Each country has policies and regulations that ensure that the country is able to sustain its needs. An example of such country is Vietnam. The aim of the paper is….
Sales Planning for Ginvera Vietnam
Contents I. Introduction3 II. The Body5 1. The marketing communication mix5 1. 1. Personal selling6 1. 2. Sale Promotion6 1. 3. The relationship between communication mix’s elements8 2. Understanding of buying behavior9 2. 1. Stimulus10 2. 2. Process15 2. 3. Respond17 3. Environmental and managerial forces affecting personal selling for Ginvera products in Vietnam19 3. 1. External Environmental factors19 3. 2. Internal Managerial factors23 4. Main types of personal selling suitable for Ginvera Vietnam26 4. . In Business to Customer market26 4. 2. In Business to business market27 5. Principle of personal selling applicable for Ginvera Vietnam29 5. 1. Sales professionalism29 5. 2. Negotiation skills29 5. 3. Relationship marketing30 6. The stages in the personal selling for Ginvera Vietnam32 6. 1. Prospecting33 6. 2. Planning33 6. 3. Approach34 6. 4. Presentation34 6. 5. Handling Objection35 6. 6. Closing the sales35 6. 7. Follow up35 III. Conclusion36 Appendix37 Table of images37 Table of figure37 References38
I. 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.
For example, the customer can know about Ginvera’s skin care products’ line through Direct marketing (e. g. through flyers) or Advertising, at this time, sale persons in showroom or through consulting online system appear to provide them more detail about the products. In this process, the sale promotion as first discount can support effectively as a stimulus factor. Level of effectiveness Advertising, PR, exhibition, etc Personal selling O Awareness InterestDesireAction Decision making process Figure [ 2 ]. The supporting of communication elements to each other in nfluence on decision making process (Sources: course book, page 469) 2. Understanding of buying behavior Selling is an art, and salespeople are artists. Mainly focusing on each individual customer, understanding buying behavior appears as the golden key for any salesperson to achieve the customers’ heart both in short term and long term as well as close the sale. In Vietnam, personal selling is still considered as a new comer with most of the customers. However, in near future, it will be more popular and familiar with the customers due to the improvement of the standard of livings.
Twenty years ago, the only thing Vietnamese people care about is how to fulfill their starving stomach, now everything has changed positively. As a result, salespeople are required to understand how the customers think and behavior. One of the models which reflect this process briefly is SPR. Figure 3. SPR model 3. 4. Stimulus 3. 5. 1. Marketing Mix Marketing mix is one of the most popular tools which are used for analyzing about products, price, place and promotion in order to build up an effective marketing campaign. Basically, all these elements influence in customers’ behavior and buying process in a comprehensive way Figure 4. elements of marketing mix * Product: Ginvera’s products diversities from skin care for both men and women, products for kids to households’ products. Living in a tropical country, most of Vietnamese women own an oily or combination oily skin with blemishes. Fortunately, the main rocket of skincare line from Ginvera is exacted from green tea, which is very suitable for working with Vietnamese skin’s problems. Therefore, the company can hope for the welcome from potential Vietnamese customers. Moreover, the salesperson can also base on this competitive advantage to attract customers and persuade them to buy Ginvera’s products.
On the other hand, other product in skin care like such as bio – essence or white radian are also received a lot of positive comments from consumers which can help the salesperson effectively in attracting customers and selling. Image 2. Some products of Ginvera * Place: In Hanoi, the only popular product which can be seen in supermarket and cosmetic stores is Bath products. Beside other popular brands come from Unilever, Ginvera’s products are arranged with other foreign brand such as The Body Shop (UK), Shiseido (Japan), Queen Helen (US), etc.
Obviously, on the reputation’s aspect, Ginvera cannot compare with such brands, however, in the customers’ mind; it partly determines the origin as well as the quality of Ginvera’s products. When Ginvera comes to Vietnam, beside the regular selling in supermarket chain such as Citimex, Intermex, Co – op mart, etc, the company should consider about establishing its own showrooms in shopping malls and plaza not only as way to determine the quality and enhance the reputation of this brand in Vietnam but also provide the effective consult through salesperson team for the customers.
Image 3. Ginvera’ bath products are arranged with other products in Star Supermarket 36, Cat Linh Street, Hanoi (Photo taken in March 27, 2011) * Price: According www. ginvera. com, Ginvera’s product price is pretty high than other popular brand in Vietnam, in both skin care and body bath line. In fact, the price of skin care line is almost equivalent with other famous brands from UK and Korea which is very popular in Vietnam these recent years. Product| Origin| Capacity| Price| GINVERA Green Tea Jade Dark Eye Circles Roll Away| Malaysia| 15ml| S$18. – 320,000VND| Pond’s Age miracle Eye cream| Thailand| 20ml| 200,000VND| Skin food Salmon Brightening Eye cream| Korea| 30g| 350,000VND (portable way)| The Body shop Vitamin E eye cream| UK| 15ml| 299,000VND (showroom)| Moreover, in Vietnamese perception, UK or Korean appears more trustworthy rather than one coming from Malaysia. Therefore, the salesperson should point out some convincible features of the product to persuade the customer that the money they given worth with the effectiveness that the product will bring them. * Promotion: At this time, the products from Ginvera in
Vietnam are imported directly from Malaysia through import countries with limited kind of product and quantity. Because this reason, the products are not got the promotion in an appropriate way, except the discount from the supermarket chains where it is sold. As a result, even the Ginvera’s bath products are presented in most of big supermarkets, it does still appear hardly for customer to notice and give them a try. Moreover, promotion also plays an important role in stimulus customers open their pocket, even in case they do really need the products or not.
Image 4. In Malaysia and Singapore, Ginvera ask some famous artist to be their spokesperson in promotion campaign 3. 5. 2. The social influences The social factors which have the most powerful influence on customers’ buyer behavior as well as buying process include: culture, social class and reference groups (family, friends, etc). * Culture: One culture factor that effect on the Vietnamese customers’ choices is preferring – foreign – product mind. Accept Chinese products, every product which have foreign label are welcomed in Vietnam.
Coming from Malaysia, Ginvera can expect for the similar welcome from potential Vietnamese customer. On the other hand, Ginvera’s products are produce locally in Malaysia, where some famous cosmetics companies such as Maybelline (US) established their factory. The salesperson can focus on this point to persuade the customer buy the products. Another factor coming from the preconception about the price of the products: the higher must be the better which can appear as an advantage for Ginvera. Beside, the different buying culture between the geographic areas should be care about by salesperson in order to win customer heart.
While Northern people have to consider carefully before buying anything, the Southern people tend to open the pocket easily when they feel that they like the product. Therefore, understanding these behaviors will help salesperson deal with customer more effectively. However, there is a very negative preconception about personal selling exist in Vietnamese mind. Some years ago, when the personal selling started in Vietnam, a lot of deceptions happened in which swindles play salesperson and took a lot of money from unluckily customers.
This fact lead to antipathy eye look stares in any salesperson that rings the door bell. Therefore a direct marketing type like this should not be deployed in Vietnam. More details will be discussed later in this report. * Reference groups: In fact, reference groups can be family, friends, etc. Obviously, the review of products coming from other users, especially acquaintances, will appear more trustworthy rather than the introduction from salespeople. In recent year, Google has made information become more accessible.
As a result, women do not need to wait the salesperson provide information about the products. Just by a click, they can find out a lot of comment about the products through beauty blog, products’ review pages from magazine and the most popular now is forums. The beauty forums where women gathered to exchange information about products, beauty methodology always receives a lot of care with considerable high views. Naturally, women do easily fall in love with some products just because of positive feedbacks from other women.
In this case, the relationships of customers as well as peer group’s pressure should be taken advantages by salesperson. One of the effective ways is referencing policy which means after selling the product to customers, the salesperson of Ginvera should ask them for feedbacks but also recommending for other friends. * Social class: Actually, about twenty years ago, investing money on the beauty care appears as something very luxury and dreamy that only high – class women can think about. Now, everything has changed due to the improvement of living standard.
Understanding the potential demand, cosmetic companies given out various line of products from popular line to luxury one, which can satisfy any women who care about beauty. In Ginvera situation, the target segment can be middle and high income women who live in mega cities and cities like Hanoi, Ho Chi Minh City. 3. 5. Process The next element of SPR model mentioned about the process. While the first S mostly focus on external factors influence on buying behavior of customers, the P elements mostly focus on the internal ones where the personality of the customers as well as psychological influences play important role. . 6. 3. Personal Influences There are many personal factors can influence on the buying behavior of the customers, includes ages, income, gender, living style and so forth. These factors divide customers to different segment with different target products. In this situation, the salesperson needs to understand deeply and comprehensively about these differentiations, hence, they can satisfy every customer by their appropriate consults and also close the sale. The different between ages lead to different thinking and mind and different care.
Jumping out from sour purity, a lot of Vietnamese girls from 18 – 24 years olds meet with oily and blemishes skin problems. Unfortunately, the pollution environment in Vietnam pushes everything in significant worse situation. Givera’s green tea skin care line can working well with these problems. One positive thing that, these girls are young and free to trying new thing, even they coming from Malaysia rather than other famous brand of Korea or Europe. One the other hand, women who walks over 30 years old keep their attention to wrinkle and anti – aging problems where the bio – essence can uphold their power.
However, these women often consider very carefully before open their pocket for products coming from Malaysia due to the preconception. Income is another factor that the salespeople should care about. High income does not means that they are always ready to burn their money immediately after listening palatable consult from salespeople. According to the price of Ginvera products, the target segment should be middle and high income customers. However, it does not mean that the salesperson only care about one high – income lady who comes to the showroom after an low – income young student who comes first.
Obviously, the student can earn high income in the future and become a potential customer. More dangerous, after being ignoring, the young student can leaving negative comment about the sales team of Ginvera with other people she know and burn the reputation of the company. 3. 6. 4. Psychological Influences Why people buy? They buy for both practical and emotional reasons. Everything is presented by the golden word “motivation”. People buy something they need result from a lack of something desirable. For example, a girl with dry skin needs moisturizer cream in the winter.
In other situation, some other girl wants are need learned by other person; hence, they use a lot of products so that they can give them an appropriate review on. In this aspect, the influences from reference groups also uphold their power as this report discussed above. For example, a girl who need to find a whitening cream, she find out a lot of recommendations from Internet through beauty blogs, beauty forums, etc. Obviously, these recommends appear more trustworthy than consult from salesperson, in spite of the fact that everybody has different skin.
Therefore, salesperson needs to get a good hold of information through Internet in order to handle in every situation and satisfy the customer. The next factor is “Economic needs” which means the best value for the money. When people consider buying something, they will wonder if the money they pay worth the product they purchase, especially in the inflation storm in this time. However, in some cases, some girls and women cannot control how much they spends on beauty care stuff such as clothes, shoes, skin care stuff and so on. As a result, they are willing to open pocket even they does not really need the products or not.
In this case, the salesperson from Ginvera can use some special techniques to close the sale before the customers change their mind and burn their money on something else. The most important factor under psychological influences is buyer’s perception. This perception can come from customers’ past experiences or from the knowledge they learnt. The modern women have more chances to understanding bout beauty care rather than the women who come from last decades. As the development of the Internet, the customer can access information about the product only by one click.
Therefore, salespeople always have to keep in mind that, the customer are testing their knowledge about beauty care as well as the products and close the sale or not depend on the quality of their consultation. The most important thing is the salesperson should providing the disadvantages instead of hiding them in order to provide consult effectively. 3. 6. Respond Figure 5. Buying process Each step in buying process is influence significantly by both internal and external factors. As this report discussed above, for example, the first step – problem recognition is influence by the psychological factor named motivation.
Meanwhile, the next two steps: information search and evaluation of alternatives are influence by social influences such as culture and especially the references groups. After these stimulus and process steps, customers will respond by making decision, buying or not buying. The respond behavior can be expressed through buying behavior as well as buying practice or post purchase behavior. Normally, the customers, especially women are easily to fall in love with the products after hearing lots of positive review from other users or palatable sentences from salesperson.
It is the golden time that the salesperson hold in order to close the sale before the customers can change their mind. However, in this time, instead of convince the customers that the products is 100% perfect and they need to buy it, the salesperson better use the technique named “push and pull”. Obviously, “You do not need to buy it immediately, but I am not sure that this amazing moisturizer will be still available or not when you come back” appears more effective than “You must buy this moisturizer before it is out of stock”.
Ginvera’s salespeople need to keep in mind that the decision belongs to customers instead of them. Therefore, the customers will feel that they are respected and will not feel regret after buying products. After buying and using the products, customers will have feedback for the products, even if the product works for them or not. It is the time for company to collect information and provide after sale services. One call asking about the feedback will satisfy any customers because they can feel that their opinion is valuable with the company.
In these call, the salesperson should ask the recommendation for other customers. Maybe, this product does not work well with the customers, but it does not mean that they will not say something positively about the product or the service to other people or even comeback to Ginvera to choose another products. Therefore, it appears as golden chances for the salesperson to build up long – term relationship with customers and develop other new relationships. 3.
Environmental and managerial forces affecting personal selling for Ginvera products in Vietnam In order to establishing effective marketing planning for enthusiastic sales team, Ginvera Vietnam must be identify what environmental factors that effect on salesperson as well as personal selling process. Basically, the marketing environment can be divided into two parts which are external environment and internal management. 4. 7. External Environmental factors 4. 8. 5. Macro factors In order to analyze macro factors effectively, this report will use the PESTEL model by Michael Porter. Figure 6. PESTEL model Politic and Legal: Vietnam is a socialist republic country with only one Party: Vietnamese Communist Party. The unity in political system makes Vietnam appear more potential with a political environment stably without any significant signs of terrorism or civil war. In addition, Vietnamese government has built a Law on Foreign Investment which occurred from 12/11/1996 in order to help foreign firms like Ginvera can approach the Vietnam’s business environment easily. However, the import tax for cosmetic and skin care product still stay in 36%, higher than other South East Asia countries from 4 to 5 times.
Therefore, the cosmetic price in Vietnam still stays in high place compare with customer pocket. * Economic: In 2010, Vietnam’s GDP increased 6. 78% compared to 2009 while the number of the first quarter in 2011 decreased to 5. 43%. According to the delighted number, Vietnam stills a potential and charming destination for foreign investment. However, the inflation still maintain in high peak which is forecasted at 9. 5% according to the World Bank. Moreover, the increase in dollar exchange rate, the petrol and the electricity make the population tighten their belts.
In this case, cosmetics and beauty care stuffs will enter the luxury goods list that people will be consider very carefully before open their pocket. As a result, Ginvera salespeople will meet more hinders in order to persuade customers buy and use their products. * Social: Vietnam has a high population with over 86 million people. Therefore, with stable and advantaged business environment, Vietnam appears as potential market with any foreign investor due to the potential demand, and Ginvera Vietnam is not a special exception. Additionally, the Vietnam population is considered as the young population level with 55. % populations in working age who have open mind and feel free to try on new things such as Ginvera. Moreover, the living standard of Vietnamese people is improved significantly in recent year, hence, people have more chances to care about beauty as well as approach high – quality products. For instance, the online cosmetic market through portable way in www. muare. vn, www. enbac. com, etc, is operating in high degree, reflect the tremendous demand of this potential market. * Technology: Infrastructure in Vietnam is quite adequate with enough developed transportation system.
Therefore, Ginvera Vietnam does not have to meet with any significant difficult in transport and deliver goods through distribution channel to the customers. Moreover, technology plays an important role in the communication between the company and the customer. The development on the telephone and especially the Internet bring the change in purchases routine of customers. Instead of going to the far store to buy anything buy cash, the only thing customer have to do is make a phone call or a click, transfer money through banks and wait for goods delivery.
Therefore, the company should develop the online selling system in order to give benefit to the customer, make them satisfy and building long – term relationships with them. Moreover, Ginvera should establish a consultation online system with professional sales team who trains carefully. Beside the consultation functions, this system is also used effectively for providing after sales services for customers as well as collect feedback from them. * Environment: In fact, all the products of Ginvera are imported directly from Malaysia.
Therefore, they do not need to care about the manufacturing environment criteria which imposed by Vietnamese government. However, the products from Ginvera still have to satisfy the minimum safety standard of Ministry of Natural Resources and Environment in order to enter Vietnam. In other word, the ingredient of the products must not contain toxic chemicals which are prohibited in Vietnam. In this case, Ginvera’s sales team has to understand this fact as the essential information about the products in case some hard – to – please customers can ask about. 4. 8. 6. Micro factors
According to Michael Porter (1996), there are five basic competitive forces which is considered as the micro environment influence on company, includes: bargaining power of customers, bargaining powers of suppliers, competitors, threats of substitutes and threats of new entrants. In order to determine the attractiveness from beauty care industry as well as understanding the intensity of competition in right way, Ginvera Vietnam should analyzing the micro environment by applying 5 forces model. Figure 7. Michael Porter’s 5 forces * The threat of new entrants: In beauty care industry, it appears not so difficult to entering the market.
For instance, a girl can produce natural handmade skin care product such as rose toner, waki pumpkin jelly, handmade soap, etc and open a shop online through internet. With small economic of scale, the shop does not need construction permit in order to operation. However, these small shops appear not power enough to compete with well – known brands. In other aspect, with significant bigger economic of scale, everything has changed. The required capital for establishing a company is not low; adding with complicated produces can keep the threat of new entrants not so high. The threat of substitute product: Handmade beauty care products which are produced 100% from natural ingredient appear once more time. However, Ginvera’s products are also exact from natural material such as green tea; bring more customers more convenient in packaging with longer expired time. This fact appears advantages of all industry beauty care product that the salespeople can point out for customer. Therefore, the threat of substitute product remains low level. * The bargain power of buyers: Vietnamese market is considered as a potential market with more than 86 million people.
With such prices, Beside Ginvera, the customers have more choices on other well – known brand name from Europe, USA, Korea, Japan, etc. Moreover, the switching cost in beauty care is not so high that a girl only loses about some hundred thousand VND to change her skincare products. Therefore, the customers are easy to change from their old skin care or household products to Ginvera, but also easy to change from Ginvera to another skin care or household products. In this situation, the bargain power of buyers stays in high level, which require appropriate selling and after selling policy from the company as well as salespeople. The bargain power of supplier: Due to the fact that, all Ginvera products will be imported to Vietnam, hence, the input of the company totally depend on the headquarter in Malaysia. Therefore, the bargain power of suppliers in this case remains in high degree. * The current rivals: The first rival groups come from beauty care industry. In the recent 2 years, the entering of well – known brands from Korea such as Skin food, The Face shop, Natural Republic, Baviphat, Tonymoly, etc through portable way as well as showrooms make the cosmetic market blooming.
These brands are considered affordable with good quality, compared with high – end brands such as SKII, Chanel, etc. As a result, a new comer like Ginvera will meet with fierce competition in this potential market. The second rival groups come from bath and household products and the products for kids. One tour around the supermarket indicated a lot of sub brand name comes from Unilever Corporation. In other word, this company are dominated the market and appear as the most redoubtable rivals of Ginvera. 4. 8. Internal Managerial factors
The Managerial force includes factors inside a company that impact its personal selling significantly, includes The capacity of the management, the structure of the company, the influences by other department, the selling strategy in the market, and the reward policies for sales people. 4. 9. 7. The capacity of the management Selling Manager of Ginvera is the one who build up the selling strategies and policies as well as the sales planning for the company in Vietnam market. As a result, their capacity appears as one of the most important managerial factor which affects the personal selling of the company.
If management has well capacity, they will give out right strategies and policies that make the personal selling for Ginvera achieve the success. On another case, if their capacity is not good that they brings out wrong decisions in their strategies or policies, the sales team of Ginvera will face with many obstacles when they perform their job, hence, cannot bring sales and revenue for the company. 4. 9. 8. The structure of the company The organizational structure has a remarkable impact on any single operation activity of every company, and Givera is not an special exception.
Besides, it will effect on how the department work together in a comprehensive system to run the company well and achieve good result. If the structure is too complicated, Sales people will finds hardly to cooperate with other departments, hence their selling process not only become very complicated but also waste a lot of valuable time. On another hand, if the structure appears too simple in which sales people may have to handle many tasks at the same time, therefore, they cannot concentrate in develop more sales. As a result, Ginvera Vietnam has to establish an appropriate structure which suitable and advantageous for the sales purpose. . 9. 9. The influences of other department Each company operate in comprehensive system in which each department influence on operation of other departments in two – side way. Therefore, the operation as well to the performance of sales department can be influence significantly by others such as Finance, HR, Marketing, R&D, etc. For example, the sales team is considered as the soul of selling department that they are people who decided the success of business by converting the selling plan to sales, revenue and profit, products to money and reputation.
In fact, these talented and enthusiastic people are recruited and trained by Human Resources Department. On the other hand, this department also decides the salary and reward policy for the sale teams, encourages them to perform their best ability. 4. 9. 10. The selling strategy in the market The selling strategy appear as the guideline for sales people to sell Ginvera in Vietnam market. If the strategy is appropriate with the Vietnamese market, personal selling can uphold its power effectively and bring more revenue to the company.
For instance, in case Ginvera target its segment for the skin care products correctively, the sales people can take advantages of the blooming and demanding market, and bring more sales to the company effectively. On the other hand, if the targeting is wrong, even if the sales people try all their best, they still meet with significant hinders when they sell the product to customers. Therefore, a judicious selling strategy play the vital role which decide partly the success of the business, hence, it must be carefully researched and issues by the management of the company. . 9. 11. The reward policy for salespeople Basically, the reward policies from Ginvera will influence significantly on the sales team as well as the revenue bring by these team. Normally, reward is considered as the biggest motivation for any sales person to perform their job. If the reward policies of the Ginvera are acceptable by the sales people, they will be motivated to try their best and bring more sales to the company. Meanwhile, if the reward is not worth the effort of sales people, they will not try much and have fewer sales.
This is the reason why management of Ginvera has to consider the rewards policies for sales team as a very important elements in their marketing and selling strategy. 4. Main types of personal selling suitable for Ginvera Vietnam The personal selling is considered as one of the elements of communication mix. Today, the personal main selling types can be classified based on the selling environment or based on the way salespeople approach the customer. Each type have different characteristic with different advantages and disadvantages.
As a result, not every method appears applicable and realistic in case of Ginvera Vietnam. In order to finding out the what is appropriate personal selling types that the company should apply, these method will be analyzed and compared with each other. 5. 9. In Business to Customer market Based on the selling environment, personal selling is divided into 3 main types: telemarketing, over – the – counter selling and field selling. Telemarketing is a kind of direct marketing in which the salesperson using telephone to marketing the product with customers and persuade them to buy products or use services.
In Vietnam, this type of selling has entered the market in some recent years. Through business relationships, the salesperson can have contact of potential customers and phone them to market the product. However, with most of Vietnamese people, this type of selling appears so annoying that burn their valuable time and disturb their working when salesperson keep on calling and calling. Another method which is also not welcomed by customer is field selling. In fact, this type of personal selling is very popular in other foreign countries such as Malaysia.
However, the significant number of deceptions cases which are issued by fake salespeople when fielding selling was adopted in Vietnam some years ago has create an lack – of – sympathy preconception among Vietnamese mind. Moreover, this type of selling can also make people wonder about the quality of the products as another preconception. While in both telemarketing and field selling, the salespeople go to the customer, in over – the – counter selling, the customers go to the salesperson. The sales team is suggested to e the salespeople who work in showrooms, supermarket chains and through telephone and online consulting system of Ginvera Vietnam. In fact, most of Vietnamese customers feel familiar with this type rather than telemarketing or field selling. There are two type of salesperson in over – the – counter selling, include order taker (a salesperson who only processes the purchase that the customer has already selected) and order getter ( a salesperson who seeks to actively provide information to prospects, persuade prospective customers, and close the sales).
One technique that the order getter can use that suggestion selling, in which the salesperson points out available complementary items in line with the selected item, in order to encourage an additional purchases. For example, when a customer chose the Green Tea Whitening Marvel Gel, the salesperson can suggest other products from Green Tea line for customer to get the best result. Therefore, in this case, the salesperson does not only satisfy customers by her consultation but also increase the sales volume significantly.
On the other hand, if Ginvera Vietnam establishes the showrooms chain in shopping mall like Vincom plaza, Diamond Plaza, etc, it will create a high – quality products awareness among the customers. 5. 10. In Business to business market In Business to business market, Ginvera Vietnam should change the application of personal selling type in order to achieve the goal of sale volume as well as profit. In this situation, customers can be retailers such as big supermarket chain (Metro, Fivimart, Citimart, Intimex, etc) or distribution companies.
With these customers, they always love the discount price in order to achieve profit from it, therefore, the selling policy that company imposed must be different. However, as well as single customers, the more important is building long – term relationships with customers. In Vietnamese market situation, the better choice for Ginvera Vietnam is field selling. Image 5. Big supermarket chains appear as potential business customer of Ginvera Vietnam Field selling is defined as a direct marketing method, which involve calling on prospective customers in either their business or home locations.
In business to business market, it means that the salesperson needs to come to the company to introduce the product as well as establish the relationship with these customers. Firstly, the intermediaries, especially the supermarket chain appear very open and welcome product coming from foreign countries which has clear origin. On the other hand, some supermarket chain has already arranged Ginvera products on their cases through import companies. Therefore, they are open to receive the origin product from Origin Company.
Secondly, the number of big supermarket is not so high; hence, Ginvera Vietnam can meet with the human resources for this market but still saving the expensive cost for personal selling types. Thirdly, the customers in this case are big size companies, therefore, they will required the discount percentages as wholesales price. In this case, it is necessary for Ginvera to have professional salespeople who are flexible enough to deal with these customers. 5.
Principle of personal selling applicable for Ginvera Vietnam In order to achieve the goal of selling, the sales people from Ginvera Vietnam need to obey all the essential principles of personal selling, include: sale professionalism, negotiation skills and last but not least, relationship marketing. 6. 11. Sales professionalism The aim of sales professionalism is to provide the salespeople with a basic understanding of the sales process and to demonstrate skills and techniques used during this process to ensure that there is a professional approach employed at all times.
The sales professionalism is considered as the first vital principle that all salespeople are required to obey in order to achieve the sale. The professionalism of sales team can reflect through the selling process actively, from how the customer approaches the product, handling the sales to provide after selling service. Firstly, every salespeople need to care about sales job as the long – term career, even if they do not plan to become a fulltime salesperson. They have to keep in mind the word golden key word “professional” all the time.
Moreover, with the professional mind, the salespeople will aware to learn how to convert the mind into actions, and learn experience through doing effectively. In addition, the customers must be considered as the center of selling process, based on the market – orientation that Ginvera imposed on the company. Customer is the king, and they need to be taken care and cheated as a king. By that way, salespeople can satisfy all the customers even products are sold or not. Besides, the salesperson must be accountable to his customer and maintains a professional attitude. 6. 12. Negotiation skills
One of specific characteristics of sales jobs is working with people. Thus, the sales people need to be trained very carefully about how to negotiate effectively with both business and single customers. In fact, each group of customers has different characteristics as well as different interests that required the difference negotiation skills. For example, both intermediaries and single consumers of Ginvera desire to buy high – quality products with cheap price. In fact, while the intermediaries love low price base on the profit objectives, the consumers care more about how the products can work effectively for their skin.
Moreover, the salesperson needs to build up the required flexibility in order to handle with all different selling situations. In every situation, salesperson needs to go over the negotiation without making concessions which will affect to the profit of company. However, in some case, the salesperson must be flexible that suffer lost or reach to break even, in order to building long – term relationship with customers, especially with business customers. In theory, there are two kinds of exchange in marketing: routinized exchange and negotiated exchange. Routinized exchange is to manage program of pricing and distribution.
On the other hand, in negotiated exchange, price and others term area set via bargaining behavior. 6. 13. Relationship marketing Practically, marketing as well as selling does not only focus on increasing the sales volume, the revenue and the profit as much as possible. The other important thing is building long – term relationship with customers by providing high – quality and affordable product as well as a good follow up policy after selling. In order to build relationship with customers effectively, the salespeople from Ginvera need to learn how to be a friend with customers.
In this case, the sales person should put himself on the customers’ position, think as the way customers think, care about their demand from little thing. By that way, they can provide the customers appropriate consultations and introduce to them which product is suitable for their problem. In beauty care industry, the harmony between the product and customers’ skin play the vital role in process of achieving the best result that one product can work for a this person’s skin does not mean it will work well with all others.
As a result, when the salesperson consult in whole – hearted and friendly way, the customers will fell that they are cheated as friends that the salesperson wants to provide the best and suitable thing for them, instead of to be cheated as customers in term of sale volume and money. Therefore, even in case they cannot find out the appropriate products for their problems, customer still feel satisfy and come back to the Ginvera’s store again. On the other hand, long – term customer can bring to the company stable revenue year by year by their repurchasing. Image 6.
Relationship marketing network between salespeople, customers and customers. Moreover, one relationship between customer and Ginvera can be developed to a relationship network with other customers. For example, if a customer bought and use a skin care product regularly and receive the good result, she can leave a review on her blogs or leave a post on beauty forum to share her experience. Therefore, due to the fact that women are easily to fall in love with beauty care product, a lot of other girl will be attract and desire to buy and use this skin care product.
However, if the customers complain about the product or the quality of service from company, other potential customers will fell apprehensive when she wants to buy and use the product. Therefore, the salesperson need to have the professional skill to satisfy all the customers, even they decide to buy the product or not. 6. The stages in the personal selling for Ginvera Vietnam Figure 8. The sales process Basically, every sales person has to follow all steps described above in order to achieve the sale as well as satisfy the customers.
Today, Ginvera produces more than 90 products from top to bottom ranging from shampoo to diapers. Therefore, each range of products need different requirement on personal selling. In order to analyze the important stages effectively, the single product range Ginvera Green Tea Skin Care will be chosen as the target product. Image 7. The Green Tea product line of Ginvera 7. 14. Prospecting The first step of selling process is identifying prospecting or qualifying products’ potential.
In definition, a prospect is a lead that has been qualified in terms of needs or want, ability to buy, authority to buy, accessibility, and eligibility. As this report mentioned before, most of Vietnamese women have oily or combination oily skin with blemish. These annoying spots drive women crazy that they are looking for suitable products which can defeat consequences from skin problems. Basically, green tea appear as an natural remedy which contain some actives elements which is very good at killing bacteria, reducing blemish and prevent them comeback.
Exacting directly from green tea, Ginvera green tea skin care line is consider as an appropriate choice which can work very well with Vietnamese skin. Moreover, Ginvera comes from Malaysia, an Asian country. Therefore, they understand they environment as well as the characteristic of Asian skin, hence, they can research and release skin care products appear suitable with Asian skin. Moreover, according to www. ginvera. com, the price of products is quite equal to the same line from other brand such as the Body shop (UK) or Skin food (Korean) which are affordable for middle to high income.
In case Ginvera enter Vietnam, the customer can buy the product easily from showrooms or even online, hence, the authority as well as the accessibility does not appear as hinder for both customers and company. 7. 15. Planning The next stage in the personal selling process is planning or pre approaching. The cautious preparation will help the salesperson approach the customers and close the sale easily. Firstly, the sales team must be train carefully in term of understanding about products as well as technique on selling art.
Working as professional salespeople, they have to have ability to provide customers the essential information about the product and handle them effectively to achieve the sales. The salesperson also needs to understand exactly the target prospects as well as the analysis between Ginvera Green Tea and rival products. From that, the salesperson can build up themselves enough knowledge and skills to work with customers and brings sales and revenue to Ginvera Vietnam. Last but not least, the company management should issue the appropriate selling strategy and planning in order to help the sales team perform the work in best condition. . 16. Approach Approaching customers is an art in which the salesperson need to achieve the acceptance from the customers that they are willing to listening about the products. In many cases, the salesperson through telemarketing receives the “busy” word as “cop” sound from customers. Therefore, where are the solutions for this problem? One of the answers is the salesperson should try to be the customers’ friends instead of playing a salesperson’ role who are trying to sell products to customers. The friendly attitude with smile will make the customers feel comfortable and feel free to share and receive information.
Especially, in beauty care industry, using salesperson as promotion girl or guide appears popular by its effectiveness. For example, the girl who owns a trouble skin with blemish will be attracted strongly by people who have the bright and smooth skin. This method will help salespeople approach the customers more easily and consult to the customer under sharing experience form as friend to friend. Ginvera should apply this method as one of marketing tactics at the same time with selling operation. 7. 17. Presentation
After approaching customers, it is the time for salesperson introduce to the customers about Ginvera Green Tea products. The presentation should display enough essential information about the products, emphasize on how the products will work effectively with customer’s skin problems. However, the salesperson also should reveal the disadvantages of the products, instead of hiding them or especially lying customers. The development of Internet bring customers a chances to access information about products, including both advantages and disadvantages features recommended by other users.
Therefore, the sales team always has to keep in mind that the customer might test their knowledge about products as well as beauty care. Moreover, lying to customer mean salesperson do not respect customers, hence, break the relationship between company and customer? On the other hand, the information should be providing just enough for the customer in order to stimulus them find and ask more information about the products or even give them a free trial. 7. 18. Handling Objection After one – way communication, the process will change to handling objections stages.
In other words, it is the time for salesperson to persuade the customers to buy and try on the products. Before making purchasing decision, every customer will present objections to salesperson (i. e. “I need skin care products which can defeat my strong and annoying blemishes”). In this case, the salesperson who was trained in the skills of handling objections will have to know handles them in a confident way. Ginvera’s sales person has to put themselves on customers’ position and consider their care and demand.
Therefore, they can understand what customers need and wants, hence, they can consult them effectively. This is considering as golden rule for any salesperson. In case the appropriate handling objective method is applied, the salesperson can provide more information about Ginvera Tea Tree products, and convert the customers’ objective to the reasons why they should try on and buy the products. 7. 19. Closing the sales After handling the objections, the salespeople have to decide when is the right moment to close the sale before the customers change their mind.
There are many types of closing the sales can be applied, include: direct close, assumptive close, summative close, demonstration close, negative close or special concession close. Based on the personality as well as characteristic of the customer, the salesperson from Ginvera will decides which one is appropriate method to apply. Closing sale occurs when the salespeople meet with prospects’ desire. Through the sign from prospects such as asking for warranty or checking the money left on wallet, the salesperson can catch the chance to close the sales. Moreover, the salesperson can use some professional technique to increase the sale.
For example, after persuade a girl to buy and use Green Tea products, the salesperson can ask customers if she had sisters or close friend meet with the same problems. 7. 20. Follow up The final stage of personal selling process is follow up or providing after selling service. In fact, Vietnamese companies often postpone this stage or display it under warranty form. Actually, this stage play the most important role in maintaining long – term relationship between salesperson and customers as well as the company and the customers. Ginvera Green Tea is a skin care product line.
Therefore, after the customers buy the product, salesperson should make a warm phone call or sell an email to ensure that the products are used in right way and customers do not caught allergic by products. In addition, based on the 21 days of skin resurrection circle, after that period of time, salesperson should also arrange another phone call or email to check out whether the products work well and receiving the feedback from customers. As a result, the customers will feel they are respect and care 100% that the salesperson and company take all responsibilities with their products.
Therefore, a good following up stage can help Ginvera have stable revenue through repurchasing sale volume by the long – term customers. In case the products do not work with customers, it does not mean they will not leave the positive comment if the quality of service satisfies them. III. Conclusion Entering WTO in 2007, Vietnamese government has to follow exactly which committed to WTO including open the market and reduce the import as well as tax rate for foreign product imported to Vietnam.
As a result, Vietnamese appear as a potential market with foreign firm, including which work in beauty care industry like Ginvera Vietnam. In fact, in order to enter Vietnamese market successfully, it is necessary for the company to do some market researches and build up a reasonable, realistic and suitable business strategy as well as effective functional plan. One of the most important things must be selling and personal selling plan. From the beginning, this report mention about the communication mix as well as the important role of it in Ginvera Vietnam case.
From this element, the personal selling has been chosen to identify and analyze deeply, include some relevant topics such as the application of understanding buying behavior, the factor influence on personal selling process, proposal for appropriate personal selling types in B2B and B2C market, the principle of modern salesperson and analyzing about stages of this process. However, understanding about the application of personal selling appears not enough for the company to win Vietnamese customers heart.
In order to achieve this goal and earn money from Vietnamese pocket, the company must plan to do more than that. Appendix Table of images Image 1. Coupon, discount, free gift set, etc is some example of Sale Promotion7 Image 2. Some products of Ginvera11 Image 3. Ginvera’ bath products are arranged with other products in Star Supermarket 36, Cat Linh street, Hanoi (Photo taken in March 27, 2011)12 Image 4. In Malaysia and Singapore, Ginvera ask some famous artist to be their spokesperson in promotion campaign13 Image 5.
Big supermarket chains appear as potential business customer of Ginvera Vietnam28 Image 6. Relationship marketing network between salespeople, customers and customers. 31 Image 7. The Green Tea product line of Ginvera32 Table of figure Figure 1. The Communication Mix5 Figure 2. The supporting of communication elements to each other in influence on decision making process (Sources: course book, page 469)9 Figure 3. SPR model10 Figure 4. 4 elements of marketing mix11 Figure 5. Buying process18 Figure 6. PESTEL model20 Figure 7. Michael Porter’s 5 forces23 Figure 8.
The sales process33 References * BPP Professional Education, 2004, Sales Planning and Operations, London: BPP Professional Education. * BPP Professional Education, 2004, Business Strategy, London: BPP Professional Education. * BPP Professional Education, 2004, Marketing Intelligence, London: BPP Professional Education. * Kotler, P. , Wong,V. , Saunders, J and Armstrong, G. (2001), Principles of Marketing. 3rd European ed. , FT/Prentice Hall, New Jersey, USA. * Jeffery Lim, 2011. SPO lectures slide. * Ginvera, 2011. [Online]. Available at: http://ginvera. com/default. tm [Access on: April 10, 2011] * Wikipedia, 2011. Sales promotion [Online] Available at: http://en. wikipedia. org/wiki/Sales_promotion [Access: April 10, 2011] * Neil Rackham, 2010. Principle of personal selling [Online] Available at: http://www. slideshare. net/mochkurniawan/principle-of-personal-selling [Access: April 11, 2011] * WTEC, 2011. Sales professionalism [Online] Available at: http://www. wtec. ie/sales-training/sales-professionalism. html [Access: April 12, 2011 ] * General Statistic Office, 2011. Social – economic in 2010 [Online] Available at: http://www. so. gov. vn/default. aspx? tabid=621&ItemID=10835 [Access: April 11, 2011] * Vnexpress, 2011. World Bank forecast on Vietnam inflation in 2011 at 9. 5% [Online] Available at: http://vnexpress. net/gl/kinh-doanh/2011/03/ngan-hang-the-gioi-lam-phat-2011-cua-vn-se-la-9-5/ [Access: April 15, 2011] * General Statistic Office, 2011. Social – economic in 2010 [Online] Available at http://www. gso. gov. vn/default. aspx? tabid=387&idmid=3&ItemID=9865[Access: April 11, 2011] * General Statistic Office, 2011. Social – economic in 2010 [Online] Available at http://www. so. gov. vn/default. aspx? tabid=387&idmid=3&ItemID=9856 [Access: April 11, 2011] ——————————————– [ 1 ]. Hoffman et al [ 2 ]. http://marketingteacher. com/lesson-store/lesson-sales-promotion. html [ 3 ]. Course book, page 467 [ 4 ]. http://en. wikipedia. org/wiki/Sales_promotion [ 5 ]. http://www. g