A STUDY ON CONNECTED MARKETING AND THE CASE OF FPT CORPORATION’S PROJECT VICONGDONG

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS TRAN THI CHIEN A STUDY ON CONNECTED MARKETING AND THE CASE OF FPT CORPORATION’S PROJECT VICONGDONG Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisors: Dr. TRAN DOAN KIM Hanoi – 2010 TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TÓM T TẮ iv TABLE OF CONTENTS vi LIST OF ABBREVIATIONS viii LIST OF TABLES ix LIST OF FIGURES ix INTRODUCTION 1 CHAPTER 1: LITERATURE REVIEW– CONNECTED MARKETING 4 1.1 Definition: Connected Marketing 4 1.1.1 Marketing 4 1.1.2 Connected Marketing 4 1.2. Types of Connected Marketing 8 1.2.1 Word of mouth marketing 8 1.2.2 Buzz marketing 12 1.2.3 Viral marketing 15 1.3 The power of Connected marketing in digital age 18 1.3.1 Widely connection between the company/organization and customer 18 1.3.2 Building customer’s trust 18 1.3.3 Cutting marketing cost 19 1.3.4 Measuring communication result 20 1.4 Marketing model 20 1.4.1 Ways of transferring information 20 1.4.2 Marketing model 22 1.5 The process to practice a Connected Marketing Campaign 24 1.5.1 Customer investigation and choosing Opinion leaders (OL) 24 1.5.2 Creating transferred messages 27 1.5.3 Seeding trials 28 1.5.4 Spreading a Connected Marketing Campaign 32 vi 1.5.4.1 Transferring information principles 32 1.5.4.2 Method of transferring information 33 1.6 Measurement of transferring information 37 CHAPTER 2: EXTERNAL ENVIRONMENT ANALYSIS AND CONNECTED MARKETING ACTIVITY OF VICONGDONG 39 2.1 External environment analysis 39 2.1.1 Conditions for the application of Connected Marketing activity in Vietnam 39 2.1.2 Analysis on charity activities in Vietnam 50 2.2 Connected Marketing activity at Vicongdong 53 2.2.1. Introduction about Vicongdong project 53 2.2.2 Condition for Vicongdong doing Connected Marketing 60 2.2.3 Analysis on Connected Marketing activities in Vicongdong project 62 2.3 Some comments on the efficiency of Connected Marketing Campaign at Vicongdong project 85 CHAPTER 3: RECOMMENDATIONS 91 3.1 Developing direction of business and Marketing strategy of Visky – FPT 91 3.2 Developing new marketing solution 93 3.3 Some other proposals 106 CONCLUSION 107 REFERENCES 109 vii LIST OF ABBREVIATIONS AMA : American Marketing Association C2C : Customer-to-Customer CEO : Chief Executive Officer CPC : Cost Per Click CSR : Corporate Social Responsibility CTR : Click Through Ratio G.A : Google Analytics NGO : Non-Governmental Organization OL : Opinion leader OPA : Online Publisher Association WOM : Word of Mouth WOMMA : Word of Mouth Marketing Association viii LIST OF TABLES Table 2.1: Statistics on Vicongdong.vn Page 90 LIST OF FIGURES Figure 1.1: An example of a social network diagram Page 5 Figure 1.2: Ordering Icecards process. Source: Icemedia Company Page 10 Figure 1.3: The comparison between Buzz marketing and Traditional marketing Page 13 Figure 1.4: Ways of transferring and receiving information before and now Page 21 Figure 1.5: Traditional marketing model Page 22 Figure 1.6: The modern marketing model Page 24 Figure 1.5: Models of media influence Page 33 Figure 2.1: Internet users in Vietnam during 2004 – 2009 Page 40 Figure 2.2: Age of Internet user vs. total population Page 41 Figure 2.3: Occupation of Internet user Page 42 Figure 2.4: Online activities done in the past Page 43 Figure 2.5: Frequency of Internet usage by city Page 44 Figure 2.6: Website visited in 4 weeks from October to November Page 45 Figure 2.7: Website visited in 4 weeks from October to November by classifying Page 45 Figure 2.8: Website visited in 4 weeks from October to November by age Page 46 Figure 2.9: Attitudes toward social connection Page 46 Figure 2.10: Websites used for social online network Page 47 Figure 2.11: Favorite websites for information gathering Page 48 Figure 2.12: Favorite websites for entertainment Page 48 Figure 2.13: Favorite websites for communication Page 48 Figure 2.14: Organization model of Visky FPT Page 54 Figure 2.15: Vicongdong’s logo Page 56 Figure 2.16: Logo of Blue Ribbon Employer Council Page 57 Figure 2.17: Message for communication campaign in “Mầm Nhân ái 2008” contest Page 58 Figure 2.18: Logo of “Chim én 2009” Page 59 Figure 2.19: Logo of “Ngày cuối tuần ấm áp” Page 59 Figure 2.20: Logo of the contest “ Viết vì cộng đồng” Page 59 Figure 2.21: Logo of the contest: “Mầm nhân ái” Page 67 Figure: 2.22: Communication for the Award “Chim én” Page 67 Figure 2.23: Alexa statistics on vicongdong.vn Page 84 ix Figure 2.24: Alexa statistics – Up stream sites of Vicongdong.vn Page 84 Figure 2.25: Alexa statistics –Down stream sites of Vicongdong.vn Page 85 Figure 2.26: Alexa Statistic - Daily pageviews per user of vicongdong.vn Page 88 Figure 3.1: A sample of an ecard on Vithiep.vn Page 92 Figure 3.2: Topology model - Source: Marketing Department, Visky FPT Page 96 Figure 3.3: Fractural marketing at FPT Page 97 Figure 3.4: Creating communication message Page 98 Figure 3.5: An example of Google Analytics Page 103 Figure 3.6: An example of Google Analytics using campaigns Page 104 Figure 3.7a: A sample of the new marketing solution Page 104 Figure 3.7b: A sample of a new campaign - Choose a cause Page 105 Figure 3.8: A sample of a new campaign - Supporter chooses Colgate as your sponsor Page 105 Figure 3.9: A sample of a new campaign - On supporter’s profile Page 106 x INTRODUCTION The problem Firstly, Vicongdong has no clear and long time marketing plan. There are only some separate activities which have not related tightly to FPT Corporation. Whereas FPT fund is a fund used to implement FPT’s corporate social responsibility (CSR) and Vicongdong plays the most important role to its CSR. Secondly, Vicongdong.vn is only a website used Web technology 2.0. Its propagation or distribution may reach much more than geometrical progression. It means that the connection will be certainly crucial. Finally, FPT’s managers wish to create a result of much more than 1 $ when they invest 1 $ for donation (1.x effect) and no longer want to use traditional way to do CSR. However, the results that Vicongdong has harnessed have not shown the expectation. There has not yet had any fundraising solution. Objectives The thesis has been much spent time on it with the objective of studying the theory of connected marketing and then study the case of Vicongdong in marketing field. Vicongdong is a for-runner project of Visky –FPT in plemeting CSR. So the author would like to study how it can contribute the most important part in FPT’s CSR. Similarly, other objective is to study whether connected marketing theory is suitable for Vicongdong’s marketing plan and how to apply. The last one is in the case of prospect, the author try to build a marketing plan for Vicongdong based on connected marketing theory. Scope In the name of field, the thesis belongs to marketing topic which is theory of connected marketing. In the name of space, the thesis studies the real status and problem within the project Vicongdong.vn of FPT Corporation. Time for studying the content of thesis is about one year from the establishment of the project Data source: 1 The thesis takes many secondary data from FPT Corporation, books, internet. The primary data is directly collected from the website because the high interactive factors of web 2.0. The author has many advantages in collecting this kind of data which is online comment of website’s member stead of implementing a small survey. Besides that, the data has been collected by interviewing some important people such as head of the project, Mr. Do Huu Hung, marketing expert of some companies such as ETC center, Sunhouse company, FPT Corporation, members of the website… Method/ Approach The method of the thesis includes interviewing experts, theory access from executive books, Internet search, observation. Research question Why the project hasn’t had a clear marketing plan? How Vicongdong can help FPT Corporation doing CSR and then help FPT build great image? How will connected marketing theory be more suitable for building marketing plan for Vicongdong? Which disadvantages will affect the feasibility of marketing plan for Vicongdong? Significance The thesis seems to be necessary for Vicongdong at this period and it may be reference for other companies want to do CSR most effectively. Limitation Connected marketing theory is relatively new and incipient in Vietnam so it requires some different factors. The access to data source may be incorrect and lack of information. It requires some certain knowledge on donation and community activities. Expected result 2 The author respect it to apply connected marketing theory on the case of Vicongdong and build a marketing plan based on this theory. Follow up potential In the case of approval by the project, the author would like to study deeply to apply in reality with more information and time. It will be basic for studying theory “built to last” for FPT Corporation. The author also want to study an adjusted theory suitable for Vietnamese companies Content The content includes three parts: Chapter 1: Literature review – Connected marketing Chapter 2: External environment analysis and connected marketing activity of Vicongdong Chapter 3: Recommendations 3 CHAPTER 1: LITERATURE REVIEW– CONNECTED MARKETING Chapter I of the thesis will explore the literature of a recently marketing term – connected marketing including the definition, types of connected marketing and how to process a connected marketing campaign. 1.1 Definition: Connected Marketing 1.1.1 Marketing The term of marketing is very popular to all of organizations and businesses. It relates to a crucial industry that affects on many other activities and plays a huge role for the development of a business or non-business unit. Especially, it has a special effect on the image of an organization. However, up to now there has no consolidated point of view about this concept. According to American Association – AMA, “Marketing is a business activity which drives products and service from the manufacturer to customer” Philip Kotler, a leading marketing expert said: “Marketing is to work with the market to exchange with the purpose of satisfying demand and need of people identifying and meeting human and social needs.” According to Peter Drucker, “the purpose of Marketing is not to promote consumption. Its purpose is to realize and penetrate customer so thoroughly that goods or service will fill the right demand of customer and it will be consumed automatically” Therefore, in general, marketing is all activities of researching, recovering demand on goods or service of people and satisfying them best. 1.1.2 Connected Marketing Nowadays, the development of information technology as well as digital technology has opened new trends in society. It seems that the world is really flat as the theory about globalization of Thomas L. Friedman, the author of an international bestselling book “The World is flat”. Globalization also means all parts of the world have the similar concerns and the ability of connecting together 4 [...]... “one-toone, face-to-face, live buzz, live viral marketing, gossip marketing, word of mouth marketing, stealth marketing, ambush marketing, guerrilla marketing, tremor marketing, sneeze marketing, theatrical marketing, live point -of- sale, underground marketing, peer-to-peer marketing all strands of connected marketing [48] Blythe Mason, Worldwide Marketing Program manager on the website Connectedmarketing.com... humor) - The outrageous - The unusual - The hilarious - The remarkable - Secrets (both kept and revealed) The case of Apple: Planned information leaking incident of Apple about iPhone before official information announced at MacWorld Seminar on 9 January 2007 has made “buzz” conversation Basing on consumers’ expectation on a perfect product similar to Ipod Mp3, Apple has stimulated the demand of the market... stated: “Viral Marketing describes any strategy of encouraging an individual to spread a marketing content and ad to others, creating an exponential potentiality of development This exponential increase and spreading message are critical factors of these definitions” Some people say that viral marketing is any marketing activity aimed to increase and magnifying the rumor in digital environment The author... such as: digital marketing, word of mouth marketing, viral marketing, buzz marketing, stealth marketing, passion marketing, connected marketing In this study the author explores the term connected marketing Very easily to quick understand the term, it relates to connection According to Justin Kirby and Paul Marsden, authors of the book Connected Marketing, The Viral, Buzz and Word of Mouth Revolution”:... purchase a laptop and he has seen ads of Palm, HP and Sony; even that he saw them at laptop supermarket and heard many information from seller, he has not still decided to take it Then a friend told him about a Palm laptop and how this friend changed his life or he read information on a famous newspaper about the examination about it Immediately, it affected this person and he decided to take one Palm... commented on the term of viral marketing as: “An attempt to deliver a marketing message that spreads 15 quickly and exponentially among consumers Contrary to alarmists' fear, viral isn't evil It is not dishonest or unnatural At its best, it is word of mouth enabled, and at its worst, it is just another interruptive marketing message” Dr Ralph F Wilson – one of the famous online marketing authors in the world... techniques in marketing: viral marketing, buzz marketing and word of mouth marketing [53] Viral Marketing: “Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message’s exposure and influence Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands,... marketing They also show us the way to divide connected marketing into three main activities or three marketing techniques to develop a connected marketing plan According to my individual point of view, the concept Connected marketing is also understood that: Connected marketing is marketing efforts that we make use of the community’s connection to transfer marketing messages, aiming to create brand... Jurvetson (DFJ) financed the first free e-mail service Hotmail (www.hotmail.com) Sabeer Bhatia and Jack Smith of Java Soft Incorporation approached DFJ with the idea and Tim Draper suggested adding an advertising message at the bottom of each outgoing Hotmail Each sent free Hotmail message spurred the receiver of such a message to also get the free e-mail provider and in turn passed it on to relatives and. .. message from opinion leader has strong effect on the others that generates the faith of the other customers on the product, service Amongst thousands of message that customers receive daily, which of them gets the interest and then establish the customer’s trust meaning that it promotes its marketing role On the other word, in Connected marketing theory, customers not only share the information but also . VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS TRAN THI CHIEN A STUDY ON CONNECTED MARKETING AND THE CASE OF FPT CORPORATION’S. Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisors: Dr. TRAN DOAN KIM Hanoi – 2010 TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TÓM T TẮ iv TABLE OF CONTENTS vi. a place; 3. Excitement, if a place or a group of people is buzzing, people are making a lot of noise because they are excited [50] . Buzz (n): 1. a strong feeling of excitement, pleasure or