The Marketing Strategy of a multinational join stock company.doc

The Marketing Strategy of a multinational join stock company

INTRODUCTION
Nowadays, marketing is obviously a more and more vital in the successes of every
enterprise. However, not many of the companies in Vietnam have paid adequate attention
to marketing activities, especially when both domestic and global competition is getting
fiercer and fiercer.
Being one of the companies specializing in selling air conditioners, a multinational join
stock company has achieved certain success in this field. Its sales of air conditioners have
increased over the years since its establishment. However, the company sales growth of
air conditioners has been modest in comparison with other competitors’. The reason for
this partly lies in its marketing. After taking a close look at a multinational join stock
company’s performance, I decide to choose “Marketing strategies of a multinational
join stock company” as the topic for my field study report with a view to examining a
multinational join stock company’s marketing strategy and making some
recommendations to improve it.
A multinational join stock company has a lot of business activities, but because of limited
time, this report focuses only on the company’s marketing activities for one line of its
business, that is air conditioners, on the market in Vietnam.
Apart from the introduction and conclusion, the report is divided into 3 chapters as
follows:
Chapter 1: Theoretical Framework
Chapter 2: The marketing Strategy of a multinational join stock company
Chapter 3: Some Recommendations to Improve a multinational join stock
company’s Marketing Strategy.

Chapter 1:
Theoretical Framework
1.1.1. The concept of marketing
1.1.2. The definition of marketing
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The Marketing Strategy of a multinational join stock company
Today’s central problem facing business is not a shortage of goods but a shortage of
customers. Most of the world’s industries can product far more goods than the world’s
consumers can buy. Overcapacity results from individual competitors projecting a greater
market share growth than is possible. If each company projects a 10 percent growth in its
sales and the total market is growing by only 3 percent, the result is excess capacity. This
in turn leads to hyper competition. Competitors, desperate to attract customers, lower
their prices and add give away. These strategies ultimately mean lower margins, lower
profits, some failing companies, and more mergers and acquisitions. Marketing is the
answer to how to compete on bases other than price. Because of over capacity, marketing
has become more important than over.
If forced to define marketing, most people, including some business managers, say that
marketing means “selling” or “advertising”. It’s true that these are parts of marketing. But
marketing is much more than selling and advertising. Today, marketing must be
understood not in the old sense of marketing a sale-“telling and selling”-but in the new
sense of satisfying customer needs. Selling occurs only after a product is produced. By
contrast, marketing starts long before a company has a product. “Marketing is the
homework that managers undertake to assess needs, measure their extent and intensity
and determine whether a profitable opportunity exists. Marketing continues throughout
the product’s life, trying to find new customers and keep current customers by improving
product appeal and performance, learning from product sales results and managing repeat
performance”1. So that does the term “marketing” means? Actually, there is no single and
universally agreed definition of marketing. The American Marketing Association defined
marketing “is the process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods, and services to create exchanges that satisfy individual
and organizational goals”2. The writer of the book “The Silk Road to International
Marketing” had another definition as follow: “Marketing is the process by which
decisions are made in a totally interrelated changing business environment on all the

activities that facilitate exchange in order that the targeted group of customers is satisfies
and the defined objectives accomplished ” 3.Though there are many definitions, a central
part of any definitions of marketing is the exchange process – the process of giving
something of value in return for something of value. Or in other words, it’s the process of
transferring between two or more parties of tangible or intangible items of value.
Cash, debt, time, votes, behavior, etc
Marketer
Marketer
Goods,
Goods,Services,
Services,
ideas,
ideas,
People
Peopleand
andPlaces
Places
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Customers
Wants and needs.


The Marketing Strategy of a multinational join stock company

Health, safety, comfort, transportation, beauty, productivity, etc.
Figure 1.1: the exchange process.
For marketing to occur, at least four factors are required: (1) two or more parties with
unmet needs, (2) a desire and ability to satisfy them, (3) communication between the
parties, and (4) something to exchange. Here’s what Berkowitz stated in his book

“Marketing”. As marketing is a kind of exchange, certain conditions must exist before the
exchange can occur.

1.1.3. The goals of marketing.
“Today’s successful companies at all levels have one thing in common; their success is
founded upon a strong customer focus and heavy commitment to marketing”. They
motivate everyone in the organization to deliver high quality and superior value for their
customers, leading to high levels of customer satisfaction. These organizations know that
if they take care of their customers, market share and profits will follow. Creating
customer values and satisfaction is at the very heart of modern marketing thinking and
practice. The goal of marketing is to attract new customers by promising superior values,
and to keep current customers by delivering satisfaction. When a company succeeds in
creating more values for customers than its competitors can do, that company is said to
enjoy competitive advantage industry.
1.2.

Competitive Analysis

It is the increasingly emerging markets that have create favorable conditions for the rapid
development of world trade and investment, which is well – manifested in the
sophisticated growth of a number of global companies. To compete in one or more
foreign markets, companies not only need to broaden relentlessly their sources of
competitive position. One particularly useful technique in analyzing a firm’s competitive
position relative to its competitors is SWOT(strengths, weaknesses, opportunities, and
threats) analysis aims to isolate the key issues that will be important to the future of the
firm and that will be addressed by subsequent marketing strategy. A SWOT analysis
divides the information into two main categories (internal factors and external factors)
and then further into positive aspects (strengths and opportunities) and negative aspects
(weaknesses and threats).
The internal factors could be viewed as strengths or weaknesses, depending upon their

impact on the firm’s positions; i.e., they may represent strength for one firm but

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The Marketing Strategy of a multinational join stock company
awearness irrelative terms, for another. They include all of the marketing mix (product,
price, promotion and place strategy) as well as personnel and finance.
The external factors, which again may pose a threat to one firm but create opportunities to
another, include technological changes legilation, social-cultural differences, and change
in the market place or competitive position.

1.3.

Global Marketing Strategy

In terms of globalization, worldwide businesses use global marketing when they take the
same or similar approach or content for one or more elements of the marketing mix, that
is, the same or similar brand names, advertising. And so on in different countries.
Although most of the multinational companies using global marketing mix-product,
pricing, promotion and place – are standardized. Business can make some elements of
marketing more global and others less so. Accordingly, possible adaptations that firms
might apply to their product, promotion, price, and place when they enter through the
foreign markets will be provided in this part.

1.3.1. Product

Promotion

There are five international product and promotion strategies for a company to extend its

market base into other geographic markets (See table 1.1).
Straight extension means marketing the product in the foreign without any adaptation.
Top manager asks its marketing people to “find customers for the product as it is”. As a
result, it is seen as easiest product marketing strategy and may be the most profitable one
as well. However, the company should first determine whether foreign consumers use that
product or not. Straight extension has been successful with cameras consumer electronics,
and many machine tools. This strategy is tempting because it involves no additional
product development cost, manufacturing changes, or promotional modification. But it
can be costly in the long run if products fail to satisfy foreign consumers.
Product
Do not change Adapt product
Develop
product
product
change Straight extension Product adaptation

Do not
promotion
Adapt promotion

Communication
adaptation

Dual adaptation

new

Product
invention

Table 1.1: Five international product and promotion strategies.
Product adaptation involves changing the product to meet local conditions or preferences.
There are several levels of adaptation. A company can produce a regional version, a
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The Marketing Strategy of a multinational join stock company
country version, a city version or even promotion retailer versions of its products.
Although, products are frequently adapted to local tastes, in some instances they must be
adapted to local superstitions or beliefs, too.
Product invention consists of creasing something new the foreign market. It can be
divided into two forms. The first is backward invention, which means reintroducing
earlier products forms that happen to be well adapted to the needs of a given country. And
forward invention is to create a new product to meet a need in another country.

1.3.2. Promotion
Companies can either adapt the same promotion strategy they used in home market or
change it to suit for each local market. Although some global companies use a
standardized promotion campaign changes might be needed to comply with local
regulations and references. There are four different levels of adapting promotion strategy.
Firstly, companies can use one message everywhere, varying only the language, name,
and colors. That is because colors might be changed to avoid taboos in some countries.
Also, names and slogan may have to be modified in some countries. Secondly, companies
may use the same them globally but adapt the copy to each local market. Thirdly,
companies can develop a global pool of advertising from which each country selects the
most appropriate one. Finally, some companies allow managers to create a specific
advertising – within guidelines, of course.
Other companies follow a strategy of communication adapting their advertising messages
without any product changing. Although it retains the scale economics on the
manufacturing side the firm sacrifices potential saving on the communication way .

another strategy is dual adaptation. It is changing both the product and the
communication to face local differences.

1.3.3. Price
Global companies face several problems in setting their international prices. Those
problems must deal with price escalation, transfer prices, dumping charges, and black
markets.
Price escalation problem occurs when companies sell their goods abroad. The foreign
prices probably will be higher than their domestic ones because it must add the cost of
transportation, tariffs, importer margin, wholesaler margin, and retailer margin.
Depending on these added costs, the product may have to sold for two or five times as
much as another country to generate the same profit. Since cost escalation varies from
country, companies have three price setting approaches in different countries.
Setting a uniform price everywhere: charging the same price everywhere in the world. By
this method, companies would earn quite different price in different countries because of

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The Marketing Strategy of a multinational join stock company
varying escalation costs. Also, this strategy would result in too high price in poor
countries and not high enough in rich countries.
Setting a market-based price in each country: charging what each country could effort.
But this strategy ignores differences in the actual costs from country to country. In
addition, it could lead to a situation in which intermediaries in low-price countries reship
to high-price countries. Setting a cost-based price in each country: using a standard
marketing of its costs everywhere. But this strategy might price out of the market in
countries where it costs are high.
Another problem arises when a company sets a transfer price(i.e. the price that it charges
to another unit in the company) for goods that it ships to its foreign subsidies. If company

charges too high a price to a subsidiary, it may and up paying higher tariff duties, even
while paying lower income taxes in that country. If company charges its subsidiary too
little, it can be charged with dumping. Dumping occurs when a company charges either
less than it costs or less than it charges in its home market, in order to enter or win a
market. Various governments are watching for abuses and often force companies to
charges the arm’s-length price – that is, the price charged by other competitors for the
same or a similar product.
Global companies also face the black-market problem. A black market means the same
product is sold at different price geographically. Dealers in the lower-price country find
ways to sell some of their products in higher-price countries, thus earning more. Many
company finds some distributors buying more than they can sell in their own country and
reshipping goods to another country to take advantage if price differences. Multinationals
try to prevent black market by policing the distributors, by raising their prices to lowercost distributors, or by altering the product characteristics or service warranties for
different countries.
Moreover, one challenge o global pricing in recent years is that countries with
overcapacity, cheap currencies, and the need to export aggressively have pushed prices
down and devalued their currencies. For multinational firms this poses great difficulties.
Sluggish demand and reluctance to pay higher price make selling in these emerging
markets harder. Instead of lowering prices, and taking a loss, some multinationals have
found more creative and creative means to deal with this problem.

1.3.4. Place (Distribution channels)
Global companies must take a whole-channel view of the problem of distributing products
to final consumers. Figure 1.2 show the three major links between the seller and the
ultimate user. In the first link, seller’s international marketing head quarters the export
department or international division makes decisions on channels and other marketingmix element. The second link, channels between nations, moves the products to the
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The Marketing Strategy of a multinational join stock company

borders of the foreign nations. The decisions made in this link include the types on
intermediaries (agents, trading companies) that will be used, the type of transportation
(air, sea) and the financing and risk arrangements. The third link, channels within foreign
nations, moves the products from their foreign entry point to final consumers.
Channels of distribution within countries vary greatly from nation to nation first, there are
large differences in the numbers and types of intermediaries serving each foreign market.
Long channels of distribution means that the consumer’s price ends up double or triple
the importer’s price. Another difference lies in the size and character of retail units
abroad. Breaking bulk remains an important function of intermediaries and helps
perpetuate the long channels of distribution, which is a major abstaining to the expansion
of large-scale retailing in developing countries.

1.4.

The marketing mix strategies

Philip Kotler, in his book “Principles of Marketing”; defines marketing mix as “the set of
controllable tactical marketing tools – product, price, place and promotion – that the
firm blends to produce the response it wants in the target market”. These ingredients must
be manipulated in a manner which ensures targeted customers are satisfied, marketing
strategies are implemented and desired brand positioning is achieved.
Seller

Seller’s international
Marketing
headquarters

Channels between
nations

Channel within foreign
nations

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The Marketing Strategy of a multinational join stock company

Ultimate buyers

Figure 1.2: whole-channel concept for international marketing.

Chapter 2
The marketing strategy of a multinational join stock company
2.1.

An introduction to a multinational join stock company.
2.1.1 Company development
A multinational join stock company was founded on 12 th August 2002. A multinational
join stock company’s headquarters was located at 236 Cau Giay Street, Hanoi. It has 2
branches in Hanoi, Hai Phong and a network of distributors around the country. Since its
establishment, a multinational join stock company has operated in various fields: air
conditioners, electronics, medical equipment, technical machinery and equipment, etc.
After two years of operation, a multinational join stock company expanded into other
areas such as information services, supplying and assem blind lifts and other equipment.
Early 2007, a multinational join stock company opened a new branch in Hai Phong for
selling construction materials. It also opened a new sales representative office for selling
Viglacera’s products.

2.1.2. Company’s products

A multinational join stock company specializes in selling the following:
Air conditioners of famous companies such as Toshiba(Japanese), Mitsubishi(Japanese),
Trane(American) and Sanyo(Japanese).
Medical and technical equipment and machinery, mainly imported from the USA, Italy,
Germany and Japan.
Lifts manufactured by Nippon (Japanese), Thyssen (German), Volbin (Swiss) and Don
Yang (Korean).
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The Marketing Strategy of a multinational join stock company
Construction materials and equipment of its own and Viglacera’s, and other electronic
products.
Besides, a multinational join stock company also provide other services such as
maintenance for medical and technical equipment, computer installing and programming.

2.1.3. Company’s Organization

Board of Directors

General Director

Deputy General
Director

Quality
Acceptance
Department

2.1.4.

Technical
Department

Deputy General
Director

Financial &
Accounting
Department

Trading
Department

Planning
Department

Board of Directors

A multinational join stock company’s Board of Directors includes a Director General and
2 Deputy Directors General.
Director General: Leading the company’s board of management is the Director General
who is responsible for managing the use of capital, human and other resources.

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The Marketing Strategy of a multinational join stock company
Two Deputy Directors General: These people provide assistance to the Director General.
They would sometimes act on behalf of the Director General in his absence. One of them

is responsible for the trading, planning, financial and accounting matters and the other is
in charge of technical and research development aspects in the company.
2.1.5. The departments

There are five departments, each of which is responsible for a certain part of the
company’s activities.
 Trading department: this department helps the Board of Directors with trading
activities. These include organizing both domestic and international business. The
trading department is also responsible for:
_ Doing marketing researches on products.
_ Promoting the company’s products through advertisements.
_ Holding negotiations and getting contracts for the company.
_ Organizing distribution channel for the company’s products.
_ Planning department: this department is in charge of marketing plans on importing,
material providing and preceding the contracts. Organizing the sales of products is
another main task of the department.
 Financial and Accounting department: this department deals with all financial and
accounting matters. Another main function is to manage the use of capital to the
right purpose, right policies and regulations, and to assist business activities.
 Technical department: this department is in charge of technical and technological
matters. The staff of this department also works closely with the factories to do
researching and applying the modern equipment and technical advance to them
anufacturing and processing. This department for the purpose of the company’s
business development sales all the adjustments or improvement to the technology.
 Quality assurance department: this department takes control over the quality of the
products. This is for the purpose of assuring that all the products will meet
customers’ requirements.
Apart from the five departments, a multinational join stock company as 2 branches
around the country.
The organizational chart has been effectively applied for a multinational join stock

company since its establishment and has resulted in good performance and operation.
There have been good assessments on the company structure: it shows to be in charge of
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The Marketing Strategy of a multinational join stock company
particular activities and they would be able to proceed their function reasonably, which
results in avoidance of overlapping and cumbersome. This helps the company to be able
to take the internal and external advantages; to apply modern and advantaged technology
to bring the best fruits to the whole company’s efforts.

2.1.6. Company trading results

Total sales
Net profit

2005
5.527
595

2006
7.035
650

2007
10.783
927

2008
21.579

1.250

Table 2.1: A multinational join stock company’s trading results in recent
Unit: million VND.
2.2.

The marketing strategy of a multinational join stock company

2.2.1. SWOT analysis of a multinational join stock company

As mentioned in the previous parts, a multinational join stock company has been trading
in a lot of products such as air conditioners, electronics, medical equipment, technical
machinery and equipment, etc., but with the limited time, this report focuses on the
marketing strategy that a multinational join stock company has used while dealing in air
conditioners only. In this light internal strengths and weaknesses, as well as external
opportunities and threats that a multinational join stock company faces while trading in
air conditioners will be identified for the understanding of a multinational join stock
company’s marketing strategy.

-

Good quality

-

Competitive price

-

Good business

partners

-

Customers’ loyalty

-

A multinational join stock company
corporate culture

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-

relation

with

Better market growth


The Marketing Strategy of a multinational join stock company

-

Limited capital

-

Growing black market

-

Small size and small market share

-

Force competition

-

Not enough technique staff

-

Lack of diversification in product
quality

-

Poor promotion activities.
Table 2.2: SWOT analysis of a multinational join stock company

2.2.2. Strengths
The first strength of a multinational join stock company is that its air conditioners are
good quality. A multinational join stock company’s air conditioners are imported from
famous companies in the world such as Toshiba (Japanese), Mitsubishi (Japanese), Trane
(American) and Sanyo (Japanese). These are famous brands in the world market and
Vietnamese consumers highly appreciate them. A multinational join stock company has

never had any complaint about the product quality.
The second strength is that a multinational join stock company has been offering very
competitive prices for its air conditioners. A multinational join stock company has been a
distributor for these firms since its early day (Toshiba, Mitsubishi, Trane and Sanyo), and
although there are a lots of other companies are acting as distributors for them, a
multinational join stock company has a certain advantage: a multinational join stock
company has always kept its prices as competitive as possible. Its prices are among the
lowest for air conditioners, usually between 7% and 10% lower than its competitors.
The third strength of a multinational join stock company is the good relation with its
business partners, a multinational join stock company has maintained it corporation with
the above mentioned business suppliers for many years and has always been highly
valued by them. This an advantage for a multinational join stock company. Every years,
its technical staff are offered technical training by the foreign experts from a
multinational join stock company’s suppliers. Many staff also have chance to go abroad
to get training. Moreover, when there is a technical problem at a multinational join stock
company, it immediately receives assistance from its partners.
The forth strength of a multinational join stock company is its customers’ loyalty. As
mentioned above, beside good quality, competitive prices, and good business relation
with its partners, a multinational join stock company’s customers has contributed a lot of
the company’s success. The after sales services of the multinational join stock company
has been developing and improving rapidly over the years. This helps the firm to keep in

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The Marketing Strategy of a multinational join stock company
touch with the old customers. And by words of mouth, these people have brought new
customers for the company.
In addition, a multinational join stock company frequently holds customer meetings in
which customers would have chances to express or a multinational join stock company

their thinking about the company products and services, this enables the company to get
market research information to built up its reputation and customers’ loyalty.
The last strength is the corporate culture of a multinational join stock company.
Employees of a multinational join stock company are infused with an open, value-based
corporate culture. The cornerstones of the company’s values are:
 Staff satisfaction
 Respect for the individual
 Achievement
 Continuous learning
A multinational join stock company’s management seeks to internalize these values
through debates and discussions among teams. Its annual strategy meetings, plays an
important role in this process. The meeting focuses on barn-storming about technological
and life-style trends and discussing strategic priorities of a multinational join stock
company in the market.

2.2.3. Weaknesses
Firstly, limited amount of capital is posing a difficulty for a multinational join stock
company. The company’s capital hasn’t been expanded much since its establishment. The
Managing Director of a multinational join stock company said: “we have an advantage in
comparison with our opinions in terms of customer’s loyalty and a good image and
reputation, but now we have a problem of capital that thinking is weakening our
competitiveness”.
The main source for its capital has been contributions of it shareholders and a
multinational join stock company has had a lot of difficulties in finding other sources of
capital.
As we all know there are four main sources of investment capital that domestic
companies may access:
Long-term credits provided by commercial banks on commercial basic:
 Government’s investment and Development Support Fund
 Soft loans and/or grants from foreign countries

 Non-banking capital, including company’s equity and funds mobilized from
the informal banking system including the company’s employees.
With regards to investment capital from banks, Vietnamese banks are shortage of
investment capital, because of the lack of long-term deposits, which in turn due to the
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The Marketing Strategy of a multinational join stock company
regulated interest rate and low reputation of the banking system. As a consequence, it is
normally hard to get long-term ones. This mismatch of maturity causes many problems to
Vietnamese companies including a multinational join stock company.
Secondly, a multinational join stock company size and market share have been small. The
shortage of capital is main cause of the company’s modest size and market share. Up to
now, a multinational join stock company has had only 2 branches dealing in conditioners
nationwide in Hanoi, Hai Phong. As a result, its market share is among the lowest in the
market for air conditioners in Vietnam. This is a major weakness for a multinational join
stock company and the company has to be determined to overcome if it is to be successful
in the future.
Thirdly, another weakness of a multinational join stock company is its lack of the
technical staff. Although the current technical staff of a multinational join stock company
are qualified for its technical word, but they are so few in terms of quantity. The
company’s customers has never complained about a multinational join stock company’s
product quality or the quality of the maintenance work that its staff have done, but has
complained about the late reply and maintenance service of the company. The reason for
this is the company’s not enough technical staff. This is also one factor resulting in the
low market share of a multinational join stock company
Fourthly, lack of diversification in product quality of also a weakness for a multinational
join stock company. A multinational join stock company has always been concentrating
in high quality air conditioners such as imports from Toshiba, Mitsubishi, Trane and
Sanyo companies. These products have high quality but are too luxurious for a large

proportion of Vietnamese customers. Besides these famous brands, a multinational join
stock company should deal in some lower quality ones, which are also less expensive
such as products from Samsung, LG, and Daewoo etc. By this way, a multinational join
stock company an attract low and middle-income consumers.
Lastly, a multinational join stock company has had rather poor marketing and promotion
practices. Marketing and promotion practice of Vietnamese enterprises are poorly and
insufficiently performed. Promotion is limited to market research. In addition, the
organization of trade fairs and collecting information with such important tasks as export
consultation, trademark information and the provision of market information have not
effectively been undertaken.
Additionally, just like many of a multinational join stock company’s competitors, it also
has its own website in order to develop their images and advertising their main products.
However, most of those websites are not attractive enough the information about their
businesses is not sufficient enough to appeal to customers.

2.2.4. Opportunities
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The Marketing Strategy of a multinational join stock company
The only opportunity for a multinational join stock company is that can have a better
market growth in the near future. There are two reasons for this. Firstly, the market in
Vietnam for air conditioners is growing rapidly because there are more customers for this
item. As Vietnam people’s income has increased in recent years, more people can affort
air conditioners. This is no longer a luxurious item for a lot of people living in the city.
Secondly, a multinational join stock company is now considering expanding, as it is
looking for more sources of capital. Some employees in a multinational join stock
company are thinking of investing in the company by buying its shares.

2.2.5. Threats

Despite the impressive performance so far, a multinational join stock company is facing a
host of challenges.
The first barrier is black market pressure. The flourish of black market is posting a threat
for air conditioner importers, in general, and for a multinational join stock company in
particular. Presently, China is the biggest supplier of black market air conditioners in
Vietnam.
The second barrier is that a multinational join stock company is facing an unprecedented
level of competition from both existing competitors and new entrants. Thanks to the
remarkable growth of Vietnam air conditioners recently, Vietnam is becoming a battle
field for air conditioner manufactures and importers. There are more and more air
conditioner manufactures in Vietnam. These are either joint-venture companies or 100%
foreign owned ones. The qualities of their products are improves and their prices are
much more competitive than the imported ones that a multinational join stock company is
selling. As most people in Vietnam are low and middle-income earners, the air
conditioners of these manufacturers are better suited to Vietnam consumers than a
multinational join stock company.
2.3.

A multinational join stock company - marketing mix
2.3.1. Product
Famous firms as products, which fundamentally provide its customers various benefits,
make air conditioners of a multinational join stock company. These are core benefit,
generic product, expert product and augment product. The core benefit of a multinational
join stock company is the usage of product-which the target customer finds.
The generic product is the basic characteristic about product, which was described by
color, trademark, and the package of product. Each of the products of a multinational join
stock company has a separate trademark and color.
Besides, a multinational join stock company has always tried to diversify its range of air
conditioners. Initially, a multinational join stock company only sold 2 famous brands that
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The Marketing Strategy of a multinational join stock company
are Toshiba (Japanese), Mitsubishi (Japanese). Then recently it has expanded and started
to sell 2 other brands: Trane (American) and Sanyo (Japanese). This is helped to increase
the number of customers of a multinational join stock company.
Moreover, the quality of a multinational join stock company’s air conditioners has been
maintained over the years. There has been no complaint from the consumers about their
products. The company’s two-year guarantee period is also satisfactory to consumers.

2.3.2. Price
The first strategy that a multinational join stock company adopts is low price strategy as
most of Vietnamese air conditioner use are price-sensitive buyers. The prices of a
multinational join stock company’s conditioners range from VND 5,000,000 to VND
30,000,000 depending on each model. This policy of pricing is much more attractive to
customers as a multinational join stock company prices normally are among the lowest
for air conditioners.
The second strategy that is applied by a multinational join stock company’s for air
conditioner is price competition. A multinational join stock company authorized dealers
indeed offer the retailers who sell a multinational join stock company’s two-way air
conditioners a huge commission compared to those of its competitors. As a result, the
price of a multinational join stock company’s air conditioners sold by these retailers may
be cheaper as some of them may want to satisfy their commission per two-way to get
profits from selling a big amount. It is the price competition between a multinational join
stock company retailers that benefits customers.
The last strategy that a multinational join stock company to use is in the fourth of this
year it launched a lever air conditioner at inexpressive price. This kind of product is for
low and middle-income people in Vietnam. These are the air conditioners with model
FUNIKI SC 09 and SC 12, which are offered at inexpressive price of between VND
5,000,000 and VND 6,500,000. The company belives that cheaper price of two-way air

conditioners and lower installation and maintenance cost of air conditioner are the two
key elements to increase the sales of a multinational join stock company’s air
conditioners in Vietnam.

2.3.3. Place
A good distributing policy helps business activities safer, increasing the connection in
business, decreasing competition and marketing the circulation of goods more quickly
and efficiently.
In the domestic market a multinational join stock company has good relations with its
partners so they help a multinational join stock company very much in the distribution.
They help a multinational join stock company in over other rivals even in the forecast
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The Marketing Strategy of a multinational join stock company
competition. Two-way air conditioners retailers are said to gain much benefit when
committing to sell the new FUNIKI set. The company not only supplies its two ways to
these retailers, but also supports them in terms of outlet decoration, staff training and
marketing activities. Besides, each retailer will get a juicy bonus if an air conditioner is
sold. A multinational join stock company offers an intensive support for any retail that is
located in business centers of the cities and provinces across nation. On the contrary, the
company would offer the shop owner much more benefit such as free shop-sign and not
correction and a greater commission if the selling volume is reached at a high level. This
always try their best to market as many air conditioners as ways is sold out much more
than competitors.

2.3.4. Promotion
Promotion is the aspect of marketing concerned with increasing sales. Marketing must be
considered on marketing production decision, and promotion must be considered in the
overall marketing process. Promotion attempts to persuade and influence the customer’s

attitude in various ways.
A multinational join stock company has used some ways to advertise its product such as
advertisements on television, internet, newspaper, magazine …. However, they. However, they
advertisements are not very effect.
A multinational join stock company uses two strategies promotion that is pulling strategy
and pushing strategy to each of target customer as illustrated in the following figures:

Factory

Wholesaler

Retailer

Customer

Figure 2.3: Pulling strategy
A multinational join stock company uses this strategy to make the customers have an idea
and believe in product and buy the products of a multinational join stock company.

Factory

Wholesaler

Retailer

Customer

Figure 2.4: Pushing strategy
Pushing strategy aims at company and branch office dividing the price for advertising
and discounted price. A multinational join stock company uses this strategy because

there are many branches in company.
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The Marketing Strategy of a multinational join stock company

Chapter 3:
Some Recommendations to Improve a multinational join stock
company’s Marketing Strategy

3.1. Some recommendations to the Government and relevant authorities
In doing business, in particular, and other enterprises in general, are facing not only
subjective problems but also objective ones, which need efforts and solutions from the
government. It is, therefore, recommended that our government should take these
following actions so to create better business environment for companies like a
multinational join stock company.

3.2. Recommendations to a multinational join stock company
Global marketing strategy is not about standardizing the marketing process on a global
basic. Although every element of the marketing process – product design, product and
brand name, packaging, pricing, advertising strategy and execution, promotion, and
distribution – may be a candidate for standardization, standardization is just one part of a
global marketing strategy. Consequently, striking the right balance between
standardization and localization greatly contribute to a multinational join stock
company’s success. A multinational join stock company has developed a combination of
standardization and localization of marketing programs to match Vietnamese market. But
to further promote the sales of air conditioners by a multinational join stock company the
following are recommended to the company.

3.2.1. Improving the company’s marketing mix

The company needs to build up an good marketing mix for the current marketing strategy,
which bases on the four elements:

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The Marketing Strategy of a multinational join stock company
Product: improving the quality and diversifying categories of products is the core of
product element in the marketing mix. As discussed above, the market for air conditioners
in Vietnam is becoming more sophiticated with a variety if different demands. The small
portion of the market usually set high requirements for the trend-catching and materialselecting criteria of the imported air conditioners. Others are low and middle-income
earners who require a lower quality. Temporarily, the company should consider satisfying
its product range as the most important element in its strategy.
Price: high price has always been the disadvantage in competition. Although a
multinational join stock company’s prices have been considered reasonable for some
brands over the few years, keeping this low level is a quite difficult task for the company.
In a addition, as a multinational join stock company is thinking of expanding its product
range with higher and also lower quality products, maintaining competitive prices is not
easy. This is really a jey to the company’s success in the future.
Place: a good distributing policy helps business activities safer, increasing the connection
in business, decreasing competition and making the circulation of goods more quickly
and efficiently. Due to the characteristics of a multinational join stock company’s
activities, there are three ways for the company to make further improvement to its
distribution performance. Firstly, improve a multinational join stock company’s
distribution users in the shortest period of time. The second alternative is to open more
branches. A multinational join stock company’s current branches are in big cities, so it
advisable for the company to set up new in small towns, where people’s incomes have
been improving and can afford air conditioners. The last alternative, which should be used
in the long term and considered to be the best, that is to establish a network of
representative offices throughout the country.

Promotion: this is one of the weaknesses of a multinational join stock company. For the
purpose of sakes growth, the company should invest more in promotion activities. This is
a method not only to increase sale but also to build the company’s image. The measures
to build the company’s image will be discussed in the next section.

3.2.2. Building the company’s image
It is said that advertising is a business art. A multinational join stock company’s weakness
is efficiency of promotion is not good. The reason is a multinational join stock company
has not applied tools of promoting policy. It might be an advertising on TV, on the radio
in rush hours.

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The Marketing Strategy of a multinational join stock company
The strength of advertising on TV help viewers can see both images and sounds, colors.
Furthermore, the expenses of advertising on TV is broadcasted many time per day.
Besides, almost the households belong to every class in society have TV and watch
favorite program on TV in their free time. The effect of this type of advertising is wide.
Today is a era of IT and modern means of communication. Internet has played an
important role in social activities and in the economy. The enterprise can introduce it to
other companies over the word. Signing the contract with Ministry of Thailand motivated
A multinational join stock company’s to export in order to increase foreign currency,
expands global market. In my opinion, a multinational join stock company needs to build
their website which has global function.
Website is a modern media and widely used on over the world particularly in developed
and developing countries. Customers can find comfortable and convenient to search
information if the company they are considering on internet. Partners can easily know
about the product, price, quality of product, etc. and they can buy through website of the
company. Website not only brings helpful information to the customers but also save such

expenses as transport (traffic, accidents), telephone, telex, etc.
The importance thing now is a multinational join stock company’s politic department
needs collect importance information related to the company, its products and product
quality and commercial culture of the company. As a result, a multinational join stock
company’s brand name and reputation will be spread and have a profound impact on the
customers.
In conclusion, advertising cost is a lot of. However, it can be considered as an investment
rather than an expense, more wisely spending money can help the company expand brand
name do good for the company’s activities.

Conclusion
The first part of the thesis concepts related to marketing and the theory that will be
later based on to research. The definition, the goals of marketing , the contents of
marketing as well as implementation and control are main parts of chapter one.
Gaining an insight into the theory of marketing gives us the background to keep the
thesis to be on the right track.
The research has gone over the practical situation by looking at the company’s
overview and the application of marketing strategies for a multinational join stock
company. In performing its marketing strategies, the company has achieved
Le Kim Hong Tu _ 5D