ĐẠI HỌC QUỐC GIA HÀ NỘI TRUONG ĐẠI HỌC KINH TE DO VIET DUONG ORGANIZING MARKETING ACTIVITIES FOR VIETNAMESE-OWNED AUTOMOBILE ASSEMBLERS IN THE PRESENT DEVELOPMENT PROCESS OF VIETNAMESE ECONOMY LUAN VAN THAC Si QUAN TRI KINH DOANH Hà Nội - 2007 ĐẠI HỌC QUỐC GIA HÀ NỘI TRUONG ĐẠI HỌC KINH TE DO VIET DUONG ORGANIZING MARKETING ACTIVITIES FOR VIETNAMESE-OWNED AUTOMOBILE ASSEMBLERS IN THE PRESENT DEVELOPMENT PROCESS OF VIETNAMESE ECONOMY Chuyén nganh: Quan tri kinh doanh Mã số: 60 34 05 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2007 TABLE OF CONTENTS FN O16 co rE i "20-1.c- SH nh nh keVv Abbreviation & Acronyms .- cành vi Table of Content. ccc cece cc cccsssccesssscesesssececssseceesssecessseseesssssessesessesseens VIL IntrOductiONn.ssecessssssssesesssssssseseseescesesesesessssesesesesecesesesesesenseseseseeeeeeeeeseees 1 Chapter 1: Literature T€VÏ€'W. Marketing definition and its basic coriCepDÉS. Definition of Automobile marketing.
Fundamental CONC pts. The development process of automobile marketing. Distinguishing marketing orientation and non-marketing OrlenfatiOn COMPANY. án nh nh HH HH HH ng re 10 1.
Environmental marketing of VAAs in the market economic COTIƠÌfÏOTNG. HT HT HH TH TH Họ 000000101 12 1. Macro-Environment faCOTS .- -- 5 + k3 v2 vn ng re 12 1. Integrated factors for successful marketing of VÀ As.
Creating value, satisfaction, conserving customer in VAAs. Ascertaining the marketing activities contents for VAAs. Models and marketing management contents for VAAs in Currently Mmarket. The necessary and principles to evaluate the rational organizing marketing activities in VAAS.
ch ngờ 34 CONCIUSION: 1727. 35 Vil Chapter 2 : Current status of organizing marketing activities of automobile assemblers in Viefrna1m. The development process of Vietnamese automobile industry. 36 PIN Nho seo.
Vietnam Automobile Manufacturers Association (VAMA). Market status T@VÏ©W.- GÌ HH TH TH THỌ TH TH ngờ40 2. Automobile market analySis. Current status of organizing marketing activities of local automobile assemblers in Vietnam.
Marketing in Vietnam and Marketing in automobile industry. Appraising the marketing activities of FA As. Appraising the marketing activities of VÀ As.sssssssssseesesesesssssssessssseeesesesesessssssesesesssesesesesesesneseseseseseseseeeseesenenes 71 Chapter 3: Solutions for improving marketing activities in VAAs. The changes in Macro-Environment and opportunities, challenges for local Vietnam automobile assembÌ€rs.
The Vietnamese automotive market forecasting by 2010. Development orientation of Government for automobile industry in period (2005-2010) and overview 2020 .- «5s «se se sesesesseses 78 3. Recommendations for improving the organizing marketing activities for Vietnamese-owned automobile assemblers. Improving the marketing research, marketing analysis and building marketing information system for VÀ As.
Improving the organizing target marketing for VAAs. Improving the organizing marketing mix for VÀ As. Improving the organizing marketing resources of VA As. The requests for government Policies.
Improving legally environmeni. Improving Infrastructure and Motorization. Improving state management for auto industry. The requests for VÀ A 6.-- << «HH HH ng nghe 101 3.
Sales and distriDutiOm. After-sal@S S@TVIC€.” 104 References Appendix ix Abbreviation & Acronyms AFTA : ASEAN Free Trade Area ASEAN : Association of Southeast Asian nations CBU : Complete Built-Up CEPT : Common Effective Preferential Tariff CKD : Complete Knock Down FAAs : Foreign — Owned Automobile Assemblers FPT : FPT Corporation GDP : Gross Domestic Product IKD : Incomplete Knock Down LAVVs : Local Vietnamese Automobile Assemblers MIS : Marketing Information System PM : Primer Minister PR : Public Relationship R&D : Research and Development SCT : Special Consumption Tax SOEs : State-Owned Enterprises TVC : Television Commerce USA : United States of America VAAs : Vietnamese-Owned Automobile Assemblers VAMA : Vietnam Automobile manufacturers’ Association VAT : Value Added Tax VNPT : Vietnam Posts and Telecommunications Corporation WTO : World Trade Organization vi List of Tables Chapter 1 Table: 1.1 Types of marketing COHĂTOÏ.-c c1 vn vs vs 33 Chapter 2 Table: 2. VAMA’S members ÏiSÍ. Evaluation from customer about marketing activities of FAAs.
c9 9 9 Ti Hi ti ti ng 0009000 ees 52 2. Number of authorized dealers for each auto 1nakefS. Evaluating for marketing management Of FAAs. Evaluation from customer about marketing activites of VAAs.
List if Vechicle models and agency number Of VÀ As. Evaluating for marketing management Of FA As. Remarkable achievements in economic growth and macro-economic (2001-2005). Automobile output plan in 2005, 2010 and 2020.
Balancing ability, demand and supplementing automobile output up ;32/1/ PP. Segment DỤ †IOÌ€ÏS.- -- con n9 nh me 88 List of Figures Chapter 1 Figure: 1. Steps of building plan according to non-marketing orientation. The building process of plan according to marketing orientation.
Customer’s satisfaction, customer loyalty, value added for customer. Porter’s Generic Value CHAiN. The Value SSÍGTH. SWOT analysis fits into a strategic situation a1aÌsỉs.
Steps in segmentation process, market pOSIEÏOTÏHS. Marketing mix and target THATĂC. c5 cc Sen se sese+27 Chapter 2 Figure: 2. Sales of automobile Volume DỤ 1J€AATS.
Sales record by months up to October, 20Ö. Market share in 2005 And 2006. Perceived quality of automotive Drands. Customer’s opinion of Service SALISfACTION.
Price COMpetitive AUAIÍAQ©.e «5 cv ven53 Chapter 3 Figure: 3. Forecasting the automobile market demand in period 2005-2010. SWOT analysis T1OđÌGÏ,.-- con nh ty 85 3. MIS model for VÀ As.
Positioning by Auto Brands .-- «< cc cà neỲ *. Advertising campaign process DHÏÏÏNg.-- -- - =- =< c« sec 94 XI INTRODUCTION 1. Necessary of the thesis The development orientation of Government is building the development automobile industry so that by 2020, it becomes a key industry of the country, capable of meeting the highest demand of local market and joining regional and international market. From the customers expectation that Vietnam will has the developed automobile market and both model quality, supporting services and information of them.
In addition, with more than 80 million of population, but scale of automobile market vary small, total sales of VAMA highest in 2003 is 42,556 vehicles, 2004 (40,141) and ten months of 2005 only achieved 28,381 vehicles, thus it is not symmetrical. The knowledge of customers about the domestic car is very poor, now they are favor import car than domestic one. So it is a reason for less development of Vietnamese automotive industry. From the inefficiently operation of FAAs and we have some new Vietnamese owned automobile firm join to this market currently, also they have poor marketing activities both in structure and contents so they did not gained the high attention of customer even in awareness.
They will face the pressure from the integrated of economy, especially in given the deadline for AFTA commitment and pending WTO entry, Vietnam has not much time left to promote the localization program while few protectionist policies can be implemented. Thus the scope of thesis I would like to study and propose some new model of organizing marketing activities for VAAs in currently and for next period. To build Vietnamese brand name and gain more and more in sale and market share and become the big automobile corporation in Vietnam. Objective of the research To systematize the basis marketing theory in automobile industry, research and establish the basis contents of marketing activities for VAAs now, figure out the role of marketing activities in auto development process in current Vietnamese automotive market.
To quantitative the result of marketing activities of FAAs and VAAs achievements, and identify the successes, weaknesses and find the main reasons to improving. And then, suggest applied solutions to improving the organizing strategic marketing for Vietnamese automotive industry up to 2010 and overview 2020, together submit some requests to government to create favor environment for these model developing. Key research area - Object of study: The organizing marketing activities in automobile industry in generally, and especially in member of VAMA. The main contents are including organizing the marketing activities and organizing marketing resources of above object.
- Research area: Automobile assemblers in Hanoi area limited. Methodology The methodology gives us the guidelines for how we should gather information for our research and work with it. - Research problem; With the research areas of “Current Vietnamese automotive marketing activities” thus and then figure out the improving marketing activities solution and submit some requests to government to support this sector. - Research objective: Out research purpose is descriptive and analysis the Vietnamese automotive market and its current marketing activities of FAAs & VAAs in the future to build develop automobile industry and improving it’s more competitive in the integrated of Vietnamese economy.
- Research method: The research approach is qualitative study that helps us deeper understanding of how important of marketing activities impacts to automobile industry. We also use quantitative method to choose the sample size of 100 customers to understand their need is what will they be got from marketing activities of FAAs & VAAs also evaluate how satisfy of them for current Vietnamese automotive industry for both products and supporting services. - Data collection; The choice of a data collection method is a critical point research process. Contributions of the thesis With the purpose to analyze the current Vietnamese automotive marketing activities in the market the thesis has contributed some new contributions as follow: - Analyzing the status of marketing activities in FAAs, concurrently evaluating the successes and weaknesses, identify the reasons that FAAs must focus on marketing activities for next period.
- A comprehensive realize of role, position, function of marketing in automobile industry, clarify the natural of objective environment factors impact to marketing activities, thence ascertain the basis request for a marketing program to premises for applying in VAAs. - Establishing the detail content and implemented model of marketing activities in order to the development trend of automobile industry in the near future. Also, systematize and develop the theory of marketing in VAAs in Vietnam now. Thesis structure Beside introduction and conclusion, the thesis consists 3 chapters: Chapter1: Literature review is given to providing theories relevant for automobile marketing activities area.
Chapter 2: Current status of organizing marketing activities in FAAs & VAAs Chapter 3: Solutions for improving marketing activities in VAAs ⁄ Introduction Chapter 1 Literature Review Chapter 2 Current automotive industry CHAPTER 1 LITERATURE REVIEW 1. Marketing definition and its basic concepts 1. Definition of Automobile marketing Macro: Automobile marketing is a structure of organizational system supply chain of Auto products and its support service to satisfy expect and demand of customers in the definitive of society-economic system. Micro: Automobile marketing is the marketing activities system of automobile manufacturers, auto-distributors, and others marketing organization.
It is marketing activities system of profit organization and non-profit organization, automobile marketing is understood specially that it is the control function of auto-manufacturers, the planning, managing marketing project, price, distribution system, products, services and PR, advertising.to create the exchange to satisfy for personality and organizational objectives. Concept and differentiation between demand and expectation The difference between “demand” and “expectation” is always “ getting more attention of marketing in the automobile industry. In the facts, what are the customers want maybe it is not their need. Demand is defined that “the deficient impression for something but we are can feeling” and demand are wants for specific products backed by an ability to pay and it can be satisfied by marketing activities system of automobile manufacturers.
Expectation is defined that “wish for or aspiration for something”. Market demand Demands, expectation we have just defined above were make clearly about products, services to satisfy those demands and expectation. So market demand is the attraction, attention, buying, using or consumption for products or services that will satisfy the expectation and market demands. Determine customer and customer satisfaction Whether the buyer is satisfied after purchase depends on the offer’s performances in relation to the buyer’s expectations.
In general, satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations. Exchange and transactions Exchange: This is the core concept of marketing, “is the process of obtaining a desired product from someone by offering something in return”. The concept of exchange is including some conditions potential to exist, and basis for marketing activities later.