Luận văn Market research on Plywood & notepaper

articular trait of State-own antagonists. + Providing product with lower price than Cau Duong factory (From 5% to 10%). + Product’s quality is not as good as products of Cau Duong factory. + In field of paper production, they are direct branch companies of Vietnam Paper Cooperation. Thus, they have more chances to well-equip and to enlarge their efficiency for producing this product. * Private economic sectors: they have small size and faculty of production; specialize in processing Note-paper, normal plywood, which does not need precision and high technique requirement. However, they are huge-numbered factor in the economy with the market-share of 22% for note-paper and of 4% for water resistance plywood. Moreover, they have ability to meet narrowed and sub - market’s demand, together with satisfy the requirement of customers with scantily fund and do not require much about product’s quality. Private providers can use up their strong points in competition as follow: + Satisfying all kinds of customers and their requirement, due to providing low-price product (25% to 30% lower than Cau Duong’s price). +Quickly getting information, can probably a consequence of ample-net. +Tax-avoidance ability contributes to low cost price. +Buying material at low price, having enough input material for producing. They make purchase from various sources, mainly from illegal and adrift sources. Especially, in furnishing construction plywood, private sector can only supply goods to small and private construction projects…as a result of producing poor qualification products, tax avoidance and a situation of consuming goods without bills. All these reasons caused difficulties in consuming goods because, in big construction projects, constructors, who bought material without bill are not easy to have their projects checked and taken over. In general, product’s price of Cau Duong factory is usually from 20% to 25% higher than that in other domestic manufacturers, and its consuming activity now greatly depend on reputation of product’s quality. 2.2. Foreigner rivals. Major foreigner providers come from some Asia neighboring countries as Indonesia, Malaysia... (in producing plywood) and China (in providing note-paper). These products have their own competitive capability in quality and reasonable price (Only 5%higher than Cau Duong factory’s price of sales), owing to modern machinery, equipment, standard of management. In some cases, sensible price of imported product was given rely on the law breaking by importing illegal product or birbing officials for tax preferential. That made the local commodities less competition in price and quality. In addition, Vietnamese consumers often prefer foreign product to domestic one. Branch names are always considered in purchasing. Price and quality remain the most important competitive factors. Like the trend today, inland producers in general and authorities of Cau Duong, in particular, should make plan for market approaching, getting knowledge about consumers’ demand, in order to minimize the cost, to reform quality of product, to improve machinery. These works aim to use-up the resources, strengthen competitive ability of the firm against goods made by foreigners. Imported product become more attractive to local consumers than other interior one for some reasons: + Modern and well-equip facilities, equipment, etc. + Advanced technology, easy to form belief from consumers in quality. + Strong potential of finance have ability to adapt to the market changes + Deeply research on the market tendency, quickly catch up with consuming habit, satisfy customers in a fastest way In big contracts attended by foreign partners, domestic product is rarely used by reason of their idea of domestic product. Comparing to imported product, local products are a bit inferiors in quality, solidity and reputation. In addition, conception of Vietnamese people about foreign value that they make goods above also takes part in difficulties of domestic manufacturers. 2.3. Position of Cau Duong factory in the market. In order to assess activities of a company, people always put it in a concrete circumstance by defining its position in the market. Position of a firm always gives the most truthfully expression to its effective activity or success. With the superiority of large square of forest, wood-processing industry in Vietnam has fast expanded and been considered as a complex trade. Nevertheless, in recent years, this branch has been affected by some elements as: The government policy of resource prevention, result from large side of deforestation, short of material for producing because of forest resources exhaustion, etc. Besides, high competition has put pressure on activities of this branch. Holding market share of 26% (plywood) and 5% (Note-paper) there has been a great ability for the factory to make full use of present market. But running business in such a high competitive environment, the factory must find the way to develop internal force it self. They indicated the fundamental question to Cau Duong factory now as a deficient in absolute exploitation of its existing efficiency. In spite of high capability in producing plywood and note- paper, its annual output stand at 30% of designed capacity, about 800 m3 of plywood and 1500 tons of notepaper. This real state has made a drawback that is high lever of producing cost, which is resulted from high depreciation expense. In fact, due to its lower product quality, the selling-price of Cau Duong factory’s goods normally 15% cheaper compare to compare to imported one. However, its price is above other domestic products, especially from the private (about 20% to 25% dearer) Therefore, the factory is presently in competition with the two forces, price competition with local products and quality rivalry to foreign made goods. The main reasons for lacking-of competitive ability in Cau Duong factory: Backward machinery, cumbrous equipment (70% of facilities has been using since 1960s). Hence, its product is not better than imported goods, and ineffective action, waste in using time and material, defect of technique, etc. Standard of labor force’s knowledge in new technology assessment. Financial scantily causes restriction in technology renewable ability, production modernization, and quality enhancement. The more developmental the market is, the higher level it requires to enterprises. Thus, the main issue of Cau Duong factory at present time is trying its effort, aim to rationalize manufacturing process for meeting social and market demand, minimum the expense and gain the maximum profit. However, only by gathering exact information about the actual and potential market, this target can be implemented in order to reinforce its existing position and enlarge the market in the future. For this, it is indispensable to form a market research staff that helps Cau Duong factory to perfectly finish its target. In discussing about the competitive environment of Cau Duong factory, the researcher would like to show that its business surrounding is rather complex with plenty of competitors. Each kind has its own features but determinants are created by the firms it self. At present, Cau Duong’s less effective activity would seem to stem for insufficiency of a section which takes the lead in target selection and defining line of action. For example, The customer’s requirement satisfaction is implemented base on information about the market trend, purchasing habit, the firm can be successful if they answer all the determination questions for their existence. Marketing research presence in this firm is indispensable, its existence make the factory easier to have the sense of initiative in dealing with social trend, competitor’s strategies, market characteristic. Economic market application in Vietnam since 1989 has changed many things. Vietnamese enterprises no longer depend on the State’s protectorate. They need the way to affirm themselves. In high lever competition market, like other firms, Cau Duong factory’s actual difficulties will be surmounted base on real-strengthen promotion, shortcoming restriction, competitors researching, decision making... by market research activity. 3. Potential market. 3.1. Notepaper production. Presently, Cau Duong factory is processing note-paper for its parent company with the major market in the north provinces as Ha noi, Thai nguyen, etc. and some in the South: Da nang, Quy nhon... Annual total supply from 5% to 7% of market demand (about 75 million products), in which, approximately 57 million products appear in every new school year. According to these collected figures, total supply of Bai Bang Paper Company takes 30%. Product quantity of Cau Duong factory is restricted by machinery capacity, affected on paper processing; demand of its present market has not been satisfied yet. In some years coming, they intent to develop actual ability as well as enlarging its machinery capacity with the anticipatory production ability of 1700 products (increase 16,4% to 1999), that aim to make full use of present market. Besides, They are also planning to deeply infiltrate in Middle and South area market, lean on setting up small selling agencies net at the first step, which creates a basis for another construction plan. In ten years coming, a paper factory of modern technology will be built with the designed capacity of annual 30million product. In the field of high-class tissue paper production, including tissue paper, table-cover paper, toilet-paper...local manufacturers still open to foreign suppliers as Thailand, Indonesia, Japan, etc. due to their technique and production capital insufficiency. In this circumstance, Cau Duong factory will assemble a production process for these above products, which is used in hotel and airline. It is plan to begin to work in the third quarter of the year 2000 and put in operation in 2002. They estimated the initial investment about VND 100 billion with the capacity of 100,000 tons of product per years. 3.2. Market of plywood for construction. This product is very closely related to urbanization rate in Vietnam, the market for this product is very fragmented with many kinds of customer. However, its major consumers are construction companies and constructors such as Joint - venture LELEX- Ho Chi Minh City, Ha Noi Construction Cooperation, Corporation LICOGI 18... with the purchasing volume of 65% the total sales, the private and infrequent customers hold the rest 25%. In North area market, although Cau Duong factory only meet the social demand of 22% (result from abundant of competitors), chance to make full use of this present market is feasible in order to reinforce actual position and better satisfy its consumer’s need. As plan of this year, this factory is going to produce 1200 m3 of plywood in the next few years. Annual output rises of 20%-25%. In the market of Ho Chi Minh City, the consumer now tend to use local made goods, owing to the same quality and less expensive than imported (about 15%). Therefore, domestic wood is strengthening its price competitive superiority against imported one. Up to now, from 25% to 30% of product has been sold in Ho Chi Minh City, its become a potential large market to the factory. With annual demand stand at 60% of the whole country, Ho Chi Minh City is the most crowded and the fastest Leading City of economic growth in Vietnam. Because foreign investment projects mostly implemented and the fast speed of urbanization has changed Ho Chi Minh City the most modern city in Vietnam. In conclusion, the market enlargement strategies of Cau Duong factory should be carried-out by fully exploitation of the actual market and searching for the new market policy. 4. Political and legal factors. Political and legal institutions are considered as a foundation and frame, in which, people must obey. Its existence is not only in social category, but also is in economic activities. Political and legal environment consists of the government policies, political structure, and administration management system that effect on all fields of a country. Regulation and law content in legal environment can create a favorable or obstruction condition to marketing activities. (Truong, Marketing in business management, 1998) In Vietnam today, the real state of political and legal factors is that law corruption, rampant smuggling, confusing legal system... should have been recognized as the main factor, which discouraged foreigner investors and weaken the economy. The disadvantage of Vietnam legal system are shown in cumbersome provision, unstable, inexactitude...that have not attracted overseas businessmen and hold back domestic manufacturers. Vietnam’s political stability coupled with its leaders’ commitment to economic growth created a reason for economic factors to maintain a fairy optimistic of further economic growth prospect. The major instrument that the government uses to act upon economic activities is tax-policy. Vietnamese government has been applying a Value-added-tax policy to all the firms since 1999. This policy drives at getting more income to State’s budget with 10% worth of selling-price. Being affected by Value-added-tax, all kinds of product in Cau Duong factory has increased 4% in selling-price as a result of maintaining the old price before applying this policy. The main reason to maintain the price is that, this actual price is being in the minimum but it is still from 20% to 25% higher than other firms are. If Cau Duong calculated value-added-tax into its selling-price, it would far more expensive and affect to consume ability. Like the trend to day, Vietnam is on the way to attend the international economy, the government must initiated many concrete solutions to continued improve the investing environment. That consists of the policy system issue and perfection, qualitative delineation improvement, investing stimulation, State management effectiveness strengthen...(VIR, March 2000) However, according to Financial Ministry, Vietnam has just crossed out the tariff impose on some imported products in April 2000, following the international integration commitment. It means, protective tariff mechanism of State to domestic product has been come down and many foreign manufacturers will build up competitive intensity. In this circumstance, local enterprises and Cau Duong factory in particular must be more and more dynamic, active and try their best to be steady, to develop and enhance its competition power. 5. Demographic factors Vietnamese people well known for its population crowded, approximate of 80 million people with the annual average growth of 9%. The population blooming has led to a strong demand in many fields: Accommodations, jobs, study, and health-care, etc. For the pass few years, together with impressed increase in GDP growth, many foreign investment projects have been flowing to Vietnam for infrastructure projects, included Houses, schools, hospitals... Population increasing means the demand for studying and accommodations speed up. In addition, the general trend of Vietnamese of preferring to live in style of nuclear family may be due to the first and foremost problems, dwelling for all the people. Like the world tendency of very fast development today, the urbanization velocity in Vietnam turns to swifter and swifter; the urban enlargement to its suburb areas and neighbor city are becoming the most common way. We can see it easily in Hanoi several years ago (1998), its square has been enlarged owing to the four districts establishment: Chuong Duong, Cau Giay, Thanh Xuan, Tay Ho; Moreover, Hanoi authorities are planning to build satellite cities in connecting Hanoi to some other big cities like Hai Phong, Thanh Hoa… Besides, the economic expansion always connects intimately to human awareness. Social development needs well-trained persons, knowledge requirement made people need of study today higher and higher. The fact is that in the one hand, demographic explosion may create many problems for society, on the other hand, it also brings lots of chance to Cau Duong Factory’s development. It is probably to say that the factory’s expansion closely related to the population and lever of instruction. 6. SWOT analysis: Based on gathered data and information, the researcher would like to give some explanations in analyzing the situation of Cau Duong factory. Strengths: + Reputation of parent company (Bai Bang Paper Company) as the leading in producing paper. + Prestige in manufacturing wood-procession to ensure the quality and quantity of product especially for plywood. This is easy to attract consumers. + Finance and selling-price supporting by parent company in processing notepaper. Weakness: + Financial insufficient in plywood making resulted to difficulties for modernizing machinery and equipment, management and production. + Out - modernized facility made high cost price due to time, money and force wasting. + Having less ability to access advanced technology, modern management methods + Having less professional skills of labor force. Opportunities: + Vietnam’s GDP growth is on the rehabilitation of 4,80% in 1999 to 5,56% in the first quarter 2000. Together with 26% urbanization speed, it is estimated that this speed will continue to rise at a range of 29% by 2005. + The potential of new products: high-class tissue paper, table-cover and toilet paper. At this time, there have been no domestic manufacturer serves in this market, main products are come from some Asia countries as Thailand, Japan, Indonesia... with high price. New products appearance of Cau Duong factory is considered as a strategy, that aims to compete to import products, dump goods and control the market and export in the future. Threats: + Vietnam is attending to international economy, a number of foreign manufacturers came. As a result, competitive level is in higher and higher. Meanwhile, the factory is lack of equipment and capital for developing. + Since April 2000, Vietnam will omit high-lever tax rate of tariff impose on imported product (additional levy and imported restrict solution) owing to International integrating commitment. Therefore, tutelage policy of the government to local goods is going to be limited. II. Findings: Vietnam is on the way to rehabilitate the GDP growth rate after a fall in 1998 and 1999 (compare to 1997: 2,35% reduced in 1998 and 3,35% decreased in 1999). In contrast, the urbanization still speeds up to 26% in 1999 together with an increase in standard of culture of Vietnamese result to a strong demand of plywood and note-paper. However, marketing work with the purpose of making most of business chances, strictly exploiting the market seem does not show its effect in Cau Duong factory. 1. Real state of marketing research in Cau Duong Timber Factory. + Future forecast and marketing research activities are not adequately concerned with, because there’s no marketing office. In contrast, business bureau’s complex activities would seem to stem from being concurrently in charge of many functions, including marketing activities. Limited in adaptable ability to market changes also affects on the business activities and competitive aptitude of the factory. + Like marketing work, market strategies are neither effective, nor suitable for real situation of the factory. Demand’s prevision of the customer now is realized by only interviewing actual consumers, about volume of product they plan to buy. Then, specialized-cadres build production plan for the whole year base on the information they have just got. + Straitened situation of liquid asset for running business may due to defensive situation in material purchasing, negative influences on settling and enlarging the market just as investment efficiency. + Lack of production development and expansion policy. + Employee staff does not really meet the economic market’s requirement for the sake of out-dated information in many fields. Moreover, holding a purity of office makes them lack of competent in delving problems. + Insufficiency in specific policy for selling promotion as the same way as price supporting solution. At this time, selling promotion policy is implementing by reducing before-tax price of 4% if the consumer buy great volume of goods. + In field of paper processing, market research can be simplify understood as an instrument of pursuing the actual consumer’s demand, making plan to provide goods and satisfying the customer’s need in time. The substance of purchasing promotion means partly supporting policy: From 2% to 3% reducing price for immediate liquidations of more than VND 1 billion worth. 0,8% of commission is given to agents for selling goods. According to the feedback from the customer, the researcher finds that the key factor affect on small market-share of Cau Duong factory came from the selling-price. Today, with the purpose of strengthening competitive capability, promoting position in the market, all the firms use two elements as competitive instruments: product quality and selling-price. Selling-price can be assessed as a sector that determines the factory’s position in the market because consumers now make buying choices based on their perceptions of a product’s value at reasonable price. 2. Elements affect on selling-price of cau duong factory. Backward technology, out-modern facilities and equipment result to time, money, and force wasting, especially for high level of cost - price. Hence, product’s price of this factory now stand at minimum lever but still 15% higher than other factories’ and lead to insufficient of price-competitive power. Material market: Concentrating on North mountainous areas as Thai Nguyen, Bac Can, Yen Bai…in State-owned and legal private forest stations (legal sources). These providers must sell at the price set by the government, that influents on high expense of in-put material purchase and high cost of product. Doing business in wood-procession industry, Cau Duong factory has been suffering from many kinds of tax: Property tax, value-added tax, taxes on exploitation of natural resources. For example, the total value of handing in State’s budget of Cau Duong factory in 1999 was VND 805571496, account for 7,7% of total revenue (VND 10415743802). Purchasing net: + Plywood for construction: Consuming agencies system has not been built in Cau Duong factory. Thus, direct trading are implementing in North areas and it is difficult to serve consumers in South market owing to high cost of transportation. If the factory transported its product for selling in that area, transportation fee added price would be far more expensive than the local one. So far, Cau Duong factory only sell goods for its regular consumers in that market and let the rest, wide market for Tan Mai, Dong Nai factory, the private and foreign provider to control. + Note -paper: Low volume of product, nevertheless, consuming activity is fulfilled by agent net, the factory must give back commission for them. Selling activities are not directly carried-out to end-users lead to a bit reduction of net profit. Production ability: +Material insufficiency is the main reason for lower production ability. At present, machinery utilization stands at only 30% designed capacity, resulted in high producing cost (High depreciation expense). Summary: In summary, the demand for plywood has been on the rise since 1996 owing to the fast speed of urbanization (27% in 1997). However, the urbanization rate also tend to reduce in 1999 (26%) because of Asia Financial and monetary crisis. After the lifting of trade embargo of the US on Vietnam, large amount of capital has been pouring in the country from ODA, FDI... and enhancing Vietnamese people renovate their houses and offices. In present years, the total quantity of selling-goods in Cau Duong factory has a fast increase resulting from its main consumers, Vietnamese building companies and contractors (with the annual growth of 5% to 7%). The paper market of Cau Duong factory is rather settled with 6% to 9% annual growth and high intellectual standard of Vietnamese people (holding 98 % of the population, according to figures in 1999), except for the sudden change in price of paper-pulp and upward trend in the early this year These two products expansion greatly depends on standard of the economic development. The rise in urbanization indirectly affects on large number of selling-plywood and standard of culture of Vietnamese enhances strong demand for note -paper. The market for both products is rather complex with numerous of competitors: private workshop, foreign manufacturers, State-own enterprises... especially fragmented market of plywood with sub-markets. Stability in economic and political together with the attention of Vietnam to the international economy has brought much change and development favor to local enterprises. However, attending to international economy lead to high import-duty policy on protecting local producers no longer in effect. Chapter v Limitations This market research still has several limitations, which are mentioned below: The researcher has a little practical experience. However, the researcher had to investigate in the market situation and the future inclination by interview respondents. The inquiry was conducted only in eight urban districts of Ha Noi, resulting from time and budget limited. The allowed time was about five weeks to finish the research that built up some difficulties in collecting data. The sample size of 30 respondents was rather small to represent the whole market with different kinds of consumer. In addition, random property has been influenced by a few interviewees (10 people), who have knowledge about construction. Plywood, with the major characteristic of intermediate goods, is used in construction process. Hence, questionnaire was concentrated on price and quality requirement; its market is also connected with construction field of vision. At present, Cau Duong factory is processing Note-paper for Bai Bang Paper Company; market finding, product furnishing and selling price... have been controlling by parents company. Therefore, Notepaper market examination was realized lean on information of parent company. However, the researcher still studied this product because it has made a basic earning source and the ability for Cau Duong’s future development. Chapter Vi Conclusions and recommendations After the study procedure, base on gathered information of Cau Duong factory and factors in the surroundings, the researcher wants to identify problems in real situation of marketing research and suggests some solution with the hope of helping the factory rise its competence in overcoming obstacles and difficulties, strengthening its ability in consolidating and expanding the position. I. Conclusion. In spite of some limitations, the researcher still hope that this study would provide narrowed and helpful sources of market information for Cau Duong factory. This research can assist in giving information as well as devising an appropriate market strategy for its future. Several previous researches had estimated that demand for construction and building in Vietnam was on the rise; expected annual growth at least from 18 percent to 20 percent and local production may not keep up with in 3 to 5 year times. However, resulting from Asia financial and monetary crisis in 1997, imported plywood from Asia countries was reduced 20% compared to the same period of 1996; local manufacturers took that chance to dump goods and control the market. Although Vietnam’s average GDP growth in 1998 and 1999 has tended to be weaker than some previous years, Vietnam still a potential market for foreign construction partners. The prompt urbanization has enhancing the development of construction material market in general and plywood market in particular. In addition, domestic products are attracting the local customers’ concern. Hence, the developmental ability in plywood production of Cau Duong factory would offer much prospect of success, owing to machinery and technical development. Besides, intellectual standards of Vietnamese people have been increasing rapidly with the total of 78.4 million of literate, take 98 percent of population. Up to now, the annual selling product quantity of Cau Duong Timber Factory and Bai Bang Paper Company of 62,000 tons has not met the larger and larger demand of domestic market. This circumstance created a great chance for this product’s market spreading. As this year’s plan, the Vietnam Paper Head-office are willing to invest VND 1000 billion to increase its production capacity together with the first stage of Bai Bang Paper Company’s faculty enlargement. It is estimated that Vietnam Paper Co-operation would produce paper yield of 172.450 tons and satisfy the internal needs (VIR, March 2000). In potential market for high-class tissue -paper, Vietnamese producers have not enough capability to produce and let it under the control of foreign providers. Manufacturing strategy of this product has it own ability to compete against foreign one, base on its price competitive power. II - Recommendations. 1. Surmounting difficulties in marketing research. Market is considered as alive-environment where firms exist and develop; market either brings chances or conducts competition, failure. High competitive environment also requires enterprises’ quick adaptability to the alterableness; if they lack of strength, prompt and sensible, they will be eliminated owing to the harsh competition laws of economic market. Only by marketing research, do the firms have these competencies. Hence, improving awareness of the factory about marketing has become necessary, this activity aims to develop their responsibility to the company’s existence. At this moment, the missing of Marketing department in Cau Duong factory brought about the simplicity of advertisement and promotion activity. The reason for this problem came from business-line characteristic and members’ conceivability. 1.1. Solution to consolidate and expand the market. + At present, simple advertising and promoting may be due to the fact that the factory has not attached special importance to these activities and influence of characteristic of business activity. For the purpose of reinforcing and expanding the market, Cau Duong factory had better intensify these above activities by the media: Television, broadcasting station, journal, posters...and other solutions like market research, quality assurance, etc. + In order to produce high quality product at low price, Cau Duong factory should implement depth-investment in renovating technology, machinery, equipment, etc. For reducing transportation-fee, meeting the demand of sub-market, this factory need to increase the portfolios of buying equipment, means of transportation and installation, training cadres and operation-staff. + Estimating the consuming capability of every product or line group in each period of time. Attaching special importance to manpower and financial resources: material, capital, labor-force, and technical parameters for developing major product. Making production plans, concentrate on best-selling product. Investigating and examining present market just as talent market for the future. These actions need to be corresponded to potential of the factory and social demand. + Diversify product’s types base on defining key products of the target market. If the factory ran business with only primary product, its ability of meeting the social demand would be restrained. In some years coming, with the purpose of product diversifying, investment in research work and producing-technology application will becomes an imperative need. + Participate in strengthening the result of business activity and meet the established goal by having a through grasp and understand of the market, widening relationship with new partners, attending to another services such as interior decorations (plywood), installation… These solutions aim to determine the key product in each stage of business procession, adapt to new trend, thoroughly exploit actual market and enlarge it in the future. 1.2. Marketing research activity of Cau Duong factory in the short term 1.2.1. Establishing a temporary marketing staff At this point of time, when Marketing department has not been found, Cau Duong factory should establish a temporary marketing staff, who are in charge of market research, new product introduction, advertising and consuming support, marketing research, etc. This part is formed rely on recruiting part-timer (students) together with transferring some members of Business department by regular retraining, professional-ability fostering. Members of this part is functional arranged and closely connected together to provide exact and effective information in decision making process of managers. 1.2.2. Entrusting all departments with task of doing market research in near future. With the purpose of consolidating actual market and enlarging potential market, it is necessary to harmoniously coordinate among departments. Management staff: + Making decision base on gathered information and factory’s real strength; controlling, combining activity of all forces in the factory. + Setting up and fully making the distributive system owing to 80% of direct consuming. As a result, the major target of distributive system must be transportation fee, guaranty in rate of delivery process according to consumers’ requirement. + Making good the shortcomings of producing process, step by step correcting the price at more reasonable lever and improving quality of product at the same time. + Perfecting a lively and flexible price policy in each kind of market as well as fascinating policies that stimulate consumers’ interest: sensible policy in advertisement, product development, etc. Business department: This part is taking on marketing department’s function. They can do these works: + Regularly holding the Consumer meeting attended by major and veteran customers, in which, by directed interview and ballot, they can gather information of social demand, comment and determine product’s technical particularity. Base on this groundwork, officials can assess the present and potential market of each product, and readjust business activity accordingly with social demand. This is a complex matter with evincible effection by specific figures and actual evidence. However, it is an initial and elementary solution for preserving and expanding the market. + Collecting consumers’ submitting ideas about the product, promulgating policies of trading conditions (discharge schedule, transportation condition…). By the instrumentality of the relationship, managers can check and correspondingly readjust their policies, conditions that lean on ensuring the reliability of business activities and business projects. + By means of defining the consumer’s reaction, attitude to present product, the factory estimates its success and find out shortcomings; finding principal line of business that has ability of bringing high profit; deciding if the factory continuously produce or not. This work aims to develop available advantages, and forecast new trends. For instance, in the past five years, plywood has achieved goods results in selling competence and strengthen its capability of deeply exploit the actual market but the question if its big chances of selling in the next few years has not been answered yet. + Helping consumers to update their necessary information about all type of product, so that they could define which kind of product they are searching or demanding. Besides, selling more goods is not only the main problem, the more important thing aim to reinforce and maintain its prestige to the customer, set up durable business relations and attract consumers as many as possible. + Establishing good relationship with new trading partners in order to put their faith upon the factory, strive to win their sympathy and create ties of trade relation. Selling staff They are the people who directly get in touch with consumers. Consumers’ impression about the factory is built in contact procession to selling-staff. Salesmen are considered as the face of the factory, thus, it is necessary to improve their awareness of their important role in attracting the consumer of the factory. + Impressing the customer by expressing cordial attitude, enthusiasm, hospitality. Trying to make deep impression of the factory from the consumer. + Setting up mode of selling, creating good conditions for the consumer, especially for regular customers: credit sale, depreciation for big volume of purchasing commodity, commission for immediate settlement, etc. + Stepping up advertising and selling promotion campaign, one of the most important activity in marketing. Through which, the factory inspects its suitable capability of product just as sensibleness of competitive price and allocation policy, and initiate effective solution that aims to enlarge its market, find better way of business. 2 - Cau Duong factory should set up a market research staff. Enterprises are the most crucial component in the market with profit as first and foremost targets. In order to achieve economic effect, large of market-share, competitive ability against competitors...To day, all enterprises are tending to build their own marketing system that provides them useful and valuable information about the market. Running business in such high lever of competitive environment, information gathering is indispensable. Therefore, Cau Duong factory should set up a marketing research staff, that aims to get information in many spheres: Consumers, market, competitors as well as economic, law and political environment. Marketing Information System has an indirect purpose of stepping up the adjustable competence to variable market, preventing danger, taking full advantage of business occasions. To Cau Duong factory, marketing research staff/department should implement functions as below: Doing marketing research by investigating, collecting, processing information by means of visiting market, spending time to adjoin the market’s demand Providing exact and useful information about potential and actual customers in order to serve them in the best way, at lowest cost just as advising the leader in decision making. Providing accurate information about the market to make sensible production plan. The target of marketing research staff is to analyze information exactly in each kind of goods for each market. Building marketing strategies, including typically introducing about the property and effectiveness of products, advertising, canvassing, etc. Researching the structure and property of social requirement, market capacity; analyzing, investigating the factory’s competitive ability and market-share; predicting period of time for maintaining its position in the market. Establishing friendly relations with the consumer in order to bolster their confidence toward the factory, to get necessary information and the factory can make effective plan to serve them better. There has been some ways to set up this relationship, but the best way to the factory now holding consumer conferences, seminar and canvassing. Setting up advertisement and promotion campaigns, aimed at consumers of the factory because the number of them is able to estimate. Gathering feedback from customers’ requirement about new product as well as advertisement art and content Researching on present product and its expansive prospect in the future. Making plan for building representative office in large and talent markets, attending to industrial exhibitions in order to absolutely exploit strong-points of advertisement, enhance prestige of the factory, understand demand of the market. Although plywood is a kind of intermediate goods, careful researches on the customer must be carried out to exactly satisfy their need. Besides, careful investigating creates good condition to make the most of every selling-capability, to strengthen contact relationships, etc. depend on the help of market research staff. 3 - Cau Duong factory should train its staff to update professional skills to improve product quality. In the market economy, quality and price play an important part in market expansion. If an enterprise wants to maintain and enlarge its position and sphere of action, giving its own concern about price and quality is an indispensable action. Cau Duong factory is well-known for its product quality, but consumers nowadays has impressed their higher and higher claim to quality together with reasonable price, hence, feasibility study on improving quality and reducing price at the same time also requires a profound concern to this problem. 3.1. Improving quality Plywood: Quality is shown in smooth and plane surface, technical particularity, water-resistant competence, etc. Notepaper: white, toughness, glossy... Although these products was adopted in the market, nothing can ensure their existence and consuming ability in the future if the factory has no concern about improving manufacture technology. Solution + Stringently inspecting the technological process of production and technical preparation step for manufacture, consist of studying and designing products, establishing production procedures, determining plan of material and equipment for manufacturing, preparing related documents to production (draft, technical criteria...). Technology bureau assumes the responsibility of these works. + Taking heed to invest in technologic process amendment and perfection, synchronous properties improvement of production procedure especially the crux part that greatly influent on product quality. + Close co-ordination the action of each part in order to ensure the unity of making process. + Harmonious combination in personnel arrangement in order to streamline the labor force and create good conditions for effectively promoting their ability, intelligence and grey-matter. 3.2. Improving price policy As concerned above, the key factor that effect on small market-share of Cau Duong factory came from selling- price. Only by solving this problem as soon as possible, can the factory fortify and develop its market. Selling-price is closely related to cost price, thus, reducing selling price is implemented base on lessening cost price. + Finding, establishing good relationship with many material suppliers as well as consolidating connection to old providers to see to the adequate supply of material to the factory and cut down material expense. + Rationalizing working-hours, avoiding an increase in working-shift and extra-working time... correcting inefficient action of individuals and sections. Minimizing superfluous labor force by provisional leaving off work with salary partly paying, this activity aims to reduce conversion cost. + Ameliorating machinery and equipment just as ensuring production in time in order to reduce squandering in material, time, labor-force…Minimizing time for repair and maintenance of machinery. Appendix Appendix 1 questionnaire 9. What do you find when you use that product? * Price ”Expensive ”Acceptable ”Cheap * Quality ”Plane surface ”Unstuck ”Smooth ”Blister ”Degree of accuracy ”Durability ”Other factors 10. Do you think that high quality is always accompanied by high price? ”Yes. ”No. 11. According to information you have about plywood of Cau Duong factory, Can you explain the similarity between price and quality? ”Agree ”Preferred foreign product ”Preferred other domestic product ”Other 12. About present service of Cau Duong factory, you find it ”Good ”Alright ”It need to be surmounted 13. Will you be a customer of Cau Duong factory in the future? ”Yes, because ”No, because 14. You want to buy products of Cau Duong factory, which of these after-selling services do you prefer? ”Free Transportation-fee ”Some percent of discounting ”Other 15. You decide to buy product of Cau Duong factory, you prefer having your goods delivered at: ”Cau Duong factory ”Agency ”Your company ”Other suggestions QUESTIONNAIRE (FOR NOTE - PAPER PRODUCT) 1. How many children are there in your family? ”Age ”Occupation 2. You are still a pupil / student what kind of note-book you are using? ”48 pages checked note - book ”96 pages checked note - book ”80 pages quire-book ”More than 80 pages quire-book ”Other kinds 3. Label of them? 4. The book that you are using is ” White ” Toughness ” Glossy ” Other feature 5. Where do you usually buy them? In ”Books shops ”Agencies ”Retailers ”Others 6. You often buy your note - book in ”New academic year ”The whole academic year round ”Other way 7. How many note - book do you use in academic year? 8. In the coming academic year, which of these following types of note - book do you prefer? ”Hardcover books with funny pictures. ”Thin cover books. ”Others Result of Questionnaire A. Plywood + After 10 days of market investigation, among 30 sending questionnaire, only 24 valid cases and 6 were strayed. The researcher assumes that these samples have no information about plywood of Cau Duong factory. + Most of construction companies use plywood as a dunnage in pouring concrete (54%). + They usually have some suppliers to avoid monopoly, many of them are other domestic manufacturers because of their lower price than Cau Duong factory. Collaboration with foreign providers mainly put into practice in contracts attended by foreign partners. + They make decision base on product (price and quality) for the reason of high durability of construction projects requirement (70.6%). + With the market - share of 47% in North market, plywood of Cau Duong factory is considered qualitative guaranty but high price, that influenced on 32.4% agree with it similarity between price and quality. + At present, after - selling service of Cau Duong factory has not been bringing in practice yet. Hence, consumers suggested this activity need to be surmounted. Note-paper + Valid cases: 30 Missing cases: 0 + Almost the sample is using 80 pages quire-book (52.9%); checked note - book mostly used by primary pupils. + At this time, notebooks of private factor are popularly utilized for the sake of colorful and eye-catching form. In contrast, producing unaccordance with the process has stirred up insufficiency of this product in number of pages, white and toughness.... + Books and materials are continually consumed in the end of June to September, when children are going to prepare for summer - courses and a new school year. Therefore, parents and children generally buy notebooks and textbooks at the same time in State - owned books shops with a considerable amount (56.7%) + In the process of examination, the researcher realizes that a tendency of hardcover book utilization has appeared since 1999. Despite higher price than normal note - books, a strong demand in using books with picture of famous actors, singers or funny animals...has impulsed consuming quantity of the private (leading producers in producing this product). Appendix 2 - charts Some Expectation Figures in the Five years’ plan Criteria 1996 - 2000 2000 - 2005 GDP’s Growth (%) +Agriculture +Industry and Construction +Service Total Social Capital Investment (USD billion) 6.8 3.4 11.0 5.6 41 7.2 3.2 9.0 7.6 58 Investment structure in 2000 - 2005 Showing Value + Indoor Investment + (Budget Capital) + Foreign Direct Investment (FDI) + Overseas Development Association (ODA) + Other Foreign Investment About UDS 35 billion About USD 14 billion More than UDS 9 billion About USD 9 billion About USD 5 billion Economic Figures in 2000 and 2005 Criteria 2000 2005 + Population ( a million people) + GDP (%) + GDP per person (USD) + Export Turn-over (USD billion) + Import Turn-over (USD billion) 80.9 100 401 12.8 13.2 89.7 163 600 18 17 (Source: Institute of Development (Ministry of Planning and Investment) appendix 3 - bibliography books and reports. ADB – Economic Report in 1997, 1999 Industry Production Reports of Statistical General Department (1999) Tax Policy on Imported Product (2000) Alvin C. Burns and Ronald F.Bush (1997), Marketing Research, Prentice Hall International. Ha Nguyen (1997), Market research on the Building and Construction Product in Vietnam. Information system in Business - Ho Chi Minh city Publishing House. JP Lacour - Lexique du Marketing, Editions “Bertrand - Lacoste” - Paris 1993, 6. Marketing Administration - National Economic University Phillip Kotler and Gary Amstrong (1994), Principles of Marketing, Prentice Hall International Richmon, D.et.al (1996), “Vietnam - Building and Construction materials”, US National Trade Data Bank/ Market Research Report. Truong Ding Chien and Tang Van Ben (1997), Marketing Duoi goc Do Quan Tri Doanh Ngiep, Statistical Publishing House. ARTICLES Hung, N.M. (1999), economic forecast in the year 2000, Business and Marketing News, 28 February Market of Material-price, 38+39, March 2000, 9. Nguyen, M. N. (2000), Tiep tuc kich cau va xuc tien co cau lai, Vietnam Investment Review, (16), 17 February, 5. Pham, M.H. (2000), Su Lao Dao Cua Nganh Giay Vietnam, Vietnam Investment Review, 25, 27 March, 5 Tran, L.D. (2000), The Two Main Tendency of ASIA Economy, Vietnam Investment Review, 15 (5), 21 February, 12 Ta, H.Y (2000), Report writing, Business and Marketing News, 28 February