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Luận Văn Tốt Nghiệp – IeMBA

LUẬN VĂN THẠC SĨ GIẢI PHÁP HOÀN THIỆN CHIẾN
LƯỢC MAKETING MIX TẠI CÔNG TY NƯỚC KHOÁNG
LAVIE

Subject: MARKETING STRATEGY OF LA VIE CO. (COMPLETE
SOLUTION FOR DEVELOPING MARKETING MIX MINERAL WATER
MARKET OF LAVIE LTD.)


Luận Văn Tốt Nghiệp – IeMBA

TABLE OF CONTENT
INTRODUCTION

8

Chapter I: The situation of the marketing mix activities for mineral water

9

products of Lavie Ltd. in the past
I. About Company Limited Lavie and the production of mineral water

9

1. The process of formation and development of Lavie Ltd.

9


2. Functions and duties of the company

11

2.1. Function

11

2.2. Tasks:

12

II. Environmental production and business activities

18

1. Business Environment

18

1.1. External environment

22

1.2. The internal environment:

24

The structure of the company


25

2.The reality of the lines, equipment and technology companies

27

3. The reality of the financial situation of the company

30

4. The labor situation of the company

31

6. Lavie mineral water customers

34

7. Competition.

36

III. Production and business results achieved by Lavie Co., Ltd.

42

1. Mineral water supply situation and target market of plant

42


2.Business results achieved by Lavie Co.

48


Luận Văn Tốt Nghiệp – IeMBA

IV. MIXED REALITY MARKETING ACTIVITIES FOR PRODUCTS CO. 50
Lavie
1. Product Policy

50

2. Pice policy

52

2.1.Policy objective of price

53

2.2.Factors affecting the price

53

3. Advertisement

54

3.1. Sales promotion (sales promotion)


56

3.2. Direct Sales

60

3.3. Public relations activities

61

4. A number of marketing activities he drank to the marketing mix strategy 62
for mineral water products Co., Ltd. Lavie
6. Evaluation of marketing activities for the product mixture of mineral water 63
Co. Lavie
Chapter III: A number of measures to improve the marketing mix activities for 64
mineral water products Co., Ltd. Lavie
I. The goal of the development of the marketing mix

64

1. The overall objective marketing

64

2. Objectives for the marketing mix activities

65

II. System solutions in order to improve the marketing mix for product 66

Mineral Water Company Limited Lavie
1. Capacity building for marketing Lavie Co.

66

2. Complete marketing system for mineral water product mixture Lavie

67


Luận Văn Tốt Nghiệp – IeMBA

2.1. Program planning organizations marketing mix activities

67

2.2. Predict response response:

68

2.3. Designed for marketing messages mixed

68

2.4. Decide the scope, frequency and intensity effects.

69

2.5. The complete system solutions marketing mix for Lavie mineral water 70
through its tools.

2.5.1. Advertisement

70

2.5.2. Sales promotion activities

71

2.5.3. Direct Sales

72

2.5.4. Public relations activities.

72

III. The other solution

73

1. Development of management information systems, marketing information

73

2. Coordinate the policies of the marketing-mix

74

2.1. Coordinate with product policy.


74

2.2. Coordinate with the pricing policies:

75

2.3. Coordinate with distribution policy.

75

Conclusion:

76

List of tables , figures, graph..
Table 1.: Summary of revenue and profit
Table 2.: Growth rate of GDP in the period 2002-2011
Table 3.: GDP per capita in 2002-2011
Table 4 : Vietnam population data


Luận Văn Tốt Nghiệp – IeMBA

Table 5: Age structure of the population, 2009
Figure 1.. Organization Chart Company La Vie
Chart 1.: Revenue growth and profit
Figure 2: The growth rate of GDP of Vietnam during the period 2002 - 2011
Graph 1: GDP per capita in 2002-2011
Chart 2: The McKinsey 7S model
Table 6: Matrix of external factors affecting EFE

Table 7: competitive comparison matrix (CPM)


Luận Văn Tốt Nghiệp – IeMBA

INTRODUCTION
Chapter I: The situation of the marketing mix activities for mineral water
products of Lavie Ltd. in the past
I. About Company Limited Lavie and the production of mineral water
1. The process of formation and development of Lavie Ltd.
2. Functions and duties of the company
2.1. Function
2.2. Tasks:
II. Environmental production and business activities


Luận Văn Tốt Nghiệp – IeMBA

1. Business Environment
1.1. External environment
1.2. The internal environment:
* The structure of the company
2.The reality of the lines, equipment and technology companies
3. The reality of the financial situation of the company
4. The labor situation of the company
6. Lavie mineral water customers
7. Competition.
III. Production and business results achieved by Lavie Co., Ltd.
1. Mineral water supply situation and target market of plant
2.Business results achieved by Lavie Co.

IV. Food state mixed Marketing operations for the company's mineral
products Lavie Ltd.


Luận Văn Tốt Nghiệp – IeMBA

1. Product Policy
2. Price policy
2.1.Policy objective of price
2.2.Factors affecting the price
3. Advertisement
3.1. Sales promotion (sales promotion)
3.2. Direct Sales
3.3. Public relations activities
4. A number of marketing activities he drank to the marketing mix strategy
for mineral water products Co., Ltd. Lavie
6. Evaluation of marketing activities for the product mixture of mineral water
Co. Lavie
Chapter III: A number of measures to improve the marketing mix activities for
mineral water products Co., Ltd. Lavie


Luận Văn Tốt Nghiệp – IeMBA

I. The goal of the development of the marketing mix
1. The overall objective marketing
2. Objectives for the marketing mix activities
II. System solutions in order to improve the marketing mix for product
Mineral Water Company Limited Lavie
1. Capacity building for marketing Lavie Co.

2. Complete marketing system for mineral water product mixture Lavie
2.1. Program planning organizations marketing mix activities
2.2. Predict response response:
2.3. Designed for marketing messages mixed
2.4. Decide the scope, frequency and intensity effects.
2.5. The complete system solutions marketing mix for Lavie mineral water
through its tools.
2.5.1. Advertisement


Luận Văn Tốt Nghiệp – IeMBA

2.5.2. Sales promotion activities
2.5.3. Direct Sales
2.5.4. Public relations activities.
III. The other solution
1. Development of management information systems, marketing information
2. Coordinate the policies of the marketing-mix
2.1. Coordinate with product policy.
2.2. Coordinate with the pricing policies:
2.3. Coordinate with distribution policy.
Conclusion:
REFERENCE


Luận Văn Tốt Nghiệp – IeMBA

INTRODUCTION
Vietnam is now on the development of market economy, many components, the
integration with the regional economy and the world. In the development process,



Luận Văn Tốt Nghiệp – IeMBA

there is a new job, new opportunities for the people of Vietnam, which is the field of
Marketing.
Only a few years ago, when it comes to Marketing people do not understand what it
is industry, they provided it is simply marketing. But perhaps now, the term
"Marketing" is no stranger to the people but they have not been able to fully
understand the role of its activities in the field of manufacturing and trading.
In the past customers have to be proactive to find the goods, and today's businesses
to find customers for his goods more and more, increasingly diverse. Consumers
may select goods for his business and marketing has helped to sell, just to help
consumers choose the right products they need.
Joint Venture Company La Vie is the one who must find his client because the
bottled water market today are widespread in Vietnam market. Issues need to set out
what companies must do to stay on the market this fierce watch?
In this article I would like to know how the company La Vie can stand strong even
in the Vietnamese market and Marketing department has contributed to that success

1.1 ABOUT COMPANY LTD LA VIE
1.1.1Foudation and development
Lavie venture company formed investment partnership of Long An Food Company
and Franco Asiatique Holdings Company Pte.Ltd. (CFAH) under license number
423/GP investor on 30/09/1992 with a total initial investment of $ 5,600,000, capital
of $ 2,000,000 of which the country accounts for 35% stake share, foreign


Luận Văn Tốt Nghiệp – IeMBA


accounting for 65% share. In October / 1993 Perier Vittel Group-a group of the
world's leading mineral water Company has equity participation CFAH with the
level of contribution is 51% of the shares of the Company CFAH. For Vietnamese
partners, on 04/04/1996 General Trading Company nominated Long An Province
Long An alternative Food Company under the investment license number
423/GPDC2. Lavie Venture company officially changed the name into Co. Lavie on
17/07/2007 under number 501 022 000 040 investment certificate by the People's
Committee of Long An Province-level Co. Lavie is the cooperation between
General Trading Company Long An Province and Nestle Waters corporations.
La Vie Co. officially put into operation on 01 May 07, 1994 with an initial capacity
of 15 million liters / year. Investment each year to be considered by the growth of
manufacturing and trading company. Current capacity 3-fold increase compared
with the initial capacity, there are two kinds of mineral water production line. From
the beginning of modern automated equipment with a closed process technology
from production of bottles, bottle packaging under strict quality supervision of
Neslte Waters, a member of the Nestle Group, along with good market access and
exploit the products of the company is leader in the field of products and bottled
water is the only bottled water products sales network across the country. Now, the
company is providing the Vietnam market products called 'natural mineral water La
Vie'.
Co., Ltd. La Vie is the first beverage company in Vietnam granted certificate of
international standard ISO 9002 and continuously for 14 years (1997 - 2011) La Vie
was voted by consumers' 'High Quality Vietnamese Goods'. In particular, for 8
consecutive years (2001-2008), La Vie is considered the best and award winning
'Golden Dragon' by the Economic Times in conjunction with the Ministry of
Planning and Investment organization.


Luận Văn Tốt Nghiệp – IeMBA


La Vie Co., whose office is located in Long An and three branch operations in Ho
Chi Minh City, Hung Yen and Hanoi. The company operates under the
administration of the board, including general manager and deputy general manager
of the Company. From its inception, the company was interested in the development
of local human resources, the company has nearly 272 staff members, but only two
foreigners is CEO and plant manager. The key staff are university graduates and be
nominated to France to attend training under the guidance of experts of Nestlé
Waters Corporation. The Company also applies mentoring training measures in
place or send professional training courses in the country to improve the skills of
officials and employees of the Company.
A crucial part of the success of La Vie Co., Ltd. is a clever combination of
professional qualifications in the field of international mineral of Nestlé Waters
Corporation with the intelligence and diligence of the basic training Vietnam
Company to a sufficient level, access to new technologies as well as take on the
important position.
The milestone of La Vie
1992: Establishment of Joint Venture mineral La Vie in Long An
1993: Nestle Water is a major investment for a 65% stake
1994: La Vie debut product markets 0.5L and 1.5L.
1999: La Vie launched 5G bottles for home and office
1999: La Vie achieved ISO 9001 certification, the first company in the field of
beverage achieve this certification
2002: The factory in Hung Yen official manufacturer La Vie provides market the
North
2005: Innovation from the square bottle round bottle switch use to this day


Luận Văn Tốt Nghiệp – IeMBA

2008: Investing in small bottles and bottles of 19L line with the most modern

technology for the plant in Long An
2009: Achieving ISO 22000 certification, ISO 14001 and OHSAS 18001
2010: Investing in small bottles and bottles of 19L line to the factory in Hung Yen
2011: launch of the new line Krones for Hung Yen plants (20 000 bottles / hour,
project investment PET line for Long An (48000 bottles / hour) and extended
storage.
1.1.2. Vision - Mission - Values
Vision:
Maintain and promote La Vie become the number one bottled water company in
Vietnam (On production and sales) with the resulting high-quality products bring
profit to the company.
Mission:
- Developing and investing in key personnel
- Investment in system / process (ERP, RMA, etc.), re-set the workflow to improve
productivity
- Investments in brand and product innovation
- Focus on quality
- Improving safety behavior in all areas of the company
- Continuous improvement in order of priority everywhere
Value
- All for customers: We are committed to focus on serving customers and
consumers.Customers will feel very satisfied with our quality and service. We
anticipate the future needs of our customers and are always prepared to meet those
needs.


Luận Văn Tốt Nghiệp – IeMBA

- Commitment to quality: There is no compromise on quality.La Vie products
always have high quality than the competitors.

Continuous improvement: We always have the ambition to continually improve the
performance measurement indicators, methods and work efficiency of employees.
- Human resources La Vie make a difference: We want to retain, develop and recruit
the staff always had the passion, ambition and progressive.La Vie employees who
have high-performance along with extensive knowledge of the soft drinks industry.
- Integrity, honesty and dedication: We are open and fair with employees and
business partners.We respect different views. We are committed to the job and the
company.
- Proud of the company: We are convinced and proud to work for food and beverage
companies in the world as well as Vietnam.
Figure 1.1. Organization Chart Company La Vie


Luận Văn Tốt Nghiệp – IeMBA

General directors representing foreign partners, general operating business
operations, responsible for the efficient production of the company's business.
Deputy General Director representing the Vietnamese partner in the joint venture,
besides vice president responsible for the relationship between joint venture with
the local government and is operating the quality management activities throughout
the company.
Director responsible for managing plant production activities as well as
development projects in both the Long An and Hung Yen. Director of the factory
Long An (in fact Director cum factory location) and Hung Yen carry out the


Luận Văn Tốt Nghiệp – IeMBA

management of production activities in the factory under the management of the
factory manager. Long An is responsible for plant production and supply of

products to market South from the town back on. Hung Yen is responsible for plant
production and market supply North from Quang Tri.
Company marketing department is responsible for marketing, trade promotion for
the country, both North and South markets. Marketing department is responsible for
development and implementation of strategic marketing plans to promote the sale of
products to ensure the business plan of the company.
Booking is divided into two zones with two parts: the sales department small bottle
of South and North, the obligation to sell large bottles of South and North. Northern
Sales is responsible for promoting the consumption of plant products by Hung Yen
produce across the northern range from Quang Tri. In the North, with sales selling
small bottles and a big bottle, small bottle sales department with the task of
organizing the consumption of small-sized products (products with a capacity of
350ml bottles; 500ml; 1 , 5L; 5L) also large bottle sales department is responsible
for organizing large-sized consumer products (product type cylinders 19L aka 5
gallon bottles).
Purchasing and supply mission to organize the search for suppliers of materials,
equipment, machinery, purchase planning and production provide sufficient and
timely manner to ensure the production schedule . And organize freight to the place
of consumption, fully meet the requirements of the volume of goods as required by
the sales department.
Forecasting, supply planning and product consumption by the plant, supply room,
the sales department work closely together to build. Sales department is often to
predict the volume of products sold in certain phases as the month and year, on the


Luận Văn Tốt Nghiệp – IeMBA

basis that the supply air and room planning production and supply of products to the
market.
Financial and Accounting Department has an advisory role to the board of the

financial plan to achieve the highest business performance through this plan. Also
responsible for coordinating implementation, inspection and control of business
operations of the company through the financial criteria to ensure the business
objectives set.
HR management HR issues such as recruitment are fully guaranteed to provide
high-quality human resources to effectively serve production and business activities
of the company. Make sure the salary, bonuses and social modes such as social
insurance, health insurance, etc. of staff are met satisfactorily.
The IT department is responsible for ensuring the operation of information
technology systems, data connectivity throughout the company, effective.
Target market of La Vie
Natural mineral water products the La Vie service for refreshments and goals focus
on the high-income market, development of industrial life that is urban, industrial
zones across the country. La Vie bottled product types 350ml, 500ml, 1.5L, 5L and
5G (19L) in which two strategic product lines is 500ml and 5G.
- The small bottle of product: 350ml, 500ml, 1.5L and 5L are sold nationwide
through retail market: distributors, dealers, supermarkets and retail stores.
- 5G assigned product market:


Commercial customer markets: business, company, factory, industrial,

office, headquarters buy in bulk.


Residential market: the family


Luận Văn Tốt Nghiệp – IeMBA




Current 5G products are distributed mainly in Hanoi,

Hai Phong, Ha Long, Hai Duong, Ho Chi Minh City, Can
Tho, Vung Tau, Bien Hoa and surrounding areas
1.1.3.

Production and business results

1.1.3.1. The product structure of La Vie Co.
The time now La Vie bottled natural mineral water as the major products are
classified into two groups: small size products with the bottled product types 350ml,
500ml, 750ml Premium, 1.5L and big bottled products Product with 5L and 19L
vessels. In which the two products account for a high proportion of 500ml and 19L.
Analyzing the structure of small-sized bottles and large bottles, the data is measured
in liters of bottled products, small size accounts for 46% of output, and large size
bottles account for 54%
Analysis of the proportion of each product, with data calculated in liters, 19L
products (5gallons) accounted for 49.4% of output and 500ml products accounted
for 28.7%. These are the two main products in the product portfolio of La Vie. The
remaining products turn 350ml accounted for 8.0%, 1.5L accounted for 8.4%, 5L
accounted for 4.4%, the kid-350ml 0.5% and 0.3% premium 750ml.
1.1.3.2. Revenue and profit over the years

Table 1.3: Summary of revenue and profit


Luận Văn Tốt Nghiệp – IeMBA


Chỉ tiêu

2007

DOANH THU 231,571,343
LỢI NHUẬN

2008

2009

2010

2011

304,377,018

388,594,700

543,676,268

749,644,690

23,816,172

32,823,822

69,661,538

84,101,223


17,039,498

26,967,557

50,687,848

62,589,614

31%

28%

40%

38%

138%

38%

112%

21%

8%

8%

13%


11%

TRƯỚC

10,008,896
THUẾ
LỢI NHUẬN
THUẦN
TĂNG

(1,394,478)

TRƯỞNG
DOANH THU
TĂNG
TRƯỞNG
LỢI NHUẬN
TỶ SUẤT LỢI
NHUẬN

4%

Source: Financial statements of La Vie 2007-2011

Chart 1.4: Revenue growth and profit


Luận Văn Tốt Nghiệp – IeMBA


2.2.

BUSINESS ENVIRONMENT ANALYSIS OF LA VIE - EXTERNAL

ENVIRONMENT
2.2.1.

General environment - PEST model

2.2.1.1. Economic Environment
Economic growth rate
Table 2.7: Growth rate of GDP in the period 2002-2011

GDP Growth (%)

2002
7.1

2003
7.3

Source: World Bank - World Bank

2004
7.8

2005
8.4

2006

8.2

2007
8.5

2008
6.3

2009
5.3

2010
6.8

2011
5.9


Luận Văn Tốt Nghiệp – IeMBA

Figure: The growth rate of GDP of Vietnam during the period 2002 - 2011

- According to data on the economic growth of Vietnam from 2002 until now is
quite high.This is a positive factor to the business activity in the economy of
Vietnam in general and La Vie in particular. Growth rate of GDP growth has pulled
the growth rate of GDP per capita also increased:
Table 2.8: GDP per capita in 2002-2011

GDP Growth (%)


2002
7.1

2003
7.3

2004
7.8

2005
8.4

2006
8.2

2007
8.5

2008
6.3

2009
5.3

2010
6.8

2011
5.9



Luận Văn Tốt Nghiệp – IeMBA

GDP
(USD)

per

capita

441

492

558

642

731

843

1,070

1,130

1,224

Unit: USD / person / year
Source: World Bank - World Bank

Graph: GDP per capita in 2002-2011

- From the above data shows GDP per capita relative increase steadily over the
years, and the relative increase since 2002.Vietnam has overcome the low-income
threshold and are at the stage of low average income. This is a benefit for the
economy as well as general manufacturing enterprises La Vie in particular.

1,411


Luận Văn Tốt Nghiệp – IeMBA

Increasing consumer
- Economic growth and per capita income affects the consumption of general goods
and bottled water products, including La Vie in particular.When economic growth,
high income people, material life is guaranteed, the need to improve nutrition,
demand for food safety, including bottled drinking water also increases.
- On the one hand to achieve a relatively high GDP growth for many years, but
Vietnam's inflation high and erratic, control is poor.2011 inflation index at
18.7%. This is a major difficulty for the production, rising input value while people
limit consumption because of the expensive.
- Go along with high inflation and erratic bank interest rates also unpredictable
fluctuations, especially in 2011 and early 2012, interest on bank loans at very high
rates, sometimes up to 25% / year.This figure was stifling the production of goods
and, of course, have a major impact on the economy. Production decline as people's
incomes decline and ultimately consumers decline, here it is direct production
decline.
Vietnam international economic integration:
- When Vietnam joined the World Trade Organization WTO, Vietnam will cut
import duty in accordance with the roadmap as WTO commitments.Specifically,

about 36% of tariff lines in the tariff to cut import tax rates compared to the
current. Route cuts last from 5-7 years. The branch cuts most textiles, fisheries,
manufacturing
create and machinery, automobiles and auto parts, food processing ...


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