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wen wen

on 9 April 2013

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Transcript of Faber-Castell

Company Character Marketing Mix Strategies Marketing Plan Development Conclusion Implementation Control Control

Standards - Quality of products
- Reputation of Faber-Castell
- Customers’ satisfaction

Assign Responsibility

Performance Measurement

Correction for Error Host-Country Constraint
(Vietnam) Political Home-Country Constraints
(Malaysia) Political SWOT Analysis Benefits - High demand market
- Mass production
- Low cost production
- Distribution to neighboring countries

Risks - Two major competitors
- High corruption rates
- Loose intellectual properties law History 1761, Kaspar Faber start makes his first pencils in stein , near Nuremberg in Germany
Min 19 Century, Lothar Faber transform the company to mechanize produce the pencils
A.W.Faber is first Brand Name writing products in the world
1896, his granddaughter Ottilie become to the family business.
1989, married Court Alexander Zu Castell – Rudenhausen
family name becomes Faber - Castell
1978, expands to the global operations
has almost 6000 employees, 15 production sites and 20 sales organizations to represent in over 120 countries around the world Company Logo two jousting knights in dark green

1905, Count Alexander brought a new range of top-quality pencils, which he called Castell

To distinguish competitors, chose his regimental colour for the paint coating is green Malaysia Managing Director Mr. Toh Yan Peng is the co-founded the Faber- Castell company in Malaysia in 1978
Managing Director for the Asia Pacific region and sits in its global board of management.
the first producer of pens with GEL technology in Malaysia
the International Stationary Publishers Awards (ISPA), Promotion Gifts Awards, ISO 19001,ISO14001
headquarters and supply centre for the Faber -Castell
in the Asia Pacific operations Products List Awards & Achievements ISO 9001, ISO14001, SIRIM
SUPER BRAND in 2002 for the stationary industry
ISPA awards also won in 2007 and the IF DESIGN and Promotional Gifts Awards 2008 for the Sleeve eraser
PBS award for the Kosmo eraser Environment & Social Respect wood-cased pencils, has focus in the woods as the important raw material

Forestry plantations to balance the alternative

certified by the Forest Stewardship Council

Conserving natural resources for better quality life Constitutional monarchy with Parliamentary Democracy

controls media groups and self-censorship

restrictions on freedom of expressions

transparency and corruption index ranked in 54th

government controls major sectors such as oil and banking Legal English laws and judicial institution

Federal Constitution contains basic human rights

local laws, Islamic Law ,commercial laws, cyber laws and intellectual property laws

highly regulations on non-manufacturing areas Economic transformation stage

exports, primarily in electronics, oil and gas, palm oil and rubber

Euro sovereign debt crisis

impose various amount of tax payment for businesses Social-Cultural multi-ethnic and multi-religious society

official national language is Bahasa Malaysia

cultural sensitivity and empathy needed in meeting and working

different festivals for public holidays

Malays are poorer , there is a wealth imbalance in Malaysia Fairly stable

Expropriation- claimed around 1535 foreign assets

License- renew every 5 years

Corruption- 123rd (2012), 112th (2011) Economic GDP in 2009-2011 - < 7% per annum average

Poverty- 47% live below US$2 perday

High Tax- 30% (Vietnam), 20% (Malaysia) Geography Flooding during monsoon seasons Culture Multi ethnic in Vietnam

Focus in Vietnamese language instead of english Competition Hong Ha Stationary- 50 years

Thien Long Group- voted as top 100 “famous Brand” Legal Loose intellectual properties law

Long procedure to get license

Not being informed for new law Level of Technology Higher speed internet compare to those day but limited method of accessing link to outside country

Machines are simple technologies Structure of Distribution Inconvenient transportation system- bicycle

main source of transportation for goods- rivers and canals

International shipping- behind time Price Adopt Penetration Pricing Strategy

Aim to increase sales volume and market share of the products

Had lowered the cost by manufacturer in Vietnam with cheap labor cost

Discounts offer to customer, suppliers, distributors & supermarkets
- Quantity discount
- Seasonal discount
- Cash discount
- Promotional discount Price List *Exchange Rate, RM 1= VND 6708.34 Promotion Advertising Media - Television [National flagship Vietnam Tv, Ho Chi Minh Tv, VCTV]
- Cinemas [Megastart cineplex, Diamond cinema, Thang Long cinema]
- Newspaper, Magazines [tuoi tre, saigon, her world, reach vietnam, elle]
- Outdoor advertising - public transportation & billboard along the road
- Direct mailing & Social networking sites to create product awareness

Sales promotion - giving out free sample
- twin pack offers & buy one free one for specific promotion period

Public relations - sponsoring and launch events (coloring competition, helping charity
works, contributing to the local community) Place/Distribution Will be using wholesaling and retailing method

Bookstores - Tan Dinh Bookstore in Ho Chi Minh City, Thang Long Bookshop,
Phu Xuan Bookstore.

Supermarket, Mini market, convenient stores

Shopping Mall - Lotte, MaxiMart, Metro, CitiMart, Saigon Coop

Directly sell to end user as a company who order a big amount of quantity

Logistics - land route transportation Objectives & Goals To increase 10% sales year by year

To achieve positive return on the investments starting from the second year of investment

To increase the brand awareness by 30% in the second quarter

To increase 20% of the new customers from referral and world of mouth

To achieve the low cost productions

To evaluate the current marketing plan and strategies for the second year Strategies & Tactics Market penetration strategy

- Penetration pricing strategy

- Massive advertising and promotional activities

- Quality control and monitoring program through customer survey & participative

- Mass production

- Benchmarking technique

- Continuous monitoring over marketing strategies and tactics on a quarterly basis Mode of Entry Foreign manufacturing strategies with direct investment

~ Set up a factory in Long An Province

~ Wholly own subsidiary

~ Minimize the political risk

~ Reduction of tariffs and taxes Budgets Action Plans Pre Launch - Factory set up

- Recruitment and Selection

- Machines installation

- Preparation for marketing activities

Launch - Promotional activities for special events

- Sales activities targeted to big companies

Post Launch - Planning for manufacturing new products

- Reviewing 2013 profit an expenses

- Overall performance analysis Implementation Control Conclusion
label the products with Vietnam language
brandname and logo remain the same

- features are standardized
- color of product is bright in color
- products remain unique throughout the world
- labeling indicate all in Vietnam language
- provide the products packed in packets

made from approprite and quality of materials
internationally known as superb quality, innovation and creativity
just in time manufacturing Adaptation and Brand name Products feature and packaging Quality and standard of products Product Products 1. LAI RUI JIE
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