Giải pháp phát triển thị trường tiêu thụ sản phẩm chè của công ty TNHH TM hùng cường hà giang e

LUẬN VĂN THẠC SĨ
GIẢI PHÁP PHÁT TRIỂN THỊ TRƯỜNG TIÊU THỤ SẢN PHẨM CHÈ
CỦA CÔNG TY TNHH TM HÙNG CƯỜNG - HÀ GIANG
SOLUTION FOR TEA PRODUCT DEVELOPMENT OF HUNG CUONG
LIMITED COMPANY IN VIETNAM MARKET.


TABLE OF CONTENT

Contents
Contents................................................................................................................... 2
1.2.3. Export promotion / sales promotion.........................................................25
2.1.4. Business performance activity result of Hùng Cường Co.,Ltd.................42
2.2.2.3. Barriers to entry........................................................................................49

2


ABBREVIATION
DN

Enterprise

GTGT

Value added tax

HĐKD

Business performance activity

KN

turnover

NN & PTNN

Agriculture and rural development

TM

Commerce

TNDN

Corporate Income

TNHH

limited company (Co., Ltd)

UBND

People ‘s committee

XK

Export

3

TABLE AND CHART
Chart 2.1. Operational structure of Hung Cuong Co.Ltd.......................................40
Source: Hung Cuong Co.Ltd..................................................................................40
Unit: VND.............................................................................................................42
Table 2.3. Accounting Balance Sheet in the period 2010-2012..............................52
Chart 2.2. Green tea processing chart :..................................................................56
Chart 2.3. Black tea processing chart :...................................................................56
Table 2.4 The growth rate of export market through years.....................................58
2008....................................................................................................................... 58
2009....................................................................................................................... 58
2010....................................................................................................................... 58
2011....................................................................................................................... 58
2012....................................................................................................................... 58
Export turnover (1)................................................................................................58
1.428.571...............................................................................................................58
1.554.047...............................................................................................................58
2.147.423...............................................................................................................58
6.165.873...............................................................................................................58
4.349.455...............................................................................................................58
Revenue from domestic (2)....................................................................................58
479.793.................................................................................................................. 58
490.751.................................................................................................................. 58
476.730.................................................................................................................. 58
1.446.315...............................................................................................................58
1.087.363...............................................................................................................58
Total revenue (3)=(1)+(2)......................................................................................58
1.908.364...............................................................................................................58
2.044.798...............................................................................................................58
2.624.153...............................................................................................................58

7.612.188...............................................................................................................58
5.436.818...............................................................................................................58

4


(1)/(3) (%).............................................................................................................. 58
75%........................................................................................................................ 58
76%........................................................................................................................ 58
81%........................................................................................................................ 58
81%........................................................................................................................ 58
80%........................................................................................................................ 58
2.4.2. Export market...............................................................................................58
In recent years, the company is good at promoting trade and expanding export
market to many countries, shown in table 2.5 below: Table: 2.5 Turnover of the tea
export market in the period 2008 to 2012..............................................................58
Unit: USD..............................................................................................................58
1.428.571...............................................................................................................59
1.554.047...............................................................................................................59
2.147.423...............................................................................................................59
6.166.873...............................................................................................................59
4.349.455...............................................................................................................59
(Source : The company ‘s Accounting Department)..............................................59
This table shows that, in recent years, Germany, Taiwan, the UK and the
Netherlands is the 4 largest export market of the company, accounting for 62 % of
the total export turnover of the company in the period 2008-2012 . In the last 2
years, Germany is opening new export markets and the company's largest, most
export turnover worth $1,278,182 in 2011 and continued to increase to $1,304,252
in 2012 . After Germany, Taiwan is traditional market and ranks second in exports
of the Company, up to $974,568 in 2012, down slightly from 2011 . After Germany

are Sri Lanka and England, although the export turnover between 2008 and 2010 is
stable, the stages turnover decreased in 2012 greater than 2011. Netherlands, India,
Hong Kong are already saturated market and lightly reduction tends, in 2012
decreased slightly compared to 2011 . Particularly for the Chinese market turnover
was high in 2008 and an average of 2010 and 2011, in 2012 the company did not
export tea to the Chinese market although the market is close in geographically, it
is unstable and unpredictable ................................................................................59

5


(Source: the company's business department) Through our table that although the
conditions of global economic crisis and domestic economic conditions were
difficult, but the company maintains five traditional markets. (Including Taiwan,
the UK, India, China state) and open 3 more new markets including Sri Lanka,
Hong Kong and Germany. Particularly, in 2012 the company has to lose the
Chinese market due to reduced market demand and unpredictable........................60
2.5.1.2. Average growth rate of the number of real export markets........................60
Table: 2.7. Growth rate of the number of real export markets in the period 20082012....................................................................................................................... 60
(Source: the company's Business Department) + In the period 2008 to 2012, the
average growth rate of real export market > 1. This reflects the size of the export
market is expanding, but the company does not have much change. Particularly in
2012, the average growth rate of real export market <1 because company lost one
traditional markets in China. + Based on the data table 2.7 we can calculate the
average growth rate of real export market in the period 2008-2012 is 5.5. Due to
average growth rate of real export market > 0. This reflects the size of the export
market of the company's tea products have increased in number, each tea product
increased 5.5 new markets.....................................................................................60
2.5.1.3 Continuos growth rate of exports...............................................................61
Table: 2.8. Continous growth rate of exportsin the period 2008-2012...................61

1.428.571...............................................................................................................61
1.554.047...............................................................................................................61
2.147.423...............................................................................................................61
6.166.873...............................................................................................................61
4.349.455...............................................................................................................61
The above table shows the continous growth rate of exports of the company period
2008 to 2011 increased continuously , up from 1.01 in 2008 to 1.38 in 2010 and
further increased to 3.2 years 2011 , or in other words, the expansion of export
markets the company has been developing in depth . Especially in 2011 witnessed
the great success of the mining companies in traditional markets in depth with
increasing speed uninterrupted exports reached its highest level of 3.2 . Then in

6


2012 the growth rate of exports uninterrupted dropped to 0.7 . Considering the ever
increasing market speed continuous export products of the company are shown in
the table below : Table 2.9 : Continuous growth rate of exports by markets..........61
(Source: Calculated from the data of annual report of the Business department )
This table shows that the growth rate of exports continuum of 4 companies of the
market in 2009 (Taiwan, England, Netherland, India) were > 1 , ie the size of the
market has been open larger than in 2008 . In 2010 the continuous growth rate of
exports of the 4 markets (including 3 markets in 2009 and Sri Lanka) > 1 , which
means that the size of this market has been extended from to 2009 . Especially
with the increasing market Srilanka exports uninterrupted power , of 9.1 , much
higher than other markets In 2011, the continuous growth rate of exports remains,
only the Netherland market is not significantly reduced at 0.99 . In 2012 , except in
Germany and the Netherlands have K > 1 and all remaining markets < 1. China
alone is k < 1 in the period 2009 to 2011 and 2012 k = 0, this means that the size of
the export market expansion of the company in the Chinese market is not efficient

Thereby, it can be confirmed that market development activities of the company
has achieved considerable success, in almost all the markets are k > 1, in which the
highest k = 9.1 in 2010 in Sri Lanka, then k = 6.1 in Hong Kong..........................62
1.5.1.4 . Average growth rate of the market size....................................................62
Based on the data of the continuous growth rate of exports in the period 2008 2012 calculated on the scale of the average growth of the market is 0.68 < 1. So,
this shows that in the past 5 years, the growth rate per capita exports of the
company decreased, reflecting development activities, tea market is not efficient ,
do not increase the number and value of exports in the current market, the demand
of the current market was saturated, which requires companies to develop new
export markets.......................................................................................................62
+ In each market, average growth rate of market size at 3 new tea product markets
is Germany, Sri Lanka, Hong Kong, which is k > 1. So the conclusion that the
ability to develop in-depth market is very promising. The rest of the market the
company has increased the speed average market size of tea products < 1,
suggesting the difficulties in in-depth market development...................................62

7


OPENING
1. The necessity of the study
Market development is one of the indispensable elements in the business strategy of
the enterprise. In particular, in the context of Vietnam 's economy which integrates
deeply into the world economy with the stiff competition in international market and
domestic market, the question for Vietnamese businesses is to determine the
importance of market development. For tea or agricultural product, the development
of product market is even more important because specific characteristics of the
product, especially when the technical barriers to limit exports to the United States,
Europe, etc. to protect domestic production. To develop market requires Vietnam to
have business strategies and solutions clearly, effectively, fully research and objective

evaluation of the factors affecting the market .

8


Hùng Cường limited company is one of leading in tea production in the
North of Vietnam, with 80% of the Company's products exported to many
countries around the world and 20% of domestic consumption. We can see the
market development of company in the current context is a critical need to make
priority. The difficulties and problems currently of Hung Cuong Co., Ltd in the tea
market development in Vietnam is the company has not yet developed a national
tea brandname in international market. Vietnam tea production ranked fifth in the
world with a total area of 130,000 ha and exported to 110 countries and territories.
And in ASEAN, production and exporting tea, Vietnam occupied the first position.
These are impressive achievements of the tea industry. However, the world market
footprint of Vietnam tea is very faint, the consumer is not aware or distinguish of
what is the "made in Vietnam " tea with others, because there is up to 95 %
volume of Vietnam tea exported as raw materials, only 5% exported as finished
products!
Although national brandname “Vietnamese Tea” (CheViet) was built a few
years ago, advocacy programs across the country, and CheViet brandname has now
been registered for protection in 77 countries in the world. However, there are only 20
registered enterprises engaged in tea production standards of Vietnamese tea
(CheViet).
Businesses are themselves finding direction for their own market and they
face up with many difficulties in legal procedures, trade barriers, high costs, high
risks in international trade etc. Besides, the misinformation about tea processing
also greatly influenced the Vietnam tea brandname, as well as the fierce
competition from countries such as India, China, Sri Lanka, Pakistan etc. For the
domestic market, the market development also have many difficulties due to fierce

competition, low prices, there are many similar tea drinks products such as
artichokes, bitter tea, female-seed tea etc. Besides, the internal difficulties of
exporting enterprises when product quality is not synchronized due to planting,
purchasing, storage and processing. Financial difficulty in the procurement of raw
materials to keep prices and production inputs is also mentioned.

9


In terms of the world economy after the recession and slow recovery, many
tea-producing countries are looking to boost product sales so each business has to
build their own market development strategies. Hung Cuong Co., Ltd. Also has to
propose their own solutions to develop tea-export market, along with maintaining
traditional market is promoting the development of new markets. Parallel is to
boost domestic consumption, improve competitiveness. The solutions to develop
market are survival and necessary for Hung Cuong Co.,Ltd to exist and thrive in
the future.
2. Aims of the study
Generalizing basic fundamentals of market and market development of an
enterprise
Evaluate the status, development prospect of tea-industry of Hùng Cường
Co. Ltd in the recent years
Propose some solutions for Hùng Cường Co.,Ltd fro tea-industry
development in the future.
3. Publications related to the study
- Subject: Tea export, an important development of Vietnam Tea Industry,
Author: Nguyễn Thu Thủy. (2009)
Aims of the study: analyse the development of tea industry
Limitations: Have not yet analysed the situations and solutions to develop
- Subject: Solutions to motivate Vietnam tea export to Russia market,

Author: Vũ Đức Tuân. (2010)
Aims of the study: Analyse recommendations to motivate export activities
Limitations: Narrow and just in a single market analysis.
- Subject: Exporting Vietnam agricultural commodity in the international
integration process, author: Nguyễn Thị Hải Yến (2011)
Aims of the study: Analyse the exporting of agricultural comodity
Limitations: Do not proposed long term solutions

10


- Subject: Some solutions to develop tea industry in Thái Nguyên, author:
Nguyễn Thị Mai Linh. (2012)
Aims of the study: Analyse the solutions to develop tea industry in Thái
Nguyên Province
Limits: Have not compared the advantages of tea industry in Thái Nguyên
to other provinces.
- Subject: Marketing mix strategy to widen the tea market Kim Anh Tea
Joint Stock Company, author: Phạm Thị Thanh Thủy (2012)
Aims of the study: Develop marketing activities
Limits: Do not have recomendations for a specific market
- Subject: Tea industry development in Thái Nguyên Province, Author:
Nguyễn Thị Huyền. (2012)
Aims of the study: Develop the tea industry in general in Thái Nguyên
Province
Limits: Do not give out solutions in a specific case
4. Objects and scope of the study
- Objects: Tea market of exporting business
- Scope of the study:
+ In terms of space, the thesis will focus on studying the development of tea

market in Hùng Cường Co. Ltd, including the domestic and export market
+ In terms of time, the thesis will focus on researching the development of
tea market in Hùng Cường Co. Ltd from 2010 to 2013 as well as give out
solutions until 2018
5. Methodology
- This thesis approaches the research topic in combination with comparative
analysis, which in one hand, points out common concepts, understandings and
practices with appropriate adjustments through quantitative and qualitative
methods.
- Data collection method: from books, joural, learning documents, internet,
articles, reports of Hùng Cường Co. Ltd.
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6. Structure of the thesis
The thesis included 3 chapters:
Chapter 1: The fundamental of market development of an enterprise
Chapter 2: Case study of Hùng Cường Co.,Ltd in tea – market development
Chapter 3: Solutions and orientations to develop tea market in Hùng Cường
Co.,Ltd

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CHAPTER 1
THE FUNDAMENTAL OF MARKET DEVELOPMENT
1.1. Definition, roles and function of market to the business performance
activity of an enterprise
1.1.1. Definition of market and market development
“Market” can be conceptualized in different ways. It is considered from

many angles and given into the different stages in the development of commodity
economy.
Understanding in the narrow sense, market is an actual or nominal place
where forces of demand and supply operate, and where buyers and sellers interact
to trade goods, services, or contracts or instruments, for money or barter. Thus, the
scope of the market is limited by considering the nature of market integration,
where there is an exchange, trade, or the circulation of goods, there is market. Here
is how to understand market factors associated with behavioral geography of
market integration, requiring organic unity of the object brought to exchange.
Firstly, market is where sales occur, later the concept is expanded leads to
the expansion in the system of stores, fixed boutiques, supermarkets, commercial
centers.
If understand in a broad sense, “market” is the economic phenomenon reflected
through the exchange and circulation of goods, along with the economic
relationship between people and people in the process of exchanging, buying and
selling goods and services.
Market is the overall agreement that allows buyers and sellers to exchange
goods and services. Thus, the market is not necessarily a specific location, such as
on a narrow sense. Sellers and buyers can not directly exchange, which can
through other means to establish the market. According to David Begg, the market
is a collection of agreements through which sellers and buyers in contact with each
other to exchange goods and services. In this sense, people emphasize the
exchange as well as regulation and condition to make a sale.
In the modern economy, market is considered to be the collapse of process

13


through which the decide the consumer items, what to produce, produced for
whom, how to produce, the worker's decision about how long to work, for whom,

are reconciled by adjusting the price, this notion shows that all economic relations
have been monetized. Price as elements of information to force market participants
to become the attention, the adjustment of price in trading relationship is the most
important factor for the relationship to be conducted.
Generally, the market was conceived as a combination of supply and
demand in which buyers, sellers compete equally, the number of people sell more
or less depending on the size of the large or small market. The competition in the
market may happen among sellers, among buyers or between sellers and buyers.
The price determination is decided by tsupply and demand.
The market, in economics and business, is where buyers and sellers (or those heve
demand and supplier) directly or indirectly contact with each other to exchange,
purchase goods and services.
The market is where they transfer the ownership of products, services or
cash, to satisfy the needs of both the supply and demand for a certain product
under the current rules, which specify the quatity and prices of essential products
and services. In essence, market is the whole potential customer who have the
same specific request, but has not been met and can participate in the process of
exchange to satisfy the need.
Market is a collection of buyers and sellers interact with each other, resulting
in the ability to communicate.
Market is the place where they buy and sell a kind of good. With this definition,
there are: rice market, coffee market, stock market, capital market, etc. .. There is
also a narrow definition of the market: a certain place, at which the purchase and
sale of goods and services happened .
According to Samuelson, an economits: "Market is a process in which the
buyer, seller and goods interact with each other to determine the price and quantity
of goods .
According to David Begg:"Market is a compact expression of the process
through the decision of the family of consumer items, the company's decisions

14


about what to produce, how to produce and for one, are reconciled by adjusting
prices.
Market development can be broadly defined as the introduction of existing
products into the new market and exploits the current market by introducing new
products to meet the market demand.
Under the micro angle (angle of business): market development of enterprise
development can be understood as the constituting elements of the enterprise
market, including input, output market factors.
1.1.2. Roles of market and market development:
In the market economy, market has a central location. Market is both the
target of business and the environment of goods production and trading.
The market is also a transfer of business operations. In the market, buyers,
sellers , intermediaries meet to exchange goods - services .
Roles of the market :
Firstly, is to ensure conditions for the development of production scale
continuously ensures goods for consumers to meet the demnad (preferences) and
the freedom of choice fully, promptly and convenient to a civilization service .
Secondly, it promotes , inspires the demand, gives corporate consumers and
individual consumers new products. It stimulates the production of high-quality,
modern and civilized .
Thirdly , the storage of goods for production and social consumption, reduce
reserves in the consumption stage, ensures the regulation of supply and demand .
Fourth, the development of services for corporate and individual consumers
increasingly diversified and civilized, freeing people from family work.
The fifth is stable market is to tremendously stabilize production, makes the people
‘s lives more stable .
Roles of market development

A business operating on the market pursues multiple objectives. Depending
on the time and competitive advantage in the market that targets are usually placed
on top. But again, three long lasting objectives of the business are: profit , power
and safety . They are all measured, evaluated and implemented in the market
15


through the product consumption. Therefore, market development is an important
factor for business success. On the other hand, market is a reflection of the
efficiency of an enterprise, reflecting the implementation of policies and business
strategies effectively or not. So through market development an enterprise can
assess business activities and promote the potential efficiency as well as adjust
shortcomings.
Competition rules of the market economy is tough. It eliminated all of the
business which does not keep pace with the development of the market . And one
of the most effective ways to avoid the lag is market development. Development of
exporting market ensures the market share, increases sales, increases profits, has
strengthened the reputation of the business in the international market .
In summary, development is the law of all phenomena, economic and social. Only
the development, does the business survives strong and fit the general trend of the
economy . Market development is the goal, an indicator reflecting the growth of
the business.
1.1.3. Functions of market
The market has 4 basic functions , on the basis of the 4 functional
understanding will help enterprises to exploit maximum benefits should be better
exploited .
a. Recognition:
The market is a meeting place between buyers and sellers in the commodity
exchange process. The sellers (businesses) offer their goods in the market with the
hope of selling to offset costs and profits. Buyers look for the market to buy goods

which meet their demand, tastes and ability to pay.
In the transaction, if the goods are not in accordance with ability to pay or not in
accordance with the tastes of the consumers, it will not be sold and means that it
will not be admitted by the market. Vice versa it will be recognized .
To be recognized in the international market, the business must do market research
to understand customer needs, and goods must be suit with their needs (in

16


accordance with the quantity, quality, the synchronization of specifications, type,
size , color, price, time, location ...) client .
b. Implementation:
In the market, the seller needs money, buyers need goods. The exchange between
the buyer and seller must be done through the exchange value of money or gold or
with other valuable documents. This function is very important, determines the
income of the business. To consume goods, companies not only gives the
reasonable price (profit) but also considers the exchange rate, government policies
and other factors affecting the price, the payment ability of customer to ensure that
the market functions is done.
c. Regulating and stimulating:
Through the exchange of goods and services, market regulates and stimulates the
business to develop. With stabilize and facilitate international relation and rapid
consumption will stimulate more businesses export.
And vice versa, regulating and stimulating the market regulates the entrance or
withdrawal of a number of enterprises. It encourages good business and investment
adjustment for profitability, new items with high quality so as to sell in large
amount.
d. Informative:
According to PAUL SAMUELSON, market is where to help businesses

decide 3 basic economic problems, they are: What to produce? How to produce?
and distributed to whom? Why can market help businesses make the right
decision? Because market is the place to provide information for businesses.
Market contains all information about the structure of supply and demand, the
supply-demand relationship to each commodity and the cost of market price ...
However, not any of the market information are correct, therefore, the
business must refine information to make the right decisions for their plans.

17


1.2. Methods and solutions to develop market of an enterprise
1.2.1. Methods of market development
1.2.1.1. Market development in width
Market development in width is trying to expand the scope to increase
market share by new customers. This method is used in the following cases:
+ The current product of business trends saturation,
+ Enterprise does not have the ability to compete in the current market,
+ Barriers in politic and law (international relations) too much for businesses in the
current market .
+ Enterprises has dull capacity to expand into new market to increase revenue,
profit or can not afford to increase its market share in the current market .
This is a right direction to increase enterprise ‘s market share in the international
market, contributes to its profit increase.
There are 3 ways to develop market in width:
According to geographical criteria: Market development in width was enhanced in
the presence of new businesses in the area with the current product, bringing
products into new areas in order to attract more customers to increase product
sales. However, to ensure success for the development of this market, businesses
need

doing

market

research,

identifying

market

conditions,

customer

characteristics and customer needs in new areas to make suitable marketing
strategies.
According to the product criteria: Market development in width is the entreprenuer
sell new products to existing markets (essentially, it is product development).
Always make new product with more consistent features for consumers, that
makes them look forward to using products of the business. Often apply productdiversified

policy

as

customer

requests.

According to customer criteria: Market development in width is the business
stimulates, encourages new group of customer use products of businesses,
customers can be competitors, they may not absolute consumption (potential
customers of the business) . So as to make it comes true, the business need to

18


understand clearly the customer's needs, strengths and weaknesses of competitors
to take the proper operation to win customers .
1.2.1.2 Deep market development
Enterprises try to improve product sales in the current market. This
development is often influenced by the competition, barriers to purchasing power,
geographical... Enterprises therefore have to study the market, the size, structure
and competitive products, the potential of the business to ensure the success of
market development activities. Market development in-depth often used when:
+ The current market is large and stable, good conditions for business
development.
+

Business

has

ability

and

conditions

to

compete

in

this

market.

+ Products in the market are reputed and preferred.
There are also 3 ways to develop market in depth:
According to geographical criteria:

Developing market in-depth means an

enterprise is trying to sell more goods into the place which is its market.
Enterprises using the marketing tools to lure customers, beating out competitors
and can monopolize the market in the future.
According to the product criteria: Developing market in-depth means an enterprise
is attempting to sell more products to their customer group. By serving, the
business wants to make the group become loyal clients.
According to customer criteria: Developing market means an enterprise enhances
selling a product with the highest level as much as possible in the market. It
requires the enterprise identify business sectors, areas they have the most
advantage to invest heavily to create business monopoly.
1.2.2 Solutions to develop market of an enterprise
1.2.2.1. Market research
Enterprise is an agent on the market. To be able to conduct business
successfully in the market, businesses must build a proper plan, in which clearly

defines and classifies the market (especially the key market) to exploit attractive

19


opportunities brought by the market. Although businesses are initially positioning
market to do business or want to develop their traditional market deeper, more
broadly, they all have to conduct market research. This is a mandatory step in the
business operations of the enterprise.
Market research is the process of collecting valuable information to help
you find out if there is a market for your proposed product or service. The
information gathered from market research helps budding entrepreneurs make wise
and profitable business decisions. The key to any successful business is to
understand what it is that your customers want and giving this to them in a way
that is profitable for you. Many entrepreneurs make the mistake early on of
thinking that they know what their customers want without ever asking them. This
can result in some very expensive mistakes later on.
Given below is a typical market research process:
- Defining the Problem or Need: The starting phase is always identifying
the reason or problem for which research is to be conducted. This includes
collecting of relevant initial information and how this information will affect
decision making process. It also includes defining problems after discussing with
decision makers of the organization. Once the problem is defined precisely and the
need of research is discussed, the further process could be conducted in an efficient
manner.
- Data collection: There are two basic types of data you can gather. The first
is primary data. Primary data is information you collect yourself, using hands-on
tools such as interviews or surveys, specifically for the research project you’re
conducting. Secondary data is data that has already been collected by someone
else, or data you have already collected for another purpose. Collecting primary

data is more time consuming, work intensive, and expensive than collecting
secondary data. Consequently, you should always try to collect secondary data first
to solve your research problem, if you can. A great deal of research on a wide
variety of topics already exists. If this research contains the answer to your
question, there is no need for you to replicate it.

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- Analyze the Data: Analyzing the data to ensure it’s as accurate as possible. If
the research is collected by hand using a pen and pencil, it’s entered into a
computer. Or respondents might have already entered the information directly into
a computer. Once all the data is collected, the researchers begin the data cleaning,
which is the process of removing data that have accidentally been duplicated
(entered twice into the computer) or correcting data that have obviously been
recorded wrong.
- Making decisions: information processing is the choice and market assessments,
making decisions consistent with the market development. When making decisions
needs to consider the strengths, weaknesses of the business as well as the
advantages or difficulties. In addition, businesses must also take measures to
overcome these weaknesses, put customers at the center position for the market
development activities of the enterprise.
Market research includes general research and detailed market research:
- General research: General market research is macro research. It is the study of
total supply and total demand of goods, the market price of goods, the
Government's policy on such goods (freebusiness, business with conditions,
incentive or prohibited business).
- Study of the total demand of goods is to study the total volume of goods
and strucutre of consumer goods through shopping or using the market price in a
certain period of time. The total volume of goods is the size of the market. Doing

market research must understand the number of people or the consumer units, the
number of commodities, a number of each kind of consumer goods. Through
market research scale, enterprises define their kinds of commodities, customers
and the scope of the market. When studying the total demand and structure of
commodity, businesses also need doing research on local environment, especially
the key market where consume a large volume and market prices of such goods in
the area from time to time.
- Study of the total supply of goods is to identify the ability in production in
a certain period of time, production units can supply how many goods, how much
they can import, how is the expected capacity (inventory). Selling price of

21


producers, prices of imported goods. Studying the market price helps business find
the differences of sale and purchase price. Through total supply research, business
determines the role and position of its competitors on the market, from which
propose measures and orientation to develop niche markets. Studying Government
policy on commodity trading allows doing business freedom, business with
conditions, incentive or prohibited business . It is tax policy, prices of related
services. Through this research, the business identify environment and business
conditions to meet the requirements of its market, as well as the advantages and
disadvantages of the environment .
In addition to these problems, general market research is needed to study
the dynamics of demand and supply in each region and in each moment.
- Detailed market research: studying subjects purchasing goods which business,
commodity market structure and trading policies of business who have big volume
of goods. Detailed market research must answer the question: Who is buying?
How much they buy? The structure of the categories? Where to Buy? What are the
goods used for? Competitors? Detailed market research must study the needs and

requirements of customers and determine the proportion of businesses market
(market share of the business) and market share of other business in the same
sectors , comparison on product quality, pricing, design, color and services for
customers compared to other businesses... to innovate and attract customers
purchasing products.
Market research has two components: desk research and field research.
- Desk research: Desk research uses secondary data to make a
preliminary selection of potential markets, includes contacting personals over
telephone or via series of emails and web meetings. Desk
research includes
three stages: preliminary statistical analysis of market potential, research on market
access conditions, research on transportation and distribution. It involves
identifying a reasonable number of countries that should be the focus of
more
detailed analysis, based on a process of exclusion of unsuitable
markets. This includes reviewing the population size, state of development,
purchasing power, geography, climate, cultural/social environment, tariffs,
currency restrictions, and political/economic conditions in each market. The
objective is to assess current consumer and buying patterns.

22


Advantage: Desk research allows the business to have an overall look of the
market

which

the

commodity

needed

doing

research.

Disadvantages: Lack of practice
- Field research is the collection of information outside of a laboratory, library or
workplace setting. The approaches and methods used in field research vary across
disciplines. Field research involves a range of well-defined, although variable,
methods: informal interviews, direct observation, participation in the life of the
group, collective discussions, analyses of personal documents produced within the
group, self-analysis, results from activities undertaken off- or on-line, and lifehistories.
Advantages: The method is characterized as qualitative research, real and
lively.
Disadvantages: Cost, time wasting.
- An indispensable stage in the development of market strategies is market
forecast, which is considered to be the premise of the plan. Typically, there are
three types of forecasting: short-term, medium-term and long-term forecast.
Depending on the method of data collection and forecasting requirements about the
goods market, we choose the different forecasting methods. However, all forecasts
are only prediction, they are feasible or not depends largely on the basis of the
forecasting and skills of business practice.
1.2.2.2. Market selection
To evaluate and select feasible strategies, requires businesses to give out
standards, then based on the standards to evaluate, analyse and select. It means that
the business strategy of a company, of a period of time determined by the
differences in specific goals. Therfore, there will also have different choices for

different standards, even very far different. So can not expect to raise a general
standard to all cases.
However, when comparing the drafted strategies of a business in a certain
time period, it is necessary to define a common standard. On the other hand, the
standard includes two groups: quantitative and qualitative:
- Quantitative criteria: It is easy to define this criteria. An enterprise often
uses standards of merchantability (the number of products and services,
23


revenue...), standard of profitability (or proportion of total profit margin) and the
response

capabilities

(capital,

labor,

raw

materials...)

- Qualitative criteria: this criteria is highly valued by businesses. It is
selected as the trading power in the market, the safety of an enterprise in the
market, the safety in business activities and the adaptation of strategies to the
market.
Based on the planned principles and standards, the business conducted
comparing the proposed strategy to the purposes to find a strategy for
implementation. A final determination which is applied must be an optimized

strategy

or

at

least

the

best

among

other

strategies.

To choose the best business strategies of all, we can use two methods: rating
according to standards and capital-invested lists.
1.2.2.3. Market integration
In fact, many companies often focus on the formulation of business strategy
and less concerned about the implementation of the strategy. The implementation
of strategy confirms the correctness of the strategic planning and it is the stage to
achieve business goals. For the implementation of plans, market development
strategy

includes

the

following:

- Step 1 : Review the objectives, market situation, business resources and
market strategy. This is the first and important step because all the objectives,
market development plans must be put in relation to the corporation ‘s resources
and

the

status

of

volatility

in

the

trading

market.

The review is to ensure the authenticity of the target market and helps develop the
implementation with high efficiency. After examining the correctness of the
strategic plan for market development, business will start making resource
allocation .
- Step 2: Distribution of resources is a reasonable basis to implement
strategic objectives most effectively. For businesses there are typically four main

types of resources: financial resources, physical resources and intangible resources,
technical

resources

and

technology,

human

resources.

Each resource has its own characteristics and different uses in the course of
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implementation of the strategy and market development plans. Depending on the
target, on each stage to have different resource allocation, so that the distribution
of resources will be timely, meet the opportunities to exploit a surprise
opportunity, promote the creativeness, initiativeness of staff and be able to adjust
when needed.
- Step 3: To achieve the goals to develop a strategic plan, the enterprise
must use policies and tools for implementation. Normally they use 4 tools such as:
product, price, distribution and promotion. During the implementation of
corporation ‘s objectives, they can use a tool or combination all these 4 tools to
ensure the effectiveness of the target. Depending on the specific conditions to use
properly.
1.2.3. Export promotion / sales promotion
Trade promotion is a very important and necessary activity in business

activity. In many situations, the effect of trade promotion has a decisive
impact on the outcome of

customer behaviour, inform the public about

important information such as product quality and effect of the product .
There are many approaches with the concept of trade promotion in business.
Trade promotion shall generally be defined as: "Any attempt of the seller to
persuade buyers accept the seller's information and store it in the form of
recoverability."
From the perspective of companies, trade promotion are understood and integrated
as follows: "Trade promotion is a special field marketing activity and intentionally
driven into the promotion, offer customers and establish a favorable relationship
between the company and customers with a collective potential key customers to
coordinate and implement dynamic marketing strategy and selected Marketing mix
strategy of the company ".
In principle, trade promotion is divided by the media characteristics, choice of two
classes: public trade promotion/ indirect and personal trade promotion/ direct.
In each class, they classified by the criteria of promotion tool primarily used to
promote

specific

groups:

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