Paris Graduate School of Management

Thai Nguyen University

INTERNATIONAL EXECUTIVE
MASTER OF BUSINESS ADMINISTRATION PROGRAM

THESIS TITLE:

ANALYSIS OF MARKETING MIX OF GATEXCO 20

Student’s name:

DAM AN THANH

Intake I

2012


Marketing Mix of Gatexco20

INTRODUCTION

1. The urgency of the subject:
Textile industry has played an important role in the economy of Vietnam. As the
announcement by the Vietnam Textile and Apparel Association (Vitas) in 2011, textile
trade has surplused of $ 6.5 billion, increased $ 1.5 billion compared to 2010. With this
surplus, the textile industry has improved the localization rate of up to 48%. Export
target of textile industry in 2012 is to conquer the $ 15 billion mark. To achieve this
goal, the industry will have to face with many challenges, due to the world economic

crisis that has not recovered and the public debt in some European countries has
continued. Downtrend of the orders may cause the exports to major markets in 2012
decreased by 10-15% compared with 2011. In this context, the solution of the textile
industry is reduced the reliance on outsourcing orders and focus on improving the rate of
exporting the goods under FOB & ODM, increasing the use of resources materials
produced in the domestic market. Especially in the difficult context of the economy, the
expansion of exploiting new markets will play a crucial role in maintaining the growth
of the textile industry. The effort to compete with other exporting countries to win
market share and promote the domestic market domination is the right strategy of almost
successful textile companies.
Domestic market has been considered to be an end of many textile enterprises
during the economic crisis. In 2011, despite the economic difficulties, but the revenue
from the domestic market of garment enterprises still grow quite well. As reported by
the Ministry of Industry and Trade, up to the end of 2011, the enterprises' revenue of
Vinatex from the domestic market gained over 17,200 billion, growth of 15%. In 2011,
although people have to tighten spending, but the industry is still to maintain relatively
high growth rate. This proves that textile products have foothold in the domestic market.
According to the report of the Vietnam Textile and Garment Group (Vinatex) at
the preliminary conference of the implementation of the campaign "Vietnamese give
priority to use Vietnamese goods", organized by the Ministry of Industry and Trade on
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28th December last year, the sales of VINATEX from domestic market reached 17.200
billion, up to15%. Therefore, how to occupy the domestic textile market is a concern of
many textile enterprises in Vietnam before the "landing" of many foreign prestigious

fashion brands in the Vietnamese market, in which the biggest challenge is China's
fashion. According to the Vietnam Textile and Apparel Association, population of 85
million today and will be increased to 100 million in 2015, so the domestic market is
very huge and the textile and garment producers can not pass up the opportunity to
dominate the domestic market. Most of the domestic textile enterprises have mainly
focused on investment for exporting but do not care so much for the development of
branding in the domestic market. Businesses must consider again to domestic market as
a foundation and the export market is the motivate force of the development of the
textile industry. Joining the WTO, Vietnam has more opportunities to expand export
markets and welcomes the foreign investment resources in the textile sector. However,
the domestic market will also face new competition on price, especially for the Chinese
fashion. On the other hand, after the U.S. Department of Commerce (DOC) held a public
hearing on anti-dumping tariffs of Vietnam's garment and textile products exporting to
the United States, the U.S importer very cautious and reduced the orders for avoiding the
risks. This has caused the difficulty to Vietnamese enterprises and U.S importers . In
response this circumstances, the promoting of finding new export markets as well as
expanding the domestic market is an important step. GATEXCO 20 has very diverse
product range in the Vietnamese market meanwhile the customers in the defense sector
are losing the advantage. One of a cause of this problem is the marketing mix activities
of Gatexco in the past are inconsistent and less effective. Meanwhile the big brands in
the textile industry as Viet Tien, Nha Be, Pierre Cardin and other businesses in the same
industry like AGTEX 28 also have the same type of products with various designs, high
quality and penetration of the domestic market is very strong. Furthermore, the trend to
reduce the import tariffs and the entry barriers of imported products to the domestic
textile market will make the increasingly fierce competition. These issues raises the
urgent questions to GATEXCO 20 for requirement of improving and diversifying its
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products and take urgent appropriate measures to enhance the competitiveness of the
product, including marketing mix solutions to the products that plays an important role
in occupying and exploiting the potential domestic and export markets of Gatexco
2. The purposes of research
Systematization of cognitive theory, marketing mix theory and practice in
general business and apparel product business in the Vietnamese market in particularly.
The dominant factors affecting the marketing mix of enterprise. Analysis the
situation of marketing mix applied to the traditional products of Gatexco 20
Proposed some key countermeasures to improve the operation of the marketing
mix of Gatexco 20 on the basis of the analysis of the marketing environment,
competition of the apparel sector in the domestic market among the businesses in the
same industry and SWOT analysis.
3. The object and scope of the study
Thesis will only focus on studying the Marketing mix solution to flagship
products of Gatexco 20 in domestic market and will not propose the solutions for other
business activities as well as marketing activities to other product line of Gatexco.
The analysis of the impactation of marketing environment, industry competition,
SWOT model that focuses on key products in the domestic market and military sector.
4. The rationale and methodological practices
This thesis uses the science of modern marketing theory and closely associated
with the logical method, statistical, comparison, contrast and meta analysis methods, to
have the suitable evaluation of the marketing mix and solution for completion.
The information has been collected sufficiently via Internet, documents, journals,
financial reports and annual planning reports of the Gatexco 20.
5. The contributions of the thesis
In terms of reasoning: application of marketing mix theory in Production
management and marketing of apparel products in Vietnam

In term of practices: offer a number of solutions to improve marketing mix
efficiently for key products of Gatexco 20
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Derived from practical requirements and under the enthusiastic guidance of Dr.
Tran Van Hung as well as management board of Gatexco 20 , I boldly chosen the
theme: "Marketing Mix of Gatexco 20" as the thesis for the degree of masters of
business administration
6. Structure of the thesis
In addition to an introduction and conclusion, the thesis consists of 03 chapters:
Chapter 1:

Some theoretical basis of marketing mix

Chapter 2:

Situation analysis on the marketing mix of Gatexco 20

Chapter 3:

A number of measures and solution to complete and improve the
marketing mix of Gatexco 20

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CHAPTER 1: SOME THEORETICAL BASIS OF MARKETING MIX

1.1. The role and function of marketing mix
1.1.1. Overview of marketing
Initially, marketing appeared through discrete behaviors associated with the
certain exchange cases. It can be said that marketing’s appearance associated with the
exchange of goods. But it does not mean that Marketing had appeared simultaneously
with the appearance of exchange. Marketing only appeared in a certain state or situation
of exchange: Either the seller try to make a sale, or the buyer should try to buy goods.
This means that the exchange do create the marketing when people have to compete for
sale or buy the goods. Thus, the underlying causes create the marketing is the
competition.
In practice, the marketing appears clearly from the background of the industrial
development, promoting production and supply of the goods tends to exceed the
demand. In

that case, it force the businesses have to find better methods for

consumption of the goods. The process of searching for better solutions to promote the
consumption of goods support the development of marketing activities as a basis for
forming a complete science subject – Marketing. The term “Marketing’’ was first
launched in the U.S. in the early twentieth century. Until 1910, all the university in the
United States began teaching this course. It spread to Europe, Asia, and to our country in
the 1980s. Marketing is derived from the word "market" means a fair or market. Ending
in "ing" meaning approach, so it is often to be misunderstood that marketing is

marketing. To avoid the confusion, the term “Marketing” is usually not translated in to
Vietnamese.

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1.1.2. The core concepts of Marketing

Source: Marketing basic curriculum, Philip Kotler, 2007
Diagram 1.1: Marketing concepts

There are many people to confuse between Marketing with the sale or advertising.
In fact, consumption is just one of the stages and marketing activities of the business.
In fact, there are many different definition of marketing as it can be understood as
the process of organizing the sales force to sell the goods produced by Gatexco or
Marketing is the process of advertising and selling. Marketing is the process of
understanding and satisfying the needs of the market. In other means, Marketing is to
create the market and research to satisfy it.
We can also understand that Marketing is a social and economic mechanisms that
organizations and individuals have to use to satisfy their needs and desires through the
exchange process of products on the market. According to Phillip Kotler "Marketing is
human activity to meet the needs and desires of consumers directly through exchange
processes" and can be interpreted as follows: Marketing is a social management

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process, by which the individuals and the groups can obtain what they need and desire
through creating, offering and exchanging valuable products with other persons.
In view of the businesses in the current market mechanism: Marketing is a form of
human activity in order to satisfy their needs, desire through exchange of one type of
product and service in the market. For marketing concept, the most important issues to
create the success or failure in the business is to study the needs, wishes and
requirements as well as customer’s shopping behavior so they should procees the
prodution and supply products and services accordingly the demand of the market
before being sold in the market through exchanges and transactions.
Marketing thinking came from the real needs and desires of humans. Thus the
concept of marketing is based on the core concepts: needs, wants and requirements,
products, value, cost and satisfaction, exchange, transactions and relationships, market ,
marketing and marketers. So we can take a closer look at the following concepts:
a. Needs:
It is a broad concept, including the feeling of lacking of human about something
and need to be satisfied. Once the society grows more, the basic needs are significantly
reduced and it is replaced by the need for good food, nice clothing, entertainment, and
enjoy life.
b. Wants:
Specific needs, specific to a customary, consumption habits religious beliefs of an
area or region, and it is objectively. Desire is the desire to get specific things to satisfy
deeper needs.
c. Demands:
It is the desire to obtain the specific product that is backed by the ability and
willingness to buy them. The want would become the demand when it was supported by

purchasing force . Human needs are unlimited, meanwhile the resources to meet the
needs, wishes and requirements of our customers, or in other words to have the survey of
income over period of time

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d. Goods:
What can satisfy the needs of the people and are allowed to sell on the market
under the guidance of the price. In case, these products are produced without satisfy the
demand, it shall not be called the goods.
Thus, the exchange process requires the working. If the enterprise want to sell they
need to find buyers and identify their needs to design appropriate products, stocking
them, shipping, negotiate prices on the market ....
The foundation of marketing activities is the creation of products, surveys,
establish trading relations, organization of distribution, determine the pricing,
implementation the services. Our customer satisfies the needs and wants by the goods
and services. The term “products” can be understood as the products and services. We
define the product is anything that can be offered to satisfy the needs or desires. The
importance of physical products derived not from owning them, but is to get the
services that they provide. So the real physical products is the means to ensure the
service to us.
In fact, services are also ensured by other factors like people, places, activities,
organizations and ideas. Therefore, we will use the term “Products” to refer to material
products, service products and other means that are capable of satisfying a want or a
need. Sometimes we will also use different terms instead of products, goods, or

satisfaction factors or resources.
In fact, the manufacturer often make the mistake to focus on your physical
products rather than to the services that these products perform. They only think about
selling products, not ensuring to solve a need. Physical objects are just a means of
packaging of service. The job of marketing is to sell the benefits or services contained
in the physical products, rather than describe the physical properties of them. The seller
only pay attention to the physical product, but not to the needs of consumers are
suffering from "Myopia marketing ".
e. Value and sastifaction
Among the many products that can satisfy a certain demand, consumers will have
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more options to choose. These plans should create a set of alternative products.
Each product has a different ability to satisfy the different needs of consumer.
The key concept is valuable to customers. Consumers will evaluate each product's
ability to satisfy their needs. They can rank the types of products to satisfy most needs to
to meet minimum needs. The value is the consumer's assessments of the general ability
of the product to satisfy their needs. Now aday, the studies of the behavior of consumers
are far beyond the narrow framework of the economic theory about how consumers
judging the value and product selection.

f. Exchange, Transaction and Realtionship:
The people have needs and desires and can be attached to the product a value has
not been enough information to say about the meaning of marketing. Marketing had
appeared when people decide to satisfy needs and wants through exchange.

Communication is one of four ways of people to get the products
The first way is self-produced. People can solve hunger by hunting, fishing and
gathering fruit. They do not have a relationship with anyone else. In this case, there is no
market and marketing.
The second way is the rape. The hungry can snatch or steal other people's food.
That others do not gain anything except a thing is not injured.
The third way is to beg. Those who do not have anything for exchange is able to
beg others.
The fourth way is the exchange. Hungry people can bring their money or other
goods or services to other people for exchange the food.
The marketing has raised from the fourth method. Exchange is the act of
receiving a desired product from someone by offering them something. Communication
is a decisive concept, creating the foundation for marketing. Exchange occurs only when
it satisfy all the following conditions:
 At least there are two parties
 Each party must have some valuable things to the other party.
 Each party must be able to trade and transfer their goods.
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 Each party is free to accept or reject the offer of the other party
 Each party believes that they should or want to trade with the other party.
If there are enough five mentioned conditions, it is able for potential exchange.
However the exchange actually will take place or not depends on two issues that the
exchange agreement are more beneficial to both parties (or at least not harmful) in
comparison with before the deal. Because of this sense, the exchange is seen as a process

of creating value. It also means that the exchange is usually more beneficial for both
parties than before the exchange.
The exchange should be viewed as a process rather than an event. Both parties are
deemed to have involved the exchange if they are negotiating to come to an agreement.
Reaching an agreement, the transaction has been taken place. Transaction is the basic
unit of exchange. Transaction is a sale of the values between the two parties. We can
guess for sure that: A party gave B party an X object and got back Y object. But the
transaction does not require money as the value trade. Exchange transaction means that
this person gave the other just a refrigerator and get back a TV. Barter transaction would
be a sale and purchase services rather than goods. Transactions require at least an
element: There are at least two values, the implementation of the agreed conditions,
implementation of the agreed time and agreed place upon. Normally, there is a legal
system for supporting and requiring the parties of the transaction must comply with
their commitments. It is very easy for transaction to raise the confliction due to
misunderstanding or deliberate. There is no "contract law", people will lack confidence
in dealing and they all lose. The enterprise should keep track of their transactions and
classify them according to the item, price, location and other events. Analysis the sales is
the analysis of the origin of Gatexco's revenue by product, customer and geographical.,
ect. There is a difference between deals and the transfer. For transferring, A party to
transfer to B party an X object but do not get back any tangible thing. When A party to
give B party a gift, a subsidy or a charitable contribution, then we say it is a transfer
service, not transactions. Marketing is usually limited to the study of transactions not
transferred.
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However, transfer behavior can also be understood through the concept of
exchange. Normally, the transfer have certain expectations for gift giving, as a thank
you or seen people get better behavior. Those who donate funds professionally fully
understand "reciprocity" of donors and invite them to attend the ceremony. Marketers
recently expanded its marketing concept to encompass more than the study of transfer
behavior as well as transaction behavior.
In the most general sense, the marketers are trying to make behavioral response
from the other parties. For a business, they wants it should be a purchasing behavioral
response. For a political candidate, they would like it is the response behavior for vote
and for the church, they would like it will be religious response or for social groups is
behavioral response to accept their ideas. Marketing includes the activities carried out in
order to create the desired response for a target object from the public.
To ensure the conversation goes smoothly, the marketers must analyze whether
each party is expected to get something. Simple exchange cases can be represented by a
profile in which two people join desired things and offerings between them.
Thus the nature of the transaction marketing can be interpreted as: Transaction
marketing is a trading division that is a larger idea of relationship marketing. The wise
marketers are trying to build long-term relationships, trustworthy, with mutual benefit to
customers, distributors, dealers and suppliers.
This works is accomplished by promising and ensure high quality, attentive
service and affordable prices for the other parties. That task is also done by building
tightly relationships that are bound to economic, technical and social partners.
Relationships marketing will save costs and time of the transaction and in the best case
the transaction, it will move from the negotiation for each deal to become a regular
work.
The final result of relationship marketing is shaping up a unique property of
Gatexco, known as marketing network, including Gatexco and the supplier, the
distributor and customers that has been built by strong relationships and the trust in
business. Marketing is increasingly tending to move from trying to maximize profit in
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each transaction into place for maximizing the mutually beneficial relationship with their
partners. The working principle is to build the good relationship then naturally the
transaction will be benefit and come.
h. Market:
The market includes all current and potential customers with a specific need or
desire, willing and are able to participate in the exchange to satisfy the needs or wishes.
Thus the size of the market will depend on a number of people in need and other
resources are concerned, and is ready to bring those resources in exchange for what they
want. At first, the term “Market” is interpreted as where buyers and sellers meet to
exchange goods, such as a village market. The economists use the term “market” to refer
to a group of buyers and sellers, trading with each other for a specific product as the
housing market, grain market ... However, marketers have considered the seller creating
a production industry, and the buyer gather to be the market.
Businessman use the term “Market” to different customer groups. They said the
market needs (such as everyday food market), product market (footwear market),
demographics market (such as the youth market) and geographic market (e.g. Vietnam
market). Or they extend the concept to the groups are not customer as voter market, the
labor market and the benefactor market.
In fact, the modern economy works are operating on the principle of division of
labor in which each person specializes in producing something, receives payment and
then buy the necessary things with that money. So there are a lot of markets in a modern
economy. The manufacturers are mainly looking for the resource markets (raw material
markets, labor markets, money markets, etc..) for purchasing raw materials and
transform them into goods and services, selling them to intermediaries and then the

middlemen will sell them to consumers.
Consumers sell their labor to get the income for paying the goods and services
that they buy. State is a different market with a number of roles. State purchase of goods
from the resource markets, production market and intermediary market and pay them
and impelement of taxing those markets (including consumer market), and then provide
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the necessary public services. So that each national economy and the entire world
economy will combine into a complex market that interactions with each other and
linked together through the exchange process.
Thus, the concept of the market has taken us back to the starting point of the
concept of marketing. Marketing means human activities taking place in relation with
the market. Marketing means working with the market to turn potential exchange into
reality with the aim of satisfying the needs and wants of people.
If a party actively look for the ways to exchange than the other, then we call the
first party is marketers and the second is the potential customer. Marketers are person
who should look for the resources from another one that is willing to give valuable thing
for exchange. Marketers looking for a response from the other parties to sell or buy
something. In other words, marketers may be the seller or the buyer. As normal
circumstances, marketers is a serving company that is end-use facing with competitors.
Gatexco and the competitors are sending the corresponding product and the message to
the end user directly or through marketing intermediary institutions (the middleman and
trade promotion parties). Their relative effectiveness is influenced by the respective
suppliers as well as of the main forces of the environment (demographic, economy,
physics, technology, politic, legal, society/ culture ).

After carefully studying these concepts, we can specify the concept of marketing
as follows: Marketing is the social and economic mechanisms that organizations and
individuals use to satisfy the needs and demands (wants) through the process of
exchange of products on the market.
1.1.3. The nature Marketing Mix and the importance of Marketing Mix in business
a. The nature Marketing Mix:
Marketing mix is a collection of tools used at the same time to create a
satisfactory response to a specific group of customers. There are many different
conceptions of these tools but the most popular four tools (4P) are as follows: Product;
Price; Places ; Promotion. Some experts have supplemented other tools such as the
Political environment, Public opinion. However, the nature of the tool (P) was separated
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from four (04) basically mentioned tools. Marketing mix is the step (3) in the marketing
management process. Four 4P tools are used at the same time and is a prerequisite for
each other, closely relation.
In other words, marketing mix is a combination or arrangement of marketing
components that are consistent with the actual situation. The components of marketing
including: product policy, pricing policy, distribution policy, promotion policy and
promote the product. If the coordination between the components smoothly, the business
will achieve effective results. A good businessman will know how to coordinate four
components perfectly to gain a reasonable profit.
The characteristic expression of marketing mix: Marketing Mix is the most
concrete manifestation of the flexibility of a business that is flexibly to short-term
changes to suit to new needs. With the same type of product, each company will have

different policies of marketing - mix. Gatexco will rely on product life cycle to make
marketing - mix policy accordingly.
The content of the marketing will depend on the nature of goods and services
(machines, equipment or consumables, etc.) and depending on the position of the
business on a particular market. Marketing - Mix will also to be changed over time
under specific conditions so that there is no general formula for Marketing Mix. The
factors that determine the structure of its are the role and position of the enterprise in the
market, depending on the nature of goods and services, depending on the life cycle of
product, depending on the specific market and the business sector.
In conclusion, marketing-mix is a set of variables that may be controlled and they
are managed to meet the target market and achieve the objectives of the organization
"Marketing mix is a set of variables that Gatexco can control and manage to archive the
desired response from the target market" (According to Marketing - Statistics Publish House 1998, page 166)

b. The importance of Marketing Mix in business:
Today, there is no any business started in the business do not want your business
to be associated to the market. No longer the time that the production companies are
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operating in the ordinance target system. The busienss only received production targets,
input levels and performance is expressed through the completion of the targets.
Produced products are distributed through coupon, stamps, so the operation of the
business is completely separated from the market and marketing activities do not exist.
In the market mechanism with the free competition of the enterprise, it will meet
the needs of the customers highest level. The more development of Market economy ,

the higher the level of competition. Competition is both a driving force as well as is an
excreted tool for rigorous selection of market to businesses. For surviving and
development, the businesses should have dynamic and flexible tarket-driven targets.
Once customers become the final decider for the survival of the business, the business
must be aware of the role of the customer. the business will only make profit if their
customer are pleased and satisfied and then marketing becomes the key to the success of
your business.
The enterprises can not do business that separated from the market and they also
do not work in isolation but it takes place in relation to the market, with Gatexco's
external environment. Therefore, besides features function like: finance, production,
human resource management, it is an important for them to consider the Marketingfunction as indispensable function for ensuring the business survival and development,
connecting to the operation of the enterprise to the market, customers and external
environment to ensure business activities of the enterprise following market-driven and
market-customer demand as the basis for all business decisions.
Marketing activities of enterprises will play a decisive role to define the position
of enterprises in the market. Starting from the market research, making a list of goods
for production, distribution and marketing operation are still continued until the goods to
be sold. Therefore, marketing management functions are closely related to other
administrative activities of other divisions within the enterprise and it will play the role
for defining the orientation, combining other functions not only to attract customers but
also to find the effective tools to satisfy customer needs, bringing profit to Gatexco. In

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general, the function of marketing in business will make the enterprise to be awarded of

the following basic contents:
- Who are enterprise’s customers ? Where do they buy the product ? How much
do they buy ? How do they buy ? Why do they buy ?
- What kind of goods do they need ? What are the characteristics of the goods ?
Why do they need that characteristics but not other characteristics ? What is the current
characteristics of the goods in accordance with the goods ?
- What are advantages and limitations of the goods of business ? Is it need to be
changed ? Does it need to be changed the properties ? If you do not change, what is the
problem ? If we change so what is the problem to be considered ?
- How to define the goods prices and how much should stipulate ? Why the
present price is suitable but other price is not ? Previous prices are still appropriate or
not ? We should increase or decrease the price ? How much do we will increase or
decrease ? When we will increase or decrease price ? What type customer and goods are
applied the change ?
- The enterprise should organize the sales force by themselves or will base on the
other intermediary organization ? When do they provide the goods to the market ? How
is about the volume to be distributed ?
- How do customers know, buy and enjoy the goods of the business ? Why do the
enterprises have to use these approach ways rather than the other ways ? Why do we
apply this means but not others ?
- Do the goods of the enterprises need after-sales service ? What type of business
services do the enterprise have the ability to provide at highest chance ? Why ? Why
businesses choose this type of service but not other services ? ...
It is the indispensable issues that only marketing function can answer. Based on
these basic issues, enterprises will build by yourself the marketing-mix policy in line
with the market and meet the best needs of the customer.
In summary, the marketing management function plays a very important role and
is one of the four indispensable functions indispensable in the business (production
functions, financial functions, human resources and marketing functions). This requires
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businesses to pay attention to develop the marketing function if they want to survive and
develop in the market.
We can say that marketing - mix plays a key role to the marketing activities of
enterprise. It is not only to indicate what customers have toward but it also points out the
right path for all other activities in order to develop the most effective way for selected
market segments. Marketing mix strategy system is seen as a sharp edge that businesses
use to attack the market with the advantage compared to the competitors.
1.2. Marketing mix activities
1.2.1. Products:
Products include tangible products and services (intangible nature). Tangible
product is mass produced or manufactured on a large scale with a specific volume.
Services (intangible product) such as tourism and the hotel industry or codes of products
such as mobile phone coding and credit service. For products, businesses need to have a
right product strategy, whether it is new products or improved product. Research content
products policy in marketing including:
- The color of product and composition
- Brand name of products
- Product Packaging
- The life cycle of the product
- New products
The design of product must be based on the basis the market research data to
ensure the products will satisfy the needs, tastes and requirements appear during the
product selection process of consumers.
1.2.2. Prices

Price is the cost incurred by customers for exchange a product or service of
supplier. It is determined by a number of factors including market share, competition,
material costs, product feature and the customer's perceived value to the product. The
pricing in a competitive environment is not only extremely important but also is
challenging the seller. If the price is set too low, providers will have to increase the
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number of sales to cover the unit cost of the product to get profit. If the price is set too
high, customers will choose competitors’ products. The decision about price includes
the cost, listed price, discount, payment period… issues.
So the research content of the price policy in marketing including:
- Choosing pricing and definition policy
- Research production costs as the basis for the valuation
- Research the prices of the same kind goods on the market
- The study of supply demand and tastes of customers to decide a reasonable
price
- Policies to cover the losses
- Adjust the price according to the fluctuation of the market
1.2.3. Place
Distribution is the entire works for distribution a product or service from the
factory to the hands of consumers who have the needs, ensuring on time delivery,
quantity, type, style, color, quality of products ...that consumers want and expect.
Distribution is a bridge to help the manufacturers to provide products to customers: the
right product, time, location with the right channel and the flow of goods. Enterprise will
stock the product, managing the transportation for cost savings and limit the risk or

damage during distribution processes.
It usually consists of two main types: direct distribution and distribution channel
in which goods can be understood as the collection of responsible institutions for
ensuring the manufacturers can provide their products to the hands of the consumer or
end user. It can include any store, dealer as well as virtual stores on the Internet. The
supply of products to the right place and at a right time as customer demand is one of the
most important aspects of any marketing plan.
The research content on distribution in marketing include:
- Design and selection of distribution channels of goods
- Distribution network

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- Transportation and storage of goods
- Organize sales activities
- The after-sales service (installation, warranty, spare parts supply, etc.)
- Pay for sales staff
- Display and introduction of goods
1.2.4. Promotion
It is a collection of identifiable information activities to impress the buyers and
make the prestige to the business for ensuring that customers will know about their
product or services and

was impressed well about the products and promote the


transactions. These activities include advertising, catalogs, public relations and retailing,
in particular advertising on television, radio, newspapers, bulletin boards, TV and radio
channels are tracking the attention of the public or funding the programs applied to
valued clients, telephone sales, direct sales, home product introduction , send catalogs to
customers and the public relations.
Trade promotion activities, sales support will create the good conditions for
matching the

supply and demand issues through two-way communication: from

businesses to consumers and vice versa from the consumer to the enterprise. On the
basis of information treatment of customers, business will have the activities in order to
promote the goods sold faster, more help reinforce the prestige and business
development in the market. Under competitive conditions, consumer tastes constantly
change so the trade promotion and sales support activities becomes more urgent and
more difficult. The effective trade promotion and sales support activities will change
position and shape of the demand curve.
Trade promotion or sales support activities must be appropriate to the particular
circumstances and conditions to meet the expectations of our customers. So, enterprise
should choose the appropriate forms and means for each trade promotion activities,
budgeting activities for each special importance item in the business.
1.2.5. The combination of 4Ps and 4Cs
The coordination 4Ps in a single strategy to achieve success in marketing is called
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the marketing mix. For product, the businesses should have a right product strategy
whether it is new products or improved product. To be best sale products, the price
strategy is also extremely important. Cheap price is not good in some case (there are
products like luxury products are often to be sold at high prices to penetrate the market).
If suitable conditions, enterprise may also conduct business strategy called " skim
pricing strategy" to the maximum their benefit. The price policy can also be a useful
tools to reap maximum profit and be able to compete well in the market.
The promotion is often planned before launching the product. Commonly promotional
activities used include advertising campaigns, public relations, roadshows, sponsored ...
Recently, the marketing experts continue supplementing to the marketing mix
concept of 3Ps:

People, Process, Physical evidence to strengthen the marketing

activities. However, this strategy can only be successed if the enterprise plan and
implement the stretegy under objective perspective of customers and consumers, and not
under the subjective perspective of the business.
Objective perspective of customers will help the businesses to provide the
products that meet the expectations of customers and have a suitble price that the
customer is acceptable, distributed in a convenient place, and implement the
communication activities as the way to prefer the customers.
Therefore, the marketing experts have introduced the concept of 4Cs and attach
these Cs with Ps in pairs to remnid the marketers unforget the role of customer as the
target for planning the marketing strategies. The pairs P to C are coordinated as follows:
1.2.5.1. C - Customer Solutions corresponds to P - Product
This job reflect a point of view that every product provide to the market is an
actually solution to customers for solving some practical needs of the customer and not
just a "solution for profit" of the business. If we would like to do good works, the
enterprises are forced to research carefully to find out the customer's real needs and find
the solutions to meet the needs of them

1.2.5.2. C - Customer Cost corresponds to P - Price:
This job reflects reflect a point of view that the price of the product should be
seen as the cost that the buyer should spend. This cost will include not only the cost of
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purchasing the product, but also the cost of using, operation, and destroy the products.
This cost must be commensurate with the benefits that the product gives the buyer.
We should

understand that the benefits will include both functional and

emotional benefits. Many persons hesitate before buying the cars not as the product
price but they cosider about too high running cost (fuel, spare parts, maintenance,
parking, driver, etc.). In this context, fuel-efficient vehicles with cheap spare parts and
easy mainternace are often chosen.
1.2.5.3. C - Convenience corresponds to P - Place:
This job requires the product distribution mode of the enterprise must make
customers to be convenient . The typically convenient aspects of the distribution is ATM
networks of the banks. The banks have arranged many ATM at many places, will have
less trouble with cash, bank card so they will have more customer to open the account
1.2.5.4. C - Communication corresponds to P - Promotion
This job requires PR activities should be the two-way interactive communication
between businesses and customers. Enterprise listen the comment and aspirations of
customers and explain to the customer about how their product can meet those
thoughts and aspirations. An effective public relation strategy is the result of the

communication and the interaction between product as well as its brand with clients to
gain the understanding and deeply felt of customers about the products and brands.
Today, many businesses are applying the advertising mode "haze flush" with oneway from the business side, despite consumers can "digest" or not. Many messages are
still confusing, difficult to understand, even causing the repugnant to customers. In that
case, the communication have not meant to communicate, exchange information
between two parties. Thus, the product will never gain the sympathy and apprecitation
from the client side. Finally, their product and brand is easily forgotten by customer.
Two-way communication of professional company is done by the listening to customer
feedback, customer response analysis, and measurement the results of the media to get
the necessary correction for a part or the whole of the campaign.
For sure that the enterprise should need more Cs to represent an objective
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perspective of the client side instead of the subjective perspective of the business side.
Whether the formular of 4Ps, 7Ps or more, for today's marketing, every P letter needs
to be associated

with a C letter (Customer) to express their opinions through a

"customer oriented". No other way, business have to consider the customer - focus for
planning and implementation of

action programs and strategies in all units of the

business, not only in the field of marketing

Where there is no monopoly and unreasonable imposition on the part of the seller
to the buyer, in each of the C letter will be lodestar for the action of the business
towards their success.
1.3. The factors affecting marketing mix of textile and garment enterprises:
1.3.1. External factor
1.3.1.1. Economic environment
a) Analysis the effects of economic growth:
GDP growth impact on business operations of the business. GDP growth will
strongly impact to the demand of

the goods and services, creating more business

opportunities for enterprises.
According to the General Statistics Office and the Ministry of Labor, War
Invalids and Social Affairs, Viet Nam's GDP growth rate in recent years as follows:
Table 1.1. Vietnam’s GDP growth rate in the period of 2008-2011
Year

2008

2009

2010

2011

Growth rate (%)

6.2


5.3

6.5

5.8

GDP growth rate is more volatile in recent years, causing bad impaction on the
development of all sectors including textile industry.
b. Analysis the effects of inflation
Although Vietnam's economy in recently years has some progress, however go
along with economic development is the increase of inflation. Currently, Vietnam is a
country that has the highest inflation rates in the East Asian countries.

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Table 1.2. Inflation rate of Vietnam in the period of 2008-2011
Year

2008

2009

2010

2011


Inflation rate (%)

22

6.9

11.75

18.13

(Source: Department of Statistics and the Ministry of Labor, War Invalids and Social Affairs)

The high inflation led to the input material prices, labor costs are volatile,
increasing, making the difficulties to Gatexco to reduce product prices, stable
production. On the other hand, inflation is high so the progress of implementation of
investment projects of Gatexco is also slowed down due to the investment cost is
increased beyond the budget. In addition, Gatexco also encountered the difficulties in
accessing the loans funded by the Government of Vietnam as the credit tightening policy
c. Analysis of the impact of interest rate and exchange rate
In the market economy, the changes of exchange rate and interest rate have a huge
impact on the business activities of the textile industry because all most enterprises in the
textile industry are medium or small scale businesses with the finance resources are mostly
borrowed from the bank. Besides it, a lot of input materials of the textile companies are still
imported from abroad
In recent years, many enterprises have encountered the difficulties in accessing
the fund because interest rates are too high. High interest rate means that payable
borrowing costs of capital of the enterprise will be higher, increasing the cost of
production, reducing the competitiveness of the enterprise and making it difficult to
invest for expanding the production.

Thus, we can see that the volatile of the exchange rate in recent years has caused
the difficulties to businesses. Enterprises that import raw materials from abroad have to
double influence, especially in the middle of 2010, raw material price increased and
inflation of VND.
d. Analysis the influence of other factors
The skill and qualification of the labor force are still weak and low. Mainly the
labor is unskilled and have untrained. Besides it, the supply is not stable with seasonal

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nature makes the difficulties to businesses for ensuring the productivity, product quality
as well as production plan.
The quality of infrastructure is poor and un synchronization
Labor cost is relatively cheap in comparison to other countries in the region
1.3.1.2. Analysis of the influence of political, legal, and policy:
Vietnam’s politics is quite stable. The changes in laws and policies have a certain
impact on operations of the business. It can create growth opportunities as well as the
risk and difficult to business.
Besides the above-mentioned disadvantages, the Vietnamese textile and garment
enterprises have difficulties in input costs that arer increasing as the adjustmwent of the
Government to price of electricity, gas, oil, transportation freight, salaries, insurance ...
increased from 5 to 15% over the same period last year
Thefore, the change of policy, the law has both favorable conditions and
development opportunities to businesses and also make the difficult for the textile
industry in the production and business activities.

1.3.1.3. Analysis the influence of the socio-natural conditions
Population structure and human resources: Today, Vietnam is a country with 58
million people in the working age (from 15 to 64 year olds), is called the period of
"golden population”. This is a huge advantage of Vietnam by the feature of the textile
industry is required for intensive and young labor force especially.
Qualifications of employees: Most people in the working age are graduating high
school and training programs as well as vocational training programs but qualified and
skillful management labor force are still shortage.
The grown of services, distribution and retail system of the companies, has
covered the provincial and district markets throughout to facilitate consumer can shop
easily and easy update the latest information on the style and quality of products.
1.3.1.4. The socio-cultural environment
As people's income and educational level are increasing so it requires enterprises
have to study and capture the demand of the market to supply with appropriate products
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