BUSINESS PLAN – 2016
Exclusive Distributor of Shell Biutmen in drum in Vietnam

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: STRENGTHENS

• Business advantages
– Reputable Shell brand
– Best & Consistent quality
– Believable company

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: STRENGTHENS

• Core competencies
– Consistent good quality
– Service: quick and flexible; clean and legal
– Supported by Shell supplier (price,
loadings....)

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: STRENGTHENS

• Market segments
– Participate in most key projects in VN.
– Be known well by employers and contractors
– Already be at the biggest markets: Mekong
Delta, Highland

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: STRENGTHENS

• Well-doings:
– Marketing: websites, BCI information, salesnetwork
– Documentations for products as required by
MOT
– Keep long-term customers thanks to Tin
Thinh’s reputation, price policy, bitumen
quality…
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: WEAKNESSES


• Poorly-doings:
– Much higher price (than other brands)
– Extra quantity as customers' requirements
(Illegal)
– “Shell Only” trader (Most other traders have
some brands: PLC, Iran, Fake “Made in
Singapore"….)
– Flexible price due to big margin of benefit and
small volume approx.
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: WEAKNESSES

• Improvement:
– Maintain and develop the market-share in the
South and the Center.
– Expand the market-share in the North (price,
agents)
– Negotiating with Shell for best price to
compete
– To be the Exclusive Distributor in Vietnam
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: OPPORTUNITIES

• Advantages trends:
– Best quality required by MOT for all projects.
– Shell bitumen brand and Tin Thinh's
distribution have been really appreciated by
customers for years.
– Availibility of cargoes in stocks all times.

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: OPPORTUNITIES
– When becomes the Distributor, will:
1/ use legally all tools for advertizing the
product on media widely;
2/ officially to be approved by the employers
in order to participate in some important
domestic and international projects

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: OPPORTUNITIES

• Niches:

– The projects in Highland and in far areas
in Mekong Delta.
– The "difficult" Consultant agencies and
Contractors.
– Customers are the private companies
who require good reputation and longterm cooperation.
– Small orders (less than 20 tons).
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: OPPORTUNITIES

• New needs of customers
– Best quality
– Transparency in business
– Understanding and supportive

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: THREATS

• Obstacles:
– Low price of the replaces such as Esso,
Iran, PLC…
– Esso drums packing N.W 154 kg/drum

to make some customers confuse.
– Fake Shell Bitumen
– Fake documents of quality (C/O, SGS,
Test in VN)
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: THREATS

• Competitors:
– Vietnamese traders major in Esso, Iran,
PLC…., esp. local drumming painted
the trade mark: Made in Singapore
– Some Iranians open their own
companies in Vietnam to import directly.
– Easy and unsafe payment offered by
the traders in bulk and in other
drummed brands
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: THREATS

• Negative local economic conditions:
– Lack of money for the infrastructure
projects.

– Most key road projects already finished
in 2015

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: THREATS

• Government regulation (MOT):
– Processes to control bitumen quality
more severely required: take samples for
lab, transport to site, storage…(steel for
drums.)
– Capability documents for the bitumen
supplier/distributor must be approved by
the employer, consultant…(the Exclusive
Distributor Certificate is very important)
Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: THREATS

• Changing business climate:
– Local policy of foreign currency
– Increasing port charges and storage
fees

– Transportation problems (weight,
charges, safety…)

Business Plan- 2016/ Ltd. Co.- Shell Drum

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Analysis: THREATS

• Vulnerabilities:
– Some local traders  just take quality
documents of Shell’s for volumes of
other brands.
– Shell’s current solution to have one
distributor in VN  hopefully limits the
unfair competition.

Business Plan- 2016/ Ltd. Co.- Shell Drum

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MARKET-SHARE OF SHELL DRUMMED BITUMEN
IN VIETNAM
•

WHO ARE CUSTOMERS OF DRUMMED BITUMEN IN VIETNAM ?

•


WHO ARE CUSTOMERS OF SHELL DRUMMED BITUMEN IN
VIETNAM?

•

POTENTIAL MARKETS

•

ADVANTAGES OF TIN THINH'S MARKET-SHARE

•

STRATEGY IN 2016 AND DETAILED MARKETS

Business Plan- 2016/ Ltd. Co.- Shell Drum

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2012-2015
Bitumen Imported Volume in Vietnam

Business Plan- 2016/ Ltd. Co.- Shell Drum

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MARKET-SHARE OF SHELL DRUMMED BITUMEN

IN VIETNAM

WHO
WHOARE
ARE
CUSTOMERS
CUSTOMERSOF
OF
DRUMMED
DRUMMED
BITUMEN
BITUMENIN
IN
VIETNAM?
VIETNAM?

–The projects/stages are
required to sprinkle bitumen
– Small quantity for sprinkling
or/and paving
– The sites are far and just
able to transport materials to
by barges or trucks

Business Plan- 2016/ Ltd. Co.- Shell Drum

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MARKET-SHARE OF SHELL DRUMMED BITUMEN

IN VIETNAM

WHO
WHOARE
ARE
CUSTOMERS
CUSTOMERSOF
OF
SHELL
SHELLDRUMMED
DRUMMED
BITUMEN
BITUMENIN
IN
VIETNAM?
VIETNAM?

• Be required to use good quality
bitumen
• Loyal customers due to the
economic benefits from using
Shell’s
• Believe the Shell brand (for new
customers)
• Find the long-term cooperation
with the distributor
• …..
Business Plan- 2016/ Ltd. Co.- Shell Drum

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MARKET-SHARE OF SHELL DRUMMED BITUMEN
IN VIETNAM

POTENTIAL
POTENTIAL
MARKETS
MARKETS

–All customers who have been
using drummed bitumen are
able to be Shell's if:
• Competitive price
• Sustainable good product
(Quality, drums, packing,
trade marks….)
• Good service
• Believable local distributor

Business Plan- 2016/ Ltd. Co.- Shell Drum

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ADVANTAGES
ADVANTAGESOF
OF
TIN
TINTHINH'S

THINH'S
MARKET-SHARE
MARKET-SHARE

– Long-time business
– The large network of drummed
bitumen sales in South and
Highland/Center.
– Before 2014, 2 main markets
of Highland and Mekong Delta
with the rather different
weather between them at the
same time in some months a
year:
Time

Mekong Delta

Highland

JanMay

Sunny

Rainy

JuneSep

Floody


Sunny

Business Plan- 2016/ Ltd. Co.- Shell Drum

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MARKET-SHARE OF SHELL DRUMMED BITUMEN
IN VIETNAM

ADVANTAGES
ADVANTAGESOF
OF
TIN
TINTHINH'S
THINH'S
MARKET-SHARE
MARKET-SHARE
(Cont’d)
(Cont’d)

– From 2014  big system of
agents and partners from the
North to the South.
– Serving for most of Shell
drummed bitumen end-users
– Highly attention to the
"difficult" customers  make
a spread all over to other
users.


Business Plan- 2016/ Ltd. Co.- Shell Drum

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What are the key marketing tools of Tin Thinh?
- Traditional marketing tools: Networks of agents, Faceto-face, telephone,
- Modern methods:
- Marketing Online: owned more than 100 best
Vietnamese domains and explored effectively 20
- Using Google Awards (See the slides below.)
- Using

Project

Information

Supplier

website: />
BCIAsia:

meeting

and

couriering the profiles of the company.
Business Plan- 2016/ Ltd. Co.- Shell Drum


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