now: 15%.

(These data are summarized and analyzed based on the total government

spending on teaching equipment and these companies’ revenues)
The period before educational transformation (2002-2008), there were
around 10 countries in this industry. However, there are only 3
companies as listed above which are adequately competent in terms of
factory infrastructure and human resource. Educational Equipment Joint
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Stock Company 1 was the leading company in this period. Due to the
dramatical increase in market demand, many new companies have been
established since 2008. These companies have managed to make major
development steps, which made this market more competitive.
Consequently, Educational Equipment Joint Stock Company 1 are now
only among the leading group. This raises a threat for the company, of
which the change to a pertinent business strategy is crucial to the
company’s success and reaming the leading position in the market
2.2Internal environment
The company has good factory, qualified and experienced human
resource who graduated from both local and abroad universities.
The company is also cooperating with partners who specialized in
manufacturing and providing teaching equipment from those
countries with advanced education system and developed countries
e.g. Japan, Korea to manufacture high quality equipments complying
with Vietnam market.
However, the company structure is still big and not effective. The
recruitment and lay-off are still difficult since the company is still
operating with the mechanism of a government company.

3. Proposal of Marketing strategy for the company’s products
♦ Differentiation:

Utilizing the advantage of being a company under

Ministry of Education & Training, the leading company of Vietnam in
this industry, the company shall collect information and take the job of
designing sample teaching equipment for the program of changing
textbook in 2015. The company will consequently create competitive
advantage. The company shall also cooperate with Japan and Korean
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partners to offer differentiated designs, beautiful outlook, easy-to-use,
good quality which is equivalent to those in Japan and Korea, yet the
price is reasonable.
♦ Product quality: equivalent to the quality of Japanese and Korean
products (currently, the quality of teaching equipment in Vietnam is low
and the trend for an improvement in quality is vital).
♦ Product features: highly pedagogical, beautiful package, easy-to-use,
good quality, anti-rust, durable, highly meet requirement and regulations
on teaching equipment of Ministry of Education & Training.
♦ Branding & Trademark: need to register brand name and trademark,
intellectual property rights all over the country
♦ Packaging: beautiful and safe for transportation
♦ Services: improve after sales services i.e. warranty, spare part stock
♦ Warranty, Maintenance: at least 12 months and provide spare parts
upon request within 5 years within 5 years after the warranty period

ends.
References
- Documents of Educational Equipment 1 Joint Stock Company
- Website: />- Website: />
-End -

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