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Competitive Image Matrix Table For Mineral Water Products In Binh Dinh Market


near the Company, moreover, the population here is very concentrated, it is the place where many schools, hospitals, companies and hotels are concentrated... Therefore, the sales revenue increased significantly. The reason for the slow increase in 2010 is because the market in Hoai Nhon and Tay Son districts consumed less products than the previous year, and together with the fluctuations of the domestic economy, the sales revenue slowed down. But in 2011, the consumption demand of the people increased, contributing to the significant increase in sales. That is a good sign for the Company, helping the Company to increasingly enhance its reputation in its production and business activities.

❖ Market segmentation by region

The Company's main markets outside the province are the Central Highlands and Central provinces, along with some provinces in the North and South.

Table 2.5. Sales revenue by regional markets

Unit: 1000 VND


Place of distribution

coordinate

Year

Comparison 09/10

Compare 11/10

2009

2010

2011

Level

%

Level

%

North

704,671

826,463

1,033,079

121,792

17.3

206,616

25.00

Central region

1,169,403

1,669,597

2,626,276

500,194

42.8

956,679

57.30

Central Highlands

1,071,193

1,498,873

2,212,337

427,679

39.9

713,464

47.60

Southern

824.008

1,028,688

1,421,647

204,681

24.8

392,959

38.20

Total

3,769,275

5,023,621

7,293,338

1,254,346

33.3

2,269,717

45.18

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Source: Planning and Business Department

Comment:

Revenue in the regional market has increased over the years. Specifically, in 2010 it increased by 33.3% compared to 2009, and in 2011 it increased by 45.18% compared to 2010. This shows that the Company has promoted the distribution of products to markets outside the province, especially along the Central and Central Highlands provinces. Revenue in the Northern and Southern markets has increased more slowly due to geographical conditions and competition from other companies in the same industry. In the coming years, the Company will continue to exploit the market outside the province to bring products to consumers, increasing its market share in the Vietnamese market.


With the characteristics of the natural mineral water industry, the main customers consuming the products are companies, offices, restaurants, hotels, agents, retail supermarkets... in Binh Dinh province (accounting for 60% of sales revenue).

In general, the Company has not paid due attention to market segmentation to select target markets. The Company's target market selection is based only on geographical convenience and the Company's ability to respond, not on scientific marketing methodology. This is a limitation of the Company that needs to be overcome.

❖ Competitor analysis of The natural mineral water

life in the central market

In the Central market, Quy Nhon Mineral Water JSC faces fierce competition from two strong rivals, Thach Bich and Vinh Hao. To see more clearly, we create a competitive analysis table as follows:

Table 2.6. Competitive image matrix table for mineral water products in Binh Dinh market


Element


Class

The life

Stone

Vinh Hao

Important Point​​​​

Rating Points​​​​

Important Point​​​​

Rating Points​​​​

Important Point​​​​

Rating Points​​​​

1. Market share

0.12

4

0.48

3

0.36

3

0.36

2. Distribution

0.12

3

0.36

2

0.24

2

0.24

3. Financial capacity

0.10

2

0.2

3

0.3

3

0.3

4. Product quality

0.15

3

0.45

3

0.45

3

0.45

5. After-sales service

0.08

3

0.24

2

0.16

2

0.16

6. Price

0.10

2

0.2

3

0.3

2

0.2

7. Market

0.12

3

0.36

3

0.36

3

0.36

8. Demographics

0.10

3

0.3

3

0.3

3

0.3

9. Production technology

0.11

3

0.33

4

0.44

4

0.44

Total important points

1.00


2.92


2.91


2.81

Source: Planning and Business Department


Through the above analysis in Table 2.6, we can see that in the Binh Dinh market, Quy Nhon Mineral Water Joint Stock Company has stronger competitive ability due to its advantages in distribution channels, after-sales services, and prices. However, if we consider other markets, the Company will have difficulty competing with these two competitors because their financial and technological capabilities are superior. Therefore, the Company needs to have appropriate competitive strategies, must know how to take advantage of its advantages and avoid attacking the points where the opponent has advantages.

2.2.3. Analysis and evaluation of Marketing-mix policy

a. Product policy

❖ Products

The life natural mineral water product is a pure drinking water with low mineral content. The life mineral water is produced from natural mineral water sources in Phuoc My, Quy Nhon City, Binh Dinh Province, on a modern equipment line. The product is used to quench thirst and supplement minerals for the body. With this different feature of The life water compared to other carbonated or non-carbonated soft drinks, The life water has only one quality level.


Figure 2.4. Images of some types of natural mineral water The life

❖ Product brand

With a blue background, the word “The life” brand is used as the main logo for activities such as advertising, sponsorship, participation in charity programs, advertising on means of transport, at product showrooms... The logo represents the Company's brand through stylized letters. With two drops of water at the beginning of the word “life” represents the purity of the water source created from the brand “The life”.

In addition, we see that the Company's product naming is not associated with

production location so that the product will be easily consumed in different regions in


Vietnam. This is a choice that reflects the strategic vision of the managers. Because in the future, when production capacity expands, the Company will launch many new products, then this product will not be overshadowed by the name of the previous successful products or if this product fails, it will not affect the Company's other products.

❖ Product packaging

Plays an important role in beverage products. Because the company's products are liquid, it is necessary to have containers (packaging). Moreover, due to chemical and microbiological characteristics, it is necessary to preserve them in special sealed packaging that is convenient for storage and easy to transport. Packaging is also an advertising medium that attracts the attention of consumers. Packaging not only introduces the product and the image and brand of the company, but also creates an impression of beauty, luxury and a sense of security when using.

However, with the current packaging method, packaging has not yet been turned into an effective tool to support consumption promotion activities. The type of packaging and design is monotonous, not creating a difference from other types of products.

❖ Product quality

The life natural mineral water is a type of purified drinking water with low mineral content. Therefore, The life mineral water has only one quality standard. The company's characteristics, which were formerly part of Binh Dinh Medical Equipment Pharmaceutical Company, always put quality requirements first. The company's product quality standards are regulated and certified by the Ministry of Science, Technology and Environment and the Department of Food Safety and Hygiene under the Ministry of Health.


Table 2.7. Some product quality indicators


STT

Quality indicator name

Basic level

A

Sensory indicators


1

Taste

Odorless

2

Color

Colorless

B

Mineral content (mg/l)


3

Sodium

51

4

Calcium

<0.1

5

Potassium

2.81

6

Magnesium

<0.1

7

Iodine

<1

8

Flo

<1.5

9

HCO3-

<20.2

10

PH

<0.1

Source: Technical Department

❖ Features and uses

The Life mineral water of the Company is taken from Phuoc My natural mineral water source, one of the best natural water sources in Vietnam, through modern production technology has produced high quality products. Besides, in addition to being a refreshing drink, The Life also supplements minerals for the body.

❖ Decide on size

During the business process, to meet the needs of customers, the Company has produced The life water with many different packaging types corresponding to different capacities including: 330ml bottle, 500ml bottle, 1.5l bottle, 7.5l cal, 20l cal.


In addition, the water comes in sizes of 330ml and 500ml, suitable for customers who need to move around such as tourists, long-distance passengers, customers using in restaurants and hotels... The 1.5l and 7.5l types are suitable for picnics and camps. The 20l type is convenient for office workers and households.

❖ Customer service decisions

Customer service is one of the factors that make up a complete product. The company chooses the service form of home delivery. With a large volume of goods, the company will combine with the company's transportation service or combine when distributing western medicine to counters... with The Life 20l mineral water, the consumer customers are agencies or households, the company has the form of home delivery or through agents.

b. Pricing policy

The decision on product selling price is an important task that the Board of Directors of the Company must approve at the end of the fiscal year meeting. The approved price will be applied in the following year. In some special cases, the Company's director may decide to adjust the price. To make effective pricing decisions, the Company carefully considers the stage of the product life cycle, the Company's financial resources, those of competitors, the relationship between cost and volume, and other opportunities of the Company... At each point in time or in each product life cycle, the pricing policy has different objectives in accordance with the general Marketing strategy.

❖ Pricing objectives for the Company's products

+ The number one goal is to continuously increase profits because the Company's products, especially mineral water, are in the development stage.

+ Continuously expanding the market, this is very meaningful. Expanding the market means increasing consumption volume, thereby reducing


production cost per unit of product. At the same time, expanding the market also creates competitiveness and enhances the Company's position in the market.

For new markets to penetrate to ensure the Company's profit increase target and at the same time position the product in the hearts of current customers, appropriate pricing policies are an advantage. Realizing this, the Company has introduced a flexible pricing policy and the pricing target must be consistent with the Company's overall target but cannot be separated from production costs.

❖ Factors affecting price

A company's pricing decisions are influenced by internal factors of the company as well as external market factors.

- Internal factors of the Company include

+ Marketing objectives: Internal objectives, profit maximization objectives, market share objectives, product quality objectives and other objectives.

+ The Company's role and capabilities in the market.

+ Cost (fixed cost, variable cost) of the product.

- Factors outside the Company

- Market and demand

- Popular price on the market.

- Competitor prices.

- Other factors (laws, policies of state agencies).

❖ Pricing method

The company sets prices based on the analysis of the break-even point and ensures the set target, from which it determines the selling price of its products. At the same time, the company also bases its price on the price of competitors as well as the market situation to determine the offering price, so that the selling price of the company's products is not

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