ac's marketing strategy

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Acknowledgment

Apart from my own efforts, the success of the report depends largely on the

encouragement and guidelines of many others. I take this opportunity to express my

deepest appreciation to all those who provided me the support to complete this report.First and foremost, I would like to give a special gratitude to my supervisor, Ms .,

Dean of Faculty of Business English , Foreign Trade University for her proper guidance,

useful comments, as well as great support along the way.

Furthermore, I would also like to extend my gratitude to AC Architecture consulting

joint stock company for giving me this internship opportunity within the organization.

For me, it was an invaluable chance to learn about Human Resources as well as to gain

first-hand working experience in the workplace. My special thanks also come to Mr.Pham Van Chuong - CEO, and Mr. Pham Minh Tuan - Manager of Marketing

Department and Customer Relationship Department at AC Architecture company for

their great support and informative interviews. Without their generous help, I would now

have been able to finish this report.


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Introduction

I have worked in AC Architecture Company since 2010 until now. My

position in the company is an assistant director . Beside that, I also work in

Marketing department. My major responsibilities are managing the companys

website and developing the range of French architecture market. There are many

difficulties in those works but I have done them so well. During working time, I

have accumulated some advantaged experiences myself. Learning skills of sales,

managing , creating and keeping good relationships with customers. This was a

precious opportunity for me to gain insight into the work about marketing

specially in a architecture company and thus, improve my knowledge on the field.

As we know, Developing the amount of customer is one of important

purposes of each company. This work can be performed through out marketing.

Consequently, marketing is special significant in a business work. It provides a

basis for the enterprise to have a faster and stronger developing. So I choose

Marketing plan of AC architect to research for the report.


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Chapter 1 : Overview of AC Achitecture

1.1. History of establishment and development:

- AC was established at first time in 1996 by architect Pham Van Chuong and

colleagues as an office consulting about architecture. It was also realized as one ofthe first architect companies operating in Viet Nam.

- To 2001, It was renamed to AC Single-member Limited Liability company.

- To 2005, The company had its full name: AC Architecture consulting joint stock

company.

- Currently, the company is located at 16/102 Nguy Nhu Kon Tum Nhan Chinh

Thanh Xuan Ha Noi and has a trading office at 3/4 Do Son Tan Binh District

Ho Chi Minh. With a longtime operating, extensive experiences and the reputation, the manager of

the company- architect Pham Van Chuong concentrated a team of experts, high

qualificated architects in design, architecture, construction who come from Ministry

of Construction, Architect Institude of Viet Nam, Construction Department of Ha Noi,

Univer sity of architecture, University of construction,

1.2. AC organizational s structure:

Departments and human structure:

The total amount of employees in company : 46 people

- General manager : Architect Pham Van Chuong

- Vice manager : 02 people

- Finance department : 03 people

- Administration and human department : 04 people

- Architecture project department : 12 people

- First design team : 14 people

- Interior design team : 08 people


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Modern architecture Industry and civilClassic architecture construction,

Interior design Family house, villa

Description Ac departments:

As we can see above, General manager is the highest position in AC

organizations structure. The manager holds the entire authorities in operating of the

company. Under general manager, we have five main departments: Finance

department, marketing and sale department, architect department, Constructure

department and administration and human department. Architect department is

categorized into modern architect, classical architect and interior design. In addition,

constructor department include Industry and civil constructions and family houses,

villas.

Finance department:- Managing Acs financial and accounting, evaluate assets using, funds right

with management regime of Viet Nam.

- Base on financial and produce plan of AC, organize to looking and promote

units performing follow the plan.

General manager

Vice mana er

Financedepartment

Marketing and saledepartment

Architectdepartment

Constructordepartment

Administratioand humandepartment


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- Organizing manage accounting.

- Periodic reporting to the company about funds fluctuations situation, the

amount of using asset.

Marketing and sale department:- Predicting about supply and demand frequently.

- Making short term and long term business of the company

- Managing growth planning

- Doing economic contracts Architect department:

- Designing following contracts with customers.

- Working with investors to receive design task and discuss design workduring the projects construction.

Constructor department:

- Receiving responsibility to construct projects. Administration and human department:

- Managing administration and staff of the company.

- Managing documents.

- Checking and managing office asset of the company.- Responsibility to type decisions, appointment

- K eeping and using the companys cachet


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Human of company :

Order Title Amount

1 Project leader 02

2 Architecture leader team 03

3 Structure leader 02

4 Estimation leader 02

5 architect 14

6 Construction engineer 05

7 Interior artist 07

8 Economic engineer 02

9 Economic bachelor 03

10 Technique worker 04

11 Others 02

12 Total 46

1.3. Products and services:

ACs o peration fields:

- Architectural design, interior design, outdoor for family house : tube

houses, villas

- Ground plan, interior and outdoor design: industry and civil constructors.

- Evaluate projects, geological survey.

- Consulting investment projects planning.

- Construction interior and outdoor industry and civil constructors.


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AC Architecture offers a new type of digital interactive media for both the client and

the builder. This media will clearly show the client and the builder exactly what the

design will look like and the method of construction.

Products and services include consulting architect in:- Castles

- Commercial buildings

- City halls

- Garden and landscapes

- Villas

- Towns and cities

- Hotels- Government buildings

- Palaces

- School and academic

- Exhibition and exposition.

- .

1.4. Visions and Objectives:From the companys foundation, AC visions was determined : Creating products

which have everlasting value by the time, each construction, each product of AC

attend to architects value, effectiveness and customers satisfaction

In line with that vision, the objectives were set to include :

- Provide a service that is technologically superior to the competition's

- Utilizing a diverse staff of architects to provide a wide variety of product

styles.

- Updating compact keeping the traditional in country architect.

- Architect match with urban.

- Architect match with using purpose.


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CHAPTER 2: ACS MARKETING STRATEGY.

2.1.1. Identifying market segment and selecting target market.

AC realized soon that we cannot serve everyone in board because the customer are too

numerous and diverse in their buying requirements. This is why we look for specificmarket segments that we can serve more effectively. A market segment consists of a

large identifiable group within a market, with similar wants, purchasing power,

geographical location, buying attitudes, or buying habits. Segment marketing allows AC

to create a more fine-tuned product or service offering and price it appropriately for the

target audience. The choice of distribution channels and communications channels

becomes much easier, and AC may find our faces fewer competitors in certain segments.

Market segments can be built up in many ways. One common method is to identify preference segments.

Local marketing: target marketing is leading to some marketing programs that are

tailored to the needs and wants of local customer groups (trading areas, neighborhoods,

even individual stores).

Potential clients for AC Architecture's market is broken down into four categories: home

owners, developers, government, and contractors. Home owners are the largest group

based on shear population and this will be emphasized in all of the firm's marketing and

promotional efforts. Targeting the remaining three groups will be dependant upon

establishing meaningful relationships, and responding and qualifying for request for

proposals.


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Major market of AC is Ha Noi and north cities. In addition, AC also consulting for a few

constructor in the Middle and the South. The target market which giving a large sales for

AC is still in The North. We can see so many ACs constructors though Ha Noi to Quang

Ninh such as in Phu Ly, Ninh Binh, Hung Yen

Beside that, AC realized our strength in classic architect, so we toward to customers who

want to luxury and loyal construction such as castle, hotel and restaurant in classic or

Euro style.

This is some of construction of AC architect:

Home owner71%

Developer10%

Government5%

Contractor

14%

Sales


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2.1.2. Relationship with customer:

Architecture is related with construction so the period that AC have relationship with

one customer is often long. It is not simple that finishing design documents and send

to customers, it is a long time combined operation between AC and customer duringthe process of the constructions. It is often 1.5 to 2 years for a finishing of the

contructions, sometime it maybe last 3-4 years.. AC almost services for middle and

high class so each month, AC have about 10-15 contracts had signed. It can be said

that the number of customers each year reach to hundreds customers.

- Some of project that AC did or doing the contract with many investors such as: five

star hotel and resort at Tuan Chau island invested by Tuan Chau group joinstock

company, joint in designer team in Bai Dinh pagoda project invested by Xuan Truonggroup.

With a long time operation, AC had successful in combine with many partners.

2.1.3. SWOT analysis:

Strengths:

Long history and strong foundation is the first and foremost strength to make AC

architect become a leader in Architecture industry of Viet Nam. Thanks to the

completely qualified products, competitive with the market exiting, throughout about

ten years operating history, AC undoubtedly become a familiar and trusted trademark

in the mind of domestic clients. Moreover, it has gained a great customer satisfaction

and understanding as well as the knowledge of the local market.

Beside that, AC always pay attention to investing in modern equipment. One more

aspects should be highlighted in the strength of AC is that its loyal and cooperative

relationships with both local and oversee partners allow the company to have a stable

material sources at the reasonable price

Last but not least, a professional experienced management team in architecture, a

transparent internal management system and tight and detailed management

procedures are other keys to success making AC a top architect company of the Viet

Nam architecture industry.


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Weaknesses:

Most of Viet Nams population is low -income while products of AC have a very high

price and just suitable for rich men. The economy grow slowly in the coming period

reduce profits and sales revenue of the company. Viet Nams WTO accession will create conditions for foreign company to take part in

the domestic market. It will increase competition among companies in the industry as

a result

Opportunities:

With a long time operation and young competitors in the market, AC confident that

we have enough experiences and professional than the others .

Threats:Viet Nams WTO accession will create conditions for foreign company to take part in

the domestic market. It will increase competition among companies in the industry as

a result

2.1.4. Marketing mix

2.1.4.1. Product strategy:

Product variety:

Although having the major product but AC still supplies almost of architecture

products up to require of the customer:

- Castles

- Commercial buildings

- City halls

- Garden and landscapes

- Villas

- Towns and cities

- Hotels

- Government buildings

- Palaces

- School and academic


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- Exhibition and exposition.

- . Quality:

-

AC focus on quality of products and diffirences. With a team ofexperienced many years, AC is confident that our products have a high

quality.

Service:

- Before and after each construction, AC has a warranty policy for customer.

Product will have sent to cusumer directly by AC staff.

2.1.4.2. Price

Pricing is one of the four elements of the marketing mix also. Pricing strategy is

important for companies who wish to achieve success by finding the price point

where they can maximize sales and profits. It is considered to be a competitive factor

in attracting customers of all businesses. Therefore, putting reasonable policies keep

particularly important role in helping AC having effective business strategies

Product line owning high quality and creating the trust in mind of domestic

consumers allows AC to put a higher price without response

AC have a longtime operation and ours reputation in the market so our products price

have a litte higher than other competitors

In common opinion of consumers, as shopping they often compare the price of the

company having the same product to make the best decision. Therfore, AC conducts

to study about expense, cost, price and quality of competitors products

The design price for housing and civil constructions is base on m2 and agreement ofcustomers.

Price list:

Design constructions: VND/m2:


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ACs pricing is quite reasonable. Outstanding competitive advantage as compared with

the same products is absolute advantage in meeting most of the needs of consumers

everywhere, the entire world and all walks

2.1.4.3. Promotion:

Sale promotion:

"Sales" in this business is a direct result of exceptional client service. It is

based on the firm's image. The more clients this company pleases, the more

referrals are given. AC work to provide a positive experience in all cases soour clients will refer and return to the company for future work as well. The

table below show company sales in 2013:

Sales ( billion dong)

1 Design 20

2 Construction 10

3 Interior product 10

Total 40

Advertising:

- Event, exhibition:

AC taked part in almost construction event or exhibition in local and

another city in Viet Nam such at Vietbuild exhibition . Vietbuild

exhibition is a big event in construction industry which is celebrated


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annual ly in Hanoi, Ho Chi Minh and Da Nang Take advantage of

these opportunities, AC approached and sold companys products and

services to customers who have demand directly. Beside that, through

events and exhibitions, the imaging of AC will be become morecommon. However, it's costs a large expense so the company always

reviews clearly when joints in an event.

- Developing customer base existing customers:

There is no double people working on construction industry has

relationship with each other. AC realized it in time and created good

relationships with regular customer to expand business relationship for

searching new large real estate projects.- Customer care:

AC takes care of their customers carefully, they always provide the best

products and services to their customers combine after sales services.

AC sends gifts and promotions to customers in some big events such as

calendar in traditional New Year.

Making use of the Internet is a great way to market small architecture firms. By

creating a content-rich, visually pleasing and easily navigable website, we can attract

a number of clients. We can make your small architectural firm visible to the whole

world using the Internet; and if it is keyword-search optimized, our site can be

displayed when keyword searches are done by prospective clients, thus making it

highly target market-oriented

Website:

AC has three websites recently:

- kientrucac.com

- bietthuphap.com

- kientrucsuvanchuong.com


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In which, the first is operating and updating usually. Two remain webs

are still in create procession. Those will be media channels for customer

to find out the company easily.

Social network:

Social network is becoming more and more popular, and AC did not

forget to have an company account in facebook or twitter. They are

updated news every day by marketing department.

Newsonline:

AC usually focuses on newsonline, the company is a regular customer

of many newsonline website. There is a marketing fund only use for the

advertising purpose. These are some titles about AC architect onnewsonlines : The secret in Tong Hai Son castle, Castle in Phu Ly.

2.1.4.4. Place:

Major market of AC is Ha Noi and north cities. In addition, AC also consulting for a few

constructor in the Middle and the South. The target market which giving a large sales for

AC is still in The North. We can see so many ACs constructors though Ha Noi to Quang

Ninh such as in Phu Ly, Ninh Binh, Hung Yen

Beside that, AC realized our strength in classic architect, so we toward to customers who

want to luxury and loyal construction such as castle, hotel and restaurant in classic or

Euro style.

2.2.1. Achievements:

Marketing plan proves to be effective in advertising and sale activities. Each method plays an important role in developing companys imagine.

Thank to effective marketing plan, in 2013, the profit of AC rose sightly in difficult

time of the economic, it can be realize as a success in sales

2.2.2. Limitations:


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Even though AC get its successful in its business, it still have some limitations. There

are still some disadvantages in marketing activities of AC. Because AC still a small

business so PR and marketing work is not done well.

-

There is a intense competition between architect firm, group, so thedevelopment of AC have some difficult, AC must share our market for

some competitors.

- Some material was import from foreign, especially in difficult period is a

hard things to AC.

- Marketing plan is not to really effective.

CHAPTER 3: RECOMMENDATIONS.

3.1. Product strategy:A product is seen as an item that satisfies what a consumer demands. It is a tangible

good or an intangible service.Tangible products are those that have an independent

physical existence.

Every product is subject to a life-cycle including a growth phase followed by a

maturity phase and finally an eventual period of decline as sales fall. AC must do

careful research on how long the life cycle of the product they are marketing is likely

to be and focus their attention on different challenges that arise as the product moves.

AC should consider how to position the product, how to exploit the brand, how to

exploit the company's resources and how to configure the product mix so that each

product complements the other. The marketer must also consider product

development strategies.

3.2. Price strategy:

The amount a customer pays for the product. The price is very important as it

determines the company's profit and hence, survival. Adjusting the price has a

profound impact on the marketing strategy, and depending on the price elasticity of

the product, often it will affect the demand and sales as well. AC should set a price

that complements the other elements of the marketing mix.


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- Setting a uniform price everywhere: this strategy would result in the price being too

high with low income customer and not high enough with high income customer.

- Setting a market-based price in each city:

- Setting a cost-based price in each city:3.3. Promotion strategy:

AC promotion strategy is so well now, but it need to be built a identified brand

system.

- Firstly, AC need to have a real standard, professional identified brand system, have a

positioning about target customer, target market, products and service.

Managing website:

- update information in companys website frequently - back up database for website

- evaluating customer accession and searching

Searching marketing:

- Short term solution: google addworks: buying key word that searched many in

architecture to introduce to customer products and services. It will help AC reach to

customer fastly.

- Long term solution: Seo: analysis and chose 10-20 suitable key works then make a

plan seo website audit these key works

PR online: This is very necessary and important:

- Write PR writing professionally

- Planning upload PR writing suitably

- Make an account, fan page in social website such as: facebook, Youtube,

Twitter

Email marketing:

Email is a equipment that looking for customer effectively, but is also a spam, can make

customer feel incomfortable, so AC need to do these things to use email effectively:

- Investing an account, software send email marketing professionally


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- Searching email below object

- Built a professional email content

- Sending email right object and right time.

3.4. Place strategy:

Refers to providing the product at a place which is convenient for consumers to

access. Various strategies such as intensive distribution, selective distribution,

exclusive distribution and franchising can be used by the AC company to complement

the other aspects of the marketing mix

CONCLUSION

Small architectural firms have slowly dwindled, being unable to cope with

competition from established larger firms. This makes it essential for the existing

small architectural firms to have a well-thought-out marketing plan and effective

marketing strategies to become successful firms. Some firms have selected a certain

niche to specialize in; others have formed alliances with other services to stay in

business. With a good marketing strategy they can attain their target goal more easily.

Marketing plays a crucial role in the development of every firm. Sales and

developing of company emaging are all significantly in this factor. Additionally, an

effective marketing plan is the key to ensuring the profit of company


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APPENDIX

References:

1. Marketing basics , Philip Kotler

2. AC marketing and sale plan 2013, 2014

ac's marketing strategy

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