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<small> 1 </small> MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMY - FINANCE HO CHI MINH CITY

FINAL REPORT B2B MARKETING HOA PHAT GROUP

LECTURE NAME: Mr.Nguyen Duc Cong <small>Group 1: </small> 1. Doan Trung Son 2. Tran Quang Bao 3. Le Thi Quynh Nhu 4. Do Kim Truc 5. Tran Pham Gia Khiem Class code: MGT1133E-A03

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IV. Sale Strategy... 39

V. Human Resource Strategy ... 39

VI. Coaching and Training... 41

VII. Price strategy... 44

IX. Action programme 2023... 45

X. Sale Budgeting... 48

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<small> 5 </small>

XI. Market Offering... 50

XII. Total Customer Experience ... 66

XII. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ……….76

REFERENCES...89

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<small> 6 </small> I. COMPANY INTRODUCTION

1. About the company a. History

Hoa Phat Group, established in 1995, is the leading industrial production group in Vietnam and the largest steel producer in Southeast Asia. Starting from a company specializing in trading construction machines since August 1992, Hoa Phat in turn expanded into other fields such as Furniture, steel pipes, construction steel, refrigeration, real estate and agriculture. Karma.

The Group operates in 05 fields: Iron and Steel - Steel Products - Agriculture - Real Estate - Appliances. Steel production is the core field that accounts for 90% of the Group's revenue and profit

b. Vision

To become an industrial production group with leading quality, in which Steel is the core field

With a vision to become an industrial manufacturing corporation with leading quality and core field of steel. Hoa Phat Group has chosen quality as a development criterion, this is a correct strategic vision. Because only when the product quality is good, will customers trust it, and the guaranteed quality will build a reputation with customers. partners and customers. Not only that, the leading quality will help the corporation become the first choice of everyone, creating an unbeatable strength in the market. Since then, the company has grown and grown steadily. The company also emphasizes its core focus on the steel industry. This is the main industry and strength of Hoa Phat Group, bringing huge profits to the group. With advanced modern technology, Hoa Phat's steel quality is constantly increasing, plus the development of the world, as well as the construction industry, the steel manufacturing industry will also have a great influence. The quality standards will be larger, more difficult, more demanding on technology. Therefore, focusing on developing to lead in quality can meet the requirements of the market, only then can we develop.

c. Mission

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<small> 7 </small> Providing leading products, contributing to improving the quality of life, gaining the trust of customers.

Hoa Phat produces basic products for the economy, raw materials for other export industries, so quality must be the top concern. Hoa Phat always invests in improvement, focuses on producing leading quality products, constantly diversifying export markets, creating momentum for the consumption of Hoa Phat steel products in the domestic market as well as in the domestic market. In the following year, the group also strives to improve the quality of life and gain the trust of customers with product quality. Consumer preference will be a consequence of the development strategy. Along with the development of society, products are always aimed at customer benefits. Sustainable cooperation, reliable partner, bringing long-term value to shareholders. Bringing into play talent, wisdom and bringing a good life to the company's members with the prospect of expanding investment to make a great contribution to the prosperity of Vietnam. Building the two words Hoa Phat becomes a prestigious and transparent brand image in harmony and co-development as the business philosophy of "Harmony and development" of the corporation. Especially when Hoa Phat has grown to a much larger scale, becoming a large private corporation that has an influence on the overall development of the industry.

d. Goal : Hoa Phat Group - Vietnamese brand - Global class e. Core Values

The core value of Hoa Phat Group is the philosophy of Harmony and Development. This is reflected in the relationship between officers and employees, between the Group and its partners, agents, shareholders and the social community, ensuring the harmony of interests of stakeholders on the same boat. towards sustainable development. In particular, Hoa Phat Group has built a stable, long-term, trusting partnership with sales agents who have accompanied the Group since the early days of its establishment.

2. Organization structure

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<small> 8 </small> Hoa Phat has 4 corporations under the Group, including: Iron and Steel Corporation, Steel Pipe and Color Coated Steel Corporation, Agriculture Development Corporation, Real Estate Development Corporation.

Consisting of all shareholders with voting rights, the General Meeting of Shareholders is the highest authority, deciding on issues prescribed by Law and the corporation's charter. In particular, shareholders will approve the group's annual financial statements and the financial budget for the next year. The General Meeting of Shareholders will elect the Board of Directors and the Supervisory Board of the corporation.

- Administrative Council : As a management agency, it has full power on behalf of the corporation to decide on all issues related to the purposes and interests of the corporation, except for matters falling under the authority of the General Meeting of Shareholders. The Board of Directors is responsible for supervising the CEO and other managers. The rights and obligations of the Board of Directors are prescribed by the Law and the Charter, the internal regulations of the corporation and the resolution of the General Meeting of Shareholders. - Board of Directors : The Board of Directors consists of the General Director and

a number of Deputy General Directors. The General Director is the person who runs the daily operations of the group and is responsible to the Board of Directors for the implementation of the assigned rights and duties. The term of the General Director is 3 years unless otherwise provided by the Board of Directors. The Deputy General Director is an assistant to the General Director and is responsible to the General Director for the assigned work, actively handling the tasks authorized and assigned by the General Director in accordance with the policy regime. state and corporate charters.

- Control Board : Is an agency directly under the General Meeting of Shareholders, elected by the General Meeting of Shareholders. The Supervisory Board is responsible for checking the rationality and lawfulness in operating business activities and financial statements of the corporation. The Supervisory Board operates independently from the Board of Directors and the Board of General Directors.

The Group has built a management system under which the management apparatus will be responsible and under the leadership of the board of directors. From the initial

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<small> 9 </small> business field of manufacturing and distributing all kinds of machinery and equipment for the construction and mining industries, Hoa Phat has now become a multi-industry manufacturing corporation, operating in many different industries. fields such as iron, steel, steel pipes, furniture, refrigeration... Built a production system with dozens of factories and a network of product distribution agents spanning the whole territory of Vietnam. Currently, Hoa Phat is known not only as a multi-industry private economic group with a turnover of hundreds of millions of dollars per year, but also highly appreciated for its boldness in production investment, construction and develop new products with a team of 6000 employees of the whole corporation.

The accounting apparatus of Hoa Phat Group includes the finance and accounting department of the whole group and the accounting and finance departments at the member units.

In particular, the group's finance and accounting department has both assumed the function of advising the group in developing financial strategies and plans, and is also responsible for managing the accounting and statistical work at the finance departments. member accountant. In particular, you are the main accountant responsible for managing and coordinating the funds at the member units to serve the production and business activities of the whole corporation. The function of organizing audits of units and making recommendations to advise and help the group's leaders to manage the economic and financial system in the whole group effectively and in accordance with the regulations of the State. The task of the Audit Committee is to periodically and irregularly audit the production and business results of the units in accordance with the law on auditing (or the provisions of the State's current law on internal audit and the regulation on auditing). the group's internal audit in the absence of an audit law). Proposing effective financial-accounting management measures in accordance with the regulations of the State, the corporation and the contracts signed between the corporation and its partners. Participating in the inspection and settlement of capital construction investment

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<small> 10 </small> capital.

Organization chart of Hoa Phat Group 3. Product

Hoa Phat Group mainly focuses on the following fields: Construction iron and steel, steel pipes and galvanized steel; refrigeration, furniture, machinery and equipment industries; Real Estate, including Industrial Park Real Estate, Residential Real Estate; The agricultural sector includes the production of animal feed and livestock. Up to now, iron and steel production is the core production field, accounting for over 80% of the Group's revenue and profit.

4. 5M

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<small> 11 </small> - Human resources: The human resource team consists of 1440 people, divided into 8 different departments: Board of Directors, Department of Materials/Import-Export, Sales Department, Factory, Organization Department, Accounting Department. The factory is divided into small workshops to ensure specialization and operation.

- Raw materials: Hoa Phat has been partially self-sufficient in domestic iron ore input through its subsidiary, An Thong Mineral Joint Stock Company. However, this supply only meets about 20% of the current demand. With the rest, Hoa Phat also has to import monthly from major suppliers in the world in Brazil, Australia, South Africa... Hoa Phat construction steel has a variety of types and sizes, suitable for many uses. applications, including coil, rebar, steel pipe and box steel

Hoa Phat steel production process from upstream through 4 steps: First, raw iron ore of all kinds will be put into the raw material processing plant to remove impurities, increase iron content and pellets into round balls; Pelleted iron ore, coke, lime and other additives are put into the blast furnace to melt into cast iron water, then the liquid iron from the blast furnace will be transferred to the refining furnaces of the Steel Plant to produce a guaranteed billet. the specified standards, finally, the billet that has just been released is immediately transferred to the rolling mill to produce finished construction steel and complete the closed production cycle.

- Funding: Hoa Phat's advertising and branding plan has consumed a lot of capital of Hoa Phat enterprise, in addition to investing in the establishment of factories. And when this budget was determined, they were based on the method, goals and mission set out. The goal this time is to maximize brand awareness and invest capital in new steel factories. The work that needs to be done, the work that needs to be implemented in order to be able to achieve the set goals.

- Process: Review the production results of the previous day, request, coordinate the implementation and regulate production with arising problems affecting output, quality of finished/semi-finished products, export sell - store. The remaining time is allotted for the work of supervising the implementation of the production process, technological requirements at each stage, implementing the material plan, short-term production plan in accordance with the production plan. years, developing and

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<small> 12 </small> adjusting technology requirements, work orders for new products and actual production conditions of equipment and materials.

- Technology: In the field of iron and steel production, the investment in technological equipment is to control environmental problems, thoroughly treat all kinds of waste and emissions. The most important of them is a closed-loop, environment-friendly technology solution. Hoa Phat has always determined that the assessment and application of the environmental management system according to TCVN ISO14001: 2015 is an important requirement for industrial production in general and in the steel sector in particular. Therefore, the Company has invested and improved equipment and advanced technology to ensure environmentally friendly operation, and at the same time, build and operate an effective environmental management system to maximize its use. benefits of the ISO 14001 family of standards and sustainable development.

- Own the optimal solution for plant

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<small> 13 </small> - Marketing

- Finished steel

- Packaging and distribution

Bidding for construction projects

II. SITUATION ANALYSIS 1. Market analysis

a) Market size: Market size

Hoa Phat has supplied more than 4.5 million tons of steel to the market after 7 months of July 2022, sales volume of billet, construction steel, hot rolled coil reached 526,000 tons, equivalent to the same period in 2021 In which, construction steel contributed 372,000 tons, 2% higher than July 2021.

b) Market growth

Hoa Phat supplied nearly 4 million tons of steel to the market in the first 6 months of the year 560,000 tons were the sales volume of construction steel, billet and hot rolled coil (HRC) of Hoa Phat Group in June, up 14% compared to that of Hoa Phat Group. in the same period of 2021. In which, construction steel output reached 348,000 tons, up 51% compared to June 2021. HRC was 202,000 tons, down 12% y/y. Construction steel consumption last month grew well thanks to a strong increase in the southern market and exports, 200% and 60% respectively over the same period in 2021. The Government's promotion of the progress of investment projects public private sector, especially key infrastructure projects, including the North-South expressway, has helped the demand in the construction material market to improve compared to the previous year..

c) Market share: Market share

HOA Phat's construction steel market share increased by 36.3% In January 2022, HOA Phat's construction steel achieved a sales volume of nearly 382,000 tons, double the same period last year. In which, the volume of construction steel in January reached 116,000 tons, three times higher than the corresponding period in 2021 and accounting for 50% of Vietnam's total construction steel. HOA Phat's

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<small> 14 </small> construction steel market share in Vietnam reached 36.3%, an increase of nearly 6% compared to the end of 2021.

d) Market need

According to Mr. Kieu Chi Cong - Director of Hoa Phat Hung Yen Steel Co., Ltd., steel demand in the coming months in the domestic market and export is still high. The company has received maximum export orders for factories in Hai Duong and Quang Ngai until April. With this number of orders, factories must always operate at full capacity to serve market demand. The exploitation of export markets aims to diversify consumption markets, and at the same time contribute to foreign currency collection and balance of trade balance of Vietnam.

e) Market trend

The export volume of finished steel achieved an encouraging growth of 13% in the first 5 months of 2022. However, the export channel still tends to slow down in recent months, especially in the steel sheet segment. plating, with monthly output about 30% below its peak in Q4 2021. Such a drop in output is due to reduced demand in key export markets (particularly the US and EU). ), markets which, under favorable conditions, once accounted for 60-70% of Vietnam's galvanized steel exports.

2. Pestel a) Political

Political stability is favorable for the business of companies

- The Government creates favorable conditions for the development of the steel industry through the policy of committing to export iron ore, the policy of anti-dumping steel.

- Reduced tax rates such as corporate income tax, import tax b) Economic

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<small> 15 </small> - Vietnam's economy is relatively stable (over 6% per year) The real estate market recovers, grows well, many supportive policies have large fluctuations in exchange rates, making input material prices highly volatile.

- Stable interest rates tend to decrease c) Social

- The young population (50 million people in working age) has the need to buy a house and build a big house.

- The rapid urbanization process increases the demand for steel for housing and infrastructure construction

- The factor of living region affects the types of products, especially galvanized steel. The demand for galvanized steel sheet is higher in the South than in the North

d) Technology

Vietnam's steel industry 100% uses electric furnace technology.

The world is moving towards the use of clean energy, using renewable materials e) Environment

Steel production is an important heavy industry, meeting the requirements of construction and development of the country. The steel production industry has achieved many results in the past time, but there are still many shortcomings, especially in waste treatment and environmental protection, causing great damage to the country's economy. Therefore, the management and control of the steel manufacturing industry to minimize the consequences to the environment is an urgent issue today.

f) Law

Trade, this is a principled requirement that any business or individual doing business in the Vietnamese territory must comply with. Detail:

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<small> 16 </small> - Legal responsibilities for business activities: doing business in accordance with the law, fulfilling obligations to the state regarding taxes, stabilizing prices, etc. - Liability for product quality: suppliers manufacturing and importing construction steel must trade in all kinds of quality steel in accordance with TCVN. quantity, fake goods, imitation goods….

- Legal responsibilities for the selling price of construction steel:

+ If a supplier (or distributor) establishes its own affiliated steel distribution network such as branches, factories, retail stores, the supplier must manage its affiliated units not to sell steel. wrongly built with the price set by themselves – This regulation has affirmed the right and position of the supplier (distributor) to its system. That is natural because the supplier is the owner of the goods and the owner manages his system.

3. Company analysis a) Capabilities: Ability

Financial resources: Owner's investment capital, borrowed capital; The ability to create internal corporate funds.

Physical resources: Exquisite equipment or factory location; The right to dominate the resources of raw materials.

Human resources: Training, experience, judgment, intelligence, adaptability, dedication to work and loyalty of individual managers and employees,

Organizational resources: Formal report structure, plans, inspection and supervision system, organizational apparatus system.

Intangible resources include factors from intellectual property rights, business networks, business organization skills, reputation and community relationships.

b) Core competencies: Core competencies

The core value of Hoa Phat Group is the philosophy of Harmony and Development. It is reflected throughout the relationship between officers and employees, between

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<small> 17 </small> the Group and its partners, agents, shareholders and the social community. Ensure harmonization of interests of stakeholders on the same boat, towards sustainable development.

c) Partnership resources

The Group and its partners, agents, shareholders and social community, ensure the harmony of interests of stakeholders on the same boat, towards sustainable development. In particular, Hoa Phat Group has built a stable, long-term, trusting partnership with sales agents who have accompanied the Group since the early days of its establishment.

d) Product leadership

Hoa Phat Steel Pipe products have excellent quality, not only occupying the No. 1 market share position in the country for many consecutive years, but also meeting export standards to many demanding markets such as Australia, North America, Latin America, and India. … Since the beginning of 2020, Hoa Phat Steel Pipe is a pioneer in manufacturing and supplying the market with large-sized steel pipes with sizes such as round pipes, square pipes, rectangular pipes.

e) Customer intimacy

On July 19, 2019, at Gem Center Convention Center, Ho Chi Minh City, Hoa Phat Construction Steel Customer Conference 2019 took place with the participation of 350 loyal customers who are level 1 and level 2 agents. of Hoa Phat Steel in the South and Cambodia. This is an opportunity for the Board of Directors of the Group and Hoa Phat Steel to be grateful to distributors and agents who have accompanied and brought Hoa Phat construction steel brand to more and more presence in the South.

f) Operational excellence

Beside production and business activities, Hoa Phat always implements corporate social responsibility in a substantive manner and comes from the heart with the motto "Harmony and development". In the first 9 months of the year, Hoa Phat spent

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<small> 18 </small> nearly 16 billion dong on a series of meaningful social security and charity programs, joining hands for the community.

- Support against Covid :With the desire to join hands with the Government and Ministries to cope with the spread of the Covid-19 Pandemic in Vietnam, Hoa Phat Group has donated 5 billion VND in cash to the Fund of the Ministry of Health and Hospitals Central Tropical

- “Love Beat”: Successfully supported 34 patients in the first 6 months of the year : "Love beat" has been developed by Hoa Development Group since the end of 2015, in order to finance the cost of heart surgery for patients with difficult circumstances.

- Spring love : It is an annual activity conducted by Hoa Phat Group on the eve of the Lunar New Year, in order to bring a warmer and fuller Tet to families in difficult circumstances.

- Build a bridge : Starting in 2019, this activity aims to support localities in the Mekong Delta provinces Vina Kyoei Steel,

With the criterion of leading product and service quality, over the years, VNSTEEL

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Ton Phuong Steel. Nam, Ton Thang strategy of the steel industry, Pomina has invested in the most

High product quality and competitive price - Gained the trust of customers for many years - Bring added value to society

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leading Steel brand in Japan for its outstanding quality, with its growth, Kyoei wants to reach beyond the ocean of the land of the rising sun to reach the

especially the young workforce to meet the with the criterion of producing the best

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<small> 21 </small> Potential rivals

- The Government and localities give priority to investment policies for enterprises engaged in the production of ore, steel billet and finished steel;

- Operating in the steel industry requires a large amount of capital and high technical level. This is the entry barrier for enterprises without strong resources;

- The steel industry's consumption growth rate is high (about 17%/year), the market is very potential because the production capacity of domestic enterprises has not yet met the demand, especially in some products such as structural steel, engineering steel...

Customer

- Hoa Phat Group's internal customers are member companies, HPG gives priority to supplying raw materials to member companies; Therefore, HPG does not have to bear much pressure from this group of customers.

- HPG's customers are also individual customers, the conversion of using HPG's products to other products does not take much time and cost.

Supplier

- Raw materials for production and business activities of member companies are mainly provided from the parent company HPG;

- HPG can be proactive in 80% of the billet for the production process, the remaining 20% depends on imported sources. However, HPG has built a long-term business relationship with the supplier of billet and its member companies also have a good relationship with the supplier of raw materials. Raw materials will be guaranteed in terms of quality and reasonable price.

Alternative products

- Instead of using steel in construction, iron materials can also be used instead - Aluminum plate can be used to replace steel plate in some cases

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<small> 22 </small> - Instead of using air conditioners, customers can use ice fans, ordinary electric fans instead

- With furniture, in addition to using furniture made of wood and plastic, customers can use furniture made from stone and glass

Intra-industry competition

- Steel industry is a distributed industry. Unfair competition among enterprises in the industry is inevitable. There used to be a phenomenon where an enterprise imported rebar from China and labeled it for domestic consumption. These events make users feel insecure about the quality of steel products;

- Hoa Phat brand has made a great impression in the perception of customers, creating a great competitive advantage for HPG.

- HPG also has a great competitive advantage compared to other steel companies as HPG has a billet factory, providing most of the input billets for the Company's production process;

- Many FDI projects in the steel industry will be implemented, which will create great competitive pressure for Vietnamese steel enterprises, including HPG. 6. SWOT

- State-of-the-art production line

As a pioneer in the field of steel production, Hoa Phat always focuses on each stage of producing its finished products. Specifically, all products of Hoa Phat Steel are completed on a closed technology line synchronously with a strict production process. To realize this, the enterprise has installed the Italian Danieli steel rolling system, which increases mechanical properties and weldability, optimizes flexural strength, as well as reduces the degree of rust.

Besides, Hoa Phat also focuses on expanding production facilities. Primetals Technologies' investment in a comprehensive production line helps this brand increase its production scale up to 5.6 million tons/year. Thereby, supplying enough

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<small> 23 </small>

current market demand, limiting import from other countries to help maximize revenue.

- Won many great prizes

With 30 years of establishment and development, Hoa Phat has many times touched the prestigious awards that every competitor aspires to. The most prominent include: · Top 50 most effective business companies in Vietnam.

· Top 10 listed stocks with the largest market capitalization. · Top 50 best listed companies in 2018 ranked by Forbes Vietnam. · Top 20 largest enterprises paying CIT in Vietnam.

· Top 40 most valuable brands in Vietnam. - Large market share

As of January 2022, Hoa Phat's sales of construction steel reached nearly 382,000 tons, doubled over the same period last year. Accordingly, the market share of the business also increased significantly, specifically reaching 36.3%. With this number, Hoa Phat still maintains its leading position in the steel industry, far ahead of enterprises

Weaknesses

The cost of input materials has not been optimized: Currently, Hoa Phat has not been able to keep the price of input materials at the lowest level. Accordingly, this brand is also dependent on market movements, making the revenue not maximized. Risk of oversupply: With increasing focus on expanding production scale, Hoa Phat may fall into oversupply situation. In fact, the current market demand for construction steel is about 10 million tons/year. However, when the Dung Quat project comes into operation, the company can completely supply about half of the current consumption to the market. The amount of supply is too much, making the market unable to adapt and consume, leading to overproduction

Opportunities

- Integrated economy: Since joining the WTO, the Vietnamese government has always created favorable conditions for domestic and foreign enterprises to cooperate and develop. Thereby, opening up many opportunities to help businesses

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<small> 24 </small>

attract capital from abroad to expand business, increase import and export of the steel industry.

- Great market potential: It can be seen that in the past few years, Vietnam's steel market is becoming more exciting than ever, partly due to the impact of construction projects that are racing up. In 2022, it is estimated that the domestic steel market will grow by 20%, creating opportunities for businesses in the industry to develop together.

Threats

- Facing stiff competition: As the market expands, it is inevitable that more competitors will appear. Currently, Hoa Phat is facing stiff competition from many big players such as Formosa, Thai Nguyen Steel, Vina Kyoei, etc.

- Other market entry barriers: Steel has always been an important industry in the world with an amazing growth rate. However, many countries currently still put many barriers to entry to protect domestic enterprises. This makes it difficult for Vietnamese businesses to access other markets.

III. MARKETING STRATEGY 1. Customer Segmentation

Type of Segmentation ^Segmentation

criteria ^{Renault target customer}

Hoa Phat steel is one of the indispensable materials in the

construction market. Areas ^{Urban, big cities such as Hanoi ,Ho}

Chi Minh City,countryside

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<small> 25 </small> Company Size ^{Hoa Phat steel serves for projects}

from small to large.

Behavioural

Benefit Sure, sustainable, high value of use.

2. Target Customer

Regarding target customers, Hoa Phat targets the following subjects:

External customers: Steel, billet, household goods, shipyards, irrigation, road construction, construction contractors, etc., each order is by number. large amounts. Therefore, this group of customers requires high standards of size and volume.

Internal customers: These are member companies of Hoa Phat group such as steel company, equipment and spare parts company, construction company, material company. Although the number of internal customers cannot be compared with external customers, they are loyal and long-term users of the company's products.

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<small> 26 </small> 3. Positioning

Brand positioning map showing Reliability and Safety. In the Vietnamese market, Hoa Phat steel has higher reliability and safety than other competitors such as Pomina,Vnsteel,Vina Kyoei, Po sco SS Vina. The majority of businesses in the Vietnamese market use Hoa Phat because they find that Hoa Phat has high reliability and safety, in addition to a variety of products, bringing sustainable value.

4. POPs & POD a) POPS

Designed in the form of a box, galvanized steel has many outstanding features in both the process of moving and using in the construction.

Moreover, when workers work with this steel, it is sure to ensure safety and no risk.

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<small> 27 </small> Another outstanding advantage of steel has low production costs, so when you use it, you will also save a lot of costs.

If you can find a cheap, preferential and quick address in large quantities, the price can be reduced. Therefore, this type of steel is suitable for all types of construction such as: transportation, bridges or other service works.

The increasing demand for construction, the greater the production of steel. However, even working and producing at full capacity cannot meet the needs of the

- Modern, synchronous and self-contained production lines from input materials in production to finished steel products

- Application of the world's leading Italian Danieli steel mill, a QTB process that increases mechanical properties and weldability as well as optimizes flexural strength and reduces rust. - Applying technology to produce oxygen blowers

with lower electricity consumption than traditional blowers, helping to reduce product costs

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<small> 28 </small> Pomina

- The possibility is to provide large quantities, diverse designs ... quickly, and indirectly accelerate the construction progress of large works.

- Modern process with the world's leading production technology.

- The selection of raw materials takes place closely, carefully controlled to meet all the needs of consumers.

- High life expectancy and good resistance to all agents from the surrounding environment.

Posco SS Vina

- Steel has extremely high bearing capacity. This is also an important point that determines the durability of construction works.

- Steel size is extremely diverse. This helps to suit all works, all textures. When requiring rich materials.

- Steel I has extremely high durability. Especially with galvanized steel with extremely hard, antioxidant and corrosion properties. Therefore, steel is always durable for outdoor works or harsh environments.

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<small> 29 </small> Vina Kyoei

- Viet Nhat steel has very good resistance to oxidation and chemical corrosion in harsh conditions.

- Viet Nhat steel has a very outstanding durability compared to ordinary steel. Hard to rust in wet environments or over time.

- Vietnam-Japan steel has high ductility and bending strength.

- Modern production process and quality iron materials

- Vietnam-Japan steel has high quality, many types, to meet all usage requirements..

- Has a nationwide distribution network..

Thép mi n Nam ề

- The product is highly appreciated for its quality from durability, bearing capacity to barem steel bundle specification which is also very convenient and easy in transportation as well as construction.

- VN Steel is produced on a modern, closed technological line, imported synchronously from the Italian Danieli Group No. 1 to supply the world's leading machinery and equipment in the field of steel smelting and rolling.

- VN Steel is focusing on more diverse designs and product categories to meet all the needs of using steel in large and small construction projects. Steel is focusing on more diverse designs and product categories to meet all the needs of using steel in large and small construction projects.

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<small> 30 </small> 5. Marketing Objective

Target sales abd market share of construction steels,Vietnam’s largest steel pipe from 2023-2025.

Ø Increase customer awareness from 32.5% to 51%. Ø Increased customer confidence level from 48.7 to 62,7%. Ø Expanding market share to 0.5-1%.

Ø Expanding distribution agents in 64 provinces and cities. Ø 15% increase in sales per year.

6. Marketing Mix

(Product) : Regarding Hoa Phat's product strategy, the company is currently implementing a product diversification strategy. This process helps businesses launch many new product categories to meet the needs of the market.

In addition to achieving higher profits, there are several reasons for a company to diversify, such as:

• Minimizing risks in case of industry downturn.

• Diversification can be used as a defensive measure. By diversifying products or services, a company can protect itself from competitors.

• Diversification allows for a wider selection of products and services. If done properly, diversification will positively promote brand image.

Some notable product lines of Hoa Phat include:

• Construction steel: billet, coil, bar, hot rolled coil, special steel and products related to the steelmaking process.

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<small> 31 </small> • Steel pipes: Black steel pipes, Hot dipped galvanized steel pipes, Galvanized steel pipes, Large steel pipes, Galvanized coils, Other industrial steels.

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<small> 32 </small> • Color coated and galvanized steel sheet: Rusted and oil coated steel coil, Cold rolled steel sheet, Galvanized steel sheet.

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<small> 33 </small> • Metal fabrication: Supply of spare parts – Mining equipment, Construction equipment

• Household appliances: Air conditioner, Freezer, Refrigerator

• Furniture: Office furniture, buildings, schools, hospitals, household appliances, decor with tables and chairs of all kinds...

• Real Estate: Apartment, Office, Trade Center • Agriculture

In addition, for key product lines such as steel, Hoa Phat always adheres to a strict production process with 5 steps: iron ore processing; sintering and pelletizing; iron; steelmaking; and rolled steel. Hoa Phat applies closed circulation technology, controls and processes from input materials to finished products, ensuring products of superior quality.

(Price): Product line pricing is a strategy that businesses use to separate their products and services into multiple prices, the purpose is for consumers to form

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<small> 34 </small> a perception of quality. product differences. Simply put, this is the process of grouping similar products together and offering different prices, for each version are added features, in order to entice consumers to choose the product that the business wants. would like.

Realizing that the steel industry is characterized by having many products but different sizes and materials, Hoa Phat has offered an appropriate price for each of its products.

Marketing strategy of Hoa Phat steel on price

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<small> 35 </small>

( Place ): Hoa Phat's distribution system is invested very strongly, as this brand has been able to cover its products throughout 63 provinces and cities in Vietnam.

To do this, Hoa Phat has sought and approached many reputable agents and businesses to cooperate with, along with high discounts to help consumers find

their products in the easiest way.

(Promotion): Promotion is a necessary business activity to keep pace with the consumer market. Currently, Hoa Phat's promotion strategies are focused on

promotional activities such as TVC or OOH.

For OOH, Hoa Phat Group's billboards are always placed in expensive locations that are always crowded with people passing by.

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<small> 36 </small>

For TVC, the company always chooses national television stations such as VTV1, VTV3... as the main advertising channel. With the top viewership ratings of TV channels, plus the selection of TVC broadcast time in the prime time frame, Hoa Phat successfully increased the brand awareness of the product.

Over time, along with the change of the Group's development strategy, products that are given priority "pour money" on the broadcast have also changed. In the period of 2015 - 2016, the company focused on advertising interior products with the slogan "Hoa Phat, not Hoa Phat". In 2017, on a good growth momentum, the company chose to "build" brand "steel to build market share No. 1 in Vietnam" based on data on market share of the Vietnam Steel Association. After that, the company "cleared the way for Dung Quat project" with a strategy of advertising corrugated iron products in the South.

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<small> 37 </small> In the 2015 period, the familiar slogan of this brand was "Hoa Phat, not just playing, developing with Hoa Phat". Image cut from Hoa Phat interior advertising

video in 2015 - Source: Youtube

Image cut from Hoa Phat steel pipe advertising video in 2017 - Source: Youtube

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<small> 38 </small> Advertising construction steel with the familiar slogan "Hoa Phat - Construction

steel with the No.1 market share in Vietnam" - Company website source

In 2018, with the goal of promoting the consumption market in the South, Hoa Phat built an advertising strategy with TVC with the participation of the famous actor couple Thanh Thuy - Duc Thinh and outside the news frame VTV1 Vietnam Television also broadcasts on channels HTV9 and THVL1.

Even though it is a 30-year-old unit, it is not because of that that Hoa Phat stands out from the prevailing trends. Recognizing the trend of integrating advertising into music videos that are "hot" in recent years. Hoa Phat is not afraid to spend heavily when together with Bich Phuong launch the product "Choosy fish choose soup".

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<small> 39 </small>

MV “Choosy fish choose soup” - Sources:Youtube

This campaign also achieved quite successful results when it received more than 6 million views on Youtube, along with tens of thousands of likes..

Consumption results in 2021, construction steel and HRC contribute 72% to steel consumption of all kinds. Construction steel recorded 3.9 million tons, up 14% over the same period. HRC reached 2.6 million tons, 3 times higher than 2020.

IV. SALE STRATEGY

For iron and steel products, Hoa Phat's Marketing Strategy uses Product line Pricing. Accordingly, with the characteristics of construction materials, iron and steel will have different materials and sizes so that customers can choose to suit their needs. Therefore, different types of iron and steel will have different prices according to their value.

V. HUMAN RESOURCE STRATEGY

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<small> 40 </small> HPG acknowledges that human resource is an invaluable asset and a main value to built the success and sustainable development of the Company. Hence, they always concentrate in the strategy of training and development of human resource to:

● Set up and develop a strong, professional and lasting legacy human resource ● Develop the creative, dynamic and highly qualified staffs

● Develop and implement training programs, fostering regular and

professional practice for each officer, employee of the Company. Continue proactive training potential officers for our Company.

Current status of human resource recruitment:

Like many other businesses, at Hoa Phat Steel Pipe Company, recruitment is the process of finding, attracting and selecting personnel to satisfy the company's use needs and supplement the necessary workforce to meet the needs of the company. implement the company's goals, help the company get the best human resources for current work and future business plans.

The company's recruitment sources include: internal sources and external sources of the company.

- Internal sources are employees currently working at the company. The company often prioritizes candidates from internal sources to recruit into important positions such as heads and deputy heads of departments; in charge of departments, branches, etc. when needed to encourage employees to strive for excellence at work.

- Sources outside the company include fresh graduates, workers who need to find new jobs, seek new development opportunities, etc., who want to work at the company.

The recruitment method used by the company:

- For internal recruitment sources: Recruitment through bulletin boards, internal website, through the introduction and promotion of officials and employees in the company or through the company's personnel file.

- For external recruitment sources: recruitment through media, job websites, through brokers, job placement centers, or introduced by employees in the company...

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