Increasing mobifone 3g market share in hochiminh city

TRƯỜNG ĐẠI HỌC MỞ TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM5 PHAN DINH PHI LONG INCREASING MOBIFONE 3G MARKET SHARE IN HOCHIMINH CITY MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Prof Dr LE NGUYEN HAU Ho Chi Minh City (2012) DECLARATION I declare that this final project contains no material that has been accepted for the award of any degree of diploma in any universities or other institution and contains no material previously published or written by another person, except where due reference is made I undertake that this is the project of my own Figures and result which are mentioned in this project are righteous Project Author PHAN DINH PHI LONG ACKNOWLEDGEMENT To fulfill this MBA program and final project, I own a debt of gratitude to many people who helped me complete this thesis First and foremost, I would like to express my deepest acknowledgement to my supervisor, Prof Dr Le Nguyen Hau from Ho Chi Minh City University of Technology (HCMUT), who has supported me throughout my thesis with his patience, knowledge, valuable advice and recommendations Special thanks are extended to my colleagues at Customer Care, Planning & Sales department of VMS Center 2, Value Added Services Center in Ho Chi Minh City – who supported me valuable information to this thesis I would like to acknowledge all professors from Solvay Business School, HCMC Open University staffs, my classmates for their assistance and co-operation during my twoyear’s time at the MBMM program Finally, I remain indebted to my family - my mother, my wife and children for their unceasing support, encouragement throughout all my studies TABLE OF CONTENTS Contents Pages Abbreviations and acronyms iii Tables, Charts & Figures iv EXECUTIVE SUMMARY CHAPTER I: INTRODUCTION 1.1 Background 1.2 Mobifone introduction 1.3 Problem statement 1.4 Objective 10 1.5 Scope of works 10 1.6 Methodology 10 1.7 Structure of study 11 12 CHAPTER II: ENVIRONMENTAL ANALYSIS 2.1 External environment factors 12 2.2 Market Analysis 17 2.3 Competitors analysis 20 2.4 Internal Analysis 26 2.5 SWOT Analysis 30 2.5.1 Strengths 30 2.5.2 Weaknesses 31 2.5.3 Opportunities 31 2.5.4 Threats 32 2.5.5 SWOT implications 32 CHAPTER III: MARKETING PLAN FOR MOBIFONE 3G 36 SERVICES AND ACTION PLAN 3.1 Marketing objective 36 3.2 Marketing strategic plan 36 3.3 Marketing Mix 36 3.3.1 Product 38 3.3.2 Price 39 3.3.1 Place 39 3.3.4 Promotion 39 3.3.5 Budget Allocation 43 3.3.6 Evaluation 44 CHAPTER IV: CONCLUSION 45 REFERENCE 47 APPENDIX 48 Survey questionnaires 51 Result of private survey in chart 56 ABBREVIATIONS ABBREVIATIONS MEANING VMS : Vietnam Mobile Telecommunication Services VNPT : Vietnam Post & Telecommunications VAS : Value Added Services ICT : Information and Communications Technology PR : Public Relation IT : Information Technology MIC : Ministry of Information and Communications 3G : The Third Generation Technology CPI : The Consumer Price Index GDP : Gross Domestic Product WTO : World trade Organization POSM : Point Of Sales Material POP : Point Of Purchase ATL : Above The Line BTL : Below The Line EXECUTIVE SUMMARY Together with the development of telecommunication technology in the world, mobile telecommunication operators in Vietnam have applied and exploited 3G technology from 2009 3G is the third generation of wireless technologies 3G is mostly used with mobile phones and handsets as a means to connect the phone to the Internet or other IP networks in order to make voice and video calls, to download and upload data and to surf net 3G technologies enabled faster data-transmission speeds, greater network capacity and more advanced network services The services on 3G are contributing to increase revenue of telecom enterprises Beside normal voice calls, it brings utility for entertainment, work to users such as: transferring and receiving data, multimedia services as: high qualified music, video (qualified image) and digital TV; global positioning services (GPS); e-mail; video streaming; high-ends games A severe competition between 3G telecommunication operators at present impulses a growth of mobile telecommunication market and integrate into the world telecom However, after one and half years launching 3G in Vietnam, Mobifone mobile internet 3G market share has increased insignificant comparing with competitors Mobifone managers need to analyze current status to find out the cause in order to propose appropriate actions to improve this situation By many kinds of analyses, SWOT is one of the ways help to find strengths & weaknesses of Mobifone 3G to create a suitable marketing plan This marketing plan will help increase Mobifone mobile internet 3G market share by brand awareness activities and giving competitive advantages compared to competitors Making customers be aware well with the name of data services such as Mobile Internet, Fast Connect and taking on trial Simultaneously, expanding distribution channels (a main job as well) and doing promotion are the ways to increase sales volume market share Marketing mix including 4Ps – Products, Price, Place and Promotion is focused on this marketing plan The marketing plan will be implemented in years from 2012 to 2014 with the timetable as follow: In the first period, 2012, carrying out animated advertising campaign to draw customers’ attention in the services and give them a chance for trial In the second period, 2013 – 2014, stepping up sales volume by promotion and distribution channel reinforcement CHAPTER 1: INTRODUCTION 1.1 BACKGROUND: The third generation (3G) mobile telecommunications is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 (IMT-2000) specifications by the International Telecommunication Union Application services include wide-area wireless voice telephone, mobile internet access, video calls and mobile TV, all in a mobile environment To meet the IMT-2000 standards, a system is required to provide peak data rates of at least 200kbit/s Recent 3G releases often denoted 3.5G and 3.75G, also provide mobile broadband access of several Mbit/s to Smartphone and mobile modems in laptop computers [1] The strong points of 3G comparing to 2G or 2.5G are to allow transmitting, receiving data faster, high qualified sound & video clip for either immobile or mobile users The operators supply the users multimedia services: high qualified music & video, digital TV, global positioning services (GPS), email, video streaming, high-ends games on 3G 3G was launched in the first years of 2000 in Japan and European countries and then until 2009 in Vietnam There are currently four 3G licenses in the country: Mobifone, Vinaphone, Viettel and a consortium comprising CDMA player EVN Telecom (EMobile) and Vietnam Mobile Vinaphone, a subsidiary of state-owned incumbent VNPT, was the first of the blocks launching a commercial 3G service in October 2009, initially in key metro areas such as Hanoi Mobifone launched 3G services two months later (December 2009), followed by Viettel in March 2010 and Vietnamobile/EVN Telecom in June 2010 After 18 months of launching (up to June 2011), there are 30.334 3G BTS of networks established covering national wide The covering density of BTS according to population is from 54.71% to 93.68% depends on different zones, total amount of 3G subscribers in Vietnam is over million at present, maximum speed of accessing internet reaches to 7.2Mb/s at this time (*) USB 3G for accessing mobile internet contributes bringing internet not only to urban but also to suburban where there isn’t any means of internet connection, bringing utility to users such as: browsing internet, email checking & responding faster no matter where you are, taking a flexible approach to work, falling back on internet connection goes down The appearance of 3G has been giving impulse the growth of Vietnam telecom market, integrate into telecom of the world speedily Moreover, contributing to shorten the digital gap between urban and suburban improving the quality of life for people Together with the success in 2010 as the competitors, Mobifone has developed 25.822 subscribers using Fast Connect service and accessing internet on mobile phone This 43 As mention above, together with this campaign, we should reinforce 3G image at distribution channel We can décor Mobifone shops with full of 3G image to increase visualization and attract customers come to learn more 3G Besides, at retailers system, we should décor signal board and draping all big shops (68m width) if possible to make impressive at the first sight and to be recognize easily Direct marketing is essential to introduce, give customers a chance for trial, and consult them in choosing Mobifone G services This is a good way to approach customers to get opportunity for explaining clearly any problem from them 3.3.5 BUDGET ALLOCATION Table 3.3.5.1: Estimated Budget allocation in 2012: Unit: 1,000 USD Activities Channel Total expense Total March Q2 Q3 Q4 1,700 340 570 360 240 TVC ATL 600 90 210 180 120 Print Media ATL 120 18 42 36 24 Online ATL 100 15 35 30 20 PR ATL 60 21 18 12 Outdoor (Dropping banners & billboard) ATL 200 100 100 POSM BTL 120 18 42 36 24 Activation BTL 200 30 70 60 40 Signal board BTL 250 30 30 Indoor (frames in building lifts) BTL 50 30 20 44 Table 3.3.5.2: Estimated Budget allocation 2012 – 2014 Unit: 1,000 USD Activities TVC Print Media Online PR Outdoor (Dropping banners & billboard) POSM Activation Signal board Indoor (frames in building lifts) Total expense Revenue target ROI (%) 2012 600 120 100 60 200 120 200 250 50 1,700 41,667 4.08% 2013 720 100 120 60 250 150 250 250 50 1,950 62,500 3.12% 2014 864 120 144 72 300 180 300 200 60 2,340 81,250 2.88% 3.3.6 EVALUATION After implementing the marketing plan, Key performance index should be evaluated through branding, distribution channel and sales volume at each phase as: monthly, quarterly, half-year, yearly review to adjust the plan, identify the gap and update in order to achieve our objectives: Awareness, market share and sales volume 45 CHAPTER IV: CONCLUSION Mobifone is a big and one of the top three operators in mobile telecom sector in Vietnam With several years’ experience (19 years), Mobifone has a lot of affection from customers and has been becoming a beloved brand in the market in many consecutive years This is a good base for Mobifone’ s development in mobile market, especially 3G market From the analysis of real situation by second data, internal data and market research, the marketing plan of this project was set up for increasing Mobifone 3G services market share in Ho Chi Minh city Mobile broadband development is a trend on the world with participation of almost mobile 3G network Vietnam is surely not out of this trend A good opportunity for Mobile networks in Vietnam is that the market is converging many factors for success from policy, technology to consumers Success or not depends on the strategy of each operator in which market strategy is a decisive factor that affects to its growth From that reality, a good, right marketing plan for 3G will help Mobifone improve brand preference, distribution channel and services in order to keep maintain the strengths, increase its capacity in a difficult situation and grow stably in the future In the first phase of implementing marketing plan, brand awareness and brand image are a top priority to draw customers in attention Then, improving quality of services and distribution channel to increase sales volume Finally, to become a top of mind and biggest market share are the objective as well 46 REFERENCE - Philip Kotler, (2000), Marketing Management Millennium, Prentice-Hall, Prentice-Hall, Inc, p.46 - TNS Research Company - Ministry of Information and Communications of VN - Vnexpress.net, 12th July, 2011, (Nielsen Report: First Southeast Asia Digital Consumer Report) - Dantri.vn, 10th June, 2011 [1] http://en.wikipedia.org/wiki/3G [2] Ministry of Information and Communications of VN http://mic.gov.vn/solieuthongke/vt/Trang/Sốlượngthuêbaodiđộngphátsinhlưulượng đếnhếttháng122010.aspx [3] www.mobifone.com.vn [4] Mobifone internal report [5] Report of Netcitizens Việt Nam 2011, by Cimigo [6] General Statistic Office [7] GSO 2009, TNS analysis [8] Decision of Prime minister 1755/QD-TTg on 22nd September 2010 [9] Vietnam Government Web portal [10] Ministry of Planning and Investment Portal of Vietnam [11] Forecast of WB [12] General statistic office: http://www.internetworldstats.com/stats3.htm#asia [13] http://www.internetworldstats.com/stats3.htm#asia [14] 3g.vietteltelecom.vn [15] Mobifone Center II internal report up to November, 2011 47 APPENDIX Appendix 1: GDP PER CAPITA Appendix 2: GDP GROWTH RATE TO 2010 Appendix 3: Internat Users Growth from 1990 to 2009 48 Appendix 5: Asia Top Internet Counrtries Figure 2.2 Top 10 Asia Countries with high internet users in 2011[12] Appendix 6: IT Shops A potential distribution channel for increasing 3G services at present 49 Appendix 8: Detailed Budget allocation in 2012: Unit: 1,000 USD Activities Channel Total expense Total Quantity 1,700 TVC: HTV, YanTV, YeahOne, SCTV ATL 600 600 Print Media: Thanhnien, Saigontiepthi, Entrepreneurship weekly, Saigon Businessman, Mobile review, Mobile World, Nghe Nhin … Online: vnexpress, ngoisao.net, dantri, tinhte, 24h sohoa ATL 120 80 ATL 100 200 PR on print and online media ATL 60 120 Outdoor (Dropping banners & billboard) ATL 200 20 points POSM: leaflet, poster BTL 120 20 million Activation: - Direct marketing at Universities, building, - Roadshow, - Event Signal board (LED) BTL 200 400 BTL 250 4,000 retailers Indoor (frames in building lifts) BTL 50 1200 Frames 50 Appendix 9: SURVEY QUESTIONNAIRES ON 3G TECHNOLOGY IN HO CHI MINH CITY o: Date of interview Method of interview Face to Face Name of Interviewee: _ Address: Home Tel: Company Tel: Mobile Tel: Email: _ Name of Interviewer: _ Gender of interviewee Male Female Age < 15 years old 15-20 years old 21-25 years old 26-29 years old 30-35 years old 36-39 years old 40-45 years old > 45 years old Thank you & stop Continue Thank you & stop 51 Are you using any mobile phone? Yes No Continue Stop How long have you been using mobile phone? < months 6-12 months 1-3 years 3-5 years 5-10 years > 10 years What network are you using? Mobifone Vinaphone Viettel Beeline S-Fone Vietnamobile EVN Telecom What kinds of subscription are you using? Prepaid Postpaid Do you know 3G technology? Yes No Continue Stop What 3G network you think first? Mobifone Vinaphone Are you using 3G services? Yes Viettel EVN 52 If NO, Do you intend to use in the future? No Yes No Continue Stop 10 What 3G network are you using or intend to use? Used Intend Mobifone Mobifone Vinaphone Vinaphone Viettel Viettel EVN EVN 11 What kinds of equipment are you using or intend to use for accessing internet? On mobile phone or on computer/tablet or both? Used: On Mobile phone Intend: On Mobile phone On Computer/tablet On Computer/tablet On both On both 12 How much you spend for Mobile internet service per month? (on phone) ≤ 25,000 40,000 50,000 70,000 ≥ 100,000 13 How much you spend / want to spend for internet service per month? (on computer/tablet) 40,000 80,000 120,000 180,000 220,000 14 Do you use facebook? Yes No 15 What kinds of mean of media you usually use to update news, entertainment? (May select more than option) Internet Print newspaper TV Thank you for your answers! 53 INTERVIEW REPORT NO QUESTIONS Gender Age Rate of using mobile phone Duration of using mobile phone Network they are using Kinds of subscription they are using Rate of 3G technology awareness Top of mind CRITERIA Male Female < 15 years old 15-20 years old 21-25 years old 26-29 years old 30-35 years old 36-39 years old 40-45 years old > 45 years old Yes No < months 6-12 months 1-3 years 3-5 years 5-10 years > 10 years Mobifone Vinaphone Viettel Beeline S-Fone Vietnamobile EVN Telecom Prepaid Postpaid Yes No Viettel MobiFone Vinaphone EVN: Quantity 53 47 21 24 15 17 15 100 0 19 21 25 32 39 20 33 78 22 87 13 37/87 29/87 21/87 0/87 Rate 21% 24% 15% 17% 15% 8% 0% 100% 0% 0% 19% 21% 25% 32% 3% 39% 20% 33% 3% 0% 5% 0% 78% 22% 87% 13% 42.5% 33.3% 24.2% 0% 54 Are you using 3G services? Intend to use in the future 10 What 3G network are you using or intend to use? 11 What kinds of equipment are you using or intend to use for accessing internet? 12 How much you spend/intend to spend for mobile internet service per month? (on phone) 13 How much you spend/intend to spend for mobile internet service per month? (on computer/tablet) 14 Do you use facebook? 15 What kinds of mean of media you usually use to update news, entertainment? Yes No Yes No Used: Viettel MobiFone Vinaphone EVN: Intend: Viettel MobiFone Vinaphone EVN: Used on mobile phone Used on computer/tablet Used on both Intend on mobile phone Intend on computer/tablet Intend on both ≤ 25,000 40 50 70 100 40,000 80,000 120,000 180,000 200,000 Yes No Internet Print newspaper TV 63 24 21/24 3/24 31/63 23/63 9/63 0/63 10/21 7/21 4/21 25/63 27/63 11/63 7/21 11/21 72.4% 27.6% 87.5% 12.5% 49.2% 36.5% 14.3% 3/21 8/84 26/84 21/84 15/84 14/84 4/84 28/84 39/84 8/84 5/84 41/84 43/84 72 44 47 14.3% 9.5% 31% 25% 17.9% 16.6% 4.8% 33.3% 46.4% 9.5% 6% 48.8% 51.2% 85.7% 52% 56% 47.6% 33.3% 19.1% 40% 42.9% 17.5% 33.3% 52.4% 55 RESULT OF PRIVATE SURVEY IN CHART 56 57 ... brands: Mobifone, Vinaphone and Viettel especially 3G market in Ho Chi Minh city 3G MARKET SHARE IN VIETNAM UP TO SEPTEMBER 2011[4] The subscribers using 3G of Mobifone in Ho Chi Minh city has increased... Mobifone to get more customers in Ho Chi Minh market? - What Mobifone needs to for increasing 3G market share in Ho Chi Minh city? 1.4 OBJECTIVE: The objective of this study is to develop a marketing... or they can relax by chatting, reading news, playing game … whenever or wherever they are In Ho Chi Minh city, the trend in using 3G for accessing internet is increasing daily because of its convenience