public relations and communications strategic planning for public relations home credit case analysis

SUMMARY Logo of Home Credit - Home Credit was established in 1997 in Czech, Home Credit Group isleading the consumer finance market with total assets of 14.7 billioneuros.. - Home Credit

FACULTYOFPUBLIC RELATIONS AND COMMUNICATIONS

STRATEGIC PLANNING FOR PUBLIC RELATIONS

HOME CREDIT CASE ANALYSIS

Students: Ngô Hoàng Tú Anh – 207QC35414

Lê Trương Thiên Đoan – 207QC17102Nguyễn Thị Thanh Mai – 207QC03202Nguyễn Ngọc Thảo My – 207QC03243Võ Ngọc Mỹ – 207QC03265

Nguyễn Đỗ Thảo Nhi – 207QC17677Lưu Trường Yến Nhi – 207QC17675Teacher: Lý Lê Tường Minh

TABLE OF CONTENT

1 INTRODUCTION 3

2 SUMMARY 3

3 IDENTIFY STEPS OF STRATEGIC 4

a) Developing a vision and mission 4

1 INTRODUCTION

On the occasion of Tet 2022, after the most complicated Covid-19 disease ofthe year, the gloomy and worried atmosphere and negative effects on economicissues have put pressure on many brands to downsize their Tet campaigns TheHome Credit team has observed the market and realized that Tet 2022 could bean opportunity in a challenge for it In a time when the economy and dailyactivities are gradually restored, the brand's target audiences will need a positiveand practical energy source to revive their spirits after a challenging year

Nowadays, buying and selling in installments is no longer strange toeveryone, surely among us we have at least once heard and experienced thepurchase of televisions, phones or any other electronic or refrigerationequipment paid in installments in some supermarkets, you have heard aboutHome Credit - one of the leading companies in the field of consumerinstallment loans Let’s analyze the success of the Home Credit campaign

2 SUMMARY

Logo of Home Credit

- Home Credit was established in 1997 in Czech, Home Credit Group isleading the consumer finance market with total assets of 14.7 billioneuros Currently, Home Credit is present in 10 countries such as Russia,Czech, Slovakia, Kazakhstan, China, Vietnam, India

- Home Credit Vietnam has been operating since 2008, is one of theleading companies in the field of consumer installment loans withoutstanding advantages: fast, convenient and friendly Home Creditcurrently has its head office in Ho Chi Minh, Hanoi branch and 10representative offices in other major cities/provinces nationwide.- In the Vietnam market, Home Credit is currently one of the leading

companies in the field of consumer installment loans After 13 years ofoperation, the company has built a network of 9,000 service points in 63provinces/cities

- Home Credit has been and is serving 12 million customers with 3 mainproducts: motorbike installment loans, installment loans for homeappliances, electronics and cash installment loans At the same time, tocreate maximum convenience in customer payment, Home Credit hasconnected more than 3,000 Payoo payment points, 4,000 Momo paymentpoints, linked with the postal system of Vietnam post offices, Viettel storesystem and banks nationwide

- Home Credit is constantly developing and diversifying products to meetcustomers' expectations such as low-interest or 0% interest loans, flexibleterms, and low monthly payments In addition to the optimal products,Home Credit customers also enjoy the best services with the dedicatedsupport of professional staff, simple documents, quick loan approval

3 IDENTIFY STEPS OF STRATEGICa) Developing a vision and mission

● Mission statement: - Promote customers to use Home Credit's services during the Lunar

New Year and after Tet holidays.● Vision statement:

- Home Credit is constantly striving to become the first choice in thefield of personal consumer loans with simple and fast procedures inthe locality where the company operates.

b) SWOT Strengths

- As a financial company with

many years of experience,reputation and professionaloperation process

- Among the top financial

companies in Vietnam market

- Ranked 31 in terms of assets

among all banks in Russia

- Among the top 10 private banks

with retail lending function inRussia

- It is the first foreign enterprise to

receive full operating rights fromthe China Banking RegulatoryCommission and is also the onlyforeign enterprise in the consumerfinance segment so far

- Awarded a Certificate of Merit by

the State Bank for contributions tothe community during theCOVID-19 outbreak

- Honored by The Global

Economics as “Best International

Weaknesses- High interest rates, making it

difficult to consider for middle-income customers (16.2%- 27.96%)

low There are many types of fees

(service fees, late fees,prepayment fees)

- In case of overdue payment,

customers will have to paypenalty fees and charge very highinterest based on overdue balance(150% of normal interest rate) andlate payment interest on overdueinterest (interest rate) 10 years)

- There are many subjects posing as

Home Credit employees to scamcustomers

Consumer Finance Company” and“Pioneer in Innovative DigitalTransformation Strategy”.

- Innovative and diversified

products and a nationwidenetwork of partners and servicereferral points have helped HomeCredit attract 1 million newcustomers each year, with morethan 60% of customers aged 20 to30 years old (this is the age withthe largest consumptionexpenditure)

- Home Credit often places ads at

places selling electronic devices,motorbikes, etc This has helpedHome Credit to attract anddirectly reach target customers

- Currently, there are very few

financial companies in the marketthat actively promote activities toimprove consumer financeknowledge for people, but HomeCredit is one of the fewcompanies in the market thatregularly conducts such activities.this activity This is also anopportunity for Home Credit to

find potential customers forthemselves.

Opportunities

- Opening up many opportunitiesfor users to sit at home, access anddo all loan procedures in areputable way through HomeCredit

Threats

- Facing many big competitors suchas Doctordong, Cash24, OneClick Money, MoneyCat,Senmo,

- The COVID-19 epidemic has hada negative impact on theeconomy, jobs are not guaranteed,income is reduced, making itdifficult for customers to repayloans This will increase HomeCredit's bad debt ratio

c) Pestel ● Political

- Interest rate support policy: In the two years 2022-2023, the bankingsector will execute a policy of supporting interest rates of 2% per yearthrough the commercial banking system for commercial loans to firms,cooperatives, and business families

- Loan support: The government has policies to encourage lending in avariety of areas, including local development, poverty, foreigninvestment, agriculture, and so on

- Budgets of the government: The government, both at the national andmunicipal levels, is running deficit budgets, which boosts growth in theshort term but raises inflation in the longer term The nationalgovernment's bond rating is investment grade

● Economic

- GDP Trend and Rate of Economic Growth: Growth in the GrossDomestic Product (GDP) is expected to rise by 5.03 percent in the firstquarter of 2022 compared to the same period last year The agricultural,forestry, and fisheries sector grew by 2.45 percent, accounting for 5.76percent of overall growth Industrial, construction, and service sectorsgrew by 6.38 percent and 4.58 percent respectively.

- Employment Rate: The policy of safe, flexible adoption and effectivecontrol of the Covid-19 outbreak aids the labor market to show numeroussignals of success in the first quarter of 2022 When compared to theprevious quarter and the same period last year, the labor force, number ofemployed persons, and average monthly income of employees all grew.Both the unemployment rate and the underemployment rate in theworking age have fallen from the previous quarter, however they are stillhigher than the same period last year

- Consumer Disposable Income: Employees' average monthly income in2021 will be 5.7 million VND, down 32 thousand VND from 2020 Maleworkers earn 1.40 times more than female employees, with an averagemonthly wage of 6.6 million VND female employees (4.7 million VND).Those in urban regions earn an average of 7.0 million VND per month,which is 1.40 times greater than workers in rural areas (5.0 millionVND)

● Societal

- The Nature of the Government-Society Social Contract: Before entering amarket, loans must first comprehend the nature of the government-societysocial contract

- Attitude towards Authority.- In society, the level of social concerns and awareness.- Trends in Demography

- Gender Distribution

- Norms and Hierarchy in Society.

● Technological

- Supply Chain Partner Empowerment: Loans should look into areas wheretechnology may help supply chain partners This can assist lenders inbringing greater transparency and flexibility to the supply chain.- Level of Technology Acceptability in Society: Before introducing new

goods, Loans must determine the level of technology acceptance insociety

- Mobile Phone & Internet Penetration: Loans should examine the amountof internet and mobile phone penetration in the nation as it will help themdesign a business plan that is tailored to local demands and realities.- Transparency and Digital Drive: Loans can help the local economy

overcome corruption by digitizing numerous procedures

● Environment

- Carbon Emissions Per Capita and Nationally: What is the country's percapita carbon emission level, as well as the total carbon emission level?This will help forecast the country's environmental policies

- Environmental Regulations and Standards at the National and LocalLevels: National and municipal environmental policies are frequently atodds This may assist loans in making a variety of decisions, includingplant location, product development, and pricing strategy

- Climate Change Impact: How will climate change affect the businessmodel and supply chain for loans? If the supply chain is not flexible, forexample, shipments from one region of the world may be delayed due torapid climatic fluctuations, resulting in bottlenecks

● Legal- Adherence to Common Law: Does the country follow common law,

which is applied uniformly to all parties – domestic and international?

Loans cannot be confident of the decisions if the court procedure isarbitrarily structured.

- Data Protection Regulations: Loans must determine what data protection

laws exist in the nation and what steps must be taken to comply withthem

- Securities Law: What are the country's securities laws, and what are the

requirements for a firm to be listed on a national or regional stockexchange?

- Protection of Intellectual Property Rights: Loans should consider the

amount of protection that intellectual property rights receive under thecountry's legal system

d) Objectives- Business objective: Promote customers to use Home Credit's services

during the Lunar New Year and after Tet

+ Building the image of a brand that is always innovating withcreative and meaningful communication activities, which fewbusinesses in the same industry do

e) Target audience

- Brand: focus on 3 groups Freelancers: Business, tech drivers, tailors, … Group of unskilled workers: Workers, long-distance drivers Fresh graduates go to work

- 2022 Lunar New Year's campaign "Tết đủ là Tết vui": hit to the targetaudiences behind:

 First jobber (young people working for the first time) Workers, office workers

 Young family

-> This is the group of objects:

 Open-minded, have a positive point of view to the consumer finance

industry Nowadays, borrowing is not a negative thing, but it becomes atool to support everyone's life

 Constantly using technology and most cannot live without smart devices. Prefer fast, accurate experiences on online and mobile platforms to

traditional interactive activities With average income, they often have a need to borrow money for

investment, business, shopping,  Prefer the type of installment purchase to buy household appliances such

as washing machines, refrigerators, ovens, smartphones, laptops, etc. Pay attention to social and community activities This is also the group

who regularly participate in and respond to social and communityactivities, charity activities, and donations the most

=> Based on those factors, Home Credit needs to make a communicationcampaign with diverse methods, using a variety of social media channels tocommunicate In addition, the message needs to be simple but to the point.Moreover, collaborating with KOLs should also be focused on by the brand.They ought to cooperate with KOLs that are attractive to young people, have aclose image as well as have similarities with the target audience.

=> Capturing the moment, the development of technology, knowing how to hitthe target customer is young people, Home Credit has created a successfulcampaign, suitable for the target audiences, with strong meaning profoundhumanism, associated with the nation's traditions.

4 OVERALL EVALUATE Evaluation of the success of the 2022 Tet campaign "Tết đủ là Tết vui"

The campaign has achieved the communication goals set by Home Credit, indetails:

+ Increase the brand love, new experiences for the target audience with the“Tết đủ là Tết vui” MV attracted over 5.3 million views and reachedalmost 4 million viewers, rank 8 in “Younet Media Index Top 20Campaign Tết 2022” charts

+ Building and strengthening brand identity: the consumer loan companyresponsibly and actively promotes ESG activities - a set of standards tomeasure factors related to sustainable development and influence Theimpact of businesses on the community: Home Credit Vietnam team alsocarried out the Home Love charity campaign: giving 1000 gifts todisadvantaged children and orphans because of the Covid epidemicacross the country with the message "Tết đủ là Tết trao đi" from the saleof Tet gift sets

+ Building an image of an ever-innovating brand with creative andmeaningful communication activities, which few businesses in the sameindustry do: applying interactive games on social platforms with thenumber of participants up to nearly 250,000 people , using a brandidentity set including banners, gift sets, billboards at shopping malls,

The factors that make up the success of the campaign “Tết đủ là Tết vui”a) Target audience

This is the most important factor for the success of the campaign The proofis for the campaign "Tết đủ là Tết vui", thanks to specifying the target audienceas young people, belonging to Gen Z, understanding customer insights whohave a positive view, mind-open to consumer finance and borrowing Inaddition, with the target audience is Gen Z, Home Credit can apply manydifferent electronic communication channels because they are the group ofpeople who use the internet the most From there, businesses can diversifyforms of message communication, making the campaign more flexible andcreative, and at the same time can reduce the cost of campaign implementation