MARKETING PLAN INDIVIDUAL ASSIGNMENT

BUSINESS
September
11
20
FOUNDATIONS

LA TROBE UNIVERSITY
DIPLOMA PROGRAM
*****

BUSINESS FOUNDATION
MARKETING PLAN
INDIVIDUAL ASSIGNMENT

Students name: Tuan Hung Le

Class: Diploma Business Administration 25
Submitted to: Mr. Dang Hoang Nguyen

Contents
Executive summary...................................................................................................1
1. Introduction to the Company...........................................................................1
1.1. History of Delta Corporation...........................................................................1
1.2. The projects of the company...........................................................................1
1.3. Target market and customers...........................................................................3
2. Market description..............................................................................................3
3. SWOT Table - Explanation.................................................................................6
3.1. Strengths..........................................................................................................7
3.2. Weaknesses......................................................................................................7
3.3. Opportunities...................................................................................................7
3.4. Threats.............................................................................................................8
4. Recommendations................................................................................................9
4.1. Target Market..................................................................................................9
4.2. New product description.................................................................................9
4.3. Customer value proposition..........................................................................10
4.4. Justification of the choice of new product....................................................10
References and Appendice:...................................................................................12

Executive summary
At present, the construction market are fiercely competitive. Some activities such
as bidding activity, profit earning must ensure for the existence and development of
enterprises. An optimal method to help business geared to objectives and achieve
goals is marketing strategy planning. Marketing strategy is the foundation for the
construction of other strategies in the business such as manufacturing strategy,
financial strategy to help business running their activities. Therefore, the main
purpose of this report is to research and analysize the impact of the business
environment for the business activities of the DELTA Corporation. In addition, this
report clearly analyzes the opportunities and the challenges, strengths and
weaknesses analyze the competitiveness of new product on the market.
1. Introduction to the Company
1.1. History of Delta Corporation
Entrepreneur Nhat Thanh Tran established civil engineering companies and
industrial DELTA in 1993. Shortly after the operation, DELTA Corporation had
participated in numerous major projects, several of which are the construction of
Press Club Center (Hanoi), Saigon Domaine (HCMC), and Hanoi Hilton Opera
Hotel. Since 2001, DELTA has constructed a series of foundation construction, the
barrette wall and the basement on the different geological background, such as
Bitexco Tower, Vincom City, and Keangnam Landmark. For more than 20 years of
DELTAs development, Thanh and his management team, technical staffs and
specialized teams have built the DELTA brandname, which has been valued by
customers as the leading company in the civil construction industry. The
company's building constructions implemented across the country are always
outstanding and complex works, which requires advanced technology.
1.2. The projects of the company
Since its entrance in construction market, DELTA has successfully
implemented numerous key projects, including the Keangnam Tower foundations
and Bitexco Financial Tower. The company also became the major bidder of large
projects such as the Royal City and Times City, thanks to which DELTA has
reconfirmed its leading role in the civil construction area and earned higher trust
from customers.

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Major construction works by DELTA Vincom City

Major construction works by DELTA Hanoi City Complex

Major construction works by DELTA Royal City

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Major construction works by DELTA Times City

1.3. Target market and customers.

- Target market:
Delta Corporation undertakes projects related to civil construction, industrial
construction, and construction of urban infrastructure works with extensive
requirements for quality, engineering and fine arts such as hotels, office buildings,
and high-end housing. In general, civil construction market is the primary target
market of the company.
- Target customers:
To pursue sustainable development, beside effective business strategies, DELTA
has identified the customer concentration approach. Customers of DELTA are
classified into two main groups:
+ Foreign customers who are investors from East-Asian countries, such as
Keangnam Enterprise, and Huyndai RNC Hatay Co.Ltd.
+ Domestic customers who are investors from Vietnam, such as Hanotex
Co.Ltd, and Hanoi Southern Urban Development.
2. Market description
Currently, the construction market in Vietnam is rapidly and
comprehensively developing in terms of scale, scope, structure, quality,
technology, and market participant structure. The construction business gradually
assert its crucial role in the design, planning and construction supervision. The
construction major in Vietnam is divided into three categories: civil construction
(housing, office buildings, hotel), industrial construction (production, warehouse,
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industrial) and construction of infrastructure (transportation infrastructure, power

infrastructure and water infrastructure). Currently, the civil and infrastructure
works represents a major value in the industry structure. To be more specific, the
construction market of infrastructure and civil construction account for 41.2% and
40.6% of the value of the industry respectively and industrial construction only
contributes 18.3%. In addition, regarding the geographical area of distribution,
Hanoi and Ho Chi Minh City are two centers of capital attraction over the country.
As clearly shown in the graph below, the North is leading the country in terms of
spending for construction (43%), followed by Southern (32.4%) and Central
(24.6%).

Structure of construction industry by category and geographical area

Besides, the construction market has been affected during the process of industry
growth. Particularly, with the goal of promoting economic growth, the government
is willing to spend higher capital resources on infrastructure projects. The graph
below demonstrates the structure of capital invested in infrastructure in Vietnam. It
is clearly seen that ODA is the largest source of capital for constructing
infrastructure (37%), followed by private investment (21%), fee-charged services
(14%), government bonds (13%), and national budget (11%). The contribution
from commercial banks and other sources is negligible at 3% and 1%, respectively.

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Capital structure for infrastructure construction in Vietnam

In addition, rapid urbanization is leading to increased demand for
construction of infrastructure throughout the country. Beside such recently finished
works as Nhat Tan Bridge, Hanoi-Lao Cai Highway, and Noi Bai International
Airport (T2), many construction works are being underway, including Hanoi-Hai
Phong Highway, Nha Trang-Phan Thiet Highway, and Da Nang-Quang Ngai
Highway.

Several major construction works undertaken as the result of recent urbanization

However, the damage to the building market is that public enterprises have
many advantages in bidding for the infrastructure construction works which
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involve public budget. This issue may reduce the effectiveness of bidding and
significantly influence the quality of construction works when the contractors do
not have adequate implementation capacity.
The bar chart below reveals the expectation of the growth rate of the
construction major and the total investment. Although the investment amount of all
construction majors fluctuates sharply recently, it is forecasted that along with the
steadily increasing growth rate of total investment in construction, the amount
spent for the three majors will ultimately converge at around VND 2 million
billions during the 2020s.

Forecast of construction majors growth rate and investment in Vietnam

3. SWOT Table - Explanation
Strengths
1. Product quality.
2. Equipment and technology
3. Human resources.
4. Production cost.
Opportunities
1. Policy reform.
2. Interest rates.
3. Foreign Direct Investment

Weaknesses
1. Labor productivity.
2. Marketing activities.
Threats
1. The economic crisis.
2. Competition in the industry

3.1. Strengths
- Product quality: DELTA Corporation is one of the leading construction
companies in Vietnam, so the quality of the work is the most important factor.
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Product quality of DELTA has been clearly proven through the completed such
as the Royal City, Times City and Bitexco Financial Tower. DELTA always
strives the best to deliver excellent performance with higher quality of
construction.
- Equipment and technology: DELTA has invested in the most updated and
advanced machinery and equipment in the world in the execution of public
construction such as RCD drilling rigs and diaphragm wall excavator. Besides,
a modern computer system with scientific advances, such as the Osterberg
device, Koden test equipment, Top-down method, Bottom-up method, etc., is
also applied to check the quality of the work
- Human resources: DELTA employs young staffs with dynamic, innovative and
enthusiastic personality. Furthermore, these staffs are always inspired and
rewarded accordingly to contribute to the company's development. Therefore,
company has a stabilized foundation from the staffs.
- Production costs: Thanks to the connection with the suppliers of products and
services domestically and internationally, the production costs are tightly
controlled, so the costs are maximum saved.

3.2. Weaknesses
- Labor productivity: Although the company possesses a strong workforce, not
many capacity building activities are undertaken for the company to harness the
power of human resources. Thus, the performance is not at the highest possible
level.
- The system of marketing: marketing activities have not been effectively
promoted. A classic example is the obvious lack of information, which is
essential for contractors and consumers, on the Corporations website.
3.3. Opportunities
- Policy reform: Since 2013, the housing law and law on tenders and property
values (36/TT-NHNN) have been changed considerably in various contents.
This encourages the demand for housing and the amount of foreign investment
in the industry. Therefore, DELTA can take its advantage to expand and develop
further projects.
- Interest rate: interest rates of lending and savings have dropped to 8% and 6%,
respectively, which are at the lowest levels in recent years. When the expense
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for financing activities of construction business decreased, DELTA can expand

the scale of the project.

Interest rates fluctuations in period 2005-2014

- Foreign Direct Investment: In 2015, Vietnams construction market has
prospects of attracting foreign direct investment (FDI), mainly from Japan,
Korea, Singapore, Taiwan, China, the EU, the United States and Canada. The
capital investment will help increase demand for infrastructure construction as
well as the use of building materials in the country.

3.4. Threats
- Economic crisis: the global economy is facing an arising economic crisis. The
upsurge in inflation leads to the escalating price of raw materials, which in turn
will cause a burden for DELTA to balance its price policy to compete with other
competitors.
- Competition in the industry: The more and more intensive participation of
Vietnam in the process of globalization has led to the appearance of many
construction companies which pose a great threat of competition to DELTA. It
may be increasingly fierce competition on prices, quality, service, and time, etc.

4. Recommendations
4.1. Target Market
As mentioned above, the industrial construction is the industry responsible
for low value structure in the construction industry, which accounts for only
18.3%. Currently, the amount of capital investment in the industrial construction
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has occupied the highest structure in FDI (40-50%), equivalent to the amount of on
average 4-5 billion USD disbursed each year. Besides, because of the
globalization, the demand for the industrial construction are increasing at higher
and higher speed, promising huge profits for qualified construction companies.
Therefore, the prospects of industrial construction are evaluated positive in the
next few years. This is expected to be a potential new market for DELTA to expand
its projects in terms of both scale and scope because they never participates in the
industrial construction market. Customer focus of the company's is the contractors,
domestic and foreign investors in the industry areas, including Samsung, Intel,
Nike, and Adidas, etc.
4.2. New product description
- Product: For industrial construction market, the DELTA Corporations new
product is the projects with superior quality, where the most modern equipment
and advanced technologies of DELTA will be applied to ensure safety, quality
and timely progress.
- Promotion: DELTA Corporation will promote industrial construction building
capacity to the investors through promotional campaigns, including both mass
media communication tools (TV, posters, website, etc.) and direct
communication events (exhibition, press conference, etc).
- Price: Based on the sustainable relationship of DELTA Corporation with
suppliers of construction raw materials, the production costs of industrial
construction works will be minimized. However, during the early participation
of DELTA in industrial construction, it is expected that the company will have
to invest more in specific technologies and to adapt its resources to the new
market segment. Quality is still concentrated to meet the requirements of the
investors and will be the key distinct advantage of DELTAs products.
Therefore, the price policy of DELTA in this phase is to balance at the average
level in the market.
- Place: The main distribution area of the new products is the largest industrial
parks in the country such as Binh Duong, Thai Nguyen, Bac Ninh, etc., or the
newly arising industrial zones in Quang Ninh, Thanh Hoa, and Dong Nai, so on.
- People: New products will be designed and built by engineers and workers who
have more experience and have core capacity. DELTA will also have to arrange
some training sessions or send its employees to advanced courses designed
specifically for industrial construction to enhance their capacity.
- Processes: The works will be built and designed according to the requirements
of investors. All these projects will meet the criteria of quality, safety and
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construction schedule. In addition, the contractor will receive the update

information on regular basis and the strong support about the works from the
DELTA. Implementation of this procedure will minimize the errors and will
attract more investors.
- Partnership: DELTA's partners are companies that supply building materials
and the investors. It may also establish relationship with other recognized
construction companies in case partnership will be required for better service in
large projects.
4.3. Customer value proposition
The industrial works of DELTA will be built and designed to suit the
requirements of the contractor about mold and shape characteristics and structure.
These industrial works will be built in a large area, including factories with
different designs to suit each mission and goals. In addition, the works will be
designed scientifically and in consistence with nature. Next to the standard in
terms of form and structure, safety and the quality of these works will be ensured
to create effective work environment. Meanwhile, the costs will be kept at an
acceptable level for such high quality.
4.4. Justification of the choice of new product
- S O: The Corporation needs to take advantage of the strengths of modern
equipment and advanced technologies to create a high-quality industrial works.
Besides, to increase market share and sales in the industrial market, DELTA
should grasp the change of Government policies, interest rates of lending and
saving, and characteristics of economic development to bring more favorable
conditions for operation. In addition, based on the strength of the human
resources, DELTA Corporation is likely to expand, diversify the works for
contractors.
- S T: The Corporation needs to have a strategy of technological innovation for
sufficient competition. Furthermore, it should plan to control costs and looking
for the highest quality source of raw materials but reasonable price to save the
cost. Hence, DELTA Corporation creates the foundation of the price policies to
attract customers and compete with other rivals about the works of industrial
construction.
- W O: To develop the industrial projects, DELTA Corporation should expand
market share in industrial construction and number of customer based on the
change in Government's policies, FDI and interest rates. As a result, the
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corporation confirms brands value and overcome the weaknesses of labor

productivity and marketing activities.
- W T: While the economy was affected by the global economic recession and
the competition in the market of industrial construction is increasingly fierce,
DELTA needs to change marketing strategies and increase the productivity of
labor to create the best industrial works to compete as well as to overcome the
economic downturn.

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References and Appendice:

References:
1. Delta Corporation 2015, Company Overview, Delta Corporation, viewed
2 September 2015. Available at URL: <http://deltacorp.vn/index.php?
option=com_content&view=article&id=178&Itemid=207&lang=en>.
2. Delta Corporation 2015, Business Fields, Delta Corporation, viewed 2
September 2015. Available at URL: <http://deltacorp.vn/index.php?
option=com_content&view=article&id=181&Itemid=210&lang=en>
3. Delta Corporation 2015, Project: Under Construction, Delta Corporation,
viewed 2 September 2015. Available at URL:
<http://deltacorp.vn/index.php?
option=com_content&view=category&layout=blog&id=92&Itemid=257
&lang=en>
4. Trang, T. 2013, Nh gio, Doanh nhn Trn Nht Thnh : Thp la cho
nhng thnh cng, Vietnam chamber of commerce and industry, viewed
2 September 2015. Available at URL:
<http://vccinews.vn/news/10045/.html>
5. Tp ch Ti chnh 2014, Trin vng th trng xy dng Vit Nam 2015,
Tp ch Ti chnh, viewed 2 September 2015. Available at URL:
<http://tapchitaichinh.vn/kinh-te-vi-mo/kinh-te---dau-tu/trien-vong-thitruong-xay-dung-viet-nam-2015-56845.html>
6. FPT Securities 2015, TO CHO BC NHY VT, FPT Securities,
viewed 2 September 2015. Available at URL:
<http://fpts.com.vn/FileStore2/File/2015/05/13/FPTS_baocaonganhxaydu
ng_052015.pdf>

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Appendices:

Companys name
Address
CEO
Phone
Email
Current market
Current product

Performance
Competitive Advantage
Rivals

DELTA Corporation
81 Lac Trung Street, Hai Ba Trung District, Hanoi
City, Vietnam
Nhat Thanh Tran
043.821.7885
info@deltacorp.vn
Vietnam construction market
Construction works for Civil construction,
Industrial construction and Construction of urban
infrastructure works
Continuous reports profit
- High construction works quality
- Modern equipment and advanced technology
Song Da Corporation, CONINCO.JSC

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Information of interviewee:
Full Name: Hong Quang Doan
Career: Construction engineers at DELTA Corporation
Email: doanquang86@gmail.com

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