The marketing stratergies of asia commercial bank to be the leading retail bank in vietnam

.1- - -_ .- - -~-.-.-~:-:-:l-~-~f-n~~[~ B AlIA GR.ADUATION PAPER \ "'lir"" •._ '! ~ r-, ,~ ".•.' ~ :' ; ••••• ' -' Upon completing my research, I have worked so hard with seemingly tireless energy However, if it had not been for the help and support of my teachers, The Asia Commercial Bank, friends and family, I could not have achieved my goal I would like to express my deep feeling from the bottom of my heart to say thanks to those who had helped me a lot, especially DR TRUONG QUANG TUAN, my advisor, who gave me useful advice and had positive attitude towards my topic He has spent his precious time considering my graduation paper with all his heart and enthusiastically given me helpful comments Second, I would like to say thanks to Mr TRAN QUOC BAa, a teacher in Vo Van Tan high school He has helped me a lot in providing me helpful information regarding ACB Third, I would like to show my gratitude towards the Asia Commercial Bank that provided me with very useful information, latest news and updated data by giving me all necessary conditions and opportunities for me to complete my topic about the bank Without a doubt, thanks to the enthusiasm and cooperation of ACB's management and employees, I could finish my research Finally, lowe many thanks to my family and friends for their constant support and encouragement They're always by my side Once again, thank you very much for all l THE MARKETING STRATEGIES OF ASIA COMMERCIAL BANK TO BE THE LEADING RETAIL BANK IN VIETNAM Acknowledgement Advisor's assessment Index I.INTRODUCTION II.CONTENT Chapter 1: General conceptions about the theme 1.a Wh.at IS mark.? eting l.b The marketing process l.c The marketing mix * Product * Price ' * Place • •• • • • • • •• • • * Promotion * People * Process , • * Physical Evidence .• .• e •••••••••••••••••• Chapter 2: An overview of ACB 2.a * Establishment * A bank of high sustainability and integrity * Vision and mission •.• * Strategy* Operating principles ~ '•••••••••• 11 13 14 17 19 20 20 22 22 23 24 ,!.25 2.b Highlights of ll-year-history 25 2.c Recognition and Awards 29 2.d 2.e 2.f 2.g 2.h 31 33 34 37 38 Key Finan.cial Figures • ACB from "CAMEL" Risk Management System IFe's technical assistance Organ.izational chart Chapter 3: Marketing Strategies of ACB 3.a Product 3.b Price 3.c Place 3.d Promotion 3.e People 3.f Physical Evidence 3.g Process Chapter 4: Analysis and Suggestions 4.a Competitors 4.b Suggestions III CONCLUSION Bibliography 40 51 55 59 63 67 71 75 85 90 The Marketing Strategies of ACB to be the leading retail bank in Vietnam INTRODUCTION Vietnam has been on its way to industrialization and modernization since the Renovation Policy of our Party and State Our country is changing from the subsidized economy to the market economy As a result, more and more entrepreneurs are established and the demand for exchanging among them is increasing Therefore, banking services, without a doubt, have become an essential and important part of our life This is the reason why many banks were set up and the competition among banks is very fierce In the past 11 years, Asia Commercial Bank (ACB) has achieved good reputation due to its successful marketing strategies and management and has become the best joint-stock commercial bank in Vietnam We all know that banking services are very sensitive; despite the fact that the market in Vietnam is changing rapidly, more and more state-owned banks, jointstock banks as well as foreign banks are established, and they are all giants, ACB is still the leading retail bank in Vietnam and holds a big market share What makes that? Definitely ACB has effective strategies that make it outstanding and successful In every organization, marketing is the crucial part and that makes the success However, little research has been done on ACE In my research, I would like to analyze some of the marketing strategies of ACB to be the leading retail bank in Vietnam The focus of this research is on how ACB applied successfully and effectively those strategies and some suggestions on the way to global integration This paper consists of chapters: The first chapter of my research is about some general conceptions, which give us basic understanding about Marketing An overview of Asia Commercial Bank is mentioned in the next chapter, we will have a close look into what ACB is about and how ACB was established and developed - 1- ./ The Marketing Strategies of ACB to be the leading retail bank in Vietnam during the past 11 years In the third chapter, the core chapter of all, I would like to analyze the marketing strategies applied in ACB that play so important a role in the success of ACB Then comes the last chapter that analyzes some advantages and disadvantages of ACB, its competitors, social trends and some suggestions to integration Data book references and materials concerning this field will be used to support my research I will also develop my knowledge about related matters in addition to what I have learnt from HUFLIT My research about Asia Commercial Bank helps me understand more about the market so that I can get more experiences and it also enhances my knowledge in Banking Services, Business, Marketing, and Management Some methods used in doing this paper: Reading primary data: text books, references, documents Getting secondary data: magazines, newspaper, CDs, Internet Collecting data and statistics Interviewing, using questionnaires Observing, taking pictures Analyzing data Giving conclusion from what have been studied -2- -, The Marketing Strategies of ACB to be the leading retail bank in Vietnam CHAPTER 1: GENERAL THEME CONCEPTIONS ABOUT THE A WHAT IS MARKETING? Marketing, more than any other business function, deals with customers Creating customer value and satisfaction are the heart of modern marketing thinking and practice The twofold goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction Sound marketing is critical to the success of any organization- large or small, for-profit or non-profit, domestic or global Everyday in our life, we use the term "marketing" very often, but be sure to distinguish between the familiar word in everyday use and the term as it is used professionally by marketing managers All of us are daily the targets of massive and sustained marketing activities in a variety of forms, which range from advertising on television and radio, in the press, on posters, on bottles of drinks, through direct mails and promotional literature of all types, and through special offers and price reductions in retail stores If we pause to think about it, the evidence of marketing activities surrounds us like the air we breathe But what does "marketing" actually mean? Many people think of marketing only as selling and advertising However, selling and advertising are only the tip of marketing iceberg Today, marketing must be understood in a new sense of satisfYing customers' needs According to Kotler, Philip & Armstrong, Gary.(ed.).1996 Principles of marketing 8th edition.New Jersey: Prentice-Hall International, INC., Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with each other To explain this definition, we will examine the following: -3- The Marketing Strategies of ACE to be the leading retail bank in Vietnam FIGURE 1: The Core marketing concepts NEEDS: Human needs are states of felt deprivation They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self expression These needs are not invented by marketers; they are a basic part of the human makeup WANTS: Wants are the form taken by human needs as they are shaped by culture and individual personality A hungry person in the United States might want a big Mac, French fries, and a Coke A hungry person in Bali might want mangoes, suckling pig, and beans Wants are described in terms of objects that will satisfy needs People have almost unlimited wants but limited resources Thus, they want to choose products that provide the most value and satisfaction for their money DEMANDS: Human wants that are backed by buying power PRODUCTS: The concept of products is not limited to physical objects It is anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need It includes physical objects, services, persons, places, organizations and ideas SERVICE: Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything - 4- ~ The Marketing Strategies of ACB to be the leading retail bank in Vietnam CUSTOMER VALUE: The difference between the values the customer gains from owing and using a product and the costs of obtaining the product CUSTOMER SATISFACTION: The extent to which a product's perceived performance matches a buyer's expectations EXCHANGE: The act of obtaining a desired object from someone by offering something in return TRANSACTION: A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement and a place of agreement RELATIONSIllP MARKETING: The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders MARKET: The set of all actual and potential buyers of a product or services To understand the nature of market, imagine a primitive economy consisting of only four people: a fisherman, a hunter, a potter, and a farmer Figure shows the three different ways in which these three traders could meet their needs Forms of exchange (8rm~ cEu~ @ (a) Self-sufficiency (no exchange)