Bá Thị Vân Anh - 1817710004 marketing digital transformation PDF

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FOREIGN TRADE UNIVERSITYFACULTY OF BUSINESS ENGLISH--------***--------MID TERM REPORTMajor: Business EnglishTHE CURRENT SITUATION OFDIGITAL TRANSFORMATION IN MARKETING OFPHU THAI HEALTH AND BEAUTY CAREJOINT STOCK COMPANYStudent full name : Bá Thị Vân AnhStudent ID : 1817710004Class : English 3 - K57...

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FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ENGLISH --------***--------

MID TERM REPORT Major: Business English THE CURRENT SITUATION OF DIGITAL TRANSFORMATION IN MARKETING OF PHU THAI HEALTH AND BEAUTY CARE JOINT STOCK COMPANY Student full name Student ID Class Intake Supervisor

: Bá Thị Vân Anh : 1817710004 : English 3 - K57 - FBE : K57 : Nguyễn Thị Hiền Hạnh, M.A.

Hanoi, August 2021

TABLE OF CONTENTS ACKNOWLEDGEMENTS....................................................................................i LIST OF FIGURES................................................................................................ii LIST OF TABLES..................................................................................................ii INTRODUCTION..................................................................................................1 CHAPTER 1: AN OVERVIEW OF PHU THAI HEALTH AND BEAUTY CARE JOINT STOCK COMPANY......................................................................3 1.1. Company Overview......................................................................................3 1.1.1. History.....................................................................................................3 1.1.2. Mission & vision......................................................................................4 1.1.3. Organizational structure.........................................................................5 1.1.4. Lines of Business.....................................................................................7 1.2. Internship activities......................................................................................8 CHAPTER 2: AN ANALYSIS OF DIGITAL MARKETING TRANSFORMATION OF PHU THAI HEALTH AND BEAUTY CARE JOINT STOCK COMPANY..................................................................................8 2.1. Theoretical basis of digital marketing transformation............................10 2.1.1. Growth of digital economy....................................................................10 2.1.2. Digital marketing transformation framework......................................13 2.2. Current situation of digital transformation in marketing activities of Phu Thai Health and Beauty Care Joint Stock Company......................................16 2.2.1. Marketing activities for Wella brand on digital platform.....................16 2.2.2. Assessment.............................................................................................19 CHAPTER 3: RECOMMENDATIONS.............................................................23 3.1. Design for Customer-Led Positioning.......................................................23 3.2. Redesign Advertising as Interactive and Integrated Marketing Communication Education and Entertainment..............................................23 3.3. Track for Data and Feedbacks...................................................................24 CONCLUSION..................................................................................................... 25 REFERENCES

ACKNOWLEDGEMENTS It is my pleasure to give my gratitude to many people whose encouragement, support and assistance were crucial to the result of my field report. First and foremost, I am particularly grateful for the guidance given by my supervisor, Mrs. Nguyen Thi Hien Hanh, with her dedicated advisory and suggestions in writing of this report despite her limitation of time. Her encouragement really plays an important role in the success of my report. In addition, I would like to express my special thanks to Phu Thai Health and Beauty Care Joint Stock Company in general and Human Resource Department staff in particular for the experience during my internship. Ms. Nguyen Thuy An provides me with not only the key documents but also the great knowledge and support. My sincere thanks are extended to my friends and family who supported me during the internship and in writing this report.

LIST OF FIGURES Figure 1.1: Proportion of shares of Phu Thai Holdings Figure 1.2: Organizational Structure of Phu Thai HBC., JSC Figure 2.1: Scope of digital economy Figure 2.2: Types of Digital Marketing Figure 2.3: Facebook analytic insights in July of Wella Professionals page (2021) Figure 2.4: Comparison on Social Media Business Indicators from May to July (2021)

LIST OF TABLES Table 1.1: A number of staff of each department in Phu Thai HBC.,JSC Table 2.1: The Six Stages of Digital Transformation

INTRODUCTION 1. Rational Vietnam has gained positive changes in recent years, from a centrally planned economy to a market economy with the management of the government. In the situation of both economic innovation and globalization, marketing in the digital era has increasingly played an important role in all businesses in terms of many aspects. Digital Marketing has satisfied customers' satisfaction and standard of living. Also, marketing helps businesses perform flexible business activities, seize opportunities and customers’ demands, thereby finding out strategies to satisfy the demands. Moreover, there are always a number of companies that major in the same lines of business and have their own methods of operating and different strengths in domestic and international markets as well. Hence, it is truly difficult for a company to sustain its position in the market if it does not have its own way. Phu Thai Health and Beauty Care Joint Stock Company (Phu Thai HBC.,JSC) is not an exception. In spite of being aware of this and having always made changes in strategies, especially marketing strategies to keep up with the digital trend, Phu Thai HBC.,JSC is a newcomer in the first day of digital transformation. The company needs to have strategic plans to go deeper into this competitive market when having awareness of the importance of marketing especially marketing in digital era in both production and expansion activities and to have further understandings of business operation. Based on all the above reasons, I decided to write a report on the topic of "The current situation of digital transformation in marketing of Phu Thai Health and Beauty Care Joint Stock Company''. 2. Objectives of the report Internship at Phu Thai Health and Beauty Care Joint Stock Company is a great opportunity for me to apply the knowledge and skills I have been taught at the university as well as what I learned and experienced for practice. I would like to write this report to thoroughly analyze the current situation of digital transformation process of the company and then finding some the most suitable solutions to fix it;

help the company reach its target customer and enhance business performance in conducting marketing strategies. 3. Scope of the report

The report only analyzes the data of the primary product line of the company – Wella Professionals in domestic activities, excluding foreign activities of marketing department. 4. Methodology: To accomplish this report, I used the method of synthesizing, observing and analyzing. Coming to detail, I synthesized data from the annual financial statements of the company and other related documents; then applied it to the analysis of business performance, which shows the effectiveness of marketing strategies. During my internship period, I also synthesized information that I collected by observing the whole picture of the working process at my company. After that, I analyzed that information to figure out what advantages of the company are and what problems still exist as well when doing digital transformation in marketing activities, and then to find recommendations for the company. I hope it is useful for not only Phu Thai HBC.,JSC in considering applying them to their operation but also newcomers who attend the company in the future so that they can adapted to this workplace quickly. 5. Structure of the report Except for the table of contents, acknowledgment, list of tables and figures, introduction, conclusion and references, this report covers three chapters: Chapter I: An overview of Phu Thai Health and Beauty Care Joint Stock Company Chapter II: An analysis of digital marketing transformation of Phu Thai Health and Beauty Care Joint Stock Company Chapter III: Recommendations The first chapter is about the overview of Phu Thai HBC.,JSC to introduce a general look about this company. In the second chapter, I mention specific activities in the Marketing Department in terms of digital transformation to catch up with the trend and give some personal assessment. The final one is recommendations about

improving marketing strategies from my research and reflection to enhance business performance in the digital era. CHAPTER 1: AN OVERVIEW OF PHU THAI HEALTH AND BEAUTY CARE JOINT STOCK COMPANY 1.1. Company Overview English name: PHU THAI HEALTH AND BEAUTY CARE JOINT STOCK COMPANY Vietnamese name: CÔNG TY CỔ PHẦN CHĂM SÓC SỨC KHỎE VÀ SẮC ĐẸP PHÚ THÁI Abbreviated name: PHU THAI HBC.,JSC Business code: 0106697782 Date of issue: 21/11/2014 Address: No. 192/19 Thai Thinh Street, Lang Ha Ward, Dong Da District, Hanoi Director: Nguyen Thi Trang 1.1.1. History Phu Thai Health and Beauty Care Joint Stock Company (PHU THAI HBC.,JSC) was established in December 2009, with a registered head office address at 192/19 Thai Thinh, Dong Da District, Hanoi City. The company is a subsidiary in the Phu Thai Holdings ecosystem which includes other companies such as Phu Thai Industry Co., Ltd. Phu Thai Agriculture Joint Stock Company, Kowil Vietnam Fashion Joint Stock Company, Phu Thai Industrial Equipment Co., Ltd., Phu Thai Beauty and Health Care Joint Stock Company, Real Estate Joint Stock Company Phu Thai…

Figure 1.1: Proportion of shares of Phu Thai Holdings (Source: Phu Thai Holdings 2020) Phu Thai HBC.,JSC specializes in trading and distributing health and beauty care products and services of a number of large corporations in the world. Also, it is a main part of the Wholesale of other household products industry. In Vietnam, Phu Thai HBC.,JSC has been the exclusive distributor of the products of the global company Wella in Vietnam. Wella Company from Germany is the top 1 brand in the world for professional hair care products with over 140 years of developing products that are always at the forefront of quality, trends, creativity and focus on the benefits and health of Salon and consumers. Consumers may find it familiar with some Wella product names such as System Professional (SP), Elements, Nioxin. Phu Thai HBC.,JSC has a total of 20 employees across all its locations divided in 5 main departments: sales, accounting, marketing, inventory and education & training. 1.1.2. Mission & vision Phu Thai Holdings as well as its subsidiary, Phu Thai HBC.,JSC has been a prestigious and quality bridge between the companies, manufacturers and consumers, contributing significantly to the circulation of goods as well as promoting the retail market with its distribution and logistics system. According to company introduction in Phu Thai Holdings portfolio, its vision and mission is: 1.1.2. Vision

“To become the leading logistics and distribution group in Vietnam”. 1.1.3. Mission As a company with high professionalism and internationalization, Phu Thai Group and Phu Thai HBC.,JSC as well is now constantly working creatively to build the company to become more and more mature, growing in all aspects, actively integrating into the international economy, creating create many jobs, stabilize the life of workers and fully contribute socio-economic obligations to the state with the mission of: 1. Provide a variety of quality products and services to serve the needs of consumers. 2. To establish the organization's core competencies by having effective network coverage, systems, skilled people and cost effectiveness. 3. To provide full distribution solutions as both integrated distribution and logistics service providers. 4. To coordinate operations between business units to achieve a single strong and diverse entity. 5. To provide profitable and profitable growth for our stakeholders. 1.1.3. Organizational structure The organizational structure of the company is relatively simple with four divisions managed under the direction of CEO Nguyen Thi Trang. Human Resource’s scale of the company is small, with twenty employees distributed in the following departments. The organizational structure of Phu Thai HBC., JSC will be mentioned below:

Figure 1.2: Organizational Structure of Phu Thai HBC., JSC (Source: Phu Thai HBC.,JSC, 2017) Chief Executive Officer (CEO) is the highest-ranking executive in a company, whose primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, meeting and negotiating with partners and being the public face of the company. Accounting Department manages the company’s cash flow which includes cash inflows and cash outflows. This department is responsible for accounting, auditing, organizing, making financial decisions and also producing the company’s financial statements. Sales Department is responsible for directly generating revenue. The sales department is tasked to ensure that the sale of products and services results in profit through the distribution channels of the company. The sales department coordinates with the marketing department in terms of brand-awareness, product-launching and more. Marketing Department is responsible for promoting the business to target customers to generate sales and help the company grow. Its function involves creating various marketing strategies and planning promotional campaigns. They are also responsible for monitoring competitor’s activities. Human Resource & Training Department is responsible for recruiting the right people with the required skills, qualifications and experiences; then

determining the salary and wages of different job positions in the company. They’re also involved in training employees for their development. Inventory positions is responsible for accounting of items and checking stock situation for sales to ensure that you have enough stock on-hand and to identify when there’s a shortage. In each department, the manager will be the person who takes charge in monitoring and supervising all tasks going smoothly. They map out strategies, plan and implement to employees to ensure a positive business performance in the end. However, only Inventory does not essentially need a manager because of company size and simple features of workload. This is a basic organizational structure that we meet in all Small and Medium Size Companies (SMEs). The structure helps companies operate effectively, ensuring companies have good human resources for distributing Wella products to market. Each department works closely with each other to boost profits. If Phu Thai HBC.,JSC loses any positions, it’s hard to keep running business in the market. Below is the division of labor in each specific department of Phu Thai HBC.,JSC that join into business of company: Table 1.1: A number of staff of each department in Phu Thai HBC.,JSC (unit: person) Department Accounting

Number of staff 3

Rate 15%

Sales

6

30%

Marketing

5

25%

HR & Training

3

15%

Inventory

2

10% (Source: Adapted by the author, 2021)

The Sales and Marketing Department account for the majority of company’ employees because of its direct importance in giving Wella products to target customers. The two departments coordinate to help raise brand-awareness, product-

launching and other marketing strategies. The Sale response for spread marketing campaigns to retailers and/or end customers. The majority of the employees are from college; 75% of which has bachelor degree and 20% of employees have college degrees. There is only one employee with a high school degree who is a hairstylist in the HR & Training department. 1.1.4. Lines of Business Phu Thai HBC.,JSC’s subject is specialized in doing business on Wholesale of other household products and classified in the following areas: -

NACE 46.45 Wholesale of perfume and cosmetics

-

NACE 46.46 Wholesale of pharmaceutical goods

-

NACE 46.47 Wholesale of furniture, ca

-

NAICS 4232 Furniture and Home Furnishing Merchant Wholesalers

-

NAICS 4236 Household Appliances and Electrical and Electronic Goods Merchant Wholesalers As the exclusive distributor of Wella Company products in Vietnam, Phu Thai

is currently distributing and trading the following main products:  Wella Professionals: with the strength of color, curling, straightening, care product lines, was born in 1880.  System Professional: the world's most advanced and popular hair care product line, born in 1974.  Nioxin: the world's best thinning hair care product line for 17 years in a row, used by more than 90% of Americans for hair loss treatment. Besides, there are familiar hair tools and appliances widely used in the hair industry such as curling irons, curling irons, dryers, trolleys, etc. 1.2. Internship activities I had the opportunity to practice at Phu Thai HBC., JSC within 1 month (from June 12 to August 13, 2021) at the Marketing Department under the guidance of Marketing Manager Ms. Nguyen Thuy An. The time I joined the company to practice was also when Ms.An has just taken over her position at the company. At that time, the company's marketing department had only two employees, who are Ms.An and another employee.

Realising the importance of digital marketing, in particular its importance for the development and market expansion of the company, the director - Ms. Trang along with Ms.An has expanded the department’s scope with two more positions which are marketing specialists. Therefore, my tasks in the company changes a little bit in two phrase: At first, in the first half of July, when the company has not yet recruited two specialists in the department, I work as Ms. An's assistant, mainly supporting her with simple tasks that help me get used to the new workplace environment and to the job as well. The main task every day is to write and organize posts in Facebook fan pages, book press, seed articles on groups and channels, translate related documents, create consumer surveys or forms, brainstorming for marketing strategies and so on. Then, in the rest half of July, when the company has recruited two new marketing specialist, I am assigned the right tasks as a digital marketing content writer:  Planning and writing content for online sales channels and social media (Facebook, Instagram), posting 1 post per day per channel.  Working closely with other teams to support marketing events/campaigns.  Doing market research trends, products & services and objects related to projects; wrote reports  Contacting and following agency seeding ads on groups, forum, e-news (Saostar, Kenh14). Besides, I can participate in internal training activities to help me improve my expertise and network and meet job performance.

CHAPTER

2:

AN

ANALYSIS

OF

DIGITAL

MARKETING

TRANSFORMATION OF PHU THAI HEALTH AND BEAUTY CARE JOINT STOCK COMPANY 2.1. Theoretical basis of digital marketing transformation 2.1.1. Growth of digital economy The definition of what constitutes the digital economy has evolved over time, this research uses a definition proposed in a report of Organization for Economic Co-operation and Development (OECD) by (Bukht and Heeks, 2017, p17) “That part of economic output derived solely or primarily from digital technologies with a business model based on digital goods or services.” To this definition it has been suggested that inclusion of broader trends, such as platformization, digital transformation in data and e-commerce, is needed for making policy evaluations.

Figure 2.1 below depicts a broad definition of the scope of the digital economy that i...