Marketing plan for Megavnn service of Ho Chi Minh city VNPT

TRƯ NG ð I H C M TP HCM UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB4 H THANH H I MARKETING PLAN FOR MEGAVNN SERVICE OF HO CHI MINH CITY VNPT MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutor’s Name: Dr LE THAI THUONG QUAN Student’s Name: HO THANH HAI Ho Chi Minh City (2011) ii COMMITMENT I hereby committed that the thesis content was prepared and written by myself with information obtained from reliable sources for the partial fulfillment of the requirement for the degree of Master in Business Administration program Ho Chi Minh City, February, 2012 HO THANH HAI iii ACKNOWLEDGEMENT I sincerely express my thanks to Dr Le Thai Thuong Quan - my advisor who has dedicatedly helped full's me to finish this project I honorably show my thanks to - Dr Tran Anh Tuan, Co-Director of Vietnam-Belgium program - MBAVB faculty members - The three Coordinators: Mr Serge Bywalski, Ms Hien and Ms Ha – program coordinators Who have whole-heartedly organized the Vietnam-Belgium management MBAVB4 course successfully I am appreciated to thank: - The Director and all of colleagues in Sales Department of Ho Chi Minh City VNPT - My classmates of MBAVB4 - My family, my friends, my colleagues Who supported and created excellent conditions for me to complete this project iv TUTOR’S COMMENTS This topic is meaningful and practical in the current context of the ADSL market, where there is fierce competition between suppliers The student has shown that he understands the method and his ability to the research to produce applicable results The project is approved for public presentation Ho Chi Minh City, February 23rd, 2012 Tutor’s signature Le Thai Thuong Quan v ABSTRACT Ho Chi Minh City VNPT (HCMC VNPT) is the subsidiary of VNPT, one of the leading system telecommunication in Vietnam In Ho Chi Minh City, HCMC VNPT has been operating for many years and providing well service to many customers Given the fact that there are big opportunities as Vietnam is growing fast and more investment in the telecommunications industry is expected, it is necessary for HCMC VNPT to maintain competitive and increase market share The thesis therefore goes deeply into analyzing the internal and external environment of the company for MegaVNN service which is one of key service of HCMC VNPT to find the fittest strategy for the company and then apply to marketing plan The thesis firstly conducts an external audit of the company environment to figure out opportunities and threats Following the external audit, an internal audit is done to illustrate the strengths and weaknesses Putting altogether, the Quantitative Strategic Planning Matrix is built up to choose the best suitable strategies among four strategic, service development, service diversification, trademark building and development investment strategy To make the study more realistic and objective, one surveys and interview are conducted The result of the surveys and information collected from direct interview are consolidated into the Quantitative Strategic Planning Matrix Based on main findings from the Quantitative Strategic Planning Matrix, differentiation strategy was chosen then apply to marketing –mix for building marketing plan for MegaVNN service Some recommendations have then been suggested to build marketing plan for HCMC VNPT vi TABLE OF CONTENTS COMMITMENT ii ACKNOWLEDGEMENT iii TUTOR’S COMMENTS iv ABSTRACT v ABBREVIATION x LIST OF FIGURES xi LIST OF TABLES xii Chapter 1: INTRODUCTION TO THE STUDY 1.1 RATIONALE OF THE STUDY: 1.2 STRATEMENT OF THE PROBLEM: 1.3 OBJECTIVES AND QUESTIONS: 1.3.1 Research Objectives: 1.3.2 Research question: 1.4 RESEARCH DESIGN: 1.4.1 Primary data: 1.4.2 Secondary data: 1.5 SCOPE OF THE STUDY: 1.5.1 Space: 1.5.2 Time: 1.5.3 Objects of research: 1.6 STRUCTURE OF THE STUDY Chapter 2: LITERATURE REVIEW vii 2.1 THE CONCEPT AND ROLE OF MARKETING: 2.1.1 The concept: 2.1.2 The role : 2.2 OUTSIDE ENVIRONMENT ANALYSIS: 2.2.1 Macro environment: 2.2.2 Micro environment 2.3 INTERNAL ENVIRONMENT EVALUATION: 2.4 MARKETING MIX (4P): 2.4.1 Concepts: 2.4.2 The components of the marketing mix 10 2.5 SWOT MATRIX: 14 2.5.1 SWOT Analysis 14 2.5.2 The SWOT Matrix 17 2.6 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM): 18 2.6.1 Define QSPM: 18 2.6.2 Construction of a QSPM: 18 Chapter 3: 21 THE ANALYSIS OF MEGAVNN SERVICE BUSINESS ENVIRONMENT 21 3.1 COMPANY'S PROFILE: 21 3.1.1 Establishment and development history: 21 3.1.2 Mission and target of company: 21 3.1.2.1 Mission of Company: 21 3.1.2.2 Target of Company: 22 3.1.3 Philosophy: 23 3.1.4 Organizational structure: 23 viii 3.1.5 3.2 The products and services: 24 EXTERNAL ENVIRONMENT ANALYSIS: 25 3.2.1 Macro environment: 25 3.2.2 Micro environment: 27 3.2.2.1 3.2.2.2 Competitors: 30 3.2.2.3 3.3 Environmental industry: 27 Customers: 33 INTERNAL ENVIRONMENT ANALYSIS: 34 3.3.1 Internal evaluation: 34 3.3.1.1 Human resource: 34 3.3.1.2 Revenues and Subscribers of MegaVNN Service: 35 3.3.1.3 Research - Development: 35 3.3.1.4 Production - working: 36 3.3.2 Evaluate MegaVNN service of the Company: 36 3.3.2.1 Define MegaVNN Service: 36 3.3.2.2 The facilities at the MegaVNN Service: 37 3.3.2.3 Customer satisfaction with MegaVNN service: 37 Chapter 4: 40 MARKETING PLAN FOR MEGAVNN SERVICE OF HCMC VNPT 40 4.1 SWOT MATRIX: 40 4.2 SWOT STRATEGIES: 41 4.3 BUILDING QSPM MATRIX: 43 4.4 STRATEGIC SELECTION ASSESSMENT: 45 4.5 MARKETING MIX STRATEGY: 45 4.5.1 Develop product and service plans: 46 ix 4.5.1.1 Objective: 46 4.5.1.2 Product/ Service: 46 4.5.2 Price : 49 4.5.3 Develop plans to distribute products and services: 49 4.5.3.1 POS: 49 4.5.3.2 Online: 49 4.5.3.3 Development collaborative sales: 49 4.5.3.4 Contact center: 49 4.5.4 Promotion: 49 4.5.4.1 Advertising: 49 4.5.4.2 Promotions: 50 4.5 BUDGET ESTIMATES: 53 4.6 PLANNING HUMAN RESOURCE DEVELOPMENT: 54 4.7 TIMES CHEDULE: 54 Chapter 5: 56 CONCLUSION AND RECOMMENDATION 56 5.1 CONCLUSION: 56 5.2 RECOMMENDATIONS: 57 5.3 RESTRICTION ON TOPICS /STUDY ORIENTATION IN THE FUTURE: 57 REFERENCES 59 Appendix 1: QUESTIONNAIRE FORM FOR MegaVNN SERVICE i Appendix 2: METHOD OF SURVEY RESULTS iii Appendix 3: INTERVEWEE PROFILE iii Appendix 4: MODEL POSTER FOR ADVERTIZING ON SUMMER 2012 iv x ABBREVIATION ADSL BRAS B2C C2C EVN Telecom FPT FTTX GDP GNP GOL HCMC HTC IP IPTV ISDN ISP IXP MegaVNN NGN OSP PDA PSTN QSPM SPT SWOT TAS VDC VIETTEL VNNIC VNPT VOD VPN VTC VTI VTN WAN WEF Wifi WTO xDSL Asymmetric Digital Subscriber Line broadband remote access server Business to customer Customer to customer Electric Viet Nam Telecom Co FPT Co Fiber To The x Gross Domestic Product Gross National Product Game On Line Ho Chi Minh City Hanoi Telecom Co Internet Protocol Internet protocol Television Integrated Services Digital Network Internet Service Provider Internet exchange Points Brand name of the ADSL service of HCMC VNPT Next Generation Network Operation Services Provider A personal digital assistant Public Switching Telephone Network Quantitative Strategic Planning Matrix Saigon post and Telecommunication Co the Strengths, Weaknesses, Opportunities, and Threats Matrix Total Attractive score Vietnam Data Center VTETTEL Telecom Co Vietnam internet Network Information Center Viet Nam Post and Telecommunication Voice Over Demand Virtual private Network Vietnam multimedia telecom corporation Vietnam Telecom International Vietnam Telecom National Wide area network World Economic Forum the trade name for the popular wireless technology World Trade Organization X Digital Subscriber Line 51 Not get ADSL - Offering 600,000 - Offering 840,000 modem: VND MegaVNN VND MegaVNN access charges for 24 access charges for 24 Pay 170,000 VND per machine (including 50,000 VND connection fee and 120,000 consecutive months, consecutive months, up to 25,000 VND up to 35,000 VND per month per month (excluding (excluding subscription charge) subscription charge) VND of using charge) 2: Installing new Get ADSL - Offering 01 ADSL - Offering 01 ADSL MegaVNN service modem: modem; modem; Pay 520,000 VND - Offering 480,000 - Offering 720,000 per machine VND MegaVNN VND MegaVNN (including 400,000 access charges for 24 access charges for 24 VND connection consecutive months, consecutive months, fee and 120,000 up to 20,000 VND up to 30,000 VND VND of using per month per month charge) (excluding (excluding subscription charge) subscription charge) Not get ADSL - Offering 480,000 - Offering 720,000 modem: Pay VND MegaVNN VND MegaVNN 420,000 VND per access charges for 24 access charges for 24 machine (including consecutive months, consecutive months, 300,000 VND up to 20,000 VND up to 30,000 VND connection fee and per month per month 120,000 VND of (excluding (excluding using charge) subscription charge) subscription charge) on separate cables Table 4.5.4.2a: Promotion to customers register MegaVNN with charge calculated by downloads and uploads capacity 52 b Customers register full package of MegaVNN service Target Options customer Promotion value MEGA EASY MEGA FAMILY 1: Installing Get ADSL - Offering 01 ADSL - Offering 01 ADSL new modem: modem; modem; Pay 150,000 - Offering 1,200,000 VND - Offering 1,680,000 VND VND per MegaVNN access charges MegaVNN access charges machine for 24 consecutive months, for 24 consecutive months, up to 50,000 VND per up to 70,000 VND per month (excluding month (excluding subscription charge) subscription charge) MegaVNN service on the telephone line available Or installing both Not get - Offering 1,440,000 VND - Offering 1,920,000 VND MegaVNN ADSL MegaVNN access charges MegaVNN access charges and fixed modem: for 24 consecutive months, for 24 consecutive months, up to 60,000 VND per up to 80,000 VND per month (excluding month (excluding subscription charge) subscription charge) telephone services Pay 150,000 VND per machine 2: Installing Get ADSL - Offering 01 ADSL - Offering 01 ADSL new modem: modem; modem; Pay 400,000 - Offering 960,000 VND - Offering 1,200,000 VND VND per MegaVNN access charges MegaVNN access charges machine for 24 consecutive months, for 24 consecutive months, up to 40,000 VND per up to 50,000 VND per month (excluding month (excluding subscription charge) subscription charge) Not get - Offering 1,200,000 VND - Offering 1,440,000 VND ADSL MegaVNN access charges MegaVNN access charges for 24 consecutive months, for 24 consecutive months, MegaVNN service on separate cables 53 Pay 400,000 up to 50,000 VND per up to 60,000 VND per month (excluding modem: month (excluding subscription charge) subscription charge) VND per machine 3: Convert No - Offering 600,000 VND - Offering 720,000 VND from application MegaVNN access charges MegaVNN access charges MegaVNN borrowed for 12 consecutive months, for 12 consecutive months, package ADSL up to 50,000 VND per up to 60,000 VND per with charge modem month (excluding month (excluding subscription charge) subscription calculated to full package (in the same package or from a lower to a higher package) Table 4.5.4.2b: Promotion to Customers register full package of MegaVNN service - In addition to the promotion policies to implement customer care program in the form of a discount factor to attract and retain customers - Each group of customers in each sector and industries with preferential policies for different prices 4.5 BUDGET ESTIMATES: Marketing budget base on expected revenue, but not exceed 5%, to ensure the budget for sales and other activities (Have strong brand in the long term so we can reduce the cost of communications and advertising) 54 No Contents Cost/Revenue (VND) Cost of Advertising 3,868,068,000 Cost of Promotion 9,000,000,000 Revenue 315,000,000,000 Table 4.6: Budget estimates for marketing plan for MegaVNN Service 4.6 PLANNING HUMAN RESOURCE DEVELOPMENT: Human resource is very important for company and marketing plan Therefore HCMC VNPT should develop employee such as: - Establishing professional sale staff accordance with each service, and professional consultants to support big customers who must really understand customer requirements as well as services provided on broadband network Initial and later development is almost contributed by the effort of these persons - Setting up the staff of exploiting integration network, not separated systems as before - Continuously update knowledge from device manufacturers and advanced service exploiter in the world - Besides, a motivate policy is also key factor for enterprises to develop human resource sustainable, such as wage policy applied by revenue for sale force - Creating enterprise culture conformity with community is widely applied day by day 4.7 TIMES CHEDULE: 55 Programs Month 10 Advertizing Promotional Service development Strategy Evaluating the results of the plan Table 4.8: The times schedule for marketing plan of MegaVNN Service 11 12 56 Chapter 5: CONCLUSION AND RECOMMENDATION This chapter is to make conclusion on the research questions made for this study in chapter one based on data findings from chapter four and to propose recommendation for HCMC VNPT to improve the annual marketing plan In addition, limitation of this study and future suggestion are reviewed 5.1 CONCLUSION: In recent years, the users of high-speed internet (ADSL) who were the organizations and individuals increased over the years, they not only use the internet but they also want a guaranteed quality of service, support during use, reducing price, increasing the utility of the service Recognizing trends and market potential in the field of providing high-speed Internet service in HCMC, the service providers in this sector have increased promotion activities in order to attract customers on their side They are HCMC VNPT, Viettel, SPT and FPT Currently, existing mix of difficulties, obstacles and opportunities in this potential market, it requires service providers know, identify and select the correct direction in order to good strategy Recognizing the need for this problem, HCMC VNPT also attention to marketing activities in order to better and improving the quality of services to satisfy customer needs In the coming years to maintain market share, enhance competitiveness, increase revenue and meet customer demand which are increasing day by day, HCMC VNPT must have marketing-mix concrete, accurate pricing, product, distribution channel and promotion to match the trend of development, avoiding the threats of the market In this thesis I was to plan marketing mix fits on the market that can be applied to the VNPT HCMC I have combined the theoretical basis of modern marketing as a basis, and must collect and analyze the opportunities, threats outside the business and finally to identify something which are the strengths, weaknesses of the business for building the right marketing plan During the planning process I use two tools to build and choose 57 strategy that are SWOT matrix and QSPM matrix In this plan I would have built the time schedule, location can make the most effective However, this plan has the drawbacks of it as there are many strategies that make by SWOT matrix but I only choose four which are included in the analysis and selection by QSPM matrix, while the other strategies are not included in the evaluation and selection of the following: - The first is caused by information on the above plan is not sufficient basis for evaluation To review this plan, the unit should provide more information - Second, in this thesis the optimal strategy of choice is "Service development strategy," but to perform well for this plan, first we need more research about "assess the level of customer satisfaction for services of VNPT HCMC" so that we can adjust the plan, build and deploy the most effective 5.2 RECOMMENDATIONS: Implementation the Marketing plan to highly effective, the unit should stick to the actual situation and the ongoing information on market which the plan needs Creating a good annual marketing plan, the unit should be specified from the stage of research, implementation and evaluation then transferred to the department responsible for implementation 5.3 RESTRICTION ON TOPICS /STUDY ORIENTATION IN THE FUTURE: - Implementing the topic in too short period of time and obliged to analyze data collecting from many information sources will certainly lead to unavoidable mistakes Besides, with the limitation in data security that can't be shown, I can just produce final comments/conclusion through discussion with experts in the studied field - The current key problem is to deploy support infrastructure service, creating technical basis to develop broadband In order to this task, it's necessary to have efforts from the state and all society In which, role of organizations, enterprises holding national telecommunications and Internet infrastructure is very important Because, simply, only this organizations with power of technology, finance and other strengths (prestige, 58 legality ) have enough conditions to deploy broadband services, meeting current requirements - In the future trend, broadband will not be able to escape from development tendency of wireless including mobile system It means that broadband will be integrated into mobile devices; research on usage demand, technology applying broadband on mobile will be great progress for telecommunications enterprise in the future 59 REFERENCES Kotler Philip (2002), Marketing Management Millennium Edition, Pearson Custom Publishing, United State of America Philip Kotler, Eleventh Edition (2003), “Marketing Management”, Pearson education, Inc., Uper Saddle River, New Jersey David, Fred., Thirteenth Edition, Strategic Management- Concepts and Case, Prentice Hall, New Jersey, 2009 Cimigo (2010), “Net-citizens report 2010 - Internet Usage and Development in Vietnam” Hoang Trong & Chu Nguyen Mong Ngoc (2008), “Statistical data analysis with SPSS”, Statistics Publisher Lecture and slide from the course C.Gruslin, Market Research J.P.Beayerns, Marketing M.Clase, Applied Marketing APPENDICES Appendix 1: QUESTIONNAIRE FORM FOR MegaVNN SERVICE Individual-family households Part I: Customer information Personal Full name or company name subscribers : Business Phone ……………………………………, Contact phone number:…………………………………… Installation address: …………………………………………………… Part II: Survey of customer satisfaction Question 1: Evaluation of procedures for service providers of VNPT Simple (5) Relatively simple (4) Normal (3) Complex (2) Very Complex (1) Question 2: Evaluation of service attitude of sales staff Very caring (5) flirt (4) Normal (3) Do not take crystal (2) very poor (1) Question 3: Please tell us about the quality of service is using very good (5) good (4) Normal (3) Poor (2) Very poor(1) Question 4: In the last months of the service has been lost? If there is how many times? No (5) 01 time (4) 02 times (3) 03 times (2) Over 03 times (1) Question 5: Do you know the phone number for calling to repair the damaged service? Knowing (5) Do not know (1) Question 6: Evaluation of the customer on time waiting for repairs to damaged services Very satisfied (5) Satisfaction (4) Normal (3) Not satisfied (2) Very dissatisfied (1) Question 7: Evaluation of service attitude of staff installation and repair Very caring (5) flirt (4) Normal (3) Do not take crystal (2) very poor (1) Question 8: How about for getting a monthly charge notice? Always get (5) Rarely get (2) regularly receive (4) Do not get (1) Occasionally get (3) ii Question 9: Please evaluation the payment of monthly charges Very satisfied (5) Satisfaction (4) Normal (3) Not satisfied (2) Very dissatisfied (1) Question 10: Please for general comments about the service providers VNPT Very satisfied (5) Satisfaction (4) Normal (3) Not satisfied (2) Part III: Information Interviewer Full name: …… Name of POS : The survey was designed at the minute hours on months 2011 Very dissatisfied (1) iii Appendix 2: METHOD OF SURVEY RESULTS of Calculation of points Number of question (1) Question Content Question Weight (2) Procedures for service providers (3) There are 05 selected and scored from to in order of answers, the averaged rating are calculated = Total of score / total number of surveys Question Service attitude of Similarly to the first question 0.05 = (3)*(4) (4) 0.05 Result (5) = (3)*(4) sales staff Question Quality of service Similarly to the first question 0.3 = (3)*(4) Question damage Similarly to the first question 0.02 = (3)*(4) Question Hot line support There are 02 choices, choices: have reached a scale of 5; not achieve scale is 1, the results are similar to question 0.03 = (3)*(4) Question Time for repair There are 05 choices from to in order of answers, the results are calculated as question 0.1 = (3)*(4) Question The attitude of the Similarly to the first question 0.05 = (3)*(4) technical staff Question How about for getting a monthly charge notice? Survey for the payment of charges Question Evaluationthe payment of monthly charges Survey for the payment of charges Question 10 General comments about VNPT HCMC Similarly to the first question 0.4 Appendix 3: INTERVEWEE PROFILE No Profile Sample 300 Object of study Individual-family households (subscriber) Business (subscriber) Method 150 150 Directly interview via sale staff of all POS when customers come to trade Time From 25/09/2011 to 25/10/2011 = Total number of choosed for each option/ total number of surveys = Total number of choosed for each option/ total number of surveys = (3)*(4) iv Appendix 4: MODEL POSTER FOR ADVERTIZING ON SUMMER 2012 ... approved for public presentation Ho Chi Minh City, February 23rd, 2012 Tutor’s signature Le Thai Thuong Quan v ABSTRACT Ho Chi Minh City VNPT (HCMC VNPT) is the subsidiary of VNPT, one of the leading... strategy was chosen then apply to marketing –mix for building marketing plan for MegaVNN service Some recommendations have then been suggested to build marketing plan for HCMC VNPT vi TABLE OF CONTENTS... problems, to help HCMC VNPT have a marketing plan to effectively that is reason I chose this topic "Marketing plan for MegaVNN service of HCMC VNPT" to for his thesis and hopes to contribute to