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Vinakyoei Steel Marketing Plan Emba 19UEH

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  Group 2 – EMBA 19 Vinakyoei – Marketing plan Instructor: Kieu Anh Tai Group 2:  Nguyen Van Long Son Cao Quoc Viet Phan Thanh Long Le Ngoc Lan Truong Thi Tuyet Dung  Group 2 – EMBA 19 Executive Summary.......................................................................................................1   1.   Situation Analysis..................................................................................................2   1.1.   The Market.......................................................................................................2   1.2.   Macroenvironment...........................................................................................2   1.3.   Competition......................................................................................................3   1.3.1.   Direct Competition....................................................................................3   1.3.2.   Indirect Competition.................................................................................3   1.4.   Product Offering..............................................................................................4   1.5.   Distribution:.....................................................................................................4   1.6.   Suppliers:.........................................................................................................4   1.7.   SWOT Summary..............................................................................................4   2.   Marketing Strategy.................................................................................................5   2.1.   Financial Objectives.........................................................................................5   2.2.   Marketing Objectives.......................................................................................5   2.3.   Positioning.......................................................................................................5   3.   Marketing Mix.......................................................................................................6   3.1.   Product Marketing: (for Deformed bars).........................................................6   3.2.   Pricing..............................................................................................................7   3.3.   Promotion.........................................................................................................7   3.3.1.   Advertising................................................................................................8   3.3.2.   Public Relations........................................................................................8   3.3.3.   Direct Marketing:......................................................................................8   3.4.   Place (Distribution)..........................................................................................8   4.   Controls..................................................................................................................9   4.1.   Implementation schedule.................................................................................9   4.2.   Market Research............................................................................................10    Vinakyoei – marketing plan Group 2 – EMBA 19 1 Executive Summary Vina Kyoei Steel Ltd was established in January 1994 at Ba Ria Vung Tau Province as a joint venture company between Kyoei Steel Ltd., Mitsui & Co., Ltd. and Itochu Corporation in Japan, and Vietnam Steel Corporation in Vietnam. VKS started commercial operation from January 1996 and is now producing deformed bars, plain bars and wire- rod with annual capacity of 300,000 tons. With one of the most up-to-date rolling machines, which are imported from Japan, and also well trained human resources. VKS is now  producing high quality products that can meet any international requirements. As  production is controlled by ISO-9002 and quality of the products is equivalent to JIS (Japanese Industrial Standards), VKS has become one of the most reputable companies in the steel industry in Vietnam. Vina Kyoei is the number one brand name of steel products for the household segment in Ho Chi Minh City market, taking 70% sales output of this segment, the third leading  player in the southern market of Vietnam (Da Nang – Ca Mau) which accounts for 10% market share. The 88% production is sold to the household and common consumers (majority of this volume are deformed bare of SD295A and wire-rod). While the rest 12% is production of high grade steel bars (grade SD390, Gr60, and Gr460B) used for the industrial market such as large projects of high-rise buildings, bridges and ports… Vinakyoei prepares another new production line of 300,000 tons a year and it is estmated to begin production by early April 2011. The primary marketing objective of 2011 is to achieve the sales-output of 450,000 tons, making up of 13% the southern market of Vietnam. The objective of coming years, the company will reach a sales target of the full  production capacity – 600,000 tons per year, taking 15% share of the southern market. In order to fulfill the above marketing targets, the company should focus on and increase its sales volume in the industrial market where promises a great potential demand. In reality, Vietnam’s infastructure networks and real-estate business is still the dawn of development.  Vinakyoei – marketing plan Group 2 – EMBA 19 2 1.   Situation Analysis 1.1.   The Market The steel industry has a wide range of products which are mainly classified according to different product groups as follows: long products, flat products, steel  pipes/tubes, section steels( profile steels)…For finance tight reason, so far Vietnamese steel producers have only invested in technologies and machinery for making long  products. Except for pipes/tubes, other kinds of steel products are mostly imported from overseas. From 1976 to 2000, Vietnam steel industry was regulated by the government through Viet Nam Steel Corporation (VSC). The total country rolling capacity was approximately 1.5 million tons for all kinds. After year 2000, the government has allowed investors of private and FDI sectors to participate in the steel industry. Up to now, the total rolling capacity has reached 6 million tons/year nationwide. Total production of Southern producers (5 main  producers: Pomina, VNSTEEL, Vinakyoei, Sunsteel, Tay Do Steel) is around 3 million tons/year, making up 50% of the whole country output. As the restriction of this subject, we just study and research Vinakyoei Steel  products within the market area from Da Nang to Ca Mau. In year 2010, Vinakyoei was the leading brand name in the household segment  in Ho Chi Minh City, accounting for 70% sales output market of this market segment (350,000 tons/year).  Nevertheless, the whole market (Da Nang – Ca Mau), Vinakyoei’s sales-output took only 10 % share of the market demand, ranking the third position; while Pomina was the strongest proudcer with 2010 sales result of 800,000 tons, making up of 40% the market share. The second position was VNSTEEL, accounting for 30% market share and the rest belonged to the imported steels and the small and medium size  producers’production. Regarding billet (the main raw material for making steel products), Pomina and VNSTEEL only import 30% demand of billets to produce their products; therefore, they can flexibly meet a big order of various product dimensions (special grades and sizes as well) in a short time. Vinakyoei have to buy the billets from overseas, it takes a lot of time for us to fulfill a large order, especially a purchased order of high-grade steel products. Furthermore, because of the limited production capacity, at the same time Vinakyoei hardly competes with Pomnia and VNSTEEL in satisfying purchase orders from huge projects in remote areas. Beside those direct competitors, Vinakyoei is also competed by other producers from the North of Vietnam, and foreign players from Korea, China, Malaysia and Thailand. With the distribution system of 18 wholesalers (distributors), Vinakyoei will face the consumption matter when its production capacity increases. 1.2.   Macroenvironment Based the report of the 75 members of the association sales of steel used in plant construction in the first 8 years has increased 23% over the same period in 2008. Vietnam Steel Association also estimates sales of construction steel next year will
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