INTRODUCTION
Current problem statement
In today's digital age, the Internet has eliminated language barriers and geographical boundaries, making online education not only feasible but highly recommended The rise of E-learning has emerged as a global phenomenon, with leading universities worldwide enhancing their online offerings Vietnam has distinguished itself in this movement, becoming the first ASEAN country to export E-learning technology internationally.
E-learning in Vietnam is a relatively new teaching method that faces significant challenges in gaining public trust The rapid technological advancements and the need for users to adapt their behaviors have introduced risks in the e-learning sector Additionally, many e-learning companies have merged due to profitability issues This situation highlights the urgent need for e-learning providers to develop sustainable strategies to enhance their sales performance.
TOPICA Edtech Group, one of Vietnam's pioneering e-learning companies, serves as a key case study in this thesis, highlighting its exceptional sales performance As a leading online education provider, TOPICA has made significant strides not only in Vietnam but also across Southeast Asia.
Objectives and research questions
This study aims to identify the internal and external environmental factors influencing the sales volume of TOPICA Educational Provider, while also examining the dynamics within TOPICA's sales department.
This study aims to identify key enhancements that TOPICA Edtech Group can adopt to boost their sales performance and to outline effective strategies for implementing these improvements.
By the lessons to be learnt, the thesis hopefully could give several recommendations in improving Vietnamese e-learning providers’ sales performance
This thesis seeks to identify key factors influencing sales volume and propose effective measures to enhance the company's current conditions by addressing specific research questions.
1 What are the factors affecting sales performance of TOPICA?
2 What are the past and the current sales trend of the company?
3 How to increase the sales performance in a sustainable way and how these improvements can be implemented?
Significance of the thesis
Currently, there is a lack of research within the company on this issue Consequently, the findings of this study could serve as valuable insights for the company to implement essential adjustments and enhancements.
Scope and limitations
This thesis analyzes the sales performance and environmental factors influencing the sales revenue of the company It utilizes internal company documents, focusing on sales figures from 2013 to 2015, to enhance the research Additionally, the study incorporates all pertinent information related to the sales department.
On the other hand, some of the limitations the researcher has faced in carrying out this project
Firstly, the researcher could not cover all the necessary areas that have to be covered because of the limit of time
Secondly, some theoretical documents related to this title are unavailable
This study focuses on enhancing TOPICA's sales performance and aims to help the company restructure its sales department for improved effectiveness Additionally, it seeks to contribute to the academic literature on sales performance improvement within Vietnam's e-learning sector However, the thesis does not provide forecasts for the online education market in Vietnam or specific future plans for the country.
Finally, due to the limitations of time and internal information provided, only TOPICA Native and TOPICA Uni channels have been analyzed.
LITERATURE REVIEW
Definitions of services and relevant terms
Services are tangible activities which are offered for sale as such or in connection with sale of goods, for example, consultation, banking (Joshi, 2009)
Services are intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation,
Services are often challenging to identify as they are closely linked to goods, particularly when a diagnosis or ownership is involved in the sale Unlike products, services cannot be stored or transported; they are perishable and exist only at the moment they are purchased and consumed.
Traditional services may be of two types
Firstly, personal services comprise education, communication, medical, legal services and so on
Secondly, business services comprise advising, mercantile credits, collection agencies and so on
The term "modern service industry" has emerged alongside advancements in information technology and the knowledge economy This industry leverages new technologies, innovative operational models, and contemporary service methods to transform traditional services It aims to generate demand, stimulate consumption, and deliver high-value, high-level, knowledge-based production services to society.
Online education, also known as virtual education, internet-based education, web-based education, and computer-mediated communication, represents a contemporary approach to learning that leverages digital platforms to deliver educational content.
The Web-Edu project uses a definition of online education that is based on Desmond Keegan's (1988) definition of distance education Hence, online education is characterized by:
• The separation of teachers and learners which distinguishes it from face-to-face education
• The influence of an educational organization which distinguishes it from self- study and private tutoring
• The use of a computer network to present or distribute some educational conten.t
•The provision of two-way communication via a computer network so that students may benefit from communication with each other, teachers, and staff.
Definition of sales and relevant terms
Selling is a dynamic process that facilitates interaction between potential buyers and sales professionals employed by companies This profession encompasses a wide spectrum, from retail salespeople to investment bankers managing substantial company assets.
Selling is a market function that involves determining client needs and wants and responding through planed, personalized communication that influences purchase decisions and enhances future business opportunities
Selling is a process of transferring a product or service to a buyer at a price regardless of his or her need
Selling is a fundamental need for sellers and serves as the internal goal of any business It focuses on the seller's interests while aiming for profit by actively promoting products and services to buyers However, the actual offerings are shaped by buyer preferences rather than the seller's choices As a crucial component of marketing, selling represents the final step in the marketing process.
Sales volume is the quantity or number of goods sold or services rendered in the normal operations of a firm in a specific period
According to Jobber (2004), Professional selling involves a series of seven distinct steps
1 Prospecting is finding and qualifying potential customers Qualifying is the process of determining whether a potential customer has a need or want that the company can fulfill, and whether the potential client can afford the product
2 Preparation involves preparing for the initial contact with a potential customer You will need to collect and study relevant information such as product descriptions, prices, and competitor information You will also need to develop your initial sales presentation
3 Approach is the first face-to-face interaction you will have with the potential customer In the premium approach, you give your prospect a gift at the beginning of the interaction It may be a pen, a novelty item or company calendar, for example Another method is the question approach, in which you ask a question to get the prospect interested For example, 'would you have a problem making a 15% annual return on an investment?' You may also use the product approach, in which you give the prospect a sample to review The idea behind all of these approaches is to get the prospect involved in the interaction quickly
4 Presentation is actively listening to the needs and wants of the potential customer and demonstrating how your product can meet those needs and wants
5 Handling objections is an important part of the process Objections can be useful because they tell the salesperson what to focus upon in addressing a prospect's concerns Successful salespeople learn how to overcome objections through preparation and having the right information at hand to address them
6 Closing involves identifying closing signals from the prospect that indicate it's decision time There are different approaches to closing In the alternative choice close, you assume the sale and offer the prospect a choice such as, 'Will this be a cash or credit transaction?' An extra inducement close involves you offering something extra to get the buyer to agree, such as a discount or a free product In thestanding room only close, you inform the prospect that time is of the essence because some impending event, such as a price increase, will change the terms of the offer
7 Follow-up is building a long-term relationship with your customer for purposes of repeat sales For example, you make contact with the customer sometime after the sale and make sure the product was received and is in good condition Again, the idea is not to sell at this stage, but to create a solid relationship for future sales.
Factors affecting sales
External factors influencing a business, such as opportunities and threats, are largely beyond the company's control and encompass both micro and macro-environmental forces In the e-learning industry, these factors include competition, natural resources, legal regulations, economic conditions, technological advancements, and socio-cultural trends To thrive, companies must thoroughly analyze their environment, capitalizing on emerging opportunities while mitigating potential threats Understanding the economic environment is particularly crucial for driving sales and ensuring long-term success.
Economic factors significantly influence a company's operations, encompassing both national and global economic conditions The wealth of the population directly impacts consumption patterns, necessitating strategic planning by business leaders Key considerations include credit availability, disposable income, inflation, interest rates, and a country's GDP, all of which can either facilitate or obstruct marketing efforts Marketers must closely monitor trends affecting purchasing power, as these trends can profoundly affect businesses, particularly those targeting high-income and price-sensitive consumers.
The ongoing economic downturn is prompting consumers to change their spending habits, leading to more cautious financial decisions and a reassessment of lifestyles Individuals with disposable income are becoming more judicious in their expenditures, while struggling businesses are resorting to layoffs to maintain operations This shift reflects a broader trend in social beliefs and consumer behavior, emphasizing the importance of financial prudence in challenging times.
Humans uniquely respond to various stimuli shaped by culture, family, education, and religion, leading to positive or negative reactions Society influences beliefs, attitudes, and lifestyles, which are widely adopted and frequently change as individuals adapt to external demands Consequently, this dynamic creates fluctuating demands for specific clothing styles, technological devices, leisure activities, and other products or services, while interest in alternatives diminishes.
Consumer behavior defines the process that occurs when purchasing a product or a service As both have an impact on marketing decisions and also have some relationship
Grasping consumer behavior, spending habits, and budgeting is essential for industries to effectively meet consumer demands This understanding encompasses insights into key players in the purchasing process, their buying methods, preferred shopping locations, timing of purchases, and criteria for making choices.
Social expectations represent the demands that society places on brands A strong brand image in specific market segments can significantly boost sales By focusing on enhancing their brand image, producers can achieve favorable market outcomes Additionally, the political and legal environments play a crucial role in shaping these dynamics.
Political factors encompass the legal and regulatory frameworks that govern industries and businesses, influencing aspects such as fair-trade practices, antitrust regulations, taxation, wages, and government initiatives aimed at safeguarding various societal groups.
Marketing decisions are significantly influenced by changes in the political and legal landscape, which includes laws, government agencies, and pressure groups that impact organizations and individuals.
The rise in business legislation serves three primary objectives: safeguarding companies from unfair competition, protecting consumers from deceptive business practices, and addressing societal concerns related to unchecked business activities A key aim of these laws and their enforcement is to hold businesses accountable for the social costs associated with their products and production methods.
Companies are required to have standard terms and conditions of sale for legal compliance, typically outlined on the back of order forms In online transactions, customers are often prompted to confirm they have read these terms by ticking a box These terms cover essential aspects such as supply conditions, delivery, payment, and other related issues concerning the provision of goods and services (Donaldson, 2007).
In general, political and legal forces can have an influence on a firm’s decisions by determining the rules by which business can be conducted iv Technology
The rapid emergence of new materials, products, and processes is shortening product life cycles, which significantly impacts the manufacturing, distribution, and promotion of goods and services Additionally, advancements in technology are transforming the roles and functions associated with selling.
In today's fast-paced technological landscape, companies that embrace rapid advancements can significantly enhance productivity and efficiency Marketers need to stay informed about emerging technologies that could impact their industries, as new tools and strategies are essential for maintaining a competitive edge and preventing obsolescence.
Despite technological advancements, e-learning has not significantly improved in the short term The internet has enabled lower-cost distribution and global access, but it has also regressed interactive learning tools to outdated designs Since the onset of the Internet, the e-learning industry has developed increasingly complex tools that compromise critical delivery capabilities and oversimplify instructional methods, leading to a decline in effectiveness The authoring tool industry has shifted to using web development tools, resulting in a notable drop in instructional quality A change is necessary for the e-learning industry to restore its effectiveness.
The level of competition within a firm's industry, including the number of rivals and their market strengths, is a crucial economic factor To achieve a competitive edge, companies should tailor their marketing and sales strategies accordingly For instance, instead of competing solely on price against foreign rivals like Komatsu, Caterpillar has effectively leveraged its reputation for high-quality construction equipment and superior service, even commanding prices up to 20% higher than its competitors Analyzing competitive activities, such as evaluating lost sales, can provide valuable insights for sales and marketing management (Churchill, 2003).
Internal factors that impact sales include product characteristics and management decisions Key elements such as product, price, place, and promotion—collectively known as the 4Ps or marketing mix—play a crucial role in shaping sales outcomes.
The importance of sales to a company
Sales play a crucial role in enhancing the conversion of prospects into customers by enabling direct interactions Through engaging conversations, salespeople can ask questions, address concerns, and recommend suitable products or services Without these proactive sales efforts, companies must depend on passive marketing messages, which may not effectively influence customers during their purchasing decisions.
The sales function plays a crucial role in business growth through referrals, as many organizations highlight their importance in promotional materials and thank-you notes By leveraging the perceived value of their solutions, sales representatives can effectively inquire if satisfied customers know others with similar needs Referrals serve as a powerful prospecting tool, fostering a personal connection with potential clients.
The personal and interactive nature of sales is essential for fostering long-term customer relationships By following up after purchases, salespeople can ensure a positive customer experience, preventing dissatisfaction that may lead customers to switch to competitors This continuous engagement not only enhances customer satisfaction but also creates opportunities for additional sales that meet the evolving needs of customers.
Summary for literature review
Sales are the outcomes of selling activities, which involve the interaction between potential buyers and company representatives Effective selling processes, particularly in modern services, are crucial for generating profit for businesses.
Online education has emerged as a contemporary service, significantly transforming the selling process across various industries Despite these changes, the traditional seven steps of selling—Prospecting, Preparation, Approach, Presentation, Handling Objections, Closing, and Follow-up—remain the foundational elements of modern sales strategies.
Sales results are primarily influenced by two key factors: external factors, which encompass competition, natural elements, legal regulations, economic conditions, technological advancements, and socio-cultural influences, and internal factors, which refer to the marketing mix known as the 4Ps—product, price, place, and promotion.
Sales results are a crucial indicator of a company's wealth, showcasing its ability to convert prospects into customers and reflecting overall growth They highlight the strong relationship between the firm and its customers, as well as its international connections However, ineffective selling and marketing strategies can lead to severe repercussions, negatively impacting not only sales performance but also the company's image.
RESEARCH METHODOLOGY AND DATA ANALYSIS
Profile of TOPICA Edtech Corporation
3.1.1 Background of TOPICA Edtech Group
Founded in 2008, TOPICA Edtech Corporation has emerged as a leading online education provider in Southeast Asia, collaborating with 11 prestigious universities from the United States, the Philippines, and Vietnam to offer high-quality online degree programs Its TOPICA Native division specializes in online English speech tutoring across Thailand, Indonesia, and Vietnam, and was the first globally to introduce a Google Glass app for speech tutoring Additionally, the TOPICA Founder Institute serves as an accelerator program, with its graduates raising nearly $10 million in just three years An early initiative of TOPICA was launched by former Microsoft Chairman Bill Gates Currently, the company employs over 1,000 full-time staff and 2,000 part-time instructors across its offices in Manila, Singapore, Bangkok, Hanoi, Ho Chi Minh City, and Da Nang, with a total capital of 300 billion VND.
3.1.2 Vision, Mission, Values, and Sources of Competitive Advantage for Topica
Vision: To “go global” and become a fully-fledged “best in class” e-learning company in the online educational sector
Our mission is to deliver exceptional value to owners, customers, and employees while pioneering the export of e-learning technology to the ASEAN region We aim to achieve our enduring goal of leading Southeast Asia in educational innovation and helping millions of individuals access quality learning opportunities.
- Executing all works in a genuine, transparent and accountable manner
- Add value, handle company property with maximum care and ensure efficient utilization of resources
- Giving full customer satisfaction and strive to exceed their expectations
- Working hard to be best in class and lead the way for quality
- Building sustainable, closer, long-lasting relationship with partners and coordinators
- Always giving maximum respect to employees, customers and partners
- Ensuring employment, promotion, reward and self-development opportunities are based on merit, competence and performance
- As the employees are the company’s main sources of competitive advantage, the company therefore will create opportunities for continuous employee development and empowerment
- Developing brotherhood among the staff
- Always ensuring “young and dynamic” working environment to all employees
- Providing necessary support to employees as much as possible
Objectives: business target of TOPICA Corporation are:
- Launching the newest product TOPICA Edumall – the biggest online course supermarket in Vietnam
- Building and reinforcing the brand in the international market with the frontline project of “International Branding Development”
- Stepping on the path of bringing brand TOPICA “Go Global” and gaining a position in the world
- Reaching out to dominate the online education market in Southeast Asia
- Professional, highly skilled and committed work force
- Partner of first choice for reputed universities and international companies
- Acquirement of up-to-date high-tech equipment and latest updated 3B and Adobe system
- World’s first Online English Speech Tutoring via Google Glass Learning on Smart watches, Smartphones, IPTV, 3D Virtual Environment
3.1.3 Programs of TOPICA Education Technology Group
TOPICA has addressed a significant challenge for those seeking online training by offering recognized degrees to its trainees By collaborating with 11 prestigious universities in the Philippines and Vietnam, including National Economics University and Hanoi Open University, TOPICA provides comprehensive technology and support services The partnership has led to the introduction of five majors: business administration, accounting, finance and banking, informatics, and law Degrees issued by these institutions, along with certification from the Ministry of Education and Training, ensure that TOPICA students receive high-quality and legitimate qualifications.
TOPICA Uni has successfully engaged more than 1,000 managers and professionals to provide online education, contributing to the growth of its community With over 1,600 alumni showcasing significant career advancements and accomplishments, the university continues to attract an increasing number of students, particularly those holding Master’s degrees.
TOPICA Native, developed by TOPICA Edtech Group in Vietnam, offers an innovative Online English Speech Tutoring service that connects learners with native speakers It features unique programs, such as the first English learning initiative using Google Glass and an Adaptive Learning method Students from Thailand, Indonesia, and Vietnam benefit from flexible online classes available from 8 am to 11 pm, catering especially to working professionals With hundreds of live speech practice sessions conducted daily, TOPICA Native ensures ample opportunities for effective English language learning.
Especially, 300 modules on rich multimedia self-study material, individualized learning path are always prepared for the next class
English ability testing system CASEC was founded based on research of STEP and was developed by the Japan Institute for Educational Measurement (JIEM)
TOPICA Million offers a comprehensive free e-learning resource featuring 400 educational lectures, including videos, slides, FAQs, and a dictionary of key terms across more than 60 subjects The platform highlights five in-demand majors: Business Administration, Accounting, Finance and Banking, Law, and Information Technology, attracting millions of learners eager to enhance their knowledge and skills.
TOPICA Memo is a free English learning app created by IT 9x Viet, marking it as Vietnam's first language learning tool designed specifically for Android smartwatches This innovative app focuses on enhancing vocabulary acquisition for users.
TOPICA Native (TO) TOPICA Uni
SX/SZ S02 SO1 SO3 S1 S2 ST SY
TBI: Brands and International Relations center
TLI: Legislation and inspection center
SO1: admission consultant and marketing Department (Sales Department)
TOC: Center of Research and Development
TOM: Enrolling and Marketing Department
TOT: Information and Technology Department
TOP: Center of Partners Development
SY: Operation of Bachelor Programs Division
TIS: Technology and Information system
TRD: Research and Development Center
The Chairman of the Board of Directors appoints the General Manager of TOPICA, who is hierarchically accountable to the Chairman or corporate management The organizational structure is outlined below.
SD Subsidiary Director SX Senior advisor
TD Director /Vice Director TX
PM Manager/ Deputy Manager PX Principal experts
3.1.6 Milestones of TOPICA Edtech Corporation
- TOPICA Education Group was established Its mission is to promote high-quality online education among learners in Vietnam and South East Asia
- Following Harvard, Stanford, MIT and Duke, TOPICA applied 3D simulation technology in teaching Online students experience "school", "class", "practice", in Second Life environment, built after the real-life university campus
- TOPIC64 selected among Top 4/132 of Stockholm Challenge GKP Award
- TOPICA launched the first batch of HOU-TOPICA Online Bachelor's Program
TOPICA, in collaboration with the Vietnam Young Entrepreneurs Association and ThanhGiong.vn, has launched the "1000 Businessmen to Teach Online" campaign along with the annual "Best Businessmen-Teachers" award This initiative has made a substantial social impact, resulting in 1,100 successful managers and professionals teaching online and providing free courses to 40,000 students.
- TOPICA HCMC also launched the first batch of HOU-TOPICA Program
- First in the world, CRC-TOPIC successfully organized an online training course on Business Incubation for 105 managers from 15 Asia-Pacific countries
- TOPICA started partnership with Duy Tan University, opening DTU-TOPICA
- Vietnam Deputy Prime Minister Nguyen Thien Nhan received the honorary lecturer’s account “nhannt.gv” from TOPICA
- Vietnam Deputy Prime Minister Vu Khoan received the keys to a 3D virtual house, in Awards Ceremony "Best Businessmen-Teachers 2011"
- TOPICA Founder Institute launched the first batch of "startup accelerator from Silicon Valley"
- TOPICA selected among Top 100 of Red Herring Asia Award
- TOPICA partnered with Tra Vinh University, opening TVU-TOPICA
- TOPICA partnered with National Economics University, opening NEU-EDUTOP
- TOPICA signed partnership agreement with University of Finance and Marketing, in presence of Vietnam Minister of Finance Vuong Dinh Hue
- TOPICA Representative was honored among 192 Young Global Leaders by World Economic Forum
- TOPICA partnered with Thai Nguyen University, opening TNU-TOPICA
- TOPICA signed partnership agreement with AMA University, one of the largest education groups in the Philippines
- Launched mobile learning app TOPICA MOBILE, the first in Vietnam
- Launching Online English speech tutoring platform TOPICA Native (TOPMITO)
It is first in the world Students practice speaking via Google Glass for the first time in the world Launching the first online speaking program with 100% native teachers
- TOPICA Da Nang launched the first batch of Online Bachelor's programs HOU- TOPICA
Since its inception, TOPICA Uni has seen 1,600 students graduate from its Online Bachelor's programs, with an impressive 97% securing employment Notably, 34% of graduates have advanced to better job positions, experiencing an average salary increase of 16.1% within a year—significantly higher than the national average Additionally, many alumni have achieved leadership roles, becoming Founders, CEOs, and Managers.
To date, 16 founders have graduated from the TOPICA Founder Institute, with five startups successfully securing Series A funding, two of which raised millions of USD In a demonstration of a Silicon Valley-inspired "Pay It Forward" culture, three founders sponsored 30 full scholarships for TFI Batch 3 Additionally, several graduates have been recognized with international awards in countries such as Japan, Singapore, India, and across ASEAN.
- TOPICA shared experience at Global Economic Symposium 2014, Kuala Lumpur, on an online education panel, with audience from 25 countries.
Research Methodology
3.2.1 Research Design and Area Description
TOPICA operates offices in Hanoi, Da Nang, Ho Chi Minh City, the Philippines, Singapore, and Thailand, with this study focusing specifically on TOPICA Hanoi Utilizing a descriptive research approach, the study assesses and describes the internal and external factors affecting the company's sales performance The analysis includes sales figures from 2014 to 2015, aiming to identify and gather information on the characteristics of the specific issue at hand.
3.2.2 Data Sources and Data Gathering Techniques
This thesis utilizes both primary and secondary data, with primary data sourced from trainees, the marketing and admissions department, the human resources department, and the sales department manager Additionally, primary data was gathered to address other pertinent questions related to this research.
To conduct this study, the researcher utilized quantitative data, interviewing the sales division manager and the general manager of the company to gain insights into TOPICA's sales and marketing strategies, as well as the current status of its sales department.
On the other hand, secondary statistics have been collected from the company’s documents through Topica.innews website.
Sales Results
The analysis of primary and secondary data utilized simple statistical tools, including tabulations, graphs, tables, and percentages, to effectively uncover the company's sales results.
3.3.1 Trend of Sales Volume of TOPICA from 2014 to 03/2016
To evaluate the company's sales trends over the past four years, we analyzed both actual and projected sales figures The summary of total sales volume for the last two years is presented in the table below.
Table 3.1 Total sales Revenue of TOPICA Edtech Corporation (2013 – 2016)
Year TOPICA Uni TOPICA Native
Actual sales Planned sales Actual sales
Since early 2013, Topica Edtech Group has experienced a steady increase in total sales revenue, driven by the company's expansion and quality improvements This remarkable growth can be attributed to the innovative policies implemented by the organization.
TOPICA Uni consistently generated the highest total revenues from 2013 to 2015, with actual sales surpassing planned figures each year Sales increased from 180 billion in 2013 to 300 billion in 2014, and then surged to an impressive 450 billion in 2015 Marketing experts at TOPICA projected that revenues would reach 520 billion by the end of 2016 This highlights TOPICA Uni as the primary revenue-generating channel for the company, especially since TOPICA Native was not launched until 2013.
From 2014 to 2015, TOPICA Native experienced a consistent monthly revenue increase of 15%, with projections indicating this growth will continue into 2016 Initially, in 2014, actual sales fell short of planned figures due to the launch of TOPICA Native's courses However, 2015 marked a significant acceleration, with actual sales surpassing planned targets, reaching 240 billion It is estimated that for the 2015/16 period, TOPICA Native's total sales will represent 36.58% of the company's overall sales.
The significant sales growth of TOPICA's subsidiary companies can be attributed to the effective implementation of the 4H Quality Twister initiative, which focuses on Intake, Teaching, Output, and Branding Each April, TOPICA dedicates a month to enhance these projects, leading to successful outcomes In 2016, the launch of the 4H service on April 1st provided robust support for these initiatives, contributing to their successful execution The primary goal of this project is to elevate human resource qualifications, enabling improved service delivery and establishing a foundation for a targeted monthly growth rate of 20% from June to December each year.
For illustration purpose the comparison of actual and planned sales of TOPICA is shown in the graph given below
Figure 3.1: Comparison of Actual sales and Planned Sales (2013 – 2016)
As can be seen from the graph, the sales trend of the company continuously increased during these 4 years from 2013 to 2015 in general The financial year
In 2015, TOPICA achieved a significant milestone with actual sales reaching an impressive 700 million dong, surpassing initial estimates Looking ahead to 2016, the company is expected to experience a continued upward trend in sales.
3.3.2 Sales by number of students enrolled
TOPICA Edtech Corporation is the leading online education provider in Southeast Asia, having established a strong reputation in Vietnam's bachelor online market over the past seven years Through its TOPICA Uni product, the company collaborates with 11 top-tier universities in the Philippines and Vietnam to offer high-quality online degree programs, attracting many students, including those with Master's degrees.
In the past, 21 percent of students enrolled at TOPICAUni were graduates of full-time universities, with 43 percent of those coming from prestigious institutions The accompanying data illustrates the enrollment trends at TOPICAUni over the last seven years.
Figure 3.2 Online enrollments in Degree-Granting postsecondary institutions (2008- 2015)
Between 2009 and 2015, TOPICAUni experienced a significant increase in student enrollment, nearly quadrupling the numbers from 2012 by 2015 This growth can be attributed to strategic partnerships with 11 universities, including prestigious institutions in the Philippines and Vietnam, such as Hanoi Open University (2009), Duy Tan University (2010), and Tra Vinh University (2012).
Since its inception, TOPICA Uni has partnered with esteemed institutions such as the University of Finance and Marketing (2012), Thai Nguyen University, AMA University – the largest education group in the Philippines (2013), and Franklin University (2016) These collaborations have enabled the offering of five key majors: business administration, accounting, finance and banking, informatics, and law, attracting an increasing number of students to enroll in TOPICA Uni's courses.
Between 2014 and 2015, TOPICA Native English tutoring experienced a significant increase in student enrollment, with a consistent monthly rise of 17 percent over two consecutive years.
Between 2008 and 2015, the number of students reached an impressive 35,000 by the end of 2015, driven by the advancements in Native's technology and its commitment to customer satisfaction During this period, significant efforts were made to incorporate the latest e-learning technologies and to integrate professional native English teachers into the system.
The expected number of students in the next 5 years is demonstrated in the graph below
Figure 3.3 Total enrollments in Topica- e-learning courses
In the next five years, the company aims to enroll over 250,000 students from Vietnam, the Philippines, Thailand, and Indonesia into its system Since establishing offices in the Philippines, Thailand, and Indonesia in 2016, TOPICA has focused on introducing its products to the global market and achieving international quality standards Following the success of its Thai classes, TOPICA Native is now advancing the Indo200 project, which includes an Indo language training class.
In the near future, the project will continue with phrase two – Training particularly about sale script for Admission Counselor team to improve sales performance in these foreign markets
Topica Native IndoTopica Native ThailandTopica Native VietNamTopica Uni IndoTopica Uni PhillipinesTopica Uni VietNam
Factors affecting Sales Performance
Numerous internal and external environmental factors influence a company's sales volume, as highlighted in existing theoretical literature This thesis aims to evaluate these factors specifically for TOPICAEducational Corporation Key internal factors include pricing, product quality, distribution channels, and promotional strategies, while external factors encompass natural, economic, technological, political-legal influences, and competitive dynamics.
The global financial and economic crises have significantly impacted the company's sales performance, particularly due to the reliance on foreign currency to pay teachers and lecturers recruited from abroad Additionally, TOPICA's partnerships with organizations in the United States, Canada, Thailand, Indonesia, Singapore, and the Philippines have increased the demand for US dollars in frequent transactions As a result, the company faces challenges from fluctuations in currency exchange rates.
In 2015, Beijing's decision to devalue the Yuan against the US dollar raised concerns of a potential currency war, prompting fears that other countries might lower their currencies to counteract the negative effects on exports This move particularly angered economies like the US, which had seen its currency appreciate against major global currencies In response, Vietnam widened the dong's trading band against the US dollar, allowing for further depreciation Consequently, Topica experienced a decline in sales volume in 2015, primarily due to rising labor and production costs, as highlighted in Topica Native's financial report.
The instability of the domestic business environment significantly impacts company sales performance, with 28,894 companies declaring bankruptcy in the first quarter of 2016, as reported by the General Statistics Office (GSO) Vu Tien Loc, president of VCCI, highlights that current economic policies directly affect company operations, particularly sales He notes that rising transportation and production costs, along with increased minimum wages and social insurance policies, place a heavy burden on firms Additionally, market interest rates are two to three times higher than those in neighboring countries, complicating access to business loans for companies This situation arises from poorly managed bad debts, leading banks to increase risk provisions Furthermore, the government's reliance on bonds to address the budget deficit prevents interest rates from decreasing, making it particularly challenging for startups like Topica to secure bank loans.
The high production, labor, and interest costs associated with TOPICA's products and services contribute to elevated pricing, making it challenging for the company to compete effectively against its rivals.
3.4.1.2Social Beliefs and Consumer behavior
Age distribution significantly impacts revenue growth, as highlighted by a study from TOPICA’s 4H team, which found that targeting the older population with increased disposable income could boost revenues by up to 10 percent Notably, 75 percent of students enrolled in TOPICA’s programs are over 35 years old, underscoring the importance of this demographic.
Understanding consumer behavior and spending habits is essential for TOPICA to effectively meet customer needs By offering various fee levels for their teaching systems, TOPICA allows students to select affordable options The integration of online courses from leading universities via the Coursera platform enhances TOPICA's mission to provide high-quality, affordable education to underserved students, especially in emerging markets In the scaled-up phase, thousands of students are anticipated to pay tuition under USD 1,000 per year, which includes all content, tutoring, support services, exams, and credits This tuition is significantly lower—approximately one-fifth to one-twentieth—of what US online degree programs charge, while still delivering world-class content and services, resulting in impressive retention rates.
Social belief plays a crucial role in this context, as an increasing number of students engage with the system when TOPICA receives positive feedback from their satisfied customers Establishing a strong brand image can significantly enhance sales opportunities.
TOPICA Edtech Corporation operates under the regulations of the Vietnamese government, benefiting from a favorable political and economic environment for the software and e-learning industries Established alongside the ruling party's rise to power, TOPICA adheres to government policies, including Decision No.128/2000/QD-TTg, which offers software companies a reduced enterprise income tax rate of 10% and various tax incentives The company has developed 12 software systems and over 300 management processes to enhance online education, providing support for both trainees and lecturers while monitoring student engagement and performance Additionally, TOPICA incorporates innovative technologies, such as 3D reproduction, into its curriculum for subjects like microeconomics and corporate law.
The Vietnamese government's efforts to liberalize foreign trade have opened up opportunities for companies to engage in export business and participate in the global economy With a 0 percent VAT on exports, businesses can effectively reach international markets However, high tariffs on imported goods pose challenges, forcing companies to raise prices and making it difficult to compete, especially since most of their technology equipment is sourced from abroad.
In overall, the Vietnamese government has been doing its level best in creating conducive atmosphere for the development of e-learning providers and TOPICAis one of them
In the competitive landscape of Vietnam's e-learning industry, the rise in the number of firms and their market strengths presents significant opportunities for investors As a promising market, Vietnam continues to attract attention from those looking to provide innovative e-learning solutions.
Technology significantly influences sales strategies, particularly in the Edtech sector, as seen with companies like TOPICA While competition among service providers is a challenge, the rapid pace of technological change poses a greater hurdle for e-education providers TOPICA has developed 12 software systems and over 300 management processes that enhance classroom experiences and support trainees, ensuring they stay engaged and motivated Their platforms, such as TOPICANative and Uni, include features that remind lecturers to respond promptly to student inquiries and track trainee attendance According to CEO Mr Tuan, online marketing strategies become outdated every 12 months, training content requires updates every two years, and comprehensive upgrades to training methods are necessary every three years TOPICA prioritizes advanced technology as a key competitive advantage in the e-learning market.
The online education sector, particularly at TOPICA, faces intense competition in attracting skilled professionals Like traditional education, the success of online training heavily relies on a highly qualified technical team However, there remains a significant shortage of talented individuals capable of creating top-quality technologies and training programs.
Online training goes beyond merely recording lectures or digitizing textbooks, as highlighted by Chung Mr Tuan notes that TOPICA boasts a remarkable 79% retention rate of students after their first year, significantly surpassing the retention rates of online programs in the U.S., which ranged from 14% to 93% in 2012, according to AskForEducation Additionally, HR magazine reported in August 2013 that only 4% of participants in massive open online courses (MOOCs) completed their studies TOPICA enhances its educational offerings through innovative technologies, including 3D simulations for subjects like microeconomics and corporate law Their lectures, discussions, and assessments are accessible on smartphones, tablets, and even through Internet protocol television (IPTV).
Price is a crucial element of the marketing mix, directly influencing a company's profitability Careful pricing strategies are essential, as both undercharging and overcharging can lead to lost margins or sales Service providers must consider the price elasticity of their offerings, particularly in the tutoring industry, where price-sensitive customers, primarily students with monthly incomes ranging from 2 to 7 million VND, are prevalent Competing on price can yield positive results in this sector Conversely, middle and upper-class customers exhibit less price sensitivity; they prioritize course quality and flexibility over cost For this demographic, minor price changes become less impactful when investing in higher-priced services, indicating that as the class level and service costs increase, so does the willingness to pay for tutoring fees.
RECOMMENDATIONS AND CONCLUSIONS
Conclusions
This thesis aims to identify the internal and external environmental factors influencing the sales volume of TOPICA Educational Provider and to analyze the dynamics of its sales department The primary objective is to explore potential improvements that TOPICA Edtech Corporation can implement for enhanced sales performance and to outline the methods for these improvements To achieve this, structured questionnaires and interviews were conducted, and the collected data was thoroughly analyzed and discussed The research findings lead to several key conclusions.
Over the past four years, the company's sales have steadily increased, driven by a growing number of students enrolling in its e-learning system and an expanded range of services and products Successful projects aimed at boosting sales have contributed to this growth, with planned and actual sales figures aligning closely, showcasing the accurate predictions made by TOPICA's market professionals Notably, the financial year 2015 marked a significant milestone for TOPICA, with actual sales soaring to 700 million dong, surpassing initial estimates As a result, TOPICA has established itself as a reputable brand in the online education industry.
The impressive growth of e-learning providers like TOPICA in Vietnam can be attributed to the supportive external environment fostered by the Vietnamese government Political stability and a favorable legal framework have created conditions that enable TOPICA to attract foreign investments Additionally, Vietnam boasts one of the most efficient Internet connection systems in Asia, facilitating the delivery of high-quality courses However, the rapid technological advancements and increasing market competition present significant challenges for TOPICA as it strives to achieve its long-term goals.
The study reveals that TOPICA's course prices remain high due to factors such as elevated salary costs, monthly technical maintenance expenses, taxes on profits, and other operational costs Additionally, the reliance on foreign teachers exposes the company to fluctuations in foreign exchange rates To address these challenges, TOPICA adjusts tutoring fees monthly in response to changes in the e-learning market and updates from partners The company is also taking steps to categorize its customer segments, enabling it to offer courses at suitable price points to meet diverse customer needs It is crucial for TOPICA’s admissions counselors to have a thorough understanding of the company's pricing policies to effectively build trust and persuade potential customers.
TOPICA offers online education services that can be classified as intangible products Research indicates that the quality of TOPICA’s services meets customer expectations, largely due to the high qualifications and practical experience of their lecturers and Native English teachers Additionally, TOPICA is committed to innovating and developing proprietary technology to attract more customers The flexibility in scheduling is another key factor that makes these courses appealing to learners.
As far as promotion is concerned, TOPICA promotes its products and services via Advertising The company advertises for their newly introduced courses through
The company aims to build a comprehensive image of its courses and reach a wider audience through accessible platforms Although TV advertising can effectively showcase these offerings, its high costs often deter the company from utilizing this medium Instead, the company leverages online advertising and prominent digital outlets such as Forbes Vietnam, dantri.com, vnexpress.net, vietnamnet.vn, Thanh Nien News, and 24h.com.vn to effectively promote its services.
The admissions counselors at TOPICA lack in-depth market knowledge and insights into competitors' products, hindering the company's ability to gather essential market information Most staff members do not possess a background in marketing or sales, resulting in a deficiency in crucial selling skills Additionally, TOPICA has not prioritized effective training for its sales force, further limiting their potential to succeed in a competitive landscape.
Recommendations for TOPICA Corporation
Based on the given conclusions, the following recommendations are forwarded
4.2.1 Improve the quality of Human Resource
TOPICA needs to revise its selection criteria for admissions consultants, focusing on candidates with substantial experience and educational backgrounds in marketing and sales to secure a sustainable competitive advantage Currently, most consultants come from economics and management backgrounds, which are not directly related to sales and marketing Additionally, hiring commission-based consultants should prioritize their past experiences, as those with relevant experience are better equipped to tackle complex challenges and adapt to industry changes Emphasizing adaptability during the interview process is crucial to ensure the recruitment of the right talent.
Effective training in sales involves clearly presenting essential knowledge about products, services, and customer needs Commission consultants should provide an overview of courses and address potential technical issues customers may encounter Notably, with 50 percent of TOPICAchange courses changing monthly, sales staff must stay updated on these modifications to effectively address client requirements and enhance customer satisfaction.
To foster an engaged sales force, the company must recognize and reward enthusiastic and dedicated employees for their performance Traditional incentive systems and compensation alone do not significantly enhance engagement Instead, creating a professional working environment that promotes personal and professional development is essential for helping sales staff achieve higher salaries and positions For instance, the most productive sales personnel should earn salaries comparable to those of sales managers Additionally, implementing a biannual voting system to honor outstanding staff members with top ranks in the sales department can further motivate and engage the team.
4.2.2 Improve the quality of products and services
To enhance online learner engagement and comprehension, it is essential to improve the quality of online learning materials Course designers should focus on simplifying content by eliminating unnecessary images, text, and graphics, while selecting appropriate fonts, colors, and high-quality, relevant images Additionally, complex information should be complemented with graphs and charts, and the use of headings and bullet points can aid in proper structuring Furthermore, maintaining consistency and cohesiveness is crucial in designing effective online content.
To improve the quality of education, TOPICA must implement effective policies for recruiting, preparing, and retaining qualified teachers and lecturers Retaining high-quality graduate-level educators is crucial, particularly in fields experiencing significant shortages, such as law, economic law, Information and Communication Technology, and English as a second language It is essential to recognize that the challenge of retaining qualified educators is much more complex than simply recruiting new ones.
To enhance the effectiveness of TOPICA’s products and services in Thailand, Indonesia, and the Philippines, where internet connectivity can be unstable, it is essential to frequently upgrade the online class server interface Collaboration between technical staff and developers is crucial for exploring improvements to TOPICA’s domestic websites and online systems, integrating user feedback, and discussing architectural choices Additionally, conducting monthly system maintenance checks will ensure optimal operation, ultimately reducing the number of students disconnected from online classes.
4.2.3 Creating the tactics to find customers by marketing
In today's digital landscape, traditional marketing methods are becoming less effective, prompting TOPICA to recognize the significance of content marketing This strategy offers numerous advantages, including pre-qualified leads, reduced marketing expenses, increased conversion rates, and enhanced customer satisfaction Once content is created, it should be published online for easy access by users To optimize the effectiveness of content marketing, various tools can be utilized.
1 Search: Turning up on page one of Google is not something that happens on day one So this needs attention from day one launch of TOPICA website But it has to be done It’s called an SEO process and it is driven in part by content and social discovery
2 Social: Turning up a Twitter stream or a Facebook share and news feed is another way of being discovered It can be seen that will only happen if the content is good and TOPICA have a large number ò fans and followers sharing this content
3 Paid: TOPICA must calculate the fees pay for some supplier In this case, these include Facebook ads and Google Ad Words
4 Email: No one can discover TOPICA’s information on email unless their friend shares the content by forwarding the email
5 Word of mouth: This is the powerful way to help TOPICA be discovered because someone appreciate TOPICA’s services and products will good enough to be recommended or mentioned
TOPICA should clearly define the objectives for each course, focus on its target audience, ensure the design and content are well-crafted, and emphasize the advantages of e-learning through TOPICANative and TOPICAUni.
4.2.4 Pricing the fees for the e-learning packages competitively
In addition to content development and target audience research, determining a competitive price point for courses is crucial for TOPICA's success Conducting thorough research to estimate the potential customer base and analyzing the pricing strategies of competitors offering similar online courses will help establish an effective pricing strategy.
The pricing structure for TOPICANative English courses should be determined by the estimated guided learning hours per user, rather than a fixed fee This approach allows online English learners to choose from a variety of affordable options that suit their individual needs.
TOPICAUni courses available for download or upload to the virtual learner management system should implement a fee structure Providers can offer students a license for unlimited access, with fees determined by the value of each course.
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