FINAL REPORT PROPOSED MARKETING STRATEGY FOR MOMO e WALLET SUBJECT MAKETING MANAMENT

UNIVERSITY OF UEH BUSINESS SCHOOL FACULTY OF INTERNATIONAL BUSINESS - MARKETING FINAL REPORT: PROPOSED MARKETING STRATEGY FOR MOMO E-WALLET SUBJECT: MAKETING MANAMENT Instructor: Dr Truong Hong Ngoc Class Code: MAR503113 Class - Grade: FTC01 - K46 Group participants: Đoàn Kiều Gia Khánh Nguyễn Phương Uyên Nguyễn Đức Trí Dũng Trần Minh Bảo Anh Ho Chi Minh City, December 2nd, 2022 UNIVERSITY OF UEH BUSINESS SCHOOL FACULTY OF INTERNATIONAL BUSINESS - MARKETING FINAL REPORT: PROPOSED MARKETING STRATEGY FOR MOMO E-WALLET SUBJECT: MAKETING MANAMENT Instructor: Dr Truong Hong Ngoc Class Code: MAR503113 Class - Grade: FTC01 - K46 Group participants: Đoàn Kiều Gia Khánh Nguyễn Phương Uyên Nguyễn Đức Trí Dũng Trần Minh Bảo Anh Ho Chi Minh City, December 2nd, 2022 No Student ID Name 31201025108 Nguyễn Đức Trí Dũng 31201025705 Trần Minh Bảo Anh 31201027082 Đoàn Kiều Gia Khánh 31201024693 Nguyễn Phương Uyên Email dungnguyen.31201025108@st.ueh edu.vn anhtran.31201025705@st.ueh.edu khanhdoan.31201027082@st.ueh.e du.vn uyennguyen.31201024693@st.ueh edu.vn Contribution Percentage 100% 100% 100% 100% Table of Contents I Summary II Introduction to MoMo 2.1 MoMo’s current marketing position 2.1.1 MoMo’s Points of Parity (POP): .5 2.1.2 MoMo's Points of Difference (POD): 2.1.3 Perceptual Map: .5 2.2 MoMo’s Marketing Mix 2.2.1 Product .6 2.2.2 Price 2.2.3 Place 2.2.4 Promotion III SWOT Analysis 3.1 Strengths 3.2 Weaknesses 11 3.3 Opportunities 11 3.4 Threats 12 IV Product Improvement Opportunities 15 4.1 Product support: 15 4.2 Brand value: 16 V Marketing Goal .16 VI Marketing Strategy 17 6.1 Target markets: .17 6.2 Distribution channel in product expansion strategy .19 6.3 Promotion - Integrated Marketing Communications - IMC 19 6.3.1 Communication target (WHY) 20 6.3.2 Target audience (WHO) 20 6.3.3 Choose effective communication channel (WHERE) 20 VII Marketing Plan Implementation 23 7.1 Campaign public impression .23 7.2 Marketing plan execution table 24 VIII Evaluation and Control .26 8.1 Performance standards and financial control 27 8.2 Supervision procedures 27 IX Appendix .27 X References .32 Table of Figures Figure MoMo's Perpeptual Map Figure MoMo's interface .28 Figure Digital Economies of ASEAN countries in 2020 28 Figure Digital Economy scenarios of Vietnam to 2025 29 Figure E-commerce revenue in Vietnam in 2021 .29 Figure Most popular mobile wallet brands Vietnam 2020 30 Figure Most used e-wallets Vietnam 2021 by genaration 30 Figure Competitive advantages of e-wallets in Vietnam 30 Figure Service fees when withdrawing money to bank accounts from MoMo 32 I Summary Building a brand to develop into a strong brand, leading in a field is the core issue, expressing the ambition of enterprises in production and business activities and competition in the market in the context of international and regional economic integration is increasingly extensive today Branding is the best way to create and reach out to customers' desires Established in 2007, M_service is one of the pioneers in the field of providing mobile payment solutions, with the desire to bring more value and convenience to people, M_service launched Momo e-wallet application, allowing users to access hundreds of different utilities on its application, contributing to promoting the trend of "cashless" With Momo’s position as the first e-wallet in Vietnam with the highest market share at 68%, along with awareness of up to 97%, this project aims at taking advantages of MoMo’s existing strengths to propose a marketing plan for the company; in order to attract new customers for Momo e-wallet as well as addressing its weaknesses and opportunities; help the target audience know about MoMo's brand and services by communicating activities to customers in the future This report not only reviews and evaluates the influencing factors, but also above all provides a base system, information as well as a specific strategy to help Momo accomplish the set goals Specific contents will be presented in the marketing plan mentioned below II Introduction to MoMo 2.1 MoMo’s current marketing position MoMo is a market leader in Vietnam for mobile e-wallet services at the point of transaction and payment platforms There are more than 4000 MoMo outlets that have opened in 54 provinces and cities around the country, allowing them to serve more than 23 million customers in distant locations These remarkable numbers show the company's vision to become a SuperApp with an all-in-one application With the desire to maintain its leading position and outperform competitors in the same category, MoMo products are optimized in every detail to meet the needs of customers, reducing the number of operations required when checking out MoMo has made its familiar features more special and different with the slogan "Transfer money - Instant MoMo," which is easy to remember and understand, leaving a strong impression on customers 2.1.1 MoMo’s Points of Parity (POP):  MoMo e-wallet meets the needs and provides basic payment services to customers  MoMo wallet is licensed and managed by the State Bank of Vietnam, directly linked with many banks and when logging into the wallet or making secure payments (OTP authentication code, fingerprint authentication, )  Implement links, expand cooperation with many different partners in the industry (Gojek, Bee )  Take advantage of the push from the context of the Covid 19 pandemic to change the perception among users, businesses, and state agencies towards electronic payments  Raise awareness through promotional activities and attractive promotions and cashback programs 2.1.2 MoMo's Points of Difference (POD): As a mobile payment platform, MoMo wallet promotes cashless economy and provides customers with One touch payment experience with more than hundreds of service utilities, including both basic payment (electricity, water, telecommunications, cable TV), ecommerce, tourism, transportation to other payment like entertainment, consumer finance, insurance, purchasing shopping, food service… The application is trusted by consumers thanks to its strict safety standards, certification with the highest international security standards (PCI DSS), 2FA, SSL/TLS, tokenization, and multi-layer security when logging in payment (OTP authentication code, fingerprint, face authentication, auto-lock apps, and automatic prevention of transactions with signs of fraud) MoMo is also the first among the few payment intermediaries to achieve this certification It is the only e-wallet application in Vietnam that allows external cash withdrawal Currently, MoMo has more than 5000 withdrawal points spread across the country You can go to Momo withdrawal points for convenient withdrawal Most e-wallets charge a fee for making withdrawals from e-wallets, but only Momo is free for 10 withdrawals/month 2.1.3 Perceptual Map: According to 329 respondents in a DecisionLab survey that answered the question, "What is the reason for customers to use an e-wallet more frequently than others?" PayPal is ranked first in the fast transaction process (59%) among the other three wallets (ShopeePay, Z ViettelPay) It shows that the MoMo e-wallet is capable of managing customer payments quickly and efficiently (See Figure in Appendix) As mentioned above, one of MoMo’s points of difference (POD) is its security MoMo's security system has achieved the highest level of Service Provider PCI DSS (Payment Card Industry Data Security Standard) global security certification (Service Provider level 1) and is recognized as the first among the few e-wallets in Vietnam to receive this certification (ZaloPay, AirPay, Moca ) At the same time, MoMo Wallet also applies advanced and outstanding authentication technologies such as two-factor authentication, authentication by fingerprint or face recognition, tokenization, etc With this PCI DSS International Security certification, MoMo E-Wallet is ranked first for the strict security system that partners and customers can be completely assured of From subjective assessments of e-wallet users (through market survey results) in combination with the reference information, we propose a perceptual map based on security and speed of payment for MoMo e-wallet Figure MoMo's Perpeptual Map 2.2 MoMo’s Marketing Mix 2.2.1 Product 2.2.1.1 Core customer value MoMo aims to be the nation's leading e-wallet service that will promote the development of the cashless economy by providing its customers with one-touch payment 2.2.1.2 Actual product Brand name: MoMo Super App Quality: fast, convenient, and safe All of the world in a single tap Features: - MoMo Money transfer: Free, fast, secure Transfer money by phone number How much is transferred, even if it's only 100 VND Send messages with cards and stickers - MoMo Finance: Túi Thần Tài: Only 10,000 VND with daily interest up to 6% per year Fee-free instant deposit The balance is both profitable and payable on MoMo Postpaid wallet: zero interest rate; no activation fee; no service fee MoMo Entertainment: Buy movie tickets, lottery tickets, karaoke at your fingertips, pay just one second No waiting time, save time - MoMo Donation: Join hands to help in difficult situations Donate the ‘Heo Vàng’, give thousands of gifts Generate merit, make offerings and pray for peace - MoMo Travel: Manage your entire trip, compare all prices Paying for air tickets, passenger cars, trains, hotels Safe and secure, full of promotions Design: Theme color: Magenta Main screen: The main menu contains four prominent features: deposit money, withdraw money, view QR codes, and scan codes along with other services provided by MoMo Safety: MoMo security technology is globally certified Ensure user accounts will be protected with the highest level of security Promotion of TVC on TV channels: expected 4.11 billion VND b Model TVC is broadcast on local television in the South Central Coast and Mekong Delta region in urban areas of class II and III, specifically in Vĩnh Long, Ninh Thuận, and Quảng Nam radio and television In the hours of 11:50 - 12:00 and 18:45 - 19:00 (after the news and before the weather forecast) to ensure reaching the majority of the target audience and increasing the awareness of products and basic messages about quality as well as basic information about Momo e-wallet 6.3.3.2 Advertising - Outdoor advertising In addition, with the advertising strategy, Momo needs to consider the use of large outdoor advertisements, placed on national highways or roads to attract attention, and increase brand awareness Because there are many advertising positions associated with the enduring appearance of a brand for a very long time, it has made a strong impression on people who often pass through the area For Billboard, thanks to its large size and extreme height along with independent standing on open and wide spaces, billboard advertising conveys the brand's images and messages in a vivid, impressive and attractive manner Outdoor advertising is also considered as one of the most classy forms of communication today, the appearance of the brand in a beautiful and prime location will help raise the brand's level and affirm its prestige in the eyes of customers No need for internet, outdoor billboards appear anywhere, reaching all customers in rural and mountainous areas This form often stands alone, so they reduce the competitive factor with similar products Customer’s focus will stop at the only product mentioned In terms of time, the forms of outdoor advertising are usually deployed from months to a year or longer to build brand identity and imprint on the minds of consumers As a result, this research suggests that a 6-month period for Momo wallet is reasonable In those months, there will be an event that takes place continuously for months, depending on the request, Momo can choose channels such as high-level advertising (Billboard, Pano), low-range advertising (bus station, street decoration), roadshow advertising or Digital Out-of-home (apply digital technology through LED screen, Icd, frame at mall or airport) a Expense 22 Cost of renting location and designing advertising: expected 2.79 billion VND b Model: Time: months Order outdoor advertising design at On Digitals Company Limited Hire an outdoor advertising location at Goldsun Company Limited 6.3.3.3 Public relations MoMo has well exploited the insight of Vietnamese consumers, especially young people They like to experience new, convenient, and fast payment methods In the market expansion strategy, Momo needs to find media partners and contact media support partners and cooperation units of reputable newspapers: Zing.vn, VnExpress, Tuoitre to post information about the campaign, combining the deployment of in-depth content to emphasize the real value that MoMo brings to the community At the same time, Momo should carry out communication on social networking sites and contact the influencer/KOL/singer (negotiate salary, book an appointment), post the latest information about the campaign on the main fan page on Facebook, Tiktok with content suitable to spread the media message to the target audience, and create initiative and anticipation with the target audience In addition, students always have the habit of checking email every day so they can hear about new services every time Momo can take advantage of this behavior to send emails directly to Momo users to communicate directly about products: Introducing the upcoming product to customers via the MoMo list Moreover, giving instructions to customers about the product as well as the prices of the proposed offers Newsletters will be sent to consumers with great offers: Customers receive a 10% discount on lotion products when they receive mail and forward this email to friends Users will receive one more voucher on their friend list, as will their friends Send thank-you emails to loyal customers from the previous year who trusted and purchased the company's products On their birthdays, send phone messages or emails to customers on your house list wishing them a happy birthday and offering them a 10% discount on MoMo transactions 23 People have a greater need to share, contribute to society, assist disadvantaged communities, and deal with difficult situations as their social lives grow Momo can take advantage of this to develop more in this area because charity easily makes users happy, which is a factor contributing to retaining users With the charity donation feature, helping benefactors can share any amount with just one action, with no need to remember accounts or other information Not only we need to coordinate with a number of agencies to organize fundraising activities to help those in need, but through the charity program, individuals, benefactors, and businesses can share some of the burden by donating via the "MoMo ewallet." VII Marketing Plan Implementation 7.1 Campaign public impression • Target Audience: Focus on target group 1, especially freshmen who have just entered university (18 years old) • Slogan for the campaign: You don't need to worry, MoMo has your back! • Insights: Fact Truth Insight 24 - They are students from - They feel lonely when "I wish there were more the suburbs they step foot in the big companions to share and -They had few friends city help overcome difficulties when they first entered - They feel unfamiliar with together school everything around them - They live far from home - They have to at new environment" - Most of them have a low everything themselves cost of living - They are not used to how to study in a university environment - They haven't adapted to the new environment yet ● Key message: All young people need a best friend to spend the memorable student life together MoMo will be with you in difficult times, ready 24/7, whenever you need, MoMo is available • Concept: Young, modern, cute, and dynamic • Theme: Pink and white, MoMo character wearing student card • Brand Ambassador: Actress Hau Hoang and Khanh Van • Budget: billion VND 7.2 Marketing plan execution table MOMO BRAND PROMOTION STRATEGY "YOU DON’T NEED TO WORRY, MOMO HAS YOUR BACK" Stage (76 days) Establishing Stage (92 days) Stage (61 days) communication Activation Booth "Install the Design and build the 25 with viral clips and the app to receive gifts and game "Throw golds in giveaways for freshman at receive tickets to the concert" the MoMo era" university and Event "Momo greets new students" 1/6/2023 11/07/2023 - 1/5/2023 - 1/7/2-2023 - 15/7/2023 15/07/2023 31/8/2023 30/9/2023 Posting viral clip "New life of new students" on 11/07/2021 starring brand ambassadors Hau Hoang and Khanh Van Implement the program of giving away items from 7/7 to 9/7 Set up booths at 160 locations in universities from August 1, 2021 to August 31, 2021 Influencers OOH OOH Promotion Promotion - 1/8/2023 - 30/9/2023 Music night "MoMo welcomes new students" on September 25, 2021 Upload the game "Throw golds in the MoMo era" on September 21, 2021 Influencers Influencers Run ads on Run ads on Run ads on Run ads on Run ads on Facebook Facebook and Facebook Facebook Facebook and Youtube Youtube Electronic media Interactive communication fan page, facebook Type of Advertisemen t TVC Date Location Quantity Start End Total time Cost (Expected) Implementation costs of TVC: 70 millions VND Vĩnh Long 10/12/2022 10/02/2023 months 1.37 VND billions 26 Ninh Thuận 10/12/2022 10/02/2023 months 1.37 VND billions Quảng Nam 10/12/2022 10/02/2023 months 1.37 VND billions Total cost: 4.18 billions VND Implementation costs: 500 millions VND Outdoor Vĩnh Long 10/12/2022 10/06/2023 months 930 VND millions Ninh Thuận 10/12/2022 10/06/2023 months 930 VND millions Quảng Nam 10/12/2022 10/06/2023 months 930 VND millions Total cost: 3.2 billions VND Social media Influencers KOLs Total cost: billions VND - Total cost: 60 millions VND Total Advertisement Costs: 7.537 billions VND VIII Evaluation and Control This section details how to measure and evaluate the results of the plan While the control section will cover the types of actions the company can take to reduce the difference between the plan and actual performance 8.1 Performance standards and financial control The following financial control and performance standards are recommended for MoMo:  The budget allocation in the project will be 50% for customer survey and marketing system development, 50% for function development and launch in new markets  Each project team will be responsible for reporting all financial expenditures, including personnel salaries and direct costs, for each project segment The marketing manager will develop and deliver a standardized reporting form 27  The marketing manager is responsible for compliance with the project budget and will report the average to the company president on a weekly basis The marketing manager is also responsible for any budget diversions, as required for each project by the business analysis team 8.2 Supervision procedures To analyze the effectiveness of MoMo's marketing plan, it is necessary to compare its actual performance with the planned objectives To facilitate this analysis, monitoring procedures need to be developed for the various activities required to bring the marketing plan to fruition These procedures include, but are not limited to, the following:  A project management concept that will be used to evaluate the implementation of the marketing plan by establishing time requirements, manpower needs, and financial or budgetary expenditures;  Regular comparisons of actual and planned activities will be conducted monthly during the first year and quarterly after the initial implementation period The business analysis team, including the marketing director, will report directly on their comparison of the results facts and plans for the company president;  Each project team (specifically the team leader) is responsible for determining what changes must be made in the procedures, product focus or operations as a result of studies conducted in the area mine IX Appendix 28 Figure MoMo's interface Figure Digital Economies of ASEAN countries in 2020 29 Figure Digital Economy scenarios of Vietnam to 2025 Figure E-commerce revenue in Vietnam in 2021 30 Figure Most popular mobile wallet brands Vietnam 2020 Figure Most used e-wallets Vietnam 2021 by genaration Figure Competitive advantages of e-wallets in Vietnam 31 32 Table Services fee at transaction points of MoMo Service fee Transaction value (VND) Until the end of May 31,2021 50 000 - 000.000 8.000 000.001- 000.000 12.000 000 001 - 000.000 20.000 000 001 - 000.000 35.000 From June 1, 2021 0.6%/ transaction value Figure Service fees when withdrawing money to bank accounts from MoMo X References MoMo - Siêu Ứng Dụng Thanh Toán số Việt Nam 33 Nguyen Thi Ngoc My, Le Nguyen Phuong Linh, Le Ngoc Phuong Uyen (2021), RMITVN, Momo - Situational Analysis And Target Publics Identification  https://www.rmitvn-showcase.com/scd-pc-y2/en/momo-situational-analysis-and-targetpublics-identification Thanh Van (2021), VietNamNet, Competition in the mobile wallet sector is heating up https://vietnamnet.vn/en/competition-in-the-mobile-wallet-sector-is-heating-up-594054.html Decision Lab (October 2021), The rise of E-wallet in Viet Nam, https://2036413.fs1.hubspotusercontent-na1.net/hubfs/2036413/Final%20-%20Ewallet %20with%20Tet%20update.pdf? hstc=& hssc=&hsCtaTracking=fffaf00f-df76-483eb227-2bf45b9cfb79%7C1e58f0c3-e2ca-4ef5-b7f1-165a6a84e71f Cimigo (19th April, 2019), E-payment, e-wallet and the future of payment, https://www.cimigo.com/wpcontent/uploads/woocommerce_uploads/2019/02/Vietnam-epayments-and-mobile-e-wallets-Q1-2019.pdf Gia Khanh (2020), Reckless decision helped MoMo to reach 20 million users, https://ictvietnam.vn/reckless-decision-helped-momo-to-reach-20-million-users20201225104841898.htm Tomorrow Marketers ( April 22nd 2022), MoMo Company Profile - Những điều cần biết ứng tuyển chương trình MoMo Talents https://blog.tomorrowmarketers.org/momo-company-profile-nhung-dieu-can-biet-khi-ungtuyen-chuong-trinh-momo-talents/ Dantri.com.vn (2021) Ví điện TỬ Momo - Kênh Ủng HỘ Chương Trình "triệu trái Tim Một ý Chí" Retrieved September 25, 2022, from https://dantri.com.vn/tam-long-nhan-ai/vidien-tu-momo-kenh-ung-ho-chuong-trinh-trieu-trai-tim-mot-y-chi-20210612084131298.htm Brandsvietnam (2021) Chiến Dịch promotion bật năm 2020: "Momo hoàn tiền 50%" Retrieved September 25, 2022, from https://www.brandsvietnam.com/congdong/topic/319955-Chien-dich-Promotion-noi-bat-nam2020-Momo-hoan-tien-50 34 Kim Ngọc (2022) Nhìn Lại "relationship" Của Gojek Momo Trong Ba Tuần Qua Retrieved September 25, 2022, from https://advertisingvietnam.com/nhin-lai-relationship-cuagojek-va-momo-trong-ba-tuan-qua-p19283 Vũ, T (2021, December 27) Momo Quảng Cáo Roadshow XE 45 chỗ Retrieved September 25, 2022, from https://ssm.vn/project/momo-quang-cao-roadshow-tren-xe-45-cho Public Group (2022) Sự thành công đằng sau Chiến Lược Marketing Của Momo Retrieved September 25, 2022, from https://rubicmarketing.com/chien-luoc-marketing-cua-momo.html Toàn cảnh ngành Ví điện tử (E-wallet) Việt Nam 2021 | Tomorrow Marketers Chiến lược marketing momo - Ví điện tử lớn Việt Nam (misa.vn) E-wallet development: a vital step for business of the future | Star What Technologies are Driving the Digital Wallet Trend? | FinTech Magazine http://www.lapphap.vn (n.d.) Quy định tốn qua ví điện tử số nước, gợi mở cho Việt Nam Tạp chí nghiên cứu lập pháp Retrieved September 26, 2022, from http://www.lapphap.vn/Pages/TinTuc/210858/Quy-dinh-ve-thanh-toan-qua-vi-dien-tu-cuamot-so-nuoc nhung-goi-mo-cho-Viet-Nam.html Hungviet (2021, January 11) Thị trường ví điện tử Việt Nam - Cơ hội thách thức BANKER.VN Retrieved September 26, 2022, from https://banker.vn/thi-truong-vi-djien-tuviet-nam-co-hoi-va-thach-thuc MoMo có chế để phịng chống lừa đảo lấy cắp tài khoản? (n.d.) Retrieved September 26, 2022, from https://momo.vn/hoi-dap/momo-co-nhung-co-che-gi-de-phongchong-lua-dao-va-lay-cap-tai-khoan  Các điều khoản điều kiện dịch vụ cung cấp Ví Điện Tử MoMo (n.d.) Retrieved September 26, 2022, from https://momo.vn/dieu-khoan-dieu-le  Dư địa tiềm tốn khơng dùng tiền mặt Việt Nam lớn (22/07/2022) Retrieved September 29, 2022, from https://www.tinnhanhchungkhoan.vn/du-dia-va-tiemnang-thanh-toan-khong-dung-tien-mat-o-viet-nam-la-rat-lon-post302155.html 35 Producer.vn (2022, July 20) Quay TVC Quảng BÁ Doanh Nghiệp trọn Gói Chỉ TỪ 12 Triệu Retrieved November 25, 2022, from https://producer.vn/quay-tvc-quang-ba-doanh-nghiep On Digitals (2022, November 16) Dịch vụ Thiết Kế Quảng Cáo Ngoài trời OOH Retrieved November 25, 2022, from https://ondigitals.com/quang-cao-ooh/ Goldsun Media (2021, July 23) Goldsun Media group- đơn vị đầu Quảng Cáo Ooh, WIFI Marketing Retrieved November 25, 2022, from https://goldsungroup.com.vn/ 36 ... interest up to 6% per year Fee-free instant deposit The balance is both profitable and payable on MoMo Postpaid wallet: zero interest rate; no activation fee; no service fee MoMo Entertainment:... more than 40 e- wallet providers, competition in the Vietnamese market is fierce Seeing the potential of the e- wallet market, many businesses have begun scheming to gain market share Although Momo'' s... between generations of consumers Gen Z will be the key consumers in the near future For this generation, they are often quick to accept change and development, especially technology With the