Sales Planning for Ginvera Vietnam

Introduction From the first day of establishing from 1985 by talented founder L. D. Waxson, Ginvera has climb step by step to the peak of beauty care industry in the South East Asia as the most prominent leader. The company appears as home of more than 500 dedicated employees and thousands others who work in production. The wide ranges of about 90 Ginvera’s products diversify from skin care to bath products, from shampoo to diapers, which are developed sensibly for both men and women, adults and kids.

Furthermore, by taking advantages of modern technology, coupled with strong and strategic foresight along with determination of the talented founders, all products are created, developed and improved in the more effective, much safer and more affordable away. With clear mission, vision and objective as well as appropriate business strategies which help the company keep a constant profitably and grow in stable way, Ginvera has built a significant reputation around Asia, especially South East Asian countries such as Malaysia, Singapore, Thailand, Indonesia and even China.

However, in Ginvera’ point of view, Vietnam does still appears as a brand new and potential market which can help the company not only reinforce its reputation effectively but also a considerable revenue every year. One the other hand, in Vietnamese customers’ perspective, Ginvera still appears as unfamiliar name although their products are sold in most of the supermarket especially in mega cities like Hanoi and Ho chi Minh city. As a result, on the way of market developing, Ginvera has planned to do some researches on Vietnamese market as well as customers’ behavior in order to have a comprehensive overview about this potential market.

Based on this purpose, this report will provide Ginvera an overall best practice of Sale Planning and Operation exclusively for Vietnam market which mostly mention about personal selling, including the principles, types of personal selling, both environmental and managerial forces affecting personal selling, the stages of this process as well as how the understanding of buyers’ behavior can be applied and use effectively in this process. Moreover, before mention all kinds of these issues, the report will bring an overview about communication mix and its roles in relationship with Ginvera Vietnam with wo instant examples: Advertising and personal selling. II. The Body 1. The marketing communication mix Marketing mix as known as 4P’s includes 4 main elements: product, price, place and promotion in which the promotion is considered as the appearance of any marketing campaign. The promotion does not only decide how the images of product are built but also decides partly how the product was sold to the hand of the customers. In order to build an effective and reasonable promotion, Companies often seeks for help from communication mix which includes: personal selling, advertising, public relations, sale promotion and direct marketing.

In order to achieve a distinguish look between two main groups, this report will discuss about two first different types: personal selling and sales promotion, representative for personal and non – personal selling. Figure 1. The Communication Mix 2. 1. Personal selling Personal selling is defined as direct oral communication designed to explain how an individual’s or firm’s goods, services, or ideas fit the needs of one or more prospective customers. This type of selling is often used in high – valuable products’ purchasing such as a house or car.

Naturally, when a people decide to buy a product or service valuable, especially compare with their income, they will consider very carefully with high degree of involvement. On the other hand, this type of selling is also popular in personal product or services which beauty cares appear as instant example. Personal selling is considered as the most intensive but expensive method in the communication mix. While other non – personal selling methods focus on the general public, personal selling as its name, focus on individuals as well as personal aspect.

Every person has different personality, different characteristics with different objectives and different requirements. In some industries like beauty care, is it necessary for the customers to have personal consults, in this case, personal selling plays the leader role as the most suitable and effective way for both company and customers’ perspective as in the win – win formula. By this way, the salesperson can understand exactly what the customers’ needs and wants, hence, provide some appropriate advices which can satisfy the customer.

In personal selling, selling is not the most important way as its impression; the more important thing is building long – term relationship with the customers. Obviously, even if the customer cannot find her necessary products at this time, however, it does not mean that she will not come back if she still feel satisfy with the services. Moreover, salespeople appear as the face, indicate the spirit of the company, play an important role in building image of the company in the customers’ heart. However, personal selling does not appear as a perfect selling method, where put the customer in the center of sales deals.

Firstly, the cost for this method is significantly higher than these other non – personal selling methods. Secondly, not all products or all market are considered suitable with this method. 2. 2. Sale Promotion Unlike personal selling, sale promotion is defined as any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. In more details, sales promotion activities are temporary changes in the marketing mix, used to achieve tactical objectives. Moreover, this type of selling is also designed to attract not only end consumer as usual but also the sale team and intermediaries.

Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, discounted price, prizes, product samples, and rebates. Among these types, discount, coupon and product samples are the most popular types in Vietnam’s beauty care market, both online and offline. Firstly, Sale promotions often used when the company releases a new line of products as a way to introduce them to the customer and encourage them to try on and feedback to Company. Secondly, companies often use sale promotion as “push and pull” strategy by hitting directly on the customers’ psychology.

Most of Vietnamese housewives or young girls love discount, coupon and so forth. In some cases, they buy lots of unnecessary thing only because of the gift or sales’ percentages. Understanding this behavior, companies often release a lot of sale promotion campaign as a way to stimulus the buying power and increase sale volume significantly. Image 1. Coupon, discount, free gift set, etc is some example of Sale Promotion On the other hand, as other non – personal selling types, sales promotion playing the vital role on creating and maintaining awareness about the products for the customers.

As a new comer in Vietnam market, Ginvera can apply this method to attract customers’ attention and create a friendly image in their mind. However, due to fact that the sale promotion is often used to achieve tactical objective, hence, unless Ginvera plans to use cost leadership or cost focus, the sale promotion should not be used too frequently. 2. 3. The relationship between communication mix’s elements Generally, while personal selling appears as an intensive and expensive method, it is still consider as the most effective way to building desire, changing attitudes and the most important, convert them to sales and revenue.

Furthermore, unlike other non – personal method such as advertising and Public relation mainly focus on creating awareness but does not affect significantly on customer’s action, the sale promotion have one common with personal selling on hitting the mark of customers’ behavior, convert them into sale but in more public instead of personal aspect. In fact, each elements from communication mix has its own strength and weakness, hence, they can support for each other effectively. Normally, the companies often used a combination of these element in parallel way in order to achieve the most effective results.