CHAPTER I: INTRODUCTION

This chapter provides an overview of Minh Huong Ltd., a key subject of this
research. It continues with the problem statement, the significance of the study,
objectives and the scope of this study, and research methodology. The structure of the
essay will also be presented.

1.1. Overview Minh Huong Ltd.

This research provides a critical analysis of managing marketing mix of Minh
Huong PND Ltd. (Minh Huong). Minh Huong Ltd., which was established in 2005,
operates within the fashion industry. Its products include home-wear and casual-wear
for female and kids in Vietnam. With home-wear is the key product100% Minh
Huong’s products were designed by its in-house fashion designers and made from local
materials. In 2009, Sunfly, a new advanced home-wear brand of Minh Huong, was
launched. From 2006 to now, Minh Huong’s market share was expanded in the North
of Viet Nam. Nowadays, Minh Huong is one of the Northern leading home-wear
manufacturers of Vietnam. The company’s Sunfly brand is still the most popular brand
in the domestic market with four products line: Sunfly Prime, Sunfly Sweet home,
Sunfly Sport, Sunfly kids. Sunfly sweet home is Minh Huong’s new product line that
was launched in 2015. Minh Huong started to target the new segment, which is the
casual-wear, in January 2015.

1.2. Problem statement

From 2005 to 2012, Minh Huong’s turnover and profit are increased regularly
about from 15% to 20% per year. Its market share was expanded about 5% per year.
However, from 2013 to now, business indications have been going down. It is
particularly due to the stronger and faster growth of Minh Huong’s competitors in the
home-wear segment. Some of Minh Huong’s strong rivals are Winny - the ever market
leader, Emma, Vincy, Wonderful, and Wow. In the casual wear market segment, local
brands such as Canifa, Boo or Made in Vietnam and many foreign brands have been
taking up large market share. According to Minh Huong’s reports, although the
company increased discount for agencies as well as end-users, and implemented more
sales promotions, it did not achieve target sales revenue. As a result, Minh Huong’s
profit has decreased remarkably from 2013.

1
 Years Turnover (VND) Target (VND) Rate of Return
2013 53 billion 51 billion 10%
2014 58 billion 63 billion 6%
2015 65 billion 85 billion -7%
Table 1.1: Turnover, target, and profit of Minh Huong from 2013 – 2015
(Source: Minh Huong’s annual report in 2013, 2014 & 2015)
1.3. Significance of study
Marketing is pivotal for SMEs. It is suggested that marketing can help owners
achieve their ultimate goal of increasing sales and gain more profit. It is a human and
social activity that continues from the stage of identifying the consumers' need to
the time of distributing the product to end-users. Among other marketing strategies,
marketing mix is an important tactic. Managing marketing mix is one of the factors
that could have a posititive affect on sales target and profit of Minh Huong. Therefore,
it is very important to provide a research on the effect of managing marketing mix on
Minh Huong’s performance in the domestic market. The results of this study may help
Minh Huong manage marketing mix effectively, and thus improve the company’s sales
and profits.

1.4. Research objectives

The objective of this study is to understand the management of marketing mix
of Minh Huong in the domestic market. This research is an exploratory study, which
provides information on how Minh Huong chose a market segmentation, what Minh
Huong’s marketing mix policies are and its evaluation of managing marketing mix.
The below research questions are addressed in this study.

1. How did Minh Huong choose market segmentation?

2. What are the current Minh Huong’s managing marketing mix policies?
3. How efficient is the marketing mix management of Minh Huong? (The
evaluation of managing marketing mix of Minh Huong).
1.5. Research methodology
A qualitative approach will be used in this study. The researcher will collect
two types of data that are primary data & secondary data to answer the research
questions. The secondary data includes internal sources and external sources. The
researcher will conduct individual in-depth interviews to collect primary data.

2
 1.5.1. Data collection procedure

Data from various sources that were systematically observed, recorded, and
organized were used for research purpose. Secondary data such as fashion industry
development forecasts, the consumer behavior research, annual reports, marketing and
sales reports were included. These data have been collected for another purpose but
are in line with this study’s objective. The primary data are collected from interviews
with 30 persons including the board of director’s members, manager and staff of
marketing and sales division as well as production divisions.
1.5.2. The data analysis

The framework with thematic analysis method will be used in this research. Commented [VTH1]: Change to past tense.

Themes are determined based on the research questions. Qualitative data analysis
consists of identifying, coding, and categorizing themes guided by the RQs or the data.
The primary data and the secondary are synthesized and put into label content. Three
themes corresponding to three RQs were the base to define structure, label and data.
Then, the researcher will implement coding match three themes. Finally, the researcher
implements descriptive analysis data.
1.6. Scope of study
The research project aims to investigate Minh Huong’s management of
marketing mix in the domestic market. Hence, this study will be conducted in the
Northern area of Vietnam, where Minh Huong's main domestic market is. Home-wear
of three brands that are the main product line of Minh Huong will be analyzed in this
study. The people who will be interviewed for the study included CEO, managers and
staff of Minh Huong.

1.7. Structure of the study

Chapter I: Introduction
This chapter introduces the main issues of the study. It provides an overview
of Minh Huong P.N.D, problem statement, a significance of the study, the objectives
of this research project, the scope of this study, research methodology, and structure
of the dissertation.

3
Chapter II: Literature review and theoretical
Literature review and theoretical background include theories and past research
on marketing mix and marketing mix in the fashion industry are provided in this
chapter.

Chapter III: Research methodology

The chapter includes discussions of research methods, participants, data
collecting procedures and data analysis.

Chapter IV: Results & findings

This chapter presents findings from the interview and conversations with
involved personnel and Minh Huong’s annual reports. This research use chapter II’s
content to analyze, compare and contrast with the findings of this research.

Chapter V: Discussions, recommendation & conclusion

Base on analysis of chapter IV & compare with chapter II, this chapter will
discuss and give recommendations and possible conclusions that help Minh Huong to
manage marketing mix better.

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 CHAPTER II:
LITERATURE REVIEW AND THEORETICAL BACKGROUND

This chapter presents literature review and theoretical background which
is


used
to
summarize
the
 main
concepts
and
knowledge
used
in
the
research.
This dissertation includes the review of past research, the theories in market
segmentation, the marketing mix management and marketing mix in the fashion
industry.
2.1 The reviewing of past research
2.1.1 The marketing mix past research
The essential concept of this part is the reviewing of marketing mix
management past research such as the conference papers, the thesis, the journal article,
magazine article, the blog.
Many conference papers, the marketing blog and journal article show the
concept of marketing mix management in the business.
• Market forces bearing on the marketing mix include consumers' buying
behavior, the trade's behavior—wholesaler’s and retailer’s behavior,
competitor’s position and behavior, governmental behavior—controls over
marketing (Neil H. Borden, 1984)
• According to Robins (1991) the 4Ps which are the product, price, place,
production of the marketing mix is too much internally oriented, therefore,
he proposed four Cs to express the external orientation of a marketing mix
includes customers, competitors, capabilities, and company.
• The marketer of firm plans various tools of competition and combines
them into a "marketing mix" so that a profit function is optimized and the
four Ps of the marketing mix become an indisputable the paradigm in
academic research (Grönroos,1994)
• According to Azam Haghkhah (2011) in the ResearchGate, the planning is
the main task in marketing mix management. Choosing an effective mix
for the target market will sure take time and effort, but these will pay off as
an industry satisfies its customers and create a profitable business. A good
marketing mix is as “the right product at the right price, offered in the
right place and promoted in the right way”. The using marketing mix
by a particular firm will vary according to its resources, market conditions

5
 and the changing of consumer’s needs. The marketing mix most commonly
remains based on the 4 Ps and today, the marketing mix extend more P such
as packaging, people, and process (Chai Lee Goi, 2009).
• According to Hitesh Bhasin in marketing mix articles, the product
marketing mix consists of the 4P’s and the service marketing mix adds 3
more P’s which are required for optimum service delivery. The services
marketing mix is in figure 2.1 below.

Figure 2.1 Services marketing mix

(Sources: http://www.marketing91.com/service-marketing-mix/)

• Richa (2014) shows that whatever the kind of services of the business
offers, the marketers need a marketing plan to promote it and create the
right service marketing mix to communicate its offerings to consumers.
• The price policy must ensure the product or service is affordable to target
customers in the target market. The firms create promotion policy to get an
appreciation of the product and service in the consumer’s awareness
(Prahalad, 2012).
• Stanley F. Slater and Eric M. Olson in Strategic Management Journal
(2001) says that the price policy has three major aspects involve consumer
demand, the product lifecycle, and potential substitutes.
• The distribution channel policy in a marketing mix must match the
company’s competitive position and marketing strategy objectives in each
market ( McCormick, 1991)
• As the CIM (2009) says, that the challenge of the selecting right promotion
policy to suit firm particular at a particular time, then, the using right it to

6
 achieve a result. The promotion tools include advertising, public relations,
sales promotion, direct marketing, and personal selling.
Marketing mix management is the interested concept of many researchers.
• Two main product policies include price-based product and product
differentiation. When designing this policy, the marketers should answer
the some question such as who the product is aimed at; what benefit the
product brings; what product’s position is in the marketplace; and what
advantage the policy will have to cross the main competitors (Mladenović
Dušan, 2013).
• Most organisations that were faced with a downturn in the economy
or the decrease of purchasing power attempted to implement quick-fix
solutions by reducing the cost of the products (Shireen Khan, 2011).
• Ekaterina Morozova (2014) shows that finding the right location of stores
to reduce the costs of promotion and distribution. Creating a successful
expanding process the firms should analyze external and internal
environment factors, understand the competitors, find differentiation
features, consider production process and technology issues, as well as find
the right Ps of the marketing mix.
• In today’s the promotion tools of marketing mix includes social media that
is driven environment, it is essential that SMEs understand Facebook,
Twitter, and the strategies behind using social media. The firms should
recognize what they want to achieve by using social media and flow by
their marketing strategy (Sarah Cox, 2012).
2.1.2 Past research on marketing mix in the fashion industry.
This concept dissertation focuses on the marketing mix management in the
Minh Huong as a fashion company, therefore, this part presents the past research in
the fashion industry.
• The key success factors for fashion firms is designing, implementing the
marketing mix activities. Besides, some emphatic issues include quality
collections, fashionably designed products, appropriate prices of products,
right placement policy are important conditions for success marketing mix
management (Bruno Završnik, Damijan Mumel, 2000).

7
• The fashion industry is highly competitive and fast-moving with short life
cycle and short lead-time (Source: www.thetimes100.co.uk). There is a
close link between product quality and price in the fashion industry,
therefore, those impact together (Ben Sherman case study- is a globally
recognised lifestyle brand).

Figure 2.2 The relationship between product quality and price.

Source: www.bensherman.com
• The product and promotion policies of Zara case study (Zara was created
by Amancio Ortega Gaona (nowadays first Spains fortune), the clothing
has communicated with high-fashion/low-cost product message, the Zara’s
stores are stocked by new designs twice a week, collections are small,
therefore, products often sold out quickly. (Zara case study)
• With the constant market of the fashion industry, the fashion brand needs
to update product ranges and the fashion retailers are encouraging
consumers to visit their stores more frequently by launching many small
collections. The consumers need fashion retailers to make uniqueness
products and to constantly renew their styles (Bhardwaj and Fairhurst,
2010).
• There are a lot of companies in the fashion industry trying to reach the goals
of high quality, trendy products that afforded to a low price to the
customers. They are the key success factors of marketing mix activities in
the fashion industry. (Marjorie Delagarde, 2011).

8
 • Social media is modern promotion method and very effectively tool
communication for the fashion brand. It consists of many different
services: forums, blogs, micro-blogs, wikis, social networks, sharing
services, social gaming, and geolocation (Daria Zimikhina, 2013).
• Consumer behaviour has a close link with all aspects of fashion marketing,
but most notably with the selection of target markets and the development
of marketing mixes (Bruno Završnik, Damijan Mumel, 2000). Clearly, the
application of marketing mix that plays a crucial role in managing this
growth and change of a fashion company.

2.1.3 The evaluation managing marketing mix of Minh Huong

There are many researchers who studied about methods and tools for evaluating
marketing management and managing marketing mix. The effectiveness of marketing
mix is evaluated through measurable outcomes is the best choice of company. There
are some other evaluation factors that should use such as market share, cost per
customer, competitive analysis (http://www.gaebler.com/). Following to Katie Byrne
2004, the firm could evaluate effectively managing the marketing mix is the position
the brand, product value in customers target awareness. Boundless 2015 said that the
understanding marketing activities by various methods such as metrics or the using
key performance indicators (KPIs). There were some metrics included Marketing
Performance Management, Marketing Return on Investment (ROI), Return on
Marketing Investment (ROMI), and Accountable Marketing that firm should use to
connect marketing performance. In all cases, the firms seek the expansion of market
share, the increase in revenue, the profitable growth for their products and services
when they use various marketing mix instruments (Source: https://www.aimark.org).
Ambler (2003) showing that marketing activity has both tangible such as sales volume,
revenue and intangible effects such as brand equity, can only be estimated. Besides,
whole marketing activity has both short-term and long-term (that comes in the future)
effects. (Sheth et al., 2009).The firms should find the fitting way to judge their
managing marketing mix. Because, if the company doesn’t measure the current
marketing programs, they will not understand policies themselves and give better than
one. (Sheth & Sisodia, 1995b)

2.2 The theoretical background

9
 2.2.1 The segmentation, targeting, positioning (STP).
To answer the first research question, the researcher presents the segmentation,
targeting, positioning concepts. Target marketing includes three activities - the market
segmentation, market targeting, and market positioning are the minimal issues that
need to determine the marketing strategy. The essence of strategic marketing can be
summed up by the initials STP – segmentation, targeting, and positioning. The general
STP process is in the detail below (Colin Gilligan and Richard M.S. Wilson, 2009).

Figure 2.3: The eight stages of the segmentation, targeting, and position
process
(Source: Adapted from Colin Gilligan and Richard M.S. Wilson, 2009)

There are three quite distinct approaches to marketing strategy which exist: (1)
Undifferentiated or mass marketing, (2) Product-variety or differentiated marketing,
(3) Target or concentrated marketing. These are illustrated in figure 2.4 below.

10
 Figure 2.4 Undifferentiated, differentiated and concentrated marketing
(Source: Adapted from Colin Gilligan and Richard M.S. Wilson, 2009)

2.2.1.1 The segmentation.

According
to Kotler
&
Keller (2012), “market segmentation divides a market
into well-defined slices” and it is an adaptive strategy. That mean, the market
segmentation is taking a broad market and divided into it a more specific group of
people. A
market segment
consists
of
the customers
with similar
needs and wants.
Therefore, the mission of marketer is determining market segment and deciding which
one(s) to target. The company segments
market to understand what distinct needs and
wants of customers, to develop the best marketing plans, and to enhance profits
and

opportunities
for
growth (Doyle
&
Stern, 
2006). There is some basic broad

groups for segmentation such as geographic, demographic, psychographic, behavioral
segmentation and marketers use them singly or in combination (Kotler
&
Keller,
2012).
a) Geographic
segmentation

Geographic segmentation methods are the dividing the market into
geographical units such as nations, states, regions, countries, cities, urban
or
rural

areas, 
and
neighbourhoods. Based on this way, the firm can tailor marketing
activities to match the needs of local consumer groups. Marketers
can
use
different

11

software
and
classification
systems
to
define
the
geographic
locations
of
their

customers (Kotler
&
Keller, 2012).
b) Demographic segmentation
Demographics are based on census data that is essentially the same profiles’
people (Michael J.Backer, 2003) such as such as age, family size, family life cycle,
gender, income, occupation, education, religion, race, generation, nationality, and
social class. The reason demographic variables are the popular approach is often linked
with consumer needs and wants. There are some segmentation approaches that
combine geographic data with demographic data to yield even richer descriptions of
consumers and neighborhoods like as PRIZM (Potential Rating Index by Zip Markets)
of Nielsen Claritas (Kotler
&
Keller, 2012).
c) Behavioural
segmentation
According
 to
 Kotler
 &
 Keller (2012), in this segmentation method, the
company divides buyers into groups on the basis of their knowledge of, attitude
toward, use of, or
response
to a product. Needs and benefits sought by customers
should consider being as important that are
the
best
starting
points
for
constructing

market
segments. The product benefit is the consumer want from a product. When
this information is clear, the marketer can see the product which is matched by
customer behaviours.
d) Psychographic
segmentation

“Psychographics the science of using psychology and demographics to better
understand consumers” (Kotler 
 & 
 Keller, 2012). The basic elements of this
segmentation method are psychological/personality traits, lifestyle, or values that to
help marketers divide into different buyer groups. The clientele within the same
demographic group can exhibit very different psychographic profiles. Psychographic
segmentation schemes are impacted by culture factor.
2.2.1.2 The targeting, positioning
According to Colin Gilligan and Richard M.S. Wilson, after having decided
how best to segment the market, the company faced a series of decisions on how many
and which segments to approach. Thus, the marketers need to have measured the size,
growth rate and structural attractiveness of each segment, the strategist needs then to
examine each one in turn against the background of the organization’s objectives and

12
resources. Then, the companies must choose which consumer groups to sell their
products. In essence, five patterns of market coverage exist in figure 2.5 below:

Figure 2.5: Possible Levels of Segmentation

(Source: Adapted from Kotler
&
Keller, 2012)

Next step is the selecting marketing mix most appropriate for the target
segment(s) that is product positioning. In doing this step, the company is starting to
determine the choice of what the product means, the
choice
of where
the
company

competes, and the
choice
of how it differs from current and potential competing
products in the market targeting. (Doyle
&
Stern, 2006). Positioning
is
often

described 
 as 
 “the
 battle 
 for
 your
 mind”. Thus, the positioning should ensure
having a connecting between the customer and the firm brand. It is determined by a
series of factors including: (1) The nature of the produce and the product range, (2)
Product quality and performance, (3) Pricing levels, (4) The nature of the distribution
network used, (5) The types of advertising appeal, the media used and the nature of
anyone used to endorse the product, (6) Customer profiles, (7) Customer experiences
and word of mouth (Colin Gilligan and Richard M.S. Wilson, 2009). The
result
of

positioning
is
the
customer
value
proposition. Companies
should
aim
to
create

a
strong
competitive
brand
positioning to develop in the market targeting (Kotler

&
Keller, 2012)
2.2 Theory of marketing mix
2.2.1 The traditional theory of marketing mix
According to Kotler and Armstrong (2008), marketing is “a social and
managerial process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others.”

13
 Figure 2.6 A model of marketing, adapted from Kotler & Armstrong (2008)

Figure 2.6 is a model of marketing, which shows the different stages

used when creating a marketing strategy. The third stage is to make use of the
marketing mix tools as a toolkit of transaction marketing that will be used to persuade
consumers to purchase certain products and services. In the marketing, expand
segment positioning strategy to include all aspects of the marketing mix. In figure….,
the elements of traditional marketing mix was called the four Ps of marketing: product,
price, place, and promotion (Kotler
&Keller, 2012). The first people who claimed to
use the term marketing mix and that is was suggested to him by Culliton’s (1948) was
Borden (1965). McCarthy (1964) offered marketing mix, often referred to as the 4Ps-
the product, the price, the place, the promotion as a means of translating marketing
planning into practice (Bennett, 1997). The marketing mix is not a scientific theory,
but merely a conceptual framework that identifies principal decision-making managers
make in configuring their offerings to suit consumers’ needs. The tools of marketing
mix can be used to expand both long-term strategies and short-term tactical programs
(Palmer, 2004). These are the most important parts of marketing executives to
achieve sales targets, sales volume, and profitability; the company’s strong resources
are allocated for implementation marketing mix action (Gvldasmyt, 1999).

14
 Figure 2.7 The four P components of the marketing mix.
(Source: Adapted from Kotler & Killer, 2012)
In every company, the marketing mix activities are powerful concepts that are
important for the effective of marketing strategy. Therefore, the marketers must hold
and integrate all marketing mix tools (Kotler & Killer, 2009).
2.2.1.1 The product
“Product is the goods or services offered for exchange” (Marcus & Tauber,
1979). Kotler et al. (1999) suggested that a marketer should build an actual product
around the core product and then build augmented product around core and actual
product.

15
 Figure 2.8 Three levels of product. Adapted from Kotler et al. 2014.
The product is a combination of tangible and intangible aspects of the
products offered by the manufacturer to customers and followed by consumer demand.
It must provide value to a customer but does not have to be tangible at the same time.
The products can be classified as durable and nondurable, consumers and industrial
goods, perishable and nonperishable, finished and semi-finished. Basically, it involves
introducing products, presenting new products or improving the existing products.
There is no point in developing a product or service that no one wants to buy. Some
businesses decided what to offer first, then expect to find a market for it afterwards.
Successful companies find out what customers need, customers expect or want and
then develop, improve the right product with the right level of quality to meet their
expectations, both now and in the future. The perfect product provides more value for
the customer. Schulz (2001) argued that “consumers do not shop for lowest cost. They
shop for the highest value.” Schulz believed that good marketing skills help to build
and improve perceived values. So, the firm should have good product policies such as
a good way to create product’s value.
2.2.1.2 The price
The price means the monetary value of the product that has been fixed for
exchange purpose. The price is the amount a customer pays for the product. Pricing
must be competitive and must entail profit. The price needs to be competitive, but this
does not mean it has to be the cheapest in the market. Small businesses can compete
with larger rivals by offering more services, adding more value or better value for
money. The companies also need to make a profit. Pricing is the only element of the
marketing mix that generates revenue — everything else represents a cost to the
company. Price positions of the company in the marketplace — it tells customers
where to place of company in relation to the competitors. Remember that the more the
company’s charge, the more value or quality the customers will expect for their money.
Price is a marketing tactic that can be used both as a stabilizing and a destabilizing
tactic. (Nilson, 1995). In the retail market, businesses may increase or decrease the
price of the product if other stores have the same product. The pricing strategy can
comprise discounts, offers, and the like. In fact, pricing policy is impacted by many
factors such as products quality, products value, customer demand, and competitor’s
products. As a corollary to this, Pitt, Berthon, and Morris (1997) argued that
increasing competitor hostility leads to more price-orientated competition. This is

16
more than mere price-cutting and includes greater creativity in the use of price
variables, such as price differentials according to market segments, time of
consumption, payment schemes, and discount structures. Pricing approaches are
more complex, more customized. Therefore, companies need to use price tactics
wisely (Berthon & Morris, Pitt, 1997; Kumar, Scheer & Kotler, 2000; Mohr, 2001;
Roberts, 2000). Final price is selected after checking with three criteria: profit
objectives, market constraints and coherent with positioning.

Table 2.1: Price strategies summary

Source: Adapted from Baeyens (2009)
2.2.1.3 The Place (also referred as distribution channel)
The place refers to the place where customers can buy the product and how
the product reaches out to that place. The place is not always a physical building such
as a retail outlet, store or shop, but includes any means by which the product is made
available to customers. The tasks in the marketing distribution channel are
communication, selling, shipping and storing, and servicing (Abrahamsson & Berge,
1995). The product must be available in the right place, at the right time and in the
right quantity, while keeping storage, inventory and distribution costs to an acceptable
level. The place also means ways of displaying product to customer groups. This is
done through different channels, like the Internet, wholesalers, and retailers.
Wholesalers and retailers have to be persuaded to stock the product and end customers
to buy them. This could be in a shop window, but it could also be online. Nowadays,
e-commerce is popular in the world. E-commerce operations that sell exclusively on
the Internet must place even more emphasis on the company website and other online

17
activities as there are fewer points where the customer will interact with the company.
About online shopping, it is a relatively new way of differentiating the distribution
channels of the company. This new phenomenon is giving the customer the
opportunity to compare products through description about product attributes, reviews
from other customers, prices and evaluate different retailers. This information is
presented online and is easy accessed by the customers. (Ståhlberg & Maila, 2009).
Place policies can have a significant impact on how the customers are reached and
maximizing the value for customers. (Queensland Government, 2006). According to
Friedman and Furley (1999), there is a simple formula that explains why channel
differentiation is of great importance. Adding more channels make more sales. The
advantage of having many distribution channels is that it is easier for consumers to buy
products from more sources. The product is more available. The disadvantage with
adding to many new channels is that it is costly for the company and it can
make the company positioning themselves at the wrong market, targeting the wrong
customers. So, strong and differentiation distribution system (places) will make
customers buy products easier and get competitive capacity of companies.

2.2.1.4 Promotion
It includes the various ways of communicating to the customers of
what the company has to offer. It is about communicating about the benefits of using
a particular product or service rather than just talking about its features. This element
in marketing mix includes various activities like paid advertising, public relations,
sales promotions, direct marketing and on-site promotions (Queensland Government,
2006). The specific mix of advertising, personal selling, sales promotion, and public
relations are the tactics that a company uses to pursue its advertising and marketing
objective (Bannett, 1988). Marketers have to consider “what environmental
information should be communicated and how it should be communicated” before
promotion (Polonsky & Rosenberger, 2001).
The American Association of Advertising Agencies (4A's) mentioned and
defined Integrated Marketing Communications (IMC) as “a planning process designed
to assure that all brand contacts received by a customer or prospect for a product,
service, or organization are relevant to that person and consistent over time.” (Source:
http://imc.wvu.edu/about/what_is_imc). The promotional mix is the tools for IMC
(Figure 2.9)

18
 Figure 2.9. The promotional mix
Source: Adapted from George E. Belch and Micheal A.Belch, 2003
Promotion must gain attention, be appealing, send a consistent message and,
above all, give the customer a reason to choose product rather than someone else’s.
Promotion does not just mean communicating with the customers. It is just as
important to communicate with staff, fellow employees about the value and attributes
of the products. They can then pass on the knowledge to their customers. (Marketing
and the 7Ps, 2015).
Roxana Codita in Contingency Factors of Marketing-Mix Standardization
(2010) demonstrated that the relevance and impact of different factors across the
individual marketing mix elements, with promotion and distribution elements being
affected by marketing infrastructure aspects while product and pricing elements were
mainly determined by consumer characteristics. By using marketing mix, firms can
further meet their customer’ needs and expand their sale. (Purashraf Yasanallah,
Bidram Vahid, 2012). There are closely link & interaction between factors in the
marketing mix. The mutual interaction can be examined through the following units:
consistency, integration, and leverage. Consistency implies the logical thinking
between the collaboration of the elements. It is logical to set a high price on a high-
quality product or to use cost-efficient ways with mass distributed goods.
Integration means balanced coordination of the elements of the marketing mix.
Leverage shows the beneficial points to support using the elements. If one of the
elements has more effective results than others, it is vital to invest more into this
element in order to get superior results (Hanna & Dodge, 1997). In Marketing mix
strategy adaptation of Shireen Khan (2011), adapting the marketing mix is important
to improve a retailer’s position in the market. In fact, each element of marketing mix
has a certain influence on business efficiency in each firm. Marketing mix stands for
4P’s of the product, price, promotion, and place. It was proposed by Jerome McCarthy
and is successfully used till now by many marketers.

19
 2.2.2 The 7Ps theory of marketing mix
McCarthy defines 4P’s as “combination of all of the factors at a marketing
manger’s command to satisfy the target market”. Later on, for the business concerned
with service, 4Ps are not enough. McCarthy's 4Ps mix has increasingly come under
attack with the result that different marketing mix approaches have been put forward
for different marketing contexts. I Booms and Bitner's (1981) proposed 7Ps marketing
mix for services to be extended to other areas of marketing. Mohammed and Pervaiz
(1995) showed how the 7Ps framework can be applied to consumer goods and reported
the results of a survey of UK and European marketing academics, suggesting that there
is a high degree of dissatisfaction with 4Ps. It also suggests that the 7Ps framework has
already achieved a high degree of acceptance as a generic marketing mix among both
groups of respondents. Overall, it provides a fairly strong support for the view that
Booms and Bitner's 7Ps framework should replace McCarthy's 4Ps framework. The
7Ps framework focuses on the companies who business services or their services that
create product’s value. The marketing mix 7Ps includes product, price, place,
promotion, people, process, physical evidence. From figure 2.10 can be seen the
concept of 7Ps.

Figure 2.10: The concept of the marketing mix. Adapted from Palmer (2004)
The tools can be used to develop both long term strategies and short
term tactical programs (Palmer, 2004). Booms and Bitner (1981) defined 7Ps of
the marketing mix as follows: product; price; place; promotion; people; process;

20
physical (evidence). Three Ps namely people, process and physical (evidence) were
added to the traditional 4Ps.

2.2.2.1 People
The people is a vitally important element of the service marketing mix. This
refers to customers, employees, management and everybody else involved in it.
It is essential for everyone to realize that the reputation of the brand that the companies
are involved with is in the people's hands. Everyone who comes into contact with
firm’s customers will make an impression. Many customers cannot separate the
product or service from the staff member who provides it, so firm’s people will have
a profound effect — positive or negative — on customer satisfaction.
Nowadays, in a market where technologies, systems and products are
easily copied by competition, companies should focus on people for sustainably
superior performance. They have to be reactive, flexible and responsive to changing
customers’ needs. Hence, companies should concentrate their efforts on training their
staff (Armstrong, 2005).The quality of services depends on the way it is delivered. The
more the sales force will be trained and listening to the client’s expectations, the
more the client will be satisfied and willing to come back. There are several skills
staff members should develop to provide the best service quality: developing
knowledge, experience, and qualification, being adaptable to changing technology and
improving patience, tolerance and empathy (Bothma and Gerber, 2008).
According to Krishna et al. (2010), if customers do not like the person who
they are doing business with and the person gives an incompetent feeling for the
customer, it affects directly to the business results. Besides, providing a good training
for all employees and taking into service only people who have the right attitude
towards the job and managing the company as an inspiring style provides good
business results. Every company has their own alignments and policies concerning
their actions. When thinking of personnel, this is a tough question; for example,
what the right capacity is, needed qualification of the employees, is there need for
further education, what is the right way to choose the personnel and, of course, how is
all this going to be managed (Dienstleistungsmarketing – services marketing, 2009).

2.2.2.2 Process

21
 It refers to the methods and process of providing a service and is hence
essential to have a thorough knowledge of whether the services are helpful to the
customers if they are provided in time if the customers are informed in hand
about the services and many such things. Many customers no longer simply buy a
product or service. They invest in an entire experience that starts from the moment
they discover companies and lasts through to purchase and beyond. That means the
process of delivering the product or service, and the behaviour of those who deliver it
are crucial to customer satisfaction. A user-friendly internet experience, waiting times,
the information was given to customers and the helpfulness of staff are vitality to keep
customers happy. Customers may want reassurance they are buying from a reputable
or ‘authentic’ supplier. The process ensures that companies systems are designed for
the customer’s benefit, not the companies’ convenience. The task and role of this
component of the marketing mix are to balance demand and supply (Purashraf
Yasanallah, Bidram Vahid, 2012).

2.2.2.3 Physical evidence

It refers to the environment and facilities needed by companies to provide
services to their customers. Purashraf Yasanallah, Bidram Vahid, 2012). Choosing an
unfamiliar product or service is risky for the consumer because they don’t know how
good it will be until after purchase. The company can reduce this uncertainty by
helping potential customers ‘see’ what they are buying. A clean, tidy and well-
decorated reception area – or homepage - is reassuring. Consumer cooperatives can
expand consumers’ choices by providing facilities like self-service, paramount
shelves, etc. as same as big shops and can prevent that a buyer leaves the company
without any purchase. Besides, the physical evidence demonstrated by an organisation
must confirm the assumptions of the customer — a financial services product will need
to be delivered in a formal setting while a children’s birthday entertainment company
should adopt a more relaxed approach.
Considering these components, the marketing seems easy to handle, allows
the separation of marketing from other activities of the firm and the delegation of
marketing tasks to specialists; and the components of the marketing mix can change a
firm's competitive position (Grönroos, 1994). If the company is able to ensure an
excellent marketing mix, the company could expect almost a certain success in the
future (Opařilová, 2009). The marketing mix is a set of controllable elements of

22
marketing tools and marketing strategies of a company in combining these elements.
Cutler says that a set of marketing mix variables can be controlled by the marketing
companies and institutions in their target market and its composition is required for the
reaction (Cutler, 2000). Elements of the marketing mix are a set of marketing tools
for achieving the goals of the institute of marketing (HaKansson and Waluszewski,
2005).
In this dissertation with the topic “managing marketing mix in the domestic
market of Minh Huong P.N.D Company limited”, Minh Huong is Fashion Company
include productions, business and retail products. Service is the important part to create
value and revenue of the company. So, the 7Ps framework will use in this research.

2.2.2.4 Managing the marketing mix

According to Michael J.Baker in marketing book, managing the marketing mix
is the central task of the marketer of firms. The main mission is that if marketing
professionals make and implement the right decisions about the features of the product,
its price, and how it will be promoted and distributed, then the business will be
successful. The goals of marketing mix management as the development and
implementation of a marketing mix tools that maximizes shareholder value. So, there
are three key activities of marketing mix management are development,
implementation, evaluation to enhance firm value.
There are two general approaches to the marketing mix decisions as the
traditional approach and the accounting approach.

Figure 2.11: The traditional approach to the marketing mix decisions

(Source: Adapted from Michael J.Baker, 2003)
In the figure 2.10, the function of the four Ps is to match each of these Cs. An
effective marketing mix is then one which offers a product that solves the customer’s
problem. The marketing mix policies to create the benefit and to convince the customer
to get purchasing decisions. The accounting approach was adopted when the firm in
the UK faced with poor returns. Return on investment can be increased in four ways –

23
increasing sales, raising prices, reducing costs or cutting investment. So, these levers
are the foundation to determine the marketing mix in detail below.

Figure 2.12: The accounting approach

(Source: Adapted from Michael J.Baker, 2003)
If the marketers start planning well, next step mission is from the marketing
plan to marketing action well, too. The marketing plan should define how progress
toward objectives will be measured. The firm should do the controls for monitoring,
adjustment, and implementation of the plan well to achieve marketing plan goals.
Marketing managers typically use budgets, schedules, and marketing metrics or KPIs
for monitoring and evaluating results. All the goals and budget for each month or
quarter should be spelled out to help manager review each period’s results and take
corrective action as needed (Kotler & Killer, 2012). There are many different
marketing measures. The marketer can divide evaluation into two parts: (1) short-term
results and (2) changes in brand equity. (Tim Ambler, 2001)
2.2.3 Marketing mix in the fashion industry
Industrial marketing refers to the marketing of goods and services from
one business to another (Source: Wikipedia). Each business field such as fashion
industry, tourism industry, the airline industry has some different characters in
marketing activities. This dissertation research marketing mix management of Minh
Huong Company in fashion industry, therefore, to mention specific characteristics of
the marketing mix in the fashion industry.

2.2.3.1 Fashion marketing

24
 The textile, apparel (clothing) and footwear industries are what many consider
being elements of a fashion industry (Bruce 2007). Fashion is an exciting, dynamic
and creative business. Fashion is about self-expression, emotion, and identity.
According to Bruce (2007), fashion reflects and pushes cultural and social boundaries.
Therefore, fashion essentially involves change, defined as a succession of short term
trends or fads. The competitive ethos of the fashion industry revolves around
seasonality. This is the most characters of the fashion industry. Another definition,
fashion is about creating. In order for the change which is intrinsic to fashion to take
place, the industry must continually create new products. Fashion, therefore, also
involves a strong creative and design component.
Fashion marketing is the application of techniques and a business theory that
centers potential customer of clothing and related products and services in order to
meet the long-term goals of the organization. For this reason, fashion design personnel
should readily appreciate the need to understand the customer’s perspective. Most
designers have a mental picture of a typical customer. Typical customer information
is supplied by the marketer who researches customer and market demand. The
relevance of fashion buyer behaviour is examined and links with marketing research,
market segmentation, and the marketing mix are established (Mike Easey, 2009). A
simple model of the interrelationship of fashion design and marketing can be seen in
table 2.2

Table 2.2 The fashion marketing concept.

Source: M. Easey. Fashion Marketing. Blackwall Science. London 2002.

2.2.3.2 Marketing mix of fashion industry

Businesses must apply the marketing mix to successfully sell a fashion product
to target customers. The term fashion marketing mix is used to describe the
combination of variables used by the fashion marketer to meet the needs of specific
groups of customers known as target markets. Fashion firms may select different mixes
to different market segments. In other segments, the company offers other ranges with
less design content and lower quality fabrics to a lower price at chain stores. Besides,

25
the marketing research and design research are the basic foundations for marketing
mix (Mike Easey, 2009). The fashion marketing process detail in the figure below.

Figure 2.13 The fashion marketing process.

(Adapted from Mike Easey, Fashion Marketing, 2009)
Basically, fashion marketing mix is also based on the theory of the marketing
mix. In which, there are some specific characteristics for elements of marketing mix
which will be described below.
a) The fashion product:
According to Jackson and Shaw (2009), the fashion product is the most
important part of a fashion marketing mix as it is: What consumers buy; The most
common way for customers to convey how fashionable are; A brand statement of
quality; The principal output of a fashion design process; The focus for the other
marketing mix elements; The tangible representation of a brand. A strong brand image
ties the product range together. Bruce (2007)

26
 Figure 2.14: Fashion products and services (Adapted from Fashion
marketing, 2009)

Fashion product life cycle has some specific characteristics that the fashion
year has two cycles – the spring/summer season and the autumn/winter one and the
fashion product is highly competitive and fast-moving. Besides, fashion product
provides special benefits for a customer that is to feel of being “in fashion”. The
fashion product is affected by fashion trend that refers to aspects of the appearance and
construction of fashion products that relate to a particular season. Such trends are
manifest in the appearance of fashion products, which are designed and manufactured
prior to being delivered in a season (Fashion marketing of Tony Hines and Margaret
Bruce.) Some common attributes of fashion trend are colour; fabric; print; silhouette;
styling detail; trim.

b) The Price:
The pricing of fashion product is impacted by cost-based pricing; market-
oriented pricing; its perceived value; matching of fashion trend. Customers are willing
to pay more for ‘aspirational’ products that make customers satisfaction and
conversely. Because the concept of the fashion company is to provide its products at a
reasonable price to its customers, it follows that customers find its prices quite
affordable (A Ben Sherman case study in businesscasestudies.com, Mike Easey, 2009)

c) Place:

According to Tony Hines and Margaret Bruce in Fashion marketing, many

fashion retailers realized that the style and design of their stores are very important. It
is the reason why they spend more money for periodically designing and refurbishing
their stores, because the central challenge lies in understanding the needs of
consumers, and hence providing the store environment that appeals to consumers’
needs. And, retailers should provide the flexible enough store environment that makes
shopping convenient, relaxing and fun, instead of merely providing racks of clothing
for consumers to choose from in the store (Reda, 1997). Nowadays the world has not
only the traditional distribution system, the Internet is becoming more mainstream as
a retail distribution channel. It is also a compelling channel for fashion goods (Beck,

27
2004) as it not only provides an excellent selling approach for a fashion retailer to
display their most up-to-date lines via photograph, video and sound technology, the
use of websites, social network have also enabled them to sell directly to their
customers.
d) Promotion fashion:
Promotion is one base element of the marketing mix, so it should comply with
the whole marketing mix. To develop a promotion strategy, a company should firstly
identify and understand the target audience. (Jobber, 2007) and the fashion company
is the same. Basic promotion fashion marketing used in the industry for TV, radio,
newspaper, magazine, online and outdoor advertising. ( www.utm.edu). Besides, some
other tools of promotion fashion should focus on fashion visualisation and
communication in relation to branding, graphics, fashion film, art direction,
advertising, sales action, exhibitions or events , sales promotion, trend forecasting.
Nowadays, the fashion industry is a great industry in the world. Fashion
marketing mix is becoming more quick response, flexible approaches and the constant
drive to offer innovative products to consumers have to be managed effectively and a
very important issue for the fashion company.

28
 CHAPTER III: RESEARCH METHODOLOGY

3.1 Objectives of the study and research questions

The objective of this study is to understand the marketing mix management of
Minh Huong in the domestic market. Based on these understanding, recommendations
are made for the company to manage its marketing mix more efficiently. As an
exploratory study, this research will use the marketing mix (7Ps) model. Based on the
objectives of this research, the below research questions are addressed.
1. How did Minh Huong choose its market segment?
2. What are the current Minh Huong’s marketing mix management policies?
3. How efficient is the management of Minh Huong’s marketing mix? (The
evaluation managing marketing mix of Minh Huong).
3.2 Research methodology
The research methodology is a systematic way to solve a problem. It is the
science of how research is carried out. In other words, the process by which researchers
go about their work of describing, explaining and predicting phenomena is called
research methodology. It is also defined as the study of methods by which knowledge
is gained. Its aim is to give the research planning (Rajasekar et al., 2013). There are
two main types of research methodology: quantitative- also known as traditional,
positivist, experimental, or empiricist and qualitative – known as constructivist,
naturalistic, interpretive, exploratory, post-positivist or post-modern perspective
(Clarke, 2005). The purpose of the qualitative research is to explore, describe, explain
and evaluate the data that was obtained from research (Haydam et al, 2011) whereas
the purpose of the quantitative methodology is to focus on testing hypotheses, looking
at cause and effect, and making predictions. (Johnson, & Christensen, 2008; Patton &
Cochran, 2002). Creswell (1994) suggested five criteria in selecting qualitative or
quantitative research method, namely, 1) researcher's worldview, 2) the training and
experience of the researcher, 3) researcher's psychological attributes, 4) nature of the
problem, 5) audience for the study. Therefore, the qualitative method is appropriate
method to be used in this study.
Qualitative research is characterised by its aims, which relate to understanding
aspects of social life, and its methods. In general, the qualitative method generates
words, rather than numbers, as data for analysis. These methods aim to answer

29
questions about the ‘what’, ‘how’ or of a phenomenon or issues that match with three
RQs of this research. Common qualitative study designs include ethnographic,
phenomenology, grounded theory, participatory action research and case study
(Nigatu, 2009). This qualitative case study is an approach that facilitates exploration
of a phenomenon within its context using a variety of data sources. The qualitative
case study ensures that the topic of interest is well explored and that the essence of the
phenomenon is revealed (Baxter & Jack, 2008). According to Yin (2003), a case study
design should be considered when: (a) the focus of the study is to answer “how”,
“what” and “why” questions; (b) the behaviour of those involved in the study cannot
control; (c) want to cover contextual conditions because they are relevant to the
phenomenon under study; or (d) the boundaries are not clear between the phenomenon
and context. The focus of this research is to explore marketing mix management of
Minh Huong to answer the research questions of “how” and “what”. Thus, the
qualitative method using case study is suitable in this research.
Qualitative case study method will be used in this research. To use qualitative
method means that this research will use data that are primarily & secondary data to
analyze. In this dissertation, the most common sources of qualitative data are from the
external sources such as fashion industry development forecasts, the research on
consumer behaviour and the internal sources such as Minh Huong’s reports,
documents and different types of individual interviews. This study employed in-depth
interviews with Minh Huong owners, top and middle managers, marketing and sales
division staff, design division, production division. Data and information of Minh
Huong from February to March 2016 are also collected for this research. Subsequently,
the information will be synthesized and analyzed to answer the three research
questions (RQs).
3.3 Scopes of the study
The research project aims to explore Minh Huong’s management of marketing
mix in the domestic market. Hence, the study will be implemented in Northern
Vietnam, which is Minh Huong's main domestic market. In particular, this study
focuses on home-wear product that has been Minh Huong’s core product line for over
10 years and accounted for 80% of total company revenue. Three home-wear brands
including Sunfly Prime, Sunfly Sport, Sunfly Sweethome will be studied. The 7Ps
marketing mix model, which is suitable for small and medium companies like Minh
Huong will be applied in all studies. Members who will be interviewed to clarify the

30
issue of the study are owners and Minh Huong's employees. They include members of
the board of directors, managers, employees in different departments who related to
elements of marketing mix.
3.4 Sample
According to Dworkin (2012), 25 to 30 participants is the minimum sample
size required for a qualitative study that uses in-depth interviews to reach saturation
and redundancy. For this research, the required minimum sample size can be achieved
as Minh Huong has around 100 staff. To select participants for the interviews, the
researcher reviewed Minh Huong’s company structure and chose 30 members who are
closely related to Minh Huong marketing mix management that is about 30% its
employees.

30

Total employees
Total interviewees

100

Figure 3.1: Rate of interviewees on Minh Huong’s employees

3.5 Research planning process
1) Identification of the problems of Minh Huong
2) Assessment of value and significance of the study.
3) Development of the research methodology
4) Determination of data collection methods and procedures (includes primary
and secondary data collection)
5) Determination of analytical procedures (includes data preparation and
statistical analysis)
6) Evaluation of results and findings.
7) Final report including discussions, recommendations, and conclusion.

3.6 Data collection procedures

31
 Ritchie and Lewis (2003) defined four characteristics of qualitative research
and identified the data collection methods as follow. First, the aim of the research is in
providing an interpreted knowledge of research subjects by learning about “their social
and material circumstances, their experiences, perspectives, and histories”. Second,
the sample size is generally small and research participants are purposely selected
based on the criteria for a study purpose. Third, data analysis may be conducted by
producing detailed descriptions or classifications, identifying patterns of association,
or developing typologies and explanations. Fourth, the results of qualitative research
“tend to focus on the interpretation of social meaning through mapping or representing
the social world of research participants”. The data for this study were collected from
a variety of sources (including primary data and secondary data with sample match
with the objectives). Next, the researcher analyzes the data and then evaluates the
findings and provide recommendations and conclusions. Whereby, the data collection
is carried out two flows, then all data is integrated and analyzed to answer the three
research questions.

Minh Huong's Sales

target, sales result;
Internal sources Marketing mix plan;
(Minh Huong) Cost information;
Past market
research...
Secondary
data The fashion
industry
Data sources development
forecasts, the
(Qualitative External sources research on
method) comsumer
behaviour, the
development
competitors
Primary Interview method
data (face to face)

Figure 3.2: This research’s data collection flow

3.6.1 Secondary data

Secondary data are data that were gathered and recorded for other purposes.
“Secondary data complements, but does not replace primary data collection and should
be the starting place for any data collection” (McCaston, 1998). Secondary analysis of
qualitative data is the use of existing data to find answers to research questions that

32
differ from the questions asked in the original research (Hinds et al., 1997). To have
an assessment of the fit between the primary datasets and the secondary research
questions is essential. (Secondary analysis of qualitative data: a valuable method for
exploring sensitive issues with an elusive population, 2010).

1. Determine the 2. Determine

purpose & type person can provide 3. Identify data
information. information. sources.

Figure 3.3: the process of collecting secondary data consist

Heaton (1998) recommends outlining the original study, the process of data
collection when carrying out a secondary analysis. The process of collecting secondary
data consist three steps (McCaston, K.M, 2005).
1. Determine what the purpose of the data collection is and what type of
information is necessary to collect to meet that purpose.
2. Determine who would likely have collected the information the
researcher is seeking.
3. Identify what data sources are available to gather the necessary
information.
There are multiple data sources available, depending on the purpose of the data
collection. With the purpose of this study, the researcher will collect two types of
secondary data information that are external and internal data. The external data were
collected from the Internet, magazines, newspaper, and libraries about fashion market,
trend of consumers’ habit and competitor scale. The internal data includes business
goals, sales target, revenue, profit, marketing mix planning, marketing mix cost from
distributor reports and feedback as well as past market research reports of Minh
Huong. Information was collected from the board of directors, employees of the sales
and marketing divisions, manufacturing division, finance division and HR division.
All secondary data were used to support for answering three RQs of this study.
3.6.2 Primary data - In-depth interviews.

33
 “Primary data are data that were previously unknown and which have been
obtained directly by the researcher for a particular research project” (Donald Currie,
2005). Primary data means original data that are generally fresh and collected for the
first time. Collecting primary data depend on the objectives of the study. This study
used qualitative case study method, therefore, the process of collection of primary data
is implemented with five steps (Ron Pereira, 2007).
Steps Contents
1. Clarify primary data collection goals/purposes.
2. Type of primary data; who can provide information.
3. Defining data sources.
4. Begin data collection information
5. Integrating the observations, responses and recorded facts in the
themes
Table 3.1: The process of collecting primary data.

Interviewing method and type of data is unstructured text match with these
research objectives. The researcher used structured interview face-to-face to build
interview questions to answer the three research questions. As a result, thirty
employees who involved in marketing mix management were interviewed to find
answers for this research. The interviewing list consisted of a director, two vice
directors, marketing manager, sales manager, five marketing staff, six sales executive,
two supervisors, five stores manager, purchasing manager, technical and production
manager, quality control manager, design manager and three designers. They are
employees who have a direct role in the building, development, implementation, and
evaluation of Minh Huong’s marketing mix. The interviewing schedule was built to fit
Minh Huong’s members timing. All information was collect in themes. The goals,
schedule and overview content of the interview were sent to the interviewees before
implementation. During the interview, the interviewer gave open questions and asked
factual questions before the opinion questions, then followed by three research
questions. These conversations sought understanding and interpretation of Minh
Huong’s marketing mix management. The interviewer acted as a reporter who
objectively collects and records information from interviewees. In the process of data
collection, the themes were used to give information for each question. Depending on
the role or division of the participants, the interviewer asked the in-depth questions of

34
the marketing mix elements. For example, with members of the design division, the
product issue such as design process, design trends, design samples, fabrics, and prints
were asked. When the interview ended, the researcher made sure all necessary data
were collected. Three main questions were given to all interviewees are the three
research questions:
1. How did Minh Huong choose its market segment?
To collect information for this question, 30 Minh Huong’s members were
asked about the market segment that was chosen by Minh Huong. All questions and
answers were put in the theme of the first question.
2. What are the current Minh Huong’s managing marketing mix policies?
On this question, the researcher focused on the clarification of the policies of
7Ps that have been used in the detailed description. Then, the researcher collected the
evaluation of the Minh Huong's managing marketing mix effectiveness. All data were
put the theme of this question.
3. How efficient is the marketing mix management of Minh Huong?
To clarify this question, a theme will be given and the researcher will record
the 30 members’ answers about Minh Huong. The objective is to find out Minh Huong
evaluation of marketing mix management. Thereby, the information will be received
and analyzed to show the answer.

3.7 Data analysis procedure

After collecting all primary data and secondary data, quantitative research
techniques generate a mass of numbers that need to be summarised, described and
analysed. Characteristics of the data may be described and explored by drawing graphs
and charts, doing cross tabulations and calculating means and standard deviations.
(Anne Lacey and Donna Luff, 2009). There are some approaches to analyze qualitative
data, such as Grounded Theory or Framework Analysis. Framework Analysis shares
many of the common features of much qualitative analysis, and of what is often
called ‘thematic analysis’ (Ritchie and Spencer, 1994). According to Anne Lacey
and Donna Luff , the benefit of Framework Analysis is that it provides systematic
and visible stages to the analysis process. Framework analysis has five key stages.
These can be undertaken in a linear fashion and therefore all data can be
collected before analysis begins, although framework analysis can equally be
used when data collection and analysis occur concurrently. Key stages of

35
Framework Analysis: Familiarization; Identifying a thematic framework; Indexing;
Charting; Mapping and Interpretation.

Figure 2.4: For example of thematic

(Source: Adapted from Anne Lacey and Donna Luff, 2009)

Generating themes from data is a common feature of qualitative methods and

a widely used analytical method (Joanna Smith MSc, 2011). According to Strauss and
Corbin (1990), themes, or categories, are the classification of more discrete concepts.
The concepts are grouped together under a higher order, the most abstract concept
called themes. Then, to analyze data, the codes will be developed for initial themes.
According to Tilahun Nigatu (2009), the process of qualitative data analysis with
exploratory research type includes four steps.
Step 1: Organizing the data
Step 2: Identifying themes
Step 3: Sort data into themes
Step 4: Using the themes for descriptive analysis
Firstly, the primary data of the interview will be cleaned which focuses on
reviewing, data and removing that is the lack of linked with research content. The
information has the same content of different interviewers are gathered and marked
with labels. Similarly, the secondary data are synthesized and put into labeled content.
For example, in the second research question, the pricing policy information from
different interviewee is summarized and marked with the price label. Next, the themes
are guided by research question and data. In this case, there are three themes
corresponding to three RQs. Themes will structure, label and define data. Coding will
be built to match with three themes. The first theme is “how did Minh Huong choose

36
market segment”, coded as how-01. The second theme is “what are current Minh
Huong’s managing marketing mix policies”, coded as what. The third theme is “how
does efficient managing marketing mix of Minh Huong”, coded as how-02. Finally,
the researcher implements descriptive analysis data.

Minh Hương's
Managing marketing
mix in domestic
market?

Theme: How did Minh Theme: How does efficient

Theme: What current managing marketing mix
Huong chosen market marketing mix policies?
segment? of Minh Huong?
Code as what Code as how-02
Code as how - 01

Figure 3.4: Themes and codes list of this research

In this qualitative case study research, data analysis methods used framework
approach and determined themes that match with the marketing mix 7Ps model. Next,
all information was compared with all knowledge, reports of previous research in
chapter II to analyze data. Based on this analysis, the three research questions were
answered and conclusions and recommendations were given.

37
 CHAPTER IV: FINDINGS

This chapter presents the findings from the secondary data and interviews to
answer the research questions. Firstly, the secondary data was collected from internal
and external sources including Minh Huong’s reports, the market information available
on the Internet and the economy, social data from the General Statistics Office (GSO).
Then, 30 Minh Huong’s employees whose duties were related to managing marketing
mix were interviewed. Next, the thematic analysis was used to identify the common
issues that recur, and identify the main themes that summarize all the views the
researcher has collected. Finally, the results will be presented and the findings of Minh
Huong’s marketing mix management will be given.
4.1 Minh Huong Company Ltd.
Minh Huong is a fashion company that had main market segmentation in the
Norther of Viet Nam. Initially, Minh Huong started with one small shop in Ha Noi,
selling fashion products. At that time, when most of the home-wear brands were cheap
with simple design and low quality, there was only one high-quality home-wear brand
- Winny. It is important to mention that in Viet Nam, there has been a special fashion
culture where most women wear body fit suit (typically made from cotton fabrics) not
only when they stay at home but also to go out and shopping. As a result, in 2006 Minh
Huong’s owner decided to focus on the home-wear market in the North of Viet Nam.
The company launched OPND – a high-quality home-wear brand. From 2006 to 2008,
Minh Huong’s distribution system continually was developed. The Minh Huong’s
retail chain was built with 18 stores in 5 areas were opened and operated effectively.
Customer demand changed and was segmented, that why Minh Huong improved its
products. Sunfly was a new advanced home wear brand of Minh Huong that was
presented to customers in 2009. Until now, Sunfly has been the most popular brand of
Minh Huong in the market. Minh Huong’s home page is www.sunfly.com.vn.
Minh Huong’s mission: In this case, Minh Huong’s mission was finding the
relevant style products to fit the customers need. And then, create ideas, exploited
innovation home wear products. Maintained its position as the 2nd of the home wear
market in the north of Viet Nam.
Minh Huong’s objectives (2015-2020) are implementation differentiation
products and market development strategy are successful.

38
 Minh Huong’s values are with innovative and differentiation products, Minh
Huong expected to improve Sunfly brand value, its production value and to develop
business operations.
Minh Huong’s structure is in the detail below.

Director

Vice Director of
Vice director
production

Purchasing
Design Division
Division

Technical and Business

Production
Division Division

Quality control Marketing

Division Division

Factory
HR Division
(Outsource)

Finance Division

Warehouse and
transport
Division

Figure 4.1 Minh Huong’s structure

(Sources: Minh Huong’s ISO documents)
4.2 Data collection process
Firstly, the researcher sent a list of the required secondary data to Minh
Huong’s director, which covers data on core business process, sales target, sales
results, marketing mix plan, financial report, cost information, past market research
and annual reports from 2013 to 2015. Next, the secondary data from external sources
were found and collected, including data on the fashion market of Vietnam, the
competitors of home-wear fashion, the population, income, spending at urban and rural
in the Northern area of Vietnam. All data were collected to help the researcher from
an overview about the home-wear fashion, Minh Huong Company and its marketing

39
activities that were the background knowledge for the face-to-face interview. After
that, the interview schedule was sent to 30 interviewees together with three research
questions for better preparation. With the support from Minh Huong’s director, 100%
of invited participants agreed to participate in the interviews. The positions and
occupations of interviewees are displayed in table 4.1 below:

No The position of interviewees Number of Percentage

Interviewees (%)
1. Broad of Director (CEO, Vice directors) 3 10.0
2. Manager division (include Design manager, 6
Marketing manager, Sales manager,
purchasing manager, technical and
production manager, quality control
manager) 20.0
3. Sales supervisor 2 6.7
4. Store manager 5 16.7
5. Staff (include five marketing staffs, six sales 14
executives, three designers) 46.6
6. Total 30 100

Table 4.1: The position of interviewees

Table 4.1 shows that there are different positions with different responsibilities
of the interviewees, thus, their information is useful for the data analysis. 10% of the
interviewees are a director and vice director, meaning they are in high-level
management. Especially, one of the interviewees is CEO of Minh Huong, who
established the business. Thus, he has a full understanding of the company and its
marketing mix management. There are 20% respondents in the middle management
level. These interviewees participate in the designing, developing, controlling
marketing mix policies. They also have good knowledge about the Vietnam fashion
market. Therefore, their answers are reliable for input data of this study. In the
interview, 16.7 % of interviewees are those who implemented, managed, controlled
elements of the marketing mix in the stores. They understand the advantages,
disadvantages as well as customer feedbacks of these marketing mix campaign. 6.7%

40
of interviewees has the direct connection with franchises and wholesalers, therefore,
they have knowledge of Minh Huong’s business partners’ demand of the products and
the discount policy. The staff of Minh Huong accounted for 46.6% interviewees who
are in direct contact with customers, therefore, they have experienced the positive or
negative customer feedbacks about its product and services. They are the people who
give the practical and reliable answers for this study.
4.3 Minh Huong’s marketing mix management process
The process of determining Minh Huong’s market segmentation is part of
determining its STP, which was an indispensable part of its marketing management
process. The following is the detailed explanation of this process. Minh Huong applied
quality management system ISO 9001: 2008 in 2013. The implementation processes
were described in the ISO documents, in which, the researcher found out it is
identifying market segmentation and building marketing mix are two main information
to help answer RQs. According to the primary data collected and Minh Huong’s ISO
documents, Minh Huong’s marketing management process is described below.

Objectives and
•(1)Corporate strategy planning •(5) Organizing
•(2) Marketing strategy •(6) Implementing
(include STP- •(3) Marketing mix
•(7) Measuring results
Segmenting, targeting, objectives
•(8) Marking report
positioning) •(4) Marketing mix plan
& campain

Implementing
Strategy
& controlling

Figure 4.1 Minh Huong’s marketing management process

(Source: Minh Huong’s ISO documents)

In figure 4.1, after Minh Huong's corporate strategy is built, the marketing
strategy is shaped, which includes determination of STP (Segmenting, targeting,
positioning). Then, Minh Huong set up the tactical marketing mix plan. Therefore,
Minh Huong’s STP is the foundation for all marketing mix activities. In the building,
Minh Huong’s marketing strategy process, the segmentation, the targeting and the
position of the product were determined. Then, the marketing division proposes the

41
marketing mix objectives and targets to ensure they could meet the company’s
marketing strategy goals.
Target and policy elements of the marketing mix were built in the following
sequence: (1) the product, (2) the price, (3) the place, (4) the promotion, (5) the people,
(6) the process, and (7) the physical. The objectives were based on opinions of the
relevant departments. The product purpose and target are also described in details.
After that, the structure of marketing mix planning and campaign is described, which
should ensure a cost within marketing mix budget. Implementing and controlling
marketing mix plan are further steps that include organizing, implementing, measuring
results, making reports to next marketing mix plan. It is noticed that there are the
similarities between the process of developing and managing to market and the process
of planning, implementation, and controlling of marketing given by Kotler (14th). The
process was mentioned in figure 4.1 to help Minh Huong effectively management its
marketing mix. However, the turnover rate of marketing staff is high, leading to
unstable in the way building marketing mix. Therefore, there were times, the building
and implementation STP and marketing mix policy was forced to cut a few steps such
as setting objectives without a fixed marketing strategy. Minh Huong's director stated
that the company’s planning and implementation process are affected by human
resources, especially the marketing staff.
The strengths and weakness of managing marketing mix process are as follows.
• Minh Huong's strength of managing marketing mix is the existing
managing marketing mix logic process with corporate strategy and STP is the platform.
• The weakness is the controlling implementation process when it is
unstable.
4.4 The current Minh Huong’s market segmentation.
4.4.1 The current Minh Huong’s market segmentation, targeting,
positioning.
4.4.1.1 The current Minh Huong’s market segmentation.
In 2005, Minh Huong had only one small shop in Ha Noi city that sold many
random fashion products. Initially, Minh Huong’s target customers were both male
and female. With the economic growth, customer’s demand in fashion industry
increased. There were many business opportunities for fashion companies. There has
been a unique Vietnamese culture of home wear fashion, where almost all women wear
body fit suit when they stay at home. At that time, in the Northern market, there were

42
many cheap & low-quality products but not many high-quality brands. There was only
one high-quality brand home-wear in the market, which was Winny. In 2006, after
conducting a market research, Minh Huong’s owner decided to choose the home-wear
product as target market segment for female consumers in the North of Viet Nam, with
the high-quality product positioning was the main business field. Minh Huong
launched OPND – a high-quality home wear brand. The company target customers are
women who live in the city and have an income of more than 4.000.000 VND per
month. Due to the volatility of the market and changing customer behaviors, Minh
Huong replaced OPND with Sunfly, which was a new advanced home wear brand in
2009. Initially, Sunfly home-wear had three labels: Sunfly-Prime, Sunfly-Lady, and
Sunfly-Sport. Sunfly-Prime is the label for women from 25 to 45 years old and Sunfly-
Lady for over 45 year-old women. From 2013 to 2014, the home-wear market is
becoming stagnant with declining growth despite the high growth rate of the
Vietnamese economy and population (Appendix 4.1) Thus, Minh Huong’s profit in
2013 and 2014 declined together with many other reasons. After a period of
development, Sunfly-Prime became the “cash-cows” and Sunfly-Lady became the
“dog” label (Appendix 4.2) as can be seen from the event, changing, adjusting and
developing home-wear STP was done. Up to now, Minh Huong still wants to target
various customers. That is the reason why Minh Huong developed different labels of
home-wear products for different consumer targets with the similar brand positioning
strategy. In January 2015, Sunfly-Sweet Home is launched, Sunfly-Lady was
eliminated in the market. Currently, Minh Huong’s three labels for home-wear
products are Sunfly-Sport, Sunfly-Sweet Home, and Sunfly-Prime. Minh Huong
researched and selected market segmentation for each home-wear label. According to
Minh Huong’s documents and data from the interviews, the researcher found out the
company’s marketers have tried to define segments by looking at descriptive
characteristics: geographic, demographic as presented in details below:

Field products Home-wear

Label Sunfly-Sweet Home Sunfly-Prime Sunfly-Sport
Gender Female

43
 Demographic age From 18 – 25 years From 26 – 55 years olds From 18 – 35 years
olds olds
(Almost are single)
Income per − More − More 8.000.000 đ − More
month 7.000.000 đ 7.000.000 đ
(Maybe living with
parents; low income
but high disposable
income)
Geographic Target customer primarily live in metro cities, towns and regions:
region − The North of Vietnam such as Ha Noi, Vinh Phuc, Bac Giang,
Bac Ninh, Thai Nguyen, Viet Tri, Hung Yen cities;
− The Middle of Vietnam such as Vinh, Thanh Hoa, Nghe An, Da
Nang cities.

Table 4.2: The current Sunfly home-wear segmentation.

(Source: Minh Huong’s marketing strategy 2015 and the findings from the
interview)
4.4.4.1.2 Minh Huong’s home-wear targeting.
Minh Huong’s targeting and brand positioning were selected and identified
based on its segmentation. Based on Minh Huong’s STP, the marketing division
develops and implements marketing mix tactics.

Field Home-wear
products
Label Sunfly-Sweet Home Sunfly-Prime Sunfly-Sport
Gender Female focus on young Female focus on young & Female focus on
women middle-aged women young women
Occupation Students, office Office workers and senior Students, office
workers, young and managers, teachers, workers, young and
fashionable women… upper-middle-class fashionable
housewives, public women…
servants, self-employed

44
 traders… The small Office workers and
traders, international senior managers…
public servants, office
workers
Loyalty status Medium Strong Medium
Psychographic − Outdoor- − Culture-oriented. − Sports-
lifestyle oriented − Practical style oriented
− Young women − Want to be − Interested in
who are following perceived as sexy and sport trend
Korea and Europe style beautiful
User status − Nonuser, ex-user, potential user, first-time user, regular user
Consumer − Young women − Women who want − Youthful
behavioral who are keen fashion to look good but need to and dynamic.
characteristics followers. have comfortable clothes − Sporty
− Youthful, as well clothing is their
lovely, model fashion. − Having romantic favorite as it is easy
inclinations. to wear and can be
− Glamor and bought relatively
loving inexpensively.
− Family-oriented.

Table 4.3: The current target market sections of Sunfly home-wear in detail.
(Source: The Minh Huong’s marketing strategy 2015 and the finding in the
interview)
4.4.1.3 The Minh Huong’s home-wear positioning
In the last step in STP, Minh Huong decided to position its home-wear products
as a product for high-end customers. This firm chose to do this through product quality
and product pricing. Minh Huong’s home-wear brand positioning shows that Sunfly
home-wear, which is the main brand of Minh Huong, is fashion loungewear for
beautiful, and glamorous Vietnamese women. As the company’s core target customer
is female from 18 - 55 years old who have an income of more than 7.000.000 VND
and live in urban cities, it selected the marketing mix policy to fit this STP.

45
 High price

Low quality High quality

Low price

The current Sunfly home- wear position

The Sunfly home- wear competitors

Figure 4.2: Sunfly home-wear product positioning

(Source: The Minh Huong’s marketing strategy 2015)
According to the content above, Sunfly home-wear market segmentation was
divided into three distinct consumer groups as Sunfly-Prime, Sunfly-Sweet Home,
Sunfly-Sport. These groups have common needs by the geographic, demographic
methods based on the gender, demographic age, income per month, geographic region
criteria, and would have the same reaction to a certain marketing activities. Sunfly
home-wear was selected for the target customers who were defined as the women of
more than 18 years old, living and working in urban, metro cities, provinces or large
towns. The target customers in the urban with the individual fashion trend are women
who are confident in their style and they like to express themselves by their
appearance. For each group of customers with individuals' perceptions and attitudes
towards style, fashion trend can select appropriate product labels. The positioning of
Sunfly home-wear brand is the high-quality product for the target consumers who are
having good income from 7.000.000 VND.
4.4.1.4 Findings of Minh Huong segmentation Commented [VTH2]:
Commented [VTH3]: Strengths of what?
a) Strengths

46
 Minh Huong analyzed and selected its segmentation, targeting, and positioning
following the marketing theory background. Therefore, it had a strong foundation to
build marketing mix policies.
Sunfly’s segmentation was built and adjusted in accordance with market
fluctuations.
Minh Huong marketers have based on three clear Sunfly market segments with
the distinct needs and want to help them understand consumer behavior, market target,
customer demand. Those Sunfly market segments helped to build effective its
marketing mix policy.
Minh Huong has been chosen the female was its target customers that were the
good selection. Because, up to 2/28/2016, Vietnam’s population was 94,104,871 and
ranks 14th among the most popular countries in the world (Appendix 4.3). In addition,
the number of males/100 females 2014 is 94.3 in the urban (Appendix 4.4). Vietnam’s
stable economic growth rate (Appendix 4.5) and the population of approximately 90
million people provide an attractive opportunity for the development of the retail
industry, Thus, Minh Huong has a good business fashion opportunity for female.
According to the Vietnam General Statistics Office, in 2014, the total value of
goods and service in the North and a part of Middle of Vietnam was about 43 percent
the whole country (Appendix 4.6). The per capita income of urban was more doubled
than in rural areas (Appendix 4.7). The cities segment with higher per capita income
is consistent with the Minh Huong position high-quality products. Thus, Minh Huong
chose segmentation as a potential market for retailing. Commented [VTH4]: Weaknesses of what?

b) Weaknesses
The population structure between the urban and countryside was around 33:67
percent, in which the male and female ratio was 49.33: 50.67 percent. (Appendix 4.8)
It means the number of women in the countryside is higher than in the urban.
Therefore, the rural market with a large female population and the increasing of
income is also the potential segment for home-wear fashion development. It would be
a weakness if Minh Huong keeps ignoring this market.
Now, Minh Huong is facing many challenges. With the similar segmentation,
there are many strong domestic competitors that have major investments in marketing
mix activities (Minh Huong’s marketing report 2015). It leads to an increase in the
level of competition in the home-wear fashion market. In addition, Vietnam has joined
WTO and fully opened the retail market to foreign firms in 2015. There are many new

47
entry brands in Vietnam fashion market focus on young girls and women. Therefore,
Minh Huong must pay attention not only to the domestic but also foreign competitors.
It is noticed that Minh Huong is a lack of experience in developing home-wear
products for the target customers of women who are less than 25 years old.
4.5 The current Minh Huong’s managing marketing mix policies
4.5.1 The current Minh Huong’s marketing mix policies
Minh Huong is a fashion company, so its marketing mix policies are affected
by characteristics of the fashion industry, especially the building marketing tactics is
impacted by the fashion season. For example, spring summer 2016 marketing mix
tactical will be set detail in autumn winter 2015.
4.5.1.1 The home-wear product policy
The Sunfly home-wear product and service policy is formed by the suggestion
from various divisions including marketing, sales, production, and design, and is
guidelined by market strategy, STP, product policy goals and report market system. In
which, it is important to recognize that applications of segmentation to give product
policy is the challenge of Minh Huong. In each Sunfly label, Minh Huong must create
the core value product matching with their STP, the past season customer feedback,
and expectation. If Minh Huong can tackle that issue, its market share will increases.
From 2009 to 2012, this policy was believed to be effective, with the core value of
each Sunfly home-wear label was the design sample. From 2013 to 2014, the product
policy did not match the marketing strategy, leading to decrease in sales volume and
market share, and Minh Huong received negative feedback on the product from
customers. Minh Huong’s product policy has been improved following the changing
of the STP. The Minh Huong’s STP answered the question “Who is the Minh Huong’s
home-wear product aimed at?” and its product policy must satisfy the customers wants
and needs.
4.5.1.2 The Minh Huong’s home-wear core value of product and services
According to Minh Huong, the core value of its home-wear is the fashion
product for women at home (like loungewear but have some different characters) that
has the differentiation in design. Minh Huong’s home-wear product promises to create
the comfort, the glamor, the fashionable for the wearer and to praise Vietnamese
woman's beauty. Whole home-wear products are made by good fabric, safe, and
suitable for the 4 season weather is the North of Vietnam. Minh Huong clearly states,
to have good quality and the design differentiation are a vital element of the

48
development product. Minh Huong describes the specific value such as fabric, style,
product collections, and the quality of the product and showcase these in its marketing
mix campaign. With flexible diverse distribution systems, in which the retail stores
system is the main channel, service is also and the important Minh Huong’s product.
The selling system provides speedy, convenient and comfortable services to
customers. However, that benefit has not regularly ensured. As the customer feedback
reports in 2013 and 2014, more 60 percent the complaints are a lack of design
innovation and differentiation, the declining quality products. The good point is the
reducing complaints in 2015 and quarter 1-2016.
4.5.1.3 The Minh Huong’s product design:
There are few industries where “product design” plays an important role in the
fashion industry. That why Minh Huong designs all its home-wear products. The
home-wear product design target is achieving 95 percent customer satisfaction (Minh
Huong’s quality standards requirement, 2015 and 2016). Minh Huong sets out the
design as the main product features. Its product goals are designed matching
customers’ needs and fashion trend, so that, Minh Huong designers start with research
and collecting information. Firstly, all the information includes the past season
customer feedback which clearly shows the customers opinions on product quality,
colors, style, fabric material, form design cutting and tailoring techniques, revenue of
SKU( Stock Keeping Unit) are collected. The research market information involves
competitor’s information, the product consumption trend, shopping suggestions, the
greatest celebrity style, the big fashion trends, runway trends in the world and the
domestic market are also gathered for the foundation to design product. Secondary,
ideas of home-wear fashion collection are given by design division that bringing
something distinct to Minh Huong’s product design. Designers draw out sketches by
hand or computer and then discuss with colleagues–including procurement people and
technical people. However, in this step, the marketing manager, sales manager, store
managers do not receive all information, therefore, they cannot provide feedback about
the look of the new design (style, color, fabric, and so on) and suggest possible market
price points. Over four home-wear collections and about 350 freestyle design patterns
are presented for the customers annually. The designers share the inspiration behind
their collections for promotion actions. In the spring & summer 2016, the “Inspiration
Checked” is an attractive collection of Sunfly-Sweet Home that was sold out 90
percent by the mid-April. (Source: the volume sales report in the April 2016) Third,

49
the design pattern transforms to sample products that are approved by the appraisal
council. The product samples always are carefully approved one last time before the
production starts. According to the design division, the divergence Sunfly home-wear
design style of three labels make the differentiation and product diversification. (1)
Sunfly-Prime style means glamor, confident, fashionable woman; (2) characteristics
of Sunfly-Sport are sporty, youthful, dynamic; (3) Sunfly-Sweet home style is sweet,
youthful. Minh Huong produces designs for nearly 1,000 items per year from which
about 500 are selected for production and the annual total production is about 300.000
unit. (Source: the annually design division report from 2013-2015)
Sunfly Sample design of Spring Sample design of Fall and
home-wear and summer 2016 winter 2014, 2015

Sunfly-Sweet
Home

Sunfly-Prime

50
 Sunfly-Sport

Table 4.4: The Minh Huong’s home-wear products

(Source: website-www.sunfly.com.vn)

4.5.1.4 Minh Huong’s product quality

Sunfly Home-wear is a high-quality product line in the North of Vietnam. It
applies ISO to the production management. In Minh Huong’s products quality, there
are two issues with the technical standards and the comparing it with the reality product
quality. According to production division, in addition to the design criteria target,
product quality includes (1) the product’s overall durability, fabrics are safety, cool or
enough warm depending on the season, in which the knitted fabric, the mixing soft
cotton and spandex fiber, dress linen, flannel, KATE fabric, denim fabric always use
in Minh Huong’s products; (2) the color, the patterned/ print must fit customer needs,
fashionable, and limit fading; (3) the seam (a line of sewing joining two pieces of cloth)
ensures reliability technique requirement; (4) the industrial hygiene implements
following Vietnam standards. Minh Huong’s products purpose that gaining an edge
over competitors by offering products that better serve consumers’ demand and
preferences for quality. However, production vice director said that the sewing
technology of its factories has been changed for near three years. With this current
market segment, Sunfly home-wear has several large competitors, in which, the Winny
is the biggest competitor and market leader of the home-wear line. Beside the similar
quality products, Winny develops advanced product labels are better than another
brand in the market include materials, techniques, and styles.

51
 Quality product level Sunfly home-wear and its main competitors
High-quality product

Mid-quality product Lavender

Table 4.5: Sunfly home-wear main competitors

(Source: Minh Huong’s marketing report 2015 and the findings in the
interview)
4.5.1.5 The current Minh Huong’s Product Life Cycle
Sunfly home-wear has two cycles that are the spring/summer season and the
autumn/winter one. The fast moving of fashion trend and consumer behaviors make
the constant change of the product. Thus, like other fashion product, Sunfly home-
wear product life cycle is short.
Stage The spring/summer season The autumn/winter season
I. Introduction February August
II. Growth March September , October
III. Maturity April November
IV. Decline June, July December; January of next year

Table 4.6: The common Sunfly home-wear life cycle

(Source: the findings in the interview)
Based on the common Sunfly home-wear life cycle, the timing marketing mix
activities are arranged. However, a note that fashion business timing depends on the
weather or the competitor activities, therefore, when the mutating climate or the
changing another brand leading to adjust the time of the stages in the product lifecycle.
Therefore, Sunfly home-wear collections annually may be presented in different time.
If they have launched new products is at the right time, the probability of success would
be higher and conversely.

52
 4.5.1.6 The Minh Huong’s service
Minh Huong director said that the service has been considered an important
element to create more Sunfly value and the service are applied equally throughout the
business system. The franchise partners are the main Sunfly home-wear customers that
Minh Huong tries to provide flexible, quick, convenient, competitive service as well
as contract offers, the debts, and the communications etc. for them. Minh Huong’s
business system tries to ensure the order lead-time for franchisees is within 48 hours,
while the main competitors such as Winny or Vincy is about 36 hours (source: The
research competitor reports 2015). The study showing that to implement this service
purpose is a significant challenge of Minh Huong. In addition, sellers and sales
manager were unstable, lack of experience. Together with the lack of personnel, it led
to a dissatisfied customer. In 2015, Minh Huong lost about 7% the franchise customers
who were not satisfied with Minh Huong’s services (Source: Minh Huong’s sales
report 2015). For end-user, Minh Huong concentrates on enhancing sale, after-sale
services, and supportive services in stores system. Selling standard process was built
to ensure customers feel satisfied. New employees have received sales skill documents
and the guidance of store manager before working. The payment approach includes
cash and credit card, which is flexible and convenient. Actually, the service has not
been uniformly applied, because, Minh Huong only controls this issue in its showroom
but can’t afford to check of the franchise stores. According to marketing and sales
divisions, lack of human resources and lack of human resources are the main points.
Minh Huong’s selling online service characteristics are simple, convenient, and easy
to know and apply. Buyers can pay before receiving goods or payment on delivery.
Nearly 50% orders online cannot carry out, because, there is not the real-time inventory
information following SKU, size and color.

4.5.2 The Sunfly home-wear price policy

The price policy goals for the product is defined which must ensure to match
its STP, and to achieve Minh Huong’s sales target and profit expectation. Home-wear
pricing policy is set based on the COGS (cost of goods sold), circulation costs, other
general operating expenses, Sunfly brand value, market segment, profit expectation
and the competitor price policy. Minh Huong determines Sunfly home-wear is the
moderately expensive product line that is lower than the main competitors such as

53
Winny, Vincy, thus, its customer target can afford to be able to buy (Figure 4.3).
According to the finance division, from 2013 up to now, the product Minh Huong has
been average increased from 7 to 15% annually. Minh Huong said that if the end-users
love its design pattern and get more benefit, they will be ready to buy irrespective of
the pricing.

The lowest price in the

Spring/Summer 2016
450,000
400,000
350,000
300,000
250,000
The lowest price in the
200,000
Spring/Summer 2016
150,000
100,000
50,000
-
Winny Sunfly Vincy

Figure 4.3: Comparing the lowest price of Sunfly and the main competitors
(Source: www.sunfly.com.vn; www.vincy.com.vn; www.winny.com.vn)
The home-wear price products are posted in the card and applied unified in the
business system (Table 4.7). Each year, Sunfly home-wear increase or decrease the
price of the product depend on the stage of the product lifecycle and the same
competitor’s product price. Minh Huong uses the pricing flexibility with many
approaches comprise discounts, offers, and the like that is considered as one point of
its competitive advantages in the market. For the customers are the end-users who buy
the product in the Sunfly home-wear retail system, normally, in the introductory phase
that the products are launched, there are some special promotion actions such as the
gift. Then, Minh Huong uses the market skimming that still keeps the product price in
the development stage and the maturity. After that, the price will cut down to clean
stock in the decline stage. For franchise partners who want to create profit from the
Sunfly home-wear selling, the pricing approaches are more complex. The discount
rate, the annually or quarter reward are used by the public, diversified, flexible and
competitive way. The volume sales is a foundation to divide discount rate for their
partners. According to data from the interview, Minh Huong discount policy is from
30-45% that is competitive with another competitor are from 25 - 40% like Winny,

54
Vincy. The franchisees must do following a system of paying for Minh Huong’s goods
in small amounts and receiving the goods after the full amount has been paid. The
initial layaway is about 30.000.000 VND.

Home-wear labels The spring/summer 2016 The autumn/winter 2015

Sunfly-Sweet home From: 200.000 VND From: 380.000 VND
To: 350.000 VND To: 470.000 VND
Sunfly-Prime From: 200.000 VND From: 390.000 VND
To: 350.000 VND To: 550.000 VND
Sunfly-Sport From: 300.000 VND From: 390.000 VND
To: 340.000 VND To: 835.000 VND

Table 4.7: The Sunfly home-wear price

(Source: www.sunfly.com.vn)
To create the price range for each home-wear product labels helps Minh
Huong’s customers target easy to choose following their budget. The end of 2015
marketing report showing there was 88% consumers (before using) viewpoint agreed
Sunfly home-wear price was inexpensive and they could buy its products but only 68%
end-user (after using products) satisfied with the spring/summer product price and 49.6
% happier with its autumn/winter price. Other end-user groups (after using products)
were unsatisfied because they said the Minh Huong’s price policy has been higher than
its products quality. Therefore, the niche Sunfly home-wear its price policy but Minh
Huong did not succeed in trying to achieve quality product goals.
4.5.3 The home-wear place policy
The main domestic market of Minh Huong is the North of Vietnam, therefore,
development-oriented policies are located within the North, and several locations in
Middle of Vietnam such as Nghe An, Ha Tinh, Da Nang. To meet the target customers
in the market, Minh Huong tries to design and maintain the diverse distribution
channels comprise franchising store system, Minh Huong's showroom, wholesale and
selling online.
With stores place policy (include its own stores-showroom and franchising
store), the main domestic market of Minh Huong is the North of Vietnam, therefore,
development-oriented policies are located within the North, and several locations in
such as Nghe An, Ha Tinh, Da Nang and focus on the urban, cities. The orientation

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development stores system is in the high population area, in which to concentrate on
the high shopping street, the fashion street or department store. For current stores
system, Marketing and sales divisions evaluate on store's revenue, basic stock list, the
battle of the brands in sales- marketing reports, store’s return and the customers need
in that area per year, then, to give 4 decision options are the maintaining, developing,
downsizing or elimination. For market share without Minh Huong's shop,
development orientation depends on market analysis like the economic, social,
demographic, competitor’s volume, revenue expectation, and market-segment product
grouping in the assessment of business opportunities. Following Minh Huong’s
regulations, the gap between stores in a location is from 1 to 2 km, a storefront is over
5 m, the minimum total area of each store is 40 m2 and stores are designed and arranged
following Minh Huong’s concept. The flagship stores in Ha Noi was invested big
capital and reflected modern style. By the end of 2015, The Minh Huong has had 10
showrooms and total store number of 83 across 27 areas, in which, all products pass
through its home-wear major distribution center in Ha Noi.
Minh Huong’s wholesaler in Vietnamese traditional market like Dong Xuan
market (the biggest traditional market in Ha Noi) is the oldest Sunfly channel
distribution since its beginning. Currently, Minh Huong’s employees felt embarrassed
about building wholesale channel, therefore, the effective wholesale policy is the
challenge for the company. It also currently sells it products online in the whole
domestic market. Selling online has been implemented for four years that the offering
is implemented by e-commerce website and social network like www.sunfly.com.vn;
www.facebook.com/thoitrangsunfly; www.yes24.vn; www.lazada.vn;
www.adayroi.com. Besides, the website, social network and online activities help to
create an online ‘community’ of people who like Sunfly home-wear products. From
anywhere, customers can use smartphones or computers to select the Sunfly home-
wear product easily. The selling online’s performance has been growing every year
and the revenue increased nearly double from 520 million VND in 2013 to 1.140
million VND last year. (Source: the sales report from 2013 – 2015). The Minh Huong
strongly believes its online services as particularly important in reaching customers
now and in the future.

4.5.4 The home-wear promotion policy of Minh Huong.

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 The purpose of this policy is the showing its concern forward products through
promotion activities. Marketing manager said that the choice of a promotional policy
depend on upon goals, value of the product, budget, customer awareness, availability
of promotional vehicle, but, the promotion target is not clear, easy to alter within low
budget are difficult factors impact to get the promotion policy. Besides, when the
promotion policy is presented, no overall decision is given, thus, it breaks down and is
approved by monthly or quarterly. The proliferation of promotional is designed in the
Vietnamese holidays. Depend on the significance of the each holiday, the promotion
policy is decided to match customer demand and Minh Huong’s profit expectations.
Minh Huong’s current promotion policy includes public relations, branding,
advertising, direct marketing, sales promotions, digital marketing.
The first one is Minh Huong uses sales promotion when it needs to attract new
customers, to hold present customers, to counteract competition to enhance home-wear
product sales, and to take advantage of opportunities that are revealed by market
research. But if the firm does not use the right way, there will be negative effects to
business systems. Sales promotion such as price discounts (consist consumer sales
promotions and trade sales promotions), money-off coupons, gifts, loyalty rewards
programs. Minh Huong usually uses the price discounts, in which, sales promotions
targeted at the end-users are called consumer sales promotions that often are from 10
to 40% depend on the Sunfly home-wear product life cycle stage, revenue, inventory
of each SKU and the market reaction. The money-off coupons and gifts usually donate
to the consumer in the introduction stage that their value is lower 20% compare the
original price product. Some loyalty rewards programs are implemented such as “The
loving connected” reward with the award value is less than 5 million VND and to
attract only about 400 participants. It also applies membership club for VIP customers
who purchase the total amount is more 3.000.000 VND per year in the stores and the
online buyers get more 2000 points.(Sources: Membership programs 2015, 2016
documents). Besides, with a total value of online offers, are over 1.000.000 VND will
ship goods to the customers for free. They are considered Sunfly home-wear loyal
customers who receive special sales promotion that is better than another end-users.
The sales promotions targeted at the franchisees and wholesale are called trade
sales promotions. The normal rate from 30 to 45% on the original price, Minh Huong’s
trade sales promotions are considered a competitive advantage. Besides, there were
two or three rewards from 20 million VND to 60 million VND per year to push

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franchisees and wholesale get over targets. However, when the application discount
for end-user, the discount rate for franchisees decreases. Therefore, the more Minh
Huong cuts down price program, the fewer franchisees get for their profit. From 2013
to 2014, with the revenue of selling original price product decreased, the frequent sale
promotions were organized, lead to the losing of 10% partner franchises.
Brands of home-wear product Trade sales promotions rate in 2015
Sunfly 30 – 45 %
Vincy 25 – 40%
Winny 23 – 38%

Table 4.8: Trade sales promotions rate of Sunfly and main its competitors
(Source: Minh Huong’s marketing report 2015)
The second element is public relations (PR). There are many tools of PR
activities, in which, Minh Huong focus on the using e-journal, newspapers, television,
special events for Sunfly home-wear products to reach the attention of the target
consumers. Sunfly home-wear slogan is “the more loving life”, with communication
messages of each campaign that appears in whole PR tools. Press releases, sales
promotion programs, newsletters, posts PR are send to e-journal, newspapers,
magazines and other types of mainstream media that have a high reader, in accordance
with home-wear fashion field such as www.ngoisao.net, www.eva.vn,
www.24h.com.vn, “Đẹp” magazine to attract customers target. Minh Huong has been
using the beautiful and famous people such as Miss Vietnam, famous model, the actor,
the MC who have good fashion style, the affecting to customer behavior to become the
brand ambassador. They appear holistic Sunfly home-wear product images in whole
promotion tools and to compare with another competitor, this tool is a special point.
Minh Huong’s director said that the celebrity support to attract the customers and
enhance its brand value.
Third, the advertisement and direct marketing tool describe Minh Huong’s
home-wear value and benefit of Sunfly home-wear product for customers in detail.
The online advertisement and direct marketing such as e-marketing, mobile marketing
will present in next issue- digital marketing. Its advertisement focuses on offline
activities that are small billboards in the near store system, the advertising in the bus,
the roadshow by bicycle, the banner in the street, the delivering leaflet and catalog for
customer campaign etc. The direct marketing activities of Sunfly home-wear include

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store concept, the decoration point-of-purchase display, selling space¸ the stores
poster, banner that make an impression, the attracting customers to visit and purchase.
Sunfly home-wear concept store was built in 2009, up to now, it is maintained in 70
percent store system. In 2015, new Sunfly concept was presented that has been applied
in the remaining 30 percent. The Minh Huong will synchronize the whole of its store
system following a unique concept in 2017.
Fourth, digital marketing is important promotion tool of Sunfly home-wear
brand, therefore, in near few years, Minh Huong invests more 50 percent its marketing
budget. Minh Huong expected to cross the main competitor-Winny in the digital
marketing. To push the keywords “Sunfy”, “thời trang mặc nhà Sunfly” (Sunfly home-
wear fashion), “bộ đồ ngủ Sunfly” (Sunfly pyjamas), “bộ mặc nhà Sunfly” (Sunfly
home-wear) that are top 5 of google search, it has been using SEM, SEO, social media,
advertisement banner in many e-journal actions. Website www.sunfly.com.vn has
been improving with friendly user interface annually to easy visiting and buying
products. This website posts product images are classified by its line, label, and SKU
where online counseling ready to support consumer 8 hours per day. It also integrated
Facebook fan page which is the most popular social media tool in the Vietnam.
www.facebook.com/thoitrangsunfly has 116.106 likes that are the main Minh Huong
selling online channel and online advertisement. The marketing division directs to post
information and answer viewer’s comment on average every two hours. Compare to
the fan page of a competitor -Winny has 100.854 likes, Sunfly has similar social media
result. As discussed, the content marketing is the weakest of its digital marketing
activities as a lack of creation, innovation, attraction. Therefore, it was unsuccessful in
the passing main competitor.
The key Minh Huong’s home-wear brand, Sunfly was launched in 2009. The
Sunfly’s logo symbolizes life, love, beauty and the continuous movement that has two
versions in 2009 and 2015. Both of versions Sunfly brand are using in whole Minh
Huong’s stores system. In which, the new logo is applied in whole promotion tools.
The orange and white are the mainstream application in the Sunfly to make the
different brand in the market. To mix with other promotion tools, the branding supports
to identify and distinguish products Sunfly from another home-wear product. In the
interview, the marketing manager told us that grants a part of their profit to the
foundation in order to improve the life of poor children, women such as financial favor,
the job creation. It has funded over 200,000,000 đ per year for the charity activities

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that have been implemented to support the creating different Sunfly home-wear brand.
As discuss above, the Sunfly home-wear tried to establish its own foundation to
express underprivileged women and children. However, whole Minh Huong’s
branding activities still are small and lacking a coherent sequence. Minh Huong’s
director admitted that its branding activities do not associate with the fashion industry
character.

Old Sunfly logo New Sunfly logo

Figure 4.4: Two version of Sunfly logo.

(Sources: www.sunfly.com.vn )

Figure 4.4: Sunfly new concept store of Minh Huong

(Sources: www.sunfly.com.vn )
The selection promotion tools what are used in each campaign impacts by
target customer needs market trend and Minh Huong’s marketing budget per year. By
promotion in many years, Minh Huong gave Sunfly home-wear brand and products to
consumers in the North of Vietnam. According to the sales and marketing divisions,
with the changing of the domestic market, the developing of competitors in near few
years, a limited marketing budget about 2 billion đ per year, the promotion tools choice
of Minh Huong’s director are scattered and lack of concentration, lack of creation. It
participates in the declining original price sales in recent years.
4.5.5 The people, the process and physical evidence policies

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 The marketing mix consists of the traditional four Ps that these Sunfly home-
wear policies were presented above (product, price, promotion and place), as well as
additional components common to marketing services, such as people, process and
physical (evidence). In the sales and marketing documents, those issues do not mention
as the independent points. However, for the purposes of this study, the researcher
explorers and splits each issue to understanding the current those policies in Minh
Huong.
Minh Huong’s director believes the personal sale is important because they
have to build personal relations and trust with their partners, customers. But, it had not
a full plan to apply effective people policy and everything just is beginning. The
starting people policy comes from customer’s feedback, Minh Huong employees
experience, then, is the compare between Minh Huong and other competitors. Minh
Huong puts people issue in the quality selling service. Some basic standards were
introduced and thus they made customers feel happier and more comfortable.
Marketing and sales divisions have made training documents that help the sellers get
selling basic knowledge, skill indicators. Likewise, happy customers are excellent
advocates for Sunfly home-wear selling online. Therefore, online sellers are trained to
have good skill and the right attitude. However, not all employees who have contact
with customers have not suited to the role. The customer satisfaction report in the end
2015 showing that to have 20 percent consumers who did not please with Minh Huong
staff. As discussed in theoretical, seems, Minh Huong missed some main point that are
the well-motivation, the flexibility of its staff, the lack of reviewing and updating
regularly. Besides, supervision showroom and marketing manager always set people
policy that excluding stores manager or sellers referring, leading to commend unfair
and multidimensional in the way design people design by many interviewees.
Minh Huong started to design all the processes four years ago when it prepared
for applying ISO certification. According to sales manager, the Minh Huong’s sales
process is also one factor to create better service that to make the quick workflow for
customer satisfaction. Despite having all the necessary the sales process, they are not
shown in the training documents, they only store in the ISO documents. The sales
process involves the process of delivering the product or service, franchising brand
process, wholesale process and e-commerce process that is developed and adjusted
annually to match company’s convenience, customer's benefit. However, lack of
documents shows the result researching on customer's benefit before building process.

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Their foundations come from the employee’s knowledge and experience of Minh
Huong.
Physical evidence is mentioned in the Sunfly brand activities that focus on the
decoration stores and using software management. For Sunfly home-wear decoration
stores, the storage furniture includes racks & stands, clothes-shelf, wall shelves are
designed to create the usefulness, modernity style. A well-kept, modern and well-
decorated stores, window displays will make its customers feel less disquiet and like
Sunfly home-wear products. In the new concept, especially “flagship” store of Minh
Huong which is the largest, fastest, newest, most well-known is the inspiring and
relaxing environment for customer shopping. Minh Huong expects it is in keeping with
the look and feel of the target consumers, then, they can talk to other people with
experience of the Minh Huong’s service. The investing physical evidence elevates
Sunfly home-wear brand to a new level. Following sale report 2015, its new customer
increased 16% after introduction new concept. Sales management software are applied
all new concept stores to control customer data and managing products. Then, the
marketer understands to focus on the right deals and can calculate the volume of
visitors, the expectations of consumers, expectations of volume sales per day.
4.5.6 The advantages of Minh Huong’s marketing mix policies.
The secondary data and the interviewing results showing that Minh Huong’s
marketing mix policies have many advantages that help it get to the secondary home-
wear brand level in the North of Vietnam.
Firstly, the designing and setting plan, purposes of marketing mix was
methodical and followed STP, marketing strategy.
Secondary, Minh Huong’s product and service policy are designed, planned
logically with basic elements such as the core value, the design action, the product
quality, the short life cycle product as theory background. It focuses on the high-quality
product and differences design pattern to fit with Sunfly home-wear STP, the
consumers demand, the fashion market development, therefore, easy to convince the
purchasing of customers. Minh Huong applied quality management system ISO 9001:
2008 to restrict mistake in the production to help customers trust its product that is
difference point with another competitor.
Third, Minh Huong’s price policy is flexibility and affordable for target
consumers. It applies the diversified, flexible price policy in the several life cycle
product stage for various customers. The pricing of Sunfly home-wear is published in

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the all business system and cheaper than main competitors from 10 to 15 percent. Thus,
the customers have income more 7.000.000 đ who are able to afford the product like
Sunfly Home-wear.
Fourth, there is clear, diversity distribution, place policy with three main
systems to focus in the North and develop in the Middle of Vietnam. The franchising
is a modern business model suitable for Vietnam SMEs in the fashion industry.
Besides, Minh Huong’s website and fan page following B2C (business-to-consumer)
e-commerce business model sell its product directly to a customer what is most of its
marketing efforts that help Minh Huong reaches more target customers by the internet
and gets differentiating from competitors.
Fifth, Minh Huong is using combined promotional tools include the sales
promotion, PR, the advertisement, the digital marketing, the branding with clear
communication messages to achieve customer satisfaction. It tries to overcome
challenges with the changing brand design, the concept stores to follow fashionable
and market trend.
Finally, Sunfly home-wear as brands offer products and services, Minh Huong
is interested in the important of three extra Ps in marketing mix services like as the
people, the process and physical (evidence). The investing physical evidence helps
Sunfly home-wear stores and the product could be easily recognized where it’s
appearance and supported to attract new customers.
4.6.7 The disadvantages of Minh Huong’s marketing mix policies.
According to collection and analysis data, in addition to the strengths, Sunfly
home-wear marketing mix policies exist many weaknesses.
The mistake in the planning to practice is the most serious trouble of Minh
Huong. The implementation product policy in 2014 – 2015 did not achieve its
objectives and requirements include core value, product design. Over 30% SKUs of
Sunfly home-wear was evaluated a lack of innovation, creation in the design pattern,
lack of diversity fabric approach, lack of differentiation products compared to another
competitor (Sources: Marketing report 2015). One of the main reasons is that lack of
the discussing about design pattern between the designers and the marketing manager,
sales manager, store managers. The sewing technology did not update, lead to the
weakness in the production for another competitor. Besides, Minh Huong has not the
real-time inventory information software lead to the restricting business performance.

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 Since two years, the practicing product policy of Sunfly home-wear has not
been good, therefore, a part of the customer was not satisfied with its product. After
using its products, over 50% percent customer thought that the Sunfly home-wear price
has been higher than its products quality.
From 2013 – 2015, the home-wear sales volume growth was low in the
introduction and development stages. Minh Huong had to use over sales promotion
programs compared the competitors. Therefore, it lost some key market share and
franchisees, lead to its revenue and profit expectation did not achieve the loss.
According to financial and accounting division, from 2013 to 2015, the cost of
marketing instruments for Sunfly home-wear was from 2 to 2, 5 billion VND per year.
Therefore, the Minh Huong was spending about 2.5 - 3% total revenue per year for
Sunfly home-wear marketing. With a small marketing budget, seems, its promotion
tools are invested over- diversification and lack of concentration. Besides, lack of the
innovation and improvement in the media content, advertising are weaknesses of
Sunfly home-wear.
The people, the process and physical (evidence) policies of Minh Huong have
not been formally documented like its marketing mix. Their full information is not
shared, trained to the business system, lead to the hamper of effective implementation
objectives. With the people policy, the way to build training, coaching documents is
unfair and multidimensional, lack of reviewing and re-coaching and lack of incentives
for the flexibility of its staff are weaknesses. For physical (evidence) policy, Minh
Huong has not applied new concept decorate for the whole business system yet.
4.6 The evaluation marketing mix management of Minh Huong
4.6.1 The advantage and disadvantage of Minh Huong’s marketing mix
management performance approach
The evaluation marketing mix management of Minh Huong is implementation
following the campaign, the season (spring/summer and fall/winter), and end of the
year. Minh Huong assesses each marketing mix tools following several metrics and
indicators (Appendix 4.9) before discussing the evaluation of integrated marketing mix
management. There are three main metrics include revenue, profit, the market share
that are used to gauge the effectiveness of Sunfly home-wear marketing mix by
marketing managers and broad of the director. The foundation of evaluation is the
comparison between the results and the targets or goals. Minh Huong’s director

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expects he can design and apply to evaluate marketing mix management key
performance indicators (KPIs) method in 2017.
Thus, the advantage of the Minh Huong’s marketing mix management is
judged from in the detail to overall to help Minh Huong recognizes weaknesses and
strengths of each tool and the mixing.
However, Minh Huong has just been assessed based on the current
performance and tangible value, while, it has not been inspected the intangible value
of marketing mix management in the future. Surprisingly, Minh Huong has never been
evaluated marketing mix activities investment until the researcher mentioned this.
4.6.2 The Minh Huong’s marketing mix management performance
Minh Huong’s financial report 2013 shows a revenue of 53 billion VND. It
achieved 103.4 percent of the sales target, profit reached 10 percent. Besides, the
market share developed in 3 new locations with 6 stores. Its broad of director pleased
with this result, although, at that time, profit of Vietnamese fashion industry could get
maximum 70 percent (source: http://www.tinmoi.vn). Thus, the planning, controlling,
managing marketing mix were considered as effective. Sunfly home-wear
turnover improved from 2013 to 2014. It generated 58 billion đ of revenues during
2014, but, that did achieve the Minh Huong’s goal was 63 billion đ. End of 2014, Minh
Huong lost the main market in Quang Ninh with 3 stores – one of the big city in the
North of Vietnam. In the marketing report, 2014 said that the impairment product
quality, the weakness supervisor , the development sales promotion were the key
points lead to the reducing franchisees profit and the losing market share. Now a day,
Sunfly home-wear brand is trying to reentry this potential market. Although there were
many challenge and difficult issues, its rate of turnover 2014 achieved 6 percent. 70%
interviewee thought that Minh Huong did not implement successfully its product
policy. Another reason was marketing mix policy could not be effectively applied. In
2015, Minh Huong tried to change the implementation product policy. The total
turnover of Minh Huong 2015 was 65 billion, in which 80 percent came from Sunfly
home-wear that was about 53 billion VND (20 percent from Sunfly casual wear - the
new product line product line). This was the first time it had a negative profit. In the
interviews, 50 percent of the interviewees strongly believed that more than half of
products sold with the discount price is the main reason. Product policy did not attract,
satisfy the customer demand, and the managing marketing mix was inefficient.

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 CHAPTER 5: DISCUSSION, RECOMMENDATION, AND CONCLUSION
This chapter presents the discussion on findings of the study. Next,
recommendations will be presented. Finally, the final part if the chapter is the
conclusion of the study on marketing mix management in the Minh Huong.
5.1. Discussion
The research results mentioned in chapter IV show some important points in
the marketing mix management of Minh Huong in the domestic market.
5.1.1. The Minh Huong’s STP Commented [VTH5]: In discussion section, explain the findings
from chapter 4 and compared with theory presented in chapter 2.
Firstly, Minh Huong’s development, implementation of marketing mix Mention specific theories to be the base for your study.

management are based on the logical process of the corporate strategy that matches
basic marketing theoretical. However, the implementation process is not sustainable Commented [VTH6]: What theory?

and continual, which has disadvantages that impacted directly on the effective of Commented [VTH7]: What does continual mean? You may
need to use another word.
marketing mix management.
Secondly, the STP of Minh Huong Sunfly brand was also built, adjusted, and
applied following theory background. Minh Huong has three label home-wear Commented [VTH8]: What theory?

products for clear groups of consumers. The results of this study revealed that Minh Commented [VTH9]: Three groups?

Huong selected concentrated marketing approach for three segmentations. According

to Chris Newton, Demand Media in the Hearst Newspapers and Colin Gilligan and
Richard M.S. Wilson (2009), in the concentrated marketing approach marketing mix
tools are used following the way targeting to one specific market segment or audience.
Therefore, this is inconsistent compared to the theories, though three segments of Commented [VTH10]: What theories?

Sunfly have some similarities. Besides, the challenge of Minh Huong is a lack of
experience in the target customers who are younger than 25 years old, while, this
segment is considered a “star” product line.
5.1.2. The current marketing mix policies
One objective of the research was to study what current Minh Huong’s
marketing mix policies base on the 7Ps model. The results of the study showed that
Minh Huong has many advantages, but still exists some troubles from the planning to
implementation marketing mix policies.
5.1.3. The product policy.
The Sunfly is the most famous home-wear fashion brand in the Vietnam’s Commented [VTH11]: Revise this sentence. Unclear.

Northern of Minh Huong which firmly believe that home-wear fashion brings
confident, glamor beauty for female. Sunfly product policy was designed with the main
elements to follow theories presented in chapter II. In which, the product should be Commented [VTH12]: What theories?

66
viewed on three levels include core product, actual product, and augmented product
(Kotler, 1999). Core product and actual product creates core benefit for consumers.
Minh Huong selected product differentiation to create core value and benefit for its
customer. As the discussion with theories in chapter II, the obtained research results
and findings are Minh Huong’s goals of the product, service policies to create
competitive advantage focus on high-quality, and product design patterns
differentiation that matches with customer demand, market trend and characterizes of
fashion products. But research findings also illustrated that Minh Huong didn’t
implement the planning well. A majority of Sunfly products did not adapt the changing
of the market, customer needs, fashion trend, and the growth of competitors from 2013
to 2015. Sunfly were assessed as a lack of differentiation, innovation, and creative
products, while, Kotler & Killer (2009) showed that good design can attract attention,
improve product performance, cut production costs, and give the product a strong
competitive advantage in the target market. So that, Minh Huong did achieves its
product policy objectives and lose a part of consumer franchise, loyal customers,
market share.
Mike Essey (2009) said that marketing information management, financing,
and marketing mix are the key marketing functions and have a close relationship
together. The research shows that one of the main reason is the weak link between the
design division and another division in the design pattern step, lead to a lack of market
information. So that, a part of Sunfly products did not satisfy the needs and
expectations of customers. Besides, production technical also is the constraint problem
to implement innovation product.
The findings of the research revealed main disadvantages of the product policy
that impacted it’s the sales volume and revenue of the home-wear products of Minh
Huong. Therefore, Minh Huong should make solutions to solve them.
5.1.4. The price policy
From the findings, the price of Sunfly product policy consist of income of the
consumer, and it is competitively comparing with another competitor in its positioning.
As Ben Sherman’s case study in businesscasestudies.com and Mike Easey (2009), the
perceived value; matching of fashion trend are the main factors impact the price of the
product. The price of fashion product or service should be based on the customers’
perception of the value, rather than the COGS (cost of goods sold) while a part of
Sunfly’s SKUs did not meet fully and bring good sense to the consumers. Therefore,

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Minh Huong seems to provide a reasonable price of Sunfly product that becomes an
inappropriate policy.
This finding’s signification shows that the implementation of Sunfly price
policy has been strongly influenced by the failed of deployment product policy
whereby Minh Huong is forced to reduce product price. This is the main reason why
Minh Huong did not achieve sales target and the profit decreased.
5.1.5. The place policy
As this research result and the theories, the distribution channel of Minh Huong
is diversified with 3 main lines that match fashion retailers trend and is one of its key
success factors. Minh Huong has numerous retail stores, franchise and company-
owned store in the central streets are the main channels to bring the majority of its
revenue and profit. Daniela Cecilio (2015) said that “e-commerce is changing the
fashion industry–it's time to catch up”. Using e-commerce or social media fit with the
society development trend. Minh Huong’s e-commerce channel was interested by CEO
and developed with stability speeds as a good way to implementation market
development strategy. So that, the Minh Huong’s planning of place policy is suitable
for its STP, corporate strategy, and the market trend. However, the consequence of
product policy and the reducing price affected to the effective implementation of
distribution policy. The new stores developed in parallel with the loss of important
market share. This is one of the reasons why Minh Huong’s revenue did not achieve
its goals.
The results of this research demonstrated that the wrong implementation
product policy was a prerequisite for the failure of other policies of Minh Huong. This
finding is important to help Minh Huong adjust the marketing mix management.
5.1.6. The promotion policy
As mentioned in the theoretical and the findings, Minh Huong used promotion
tools in a variety embrace the sales promotion, PR, the advertisement, the digital
marketing, the branding with clear communication messages to fit with target
consumers. According to Han Nguyen (2010), consumers hear about fashion brands
mainly through radio, television and magazines are the elements of the PR and the
advertisement tools. Moreover, the digital marketing is effectively tool communication
for the fashion brand (Daria Zimikhina, 2013). Minh Hương was in catch-up growth
of promotion tools trend and applied it early. With the selection right promotion tools,
this policy is considered a strength and competitive points in the market. Promotion

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policy is the main tool to keep Minh Huong is the 2nd home-wear brand in the Northern
of Viet Nam up to now even though a part of loyal consumer decreased trust in Sunfly
product.
Nevertheless, there are some issues that should be attentive. As CIM (2009)
shows that the firm gets a successful promotional mix when it uses a balance of all
promotion tools to suit its particular business at a particular time in a planned,
structured way to implementation. However, the research findings show that Minh
Huong could not balance sales promotion tool, it had to use many deep discount
programs to make clear stock compare with before 2013. Besides, As the research
results, Minh Huong promotion is a lack of constant investment, lack of creation in the
implementation way. Those are the factors made Minh Huong’s profit cut down.
Results of this study show Minh Huong’s advantaged and disadvantaged of
promotion policy in the domestic market. Then, the findings provide understanding the
factors that impact the Minh Huong’s profit decline. Based on that, Minh Huong has
to have right solutions to solve them. Commented [VTH13]: What is them?

5.1.7. The people, the process and physical evidence policies

The service is the main element to create Sunfly brand value. The findings
show that Minh Huong believes and is interested in the people, the process, and the
physical evidence policies. However, there is independent marketing document
without mentioning three issues.
According to Martin (2014), the marketer always efforts to find, train peoples
who deliver the products and service to fit firm’s services policy. The findings show
that there are some weaknesses points in the training programs of the people policy
includes a lack of reviewing, re-training programs, discussion with store managers,
therefore, the human resource did not complete full fill the request of Minh Huong’s
service policy. This is a part of reason impacts on its business performance.
As the discussion of the theoretical, the execution of the firm’s service is
affected by its process and having the good process helps the company to minimize
costs. The results mentioned Minh Huong are having process systems, in which there
is clear business process system such as a payment process, e-commerce process,
convert and returning product process that is its strength compares another competitor.
CIM (2015) show that the firm process system should develop based on consumer’s
benefit, however, there are any document or opinion of Minh Huong that given this
issue.

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 As the findings and the theories, Minh Huong re-invested physical evidence to Commented [VTH14]: Delete all “theories”.

focus on decoration stores, software management that supports to enhance Sunfly

brand image and consumer-pleasing. However, there is ¼ Minh Huong’s stores system
that is applied new concept decoration and sales software management, so that, the
branding, physical evidence have not been synchronized and a lack of sales data in a
timely fashion in the whole business system.
The findings give highlight points that impact on the efficiency marketing mix
management and business performance of Minh Huong’s Sunfly products. Thus,
helping to answer research questions and explain the reason of Minh Huong’s decrease
profit. Then, Minh Huong can give reasonable decision to improve marketing mix
management and to develop business activities in the near future.
5.1.8. The evaluation marketing mix management of Minh Huong
As the findings, Minh Huong evaluated marketing mix management following
two business fashion seasons of spring/summer and fall/winter. Its revenue, profit, the
market share are the main metrics to assess marketing mix management performance.
Comparing with theories, the Minh Huong’s periodic assessment suitable for a fashion
company, however, those metrics are not adequately assessed marketing mix
management in the poor revenue and declining profit. It is unidentifiable marketing Commented [VTH15]: Unclear.

mix effectively clearly compares its investment and difficult to make the budget
adjustment.
According to Tim Ambler (2001), the evaluation marketing mix management
based on long-term brand equity and short-term results. While, Minh Huong only
considers short-term results and the intangible benefit of marketing has not been
mentioned in its the evaluation criteria. Therefore, the Minh Huong’s marketing mix
management performance has not been evaluated fully. This issue maybe affects the
making decision of marketing mix management.
The research’s results mentioned, based on three metrics assessment above,
Minh Huong designed marketing mix policy matching with basic theories, but, the
implementation marketing mix management of Minh Huong did not achieve its targets
and was unsuccessful. This problem has influenced and caused the decrease business
efficiency of Minh Huong in the home-wear product line.
Thus, the significance of this research is giving its highlight advantages and
disadvantages of Minh Huong’s marketing mix management in domestic. From that,

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there are some appropriate solutions to improve Minh Huong’s business performance
in the future.
5.2. Recommendation
The objective of this study is to understand the management of marketing mix
of Minh Huong in the domestic market. This part presents recommendations to
improve its marketing mix management performance based on the findings and
discussion above. The recommendations are divided into two stage as long-term and
short-term.
5.2.1. Short-term
The recommendations should apply on the one year's worth of marketing mix Commented [VTH16]: I am not sure about the consistency
between chapter 4 and chapter 5. Findings, discussion, and
activities including two fashion reasons, focusing on the improving implementation recommendation should be matched. It may be easier to follow if
you present recommendations based on 7 Ps. You should consider
policy from the planning. and revise if necessary.

Minh Huong should improve Sunfly products value, ensure to create

competitive advantage by product differentiation immediately. First, Marketing
division should take regular market research, then, to send it to all relevant departments
to update the information. Second, the updating fashion trend shouldn’t only use free
sources, Minh Huong should buy fashion trend forecast of famous sites such as
http://www.pantone.com/. Third, Minh Huong should develop a collaborative team to
review design templates quickly includes design division, marketing and sales
divisions, technical production division, store manager, the board of directors before
mass production. Finally, Minh Huong may need to improve designer capacity and
build the best design templates to motivate creativities, innovation of designers to fit
the changes in the market.
Minh Huong should regulate and keep price follows its marketing mix policy.
To minimize reducing pricing Sunfly home-wear in the first and the second step of
product life cycle. When Sunfly products overcome these disadvantages and satisfy
consumers, the price policy also will be implemented fitting its planning.
Minh Huong should re-enter the lost market and invest e- commerce more.
(1)The good way is to invest opening the newly owned showroom, then franchising
rather than the waiting to find a franchisee. (2)The development e-commerce channel
is the right way and effectiveness. Minh Huong should improve online sale functional
such as investment real-time inventory system and expand cooperation with growth e-
commerce sites like Zalora Viet Nam.

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 Maintaining the promotion activities, IMC is in the balance, diversity,
creativity, and regularly way. In which, attention some solutions below (1)Designing
clear goals of each promotion tools (2) Minh Huong should make creativity
communication message ideas inspired Sunfly products competitive advantage
combined with re-building the trust product quality of customer. (3)Balancing
promotion policy in combination with improved product quality to keep Sunfly value
and achieve business targets. (4)Focusing on the development internet marketing on
the smartphone platform. (5)Developing charity activities for women and PR for that
to support increasing Sunfly brand image.
Minh Huong should attend and design the people, process and physical
(evidence) policy independent in the marketing mix plan like traditional 4Ps. (1) Minh
Huong should develop and implement training, re-training programs fit its
services/product to improve employees capacity. Designing testing programs to divide
staff levels such as basic level, advanced level. Various HR levels have different bonus
levels that make motivation development and self-learning of employees. (2)
Reviewing and updating the business process to ensure matching with customer
benefit. (3) There is 50% - 60% store system that is decorated in the new concept and
sales management software.
Minh Huong should add some metrics to evaluate marketing mix management
such as ROI, increasing sales, raising prices, reducing costs or cutting investment to
evaluate its marketing mix management.
5.2.2. Long-term
This part presents the marketing mix management recommendation in the long-
term marketing plans.
(1) Minh Huong should research, evaluate development capabilities in the
rural areas segmentation. This segmentation market may be good business
development opportunities in the Vietnam economic development context.
Simultaneously, Minh Huong should research and launch the new product line that has
the positioning matching this the rural segmentation.
(2) Minh Huong should research and apply differentiated marketing that has
three marketing mix policy for three current home-wear labels.
(3) Research and gradual application model textile technology to create
improvement products and make more product competitive advantage.

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 (4) Minh Huong should apply ERP system such as CRM (Customer
relationship management), MRP (Manufacturing resource planning).
(5) Minh Huong should create people policy to ensure sustainable HR that
minimizes the impact business performance.
(6) Minh Huong should assess marketing mix management based on short-term
and long-term value focused on brand equity.
5.3. Conclusion
The focus of this thesis is marketing mix management of Minh Huong
company in the domestic market based on the combination of the 7Ps of marketing.
The qualitative case study method was used to answer three research questions
including (1) how did Minh Huong choose a market segment, (2) what are the current
Minh Huong’s marketing mix policies, (3) how efficient is marketing mix management
of Minh Huong. The secondary and primary data were collected and analyzed to
answer the research questions. Next, the researcher provided recommendations to
improve marketing mix management effectively that help to development business
performance of Minh Huong.
The research shows the advantages and disadvantages of Minh Huong’s
marketing mix management. Basically, Minh Huong applied marketing mix
management following 4Ps theories for Sunfly home-wear products for a long time
ago, and initially, having application 7Ps of service marketing mix. In the dissertation,
the researcher can see that Minh Huong had the competitive advantages in the
marketing mix management to keep it is still the second famous home-wear brand in
the Norther of Vietnam. However, the especially point is Minh Huong as a fashion
company hasn’t been implemented successfully differentiation product based on
design pattern that was the most important influencing factor for the customer, lead to
dissatisfaction of a part loyal consumer, the non-success of other elements marketing
mix and the decline in profits. Moreover, Minh Huong is the lack of innovation,
creation in the application 7Ps at practice time. The human resources capacity,
technology also were the factors that impacted marketing mix performance. Besides,
the evaluation marketing mix management was not multidimensional, a lack of
assessment by return on investment and the long-term brand equity.
Some recommendations in the short-term and long-term were suggested to
solve all problem of Minh Huong’s marketing mix management in the domestic market
that presented above.

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 5.4. Research limitations and recommendations for further
research
There are numbers of limitations associated with this study. First, this
research used the qualitative method, in which the obtained primary data were from
the Minh Huong’s employees' perspective, while objectivity data were only from the
secondary data. Therefore, the results of this research should be tested with
quantitative research focusing on customers’ perception on marketing mix
management of Minh Huong. Second, the research focused only on marketing mix
management home-wear product that is the main line product of Minh Huong
company. Further research should be on the casual-wear product- its new line product
entered the market in 2015.

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