Contents 1. 2. 3. 4. 5. 6. Introduction .....................................................................................................................2 The importance of innovation in the market ................................................................2 Ethical issues in marketing .............................................................................................

4 The implication of ethical issues on the marketing mix ...............................................5 Conclusion ........................................................................................................................5 References ........................................................................................................................6

1. Introduction In the recent years, with the high dynamic market and integration in the world economy, the high competition appears among enterprises. The competitors can be the domestic companies and foreign companies. In order to sustain the market share and strong position in the market, it requires Vietnamese companies to enhance domain knowledge, professional skills and right strategies. Marketing is one of the most important skills to develop the business results of company. Establishing in 1993 and operating for 19 years in the field of foodstuff such as cake, candy, ice-cream, beverage and products from milk. Kinh Do has many experiences and maintains the market leader in the foodstuff group in Vietnam. This report focuses on the marketing of Kinh Do through the need of innovation to increase revenues, ethical issues in making marketing and marketing mix of Kinh Do when implying ethical issues. The purpose of report is to develop the marketing plan of company in the next three years. 2. The importance of innovation in the market Even though the world economy and Vietnamese economy face many difficulties and challenges, Kinh Do still achieved the excellent performance with 4.25 trillion VND of revenue in 2011 increasing 32.6% against 2010 and 279 billion VND of net profit after tax going up 11.1% in comparison with 2010. The Kinh Dos leaders emphasize the changes to adapt the new business environment by changing products, services, processes, formats, management models and capabilities (Annual Report, 2011). Kinh Do realizes the importance of innovation to increase the competitive advantages and develop the products. The innovation makes the company distinct from other competitors. In order to obtain the

business development as today, Kinh Do has invested to research the market to understand the Vietnamese consumer behaviors, factors impacting on the purchase decision of consumers. The needs and requirements of consumer are higher and higher, Vietnamese people pay more attention to their health thus they want the high quality products and good services. Kinh Do is aware of the needs of people on nutrition so it makes different research to create the best products to consumers. Innovation is really crucial to marketing because it is the good way to create the unique brand image and brand identity. The consumers can recognize the Kinh Dos products, brand and logo easily. The effective advertising and marketing can make the exceptional influence to the business performance. Kinh Do succeeds to build the strong brand by joining in many social activities and being sponsor for many large events, major shows and game shows. Furthermore, Kinh Do makes different interesting television advertising to attract the viewers. The company identifies main five roots to build strong growth. The first strategy is defining strategic business units that bases on product category. This strategy helps the company to meet the market conditions and sustain the growth, profitability and competitive advantages. The second thing is establishing functional teams according to group level including HR, IT, Accounting, Finance, Sales, Marketing and Logistics. Each business unit has to focus on creating competitive advantages. Besides, the Kinh Dos leaders encourage the heads of strategic business units to involve in decision-making process, hold the opportunities and maximize the efficiencies of management. Kinh Do finds the way to attract the best talents people with different personalities, background, experience and ethnic groups to enhance the strength of workforce. In 2012, Kinh Do has over 50 products innovation and 3 new product category.

Being innovative in marketing, Kinh Do has gained the great success and built successfully its brand name in the Vietnamese market (Annual Report, 2011). 3. Ethical issues in marketing Almost companies recognize that ethics is one of the most important factors in business but they have some confusion to implementing ethical issues in their operations. At the present, the enterprises leaders concentrate on ethics in marketing to avoid the imitation and minimize the bad impacts on their brands. The ethical issues in marketing reflect in market research, target customers, target market, pricing, advertising and promotion. In the market research, the company has to ask the permission before obtaining research information. The leaders should focus on collecting and analyzing the results of market research to ensure the fairness and accuracy of each factor. The market reach should be clear and the company must ensure the information of participants keep in confidentiality (Pride and Ferrell, 2012). To increase sales and number of customers, the company needs to identify the target customers and target market to have the right strategies. Price is always the important factor that influences directly to profits of company and purchase decision of customers. The companies should make the fair price competition and avoids the bad behaviors in business. The advertising has to tell the truth and honesty about the benefits of products. Every day, there are many advertising on television, newspaper, website, magazine, billboard and brochure. The consumers have difficulties in choosing the best products. Besides, the advertising should be appropriate for the culture to avoid the negative results. It is essential to respect the customers, competitors, partners, shareholders, followers, communities and other stakeholders to develop business strongly and firmly in the long term (Ferrell and Hartline, 2010).

4. The implication of ethical issues on the marketing mix Kinh Do is the large Vietnamese company in food and beverage industry. Operating in Vietnam, the Kinh Dos leaders know that they have to understand the Vietnamese people and Vietnamese culture to obtain the success. Marketing mix is one of the most useful tools helping the companies to develop marketing. In the current market, Kinh Do has to compete with different domestic companies and foreign companies such as Duc Phat, Orion and Vinabico. Kinh do focuses on people, place, price and promotion in its marketing mix. The company commits to create products and services that make peoples lives better every day (Kinh Do, 2011). It ensures the quality of products and offers the reasonable prices to customers. It builds strong distribution system so the consumers can reach its products easily. Furthermore, Kinh Do has many promotion programs to attract customers. The Kinh Dos leaders have made strategies to develop the company and increase the values to customers. Many types of product are produced to meet the tastes and preferences of Vietnamese consumers. It makes the food and flavor strategy to identify the demands of consumer. In addition, Kinh Do always changes its product and re-energizes the old crackers to re-launch the market. Kinh Do always creates the fair competition among companies to ensure the benefits of customers and contributes to the improvement of communities by joining in social activities, establishing scholarship funds for students, helping the old and children. It uses the good management system to minimize the bad influence on the environment. In the next few years, Kinh Do still focuses on increasing values of customers and innovation in business basing on the good image in the Vietnamese consumers mind. 5. Conclusion

Marketing is always the important factor in achieving the good performance and high profitability to company. The Kinh Dos leaders commit to create more values to stakeholders and inspire employees to be innovative in work. The Kinh Dos products are known as the good quality products. Kinh Do must emphasize the marketing ethics to build the strong brand equity in the market place. The good brand and image will create more success to the company. 6. References Ferrell, O. C. and Hartline, M. D. (2010). Marketing Strategy. 5th edn. US: Cengage Learning. Kinh Do. (2009). Home. Available at: http://kinhdo.vn/Default.html [Accessed: 6th December, 2012]. Kinh Do. (2011). Annual Report. Available at: http://kinhdo.vn/Upload/AnnualReport/KDCAnnual-Report-2011-FINA-En.pdf [Accessed: 6th December, 2012]. Pride, W. M. and Ferrell, O. C. (2011). Marketing 2012. 16th edn. US: Cengage Learning.