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Tiêu đề Some Recommendations To Develop The Market Share, The Case Of ILA Vietnam In Hanoi
Tác giả Tran Thuy Linh
Người hướng dẫn Dr. Nguyen Thi Phi Nga
Trường học Vietnam National University, Hanoi School of Business
Chuyên ngành Business Administration
Thể loại Master of Business Administration Thesis
Năm xuất bản 2011
Thành phố Hanoi
Định dạng
Số trang 91
Dung lượng 871,04 KB

Cấu trúc

  • 1. Research Problem (7)
  • 2. Objective and aim of thesis (7)
  • 3. Scope and scale of thesis (8)
  • 4. Methodology (8)
  • 5. Data resources (8)
  • CHAPTER 1: LITERATURE REVIEW (10)
    • 1.1 Market share (10)
      • 1.1.1. Definition (10)
      • 1.1.2 Ways to increase market share (11)
    • 1.2 Consumer decision making process (12)
      • 1.2.1 Information search (12)
      • 1.2.2 Source of information (14)
      • 1.2.3 Information search on the Internet (15)
    • 1.3 Customer Value, Satisfaction, and Loyalty (19)
      • 1.3.1. Customer Value (20)
      • 1.3.2. Total Customer Satisfaction (23)
        • 1.3.2.1. Customer expectation (24)
        • 1.3.2.2. Measuring Satisfaction (24)
    • 1.4. Marketing mix (25)
      • 1.4.1 The product (25)
      • 1.4.2 Promotion mix (33)
        • 1.4.2.1 Advertising (34)
        • 1.4.2.2 Sales promotion (37)
    • 2.2. Business analysis (50)
      • 2.2.1. Analysis of visitor and sources of information channel (50)
      • 2.2.3. Product analysis and comparison (53)
      • 2.2.3. New sales analysis (61)
      • 2.2.4. Re-enrolment and customers‟ loyalty analysis (63)
      • 2.2.5 Promotion mix analysis (64)
      • 2.2.6. Place (69)
  • CHAPTER 3: CONCLUSION AND RECOMMENDATIONS (73)
    • 3.1 Conclusion (73)
    • 3.2 Recommendations (75)
      • 3.2.1 The information search on the Internet (75)
      • 3.2.2 Building Customer Value, Satisfaction, and Loyalty (76)
      • 3.2.3. Marketing mix (79)
    • 3.1 Product (79)
    • 3.2 Promotion mix (83)
    • 3.3. Place (87)

Nội dung

Research Problem

ILA Vietnam, a renowned English training center located in Ho Chi Minh City, is highly recommended by students and alumni for its quality education With six centers in Ho Chi Minh City, along with additional locations in Vung Tau, Da Nang, and Hanoi, ILA offers accessible English language training for everyone.

Established in 2007, the Hanoi Training Centre faces significant challenges in market share development, struggling to achieve profitability even after more than three years of operation.

ILA Hanoi faces significant competition from well-established institutions like Apollo, Language Link, ACET, and the British Council, which are already familiar to Hanoians Additionally, ILA Vietnam's marketing strategy remains uniform across both northern and southern regions, limiting its local appeal and recognition.

This thesis aims to enhance ILA Vietnam's market share and profitability in Hanoi from 2011 to 2016 Key objectives include analyzing customer feedback on ILA's products and marketing strategies, assessing the company's business performance in Hanoi, identifying issues within the Hanoi Centre, and providing recommendations for market share growth through an effective marketing mix tailored to the Hanoi market.

Objective and aim of thesis

The research aims to identify key issues that can enhance market share and increase profitability for ILA Vietnam in Hanoi during the 2011-2016 period The objectives will focus on uncovering insights that drive growth and improve competitive positioning.

- Study about marketing performance of ILA Hanoi

- Find out the problem occur in the ILA Language training centre in Hanoi

- Study comments of customers in Hanoi about ILA products and marketing activities then build up the suitable marketing program to increase market share

- Give the recommendations to develop the market share

Scope and scale of thesis

This research will be conducted based on some major objects are:

- Current customers of ILA Vietnam in Hanoi

- Visit customers, students of University, secondary and high schools, parents of primary students

- Staffs and manager in Hanoi

Methodology

The research thesis employed various methods, including surveys of potential and existing customers, ILA staff, and analysis of company reports A hundred customers were surveyed to gather insights on their English study needs and the sources they used to choose an English training center Company reports provided data on business performance metrics such as sales figures, visitor numbers, and student enrollment Current students were also surveyed regarding their satisfaction with courses, customer service, teaching materials, and instructors, as well as their likelihood to recommend ILA to others Customer feedback was utilized to evaluate the effectiveness of ILA's marketing efforts in Hanoi, indicating that a more tailored marketing strategy could enhance customer attraction and expand market share.

Data resources

Primary data for the research was collected through direct interviews and discussions with customers, students, visitors, parents of students, staff, and managers of ILA Additionally, secondary data sources included books, newspapers, internal and external reports, as well as online resources.

LITERATURE REVIEW

Market share

There were some definitions of market share as the following:

"Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity."

By Farris, Paul W.; Neil T Bendle; Phillip E Pfeifer; David J Reibstein (2010)

Marketing Metrics: The Definitive Guide to Measuring Marketing Performance

Market share refers to the percentage of total sales within an industry that a specific company achieves over a defined time frame It is calculated by dividing the company's sales by the industry's total sales during that same period This metric provides insight into the company's size relative to its market and competitors.

“Market share is the percentage of a company‟s sales of a particular product or service in a given area It can be calculated in terms of revenue or of units sold.”

By Author(s) from Penetrating.net

Market share refers to the proportion of loyal customers that a business has successfully retained over an extended period.

Loyal customers represent the true market share of companies, distinguishing them from other definitions of customer loyalty This perspective emphasizes the critical role that these dedicated consumers play in driving business success.

The current thesis emphasizes that understanding consumer behavior is crucial for fostering customer loyalty, which in turn can significantly enhance market share This focus on consumer loyalty forms the core of the research presented in the thesis.

Different definitions of market share involve various calculations, but they all revolve around the same concept: the portion of the market owned by a company, likened to a "pie." The key focus is on strategies to expand this "pie" and increase market share.

1.1.2 Ways to increase market share

There were some ways to increase the market share as the following:

- Try to sell more to existing customer: encourage customer to buy more product and higher frequency

To effectively win back old customers, it is crucial to understand the reasons behind their departure Common factors include a diminished need for the product, high pricing, dissatisfaction with the service or product quality, and switching to competitors By addressing these issues, businesses can tailor their strategies to re-engage former customers and improve retention.

- Try to sell effectively to similar customer by using data to telesales, send mail, advertising, word-of-mouth…

- Use other channels to sell: direct sales, whole sales, online sales or e- commerce

- Find the new market: at other province, other country

- Develop the new product for same market

Expanding a business can be risky and costly, requiring significant capital and staffing However, focusing on existing customers within the same market is a strategic approach to build loyalty and increase sales Since the company already has established relationships with these customers, it becomes easier to gauge their satisfaction and enhance their loyalty Additionally, developing new products for an existing market is often more cost-effective than entering a new market.

In order to developing the market share for the company in the safer way, the marketer had to study the customer need and customer buying process.

Consumer decision making process

The consumer decision-making process involves several key stages: need recognition, information search, alternative evaluation and selection, outlet selection and purchase, and post-purchase evaluation At the lowest level of purchase involvement, nominal decisions occur, where a recognized problem leads to the immediate recall of a preferred brand, resulting in a purchase with minimal post-purchase evaluation As consumers transition from limited to extended decision-making, the depth of information search increases, alternative evaluations become more comprehensive, and post-purchase assessments are conducted more thoroughly.

In this thesis, the author would like using the theory of information search in analysing the promotion mix so it was only information search stage focused

When faced with problems, individuals typically engage in both internal and external searches for information related to products or services Internal searches draw upon long-term memory to recall satisfactory solutions and the characteristics of potential options In contrast, external searches involve evaluating factors such as price ranges, familiar manufacturers, and performance criteria, which may be restricted by one or two specific criteria.

After ten years of reliable use, Ms Lan's fan broke down, prompting her to purchase a new one for the summer Despite the fan's age, her satisfaction with the old product led her to immediately seek out the same brand at Thong Nhat company, bypassing any search for alternatives This highlights how positive experiences with previous products can significantly influence consumer purchasing decisions.

Consumers utilize different sources of information when making purchasing decisions For instance, one individual opted for a new toothpaste product that included a complimentary toothbrush, demonstrating a decision made with limited information search due to the perceived added value In contrast, a mother seeking a new formula milk powder for her child engaged in extensive research, considering nutritional content, pricing, and peer reviews before ultimately selecting the most affordable option that offered comparable nutrition This highlights the varying levels of information search consumers undertake based on their specific needs and circumstances.

- The opinions, attitudes, behaviors, and feelings of friends, neighbours, relatives, and increasingly strangers contacted on the internet

- Professional information that was provided in articles, books, websites, and personal contacts

- Direct experiences with the product through inspection, trial, or observation

- Marketer-generated information presented in advertisements, websites, and displays and by sales personnel

Deliberate external search also occurs in the absence of problem recognition

People often engage in ongoing information searches not only for potential future needs but also for the enjoyment of the process itself For instance, tennis enthusiasts frequently seek out information about tennis products even when they have no issues with their current equipment This pursuit may include reading advertisements in tennis magazines, visiting sports shops, watching professional matches on TV, or interacting with fellow players and local professionals Such activities offer both enjoyment and valuable insights for future reference.

There are two primary types of information sources: internal and external For instance, the mother relied on external information, while the woman purchasing a fan utilized internal information Understanding these sources is crucial for effective decision-making.

- Memory of past searches, personal experiences, and low-involvement learning

- Personal sources, such as friends, family, and other

- Independent sources, such as magazines, consumer groups, and government agencies

- Marketing sources, such as sales personnel, websites, and advertising

- Experiential sources, such as inspection or product trial

These sources were shown in Figure 1-4 Consumers decided how many and which sources of information to use

Figure 1-2 Information sources for Purchase Decision

Consumers primarily rely on internal information, which encompasses past searches and personal experiences In addition to these internal sources, they also seek external information through direct product experiences, recommendations from friends, low-involvement learning, marketing materials, and personal contacts.

Marketing messages, while just one of five potential sources of information, significantly impacted all other sources by highlighting product characteristics and availability in the market As a result of ongoing marketing activities, customers increasingly turned to non-marketing sources for information.

1.2.3 Information search on the Internet

The internet was a new consumer information search in the communication era In the nineteen century, one expert had a prediction that:

The emergence of advanced price-and-quality search engines is set to revolutionize consumer decision-making, benefiting shoppers while posing challenges for companies and investors For a reasonable annual membership fee, these online services will enable consumers to easily find the lowest prices on high-value products and services worldwide In this new landscape, informed consumers will dominate the market, making purchasing decisions with just a click.

Pingdom conducted an analysis using various online sources to gather facts and figures about Internet and email usage, as well as social networks They explored key questions, including the number of newly launched websites and the total number of Internet and email users Below are some significant statistics that Pingdom.com uncovered.

107 trillion – Emails were sent in 2010

294 billion – Emails were sent a day, on the average

1.88 billion – the number of people using email all over the world

480 million – New email users counted from 2009 89.1% – Junk emails

262 billion – junk emails per day (suppose 89% emails were junk mail)

2.9 billion – Email accounts over the world 25% – Email accounts were organizational or company‟s one

255 million – websites up to December 2010

 The Internet users 1.97 billion – over the world (up to June, 2010)

825.1million – the Internet users in Asia

475.1 million – the internet users in Europe

266.2 million– The internet users in North American 204.7 million – the number of users in Latin America/ Caribbean 110.9 million – the number of users in Africa

63.2 million – the number of users in Mid-East 21.3 million – the number of users in Oceania countries

25 billion – “tweet” on Twitter in 2010

100 million – new Twitter accounts in 2010

175 million – new Twitter users in 9, 2010

7.7 million – followers @ladygaga (Lady Gaga, Twitter)

250 million – new Facebook accounts in 2010

30 billion – number of sharing (link, note, pictures…) on Facebook each month 70% – Facebook users out of American‟s border

20 million – Facebook‟s applicant had been set up each day

2 billion – watched videos on Youtube each day

35 hours – duration of uploaded videos in one minute

186 –average number of online videos online watched by one person (in the USA) 84% – internet users who watched video online (in the USA)

14% – internet users uploaded videos (in the USA) More than 2 billion –watched videos on Facebook each month

20 million – Video uploaded on Facebook each month

5 billion – on Flickr (up to 9, 2010)

More than 3000 – pictures that uploaded on Flickr each minute

130 million – picture uploaded on Flickr each month

30 billion – uploaded pictures on Facebook each month

36 million – pictures was uploaded on Facebook each year Source: www.genk.vn

Asia leads the world in internet users, experiencing a remarkable development rate exceeding 14%, making it a prime market for online business Social networks like Facebook and Twitter have rapidly expanded, facilitating easier and more frequent advertising opportunities for companies through their own accounts Notably, Vietnam has demonstrated the highest growth rate in this digital landscape, as highlighted by research from Cimego Company.

Key Asian countries exhibit three distinct levels of internet penetration Developed nations such as South Korea, Japan, Singapore, Hong Kong, Taiwan, and Malaysia have internet usage rates between 60-80%, showing a gradual annual increase In contrast, emerging markets like China, Vietnam, the Philippines, and Thailand experience higher growth rates, with internet penetration around 20-30% Meanwhile, developing markets such as Laos and Cambodia, along with populous countries like Indonesia and India, typically report internet usage below 10% Official sources indicate there are currently 27 million internet users in these regions.

Vietnam stands out in Southeast Asia, surpassing Thailand and Malaysia in internet growth It is the fastest-growing internet nation in the region and ranks among the highest globally in terms of growth rates.

Since 2000, Vietnam has experienced a remarkable increase in internet users, growing by approximately 120 times A decade ago, the country's internet penetration lagged significantly behind many other Asian nations However, Vietnam has made substantial progress, and internet usage now aligns with that of other key emerging markets.

Source: Cimigo, Vietnam NetCitizen Report, 2011

Research indicates that Vietnam has experienced significant growth in internet usage, attracting major corporations seeking profitable opportunities Notably, Facebook and Google are prime examples of companies capitalizing on this burgeoning market.

In general, internet search had become an important source of information in the decision making process

Customer Value, Satisfaction, and Loyalty

Customers should be the focal point of any company, serving as the primary profit center Instead of managers holding the most power, it is the customers who drive business success To thrive, companies must identify what customers value, understand how to meet their needs, and cultivate loyalty among them.

In today's digital age, consumers are more informed and empowered than ever, utilizing various tools to evaluate companies and make the best choices Customers prioritize maximizing value based on criteria such as product cost and overall benefits They assess which offers provide the greatest value before making a decision Philip Kotler defines total customer delivered value, highlighting its significance in understanding consumer behavior.

Total customer value (Product, service, personal and image values )

Minus Total customer cost (Money, time, energy and psychic costs) equals Customer delivered value (Profit to the customer)

Customer delivered value is defined as the difference between the total value of benefits and the costs associated with a product or service, encompassing not only monetary expenses but also time, energy, and psychological costs For instance, when selecting an educational service such as kindergarten or primary school, parents must carefully evaluate options to find a school that offers the best services at an appropriate price Typically, higher tuition fees correlate with better quality, while lower fees may indicate average service This decision-making process requires parents to invest significant time and mental effort to identify the most suitable option.

Total customer value was defined as the perceived monetary value of the package of economic, functional, and psychological benefits customers expect from a product

Total customer cost encompasses all expenses that customers anticipate incurring while evaluating, acquiring, utilizing, and disposing of a market offering This includes not only monetary costs but also the time, energy, and psychological effort involved in the process.

Customer delivered value is determined by the difference between the benefits received and the costs incurred compared to alternative options To enhance this value, marketers can either increase functional or emotional benefits or decrease various types of costs.

Applying value concepts to decision-making theory can enhance success in selling to customers Companies can improve their offerings by increasing total customer value through enhancements in products, services, personnel, and brand image Additionally, they can lower nonmonetary costs by minimizing time, energy, and psychological burdens on customers Lastly, reducing the monetary cost of products for buyers can further strengthen the overall value proposition.

Vietnamese consumers have long been familiar with Hitachi and Electrolux washing machines, with Electrolux recognized for its superior brand image, durability, lower repair costs, and better fabric care A housewife faced with replacing her broken washing machine considered both brands Despite Electrolux's advantages, including 24/7 customer support and energy efficiency, she ultimately chose the more affordable Hitachi model, as the price difference outweighed the additional value offered by Electrolux.

Electrolux's pricing strategy must balance between customer perception and production costs, with an ideal price range set between 10 million and 15 million dong Charging below 10 million dong would result in losses, while exceeding 15 million dong risks losing market competitiveness To enhance sales, Electrolux should focus on delivering greater customer value compared to competitors, while their sales team can also present alternative options to potential buyers.

To achieve the best long-term profits, it is essential for buyers to look beyond just the lowest price Sales representatives must effectively communicate to the buyer's manager that focusing solely on price can lead to diminished returns over time.

- The salesperson's task was to convince other people in the customer family that Elextrolux‟s product could deliver greater customer value

- The other product operation needed higher water level and electricity cost

Through this example, the conclusion was that consumers made choices that gave more weight to their personal benefit than to the company's benefit in some occations

The Customer Received Value framework is a versatile tool for sales professionals, guiding them to assess how customers perceive value and cost in comparison to competitors Initially, salespeople must evaluate customer perceptions, and if their product or service falls short, they can either enhance total customer value or reduce total customer cost To boost customer value, they can improve product offerings, services, personnel, and brand image If increasing value proves ineffective, they can seek company support to lower buyer costs by reducing prices, streamlining ordering and delivery, or providing warranties.

Consumers exhibit varying levels of loyalty to specific brands, stores, and companies, as seen in northern Vietnam where Honda motorbikes dominate due to their high customer value Honda's popularity stems from factors such as ease of use, affordable replacement parts, durability, and strong resale potential This has allowed Honda to establish a significant competitive advantage over newer entrants in the market by consistently delivering exceptional customer value.

Philip Kotler and his colleagues developed a theory of customer satisfaction, which posits that a buyer's satisfaction post-purchase is influenced by how the product's performance aligns with their expectations.

Customer satisfaction is defined as the emotional response a person experiences after comparing a product's perceived performance to their expectations When a product's performance does not meet expectations, the customer feels dissatisfied Conversely, if the performance aligns with their expectations, the customer is satisfied Additionally, when the performance surpasses expectations, the customer experiences a high level of satisfaction or delight.

Companies often encounter a trade-off between enhancing customer satisfaction and maintaining profitability While lowering prices or improving services can boost customer satisfaction, it may lead to reduced profits Many businesses prioritize profit maximization over customer contentment, influenced by various stakeholders such as employees, dealers, suppliers, and shareholders who favor increasing overall value Consequently, companies typically opt for a balanced approach, settling for an adequate level of customer satisfaction rather than striving for the highest possible.

Customer satisfaction is primarily driven by their expectations, which are shaped by past purchasing experiences, recommendations from friends and family, and the promises made by marketers and competitors If marketers set expectations too high, it can lead to buyer disappointment, while setting them too low may fail to attract sufficient customers Therefore, companies must strategically elevate expectations and consistently deliver quality performance to achieve success in the market.

Marketing mix

The product is the foundational element of the marketing mix, representing what a company offers to its customers In "Principles of Marketing," Kotler and his colleagues emphasize the significance of the product concept and its underlying theories, highlighting its critical role in defining a company's offerings and strategies.

In this thesis, the author chose some criteria that needed for the company to apply in analysis In the book, Kortler said that:

A product encompasses any item or service available in the market that can attract attention, be acquired, utilized, or consumed to fulfill a want or need This broad definition includes tangible goods, services, individuals, locations, organizations, and concepts.

In this definition, he mentioned not only tangible goods but also the services or intangible things like ideas

Services are unique offerings characterized by activities, benefits, or satisfactions provided for sale Unlike physical products, services are intangible and do not lead to ownership of any tangible items.

In order to understand why customers were buying products, the companies had to know well about three level of product They were:

 Core product: The problem-solving services or core benefits that consumers were really buying when they obtain a product

 Actual products: could have as many as five characteristics: a quality level, product and service features, styling, a brand name and packaging

 Augmented product: were build around the core and actual products by offering additional consumer services and benefits

The core product represents the essential benefits that consumers seek, forming the foundation of the total product Product planners must then transform this core benefit into a tangible product Lastly, to enhance the offering, they should develop an augmented product that includes additional services and benefits for consumers.

Because of the field of case study was in service industry so the author would like to have an overview about the theory of service in the next part

“Service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything.”

Philip Kotler, Principles of Marketing, 4 th edition

Examples of service-based activities include renting a hotel room, depositing money in a bank, traveling by ferry or airplane, visiting a doctor, getting a haircut, having a car repaired, watching professional sports, seeing a movie, using dry cleaning services, and seeking legal advice from a solicitor.

Figure 1-5: The tangible-intangible continuum of goods and services

The illustration demonstrates a spectrum ranging from tangible products, such as soap and cars, to intangible services like consulting and teaching It highlights the blend of goods and supplementary services that exist between these two categories, showcasing the diverse nature of products available in the market.

There were five characteristic of service: intangibility, inseparability, variability, perishability and lack of ownership The thesis would like to discuss about each of those characteristics

Soap soft drink detergent car cosmetic fast food ad agency airline financial service consulting teaching

Services are inherently intangible, making them difficult to display or experience prior to purchase, which leads to uncertainty about the outcome For example, a customer cannot assess the quality of a haircut until it is completed To navigate this uncertainty, customers rely on various signals, including the service environment, staff, equipment, promotional materials, and pricing, to gauge service quality Consequently, service providers must effectively "manage the evidence" to influence customer perceptions and build trust.

Unlike goods, which can be stored and consumed later, services are inherently tied to their providers and are produced and consumed simultaneously While customers engage with services, they actively participate in the process.

3 Variability Because people involved in productions and consumption, there were potential for variability This characteristic proved that that the quality of services depended on who provides them, as well as when, where and how they were provided Because of these factors, service quality was difficult to control

4 Perishability This was a major characteristic of service Perishability was that services could not be stored for later sale or use The very common example was public transportation in the rush-hour or holidays The demand of travelling in this period of time was increased sharply that coursed the transportation companies had to arrange vehicles to serve customers (short time) but it would not be used in the normal time (almost the time of the year)

5 Lack of ownership When buying a good such as computer or car, people owned this and could sell it if they wished to However, buying a service, customer only used this in a limited time and no quality ownerships

In response to the evolving market and changing customer needs, the company recognized the necessity of developing new products to fulfill these demands and replace discontinued items This article will explore the process of new product development to better understand its significance in meeting customer expectations.

New product development goes beyond mere invention; it involves a systematic process of innovation that focuses on identifying, creating, and delivering unique value to customers, as defined by Philip Kotler Companies can obtain new products through two primary methods: acquisition, where they purchase existing brands, patents, or licenses, often due to the high costs associated with developing new products, and in-house development through their research and development departments New products can encompass original creations, improvements, modifications, and entirely new brands developed internally.

Because of the purpose of the thesis, author focused only in the second way of developing a new product and how to create and market new products

The new-product development process for finding and growing new products consists of nine main steps

Figure 1-6: Steps in new product development process

The company needed having a strategy for developing a new product because a well-definded strategy would guide staffs how to implement, what to focus on and what the managers wanted

In order to find a few good ideas, the company had to generate from thousands ones which came from many sources such as internal sources, customers, competitors, distributors and suppliers

- The force of internal source could be executives, scientists, engineers, designers, manufacturing and salespeople Toyota was a good example of benefited from its internal ideas

Commercialisation Test marketing Product development Business analysis Marketing strategy development Concept development and testing

Idea screeningIdea generation New product strategy

Customers can provide valuable insights by expressing their wants and needs The key for companies is to actively listen to and observe their customers.

- Competitors tested their products and the company could see how they were going then learn from them What customers said about the competitors also was a good thing to consider

- Distributors, suppliers were close to the market, they knew what customers wanted and what could be changed

To streamline the idea selection process, the committee will eliminate poor concepts while retaining strong ones They will draft a comprehensive product description, identify the target market and competition, and provide preliminary estimates on market size, pricing, development timelines, manufacturing costs, and potential return on investment Finally, the committee will assess the ideas using established evaluation criteria.

Business analysis

This section provides an overview of the business analysis and customer satisfaction survey, focusing on sales, products, and marketing strategies It highlights how consumer behavior, particularly customer satisfaction and loyalty, reflects the company's performance, with sales figures indicating growth and seasonal trends in the education product market The subsequent product analysis compares the company's offerings with competitors, revealing customer preferences for English training products Additionally, survey results identify the strengths and weaknesses of the company's marketing efforts.

2.2.1 Analysis of visitor and sources of information channel

Visitors to ILA are individuals who inquire about English language courses, either through calls or in-person visits These inquiries serve as a vital source for the company's marketing efforts and play a crucial role in converting interest into sales The higher the number of inquiries about the courses, the greater the potential for increased sales for the company.

A high number of visitors correlates with increased sales, leading to greater revenue and profit for the company The volume of visitors reflects the effectiveness of marketing efforts The analysis focuses on visitor trends over the past three years, utilizing tables and charts for clear visual representation.

Table 2-1: Number of visitor from 2008 to2010

In 2008, the total number of visitors surpassed that of 2009, indicating a notable decline in visitor numbers the following year However, 2008 also recorded the peak attendance, highlighting its significance in visitor trends.

In 2010, a significant rise in the number of children enrolled in English courses was observed, attributed to economic recovery and increased parental investment in education ILA Hanoi gained popularity among parents of school-aged children seeking English language programs Conversely, the adult enrollment at ILA Hanoi experienced a decline, with a notable 31% reduction in attendance.

2008 and 2009 from 808 to 555 people And still on the trend, it was continuing down by 19 people in 2010 in comparing with 2009

In the next step, the thesis went straight to resources of information and marketing channel for customers to visit ILA

Table 2-2: Sources of information that customer knew ILA from

(Source: Visit report 2010; ILA Vietnam in Hanoi)

In 2010, a significant 72% of ILA's customers in Hanoi were referred by friends and relatives, with 1,121 out of 1,556 visitors coming through these recommendations This highlights the importance of leveraging word-of-mouth marketing to boost sales, indicating that efforts to increase customer referrals should be a priority for the business.

The second most effective channel for attracting customers to ILA was the Internet, accounting for 16% of the total customer base with 249 individuals While this group was smaller than the primary one, it highlighted the Internet's significance as a tool for brand expansion and information gathering Customers increasingly rely on online resources to research products and services before making purchases, a trend expected to accelerate in the future Marketers, including those at ILA Vietnam, are focusing on optimizing their online presence to boost revenue Additionally, traditional advertising methods, such as print and television, contributed around 10% of customers to ILA Hanoi Although these channels are not the primary drivers of customer acquisition, they play a crucial role in maintaining ILA's brand image in the minds of consumers.

The third channel remains unidentified, as many individuals were transferred from other ILA centers across Vietnam or were not included in the statistical data This group comprises 82 out of 1,556 individuals, accounting for approximately five percent The company should explore alternative methods to document and analyze this group effectively.

The final group comprised individuals who engaged with traditional marketing channels, specifically those who were influenced by articles in the press and advertisements on television This group included 41 individuals from print media and 29 from TV Despite significant annual investments in these channels, the effectiveness of these marketing strategies appeared to be lacking.

Following the analysis of visitor numbers and their information sources regarding ILA in Hanoi, the thesis transitions to a product analysis This section aims to uncover insights about the services offered.

In this section, the author compares the products of ILA Hanoi with those of its competitors, highlighting both similarities and differences This analysis aims to identify the strengths and weaknesses of each offering, providing valuable insights for potential customers.

In the theory part, according to definition of product, there were three level of product Applied in this English teaching product, the author defined as the following:

- The core product: teaching activities It solved the need of customers when they bought the service

- The actual product: English courses These courses were designed as many types and level to suite people

- Augmented product: teaching supports and customer service

Teaching is an intangible service, where customers receive only proof of payment rather than a physical product The true value of the service is realized when students participate in English classes at ILA This unique characteristic highlights the importance of the actual and augmented products in demonstrating service quality This article analyzes ILA's offerings and those of its competitors based on two key factors: the type of service provided and the support services available.

Bellow was the table of type of products

Table 2-3: Programme, schedule and fee of English course in ILA Hanoi

Seniors 11-15 yrs old and Elite 15-18 yrs old

English communication skill 18 yrs old and older

(Source: Sale department; ILA Vietnam in Hanoi)

ILA offers a diverse range of educational products catering to customers aged four and above, segmented into five age groups: 4-6 years, 6-11 years, 11-18 years, and adults Courses for children are primarily scheduled on weekends, while those for teenagers and adults take place on weekday evenings The duration of these courses ranges from 46 to 110 hours, requiring a commitment of 3 to 7 months, which can be seen as a significant time investment Consequently, the cost of these courses, ranging from $300 to $600, may deter potential customers who are unfamiliar with ILA Additionally, the lack of fixed intake dates and varying start and end times for each course can create uncertainty for new clients, making them hesitant to try a service that their friends and family have not yet experienced.

This article will compare the offerings of ILA's two main competitors in Hanoi, Language Link and Apollo centers Below are tables outlining their respective products.

Table 2-4: Programme, schedule and fee of English course in Apollo Centre

English for Kindy (4-6 years old)

Mon or Sun or Sat on 17:30-19:30 or 07:45;10:00;13:45:

English for Junior (6- 12years old)

Starter A, B, C Movers A, B,C Flyers A,B,C Juniors Pre-elementary A Juniors Pre-elementary B

Sat/Sun ; Sat & Sun from 13:45-15:45 or 16:00 -18:00 220

English for teens (12-15 years old)

Seniors Starter A,B Seniors Beginner A,B Seniors Elementary A,B Seniors Pre-Inter A,B Seniors Inter A,B,C,D Seniors Upper Inter A,B,C,D

Sat/ Sun; Sat & Sun ( 18:00-19:30 or 19:45-21:45 ) Tue / Thu :17:30 -19:30;

Confident teen course (16-19 years old)

Elementary 1,2 Pre-Inter 1,2 Inter 1,2 Upper Inter 1,2

Starters Beginner A,B Elementary A,B,C Pre-Inter A,B,C,D Inter A,B,C,D Upper-Inter A,B,C Advanced A,B,C Proficiency A,B,C

M/W/F or T/T/Sat or T/T or Mon/

IELTS -general for Pre - Inter Level

IELTS Success 1 IELTS Success 2 IELTS Success 3

M/W/F or T/T/Sat or T/T or Mon/

IELTS Skills 1 IELTS Skills 2 IELTS Skills 3

Upper Intermediate 60 10 weeks M/W/F or T/T/Sat 360

Pre-Inter A,B,C, Inter A,B,C, Upper-Inter A,B,C

M/W/F or T/T/Sat or T/T from 17:30- 19:30 or 19:45 - 21:45

Table 2-5: Programme, schedule and fee of English course in Language Link

Top class teens (12-16 years old)

Beginners 1,2 Elementary 1,2,3 Pre-inter 1,2,3 Inter 1,2,3 Upper-Inter 1,2,3

Beginners 1 Elementary 1,2,3 Pre-inter 1,2,3 Inter 1,2 Upper-Inter 1,2 Advance 1,2

Elementary 1,2,3 Pre-inter 1,2,3 Inter 1,2,3 Upper-Inter 1,2 Advance 1

(Source: Language Link Corp, Vietnam)

The comparison of language courses from Language Link, Apollo, and ILA reveals notable similarities in schedules, duration, and fees However, Language Link does not offer programs for children aged 4 to 6, with courses for primary children starting at age 7, while also providing a unique Speed Up course not available at Apollo or ILA Both Apollo and Language Link offer Business English courses, which ILA lacks, and these courses are shorter and more affordable than those offered by ILA Additionally, children's classes at both Apollo and Language Link are structured with only one lesson per week, a key differentiator that appeals to parents seeking flexible schedules and lower costs.

CONCLUSION AND RECOMMENDATIONS

Conclusion

In this chapter, the author examines ILA's business and marketing strategies through Philip Kotler's marketing mix theory The initial SWOT analysis provides insights into ILA's current position and circumstances The research led to several key conclusions about ILA's strengths, weaknesses, opportunities, and threats in the market.

ILA Vietnam in Hanoi has experienced disappointing sales and visitor numbers, resulting in ongoing negative profits This underperformance can be attributed to both internal and external factors Internally, ineffective marketing strategies have resulted in a low influx of potential visitors, with word-of-mouth being the only effective channel, indicating minimal marketing effort Externally, economic challenges in 2008 have also contributed to these issues, although there are signs of recovery.

In 2009, there was a decline in the number of individuals interested in studying English; however, this trend reversed in 2010, leading to an increase in enrollment While the number of adult learners decreased, there was a notable rise in the number of children seeking English education.

Recent sales analysis revealed seasonal trends, with peak sales occurring during the summer and following the Tet holiday The period leading up to Tet proved challenging for new sales, as customers were preoccupied with preparations and financial planning for the holiday To counteract this, ILA implemented a promotional campaign to stimulate sales during this difficult time.

The re-enrollment rate among major products, particularly for secondary students and adults, was notably low Retaining existing customers is more cost-effective than acquiring new ones, as repeat customers often act as voluntary advocates for ILA through word-of-mouth referrals Therefore, it is crucial for ILA to prioritize efforts in enhancing re-enrollment rates, especially among adult learners.

ILA's primary offering is its teaching services, but the overall product includes various components such as materials, course design, teaching support, and customer service However, ILA's courses tend to be longer and less appealing compared to competitors, resulting in slightly higher prices that aren't significantly different While ILA incorporates some extra in-class activities for children, it falls short in providing outdoor experiences, making its products less attractive Additionally, the use of outdated course books has further diminished the appeal of ILA's offerings.

ILA's marketing strategies in Hanoi mirrored those implemented in Ho Chi Minh City; however, they proved to be ineffective and yielded minimal results The core issue lay in ILA's inability to clearly establish its identity in the minds of the Hanoian audience.

- People in Hanoi had different reaction with those in Hochiminh People liked product that had more advertising than the same one, a research of AC Neilson Vietnam stated

ILA's advertising efforts were primarily concentrated in Ho Chi Minh City, utilizing media channels that are more popular in the region Although ILA invested in television ads once in 2009, the high costs limited their frequency In contrast, the frequency of ads in Hanoi was low, resulting in a minimal impact from advertising in that market.

ILA leveraged testimonials in public relations articles across newspapers and online platforms, focusing on advertising rather than fostering the company's image or nurturing customer relationships.

ILA engaged in various public relations activities, including promotional clips on television, but their significant efforts were demonstrated through visits to the SOS village and donations to underprivileged patients in hospitals in Ho Chi Minh City In contrast, ILA's public relations initiatives in Hanoi were limited.

ILA in Hanoi offers various promotions, including discounted course fees for siblings, university students, corporate learners, and returning students Additionally, gift vouchers are provided to individuals who refer friends or relatives to study at ILA However, it's important to note that the discount percentages for returning students and siblings at ILA are lower compared to competitors like Apollo and Language Link.

ILA operated a single training center in Hanoi, situated in the Cau Giay district, primarily serving students from Cau Giay and Tu Liem provinces However, this limited geographic reach meant that ILA was unable to capture a significant portion of the market.

- Location also affected the mind set of people in Hanoi as customers believed that premium services had to have office in city centre

- ILA‟s policy for distribution channel development was limited and hard to change ILA had to flexible to get more students from business clients

Through these conclusions above, the author would like to deliver some recommendations as the following.

Recommendations

Having a website is essential for any company, as most customers seek product information online before visiting in person A business without a website may be perceived as outdated and unresponsive The key decision lies in whether the website should be a passive platform focused solely on providing product and company information, or an active site that includes engaging features and activities to attract consumers.

ILA should maintain an engaging website that fosters long-term relationships with consumers by offering product information, relevant content, and entertainment The site should align closely with the company's activities, allowing customers to explore programs of interest and submit their information for future contact.

To enhance user experience, ILA's website must prioritize fast loading times, easy navigation, and customer-focused content Given the complexity of purchasing decisions, the site should be interactive and provide comprehensive information about training center locations, particularly in Hanoi Implementing a questionnaire to gather details about potential students' needs—such as their intended use of English, prior experience, and personal characteristics—will enable tailored program recommendations Additionally, incorporating an auto sign-up and payment feature linked to commercial banks will streamline the enrollment process, appealing to busy customers With a significant number of beginners seeking suitable classes for children, introducing dynamic pricing or promotional discounts, similar to strategies used by Air Asia, could attract more visitors and increase enrollment at the Hanoi center.

In addition to optimizing its homepage, ILA must enhance its online advertising strategy to thrive in the digital age, where search engines like Google dominate Effective management of online advertising is crucial, and leveraging public relations through strategic forum discussions can be beneficial However, this approach carries risks, as competitors may exploit these platforms to highlight the company's weaknesses Therefore, ILA should focus on advertising in reputable forums, popular websites, and influential blogs, while exercising caution in topic selection within these discussions.

3.2.2 Building Customer Value, Satisfaction, and Loyalty

ILA can enhance its offerings through three key strategies Firstly, by elevating total customer value through enhancements in product quality, service excellence, skilled personnel, and a strong brand image Secondly, by minimizing the buyer's non-monetary costs, which include time, energy, and emotional investment Lastly, by lowering the monetary costs associated with its products for consumers.

ILA determines that the perceived value of its offer is $6.75, while the cost of providing one hour of service is $3 This indicates that ILA can potentially earn a profit of $3 above its costs, necessitating a pricing strategy between $3 and $6.75 Charging below $3 would result in losses, while pricing above $6.75 risks losing customers due to being overpriced.

The pricing strategy of ILA significantly influences the perceived value for customers and the revenue retained by the company For instance, if ILA sets a price of $5.75, it generates $1 in perceived value for the customer while retaining $2.75 A lower price point enhances customer perceived value, increasing the likelihood of purchase To successfully compete, ILA must provide greater perceived value to customers compared to Apollo and other English centers.

Customers are increasingly difficult to satisfy, becoming more knowledgeable, price-sensitive, and demanding, while facing numerous competitors with comparable or superior services To retain customers, businesses can either create high switching barriers, which discourage customers from moving to another English center due to time costs, search costs, or loss of loyalty discounts, or focus on delivering exceptional customer satisfaction Prioritizing customer satisfaction not only enhances loyalty but also makes it challenging for competitors to entice customers with lower prices or other incentives Therefore, ILA should aim to capture the market by reducing prices while simultaneously implementing strategies that make switching more difficult for customers.

To enhance re-enrolment rates among loyal customers, ILA should prioritize building strong relationships through effective marketing strategies While many companies rely on basic marketing due to a large customer base and low profit margins, ILA, operating in the high-margin English training sector, should adopt partnership marketing This approach necessitates treating employees with the same care as customers Furthermore, ILA must continually develop its loyalty programs and customer services linked to English training, such as waiving entrance testing fees for a year Additionally, implementing promotions for current students, like loyalty discounts or scholarships for high achievers, will encourage re-enrolment for future studies.

ILA should implement the Loyalty Profit Chain strategy, as illustrated in the chart below, to significantly reduce employee turnover, enhance customer satisfaction, and ultimately improve shareholder returns.

Improving internal service quality is essential for enhancing employee welfare, which in turn boosts employee satisfaction and productivity While this may appear unrelated to customer loyalty, it significantly impacts external service quality High external service quality directly correlates with customer satisfaction, perceived value, and loyalty As ILA cultivates customer loyalty, satisfied clients are more likely to recommend ILA's courses and services to friends, resulting in increased enrollments and revenue for the company.

To enhance customer loyalty, the author suggests that the company should continue to develop its loyalty programs and customer services associated with its English training programs For example, offering a year of free entrance testing fees could significantly attract and retain customers.

Product

ILA has faced a lack of new products for several years, making it essential to introduce innovations to attract more customers and increase market share To achieve this, the company should pursue both the renewal of existing products and the development of new ones Renewing current products can provide immediate time and cost savings, while the long-term development of new products is crucial for establishing competitive advantages The following recommendations outline strategies for both approaches.

To enhance the learning experience for young learners, ILA should consider restructuring its courses into shorter modules of 45 to 50 hours, allowing customers to pay approximately $200 at a time, making decisions easier In contrast, adult courses currently require more extensive study, with 184 hours for the same elementary level compared to 100 hours for children; this could be streamlined into two 50-hour modules Additionally, course schedules should be diversified to accommodate varying student needs, such as offering weekday classes for Jumpstart students and flexible options for those wishing to balance study with family travel Updating course materials with new textbooks from reputable publishers like Macmillan and Cambridge, featuring engaging visuals and added value like CD-ROMs, can significantly enhance the curriculum Incorporating outdoor activities into lesson plans can foster social skills, with opportunities for experiential learning at local attractions like zoos and museums, complemented by camping days that serve both educational and promotional purposes Establishing a dedicated customer care department will improve service quality, allowing for more professional and focused support While ILA excels in customer service, refining the complaint resolution process is essential; empowering front office staff to address issues directly can enhance customer satisfaction Finally, creating a specialized department for teaching assistants will ensure effective communication with parents and smooth operations within the classroom.

The ILA Company is poised to develop a new product strategy to adapt to market changes and enhance its leading position in Ho Chi Minh City The marketing department is seeking approval from the CEO to initiate this process.

To generate valuable marketing ideas, ILA should conduct both internal and external market research Initiating surveys with current students and visitors can provide insightful feedback By leveraging staff and teaching assistants for this research, ILA can reduce costs compared to hiring external market research firms.

To enhance its offerings, ILA should streamline its marketing strategy by focusing on high-demand English courses tailored for university students Potential short courses could include business report writing, presentation skills, meeting note-taking, and specialized English for fields like engineering and nursing By selecting a few key areas of demand, ILA can effectively develop new products that cater to the specific needs of its target audience.

Of those ideas, business students were major so ILA could choose developing business course for them first

The idea of a short English course for business students emerged as a viable option for developing a new product, aligning well with students' financial capabilities and the market demand To evaluate this concept, ILA plans to conduct tests with students at Vietnam Commercial University, located nearby, to assess its effectiveness and appeal.

In developing a comprehensive marketing strategy, the marketing department should create a statement comprising three key components Firstly, it should identify the target market of university students, emphasizing a product positioning that combines high quality with reasonable pricing, alongside setting sales, market share, and profit objectives for the initial years Secondly, the strategy must detail the product pricing and the marketing budget for the first year Finally, the statement should outline long-term sales and profit goals, as well as the overall marketing mix strategy.

In this phase, the marketing department seeks approval from the board of management for its product concept and marketing strategy The business analysis evaluates sales, costs, and profit projections to ensure alignment with the company's objectives, prioritizing market share over immediate profit Consequently, products aimed at students are designed to boost student numbers rather than focus solely on profit The company estimates potential sales by analyzing the sales history of comparable products and conducting market opinion surveys.

The marketing department can collaborate with the academic department to create a trial product that includes an appropriate duration and course materials Given the intangible nature of teaching services, the academic department also serves a crucial role in research and development.

The marketing department should collaborate with the academic department to redesign trial products based on their suitability Teachers and volunteer students can test the product to provide valuable feedback Utilizing this feedback, the marketing team can adjust the product and pricing to better meet customer demands Prior to a nationwide launch, ILA could pilot the new product in a specific area of Hanoi or Ho Chi Minh City.

Following the testing phase, ILA is poised to launch its product in the market The company is expected to invest significantly in advertising, sales promotions, and other marketing strategies during the initial year A successful execution of this marketing plan is crucial; failure could allow competitors to seize the opportunity The author recommends targeting third and fourth-year business students at nearby universities to optimize marketing efforts.

The new product development process had nine steps but ILA could combine some steps due to the service‟s characters.

Promotion mix

In this part, the thesis delivered recommendations of changing on advertising, public relation and sales promotions Bellows were the details:

- ILA Hanoi should have one marketing executive for decentralization marketing activities At the same time, budget for advertising in the period of

2011 to 2016 should be support from head office to gain the objective of developing the market share

- ILA‟s advertisings were too academic and complicate for customers to understand It could be straight to education or English teaching rather than

To effectively reach the Hanoian audience, ILA in Hanoi should focus on popular newspapers and online platforms such as Dan Tri, VNExpress, VietnamNet, and Kenh14 Additionally, engaging with well-known publications like Lao Dong, Nhan Dan, and Hanoimoi, along with forums from institutions like Foreign Trade University, Vietnam Commercial University, and the Academy of Finance, will enhance visibility Targeting discussions on platforms like Webtretho and various private university forums can further expand ILA's outreach in the region.

- The frequency of print and online ads should be increase to three time per week and two weeks each month

ILA can enhance its visibility by sponsoring the upgrade of school information boards, providing a platform for advertising its courses By adding an inquiry box to these boards, ILA can effectively collect customer inquiries about its offerings To encourage engagement, each inquiry could be rewarded with incentives such as English tips or a complimentary trial lesson.

Television advertising is a valuable consideration for ILA Hanoi, as research by AC Nielsen indicates that residents of Hanoi continue to trust this medium despite its high costs.

Advertising boards in building lifts near ILA are highly recommended Additionally, ILA should utilize teaching video clips for promotional purposes in apartment buildings located in the Trung Hoa, The Manor, My Dinh, Dong Da, and Ba Dinh districts.

To enhance visibility and attract more customers, ILA should strategically place signboards on Kim Ma Street and Ho Tung Mau Street Additionally, securing a prominent location on the CTM building for a signboard would further increase recognition Many potential customers traveling on Cau Giay Street currently do not recognize ILA, highlighting the need for improved signage.

- Street banner was another cheap and effective choice ILA should use this method when having promotions

ILA's brochures currently combine multiple programs, resulting in high printing costs To improve distribution at schools and universities, ILA should create a simplified flyer Additionally, the flyers must include clear terms and conditions for registration to ensure transparency and ease of understanding for potential participants.

- ILA should attend students‟ fairs It was considered as an advertising method for branding

 Public relation ILA should set a clear message when doing PR The message should be related to benefit of students and should show ILA‟s care and environment

ILA should organize a series of events and donations aimed at supporting underprivileged students who demonstrate strong academic performance The marketing department is tasked with selecting primary, secondary, and high schools to award scholarships to these deserving students Additionally, ILA should notify journalists in advance of the events to ensure coverage and promote awareness through news articles.

ILA should host free English classes for students from SOS and other orphanages Additionally, ILA should organize events at its center where students can visit orphanages, providing valuable life education while showcasing ILA's initiatives and impact in the community.

The events should be post on ILA‟s website, Facebook, Twister and other social network for advertising purpose

ILA should consider partnering with a Hanoi television channel that offers educational programming to sponsor and develop a free English language program The successful "Vui hoc Tieng Anh" program on HTV7 serves as an effective model that could be adapted for the Hanoi audience.

Sales promotion encompasses various tools such as consumer promotions, trade promotions, and business promotions Given that ILA's primary customers are individuals, it is essential to focus on consumer promotion strategies Key consumer promotion tools include samples, coupons, cash refunds, price packs, premiums, advertising specialties, patronage rewards, point-of-purchase displays, demonstrations, and contests During implementation, important decisions must be made regarding the size of incentives, conditions, duration of promotions, response mechanisms, and sell-off times To optimize effectiveness, careful consideration of these factors is crucial.

ILA offers a VIP card for students who enroll in more than three courses or have multiple siblings studying at the institution This card provides various benefits, including discounts for the cardholder's friends and relatives, as well as points towards tuition fees When referred by a cardholder, new students can enjoy a 10% discount on their first registration Additionally, cardholders earn 1 point for every million spent on tuition, and upon reaching 100 points, they can redeem a free course Please note that the VIP card will expire if not used within one year.

Coupons can serve as effective rewards for students at ILA, encouraging them to enroll in courses ILA can purchase coupons from supermarkets, bookstores, or for cinema tickets For instance, students who register and pay between December 23 and January 3 can receive a coupon worth 500,000 VND for Fivimart supermarket or Fahasa bookstore Additionally, top-performing students in ILA classes will also have the opportunity to earn these book coupons.

To optimize sales during key periods, ILA should implement a 20% off-peak discount during Christmas, the Tet holiday, and school examination times This discount should be available for three days in each campaign Following a major promotion, sales tend to decline, so it is advisable for ILA to consider running this promotional strategy once a month to maintain customer engagement and boost sales consistently.

Trial lessons serve as a valuable opportunity for potential customers to visualize our services and consider enrollment During these sessions, customers can experience two lessons tailored to their skill level, allowing them to envision the benefits of long-term learning Additionally, these trial lessons can function as promotional events Even those unable to commit to long-term studies at ILA are welcome to register for these demo lessons.

- Contest could be used as PR event and sales promotions For example, spelling competition for all primary and secondary schools in Hanoi

Through this competition, ILA could collect more data base of registers and ILA‟s brand could be recognized The winner could receive ILA‟s scholarship and other value

ILA's promotional items, such as backpacks, raincoats, T-shirts, and helmets, make excellent gifts for customers For instance, ILA could engage readers by featuring a crossword puzzle in Hoahoctro newspaper, where participants who solve the puzzle would be rewarded with an ILA backpack.

Place

To increase its market share, ILA should focus on expanding its presence in Hanoi by opening a new training center in the downtown area This strategic move is essential, as customers often associate a reputable brand with having a central location Establishing a center on Hai Ba Trung Street would attract students from Hoan Kiem, Long Bien, Hai Ba Trung districts, and Gia Lam, while an additional center on Tay Son Street would serve students from Ha Dong and Dong Da This expansion will enhance ILA's brand perception and accessibility, ultimately driving student enrollment.

It cost the huge amount of capital to establish many training centres ILA should consider using franchise There were some advantages:

- Franchising could help ILA save cost of building set up, staff‟s ILA could also receive the initial fee

- The rapidly expansion would help ILA increase its market share faster

- The centre‟s managers worked for themselves so the business must be different than current centre in development and management

Beside these advantages, ILA had to face some disadvantage of franchising as the following:

- ILA had to give up some control

- The franchisees might not perform exactly ILA standards so it could harm to ILA brand name

- The franchisees might not be good dealers

To avoid these disadvantages, ILA should design the standard contract that point clearly that ILA had the right of recruit teacher and supply course books

ILA should franchise in Hai Phong, Quang Ninh and Bac Ninh provinces

In general, the place of ILA, a service company, were very different from develop a place marketing mix to other products ILA should choose suitable partner to achieve success

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