SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

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MID-TERM REPORT

Course: International Marketing (MKTE401.1)

Instructor: Dr. Tran Thu Trang

TOPIC: INTERNATIONAL MARKETING MARKET

SELECTION FOR EXPORTING WATERSILK
TOILET TISSUE
GROUP 8

1 Vũ Thị Phương Thanh 1810150027

2 Nông Ngọc Minh 1810150018

3 Trần Việt Hoàng 1811150080

4 Nguyễn Lê Hoàng 1811150079

5 Phạm Thị Khánh Ly 1812250025

6 Nguyễn Thu Trang 1812250037

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 Hanoi, 2021

Table of contents
I. INTRODUCTION.............................................................................................4
1. Introduction of the Company........................................................................4
a. Introduction and background of Watersilk.................................................4
b. Potential for exporting of the company......................................................4
2. Product...........................................................................................................5
3. SWOT analysis..............................................................................................6
a. Strength.......................................................................................................6
b. Weakness....................................................................................................6
c. Opportunities..............................................................................................7
d. Threats........................................................................................................7
II. COMBINATION MARKETING SCREENING AND EXCLUSION
APPROACHES IN SELECTING MARKET......................................................8
1. Criterion 1: List of the world’s largest importing countries of Toilet Tissue
(Selection criterion)...........................................................................................8
2. Criterion 2: Import tax rate (Selection criterion)...........................................9
3. Criterion 3: Business countries have successfully exported Toilet Paper
(Exclusion criterion)..........................................................................................9
4. Criterion 4: Import growth rate (Selection criterion)....................................9
5. Short list of some potential countries for exporting....................................10
III. SELECTION OF THE FOREIGN EXPORTING MARKET......................10
1. Market size..................................................................................................10
2. Market growth.............................................................................................11
3. Taxation.......................................................................................................12
4. Geographical Disadvantages and Cross-cultural Risk.................................13
5. Political stability..........................................................................................14
a. Political system:........................................................................................15
b. Level of terrorism.....................................................................................16
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 6. Conclusion...................................................................................................17
IV. PERT ANALYSIS........................................................................................18
1. Political system.........................................................................................18
a) Form of Government.............................................................................18
b) Political stability....................................................................................18
c) Level of terrorism.................................................................................19
2. Economy...................................................................................................19
a) Overview...............................................................................................19
b) GDP trends............................................................................................20
3. Regulatory................................................................................................20
a) Legal system..........................................................................................20
b) IP Protection..........................................................................................21
c) Tax law..................................................................................................21
4. Technology...............................................................................................21
a) Appropriability......................................................................................21
b) Infrastructure.........................................................................................21
V. MODE OF ENTRY.......................................................................................22
1. Advantages..................................................................................................22
2. Disadvantages..............................................................................................22
VI. 4Ps................................................................................................................23
1. Products.....................................................................................................23
2. Price...........................................................................................................24
3. Place...........................................................................................................25
4. Promotion..................................................................................................26
REFERENCE.....................................................................................................28

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I. INTRODUCTION

1. Introduction of the Company

a. Introduction and background of Watersilk

Initially, Song Duong Tissue company was named "Cau Duong wood factory"
and was established in 1959 as a subsidiary of Vietnam Paper Corporation.
Experiencing many ups and downs during the war as well as the fluctuations of the
economy, the Company developed the traditional product of Plywood with the famous
"Cau Duong Wood" brand name.

In 1977, Cau Duong wood factory merged with Bai Bang paper company and
produced paper products such as Bai Bang notebook paper, large roll tissue paper for
industrial use, tissue paper with the brand names of Watersilk and Comfy.

In 2005, “Cau Duong Wood Factory” was renamed Song Duong Tissue
Company. The vision of Song Duong Tissue Company is to become the leading
manufacturer and supplier of prestigious Tissue and Plywood products in Vietnam.

b. Potential for exporting of the company

Toilet Paper is the world's 133rd most traded product. In 2019, the top
exporters of Toilet Paper were China ($4.18B), Germany ($2.84 billion), United
States ($1.65 billion), Poland ($1.63 billion), and Japan ($1.43 billion). In 2019, the
top importers of Toilet Paper were the United States ($2.61 billion), Germany ($2
billion), France ($1.46 billion), United Kingdom ($1.32 billion), and Canada ($1.27
billion).

Panic buying in the first few months of 2020 has immensely increased the
demand for household essential goods including tissue papers during COVID-19
pandemic. Lockdown rules imposed by respective government authorities made
people stay at home, thereby increasing the consumption of at-home toilet tissues. For

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instance, Kimberly Clark’s 2020 first-quarter sales reached USD 1.7 billion that
increased by nearly 13% as compared to the same period in 2019. The increasing
demand for toilet paper in many countries around the world during COVID-19
pandemic is a potential for export activities of Vietnamese toilet paper companies,

The global toilet roll market is expected to grow from $20.15 billion in 2020 to
$21.37 billion in 2021 at a compound annual growth rate (CAGR) of 6.1%. The
growth is mainly due to the companies rearranging their operations and recovering
from the COVID-19 impact, which had earlier led to restrictive containment measures
involving social distancing, remote working, and the closure of commercial activities
that resulted in operational challenges. The toilet paper market is expected to reach
$27.08 billion in 2025 at a CAGR of 6%.

Tissue paper products were manufactured on paper machines using Cressent

Former technology with a capacity of 10,000 tons per year, the most advanced in
Vietnam at that time, manufactured and installed by Kyoung Yong - a famous Korean
supplier. It officially went into production since 2002

With a tissue paper production line initially invested with nearly 200 billion
VND, Song Duong Tissue Company owns modern production lines that are not
inferior to those in regional countries and the world. Comparison of scale, equipment,
and modern technology, Tissue Song Duong company is one of Vietnam’s four largest
tissue paper factories. In the form of semi-finished products (jumbo roll), the
Company's tissue paper products have been exported to many countries such as
Taiwan, Australia, Korea, etc.

2. Product
The “Watersilk” brand was launched in 2003 by Tissue Song Duong Co. after
one year of research and preparation. The brand name suggests the premium
experience that the products bring to consumers: smooth, soft, and cool. Watersilk is
currently one of the most popular toilet paper brands in Vietnam.

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 The toilet paper products of Watersilk are various in packaging: 6, 10, or 12
rolls per pack. The products have two types: with or without a carton core. Depending
on the product line, prices range between 30,000 VND and 80,000 VND.

Watersilk toilet paper products are made from 100% natural wood pulp from
carefully chosen sources. Paper is manufactured in the most modern closed chain in
Vietnam (with a capacity of 10,000 tons per year) and processed with the latest
technology, guaranteeing consistent quality and meeting Vietnamese and international
standards. The paper products of Tissue Song Duong Co. were certified by Vietnam
Certification Centre (QUACERT) as compliant with national standards (TCVN
7064:2002 and TCVN 7065:2002).

3. SWOT analysis

a. Strength
● Watersilk is the most popular brand of toilet paper in the Northern region of
Vietnam. After 14 years of building the Watersilk brand, starting from nothing,
Song Duong Tissue company has reached over 10,000 tons/year.
● Watersilk toilet paper has the most competitive price in Vietnam. A pack of 12
rolls of Watersilk toilet paper with retail price from only 28,500 to 30,000
VND
● Watersilk toilet paper is produced on a closed modern manufacturing line,
100% natural pulp is imported from Indonesia, and is closely monitored at each
stage of production. The product has natural whiteness, smooth toughness, and
high absorbency, and is safe for users.

b. Weakness
● Watersilk has only focused mainly on the domestic market. Watersilk's export
activities are limited. Currentl, the company only exports jumbo rolls of toilet
paper to a number of markets such as Taiwan, Australia, Korea, ...

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c. Opportunities
● During the COVID-19 pandemic, shortage of toilet paper in the US has been all
over the news. One reason for this is that consumers’ demand for toilet paper
spikes for hygiene reasons. Meanwhile, a broken supply chain due to the
COVID-19 has resulted in decreased supply of goods, including toilet paper.
Compared to many other countries, Vietnam has been controlling the pandemic
quite effectively since the outbreak until now, ensuring economic stability.
Watersilk can take advantage of this opportunity to expand production and
export products to markets that are having difficulties meeting domestic
demand for toilet paper like the US.
● Vietnam has rich wood resources, which is the main source of raw materials for
the production of toilet paper. Abundant labor force is also an advantage to
increase production scale. In addition, the business environment in Vietnam has
been significantly improving, with many government policies to encourage and
create favorable conditions for business investment and expansion.
● The US tariff rate applied to Vietnam’s toilet paper products is 0%. This means
that Watersilk toilet paper products, if exported to the US, will not face any
tariff barriers.

d. Threats
● The US mainly imports toilet paper from China and Canada, respectively
accounting for 46.1% and 33.9% of the US’s total toilet paper imports in 2019.
These two exporters have dominated the toilet paper market in the US and have
many brands that American consumers are familiar with. Meanwhile,
Vietnam's toilet paper exports to the US only accounted for 1.7%, ranking the
6th. Competition for Vietnamese toilet paper, specifically Watersilk, is tense.

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 Share in the US imports of toilet paper products in 2019 (Source: ITC)

II. COMBINATION MARKETING SCREENING AND EXCLUSION

APPROACHES IN SELECTING MARKET

1. Criterion 1: List of the world’s largest importing countries of Toilet

Tissue (Selection criterion)
Firstly, in order to screen the importing market, it is crucial to find out which
country imports the most Toilet Paper.
In 2018, the U.S imported 208 thousands tonnes and Germany imported 199
thousand tonnes represented roughly 20% of world toilet paper imports. It was
followed by the Netherlands with 100 thousand tonnes, achieving a 4.9% share of
total imports. The following importers - France with 87 thousand tonnes, China, Hong
Kong SAR with 83 thousand tonnes, Denmark with 72 thousand tonnes, Saudi Arabia
with 66 thousand tonnes, Canada with 66 thousand tonnes, Belgium with 64 thousand
tonnes, the Czech Republic with 60 thousand tonnes, Japan with 34 thousand tones-
together made up 29% of total imports. In value terms, the U.S. ($375M), Germany
($320M), and the Netherlands ($164M) were the countries with the highest levels of
imports in 2018, with a combined 24% share of global imports.

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 List countries where have the highest rate of importing Toilet tissue: The US,
Germany, Netherlands, France, China, Denmark, Saudi Arabia, Canada, Belgium,
the Czech Republic, Japan

2. Criterion 2: Import tax rate (Selection criterion)

It is beneficial to choose importing countries which impose 0% tariff in
Vietnamese products by virtue of competitive advantages over foreign ones and cost-
saving. According to Worldbank, there are some potential market but with low MFN
tariff on Vietnamese products, which are: Saudi Arabia, Ireland, Pakistan, Myanmar,
Switzerland, Portugal, Sweden, Poland, Greece, Korean, Turkey, Singapore,
Denmark, France, Netherland, Europe and Central Asia, United State, Rusia, Brunei,
Belgium, Jordan, Bangladesh, England.

3. Criterion 3: Business countries have successfully exported Toilet Paper

(Exclusion criterion)
To screen which market is the most suitable for implementing it is significant
to exclude countries that are ranked the highest Toilet Paper Exports by Country.
China exported 229 thousand tonnes and Germany exported 222 thousand
tonnes which represented the main exporters of toilet paper in 2018, finishing at
approximately 11% and 11% of total exports, respectively. It was followed by Italy
with 127 thousand tonnes, Poland with 109 thousand tonnes, Sweden with 104
thousand tonnes and Canada with 84 thousand tonnes, together comprising a 21%
share of total exports.
List countries where the company had exported Toilet tissue: China, Germany,
Italy, Poland, Sweden, Canada.

4. Criterion 4: Import growth rate (Selection criterion)

Another important criterion is import growth rate which indicates the rising
demand in Toilet tissue. This factor decides whether the exporting brings profit for the
company in the near future. According to the statistics which are recorded in
statista.com there are a number of countries that have a high import growth rate in the

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next 5 years: The US (2.28%), Sweden (2.06), Japan (1.58), England (2.04), France
(2.05), Canada (2.49), China (6.28)

5. Short list of some potential countries for exporting

Based on the previous analysis and advantages and disadvantages of each
country, we choose to analyse 4 potential markets where our company can promote
Toilet tissue products: The USA, England, France and Japan.

III. SELECTION OF THE FOREIGN EXPORTING MARKET

1. Market size
Market size is made up of the total number of potential buyers of a product or
service within a given market, and the total revenue that these sales may generate.
Americans are the world’s leader in toilet paper consumption. Every year, the
average American uses over 140 rolls of toilet paper. – that’s 28 pounds, twice as
much as someone in France or Italy. In fact, Americans, just 4 percent of the world’s
population, are responsible for 20 percent of global toilet paper consumption. While
the consumption of toilet paper is about 91 rolls in Japan, and 71 rolls in France.
Every Briton flushes 17.6 kilos (39lb) of toilet paper down the lavatory every year,
almost two and half times the European average, according to tissue industry figures.
British toilet paper consumption of 110 rolls per capita.
Weights for the market size of toilet paper: 25%
Classify the score on a scale of 0-4:
From 0 to 28 rolls per capita: 0 = unacceptable
From 28 to 56 rolls per capita: 1 = poor
From 56 to 84 rolls per capita: 2 = average conditions
From 84 to 112 rolls per capita: 3 = above average conditions
From 112 to140 rolls per capita: 4 = superior conditions

Market size USA England Japan France

Number of toilet paper rolls per capita 140 110 91 71

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Score 4 3 3 2

2. Market growth
Market growth is considered as the ability to sell products in a specific region
or area in future. Annual percentage growth rate at market prices based on constant
local currency. In the other words, Market growth is defined as the rise in the demand
for a product or a service in the market. Usually, the market growth happens when a
company is in its expansion phase.
According to statistic.com, in the next five years the Toilet Paper segment is
estimated as below:
- USA: Revenue in the Toilet Paper segment amounts to US$13,515m in 2021.
The market is expected to grow annually by 2.28%
- England: Revenue in the Toilet Paper segment amounts to US$16,208m in
2021. The market is expected to grow annually by 2.04%
- Japan: Revenue in the Toilet Paper segment amounts to US$2900m in 2021.
The market is expected to grow annually by 1.58%.
- France: Revenue in the Toilet Paper segment amounts to US$1404m in 2021.
The market is expected to grow annually by 2.05%
Weights for the market size of toilet paper: 25%
Classify the score on a scale of 0-4:
From 0 to 0.5 rolls per capita: 0 = unacceptable
From 0.5 to 1 rolls per capita: 1 = poor
From 1 to 1.5 rolls per capita: 2 = average conditions
From 1.5 to 2 rolls per capita: 3 = above average conditions
From 2 to 2.5%: 4 = superior conditions

Market size USA England Japan France

Annual growth rate 2.28 2.04 1.58 2.05

Score 4 4 3 4

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3. Taxation
Here we will take a look at two types of taxes that these countries impose on
international business: commercial tax rate which is the amount of taxes and
mandatory contributions payable by businesses after accounting for allowable
deductions and exemptions as a share of profits and taxes on international trade
including import duties, export duties, profits of export or import monopolies,
exchange profits, and exchange taxes.

Source: Trading Economics

Source: The World Bank

It can be seen that more than half of commercial profits of businesses operating
in France will go directly to the government while the United Kingdom facilitates a
more favorable environment, collecting only around 30% of profits in total. Still, it is
worth mentioning that the US has recently reduced corporate tax to encourage its
domestic businesses under President Trump’s regime. On the other hand, taxes on
international trade of both France and the UK have long remained stable with
particularly no taxes at all (especially with the EVFTA now in effect), whereas in the
last few years, that of the United States, partly due to the trade war with China, have
doubled to more than 2%.
Weights for the taxation on toilet paper: 20%
(1) Commercial tax rate
Classify the score on a scale of 0-4:
From 60 - 75%: 0 = unacceptable

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 From 45 to 60%: 1 = poor
From 30 to 45%: 2 = average conditions
From 15 to 30%: 3 = above average conditions
From 0 to 15%: 4 = superior conditions
(2) Taxes on international trade
Classify the score on a scale of 0-4:
From 20 - 30%: 0 = unacceptable
From 15 to 20%: 1 = poor
From 10 to 15%: 2 = average conditions
From 5 to 10%: 3 = above average conditions
From 0 to 5%: 4 = superior conditions

Taxation USA England France Japan

Commercial Tax Rate 35% (2) 30% (3) 60% (1) 45% (2)

Taxes on International Trade 2% (4) 0% (4) 0% (4) 1.5% (4)

Score 3 3.5 2.5 3

4. Geographical Disadvantages and Cross-cultural Risk

There are certain disadvantages to conducting business in a country that is half
a world away. An unavoidable consequence of any international expansion is that
many logistical considerations will quickly become more complicated over time.
Shipping from one country to another can take a long time, and what would you do in
the event of delays or even missing consignments. Another problem is that a different
time zone has the potential to disconnect between headquarters and subsidiaries.
Although not all time zone conflicts are that severe, it’s important to minimize
inefficiencies; if each place has to wait until the following morning for a reply to an
important email or delivery, everything slows to a crawl. This means that Japan might
have an edge over other considerations of ours—being closest to Vietnam.

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 Next, being an essential product to have in any household, we can safely
assume that cultural differences won’t have any significant impact on the toilet paper
business, wherever they are. Nonetheless, the ongoing trends of environmentally-
friendly products should be taken into consideration as the people of these developed
countries care more about the environment and are willing to pay a higher price for
these products.
Weights for the geographical disadvantages: 10%
Classify the score on a scale of 0-4:
From 20,000 to 25,000km: 0 = unacceptable
From 15,000 to 20,000km: 1 = poor
From 10,000 to 15,000km: 2 = average conditions
From 5,000 to 10,000km: 3 = above average conditions
From 0 to 5,000km: 4 = superior conditions

USA England France Japan

Geographical Distance 14,000km 10,000km 10,000km 4,000km

Score 2 3 3 4

5. Political stability
Political stability is the durability and integrity of a current government regime.
This is determined based on the amount of violence and terrorism expressed in the
nation and by citizens associated with the state. A stable society is one that is satisfied
with the ruling party and system of operations and is not interested in revolutionary or
despotic ideas.

a. Political system:
The United States is a federal constitutional democratic republic, in which the
president (the head of state and head of government), Congress, and judiciary share
powers reserved to the national government, and the federal government shares
sovereignty with the state governments. The United Kingdom is a unitary state with

14
devolution that is governed within the framework of a parliamentary democracy under
a constitutional monarchy in which the monarch, currently Queen Elizabeth II, is the
head of state while the Prime Minister of the United Kingdom, currently Boris
Johnson, is the head of government. France has a semi-presidential system of
government, with both a President and a Prime Minister. The politics of Japan are
conducted in a framework of a multi-party bicameral parliamentary representative
democratic constitutional monarchy in which the Emperor is the Head of State and the
Prime Minister is the Head of Government and the Head of the Cabinet, which directs
the executive branch.
According to the Fragile States Index, published by the Fund for Peace, we
have a table:

Indicators USA UK France Japan

State Legitimacy 2.9 2.9 1.2 0.6

Public Services 1.2 1.6 1.3 1.3

Human Rights 3.9 1.8 1.3 3.2

According to the data above, comparing to the other 3 countries, Japan is the
country with the highest population’s level of confidence in state institutions and
processes, USA is the country with the best provision of essential services, such as
health, education, water and sanitation, transport infrastructure, electricity and power,
and internet and connectivity, and France is the country with the best relationship
between the state and its population insofar as fundamental human rights are protected
and freedoms are observed and respected. Overall, USA, UK, France and Japan are
ranked 149th, 149th, 160th and 158th respectively, which leads to the conclusion that
France’s political system is more stable than the 3 other countries’.
Weight for the political system fragility:
Classify the score on a scale of 0-4:
From 1st to 50th: 0 = unacceptable
From 50th to 80th: 1 = poor

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 From 80th to 110th: 2 = average conditions
From 110th to 160th: 3 = above average conditions
From 160th: 4 = superior conditions

USA UK France Japan

Political 149th 149th 160th 158th
System
Fragility Rank

Score 3 3 4 3

b. Level of terrorism
According to the Global Terrorism Index 2020 measuring the impact of
terrorism, published by The Institute for Economics & Peace, USA, UK, France and
Japan are placed at 29, 30, 38 and 79 respectively. USA, UK and France are
categorized as countries with medium impact of terrorism, and Japan is categorized as
a country with a low impact of terrorism. That means Japan has the lowest level of
terrorism among 4 countries.

Weights for the level of terrorism: 10%

Classify the score on a scale of 0-4:
Very high: 0 = unacceptable
High: 1 = poor
Medium: 2 = average conditions
Low: 3 = above average conditions

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 From very low to no impact: 4 = superior conditions

USA UK France Japan

Level of Medium Medium Medium Low
terrorism
Score 2 2 2 3

6. Conclusion

Variable Indicators Weight Score Country

(%) (point) USA England Japan France

Market Number of 25% 0-4 4 3 3 2

Size toilet paper
rolls per
capita
Market Total revenue 20% 0-4 4 4 3 4
Growth and annual
growth rate

Taxation Commercial 20% 0-4 4 4 2 3

Tax Rate
Competit Cultural 0% 0-4 4 4 4 4
ive risk distance

Geographical 10% 0-4 2 3 4 3

distance
Political Political 15% 0-4 3 3 3 4
stability system

Level of 10% 0-4 2 2 3 2

terrorism
Total 100% 3.45 3.3 2.9 3

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Since USA is the country with the highest total score, this is where we choose to
export our products to.

IV. PERT ANALYSIS

1. Political system

a) Form of Government

The United States is a federal constitutional democratic republic, in which the

president (the head of state and head of government), Congress, and judiciary share
powers reserved to the national government, and the federal government shares
sovereignty with the state governments.

b) Political stability

The US is in the 149th position due to its political system. Two political parties,
the Democratic Party and the Republican Party, have dominated American politics
since the American Civil War, although other parties have also existed. Because of
this, America’s policy can be contradicting with each passing President. Also, each
State has their own law, legal system and mini-government. Therefore, Federal
Government (or central government) only has partial control over the States

c) Level of terrorism

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 In 2020, the index of The US is 5.260 increase by 2 ranks compares to last
year, which is pretty high and have the tendency to become worse due to political
pressure groups.

2. Economy

a) Overview

Currently, USA ranked 1st in the nominal GDP Index and 2nd in the PPP
(Purchasing Power Party) GDP Index (IMF). It can be said that The US is the world's
largest economy with the most technologically powerful economy and its firms are at
or near the forefront in technological advances, especially in artificial intelligence,
computers, pharmaceuticals, and medical, aerospace, and military equipment.

b) GDP trends

Source: tradingeconomics.com U.S Bureau of Economics Analysis

The US economy grew by an annualized 6.4 percent in the first quarter,

following a 4.3 percent expansion in the previous three-month period and slightly
beating market expectations of 6.1 percent, the advance estimate showed. Activity and

19
demand consolidated their recovery from last year's steep contraction, helped by
reopening efforts amid an acceleration in the pace of COVID-19 vaccinations and
continued government response related to the pandemic. Increases in personal
consumption expenditures (PCE), nonresidential fixed investment, federal government
spending, residential fixed investment, and state and local government spending were
partly offset by decreases in private inventory investment and exports.

3. Regulatory

a) Legal system

In the United States, the law is derived from five sources: constitutional law,
statutory law, treaties, administrative regulations, and the common law (which
includes case law)

b) IP Protection

Keeping trade secrets is an essential thing for enterprises, especially for

businesses in the technology which America is excelled in. With a score of 8.050,
America ranked 13th globally in the international property right index.

c) Tax law

The United States of America has separate federal, state, and local
governments with taxes imposed at each of these levels. Taxes are levied on income,
payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as
various fees. Federal marginal tax rates vary from 10% to 37% of taxable income.
State and local tax rates vary widely by jurisdiction, from 0% to 13.30% of income .
Payroll taxes are imposed by the federal and all state governments at a combined rate
of 15.3%. Social Security tax applies only to the first $132,900 of wages in 2019 .

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4. Technology

a) Appropriability

America is a tight market so innovators can translate innovation into superior

returns, has time to access needed complementary assets, may license innovation to
gain generic assets, can commit $ to acquiring specialized or cospecialized CA’s
AND, has time to refine product concept before DDP.

b) Infrastructure

ICT Infrastructure also plays a pivotal role in the Technology Industry because
ICT infrastructure - and access to it - are essential prerequisites for benefiting from
ICTs. America has enough condition to help the company can take advantage and
maximize the productivity of their product

V. MODE OF ENTRY
Based on the company's size, marketing ability, previous exporting experience,
and business conditions in the US market as well as the nature of the product, we
decided that Watersilk company should enter the market using the direct exporting
mode of entry.

Direct exporting means that a producer or supplier directly sells its product to
the end user in an international market. An example of this would be directly selling
computer parts to a computer manufacturing plant. Direct exporting requires market
research to locate markets for the product, international distribution of the product,
creating a link to the consumers, and collections.

1. Advantages
Direct exports eliminate the export companies and most intermediaries,
allowing for direct marketing and maximum profit. The domestic producer or supplier
can send its own employees on sales calls to the end-market retailers and resellers, or
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to companies with a direct need for the product. Direct exports offer more control over
marketing, more protection for intellectual property and timelier feedback from
foreign markets.

2. Disadvantages
However, direct export disadvantages include the cost of creating an exporting
department—as well as the needs for educating employees about export
documentation, establishing shipping procedures and the ability to make and receive
international payments. Direct exports might be costly for companies lacking the
human resources for field sales and the financial resources to promote their products
internationally. Other concerns affecting direct exporting include drops in exchange
rates and unpredictable orders from foreign markets.

VI. 4Ps

1. Products

Currently, the company has marketed 3 types of Watersilk-branded toilet paper

products: 2-layer brown toilet paper 10 rolls per bag, 2-layer green toilet paper 10
rolls per bag and 2-layer toilet paper 12 rolls per bags with technical specifications:

Watersilk toilet paper technical specifications

Product Paper
Name weight/unit
No Unit(s Size Brightnes Quantitativ
) s e (g/m2) (kg)
(cm)
(ISO)

1 2-layer
brown toilet
Roll 2.100 86 17 ± 1 0.06
paper

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 2 2-layer
green toilet
Roll 2.400 86 17 ± 1 0.07
paper

3 2-layer toilet
paper
Roll 1.850 86 17 ± 1 0.04

With the Comfy brand, only 2-layer toilet paper 4 rolls per pack are available.

According to this technical data sheet, it can be inferred that the company's
toilet paper products are all manufactured with high technical standards. Despite being
the same quality of paper, but thanks to the size and quantity of packaging, it has
diversified the product portfolio, giving consumers more choices, which means that
the company has the opportunity to have many customers. For toilet paper products,
when the quality of the paper is almost the same and do not have much impact, the
product packaging factor plays a very important role. Therefore, reasonable packaging
and creativity are deciding factors that create great competitiveness for the company.
The company has managed to achieve this with the help of the compactness of 2-layer
12 rolls of toilet paper. Currently, this is still the most popular and most consumed
product in Tissue Song Duong's toilet paper catalogue.

Product packaging design: Currently, the company still has to hire outside
companies in this regard. However, the packaging of some products is not really
suitable and therefore, cannot attract many customers.

2. Price

The company sets product prices based on the competitiveness of said products
compared to similar quality products in the market. Create a competitive price
advantage. Specifically:

- Wastersilk brand 2-layer brown toilet paper cost $0.3

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 - Wastersilk brand 2-layer green toilet paper cost $0.32

- Wastersilk brand 2-layer 12-roll toilet paper cost $0.12

- Comfy 2-layer 4-roll toilet paper cost: $0.12.

This is a competitive price if compared to similar quality toilet paper products

on the market. Especially the two brands of toilet paper Broadwalk Bathroom and
Greenforest which is being consumed the most in Hanoi market. Wastersilk toilet
paper products with the same weight have a higher price at an average $0.1 compared
to Greenforest, and $0.12 lower than Broadwalk Bathroom. However, price
competition in markets like the USA when price is not the most important factor
affecting the decision to buy a product will not necessarily be the most effective
competitive weapon.

3. Place

Nowadays, the company is still in the process of completing its distribution

channel. With the motto "Anytime - Anywhere", the company is currently using 2
channels: direct sales and distributors. Compared to the competitors ’channels, the
company's channel has no competitive edge. Moreover, it is very weak. This is
considered the weakest point of the 4p. Specifically:

- Distributor channel: Currently, in the USA, the channel is established, divided

and managed by administrative area.

Distribution channel for toilet paper products of Song

Duong Tissue Paper Company diagram

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 Currently, this is still the company’s main channel, 80% of the company's
revenue is generated through this channel. Normally, each tier 1 agent will be
responsible for 1 state. Specifically, the operation of the distribution channel will be
described as follows:

The Marketing Department of Song Duong Tissue Paper Company has a team
of marketing staff in charge of sales. Each of them is responsible for managing from
20 to 30 stores in the area. In addition, the market department has a dedicated delivery
team. Due to the nature of the company that will transport goods to the agent, it is
necessary to have that delivery team.

Each company's market staff is responsible for selling goods at each of the
main roads that have been assigned in the plan. They notify the current dealer in the
area to have the goods shipped to those retail stores. The company's delivery team is
only responsible for delivering to dealers, not to retail stores.

The company only manages its channel to tier 1 agents, the price policy is only
set up for distributors and does not manage the selling price to the final consumer. For
tier 1 agents, in addition to the price discount policy, the company has market support
policy such as: Having cars to transport goods to the warehouse for the agents - this
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cost is borne by the company, appointing staff to helps agents to find and expand
market in the area they manage, deferring payment for distributors that can achieve
the orders required by the company at different times, etc.

4. Promotion

When the brand "Wastersilk" first launched on the market, the communication
steps were carried out professionally and methodically through the consultancy of
Hoang Gia Market Solutions Inc.. Broadcast regularly at the beginning of prime time
on TV, creating a good impression on viewers. Thanks to that, the brand was quickly
known by consumers. Currently, the company is cooperating with media company
Prosco to build PR programs to promote the new Comfy brand.

Every year the company participates in prestigious fairs such as: Vietnam High
Quality Goods Fair, Spring Fair, Vietnam Trade Fair - WTO, etc., with the aim of
introducing products to a wide range of consumers as well as to confirm the credibility
of the product.

Advertising in newspapers and magazines is also a way to make contact with

customers in the US

PR activities are also held regularly, mainly giving promotional gifts at

supermarkets and large trade centers to promote the brand and introduce new
products. . These activities are organized very professionally with the participation of
companies specializing in organizing external events. However, the cost of these
activities is by no mean small.

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"TEMPORARY TAXES TO FUND EDUCATION. GUARANTEED LOCAL

PUBLIC SAFETY FUNDING. INITIATIVE CONSTITUTIONAL AMENDMENT"
(PDF). Vig.cdn.sos.ca.gov/. 2013-04-05.

https://vig.cdn.sos.ca.gov/2012/general/pdf/30-title-summ-analysis.pdf

"Social Security Wage Base for 2019 Announced". www.ad (Trading Economics,
n.d.)p.com. 2015-06-30)

(Paul Bergman and Sara J. Berman-Barrett, Represent Yourself in Court: How to

Prepare & Try a Winning Case, 6th ed. (Berkeley: Nolo, 2008),)

https://www.statista.com/outlook/cmo/tissue-hygiene-paper/toilet-paper/united-states

Which country imports the Most Toilet paper in the world? (2020)
https://www.indexbox.io/blog/which-country-imports-the-most-toilet-paper-in-the-
world/
Paper; toilet paper exports by country in 2018
https://wits.worldbank.org/trade/comtrade/en/country/All/year/2018/tradeflow/Exports
/partner/WLD/product/481810
Paper; toilet paper imports by country in 2018
https://wits.worldbank.org/trade/comtrade/en/country/ALL/year/2018/tradeflow/Impor
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(Trading Economics, n.d.) Countries Indicators. Trading Economics.
https://tradingeconomics.com/
The Global Economy. (n.d.). Compare Countries. The Global Economy.
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Fragile States Index https://fragilestatesindex.org/data/
Global Terrorism Index 2020 https://visionofhumanity.org/wp-
content/uploads/2020/11/GTI-2020-web-1.pdf

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International Property Rights Index
https://www.internationalpropertyrightsindex.org/countries

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