Marketing strategy of petrolimex gas JSC for bottled liquefied petrolium gas in Ho Chi Minh city 2012 - 2015

Dang Tran Hanh Thong i Final Project - MBAVB3

`DECLARATION

I declare that this final project contains no material that has been submitted to any other

program in other institutes, colleges and universities. This work was done by author

except where due reference is made in the text.

`

Signature: DANG TRAN HANH THONG ____________________

Date: Nov.12th , 2012___________________________________

Dang Tran Hanh Thong ii Final Project - MBAVB3

ACKNOWLEDGEMENTS

First of all, I would like to acknowledge all professors and coordinators who provided

me valuable knowledge and support at Solvay Business School and Ho Chi Minh City

Open University.

I would like to acknowledge my tutor, Dr Hoang Thi Phuong Thao, for her great

assistance, her value feedbacks help me to find out the way to complete this final

project.

I would like to express my huge thanks to my wife who support me and encourage me

to complete this research.

I would like to acknowledge Board of Director and Sale Department of Petrolimex Gas

Company who help me to collect relevant information and database.

And, I would like to send my thanks to all respondents.

Dang Tran Hanh Thong iv Final Project - MBAVB3

ABSTRACT

Purpose: Thanks for the continued growth economic and people’s living standard in

past years and many years are coming, bottled LPG business in HCMC to be a

potential industry and attracting many suppliers into the market. Consequence, bottled

LPG business industry to be a strong competitive industry, it requests players in the

market have to have the relevant marketing strategies for meeting customer satisfaction

and achieving enterprise goals.

Being one of the most well-known brands in the market, Petrolimex Gas ought to

become a leader in market. However, due to lack of efficiency marketing strategies,

Petrolimex Gas could not achieve market share as expectation and investment.

Research the of relevant marketing concept, marketing strategies and find out the

characteristic of the market, customer purchasing habit, main factors affect to

purchasing decision, customer awareness, then the proposal an efficiency marketing

strategy of Petrolimex Gas for resident household segment is the aim of this study.

Methodology: To achieving the aim of study, the three main theories comprising

Swots, Marketing Strategy and Marketing Mix are applied in this thesis. Moreover,

secondary data are taken from desk research to get competitor in formation, identified

market share and analysis internal information. Primary data are taken from expert

interview for learn more the models of bottled LPG industry and mail survey to

understand the customer behavior and perception of customer toward to current

marketing strategy of Petrolimex Gas.

Conclusion & Recommendation:

Through the findings of research, author understands what are the main factors

influencing and playing the most important for both keeping customer loyalty and

acquiring new customers. Besides, author also understands the customer awareness of

Dang Tran Hanh Thong v Final Project - MBAVB3

Petrolimex Gas brand name vs. other competitor brand names; purchasing habit, and

the perception of customer toward to current marketing strategy of Petrolimex Gas.

After understanding the actual situation of Petrolimex Gas marketing strategy and

market situation, a proposed marketing strategy will be recommended for orienting

marketing activities to Petrolimex Gas JSC in period (2012-2015)

Dang Tran Hanh Thong vi Final Project - MBAVB3

TABLE OF CONTENTS

Declaration and Confidentiality................................................................................... i

Acknowledgment........................................................................................................ii

Comments of Guidance Counselor............................................................................iii

Abstract...................................................................................................................... iv

Table of contents ....................................................................................................... vi

Abbreviation ............................................................................................................... x

List of Tables............................................................................................................. xi

List of Figures........................................................................................................... xii

List of Charts ...........................................................................................................xiii

CHAPTER 1 INTRODUCTION

1.1. Project background .............................................................................................. 1

1.2. Rationale of project and Problem statement........................................................ 3

1.3. Objective of Project & Scope of Project ............................................................. 5

1.4. Research methodologies...................................................................................... 5

1.5. Structure of project ............................................................................................ 10

CHAPTER 2 LITERATURE REVIEW

2.1 What is the S.W.O.T .......................................................................................... 11

2.2 Marketing strategy ............................................................................................. 13

2.2.1 What is marketing strategy ............................................................................. 13

2.2.2 Marketing mix strategy ................................................................................... 13

Dang Tran Hanh Thong vii Final Project - MBAVB3

2.3 Strategic marketing plan .................................................................................... 16

2.3.1 Offensive Strategy .......................................................................................... 16

2.3.2 Defensive Strategy .......................................................................................... 18

2.3.3 Market Grow Matrix Strategy ........................................................................ 19

2.4 Conclusion ......................................................................................................... 21

CHAPTER 3 COMPANY & MARKET OVERVIEW

3.1. Macro-economic factors.................................................................................... 22

3.1.1. Population....................................................................................................... 22

3.1.2. GDP, GDP/Capita........................................................................................... 23

3.2. Bottled LPG market analysis............................................................................. 25

3.2.1. Bottled LPG in household in HCM................................................................ 26

3.2.2. Current market size & market share ............................................................... 27

3.3. Petrolimex Gas Joint Stock Corporation introduction....................................... 29

3.3.1. Vision, Mission, Core value .......................................................................... 29

3.3.2. PGC sales performance .................................................................................. 29

3.3.3. Current Marketing Strategy of PGC............................................................... 31

3.4. Competitor analysis .......................................................................................... 37

3.4.1. Competitor overview. ..................................................................................... 37

3.4.2. Competitive advantage analysis ..................................................................... 41

Dang Tran Hanh Thong viii Final Project - MBAVB3

CHAPTER 4 MARKET RESEARCH FINDING

4.1. Respondents Profile........................................................................................... 45

4.2. Brand awareness ............................................................................................... 46

4.3. Brand usage ....................................................................................................... 47

4.4. Purchasing habit and reason for using bottled LPG .......................................... 48

4.5. Factor influencing to purchase decision ............................................................ 49

4.6. Reason for switching brand ............................................................................... 50

4.7. Customer perception toward to PGC marketing plan........................................ 51

4.8. SWOT Analysis................................................................................................. 55

CHAPTER 5 PROPOSE MARKETING STRATEGY

5.1 Marketing Objective .......................................................................................... 57

5.2 Target market..................................................................................................... 57

5.3 Brand Identity strategy ...................................................................................... 58

5.4Strategic marketing plan ..................................................................................... 58

5.5 Marketing mix strategy ...................................................................................... 59

5.5.1 Product – Customer solution ........................................................................... 59

5.5.2 Price – Customer Cost .................................................................................... 60

5.5.3. Place – Convenience ...................................................................................... 61

5.5.4 Promotion – Communication ......................................................................... 62

5.6 Developing a revenue plan & marketing budget ............................................... 63

5.7 Detailed of action plan for one year .................................................................. 64

Dang Tran Hanh Thong ix Final Project - MBAVB3

5.8 Conclusion ......................................................................................................... 65

References ...................................................................................................................I

Appendix I ..................................................................................................................II

Appendix II...............................................................................................................IV

Appendix III .............................................................................................................IX

Appendix IV .............................................................................................................. X