VIETINBANKS SERVICE QUALITY EVALUATION AND PROPOSED MARKETING STRATEGY TO INCREASE REVENUE BY 30% IN 2021

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND LAW VIETINBANK'S SERVICE QUALITY EVALUATION AND PROPOSED MARKETING STRATEGY TO INCREASE REVENUE BY 30% IN 2021 Subject: Service Marketing Lecturer: Nguyen Tran Cam Linh Members: Phung Thi My Duyen K184101322 Dinh Kim Duong K184101325 Ho Mai Linh K184101332 Le Thuy Trang K194101489 Le Thi Thanh Truc K194101493 Ho Chi Minh city – 2021 Contents RATIONALE CHAPTER 1: INTRODUCTION History, vision and mission Logo and slogan 3 Business activities 4 Domestic competitors CHAPTER 2: FLOWER OF VIETINBANK’S SERVICE Facilitating services 1.1 Information 1.2 Order - taking 10 1.2.1 Application 10 1.2.2 Order entry 10 1.2.3 Check-in 10 1.3 Payment 10 1.3.1 Self - service 10 1.3.2 Automatic Deduction from Financial Deposits 11 1.4 Billing 11 Enhancing elements 11 2.1 Consultation 11 2.2 Hospitality 11 2.3 Safekeeping 12 2.4 Exceptions 12 CHAPTER 3: DIMENSIONS AND GAPS OF VIETINBANK QUALITY ANALYSIS 12 Dimensions of Vietinbank Quality analysis 12 1.1 Tangible 12 1.2 Reliability 13 1.3 Responsiveness 14 1.4 Assurance 16 1.5 Empathy 17 GAPs of Vietinbank Quality analysis 17 2.1 GAP 1: The Knowledge Gap 17 2.2 GAP 2: The Policy Gap 19 2.3 Gap 3: Delivery Gap 20 2.4 Gap 4: The Communication Gap 21 2.5 GAP 5: The Perception Gap 22 2.6 GAP 6: The Service Gap 22 CHAPTER 4: MEASURES OF VIETINBANK QUALITY 23 Hard measure 23 Soft measure 24 CHAPTER 5: MARKETING STRATEGIES FOR VIETINBANK (7Ps) 24 Product 24 Price 26 Place 27 People 29 Process 30 5.1 Deposit service 31 5.2 Life insurance service 33 Physical 34 Promotion 35 7.1 Overview plan, Channel, Budget 36 7.2 Object 37 7.3 Target Customer 37 7.4 CONCEPT 38 7.4.1 Background 38 7.4.2 Insight 38 7.4.3 Big Idea 39 CONCLUSION 45 REFERENCES 46 RATIONALE In the context of industrial revolution 4.0, promoting payment for public services via banks is an inevitable trend and consistent with the Government's policy The via-bank payment process for public services not only brings benefits to customers, banks, and public service providers but also has a positive meaning to the social community Specifically, we will limit a large amount of cash in circulation, increase the cash flow to support the economy, and promote the creation of innovative companies, startups in the payment field CHAPTER 1: INTRODUCTION History, vision and mission After being separated from the State Bank of VietNam in 1988, Vietinbank was established and became a state-owned bank Vietinbank was aimed to be a modern, effective and multipurpose bank in Vietnam and to be one of the top 20 strongest banks in the Asia-Pacific region by 2030 Its ultimate goal is to be a pioneer in the development of the country in the banking industry based on resulting in the best value for customers, shareholders, and wage earners Vietinbank is not only concerned about efficiency, security and sustainability but it also focuses on loyalty, innovation discipline and prosperity of customers, which is assumed as the most crucial success of it Logo and slogan The word “Vietinbank” is highlighted by a simple font and modern color Blue means freshness, stableness and absolute faith towards development of the bank in the future The logo image is stylized from a historical cash coin of Vietnam and is viewed as the combination of tradition and modernity in the banking and finance sector The color red and blue symbolizes the harmony of yin and yang Two thirds of the above coin painted blue represents the sky, while the rest colored blue represents firmness of the soil The meaning of the slogan “Improving the values of life” refers to a positive attitude of enhancing material and mental wellbeing as well as prosperity and accomplishment of its customers Business activities There are three main services and products dedicated to individual customers: • Deposits: including many different types such as term and demand deposits, accumulated savings, online savings, term savings with super floating rates • Loans: containing consumption loans (for purchase of houses, cars, study abroad) and business loans (for normal production, retail stores, farm owners) • Cards: Prepaid card, Interior and International Debit (MasterCard Debit, Visa Debit) card, Interior and International Credit (MasterCard credit, Visa Credit) card And other services such as oreign currency trading, digital banking, insurance, etc 4 Domestic competitors Vietinbank, Vietcombank and BIDV have grabbed the market share and been known as top biggest state-owned commercial banks in Vietnam Vietcombank was established in 1963 from the Foreign Exchange Bureau (of the State Bank of Vietnam) and it has been chosen as “The Best Banking in Vietnam” by prestigious organizations in the world for years (2) and ranked among 500 strongest banks in the Asia- Pacific in 2019 Meanwhile, BIDV was founded in 1957 under the initial name of Bank for Construction of Vietnam and it is the biggest bank of Vietnam for property scale in Vietnam in 2019 The table below describes strengths and weaknesses of both these banks: Vietinbank • Brand and reputation BIDV • Be a powerful • Has a large have been and prestigious network with continuously affirmed bank with high nearly 190 with prestigious reliability branches and awards recognized by • Recieves special bank agencies in prestigious support and organizations in the priorities from domestic and State Bank in stable amount of international financial Government capital providing markets projects such as enough demand power system of credit to clients leadership of the and and efficiency of executive board helps transportation capital use planning suitable and infrastructure innovative policy into • Card products • Experienced Vietnam • Has plentiful and • Supplies a variable product enormous are extremely system with development from now diversified that main product to future are able to satisfy lines and most of the proprietary requirements of trading product • Has firm and great customers, lines (currency, capital itselves especially foreign currency, • Polices, interests and Vietcombank is bond) benefits satisfy needs the only bank in of customers Vietnam business activities accepting have been • Cares about risk Strengths Vietcombank management mission • Most of the firm's payment of computerized by common oversea the SIBS system, cards such as allowing Visa, UniPay, implementing JCB, etc online • Has over 43.000 transactions and departments for developing new card acceptance distribution and over 2.400 channels such as ATM points Homebanking, nationwide as ATM, POS, etc well as large agent relationships with nearly 2.000 banks and financial institutions worldwide • Product lines have Weaknesses • Account safety • Organizational some similarities with and security structure is still the others, although problems still not suitable services are exist that may according to diversified but affect personal modern monotonous and information and commercial bank uninteresting property of custom yet • Human resources: customers Lack of well- • Cumbersome apparatus of the • Has an indistinct business culture, thus it lacks trained/ professional firm does not encouragement employees bring into of • Customer strategies, optimal activities • innovative business strategies and outcome; and the thought and marketing strategies connection outlook are not outstanding between enough to enhance the branches and image of the brand agencies are not and market share consistent • Services are not • Limitations in risk management • Shortage of effective marketing interesting campaigns and enough to attract activities a majority of customers CHAPTER 2: FLOWER OF VIETINBANK’S SERVICE Facilitating services 1.1 Information Each counter/transaction desk has a signboard that is properly named for its function For example, if a customer wants to deposit money into his or her bank account, the customer will go to the counter named “Quầy thu - chi tiền mặt” Thanks to this, customers can go to the right counter and not waste their time Because there is a lot of information about cards and service prices, loan and insurance packages, banks cannot put a price list of all services in the sign Instead, this information will be provided directly by the employees In addition, securities information is provided through the electronic board to ensure timely updates At the transaction desk, the bank always puts up banners about the bank's new programs For instance, some programs such as "Gói vay 0đ", "Tích lũy dài lâu, giá trị bền sâu", "Vay ưu đãi, lãi tri ân", For customers to arrive on time for the bank's operation, the bank places its banner of working hours in front of the bank gate and the transaction room ... three main services and products dedicated to individual customers: • Deposits: including many different types such as term and demand deposits, accumulated savings, online savings, term savings... comfortable using the service without worrying too much about information theft and money 2.4 Exceptions For customer complaints and handling issues, Vietinbank uses online complaints via its... city (Binh Phuoc province) as an example In 2019, my mom took me to Vietinbank to get my atm card pin back I saw a baby with his mother sitting in the waiting row, crying very loudly The baby's