Choosing Marketing Strategy Based on Specifications and Position in Competitive Market

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TCMN as mentioned in point 5 above. In localities where there is no association presence, other forms of business cooperation such as clubs, business alliances, etc. are also needed.

(b) It is necessary to raise the awareness of stakeholders about the role of linkages in promoting the marketing of Vietnamese handicraft products through disseminating knowledge, information and experience in developing linkages; transferring methods of developing linkages; building typical models and thereby drawing experience and transferring methods, with special attention paid to models/methods of capital contribution, capital mobilization (loan capital), profit sharing methods, etc. Special attention should be paid to the ability to link craft villages according to the model of original craft villages - satellite craft villages, and at the same time, pay attention to the relationship between members and craft villages.

(c) In export marketing of handicraft products, the association of domestic manufacturing enterprises with foreign distributors (possibly in the form of a merger strategy to jointly invest in forming a joint venture, joint stock company or possibly only at a loose level such as a strategic alliance, etc.) is very important because it ensures a stable output for handicraft products.

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produced, and at the same time help manufacturing enterprises get closer to foreign customers to grasp their needs and tastes, thereby creating products with higher commercial value in the international market.

3.4.2. Choosing marketing strategies based on specifications and position in the competitive market

Choosing Marketing Strategy Based on Specifications and Position in Competitive Market

As analyzed in Chapter 2, Vietnamese TCMN enterprises are not suitable for the Market Leader strategy because their competitive position in the market cannot be compared with large-scale enterprises of some competing countries, such as China. Therefore, Vietnamese enterprises can consider applying the Market Challenger, Market Follower and Market Cornering strategies to suit their competitive position.

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In the process of researching and building competitive advantages to implement the above-mentioned strategic forms, Vietnamese handicraft enterprises need to have a broader view of competitors - which are similar handicraft products of other countries in the world that are exported to the markets of Vietnamese handicraft products. The assessment of competitors and the competitiveness of Vietnamese handicraft products 31 points 5 shows that China is the biggest competitor, followed by some ASEAN countries such as Thailand, Indonesia, Philippines, Malaysia ... Although handicraft products are produced all over the world, in terms of the main handicraft products exported and product characteristics, Vietnamese handicraft products have the most similarities with handicraft products of the above-mentioned countries.

China is a country with a long history and strong national cultural identity, even many Vietnamese handicraft products are heavily influenced by traditional Chinese motifs. They also built

image in the eyes of the world community as a place specializing in producing and supplying cheap goods, reasonable quality. Therefore, competing with China on goods with traditional cultural identity is not necessarily the optimal solution, and we should not even consider competing with them on price.

To be able to compete with Chinese handicraft products, Vietnamese handicraft products need to focus on exploiting the following "niche" markets (these markets are also classified according to geographical criteria, other classification methods will be discussed in more depth in the following section):

Japan - Korea market : These are markets that import a large value of Vietnamese handicrafts, especially Japan. Due to many different reasons related to history, politics, economy, etc., there is currently an increasing trend of "hating China" in the two countries' society, including in the political world, leading to a boycott of Chinese goods by a group of people.


31 Tran Doan Kim, 2005, Scientific Topic No. 2: "The current export marketing situation of some typical Vietnamese handicraft product groups"


increasingly large part of the population of Japan and Korea. Meanwhile, the political - economic - social relations between Vietnam and these two countries are in the best period ever in history. This is the very favorable condition and opportunity for Vietnamese goods, including handicraft goods, to penetrate and replace Chinese goods in these large markets.

Overseas Vietnamese Community : Similar to China, overseas Vietnamese often live in large urban areas, such as "Little Saigon" in California, USA. These are important markets.

for Vietnamese handicraft products, especially in big cities of the US, Canada, Australia, and some European countries because these Vietnamese communities often have a mentality of returning to their roots and prefer to consume goods with Vietnamese cultural identity.

Some other "niche" markets : The State also needs to support conducting market research in other countries that are small in scale but have high income.

high per capita income (for example, Middle Eastern countries...) to find markets that China ignores because with its large production scale, Chinese goods often target large-scale markets such as the US, EU, etc.

For markets with great potential but relatively price sensitive (such as domestic markets, markets of Eastern European countries and former Soviet bloc countries, etc.), price competition must also be taken into account.

In addition, with the creative minds of Vietnamese people and the talented hands of artisans, if we do a good job of researching the needs and tastes of key foreign markets, we can completely create unique products with high artistic value, meeting the needs and tastes of customers in each key foreign market without having to worry too much about Chinese goods.

3.4.3. Choosing a marketing strategy based on the business's key market orientation

The reality of production and business in Vietnamese craft villages shows the following outstanding characteristics:


Since ancient times, the craft village has developed strongly in many periods, initially producing products mainly for daily life or agricultural production tools, such as water ladles, bamboo baskets, wooden furniture, wooden statues, wooden tableware, ceramic dishes, embroidered products such as clothes, festival costumes... The previous generation passed on the craft to the next generation (usually in the same family) and over time, the production techniques were increasingly developed and perfected.

In handicraft products, spiritual culture is crystallized in material culture: Dragons, Phoenixes, Turtles, and Unicorns carved in temples and pagodas, decorative patterns on bronze drums, Nine Tripod Cauldrons, colored glaze on ceramics, patterns and motifs on embroidery, woven fabrics, silk, brocade... first of all, these are material culture, but they contain Eastern philosophical views, philosophies about heaven - earth - human, concepts of religion and theocracy, especially the philosophies of Buddhism, Taoism, Confucianism (Kong, Mencius) and the philosophy of the Book of Changes.

Another very important characteristic of traditional handicrafts,

It is the individuality, the uniqueness, the style of each artisan and the local characteristics, existing in the exchange with the community. Traditional handicrafts are of a school, a family, keeping the secret in creation rather than being popular and widespread.

Traditional Vietnamese handicraft products always deeply reflect the thoughts, feelings, and aesthetic concepts of the Vietnamese people and the Vietnamese cultural identity. Traditional handicraft products often express the landscape of daily life, people, natural landscapes, traditional festivals, concepts of nature, gods, and Buddha. The artistic touches on lacquer paintings, silk paintings, wood carvings, mother-of-pearl inlays... with flying storks, curved bamboo branches, communal house roofs, banyan trees, boats at the river... represent the country - people and


Vietnamese soul and sentiment, making foreigners love the people and

Vietnam country

The tradition and intangible values ​​of Vietnamese handicraft villages and products are important factors that help build the competitive advantage of Vietnamese handicraft products over competing products of other countries. That is to say, to emphasize the ability to promote these factors to create a difference for Vietnamese handicraft products compared to those of other countries in export marketing. With a long history, with rich, diverse and unique types of tangible and intangible culture, in fact, Vietnamese handicraft villages have been and are relying on these advantages to access the international market. However, Vietnamese handicraft enterprises and villages need to pay more attention to promoting the full development of Vietnamese handicraft products.

to these advantages. From the above analysis, combined with the analysis in Chapter 2 on the current status of applying marketing strategies based on the key market orientation of the enterprise, Vietnamese TCMN enterprises can consider applying some of the following marketing strategies:

* "Demand" marketing :

In modern marketing, people often emphasize the importance of orienting marketing activities towards the " needs " of customers - all strategies, measures, and marketing plans must originate from customer needs. For example, a major demand of (foreign) customers when purchasing handicraft products is for interior decoration or daily living (such as tables, chairs, paintings, decorative statues, clothes, dishes, pots, vases, etc.). With the tradition and experience of producing these products from hundreds to thousands of years, this will be an advantage for Vietnamese handicraft manufacturers and exporters if they know how to grasp the requirements, tastes, and aesthetics of each target market and design and produce products that are suitable for each target market.

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products that are both beautiful in form and design and meet the needs of these markets. This is both an easy and difficult task: easy because Vietnamese manufacturers are very proficient and knowledgeable in technology and craftsmanship in making these products, difficult because we have to produce products that meet the tastes and usage requirements of users in cultures that we are not familiar with. Therefore, market research plays an important role here.

* Marketing "supply" :

However, sometimes in some specific fields or cases, " supply " marketing is effective. "Supply" marketing here is understood as the enterprise proactively creating new, creative and attractive products, thereby generating demand for products in customers (self-creating or expanding the market). The above analysis shows that "supply" marketing can be effective in this field. For example, the intangible cultural element in Vietnamese handicraft products is an element that needs to be better exploited in the export marketing of this item, especially for on-site export (selling to international tourists). There is a useful lesson learned from a handicraft enterprise in Thu Duc: after 10 years of specializing in providing exclusive wooden handicrafts for the French sales company Interrier,

Mr. Tong Hoang An, owner of Phuong Tay business, said that sooner or later, Interrier will remind us of a classic saying: "Always aim for the real thing."

"Legends", for example, the generic ship models on Dong Khoi Street are very difficult to survive, compared to a real Titanic model of a time. This is the lesson of "depth marketing": customers are convinced by the "deep connection" with the origin and character of the product - the image of the bucket hat, the scarf

Cu Chi tunnels came first to Japanese tourists, Cu Chi bamboo and rattan products follow the model

That comes later. We have so many historical themes thanks to our rich history and diverse, unique culture - the problem is that businesses

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How do TCMN industries perceive and apply these intangible cultural elements to create unique products?

unique with strong Vietnamese culture, thereby creating demand among customers.

* Differentiated marketing :

The requirement for differentiated marketing here is that each target market has its own marketing plan: its own products, its own pricing policy, its own promotion, etc. This is difficult for handicrafts because there are no separate products for each market. In this case, it is only possible to orient the product towards each market to choose suitable traditional handicrafts. The individuality, the individuality, the style of each artisan and the local characteristics can be used to build a unique image and brand, associated with each locality, each craft village or school, clan. However, the above uniqueness and artistry will only be valuable if the product designs are commercial, meaning they are accepted and/or appreciated by the market.

This requires artisans and designers of TCMN products to carefully study the market that the product design is aiming for. Reality shows that many products when made are very satisfying to artisans with many elaborate and sophisticated patterns and high prices but cannot be sold. A good combination of the unique talent of the designer with understanding of the market will help the business's products to be

appreciated and paid higher prices and create sustainability in business development.

3.4.4. Choosing a marketing strategy based on the correlation between the product brand and the business's target market segment

Vietnamese TCMN enterprises, depending on conditions and circumstances,

Any form of target market selection can be applied.

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mentioned in section 2.3.4 in Chapter 2. However, the most suitable strategic forms for most Vietnamese TCMN enterprises are Selective Specialization and Market Segment Specialization . These are two forms that are suitable for the differentiated marketing style presented above. Some suggestions on specific market segments (niches) that Vietnamese TCMN enterprises can target

to d5 is analyzed in sections 3.2.1 and 3.4.2 above.

3.4.5. Choosing marketing strategies for each stage in the product life cycle

Vietnamese TCMN enterprises need to determine which stage their products are currently in in the product life cycle to make decisions.

Choosing the appropriate strategy based on market conditions, competitive situation, available resources, etc. Businesses need to pay special attention to

to the strategic forms that can be applied to the Growth and Saturation stages , because these are the stages that are suitable for most of the Vietnamese TCMN products currently on the market.

In the Growth stage , in addition to the strategy of improving product quality and adding new features and new designs, businesses need to know how to apply the following strategies:

- Strategy to add new models and complementary products (e.g. adding more sizes, more color options, adding more boxes, more aesthetic packaging, etc.)

- Strategy to enter new market segments: here it is not only about geographical market segments but also about demographic or behavioral market segments (for example, providing high-end TCMN products for the upper class; providing unique gifts on special occasions such as birthdays, openings, etc. for high-income groups such as large business owners, etc.).

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