FINAL EXAM’S REPORT
Global marketing management ( MKTE401)

1. Đoàn Ngọc Minh
Date of birth: 17/02/2001

Student code: 1915530803

2. Trần Thị Hà Vi
Date of birth: 01/10/2001

Student code: 1915530542

3. Nguyễn Thị Khánh Trang
Date of birth: 04/11/2001

Student code: 1915530702

4. Đặng Thị Phương Anh
Date of birth: 03/03/2021

Student code: 1915530703

5. Trương Thị Thạnh
Date of birth: 04/01/2001

Student code: 1915530806

6. Trần Thị Ánh Tuyết
Date of birth: 06/12/2001

Student code: 1915530809

Course code: FIATA1.1
Date: 10/7/2021
Time: 6h30
Examination room: MS Team

Report’s mark
Mark in number
Mark in words

Examiner’s signature
First examnier:

Second examiner:


REPORT SUBJECT: MARKETING ANALYSIS FOR CEVA LOGISTICS.
We chose China’s market as a specific foreign market of CEVA Logistics to analyze
the assigned contents

Question 1 (4points)
a. PESTEL analysis of CEVA Logistics in China Market
-

Political:

For forwarding activities, the operation license will be removed, the rate of joint
venture capital is not limited. In regard to international sea freight activities, shipping
lines are allowed to provide logistics management services. Besides, in road transport

services, foreign companies are only allowed to operate road transport services
through joint ventures. CEVA, Inc. can hold a controlling stake in joint ventures and
after 3 years these companies can establish 100% foreign owned enterprises. In
express delivery service, foreign companies can keep a dominant share of capital in the
joint venture and are allowed to establish 100% foreign capital.
-

Economical

China has a socialist market economy. GDP of China is $14.9 billion (2020)1. In the
last four decades, China has achieved amazing economic growth, nearly 10% a year.
Cheap labor is a competitive advantage of China. However, China's inflation rate and
property costs are frighteningly high. China is a manufacturing giant, a “fragrant cake”
for the logistics companies to invest in. China has a high income tax rate but a fair
corporate tax rate, which is very attractive for CEVA to run business in China.
-

Sociocultural:

Entering the China market, CEVA Logistics should take some cultural factors into
consideration, such as China's labor force demographics and professional level, the
way in which society's power and status are classified, leisure pursuits (consumers and
workers) and the outlook toward health, environmental consciousness. International
standard and level of education; Chinese culture concerning about: gender roles, social
conventions,...; the wider character of society and the entrepreneurial spirit are
considered to be a sociology of development approach.
-

1


Technological:

/>

CEVA should consider the following impacts: technological developments ofCEVA,
Inc.’s competitors in China; the technological knowledge and tailored services in
comparison with competitors in China; the quantity of services or processes related to
logistics using technology implementation.
- Ecological:
Pollution is a colossal problem in China. The Chinese government’s current five-year
plan set a series of ambitious environmental protection and energy efficiency targets.
Clean energy alternatives have received renewed attention after some new policies
were announced with the aim of improving natural gas supplies and promoting the use
of ethanol as a renewable biofuel.
-

Legal:

The legal structure and institutions in China are not strong enough to defend the
organization's intellectual property rights. CEVA Logistics should carefully evaluate
some of the legal factors while entering China's market such as: antitrust law in
Logistics - Specialized industry, strict regulations on import and export goods,
protection laws, employment law, safety law, and data protection.
b. SWOT analysis
Strengths

Weaknesses

- The activation automation: bring quality
consistency products, enable the company

to overcome and reduce on the demand
conditions, built up a strong brand
portfolio, thus developing customer
reliance.
- Dedicated customer relationship
management department: reach a high
level of customer satisfaction
- CEVA, Inc. also invests enormous
resources in the training and development
of its employees to adapt to the new
market.

- The company had not made preparation
for financial flow as well as training high
- quality employees skills related to
product demand forecasting, thus leading
to less preparation for good opportunities
in this new market.
- The demand for new technologies.
- Limiting expansion in adjacent product
segments
- Investment in Research and
Development and the limited success in
outside business.


Opportunities
- The government's green initiative opens
the door for foreigners.
- Invest in both new technology and new

product sectors - new opportunities in
other product areas.
- Lowering the cost of transportation,
reduced shipping rates help to increase
profitability or pass on the savings to
customers to win market share in China.
- New technology will allow the company
to provide excellent service and attract
new customers through various valueoriented offers.

Threats
- The company can face lawsuits: various
and compound laws and continuous
fluctuations regarding product standards
in the markets.
- Shortage of skilled workforce, rising in
pay level can lead to serious pressure on
profitability of CEVA
- Giant domestics competitors
- The bargaining power of suppliers has
increased over the years with the decrease
in the number of suppliers. This means
that the costs of inputs could increase for
CEVA

Question 2 (2points)
For the China market, we advise CEVA Logistics should expand its activity in
China by joint ventures for a few reasons.
First of all, Joint ventures will be seen as how to satisfy local regulations as
foreign investors proposing to speculate in China should adjust to the restrictive

requirements regarding equity ratios (some of which is able to be phased come in the
approaching years). Administrative procedures in China also are complex and timeconsuming for non-experienced businesses in China. While most companies
collaborate with payroll and tax compliance providers, the establishment of a JointVenture would allow the corporate to learn directly from a Chinese counterpart so as
to manage bureaucratic complexities and government relationships.
Another advantage of joint ventures is that CEVA can utilize the sales channels
and distribution networks of a Chinese partner with local market knowledge and
established contacts.When enter the China market the corporate had not made
preparation for financial flow in addition as training high - quality employees, venture
helps CEVA make use of partner’s human resource and capital. CEVA could also use
the technology system of the partner company as China is one in all the foremost


developed technology industries. Some large firms in China have an automotive
logistics system like Anji. Using joint ventures mode is effective immediately to the
CEVA Logistics’ mission to become a leading continent-wide player. The new joint
ventures will be the opportunities for both entities to expand their product base when
using the partner’s local logistics services across the CEVA Logistics network.

Question 3 (3points)
- Segmentation: B2B Markets: Demographic (size of firm)
- Targeting: CEVA Target Segment: Large and medium-size Chinese companies.
- Positioning: CEVA Logistics Positioning: Operational Excellence
Recommend marketing mix strategy for CEVA:
-

Product

CEVA provides logistics services through four core business sections: Inbound
logistics, After Sales logistics, Import & Export logistics and Ground transportation.
The firm should also apply the technology to achieve the highest level of efficiency.

-

Place

CEVA Logistics offers a wide range of services both in contracts logistics and freight
management, operating more than 1,000 facilities in more than 160 countries 2. This is
the biggest competitive advantage of the corporation in distributing products and
utilizing available facilities. With joint venture strategy, CEVA should implement
multi-use facilities strategy for warehouse services as: B2B, B2C, (de)consolidation,
reverse logistics, break-bulk, ...to fulfil customer’s needs.
-

Price

CEVA should introduce discounts and allowances, where it lowers prices for a short
period of time in order to attract customers and gain market share. CEVA also thinks
about using psychological pricing where its prices products so that they seem to be
lower. In addition, CEVA can introduce new products with a price penetration strategy
where it offers an initial lower price than competitors to gain market share.
-

Promotion

CEVA uses multiple media channels to promote its services from traditional media
which includes advertisements on TV to online and social media platforms (YouTube,
Facebook, Instagram, and Twitter) which is cheaper and beneficial due to the
2

/>


increasingly prevalent usage of the Internet. From these online platforms, it has more
than one thousand likes and followers, which are exposed to frequent content uploaded
-

People

CEVA can utilize the human resources when it becomes a joint venture with Chinese
partner. CEVA also participates in a variety of training programs to help its employees
improve their communication, other skill sets, and to adapt with the new market.
-

Process

CEVA, Inc. could operate transportation channels through a tracking system and
estimate the lead time of products. Furthermore, CEVA is recommended to develop a
sustainable solution with advanced technology to reduce carbon footprint, thus
increasing customer’s confidence in using CEVA services.
-

Physical evidence

CEVA has a flexible logo with white/dark blue background, “CEVA” written in dark
blue/white and red font painted over its trucks, buildings, packaging materials and
brochures, website, business card also. CEVA also has more than two million square
metres of warehousing space and a ground transportation network managing more than
6,000 trucks, covering more than 400 cities and 22 provinces in China.3
Steps to implement marketing mix decisions
To implement marketing mix decisions in China market, CEVA should take on these
steps:
•


Step 1: Use the marketing mix model with the 7 Ps (as above) to make the
marketing plan meet the needs of the target customers.

•

Step 2: Organize the marketing effort of CEVA including people, processes,
and technology needed to carry out the marketing mix activities (market
research, questionnaire, survey, etc...)

•

Step 3: Develop a schedule to identify who will be in charge of carrying out the
activities and decide when the activities will take place.

•

Step 4: Create the marketing plan inside the company before selling outside

•

Step 5: Create an evaluation process to measure the results against the standards
CEVA set in establishing the goals, then consider other internal obstacles.

•

3

Step 6: Make an official plan and put it into practice.


/>

MEMBER EVALUATION

Question

Content

PESTEL analysis of CEVA
Logistics in China Market

Question
1

Student

Political

Nguyễn Thị
Khánh Trang

Economical

Trần Thị Hà Vi

Sociocultural

Trương Thị
Thạnh


Technological

Trần Thị Ánh
Tuyết

Ecological

Đặng Thị
Phương Anh

Legal

Đoàn Ngọc Minh

Strengths

Nguyễn Thị
Khánh Trang

Weaknesses

Trần Thị Ánh
Tuyết

Opportunities

Trương Thị
Thạnh

Threats


Đoàn Ngọc Minh

Joint venture
mode

Whole group

Product

Trần Thị Hà Vi

Place

Nguyễn Thị
Khánh Trang

SWOT analysis

Question
2

Mode of market entry for CEVA


Question
3

Recommend marketing mix
strategy for CEVA


Steps to implement marketing
mix decisions

Price

Đoàn Ngọc Minh

Promotion

Đặng Thị
Phương Anh

People

Trần Thị Hà Vi

Process

Nguyễn Thị
Khánh Trang

Physical
evidence

Đặng Thị
Phương Anh +
Trần Thị Ánh
Tuyết


6 steps

Trương Thị
Thạnh