AU REVOIR TEAM Tam Chan Company
AU REVOIR TEAM
Tam Chan Company
Agenda
• Company Background Information
• Market Research & Analysis
• SWOT analysis
• Product
• Pricing
• Promotion
• Place
COMPANY INFORMATION
History
• Established in Nov 2008 by Mr. Vu Khac Hao
• 7 office staffs & 10 workers
• Manufacture doors in Vietnam or from Korea, then import to
Vietnam.
• Mission Statement
▫ Building long term relationship with customers through offering
quality products, reasonable as well as competitive price and provide
thoughtful customer service
Location
• Tam Chan Co Ltd (Import & Export –
Trading – Manufactoring)
Address: , Dakao ward, Dis. 1, HCMC
Tel: (08) 3827 4114
Fax: (08) 3924 6061
Website: www.tamchansteel.com
• Manufacturing facility
Address: 403/15 Huong Lo 3, Binh Hung Hoa
ward, HCMC
Objectives
• 15% of annal growth rate in first 3 years
• Brand recognition
• Diversify products
• Aim of achieve 35% anti-mosquito bracelet market
• 25% sales inscrease after 2 years for doors
• 15% sales increase after 2 years for anti – mosquito bracelet
• Human resource investment and staff training
Product
• Anti-fire doors (Made in Vietnam & Import from Korea)
• Anti-mosquito bracelets
Organization Structure BOARD OF DIRECTOR
Mr. Nguyen Van CuongMr. Jun Kyung Bae
Mr. Kwak Jang Soon
DIRECTORMr. Vu Khac Hao
FINANCE DEPARTMENTMr. Dao Thanh Nghiem
SALES DEPARTMENTMr. Nguyen Ngoc PhuongMr. Le Duong Anh Hung
MANUFACTURING FACILITYSupervisor
MANUFACTURING FACILITY15 workers
Business Strategy
Tam Chan is low-cost leadership
because:
• The price is the
cheapest in compare with
others.
• Providing more values
to customers and target
market is broad, focusing
on children and people
who like travelling
MARKET RESEARCH & ANALYSIS
1. Industry Overview
2. Market Opportunity
3. Market Segmentation
Industry overview
• Many types with different smells and designs
• Market for bracelets is new and has few participants
• The product is convenient and presents fashionable trend of youth
Promising and potential
Market opportunity
• Decrease in import duty rate
▫ Import more commodities in higher volume with less import duties
• Market size
▫ Adult market
▫ Tourist market
Adult Market
• HCM population: 6,347,000 (General Statistic Office 2007)
• 69%: purchase product for
children
• 73%: purchase product for
family without caring about
price increasing.
Through a rough estimation,
can get 12% 761,640
Tourist market
• International visitors: on average, about
1.2 millions foreigners visit Vietnam
each year.
• Local visitors: contribute about 20% of
total revenue of the country tourism.
• estimated that about 3,500 of tourist
will interested in BUGSTOP
Market segmentation
• Geographic
▫ HCM city
• Demographic
▫ Age: 12 – 30 years old due to its youthful design
▫ Gender: both boys and girls
▫ Income: affordable for all classes of society
• Behavior
▫ Occasion: rainy and summer seasons
SWOT analysis
•Strong competition from indirect competitors•Low barrier to entry
•Raising awareness of health in the society•No dominant firm in this field
ThreatsOpportunities
•Small budget •Lacking of human resource•Problem of storing and warehousing.
•Exclusive importer of BUGSTOP bracelet.•The support of 2 Korean members of board of directors of supplier.•Quality of the product is stable and certified.
WeaknessesStrengths
CUSTOMER STRATEGY
Buying decision
Problem recognition
X
Habitual
decision
making
Low involvement High involvement
Habitual decision making Limited decision making Extended decision making
Information search
Social othersGeneral purpose
mediaNon-
commercial
salespeopleAdvertising, information
Commercial
PersonalImpersonal
Expand information resources on the main website.
Advertising on various websites.
Anti-mosquito bracelet
Evaluation of Alternatives
• Use surrogate indicators
• Instruction + origin + quality certification on the package
Store selection – Purchase decision
• Customers choose the stores or supermarkets that are popular and reliable
Point of Purchase display, selective distributors
Post purchase evaluation
• Magnitude of the dissonance is small.• Customers can take public reaction.
• clear instruction written in Vietnamese must be on the package
• hot-line contact
Product
FRONT BACK
Figure 3: Design of package
LOGO
BRAND NAME
SLOGAN means
Bye-bye bugs
• Core benefits
• Package design
• Features
• Made in Korea with
local ingredients
• Smell & materials are
tested by official testing
institutes of Korea
Competitors
• Direct • Indirect
PRICING
MARKET
PENTRATION
VALUE-BASED
PRICING
Market Penetration
• Retail price 25,000vnd
• Reasons:▫ To satisfy the goal of market share leadership▫ discourage the competition
Value-based pricing
• low price must be in the range of prices of the competitors
• Reason:▫ Avoid negative reaction from customers
Pricing adjustment
18, 50018,00017,50017,00016,000
26%28%30%32%36%
70 - < 100100 - < 300300 - < 500
500 - < 1000> 1000
Price (vnd)Discount rateQuantity
PROMOTION
Promotion Strategy
Push strategy
Pull strategy
Tam Chan Wholesalers Retailers
Promotional Campaigns
Customers
Tam Chan Distribution Channels Customers
Order
Objectives of Promotion
Short-term objective:
Achieve 25% market share in anti-mosquito bracelet industry
Appeal more than 30,000 new customers
Increase the sales and profit 10% monthly
Raise gradually the number of order received from many wholesales and retails
Long-term objective:
Acquire 35% market share in anti-mosquito position within three years of operation The annual sales should be increased each 60% Reach the awareness and high reputation of existing customers in domestic Open 5 main branches owned by Tam Chan chain across Vietnam after 3 years
operating
Television advertising
• A tool that spread their new product to customers quickly and widely
• Efficient choice for achieving the awareness from customers
• Vietnamese people have habit to watch television everyday
Newspaper & Magazines
• Cost spent is less than TV• Many people read newspaper and magazine to
get information everyday• Easy to store for future view
Internet
• Most convenient and popular tool that used a lot for communicating and providing information quickest
www.ngoisao.net, www.dantri.com.vn, www.tuoitre.com
www.tamchansteel.com
Others promotional activities
• Sponsor for game show“Sieu thi may man”, “Hay chon gia dung”
Others promotional activities
• Hang banners on public places
DISTRIBUTION
Distribution Channel
CROSS DOCKING
reduce negative cash flow
solve the problem of warehousing
FINANCIAL DESIRED OUTCOMES
Thank you for listening!
References• Dengue Fever – Information Sheet, viewed 2nd September 2009, WHO Regional
Office for South-East Asia, <http://www.searo.who.int/en/Section10/Section332_12647.htm>.
• Haub, C 2009, An Overview of Population and Development in Vietnam, Population Reference Bureau, viewed 2nd September 2009, <http://www.prb.org/Articles/2003/AnOverviewofPopulationandDevelopmentinVietnam.aspx>.
• High number of off-season petechial fever patients worries medical staff, viewed 2nd September 2009, Vietnamnet, <http://english.vietnamnet.vn/social/2008/02/769464/>.
• Ho Chi Minh Population, in Population and population density in 2007 by province, General Statistic Office Of Vietnam, viewed 1st September 2009, <http://www.gso.gov.vn/default_en.aspx?tabid=467&idmid=3&ItemID=7354>.
• Quester, P 2007, ‘Problem recognition’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 64-89.
• Quester, P 2007, ‘Information search’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 90-123.
• Quester, P 2007, ‘Evaluating and selecting alternatives’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 124-150.
• Quester, P 2007, ‘Outlet selection and product purchase’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 152-185.
• Quester, P 2007, ‘Post purchase processes’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 186-221.