Luận văn hv chính sách và phát triển global marketing strategy of thien long company

ACADEMY OF POLICY AND DEVELOPMENT
INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE

SENIOR THESIS
Topic: “Global marketing strategy of Thien Long company”

Instructor:

Pham Hoang Cuong, MSc.

Student:

Le Tuyet Trinh

Student ID:

5073106073

Class:

KTĐNCLC7B

Hanoi, July 2021


ACADEMY OF POLICY AND DEVELOPMENT
INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE

SENIOR THESIS
Topic: “Global marketing strategy of Thien Long company”

Instructor:

Pham Hoang Cuong, MSc.

Student:

Le Tuyet Trinh

Student ID:

5073106073

Class:

KTĐNCLC7B

Hanoi, July 2021

i


DECLARATION

I pledge that this is my research project, with the enthusiastic guidance
from Pham Hoang Cuong, MSc. The figures in the tables serving the analysis
and evaluation are collected by author from various sources listed in the
references. In addition, the thesis also uses a number of comments, reviews as
well as data of other authors and organizations, which are also cited and
recorded in the references.
If any dishonesty is found, I am fully responsible to the council, as well

as the results of my graduation thesis.

Hanoi, July 02, 2021
Author

Le Tuyet Trinh

ii


CONTENTS

DECLARATION .............................................................................................. ii
LIST OF TABLES AND FIGURES ................................................................. v
Chapter 1. SCIENTIFIC BASIS OF MARKETING .................................. 4
1.1. Global Marketing ................................................................................... 4
1.2. Concept and components of marketing mix .......................................... 5
1.3. Marketing decisions ............................................................................... 7
Chapter 2. ANALYSIS OF THE STATUS OF MARKETING
ACTIVITIES IN THE COMPANY ............................................................ 12
2.1. Company introduction .......................................................................... 12
2.2.1. The process of formation and development of the Company ....... 12
2.2.2. Occupation .................................................................................... 16
2.2.3. Organization structure ................................................................... 16
2.2. Analysis of recent business activities................................................... 17
2.3. Overview of Vietnam stationery market .............................................. 19
2.4. Overview of the company's export situation and activities ................. 20
2.5. Analyze and evaluate the current state of the company's marketing
activities....................................................................................................... 23
2.5.1. Analyze the organization and build the marketing plan ............... 23

2.5.2. Analyze current marketing plan and implementation ................... 25
2.6. Competitor ............................................................................................ 48
Chapter 3. SOLUTIONS TO COMPLETE MARKETING ACTIVITIES
AT THIEN LONG COMPANY................................................................... 51
iii


3.1. Intended direction and direction of business activities ........................ 51
3.1.1. Mission .......................................................................................... 51
3.1.2. Visson ............................................................................................ 51
3.2. Swot analysis ........................................................................................ 51
3.2.1. Opportunities ................................................................................. 51
3.2.2. Threats ........................................................................................... 51
3.2.3. Strengths ........................................................................................ 52
3.2.4. Weaknesses ................................................................................... 52
3.3. Building solutions to improve marketing activities at the Company .. 52
3.3.1. Strategic orientation to complete marketing activities in the
commercial field of the company ............................................................ 52
3.3.2. Evaluate strengths and weaknesses of Thien Long company ....... 56
3.4. Solution for Marketing - Mix strategy of Thien Long Company ........ 58
3.4.1. Product strategy ............................................................................. 58
3.4.2. Pricing strategy .............................................................................. 61
3.4.3. Distribution strategy ...................................................................... 63
3.4.4. Promotion strategy ........................................................................ 67
CONCLUSION .............................................................................................. 71
REFERENCES .............................................................................................. 73

iv

LIST OF TABLES AND FIGURES
Table 2.1. Thien Long's ballpoint pen products’ size ..................................... 40
Figure 1.1. The process of segmenting, selecting and positioning the target
market .............................................................. Error! Bookmark not defined.
Figure 1.2. Marketing mix model ..................................................................... 6
Figure 1.3. Average cost plus profit pricing modelError!

Bookmark

not

defined.
Figure 1.4. Map of the objectives of a pricing strategyError! Bookmark not
defined.
Figure 1.5. Marketing communication model . Error! Bookmark not defined.
Figure 1.6. Advertising Program Decisions .... Error! Bookmark not defined.
Figure 1.7. Multi-stage, multi-media approachError! Bookmark not defined.
Figure 2.1. The organization structure ............................................................ 17
Figure 2.2. Price list of some products............................................................ 37

v


INTRODUCTION
1. Research motive
Customers only buy products or services that they think are most likely to bring
them the most added value. Therefore, the goal of the business is to create
added value from the will of customers and customers. In addition, those added
values must have the nature, content and scale that customers appreciate as
higher than the added values brought by products/services from competitors.

Thien Long Company as well as other businesses are struggling, researching
and trading new products to survive and develop. Facing the general trend of
the whole society, it is very necessary to apply marketing methods to increase
sales efficiency and increase market share of each product that the company
does business. Only when researching and finding new approaches to
customers can businesses increase profits and sales.
Be aware of the shortcomings in the sales strategy at the business that you work
for. The student have found some right directions through the lecture on
Marketing such as: Marketing strategies to overcome and build new directions.
This is the purpose of choosing a topic: Marketing strategy orientation of
Thien Long company
2. Research purposes and objectives
The research purpose of the thesis is from the theoretical foundations of
marketing, especially marketing for enterprises dealing in production materials
and from the actual operation of Thien Long company, the situation analysis
and solutions. specific methods to improve marketing activities at the company.
From there, analyze and predict the actual effects that will bring to businesses
if the above measures are applied.

1


3. Research object and area
The production and business activities of Thien Long company have many
fields, in the thesis will generalize, but the main focus is on some products with
good development direction, in the investment orientation of the business.
4. Research methods
- Methods of collecting data from reference materials: Based on primary
and secondary information collected to build theoretical basis and prove the
hypothesis.

- Methods of analysis and summarizing experience: Combining
reasoning with reality, bringing reasoning for practical analysis combined with
a review of past activities to draw conclusions for the hypothesis.
- Methods of observation: Collect data, specific events that characterize
the course of events, phenomena to discover research and bring to study
specific documents, intuitive feelings but has great scientific significance.
5. Contents and structure of the thesis
In addition to the introduction, conclusion and the list of references, the
research topic consists of three chapters:
Chapter 1. SCIENTIFIC OF MARKETING
Chapter 2. ANALYSIS OF THE STATUS OF MARKETING
ACTIVITIES IN COMPANY
Chapter

3.

SOLUTIONS

TO

COMPLETE

MARKETING

ACTIVITIES IN THIEN LONG COMPANY

2


3

Chapter 1. SCIENTIFIC BASIS OF MARKETING
1.1. Global Marketing
Conception
Global marketing is a type of international marketing.
Global marketing is the application of the same marketing mix in all countries.
Example: A business offers the same product, using identical images and
promotion methods in different markets.
Global marketing is the application of the same marketing strategy by
international companies in all markets on a global scale.
Characteristics
The characteristic of global marketing is to standardize marketing strategies
and apply them uniformly to all markets on the principle of ignoring
differences.
Global marketing focuses resources and goals to take advantage of global needs
and opportunities. A global market is a geographical expansion of the domestic
market.
An important job in global marketing is understanding to realize that marketing
plans and programs can span the world but also have to adapt in these places.
Many researchers argue that global marketing companies must be ready to
adapt to a globally integrated environment and that it is not necessary that
products, promotions, prices and distribution be standardized.
The majority of the market of consumer products today does not participate in
the global market, due to differences in preferences, tastes, consumption habits,
etc. However, for industrial product lines and raw materials materials serve the
general needs of the world.

4

For example, Black & Decker, a world-renowned manufacturer of industrial
machines, hand tools and mining industrial machines based in San Francisco,
USA, has made globalization possible by standardizing all components such as
engines and propellers while maintaining a wide range of product lines and
creating a new image for its products.
In this case, the company has not standardized its products, but it has
standardized key components and product designs for the manufacturing
industry and provides additional services to achieve efficiency. highest fruit.
1.2. Concept and components of marketing mix
Marketing mix or marketing mix is a key concept in the modern
marketing system. It is the set of marketing tools a company uses to achieve
targets in a chosen market.
Marketing tools are the 4Ps including:
- Product
- Price
- Distribution
- Sales promotion
More specifically about the 4Ps as follows:
Product: This is the most basic part of the marketing mix. It is the product
that the company will bring to the market, including the elements that make up
the product such as design shape, product packaging, product quality... and
accompanying services.
Price: Price is one of the basic characteristics of goods that consumers
perceive most directly. It exhibits three characteristics: First- Economic: How
much money should be paid to obtain that good, Second - Psychosocial: Shows
the value obtained when consuming that good and third – The price represents
the assumed quality of that goods.
5

- Distribution (Place): It is a supporting activity to promote to target
customers can access the company's products. It can be done directly by
enterprises or through some intermediaries to provide the market with greater
efficiency.
- Promotion: Includes many activities to promote the product to the target
market, for example: Advertising, public relations, purchase promotion.
The components of each P consisting of multiple contents can be
represented as shown in the following illustration:

Figure 1.1. Marketing mix model

The application of marketing mix is completely dependent on the market,
it fluctuates and changes to suit the context of implementing promotion
activities. But there are some common factors that affect and affect the
marketing mix as follows:
- The first is the market: the buying ability of the market in which the
product penetrates will determine the ability of the enterprise to sell products
and services. From there, businesses can calculate the purchasing power of the
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market and build a plan accordingly. For example, the same product is selling
well in Japan, but in Vietnam, the purchasing power is significantly reduced
due to the lack of correlation in geography and climate position.
- The second is the product element: Different products in terms of
functions need different sales and advertising methods, which leads to a very
different distribution system. For example, selling industrial products will be
different from selling household products, so the target audience as well as the
way to reach customers also requires different skills.

- The third is the reputation and brand of the enterprise in the market:
This factor is easy to understand because the business has a good brand,
familiar with customers, will have a great advantage in developing and
consuming products. products compared to new firms.
- When to apply Marketing solutions in any stage in the product life
cycle. For example: Newly-produced products must have a mode and intensity
of advertising to introduce more familiar products that have been accepted by
the market (these are products in the maturation cycle).
1.3. Marketing decisions
As analyzed in section 1.4, the marketing mix includes four tools called
4Ps for short. This section will focus on analyzing the decisions of these tools
in detail.
+ Product decisions.
+ Pricing decisions.
+ Distribution decisions.
+ Sales promotion decisions.
Each decision will have a different importance and way of implementing
its marketing action.
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1.3.1. Product decisions
Concept of product: A product is something that a business provides to
customers to satisfy a need or want. Product is a means to satisfy a need. (1,
Tr119).
Products include: tangible products and services (Intangible products),
products can also be ideas, places (places), people (Buy and sell labor, export
services). labor export and labor supply).
Products include three levels of division:
- Full products (including installation, delivery, payment, consulting,

warranty and repair...);
- Specific product (packaging, brand, quality, style, attributes...);
- Core product (meets basic benefits).
Inside:
Core product is the part that represents a specific benefit or service of
that product.
A specific product is the visible appearance of the product including its
style, quality, characteristics, labeling and packaging.
Full product: includes additional services and benefits so that consumers
can distinguish it from products of mutual benefit in the market. For example,
after-sale service, warranty, delivery form...
To build a product strategy, marketing managers must first classify
different types of products according to the following classification:
- Classification by tangible properties: products are tangible and services
are intangible.
- Classification by durability: durable goods or perishable goods that
need constant replacement.
8


- Classification by object and purpose of use:
+ Consumer products: households buy for use, not for business purposes.
+ Industrial products: raw materials, machine components, industrial
machinery and services...
- Classification according to the degree of competition: products must
compete or products are monopolistic.
- Sort by buying frequency: buy often, buy sometimes or buy very little.
- Classification by level of necessity: the product is really essential to the
business or consumer or the product is not immediately available.
- Classification by special level: ordinary products and specially

manufactured products.
A product category is a group of closely related products that, because
they perform a similar function, are sold to the same group of consumers
through the same distribution channels, or they may form a general price
bracket for that product. Your product manager can select a few of his or her
items to highlight to attract customers and build credibility.
1.3.2. Pricing decisions
Price is a basic feature of goods that consumers perceive most directly.
It exhibits the following three characteristics:
Economic characteristics: How much money must be paid to obtain the
good.
- Psychosocial characteristics: It shows the values obtained when
consuming goods.
Quality characteristics: The price represents the assumed quality of the
goods.

9


Other names for prices: Tuition, interest, rent, freight, freight rates, fees,
wages, commissions, etc.
Historically, prices were offered at a higher price than sellers were
hoping to receive and buyers often bid less than they expected to pay, after
haggling they would arrive at an acceptable price at the time and transaction
takes place.
In the marketing mix, price is the only factor that generates income,
while other factors contribute only to cost. Pricing is flexible, it can change
quickly, and is built by many people on the company's board of interest.
However, there are some common mistakes made when pricing as follows: The
pricing is too cost-oriented, when there are market fluctuations, the price does

not update so that it can be adjusted more beneficially. Prices are set
independently of the marketing strategy, and prices are not changed properly
for different products, at different times, or for different market segments.
1.3.3. Distribution channel decisions
Distribution is all the work to bring a product / service from the place of
production to the hands of consumers in need, ensuring quality, time, quantity,
type, design, color. ... that consumers want. (1, p119).
Distribution increases the value of goods/services because:
- Goods in distribution are subject to material and physical changes:
Breaking up for packaging for consumption, division of consignments into sets
or groups of goods... Goods are packed into new materials, processed for
preservation..
- Goods in distribution subject to changes in space and time: Bringing
goods to the place where customers need them, bringing goods to customers at
the right time: Just On Time and Just In Time.

10


- Goods in distribution are also subject to psychological and commercial
changes.

1.3.4. Marketing communication decisions (Sales promotion)
Currently, sales promotion work is usually done through a marketing
communication mix, also known as the promotion mix, consisting of five main
tools:
- Advertisement.
- Promotion.
- Public Relations.
- Direct marketing.

- Direct sales.
These five tools need to be well coordinated for effective
communication. Businesses use marketing communication to be able to sell
more goods and faster than before, sales promotion is the efforts of businesses
to persuade, remind, inform... to customers to buy products and Businesses also
thanks to it to learn more about customers. Sales promotion activities can be:
booths, customer service, fairs, contests, newspapers, television... These
activities can be carried out by enterprises or through central organizations.
professionally performed. This sales promotion is a factor that helps businesses
communicate information to customers.

11


Chapter 2. ANALYSIS

OF

THE

STATUS

OF

MARKETING

ACTIVITIES IN THE COMPANY
2.1. Company introduction
2.2.1. The process of formation and development of the Company
2.2.1.1. History

Thien Long (official name: Thien Long Group Joint Stock Company,
English name: Thienlong Group) is a company specializing in Vietnamese
stationery and art tools. The company was established in 1981 in Ho Chi Minh
City, formerly known as Thien Long Ballpoint Pen Foundation. From 2012 to
2016, Thien Long accounted for 60% of the market share of the stationery
industry in Vietnam.

 1996 - 2004
Thien Long Production-Trading Co., Ltd
Thien Long Manufacturing and Trading Co., Ltd. was born in 1996,
marking a new stage of development in terms of improving product quality,
production capacity, diversifying product designs and developing consumer
goods markets. Nationwide

 1981 - 1995
Thien Long ballpoint pen establishment was established
Thien Long ballpoint pen establishment was established, invested in
equipment and entered the domestic writing pen market

12


 2008 - 2011
Initially penetrating international markets
The company changed its name to Thien Long Group Joint Stock
Company. Stock code TLG was listed on the Ho Chi Minh City Stock
Exchange in 2010. The company also increased its charter capital from VND
120,000,000,000 to VND 176,500,000,000. During this time, the Company's
products have dominated the domestic market and initially entered the
international market.

 2005 - 2007
Thien Long Production-Trading Joint Stock Company
Thien Long Manufacturing and Trading Co., Ltd officially transformed
into Thien Long Manufacturing and Trading Joint Stock Company with a
charter capital of 100 billion VND in these five periods, and the brand and
products of Thien Long were strongly developed. In 2005, the charter capital
continued to increase to VND 120,000,000,000 in 2006.

 2012 - 2016
No. 1 stationery brand in Vietnam
After issuing shares in the form of dividends and bonus shares, the
charter capital of Thien Long Group Joint Stock Company has increased from
VND 176,500,000,000 to VND 294,714,640,000. At this stage, Thien Long
brand is the number 1 of the stationery industry in Vietnam, the domestic
market share is about 60% and the export market is expanding.

 2018 - 2019
13


The charter capital increased to 777.9 billion VND, exported to 65
countries, in which the Company completed the export map in Southeast Asia.
Launch of FlexOffice.com e-commerce website.
During nearly 40 years of establishment and development, Thien Long
aims to become the No. 1 stationery group in Southeast Asia and the leading
Asian

stationery

group.

5

Thien

Long

Group's

brands

are always ready to meet the needs of
domestic and foreign customers through a distribution network of more than
65,000 points of sale in Vietnam and more than 65 countries around the world.
Thien Long is rated by Plimsoll (*) as the stationery company with the highest
revenue growth in Southeast Asia, Top 15 stationery companies with the
highest revenue growth in the world and rated. Price is the world's best trading
partner for 5 consecutive years.
2.2.1.2. Business areas
- Producing and trading in stationery, school supplies, plastic teaching
aids, plastic household goods.
- Printing tampons, silkscreen printing, embossing on packages and
products.
- Buy and sell machinery and equipment for server manufacturing
companies.
2.2.1.3. Website, logo, slogan
- Website:
- Logo:

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- Motto: Power of knowledge
2.2.1.4. Production system
Thien Long is a leading Vietnamese manufacturer of ballpoint pens and
stationery. Currently the company has 13 product categories, 60 product
categories divided into 4 main groups:
1. Ballpoint pen: ballpoint pen, water-based gene pen, ballpoint pen, quill
pen.
2. Office tools: luminous pen, eraser, eraser.
3. Learning tools: Pencil, board, glue, dry glue, ruler, ink.
4. Art tools: Oil markers, crayons, watercolors, etc.
In addition to the above 4-product groups, the company also prints
advertisements for customers wishing to print advertisements on the company's
ballpoint pens.
2.2.1.5. Thien Long's mission, core values and strategy
Thien Long serves all types of customers with the mission "BECAUSE
LEARNING IS LIFE".
 The core values
 Work in team spirit.
 Continuous innovation.
 Commitment to perfection.
 Always meet all the needs of customers.
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2.2.2. Occupation
The company has four main product lines: pens, school supplies, office
tools and art tools.

As of 2019, the company owns sub-brands: Thien Long (traditional),
Bizner, Colokit, Point 10 and Flexoffice.
Thien Long: Traditional product line, including ballpoint pens, markers,
markers, erasers, paper notebooks, school and student tools, and more.
Bizner: Entrepreneur-oriented product line, including ballpoint pens,
pens, fountain pens, pencils, ink, and more.
Colokit: Crayons, crayons, pencils, erasers, etc.
2.2.3. Organization structure

16


Figure 2.1. The organization structure

2.2. Analysis of recent business activities
In 2020, TLG sets a target of VND 2,800 billion in net revenue and VND 220
billion in profit after tax, down 14% and 37% respectively compared to 2019.
With this plan, TLG has fulfilled 40% of the target. net sales and 8% after-tax
profit target in the first 6 months.
Explaining the decline in business results in the first half of 2020, TLG said
that in the domestic market, consumption volume in the first months of 2020
decreased significantly due to social distancing and especially due to schools.
School is closed for a long time.
Also for this reason, the annual meeting was held later in July instead of at the
end of the second quarter as in previous years, resulting in a 32% decrease in
accumulated consolidated revenue at the beginning of the year compared to the
same period last year.
For the international market, because some of Thien Long's key export markets
in Asia have temporarily suspended customs clearance, many foreign markets
have implemented social distancing, so sales in these countries took place. out

very slowly. However, with an effort to increase the number, types of products
and customers, the company exported 255 billion VND, down only 6%
compared to the same period last year.
17


Enterprises have tried to reduce costs and increase work efficiency, but because
of low consumption, it did not start to breakeven until May. Thanks to the
significant improvement in purchasing power at the end of the second quarter,
Thien Long covered the loss in the first 4 months and made a profit after 6
months.
Thien Long's business performance improved markedly in the third quarter of
2020, after the consumption situation was affected by the Covid-19 epidemic
in the first period of the year.
The epidemic has delayed the back-to-school season across the country. This
caused the selling points to simultaneously import goods from Thien Long later
than the previous year. “The peak sales period is faster and more intense,” the
company said in a statement.
In the midst of that, Thien Long has taken steps to prepare for the purchase and
production to increase the number and types of products displayed at the stores
appropriately. Despite the outbreak of the disease again at the end of July, Thien
Long's business results still grew in the last quarter.
Net revenue in the third quarter of 2020 reached VND 824 billion, up 7% over
the same period last year. Meanwhile, the company's net profit reached nearly
VND 129 billion, up 87% compared to the third quarter of 2019.
In parallel with sales enhancement activities, the above impressive results are
thanks to Thien Long's implementation of many solutions to optimize operating
costs, change the sales structure to reduce the proportion of high-margin
product groups. low profit. Compared to the third quarter of 2019, Thien Long's
gross profit margin increased from 37% to 44%; selling and administrative

expenses compared to revenue decreased to 24.6% from 26.9%.
Thien Long's net cash flow from operating activities was VND 278 billion in
the third quarter of this year, more than VND 143 billion in the same period. In
18


the last quarter, the Company spent more than VND 114 billion to pay the third
dividend in 2019 (5%) and advance the first dividend in 2020 (10%).
Timely changes have brought positive growth results for the stationery giant in
the third quarter of 2020.
In 2020, Thien Long is the 7th time in the Top 500 fastest growing enterprises
in Vietnam. In October, Thien Long kicked off digital transformation at the
enterprise with the signing of a memorandum of understanding with consultant
FPT.
2.3. Overview of Vietnam stationery market
Vietnam's stationery market is capable of consuming 4,000 billion
VND/year (excluding notebooks and notebooks of all kinds) with more than
30,000 items, of which imported office products currently account for more
than 80% of the market share. On the market, there were the presence of most
famous manufacturers of stationery and pens in the world such as Mont Blanc,
Caran d'Ache, Croos, Parker or Water man with prices up to several tens of
millions of dong a year. tree. Currently, domestic enterprises have also started
to invest in production to gradually regain market share. Striving for the next 5
years, office products manufactured in Vietnam will account for 25 to 30% of
the Vietnamese market.
According to the survey data of the Saigon Marketing Newspaper in the
VNCLC program, currently, Vietnam has about 20 large enterprises producing
stationery with about 5 companies with a revenue of over 10 billion VND, the
rest are most of the enterprises. Even though other businesses have a brand
name, their revenue is at VND 3 billion or more.

Vietnam has nearly 100 small production facilities, 80% of which are
concentrated in Ho Chi Minh City and 20% in other provinces and cities that
are manufacturing or importing materials from abroad for processing rulers,
19