MINISTRY OF FINANCE ACADEMY OF FINANCE GRADUATION THESIS TOPIC MARKETING MIX SOLUTION TO IMPROVE BUSINESS PERFOMANCE OF X18 CEMENT JOINT STOCK COMPANY Student Tran Ngoc Khanh Major Business Administration Class CQ5532 01 Mentor MA Nguyen Thi Van Anh DECLARATION I declare that this thesis is made by myself, as a result of the three month internship X18 Cement Joint Stock Company Any ideas, techniques, quotations and other material from work of other people included here are fully acknowledged in.
Introduction
For any business, prioritizing profit and effectively positioning its products and services in the market are crucial Establishing a well-defined marketing plan is essential, as it guides businesses in their branding efforts and ultimately drives profitability.
In today's rapidly evolving economic landscape and with the constant advancement of information technology, digital marketing activities are increasingly gaining prominence By developing effective marketing strategies and staying updated on the latest trends, companies can enhance their operational efficiency and empower their teams This proactive approach enables business leaders to assess the effectiveness of marketing initiatives on a quarterly and annual basis, ultimately driving better decision-making and improved outcomes.
The marketing mix is a vital tool for businesses, focusing on key elements such as product, price, distribution, and promotion Despite its popularity, many companies, including X18 Cement Joint Stock Company, struggle to achieve desired business performance, often due to the high costs associated with marketing activities This article aims to propose a marketing mix solution to enhance the company's overall performance.
Aim and Objectives
Firstly, the thesis systematizes the theories of marketing and marketing – mix Secondly, analyze and evaluate the status of marketing mix activities in X18
Thirdly, this thesis provides solutions to improve X18 Cement Joint Stock
Scope of the research
Subject: Marketing – Mix avtivities of the company
Space: X18 Cement Joint Stock Company
Research Methodology
Data collection method: Textbooks, books, journals, final reports, published documents from Party and State agencies, organizations, departments and branches related to the research topic Research, Enterprise reports from 2016 to 2018
The comparison method is a commonly utilized approach for analyzing socio-economic phenomena, allowing for the examination of similarities between different phenomena, as well as between various reporting and base periods This method facilitates the comparison of distinct types, enhancing the understanding of relationships within socio-economic data.
Analysis method: analysis and synthesis evaluation, analysis of absolute, relative, hypothetical
Thesis Structure
Besides the preface, conclusion, and references, the thesis consists of three main chapters
Chapter 1: Theoretical overview of marketing – mix solutions to improve business performance for x18 joint stock company
Chapter 2: Overview of marketing – mix activites in x18 cement joint stock company
Chapter 3: Marketing - mix solutions to improve business performance for
Despite my best efforts, my thesis contains errors due to limited research conditions and knowledge I welcome constructive feedback from my teachers to enhance the quality of my research project.
I would like to extend my heartfelt gratitude to my mentor, MA Nguyen Thi Van Anh, a lecturer at the Academy of Finance, for her invaluable support and guidance throughout my thesis journey Her careful instructions, insightful comments, and expert advice were instrumental in shaping my work I am especially thankful for her patience in reviewing and correcting my thesis, as her encouragement made it possible for me to complete this project Additionally, I wish to express my sincere appreciation to all the staff at X18 Cement Joint Stock Company for their assistance.
Graduation thesis author Tran Ngoc Khanh
THEORETICAL OVERVIEW OF MARKETING – MIX
Overview of Marketing Strategy and Marketing – Mix Solutions to
Marketing encompasses the activities, institutions, and processes involved in creating, communicating, delivering, and exchanging valuable offerings for customers, clients, partners, and society as a whole.
Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably (Chartered Institute of Marketing, 2001)
Marketing is the human activitiy directed at satisfying human needs and wants through an exchange process (Kotler and Amstrong, 1980)
Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit (Kotler, 1980)
Needs: Human needs are states of deprivation (Kotler and Amstrong, 1980)
To thrive, individuals must fulfill their fundamental natural needs, which become increasingly complex as societies evolve These inherent human needs are not influenced by marketing efforts; however, marketers can study and understand these needs to effectively address and satisfy them.
Human wants are the manifestations of needs shaped by cultural characteristics, awareness, and consumption habits Understanding individual or group wants is crucial for tailoring marketing strategies, which enhances business efficiency and aligns products with customer demands.
Demands represent human wants supported by purchasing power, as highlighted by Kotler and Armstrong (2016) When consumers consider buying a product, their decisions are influenced by their needs, reflected in demand, and their financial resources Demand indicates a desire for a product at a particular price point Therefore, businesses must ensure that their offerings align with both the needs and wants of customers, while also taking into account their financial circumstances.
To effectively meet societal needs, it is essential to research and analyze market demands—both actual and potential By understanding these demands, marketing activities can be tailored to provide appropriate solutions, ultimately maximizing production and consumption for the benefit of society.
Effective marketing strategies enhance an organization's adaptability by enabling companies to differentiate themselves from competitors while meeting the needs of their target customers When utilized wisely, marketing not only mitigates unforeseen challenges but also fortifies market position, expands reach, attracts new customers, and boosts overall competitiveness.
To boost consumer spending, companies aim to enhance their consumption levels Implementing effective pricing strategies, establishing comprehensive distribution systems, and providing staff training are essential steps that can help businesses achieve this objective.
To enhance business and production efficiency, marketing plays a crucial role in maximizing operational effectiveness A successful marketing strategy must strike a balance between the benefits to the market, the company, and society as a whole By focusing on satisfying both social and market demands, marketing activities ultimately align with the best interests of the company.
A marketing strategy is a comprehensive, long-term plan that organizations develop to gain a sustainable competitive advantage By focusing on understanding customer needs and desires, businesses can effectively position themselves in the market and meet consumer demands.
An effective marketing strategy integrates the 4 Ps of the marketing mix to achieve the company's marketing objectives and deliver value to customers These 4 Ps—product, price, place, and promotion—are interconnected and work together to define the product's position in its target markets.
The marketing mix can be divided into four groups of variables commonly known as the four Ps:
A product encompasses the goods or services a company provides to its customers, involving the strategic planning and development necessary for market launch Key elements include variety, quality, design, features, brand name, packaging, and associated services, all contributing to the overall value offered to consumers.
Determining the price policy for products involves setting the list price, applying discounts and allowances, and defining payment periods and credit terms, which collectively represent the total amount customers pay to purchase the product.
Place, also known as distribution, encompasses the activities that ensure products are accessible to consumers This includes managing distribution channels, determining coverage, and optimizing assortments and locations Effective place strategy involves maintaining inventory, coordinating transportation, and streamlining logistics to deliver products to the end consumer at the right time and in the right place.
Promotion encompasses various activities aimed at communicating a product's features and benefits to persuade customers to make a purchase This includes advertising, personal selling, sales promotions, and public relations efforts By providing essential information about products, promotion plays a crucial role in encouraging consumers to choose and utilize the offerings of a company.
1.1.2 Importance of Marketing and Marketing Strategies
Effective marketing is crucial for the success of any business, as it enables you to engage with your target audience and fosters long-term growth.
The basis for the construction of policy management
To ensure sustainable economic development
One of 4 determinants of success
To enhance creditability, branding, competitiveness
Marketing strategy provides an organization an edge over it’s competitors.
Strategy helps in developing goods and services with best profit making potential.
Marketing strategy helps in discovering the areas affected by organizational growth and thereby helps in creating an organizational plan to cater to the customer needs.
It helps in fixing the right price for organization’s goods and services based on information collected by market research.
Strategy ensures effective departmental co-ordination.
It helps an organization to make optimum utilization of its resources so as to provide a sales message to it’s target market.
Factors affecting the effectiveness of marketing strategies and
Philip Kotler defines the marketing environment of a company as the array of external actors and forces that impact marketing management's capacity to build and sustain effective relationships with target customers Understanding this environment is crucial for successful marketing strategies and partnerships.
The marketing environment undergoes constant changes that significantly influence business operations, presenting both opportunities and challenges By effectively capturing and analyzing these environmental factors, businesses can make informed decisions and adapt to fluctuations, ensuring their resilience and growth in a dynamic market landscape.
The macro environment encompasses various broad social factors that significantly impact the micro environment and corporate decision-making Key components include demographic, economic, political, technological, ecological, and socio-cultural forces These external factors are beyond the control of businesses, yet they continually influence operational strategies and outcomes.
Demographic forces, derived from the study of demography, focus on human populations, encompassing aspects such as size, density, age, gender, and occupation Understanding these demographics is vital for businesses, as they drive market development and shape consumer needs The diverse and growing population presents both opportunities and challenges for companies, making it essential for marketers to analyze demographic shifts As demographics evolve, so do markets, necessitating the adaptation of marketing strategies to meet changing consumer demands.
Marketers must closely monitor demographic trends, as they encompass various population characteristics including size, growth, density, and age and gender distribution Understanding these key demographic factors is essential for effectively targeting markets and adapting strategies to meet consumer needs.
The global population is experiencing rapid growth, having reached 7 billion in 2011 and projected to hit 8 billion by 2030, with the potential to double by the century's end This growth is predominantly occurring in regions lacking wealth and stability, as over 70% of the anticipated population increase in the next 40 years will take place outside the 20 wealthiest nations Consequently, these demographic shifts necessitate adjustments in effective marketing strategies.
The evolving age structure of the global population significantly impacts marketing strategies Countries like India, which boasts one of the youngest populations with a median age of 28 by 2020, present favorable conditions for growth In contrast, the aging populations in the European Union and the USA pose challenges, including reduced economic dynamism and a shrinking workforce that must support an increasing number of elderly individuals.
As family dynamics evolve, marketing strategies must adapt to reflect these changes Traditional household structures, once characterized by a husband, wife, and children, are increasingly giving way to new formats, including married couples without children, single-parent families, and single-person households Additionally, the rise of full-time working women, particularly in Europe, further influences these shifts To effectively engage modern consumers, marketers must reconsider and update their approaches to align with the diverse family structures of today.
One – and the most important – element of geographic shifts is migration By
By 2050, global migration is projected to double, significantly influencing the demand for products and services in various locations This shift is driven by changing demographics and evolving needs stemming from new circumstances Additionally, increasing ethnic diversity presents fresh opportunities, while urbanization further shapes these demands.
Major factors in the economic environment are economic performance and same Economic performance is what is actually happening, and how consumer confidence is about what's going on.
The performance of an economy is evaluated through key indicators, including gross domestic product (GDP), gross national product (GNP), per capita income, unemployment rates, monthly sales across major product categories, total capital construction investments, and the production growth index of various products.
Consumer confidence is significantly affected by key factors such as the volatility of the fake index of goods and the inflation rate When consumers perceive that prices are increasing at a rate that outpaces their income, they become more focused on preserving their current purchasing power.
Economic information is reported on the mass media.
Other events about socio-economic life taking place domestically and internationally may also affect consumer confidence.
Strong economic performance and rising consumer confidence typically lead to an increase in overall sales volume, with consumers gravitating towards products that align with industry growth.
Culture is a complex system encompassing the values, memories, beliefs, traditions, and behavioral standards of a specific group It is shaped by various factors, including environmental conditions, life experiences, and the historical context of both the community and other cultures.
Local values encompass the ideas and goals that are respected within a community, highlighting the differences among various groups Economic growth, particularly in sectors like water and culture, can influence social values, which in turn affects marketing strategies These changes underscore the importance of understanding local dynamics in order to effectively engage with diverse audiences.
In the future, shifts in satisfaction levels may be influenced by rising anger issues, highlighting the stark contrast in lifestyles between Northern and Southern communities Many urban families are increasingly opting for fast food options or quick meals, often overlooking healthier alternatives such as recycling and sustainable cooking practices.
Marketing solutions to improve business performance
1.3.1 Overview of Marketing – Mix solutions
A product is anything that can be offered to a market for attention, acquisition, use or consumption It includes physical objects, services, personalities, place, organizations and ideas (Kotler and Amstrong, 2014)
The core benefit is the fundamental need that the customer satisfies when they buy the product It is important to think of the core benefit from the customers perspective
Products are rarely marketed using the core product This is because core products offer no competitive advantage
The actual product is the product features and its design Products typically have lots of features but very few actual benefits (core benefits) to the customer.
The augmented product encompasses the non-physical aspects of a product, such as warranties and customer service These elements play a crucial role in customizing the product to fulfill the unique needs of individual customers.
Enhancing the augmented product is an effective strategy for increasing a product's value Many advertising campaigns emphasize this aspect, as it provides a unique opportunity to differentiate from competitors, ultimately helping brands to stand out in the marketplace.
Products, similar to individuals, experience life cycles that start with an initial idea In today's business landscape, a product typically progresses only after thorough research and development (R&D) confirms its feasibility and potential profitability Once validated, the product moves into production, marketing, and ultimately, market launch.
There are four generally accepted stages in the life cycle of a product— introduction, growth, maturity, and decline
Introduction: This phase generally includes a substantial investment in advertising and a marketing campaign focused on making consumers aware of the product and its benefits.
Growth: If the product is successful, it then moves to the growth stage This is characterized by growing demand, an increase in production, and expansion in its availability.
Maturity: This is the most profitable stage, while the costs of producing and marketing decline.
Decline: A product takes on increased competition as other companies emulate its success—sometimes with enhancements or lower prices The product may lose market share and begin its decline.
The successful introduction of a product into the market leads to increased demand and popularity, often resulting in the obsolescence of older products As a new product gains traction, companies typically reduce their marketing efforts due to lower production and marketing costs However, if demand for the product diminishes, it may ultimately be removed from the market entirely.
Price refers to the monetary value assigned to a product or service, representing what consumers pay in exchange for the benefits derived from using it (Kotler and Amstrong, 2014)
Pricing strategies should align with a company's financial goals For instance, if a business aims for a specific return on its capital investment, it must set prices in a way that ensures total sales revenue surpasses total costs by a significant margin, thereby achieving the desired return on investment.
The organisational structure of a firm plays a crucial role in shaping its pricing decisions Typically, top management holds the authority to establish pricing objectives and policies However, in some companies, employee participation is encouraged, allowing staff to contribute their insights and suggestions regarding pricing strategies This collaborative approach can be particularly beneficial for firms with diverse product lines that necessitate regular pricing adjustments and vary across different markets.
The marketing manager plays a crucial role in assisting top management with the development of pricing policies and strategies Setting the selling price is a significant decision for the company, and the cost accountant contributes valuable insights by supplying relevant cost information to guide this pricing decision.
A product that stands out from its competitors through unique features like innovative style, design, or packaging can command a higher market price This differentiation not only gives the company more flexibility in pricing but also increases customer willingness to pay a premium.
Pricing decisions are primarily influenced by production costs If a product is priced below its production cost, the company incurs losses However, by effectively coordinating production activities, a firm can lower its production costs, allowing it to reduce prices accordingly.
Market demand significantly influences product pricing; without demand, a product cannot be sold Conversely, when demand is high, pricing strategies can be adjusted to capitalize on this trend.
The current competitive landscape is significantly more intense than in the past, with an abundance of both Indian and foreign products available in the market Competitors' pricing strategies, product variety, and size greatly influence pricing decisions Without unique features to differentiate their products, companies struggle to justify higher prices compared to their rivals.
Government interference, such as control of prices, levying of taxes etc are other considerations which affect the pricing of the products
The various the company undertakes to make the product accessible and available to target costumer (Kotler and Amstrong, 2014)
The direct channel is the most straightforward distribution method, where producers sell directly to consumers This approach is commonly seen with small-scale producers, but large corporations also effectively utilize direct channels, particularly in B2B transactions Additionally, services can be offered through direct channels, allowing individuals to purchase services directly from their providers.
Retailers are businesses that specialize in selling products directly to consumers, distinct from direct channels as they do not manufacture the items themselves They serve as intermediaries, marketing and selling goods on behalf of producers By offering a centralized location for various products, retailers enhance contact efficiency for consumers, who can purchase items in physical stores, online, through kiosks, or via home delivery The primary focus is on facilitating direct sales to the consumer, regardless of the selling platform.
From a consumer's viewpoint, the wholesale channel closely resembles the retail channel, but it includes a wholesaler who buys, stores, and handles goods in bulk These goods are then resold in smaller quantities to retailers or business users In advanced economies, most goods produced involve wholesaling in their distribution process Additionally, wholesale channels encompass manufacturers with sales offices for wholesale functions and retailers who engage in warehouse operations or other wholesale activities.
OVERVIEW OF MARKETING – MIX ACTIVITES IN X18
Overview about X18 Cement Joint Stock Company
X18 Cement Joint Stock Company, a subsidiary of the General Department of Defense Industry, was founded on April 14, 1977, following Decision No 92/QD-QP issued by the Minister of Defense The company is located in Ngoc Luong Commune, Yen Thuy District, Hoa Binh Province.
X18 has spent nearly 40 years producing cement for construction in the Army and economic development Up to now X18 Cement has created the trust of the customers.
Utilizing the European dry technology method for rotary kiln manufacturing, X18 Cement is dedicated to delivering high-quality and stable products that meet all customer requirements Our experienced team of qualified technicians adheres to the ISO 9001:2008 international quality management system, ensuring customer satisfaction and aligning with our motto, "Quality creates prosperity."
X18 Cement has received numerous prestigious accolades from the Party and State over the years Notably, in the past decade, the company has garnered several quality awards from the government and relevant ministries, highlighting its commitment to excellence This recognition underscores X18 Cement's successful strategy of prioritizing quality as the foundation for prosperity.
The Company not only manufactures high-quality common cement for civil construction, transportation, and industry, but also offers a specialized product known as Sun Phat Durable Cement, or cement with salt tolerance This unique cement is produced using original technology without any additives, making it ideal for coastal projects, islands, underground constructions, urban infrastructure, and environmental treatment Sun Phat X18 durable cement meets stringent standards, including American ASTM C150: 05, British BS 4027: 1996, and Vietnamese TCVN 6067: 2004, all certified by the General Department of Standards, Metrology, and Quality.
X18 Cement Joint Stock Company, established on April 14, 1977, operates under the General Department of Defense Industry Located in Ngoc Luong Commune, Yen Thuy District, Hoa Binh Province, the company transitioned to a Joint Stock Company on August 31, 2006, following a decision by the Minister of National Defense.
X18 Cement Joint Stock Company, formerly X18 Cement Factory under the General Department of Defense Industry, was established under Decision No.327/QD-QP dated July 27, 1993.
From October 13, 1997, X18 Cement Factory was renamed Company 18 under Decision No.1361/QD-QP dated October 13, 1997 of the Minister of Defense.
Company X18 was transformed into a Joint Stock Company under the Decision No.2260/QD-BQP dated August 31, 2006 of the Minister of Defense.
2.1.2.2 Legal status and total capital a Legal status
X18 Cement Joint Stock Company operates as a legally recognized joint stock enterprise, possessing full responsibility for its business outcomes The company maintains independent accounting practices, ensuring financial autonomy and the preparation of its own financial statements.
Company’s charter capital scale: 61,557,770,000 VND
With more than 40 years of operation, X18 Cement Joint Stock Company currently has a team of experienced staff, a staff of official staff with a total staff of more than 450 people, of which:
Major (Qualifications) Experience (Years) Quantity
Key departments a Board of Director
President: Mr Pham Quang Huy
Vice President: Mr Le Viet Hung
Executive: Mr Mai Quy Phi
Executive: Mr Nguyen Bach Viet
Executive: Mr Nguyen Van Thang
Decide the company's policies, goals, and strategies, and directly hold the success or failure of the company.
Approve all applicable internal regulations.
Take responsibility for the company's activities to the collective of officials
Decide the full price when providing services on cement and when purchasing machinery equipment.
Signing decisions related to the company's personnel. b Director
Director: Mr Nguyen Van Kien
Manufacture Vice Director: Mr Quach Van Muoi
Sales Vice Director: Mr Pham Ba Trinh
Director: Setting goals, policies, regulations, plans and implementing those policies and plans must ensure that departments work effectively together.
The Manufacture Vice Director is accountable to the Board of Directors for overseeing all aspects of cement production This role involves managing production activities, addressing technical issues related to production lines, and ensuring effective coordination between manufacturing and market sales.
The Sales Vice Director is accountable to the Board of Directors for overseeing all business operations, including the distribution of cement products to local businesses and consumers This role also involves implementing effective marketing strategies to enhance business growth, setting clear business objectives, and maintaining a comprehensive understanding of overall business performance within the Marketing Department.
All marketing tools such as: approaching customers, consulting on contract signing, setting up marketing strategy, executing programs, reporting to supervisors Managers and customers are concentrated in the Marketing department.
Building PR strategy, marketing for products by stages and target customers. Build website, analyze the market, find customers, perform customer care, warranty services.
Analyzing orders, setting norms of types of means of transport in accordance with the orders.
Events: Hold some events that can promote company brand like: giving gifts to the poor in province in Tet Holiday, giving scholarship for students that have high score,…
Website: Presenting about products of the company, company structure, hotline or customer care,…
Ads: Run campaign on TVs, newspaper,… to marketing about the brand and the products
Overview of business activities and performance
Production on the basis of bringing benefits to customers, communities and society.
Customer satisfaction is the mission of the Company.
Cooperative relations with all customers across the country.
Human resources are the most valuable asset of the Company.
Each individual in the Company is a member of the X18 Cement shared house to build dreams and fulfill dreams for all customers.
The company's website is undergoing a rebuild to enhance its online presence and better connect with consumers across the nation Currently, the site features only essential information, including a brief introduction to the company, its operating system, and key products The revamped website will provide a more comprehensive and engaging experience for visitors.
X18 is committed to organizing charity events in Hoa Binh province as a key marketing strategy, focusing on fundraising and assisting individuals facing hardships In 2021, the company aims to enhance its impact through these initiatives, solidifying its presence in the community and contributing to social welfare.
X18 Company aims to broaden its distribution network beyond Hoa Binh province to reach all provinces across the country, enhancing the availability of its cement products nationwide.
To foster a robust connection between the company and its customers, it is essential to prioritize customer interests when developing business policies and strategies By effectively addressing the needs and aspirations of customers, the company can enhance its reputation and attract a growing number of new clients.
Invest in research, market survey to orient policies and marketing plans. Classify customers, give specific sales strategies, implement flexible, reasonable and appropriate price strategies in the market.
Continue to promote forms of advertising, introducing products to consumers;maintain the after-sales customer support regime; participate in exhibitions,fairs
Strictly guaranteeing the quantity and quality of products upon delivery. Maintain and regularly improve the quality management system ISO 9001:
Specializes in manufacturing ordinary cement PCB30 - PCB40 and durable cement Sun play PCSR30 - PCSR40 (salt-resistant cement) and trading construction materials, construction and installation equipment.
The company's salt-resistant cement, developed using non-additive origin technology, was the first product of its kind in Vietnam to receive national certification in 1999 under TCVN 6067: 2004 It is also certified according to international standards, including ASTM C150: 05 (American Standard) and BS 4027: 1996 (British Standard).
The X18 cement product brand, including PCB30, PCB40, and PCSR30-PCSR40 under the "Eagle" label, has been recognized by the Ministry of Science and Technology for its strength and sustainable development These salt-resistant cement products have been specifically ordered by the Ministry of Defense for use in constructing coastal, sea, and island defense projects critical to the nation's security.
Construction of civil engineering works: traffic, irrigation, mining stones, gravel sand, clay
Installation of industrial machinery and equipment;
Wholesale (import and export) of other materials, machinery and equipment installed in construction
Assets Beginning year Ending year
1 Long-term accounts receivable from customers
2 Long-term prepaid expenses to suppliers
3 Long-term inter-company receivable - -
III Other long – term assets 6.466.412.346 6.342.652.952
1 Short-term payables to suppliers 147.010.4785.711 147.219.031.621
2 Short – term advances from customers 16.876.656.135 27.059.103.149
3 Tax and short – term receivables 667.200.138 2.266.956.285
9 Short – term loans and financial leases 193.092.551.000 103.555.551.000
1 Long – term receivable to suppliers - -
2 Long – term loans and financial leases 281.295.802.952 341.295.802.952
- Ordinary shares have the right to vote 61.557.770.000 41.557.770.000
- Unsistbuted net profit until the end of the previous period
1 Sales of goods and services
3 Net sales of goods and services
5 Gross profit on sales and service provision
10 Net profit from operating activities
14 Total accounting profit before tax
16 Mortgage basic interest per share
Evaluation of production and business activities in 2019
The company's net revenue from sales and services has shown consistent growth over the years, with a significant increase of over 77 billion in 2018, reflecting a 33.76% rise compared to 2017 In 2019, revenue further surged by more than 96 billion, achieving a growth rate of 30.87% While each subsequent year's revenue has surpassed that of the previous year, the growth rates for the 2018-2019 period have not matched the impressive figures seen in 2017-2018.
In 2018, the company demonstrated strong performance with a net profit from operating activities rising by 123 billion VND, reflecting an impressive increase of 148.38% compared to 2017 However, this positive trend took a downturn in 2019, as net profit significantly declined by over 40 billion VND, marking a decrease of 99.97%.
In 2018, the company experienced significant growth in profit after tax, achieving a positive figure of over 151 billion, which represents an impressive increase of 174.57% compared to the previous year's negative results Although profit declined in 2019, it remained positive, demonstrating effective operational management, with a decrease of more than 40 billion, equivalent to 61.89%.
Over the years, the company's sales expenses have significantly decreased, dropping from over $6 billion in 2017 to just over $3.2 billion in 2019 This reduction in sales expenses indicates the company's ability to manage its spending more effectively, minimize incurred costs, and ultimately enhance its revenue and profitability.
Marketing Environment
Hoa Binh province has a population of 854,000, with approximately 565,000 individuals of working age, representing 68.5% of the total population Among these, around 497,000 are employed, which constitutes 88% of the working-age demographic.
The data shows that Vietnam is in the golden age of the population with a
This brings a young workforce, healthy, able to learn and create great conditions for domestic enterprises to recruit suitable staffs
Table 2.5: Vietnam population pyramid period 2009 – 2019
Thanks to cheap young labor, X18 is capable of recruiting young potential employees for its company, as well as highly educated personnel, which greatly help business operations. b Gender
As of April 1, 2019, Hoa Binh province's population stands at 854,131, reflecting an increase of approximately 69,000 people over the past decade This translates to an average annual growth of 6,891 individuals, resulting in a modest growth rate of only 0.84% Notably, this growth rate is the lowest among the Northern mountainous provinces and the entire country.
In the total population of Hoa Binh province, the male gender accounts for49.98%; female accounts for 50.01% (sex ratio 99.9 males / 100 females)
Table 2.6: Gender in Hoa Binh Province
Gender in Hoa Binh Province
The gender population data in Hoa Binh province indicates a balanced gender ratio, with no significant disparity between males and females This demographic equilibrium presents a valuable opportunity for cement company X18 to enhance its production and distribution of cement products With the primary target customers being construction businesses and individual consumers—predominantly male—who seek materials for building houses and other structures, X18 is well-positioned to meet market demands effectively.
Cement production is a demanding, physically intensive process that necessitates skilled engineers to effectively manage and operate intricate production lines Additionally, a predominantly male workforce can provide significant advantages for the company.
The company's workforce demographics reveal a significant gender disparity, with male employees making up 65.5% of the total personnel, while female employees represent only 34.5%.
Table 2.7: Workers gender in X18 Cement Joint Stock Company
Workers in X18 Cement Joint Stock Company
The labor structure of industries in Hoa Binh is relatively diverse and divided into 3 main groups:
Labor in agriculture - forestry - forestry - fisheries: Accounting for 68.8% of the working population
Labor in the field Industry and construction: Accounting for 12.3% of the working population
Labor in the service sector, commerce: Accounting for 20.9% of the working population
Table 2.8: Labour in Hoa Binh Province
Labour in Hoa Binh Province
Agriculture - Forestry - Fisheries Industry - Construction Service - Commerce
Industry structure data reveals significant disparities among labor groups, with the construction sector representing only 12.3%, the lowest among the three occupational categories This poses a considerable challenge for X18 in recruiting a sufficient number of qualified workers for its operations.
Personal income plays a crucial role in assessing and tailoring marketing strategies for distinct customer segments Higher income levels typically correlate with increased demand, as affluent consumers tend to be more discerning and selective in their purchasing decisions.
In 2019, the GDP per capita of the Hoa Binh people was approximately $1,800, reflecting significant economic challenges The region's economy has not progressed as rapidly as other provinces, with the majority of residents primarily engaged in agriculture, resulting in persistently low income levels.
Due to low income levels, consumers are less likely to prioritize packaging and more focused on product quality, which benefits X18 Joint Stock Company This allows X18 to reduce expenses on elaborate packaging designs and redirect those resources towards enhancing production quality.
Low income significantly impacts the recruitment efforts of X18, as potential candidates prioritize high salaries and attractive compensation packages This focus allows the company to attract quality employees without incurring excessive costs.
Businesses may encounter a seemingly minor challenge that, if not addressed promptly, can disrupt overall operations When consumers experience low income, they often prioritize product pricing and quantity over packaging quality, making them highly price-sensitive customers.
Vietnam's political landscape is marked by stability, largely due to the absence of internal conflict stemming from the ruling party's governance This stable environment fosters a conducive atmosphere for business activities, minimizing disruptions In response to the economic challenges posed by the Covid-19 pandemic, the government implemented various policies and solutions in 2020 to support businesses in navigating the crisis.
The government has introduced a 10% reduction in electricity prices to help businesses limit a sizable portion of electricity costs to be paid each year
X18 Joint Stock Company greatly benefits from the government's supportive policy of reducing electricity prices, which is crucial for large-scale cement production that relies on continuous operation of production lines This initiative will enable X18 Cement to optimize operational costs, ultimately leading to increased revenue and profit.
Provide tax and capital assistance policies
In response to the ongoing economic challenges exacerbated by the epidemic, the Prime Minister has issued urgent directives to alleviate difficulties for businesses and ensure social security The Government has tasked the State Bank of Vietnam with guiding credit institutions to effectively balance and promptly fulfill the capital requirements for production and business, while also expediting necessary reforms to adapt to the impacts of Covid-19.
In response to the challenges posed by the Covid-19 pandemic, administrative procedures have been streamlined to expedite loan application reviews and enhance customer access to loans Supportive measures have been implemented, including the rescheduling of loan repayment terms, potential exemptions or reductions in loan interest, maintaining debt classifications, and reducing fees for customers experiencing financial difficulties.
19 (the first is a credit support package of about 250 trillion dong).
Evaluation of Marketing – Mix operation in X18 Cement Joint Stock Company
A long established company which has a reputation when compared to many younger brands
There is a rich and abundant source of clay minerals right in the residential area to create good quality product input materials, stable supply
Local people mainly do hand-to-hand jobs such as farmers and workers, so human resources to ensure the operation of production lines are ensured
Few competitors should avoid the cement market being broken down, leading to loss of customers or inagestion of products
Reputable suppliers of raw materials to ensure product quality
Products of high quality, produced with up-to-date technology
Competitive prices of products, suitable for the people's income in the area
Marketing activities, while not highly diverse, primarily focus on well-planned events that effectively enhance brand recognition and encourage customer purchases Additionally, developing a website serves as a valuable resource for customers, providing them with extensive information about the company and boosting its credibility.
The company's distribution system is well-structured and scalable, with plans for future expansion By distributing products directly to local retailers, the business can reach a wider customer base across provinces and cities nationwide With fewer intermediaries in the distribution channel, X18 benefits from enhanced convenience in managing operations and transportation.
Many input materials need to be imported from outside suppliers, leading to increased costs as well as not ensuring a stable supply.
Production lines are modern but not updated continuously, promptly and still. Not good if compared to competitors in the same industry.
The headquarter as well as factories are far from the city center, leading to inaccessibility to many customers, in addition to many difficulties in product distribution.
Marketing activities are hardly implemented, or only 1 or 2 small activities. Retail affects the company's reputation, brand awareness as well as directly affects sales
Competitors are not many, but they are large scale competitors leading to fierce competition in the cement market.