Thethesistitle
Necessityofthethesis
Intheperiodof economicrenovationreform (often knownas“DoiMoi
Vietnam's agricultural sector has garnered global recognition for its food production and exports, particularly in rice, coffee, and cashew nuts Following a severe food crisis after the war ended in 1975, the industry has significantly evolved since 1989, meeting domestic demands and expanding into international markets This success is attributed to government policies focused on agricultural development and the adoption of scientific methods and fertilizers in farming practices However, despite these achievements, Vietnam remains a developing agricultural nation, with farmers often relying on limited personal experience rather than advanced knowledge To enhance both the quantity and quality of its agricultural output, Vietnam requires a comprehensive agricultural revolution to keep pace with the rapidly advancing global economy.
Ino r d e r t o p r o m o t e a g r i c u l t u r e d e v e l o p m e n t b o t h i n q u a n t i t y a n d q u a l i t y basis,theindustryneedsthesupportandcontributionofalleconomicc omponents,o f whichtheimportantroleoffertilizerproductionenterprisesisundeni able.Fer til izer sfacilitateplantstohavehighproductivityandqualityproducts.Fertili zercompaniesm u s t m a n u f a c t u r e d i v e r s i f i e d a n d g o o d p r o d u c t s t o m eett h e marketn e e d s ThiswouldbearesponsibilityaswellasachallengeforPVFC CowhenthefirmprovidesureaandNPKfertilizersinthemarket.
Before2006,theproductionoffertilizercompaniesdidnotmeettheneedoft he m arket;thus,themarketingactivitieswerenotpaidenoughattentionand promotedbyt h e f e r t i l i z e r c o m p a n i e s S i n c e V i e t n a m t o o k p a r t i n Wo rldT r a d e O r g a n i z a t i o n (WTO)andothereconomicorganizationstogetherwith thego v e r n m ent’sopenpolicy,thefertilizermarkethasbecomeveryactiveande ffervescent withtheparticipationofbothfertilizerproductionandimportfirms.Astheres ult,enterpriseshavetopayattentiontothemarket,customersandinordertoincreasethema rketsharetheyhavetoapplytheartofmarketingmixwithproduct,p r i c e , placeandpromot ionstrategies.
PetroVietnamFertilizerandChemicals CompanyjoinedtheNPKferti lizer marketafterthebigplayersnamelyBinhDien,VietnamJapan,LamThao,etc.;thec ompletionisratherfierce.To draw customer’s attractionand convincethemtouset h e c o m p a n y products,PVFCComusthavea rightmarketingstrategyandmakethemostofPVFCCo’scompetitiveadvantagestobr eakintothetargetmarket.Tothisend,i t i s n e c e s s a r y fort h e c o m p a n y toc a r e f u l l y analyzet h e macroa n d i n d u s t r y e n v i r o n m e n t andthenmapouttheapprop riatemarketingsolutionsforNPKfertilizersofPVFCCo.Alltheabove- mentionedcontentsarecoveredinthethesis.
Researchaimandobjectives
To achieve the study's objectives, it is essential to utilize the PEST model and Five Forces analysis to assess the macro-environment and the NPK industry landscape Additionally, evaluating the target markets of competitors and PVFCCo will provide valuable insights Based on the study results, it is crucial to conduct a post-purchase evaluation of customer satisfaction, identifying key characteristics that influence purchasing decisions and the information sources customers rely on before making purchases Furthermore, a marketing mix analysis will help uncover the strengths and weaknesses of competitors in terms of price, product, place, and promotion Finally, the study should propose effective marketing solutions for PVFCCo's NPK fertilizer products.
Researchquestions
Whataretherightmarketingsolutions forPVFCCo’sNPK productinp e r i o d 2012-2014? ii Minorresearchquestions:
Whatmakescustomerssatisfied anddissatisfied whentheypurchasedt h e company’sNPKproducts?
DatasourcesandResearchmethodology
Theresearchmethodologyi s usedinthisthesisiscasestudyandthismet ho do l og y meetst h e r e s e a r c h ’ s o b j e c t i v e D a t a u s e d i n t h e t h e s i s w e r e takenf r o m b o t h r e a l i s a b l e s e c o n d a r y d a t a a b o u t P V F C C o ’ s o p e r a t i o n c o l l e c t e d i n t h e p r o c es s o f w o r k i n g w i t h P V F C C o a n d p r i m a r y d a t a c o l l e c t e d f r o m i n t e r v i e w i n g ag ents andcustomersintargetmarketaboutitsprod ucts,prices,placesandpromotionsandfromauthor’sobservation.
Scopeoftheresearch
Theresearchf o c u se s o n evaluating thesituation ofth e VietnamNPKmar ket,t h e n p r o p o s e s a p p r o p r i a t e marketings o l u t i o n s f o r P V F C C o ’ s
2014isthetargetmarketpenetrationstage;itisa hardstagesincePVFCComustconvincedistributors,customerstousetheirp r o d u c t s T o g a i n c o m p e t i t i v e a d v a n t a g e s w h e n i n t r o d u c i n g N P K p r o d u c t t o t h e t ar g e t market,thethesismustfocusonthefollowingissues: i AnalyzethemacroandindustryenvironmentoftheNPKmarketusingPESTmodelan dPoter’sFiveForcesmodel. ii Analyzetherivals’marketingmixstrategies:product,price,placeandpromoti onstrategiestofindoutthestrengthsandweaknessesofrivals. iii ProposesomeappropriatemarketingsolutionsforPVFCCo’sNPKproductsinp eriod2012-2014.
Significanceoftheresearch
Thethesiscanbeusedasareferencedocumentforexperts,MBAstudents an d collegestudentsinresearching,teachingandstudying.
Structureofthethesis
Theconceptofmarketing
Therearenowalotofdifferentconceptstowards marketing.Manypeopl ewerefalsetoassociatemarketingashardsellingandsalespromotionasthetraditionalm arketingconceptheld“marketingisa performanceofbusinessactivitiesthatdirecttheflo wofgoodsandservicesfromproducerstoconsumers”.H e n c e , thetraditional ma rketingfocusedonly onconsumption a n d t h e marketingactivitiesaresourcedfromp roducers
Nowadays,marketingindustryhasdevelopedenormouslythatadministratorsh a v e tochangetheirawareness.Before,theenterprisessold“whattheyhave?”,butn o w theys ell“whatthemarketneeds?”whichmakesthemarketingconceptalignedw i t h thereality,ch angingfromseparatemarketingtomarketingmix.
Marketingh a s broughtthesubstantialeconomice f f e c t s onalltheaspectsoftheeconomy Itisanimportanttoolbothintheoryandrealityaswellasasciencethatk e e p s developi ngandfulfilling
Marketingscienceisa sciencethatstudiesthelawandcharacteristicsofcustomern e e d s t o w a r d s g o o d s , p r o d u c t s , s e r v i c e s i n t h e m a r k e t a n d thed e v e l o p m e n t o f a p p r o a c h e s t o f u l f i l l t he customern e e d s andmaximizet h e economice f f i c i e n c y i n t h e p r o c e s s o f p r o d u c t , d i s t r i b u t i o n , e x c h a n g e a n d co n s u m p t i o n
- Marketingisanartofdoingbusiness,istheprocessofprovidingtherightp r o d u c t s a ndservicestotherightpeople,attherighttime,intherightplacean dbytheright way.
“ T h e s o c i e t a l marketingc o n c e p t h o l d s t h a t t h e o r g a n i z a t i o n ' s t a s k i s t o d e t e r m i n e t h e n e e d s , w a n t s , a n d interestsoftargetmarketsand todeliverthedesiredsatisfactions moreeffectivelyandefficientlythancomp etitors,inawaythatp r e s e r v e s orenhancestheconsumer'sandthesociety'swell- being”.
Thismarketingd e f i n i t i o n i s b a s e d o n t h e e s s e n t i a l c o n c e p t s o f : d e m a n d s , n e e d s andwants,product,values,costsandsatisfaction,exchanges,transactionsan drel atio nshi ps, market,marketingandmarketers.
Inordertocollectthesuitabledata,adetailandefficientresearchdesigne dh as tobeformulated.Theresearchdesignformulationinvolvesthedecisionsofdatasources
Datac o l l e c t i o n : t h e c o l l e c t i n g i n f o r m a t i o n mustb e a c c u r a t e , honesta n d objective.Electronicdevicescanbeusedintheprocessofcolle ctingdatatosavetimeandminimizethecosts.
Researchershouldnotproposetotheboardofmanagersamarketingreportw h i ch isfulloffiguresandstatisticalmethods.Instead,majorfindingsrelating tod e c i s i o n makingshouldbehighlighted.Thelesstheboardofmanagershesitatesin makingdecision,themorepracticalandusefulthestudyis.
Theanalysisofmacroenvironmentandindustry
Themacroe n v i r o n m e n t analysisi s b a s e d onP E S T M o d e l w h i c h c o n t a i n s f o u r elements,i n c l u d i n g o f p o l i t i c a l , s o c i o - c u l t u r a l , e c o n o m i c a n d t e c h n o l o g i c a l f a c t o r Thismodelistoanalyzea ndexaminetheimpactsofkeymacrofactorsonb u s i n e s s activities
Thesearethedirectmacrofactorsthataffectthewholeeconomy.Enterpriseswill baseo n t h e analysiso f t h e impactt o mapo u t t h e s u i t a b l e p o l i c i e s a n d b u s i n e s s activities. a Politicalfactors:
Politicalf a c t o r s i n c l u d e g o v e r n m e n t r e g u l a t i o n s a n d l e g a l i s s u e t h a t d e f i n e b o t h formala n d i n f o r m a l r u l e s u n d e r w h i c h t h e f i r m musto p e r a t e T h e s e f a c t o r s c a n affecttheexistenceanddevelopmentofanyindustrieswithinoneeconomy.Firmsh avet o obeya l l t h e r e g u l a t i o n s a n d l e g a l i s s u e o f t h e t e r r i t o r y o r l o c a l ad m in i st r ati v e unitwheretheyaredoingbusiness.
Politicalstability:Companiesalwaystakeintoaccountthestabilityofpoli tics,diplomaticsinceastablepoliticalenvironmentwillcreatefavorableconditi onsfordoingbusiness.Incontrast,aninstablepoliticalcontextandconflictsh a v e anegati veinfluenceonthebusinessactivities.
Taxpolicy:t h e t a x a t i o n p o l i c y one x p o r t s , i m p o r t s , c o n s u m p t i o n , in come,e t c willaffecttherevenueandprofitofacompany.
Lawsystem:lawonenterprises,investment,laborcode,anti-monopoly,anti- dumping,etc.alsohaveanimpactonbusinesses.
Policies:thegovernmentpoliciescanhavenegativeorpositiveenterprisesastheyc a n c r e a t e b o t h t h e o p p o r t u n i t i e s a n d c h a l l e n g e s T h e g o v e r n m e n t p o l i c i e s includepolicyoncommerce,industrydevelopment,economicdevelopment, taxes,c o m p e t i t i o n regulation,consumerprotection,etc. b Economicfactor:Enterprisesneedtopayattentiontobothshort- runandlong-r u n economicfactorsaswellasthegovernmentinterventionontheeconomy.
Governmente c o n o m i c policy:b a s i c salary,e c o n o m i c d e v e l o p m e n t st rategies,incentivesforindustry:taxreduction,subsidies,etc.
Futuree c o n o m i c p r o s p e c t s : g r o w t h r a t e , G D P g r o w t h , i n v e s t m e n t t o G D P ratio. c Socio- culturalf a c t o r : e a c hc o u n t r y a n d t e r r i t o r y h a s i t d i s t i n c t i v e s o c i o a n d c u l t u r a l valueswhichbecomethecharacteristicsofconsumersintheregion.
Culturalvaluesaretheessentialvaluesthatshapethesocietyandremainitsex is t en c e anddevelopment.Hence,theculturalfactorsarenormallyp r o t e c t e d care fullyandcloselyinthelargescale,especiallythespiritualvalues.
Togetherwithculturalfactors,sociofactorshavealsobeenpaidattentiontoby enterpriseswhentheydomarketresearch.Thesesociofactorswillsegmentthec o m m u n i t y intodifferentcustomergroups.
+Livingconditions d Technologicalfactor:Theworldhasbeenintheprocessoftechnologyrev olution.A l o t o f n e w t e c h n o l o g y a r e i n t r o d u c e d a n d a p p l i e d i n p r o d u c t s a n d services.Datingbackto30yearsa g o , computersarejustservedasa calculatingt o o l , butnowtheycanworkindependentlylikeaperson.Therewerealotoffilmc a m e r a s a v a i l a b l e i n thep a s t b u t n o w itisi m p o s s i b l e t o f i n d af i l m maki ngp r o d u ce r f o r c a m e r a s E s p e c i a l l y i n t h e f i e l d o f informationt e c h n o l o g y , m o d e r n mediatechnologyhasbridgedthegeographicgapnationwideandworldwide.
In the 1960s and 1970s, Japan gained global recognition for its remarkable economic breakthroughs, driven by significant investments in research and development (R&D) activities The country's focus on human resources and new technologies has established it as a leader in R&D investment relative to GDP The collaboration between government and businesses to advance technology and materials has had a positive impact on the economy Additionally, the integration factor plays a crucial role in shaping the macroenvironment in which firms operate, influencing their overall success.
Globalizationisanundeniabletrendwhichoffersalotofopportunities f orenterprises.Globalizationdrivesupthecompetitivenesssincetherearemanyrivalsco mingfromallovertheworld.Theglobalizationurgesbusinessestoadjust suitablytowardscomparativeadvantages,regionalandglobaldistributionoflab orf o r c e
Mostimportantly,intheglobalizationprocesstradetariffaregraduall yliftand enterprises havetheopportunitiesto dobusiness with partnersfromallover theworld.T h i s meanst h a t customersn o w n o t onlyc o m e f r o m t h e d o m e s t i c mar ketw h e r e thecompaniesoperatebutalsofrominternationalmarket.
Porter’sFiveForcesModelwasfirstintroducedonTimeHarvardBusiness Reviewmagazinedated1979,addressing2factorsthatbringprofitsforbusine ss.T h i s model,alsonamed“thefiveforcesofPorter”,isconsideredaneffective andu s e f u l tooltounderstandthesourceofprofits.Moreimportantly,thismodelp r o v i d e s theenterprisescompetitionstrategiestohelpmaintainorboosttheprofit.5 f orceshereincludesuppliers,rivals,buyers,newentrantsandsubstituteproductsand services.
Numberof s c a l e of t h e s u p p l i e r s : Numberoft h e s u p p l i e r sw i l l dec ide t he competitivepressure,theirbargainingpowerwiththebusiness.Ifthereareonlyfewdomin antsuppliersinthe market,thatwillintensify thecompetitive pressure anda f f e c t thewholebusinessactivitiesoftheindustry.
(Source:David,Aaker,Hoboken,Jo hn Wiley(2005),Strategicmarketingmanagement)
Presenceofthesubstituteinputs:wewillstudytheinputsthatcansubstitutethes uppliers’inputandthesuppliers’witchingcost.
Informationaboutsuppliers:Currently,informationisalwaysthefactorthatpr omotestradingdevelopment.Thesuppliers’informationhasgreatimpactontheen terprise’ssupplierselectiondecision.
In everyindustry,suppliers often exertcertainpressureon enterprises iftheyh av e economicsca le, r a r e a n d va lu ab ler eso ur ce T h e r e f o r e , sm al lsu pp li ers (farmers,h a n d i c r a f t s m e n , e t c ) h a v e limitedb a r g a i n i n g p o w e r ; d e s p i t e theya r e largeinnumber. b Bargainingpowerofbuyers:canbeseenin
These2groupsbothexertpressureofprice,productsandservicequalityonth ecompanyandtheyaretheones whodrivethecompetitionin themarketthroughp u r c h a s e decision.
Similart o t h e b a r g a i n i n g p o w e r o f s u p p l i e r s , w e a l s o n e e d t o t a k e i n t o con si d erat io n factorsthataffectbargainingpowerofbuyers.
Distributorsinfertilizerindustryhaverighttonegotiateaboutprices,productq u a l i t y a s w e l l a s marketingp o l i c y w i t h t h e p r o d u c e r s b e c a u s e t h e r e a r e ma nyf e r t i l i z e r p r o d u c e r s i n t h e market,t h u s d i s t r i b u t o r s h a v e p o w e r i n s e l e c t i n g t h e i r p a r t n e r s c Threatfromnewentrants:
AccordingtoPorter,potentialrivalsarecompanieswhichhaven’tenterth emarket,b u t c a n h a v e p o s s i b l e impacto n t h e i n d u s t r y in t h e f u t u r e T h e p r e s s u r e f r o m newentrantsdependsonthefollowingfactors:
+Theattractivenessoftheindustry:thisfactorcanbeseeninrateofprofit,number ofcustomers,andnumberofexistingcompanies.
+Ba rr ie rs t o entry:a r e f a c t o r s th at maket h e ent ra nce mored i f f i c u l t an d costly.
3 Commercialfactors:distributionnetwork,brandname,customers,etc.
4 Resource:inputs,patents,humanresources,governmentregulations,etc. d Threatfromthesubstituteproducts:
(Source:M i c h a e l P o r t e r (2001),C o m p e t i t i v e s t r a t e g y)substituteproduc tsrefertoproductsinotherindustries.Totheeconomist,athreato f substitutesexistswh enaproduct'sdemandisaffectedbythepricechangeofasubstituteproduct.Aproduc t'spriceelasticity isaffectedbysubstituteproducts- asmoresubstitutesbecomeavailable,thedemandbecomesmoreelastic(itmeansones m a l l changeintheproductpricealonecouldleadtobigchangeindemand)sincecusto mershavemorealternatives.Aclosesubstituteproductconstrainstheabilityo f f irmsinanindustrytoraiseprices.
ThecompetitionengenderedbyaThreatofSubstitutecomesfromproductso u t s i d e theindustry.Inthedisposablediaperindustry,clothdiapersareasubstitutean d t heirpricesconstrainthepriceofdisposables. e IntensityofRivalry
Currently,t heV ie tna m fertilizer marketh a s ma n y competitors.Ma rke t sh a re s a r e heldbylargefirmssuchasBinhDien,Lam
Thao,JapanVietnam,BaconcoandNamS a o It’s hard forsmallenterpriseswith limitedfinancialcapabilitya n d technologytocompetewiththem formarketshares.Whenfirmscompetebyp r o d u c t qualityandprice,buyersaretheone whoreceivethemostandbeingmorer e s p e c t e d
Target marketsegmentation,selectionandpositioning
Thes t r a t e g i c managementp r o c e s s i n c l u d e s thef o l l o w i n g ste ps:
(Source:SallyD i b b (2006),M a r k e t S e g m e n t a t i o n )analyzing,s e l e c t i n g , i m p l e m e n t i n g a n d evaluatingandcontrollingthemarketingstrategy.Atfirst,theent rantmustanalyzet h e market, rivalry,doSWOTanalysis(strength,weakness,opportunityandthreat).T h e n , t h e c o m pa n y selects t h e marketingp l a n s u itablew i t h t h e c o m p a n y ’ s conditions,m a r k e t s t a t e , p u r p o s e a n d ability.I n t h e implementationp r o c e s s , t h e companyn e e d s t o m o n i t o r i n g , e v a l u a t i n g , t a k e c o r r e c t i v e a c t i o n i f a n y o r e v e n reanalyzeandreselectamoresuitablemarketplan.
Marketmadeu p o f a l a r g e numbero f peoplew i t h d i f f e r e n t geographic, b e h a v i o r a l , p s y c h o g r a p h i c , d e m a n d a n d f i n a n c i a l a b i l i t i e s , etc.T h e r e f o r e , markets e g m e n t a t i o n i s d i v i d i n g t h e marketi n t o g r o u p s o f buyersw i t h s i m i l a r w a n t s orn e e d s T h e p u r p o s e i s t o c r e a t e markets e g m e n t a t i o n w i t h s i m i l a r demands.T h i s w i l l helpthecompanyseecustomerstructures,selectt her ig ht targetmarket,andr e a l i z e thedefectivesofthe markettom ax im ize t heprofit.
(Source:BrianT oy ne, P e t e r G.P.Walters(1989),GlobalMarketingManagement)
+G e o g r a p h i c s e g m e n t a t i o n : t h e c o m p a n y n e e d s t o d i v i d e t h e m arketbyr e g i o n : country,state,province,cityordistrict.Thecompanycanapplyonestrategy forseveralregionsbutitneedsconsiderthespecificneedsandwantsofeachregion.
+P s y c h o g r a p h i c s e g m e n t a t i o n : buyersa r e d i v i d e d i n t o d i f f e r e n t g r o u p s based onsocial classes,lifestyleorattitudes (enthusiasm,arbitrary ).Buyersinthesamegroupcanhavedifferentpsychographicfeatures.
Socialclassdeterminesoneperson’stasteofcars,clothes,furniture,leisur eactivities,habits,retailerselection,etc.Somecompaniesdesignaspecificproduct o r serviceforeachsocialclass.People’sinterestinsomethingaffectstheirlifestylea n d t h e consumerg o o d s r e f l e c t t h e i r lifestylea s w e l l T h e r e a r e morea n d morec ompaniessegmentthemarketbasedonbuyers’lifestyle.
Behaviouralsegmentation:buyersaredividedintodifferentgroupsbasedontheirk n o w l e d g e , attitude,useandrespondtowardtheproducts.Itisbelievedthatb eh av i o u r al segmentationisthebestwaytosegmentthemarket.
Reasontobuytheproduct:thebehaviours herecanbepatternofbuyingoru singproducts.Behavioural segmentation canhelpscompaniesraise thepro ductsconsumption.F o r e x a m p l e , p e o p l e o f t e n h a v e o r a n g e j u i c e i n b r e a k f a s t O r a n g e juiceproducershouldadvertisethatpeopleshouldhaveorangejuiceinothermealso f the daysuchaslunchordinner.
Benefits o u g h t : a n o t h e r e f f e c t i v e k i n d o f m a r k e t s e g m e n t a t i o n isb e n e f i t s e g m e n t at i o n t h a t i s d i v i d i n g a marketa c c o r d i n g t o t h e b e n e f i t t h e y s ee k f r o m a p a r t i c u l a r product(quality,service,economical ).
Userstatus:manymarketscanbesegmentedbygroupsofuser,suchasfirstt i m e u s e r s , r e g u l a r u s e r s o r p o t e n t i a l u s e r s F r o m th at t h e c o m p a n y ca nd e s i g n a suitablemarketstrategy.Thepositionofthecompanyinthemarketalsoaffectsitsgo a ls Themarket leaderwouldfocuson potential customers w h i l e smaller co mpanieswouldfocusonexistingcustomers.
Usager a t e : t h e m a r k e t c a n b e d i v i d e d i n t o g r o u p s o f l i g h t u s e r s , m e d i u m usersa n d h e a v y u s e r s T h e h e a v y u s e r a c c o u n t s f o r h i g h p e r c e n t a g e o f p r o d u c t c o n s u m p t i o n Thisgroupofusersoftensharesdemographic,psycho graphicfeaturesan d mediausinghabits.
Brandloyalty:h a r d c o r e loyal:T h e u s e r s a l w a y s buyp r o d u c t s fromo n e b r a n d name.Splitloyal:thebuyerswhoareloyalwithtwotothreebrands.Currently ,therearemoreandmorebuyersuseproductsfromtwotothreea c c e p t a b l e andeq uivalentbrands.
Readinesstobuy:thissegmentincludesbuyerswith different readiness levelt o buyaproduct.Somebuyersknewabouttheproduct,someheardaboutit,some c a r e d , somewantstohaveitandsomehaveintentiontobuyit.Thisgroupofbuyerh asgre ateffectsondesignmarketingplan.Therefore,marketingplanmustraisethea w a r e n e s s bya d v e r t i s i n g w i t h s i m p l e i n f o r m a t i o n T h e n a d v e r t i s i n g s h o u l d h ighlightthebenefitsoftheproductorservice.Ingeneral,marketingplansho uldad ap t toreadinesslevelofbuyers.
Attitudet o w a r d t h e p r o d u c t : t h e r e a r e f i v e maina t t i t u d e s n a m e l y : happy,g o o d , indifferent,badandhate.
Demographic segmentation, as outlined by Michael John Baker (2001), involves categorizing the market based on demographic characteristics such as gender, age, income, occupation, race, and religion This method is the most widely used form of segmentation because buyers' needs and preferences are often closely tied to these demographic features Additionally, demographic segmentation is easier to implement compared to other types of segmentation Even when considering non-demographic factors like personality, it remains essential to reference demographic characteristics to assess the scale of the target market and determine the suitability of media for reaching potential buyers.
Atargetmarketisagroupofcustomersthatthebusinesshasdecidedtoaimi t s mar ketingeffortsandultimatelyitsmerchandise.That’salsothemarketwhichissuitablew i t h t hecompany’sa b i l i t y a n d i s e x p e c t e d t o b r i n g a h i g h e c o n o m i c effic iency.(Source:PhilipKotler(2001),Aframeworkformarketingmanagement)
- Thetargetmarketisgroupofbuyerswhosedemandsarenotyetmet,andthe c o m p a n y ist h e o n e t ha t c a n meett h os e d e m a n d s T h e d e ma n d s o f t h e t a r g e t ma rketmatchwiththepossibleoutputofthecompany.
Inmarketing,positioninghascometomeantheprocessbywhichmarketerstryt ocreateanimageoridentityinthemindsoftheirtargetmarketforitsproduct,b r a n d , oro rganization.
( I m a g e i n t h e m i n d s oft h e c u s t o m e r s i s a c o m b i n a t i o n o f perceptio n andevaluation ofbusinessand thesupplied productsandservices.Itisacollectiono f i m p r e s s i o n s , f e e l i n g s a n d c o n c e p t s t h a t c u s t o m e r s h a v e a b o u t t h e products orservices.)
- Differentiationtohelpcustomersdistinguishthecompany’sproductsandser viceamongtheothersoftherivals.(Differentiationbyquality,imageorp e r s o n n e l )
Thee n t r e p r e n e u r m u s t b e a w a r e o f t h e differenceso f t h e e x i t i n g b r a n d namesa n d h o w theya r ea d v e r t i s e d a n d p r i c e d , e t c I f “ P h u MyN P
K ” s e l l s t h e customersk i n d s o f f e r t i l i z e r s w h i c h a r e i n nod i f f e r e n c e w i t h t h e o t h e r f e r t i l i z e r p r o d u c t s , thecustomerwouldhavenoreasontoswitchtoit.Pr oductisacollectionoffeaturesthatcustomersaccept.
Companymustlearnwhatcustomerswantoutoftheproduct,whatfeatur emaket h e m w i l l i n g t o s p e n d m o n e y f o r T h u s , t h e c o m p a n y c a n a s k t h e t a r g e t customersdescribewhataspects,featurestheywanttohaveinthe products,whatmakesthemreadytospendmoneyfor.
Positioningistoensurethattheproducthasadesiredpositioninthemarketa n d inth etargetcustomers’mindsanddonotcausedoubtsorbeingtoodifferentwi th pro ductsofotherbrands.
Thisr e q u i r e s t h e c o m p a n y t o d e c i d e h o w mucht o d i f f e r e n t i a t e a n d w h i c h diff eren t iat io n isforcustomers.Eachdifferentiationwouldcause costforthec o m p a n y a s w e l l a s t h e b e n e f i t f o r c u s t o m e r s T h e r e f o r e , t h e c o m p a n y c a r e f u l l y d e c i d e s howtheywilldifferentiatefromtherivals.Thediffe rentiationshouldmeett h e f o l l o w i n g r e q u i r e m e n t s :
Everycompanyhasmanyrivalsand“PhuMyNPK”isnoexception.Thebestw a y t o f i n d o u t h o w t o d i f f e r e n t i a t e i s t o l e a r n w h a t a r e d e c i d i n g a s p e c t s w h e n customersselectfertilizers.Theresearchercaninterviewthepotentialcustomers.
- Brandna me c o m p e t i t i o n : t h eco m p a n y shouldt a ke t h e o t h e r c o m p an i e s, whicharese ll in g sametypeof pr od uc ts to samecustomer wi th eq u iv ale nt p r ic e s , astheirrivals.
- Intra- brandc o m p e t i t i o n : t h ec o m p a n y sh ou ld t a k e a l l c o m p a n i e s , w h i c h a r e producingsametypeofproducts,astheirrivals.
- Functioncompetition:thecompanycantakeallcompanies,whicharep r o d u c i n g productwiththesamefunctions,astheirrivals.
- Generalcompetition:t h ec o m p a n y s h o u l d t a k e a l l companies,w h i c h a r e targetingsamecustomers,astheirrivals.
MarketingMix(4P)
Marketingisa plannedmixofthecontrollableelementsofap r o d u c t ' s marketingplancommonlyterm edas4Ps:product,price,place,andpromotion.
Productist h e m o s t b a s i c e l e m e n t i n t h e m a r k e t i n g m i x T h e p r o d u c t c a n have tangiblefeatures including quality,design,function,package and brand. Itcanal so haveintangiblefeaturessuchasdeliveryservice,warranty,training,etc.
Priceisanolessimportantelementofmarketmix,whichincludes:wholes a l e andretailprices,discount,credit.Pricemustbeinconsistencewiththevalue customersreceivedandbecompetitive.
Placeisoneofthemajorelementsofmarketingmix.Thisreferstohowan organisationwilldistributetheproductorservicetheyareofferingtotheenduser.Th e companymustunderstandtheimportanceofdistribution, andselecttherigh ti n t e r m e d i a r y foreffectivedistribution.
Promotioni s a l l a c t i v i t i e s t o c o m m u n i c a t e t h e p r o d u c t ’ s a d v a n t a g e s a n d c o n v i n c e targetcustomertobuythatproduct.Promotionmayinclu demanyactivest o r e a c h t h e t a r g e t market.C o m p a n y m u s t s e t u p a c t i v i t i e s s u c h a s , a d v e r t i s i n g , promotion,publicrelation,directmarketing.
Fromt h e s e l l ’ s p o i n t o f v i e w , 4 P isa m a r k e t i n g t o o l w h i c h c a n h a v e i m p a c t o n buyers.F r o m t h e b u y e r ’ s p o i n t o f v i e w ,m a r k e t i n g t o o l s a r e d e s i g n e d t o b r i n g b e n e f i t s tothem.RobertLauterbornthoughtthat4Pistomeetcu stomers’4C.Thec o m p a n y wantstosurvive,mustsatisfythecustomers’demandsbyreas onablepricea n d product,andbringproductstotheirnotice.
Chapter1 h a s s u m m a r i z e d t h e marketingtheoryw h i c h w i l l b e a p p l i e d i n c h a p t e r 2’sandchapter3’sanalysis.Thetheory thathasbeenmentionedinchapter1 isasfollow:
PESTmodelisusedtoanalyzemacro- environmentaspectssuchaspolitics,economy,societyandtechnology,whichcanh aveeffectsonthecompany’sb u s i n e s s environment.
Theanalysiso f F i v e F o r c e s model:r i v a l s , customers,s u p p l i e r s , p o t e n t i a l e n t r a n t s andsubstituteproducts.Thesefactorswillhaveimpactonbusi nessen v i r o n m e n t andmarketingplanoftheenterprise.
Foure l e m e n t s o f m a r k e t i n g mixn a m e l y : p r o d u c t , p r i c e , p l a c e a n d promotion.Theywayt o c o m b i n e t h e s e 4 elementsi n d e s i g n i n gt h e c o m p a n y ’ s marketingplan.
Processof establishmentanddevelopment
PetroVietnamFertilizerandChemicalsCompany(PVFCCo.),asubsidiaryofV i e t n a m n a t i o n a l O i l a n d G a s C o r p o r a t i o n ( P e t r o V i e t n a m ) , o f f i c i a l l y c a m e i n t o operationonJanuary1st,2004.Thecompany’sdutyistotakeoverandope ratethePhuMyFertilizerPlant.
S d o l l a r p ro j ect , i s l o c a t e d o n a n a r e a o f 6 3 4 h e c t a r e i n P h u My1 I n d u s t r i a l Z o n e , T a n ThanhDistrict,BaRia–
VungTauProvince.Theplantwasengineeredandconstructedwithlicensedtechnolog iesfromDanishHaldorTopsoeandItalianS n a m p r o g e t t i toproduceAmmonia(4 45,000tons/yearcapacity)andprilledurea( 7 4 0 , 0 0 0 tons/ yearcapacity).Theseareworldleadingtechnologieswiththeclosedmanufacturingpr ocessusingnaturalgas,airasfeedstocktoproduceammoniaandu r e a Byvirtueofsu chtheprocessandthefacultytoproduceelectricitypowerandmoisturebyitself,theplant cankeepitsoperationuninterruptedeveninthecaseofdisruption ofthenationalelectricit ypowergrid.
The Phu My plant officially commenced operations on September 9, 2004, and consistently runs at full capacity, managed by approximately 1,100 Vietnamese staff in operations and maintenance By the end of 2010, the plant had produced nearly 4 million tons of urea and successfully captured carbon dioxide (CO2) emissions, contributing to environmental protection while increasing its annual urea capacity to 800,000 tons per year.
Thankstotheeffectiveandprofitableoperation,thestaff’slivingconditionsisg ettingbetterandbetter.PhuMyFertilizer’sproductshavegainedgreat credit ability fromthefarmers.PhuMyFertilizerisproudoffollowingCertificates,DiplomaAwardandGoldmedalforthequality:
- TheTitle of“TheGoldenBuffaloof Vietnam”in2006awardedbytheVietna meseFarmerAssociation.
- TheTitle of“TheFarmer’sFriendBrandname”for thesix consecutiveyearsfrom2004to2010awardedbytheNationalAppraisalCommittee
Apartfromt h e q u a l i t y of P h u MyF e r t i l i z e r a n d i t s c o m p e t i t i v e p r i c e , t h e marketingstrategyhasbeenimplementedinaprofessionalmannertocreateanedgef o r t hec om pan y top osi ti on Ph u MyFertilizeras lead in gf er ti li ze r brandnameo f Vietnam.PhuMyF e r t i l i z e r ’ s p r o d u c t i o n c a p a c i t y , u p t o n o w , h a s a c c o u n t e d f o r 4 0 %
ProductionandoperationperformanceofPVFCCo
Overthelastsixyears,PVFCCohasreachedremarkableachievementsinsafefact oryrunning,effectiveoperationperformance,contributinginstabilizingu r e a priceindome sticmarket.
1,PVFCCo’sproductionandoperationperformanceisveryhealthy.Totalrevenuekeepstheup wardincreaseovertheyearswithVND3 , 9 2 8 , 4 5 4 millionin2007toVND6,998,852millio nin2010.Astheresultofincreasingtotalrevenue,netprofitalsogoesupcontinuouslyoverthel astfouryearsw i t h VND1,329,480millionandVND1,703,175millionin2007and2010,re spectively.ROAandROEindicatorsarealsoveryhighcomparedtothatoftheindustry.
Macroenvironmentanalysis
Themovementtowardsanopenandmulti- lateralcooperationbetweenV i e t n a m a n d o t h e r c o u n t r i e s , c u r r e n t l y , h a s becomemoree f f e c t i v e T h e a c c e l e r a t i n g relationsandcooperationwi thAsiancountries,China,Korea,Japanan dRussia make it morefavorableforVietnamtoimportfertilizer’smaterialsandp r o d u c t s fromAsean+ 3countries.
Ontheotherhand,otherinternationalfertilizercompaniesalsohaveagoodc h an c e t o i n v e s t i n a n d e x p o r t f e r t i l i z e r s t o Vietnam,r a i s i n g a t h r e a t o f f i e r c e c o m p e t i t i o n indomesticmarket.Therefore,everye n t e r p r i s e mustma poutasuitablecompetitionstrategywhichcantapourinnerstrengthsandpotent ialsasw e l l asse izea ll th e o p p o r t u n i t i e s ar isi ng f r o m the ope na nd m u l t i - l a t e r a l cooperation. b) Astablepolitics
Vietnam’ss t a b l e p oliticsi s c o n s i d e r e d a s a f a v o r a b l e conditiont o a t t r a c t f o r e i g n investorstoparticipateinfertilizerindustryandcooperatewi thdomesticp r o d u c e r s Vietnamhasrecentlys e e n asignificantincreaseinforei gndirectinvestment(FDI)inflows,whichdemonstratedtheforeignpartners’ap preciationo f ourpoliticalstability,cooperationopportunitiesandagoodeconomicoutlook.
Althought h e g o v e r n m e n t , recently,h a s madea g r e a t e f f o r t t omakea d m i n i s t r a t i o n p r o c e d u r e s moree f f e c t i v e , yettheree x i s t t h e s h o r t c o m i n g s , o v er l a ps andinflexibility.Thesepartiallyhassletheimplementationofinvestmentp r o j e c t s ingeneralandfertilizerproductionprojectsinparticular. d) Resolutiononagriculture,ruralareasandfarmers
Despitethepositiveeconomicgrowth,Vietnameseagricultureisfacingm a n y d ifficulties,including:lowcompetitiveness, downwardcultivationmethod sa n d thepoorlivingconditionsoffarmers.
Afteratimeofinadequateattention,Vietnam’sGovernmentandPartyissuedth e R e s o l u t i o n o n a g r i c u l t u r e , r u r a l a r e a s a n d farmersi n o r d e r tos o l v e a l l t h e majorp r o b l e m s i n a g r i c u l t u r e i n d u s t r y Thisp o l i c y i s tot a c k l e t h e remainings h o r t c o m i n g s i n a g r i c u l t u r e , r u r a l a r e a s a n d w i t h t h e f a r m e r s Then,t o t h e n e x t st e p , w e n e e d t o m a k e t h e f u l l u s e o f agriculturalr e s o u r c e s , a c c e l e r a t e thegovernment’ssupport,applyscientificandtechnicalachiev ementsandputthef o c u s onhumanresources.
TheResolutiononagriculture,ruralareasandfarmersisthepremiseforthei m p r o v e m e n t ofVietnameseagriculture,farmers’lifeandruralareas.Ifthe implementationof theResolutionispaidenoughattention,Vietnameseagriculturewi l lharvesttheoutcome sinthenext5-
10yeartime.Thispolicywillhelpfarmersu p g r a d e thecultivationknowledge;he nce,farmerswillchangetheintensityandmethodsofusingfertilizers.
Vietnamisanagriculturalcountry.Therefore,theproductionandexportof agriculturalpr od uc ts playsani mp or ta nt role inenhancing agricultural andec onomicg r o w t h V i e t n a m , recently,h a s b e e n emerginga s a s t r o n g e x p o r t i n g c o u n t r y ofagriculturalproductsintheregionalandinternationalmarket.
Vietnam’smainexportingagriculturalproductsincludesrice,coffeebe ans,r u b b e r , cashewnutsandpepper.
Thea g r i c u l t u r a l g r o w t h a n d e x p o r t s h a s a d i r e c t e f f e c t o n t h e d e m a n d f o r f e r t i l i z e r s i nVietnam T h e exp or ti ng market’sq ual it y requirement sandp ro du ct criteriaputthefocusonagriculturalcultivationprocess,ofwhichtheapplicationofac cu r at e fertilizerdoseisakeyfactortothedevelopmentoffertilizerindustry
Tod a t e , V i e t n a m h a s j o i n e d a numbero f r e g i o n a l a n d i n t e r n a t i o n a l economicorganizations,includingAFTA,WTOandASEAN+3,whichwillbringb o t h theopportunitiesandchallengestothecountryintheupcomingyears.WTO’saccessi onis ake y factortopromotef r e e tradebyceasingthetariffandn o n - t a r i f f t r a d e b a r r i e r t o c r e a t e f a v o r a b l e c o n d i t i o n s t o c i r c u l a t e p r o d u c t s a n d servicesnationwidea n d worldwide.T h e e l i m i n a t i o n o f t a r i f f b arriersmakesite a s i e r forVietnamfertilizer companiestoimportmachinery,equipment;however,a t thesametimeitposesathreattha ttheregionalfertilizermaterialsandproductsa r e alsoimportedtoVietnam.
RightafterjoiningWTOin2007,theexportdutyonfertilizerwasdownto6.5%an desp ecially10%on NPK,butsoonin2009theexporttaxonNPKstood atonly6.5%.Thisfavorableroadmapgivesthechancesforthedomesticfertilize rcompaniestoaccessnewtechnologyandmarketbutitalsoincreasestheirinn erc o m p e t i t i o n
Duetothecurrenteconomicfluctuations,Vietnam’seconomyisfacingaloto f ch allenges.
Theinflationrateclimbedtothelevelof11.75%in2010andupto17%inthe firsthalfof2011,whichleadstothetighteningofmonetaryandslowsdownt h e domestici n v e s t m e n t a s w e l l a s e c o n o m i c g r o w t h A s t h e r e s u l t o f t h e t i g h t monetarypolicy,thelendingamountsarerestricted,causingalotofdifficultiesinag riculturalproductionandexport.Hence,ithasacertainimpactonthefertilizerdema ndinthedomesticmarket.
Upto2010,Vietnamhasapopulationof86.93million(source:IMF)withth eannualpopulationgrowthrateofover1.4%inthe2005-
2010period.TheagestructureofVietnamisquiteyoungwith45%peoplefrom20to 45yearsold.Int h e contextofincreasingpopulationgrowthrate,decreasingfarml andandraisingf o o d demandresultingfromtheimprovementoflivingstandards,t heagriculturalmarketispositivelyaffectedwiththeacceleratingproductivity.Asacons equence,t h e demandforfertilizerisalsoontherise.
Vietnamhas b e e n i nt h e p r o c es s of u r b a n i z a t i o n T o da t e , t h e co un tr y hasabo ut 700urbanareas,ofwhich5arefirst- classcities,44areprovincialcities,45aretownsandmorethan500aretownlets.T herateofurbanizationinVietnamisnowapproximately25%,whichisalowl evelcomparedtobothASEANregionandintheworld.However,itisforecaste dtobeintherangeof30%-45%inthenext10-20years.
Parallelwiththe issue ofurbanization,theemigrationfromthe ruraltourbanar easalsoraisesagreatconcernbecauseitreducesthelaborforce, affectingtheagriculturalp r o d u c t i o n I n t h e c o n t e x t o f d e c r e a s i n g a g r i c u l t u r a l r e s o u r c e s , yetincreasingagriculturalproducts,Vietnam posestheissue ofimprovingthe effectivenessofagriculturalcultivation,ofwhichtheeffectiveuseoffertilizersisan integralpart
Oneo f t h e c h a l l e n g e s f o r t he d e v e lopmento f Vietnam’sa g r i c u l t u r e i s t h e small- scale,fragmentedandscatteredwaysofcultivation.Seenfromthec u l t u r a l p e r s p e c t i v e , Vietnameseingeneralandfarmersinparticularbearthecu lt ural char acter is ti cso f s m a l l - s c a l e f a r m e r s : fragmentedt h i n k i n g , n a r r o w v i s i o n ; passivity,d e p e n d e n c e , complacency;i m p a t i e n c e , b a d b u s i n e s s p r a c t i c e , r i s k aversion;ar bitrarybehaviorsanddiscipline.
Thefarmers’awarenesshasasubstantialimpactoncultivationmethodsandfertilizerapp liance i n Vietnam.V ie t n a m e se f a r m e r s are n o w f a c i n g twobiggest problem sinusingfertilizers,including:
Thetechnologicalfactorsthat h a v e in fl ue nce onfertilizer i n d us t r y are na melyasf o l l o w s :
Theworldfertilizerindustryisnowfacingabigthreatofproductqualityandenviron mentpollution(i.e.wastewaterandemission,etc.).Therefore,inthelongrun, techn ologywillplayavitalroleinthesuccessoffertilizerproductioncompanies.F e r t i l i z e r p r o d u c t i o n t e c h n o l o g y i s c o n t i n u o u s l y e n h a n c e d t o makeb e t t e r products,raiseproductivity,savetheenergy,makethefulluseofmaterialsand min imizetheenvironmentpollution.
The manufacturing of fertilizers poses a significant risk to the environment due to the release of hazardous emissions such as SO2, SO3, H2SO4, and NH3 These pollutants can easily disperse into the atmosphere in gaseous and liquid forms, leading to soil and water contamination The presence of these toxic substances reduces oxygen levels in water and acidifies the soil, ultimately harming humans, plants, and livestock.
Withthefullawarenessoftheenvironmentalimpactoffertilizermanufact uring,thefertilizer factories needtoputthefocusontechnologyinvestment tominimizeandtreatwaste.Thewastetreatmentcanpartiallyputthep r e s s u r e on theinvestment sources.However,withagoodwastetreatmentsystemcompaniescanbuildupagoodimag einthemarket.
Parallelwiththeenvironmentalimpactoffertilizermanufacturing,thee x c es si v e andinappropriateuseoffertilizers(i.e.bothorganicandinorganic)c anal so p o l l u t e s s o i l , g r o u n d w a t e r , i r r i g a t i o n w a t e r a n d a i r a s w e l l asa f f e c t s t h e qualityofagriculturalproducts.Moreover,applyingfer tilizersinthewrongwayc a n quicklydegradeland,causingthelossofoneorsomenutrien ts.
Industryenvironmentanalysis
NPKisacompoundfertilizerincludingN,PandK,withvariousproportiondepe nded ontypesofcrops,soilsandusedformosttypeofcrops.SometypesofNPKin cludeadditional S,Mg,Ca anddi ff er en t chemicale leme nt s N PK isveryu sef u l andhelpstoincreaseproductivity;therefore,theusageofNPKinVietnamh a sbeenincreasingyearbyyear.
NP K, namelyJapanVietnamFertilizersCompany,BinhDienFertilizerJointStock Company,Baconco,etc.Theremainscanonlyproduce3colorfertilizer.
2 0 1 0 Thegrowingspeedisrelativelyhighofapproximately16%perannum.In2 0 1 0 , NPK demandwas2575000tons,whiletheproductionwas2315000tonsonly.
Aswecansee,thesupplyofNPKdidnotmeetthepresentdemand;therefore, V i e t n a m h e a v i l y d e p e n d s o n i m p o r t N P K t o s a t i s f y i n g t h e d o m e s t i c demand,ofwhichhighqualitytypeaccountsformostly.NPKimportisforecastedtobe continuedby2012.
2 7 / 0 9 / 1 9 9 5 w i t h totalinvestmentcapitaltobeUSD39,750,000.Itconsistsofpar tnerssuchas:SojitzCorporation(Japan) 75%,Vinachem(Vietnam)18.9%, andCentralGlassCo(Japan) 6.1%.
Itsfactory,locatedin GoDau IndustrialZone, LongThanhDistrict, Do ngNaiprovince,isthefirstmodernfertilizerplantinVietnam, specializesinproducingN P K compoundfertilizerwithcapacitytobe350,000tonsperyear.
Withnewandmoderntechnology,JVFalwaysensuretomanufacturekindso f h i g h q u a l i t y fertilizert h a t a r e s u i t a b l e t o a l l Vietnameses o i l a n d c r o p s , b r i n g farmersa b u n d a n t yields.I n p a r t i c u l a r , s t e a m g r a n u l a t i o n t e c h n o l o g y i s a g r e e n technologybecauseofnonepollutedenvironmentandharmlessnesst opeopleh e a l t h a) R&DCapability
TheJVF’scompoundfertilizerisproducingbysteamgranulationtechnolo gy,advancedustcollectionandwastewatertreatmenttechnology,closedmanu facturing plantfromingredientsinputtingtopackaging.
TheJVFfertilizerhasbestingredients,whichmeetallthequalitystanda rdr e q u i r e m e n t s , a r e suitable withboth long-terma n d short- termp l a n t s andVietnamesesoilsandcrops.Hence,NPKofJVFisthetrusttradem arktoVietnamfarmersnationwide.
Besides,JVFhasestablishedR&DDepartmentwithexperiencedengine erstoresearchanddevelophighqualityfertilizersformeetingthemarketdemand. b) SupplyCapability
Tomaintaintheproduction,thecompanymustreplyonbothdomesticand importedmaterialsbecausethedomesticssupplyalonecannotmeetitsdemandandq u a l i t y requirement.Thefactoryhascapacityof350thousandtonsperyear.
Duringthelast10years,JVF’soutputandsaleshaveincreasedyearbyyear,and thef actoryhasutilized90%ofitscapacity.TheJVFproductsalesnetworkhas beenexpanded fromtheMekongDelta, S o u t h Central, TayNguyen,a n d Centr alCo ast totheNorth,theNorthCentralandsomecountriesintheSouthEastAsia.
TheJapanVietnamFertilizer Company distributionnetwork covers mostof p r o v i n ce s withwell- developedagriculturesuchastheSouthwest,theSoutheast,TayNguyena n d t h e R e d R i v e r D e l t a B e s i d e d o m e s t i c m a r k e t , J V F a l s o e x p o r t s tom a n y countriesn amelyMalaysia,Indonesia,Myanmar,ThePhilippines,etc.
TheJapanVietnamFertilizerCompanyisajointventurebetweenBinhDienF e r t i l i z e r JointStockCompanyandSojitzandCentralGlassCorporation(Japa n);t h e r ef o r e , t h e managementmechanismf o l l o w s theforeigninvestedjointventure model.
Themanagementsystem ofJVFisprofessionallyorganizedwiththesupporto f theSojitzandCentralGlassCorporati on(Japan).Thetodayachievementsaretheremarkabler e s u l t o f t h e managementb o a r d i n c l u d i n g b o t h Vietnamesea n d Japanesemanagerswhoarehighlyexperiencedandpr ofessionalinfertilizerfield. e)FinancialCapability
Atpresent,theJVF’scapitalf o r businessisaroundU S D 34.960.000(includingextended chartercapitalofU S D 39.750.000).Ofwhich,legalcapitali s U S D 14million,Vietnamsi decontributesUSD4.2million(accountingfor30%).
JVF’screditlimitandcapitalmobilityisveryhighbecausethecompanyisajointventurew ithbigJapanesecorporation,inwhichSojitzandCentralGlasshold70%capital;therefore, itsabilitytomobilizecapitalfrominvestorsandbanksisratherg o o d f)Overallassessment
JapanVietnamFertilizerCompanyisoneofthemajorplayersintheNPK market.T h e p r o m i n e n t a d v a n t a g e s o f J V F a r e moderntechnology,h i g h qu alityN P K fertilizerandprestigiousbrandnameinVietnam.
BinhDienF e r t i l i z e r J o i n t S t o c k C o m p a n y i s t h e l e a d i n g c o m p o u n d N P K f e r t i l i z e r producersinVietnammarket.EspeciallyintheSouth,ther icebowofthecountry,thecompanyranksfirstinproductionandsalesofNPK.
TheBinhDienFertilizerscompany,originatedtheBinhDienFertilizersPlantI I , w a s f o u n d e d o n May0 6 , 2 0 0 3 byt h e d e c i s i o n o f t h e P r i m e M i n i s t e r T h e companyisundertheVietnamNationalChemicalGroup. a) R&DCapability.
Atpresent,BinhDien’scompoundNPKisproducedwithsteamgranulatio ntechnologyandbulkblendtechnology.Withthesetwotechnologies,BinhDienmeta l l d i v e r s i f i e d d e m a n d o f t h e market.T h e p r o d u c t s o f B i n h D i e n F e r t i l i z e r s a r e variedandsuitablewithallkindofsoilsandplants.Currently,BinhDienFe rtilizersareprovidingmorethan100productsofspecializedandregularNPK,foliarfert ilizersandorganicfertilizers.Ofwhich,thereare33specializedfertilizersforr i c e , co ffee,corn,tea,rubber,fruit-trees,legumeandvegetable.
Inordertodeveloptypesoffertilizer,BinhDienFertilizerheldaScienti ficA d v i s o r y B o a r d includingof8leadingagriculturalprofessorsanddoctors.Inad dition,BinhDienalsocooperateswiththeresearchinstitute,universitiestoapplythelat esttechnologyadvanceintotheirproducts. b) SupplyCapability
- Toholdagriculturalunderstandingandfarmerscontest,supporttrainingactivities,con fer en ces ofinstitutes,universitiesandlocalities.
Thissluggishmodelpr eve nt s the companyfrombringingi nt o playitsful lcapability.
At present, BinhDien Fertilizer has applied ISO 9001:2000 qualitymanagement system.
Theproactiveboard of directors, togetherwiththeverystaffsof70eng i neer s, d o c t o r s , m a s t e r s a n d 3 0 0 s k i l l f u l w o r k e r s makeB i n h D i e n FertilizersJ o i n t St oc k c o m p a n y dev el op q u i c k l y andb e c o m e t h e l e a d i n g f e r t i l i z e r e x p o r t e r.
Thepackingofexportsisprintedinlocallanguage;therefore,productsarefavouredbylocalfar mers. e) FinancialCapability
BinhDienFertilizer’slegalcapitalisVND397billionandthe2010turnoverisVND3, 728billion.
The companyinvestedVND30billioninconstructinga NPK fertilizerplantu n d e r thebrandname“BuffaloHead”whichisbasedinkm8,Roadno 9,DongHaTown,QuangTriProvince. f) Overallassessment
LamT h a o F e r t i l i z e r s a n d C h e m i c a l s C o m p a n y i s a s t a t e - o w n e d c o m p a n y w h i c h i s a s u b s i d i a r y o f V i e t n a m N a t i o n a l C h e m i c a l G r o u p ( u n d e r M i n i s t r y o f IndustryandTrade).Thecompanyproducespho sphatefertilizersandmixfertilizersN P K andtheindustrialchemicalstoservetheecon omyandnationalsecurity.LamT h a o h a s a l r e a d y reached a p r o d u c t i o n c a p a b i l i t y o f 8 9 0 , 0 0 0 t o n s o f superphosphate,650,000tonsofNPKand270,000tonsofs ulfuricacid. a) R&DCapability
LamThaoproducesover50typesoffertilizersandchemicals,ofwhichthemainpro ductsaresuperphosphate,NPKandsulfuricacid.
Thec o m p a n y h a s c o o p e r a t e d w i t h m a n y r e s e a r c h i n s t i t u t e s , u n i v e r s i t i e s , o r g an iz a t i o n s , i n c l u d i n g : V i e t n a m A c a d e m y o f A g r i c u l t u r a l S c i e n c e s , S o i l s a n d f e r t i l i z e r s R e s e a r c h I n s t i t u t e , H a n o i U n i v e r s i t y o f A g r i c u l t u r e , V i e t n a m ForestryUniversity,Agricul turalPromotionagenciesandVietnameseFarmerAssociationino r d e r toman ufactureandgivetheusageguidanceofNPKfertilizers. b) SupplyCapability
LamThaoh a s i t s ow ns u p p l y ofp h o s p h a t e topr od uce N P K f e r t i l i z e r , yeto t h e r rawmaterialmustbeimported.
LamThaofertilizersplantissituatedinLamThaoTown,LamThaoDistrict,PhuThoP rovincewiththeNPKproductivityof700,000tonsperyear.
LamThaohasequippedits owntruckfleetforproductstransportation a nd supply c) MarketingandDistributionCapability
Inasnapshot,LamThao’smarketingactivitiesareweakandnoteffective;the keyactivitiesareasfollows:
Sincethebeginningo f 2008,theretailoutletshavebeenreplacedbythespecializeddi stributors.Hence,thereareonlyoneortwodistributorsservingoneregioninsteadoftensofret ailoutletsinthepasttime.
Thecompanyhasbeenawardedb y theStateandMinistry,namely:GoldenRiceVietn am,TheFarmer’sFriendBrandname,andCertificateofmeritawardedbytheMini stry of AgricultureandRuralDevelopment d) ManagementCapability
LamT ha o’ s managementsystemis n o w strictlyfollowingt h e state- ownedmodelandmeetstherequirementsforISO9001:2000qualitymanagementsyste m.T h e managementboardpossessesprofessionalknowledge,yetthemodernmanageme ntcapabilityislimited. e) FinancialCapability
LamThaoF e r t i l i z e r s a n d ChemicalsC om pan yha s equipped4productionlinesto producemixNPKfertilizerswiththetotalannualcapacityofover400,000tonsandinvestme ntcapitalofVND58billion.Also,thecompanyreceivesstrongfinancialsupportfromtheg overnmentandpublicbanks. f) Overallassessment
LamThaohasbeeninthenorthernfertilizermarketforaverylongtime;thus,itsproductbra ndshavegainedmuchloyaltyandconfidencefromfarmers.Thecompany’ssellingpointis thephosphateavailabilitytoproduceNPKfertilizers.
−Diversifiedproductsfordifferenttypeso f cr ops:over50typesofproducts
BaconcoLimitedCompanywasestablishedin1995.Thecompany’sofficeandfac toryaresituatedbehindt h e d e e p - w a t e r s e a p o r t i n P h u My,T h a n T h a n h d i s t r i c t , BaRia-
Baconco’smicro- organismfertilizerhasbeensuccessfullytestedonmanydifferenttypeso f soils.Theplant sproductivityhasbeenincreasedremarkably,namely:rice:10.6%to15.2%, cabbage:from5.1%-8.3%,broccoli:approximately20%,watermelon:21.3%-
26.5%,Arabicacoffee:11.3%-12.9%andRobusta coffee:10.2%,etc. b) Supplycapability
Baconco’sr a w materialsa re m a i n l y imported f r o m M i d d l e E a s t c o u n t r i es , C h i n a , Canada,andRussiaandpartiallyboughtfromdomesticcompanies.
Baconco’sp l a n t is p l a ce d i n i n P h u My1I n d u s t r i a l Z o n e w i t h t h ea n n u a l productioncapacityof220,000tons.Also,thecompanyhasjustconstructedanew wastewater t r e a t m e n t p l a n t w i t h t h e d a i l y capacityof 4 0 0 m ³ andtotalinvest mentcapitalofUSD500,000.Besides,Baconcohashaditsowntruckfleetforproduct stransportationandsupply c) MarketingandDistributionCapability
Baconco’sbiggest m a r ke t s areTayNinh, An Gia ng, Soc T r a n g More over, th e companyhasonlyexportedalimitedfertilizeramounttoLaosandCa mb od ia marketasthedomesticdemandisverytremendous.Thecompanyhas130prima ryd i s t r i b u t o r s , mainlyinCentralandSouthernpartofVietnam. d) Managementcapability
Baconcoisajointventurecompany,soitsmanagementmechanismrunsaftert h e f o r e i g n i n v e s t e d j o i n t v e n t u r e m o d e l Themanagements y s t e m o f B a c o n c o i s p r o f e s s i o n a l l y organized w i t h t h e s u p p o r t o f theSociétéCommercialed e s P o t a s s e s e t del’Azote.ThemanagementboardconsistsbothVietnameseandf o r e i g n e x p e r t s w h o a r e h i g h l y e x p e r i e n c e d a n d p r o f e s s i o n a l i n f e r t i l i z e r f i e l d F u r t h e r m o r e , B a c o n c o h a s p a i d m u c h a t t e n t i o n t o h u m a n r e s o u r c e t r a i n i n g a n d d e v el o p m e n t e) Financialcapability
SinceB a c o n c o isa j o i n t - v e n t u r e c o m p a n y , itsa b i l i t y t o mobilizecapitalf r o m investorsandbanksisr athergood. f)Overallassessment
Baconco’so u t s t a n d i n g p o i n t i s t h e m odernp r o d u c t i o n t e c h n o l o g y ; t h u s , i t can p r o v i d e h i g h - q u a l i t y p r o d u c t s ( t h e c o m p a n y i s t h e o n l y p r o d u c e r o f m i c r o o r g a n i c c o a t i n g fertilizers)
Inc o n t r a s t,thecompany’sweaknessesaret h e undiversifiedproductsa n d dependenceofrawmaterialsupplyanddistributionchannels(mainlyfocusonCent ralandSouthernmarkets)
NamSaoFertilizerJointStockCompanywasestablishedonSeptember5 th ,2001.T heBoardofDirectorschangedthecompanynameintoN a m S a o I n t e r n a t i o n a l JointS tockCompanyonSeptember16 th ,2004. a) R&DCapability
ThecompanypossessesanautomaticproductionlinethatusestheAmericansteamgr anulationtechnology.ThistechnologycanproducehighqualityNPKfertilizers(highnutrie ntcontent,supplementedtraceelements)
NamS a o F e r t i l i z e r ’ s p r o d u c t s a r e m u c h d i v e r s i f i e d , i n c l u d i n g s pecializedf er t i l i z e r s fordifferenttypesofplants,mixNPKandmanyotherfertilizers.
BoththefertilizerplantandanewwarehousearesituatedinBenLuc,LongAnprovi nce.Theplanth a s theannualdesigncapacityof300,000t o n s whilethewarehousecanstor e50,000-70,000tonsa n d i t w i l l becomea bondedwarehouseservingtheimport- exportneedsoffertilizerindustry.
NamSaoInternationalJoint StockCompanyhas activateda lot ofmarketingactivitiestobuildbrandnameandsupportcustomersaswellasequipfarme rswitht h e knowledgeoffertilizerusage.Thecompanyhascooperatedwithscien tificandagriculturalo r g a n i z a t i o n s t o implemento v e r 1 0 0 experimenta n d de monstrationp o i n t s t o p r e s e n t h o w t o u s e N P K f e r t i l i z e r f o r l o c a l p l a n t s A l s o , t h e c o m p a n y holdst h e s c i e n t i f i c c o n f e r e n c e t o d i s s e m i n a t e t e c h n i q u e s o n c u l t i v a t i o n s o i l s a n d pl an ts andtochecktheresultsoftheabove- mentionedexperimentandd em o n st r a t i o n points
Furthermore,thecompanyhasimplementedbrandadvertisingandpromotioncampa ignsthroughthemedia.Also,thecompanyattendstradefairstopromotetheb r a n d a n d produ cts.
NamSaohas adistribution systemintheCentraland Southern partofth ecoutry.A f t e r 1 5 yearsi n o p e r a t i o n , t h e c o m p a n y n o w h a s a b o u t 1 0 0 0 o u t l e t s , 3 subsidiariesandafertilizerproductionplantinCanDuoc,LongAnprovince. d) ManagementCapability
NamS a o f o l l o w s t h e j o i n t s t o c k modela s i t i s i n v e s t e d byi n d i v i d u a l s However,themanagementsystemismorelikelytobefamily- ownedmodelwhichr a i s e s anumberofdifficultiesinthemanagementprocess.
Besides,N a m S a o h a s b e e n a p p l y i n g therequirementsf o r ISO9001:2000a ndISO9000:2000qualitymanagementsystemcertifiedbyBVQI(BureauVeritasQ u a l i t y International)
NamS a o ’smanagementboardandstaffareyoung,active,qualifiedandexperience dintheareaoffertilizers(80%ofstaffhavethediplomaandbachelordegree),yett h e profe ssionalismi s limited.Thecompanyh a s shakenhandswithfertilizerexpertsfromIndiaand ChinatoproduceNasaSmartfertilizer. e) FinancialCapability
Thet o t a l i n v e s t m e n t c a p i t a l o f t h e c o m p a n y i s V N D 2 0 0 b i l l i o n w h i c h i s mainly contributedbyindividualinvestors.Hence,thecompany’sfinancialsource sa r e weakerthanthatofotherfertilizercompanies.
Todate, togetherwiththestrategyofexpanding subsidiariesand distributionch a n n e l s n a t i o n w i d e , N a m S a o i s p l a n n i n g t o b u i l d a n o t h e r f e r t i l i z e r p l a n t a n d w ar eh o u s e i n N a m D i n h p r o v i n c e w i t h t h e a n n u a l c a p a c i t y o f 150,000-2 0 0 , 0 0 0 tons. f) Overallassessment
However,t h e c o m p a n y ’ s w e a k n e s s e s a r e t h e brandname( a s i t i s a n e w en tr a n t o f t h e m a r k e t ) , d i s t r i b u t i o n c h a n n e l s a n d t h e d e p e n d e n c e ofr a w materialsupply.
−LamTh aoF er ti li ze r andChe mi cal Company: h a v i n g acapacityof270,000to nsp e r year.
Sulfuricacidismadefromironsulphuretedore.Althoughsulfuricacidisproducedin Vietnam,itscapacitydoesnotmeettheneedoffertilizerproductionindustry.Besides,tofacet hedemand,thefertilizerproductioncompanieshavetoimportsulfuricacidfromChinaandIn dia.
OurphosphateoresourceismainlyfromLaoCaiappetiteminewiththecapacityofapp ropriately800milliontons.However,apatiteTypeIisonlyaccountingfor4%,TypeIIandTyp eIIIaresubstantiallycontributingfor60%oftotalcapacity.
Recently,theTypeIoreusedforsuperphosphatefertilizerproductionhasacapacityof about300.000tonsperyear.Appetiteorethatisexploiteddomesticallydoesnotmeetthedema ndofproducingfertilizer.Therefore,NPKfertilizer producershavetoimportmateriallikeDAP,MAP,etc.fromothercountrieslikeChina,SouthKorea,Jordan,ThePhilippines.
Intheworldthereareonly15countriesthathavelarge- scaleKalifertilizerproducingindustry.ThesecountriesaremainlyfromEurope,Americaan dMiddleEast.
TheglobalKalifertilizermarketisgovernedb y 6 mainplayers,namelyCanada,Rus sia,Belarus,Germany,IsraelandJordan.
VietnamdoesnotpossessanyKaliores;thus,Kalisourceisimportedfromforeigncou ntrieslikeCanada,Russia,Belarus,Israel,andChina.
5 hectarefertilizerproductionplantwiththeinvestmentcapitalofUSD8.5million.Thisplant isinstalledwithmodernproductionlinetomakehighqualityfertilizerunderthebrandname“T huyenbuom”.TheplantislocatedinPhuMy1industrialzone,TanThanhdistrict,BaRia– VungTauprovincewiththeannualcapacityof
Aftermarketresearchthefertilizerindustryanddomesticdemand,NSChasdecidedto buildNPKfertilizerproductionplantinNinhXuanhamlet(NinhHoadistrict).Theauthorities areinvestigatingtheenvironmentaleffectoftheprojectlikeotherexistingfactoriesinnearbyp rovinces.ProvincialPeopleCommitteehasnowagreedforNSCtobuildNPKfertilizerfactor ywithayearlycapacityof50.000tonsandwithtotalinvestmentcapitalofVND71billion.
Inthefirstphase,thefactoryhascapacityof25.000tonsofNPKperyear,produceonec olorfertilizer(20.000tonsperyear)andthreecolormixedfertilizer(5.000tonsperyear).Allst epslikeimportingmaterial,grinding,moundingpip,drying,cooling,screeningandpackagi ngareconductedunderstrictmanagement.
NPKfertilizerproductionplantdoesnotaffectenvironmentbecauseitdoesnotdump wastewater.Regardingdustandnoise,NSChaseffectivemethodtoseparate,collectdust.Bef orereleasingout,hotwindfromdryingstepwillbegonethroughdustremovalsystembycyclo ne.
Theplantusesrotarykilnthatoperatebychippingtoproducefertilizer.Themainmate rialismeltingfertilizer,ureanitrogenousfertilizer(HaBacChemicalCompany)andimported chloridekali.Thefactoryisbuiltb y newtechnologythatwasteistreatedfollowingconventio nalcriteriabeforedumpingtothesurrounding.
NPKproductionplantinThaiBinhwillcutthetransportationfeefromthecostofprodu cingNPKfertilizer.Besides,thecompanywillensuretoprovideenoughNPKfertilizerforTh aiBinhprovinceandRedRiverdeltaregion.
NPKfertilizernow hasnotbeen replacedbyanyother fertilizersbecauseofitsnecessityforplant.Oneoftheadvantagesisitsconvenienceandsuitab ilityforallplants.AlthoughtherearesomeorganicfertilizersthatcanreplaceNPKfertilizer,y ettheefficiencyislowandtheyareratherdifficulttouse.
Nowadays,manycountriesencourageinvestigatingandusingorganicfertilizertorep laceNPKfertilizer.However,organicfertilizereffectistoremainsoilandcreatetypicalfeatur eforagriculturalproducts,ratherthantoincreaseproductivity.Thus,organicfertilizerisoften usedasa supplementtoratherthana substitutetoNPKfertilizer.
Targetmarketanalysisof competitors
52%ofna ti on al NPKdemandwhiletheNorthernand Centralarea’sdemand is 2 0 % and28%respectively
Figure2.9.NPK’sregionaldemandin2010(Unit:percentage)
Figure2.10.NPK’sregionaldemandin2010(Unit:1000tons)
Thecompetition featureofV ie t n a m NPKma rke t isthefactthat market is dividedbyregionandlocationofplants.
Transport fee drives up the product price, which degrades thecompetitiveness.
In addition,fertilizersarenormallyhygroscopic, scatteredandclotted duringd el iv e r y process,whichcanhavesignificanteffectonproductquality.
No Companyn ame Factorylocation Capacity
TheSouthernareaisaconcentratedmarketwhichhasastableplantstruc ture,highintensivecultivationandhigherlevelofchemicalfertilizerusing.B e s i d e s , TayN g u y e n i s a l s o a r e m a r k a b l e marketf o r N P K b e c a u s e i t h a s a largear eaofexportingplantslikecoffee,cashewnut,pepperandrubber.
TheNorthernarea i s thesecondl a r g e s t fertilizer using marketbeca use it hasR e d Riverdelta,thesecondlargestricegrowingareainVietnam.Mostmarke ts h a r e intheNorthernareaisoccupiedbycompanieslocatingintheNorther n.LamThaoaccountsfor76%sinceitis thelargestfertilizercompanyandhasana g e - o l d brandnameintheNorthernaswellasgainmuchfarmer’sconfidence.
Incontrast,theSouthernhasthelargestamountofagriculturalproductsandt h e largestfertilizerusingmarketinVietnam;marketshareisalsobelongedtocomp anieslocatinginthe Southernnamely VietNhat,BinhDien, MienNam,N a m Sao.
Thecentralareahasbeensharedbymanycompaniesbecausethisregionislon gandnarrow;themarketisdispersedanddoesnothavemanyNPKfertilizerp r o d u c t i o n c o m p a n i e s T he la rg est p i ec e o f c a k e i s hel d byLamThaoCompany,a c c o u n t i n g f o r 2 5 % ; t h e s e c o n d l a r g e s t m a r k e t s h a r e , B i n h D i e n owning17%andVanDienpossessingabout10%.Otherssharethelittlepieceof marketshare.
Customers’commentsonNPKfertilizers
Customers’commentsonNPKfertilizerarebasedontheresultsofquestionnairesfro mcustomerswhoarefarmers,agenciesandretailersintargetmarket.Questionnairesareattac hedintheindexpart.
Vietnamesefarmershaverecentlyusedalotoffertilizerstosupportforagriculturalpro duction.FertilizersthatisoftenusedareUrea,NPK,Kali,DAP,SA,phosphatefertilizer.Parti cularlyinNorthernregion,greenfertilizerisalsoused.
The trainingoffertilizerusingisnotsynchronic andthorough,sothefertilizerappliancemethodsarenotpaidenoughattentionbyfarmers.B e si d e s, V iet na mese farmersh a v e a b a c k w a r d h a b i t o f u s i n g a b u n d a n t f e r t i l i z e r s a s theyt h i n k t h a t a b u n d a n t fertilizerisgoodforplants.
Basedo n s t a t i s t i c s f r o m t h e q u e s t i o n n a i r e s i n t a r g e t m a r k e t , t h e r e f e r e n c e i n f o r m a t i o n ofcustomers’buyingfertilizerarecollectedinFigur e2.14.Ther e s u l t s o f r ef er ence i n f o r m a t i o n ford e c i s i o n o f N P K f er ti li ze r b u y i n g a r e m a i n l y t h r o u g h television,r a d i o andleaflet,a c c o u n t i n g f o r 97%,through friendsa n d r e l a t i v e s , a b o u t 77%.Referenceinformationthroughindividual experiencei n f l u e n c e s ismodest,contributing23%.
- Highquality,s t a b l e a n d e f f e c t i v e p r o d u c t ( t h a t c a n f a c i l i t a t e plantstogr ows t a b l y andstrongly,toreaphighproductivityandreduceinsects)
- Eye- catchingandreliablepackaging(packagingcannotbedamagedduringd el i ve ry)
- Stable,effectiveandhighqualityproduct(thatcanenhanceplantsgrowingandcap aci ty aswellasreduceplant’sdisease)
Therefore,tochooseatype offertilizercustomersgive somerequirements:p r i c e , quality, brand n a m e
Ther e s u l t o f c u s t o m e r s i n t e r v i e w a n d 4 P a n a l y s i s s h o w c usto mers’p o s i t i o n i n g o f NPKproducts Customers’ perceptionofNPKpro ductsisshownon t h e positioning map(Figure2.15)
Analysisof Competitors’MarketingMix
Thankst o m o d e r n t e c h n o l o g y , J V F ’ s p r o d u c t s h a v e h i g h q u a l i t y a n d a r e suitablewithm a n y kindsofplants.Moreover,theproductsarevariedtomat chd i f f e r e n t typesofplantsandsoils.
JVFh a s f l e x i b l e p r i c i n g s t r a t e g i e s a n d b a s e d o n c e r t a i n c u s t o m e r s Customersa r e a g e n t l e v e l 1 , l e v e l 2 , l e v e l 3 a n d r e g u l a r c u s t o m e r s w i l l enjoyd if f er ent p r i c i n g s t r a t e g i e s , w h i c h g u a r a n t e e t h e r i g h t s a n d s t a b l e p r i c e s f o r b o t h JVFdistributorsandfarmers.
JVFd i s t r i b u t i o n n e t w o r k i s g r a d u a l l y e x p a n d e d f r o m M e k o n g D e l t a , t h e S o u t h Central,TayNguyen,andCentralCoasttotheNorthandNorthCen tralandtoseveralcountriesinSoutheastAsia.
Binh Dien Fertilizers utilizes advanced steam granulation and bulk blend technologies to produce its compound NPK fertilizers, effectively meeting the diverse demands of the market The company's extensive product range includes over 100 items, tailored to specific plants and soil types, featuring specialized fertilizers, regular NPK, organic options, and foliar fertilizers Notably, there are 33 specialized fertilizers designed for crops such as rice, coffee, corn, tea, rubber, fruit trees, legumes, and vegetables.
BinhDienF e r t i l i z e r s ’ p r o d u c t s a r e s o l d inb o t h d o m e s t i c a n d f o r e i g n markets;t he ref or e, t h e c o m p a n y developed2 d i f f e r e n t p r i c i n g st r a t e g i es fo r ea c h market.Sellingpricesfordomesticcustomersarebasedontheregions:the North,C e n t r a l andSouthwouldhavedifferentprices.Sellingpricesinexportm arketareb ased onpricesinCambodiafertilizersmarket.
BinhDienDistributionnetworkincludesmorethan2000agentsnationw ideandinsomeneighboringcountries.90%oftheproductsisconsumeddomestically, t h e restisforexport.Theproductsareexportedthrougharepresentativeoffice inCambodia.
- Sendgoodfarmerswhouse“Buffalohead”fertilizerabroadforsightseeinga ndg a i n experience.
LamThao produces over50 kinds of fertilizers andchemicals.MainProducta r e : LamThaoSuperphosphate,NPKLamThao,sulfuricacid.
Thedistributionchannelsspreadnationwide,reachingMekongDeltaR iverarea,TayNguyenandLaos,however,thecoreofthedistributionsystemispoorl yperforming.Sincethebeginningof2008,theretailoutletshavebeenreplacedbythespeciali zeddistributors.Hence,thereareonlyoneortwodistributorsservingoneregioninsteadoften sofretailoutletsinthepasttime.
SinceL a m T h a o F e r t i l i z e r s a n d C h e m i c a l s C o m p a n y i s a s t a t e - o w n e d c o m p an y (underV ina Che m) , its p ush andp ul l strategies are veryli mited,cannot brin gin to f u l l playtheL a m Thaob r a n d name.T h e p r o m o t i o n s t r a t e g i e s o f L a m T h a o involved:
Baconco produces NPK fertilizers using advanced steam granulation and bulk blend technologies, ensuring high-quality manufacturing The production process is continuously monitored through an automated computer system and internal LAN network Their microorganism fertilizer has been effectively tested on various soil types, leading to significant increases in plant productivity: rice yields improved by 10.6% to 15.2%, cabbage by 5.1% to 8.3%, broccoli by approximately 20%, and watermelon by 21.3%.
26.5%,Arabicacoffee:11.3%-12.9%andRobusta coffee:10.2%,etc.Moreover,thisfertilizeralsohelpstoenhancethequalityofcorn,caulif lowerbyreducingwaterandnitratecontent,increasingthevitaminCaswellasslowingther ottingprocessduringstorageandtransportation.
Thankstotheoverwhelmqualityproducts,thecompanycanchargehigh erp r ic e s incomparisonwithothercompanies’price.
Thed i s t r i b u t i o n c h a n n e l s a r e l i m i t e d d u e t o i t s n a r r o w m a r k e t B a c o n c o ’sb ig gest marketsa r e T a y N i n h , AnG i a n g , S o c T r a n g M o r e o v e r , t h e c o m p a n y h a s onlye x p o r t e d a l i m i t e d f e r t i l i z e r a m o u n t toL a o s a n d C a m b o d i a marketa s t h e domesticdemandisverytremendous.Thecompany has130primarydistributors,m a i n l y inCentralandSouthernpartofVietnam.
ThecompanypossessesanautomaticproductionlinethatusestheAmericansteamgr anulationtechnology.ThistechnologycanproducehighqualityNPKfertilizers(highnutrie ntcontent,supplementedmicronutrients).NamSaohasinvestigatedandboughtasteamgran ulationfertilizerproductionlinewhichishighlyadvancedcomparedtopopularproductionli neinVietnam.NamSao’ssteamgranulationtechnologycanproducesolidandeye- catchinggrainNPK.Theprocessis monitoredbycomputerinordertoreducethematerialloss.N a m S a o F e r t i l i z e r ’ s p r o d u c t s aremuchdiversified,includingspecializedfertilizers fordifferenttypesofp l a n t s , mixNPKandmanyotherfertilizers.
Thecompany’spricingstrategiesareveryflexible.Thepriceisbasedonther e g i o n a n d t y p e s o f c u s t o m e r s H o w e v e r , italwayse n s u r e s t h a t t h e f a r m e r s c a n e n j o y astableprice.
Underthestrategyofexpandingdistributionnetworknationwide,NamS aoInternationalJ o i n t S t o c k C o m p a n y h a s b r a n c h e s i n 3 r e g i o n s o f t h e cou ntry:t h e N o r t h , t h e C e n t r a l a n d t h e S o u t h U n d e r t h e t h r e e b r a n c h e s o f t hec o m p a n y a r e d e al er - lev el one,leveltwowhichwillguaranteetobringproductstofarmers.
- Thec o m p a n y h a s c o o p e r a t e d w i t h s c i e n t i f i c a n d a g r i c u l t u r a l o r g a n i z a t i o n s t o implemento v e r 1 0 0 e x p e r i m e n t a n d d e m o n s t r a t i o n p o i n t s t o p r e s e n t h o w t o u s e N P K f e r t i l i z e r for localplants.Also,thecompanyholds thescientific conferencetod i s s e m i n a t e techniquesoncultivation soilsandplants andto check theresults oftheab o v e- m e n t i o n ed experimentanddemonstrationpoints.
- Furthermore,thecompanyhasimplementedbrandadvertisingandpromotioncampaignst hroughthemedia.Also,thecompanyattendst r a d e f a i r s t o p r o m o t e t h e b r a n d a n d products.
Inchapter2,theNPKmarkethasbeenanalyzedandassessedcarefully.Thestatist icsandmacroeconomicanalysiss h o w theaffectionofpolitics,s o c i o - economicfactorstoNPKmarket.
Thecompetitors,substitutes,customers,supplierandpotentialrivalsaswella sPVFCCo’sabilitieshavebeencarefullyanalyzedtofindoutthebusinesso p p o r t u n i t i e s andchallenges.IndustryanalysishasshownthePVFCCo’scompetitiveadvanta ges.
Theauthoralsobroughtoutthemarketingpolicies,strengthsandweaknesseso f theco mpetitorsin thetargetmarket.That shouldhelp
PVFCCofindoutbusinesso p p o r t u n i t i e s f o r N P K f e r t i l i z e r p r o d u c t s B e s i d e s , t h e a u t h o r h a s g a t h e r e d customers’respondsaftertryingcompetitors’ products.Basedonthatinformation,P V F C C o willlearnwhatmakethecustomers satisfyaboutNPKproductsandwhatn o t
TargetmarketofPVFCCo’s NPKfertilizer
ThetargetmarketofNPKfertilizerwillbefocusedontwoareas:TheSouth(EasternSo uthandWesternSouth)andTayNguyen.Thetargetmarketdecisionisbasedonthreepillars:
TheplantisplannedtobelocatedinPhuMy1IndustrialZone,adjacenttoTh ePhuMyFertilizerPlantinordertomakethemostoftheexistinginfrastructureandup gradethesupplychain.Thislocationoftheplantisveryadvantageousforthep r o d u c t s d i s t r i b u t i o n int w o t a r g e t marketsa n d f o r t h e c o m p a n y tominimizet h e transportation fees.
ThecompetitivenesscharacteristicsofVietnamNPKmarketisthefactthatth e mar keti s d i v i d e d o n t h e r e g i o n a l b a s i s T h e n o r t h e r n m a r k e t iso c c u p i e d byn or th er n companies(LamThaoaccountsfor76%ofthenorthernmarketshare)
Incontrast,mostofthesouthernmarketissharedbycompanieslocatingintheS o u t h , namely:T h e S o u t h e r n F e r t i l i z e r s C o m p a n y with2 1 % , B i n h D i e n F e r t i l i z e r s JointStock C o m p a n y with23%an d18%belonging t oJ a pa n V ie tn am Ferti li zer s.
Thecentralarea has beenshared bymanycompaniessince theregion i slongandnarrow;sothemarketisdispersedanddoesnothavemanyNPKfertilizerp r o d u c t i o n companies
2 Transport fee pushes up the product price, which degrades thecom p et i ti v en ess.
3 In addition,fertilizersarenormallyhygroscopic, scatteredandclotted duringd el iv e r y process,whichcanhavesignificanteffectonproductquality.
NPKmarketmainly includesintheSouth (with52%oftotalconsumptio nvolume)andintheNorth(theRedRiverdeltawith28%)
Particularly,theSouthernareaisaconcentratedmarketwhich hasastabl ep l a n t s t r u c t u r e , h i g h i n t e n s i v e f a r m i n g a n d h i g h e r l e v e l o f chemical f e r t i l i z e r u sing
Besides,TayNguyenisalsoaremarkablemarketforNPKbecauseithasalarg eareaofexportingplantslikecoffee,cashewnut,pepperandrubber.
Figure3.5:NPK’sregionaldemandin2010(Unit:percentage)
Figure3.6:NPK’sregionaldemandin2010(Unit:1000tons)
Thesizeofthetargetmarketisratherattractivesinceitisaconcentrated marketforNPKproducts.Thesizeoftargetmarketin2011isabout1.62milliont o n s (accountingfor63%oftotaldomesticNPKconsumption).Thesizeisexpectedtoreach2. 71and3.14milliontonsin2015and2020respectively.
Positioningstrategyof PVFCCo’s NPKfertilizer
PVFCCo’sammoniaandprilledureaproductiontechnologystrictlyfollowsEurope anstandardsandisonetheworldleadingtechnologies(licensedtechnologiesf r o m Danis hHaldorTopsoeandItalianSnamprogetti).Itsureaproductionplantist h e m ostadvancedplantinVietnamandoneofthemostmodernfactoriesinSouthE a s t Asiare gion.
PVFCCoisa memberofV i e t n a m n a t i o n a l O i l a n d G a s C o r p o r a t i o n ( P e t r o Vietnam);thus,thecompany’srawmaterialsaresuppliedbyothermembercom paniesunderPetroVietnam(gasfromBachHoFieldandnaturalgasfromCuuL o n g , Na m
ConSonGasExplorationProjectinVietnam’scontinentalshelf).Also,P V F C C o hasre ceivedfavorableconditionsfrom theoilandgasindustrytosupportthepricesoffeedstockgasaswellasstabilizethepricesinth enext5-10yeartime.
Moreover,withthestrengthsofrawmaterialsupply(UreaandNH3),P V F C C o d efinitelytakeabrightsideininvestinginNPKproductioninVietnam market. 3.2.3 Productioncapability
PVFCCohasjustaccomplisheda projecttocapturecarbond i o x i d e ( C o 2 ) f r o m theemissionsandincreasetheureaproductioncapacityto800,000tonsperyear.Todat e,PhuMyFertilizer’sproduction capacityhasfulfilled40%of thetotaldomesticdemandanditaccountsformorethan50%marketshareoftheSouth ernregion.
PVFCCo Central Joint Stock Company
PVFCCo Southeast Joint Stock Company
PVFCCo Southwest Joint Stock Company
Apartfromtheexistingproducts,PVFCCoisalsoimportingothertypesoffertilize rs(namelyurea,NPK,DAP,Kali)toservethedomesticdemand.
PVFCCo’sproductsaredistributedbyfourmembercompanieslocatinginfourdiffer entregionsnationwide.Thefourmembercompaniesa r e inchargeofmanagingtheoutletsin theirlocation.Moreover,PVFCCoisopeningarepresentativeofficeinCambodiaandtheco mpanyisplanningtodirectlydistribute productsinthismarket.
PVFCCo’sdistributionnetworkincludes40wholesalersandover1,000retailersloc atedthroughoutthecountry.Thecompany’smarketstretchesfromtheRedRiverdelta,theCe ntralparttotheCuuLongRiverdelta.PVFCCocurrentlyserves40%ofthetotaldomesticurea demand.
AlthoughPVFCCohasjustjoinedthefertilizermarketsince2004,b r a n d name"D amPhuMy"has gainedtheconfidenceandfavoritism fromthefarmers n a t i o n w i d e sincethecompanyhaspaidgreatattentiontomarketingactivitiesands e t o u t a b i g marketingb u d g e t (USD6b i l l i o n i n 2 0 1 0 ) f o r t h e brandi m a g e advertising.
Parallelwiththebrandbuildingandadvertising activities, PVFCCoisc o o p e r a t i n g withagriculturalorganizations,agencies,departmentstoholdalotofmar ketingactivitiesforfarmersandsponsortheprogramsthatarehumanistic
Withastrongandnationwidenetworkofdistribution,togetherwiththeb r a n d n a m e of“DamPhuMy”,PVFCCowillreceivetheresonancestrengthsw h e n t h e N P
Therearea lotofdifferentkindsofNPKfertilizersfromdifferentbrandsnamely:JVF, LamThao,BinhDien,Baconco.Thesebrandshavearemarkablereputationinthemarket,yets omecompaniesownthebackwardtechnologywhichmakespoorproductqualityandunstabl eprice.
PVFCCoisanewplayerwiththeadvantageofmoderntechnologyinordertomakepro ductsofsuperiorquality.Also,thecompanyconsidershighqualityproductasthecomparative advantagetopenetrateandattractcustomers.Researchontargetcustomershasshownthatfar mersaremorelikelytouseNPKproductsofhighnutrientcontent,especiallyforexportingplan ts;hence,thecompanyhastomanufacturemixNPKfertilizersofhighnutrientcontentandoth ertypesofspecializedfertilizersforplants,namelyrice,pepper,cashewnuts,coffeeandrubbe r.Theaimofmarketpenetrationistoofferdiversifiedproductsandupgradetheproductconsu mption.
Onthemapofcustomers’positioningofNPKproducts(Figure3.8),rivalsonthetarget marketaregivingdifferentpricinglevels,greatlydependingonproductqualityandbrandnam e.PVFCCooffershighqualityproductswiththefamousandfamiliarbrandnameof“DamPhuMy”,whichisabigadvantagewhenthecompanypositionsitspricinglevel
MarketingtargetsforNPKproducts
Theoutput i s expected tokeepincreasing t r e n d forthefirst three years as P V F C C o breaksmoreandmoreintoNPKmarketandthequalityandserviceofitsN PKproductshasgainedthecustomerconfidence.A s canbeseeninFigure3.1,the expectedoutputin2012,2013and2014willbe62,650tons,162,930tonsand 245,090tonsrespectively.
Ino r d e r t o meett h e a b o v e t a r g e t s , t h e companyn e e d s toh a v e a s u i t a b l e policy.Thedecisionofproductpricingmustbecarefullyconsideredonthebasis o f productioncosts,competitors,NPKpriceinglobalanddomesticmarket,etc.
WhenPVFCCopenetratesintoNPKmarket,thedecreasingpricingstrategy w i l l bePVFCCo’scomparativeadvantageagainstotherrivals.Thispricingpolicycan helpPVFCCoexpandthetargetmarketandattractnewcustomersaswellasmaint ainexistingcustomers.Withtherightmarketingstrategies,PVFCCo’smarketshar eisforecastedtoreach3%in2012,7%in2013and10%in2014.
Bymakingthefull useofth e ureaexistingd ist ri bu ti on system, expan dingthedistributionchannelsinthetargetmarketsandwiththereferenceoftheabove e x p e c t e d o u t p u t a n d p r i c e , P V F C C o ’ s t a r g e t r e v e n u e i s f o r e s e e n t o b e i n c r e a s e d i n t henextthreeyears.AsshownintheFigure3.4,the2012’stargetrevenuewillbe
The design of NPK product onlyVND460billionasitistheveryfirstyearofmarketpenetration.However,t h e n umberwillreachVND1188billionandVND1781billionin2013and2014respectivel y.
MarketingMixforNPKfertilizerofPVFCCo
2 0 1 4 , duringthisperiod,NPKproductsareintheearlystateofmarketpenetrationa n d gainingmarketshare, themarketingsolutions forthecompany’sproduct wouldb e appliedinthisperiodalone.
Theperiod2012-2014 isthe introductoryperiod forthecompany’sproducts.P V F C C o ’ s NPKfertilizersaretotally newfordistr ibutorsandfarmers; therefore, t h e companyneedsthefollowingmarketingstrategies :
Study,designthesuitablepackageforconsumersanddiversifytheproductsw i t h differenttypesofpackagingandweight,namely10kg,25kg,50kg,100kg,whi c hwillsatisfyalldemandsofconsumers.
FrequentlyupdateandsummarizetheNPKmarketinformation,analyzeande v a l u a t e theinformation,identifyt h e markettrend,competitors’abilities,recommends olutionsandstrategiesto bringintofullplaytheproducts’competitiveadvantages.
Consumersa n d d i s t r i b u t o r s pays p e c i a l a t t e n t i o n t o t h e p r o d u c t s ’ quality;t h e r e f o r e , t h e p r o d u c t s musth a v e h i g h quality,i n c l u d i n g t h e follo wingf e a t u r e s : anti-caking,dry,e y e - c a t c h i n g , s t r o n g p a c k a g e w h i c h c a n n o t bet o r n d u r i n g transportation.F o r t h i s reason,PVFCCoshouldfocusonhighq u a l i t y products,w h i c h havehighdemand, toconvincethecustomersanddistributors.
PVFCCos h o u l d i n v e s t i n technology,w h i c h i s m o r e modernt h a n t h a t o f o t h e r competitors,tocreatecompetitiveadvantagesandsuperiorproducts.
NPKmarketisafiercemarket;therefore,inordertosurviveandgofarinthemarket,PV FCConeedinvestinginR&Dactivitiesinlong- termtodifferentiatetheirp r o d u c t s withthoseofcompetitors.
Topriceproductsconsistentlywiththefluctuatingmarketprice,aswell ase n s u r e p r o d u c t i o n e f f i c i e n c y a n d a c h i e v e t h e t a r g e t o u t p u t , t h e c o m p a n y s h o u l d o r g a n i z e adepartmentforgatheringmarket,price,anddemandi nformationtohelpb o a r d ofdirectorshavetimelyandaccuratedecisions.
Int e r m o f p r i c i n g a p r o d u c t , P V F C C o isa newcomer;t h u s , t h e c o m p a n y n e e d s a f l e x i b l e p r i c i n g s t r a t e g i e s , p r i c e d e t e r m i n a t i o n mustbet a k e n i n t o con sid er at io n ofproductioncosts,domesticandforeignpricesandesp eciallyc o m p e t i t o r s ’ pricing.
Beinga f e r t i l i z e r p r o d u c e r , t h e c o m p a n y d e e p l y awa re t h a t i t s main customersarefarmers,whoaremostlylivinginpoverty,underfundingandhaving limitedscientificunderstanding.Tocreatefavorableconditionsforfarmerstobuyf e r t i l i z e r s oninstallmentplan,thecompanyneedsalatepaymentmechanismfrom3t o 6months Thiswouldbeacompetitiveadvantageofthecompany.
Int h e f i r s t 3 years,t h e c o m p a n y s h o u l d p r i c e N P K f e r t i l i z e r p r o d u c t s ass h o w n inFigure 3.2.In2012,2013and2014,theforecastpriceperon ekilogramw i l l beVND11,800,VND11,600andVND11,500respectively.
Theyearlydecreasingtrendofforecastpriceistheresultofthecompany’spri cingst r a t e g y Whent h e c o m p a n y get s moree x p e r i e n c e inN P K p r o d u c t i o n , i t c an savethecostofproductionanddistribution.
Allth e c o m p a n y ’ s N P K p r o d u c t s a re d i s t r i b u t e d t h r o u g h 2 f o l l o w i n g m a i n ch an n el s:
ThroughDistributors:thecompanywillcontractwithdistributorsforsellingpr o d u c t s , m a r k e t s h a r i n g , p a y m e n t methoda n d p r o m o t i o n W i t h t h e a g r i c u l t u r a l supplyingcompanies,tradingcompanies,firstlevelagentswilldistributeprod ucttofarmersthroughsecondandthirdlevelagents.Thischannelisexpectedtohelpthe c o m p a n y consumeupto80%ofthetotaloutput.
The productswillbe solddirectlytohouseholdbusinessinthecommunesorindirectlythroughfarms,socialorg anizations(farmersunion,womenunion).Thisc h a n n e l doesnotaccountforalargea mountofproducts(around20%oftheoutput)butitreducesintermediaryandfarmerscanenjo ythelowestprice.
Dependo n t h e r e q u e s t s o f t h e d i s t r i b u t o r s , t h e c o m p a n y w i l l d e l i v e r t h e p r o d u c t s tot h e war eh ous e o f t h e d i s t r i b u t o r s o r to t h e r eq uest e dp l a c e , ens ure t o r ed ucethetimeanddistanceoftransportation.
PVFCCoh a s p r o d u c e d a n d t r a d e u r e a n i t r a t e s i n c e 2 0 0 4 ; t h u s , t h e company’sdistribution network hasspread nationwide,togetherwith th efriendly a n d popular“DamPhuMy”brandname,thesethingswillcreatesuchacompetit ivea d v a n t a g e forthecompany.
SHOPNAME(FIRSTL E V E L ) REPRESENTATIVE ADDRESS PROVINCE
1 MinhTânLimitedCompany Mr.NguyenHuuDuoc 11LaiDaiHanh,BuonMeThuotCity Daklak
ServicesCompany Mr.LeVanDe 302PhanDinhPhung-Kon TumProvince KonTum
FoodincoJoint StockCompany Mr.LaiViet Dung 57NgoQuyen,BuonMaThuot City DakLak
4 AnVietThinh Company Mr.NguyenTruongSon 07NơTrang Long,TraBa,P.LeikuCity GiaLai
1 KimNgoanCo.,Ltd Ms Ho Thi Thu
2 MinhTrungCo.,Ltd Mr.ManhVietHung A4/8CaoBaoDao,HiepAnhHamlet,HiepTan,Hoa
3 VietPhungCo.,Ltd Ms.HoanhThiThanhNga 338,2 0 Highway,Street4 – LienNg h i a –
4 NhuLinhCo.,Ltd Mr PhanDinhQuy 350,20Highway,Street4- LienNghia–
5 TuanVuPrivateCompany Mr.VuQuangHiep 134BaoDinh–XuanDinh–XuanLoc DongNai
6 Minh KhoaPrivateCompany Ms.TranThiLeThuy 143TranBinhTrong-LocThanh–BaoLoc LamDong
7 TamTriPhatSupplying andServicesCo.,Ltd Ms.DoanThiMyHanh 73, 62Highway,P2,TanAnhDistrict LongAn
8 HoangDungTrading andProductionCo.,Ltd Ms.LeThiMyTien Number4/112TramVang Hamlet-
BinhThuanAgriculturalSupplyingJ o i n t S t o c k C o m p a n y Mr PhanVanChinh 03NguyenDu–DucThang–PhanThietCity BinhThuan
11 HoanThienPrivateCompany Mr.NguyenVanHue 12Street19/04–XuanAn–PhanThietCity BinhThuan
357TranXuanSoan,T a n Kieng,District7 o r Tan GiaoHamlet,LangLonCommune,ChauDucDistric t HCMCity;BR-VT
13 HoaNamJoint StockCompany Mr PhamHuuHien 23NguyenT h i B a y Street,District6 , TanA n C o m m u n e LongAn
14 NguyenNgocPrivateCompany Ms.NguyenThi Hong 26/21HamletII–DinhHoa–ThuDauI BinhDuong
15 NgocVyOnememberCo.,Ltd Ms TaThi VuVy Hamlet3,NhanCo–Đakrlap ĐakNong
–Trading–ProductionCompany Ms.LeThi MaiHuyen 711BCachMangThangTam, District 3,TayNinh TayNinh
18 Kim HuePrivateCompany Ms Hue Hamlet 5, Bau Don, Go Dau
19 PetroVietnamSouthernGasJointS t o c k C o m p a n y Mr.DaoDinhThem 61BStreet30/04,ThangNhat,VungTauCity BR-VT
1 TuLongPrivateCompany Mr.LeThanhLong BinhMy,ChauPhu, AnGiang An Giang
2 TuongDungPrivateCompany Ms.NguyenThi Kim Dung 19/15BìnhHưngIHamlet,BinhMy, ChauPhu An Giang
3 DangLanPrivateCompany Ms.NguyenThiLan 3409,Highway80,ThanhAn,VinhThanhDistrict,
5 VietNgaPrivateCompany Mr PhamVietMinh 304 Highway30,MyPhu,Caolanh city DongThap
6 PhuongTuongPrivateCompany Mr PhamTanTung NationalH i g h w a y 3 0 , A n LocPrecinct,H o n g NguDistrict DongThap
7 KimHoangPrivate Company Ms.NguyenThi KimHoang 279 Highway 80 – Tan Nhuan Dong –
8 NgocAnhPrivateCompany Mr DangVanOn Number 95/AII, Hamlet 5, Truong
9 AgritechJoint StockCompany Mr.LuongTheQuang LongDinhIndustrialZone,CanDuocCommune LongAn
10 A subsidiaryofNamSaoFertilizer Mr.TranHongRieng LongDinhIndustrialZone,CanDuocCommune LongAn
11 HungThanhPrivateCompany Ms.LieuThiBichThuy DaiTam Commune, MyXuyenDistrict SocTrang
12 VinacamJoint StockCompany Mr.NguyenVietXuan Street5,Precinct9,MyTho City TienGian
13 Ut NuPrivateCompany Ms Pham Thi Nu Cluster1,Cang LongTown, CangLong District TraVinh
14 OnOanhOneMemberCompany Mr DangVanOn 146,PhuThanh1Hamlet,DongPhuCommune,L ongHoDistrict VinhLong
CuongAgriculturalSupplyingC om Mr ChauVanThu 217,BachDang,AnHungHamlet,AnPhuCommu ne,An PhuDistrict An Giang
17 ThuDungPrivateCompany Ms.NguyenThi Thu 27/6LeLoi,District 1,BenTre BenTre
JointStockC om pa ny Mr.HoVuLinh 174TranH u n g D a o – A n Nghiep–
19 HuuThanh1 Co.,Ltd Ms ChungThiThanhThuy BinhLoiHamlet,BinhThanhCommune,LapVoDis trict DongThap
20 NguyenThiDayAgriculturalSupplyin gCompany Ms.NguyenThiDay 86NguyenCongTru,Area4,District1,ViThanh
21 HiepLoiAgriculturalSupplyingC o m p a n y Mr.KienThanh Number 1152/36, Hung Vuong, Area
Ms.NguyenPhuongNgoc Number4,ThanhHoa,PhungHiep,HauGiang HauGiang
23 DuyThanhCo.,Ltd Mr.VuDuyThanh 789D o n g ThanhHamlet,ThanhD o n g A , TanHi epDistrict KienGiang
24 ToanLoiCo.,Ltd Mr.TranVanDoan 09A,Hamlet2 , H u u T h a n h Commune,DucHoa
TradingandServiceCompany Ms.TranThanhNga Number10,NguyenDinhChieu,SocTrangCity SocTrang
Regardingtopromotion andcommunication strategy,PVFCCoshouldp ayattentiontothefollowingactivities:
The companyn e e d s toholdseminarsin the localities within the targetmarkettointroducetheproduct,whichcanhelpfarmersandretailersawareoft hep r o d u c t s andthesuperiorqualityofNPKfertilizeragainstothercompetitors.
InordertopopularizeaswellasprovideinformationaboutNPK product s,th e c o m p a n y n e e d s t o s e l e c t mediac h a n n e l s w h i c h a r e c l o s e t o f a r m e r s s u c h a s agricultureprogramsbroadcastedonradioandTV.Thecompanyshouldal sotaket h e agentsintheureanitratemarketasachanneltointroduceaboutNPKproduct s.Itisanimportantchannelandpopularwithfarmers.Thankstothesechannels,th efarmers’andagents’awarenessofPVFCCo’sNPKfertilizerwillbeimproved.
Agriculture,researchinstitutes,thec o m p a n y h o l d s f e r t i l i z e r m a n u r i n g d e m o n s t r a t i o n p l u s r e s u l t a s s e s s m e n t involvingoflargenumberoffarmers.Thepurpose istos h o w t h e farmerst h e u n d e n i a b l e effectivenessofPhuMyNPKfertilizer.
Providep r o m o t i o n toe n c o u r a g e a g e n t s a n d costumerst o trythep r o d u c t s Af ter samplethe products,c u s t o m e r s w i l l seet h e a d v a n t a g e featuresofNPKf er t il i z e r s , thisplaysanimportantpartinconvincingcust omersbuyingproducts.
Thetargetmarket:TayNguyen,theSoutheast andtheSouthwestaredecidedbasedonthefollowingfactors:theplantlocation,the marketcompetitivenessandtheattractivenessofthemarket.
VF CCo launchaproductwhichdifferedfromtherival’sproduct.Thisisthebasistoposit ionthecompany’sNPKproductinthetargetmarket.
2014.Tothisend,thea u t h o r haslogicallyrevisedthemarketingliterature,including: conceptsrelatingtomarketing,modelstoanalyzemacroandindustryenvironmentandmark etingmix.
1,thea u t h o r h a s a n a l y z e d t h e situationofPVFCCo’sNPKfertilizer.Thethesis coverst h e macroandi n d ustrye n v i r o n m e n t a n a l y s i s o f N P K f e r t i l i z e r , majorr i v a l s ’ m a r k e t i n g mix.T h e n , t h e analysiso f N P K m a r k e t h a s l a i d t h e f o u n d a t i o n o f t h e m a r k e t i n g s t r a t e g i e s tod e v e l o p PVFCCo’s NPKtargetmarket.
Despitet h e e f f o r t h a s madet o f u l f i l l t h e thesisu n d e r theg u i d e l i n e s o f Departmento f B u s i n e s s A d m i n i s t r a t i o n a n d t h e i nst ru ct or , t h e p a pe r m a y remainsomeshortcomingsduetothelimitedresearchmethodologyandknow ledge;thus,t h e authorlongstoreceivethefurtherconstructivecommentsfroms c i e n t i s t s , teachers,colleaguesa n d fellowsinordertomakethethesismorepracticalandscient ific.
[1].Dr.VoMinhSang(2003),QuảntrịMarketing,NXBThongKe,Hanoi[ 2] Dr.Tran
MinhDao(2002),MarketingCanBan,NXBGiaoDuc,Hanoi[3].PhanVanThang,
(1998),NghienCuuMarketing,NXBThongKe,Hanoi[ 4 ] http://www.dpm.vn
[6].http://www.hsc.com.vn
[7].http://www.gso.gov.vn
[8].http://www.agroviet.gov.vn
[9].http://www.cuctrongtrot.gov.vn
[10].http://www.customs.gov.vn
[11].http://www.vinachem.com.vn
[1].BrianToyne,PeterG.P.Walters(1989),GlobalMarketingManagement,Allyn
[2].David A, Aaker, Hoboken, John Wiley (2005), Strategic
MarketingManagement,Hoboken, NJ:JohnWiley,NewYork,U.S.A [3].MichaelJohnBaker(2001),MarketingTheory,Macmillan,U.K
[4].MichaelE.Poter(2001),CompetitiveStrategy,HarvardUniversityPress,U.S.A[ 5 ] Phi lipKotler(2003),MarketingManagement,PrenticeHall,Singapore
[6].WilliamD.Perreault,E.JeromeMcCarthy(1988),BasicMarketing,McGraw–
[7].PhilipKotler( 2 0 0 1 ) , A Frameworkfor MarketingManagement,Prentice- Hall,U S A
[8].KennethL.Bernhardt, Thomas(1978), CasesinMarketing, Dallas: Busi ness P u b l i c a t i ons,Ohio,U.S.A
NPKf e r t i l i z e r i s a c o m p o u n d o f N , P a n d K , w i t h a ce r t a i n p r o p o r t i o n o f each elementtomatcht h e typeo f c r o p s , s o i l s a n d c a n b e u s e d o n mostp l a n t s B e s i d e 3mainelements,namelyN,PandK,sometypesofNPKfertilizerareaddedS,Mg, Caandothermicro-elements.
- 3elementsf e r t i l i z e r N P K a d d e d s e c o n d a r y e l e m e n t s ( C a , M g , S ) a n d m i c r o - elements(Fe,Mn,Zn,etc.)
Basedo n s c i e n t i f i c r e s e a r c h , f e r t i l i z e r p l a n t s c u r r e n t l y p r o d u c e c o m p o u n d f e r t i l i z e r s a n d m i x e d f e r t i l i z e r s f o r s p e c i f i c typeo f p l a n t s s u c h a s f e r t i l i z e r f o r r u b b er t r e e, c o f f e e tree, t e a , v e g e t a b l e , legum e,f l o w e r , p e p p e r , c a s h e w , f r u i t - t r e e a n d othercrops.
18%N,18%P.Itisins o l i d drygrainandcanbe solublecompletelyinwater.This typeoffer t il iz er oftenmixedwithsuperphosphateandsulfateofa m m o n i u m
- Potassium nitrate: this 2 elementsfertilizercontains13%N a n d 4 5 % K Thisfertilizerisu s e d to supplyKaliforsoil.
- PKfertilizer0-1-3.Produced byblending55%superphosphatewith45%KCl
- PKfertilizer0-1-2.Produced byblending65%superphosphatewith35%KCl.
NPKratiois1-0.4-0.8.Thistypeoffertilizer isproducedbyblendinga m m o n i u m withsuperphosphatewhichhas beenneutralizedinKCl.
+Onew i t h NPKratio 1-0.4- 1.3:Producedbyblendingsodiumnitratewithphosphoricacid.Thenutrie ntsinclude:N - 1 3 % ; P - 5 7 % ; K-17.4%.
- VanDiengrainNPK:WiththeNPKratioof5-10- 3.BesidesNPK,thefertilizeralsoincludesMgO- 6.7%;SiO2-10- 11%;CaO-1 3 -14%.
- 3colorNPKfertilizers: ProducedbyBinhDienIIw i t h therati osof:15-15-15,16-16-8,14-8-6,1515-6,and20-20-15.
G CÂUHỎIĐIỀUTRATHỊTRƯỜNGPHÂNBÓN ĐểPVFCCocócơsởđưarasảnphẩmphânbónNPKvàdịchvụtốtnhấtchobàconnôngdân,A nh/Chịhãytrảlờicáccâuhỏidướiđây.Nhữngýkiếnđónggóp củaAnh/ChịcóýnghĩarấtquantrọngđốivớiPVFCCo.
TV,Radio,Tờrơi Bạnbè,ngườithân
6 Anh/ chịcóđược hướngdẫncáchsửdụngp h â n bónnóiriêng vàcáchsửdụng kiếnthứcnôngnghiệpnóichungkhông?
InordertoproducebestNPKfertilizerproductsandbestservicesforfarmers,p lease kindlya nswerthequestionsbelow.YouropinionsareveryimportanttoP V F CC o
Agriculturalplants (Rice,corn,sweetpotato,etc.)Indu strialplants(Rubber,cashew,coffee,etc.)
10 MentioningNPKfertilizer,whichnameareyouthinkingof? inhĐien amThao etNhat
TV,Radio,Leaflets Friends,Family