BTEC Level 4 HND Unit 2 Marketing Essentials Report: VRG Company

This report, prepared for a BTEC HND in Business, examines the marketing function within the Vietnam Rubber Group (VRG) Company. It begins with an introduction to marketing, defining key concepts, and outlining the five stages of the marketing process: determining needs and wants, designing a customer-driven marketing strategy, constructing a marketing program, building relationships, and capturing customer value. The report then analyzes the micro and macro environments influencing marketing in a B2B context, including suppliers, intermediaries, customers, competitors, and the political, economic, social, technological, environmental, and legal factors. It explains the role of marketing in overcoming company issues, differentiates between B2B and B2C marketing roles, and explores the interrelationships of marketing with other functional units. The report concludes with a summary of findings and references.

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ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 2 Marketing Essentials
Submission date 2/10/2020 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Phan Nguyen Minh Hieu Student ID GBD191265
Class GBD0805B Assessor name Nguyen Thi Kieu Trang
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature
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P1 P2 M1 M2 D1

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Table of Contents
I. Introduction: ................................................................................................................................................ 4
II. The definition and basic concept about marketing ..................................................................................... 5
1. The definition of Marketing ...................................................................................................................... 5
2. Five stages in Marketing process: ............................................................................................................. 5
a. Determine needs and wants: ................................................................................................................ 6
b. Design customer driven marketing strategy: .................................................................................... 6
c. Construct marketing program that delivers superior value:................................................................. 8
d. Build relationships and delight the customer: .................................................................................. 9
e. Capture value from customer to achieve profits: ........................................................................... 10
III. Marketing environment (Micro and Macro Environment) influences the roles and responsibilities of
Marketing in a B2B company ............................................................................................................................. 10
1. Micro Environment: ................................................................................................................................ 11
Suppliers: .................................................................................................................................................... 11
Mkt intermediaries: ................................................................................................................................... 11
Customers: ................................................................................................................................................. 11
Competitors: .............................................................................................................................................. 12
Public: ......................................................................................................................................................... 12
2. Macro Environment: ............................................................................................................................... 12
Political: ...................................................................................................................................................... 12
Economy: .................................................................................................................................................... 13
Social: ......................................................................................................................................................... 13
Technology: ................................................................................................................................................ 13
Environmental: ........................................................................................................................................... 13

VIII. Reference ................................................................................................................................................ 18
Bibliography ....................................................................................................................................................... 18
I. Introduction:
Currently, Marketing has become an indispensable tool to make products of companies easily
accessible to customers. If businesses have a clear marketing strategies, their sales will increase
significantly and their customers will also be provided with accurate information about products they
will use. As a Head of Marketing Department of VRG Company, this report clarify the important
role of Marketing function and also points out its relationships with other functions of the
company.
Company name Vietnam Rubber Group (VRG)
The head office/
address
236 Nam Ky Khoi Nghia – District 3 - TP. HCM, Viet Nam
The wedsite
address
vnrubbergroup.com
Tel no
(04) 39 427 091
Fax no (84 4) 39 427 091 – (84 4) 39 427 093
Products/ Service
Porfolio
 Main sector: Planting, processing and trading in rubber,
processing artificial wood; rubber industry.
Brief history Industry Group Vietnam Rubber (VRG) established in 1975, after many
changes organization model and name; day December 26, 2017,
Prime Minister Government has approved the plan Equitization - Cong
Group Vietnam Rubber Industry. 22/05/2018, the Group organized
Table 1 Company Introduction

 Mission: Supply to the domestic and foreign markets these agricultural products, industrial products
and services at competitive prices picture, safe for users, friendly with environmental socially
responsible.
 Vision: As a leading enterprise in the manufacturing sector efficiency, scale and quality of agricultural
products, apply high technology and be environmentally friendly in Vietnam South, regional and
product brand affirmation Vietnam on the world market.
 Recent Objective: In 2020, VRG sets out the goal is to achieve high most production plans – business
joint business and development investment year 2020 by solutions such as: price management for
rubber products; Marketing expansion consumption field; Maximize effective jobs, product
advantage.
II. The definition and basic concept about marketing
1. The definition of Marketing
In the words of Amy Drury 2020, “ Marketing refers to activities a company undertakes to promote the
buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a company.” Marketing as
a discipline covers all the behavior that a corporation undertakes to attract and retain relationships with
clients. Networking with prospective or past clients is often part of the task (Drury, 2020)
2. Five stages in Marketing process:

a. Determine needs and wants:
- In this stage, the Marketing department helps the company find out customers' expectations, collect
information and offer suitable products.
- Need: Needs are situations of feeling shortage. Therefore, Yokohama, a Japanese car companies,
which lack the essential parts to the finishing of their products such as wheels or rubber related part.
- Want: Want is a form of 'need', often shaped by one's own culture and personality. Yokohama want
to have a design suitable for their car that these company will create and especially the quality must
be guaranteed
- Demand: is the choice to buy products based on decision making, capacity and finance. Depend on
the longstanding reputation and the cost of the company's products, B2B companies can confidently
make a decision to buy the product of VRG company.
- Offering: By understanding needs, want and demand of B2B companies, GVR has developed a
'signature' product called 'SVR CV 50'. This is a raw rubber that is perfectly produced in all aspects
and received the trust of Yokohama company.
b. Design customer driven marketing strategy:
- This second stage helps the company classify and identify the market to which it is targeting. At the
same time determine the value that the product brings to the user.
Segmentation
- The act of classifying a market into a specific group. This way helps businesses easily identify which
customers are suitable for their products and create a clear Marketing strategy.
- Car companies, for example, need rubber tires to complete their products
- In addition, companies such as KymDan , Van Thanh company that need rubber-related products to
make mattresses, pillows or other items that need high elasticity will be become B2B company with
GVR's organization.
- VRG natural rubber products are currently exported to more than 70 countries and territories
around the world and are continuing to expand their consumption markets.
Targeting
- In this part, the mkt department helps the company choose the target market for its product.
- VRG is proud to be a supplier of rubber products to major customers in the world and B2B company

Value proposition:
- “A value proposition refers to the value a company promises to deliver to customers should they
choose to buy their product, the value proposition provides a declaration of intent or a statement
that introduces a company's brand to consumers” (TWIN, 2020)
 Making life more convenient and comfortable
 Durable products and complete quality
 Various level of product
 Create finished products
5 Marketing concept:
Production concept:
- The concept of production has been around for a long time, this type of marketing often focuses
on the development and improvement of the manufacturing process of the product. (Oxidian,
2019)
- With VRG company, they tend to follow the production concept, because during their operation
they constantly produce low cost and large quantities to increase export competitiveness when
exporting to other country. In addition, they themselves are a group that self-exploits and creates
Figure 2 5 Marketing concept

Selling concept:
- Compared to the concept of production and product, all of them focus on production, but the
concept of selling is aimed at making the product try to sell without paying too much attention to
the quality of the product and the consumer's demand. The creation of client relationships is not
included in this philosophy. Therefore, the number of repurchases and customer satisfaction
levels are often very low. (Oxidian, 2019)
Marketing concept:
- A corporation that believes in marketing philosophy brings the consumer at the center of the
organization. This means that the business is focused on the customer's demand. A marketplace
that seeks to consider the needs and want of a client. It applies the technique of marketing based
on research on the market that starts from product design to sales. By focusing on the needs and
desires of a target market, a business may deliver more value than its competitors. (Oxidian,
2019)
- With a clear understanding of customers' needs, VRG has successfully applied this concept. Their
products can use a different type of packaging depending on the agreement between the Seller
and the Buyer. Aiming to personalize the needs of the buyer to create satisfaction. This helps
them stand out from the competition.
Societal Marketing Concept:
- This is a pretty modern marketing notion. While the principle of social marketing reflects the
needs and expectations of a target group and the supply of better value than its competitors, the
importance of consumer well-being and society as a whole is often stressed. The idea of societal
marketing allows advertisers to integrate social and ethical issues into their marketing activities.
Sometimes conflicting business benefit conditions, the client needs value, profit and the public
interest must be balanced and juggled. (Oxidian, 2019)
c. Construct marketing program that delivers superior value:
- In this stage, Marketing department will help the company to set up a reasonable and effective
marketing campaign thanks to 4P analysis: Product, Price, Place and Promotion.
Product:
- According to Essential of Marketing (2012),
“Product is the item offered for sale. A
product can be a service or an item. Every

Price:
- According to Essential of Marketing (2012), “A value that will purchase a finite quantity, weight,
or other measure of a good or service.”
- Each rubber item will have a different price, depending on its weight and quality, the price will be
changed from medium to high.
Place:
- According to Essential of Marketing (2012), “Place refers to distribution of the product. Key
considerations include whether the product is going to be sold through a physical store front,
online or made available through both distribution channels.”
- Focus on development mainly through a physical store front direct distribution to B2B companies.
The group currently has 107 subsidiaries, located in 34 provinces and cities domestic city and 2
neighboring countries Laos and Cambodia, including 65 rubber growing companies. Products are
distributed to domestic companies namely Kym Dan and Van Thanh to make products such as
mattresses and pillows. Besides, there are also automobile parts companies such as Yokohama,
Kumho, and Sailun to import rubber products to create tires.
Promotion:
- According to Essential of Marketing (2012), “The aim of promotion is to increase awareness,
create interest, generate sales or create brand loyalty.”
- Products are usually distributed directly through their own facilities. Besides, the company also
has its own website for other companies to choose from and buy directly. Because it is a large
rubber corporation in Vietnam, the company has given itself a reputation for B2B companies
d. Build relationships and delight the customer:
In this step emphasizes maintaining good relationships with customers as well as partner. Because
this is so important, it can adversely affect the company's operations
Customer relationship management:
“Customer relationship is one of many different approaches that allow a company to manage and analyse
its own interactions with its past, current and potential customers. It uses data analysis about customers'
history with a company to improve business relationships with customers, specifically focusing on customer
retention and ultimately driving sales growth.” (Injazz Chen, Karen Popovich, 2003)
- About VRG: VRG companies regularly hold customer gratitude conferences for b2b companies. In

procedures for interacting with them.” (Injazz Chen, Karen Popovich, 2003)
Figure 4 Shareholder of Company
- Tran Ngoc Thuan holds the highest position as chairman of the Board of Directors when holding
31.77% of the company's shares. Next is Huynh Van Bao who is the general director of the company
while holding a 20% stake. And the remaining members are on the board of directors when they both
hold 15% of the shares.
e. Capture value from customer to achieve profits:
- This last step is the step to get results after performing the above 4 steps. It manifests through the
satisfaction and return to customer purchases after using the company's product.
Satisfaction:
- Satisfaction is the behavior a customer will perform after purchasing your product. The level of
satisfaction will be shown by whether they will come back for a second time or will refer more
people. That clearly shows your product quality and reliability
Customer lifetime value:
- “Customer lifetime value is the value of the entire stream of purchases that the customer would
make over a lifetime of patronage.” (Drury, 2020)
Customer equity:
- “CUSTOMER EQUITY = TOTAL CLV from all customers (actual and potential)” (Drury, 2020)

1. Micro Environment:
Suppliers:
- The company plan would be influenced by the activities of a supplier, as they supply the
production materials. For instance, If their services are not reasonable and timely, due to delayed
production, this will affect production time and revenue. Therefore, maintaining a good supplier
relationship will allow a company to gain an advantage over competitors. (Faroog, 2017)
- The suppliers to the firm GRV are usually the suppliers of rubber seedlings. Besides, there are also
companies that supply rubber production machinery because the company pays great attention
to the production process. For example, over the past years, Phuong Minh Trang Rubber
Materials Company has become a standard rubber manufacturing equipment supplier to GRV
company, thereby bringing about a certain effect in the production model.
Mkt intermediaries:
- Corporations typically rely on banks, risk investors and other sources to finance their businesses;
wholesalers and manufacturers, warehouses and transport companies to sell goods; and
advertisements, market research agencies and public service firms to market their products. Each
intermediary will theoretically create different levels of customer satisfaction. (Sherman, 2020)
- In order to be able to have enough finance to run the group's operations, VRG company had to
rely on financial intermediaries. This department will assist the company in solving financial
problems that arise during the company's operation, usually borrowing from banks.
Customers:
- Customers are an extremely important part of any business. So, businesses should always create a
clear mkt strategy to attract potential customers, take care of existing customers and create more
value-added services. (Faroog, 2017)

Competitors:
- Competitors are things that can adversely affect the business. So businesses need to implement a
strategy to thoroughly learn about competitors, find signals to help differentiate companies from
competitors. In particular, what value can the company bring to customers, but not the competitors.
(Faroog, 2017)
- For our country, the rubber industry is currently a profitable industry, so more and more rival
companies appear. Especially after signing the "Economic Integration" agreement, all rubber goods
will not be taxed. This creates a huge challenge for the company when foreign rival rubber
companies enter Vietnam. (HUE, 2020)
Public:
- The public is defined as organizations created to contribute to a given company satisfaction that can
have a negative or positive impact on marketing. For example, if the customer is satisfied then it will
create a positive community through word of mouth, this will increase the business of organization
and vice-versa. (Sherman, 2020)
- Understanding the influence of the community on the business, the company has fulfilled its
obligations well during the years of operation with the slogan "Well implement the sustainable
development program, and be responsible to society." It can be seen that during the years of
operation, the company always contributed to the state budget, in addition to participating in
charity activities. This helps the company get a friendly view of its customers.
2. Macro Environment:
- It is an external factor that directly affects the success of businesses, development strategy and
decision-making. This is a synthesis of 6 factors Political, Economy, Social, Technology,
Environment, Legal abbreviated as PESTEL. (Faroog, 2017)
Political:
- Political is Government actions, rules and regulation. Change in political situation will become a