Group Project Report Of Service Marketing Vietnam Airlines.pdf

HOW TO DELIVER CUSTOMER - EXPERIENCE VALUE ADNVALUE THROUGH THE 3.1 SERVICE QUALITY, 2 3.1.1 About reservation 2 3.1.2 In-flight services and flight crew 5 3.1.3 About aircraft quality 6

VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY FALCULTY OF BUSSINESS ADMINISTRATION

GROUP PROJECT REPORT OF SERVICE MARKETING

VIETNAM AIRLINES

Lecturer: Dr Phan Ha Thanh Nha Subject: Service Marketing Group: 02

Group members:

1 Phan Hitu Thanh Binh

2 Sin Gia Han

3 Nguyén Ngoc Lan Anh

4 Nguyén Thi Tuyét Nhung

3 Trương Minh Khoa

Ho Chi Minh City, DECEMBER 2021

LECTURER COMMENT

WORK OF EACH MEMBER

No 1D Full Name Assigned Task Evaluate

z | - Build customer engagement

1 |719H0096 | Nguyễn Thị | | Word format editing Tuyêt Nhung 100%

- Present

- How to deliver customer - experience Phan Hitu | value: value through the marketing

2 | 719H 1 2H0835 Thanh Bình | mix: 7P 00%

- Present

Nguyễn Ngọc | - Customer attrition

3 |712H0007 Lan Anh - Present 100%

- Introdution

- Describe the service

4 | 719H0032 | Sin Gia Han | - Describe the target customer 100%

3 HOW TO DELIVER CUSTOMER - EXPERIENCE VALUE ADNVALUE THROUGH THE

3.1 SERVICE QUALITY, 2 3.1.1 About reservation 2 3.1.2 In-flight services and flight crew 5 3.1.3 About aircraft quality 6 3.1.4 About boarding/deplaning and baggage 7 3.1.5 About the check-in procedure 8

TABLE OF PICTURE

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INTRODUCTION

The national flag carrier, Vietnam Airlines, a four-star airline, is one of the most

prestigious and highest-quality airlines in Vietnam that is always chosen by passengers

as a travel companion VNA is one of the brands that not only succeeds in the domestic market but also leaves a strong impression on the world market, thereby promoting and helping the "Vietnam" brand to rank up

Vietnam Airlines has achieved many outstanding achievements in the air transport industry such as being one of the top 50 leading brands in business fields in Vietnam in 2020, voted by Forbes Vietnam by value and field With a brand value of

114.1 million USD, Vietnam Airlines is ranked 19th and the No 1 brand comes from

the field of Vietnam Air Transport Services In the same year, Vietnam Airlines has made continuous efforts and achieved World Travel Awards 2020 The World Travel Awards (WTA) is likened to the "Oscar of the tourism industry” to honor travel service providers, like the world's best airline This is the fifth time in a row that VNA has received WTA awards at the Asian level The WTA announced that they are awarding VNA with three prestigious awards: "Asia's Leading Airline for Cultural Identity”,

"Asia's Leading Airline" and "Asia's Leading Airline” for Economy and Premium Economy classes” (in the annual report 2020) As of December 31, 2020, Vietnam

Airlines has 25 branches, present in 20 provinces and cities in Vietnam, 5 affiliated units,

31 branches and offices, and representatives abroad

During the period of establishment and development, Vietnam Airlines not only made an important contribution to the construction and development of Vietnam's civil

aviation industry, but also made a great contribution to the economic, social, and career

development, industrialization and modernization of the country

1 Describe the service

“Services are intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value” Services classified as people-based or equipment-based and Vietnam Airlines is an equipment- based service that provides services related to aviation such as air cargo and passenger transportation and other specialized aviation services

2 Describe the target customer

Vietnam airlines’ target customers are aged from 18 to under 46, from decent to high incomes (from 5-10 million per month and over 10 million per month) They use Vietnam Airlines services for the main purposes of business, tourism and visiting

relatives

Customers of Vietnam Airlines have the criterion of "Time is money”, request on time and have high standards for customer service and flight experience For high- income customers, business people, who require convenience and comfort in their journey They want to be able to connect to the internet 24/7 to serve their work In addition, they also ask for privacy, comfort and the best service of the flight The next group is tourists or customers who need to travel by plane They are middle-income people who want to experience good and convenient services Vietnam Airlines has

different customers and different services for each segment, such as full-service, traditional, and low-cost

3 How to deliver customer - experience value adnvalue through the marketing mix: 7P

3.1 Service quality

The service quality of an airline could be measured by these 6 following determinants: (1) boarding/deplaning/baggage, (2) check-in, (3) in-flight services, (4) reservation, (5) aircraft, and (6) flight crew As Vietnam Airline self-positioned as a 4- Star Airline, they had won the customers’ heart by satisfying them with all the factors

Based on the research “Customer satisfaction of Vietnam Airline domestic” by Giao et al., the highest scores are given to reservation (mean = 3.60), followed by in- flight services (3.56) and flight crew (3.51), while medium scores are given to aircraft (3.47) and boarding/deplaning/baggage (3.40) and the lowest one to check-in (3.31) 3.1.1 About reservation

Customers can help buy tickets on the website and other methods: Operating hours: 24 hours a day, seven days a week Vietnam Airline supports all forms of booking tickets to serve the convenience of customers such as: On-site order entry, Telephone order, Online through website, Mobile app, Applications associated with VNA online ticketing service (Vietnambooking.com, Agoda, Traveloka, MOMO) (Thém hinh cho

mỗi cái)

On-site order entry: For direct ticket sales at the airport, customers only need to

go to the airports that VNA links to buy tickets at the counter The procedure is simple, effective and answers inquiries directly to customers

Picture 3.1: Airport Check- in

Telephone: When calling the Vietnam Airlines ticketing center, passengers will

be enthusiastically guided by the staff at Vietnam Booking ticket offices to advise and assist in answering all questions and booking Vietnam Airlines tickets

Picture 3.2: Telephone order

Online: The use of the online booking service will have to be made within 24 hours after booking and at least 48 hours before departure time If the above time is over, the customer will have to rebook a new ticket and the fare may be different from the old fare In addition, customers can call directly via the hotline 1900 1100 When calling the VNA switchboard, you will be consulted quickly and include all kinds of accompanying services when consulting before each trip

Picture 3.3: Booking Online

Mobile app: The Vietnam Airlines flight booking app on the Android and i0S platforms is one of the smartest and most convenient applications, bringing the world into the hands of customers, helping them have new, cheap and meaningful journeys From this convenient application, customers can easily search for the latest itineraries, look up flight schedules and fares, and hunt for attractive promotional tickets from

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Picture 3.4: Vietnam Airlines app

Applications associated with VNA online _ ticketing service: Vietnambooking.com, Agoda, Traveloka MoMo is the first e-wallet of Vietnam Airlines to officially set up a payment booth with many extremely attractive offers,

information about flights, flight times, fares, etc both domestic and international

programs are always updated

Staff and flight attendants: always welcome and greet customers in a polite and welcoming manner Create a professional and polite atmosphere

Picture 3.6: VNA’s crew

Food and beverages: On the flight, meals are thoughtfully prepared with a variety

of dishes In addition, customers can also prepare accompanying drinks by the staff

Picture 3.7: VNA serves food and beverages

- Magazines, entertainment, newspapers: Equipped with modern technology equipment to meet the needs of passengers on flights Passengers can watch the latest movies, play interactive games, listen to music or edit documents, and prepare content for meetings

Over nearly a quarter of a century, Vietnam Airlines has developed into a large- scale airline, constantly upgrading modern aircraft lines of Boeing and Airbus to meet the needs of commercial transportation Currently, Vietnam Airlines owns:

- Wide-body fleet: 14 Airbus A350-900, 11 Boeing 787-9 Dreamliner and

3 Boeing 787-10 Dreamliner In particular, the Boeing 787-9 Dreamliner marked the 100th aircraft event of Vietnam Airlines, opening a new development period

- Narrow-body fleet: 52 Airbus A321, 14 Airbus A321neo and 6 ATR-72 3.1.4 About boarding/deplaning and baggage

Although the score of boarding/deplaning and baggage is low compared to the other determinants, it is rated Vietnam Airlines in the top 10 of On-time Performance (OTP) index which increased to 89.2% in 2018 In addition, Vietnam Airlines is ranked absolutely 7/7 stars for aviation safety according to AirlineRatings - the world's most prestigious website specializing in assessing the safety and service quality of 435 global airlines

The process of Vietnam Airlines safekeeping:

There are several steps in the baggage handling system at the airport The passengers go to the screening area when they arrive at the airport The staff will check the tickets, the baggage, and the passengers The baggage will be checked using x-ray machines to assure that the passengers do not carry forbidden materials such as explosives and incendiary materials, flammable items, gasses and pressure containers,

matches, oxidizers and organic peroxides, poisons, infectious materials, corrosives,

radioactive materials, magnetic materials, and other dangerous items During this check-

in step, the officer makes a decision whether the baggage is clear of forbidden materials

or not If the decision is positive, the baggage goes to the check-in area If the decision

is negative, the baggage cannot enter the check-in station At the check-in station, the passengers make confirmation of the flight, and their baggage will be weighted and numbered In this station, the baggage will be separated from the passengers The baggage goes to the departure conveyor station and will be sorted manually based on destination by the officer before the baggage is loaded onto the airplane The passenger goes to the next station to pay tax and to be checked for the second time using an x-ray machine before going to the waiting area

the system of airport

Out from | No

the system

Flight confirmation and

baggage weight & numbering

Out from the system screening

Passenger loading to

plane

Picture 3.9: VNA’s Baggage handling System

Passengers traveling on international flights should be aware of the limit on the capacity of bottles, jars, and liquid containers (water, viscous substances, spray solutions) in hand luggage not exceeding 100 ml The total liquid volume that each passenger is allowed to bring is 1 liter This limitation does not apply to liquids that are

medicinal for the sick, milk, or baby food with certain conditions

Passengers traveling on domestic flights are not subject to the same restrictions

on carrying liquids as on international flights However, it is necessary to be aware of bringing alcohol and alcoholic liquids For smelly goods (fish sauce, durian .), airlines

do not accept carriage in hand luggage

3.1.5 About the check-in procedure

Vietnam Airlines has already made a clear and fast check-in procedure for passengers There are several ways of check-in for customers such as: online check-in, telephone

check-in, in-town check-in, kiosk check-in and airport check-in

e Step 2: Check flight information

e Step 3: Enter passport information (for destinations where passport information is required)

e Step 4: Select/Change your seat

e Step 5: Choose a method to receive an Online Boarding Pass

Telephone check-in

Passengers who have checked-in through telephone are allowed to go straight to the security area and board the aircraft without queuing at airport counters if they do not have checked baggage

Just by making a phone call, passengers will be assisted to check-in their flights quickly and select seats in advance as per their requests

In-town check-in

Passengers can check-in, arrange baggage drop and receive their boarding passes

in advance at our office, and then freely enjoy their time before boarding at the airport

This service allows passengers not only to shorten the queuing and waiting time spent at the airport, but also to plan and control their itinerary more effectively Passengers can enjoy their trip in an easier and more convenient way

3.2 Price strategy

3.2.1 Vietnam Airlines’ Business Class

Business class has a booking symbol with decreasing priority, respectively: J, C, and D Among Vietnam Airlines ticket classes, this is the ticket class that receives the most priority because of outstanding services such as easy ticket change (name, date and time, flight itinerary .) and good services Best of all, there is a private lounge area and the most comfortable seats on the plane Generally, Business Class seats are 1.5 times wider than Economy Class seats, and the backrest can be adjusted to recline more (it can even recline parallel to the floor) At Vietnam Airlines, long-haul flights are often used

by the airline with Boeing 777 aircraft with a business seat designed to be 51cm wide and the maximum recline of the seat back up to 150°

3.2.2 Vietnam Airlines’ Deluxe Economy Class

The economy class of Vietnam Airlines is also divided into many classes In which, the special or flexible economy class (Deluxe Economy) will receive much more priority The booking symbols of economy class in descending priority for domestic

tickets are M, K, L, N, Q, N, R, T; with international tickets are: W, Z, Y, B, M, S, H,

K, L, Q For flights with a flight time of more than 90 minutes, passengers will be served

variety of drinks such as juices, soft drinks, tea, coffee, beer, spirits, wine, etc or a light

meal With a flight lasting more than 2 hours, you will be served a delicious hot meal and can choose from Asian or European dishes, or make other special requests (if any) for at least 24 hours before flight departure In each seat in this ticket class, there is a small TV screen to entertain passengers by watching movies, watching TV programs, listening to music or playing games

3.2.3 Vietnam Airlines Economy Class

The economy class (Promo) with the booking symbols U, A, E, and P applies to domestic and international tickets Economy class is the cheapest ticket class among Vietnam Airlines ticket classes, so the accompanying utilities will be reduced to the

10

maximum With special economy ticket class, passengers can exchange tickets but have

to pay a certain fee, while with super economy ticket class, they will not be allowed to change tickets It is a low-cost airline ticket, however, the quality of service and facilities

of Vietnam Airlines is slightly better than that of other airlines, so this will still be the first choice of many passengers

3.3 Distributing strategy

Vietnam Airlines is one of the first airlines in Vietnam and has expanded its distribution network rapidly Vietnam Airlines’ multi-channel distribution strategy 1s implemented in two main forms: direct and indirect, including a system of agents and ticket offices distributed throughout Viet Nam as well as abroad

In the domestic market, Vietnam Airlines is using mainly sales channels through agents spread nationwide, along with a network of ticket offices in the branch system of Vietnam Airlines located in city centers There are also last minute ticket offices at the airport to ensure timely service

For the international market, Vietnam Airlines has branches in city centers around the world, where there are commercial routes operated by Vietnam Airlines from/to The system includes more than 30 box offices and hundreds of agents appointed

around the world on all continents

In addition, Vietnam Airlines also distributes online through Vietnam Airlines’s website Famous travel websites such as Traveloka, Booking and other websites with millions of users are also linked with Vietnam Airlines so that customers can easily book tickets for their trips

The marketing strategy of Vietnam Airlines in distribution at the box office:

- In Vietnam: 0% commission, 2% discount on international sales The discount

policy is built in the form of "hundreds of flowers blooming” in domestic markets

- In Northeast Asia: 7% commission In addition, Vietnam Airlines also applies

a discount policy for agents who are key agents with discounts of 1%, 1.5%, and 2% of

revenue

- European market: the cost of applying commission is 5% using a flexible pricing policy and a competitive product policy

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