OVERVIEW OF MARKETING COMMUNICATION
Marketing overview
The term "Marketing" originated in 1902 at the University of Michigan and has evolved significantly alongside human civilization Its continuous transformation is evident through the emergence of various marketing concepts across diverse fields, including business, politics, culture, sports, and science.
According to Phillip Kotler - a famous American marketing professor, has defined that: "Marketing is a form of human activity to satisfy their needs and wants through communication processes."
(Source: Philip Kotler (1994), Marketing Management, Statistical
In 2007, the American Marketing Association updated its definition of marketing to reflect the evolving business landscape, stating that marketing encompasses a range of activities, structures, mechanisms, and processes aimed at creating, communicating, and delivering value to consumers, customers, partners, and society as a whole.
Professor Dr Tran Minh Dao emphasizes that marketing extends beyond mere business management; it encompasses various business activities This includes identifying consumer purchasing power, converting that potential into actual demand for specific products, and ensuring that goods reach the final consumer, all aimed at maximizing profits for the business.
(Source: Tran Minh Dao, Basic Marketing, National
Marketing encompasses various definitions shaped by individual and organizational perspectives, yet it fundamentally serves as a social process where entities fulfill their needs and desires through the creation and exchange of valuable knowledge Consequently, the scientific study of marketing and its practical application are essential for the success of modern businesses.
1.1.2 The role and function of marketing
Marketing is essential for businesses, consumers, and society as a whole, creating a unified connection among stakeholders It serves as a bridge between customers and businesses, enabling companies to align their production and activities with consumer needs, ultimately driving revenue and profit Additionally, marketing adapts to changing economic conditions, helping businesses thrive and achieve sustainable growth.
Marketing activities are crucial for a company's market position, encompassing market research, cataloging, production, distribution, and ongoing sales operations The marketing management function is intricately linked to other management areas, serving to align and integrate these functions Its primary goal is not only to attract customers but also to identify effective tools that meet customer needs and drive profitability for the company.
In general, the marketing function in the business always shows the following basic contents:
Who are your customers? Where do they buy? How much do they buy? How do they buy? Why do they buy?
When considering the essential goods needed, it is important to identify their specific characteristics and relevance Understanding the necessity of these goods over alternatives is crucial, as it highlights their unique benefits Additionally, evaluating whether the current attributes of these goods remain applicable ensures they meet the evolving demands of consumers.
Understanding the advantages and disadvantages of enterprise goods is crucial for informed decision-making Evaluating whether changes are necessary can significantly impact overall performance Identifying which properties require modification is essential for optimizing efficiency and competitiveness Failing to implement changes may lead to stagnation and loss of market relevance, while embracing change can enhance innovation and customer satisfaction, ultimately driving business growth.
Determining the optimal price for goods involves assessing various factors, including market demand, competition, and customer expectations It's essential to evaluate whether the current pricing remains suitable or if adjustments are necessary Considerations for price changes should include the extent of any increase or decrease, the timing of these adjustments, and the specific customer segments and products affected By strategically setting prices, businesses can enhance profitability while meeting consumer needs effectively.
Businesses face critical decisions regarding whether to manage their sales internally or engage intermediaries, as well as determining the optimal timing and volume for market entry Understanding how customers discover, purchase, and develop loyalty to products is essential, and companies must evaluate the necessity of after-sales services The choice of service type is influenced by customer needs and business strategy, highlighting the importance of aligning sales methods with overall marketing objectives Ultimately, these questions extend beyond marketing, emphasizing the need for a comprehensive approach to sales and customer engagement.
The marketing function is crucial for business success, serving as one of the four essential functions alongside production, finance, and human resource management To ensure survival and foster growth, businesses must prioritize the development of their marketing strategies.
Overview of marketing communications
Marketing communication, as defined by Philip Kotler, involves the strategic activities of conveying information about both the product and the business to customers The goal is to build trust in the business and its offerings, ultimately encouraging customers to make purchases.
(Source: Philip Kotler (1994), Marketing Management, Statistical
Marketing communication aims to inform, persuade, and remind audiences about a business's products and brands By delivering effective messages, businesses can highlight their product's market presence, showcase its advantages over competitors, and ensure that customers recall the product when a need arises.
1.2.2 The role of marketing communications:
Marketing communication is a crucial component that enhances other marketing mix strategies Effective marketing tactics can minimize the need for extensive communication efforts In today's fast-paced market, where product life cycles are increasingly brief, the adage "Good wine needs no bush" has become outdated.
Marketing communication plays a crucial role in informing potential customers about the benefits and values of products, ultimately driving sales and fostering brand awareness By effectively conveying the advantages and uses of both existing and new products, businesses can enhance customer preference and build a positive brand image To maximize the impact of their communication efforts, companies must integrate their strategies with other elements of the marketing mix, creating synergistic effects that promote brand growth and recognition.
To select the best media for communication, companies should analyze five key tools: Advertising, Public Relations, Promotion, Direct Selling, and Direct Marketing By strategically substituting one promotional tool for another, businesses can enhance efficiency and achieve cost savings Companies can utilize standalone communication tools to meet specific goals, while those engaging in multiple activities can benefit from coordinated communication strategies.
“Advertising is any presence of any kind of goods, services, intentions, ideas… acting through the mass media for which one has to pay to identify people advertisement.”
Advertising is the attempt to influence the buying behavior and habits of consumers by providing convincing sales messages about a seller's product or service.
In today's competitive landscape, advertising is crucial for capturing consumer attention and driving sales, despite facing challenges from an increasing number of ad units It serves as a vital information tool that influences public perception and encourages the purchase of products or services through compelling imagery and messaging Effective advertising aims to generate interest and awareness among both current and potential customers, while the industry continues to evolve rapidly in response to changing social trends.
Some media are commonly used for advertising such as television, radio, websites, newspapers, magazines, signs, advertising panels
Television advertising effectively reaches a wide range of consumers through engaging sound and vibrant visuals While it is often the most costly form of advertising, it can also involve indirect costs through sponsorship of shows or the use of advertising logos.
As information technology and the internet continue to evolve, online advertising has become a crucial strategy for companies Businesses leverage various digital platforms, including email marketing and video ads on websites, to reach a wider audience With the internet being a staple in many households today, it offers a significant opportunity for brands to enhance their visibility and engage with consumers effectively.
Advertising on public transport, particularly on buses, involves showcasing products and company names on vehicle exteriors This method is effective due to the large surface area of buses and their daily exposure to numerous passengers It is commonly used for promoting long-lasting products or establishing brand identity, rather than for short-lived or quickly outdated items.
Point-of-purchase advertising is a marketing strategy where sellers showcase product features and benefits directly at the location where customers make their purchases This cost-effective approach not only piques curiosity but also effectively draws customers in to engage with the product.
"Public relations is a form of non-personal communication about an organization, product, service or idea that the subject does not have to pay directly."
The public plays a crucial role in a company's success, either supporting or obstructing its objectives To effectively manage public perception, companies must implement strategic public relations initiatives This involves monitoring public attitudes, disseminating information, and fostering credibility In the event of negative public sentiment, it is essential to develop strategies that counteract harmful rumors and enhance the company's image Key activities in public relations include proactive communication and reputation management.
Media relations involve disseminating valuable information through mass media to garner attention for individuals, products, or organizations, including translation departments Product propaganda encompasses various strategies aimed at promoting specific products through persuasive claims.
Corporate communications: including internal and external media to deepen the understanding of the company
Lobbying: working with legislators and government officials government to promote or repeal a law or regulation
"Sales promotion or promotion is short-term immediate measures that encourage an immediate trial or purchase of a product or service or to buy more."
Sales promotions positively impact sales growth by offering buyers tangible benefits such as bonuses, discounts, and prizes While advertising alone may not guarantee an immediate purchase response from consumers, promotional activities complement advertising efforts by encouraging and motivating potential buyers to make quicker purchasing decisions.
Promotions are designed to boost consumer demand and encourage increased purchases of goods or services offered by a business For distribution intermediaries, these promotions aim to enhance distribution efforts, drive sales activities, strengthen and expand distribution channels, and maintain consistent market presence to facilitate market growth.
There are a variety of different stimulus tools available to accomplish this goal Promotion tools can be divided into the following groups:
The group of tools that generate economic benefits that directly push consumption includes:
Samples, gift certificates, generic goods, and gifts play a crucial role in marketing strategies They encourage trial use, allowing customers to experience products firsthand Samples can be effectively distributed in-store or sent directly to consumers' homes by marketing staff, enhancing brand engagement and driving sales.
Marketing communication planning process
To effectively organize communication, businesses must grasp the fundamentals of how communication operates, structure a communication campaign, and recognize the essential components of the communication process within their strategic framework A successful campaign involves following key steps that ensure clarity and impact.
1.3.1 Identify the target audience group:
An organization’s public consists of both internal and external groups it engages with, making it essential for communicators to clearly identify their target audience For businesses, this public may include potential customers, existing users, decision-makers, or influential individuals The target audience can range from individuals to specific groups or the general public Understanding this audience is crucial, as it significantly impacts media decisions regarding messaging, timing, and delivery methods.
After identifying the target audience and their characteristics, marketers must determine how to effectively respond to their needs The goal is to encourage purchases and ensure customer satisfaction However, buying behavior is the culmination of an extensive consumer decision-making process Therefore, marketers need to understand how to elevate the target audience's willingness to buy.
Marketers can analyze public perceptions and behaviors to identify their target audience This approach allows them to influence consumer attitudes and motivate actions by instilling specific ideas in their minds.
In marketing, establishing clear and specific goals is essential for developing effective strategies These goals enable marketers to assess the success of their marketing efforts By utilizing the SMART principles—Specific, Measurable, Achievable, Relevant, and Time-bound—marketers can effectively reach their objectives.
Specific - specific, easy to understand: The goal must be specific as it guides future activities.
Measurable - Measurable: A given target must have a specific unit and number that can be measured.
Achievable - fit: A goal must be challenging to try, but don't set an unattainable target either.
Realistic - reality: This is the criterion that measures the balance between the performance and the resources of your business (time, personnel, money ).
Deadline: All work must have a deadline, otherwise it will be delayed. Having the right time helps you both achieve your goals while nurturing your other goals.
The relationship between behavior and perception is crucial in marketing, especially when consumers exhibit high attention but show minimal awareness of differences within a product category, such as bottled water Additionally, the "perception-behavior-perception" chain highlights that when consumers are less engaged, effective communication planning by marketers becomes essential to enhance understanding and influence purchasing decisions.
(Source: www.voer.edu.vn)
In this article, we will focus on a discerning buyer who pays close attention to the specific characteristics of a product and understands the nuances within its category.
"degree of efficiency" model (cognitive, sensory, behavior) and describe the six buyer readiness states - awareness, knowledge, liking, preference, conviction,and purchase.
To effectively engage the target audience, communicators must first assess their awareness of the product or organization If the majority are unfamiliar, it becomes essential to introduce the business name through clear and repetitive messaging While conveying this basic information is crucial, it also requires time and strategic planning to ensure the audience becomes familiar with the brand.
To effectively engage the target audience, it is crucial to bridge the gap between their awareness of a product or business and their understanding of it The communicator's primary objective is to enhance the public's comprehension of the business and its offerings.
To foster positive public perception of a product, businesses must assess whether consumers feel a connection to it If sympathy is lacking, launching a media campaign can help build goodwill However, if the product has significant flaws, it's crucial for the business to prioritize improvements before relying on marketing efforts Effective public relations hinge on the principle that "good actions precede good words."
To enhance product popularity, it's essential to highlight its standout features, such as competitive pricing and superior quality, especially when the target audience shows a preference for it over other options By effectively promoting these attributes, you can persuade potential customers to choose your product over the competition.
To effectively persuade a target audience that is interested in a product but hesitant to make a purchase, the communicator must instill a strong conviction that choosing to buy the product is the right decision.
Some members of the target audience may have an interest in the product but are not yet ready to make a purchase They might be seeking additional information or planning to buy at a later time It is essential for the communicator to guide these potential customers towards making a final purchase decision.
The six consumer readiness states are organized into three phases: perception (knowledge and awareness), feeling (liking, preference, and conviction), and behavior (purchasing) Consumers may find themselves in any of these six states, and it is essential for marketers to identify the predominant stage of their target audience This understanding enables the development of effective communication campaigns aimed at guiding consumers to advance to the next stage of the buying process.
To craft an effective message that elicits the desired response from a buyer, it's essential to address four key elements: the content of the message, the logical structure for clear communication, the expressive form to engage the audience, and the credible source to deliver the message convincingly.
Factors affecting the implementation of the marketing
The marketing environment encompasses all internal and external factors that can positively or negatively impact a business's marketing activities and decisions It plays a crucial role in establishing and maintaining relationships between companies and their customers.
To thrive in a competitive landscape, businesses of all sizes must confront internal challenges that can significantly impact their marketing efforts These internal factors play a crucial role in shaping a company's ability to maintain and grow its market presence.
Financial capability is a crucial factor for businesses, significantly influencing their promotional activities It is essential for companies to assess their financial resources before launching a communication campaign The available budget determines the strategies marketers will explore, enabling them to select the most effective communication solutions that align with their financial constraints.
Effective human resources management is crucial for any enterprise, as it involves decision-making and overseeing all production and business activities The staff plays a vital role in executing these decisions; however, inadequate employee performance can negatively impact communication efforts and tarnish the company's image During peak periods, businesses often face staffing shortages for communication activities, prompting them to partner with communication firms While this approach may incur higher costs, it offers efficient solutions to personnel shortages, making it a popular choice among businesses today.
Physical factors such as infrastructure, equipment, and technology play a crucial role in a business's marketing communication A company with modern facilities and resources can enhance the effectiveness and reliability of its marketing efforts compared to its competitors Additionally, financial resources are vital, as they determine a company's ability to execute trade promotion programs A substantial budget is necessary for implementing successful marketing strategies, making financial planning an essential aspect of achieving marketing objectives.
Customers are the key drivers of revenue for a business and play a crucial role in shaping its communication strategies Their feedback and assessments provide valuable insights that guide the next steps in a company's marketing efforts Understanding customer needs and preferences is essential for effective communication and business growth.
In the 21st century, as our country integrates with regional and global markets, domestic enterprises are experiencing increased commercial activity while simultaneously facing significant challenges They must compete not only with local businesses but also with foreign companies that possess ample financial resources, skilled labor, and advanced production technologies, leading to numerous difficulties for these businesses.
As our country's economy develops and globalization expands, customers enjoy an increasing array of choices, making it more challenging for businesses to attract and retain buyers To thrive in this competitive landscape, companies must enhance their competitiveness by effectively promoting their products and ensuring that information reaches a broader audience Effective product communication is essential for every business aiming to succeed in today's market.
To effectively meet the demands of their target markets, businesses must not only analyze their competitors and develop successful strategies to compete but also stay informed about various public interest issues that resonate with the community.
Publics refer to groups of individuals who are either currently or potentially engaged with an organization and can influence its ability to meet its objectives To succeed, businesses must develop marketing strategies that address both public and consumer markets Generally, every organization has specific publics that they must consider in their planning.
Financial public: Financial institutions, banks, investors, securities companies, and insurance companies affect the ability of enterprises to borrow capital.
Media publics: Enterprises must instill the trust of public opinion organizations, especially newspapers, magazines, radio and television.
Government publics: Enterprises need to pay attention to the opinions of the government when formulating marketing plans such as true advertising, safe production, anti-competition laws.
Citizen action groups, including consumer and environmental organizations, often scrutinize business marketing practices For instance, certain researchers have challenged the marketing of candy, highlighting its minimal nutritional value and potential links to tooth decay.
Businesses should actively engage with their local communities by collaborating with local organizations To maintain strong connections, many large companies hire local communication specialists who attend meetings, address inquiries, and support charitable initiatives.
Businesses must consider the public's perceptions of their activities and products, as these attitudes significantly impact customer opinions While the public may not act as a unified entity, their overall impression of a business plays a crucial role in shaping consumer behavior.
Internal publics of a business encompass employees, intellectual workers, executives, and the board of directors When employees feel valued and comfortable within their organization, their positive attitudes can significantly influence the external perception of the business.
External factors include social forces that influence the overall marketing communications of a business, including:
With a population exceeding 80 million, our country presents a significant market opportunity for businesses Understanding the population structure is crucial for effective marketing strategies, as it directly relates to consumer behavior Notable demographic trends, including population growth, shifts in age distribution, and changes in population density, profoundly influence business operations and marketing initiatives.
So the change of population between geographic areas will change the market density of those regions, leading to the implementation of marketing communication will have to change.
Criteria to evaluate the effectiveness of marketing
Effective planning and management of marketing communications hinge on the evaluation of communication performance By actively monitoring communication activities, businesses can quickly identify and address issues within their campaigns, ultimately saving both time and money Preventing costly mistakes is far more efficient than rectifying them after they occur To keep communication efforts aligned with strategic goals, management should implement a robust system for tracking and assessing performance outcomes, utilizing criteria such as the appropriateness of the communication budget.
In today's highly competitive business landscape, mixed promotion has emerged as a crucial marketing strategy, demonstrating its effectiveness through the substantial investments made by large companies This multifaceted approach encompasses advertising, communication, sales promotion, and support for product policies, pricing, and distribution By bridging the gap between supply and demand, mixed promotion not only enhances consumer choice and consumption but also aids sellers in minimizing business risks.
One of the primary challenges in managing marketing budgets is determining the optimal allocation of funds across various channels such as radio, print, digital advertising, and public relations For large and medium-sized enterprises, strategic budgeting is crucial, as it involves prioritizing spending categories based on available resources Effective communication planning is essential to maximize profits while ensuring the budget is utilized wisely.
Many companies still depend on a limited number of communication tools to meet their goals, despite significant market changes that have fragmented the mass market into various sub-markets, each requiring tailored communication strategies The rise of new media and consumer insights has heightened the need for diverse promotional tools, compelling businesses to adopt a more integrated and innovative approach to their communication efforts At this juncture, managers must reassess objectives, environmental conditions, and strategic content while evaluating and securing resources for effective implementation Developing an adaptable organizational structure is crucial to accommodate potential changes, and ongoing analysis and supervision are essential for successful strategy execution Flexibility is key for managers to navigate the necessary adjustments and achieve their desired outcomes.
After conducting mixed promotional activities, it is essential for the communicator to evaluate their impact on the target audience This includes assessing whether the audience noticed or remembered the message, how frequently they encountered it, and what aspects resonated with them Additionally, understanding their emotional response and their attitudes toward the company's product, both current and past, is crucial Collecting public response metrics, such as the number of purchases, likes, and conversations generated about the product, will provide valuable insights into the effectiveness of the promotional efforts.
Object-specific marketing activities focus on program creation with defined objectives To assess the effectiveness of these marketing communications, it is essential to align evaluations with the specific targets of the campaigns Key metrics can be employed to measure audience engagement and the overall impact of the marketing efforts.
Perception measurement assesses awareness and identification of a product, primarily focusing on two key aspects: impact and recall impact.
Measurement of knowledge: after the effect of awareness is knowledge. Insight measurement is to measure the audience's receptivity to communication messages.
Effective measurement involves assessing the impact of information on an object, focusing not only on whether the information was received but also on the degree of influence it had Administrators aim to understand the level of impression the object experiences as a result of this information.
Intent measurement involves assessing how well marketing communications influence an informed recipient's planned actions based on the provided information This process evaluates the effectiveness of media units in achieving specific objectives within a designated timeframe.
1.5.4 Compare performance with set standards
At this stage, the company must establish clear principles to assess the acceptable standards of performance, distinguishing between right and wrong By comparing actual performance results with the expected outcomes, the advertising administrator can identify the necessary actions to take.
Once marketing communications are initiated, the administrator must ensure the program operates as planned Following an assessment, three possible actions can be taken: no action, corrective action, or preventive action.
In situations where the difference between actual performance and established goals is minimal, opting for inaction may be the most prudent choice If the gap remains within acceptable limits, taking no steps can help prevent unnecessary resource expenditure for the organization.
Corrective action directly addresses underperforming marketing activities, particularly when sales to a target customer group fall significantly short of expectations This strategic approach is essential for optimizing marketing effectiveness and achieving desired outcomes.
Preventive actions: Preventive actions that do not address any immediate deficiencies but the purpose of which is to prevent serious problems right before they develop.
1.5.6 Some methods of evaluating communication effectiveness
When an advertisement is published, it reaches a specific audience, allowing us to track the number of responses received From these responses, we can identify individuals who choose to participate in the show, providing a clear metric to assess the effectiveness and success of the advertising campaign.
Statistics on customer demographics indicate that the effectiveness of news in newspapers, radio, or television is determined not just by the news size or airtime, but also by the quality of the audience By analyzing the number and characteristics of the audience, we can better understand who has the opportunity to engage with the message.
Opinion: Changing public opinion or perception can be measured by a
Feedback via media: Customers can send comments to the company via email so that the company can change to meet needs.
Evaluation by analyzing the statistical results: Did the number of spectators support Hoai Linh increase after the PR activities ended?
Evaluate the increase in knowledge: Customers are interested in or participate in the programs of the company organizations.
1.6 Overview of brand awareness communication
Actual situation of communication marketing activities of TAME's VICHI cream products
Overview of TAME CO., LTD
2.1.1 The process of formation and development of TAME CO., LTD:
2.1.1.1 Introduction of TAME CO., LTD:
- Company name: TAME VIETNAM CO., LTD
- Short Name: TAME CO., LTD
- Headquarters: Audi Building 8 Pham Hung, Me Tri, Nam Tu Liem, Hanoi
- Head office 2: 361 Pham Van Bach, Ward 15, Tan Binh District,
- Legal representative: Tran Van Tuan
- Charter capital: 10,000,000,000 VND (Ten billion Vietnam Dong)
2.1.1.2 History and development of TAME CO., LTD:
2010 - Establishment of TASA Strategy and Training Co., Ltd: Brand operating in the field of training, strategic consulting for individuals and organizations.
2016 - Established TAME Vietnam Co., Ltd.: A prestigious brand operating in the field of beauty and health care.
2017 - Established TAHOME Furniture Design and Construction Co.,
Ltd.: Brand in consulting, designing and executing interior furniture for families and businesses.
- Introduce to market the chocolate lipstick brand LYL: The predecessor of the cosmetic brand originating from pure chocolate KYS.
2019 - Merging 3 companies TAME-TASA-TAHOMES: Establishing TA
Holdings Group: A multidisciplinary group in the field of manufacturing and retailing healthcare products and services to improve the quality of Vietnamese life.
The KYS Chocolate cosmetic brand has officially launched, successfully securing investment capital and a comprehensive global development strategy from international experts This initiative establishes a strong foundation through its presence on the world's leading e-commerce platform, Amazon.
2.1.2 The organizational structure of TAME CO., LTD:
Diagram 1: Organization structure of the company
TAME GROUP General Meeting of Shareholders
Deputy General Director of Operations Division
TAMEGO JOINT STOCK COMPANY KYS JOINT STOCK COMPANY
(Source: Tame Vietnam Co., Ltd.) Functions of the departments :
Including 1 general executive director in charge of general management and control; 3 deputy directors are in charge of the company's own areas They set up quarterly, annual, and quarterly operational strategies for the whole company Monitor, manage daily work, plan company development strategy. Take responsibility before the law for all activities of the company.
The HR division is dedicated to aligning human resource strategies with the company's evolving business objectives by proposing and planning activities and budgets accordingly It manages departmental budgets to optimize operational costs while focusing on key areas such as talent attraction and development, cultural enhancement, internal communication, HR administration, and training initiatives.
Effective financial management involves planning, implementing, and overseeing the company's financial activities, guiding leaders to ensure compliance with state and internal accounting regulations Timely and accurate accounting of all assets, equity, liabilities, and financial transactions is essential for supporting business operations and achieving positive results Proper documentation of economic transactions enhances service quality and operational efficiency within the organization.
We propose and advise on brand marketing strategies aligned with the Company's business objectives, planning marketing activities and budgets accordingly Our focus includes developing content for brand and product promotion campaigns, managing and optimizing advertising efforts across various platforms We provide regular reports as required by the Company or Group Leader and ensure the Department's budget is built, implemented, and controlled to optimize operating costs effectively.
Advise management on effective business strategies while developing comprehensive business plans and ensuring the achievement of monthly, quarterly, and yearly sales targets Monitor the quality of work and products across departments to deliver high-quality service to customers Conduct research to identify and propose potential joint ventures and investment partners for equipment and machinery purchases essential for production and business operations Provide regular reports on strategic situations, alternatives, and collaborative opportunities with customers.
2.1.3 Business field and development orientation:
Table 1.1: Business lines of TAME Vietnam Co., Ltd
4 Wholesale of other household appliances
5 Wholesale of computers, peripherals and software
6 Wholesale of electronic and telecommunications equipment and components
7 Wholesale of other machinery, equipment and spare parts
8 Wholesale of materials and other installation equipment in construction waterpipe tobacco accounts for a large proportion in general stores
11 Retail sale of food in specialized stores
13 Warehousing and storage of goods
14 Retail sale of computers, peripheral equipment, software and telecommunications equipment in specialized stores
15 Retail sale of electrical household appliances, beds, tables, chairs and similar furniture, lamps and other household electrical appliances n.e.c in specialized stores
16 Retail sale of drugs, medical instruments, cosmetics and hygiene products in specialized stores
17 Remaining other business support service activities n.e.c
18 Manufacture of other food products n.e.c
(Source: https://www.thongtincongty.com/company/3f88dd6d-cong-ty- tnhh-tame-viet-nam/#ixzz6t78kdnrg)
- The current retail business is known as the main revenue generating potential for the company Among the 3 most potential products: Folliculitis,
Darkening and Hair Removal Besides, it also launched the KYS lipstick brand, but the sales were not very significant.
- Become a pioneering multi-industry enterprise in the field of production and services to improve the quality of life for Vietnamese people & export to international markets.
- “Ta” - We: TA Holdings was born to resonate & create lasting value for all partners, customers & each employee.
- Sales will be 5 times that of 2020 in the next 5 years
- Core value: o Dedication to customers o Discipline is strength. o Learning and creating o Vigorously exceed the target o Love together
The production and business situation of TAME
VICHI folliculitis cream product set includes 1 activated charcoal soap and a bottle of VICHI folliculitis cream.
VICHI activated charcoal soap effectively eliminates dirt, sebum, and long-standing bacteria from the skin's surface while cleansing dead skin cells Infused with essential ingredients like bamboo charcoal powder and grape seed oil, it offers purifying and antibacterial properties, enhancing the absorption of subsequent skincare products.
VICHI Folliculitis Cream features a powerful blend of Cajeput essential oil and turmeric essence, known for their antibacterial and antiseptic properties that effectively combat acne and pus Enhanced with gotu kola essence, the cream cools the skin and promotes tissue recovery, aiding in the regeneration of damaged skin Additionally, the inclusion of licorice essence helps diminish dark spots and scars while brightening inflamed skin.
Figure 1.2 Product image Vichi for folliculitis
(Source: https://tamegroup.vn/) 2.2.2 VICHI's business results in 2 years 2019-2020
Despite being a relatively new player in the market, Tame Vietnam Co., Ltd has faced initial challenges in establishing itself However, the company's expertise, high-quality service scale, and professional reputation have significantly strengthened its credibility The early successes achieved by Tame Vietnam serve as a solid foundation for future growth and development.
Table 1.2 Number of orders of TAME over the years 2019, 2020
From the table above, we can see the Company's activities as follows:
- Order volume of VICHI in 2020 increased by 1000 orders, equivalent to 1.5% compared to 2019.
- The number of orders of others in 2020 increased by 200 orders, equivalent to 1.25% compared to 2019.
In 2020, the Company experienced significant changes, with an overall increase in product orders compared to 2019 This growth can be attributed to strategic initiatives such as recruiting additional personnel, enhancing training for existing employees, and reaching out to a broader customer base Additionally, the Company implemented substantial promotions to attract customers with lower demand As a result, the number of orders in 2020 saw a slight rise, contributing to the Company's continued growth.
Table 1.3 TAME's business performance over the years 2019, 2020
According to data in Table 1.3, TAME Co., Ltd has entered a more competitive market, experiencing a significant increase in annual revenue, particularly over the past year This growth marks a substantial leap for the company in terms of both revenue and profit The data indicates that TAME Co., Ltd has successfully identified effective development strategies, overcoming initial challenges and disadvantages in the competitive landscape.
In the past two years, the Company has made significant achievements; however, it is essential to recognize the speed and limitations of these results within our business processes The following chart illustrates a comparison of the company's performance based on three key criteria: revenue, expenses, and profit before tax.
Revenue Expense Profit before tax
Chart 1.1 Chart comparing revenue, expenses and profit before tax
From the chart 1.1 comparing revenue, costs and profits above, we can make some preliminary assessments of the company's business situation as follows:
TAME Vietnam Co., Ltd has experienced significant revenue growth over the past two years, with profits showing remarkable improvement Notably, sales in 2020 reached approximately 1.5 times the revenue generated in 2019.
After six years of operation, Tame Vietnam Co., Ltd has seen impressive growth, with a revenue increase of 67.6% in 2020 compared to 2019, despite a significant rise in capital investment costs.
2019 - when the company has been in operation for 3 years, with the revenue of VND 24,587,000,000 Tame Vietnam Co., Ltd has taken initial successful steps in affirming its position However,
In 2019, the company generated significant revenue, with expenses reaching 83% of the total at 20,530,000,000 VND This high expense ratio was primarily due to increased investments in advertising, marketing, and business network expansion, as well as the hiring of numerous new employees The years 2019 to 2020 marked a crucial phase for the company's growth strategy.
The company has experienced a remarkable revenue growth of 67.6% and a profit increase of 60.2% Considering 2017 as a pivotal year, the company's profit growth rate has soared to 147.8% by 2020, following three years of continuous development.
The management's effective planning policies are reflected in the company's performance; however, expenses rose significantly, increasing from VND 20,530,000,000 in 2019 to VND 29,932,000,000 in 2020, marking a 68.5% hike This surge in costs can be attributed to a larger workforce, rising transportation expenses, and the high costs associated with employee equipment Furthermore, the company expanded its operations by hiring additional marketing and departmental staff To enhance employee morale, it also implemented policies to raise wages for high achievers and increased bonuses during the Tet holidays.
Marketing activities for VICHI products at Tame Vietnam Co., Ltd
TAME strategically segments the market based on consumer behavior, emphasizing efficiency in product usage The company primarily targets key demographics, including students, workers, office employees, pregnant women, and parents Additionally, TAME has introduced an eco-friendly chocolate lipstick that enhances lip care without causing darkening.
TAME's VICHI products are targeted at the primary and mid-market segments and are available nationwide through shipping and online shopping Despite being a recent entry into the market, VICHI has rapidly expanded its presence To further enhance product consumption, TAME aims to deepen its market strategy by clearly defining specific target customers.
Table 1.4 VICHI's competitors and target customers
2.3.2 Marketing activities for VICHI cream products at TAME Vietnam:
Kinds of product: VICHI folliculitis cream product set includes 1 activated charcoal soap and a bottle of VICHI folliculitis cream.
VICHI activated charcoal soap has the ability to remove dirt, sebum,
5 essential oil ingredients bamboo, Moso bamboo charcoal powder, grape seed oil have a purifying and bactericidal effect on the skin; thereby, increasing the penetration of the special cream.
VICHI folliculitis cream combines the powerful properties of Cajeput essential oil and turmeric essence, which provide antibacterial and antiseptic benefits to combat acne and pus Enhanced with gotu kola essence, it cools the skin and promotes tissue recovery, effectively regenerating damaged areas Additionally, the inclusion of licorice essence helps to diminish dark spots and scars while brightening inflamed skin.
Brand: VICHI products use a distinctive green mark symbolizing freshness and renewal On the label is printed the product name and the message of the VICHI product.
(Source: http://viemnanglong.tame.vn/ )
VICHI cream is packaged in a 50ml high-quality plastic bottle, while each bar of bath soap is securely wrapped to maintain hygiene and product integrity during storage and transportation Sourced from authentic distributors, the plastic jars ensure quality, and both the cream and soap undergo rigorous testing and research prior to market release Manufactured with advanced Korean technology, the VICHI product line for treating folliculitis and back acne is entirely natural.
Our bundled service offers nationwide shipping for all products through our social media platforms Customers can easily place orders via Facebook or our hotline and enjoy free shipping across the country Products are delivered within one day for customers in Hanoi and within 1-2 days for those in suburban areas Additionally, purchasing two or more courses qualifies customers for discounts off the listed prices.
The pricing of products in the oriental medicine and cosmetics sector is a crucial element influencing the company's marketing strategy.
Enterprises often utilize the direct method for pricing due to its suitability for simple production processes involving small items, high volume, and short production cycles This approach simplifies accounting, as it typically occurs at the end of the month, aligning with the reporting period for easier comparison and tracking Additionally, setting a company's prices involves not only the product's costs but also considers competitor pricing to ensure competitive adjustments.
Price for 1 course: 599,000 VND With COD shipping, customers will receive the goods after receiving the goods and carefully checking them It gives customers a sense of trust.
Table 1.5 Price list of VICHI products and prices of competitors
The company employs a product diversification strategy tailored to meet the varying skin conditions of customers Courses 1 and 2 are designed for individuals with mild inflammation, while COMBO 3 targets those facing severe and long-term skin issues, offering these treatments at a significantly lower price point This pricing strategy enhances the appeal of VICHI products, particularly for economically disadvantaged customers seeking effective skincare solutions.
The company implements discount pricing strategies, offering a 10-20% discount to assist economically disadvantaged customers Additionally, a volume discount of 30-40% is available for those purchasing large quantities or wholesale treatments This approach encourages customers to increase their purchases and focus on a single Facebook page, thereby stimulating both customer engagement and spa sales Furthermore, all orders qualify for free shipping, ensuring convenient delivery to the customer's location.
During special sales and holidays, the company offers promotional prices that are significantly lower than regular prices, appealing to a diverse customer base This attractive pricing strategy is particularly suitable for intermediate customers, as the company's quality and designs currently stand out from competitors However, to expand into larger markets, the company must enhance product quality to effectively compete and establish a stronger market presence.
As a company that manufactures and supplies products to customers, the company always focuses on product distribution The distribution strategies applied by the company are shown in the diagram below:
The company's products are distributed through 2 channels:
Channel 1 is a direct sales channel: in this way, customers come directly to the company's clinic Under this method, capital is divided because when selling directly, buyers will buy in small quantities, difficult to recover capital, need to open pharmacies in many areas However, businesses have opportunities and conditions to advertise, introduce products and answer customers' direct questions about their products, which contributes to strengthening the company's reputation in the market.
Channel 2 is a Facebook channel that consumes the company's main products and can reach customers across the country With the sale of products in this form, businesses are not divided into capital sources, the scale of operation can focus on the production phase, and sold goods can be sold more quickly to customers thanks to the sales network and professional enthusiastic staff The application of this sales method, in addition to the huge amount of sales, also helps businesses promote their brands more easily However, this is a sales channel that is difficult for businesses to manage and track Due to the accuracy of the feedback that businesses receive is limited by this channel In order to achieve high efficiency for this channel, enterprises need to apply many measures for financial work such as determining all parameters and revenue from employees who are communicated to manage the channel.
Current status of marketing communication for VICHI cream
products of TAME CO., LTD
TAME's public groups that influence the company's marketing communications include:
Target customers : VICHI is a product for people of all ages In particular, there are 2 main types of VICHI's consumers:
Ordinary customers: those who want home treatment and simple methods that do not take much time Their consumption is account for 50-65% of TAME's sales.
Customers with special needs: for customers with long-term inflammation and severe condition.
Office workers: This group of customers often has a need for cheap and safe prices With a less moving working environment, skin diseases are also quite serious.
Internal: are the officers and employees in the company, an important resource of the enterprise If businesses have the right assessment, care
Especially, it will contribute to the company's marketing communication activities enthusiastically and in good faith.
TAME Co., Ltd aims to enhance its marketing communication strategy by effectively implementing targeted marketing policies Recognizing that marketing communication activities are essential tools for business promotion, the company has established strategic goals for the next three years to ensure optimal execution of these initiatives.
The first goal is to increase the number of customers by 15% compared to
In 2020, increasing the customer base is essential for business growth Effective marketing strategies not only attract potential buyers for VICHI products but also enhance customer retention, fostering loyalty among existing clients This dual approach will gradually boost the overall number of customers.
TAME Co., Ltd aims to boost revenue by 20% and profit by 15% compared to 2020 by increasing purchase frequency among existing customers and attracting new ones To achieve these goals, the company must implement effective marketing strategies that foster innovation and engage both new and loyal customers Without compelling reasons for customers to choose TAME's products, they may turn to competitors, jeopardizing the company's objectives.
VICHI aims to enhance its brand image and expand its market share in Vietnam by emphasizing its commitment to quality products that cater to medical needs and ensure customer peace of mind Currently, 80% of the target audience recognizes the VICHI brand, with 60% expressing a strong affinity for it and 70% actively using its products.
Effective communication campaigns hinge on the clarity of the message a business aims to convey to its customers, with creativity playing a crucial role in their success For VICHI products, the Sales and Marketing Department follows a structured three-step process: designing the message, selecting and evaluating it, and implementing the final communication This systematic approach ensures that the messaging resonates with the target audience and enhances campaign effectiveness.
Diagram 2 Process of developing marketing communication messages at TAME
Evaluate and select message ideas
The communication message for TAME Vietnam Co., Ltd is crafted through a structured process led by the Sales and Marketing Department This message is designed to align with specific objectives while incorporating key ideas aimed at customers and competitors It is essential to consider the target market's characteristics and product points to ensure the message resonates effectively with the intended audience.
The next step involves assessing and choosing the most effective message ideas for the communication campaign After generating various messages, the Company will evaluate them based on their suitability, originality, and truthfulness to ensure the selected messages effectively resonate with the target audience.
The final step is to present the media message The selected message can be expressed through images, words, colors depending on the advertising medium selected by the business.
TAME Co., Ltd has established the communication message "VICHI - Solution for acne and folliculitis" as a key element of its campaign, reflecting its commitment to human health This well-recognized slogan emphasizes the company's long-term goal of treating and restoring skin after damage As customer awareness of VICHI grows, the brand aims to position itself as a leader in skin treatment, prioritizing the delivery of the safest and most effective solutions for its users' health.
2.4.4 Media that the company is using:
Advertising is an indispensable activity in business for every company that wants to promote its products to consumers.
Since 2015, the Company has been utilizing Facebook's advertising programs to effectively introduce products to consumers With ongoing efforts to enhance promotional opportunities since 2010, the Company is capitalizing on Facebook's expanding presence and popularity in Vietnam This growth signifies a significant development opportunity for VICHI.
Advertising in newspapers and magazines is a highly effective marketing strategy that consistently reaches a broad audience These platforms offer extensive information and in-depth content, allowing for increased visibility and circulation VICHI products are exclusively promoted in online newspapers, with this advertising initiative launched during the company's early years to support product introduction to the market.
VICHI enhances its marketing strategy by placing 1-2 eye-catching banners for its products within its own clinic, strategically positioned to maximize visibility and capture the attention of visitors.
The company leverages livestreams featuring renowned artists and key opinion leaders (KOLs) on social media to showcase product images, ensuring direct engagement with potential customers This strategy capitalizes on the extensive reach of information disseminated across the internet, television, and newspapers, allowing businesses to effectively promote their products to a vast audience.
Currently, promotional tools are very diverse Depending on the audience and promotional goals, the company chooses different tools:
Sales promotion activities for distribution intermediaries
In the past time, TAME Co., Ltd has used the following forms to maintain and encourage its members:
Special promotion for distributors: in the promotion period, the
During promotional periods, the company incentivizes intermediaries by offering additional products to those who purchase a specific quantity or actively promote the product.
Particularly for customers with large consumption levels, there is also a separate reward in the promotions.
Table 1.6 Gifts in the promotion program of Dai Xuan Joint Stock
The company consistently offers support for advertising and sales promotions to its retail customers, regularly implementing promotional programs designed to attract more customers.
Sales promotion activities for consumers: like for distribution intermediaries, the company has many sales promotion activities for consumers:
Gift giving in business often mirrors strategies used by distribution intermediaries, such as offering additional courses or lowering prices During the holiday season, companies enhance customer engagement by providing special promotions and unique offers.
Evaluate the effectiveness of the company's communication activities: 63
For TAME Co., Ltd., communication effectiveness assessment is carried out once a year to evaluate the results of the planning and implementation of communication programs that the Company has done
Table 1.8 TAME's business performance over the years 2019, 2020
From 2019 to 2020, the company's communication activities significantly contributed to its revenue growth, demonstrating their effectiveness in enhancing overall success These strategic communication efforts have provided the company with a competitive edge in the market.
In 2019, the company's sales revenue reached 24,587,705,194 VND, which increased to 36,362,982,172 VND in 2020, indicating a steady growth in revenue This significant rise can be attributed to an increase in both the number of customers and their consumption of the company's products.
In 2020, the company's profit increased by 11,775,276,978 VND compared to 2019 To get such results, the company has been more focused in its marketing strategy and constantly improving products.
Table 1.9 Sales volumes over time in 2020
The table above presents sales data analyzed by quarters, revealing that bottled VICHI products experience peak consumption during the winter and summer months This trend is attributed to the extreme weather conditions in these seasons, which drive an increased demand for hydration and wellness products Specifically, hot and dry summers, as well as cold winters, contribute to a rise in health-related issues, prompting consumers to seek out these products for relief and prevention.
The consumption of VICHI products is generally positive, yet sales remain low during the spring and autumn seasons due to weather-related factors Customers exhibit a demand for various products influenced by these seasonal changes To address this, the company should leverage seasonal weather insights and understand consumer psychology to develop effective marketing strategies that encourage product usage, ultimately fostering customer confidence in product quality.
The company has enhanced its marketing communication strategy to effectively expand its market share and boost competitiveness within the Vietnamese beverage industry By engaging in targeted communication activities, the company not only drives revenue and profit growth but also collaborates with media outlets to feature articles that elevate brand awareness and strengthen the image of its products.
In addition to quality, the company also has a diversified product portfolio with a wide range of products, meeting all the needs of people.
The company has launched promotional campaigns that encourage customers to purchase products as gifts, which is expected to boost sales and enhance customer engagement.
The flexible selling price policy is favorable for sales, helping the sales department to be proactive in negotiating sales contracts, boosting sales.
The company's products are distinguished by their adherence to safety standards, backed by a warranty card and certification from the Ministry of Health With a strong emphasis on quality management, rigorous quality control is implemented at every stage of production As a result, the company's offerings consistently meet high-quality standards, earning the trust of customers.
The sales team is well-organized and highly skilled, with employees dedicated to continuous improvement and skill development The company employs a diverse range of sales strategies, including direct sales and indirect sales through wholesalers and retailers, which has significantly accelerated product consumption and fostered market growth.
The company boasts an effective distribution social network channel system, which is essential for competing successfully and gaining customer loyalty throughout Vietnam.
The company's marketing communication programs have not achieved the desired effect because:
Investment in communication activities often comes directly from a business's profits or sales, which can limit their effectiveness Additionally, the high costs associated with television advertising frequently exceed the profits generated by such campaigns Furthermore, constraints on sales support funding can result in poorly executed advertising and promotional activities.
The company boasts a dedicated and professional workforce committed to achieving its goals However, the marketing team lacks the necessary experience, leading to suboptimal communication outcomes To adapt to the evolving business landscape, it is crucial to prioritize the recruitment of qualified staff, particularly in sales, by establishing stringent hiring criteria This necessitates a team with the right professional qualifications, ideally trained from specialized institutions.
Currently, the company primarily sells products through social networks and has not significantly expanded its presence in regional markets, particularly in Hanoi, due to the COVID-19 pandemic and restrictions on opening additional clinics.
The company faces significant competition from major players like Cao Bach Sam and Huyen Phi, as well as a growing consumer preference for ready-made products available in local drugstores Additionally, there is an increasing demand for direct medical examinations among the population.
Facebook's management system is becoming increasingly stringent, presenting numerous challenges for the company in its production, business operations, and marketing efforts Additionally, the business models on the platform are continually evolving.
The challenges faced by enterprises in their communication activities necessitate a serious evaluation and the implementation of practical solutions to enhance these efforts For effective development in communication, companies must prioritize ongoing research and improvement strategies.