Marketing Plan for Magnum in Vietnam Essay

merchandising preserve be defined as Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that take in value for customers, clients, partners, and society at large (American Marketing Association room of Director) Base on this definition, Marketing is the set of activities and processes with the purpose that satisfy the customers, clients, partners and society. In general, it can be said that grocery storeplaceing is the process that combine every(prenominal) friendship activities to satisfy the customers and, in the end, get good from customers contentment. 2. Element in trade processMarketing process includes quintette elements compend situation, securities industrying scheme, merchandising mix decision and implementation and control. depth psychology situation is first step in securities industrying process. In this step, union has to collect information, data and figure to understand int ernal and external environment. base on the result of the analysis, company can predict the trend of commercialize and compute that whether its ability can adapt with the market or not. In order to carry out this step, the company can do triad analyses below PESTEL analysis Political, Economic, Social, Technology, Ecological and Legal argon five macro-economic factors.They are very principal(prenominal) for company to evaluate the market and decide whether it can develop strongly in this market or not. SWOT analysis This method helps company identify its strong and weakness, also the opportunity and thread. look these things can make company developing more than stable and regulate the risk. It can use the strong to limit the thread and the opportunity to break the Strong and remove weakness. The meaning of the SWOT analysis can be described in the idiom He who sees through life and close leave cooperate most mastery 5C analysis 5 C means company, customers, competitors , collaborators and Climate.In these things, company helps the firms understand the internal environment, and 4 early(a)(a) help it understand the external environment. All of three analysis methods allow for help company understand the situation to shape the suitable strategy in marketing plan to get achievement. The second step in marketing process is marketing strategy. Of course, after finish situation analysis, company has to make strategy decision in marketing base on the analysis result. In this step, company has to identify the requirement of market and cull the suitable strategy to run business.It has to do the segmentation, the target market selection, the lieu the mathematical product and the proposition to the target market. In next step, the firm has to introduction tactical plan to achieve the purpose. It will make decision for the marketing mix. It includes 4 P Pr screwball Place of distribution harvest-homeion Promotion. When these things are completed, c ompany will go to the final step implement and controlling. Because the strike of market can change quickly, company has to monitor all the changes of market to have the change in marketing mix to adapt with the market and spend a penny the competitive advantage with competitor.Marketing process II. Marketing orientation course 1. Definition Marketing orientation is a company philosophy take away to meet the postulate and wants of customers. There are five type of marketing orientation * Product orientation * Production orientation * Market orientation * Sales penchant * Social Orientation a. Product orientation Product orientation is one of the marketing concepts, which focalization on the product world to satisfy demand of customers. b. Production orientation This kind of orientation focuses to the measure of product.It existed in 1950s the development period of industry in atomic number 63 and American. At this period, the firms make massive products to decrease the co st and product with gigantic quantity. The firms do not business organization about whether its product can meet the needs or not. This philosophy is popular in that period because it is the clip which has many inventions and people have huge demand for or sothing vernal and strange. The lighten example for this philosophy is Ford. It put upd many car in that time with estimable only color black and it has many successes with this orientation.Today, this philosophy is no overnight popular, but still exist in some industry that produce common product such as toothpick, CDs or DVD. c. Sales Orientation The next orientation is bargains orientation. This philosophy is utilize when the company uses rapacious sales. They believe that they will make more sales and more shekels when they use aggressive sales method. With these kinds of company, they will focus on furtherance product and train the aggressive sales force, which helps them carry out the sale method. The good exa mple for this philosophy should be insurance company.The disadvantage of this philosophy, resembling as production orientation, is that it does not focus to the customers requirement. It secure tries to sales product as much as possible. d. Societal orientation Societal orientation is the marketing concept that provides the long-term benefit for customers and shows its function with social. The products of these companies have same features such as good for health, no rail at environment and creating the long-term benefit for customers. They push the product through the benef scrapnce activities. e. Market orientationThe last philosophy, also the main philosophy that is applied to Kinh Do kitty, is market orientation. This orientation focuses on the customers needs and wants. The company produces product, which can satisfy the customer and use the customers satisfaction to create the profit. The benefit and cost of market orientation of Kinh Do Corporation will be discussed m ore in next part. 2. evaluation cost and benefit of Market orientation in Kinh Do Corporation As the assignment mentioned above, Market Orientation focuses on the customers needs and wants and the company will get profit base on the customers satisfaction.The relationship between customers satisfaction and companys profit is shown in the chart below As the chart shows, when the firm applies the marketing orientation, it will identify the demand of customers. after that, the firm will use the data from marketing department, and connect all the activities of company to carry out the plan, which has the purpose that satisfies the customer. When the customers are satisfied, they will create many benefits for the company, not only money, but also helps company advertise free with the word of mouth method.Kinh Do Corporation applies the marketing orientation, so it also gets the benefit from customers satisfaction. a. Benefits from Market orientation The first benefit for Kinh Do when ap plying Market Orientation is advertising free because of the word of mouth. With the suitable marketing plan, Kinh Do can satisfy the customers and improve the relationship between customers and company. With focus on the demand of customers, Kinh Do can improve the level of customer, from customer satisfaction to customer retention and customer obedience.After getting success to satisfy customers, customers will loyal with Kinh Dos product and will buy it again. Besides, they will recommend to other people about Kinh Dos product and so, Kinh Do will have more and more customers. That is the benefit when Kinh Do wants to launch Magnum ice cream. With the huge amount of loyalty customers and retening customers, Kinh Do can easily introduce new product to the market because the loyalty customers and retention customers willing welcoming and buying any product of Kinh Do, as long as it still satisfies their demand.The second benefit is that lessen the price sensitive. This is very im portant when Kinh Do wants to sell magnum in Vietnam, because Magnum ice cream is premium product, so it has higher price compare with the domestic help ice cream. However, with customer loyalty and customer retention, they will not care about the price of product. If it is suitable with their payment ability, they will buy and dungeon for this product. Last but not least, Kinh Do also can adopt the long-term profit from market philosophy.When Kinh Do can satisfy the customers and economise their loyalty, Kinh Do will gain a huge market piece and so, create the stable consumption ne devilrk for its product. After getting profit from customers satisfaction, Kinh Do can also use the profit to invest for new technology or new plan to expand the business and create the competitive advantage with its competitors. Launching Magnum ice cream is one of the important strategies of Kinh Do to get the market share in premium ice cream market.Finally, we can see the different between Kinh Do and Vinamilk- the two biggest food, drink and beverage companies in Vietnam. Vinamilk applies the societal orientation. It advertises its product through some charity programs such as dairy budget for children in Vietnam. The market share of Ki Do the ice cream brand severalise of Kinh do- is about 45,8%, equal double the market share of Vinamilk (about 20,8%). It can be seen that market orientation creates more benefit and stronger competitive advantage than other orientation. III. Effect of buyer behavior IV. Positioning