BANKING ACADEMY, HANOI
BTEC HND IN BUSINESS (FINANCE)
ASSIGNMENT COVER SHEET
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UNIT TITLE
ASSIGNMENT TITLE
ASSIGNMENT NO
NAME OF ASSESSOR
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Marketing
Vinamit Marketing Processes
1 of 2

I, __________________________ hereby confirm that this assignment is my own work and not copied or
plagiarized from any source. I have referenced the sources from which information is obtained by me for
this assignment.

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Date

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Assignment Received By:

Date:

1

Unit Outcomes
Outcome

Investigate
the concept
and
process of
marketing
(1)

Explore the
concepts of
segmentati
on,
targeting
and
positioning
(2)

Evidence for the
criteria

Feedback

Assessor’s
decision

Compare

alternative
definitions of
marketing

a

Identify the main
characteristics of
a marketing
oriented
organisation

b

Explain the
various elements
of the marketing
concept

c

Identify and
assess the
benefits and
costs of a
marketing
approach

d


Identify and
explain macro
and micro
environmental
factors which
influence
marketing
decisions

a

Propose
segmentation
criteria to be
used for two
products in
different markets

b

Outline the
factors which
influence the
choice of
targeting strategy

c

Internal
Verification


2


Outcome

Evidence for the
criteria

Assessor’s
decision

Feedback

Explain how
buyer behaviour
affects marketing
activities in two
different buying
situations

Internal
Verification

d

Merit grades awarded

M1


M2

M3

Distinction grades awarded

D1

D2

D3

Comments by Assessor - Common Skills
A

B

C

D

E

F

G

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)
Overall, you’ve


Areas for improvement:

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Marketing report
Transmitted to
Sales director
Prepared for
Lecturer:
Tutor:
Marketing Executive
Vinamit Marketing Process

Prepared by
Student ID:
Class:

No of words (Excluding executive summary, introduction, conclusion,
recommendations, appendix and references)
EXECUTIVE SUMMARY

4


Nowadays, more companies adopt a clearer vision of the direction to take their brands and

challenge marketing convention through innovation, advertising or some other aspects of
marketing. Furthermore, they are intention of adopting different approaches to marketing that
focuses on stretching limited resources, staying in close contact with customers and creating
more satisfying solutions to customers’ needs. Facing with harder and harder economic
challenges, businesses have to make more and more effort in getting a non-stop development in
every aspect especially marketing which is known as an increasingly vital ingredient for business
success.
Taking the responsibilities of marketing executive, I have to bring a professional approach to
marketing activities and launch the new products of “Beef Jerky” and “Lettuce and Broccoli
Chips” for Vina Mit Ltd. Known as the leading company in Co-operating with farmers to
develop Agriculture Industry through supports like scientific studies, seeds and plants, modern
technology and training, Vina Mit always ensures stable and year-round resources for demand
thanks to their Total Complete Supply Chains. On the other hand, they would have to deal with
various difficulties in launching these new products so that they still can maintain their
achievement for their total complete supply chains with new suppliers, process and technology.
That is why understanding the needs of customers is only the first step before deciding whether
the

products

could

be

launched

and

how


they

would

be

introduced.

Therefore, this report is made to recommend an overall best practice of marketing approach to
successfully launch these exciting new products in Vietnam. Hence, it covers the market for
“Beef Jerky”, “Lettuce and Broccoli Chips” as well as a limited number of areas. By using my
business skill, creativity and knowledge about marketing, I hope to help promote these new
product lines of Vina Mit Ltd. Company to targeted group of customers, commercial users and
client businesses within international marketplace in general and national market in Vietnam in
particular. Based on that, this report contains the standard practice of Marketing Professionals
including explanation of some basic concepts in the first part and its applications and practical
analysis on Vina Mit Ltd. Company in the second part of the report as a reference for people who
are concerned about this field.

TABLE OF CONTENTS
5


Contents
Cover sheet………………………………………………………………………..
Title page…………………………………………………………………………..
Executive Summary……………………………………………………………….
Table of contents………………………………………………………………….
List of figures……………………………………………………………………..
Introduction

1a. Comparison of the various definition of marketing………. …………………

Page
1
4
5
6
8
9

1b. The main characteristics of a marketing oriented organization for Vinamit
1b.1. Marketing oriented organization……………………………………….

10

1b.2. Company’s commitment……………………………………………..

10

1b.3. Company Led activities (7P’s)……………………………………….

11

1b.4. Profitability…………………………………………………………..
1c. The various elements of the marketing concept

12

1c.1. Marketing philosophies…………………………….…………………


12

1c.2. Elements of marketing philosophies…….…………………………….
1d. The benefits and costs of using marketing approach to do business in

13

Vietnam
1d.1. Quality issues and their implication for customer relationship………..

16

1d.2. Costs and Benefits of Marketing approach……………………………
2a. The macro and micro environmental factors in Vinamit which might

17

influence Vinamit’s marketing decisions
2a.1 Micro environment………………………………………………………

18

2a.2 Macro environment………………………………………………..

18

2a.2.1 PEST factors…………………………………………….
2a.2.2 Competitive environment…………………………………
2b. The methods the markets for the products (‘beef jerky’ and ‘lettuce and


19
21

broccoli chips’) may be segmented and the benefits/limitations of each method
2b.1 Definition of segmentation……………………………………………..

22

2b.2 Bases of segmentation………………………………………………….

23

2b.3 Targeting……………………………………………………………….

25

2b.4. Positioning………………………………………………………………
2c. Factors influencing the choice of the targeting strategies for the company’s

26

products
2c.1. Market coverage strategies……………………………………………

27

2c.2. Factors influence choice of targeting strategies……………………….

28
6



2c.2.1. Attractiveness of a marketing segment…………………………

28

2c.2.2 Suitability of market segment to Vinamit……………………….

29

2c.2.3 Company resources……………………………………………..

29

2c.2.4 Product’s life-cycle stage………………………………………
2d. Explain how buyer behavior for the products might affect the Vinamit’s

30

marketing actiities in the two markets
2d.1. Comparing consumer buying behavior and organizational buying
behavior…………………………………………………………………………

30

2d.2. The process of consumer buying behavior……………………………

30

2d.3. Factors influencing consumer buying behavior………………………


31

2d.4. The Process of organizational buying behavior……………………….

32

2d.5. Factor influencing organizational buying behavior………………….

32

2d.5.1. Environmental factor…………………………………………

33

2d.5.2. Organizational factor…………………………………………..

34

2d.5.3. Interpersonal factor……………………………………………

35

2d.5.4. Individual factor……………………………………………….
Conclusion………………………………………………………………………
Recommendation………………………………………………………………
Reference……………………………………………………………………..

35
36

37
38

7


LIST OF FIGURES
Figures
Figure 1. The marketing concept and selling concept contrasted
Figure 2. Elements of marketing concept
Figure 3. Benefits and costs of marketing approach

Page
13
13
19
20

Figure 4. Strengths and weaknesses of Vinamit in term of micro environmental factors
22
Figure 5. Opportunities and threats of Vinamit
24
Figure 6. Bases of segmentation for beef jerky and lettuce and broccoli chips of Vinamit
Figure 7. Specific segmentation for beef jerky and lettuce and broccoli chips of Vinamit

25
26

Figure 8. Benefits and limitations of bases of segmentation
26

Figure 9. Marketing coverage strategies
27
Figure 10. Porter’s generic strategies (competitive advantage)
Figure 11. Perceptual Mapping of Vinamit
Figure 12. Attractiveness of a market segment
Figure 13 Comparing consumer buying behaviour and organizational buying behaviour
Figure 14 The process of consumer buying behaviour
Figure 15. Factors influencing consumers’ purchase actions
Figure 16. The process of organizational buying behaviour

27
28
30
30
32
32

INTRODUCTION

There are many ways to understand about marketing. According to the Chartered Institute of
Marketing (CIM), marketing is defined as 'the management process responsible for identifying,
anticipating and satisfying customer requirements profitably'.

8


CIM’s definition is quite brief and all-encompassing and it mentions about marketing’s function
as a management process focusing on marketing objectives. Based on that marketing’s duty is to
identify the needs and wants of the customer and to try to deliver benefits that will enhance or
add to the customers’ lifestyle and then get the satisfaction of these needs result in a healthy

turnover.
Besides, Philip Kotler defines marketing as 'satisfying needs and wants through an exchange
process'.
Instead of referring to management process, Philip Kotler concentrates on exchange process
which represents exchange of value through transactions between customers and suppliers. The
more satisfied they feel, the greater benefit suppliers get then the more transactions are made.
Moreover, “marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large” — The American Marketing Association Board of Directors.
The definition which is also as comprehensive and concise as CIM’s but it focuses on
encompassing the product development, marketing communications, pricing, and strategic
aspects of marketing.
Another definition of marketing is that “marketing is the process by which companies create
customer interest in products or services. It generates the strategy that underlies sales
techniques, business communication, and business development. It is an integrated process
through which companies build strong customer relationships and create value for their
customers and for themselves”

—

Wikipedia

This definition is so focused on both the strategic and functional aspects of marketing, but
especially that it’s so customer-focused referring to customer target in marketing.
Each of the definition above mentions about different aspects of marketing but in conclusion,
marketing is a process from analysis to action. It is strategy development, then logical and
thought-out tactical implementation and finally to reach customer satisfaction and to increase
profit.

9



1b.1. Marketing Oriented Organization
Marketing Oriented Organization means a business carries out towards the satisfaction of their
customers. The decisions taken are based around information about customers’ needs and wants,
rather than what the business thinks is right for the customer.
Vinamit aims to be a connection between farmers and consumers. Their highest objective they
want to reach is when their customers use their products not only for the products’ quality and
the favor of Vietnam but also for a more active life. Understanding about the needs of
Vietnamese people for fresh and nutritional products, Vinamit is the pioneer in dried fruit field to
give products which contain a part of Vietnamese tradition with the typicality of tropical fruits
and particular favor of Vinamit which is also considered as spice for modern life and a fast food
of Vietnam.
1b.2. Company’s commitment
Besides, Vinamit’s vision is also to aim to Vietnamese customers which is ‘Vinamit want to
become the leading company in providing products being good for health in Vietnam and
raise the values of Vietnam’s agricultural products to world’. Following this, Vinamit wants to
bring products that are good for Vietnamese people’s health and to make Vietnam’s agricultural
products recognized in the world. Therefore, all of their objectives reach to Vietnam’s values and
Vietnamese people. Based on that, customers factor is their most important focus of the company
whose objective is committed to grow customer and base on Win-Win solution and their mission
‘Sustainable development is built on the platform of values chain from origin to crest, and
managed by the decentralized organization with high responsibility and pride of nation’ also
makes particular meaning and values. With their value chain from origin to crest, they can
control and manage their supply as well as the quality of the products in order to meet their aim
in the vision to bring healthy products for Vietnamese people. Moreover, they make use of the
strengths of Vietnam to apply to their products to recognize the Vietnamese value.
1b.3. Company Led activities (7P’s)

10



However, Vinamit has not yet provided an efficient marketing mix. As far as Company Led
Activities are concerned, they contain 7P: People, Product, Price, Place, Promotion, Physical
evidence, Process. Applying people on Vinamit, with above 1000 employees, the managers as
well as other employees of the company do not make a particular image which represents for the
company, its symbol in their customers and even their company’s desired culture. However, the
company got the loyalty of their employees which is a motivating factor for management team to
give convenient strategies for Vinamit.
The company had a particular concern about their product when they invested in production
lines including an evaporation drying system with the modern sublimation technology from
Germany, Japan and Taiwan. Furthermore, Vinamit’s products are also various including fried
jack-fruit, fried banana, fried batata, fried taro and so on. As a result, Vinamit’s products quickly
win customers in Vietnam and abroad with a growth rate of 30% to 50% year on year.
Being the first business in dried fruit field in Vietnam, but price strategy is not Vinamit’s main
strategies. On the other hand, price strategy is not a long-run method for the company to get
creditability and loyalty of customers, so this term is not their competitive advantage in the
market.
Furthermore, with their place in Binh Duong which is one of key economic areas and the top of
provincial competitive index (PCI) of Vietnam during 3 years (2008-2010), Vinamit has
advantages from this competitive environment. The company also has three cold storages to
receive raw materials in Buon Me Thuot, Tay Nguyen and Dong Nai as well as 20 branches in
regions of Vietnam so that it is easy for them with their distribution channel and method.
Nowadays, the biggest supermarket system like Metro, Maximart, Big-C, Co-op, Hapro buy the
products of Vinamit and this is a good condition for the customers of Vinamit to get to the
products.
Vinamit’s promotion strategies are invested in a small scale by buying their products at fairs or
participating in social activities, so they do not make a great impression in customers to
memorize. Furthermore, their physical evidence is not good enough. At their website, the
pictures are all really lively and meaningful with the images of fresh fruits with farmers but there

is not music and limit of information. Their performance is nice and modern with a lot of
information arranged scientifically but it is not often updated. Also, their display is tidy and
11


smart in the supermarket. Their process is more convenient with their modern vacuum dried
technology.
1b.4. Profitability
On the other hand, Vinamit gets a good financial performance when their total annual sales
volume is US$2.5 Million - US$5 Million. In Vietnam market, Vinamit reached 90% in share of
consumption while 60% of total Vinamit products was exported to Asean, China, Taiwan,
Hongkong, Japan and other markets in the Europe and Northern America. Based on the main
characteristics of marketing that Vinamit is applying, it can be concluded that Vinamit is an
oriented-marketing organization.

1c.1 Marketing philosophies
There are five marketing philosophies including production concept, product concept, selling
concept, marketing concept and societal marketing.
Production concept is to focus on production efficiency and bringing down prices. What they
are concerned about is whether they can produce products to achieve a reduction in costs and
improved production so that consumers favor products that are available and highly affordable.
Another marketing philosophy is product concept which focuses mostly on how to make the
products best but little on promotional effort. Therefore, the product era holds that consumers
favor products that offer the most quality, performance, and innovative features, not customers’
needs.
Besides, firms could use selling concept which is little about products’ needs but is to beat the
competition to the sales. Hence, companies have to use marketing techniques to decrease their
inventories and also carry out well-trained and motivated sales force to sell their products, so
effective selling and promotion are the major drivers to success.
Marketing concept which concentrates on achieving organizational goals based on meeting the

needs, wants and demands of target markets and delivering the desired satisfactions more
12


effectively than competitors do. Therefore, companies could get a profit by successfully
satisfying customers.

Figure 1.The marketing concept and selling concept contrasted
Societal marketing concept focuses on bringing benefit to society. Based on that, this concept
has as similar characteristics as marketing concept but with the added provision that there will be
a curtailment on harmful activities to society and generation of customer satisfaction with longrun societal well-being to achieve company’s goals and responsibilities.
1c.2 Elements of marketing philosophies
A company could use one of the marketing philosophies but nowadays, companies orient to be
interested in customers’ needs and satisfaction for the long-run development. Vinamit does not
stay out of this trend which appreciates finding right products for customers but not finding right
customers for products. This is also the context of marketing concept as below

Figure 2. Elements of marketing concept
Human needs which are states of felt
deprivation consist of basic physical needs
for food, clothing, warmth, and safety; social needs for belonging and affection;
and individual needs for knowledge and self-expression. These needs were not invented by
marketers; they are a basic part of the human makeup.

13


Wants are the form people’s needs take when they are shaped by culture and individual
personality (A Vietnamese needs food but wants rice, meat and vegetable). Wants are shaped by
one's society and are described in terms of objects that will satisfy needs.

People have almost unlimited wants but limited resources, so they want to choose products that
provide the most value and satisfaction for their money. When backed by buying power, wants
become demands. Consumers view products with benefits and choose products that are worth
for their money. Fried chips of KFC mean fast food for people all over world and enjoyed with
fried chicken and high fat content, while chips of Vinamit are full of Vietnamese taste, good
nutrition as fresh fruit and could be brought easily to anywhere. Given their wants and resources,
people demand products with the benefits that add up to the most satisfaction.
Organizations understand customers’ needs, wants and demands by conducting customer
research or analyzing customer inquiry. However, Vinamit has not yet done any activities like
that. Instead, they merely had their behavior principles about satisfying customers and this is also
their core value for all the people of Vinamit at all level stay closer to customers.
When a company understands about their customers' needs, they satisfy them by their products
and service. A product is anything that can be offered to a market to satisfy a need or want. The
concept of product is not limited to physical objects but anything capable of satisfying a need can
be called a product. On the other hand services are activities or benefits offered for sale that are
essentially intangible and do not result in the ownership of anything.
Many organizations misunderstand to care more about the specific products they offer than to the
products’ benefits. They may suffer from "marketing myopia" which is about focusing only on
existing wants but losing sight of underlying customer needs. Therefore, they may easy to get
troubles if a new product comes along that serves the customer's need better or less expensively.
The customer with the same need will want the new product.
Vinamit provides fried fruits for the needs of soft foods like chips in picnics or friendly
congregations. Known as the first enterprise in fried fruits in Vietnam, Vinamit’s vision is to
become the leading company in providing products being good for health in Vietnam and raise
the values of Vietnam’s agricultural products to world.

14


Consumers have many choices in a broad array of products and services that might satisfy a

given need but they choose for their perceptions of the value that products and services deliver.
Based on that, customer value is the benefits that customers may gain from owning and using a
product compared to the cost of obtaining it. Applying on Vinamit, a customer of Vinamit can
gain many benefits which are obviously preserving the fruits’ original taste, color and aroma.
They also get other values with contribution to the development of agricultural Vietnamese
products. This is considered as a good condition for customers to choose Vinamit instead of chips
of other companies like Green highland International Co., Ltd or Quynhanh Limited Company.
Also, customer satisfaction is achieved by the process of delivering value relative to buyer’s
expectations with the product’s perceived performance. When customers satisfy, they will
duplicate buying and tell others about their good experiences with the product, so company’s
purpose is to match customer expectations with their performance. An essential factor leading to
customer satisfaction is quality which influences directly on product performance. Hence,
quality begins with customer needs and ends with customer satisfaction. Nowadays, more and
more organizations adopt total quality management (TQM) programs to improve the quality of
their products, services and marketing processes. To affirm the product quality for their
customers’ comfort, Vinamit has applied quality management system with ISO 9001:2000
standard and HACCP certificate in production and business for years. However, these
achievements only make it better for customers’ wants, demands and product quality, the
customer satisfaction is partly identified by Vinamit’ dominance in the domestic market with 90
percent market share and that is an evidence for its own value.
After understanding about customers’ needs and wants, companies give strategies to meet them
through means of satisfaction including exchange. Exchange is the act of obtaining a desired
object from someone by offering something is return. Following that, there is equality between
two parties and this process is really followed by transaction which is marketing’s unit of
measurement consisting of trade of values. Transaction usually involves a respond to the offers
of target audience and paying money for the company’s response. Therefore, transaction is a part
of relationships which are built with valued customers, distributors, dealers and suppliers.
Looking more deeply at marketing, it is no longer to maximize the profit from each individual
transaction but it is turning to build mutually beneficial relationships with customers and other
stakeholders.

15


The concepts of exchange and relationship lead to the concept of a market which is the set of
actual and potential buyers of a product and then these buyers share a particular need or want
that is satisfied through exchanges and relationships. The size of a market depends on the
number of people who exhibit the need, have resources to engage in exchange, and are willing to
offer these resources in exchange for what they want.
As far as ‘exchange’, ‘transaction’ and ‘relationship’ are concerned, Vinamit did not step up or
focus strongly, so consumers only remember Vinamit for its product quality and its objective in
improving agricultural Vietnamese products. Hence, Vinamit should concentrate more on
customer service system.
I choose marketing concept on Vinamit because this is an important factor that could make
significant changes about the company’s image and position in customers leading to long-term
good relationships for the development of company. Moreover, this field is not the strengths of
Vinamit, so it is necessary to review and analyze its marketing concept to point out solutions and
answers to improve and make it become the strength of Vinamit.

1d.1 Quality Issues and their implication for customer relationships
The Vinamit products have specialty of tropical fruits with excellent characteristics such as no
cholesterol, low oil and sugar content, numerous fibrous matter, fresh taste and natural color.
This makes the favor of many Vietnamese people as well as the interest of other consumers all
over the world.
All the products are produced and packaged based on many international quality management
standards. The first one they are recognized with BVQI (Bureau Veritas Quality International) –
a top organization in the world which certifies international quality of Bureau Veritas. They also
got HACCP (Hazard Analysis Critical Control Point) which is used in the food industry to
identify potential food safety hazards, so that key actions can be taken to reduce or eliminate the
risk of the hazards being realized.
With these recognitions, Vinamit wants to show their implication to their customer relationship

which focuses on the quality of their products that have a great influence on their customers’
health. Providing products with good quality, Vinamit aims to make a long-term relationship with
16


their customers with concentrating on consumers’ health and also customers’ reliability and
loyalty with a good impression about high quality products of Vinamit.
1d.2 Costs and benefits of marketing approach
According to marketing approach which has been chosen, there are eight different functions
which have separate benefits and costs on the business. Below is detail:

Functions of marketing

Benefits
•
Meet market’s needs at
anytime

Costs
•
Easy to lead to
stock items situation

•
Make stabilities on
Vinamit’s suppliers’ life

•
Bad influence on
finance if market’s needs

are lower than their
offerings

•
Get the reliabilities of
customer
•
Making Vinamit’s brand
more familiar to customers
•
Reach large numbers of
people on a national or regional
level in a short period of time

•
Big expense for
marketing techniques

•
Increase competitive
value

•
costs

Transporting

•
Access to customers
more easily


•
price

Increase product

•
Meet needs of market at
anytime

•
Costs of
inventory
•
Vinamit is
influenced strongly with

17


•
Making customers be
secured when using their
products
•
Getting customers’
loyalty as well as good
relationship with them in long
run


•
Reduce the
products’ competitive
level with others in term
of price

•
Getting reputation for
future development
•
Getting channel
members’ loyalty

•
Influence of
Vinamit’s cash budget

•

•

Risk of bad debts

•
Risk of raising
capital
•
Higher opportunities to
get profits
•


•
High risk to fail
in the new field

Widen their business

•
Understanding
customers’ needs, wants and
demands better

•
Monetary costs of
regular marketing
research

•
Setting marketing focus
structure

•

Time-consuming

•
Having directions to
build excellent service and get
customers’ satisfaction
Figure 3. Benefits and costs of marketing approach


2a.1 Micro environment
Being an oriented organization, Vinamit was influenced by both micro and macro environment.
The first factor could be concerned is micro environment including all sectors which impact
18


directly on Vinamit and its activities. Below are the strengths and weaknesses of Vinamit in
terms of micro environment.
Key elements of
micro environment

Stakeholders

Strengths

Weaknesses

•
Manager staff with various talents
and experience in marketing management
and business

•
Management team
does not stay close to
customers

•
Rich staff with above 1000

employees

•
People at all level
in Vinamit do not make a
good community to
represent image and
culture of Vinamit

•
Having a good relationship with
suppliers when Vinamit considers farmers
as their friends and partners
•
Vinamit’s products present in
almost all large supermarkets, retailers
and wholesalers in Vietnam.
Distributive network

Competition

•
Vinamit attends in all Vietnamese
supermarkets in the world, even in Walmart supermarket system
•
Vinamit has 20 branches to control
agencies and retailers all over Vietnam
•
Being the first business in dried
fruit field in Vietnam

•
Being the first company in
Vietnam to apply the vacuum drying
processing technology

Internal capability

•
Have significant contributions to
society
•
Give many motivating policies to
employees
•
Dominating in the domestic
market with a 90 percent market share

•
Vinamit has not yet
capitalized every means to
have more competitive
advantages such as home
shopping or free delivery

•
Apart from
Vinamit, Mc Donald or
KFC which also buy chips
are already recognized in
brand name and quality in

the world

•
Vinamit’s
marketing techniques
don’t bring high efficiency
in promotion

•
Using natural materials to make
products that keep natural tastes
•
Vinamit farms with more than 500
000 hecta to provide fresh and highquality materials for the products
19


Figure 4. Strengths and weaknesses of Vinamit in term of micro environmental factors
These elements are essentials that help the company achieve their objectives, marketing planning
and activities.
2a.2 Macro environment
2a.2.1 PEST factors
As far as the influence of macro environment on vinamit is concerned, political and legal
considerations is a big concern of Vinamit. The major factor Vinamit has to deal with is the
increase in business legislation.
Business legislation which has three main purposes including protecting companies, consumers
and society will charge business with social costs created by their products and production
process. Following that, Vinamit must have appropriate policies in dealing with customers.
Vinamit is bound by law about the price of their products, the truth level of their advertising and
trade descriptions as well as the product safety. In Vietnam, Vinamit must obey the law of

protecting consumers’ rights in law number 59/2010/HQ12. The company is also enforced at law
in how they treat their employees. Following that, the business must guarantee about equality
among their employees and the protection of employees’ rights with employment legislation and
labor law of Vietnam (1994). Conducting these rules, Vinamit has its own policies for their
employees and the most typical policy is that Vinamit lends their excellent employees money to
buy houses and then they could pay increasingly from their salary in 30 years so that their
employees can be comfortable to work and above all every year. Besides, the company sends
their employees to overseas in order to be trained, studied and update knowledge.
In addition, Vinamit must be enforced at law for their action to society. This is pointed out when
Vinamit had to temporarily suspend operations of its factory after it was found releasing
untreated wastewater into a public drainage system on August 21 st 2010. Facing this problem,
Vinamit board chairman Nguyen Lam Vien said: ‘While the suspension would make the
company suffer losses of VND15-20 billion (US$770,020-1.02 million) a day, it would only
resume after it has resolved the environment problems’.

20


Besides, Vinamit must follow some clauses in criminal law of Vietnam. Being a business which
a part of Vietnam economy, Vinamit must obey all these clauses of law aspects and this has
significant influence on Vinamit.
Another factor of macro environment that should be referred to is technological issues.
Explosive advances of technology has had a major impact how companies bring value to their
customers. Therefore, by using modern technology from America and Taiwan in manufacturing,
Vinamit could create better products tailored to meet customer needs in term of product quality.
It shows that technology is a good tool for improving quality issue in both product quality and
service quality with distributing products more efficiently and communicating with customers in
large groups or one-to-one.
Besides, a company can capitalize technology’s advantages to support their customer care and
customer service through website of the company, keeping contact with customers through

emails or telephones. Furthermore, the company can also buy products online or home shopping,
which is easier for consumers to access to their products instead of marketing techniques which
waste a lot of money and that means technology also helps the company to decrease many costs
during their process circle.
Technological issue may be considered as a competitive tool with the dominate benefits a
company can get. Following that the variety and availability of goods could increase remarkably
thanks to application of technology, while this is also an important factor to rise the competition
of products when it affects directly to the price, quality and performance of the products.
2a.2.2 Competitive environment
Based on the micro environment and macro environment factors, Vinamit gets their opportunities
and threats as below

Opportunities
•
Good management team could give
right strategies for the development and
extension of the company
•

Increase their market share

Threats
•
The interest rate of Vietnamese banks
fluctuates continually
•
Vietnam limits the level of foreign
currency storage
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•
Widen their distribution network and
diversify products
•
Learn and have more partners and
potential customers when Vietnam integrates
more deeply into WTO in 2011
•
Keeping the products’ price unchanged
from the North to the South of Vietnam
because of good distribution network

•
‘me-too’ phenomenon is more and more
popular when dried fruits and chips
increasingly appear
•
Vinamit must face with strong
competitors with the deeper integration of
Vietnam to WTO

Figure 5. Opportunities and threats of Vinamit
With its non-stop development with 90 percent market share, Vinamit totally can increase their
market share to be the number one business in this field in Vietnam. Moreover, they can also
widen their distribution network to other countries and diversify their products by the reckless
ideas of Vinamit’s managers and their modern technology. Furthermore, when Vietnam integrates
more deeply into WTO, Vinamit may have more potential partners and customers. In contrast, it
also must deal with strong competitors with their reputation and brand name. While the inflation
increases higher, the interest rate of banks fluctuates so continually and suddenly that Vinamit

could not respond immediately. Also, with the limitation in the level of foreign currency of
Vietnam, Vinamit does not have USD or EURO enough and this could reduce the competitive
level of Vinamit in its international business relationship.
Differentiation
Although violet does not symbolize agricultural products, it is familiar for consumers with the
typical violet for Vinamit. With this product color, Vinamit’s products are under the two kinds of
features including can and plastic bag which are divided into different size: 30g, 100g, 200g, and
500g. There are also different kinds of fruits like jackfruits, pineapples, bananas, apples, or taro
which is processed into dried fruits, and soft dried fruit which bring new favor for consumers.
Costs
With its complete supply chain, Vinamit could have stable supply resource and reduce
intermediate costs which lead to have positive effect on products’ price. Moreover, the customers
who choose these products can enjoy their benefits in product quality and to contribute to the

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objective of Vinamit as improving the value of agricultural Vietnamese products. Vinamit is a
good example in controlling the market through the low cost producer.
Focus
Costs and differentiation are the important factors for Vinamit to focus their products in suitable
segments.

2b.1 Definition of segmentation
According to Kotler, market segmentation is the subdividing of a market into distinct subsets of
customers, where any subset may conceivably be selected as a target market to be reached with
a distinct marketing mix.

2b.2 Bases of segmentation
There are four bases of segmentation that should be referred to and below is four base of

segmentation for beef jerky and lettuce and broccoli chips.

-Large cities within Vietnam
- Centered-economic areas: Hanoi, Hochiminh city,
Danang, Khanh Hoa Haiphong
- Population density of these cities: above 555
people/km² comparing to those of Vietnam: 260
- Tropical climate
- Temperature average: 22-27°C
- 12-19, 20-34, 35-49
- 1-2, 3-4, 5+
- Male
- Average and high
income
- Civil servants,
businessman and
students
- Grade school or less,

- 12-19, 20-34
- 1-2, 3-4, 5+
-Female
- every income level
- Students, civil servants,
the retired
- Grade school or less, some
high school, high school
graduate, some college,
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some high school, high
school graduate, some
college, college graduate

college graduate

- middle class to upper
class

- Every class

- Outdoor-oriented

- Sports-oriented, outdoororiented

- Compulsive, ambitious,
authoritarian, gregarious

- Compulsive, ambitious,
authoritarian, gregarious

- Regular occasion
- Quality
- First-time user

- Regular occasion
- Quality
- First-time user


- Heavy user
- Strong, absolute
- Interested or desirous
- Enthusiastic, positive

- Heavy user
- Strong, absolute
- Interested or desirous
- Enthusiastic, positive

Figure 6. Bases of segmentation for beef jerky and lettuce and broccoli chips of Vinamit
With the bases of segmentation, I propose the detail segmentation that may be applied for
Vinamit as below

Centeredeconomic areas

Average to high
income

Centeredeconomic areas

Age
segmentation:
12-19, 20-34

Middle class to
upper class
Sports-oriented,
outdoor-oriented


Buyer readiness
stage: Interested and
desirous
Attitude to product:
Enthusiastic,
positive

Figure 7. Specific segmentation for beef jerky and lettuce and broccoli chips of Vinamit

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These segmentation can make benefits as well as costs for Vinamit and to make it easier for
analyzing and evaluating these segments of these two products, below is benefits and costs of
each segmentation that is chosen

Geographic
segmentation

Benefits
•
Focus on a limited geographic area
to achieve concentration of force
•
The results could be seen soon and
it is easier for the company to face any
troubles
•
Provides a quick overview of
differences and similarities between

consumers according to geographical unit

•
Distinguish one customer group
from others within a given market
•
Develop marketing offers that are
most suited to each group
•
Easier to measure the size of the
market and the media that should be used
to reach it effectively
•
More closely identify and
understand their needs, wants and
demands
Psychographic •
Providing rich data concerning the
segmentation
psychological make-up of consumers
•
Enabling marketers to better
understand the reasons behind consumers'
purchases
Demographic
segmentation

Behavioural
segmentation


Limitations
•
Restrict the geographic
areas which help access easier to
consumers
•
Fail to understand about
consumers’ needs, wants and
demands

•

Limited revenue

•
Shortage of information
about how often and how
consumers use products and
services

•
Be used to develop customer
profiles that will guide promotional efforts
and ultimately strengthen a brand
•
Ensure about consumer’s attitude
•
Waste much time and
to products to give convenient strategies
•

Easy to get success in the first step money to get information buyer
readiness stage and attitude to
in target market
products

Figure 8. Benefits and limitations of bases of segmentation
There are many reasons for Vinamit to segment its market. The company's marketing can better
match the needs of group customers with its strengths and offerings, when the focus is on
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