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Vietnam Manufacturing and Export Processing (Holdings) Limited (VMEPH) is one of the leading manufacturers of scooter and cub motorbikes in Vietnam. nfluences on VMEPHs making decision for dual-branding strategy

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Introduction

Introduction Vietnam Manufacturing and Export Processing (Holdings) Limited ("VMEPH") is one of the leading manufacturers of scooter and cub motorbikes in Vietnam, which currently ranks third among the principal foreign-owned motorbike manufacturers. The principal business of the Group includes production of scooters and cubs. The Group also produces motorbike engines and parts for internal use and export market. The Group's manufacturing, assembly operations and sales are conducted principally in two operational bases located near the two largest cities in Vietnam, namely Ho Chi Minh City and Hanoi. To enhance market penetration, the Group has implemented a unique dual-branding strategy, offering products under both the SYM and SANDA brand names. 1. Basic concept of marketing: 1.1 What is Marketing? From distinct point of view and changing of markets, various marketing definitions have emerged and evolved to meet the changing world. There are a lot of definitions which marketing is related to a process. They reflect that marketing is concern with the relationship between sellers and buyers within the process of exchange goods and services. For instance, "Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably.", Chartered Institute of Marketing (2001). It emphasizes the wide scope of marketing, includes short-term task (satisfying profitably the customers) and long-term retention (anticipating) by means of research. Another example is the definition provided by the American Marketing Association (1987), "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals." It expands on the previous one and considers what is involved to satisfy both the customers and the businesses. In addition, it also demonstrates the distinction between marketing as a thing is done and marketing as an approach to how something is achieved. On the other hand, some definitions have described as a business function and also as a business philosophy. ...read more.

Middle

It will help considerably in keeping the long-term relationships with high customer satisfaction. If customer is met fully, then becomes loyal, they may buy more from the same supplier, buy more of the same or more expensive item, or advise their friends to buy. It will lead to increased sales and/or willingness to pay higher, thus lead to higher profits. That means, the image of the company is in the customer's mind already, and obviously, the continuous expenses will cost much less. Process of becoming a loyal customer can be represented as following pyramid: Figure 1.2 Loyalty pyramid Source: Aaker.D, Managing brand equity In addition, research and development enables the market-led company to keep ahead of the competition, opportunities arise out of a continuous research thrust with a large and potential market in initial. Especially, in case of VMEPH, one of the leading manufacturers motorbikes in Vietnam, which currently ranks third among the principle foreign-owned manufacturer, and a famous brand as SYM, their opportunities in this dual-branding strategy will so big because of existing trust of Vietnamese customers. However, the cost of marketing approach still need to be cared. If VMEPH too narrows the marketing focus, a big chance of promoting the brand and getting profits can be ignored. Other cost may include some or all the following when doing marketing approach. They are advertising, salesmen time, credit checks, agent commission, initial discount, or cost of building long-term relationships with customers, suppliers, distributors, and so on. 2. Influences on VMEPH's making decision for dual-branding strategy: 2.1 The macro and micro environmental factors in Vietnam: As above-mention in part 1.2, all organizations exist in a system. Therefore, they are impacted by the environment around. In this VMEPH's plan, the marketing decision might be influenced by the macro and micro factors of marketing environment as follows: 2.1.1 Macro factors: It can be divided into four main kinds of factors which impact on making marketing decision. ...read more.

Conclusion

If the need of them rises to a threshold level, it will become a drive, and from previous experience customer know how to meet this drive through purchasing particular types of product. Second, information system is always important. It help buyers know the producer and help the producer promote themselves among a mass of brands. With the company, information also attract the customer attention. Therefore, VMEPH should care this step. Third, after searching the information the customer will evaluate alternatives by looking for the benefit, and choose the one which make maximize profit for them. In this step, a famous brand is also impact considerably on buyers. As a result, VMEPH must make themselves more impressive than competitors such as YAMAHA, HONDA, and so on. Fourth, customers can be influenced by their relatives, friends, etc who used to buy this product, or like this brand when purchasing. Loyal customers have big power in this case to increase number of buyer for company. Because of that, VMEPH must have policy to maintain customer loyalty. Finally, post purchase evaluation, the consumer will have the feeling of satisfy or dissatisfy with that product. It decides the return of that customer in the future. Thus, the company have to put quality of products first and have good customer care services, for example free maintain engine or repair under warranty. Conclusion By analyzing various factors which influence on the unique dual-branding strategy of VMEPH with two new products are Galaxy and Attila Elizabeth with distinct feature, we can see the potential market and big opportunity for launching them into Vietnam. It can say that this plan covers a majority of many types of customer. If it would be successful, VMEPH should think of another similar plan to make their brand more strong in Vietnam and other market. Appendix Figure 2.1 Macro and Micro factors of marketing environment. Figure 2. ...read more.

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