Marketing Principles - Mkt101 Best Express Việt Nam Individualassignment.pdf

Analyze the marketing environment and define the market segment and service offer 1.1 Identify products and services to provide in the market: Cu Chi – suburban area of Ho Chi Minh City

MARKETING PRINCIPLES - MKT101 INDIVIDUAL ASSIGNMENT

Full name: Đỗ Đăng Khoa

Student ID: SS170693

Class: IB1702

Lecture: Nguyễn Thị Thới

1 Define the service products to offer in the marketplace Analyze the marketing environment and define the market segment and service offer

1.1 Identify products and services to provide in the market:

Cu Chi – suburban area of Ho Chi Minh City – 2nd largest area in 24 districts of Ho Chi Minh City, with Large warehouse area, abundant labor force plus Cu Chi is located in the suburban area, so BEST Express chooses Cu Chi as the most invested goods sorting center in Vietnam / Southeast Asia and is quite suitable for

transportation services, smart supply chain services due to the large area that can be

accommodated in large quantities

1.2 Analysis of the marketing environment:

Micro:

+ Company:

- Best Express Vietnam has expanded its network throughout 63 provinces and cities nationwide, achieving service coverage of up to 99% with a system of 7 classification

centers large scale and 23 small-scale sorting centers spread across the country with a processing capacity of over 1.8 million orders/day

- 30 large and small automatic sorting centers of BEST Express are distributed evenly across the country, the total area of warehouses being exploited is nearly 8 hectares, the service network of BEST Express covers all 63 provinces and cities,

reaching a capacity of handling orders of more than 1.8 million orders per day across the system and delivering hundreds of thousands of parcels per day

- In which, HCMC classification center, built on a total area of 40,000 m2 with a total investment of 8 million USD, is currently the largest classification center of BEST Inc in Southeast Asia

+ Competitors:

- Viettel Post, VN Post, Fast Delivery and Economical Delivery: Currently, these 4

third-party delivery units account for 60% to 65% of the market share There are two reasons why the four names above have expanded like that: they are market leaders and all are very strong in technology

- Viettel Post has been present in the Vietnamese market for 15 years, now they have 1,476 post offices, 827 stores and 10,000 partners, covering 713/713 districts; Fast

delivery revenue accounted for more than 50% of the total revenue of this business in

2018 Fast Delivery is a young company with 7 years of experience, currently has 500 post offices, 1,500 shipping points, government offices service wave 63/63 provinces

in Vietnam Fast Delivery makes about 300,000 orders every day

- VN Post part, this company established in 2007 has 13,000 transaction points covering the whole country Finally, Economical Delivery, they have been on the market for 6 to 7 years, covering 99% of districts and communes with 8,000 drivers, total operation centers of 100,000 square meters, fulfilling 100 million orders/ five

- And the appearance of the following prominent players is J&T Express.

+ Partners:

- Best Express is trusted by tens of thousands of retail partners across online channels across the country, so there will always be products to supply to warehouses

- Being a partner of 4 largest e-commerce floors in Vietnam: Lazada, Sendo, Shopee, Tiki and leading reputable online shopping channels in the market

+ Customers:

- In recent years, Vietnam's e-commerce market has been increasingly expanded and has now become a popular business method known to businesses and people The diversity of operating models, participants, operating processes and supply chains of goods and services with the support of Internet infrastructure and modern technology application has brought e-commerce closer with users

- In the context of the COVID-19 epidemic, the e-commerce market has become more and more exciting and the application of digital technology and building a new distribution channel is becoming an effective solution for Best Express, overcoming the difficulties brought about by the pandemic to new opportunities from the emerging needs of the market The buying habits of Vietnamese consumers in the domestic market are also gradually shifting from traditional purchases to online purchases through electronic means The results of surveys and surveys by the Ministry of Industry and Trade show that, by 2020, Vietnam has 49.3 million people participating

in online shopping (this data in 2016 only recorded 32.7 million people This number mainly focuses on the 15-46 age group, in the generation where social networks are very popular and the access to social networks of this age group is earlier than the age

of 47 and older up This is the segment we will pay special attention to when planning our marketing

- And our customers are also targeting startups, companies that want to use many different modes of transportation according to the model of franchised post offices, but they do not have many branches or branches in places where they are not focus

Macro:

+ Economy:

- According to the Department of E-Commerce and Digital Economy, Vietnam's e-commerce will grow impressively in 2020 with an increase of 18%, market size of USD 11.8 billion, estimated accounting for 5.5% of total retail sales of consumer goods and services nationwide Vietnam is also the only country in Southeast Asia with double-digit e-commerce growth

- COVID-19 is a significant blow to e-commerce, causing many businesses that have never sold online before to now sell online, many people who have never bought online now buy online

- The number of transactions increased sharply over the same period, but the growth in revenue of the market decreased due to low value of e-commerce transaction items during the COVID-19 period Currently, the number of customers accessing the websites the floor averages about 3.5 million visitors/day, an increase of more than 150% compared to the previous period The analysis of Global Data E -Commerce Analytics shows that with the current growth rate of approximately 18%, it is expected that by 2024 the market size can reach 26.1 billion USD

+ Technology:

- The data system at Best Express's Classification Center is processed by BEST Cloud's Big data data analysis technology on the cloud computing platform of BEST Cloud with high quality image processing technology helps to improve the efficiency

as well as increase the accuracy of 99.9% and the classification efficiency is increased

by 4 times

- High-speed, double-decker cross-belt automatic sorting system specializes in handling parcels weighing less than 3 kg

- Using barcode recognition system to identify goods and WCS (warehouse control system) technology can determine the location, process and progress of order processing to the beginning Sorting capacity can be up to 36,000 parcels/hour

- Matrix automatic sorting system for handling parcels of 3 kg or more and the operation thanks to the compression and push system (less than 0.01%) to ensure safety and control the rate damaged 10 conveyor belts are arranged separately to support smooth rotation even during peak hours

+ Politics: In order to create the most favorable conditions for the development of

e-commerce, the state has used the following laws:

1 Law on Electronic

Transactions Law on Electronic Transactions was passed on November 29, 2005 and came into effect on March 1, 2006

This Law includes many provisions on:

- Data messages, electronic signatures and authentication of electronic signatures

- Concluding and performing electronic contracts

- Security, safety, protection and confidentiality in e-transactions

- Dispute resolution and handling of violations in electronic transactions

The Law on Electronic Transactions recognizes the principle of electronic

transactions: Voluntary, self-agreeing on the choice of technology to perform transactions translation, neutral in technology, ensuring equality and safety

2 Commercial

Law the Commercial Law (amended) which was passed on June 14, 2005 and took effect from January 1, 2006 is an important basis for commercial activities, including e-commerce

This Law stipulates: In commercial activities, data messages that satisfy technical conditions and standards as prescribed by law are recognized as having the same legal value as documents In addition, the display and introduction of goods and services on the Internet is also considered a form of display and introduction of goods and services

3 Civil

Code the 2005 Civil Code stipulates on the form of civil transactions: Civil

transactions through electronic means in the form of data messages are considered written transactions For cases of entering into a contract, modifying a contract, performing a contract, canceling a contract: The time of contract conclusion is the time when the offeror receives a reply accepting the conclusion of the contract These important concepts are taken into account when concluding and executing contracts over the internet

4 Law on Customs

Law (amended) was passed on June 14, 2005 and took effect from January 1, 2006 with the addition of a number of regulations such as the order of electronic customs declaration, the location of declaration, and customs dossiers e-customs, customs procedures for goods imported and exported via e-commerce

5 Intellectual Property

Law the Law on Intellectual Property 2005 and took effect on July 1, 2006 marks an important milestone in completing the legal system on protection of intellectual property rights

In this law there are a number of provisions related to e-commerce, such as provisions on; Acts of copyright infringement, related rights infringement in the electronic environment (deliberately destroying or changing electronic rights management information contained in a work, or removing or changing management information) rights in electronic form without the permission of the relevant right holder)

6 Some other legal documents

- Law on Information Technology 2006

- Decree 52/2013/ND-CP on e-commerce

+ Culture:

- Due to the impact of Covid-19 nearly 60% of consumers Switch to online purchases and this will continue until 2022 As of the first half of 2021, Vietnam has more than 8 million new online consumers, with 55% of them coming from regions non-urban

- Significant changes in consumer behavior during the period of social distancing have promoted the impressive development of the domestic e-commerce industry The

percentage of e-commerce users in Vietnam tends to increase, with 97% of new consumers still using the service and 99% intending to continue using it in the future

1.3 Identify target market segments:

- We will target customer segments who are start-ups, or large companies that are changing the form of buying and selling to online for service development Smart transportation and supply chain because this is the segment that uses the services we offer the most, due to the Covid -19 epidemic, buying and selling has changed from face-to-face to online and companies have also changed must adapt by creating its own e-commerce platform, making the e-commerce market more and more vibrant, which will be a favorable condition for the development of our services further Age

15 - 46 is also the age when we will focus on marketing plans

2 Define the market characteristics and figure out what information Best Express needs to understand the importance in the marketplace for the service products offered.

2.1 Identifying market characteristics

According to the report of the Ministry of Information and Communications, estimated revenue of the postal sector in the first 6 months of 2021 is more than 20,000 billion VND (up 23% over the same period) The volume of parcels reached over 590 million, an increase of 30% over the same period in 2020 These figures show that the postal and express delivery industries are doing very well

In addition, Vietnam's delivery market grew strongly thanks to e-commerce Since the outbreak of the pandemic, the demand for shopping on e-commerce sites is increasing, leading to a huge demand for online shopping And not except Cu Chi market, the number of e-commerce users also increased sharply, and especially the population pyramid in Cu Chi is the young population pyramid and this is the customer we are targeting Not only that, Cu Chi's geographical location is very large, which is very suitable for warehouses, thus increasing the amount that can be stored and

transshipped, consumers in Cu Chi will have less to pay for transportation It is a big move to buy online because its geographical location is quite far from the city center,

and Cu Chi is one of the thriving places, many companies will be built here and startups are also partners image we are aiming for

2.2 The competition is becoming more and more fierce with many competitors

entering the market, along with the increasing demand for service quality, so we want our company to develop more than all other competitors Competitors we must understand the important information in the market for the products and services we provide:

The company needs to understand the buying behavior of consumers because consumers are extremely diverse in terms of occupation, age, income level, education level and interests, so the way they contact and approach is very different People aged

30 - 46 will have different purchasing needs than people aged 15 -30, and income level will also determine what kind of goods they will buy

Must understand the characteristics that affect consumers: psychology, culture, In the era of Covid, online shopping Fast - Safe - Convenience is what users need now, if we know it Knowing what their psychology wants, we can build a more detailed marketing plan

Depending on the social class, the size of a household that must learn to provide different services to satisfy each different customer

3 Outline the steps in the marketing research process for Best Express Explain the Buyer (user) Decision Process for New Products

3.1 Steps in the marketing research process for Best Express:

Step 1: Identify the problem and objectives: This is the first job in the market research

process, in this step we will define the problem that businesses are facing, need to have research data to provide solutions and goals to be achieved in a research Step 2: Develop a plan: After defining the problem and the objectives, the researcher needs to develop a complete and effective plan to identify the necessary information, estimate the possible costs can be estimated to be consistent with the financials of the enterprise Research plan includes: identification of data sources that can be collected, methods of income, means and tools of implementation, sampling plan, contact methods, detailed budget

Step 3: Information income: Enterprises will begin to collect information and data according to the proposed plan It must be ensured that the information collected in the process of researching or recording or updating on the software and applications is complete, arranged in a logical and scientific order

Step 4: Data analysis (information): Based on the collected data, the researcher begins the analysis, including: statistical work, calculation to give the mean values according

to the variables fit for the intended purpose

Step 5: Presenting research results: After completing the research process, the

researcher must present and present the data and research results in an intuitive, easy

to understand and scientific manner logic, for the competent departments to make decisions

Step 6: The company will jointly review and make decisions based on the results of the research

3.2 Explain the buyer (user) decision process for a new product.

The buyer's acceptance process for a new product consists of five stages: awareness, interest, evaluation, trial, and acceptance New product marketers must find ways to help consumers navigate through these stages Consumers react very differently to the dissemination of a new product, depending on the individual and product

characteristics

- Consumers are divided into 5 groups: innovation lovers, early adopters of

innovation, majority early adopters, majority late adopters and backward Each group

of people will have a different way of marketing and management All marketing professionals try to get new products to early adopters of innovation, especially when this person has the ability to lead the way And finally, the adoption rate for a new product is influenced by several characteristics of the product itself: relative advantage, compatibility, complexity, trialability, and community

4 Define the business market and explain how business markets differ from consumer markets and competitors

4.1 Identify the business market of Best Express:

For businesses: We have a good relationship with the 4 largest e-commerce floors in Vietnam: Tiki, Shopee, Lazada, Sendo and tens of thousands of online retail partners across the country, we must always focus on keeping a sustainable

partnership with these partners because this is an e-commerce platform that many known and used by consumers, the number of goods ordered is very large - that is one

of the favorable conditions for the development of the company Along with that, we will be targeting startups looking to find shipping or supply chain companies across the country

For customers: We will focus on an audience of 15 - 46 who use a lot of social networks as well as e-commerce platforms We will target households and individuals with low-middle income with preferential and discount strategies in the mode of transportation

4.2 Explain the business market is different from the consumer market and competitors in the following points:

The business market is B2B (business-oriented) and the consumer market is B2C (customer-oriented) and so on.difference between these two markets is:

The first is the difference in customers:

Customers of B2B transactions (business-to-business transactions) are companies and B2C customers are individuals However, it is necessary to consider the letter C in B2C as the end consumer (End-user) That is, C also includes businesses that purchase goods for consumption For example, a business buys tables and chairs for office work

Overall, B2B transactions are more complex and require more security In addition, there are two more major differences:

Differences in negotiations and transactions:

Sales to businesses (B2B) must include factors such as price negotiations, delivery and confirmation specifications and product specifications Selling to consumers (B2C) does not necessarily include all such elements This makes it easier for retailers

to put their product catalogs online to open an online supermarket That is also why the first B2B eCommerce applications were developed only for finished goods and products, simple in characterization and pricing