ANALYSE MARKETING MIX 7p’s STRATEGY OF VIETNAM AIRLINES IN VIETNAM MARKET

MINISTER OF FINANCE UNIVERSITY OF FINANCE – MARKETING � GROUP ASSIGNMENT FIRST SEMESTER, 2022 SERVICES MARKETING Class code: 2121702052701 ANALYSE MARKETING MIX 7P’S STRATEGY OF VIETNAM AIRLINES IN VIETNAM MARKET Instructor: Mr Dang Huynh Phuong 0 Ho Chi Minh City – 2022 0 MINISTER OF FINANCE UNIVERSITY OF FINANCE – MARKETING - � - GROUP ASSIGNMENT FIRST SEMESTER, 2022 SERVICES MARKETING Class code: 2121702052701 ANALYSE MARKETING MIX 7P’S STRATEGY OF VIETNAM AIRLINES IN VIETNAM MARKET Instructor: Mr Dang Huynh Phuong Student name: Le Dinh Phuong Khanh Luong Ai Lien Vo Dao Phuong Mai Nguyen Nhu Ngoc Lam Gia Phu Ho Chi Minh City – 2022 0 MỤC LỤC 0 DANH MỤC HÌNH 0 CHỮ VIẾT TẮT USD United States Dollar COVID – 19 Coronavirus disease 2019 VND Viet Nam Dong JSC Joint Stock Company No Number TTg Thu Tuong TV Television VTV Vietnam Television B2C Business to Customer 0 CHAPTER INTRODUCTION 1.1 About Business Name in Vietnamese: Tổng Công ty Hàng không Việt Nam - CTCP Name in English: Vietnam Airliness JSC Name in short: Vietnam Airliness Date of establishment: May 27th, 1995 Address: No 200 Nguyen Son, Bo De Ward, Long Bien District, Hanoi Telephone number: (+84.24) 3827 2289 | Fax: (+84.24) 3872 2375 Website: www.vietnamairlines.com Email: nhadautu@vietnamairlines.com Field of activities: Aviation & Finance Image 1.1 Logo of Vietnam Airliness 1.2 Business Sectors - Air passenger transportation (air transport services for passengers), air cargo transportation (transportation of luggage, cargo, parcels, postal items, mails) - Management consulting (investment, capital management of direct investment in production and business; foreign investment; business 0 purchase and sale; capital contribution to purchase shares or capital transfer) - Direct support services for air transportation - Manufacturing of measuring, testing, navigating, and controlling equipment, such as spare parts, supplies, technical equipment and other aviation industry components, provision of technical services and spare parts to domestic and international airlines 1.3 Establishment & Development History The history of Vietnam Airliness began in January 1956, when the Civil Aviation Administration was established by the Government that marked the birth of the civil aviation industry in Vietnam At that time, the fleet was very small, with propeller aircraft: IL 14, AN 2, Aero 45, etc The first domestic flight was opened in September 1956 April 1993, Vietnam Airlines was officially established as a large-scale business unit of the state (then called Vietnam Airliness) On May 27th, 1995, Vietnam Airliness Corporation was incorporated - following Decision No 328/TTg by the Prime Minister and merging 20 enterprises in the aviation industry with Vietnam Airlines as the core entity Throughout 20 years of development, Vietnam Airliness Corporation has made an important contribution to the development of Vietnam's civil aviation industry as well as made a great contribution to economic development, society, industrialization, and modernization of the country (Appendix contains Vietnam Airliness’ development history of each milestone) 1.4 Vision & Mission - Uphold the No position as Vietnam’s aviation group leader - Vietnam Airlines to become a leading Asian airline of customer’s choice and be the main force transportation of Vietnam as a flag carrier 0 - Provide diverse and high-quality air transport up to customers’ expectations - Create a civilized and professional working environment with various opportunities for career development for employees - Run effective business operation, ensure sustainable benefits for shareholders « Toward the future: A modern carrier with an internationally recognizable brand characterized by Vietnamese traditional culture Throughout 20 years of development at a double-digit annual growth rate, Vietnam Airliness has spearheaded Vietnam's aviation market - one of the fastest-growing domestic markets in the world As a modern airline with a brand widely known for its distinct cultural identity, Vietnam Airlines aims to achieve 5-star status and become a major airline in Asia 1.5 Hightlight Achievement « 2016: Ranked as one of the World's Most Improved Airlines by Skytrax « 2016: Asia's Leading Cultural Airline and Asia's Leading Airline - Economy Class by World Travel Awards 2016 « Top largest carriers South East Asia in terms of passengers transported « 20 years of safety record - no fatal accidents since 1997 « 2017: CAPA Asia Pacific Airline of the Year « 2017: Skytrax ranked Vietnam Airliness as a 4-star airline for the second year in a row « 2018: one of winners of the 2018 TripAdvisor Travelers’ Choice awards for Airlines for Asia « 2018: Skytrax ranked Vietnam Airliness as a 4-star airline for the third year in a row 0 « 2018: APEX (Airline Passenger Experience Association) awarded Vietnam Airliness with Four-Star Official Airline Ratings « 2018: Vietnam Airliness and Jetstar Pacific are awarded the highest sevenstar safety rating from the world’s only safety and product rating agency AirlineRatings.com « 2018: World's Leading Cultural Airline and World's Leading Airline Premium Economy Class by World Travel Awards 2018 0 CHAPTER MARKETING MIX (7Ps) 0 4.1 Product 4.1.1 Core Product: Services of transporting goods and people by air domestically and internationally Vietnam Airlines has up to 33 direct shipping locations across continents of Asia, Europe, and Australia - Domestic Market: By 2020, operating up to 64 domestic routes and 22 airports in regions - International Market: Currently, Vietnam Airlines has operated 64 routes to 18 countries, including 33 destinations By the end of March 3/2021 due to the impact of COVID - 19 disease, most flight routes were suspended Image 4.6 4.1.2 Supplementary Services:  Information: Vietnam Airlines provides flight itineraries, prices, vouchers, and how to apply vouchers Even information about hotels in customer destinations can also refer to the Website and App (Cooperate to Booking.com) Not only that, but Vietnam Airlines also brings information like how to complete the procedures, ticket information has been put and the status of active flights to help our customers' relatives track throughout the flight 0  Order - Taking: o Applications: - Vietnam Airlines also designed the application so that users can easily access to book tickets online, pay online, hunt for cheap airfare deals, and redeem vouchers to receive gifts more easily - Vietnam Airlines after-sales service for customers is quite good through providing regular customer service, providing a number of service incentives on Vietnam Airlines flights, or even other members of the same members in Sky Teams - Besides, customers are members, when flying will be accumulated equivalent to flight 0miles and converted into bonus points, then used to change valuable rewards such as upgrade fare, upgrade checked baggage, use the business class lounge, etc Besides, there are countless attractive after-sales services for customer gratitude o Order Entry: - Online flight booking service - The online check-in service to somewhat limit the gathering at the check-in counter during the COVID-19 epidemic has not shown any signs of stopping o Reservations and Check-in: - Services connected with means of transport: assigning member units to pick up and drop off passengers from the gathering location to the airport or vice versa Besides, customers can also hire - 7seater cars to conveniently for moving after service 0 - Links with hotel booking apps, to serve customers who travel or work far away to find accommodation Typically collaborating with Booking.com  Billing: Customers can get information about fares of different classes easily through the App or website of Vietnam Airlines On the media channels, fares that are often publicized, run attractive discount deals Besides, Vietnam Airlines still has direct fare counters at the airport, where ticket prices are also provided before purchasing Fares are also sold via the call center and here customers can also get specific ticket prices and related information  Payment: Many customers want fast payment, and understanding this, Vietnam Airlines has actively linked with different payment methods to create convenience for customers, support payment by credit card, EBanking, or other applications/wallets to pay for transactions at the website, App, and even at counters  Consultation: Vietnam Airlines officially develops ticket booking service through the customer care call center and card payment In addition, Vietnam Airlines has a customer consulting service that always accepts inquiries and is ready to advise any customer who has questions about Vietnam Airlines's services, via: - Contacts Center for calls within Vietnam (24/7): 1900 1100 0 - For Lotusmiles members: 1900 1800 - For calls from outside Vietnam (24/7): +84 24 3820320 - Email: Telesales@vietnamairlines.com  Hospitality: The quality of Vietnam Airlines service is usually highly appreciated Facilities are usually guaranteed as well as the attitude of the 0 attendants is extremely standard The delay time of Vietnam Airlines is often assessed to be less than that of competitors The waiting room is also extremely luxurious with comfortable and clean seats and chairs If the customer buys the business ticket, the more exciting privileges are worth mentioning such as serving food, drinking water, the lounge is much more luxurious Moreover, passengers will be served a welcome drink in either premium economy or business class Depending on the class of seats that customers own, Vietnam Airlines also provides different services  Safekeeping: Vietnam Airlines customers can rest assured to enjoy their flight service because Vietnam Airlines will ensure the safest flight with a team of highly qualified pilots who have practiced and practiced through many hours of flight The experienced flight attendants constantly remind customers to ensure safety during the flight Besides, Vietnam Airlines also provides a comprehensive travel insurance service for customers on domestic and international flights - TripCARE 4.2 Place 4.2.1 Information and Promotion Flow Through partners such as Traveloka, Booking, Agoda, etc., social networking platforms such as Tik Tok, Instagram, Facebook and on its own website, fanpage, Vietnam Airlines builds its information and promotion flow to help customers reach it in the most effective way In addition, the promotion flow of Vietnam Airliness also includes out-of-home advertising to serve outside promotion strategies 4.2.2 Negotiation Flow In order to ensure the quality of their services, Vietnam Airlines’s distribution facilities and members of the distribution channel are subject to strict control on 0 product quality, price, quality of service, etc which are clearly specified in the contract terms However, agents and partners can still be creative in terms of the structure or layout of the airport to suit the local consumer culture and brand values In addition, in terms of ticket prices, Vietnam Airlines also controls price fluctuations between its agents At the same time, It also clearly stipulates the rights and conditions of refunding/exchanging tickets customers 0 when buying tickets online or 4.2.3 Product Flow  Core Service In Vietnam, Vietnam Airlines which has affiliate units and 25 branches is operating in 21 provinces and cities Despite such a large air route network, Vietnam Airlines uses an exclusive distribution strategy to build its distribution channel to ensure its ability to maintain the value of the national airline brand  Supplementary Service Vietnam Airlines also focuses on digital transformation, implementing the "digitization" of its distribution channel For instance, in projects such as improving website infrastructure, mobile application platforms, and especially automating the customer care cycle VN promotes the "digitization" of its ancillary services to help customers always have the best, safest, and most convenient experience Vietnam Airlines’s information or flights is not only updated at ticket offices and airports, but also on the website, fanpage, and app in a specific and clear way to help customers update information easily The procedures for booking tickets, buying tickets, insurance policies, etc are also optimized by Vietnam Airlines on its website Especially, Vietnam Airlines also cooperates with famous travel sites such as Traveloka, Booking, Agoda, etc both to help customers access their 0 flights more easily and to support the online payment and online booking process In general, Vietnam Airlines has been promoting the automation cycle and opening the distribution channel for ancillary services as well as expanding the diversity of core product distribution channels More and more different booking locations are opening both online and offline 4.3 Price 4.3.1 Customer-Driven Pricing Vietnam Airlines prices its services according to the needs of customers, dividing prices by fare type for each group of customers: According to different fair types, including main types: Business, Premium Economy and Economy Vietnam Airlines offers different prices corresponding to accompanying services to ensure satisfaction according to each desire and need of each selected customer 0 0 0 0 0 0 ... Chi Minh City – 2022 0 MINISTER OF FINANCE UNIVERSITY OF FINANCE – MARKETING - � - GROUP ASSIGNMENT FIRST SEMESTER, 2022 SERVICES MARKETING Class code: 2121702052701 ANALYSE MARKETING MIX. .. (+84.24) 3872 2375 Website: www.vietnamairlines.com Email: nhadautu@vietnamairlines.com Field of activities: Aviation & Finance Image 1.1 Logo of Vietnam Airliness 1.2 Business Sectors - Air passenger... April 1993, Vietnam Airlines was officially established as a large-scale business unit of the state (then called Vietnam Airliness) On May 27th, 1995, Vietnam Airliness Corporation was incorporated