mkt outlines

8/8/2019 Mkt Outlines

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MKT OUTLINES TUNG (Outcome 3a & 3e)

1. New product developmentStage 1: Idea generation

Consumer trend:

y According to the American Marketing Association, green marketing is themarketing of products that are presumed to be environmentally safe

green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as modifying

advertising.

y The improvements of Vietnamese enterprises: Metros sedge bags or GreenConsumer Campaign by Sai Gon Co-operative in 2010.

y In response to this blooming trend, Institute of Environment and SustainableDevelopment (IESD) through a series of workshops has considered 2010s

Vietnamese consumer trend as friendly-environmental.

Current situation:

y Over 82,000 trees are cut down each year to meet an annual worldwide demand of14 billion pencils.

y The key point lies in how the conventional wooden casings are replaced by a newfriendly-environmental material.

y Vietnam is making wasteful use of waste papers.y U p to 70% among the total quantity of domestically produced paper involving

waste materials. However, only 25% of waste paper has been recovered so far.

y Vietnam has to import wasted and recycled papers from foreign countries to useas inputs.

Vietnam is considered as the country having the smallest percentage of

recovered waste papers within the zone.


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Competitors:

Hong Ha Joint-Venture Company and Thien Long Corporation. no differentiation in

technology applied in the production process. Moreover, almost customers with the exception of

technical ones purchase products of these two brands with minimal effort.

Stage 2: idea screening

Materials availability:

y Vietnam has been well-known as a rich country in natural resources, particularlydeposits of various kinds.

y Graphite is mainly allocated in such provinces as Lao Cai, Yen Bai and QuangNgai with total reserves of nearly 20 million ton.

y Regarding clay reserves, deposits of this kind are available in Hai Duong (over 55million m3), Quang Ninh, Lao Cai, Yen Bai and some southern provinces

(Wikipedia).

y Particularly, local people at Quang Ninh recently have discovered a huge claymineral with the total reserves of over 2 billion ton (laodong.com.vn).

y Wasted newspapers: There are many agents within Hanoi and factories at theoutskirts which sell wasted papers on kilo basis.

Technical feasibility Finance availability

We will only buy from overseas suppliers one unit to use as sample. Instead of mass

importing, we prefer imitating their technology and domestically produce our own machinery.

The matter of patent does not appear as a hindrance to V-Unique because the selling price set by

foreign suppliers has already included patent cost.


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According to Standard Chartered bank, VND is likely to devaluate in 2011 reaching over

20.000 VND/USD.

The price of these paper-pencil machines are varying from 3000-4000 USD at average.

Importing a large quantity of machinery requires from the firm intensive financial power, which

fails to match with a newly-established company like ours.

Stage 3: product development and Testing

Product line:

Since V-unique is a newly-formed manufacturer, however, we solely intend to focus on grade B

and HB, which are among the most popular categories preferred by the vast majority of users.

Besides, to serve the varying preferences of customers, we also introduce pencils of different

colors, which is used to produce colorful drawings of primary students and fashion designers.

Differentiation strategy:

Our company decides to follow differentiation strategy to add more values for the

customers in terms of product quality and cover design.

The various graphite pencil grades are achieved by altering the proportion of graphite to

clay. The more clay is used, the harder the pencil is.


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Specifically, we will seek for Kaolinite and Leda to use in our production process.

The former category of clay is used to produce pencils graded HB because it is a bit

harder than other types.

The latter is employed when producing grade B pencils since this type of clay minerals

exists in coastal provinces.

The cover of our products would be colorful newspaper with eye-catching patterns of

cartoon characters, sceneries or fashion-related pictures from magazines.

Stage 4: product testing

Physical prototyping helps analysis, verification, testing and optimization of the product

concept. Apart from external tests in the market, internal tests on form, fit, function and comfort

may be useful to check whether the quality level meets the objectives and expectations. T

These prototypes which are produced by our company obviously go into the step of beta

testing and market testing this is when we can have an insight into customers responses to our

products.

However, it might be time-consuming and ineffective if our company ourselves carry out

this step. Collecting and analyzing data from market research surveys is a task that requires

proper skill and method, which is possessed by market research companies.

Therefore, we intend to pass over this task to FTA Company, which is one of the most

popular market research companies in Vietnam.

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