A study on connected marketing and the case of FPT corporations project vicongdong = nghiên cứu về marketing kết nối và sự áp dụng tại dự án vì cộng động của tập đoàn FPT luận văn ths kinh doanh và quản lý

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS TRAN THI CHIEN A STUDY ON CONNECTED MARKETING AND THE CASE OF FPT CORPORATION’S PROJECT VICONGDONG Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisors: Dr TRAN DOAN KIM Hanoi – 2010 TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENTS vi LIST OF ABBREVIATIONS viii LIST OF TABLES ix LIST OF FIGURES ix INTRODUCTION CHAPTER 1: LITERATURE REVIEW– CONNECTED MARKETING 1.1Definition: Connected Marketing 1.1.1 Marketing 1.1.2 Connected Marketing 1.2 Types of Connected Marketing 1.2.1 Word of mouth marketing 1.2.2 Buzz marketing 12 1.2.3 Viral marketing 15 1.3The power of Connected marketing in digital age 18 1.3.1 Widely connection between the company/organization and customer 18 1.3.2 Building customer’s trust 18 1.3.3 Cutting marketing cost 19 1.3.4 Measuring communication result 20 1.4Marketing model 20 1.4.1 Ways of transferring information 20 1.4.2 Marketing model 22 1.5The process to practice a Connected Marketing Campaign .24 1.5.1 Customer investigation and choosing Opinion leaders (OL) 24 1.5.2 Creating transferred messages 27 1.5.3 Seeding trials 28 1.5.4 Spreading a Connected Marketing Campaign 32 vi 1.5.4.1 Transferring information principles 32 1.5.4.2 Method of transferring information 33 1.6 Measurement of transferring information 37 CHAPTER 2: EXTERNAL ENVIRONMENT ANALYSIS AND CONNECTED MARKETING ACTIVITY OF VICONGDONG 39 2.1External environment analysis 39 2.1.1 Conditions for the application of Connected Marketing activity in Vietnam .39 2.1.2 Analysis on charity activities in Vietnam 50 2.2Connected Marketing activity at Vicongdong 53 2.2.1 Introduction about Vicongdong project 53 2.2.2 Condition for Vicongdong doing Connected Marketing 60 2.2.3 Analysis on Connected Marketing activities in Vicongdong project .62 2.3 Some comments on the efficiency of Connected Marketing Campaign at Vicongdong project 85 CHAPTER 3: RECOMMENDATIONS 91 3.1 Developing direction of business and Marketing strategy of Visky – FPT .91 3.2 Developing new marketing solution 93 3.3Some other proposals 106 CONCLUSION 107 REFERENCES 109 vi LIST OF ABBREVIATIONS AMA : American Marketing Association C2C : Customer-to-Customer CEO : Chief Executive Officer CPC : Cost Per Click CSR : Corporate Social Responsibility CTR : Click Through Ratio G.A : Google Analytics NGO : Non-Governmental Organization OL : Opinion leader OPA : Online Publisher Association WOM : Word of Mouth WOMMA : Word of Mouth Marketing Association LIST OF TABLES Table 2.1: Statistics on Vicongdong.vn Page 90 LIST OF FIGURES Figure 1.1: An example of a social network diagram Figure 1.2: Ordering Icecards process Source: Icemedia Company Figure 1.3: The comparison between Buzz marketing and Traditional Page Page 10 Page 13 marketing Figure 1.4: Ways of transferring and receiving information before Page 21 and now Figure 1.5: Traditional marketing model Page 22 Figure 1.6: The modern marketing model Page 24 Figure 1.5: Models of media influence Page 33 Figure 2.1: Internet users in Vietnam during 2004 – 2009 Page 40 Figure 2.2: Age of Internet user vs total population Page 41 Figure 2.3: Occupation of Internet user Page 42 Figure 2.4: Online activities done in the past Page 43 Figure 2.5: Frequency of Internet usage by city Page 44 Figure 2.6: Website visited in weeks from October to November Page 45 Figure 2.7: Website visited in weeks from October to November Page 45 by classifying Figure 2.8: Website visited in weeks from October to November Page 46 by age Figure 2.9: Attitudes toward social connection Figure 2.10: Websites used for social online network Figure 2.11: Favorite websites for information gathering Figure 2.12: Favorite websites for entertainment Figure 2.13: Favorite websites for communication Figure 2.14: Organization model of Visky FPT Figure 2.15: Vicongdong’s logo Figure 2.16: Logo of Blue Ribbon Employer Council Figure 2.17: Message for communication campaign in “Mầm Nhân Page 46 Page 47 Page 48 Page 48 Page 48 Page 54 Page 56 Page 57 Page 58 2008” contest Figure 2.18: Logo of “Chim én 2009” Figure 2.19: Logo of “Ngày cuối tuần ấm áp” Figure 2.20: Logo of the contest “ Viết cộng đồng” Figure 2.21: Logo of the contest: “Mầm nhân ái” Figure: 2.22: Communication for the Award “Chim én” Figure 2.23: Alexa statistics on vicongdong.vn Page 59 Page 59 Page 59 Page 67 Page 67 Page 84 Figure 2.24: Alexa statistics – Up stream sites of Vicongdong.vn Page 84 Figure 2.25: Alexa statistics –Down stream sites of Vicongdong.vn Page 85 Figure 2.26: Alexa Statistic - Daily pageviews per user of Page 88 vicongdong.vn Figure 3.1: A sample of an ecard on Vithiep.vn Figure 3.2: Topology model - Source: Marketing Department, Visky Page 92 Page 96 FPT Figure 3.3: Fractural marketing at FPT Figure 3.4: Creating communication message Figure 3.5: An example of Google Analytics Figure 3.6: An example of Google Analytics using campaigns Figure 3.7a: A sample of the new marketing solution Figure 3.7b: A sample of a new campaign - Choose a cause Figure 3.8: A sample of a new campaign - Supporter chooses Page 97 Page 98 Page 103 Page 104 Page 104 Page 105 Page 105 Colgate as your sponsor Figure 3.9: A sample of a new campaign - On supporter’s profile Page 106 INTRODUCTION The problem Firstly, Vicongdong has no clear and long time marketing plan There are only some separate activities which have not related tightly to FPT Corporation Whereas FPT fund is a fund used to implement FPT’s corporate social responsibility (CSR) and Vicongdong plays the most important role to its CSR Secondly, Vicongdong.vn is only a website used Web technology 2.0 Its propagation or distribution may reach much more than geometrical progression It means that the connection will be certainly crucial Finally, FPT’s managers wish to create a result of much more than $ when they invest $ for donation (1.x effect) and no longer want to use traditional way to CSR However, the results that Vicongdong has harnessed have not shown the expectation There has not yet had any fundraising solution Objectives The thesis has been much spent time on it with the objective of studying the theory of connected marketing and then study the case of Vicongdong in marketing field Vicongdong is a for-runner project of Visky –FPT in plemeting CSR So the author would like to study how it can contribute the most important part in FPT’s CSR Similarly, other objective is to study whether connected marketing theory is suitable for Vicongdong’s marketing plan and how to apply The last one is in the case of prospect, the author try to build a marketing plan for Vicongdong based on connected marketing theory Scope In the name of field, the thesis belongs to marketing topic which is theory of connected marketing In the name of space, the thesis studies the real status and problem within the project Vicongdong.vn of FPT Corporation Time for studying the content of thesis is about one year from the establishment of the project Data source: The thesis takes many secondary data from FPT Corporation, books, internet The primary data is directly collected from the website because the high interactive factors of web 2.0 The author has many advantages in collecting this kind of data which is online comment of website’s member stead of implementing a small survey Besides that, the data has been collected by interviewing some important people such as head of the project, Mr Do Huu Hung, marketing expert of some companies such as ETC center, Sunhouse company, FPT Corporation, members of the website… Method/ Approach The method of the thesis includes interviewing experts, theory access from executive books, Internet search, observation Research question Why the project hasn’t had a clear marketing plan? How Vicongdong can help FPT Corporation doing CSR and then help FPT build great image? How will connected marketing theory be more suitable for building marketing plan for Vicongdong? Which disadvantages will affect the feasibility of marketing plan for Vicongdong? Significance The thesis seems to be necessary for Vicongdong at this period and it may be reference for other companies want to CSR most effectively Limitation Connected marketing theory is relatively new and incipient in Vietnam so it requires some different factors The access to data source may be incorrect and lack of information It requires some certain knowledge on donation and community activities Expected result The author respect it to apply connected marketing theory on the case of Vicongdong and build a marketing plan based on this theory Follow up potential In the case of approval by the project, the author would like to study deeply to apply in reality with more information and time It will be basic for studying theory “built to last” for FPT Corporation The author also want to study an adjusted theory suitable for Vietnamese companies Content The content includes three parts: Chapter 1: Literature review – Connected marketing Chapter 2: External environment analysis and connected marketing activity of Vicongdong Chapter 3: Recommendations CHAPTER 1: LITERATURE REVIEW– CONNECTED MARKETING Chapter I of the thesis will explore the literature of a recently marketing term – connected marketing including the definition, types of connected marketing and how to process a connected marketing campaign 1.1 Definition: Connected Marketing 1.1.1 Marketing The term of marketing is very popular to all of organizations and businesses It relates to a crucial industry that affects on many other activities and plays a huge role for the development of a business or non-business unit Especially, it has a special effect on the image of an organization However, up to now there has no consolidated point of view about this concept According to American Association – AMA, “Marketing is a business activity which drives products and service from the manufacturer to customer” Philip Kotler, a leading marketing expert said: “Marketing is to work with the market to exchange with the purpose of satisfying demand and need of people identifying and meeting human and social needs.” According to Peter Drucker, “the purpose of Marketing is not to promote consumption Its purpose is to realize and penetrate customer so thoroughly that goods or service will fill the right demand of customer and it will be consumed automatically” Therefore, in general, marketing is all activities of researching, recovering demand on goods or service of people and satisfying them best 1.1.2 Connected Marketing Nowadays, the development of information technology as well as digital technology has opened new trends in society It seems that the world is really flat as the theory about globalization of Thomas L Friedman, the author of an international bestselling book “The World is flat” Globalization also means all parts of the world have the similar concerns and the ability of connecting together Seeding trials Right product: Vicongdong can create the interactivity on the website by building a function of chatting, posting comment, writing blog for individuals/participants The individuals/organizations can create their own activities here but they will be warned within the for – community information not other spam information By this way, they will contribute their ability on crying for help for the difficult and create a friendly social network They can write messages, post video clip, music as their charity messages and spread to the other people by inviting them to go into the site or embed the site to the other websites and offline messages The product the author suggests here has to combine the sponsors’ benefit and the excitement for visitors on Vicongdong.vn Vicongdong.vn will list charity programs, for example: 10.000 clothes for poor students 10.000 hygiene boxes Warm clothes for school – “Mùa đông ấm” project Trolley for the handicapped Hanoi kids Stand up to cancer Bank book for poor women Others The visitors will sign in as member of the website by filling fully information including full name, address, identity, phone, email, password, country, city Then they will choose any sponsor that listed by images (brand names or advertising pictures) Members of the website, the supporters will be on the next step to see more about the sponsor Here, the sponsor can show the supporters their advertising images, famous songs or video clip, which depends on the sponsor and the content developing department of Vicongdong In addition, this advertising image or video clip will be inserted in supporters’ blog on the website vicongdong.vn, in other social channels that they embed in to share to their friends and community with message below - tagline, for example: “Vinaphone is helping me to raise money for children” Each charity program and a sponsor the supporter choose, the supporter will indirectly contribute an amount of money to the receiver and this amount the sponsor who gets benefit from advertising will pay (That is CPC – Cost per Click accounting for the sponsor) For example, when Nguyen Van A chooses HSB as sponsor for a program he enters named “Warm clothes for schools”, HSB will pay 1,000 VND for the program because HSB has committed that Of course, HSB’s brand name will be recognized through an advertising clip or beloved songs and will be spread to many online channels Vicongdong.vn can list many programs for fundraising However, to launch the strategy as seeding trial product, Vicongdong should choose one program in short time to activate the strategy, and then spread it For example: “90 days for fresh summer”, a program initialized by a voluntary group on vicongdong.vn This is a program crying for the consciousness of keeping environment fresh, in which charity groups of student from universities will participate to make the street clean, avoid traffic jam and organize entertainment for poor children in the street 90 days will be the time for the strategy; a clock will conversely count the time to the end When people take care of the program they will watch a flash/ video clip or article linked to the website vicongdong.vn and then they will see many other charity programs Right people: The opinion leader as suggested Mai Phuong Thuy will be the ambassador for the program We invite her to be image representative Some other OLs may be economist experts (E.g Mrs Pham Chi Lan), international experts (E.g experts from World Bank, WHO, KPMG …) and government officials We invite them as OLs who direct organizations to realize on CSR Their idea about charity activities on Vicongdong will help make a high appreciation from organizations for Vicongdong programs Beside that, charity groups’ leaders will be the first people to know the idea During the drawing idea process for the program, opinion leaders, some hot bloggers and other community leaders discuss together and making suggestion They also figured out the criteria of the program, meaning of the program, ways to execute and then posted on private blogs, schools’ forum, charity groups’ forum Right action 110 Before triggering off the program, there will be a round table including some famous experts with the topic on CSR; or an interview with a famous expert; or a conference; or a display on CSR activities of businesses Then, Vicongdong should invite OLs contribute idea to finalize the content of the program to be perfect and more feasible; the performance may be under online first and then offline meeting with the participation of voluntary group leaders They actually realize their importance in building the program because they have rights to say, contribute idea and find out the difficult question for themselves about fund raising Hence, they support the program and spread the information automatically These OLs of course will tell good things about Vicongdong’s programs to their peers on the community or before the press We can see that the Hawthorne effect will be created immediately The Hawthorne effect is that Vicongdong can choose OLs to be the active force to represent charity program via their friendly images, funny video clip and their blogs on the website including many interesting and private information to attract supporters Spreading the campaign The information about the strategy is transferred by many ways: offline messages, ecards (using e-card in website Vithiep.vn of Visky), Facebook, blog, forums (forums of voluntary groups of social networks with social activities topic), Pr articles on Dantri.com, Vnexpress.net, Vietnamnet.vn, Laodong.com.vn, Tienphong.com.vn , newspapers of FPT, music songs or banner on nhacso.net of FPT communication On the website of Vicongdong.vn, with each information (news, clip, flash or mp3 song …) we create sharing widgets such as Facebook, Twitter, Blog, Yahoo Message, Inviting friends … The visitor will choose the channel to spread the message Here are some spreading tools we can take: • Digital / electronic marketing tools • Video Clips • Emails • Ebooks • Links • Banners • E-Signatures • ViThiep Some community websites of Visky: http://violympic.vn/ http://www.vimua.com http://vicongdong.vn/ http://lienhoanamnhac.com/ http://vihd.vn/ViHD/ http://vitalk.vn/ http://vibeyeu.com/ http://vihuni.vn/ http://vimap.vn/ http://viphoto.vn/ http://www.vinaanh.com http://vimusic.vn Vicongdong should exchange banner with some famous websites such as ttvnol.com.vn, mp3.zing.vn, nhaccuatui (websites for young generation) and economic websites Finding more and more chances to promote the site, the success will be near in another day Measure the efficiency of the strategy: Although these programs are humanity ones, we should set the time to execution; for example: year or years; 90 days or 300 days; 10,000 pens for children In addition, we can measure the efficiency to track the change in different periods If we know the inefficiency and find out the reason, we will promote solutions to get better results Anything Vicongdong does, it should refer to the results, of course Visky FPT has provided a tool named Viad to measure and control the efficiency of Marketing Campaign Another tool can help is Adwords Google Analytics Google Analytics is a facility to track the website through indexes number of visits, average time on site, bounce rate, pages’ visit, % new visits, traffic sources (visitors come from what websites including direct traffics, referring sites, search engines) in a particular period Figure 3.5: An example of Google Analytics – [7] Google Analytics also helps us create marketing campaign by purchasing some adwords or key words Through campaigns, the author groups traffic sources from marketing activities, follow the results and then make the suitable adjustment Figure 3.6: An example of Google Analytics using campaigns [8] A sample of the new marketing solution BROWSE: PROGRAMS All Education Environment Health Hunger and Poverty Animals Arts & Culture Peace & Human Rights Warm clothes for school Total $ Raised: 14,300 Vitamin for children Total $ Raised: 1,000 Keep the environment Total $ Raised: 2,000 Education for the blind Total $ Raised: 9,000 SORT BY: Popular Amount Raised Alphabetical Newest Figure 3.7a: A sample of the new marketing solution (1) Picture and message here Education for the blind Photos Videos Thanks for helping us raise 100mil vnd to cover the costs associated with helping the blind to have educa Total supporters: Figure 3.7b: A sample of a new campaign - Choose a cause (2) Picking a sponsor, for example Colgate: Figure 3.8: A sample of a new campaign - Supporter chooses Colgate as your sponsor[35] 105 Figure 3.9a: A sample of a new campaign - On supporter’s profile [36] Figure 3.9b: A sample of a new campaign - On supporter’s profile [37] 3.3 Some other proposals Vicongdong is lacking professional marketing staff After leaving of hot blogger Demento who was very active and smart in communication, the marketing effort of Vicongdong has become weaker The marketing staff does not have had efficient marketing solution and has not had much online marketing method For each contest or award, it hires some part – time students from Institute of Press to hold event and write pr articles That is the difficulty of Vicongdong in building as well as implementing marketing campaigns Vicongdong should recruit high quality and professional marketing staff to undertake the role Vicongdong should revise previous programs such as “Chim én”, “Mầm nhân ái”, “Chúc phúc” They have both good point and disadvantage which has been commented much on the website vicongdong.vn These programs have created echo for Vicongdong and helped attract thousand of members So revising them is very essential for building a high quality charity/ voluntary website and 117 keep member on the website In addition, from such programs we can select which projects to add on the new strategy to cry for sponsorship There has been a comment on the website vicongdong.vn that it is so redundant and turbulent The visitor finds difficult to get the exact information they want and it seems to be flooded in information “forest” On the homepage, there are so many columns, so much information and some coincidences It needs to fix under better performance Using clip and flash will make the website more exciting and look like solid Vicongdong should insert sharing widget to help spread the news Up to now, on the website vicongdong.vn has no sharing links such as facebook, twitter, blog, yahoo messenger …, which are large online social networks Requesting the visitor to share the news is very essential to “viral” and helps promote the website Vicongdong should create a website verifies and verified Creating a site verified means Vicongdong will be verified by another independent organization If so, Vicongdong will be dependable and safe charity/ voluntary website and it will be easier to attract sponsor as well as member Creating a website verifies means that Vicongdong will be the evaluation authority to projects By that way, other charity groups get the sponsorship more easily However, Vicongdong should improve the process to get the legal permission from the Home Office to set up an NGO CONCLUSION “World is flat” Moreover, people connect together quickly and closely Internet, we say a new incomparable energy source, plays a very important role nowadays If mobile phone can connect people easily as slogan of Nokia – “Nokia connecting people”, Internet can more than that Internet has made everything changes Internet helps humankind understand each other, closer and closer Internet brings out new communication methods, new working styles, new relationships, and new fresh live styles Internet has effect on many industry, Marketing and Business cannot avoid this trend Marketing is no longer simply about trying to identify the 20% of your customers, who represent 80% of your revenue, then keeping this group loyal and trying to acquire more who fit their profile With connected marketing, the aim is to profile and recruit customers who represent the 10% of society that helps influence the majority of all purchasing decisions These influencers are not necessarily the customers who spend the most money with you, but they are the people who can help amplify and accelerate positive word of mouth about your brand In this thesis, we have harnessed some results: The basic theory: Connected marketing is a marketing term relating to new marketing techniques that “using word of mouth connections as marketing media to drive growth It covers three emerging techniques in marketing: viral marketing, buzz marketing and word of mouth marketing [54] The author also studied the Hawthorne effect and we know that people will increase their productivity, their contribution to the result when they are put in important roles and they have feeling of being respected Three main types of Connected Marketing includes viral, buzz and word of mouth marketing are analyzed in detail in this chapter In addition, the author represented the new transferring and receiving message model In chapter II: The author researched about the external environment, conditions for the developing of Connected Marketing The current situation of charity groups lacks of professional working style, management skills, vision and scopes The appearance of Vicongdong seems to fill the blank Although FPT uses Vicongdong to its corporate social responsibility, Vicongdong still has to work independently as a charity organization and an NGO in the future Vicongdong has more advantages of information technology and Visky –FPT’s business network in implementing its charity activities, connecting individuals and groups among charity community In chapter III: The direction of developing marketing activities of Visky, that Vicongdong belongs to, shows us connected marketing is prior choice Visky tends to develop and apply connected marketing in every website in the future and promotes a Pr Agency On the website Vicongdong.vn, the contest “Mầm nhân 2008”, the Award “Chim én 2009” and the program “Chúc phúc” are three first rockets for marketers to practice connected marketing After the connected marketing campaigns, Vicongdong has harnessed many results on click, impression, member, visitor, articles and number of comment It has helped Vicongdong become the number one site in voluntary/charity field In general, connected marketing has been applied in step - by -step successfully in Vicongdong It creates basics and experiences for marketers believe in their potential capacity when executing connected marketing in Vietnam market Finally, it is sure that the thesis cannot avoid errors and minor defects It may come from the disadvantages of being inexperienced and lack of practical test method The remark on Vicongdong.vn mainly bases on subjective point of view of the author In addition, it always remains a fact that the outsider is hard to access the secret development plan 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Marketing 1.1.1 Marketing The term of marketing is very popular to all of organizations and. .. Vicongdong? ??s marketing plan and how to apply The last one is in the case of prospect, the author try to build a marketing plan for Vicongdong based on connected marketing theory Scope In the name of field,