Marketing mix strategy to expand the market for 3d shirt uniforms

PROFESSIONAL DEGREE IN MARKETING AND SALE (2015-2018)

INTERNSHIP REPORT
MARKETING MIX STRATEGY TO EXPAND THE
MARKET FOR 3D SHIRT UNIFORMS

Class

: Marketing 9

Name

: Le Hoai Nam

Tutor teacher

: La Tien Dung, Prof. Corinne Montoya

Company name

: Paradise Vietnam

Tutor in the company : Hoang Van Thanh

HA NOI - 2018
1


SUMMARY
With our current market, with the tendency of opening up the integration of the world
economy, the application of marketing strategies in brand marketing communication activities

is extremely important for the company’s survival and development. Private business is an
important factor in promoting the development of the business. In the context of an evergrowing economy, optimizing profit and increasing brand credibility are important steps for
this long-term market survival.
Vietnam garment market is a very potential market, the demand for this item is endless.
Stepping into this market, the profitability of the business is extremely large; however, the
competition between business enterprises in the same industry is increasingly fierce. Having
favorable opportunities for business development, Zenco Co., also encountered many
obstacles. Although the company has been established for nearly 7 years, it has just begun to
produce and market its own garments. The volume of goods sold and profitability is still low
and unstable. Therefore, maintaining and expanding the market is an urgent matter that need
to be addressed now if the company wants to stay in the domestic garment sector.
Throughout my internship at Zenco with the kindly supervisor of Dr. La Tien Dung
accompanying with my effort research, I have completed our graduation thesis on the subject:
" Marketing mix strategy to expand the market for 3D shirt uniforms."

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ACKNOWLEDGEMENT
During my internship, research and doing the lecture "Marketing strategy for 3D
uniforms", I received a lot of help from the school as well as ZencoVN Co., Ltd.
First of all, I would like to send my gratitude to all the teachers who are working at the
Thuong Mai University and gave me the opportunity to study, study and practice in a
professional environment. I would like to express my deep gratitude to the instructor - Dr. La
Tien Dung - for his helpfulness, guidance and instruction during the course of this thesis.
I would like to thank all staffs and employees in Zenco limited liability company. for
creating all best conditions and guiding me dedicatedly during the practice of your company
and providing data and information for me to complete this essay.
Due to several shortcomings, my lecture is still limited. I look forward to receiving the
comments of teachers.

Sincerely!

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INTRODUCTION
What do you think about fashion? Luxury and expensive? What is your dressing style?
(simple or sophisticated)? Do you think that it is so trendy? How much money do you spend
on shopping for clothes? These are questions often posed to young people who love fashion.
Today, along with the development of society, fashion trends also change and grow
rapidly based on the demand. From the characteristic materials for each season of the year, the
designers also create new styles and bring a new fashionable breath of modern fashion. When
wearing pants, a trendy dress will make people more beautiful, more confident. Fashion can
play a very important role in today's society, and that is why this industry has attracted many
businesses to join the market including ZENCO.

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LIST OF TABLES

CHAPTER 1: OVERVIEW ABOUT TO MARKETING STRATEFY TO EXPAND
HANOI MARKET FOR PRODUCTS OF Zenco Co., Ltd.
1.1. Research urgency of the project

For any business, issues related to consumer markets are also vital. The market is the
place where the business sells products and services, serves the needs of consumers and get
profits from it. But the economic situation is always fluctuating; as a result, the market also
changes and there is no long-term stability. In order to survive, develop and affirm the
position, every business needs to make good use of its resources and adapt to change flexibly

and to constantly develop strategies to occupy market share.
Vietnam, with a population of nearly 90 million, is a country with a young population
structure, people's income is constantly increasing, the demand for garment is diverse, so the
business of garment is a rich and potential business. In recent years, thanks to the variety of
models and good quality, Vietnam's garments are increasingly popular among consumers,
promising to bring many benefits for domestic enterprises. By running a business and moving
towards a promising market such as the apparel market, plus companies starting to make their
own and branding themselves as Zenco, competition is fierce. From the business sector is
inevitable. Not to mention the businesses have confirmed the status and growth in the country
such as Gấu uniform, Zumi.com, ... Zenco also faces many difficulties when Vietnamese
consumers are also favored foreign products – the famous and affordable brands such as Zara,
Mango, H & M, ...
Due to the company's market issues and the fierce competition that I have mentioned
above, it is imperative to research the marketing solutions to help Zenco Ltd expand the
market for its products garment company.
1.2. Research objectives

- Systematizing the basic theories, market expansion modalities, and mixed marketing
tools to market the company's business.
- Analyze the situation of marketing solutions to expand the market of garments of
Zenco Co., Ltd. in Hanoi, thereby multiplying the advantages, limitations and causes.
- Proposed solutions and recommendations to address the remaining constraints in the
marketing solution of Zenco Co., Ltd., helping the company improve its competitiveness,
position as well as expanding and developing the market share.
1.3 Research scope
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The scope of the study includes: research subjects, research scope, research products
and study period.

-

Research subjects:

+ Content of the research: marketing solutions to expand the company's garment
market, focusing on variables: products, pricing, distribution and promotion.
+ Customers: mainly institutional customers and schools.
- Scope of market research: the research activity is limited at Zenco Co., Ltd in the area
of Hanoi.
- Research products: the company's 3D uniform.
- Research time: research on the data from 2015 to 2017. Then introduce mixed
marketing solutions to develop the market in 3 years 2018-2020.
1.3. Research Methods
1.3.1. Data collection methods
1.3.1.1. Secondary data
a, Collected data
+ History and development of the company.
+ Business lines, organizational structure.
+ Business results in 3 years 2015-2017.
+ List of products, policy of discount.
+ The list of customers of the company.
+ Budget for promotion activities.
+ Marketing concepts and theories.
b, Source:
+ Source inside company: Collect data about the list and price of the company's
products through the Zenco.vn website; Obtain reports on business results from marketing
department and financial reports of the company through the years especially 3 years 20152017.
+ Source outside the company: Basic Marketing Curriculum – Assoc. Prof. Tran Minh
Dao, Marketing Manager - Philip Kotler, ...
1.3.1.2. Primary data

a, Collected data
 For administrators:
+ The market and target customers of the company.
+ Objectives and strategies of the company.
+ The current marketing solutions that the company is using.
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+ The urgent issue that the company sets.
 For customers:
+ Interest and preferences of customers about the company's products.
+ Assessment and evaluation of quality, price, product design.
+ Advantages and disadvantages when buying goods.
+ Information accessing
+ The contributions that helps the company to improve the product to the customer.
b, Source: synthesized from the observation, investigation, interviews directly with the
members of the company about issues related to business and marketing solutions to expand
the company's garment market recently; and from customers through interview questions
about wants, preferences, reviews and opinions about the company's products.
c, method of collection:
 For administrators:
Subjects: interviews with 8 managers of the company, including one director and one
vice director, three sales managers and three sale staffs.
+ Time: 1 week
+ Number of questions: 17 questions revolve around the company's market development
policies.
 For customers:
+ Subjects: randomly Conducted questionnaire for 50 consumers in Hanoi.
+ Time: 1 week.
+ Number of questions: 16 questions for customers have used and 12 questions for

consumers have never used the company's clothing, survey about the demand and reviews
about products and policies of the company.
1.3.2. Data Analyzing Method
1.3.2.1. Secondary data
+ Comparison method: It is used in analyzing the selling data and financial situation by
comparing with previous years. Consequently, realize the trend in selling effectiveness to
suggest the suitable solutions for the next period.
+ Ratio method: Usually used with comparison method to show the change of statistics
through years,
1.3.2.2. Elementary data
+ Synthesis method: Summary of questionnaires, interviews to analyze the data
collected; synthesize and select information logically, in accordance with the content of the
topic.
+ Statistics method: Statistics results in the coupon template, emulation. From that,
extracting percentage of percentage, judge the current problems accurately.
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+ Comparison method: Comparing among ideas and suggestion to figure out the core
problems.
CHAPTER 2 : BRIEF SUMMARY OF BASIC ISSUES IN MARKETING MIX
SOLUTIONS TO EXPAND THE MARKET FOR COMPANY PRODUCTS
2.1. Market concept
Market is closely stick to the term “commodity of manufacture”, it is environment for
process of the business transaction of every company. Accompany with the productmanufacturing development, the term “market” is becoming more popular and variable. There
are some concepts about the term “Market”:
Philip Kotler’s concept: "the organization's marketing task is to determine the needs,
wants and interests of target markets and to achieve the desired results more effectively and
efficiently than competitors, in a way that preserves or enhances the consumer's or society's
well-being.

According to marketing perspective, the term marketing is judged in two aspects:
In macroscopic aspect: Market is understood as a complex and continuous set of
business environment, attractive goods-exchange relationships executing in an open space of
providing objects and the interactive relationship between them.
- In microscopic aspect: Market is understood as a set of customers who have the same
demand for the product of the companies and its rivals
2.1.1. The concept of market expansion
Market expansion or market development is understood to be an extension to meet the
unsatisfactory need to create new opportunities for the business. Market expansion is the
process of enhancing the ability to exploit the market and develop new markets of the
business company to achieve business goals and improve the position of the company in the
specified period.
2.1.2. The role of market expansion for business
Market expansion is a condition of business survival. In the modern manufacturing
economy, science and technology are increasingly advanced, the competition is fierce on the
global scale. To be successful in business, a business must not only gain market share, but the
company must the top of the market. In order to do that, it is imperative that businesses keep
expanding their markets and gaining a firm foothold.
Expanding the market helps businesses speed up the consumption of products, exploit
all potential of the market thoroughly.

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Expanding the market shortens product life cycle in the process of circulation,
accelerates the cycle of expanded reproduction, increases the turnover of capital, and
increases profitability.
Expand the market to develop stably, increase market share, improve its position in the
domestic and international market. The higher the market share, the more competitive your
business is, so it can easily enter the new market.

2.2. The basic content of the marketing mix solution to expand the market
2.2.1. Research and target market of the company
2.2.1.1. Company market research
Market research is the first and most important step of every marketing strategy to
penetrate and expand your business. A well-executed market research will provide businesses
with accurate information about the market and factors that influence the market of the
business. From there, it creates the conditions for the manager to make appropriate and
effective marketing decisions. Market research will focus on the matter subject of the
purchase and the type of merchandise that the business is producing, and the structure of the
commodity market as well. The enterprise must determine its market share. In comparison
with competitors' market share, there are specific marketing solutions. Market research must
answer the question: Who are the customers? What characteristics do they have? How much
they buy? Structure type of goods? Where do they buy it? What is the purpose of the
purchase? Who is competitors? ...
The main purpose of market research in market penetration and expansion is to study
consumer attitudes, habits and characteristics. From there, businesses seek the adaption or
influence on other impact factors. In other words, this is the study of potential customers of
the business in all aspects such as scale, financial status, affordability, behavior, motivation to
buy, ... so that it can meet the needs of the customer.
2.2.1.2. Customer set and characteristics of customer sets
With the strategy of penetrating and expanding the market, the target customers of the
business are new customers and current customers in the new market and the current market.
New customers haven’t known or used products of the business, they may be customers of
competitors and have no trust in the product of the business. In this case, businesses need to
take measures to entice them to use their products by enhancing their credibility and position
in the marketplace, creating credibility and satisfaction about the product in customer. With
current customers, they are the ones who have used and have had a certain belief in the
product of the business. However, depending on the needs and conditions allowed, they only
buy in certain quantities, they can also fluctuate and switch to other competitors' products
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with greater benefits. To do that, the company needs detailed research and specify its
customer.
CHAPTER 3: ANALYSIS OF RESULTS OF MARKET RESEARCH IN MIX
MARKETS TO PARTICIPATE IN HANOI MARKET FOR ZENCO PRODUCTS.
3.1. Overview of the business of Zenco Ltd
3.1.1. About Zenco Co., Ltd.
Company Name: Zenco Co Ltd.,
Head office: 55/5 - Huynh Thuc Khang - Dong Da - Hanoi
Chartered capital: VND 6,171,000,000
Zenco Co Ltd., is a state-owned enterprise operating under the Business License No.
0106115850 dated 06/03/20012 issued by the Department of Planning and Investment of
Hanoi City.
The company has been named Zenco since its inception and has continued existing for
six years.
In the early years of establishment and operation of the company, there is only a few
samples of uniforms with simple monochromatic colors. Later, when the demand for
aesthetics increased, the company has researched and developed many different models and
types, specially the product of 3D clothing launched in mid-November 2017.
Currently, the company has a business capital of VND 6 billion and 150 employees are
assigned tasks in accordance with the professional level of each person.
 The organizational structure of the company
Company director
Vice director – in charge of production
Vice director – in charge of technique
Organization and administration department
Financial department
Profession and major department
Marketing department

Technology and electricity department
 Main business fields of the company
- Producing and processing textile and garment products for export and domestic
consumption.
- The main activity of the company is processing. customers provide raw materials,
designs, models, technical documents, the company manufactures according to the request of
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customers, then export the products. This activity is the majority of the company's annual
revenue.
- However, the company has been gradually improving business activities with the goal
of long-term development is to trade company-branding products in the domestic market and
export to the major markets like USA, EU, Japan, ...
3.1.2. The business situation of the company
Table 3.1: Business results of the company in the past 3 years (2015 - 2017)
(unit: million VND)
No
.

Targets

2016/2015
Year
2015

Year
2016

Year

2017

Quantit
y

Proportio
n (%)

2017/2016
Proportio
Quantit
n
y
(%)

1

Revenue

63.14
2

63.87
4

65.97
1

732

1,16

2.097

3,28

2

Expenditur
e

55.47
1

58.34
6

59.33
4

2.875

5,18

988

1,69

3

Profit

7.671

5.528

6.637

(2.143)

-27,94
1.109
20
(Source: Financial Department)

Based on the results of the company's business results can be seen:
-

Revenue from 2015-2016 increased slightly (revenue in 2016 increased 732 million,
equivalent to 1.16% over 2015), but the cost of business activities increased sharply resulting
significantly reduced profit. (profit in 2016 decreased 27.94% compared to 2015). This is
explained by the fact that in 2016, the company has shifted to manufacture the brand-new
Zenco products. In order to carry out this product line, the company has to invest a lot of
manpower, material and financial resources. In the same year, the company also opened a
branch in Hanoi, which has the function of displaying, introducing and selling Zenco's
garments. Thus, 2016 profit reduction is inevitable.
- Revenue from 2016-2017 increased significantly (revenue in 2017 increased by more
than 2 billion, equivalent to 3.28%), and profit also increased (profit in 2017 increased 20%
compared to 2016). This is an optimistic sign that the business performance when the
company has boldly turned to garment self-production. This is a great encouragement to the

whole management team as well as employees throughout the company.
3.2. Analyzing the influence of environmental factors on marketing mix solutions
to expand the market for products of Zenco limitted liability Company.
3.2.1. Macro environment
3.2.1.1. Demographic environment

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Vietnam has about 90 million people with a growing population of young people with
increasing incomes and the demand for fashion - garment is constantly increasing as the basis
for the garment industry to grow. Hanoi is a relatively large population, of which Zenco has
the only branch in Dong Da District, one of the four most densely populated districts in and
locate closely to 3 fast-urbanized districts and stable living standards: Hai Ba Trung, Hoang
Mai and Hoan Kiem districts, the management of the company was wise to set up its first
branch in Dong Da district.
3.2.1.2. Economic environment
In recent years, the Vietnamese economy has faced many difficulties, especially after
the economic crisis in 2016. This has a great impact on garment enterprises in general and
Zenco in particular.
In recent years, the inflation rate has been high (in 2016: 6.81%, in 2017: 6.04%), the
input price is constantly increasing, the labor price also increases while the output tends to
increase. Reduction has made it difficult for the company to balance revenue, cost and
profitable.
The growth rate directly affects the financial status and affordability of consumers. By
2015, the GDP growth rate will be 5.89%, 2016 to 5.03% and 5.4% in 2017 respectively. The
average economic growth rate in 2015-2017 is only 5.6% / year (the lowest level in 5 recent
years, far lower than the planned average growth target of 6.5 - 7%). Therefore, the domestic
garment market is quiet, slow consumption, inventory increase as consumers have tightened
spending. Many businesses suffer losses.

3.2.1.4. Legal and political environment
In the garment business, the political environment - the law has a strong influence on
the decisions of the company. In recent years, textile and garment industry has been identified
as a spearheaded industry by the Party and the state. Therefore, there are many regimes,
policies, legal documents, regulations ... to support and facilitate the development of the
garment industry. Approved by the Prime Minister, the Ministry of Industry and Trade also
issued Decision No. 320 / QD-TTg dated 8/02/2013 approving the development plan of
Vietnam textile and apparel industry to 2015, orientation by 2020. Accordingly, some general
objectives: textile and garment industry to become one of the key industries, spearheaded for
export; and enhance competitiveness, firmly integrate regional and world economy.
Therefore, the business opportunities for businesses in the field of textile and garment
industry are growing.
Besides, Vietnam is also considered to have political stability and security. That is the
opportunity and conditions for foreign investors to invest in Vietnam.
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3.2.1.5. Technological - technical environment
Today, the technology is modern and has a great influence on the commercial business
of the business. Modern technology supports enterprises from manufacturing, managing
quality and consulting sales-payment- transportation. The garment enterprises in Vietnam in
recent years are well aware of the importance of technology in production. Companies
continually import machinery and equipment of foreign countries to replace peanut equipment
for example, the manufacturing system has changed from foot pedal machines to modern
automatic sewing lines. Thanks to modern technology, Vietnamese enterprises have improved
their labor productivity and product quality and lowered product prices to increase their
competitiveness.
3.2.2. Micro environment
3.2.2.1. Customer
Hanoi is a city with rapid economic development of in country, which is concentrated

large number of customers have high living standards and stable income. With the increase in
living standards, they are willing to spend more on clothing - most of which show social
status and personal style. They are increasingly demanding in shopping and require the higher
level of quality, design and brand reputation. Developing business to meet the maximum
customer demand and completing the services is the necessary act that Zenco have to achieve.
3.2.2.2. Competitors
Having a business is sure to have competitors, especially in the garment market which is
trending to be saturated. As a company engaged in both fashion and production, Zenco needs
to face a lot of competitors in order to maintain its track record and develop its market.
The first competitor is the domestic textile and garment enterprises. It is the past that
Vietnamese consumers bought cheap clothes, cheap Chinese goods. People increasingly
prefer to use textile products of domestic enterprises because of following reasons: the model
is increasingly beautiful, the price is more suitable, good material, less toxic worries.
Prominent among them are the famous Gấu Uniform with uniforms of various designs and
colors, ZUmi with excellent marketing team and good quality products are favored for variety
of types and prices.
The second competitor is the foreign fashion brands. The most popular brands in
Vietnam are F5, Cava, Anima. They are fashion brands from Malaysia, very popular for its
modern color, trendy design, fast pace of change, affordable price and now dominates the
fashion market. In Viet Nam. F5 has a huge fan base in Vietnam because of low price, simply
and fast-update. In order to deepen the market, Zenco needs to learn the advantages of these
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brands in product design, then have to quickly promote their brands and also take the price as
a competitive advantage.
3.2.2.3. Supplier
Suppliers are parties that provide inputs to the business. The main material of the textile
industry is fabric. The fabric is very diverse in design and type. There are also garment
accessories such as: needles, straps, buttons, laces, chemicals. If the supply of these inputs

fails, it will greatly affect the business process of the enterprise, especially in the context of
competition. As such, Zenco is now building a strong relationship with the fabric supplier as
well as garment accessories, and there are always alternative policies that avoid the risks at
the highest level.
3.2.2.4. Marketing intermediaries
Intermediaries have a great influence on the business of the company. Intermediaries
such as Techcombank, Agribank, Agribank, are available. The intermediaries and the
company are in a good term so the company has cooperated with two banks Techcombank
and Agribank from 2012. However, the company should also hire more research market
intermediaries to have a better understand about customer’s need. For the Hanoi market, the
company needs to try to contact more marketing agencies such as radio and television stations
in Hanoi to bring Zenco brand to consumers in a fastest and most memorable way.
3.3. Current situation of marketing mix solution to expand Hanoi market for 3D
uniform products of Zenco Co., Ltd.
3.3.1. Determine the target market of the company
3.3.1.1. Current market of the company
The main consumption market of the company is mainly in Hanoi and Hung Yen. In
Hanoi, Zenco's products are sold mainly in Hai Ba Trung district and some big surrounding
districts. Although the market is new and deployed quite late, but the consumption of products
in Hanoi accounts for 70% of the total product consumption of the company. Thanks to the
initial steps before launching the Hanoi branch of the company such as market research,
market evaluation, the company’s product has achieved encouraging results. Due to the
negative impact of the economy and the demand for uniformed clothes in Hanoi is gradually
becoming saturated, Zenco's product consumption rate is still much lower than that of its
competitors. At present, the company is trying very hard to create and perfect appropriate
policies to make difference to attract customers and increase market share.
3.3.1.2. Customer and customer set characteristics

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The main customer targets are the groups of close friends aged from primary to high
school, even university and the tourism company. They are the customers who are young and
energetic and they have a high demand for uniforms
3.3.2. Current situation of marketing mix solution to expand Hanoi market for
products of the company.
3.3.2.1. Product solutions
Through investigation and exploration, Zenco products are popular with consumers
because of good quality, nice design, trendy, reasonable price. But the products of the
company are too narrow-range. Positive signs are many customers want to buy more products
which are not available such as skirts, leg skirts, T-shirts, ... Therefore, one of the important
measures to help companies penetrate and expand the market is the diversification of product
types and models combined with enhanced services.
Table 3.2. Category list and product structure (product line) of the company
`1
1

3

Product Category
Summer clothes
Cartoon blazer: size S, M, L
Class-image blazer
Beach blazer

Proportion
65%

Three-layer winter clothes:

35%

 Cotton coat (size S, M, L)

Hat coat
Non-hat coat
 Non-cotton coat (size S, M)
Cross non-cotton coat
Straight non-cotton coat
 Feather coat (size S, M)
Neck-feathered coat
Neck-normal coat
Hat-feathered coat
Neck-normal coat
- Policy of product diversification in terms of types and designs: From the first designs,
Zenco products have been appreciated in style as well as colors and are loved by consumers.
According to the survey, 80% of customers rated the company's product model and product
image as beautiful, 12% rated normal and 8% felt dissatisfied. This sign affirms that the
company has a firm foothold in the market positively.
- Raising the value of the price increases and accompany services: The company's
branch in Hanoi has the role of displaying, introducing products and taking care of both
wholesale and retail. Buyers are the end consumer here will be consulted by enthusiasm sale
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staff about how to choose clothes that fit the shape, how to coordinate the clothes
beautifully, ... Customer can change or return the bought items within 5 days.
As for bulk buyers, as there is no professional delivery team and the majority of buyers
are located in the vicinity of the branch, the cost of shipping is generally low and medium.
The branch has policy to support 50% freight charges for this set of customers. On the method

of payment, Zenco's branch encourages customers to make direct payments. The company
also accepts deposits of 50% of the order value and pays the remaining amount immediately
after delivery to patrons. (dealing three times or more with branches)
3.3.2.2. Price solution
With a cost-based pricing approach, the company calculates the price of the product by
adding up the cost of purchasing the materials and the cost of manufacturing the product per
unit of output plus profit per unit of product that the company wishes. To simplify the
calculation of the price of a product by the number m ^ 2 create a product.
Price formula: P = CxS + cost of production
C: price of 1m2 fabric
S: the size of fabric to create a product
This is a simple, easy-to-calculate pricing method that ensures that the company is
profitable when it comes to selling.
Zenco always determines the price lower than the main competitors such as F5,
Zumi, ... to attract customers. The competitor’s product price is higher than Zenco’s one oneand-a-half times.
According to the survey, about 70% of the interviewed customers were satisfied with
the price offered by the company, 8% said that the price was low and 22% said that the price
was relatively high. The company also needs to research and adjust the product price to
satisfy more and more customers.
The company has also studied and implemented some preferential payment policies in
order to have a stable relationship with customers.
Table 3.3. Preferential mode in payment
Content
Customer made payment before required time
Customer made payment immediately
Customer made payment late than 14 days
Customers with purchase bill more than 20
million
Customers with purchase bill more than 30
million

Preferential mode
0,7% discount
0.5% discount
0.4% discount
5% discount
10% discount
(Source: Marketing Dept.)

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The company also regularly launch promotions discounts on holidays and Tet. The
discount rate depends on the quantity of goods, payment method and time of payment. For
wholesale buyers, the discount rate of the company ranges from 7% to 10% and retail
customers discount rates are usually 3% - 6%. During holidays, the company discounts for all
customers from 15% - 20%.
3.3.2.3. Distribution solution
Thai Binh Garment Export Joint Stock Company has chosen for its distribution channel
system including 3 distribution channels: direct sales distribution channel and distribution
channel through retailers and wholesalers.
Channel 0: Company  Consumer
Channel 1: Company  retailer  consumer
Channel 2: Company  wholesaler  retailer  consumer
Channel 0 distribution (direct channel): This is a direct sales distribution channel
through the product launch shop, the company's branch, no marketing intermediaries. The
main buyers of this channel are individual consumers, earning 40% from this channel.
Through the level 0 channel, the company advertises and introduces products and services,
which play an especially important role in exploiting demand and penetration information for
products and competitors. At present, the company has two stores, one branch in Hung Yen

and one in Hanoi
Channel 1 distribution: This distribution channel aims to overcome the limit of zerolevel distribution channel by the marketing intermediary. With this type of channel, the
company's products will be distributed through retail stores and then delivered to customers.
This type of distribution helps the company expand distribution channels, improves the ability
to consume goods. However, with this channel, the manager must pay attention to many of the
management activities of the company. Channel 1 channels bring in up to 25% revenue.
Currently, in Hanoi, the company signs a contract with five retailers.
Channel 2 distribution: This channel has two marketing intermediates - wholesalers and
retailers, aims to overcome the limitations of the two distribution channels and expand the
consumer market. With this channel, the company's products will be delivered to wholesalers,
and from wholesalers to retailers and final consumers. Revenue of this channel is 35%, this is
the main distribution channel of the company. At present, the company has 20 wholesalers
importing goods from factories in Hanoi and Hung Yen
In the Hanoi market, Zenco has only one store to introduce and sell products for
wholesalers as well as retailer. The ability to interact with customers is limited. With this
situation, the company needs more positive measures to gain market share in Hanoi market.
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3.3.2.4. Solution on promotion
Because of the limited number of Zenco customers, the promotion policies of the
company are limited; however, the company's strategies are reasonable and effective, it’s aim
is not only to keep up old customers but also attract more potential customers. The main
promotional tools that the company uses in its strategy are advertisement, sales promotion and
direct marketing. The goal that the company wants to achieve when implementing these
activities is to remind and attract customers, improve brand awareness, encourage customers
to buy more products, boost sales both in the current market and in the new market. The fact
that these activities have brought great effect for the company, is clearly demonstrated through
the invoice of customer orders of the company valued over 15 million.
Table 3.4. The budget allocation for the promotion tools of the company

(Unit: million dong)
Year

2013
2015
2017

Total
expenditure

200
350
600

Budget allocation
Advertisement

Direct marketing

Expendic
ture

Expendit
ure

20
50
90

Proportio

n
(%)
10%
14%
15%

80
110
190

Sale promotion

Proportion Expendi
(%)
ture

Proporti
on
(%)
40%
100
50%
31%
190
55%
32%
320
53%
(Source: Marketing Department)

- Advertising: This is a tool to contribute information to customers on the market,
meanwhile highlighting the advantages of the product. In 2013, before the start of the
production of Zenco-brand clothing, the budget for advertising is almost nonexistent. The
company only tries to attract foreign customers who need to outsource and only advertise on
their website www.Zenco.vn which scare content and difficult-to-look-up information. In
2015, with a big turning point, the time when company launched company-brand- name
products is also the time the company launch advertising campaign to make the Zanco brand
become more popular. The company only advertises through radio and television stations in
Hung Yen with the desire to firmly grasp the Hung Yen market, becoming the brand the local
people believe in. Advertising through the company website is still maintained and is the only
one internet advertisement; however, the website is much improved than before in terms of
content and specific information. The interface is also attractive and beautiful.
- Promotion:
+ Promotion policy: The company conducts discounts on holidays and tourist and
yearbook seasons to promote consumption. This is a direct method with high efficiency.
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+ Discount policy for intermediaries: the company has the policy of discount basing on
product, quantity, payment method, order value. There are also seasonal discounts (holidays,
New Year, ...), discounts for items which are difficult to consume.
- Direct marketing: With the characteristics of customers to buy large numbers, personal
sales promotion tool proved to be quite effective because it has the ability to reach and get
feedback from the customer. The sales and marketing department of the company has 5
people with junior college or higher degree who are young and enthusiastic about their work.
Direct marketing is very effective when applied to this group of customers, but with limited
budget and human resources, the company only invested 40% of promotion budget for this
activity. Today, the company uses some forms of direct marketing:
+ Directly through phone, mail, internet.
+ Establish and understand the customer database to understand and meet their needs.

+ Search for customers and increase orders for the company.
According to the survey, 64% of customers were satisfied with the quality of service
provided by the sales staff, 30% were relatively satisfied and 6% were not satisfied. Zenco
initially performed its direct marketing activities well.
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS FOR MARKETING MIX
TO EXPAND HANOI MARKET OPPORTUNITY FOR ZENCO’S PRODUCTS
4.1. Conclusions and findings from the study
4.1.1. The achievements
Over the past three years from 2015 to 2017, the company has accomplished the goals
set out in its development policy. Those are:
- The company has secured a profitable business. Its business is maintained and
increased, ensuring regular employment and income for more than 150 staffs and employees
throughout the company.
- The company has a clear investment plan in the design and manufacture of Zencobrand products. The company's products are widely known and successful initially
- Quality, design and cost of products meet the needs of the target customers - office
workers.
- The company has built and expanded relationships with many customers and
suppliers. The products are consumed effectively and exchange activities with partners are
executed smoothly.
- The distribution channel of the company has been improved rapidly. The company has
access to more targeted customers and well-manage the distribution channels. According to
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the results, with good performance in two big markets, Hung Yen and Hanoi, the company is
taking firm steps in building the brand.
- Promotion policies also bring positive business results and attract the attention of
consumers.
- The growth rate of revenue and profit of the company has gradually increased over the
years, achieving the set targets, is an encouragement for the management as well as the staff

of the company.
- In addition to implementing a reasonable compensation policy, company leaders also
create favorable conditions for their employees to work in a friendly environment. Employees
are regularly trained and upgraded to improve their qualities and abilities.
4.1.2. Existing limitations
- Fashion items always change very quickly. Each design has a short life cycle.
Nevertheless, the company will produce new garments from 2013, so it has not caught up
with the design of the product.
- The company's products are narrow. It is a drawback because the demand of consumer
is increasing rapidly.
- The company encounters difficulties in equipping more production machinery and
contacting suppliers of materials.
- Price policy is not flexible.
- Distribution channel of the company is short channel; the channel type is not rich. So,
the consequence is the poor market-cover ability. Moreover, preferential for the channel
members are not really attractive
4.1.3. Cause of the shortcomings
- Socio-economic development has led to increasing people's living standards, they are
more knowledgeable and also demand higher products.
- The area where the company is located is also a potential market that many businesses
want to invest in business, competitors also increase accordingly.
- The financial potential of the company is still limited so investment in marketing
activities as well as business expansion is difficult and requires careful consideration.
- As a processing enterprise, the company is passive in terms of raw materials (as
supplied by partners); most machines are suitable only for export production with size larger
than Vietnamese stature leads to the possibility of slow conversion.
- Market research, capturing and evaluating competitors are sketchy and not focused.
4.2. Targets and directions to expand the garment market of Zenco Co., Ltd
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4.2.1. The goal of expanding the market and expanding the market of garments of
Zenco Co., Ltd.
4.2.1.1. Target to expand the market
Although Zenco has just launched its garment manufacturing and trading business since
2012, the achievements are encouraging and show that the company is fully capable of
affirming its brand. I am in the domestic garment market. The company has clearly identified
market development targets are:
- In the next 10 years, the company will develop and affirm the company's position in
the market of Hanoi and the whole North. The target is to occupy 10% market share of
fashion in Hanoi and expand 2 to 4 branches in some neighboring provinces such as Hai
Duong, Hai Phong, Nam Dinh.
- To ensure stable annual revenue growth, the company strives to increase the profit
from garment business to 10% annually.
4.2.2.2. Direction to expand the market
Zenco Co., Ltd. should continue to implement the following strategies:
- Intensive market penetration: To increase sales volume in the Hanoi market, company
needs to attract customers who have not used the product, attract customers of competitors,
encourage customers to continue buying products.
- Expanding the consumption market: The company has expanded its business area to
some neighboring areas such as Hai Duong, Nam Dinh, Hai Phong, etc. through strategies to
attract new customers.
4.3. Proposals and recommendations on marketing mix solutions to expand the
Hanoi market for Zenco products
4.3.1. Proposal in market research activities
Market research is the first and most important activity for every company when
conducting business. This activity will help the company capture the new consumer needs and
their appraisals about the company and its competitors. The research must be conducted
regularly and continuously.
In order to develop the Hanoi market, the company needs to have a proper and effective

market research method,
The company should divide its customers into two groups:
- The bulk customer group (wholesalers, retailers, ...): a order value of 15 million or
more, the company needs to understand their desires and requirements for quality products,
their expect price, discount, promotion, payment and delivery conditions. For customers with
less than 15 million in bills, the company needs to find out why they buy in small quantities.
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The reason maybe because they do not trust the product, the product does not meet the
requirements or the other conditions.
Consumer groups: The company can divide the study into districts to compare the
differences between districts. Since then, the company can conduct research on the
characteristics of the population such as demand, occupation, income, habits, interests, ... to
know customer’s characteristics then find a suitable marketing strategy.
4.3.2. Proposal marketing mix solution to expand Hanoi market for products of
Zenco Ltd
4.3.2.1. Perfecting products to expand the Hanoi market for Zenco products
With fashion products, the biggest requirement is the style, the beautiful design, catch
up the trend and show the style of the wearer. The target customers for the company's
products are office workers, they communicate widely and therefore have high demands on
costumes. Want to attract them to buy more products of the company, there is only solution is
to improve the design to be beautiful and trendy. One product must have many designs in
different styles.
In the future, the company should:
- Expanding the product portfolio, adding new products (such as uniforms that keep
pace with today's trend of youth ...) for ladies and gentlemen. The products are also diverse in
color.
- Positively design the product in sets to help customers easily shape their style and
support them in the way they combine and coordinate.

Besides, the importance of product quality cannot be neglected because customers
always want to buy the perfect products, giving them confidence when wearing them. To meet
this requirement, the company should:
- Have regular contact with suppliers to ensure their products are always up to standard.
- Looking for new suppliers with reputable brands in the market.
4.3.2.2. Price to expand the Hanoi market for products of Zenco Co., Ltd.
Zenco's pricing is lower than its competitors. With good design, good quality and
competitive price, the company can attract more and more customers.
In addition, the company can apply price adjustment measures to entice more new
customers, old customers as well.
- For familiar customers who have long time cooperation, good relationship with the
company, the company can extend the payment time.
- Also, with the customer is the wholesale, the company now has discount policy at the
value of each order, in addition, the company can refer to the policy of quarterly discount
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applied for wholesaler who meet the requirements. For example: 25% discount on the total
value of orders if the purchase is over 100 million VND / quarter, 28% discount on the total
value of orders if 500 million VND / year. This form of discounting can lead to a stable and
long-lasting relationship with the company.
- With customers are rarely or recently cooperated, it is possible to apply discount
policy in early payment to encourage them to pay early, avoid the backlog of capital,
minimize the financial risks to the company. They also encouraged them to continue working
with the company.
- For consuming customers, the company policy should apply the most is attached gifts
and discounts directly on the product. The application of this price adjustment must bring
attention to the customer through the promotion of the company.
4.3.2.3. Complete distribution to expand Hanoi market for products of Zenco Co., Ltd.
Recruiting channel members: The company is a brand new in the market so the more

channel it has, the better it be. But the selection of channel members cannot be ignored.
Distribution channel of the company is including indirect channels, so to select the best
channel members, the company must ensure strict implementation of the rules in terms of
scale, capacity, ability, selling, management ability, ... of the channel members to impact the
brand positioning in the minds of customers.
Encouraging channel members: Based on the long-term relationship and engagement
between the company and the distribution channels, the company can make appropriate
requests and agreements with channel members about the benefits that they can be achieved if
they fulfill the requirements. For example: the company negotiates attractive discount rates if
channel members display the company's products in an appropriate and easy to spot location
and the product price does not differ much from the price the company sells.
Managing channel members: The distribution system of the company has few
intermediaries, so the management of channel members is quite easy. During current time,
managers must take advantage of the time to spend time on managing the channels, look
closely at the activities of the channel members, help and support them when necessary,
ensure they sell the product price is not too much difference with the price set company.
Companies need to ensure the best possible benefits for channel members so that they can
make an effort in selling and helping the company build the brand.
Channel member rating: Companies must regularly evaluate their channel members to
make rewards, fines, maintain or use new marketing intermediaries to effectively distribute
their business.
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In addition, the company may have other policies to improve its distribution channels
such as:
- Addition of means of transport, support channel members in the transportation of
goods.
- Always ensure the inventory is full and continuous, especially during the holidays (the
time of consuming more goods), helping business activities without interruption.

- Search for new channel members in potential locations of the company. At present, the
company does not have relations with the supermarkets in the city, this is a complete
disadvantage that needs to be overcome in time.
- Find out the needs and obstacles of channel members and provide appropriate help.
4.3.2.4. Complete the promotion to expand the Hanoi market for the products of Zenco
Co., Ltd.
Determine the promotion target and promotion object
- The company must plan to study attitudes and needs of target customers to have
suitable promotion plan for each object.
- When setting promotion goals, it must be from the business objectives of the company.
Objectives must ensure that the criteria: available, feasible, challenging, measurable and timebound. According to the actual business situation, the company can pursue promotion
objectives such as increasing average sales to 10% per year, expanding sales locations
covering Hanoi, each year or open 5 more intermediaries.
Define promotion budget: The method of determining the company's budget which is
currently applied is ability-depend method. This method is quite suitable for a new company
producing and trading domestic garment and has a tight budget. However, in order to achieve
the most effective promotion policy, the company should use the percentage on sale method to
ensure that the company does not invest in over-promotion which is not effective and lead to
loss in business.
In order for take advantage of promotion tools, coordination between the tools is very
important. The company should continue to use direct marketing tools and sales promotion as
a key tool for its promotion.
- Direct marketing: The company should select the most appropriate direct marketing
through the means: catalog, telephone, mail, fax, ...
+ Send a offer letter to all customers who have purchased the company's products and
some new customers. After sending a letter of offer, the company should make a phone call to
confirm that the customer has received the offer letter and add information.
24

+ Particularly with potential customers who have never bought the company's products,
company should pay special attention because they have no confidence in the product.
Companies should send sale staff to persuade them to directly try the product and encourage
them to purchase the product.
+ For customers who have purchased the company, in holidays, the company should
send a wishing cards in order to build a good relationship and strengthen the brand image
Zenco in their minds,
- Promotion: In the near future, the company should learn and apply more different
forms of promotion to attract and stimulate demand of customers such as accompanying gifts,
reward for high-revenue channels.
- Advertising: At present, the company only advertises via internet in Hanoi location.
+ With the rapid growth of the Internet, the company needs to capture good
opportunities, do advertising via the internet which is not only save costs but also be able to
achieve high interactivity with customers. The company needs to upgrade, change its website,
provide more useful information and strong search engine.
+ Through the website, the company can post logo and logo of the big partners, help
them have more confidence in the product as well as the company.
+ The company should also rent banner ads on the website with high traffic to increase
the ability to reach and attract potential customers.
Build online sales channel via facebook. This is the social networking site that beloved
by the youth, especially students - potential customers in the future of business.
CHAPTER 5: THE ACTUAL PRACTICE SITUATION AT ZENCO
Admitted to the company as a "Professional trainees expand the market” for 2 months
at Zenco Co., Ltd. The first job assigned to take a job at a company is to follow and learn
from the experts of marketing, who have extensive experience in marketing and market
expansion. During the first days of work, they taught me how to analyze data, market survey
methods to find potential first-class agents, potential institutional clients, and suitable
locations. To focus on developing the market there, in addition I was instructed and trained
online marketing skills to keep up with current trends, combining both methods of marketing
that help me have skills and knowledge to better fulfill the tasks assigned to the current

company and other companies later with the same position.
5.1. Admin
5.1.1. Essential skills of a website administrator
25