1.1. Student Name: Gursharan Kaur Sharon Rachael / HS101184 / Hartford Institute / Advance Diploma in Marketing / 2007 1.

2 1.3 Project Start Date: October 2007, Completion Date: December 2007 Project Title: The development of a market entry strategy for personnel

computer programming, helpdesk and technical services which Micro 2000 Technology Pte Ltd plans to expand in Vietnam. 2. 2.1 Introduction Objective This report is essentially the evaluation result of the market potential of Ho Chi Minh City, Vietnam in which Micro 2000 Technology Pte Ltd is planning to expand on their marketing and sales in computer programming, helpdesk and technical services. The point of contact for this assignment is Mr. Brandon Ng, Managing Director of Micro 2000 Technology Pte Ltd. The company profile can be viewed at (http://www.micro2000.com.sg). This report will discuss the current problems faced by the organization with its competitors and the possibilities of entering newer markets as Micro 2000 plans to expand its business to include consultancy and integration services, distribution and retailing in the ASEAN market and also to expand their business venture in Ho Chi Minh City, Vietnam. The report will also present possible solutions for Micro 2000 to exploit and adopt new marketing plans and strategies for future growth. 2.2 Purpose of Report The rationale behind this marketing proposal is to expand and grow Micro 2000s Technology market share in the ASEAN shores and to establish a global presence in the long term. Whilst assessing the company's current strategies to allow for potential future growth with the company's strengths to exploit environmental opportunities. In an era of increasing globalization, the costs of

labor, transportation, and materials constantly fluctuate. This presents a problem because it creates new complexities and encourages new competition. However this also presents an opportunity because those complexities challenge organization to re-evaluate its pricing process and grow a business. 2.3 Scope of Report The report will look into the economic, social, financial, political, infrastructure and technological influences in new potential markets and evaluate potential markets and financial advantages that could be penetrated in the near future. Foreign markets can be very attractive to a business looking for new customers, especially when its home market is becoming saturated. Such an expansion, however, needs to be thoroughly researched and carefully planned to ensure that the timing is right. To begin with, a business needs to have successful strategies. As with any company or organization, the main reason for being in business is to make a profit. Unfortunately, there are times some tend to lose sight of this goal because they get too involved in running the daily affairs of the business. One key solution to restoring profitability is to review financial ratios to restore financial health. This report examines the factors that make Vietnam stand out among the ASEAN member nations, including the forms of investment that are permitted, the availability of land for factory construction, transport issues, water and electricity supply, communications, labor costs and labor relations, and taxation. 2.4 List of recommendations made and feasibility of them An informal interview was conducted with Mr. Brandon Ng, Managing Director of Micro 2000 Technology. During our meeting it was discussed that their next logical move is to upgrade its technology structure and promote research and new product development in Vietnam. However, many issues have to be in place for the expansion into Ho Chi Minh City, Vietnam with their various key Business Partners in reselling the range of solution-centric products. We discussed the marketing strategy, promotional channels and activities which I

had proposed to boost their company IT services and sales in the Vietnam market. The proposed marketing plan consists of 3 stages: Stage 1 Conducting an internal analysis of Micro 2000 Technology to see how they can best harness new opportunities. Series of analysis covering the organization strategy, organization mission, product and service features and the overall marketing strategies for this new venture. Stage 2 - Macro-environment analysis of beyond the current (forecasting) to grow the business. The analysis being from a market player beyond the current spectrum, political stability, economic situation, social issues, financial stability, banking sector, currency risk and technological infrastructure and their opportunities. Stage 3- The entry into Ho Chi Minh City, Vietnam requires in-depth marketing entry strategies, differentiation strategies, product strategy, promotional strategy, distribution strategy, pricing strategy, performance analysis and funding to campaign for three year period. It will also include Micro 2000 Technology Sales performance analysis and the budget sheet for anticipated investment and returns of this company. 3. Internal Analysis of Micro 2000 Technology Pte Ltd 3.1 Company profile Micro 2000 Technology was established in 1996 and have grown from two to over forty people and now ranked as one of the top Authorized Service provider of Apple Computer, as well as one of the top Business Partner of HP, IBM, Microsoft and Adobe. The founding focus of the company is in personal computer programming, IT Services, helpdesk and technical services. Today they have expanded its business to include consultancy and integration services, distribution and retailing. The company have proven their business acumen that has led to various partnerships. Appointed Courts Service

Centre, Apple GOLD Authorized Service Centre, HP Solution Partner, SonicWall Medallion Partner, Cisco Solution Partner, Intel System Builder, Microsoft Business Partner, to name a few. Micro 2000 Technology Pte Ltd has plans to bring her presence to ASEAN countries such as Vietnam, Malaysia and China. Their current operation consists of 30 staff strength in various departments including Admin, Finance, Sales, Logistics as well as Technical. Their business includes sourcing of all IT equipment for its local resellers as traders. Micro 2000 plans to set-up a team of System Integration Sales and Consultancy division to extend its arm into corporate businesses. The companys mission is market orientated and the long-term aim is to have fully marketing programs to create, communicate and deliver quality service to the consumers. Other than gaining entry into new markets, another aspect Micro 2000 is focusing on is to retain these new markets that will crate a stable profit and economics of scale for the start-up investment. And to do these, she will have to be more effective than competitors in creating, delivering, designing and developing software solutions that help businesses increase performance, reduce cost and build lasting relationships to the chosen target market. (Philip Kotler, 2001:19). 3.2 Organizational strategy (Michael porters generic strategy) With its continuous effort in providing IT solutions, Micro 2000 first support plan AssistPAK was launched in mid October 1998 is an uniquely design bed service agreements plan with flexible and comprehensive coverage to cater to any company with an IT infrastructure. Among the industry's top players, such as IBM and EDS, custom programming services are only one of a multitude of IT services offered, ranging from consulting and training to systems integration and facilities management. Indeed, the broader IT services industry has increasingly evolved towards a one-stop solution model, where a single contractor provides a comprehensive set of computer services to its clients. As such, many non-government statistical sources, and

often the companies themselves, do not separate custom programming from these other activities. Custom programming services are used primarily as an alternative to using packaged software unmodified and hiring in-house programming staff to write custom software. The first use is noteworthy as a reminder that packaged software is often modified by third-party vendors for specific businesses; not all custom software work begins from scratch. The second use highlights that the industry is closely associated with outsourcing technical functions. In fact, it is sometimes described as the IT outsourcing industry. A separate and popular way for companies to obtain programming services without committing to maintaining an in-house staff of programmers is to contract for leased or temporary programmers and consultants. Several large national agencies have special units devoted to placing experienced technical workers. However, unless the contracting firm is itself a programming services provider, such activities are considered outside the scope of this industry. The diagram below is a simple summary of Porters generic strategy where segmentation strategy is use in narrow niche market while differentiation and cost leadership strategies are used open broad market. The choice between differentiation and cost leadership strategy depends on the product nature itself.

Porters Generic Strategies

Reference: http://en.wikipedia.org/wiki/Focus_strategy#Segmentation_Strategy

According to Michael Porter, to focus on a niche market, the best strategy is market segmentation (it is also commonly referred to as focus strategy or niche strategy) and product differentiation strategy. By combining market segmentation strategy with product differentiation strategy, it is an effective way of matching the organizations supply strategy (supply side) to the characteristics of the target market segments (demand side). Micro 2000 Technology looks to gain a competitive advantage through effectiveness rather than efficiency, thus by focusing the marketing efforts on one or two narrow market segments and tailoring the marketing mix to these specialized markets, they can better meet the needs of that target market. Product differentiation strategy describes the process of highlighting the products unique differences to make it more attractive in the target market. This involves differentiating it from competitors products. Differentiation will gives them a competitive advantage over other computer and software programming companies. Micro 2000 cost-effective solutions for maximum service proficiency would benefits the customer if this strategy is to

be successful. If consumers see their services as unrivaled and unequaled, they tend to be more brands loyal and they can charge a premium price at a later stage.

Reference:
Porter, M. E. (1980), "Competitive Strategy: Techniques for Analyzing Industries and Competitors". New York, Free Press Treacy, M., and Wiersema, F. (1993), "Customer intimacy and other value disciplines". Harvard Business Review, Jan/Feb

3.3 Organizational Chart See Appendix A The department responsible for setting up and expanding the business opportunities in Vietnam for Micro 2000 is Mr. Patrick Ee the Sales and Marketing Director. His tasks include, but not limited to: providing assistance in organizing project tasks, making assignments, scheduling staff and workflow milestones, maintaining production logs to ensure jobs are completed within the scheduled timeframe, reviewing deliverables for completeness and quality, preparing deliverables for submission to client, reviewing timesheets of production staff for correct time accounting and task order billing, and reviewing deliverable quantities to prepare reports for project billing. 3.4 Overall marketing strategies The marketing strategy of the 21st century should be steered towards social-orientated marketing, where the focus is on the consumers long-term benefits. To ensure successful marketing of the Micro 2000 Technology services in the international market, they must be able to meet the wants and needs of the targeted consumers. Being a reputable company, they can only market their products and services to lawful and respectable organization bodies, such as government bodies and Multi-National companies. Before they market their products and services, they will have to assess the products

and services nature/ strengths/characteristics and the particular niche market that they want to target on. Adopting Porters product differentiation strategy in marketing IT programming, consultancy and integration services, they have to demonstrate the unique aspects of their products and services to create a sense of value. This can be achieved with a clever integration of the marketing mix, primarily the 4 Ps- Price, Promotion, Place and Product. Differentiation marketing strategy, as explained earlier, is the process of describing the differences between products or services. The objective of differentiation is to develop a position that potential customers see as the product as unique. Differentiation primarily impacts sales performance through reducing direct competition. As the product becomes more different in the eyes of the consumers, categorization becomes more difficult and hence draws fewer comparisons with its competition which will benefit us in the short and long run. A successful product differentiation strategy will move IT services from competing based on price and customer service orientation, (which will be done in the initial stage to aid the market entry) to competing on non-price factors (such as product characteristics, distribution strategy, or promotional variables). 3.4.1 Promotional strategy The method of promotion includes advertising, merchandising and through public relations. The promotional strategy should be built on the need of delivering innovative IT solutions and advanced technical infrastructure that ensures quick start of development process that will exceed customers expectations. Thus it is important to upgrade with technology which is diversified and competitive with technology-laden systems and solutions.
Reference: www.stengg.com/AR2002/finreview.htm

3.4.2 Distribution strategy Micro 2000 Technology being a reputable company can only promote their products and services to lawful and respectable organization bodies, such as government bodies and multi-national companies. The method for distribution that they can consider includes collaboration with various key Business Partners and securing collaboration agreements that has a strong coverage in the local government and multi-national companies. They can also go through different channel to have a complete coverage of this niche market.

3.4.3 Pricing strategy When it comes to pricing their services and products in a foreign market, the points that they will have to consider includes the list price, discounts allowances, payment period, cost-effective solutions and credit. The foreign exchange risk of Micro 2000 arises from operations in foreign countries, as revenue and incur costs generated are denominated in foreign currencies. Presently, Micro 2000s major foreign exchange risk exposures result from anticipated sale and purchase transactions denominated in foreign currencies, primarily in Singapore and U.S. dollars. Thus, to hedge the impact of foreign exchange fluctuations on the profit and loss accounts, all transactions should be carried out in Singapore Dollars if possible. 3.5 Market entry strategy. Successful overseas market entry requires doing business differently. Different business practices, different business values, communication difficulties, sustaining business relationships all create challenging market entry barriers. To penetrate the foreign market, Micro 2000 can start by introducing IT Solutions at international exhibitions, trade shows, delegations and special events. Their web pages on the Internet and to its compiled

database of prospect and customer names will allow easy access in obtaining information on their products and companys profile. To aid market entry into a new foreign country, they can price their products and services as close to their competitor as possible. As a new entrant to industry, prices need to go low in order to entice them to buy. The supplies for raw material may be costly, thus they should constantly look for resources to cut down on the cost. Micro 2000 can choose to join forces with a local business partner to provide efficient, low cost and innovative IT solutions for the country. This will aid the company in penetrating a new market.
Reference: http://www.defensereview.com/modules.php?name=News&file=article&sid=435 Reference: Philip Kotler and Kevin Lane Keller (12E edition) 2001, Marketing Management, Pearson International edition

3.6 Macro environment analysis of Vietnam

Reference: http://www.lonelyplanet.com/maps/asia/vietnam/

3.6.1 Vietnam Personal computer manufacturing Industry Overview: While the attention of business enterprises all over the world has been drawn to Vietnam as a target for investment, Taiwan's ICT sector is exploring opportunities for investment in Southeast Asia. All these factors indirect opens new markets to Micro 2000 as the ASEAN member nations, including the forms of investment diversify to grown their businesses the cost of communications, labor costs and labor relations, and taxation is still relatively low in comparison to established IT areas like India, China Taiwan and Singapore. Growth rate of merchandise exports (% per year) Resource: Asian Development Outlook 2007 Comparison Table: by Runckel & Associates

Country

2002 2003 2004 2005 2006 2007* 2008*

Cambodia China Hong Kong India Indonesia Korea Laos Malaysia Philippines Singapore Thailand Vietnam

12.7 22.4 4.9 20.3 3.1 7.9 2.3 7.2 9.9 3.0 4.8 11.2

17.9 34.6 12.1 23.3 8.4 20.7 21.6 11.0 2.7 15.0 18.2 20.6

24.1 35.4 15.9 28.5 10.4 30.6 11.0 20.9 9.8 24.3 21.6 31.4

12.4 28.5 11.2 23.4 22.9 12.1 31.4 12.0 3.7 15.6 15.0 22.5

26.9 26.0 9.0 20.0 18.1 14.8 50.9 16.9 14.0 18.3 17.4 23.0

14.3 18.0 3.6 16.0 9.8 13.5 15.3 9.5 6.5 10.5 7.9 19.0

9.4 16.0 10.1 15.0 12.0 14.2 31.0 10.6 9.5 10.0 8.9 18.0

*Forecasted for 2007-2008

3.6.2 Vietnams Competitor Analysis Micro 2000 designs cost-effective solutions for maximum service proficiency. Their contracted clients enjoy substantial savings by taking

advantage of their unique business principle. They transfer third party products at cost. Therefore, all their clients will get the combination of the the best product price and the best technical expertise. They offer strategies that use the most appropriate technology to help clients reduce cost, improve profitability and gain market share which other IT companies are not offering. 3.6.3 Vietnams Consumer analysis According to many sources, particularly (Carmel 2003) which provided a highly useful taxonomy for classifying and comparing exporting nations, India, Israel and Ireland are in the top tier for software outsourcing, while Vietnam is classified as being in the fourth tier. Tier One countries, have numerous firms in the 100s or thousands in clusters- actively producing software for export with export valued over $1 billion and have been in this industry for 15 or more years. Tier four countries by comparison have been exporting for five years or less, have companies in the tens of companies and have export revenues of less than $25 million a year.

Reference: IT Industry Department, Ministry of Posts and Telemetric of Vietnam

To determined Vietnams consumer analysis, a customer satisfaction survey form was developed for Micro 2000 Technology (see appendix B). This form will be sent to all their customers to obtain feedback on the services rendered by this company. With the information gathered, Micro

2000 can look at the trends; fix those areas that require improvement, whether the company needs to improve on their products and services. Most importantly, the company needs to provide feedback to their customers and that their answers were appreciated and are being acted upon. That feedback can be individual responses to the customers if appropriate, or it can simply be fixing the things that they tell you need to be fixed. 3.6.4. Vietnams Political Environment A new state constitution was approved in April 1992, reaffirming the central role of the Communist Party of Vietnam (CPV) in politics and society, and outlining government reorganization and increased economic freedom. Though Vietnam remains a one-party state, adherence to ideological orthodoxy has become less important than economic development as a national priority. The most important powers within the Vietnamese Government--in addition to the Communist Party--are the executive agencies created by the 1992 constitution: the offices of the president and the prime minister. The Vietnamese President, presently Nguyen Minh Triet, functions as head of state but also serves as the nominal commander of the armed forces and chairman of the Council on National Defense and Security. The Prime Minister of Vietnam, presently Nguyen Tan Dung, heads a cabinet currently composed of three deputy prime ministers and the heads of 26 ministries and commissions, all confirmed by the National Assembly. 3.6.5 Vietnams Economic Environment The world's largest contract electronics manufacturer, which

assembles gadgets from Apple Inc. iPods to Sony Corp. PlayStation 3 consoles and Nokia Corp. handsets, became the latest company to announce a high tech investment in Vietnam, with plans to spend a massive $5 billion

over the next five years.

The huge investment shows that Vietnam has

continued to increase its allure as a haven for IT investments. Last year Intel Corp. announced it would expand a chip packaging and testing project in Vietnam into a US$1 billion affair, more than triple the size of the original Vietnam's progress in building its technology infrastructure, as well as the need to support demand for its chips as the main reasons for the investment. Once finished, it will be Intel's seventh chip assembly site in the company's global network, which includes Penang and Kulim, Malaysia; Cavite, Philippines; Chengdu and Shanghai, China; and San Jose, Costa Rica. Intel plans to spend over $6 billion by the end of this year on new factories and equipment. All this can only add and enhance the expertise and services that Micro 2000 Technology Pte Ltd plan of expansion to a wider base. 3.6.6 Vietnams Social Environment In the past decade, Vietnam has experienced the rapid transition to the market economy. The Vietnamese government has focused on the promotion of small businesses as one of the top priorities and accelerated to develop the financing system for them, in order to realize the poverty reduction by increasing the employment. While the economic boom has helped more than halve poverty rates, it has also widened the gap between rich and poor, and many risk being left behind. The influx of new business is going to improve the situation for many Vietnamese. 3.6.7 Vietnams Technological Environment Currently, Vietnamese companies cannot match foreign companies in terms of competitiveness, business management, and use of modern technology. I think that the lack of modern technology is the root of all the problems that Vietnamese businesses face today. Every year, two percent of the country's gross domestic product (GDP) is spent on scientific research

and technology development. State-owed companies have less inclination to make use of research results while privately companies want very much to modernize but have neither the expertise nor capital to do so. It is apparent that India and China have been very successful in several areas of technological development. China recently announced that it has dozens of high quality high-tech centers, universities and research institutes. At present, 40 percent of the high-tech products that are in use all over the world were made in China. Scientific and technological development has helped China attain the highest economic growth rate in the world. The economic conditions within Vietnam is now are ripe in comparison to China's experience in development with an economy that is much smaller than that of China. Low production costs (Vietnamese software professionals are about half the cost of Indian equivalent software professionals and have much higher retention rates), coupled with the governments obvious support and favorable incentives make Vietnam one of the most competitive markets for IT investors. Nevertheless, the Vietnam Investment Review (issued on June 26, 2006) also points out that increasing transparency on the software companies part, and more effective policies on the governments part will help boost Vietnamese investing environments rating from foreign investors perspective, and hence, enhance the development of the industry. Small U.S. and other software companies were the first to notice this potential and to actively reach out to Vietnam. Now major U.S. companies like Intel which has major operations in California, Hillsboro, Oregon and Arizona have also realized the potential and have chosen Ho Chi Minh Citys Saigon High Tech Park (SHTP - http://www.shtp.hochiminhcity.gov.vn/) as the location for their chip first chip fabrication facility in Vietnam are also taking note. Vietnam has rightly realized that to get this sort of notice and to continue to build a dedicated core of IT professionals that more need to be done to support IT education in the Ho Chi Minh City region. As such, the National

University of Ho Chi Minh City and Portland State University in Portland, Oregon (www.pdx.edu) are currently exploring collaboration in advanced IT training for National University Master and PhD students and also an innovative mixed education program leading to a joint degree or with substantial teaching instruction based on international education models. The software industry in Vietnam is still in an early stage of development but the market potential is already apparent. Further, government support for this sector and well thought out policies like the recent tie-up of the National University of Ho Chi Minh City in respect to improving IT education at the University and advanced degree level all bode well for the future. This industry is therefore one that bears continued attention and selective investment where conditions warrant. 3.7 Market Entry Strategy into Vietnam: By direct collaboration with various key Business Partners in reselling the range of solution-centric products, Micro 2000 has secured collaboration agreements with multiple Business Partners who has strong coverage in the local government and Multi-National Companies space. Secondly, their firm strengthens its image in the host country because having proven their business efficiencies in programming, designing and developing software solutions which is currently available on a limited scale, would create employment opportunities for the local community which will in turn help boost their GDP and economic growth. Thus mutual benefits can be derived from this investment.
Reference: http://www.business-in-asia.com/asia/asia_export.html

3.8 Problems & Situational Analysis 3.8.1 The problems currently faced by Micro 2000 Technology is their

product line integration and delivering IT solutions to a market that is rapidly growing in the computer programming and software designing industry. This requires discontinuing some services (some loss in revenue) and bringing on new services in this evolving environment and restructuring the product line with some of the services offered whilst tailoring to specified needs in the new market place. 3.8.2 The company has gone through reorganization and moving personnel within the organization and multi tasking. In the computer industry with its continual evolvement and newer technology requires the need for constant integration into newer systems. 3.8.3 The cultural differences that Micro 2000 will face in entry strategy into Vietnam will be the differences between the operational and cultural environment in its home market and the Vietnamese market. 4. Summary of Analysis Micro 2000 offers professional services and solutions draw on their pool of extensive expertise in all aspects of IT. By setting up a new network to enhancing an existing system to developing new extensions, they have the right solution to fit our needs. Their contracted clients enjoy substantial savings by taking advantage of their unique business principle. They transfer third party products at cost. They offer strategies that use the most appropriate technology to help their clients reduce cost, improve profitability and gain market share. Their Network Consultancy Unit offers solutions that include infrastructure design (LAN, WAN, Firewall, Structured cabling), facilitating integration (NAS, Enterprise Storage) as well as internal and external collaboration (Messaging, Mobility, Integrated Fax, SharePoint Services/Portal, Web Design/Hosting).

The company always maintained their focus on delivering IT solutions that are aligned to their business goals. Broad repertoire of solutions fulfills the diverse needs of businesses in a wide range of industries. By matching technology to customers' requirements, their solutions provide value for customers' IT investment. Their solution & Consultancy unit offers solutions such as Server migration, Virtual Private Network (VPN), File Transfer Protocol (FTP), Broadband, Internet/Intranet development, document imaging, QuickTime Streaming as well as color management and Digital Asset Management. For business survival, companies need access to critical IT competencies. By outsourcing various functions to Micro 2000, companies can feel up their corporate resources and increase business continuity and competitiveness. Backed by a proven track record of providing excellent IT services and solutions, Micro 2000's array of solutions adds value and positive gain to its customers' IT investment. This is reflected in the twopronged benefit of "Best Product Price with Best Technical Expertise" giving the customer a competitive advantage. Micro 2000 offer a selection of world-class IT support services that will cover just about every imaginable support to keep an organization's IT operations running smoothly. The company provides both phone as well as on-site help for desktop problem resolution to server support to network assistance. They offer application development with professional development methodologies, tools that enhance productivity. Their Software Development Unit provides design and implementation of the various application components that constitute the integrated enterprise technology platform. Whatever the business size, they can help manage the business. They optimize business performance, cut cost, increase profitability and make precise decisions with timely and accurate data. The industry technology solution experts specializing in short term rental of computer systems, network switches, routers, network printers, wireless products as well as structured cabling catering to customers event. They also

provide manpower in rendering on-site installation and configuration to meet precise events requirement. Technical assistance for on-site standby is also available. 5. 5.1 Recommendations and feasibility Marketing, promotional channels and activities:

There are various ways Micro 2000 can conduct marketing and promotional campaign to promote their services. In order to penetrate the Vietnam market, Micro 2000 can create brand equity. Brands identify the source or market of a product and allow consumers either individuals or organizations to assign responsibility to a particular manufacturer or distributor. Their partners in Vietnam can assist potential customers evaluate the identical product differently depending on how it is branded. Consumers can experience the mix of products and its marketing program. Their partners offer the firm legal protection for unique features or aspects of the services. With assistance from their partners, Micro 2000 can break into the Vietnam market through road shows and Computer and Science Fairs. 5.5.1 The Marketing Communication Mix The marketing communications mix (the specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives) that Micro 2000 Technology will be using are: 1) Advertising (any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor) broadcast and print media, 2) Personal selling (personal presentation by the firms sales force for the purpose of making sales and building customer relationship), 3) Trade shows to send an effective selling message to a large interested audience at one time.

The marketing campaign is only planned for a period of 12 months because of their business arrangements with their partners. Their partners have the strengths and things will get easier after the campaign. Advertising Print Media PC Magazine I insert per month (positioning) Computer Shopper magazine Macword magazine ColdFusion Developers Journal magazine throughout the whole campaign (awareness) Trade shows CeBIT Road Shows Comex Singapore Held annually in Hannover, Germany 1 road show monthly I insert per month (positioning) 1 insert per month 1 insert per month total 12

Reference: Principles of Marketing Eleventh edition by Kolter and Armstrong Pg: 401 Business Marketing Management Eight edition by Michael D. Hutt and Thomas W.Speh Pg: 426 Reference: http://netvalley.com/top100mag.html

5.5.2 Strategy benefits of Communication mix The plan of using print media, trade shows and road shows are to position Micro 2000 Technology as a personal computer programming and IT solutions provider and show its intention of staying in Vietnam for a long term investment. Their business partners will participate in trade shows and road shows to expose Micro 2000 Technology, its consultants designs in software solutions that will help businesses increase performance, reduce costs, and build lasting relationships that will increase future sales.

5.5.3. Computer magazines Micro 2000 will be featuring their products and services in most of the computer magazine for positioning and awareness. The magazines are read by most computer enthusiasts. These enthusiasts pay a lot of attention on the various computer programming and IT solutions that not only appeals to adults but also to students. They are keen to know what the newest technology in computer programming and IT solutions that are available in the field. 5.5.4. Personal Selling The sales and marketing department will be provided with leads and qualify their prospect. The salesperson will approach the respective departments to do his presentation and demonstration. Their salespeople are also its marketing team. This is effective for several reasons: (1) customers appreciate talking directly with salespeople who can answer a wide range of technical questions about methods and features, (2) their salesperson benefit from direct customer contact through gaining an appreciation for the environment and problems of the customer, and (3) the relationships they build through peer-to peer contact are useful in the government agencies. 5.5.5. Trade Shows and Road Shows Trade shows and road shows provide the opportunity for the customers to get hands-on experience. The shows are targeted to a large and interested audience. They are a good platform for exposure. 5.5.6 Business convention trips to Vietnam lead by Singapore government

Singapore Ministry of Trade Development may take the initiative to lead a group of influential people from Singapore for networking. The team will build a relationship with the government bodies. 5.7 Pricing Pricing must be kept competitive in order to market their services in Vietnam. This is because of many firms misconception that they have little choice but to make sure their prices are comparable to those of the competition. An expensive service simply makes their services unaffordable. On the other hand, a low price provides opportunity for expanded product placement, or creative promotional initiatives. Aside from making some pricing strategies more prevalent, with the bench mark it affects the importance of choosing correct pricing strategies by allowing customers to be better informed and more vocal. Smart use of the Internet and available pricing strategies can help boost their companys profile.
Reference:http://www.websitemarketingplan.com/techniques/pricing2.htm

The propriety approach from their partners to interactive provides a holistic picture of needs, requirements, insights, challenges, risks, and opportunities. For each digital communication they produce as shown above, their company interactive maximizes relevance, experience, integration, and efficiency, integration, and efficiency; ensuring that interactive marketing makes a profound impact on their business.

Reference: http://www.phptr.com/articles/article.asp?p=101588&seqNum=4&rl=1

5.8 Sales and Demand Forecast

Projected Sales Forecast

$6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2007 2008 2009 2010

Year 2007 2008 2009 2010 $3,500,000 $4,770,000 $5,177,100 $5,830,230

Based on the sales figures for 2006, we have projected that the sales for 2007 will reach S$3,500,000. The forecast for the next three years will be 18%, 23% and 30% respectively. Based on these projected sales increases, the sales volume will be as illustrated above. The chart illustrates why we think the ambitious sales increases we plan are reasonable: we have had similar increases in the recent past.

5.8.1 Break-even Analysis

For our break-even analysis, we assume running costs of approximately $745,000 per month, which includes rent, and utilities, and an estimation of other running costs. Payroll alone, at our present run rate, is about $435,000. We will need to sell about $1,845,800 per month to break even, according to these assumptions.

Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Unit Sale Average Per-Unit Cost

438 $1,845,800

$4214 $2714

5.8.2 Projected Profit and Loss The most important assumption in the Projected Profit and Loss statement is the gross margin, which is supposed to increase to 30% in the next 3 years. This is up from 15% in the last year. The increase in gross margin is based on changing our sales mix, and it is critical. Month-by-month assumptions for profit and loss are included in the appendices.

Pro-forma Income Statement

2008

2009

2010

Sales Cost of Sales Production payroll Others Total Cost of Sales Gross margin Gross margin percent Operating expenses:

$4,770,000 $1,845,800 $435,000 $745,000 $3,025,800 $1,744,200 35.56%

$5,177,100 $2,050,800 $450,000 $760,000 $3,260,800 $1,916,300 37%

$5,830,230 $2,280,800 $485,000 $798,000 $3,563,800 $2, 266,430 38.87%

Advertising Market Research Trade Shows Total Sales and Marketing Exp

$96,000 $50,000 $340,000 $486,000

$126,000 $55,000 $360,000 $541,000

$170,000 $60,000 $380,000 $610,000

General and Administrative Expenses Leased Equipment Utilities Insurance Rent Depreciation Payroll Burden Other Total Gen.Admin. Expense $30,000 $9,000 $6,000 $84,000 $12,681 $60,660 $6,331 $303,012 $31,500 $9,450 6,300 $88,200 $13,315 $78,615 $6,648 $334,413 $33,075 $9,923 $6,615 $92,610 $13,981 $95,265 $6,980 $397,184

Other Operating Expenses Contract/Consultants Other Total Other Operating Exp $12,000 $3,000 $15,000 $30,000 $3,150 $33,150 $30,000 $3,308 $33,308

Profit Before Interest and Taxes Taxes Incurred Net Profit

$1,744,200.00 $176,984 $1,567,216

$1,916,300 $216,674 $1,699,626

$2,266,430 $283,233 $1,983,197

5.9 Marketing Budget (Assumption)

Category Advertising Magazine Total Cost for Advertising Market Research Professional Consultation Total Costs for Market Research Trade Shows and Road Shows Trade Shows Road Shows Total Costs for Shows Contingency (10%) Total Estimated Budget 5.10 Control

Marketing Budget Plan Estimated Quantity 48

Estimated Amount $96,000.00 $96,000.00 $50,000.00 $50,000.00

2 60

$40,000.00 $300,000.00 $340,000.00 $48,600.00 $534,600.00

All marketing plans need to have proper control to be successful. Micro 2000 will have to set key performance index for every committee member. This is to ensure all objectives for the campaign are been achieved. It can break down into phrases. Phrase 1: Intangible The initial target will be low. The aim is to do market penetration, branding and positioning. The marketing objective is to increase mind share of brand (Micro 2000). Phrase 2: Tangible To meet sales target set by the management and increase market share.

Phrase 3: Correction The management will then reviews and provide solutions. Necessary adjustments will be made on different phrases and correct all mistakes along the way. The committee will hold meetings on a monthly basis. The involvement parties are to submit their reports on how targets are met. How many results have the committee realize in the planning? Department head will evaluate the progress of their services. 6. Final Assessment and Conclusion: 6.1 Summary of key conclusions In summary, based on the analysis contained in this report, Vietnam with its stable economy, political and social environment make it conducive for Micro 2000 to enter newer market. In a competitive international market expanding within the IT industry and making it globally with their partners can help the company grow and break into newer markets. Micro 2000 should work at being a reputable market leader in the IT industry by maintaining: strong research and development skills strong product engineering skills strong creativity skills good cooperation with distribution channels strong marketing skills incentives based on subjective measures be able to communicate the importance of the differentiating product characteristics stress continuous improvement and innovation attract highly skilled, creative people.

6.2

How the organization would benefit from my recommendations Micro 2000 to hire highly educated and experience specialists Reliable organization of software development process Competitive prices Emphasize service and support. The company needs to establish

their business offering as a clear and viable alternative for their target market, to the price-only kind of buying. Build a relationship-oriented business. Build long-term relationships with clients, not single-transaction deals with customers. Become the computer department, not just a vendor. Make them understand the value of the relationship. Differentiate and fulfill the promise. Company cannot just market and sell service and support; they must actually deliver as well. They need to ensure that they have the knowledge-intensive business and service-intensive business they claim to have. They must radically improve their direct mail efforts, reaching their established customers with training, support services, upgrades and seminars.