THE FINANCIAL UNIVERSITY OF FINANCE & MARKETING DEVELOPING AN INTERNATIONAL MARKETING PLAN FOR BAMBOO FURNITURE PRODUCTS TO ENTER THE KOREAN MARKET Majors: Marketing Specialized: Marketing Management Class: CLC_20DMA09 Course code: 2221702031209 Instrutor: Master Đặng Huỳnh Phương Student Implementation: Name Student Number Trương Quốc King 2021008461 Nguyễn Hoài Nam 2021008483 Huỳnh Ngọc Tâm 2021008541 Đặng Thị Tú Anh 2021008227 Lê Thanh Thảo 2021008550 Ho Chi Minh city, 2022 i TEACHER’S COMMENTS Student Implementation: Name Student Number Contribution (100%) Nguyễn Hoài Nam (Team Leader) 2021008483 20% Trương Quốc King 2021008461 20% Huỳnh Ngọc Tâm 2021008541 20% Lê Thanh Thảo 2021008550 20% Đặng Thị Tú Anh 2021008227 20% (This part is for teachers to directly guide and comment on students) Score in numbers Teacher signature (Score in numbers) (Teacher signature) MAJORS MARKETING MASTER ĐẶNG HUỲNH PHƯƠNG ii Executive Summary Research the furniture market, especially bamboo furniture. This is one of the consumption trends in the coming time, especially in the Asia-Pacific region, especially Korea, a potential market. That's why my team decided to do in-depth Korean market research to come up with a marketing plan. After having data for research, the next step is to learn about issues such as culture, economy, society, etc.
of the land of kimchi. Then identify the target customers and devise the most reasonable marketing mix strategies possible to ensure the achievement of the set goals. iii Table of Contents CHAPTER 1: COMPANY OVERVIEW. SWOT OF COMPANY.
4 CHAPTER 2: COUNTRY SELECTIVE. REASONS WHY CHOOSE SOUTH KOREA. RESEARCH ON WOODEN FURNITURE MARKET IN KOREA. OVERVIEW OF THE DEVELOPMENT HISTORY OF SOUTH KOREA.
NATIONAL BUSINESS ENVIRONMENT. GEOGRAPHY OF SOUTH KOREA. MARKET POTENTIAL AND SCALE. MARKET SHARE OF FURNITURE BUSINESSES IN SOUTH KOREA.
22 CHAPTER 3: ENTRY MODE SELECTION. 23 CHAPTER 4: TARGET MARKET. DIFFERENCE IN CULTURE. LEGAL AND TAX ISSUES.
28 CHAPTER 5: MARKETING OBJECTIVES .1 MARKET SHARE OBJECTIVES. 29 CHAPTER 6: MARKETING STRAGETY. 41 CHAPTER 7: FINAL RECOMMENDATIONS, EVALUATION, MEASUREMENT AND CONTROL. 43 LIST OF REFERENCES.
48 v LIST OF TABLE AND FIGURE Picture 1.1: Logo of Asian Craft .1: Furniture Revenuew in Korea from 2017 to 2025 .2: Market size forecast .5: Korean house design .7: Korean wall-street .8: OECD Ministerial Conference .9: The FDI incentives offered by the South Korean Government .10: Korea map in the world .11: Korean phone usage rate based on population .12: Most-used social media platforms in Korea .13: Furniture Market share in Korea .1: Furniture distributor in korea .1: Value of exports and imports by continent, country block and some major markets in 5 months of 2022 and compared to 5 months of 2021. 5 iv CHAPTER 1: COMPANY OVERVIEW 1. Company introduction Full name: Asian Craft Co.,LTD Established: 11/04/2013 in Hanoi Asian Craft is an enterprise specializing in manufacturing, trading, and exporting high-class handicrafts from Cao Lanh Stone, Buffalo Horn, Fine Art Snails, and Sculpture Products. Exporting products to China and ASEAN countries.1: Logo of Asian Craft To suit the Korean market, Asian Craft chose to establish a new brand, Sbamboo.
The letter S carries the characteristics of the strip of Vietnam, bamboo is a bamboo tree that both represents the product's material and is attached to the spirit and temperament of the Vietnamese people. Vision & Mission Guided by its pioneering aspirations as well as a sustainable Manufacture - Exporter - Development strategy, Asian Craft has been striving to become Vietnam’s and the regions’s leading Handicraft exporter business group, which aims to become a Group of international stature and standards. Asian Craft's aspires to establish its Vietnamese brand, demonstrating Vietnamese intellectual prominence and pride in the international arena. With the Mission: - For the market: To provide premium products and services of international standards that are original, highly creative and embedded with local identities.
In addition to its outstanding quality, each product - service contains a cultural message with a view to best cater for customers’ legitimate needs. - For employees: To develop a professional, dynamic, creative and humane working environment, enabling high income and equal development opportunities for all employees. - For society: To harmonize the company’s and society’s benefits; to make active contributions to community-oriented activities, and to demonstrate citizens’ sense of responsibilities and national pride. Asian Craft's continously improves all services to respond to the credibility and expectation of customer as well as to build prestige in the market.
(ASIAN CRAFT CO. Company Culture Their handicraft products are not only ordinary daily life items but also artistic works representing the culture of the nation. Aslan Craft has reached the pinnacle of quality, variety of types, sophistication in each pattern, and sophistication in each product to satisfy every choice of customers. They work on the credibility and trust of our customers.
Company Resource Financial sources: Property (year) - Cash and cash equivalents: 16 billion VND - Short-term receivables: VND 113 billion - Inventory: 79 billion VND - Other short-term assets: VND 20 billion - Fixed assets: 38 billion VND - Investment real estate: 51 billion VND - Long-term financial investment: 35 billion VND Human resources: a team of experienced and skillful artisans is selected from traditional craft villages in Vietnam, combined with professional design experts, taking people as the central factor in their activities construction and development. Research and development With the gideline: Customer's smile is our happiness. Our company is constantly improving techniques, production processes, and service to aim at the best product quality for customers in order to maximize work efficiency and bring great value to customers. Their handicraft products are not only ordinary daily life items but also works of art representing the culture of the nation.
Asian Craft has reached the pinnacle of quality: The variety of types, the sophistication in each pattern, the subtlety in each product to satisfy every choice of customers. We work on the credibility and trust of our customers. Production process of products from bamboo knitting • Step 1: Choose bamboo and rattan materials Choose the best bamboo of Quang Phu - Quang Dien - Thua Thien Hue rattan and bamboo craft village, which is not young, not old, grows straight and has high hardness. To get the desired work, the artist must first understand the material he will make.
The best type of bamboo must be the one that is not young, not old, straight growing, with high hardness. As for rattan, it is necessary to choose a type of sufficient size, about 5m long, straight, round, and free from pests. Trees that are too old or too young are not good. 2 • Step 2: Prepare ingredients For bamboo materials: Bamboo is cut down and then dried again.
It is then treated with anti-termite treatment. There are two common ways to fight termites: it is put in the XM5 chemical bath - an easy-to-use and very safe forest product preservative for users, or it is soaked in water according to the traditional manual method. For rattan materials: Rattan has a lot of sharp thorns around, so the preliminary processing of rattan needs to be very careful. The outer thorny shell will be peeled off, revealing the white rattan flesh inside.
After that, rattan is also dried slightly, to move to the initial processing stage. • Step 3: Material handling For bamboo materials: Bamboo is shaved, polished with sandpaper, then put in the oven, using straw or bamboo leaves to smoke, which has the effect of creating color, helping to dry the material, and helping to prevent warping. After smelting, the bamboo will have a western brown or dark brown color. When the bamboo is cooled, it will be bent straight.
For rattan materials: Rattan is dried quite carefully, both to dry the material and to get the color. When drying, if there is too much smoke or too little smoke, the clouds will turn red. As for the drying process, if it rains, the rattan fiber loses its beauty, if it is exposed to the sun, the rattan fiber loses its freshness. If the cloud is not dry enough, the skin will be dull, if the cloud is too dry, it will lose its soft shine.
Therefore, the process of drying rattan requires a lot of effort from craftsmen. • Step 4: Split yarn To be able to weave rattan and bamboo, it needs to be split and spun. The size and length of the yarn will depend on the specific type of product. Usually, the large yarn will be used to knit the product, and the small yarn will be used to make more elaborate products.
The rattan splitting needs to be very attentive because rattan fibers often have uneven nodes, so when splitting, it must be very skillful and skillful so that the rattan fibers are even. The quality and aesthetics of rattan-bamboo fibers are one of the leading factors determining the value of traditional bamboo and rattan products. • Step 5: Construction and manufacturing of products After the knitting is complete, the product will be dipped in glue, painted in color, glossed over the surface, and trimmed to perfection. The materials, after being processed, will be knitted and shaped by the talented and skillful hands of artisans in the village to become beautiful and attractive products.
SWOT of Company Strength - Financial strength - Having a long-standing and reputable brand in the industry - Experienced in exporting because the company's existing products have been exported to China and ASEAN markets. - Diversified product portfolio Weakness - The product design stage is still limited because before the design is traditional, making items that have been used in the past based on experience, but have not yet approached or absorbed the requirements of the market. - The market share of bamboo products is not high - The cost has not been optimized, the price is still high - Marketing channel is not working effectively Opportunity - The business field is being expanded, there are many opportunities for development and success in the future, especially the Korean market - Strong growth in furniture market - The government always encourages businesses to develop, especially products with national culture - There are few competitors for this bamboo and rattan product Challenge - Meet the rules of origin and origin procedures as well as labor and environmental commitments are quite complicated - Exchange rate risk due to selling products abroad - Shipping costs tend to increase - Strong competition in Korean handicraft industry 4 CHAPTER 2: COUNTRY SELECTIVE 2. Reasons why choose South Korea Table 2.1: Value of exports and imports by continent, country block and some major markets in 5 months of 2022 and compared to 5 months of 2021.
Export Import Market Value Value Compare to Proportion Compare to Proportion (Billion USD) 2021 (%) (%) (Billion USD) 2021 (%) (%) Asia 71,37 13,6 46,6 127,27 17,6 83,3 ASEAN 14,42 24,9 9,4 20,29 14,3 13,3 China 21,98 8,3 14,3 49,61 13,1 32,5 Korea 10,22 16,8 6,7 27,78 32,2 18,2 Jappan 9,35 12,7 6,1 9,86 9,6 6,4 America 54,03 21,8 35,2 10,76 3,5 7,0 USA 45,89 22,4 29,9 6,11 -5,5 4,0 Erope 23,52 14,0 15,3 8,88 0,0 5,8 EU(27) 19,54 21,1 12,7 6,66 -2,3 4,4 Oceania 2,80 30,0 1,8 4,24 29,9 2,8 Africa 1,58 9,9 1,0 1,72 -7,0 1,1 Total 153,29 16,7 100,0 152,86 15,3 100,0 (Source: General Department of Customs) According to the General Department of Customs, it can be seen that most countries in Asia that have large import-export activities with Vietnam such as China, ASEAN, Korea, etc., import more than they export. Equilibrium occurs only in Japan. In contrast to Western regions like the US or EU, we export more than we import. Therefore, to be able to balance between export and import deficit (not being assessed In short, it can be said that Korea is the perfect country for the new company to enter.