Marketing plan for kaspersky anti virus software

TRƯỜNG ĐẠI HỌC MỞ TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM5 Bùi Hương Thanh MARKETING PLAN FOR KASPERSKY ANTI-VIRUS SOFTWARE MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Lê Thái Thường Quân Ho Chi Minh City (2012) Page of 31 Words of guarantee This academic project is a research project that was written by Bui Huong Thanh in fulfillment of the requirement of the degree of Master Business & Marketing Management at Solvay Business School and Ho Chi Minh City Open University, course MBMM5 Ms Bui Huong Thanh Page of 31 Acknowledgement I would like to express my sincere thanks to professors of Solvay Business School – University of Brussels for the profound knowledge that they managed to impart to me, for the time they had spend to instruct me My thanks are reserved for Mr.Ngo Tran Vu for his advice on conducting choosing the topic and his recommendation to help me finish my final project I would also like to extend my gratitude to colleagues and friends, who helped me to complete the questionaires My deepest gratefulness goes to Professor Lê Thái Thường Quân, lecturer of the Ho Chi Minh City Open University and aslo my tutor, who enthusiastically helped me from project outline until to project finishing Lastly, I would also like to thank Mr.Serge Bywaski and Ms.Nguyen Thi Mong Thuy, Ms Le Thi Ngoc Hien, our co-ordinators, who have been with us throughout the course, for their enthusiastic connection between the class and Solvay professors Bui Huong Thanh (Ms.) Page of 31 Tutor’s comment Comment on project Marketing Plan for Kaspersky Anti-Virus Software By Bui Huong Thanh This is practical project for real business situation Although there are many rooms for improvement in the report, it covers basic information and analysis which bases on survey data and gives sensible suggestions Le Thai Thuong Quan Page of 31 Table of content EXECUTIVE SUMMARY - Page INTRODUTION - Page Introduction - Page Objectives of the project - Page Project scope - Page NAM TRUONG SON CORPORATION & KASPERSKY LAB - Page 10 Company profile - Page 10 Kaspersky Lab Vietnam mission - Page 11 Kaspersky Lab Vietnam vision statement - Page 11 MARKET ANALYSIS - Page 12 Macro-environment analysis – SLEPT - Page 12 Micro-environment analysis – Porter Five Forces - Page 13 General anti-virus market - Page 14 Customer demand - Page 15 Competitor analysis - Page 16 Consumers behavior - Page 18 MARKETING PLAN FOR KASPERSKY ANTI-VIRUS - Page 21 Company SWOT analysis - Page 21 Marketing strategy - Page 22 2.1 Product - Page 22 2.2 Price - Page 23 2.3 Positioning - Page 24 2.4 Promotion - Page 24 2.5 Place - Page 27 Break-event analysis: - Page 27 CONCLUSION - Page 28 APPENDIX - Page 30 Page of 31 Abbreviation list Abbreviation Meaning BSA Business Software Alliance NTS Nam Truong Son PR Public Relation SI System Integrated SLEPT Social, Legal, Economic, Political, Technology VINASA Vietnam Security Association Page of 31 List of Chart Figure The Porter’s five forces model Page 13 Figure Rate of copyrighted / non-copyrighted antivirus software Page 15 Figure Intention of changing to copyrighted software Page 15 Figure Key drivers affect the consumers Page 16 Figure Overview of the antivirus market share Page 16 Figure Rate of customer satisfaction Page 17 Figure Top of mind brands Page 18 Figure Reasonable price for anti-virus software Page 18 Figure Why consumers not using copyrighted software Page 13 Figure 10 Source of information about anti-virus software Page 19 Figure 11 Key affects of decision making Page 20 Figure 12 Reasons of changing to a new software Page 20 Figure 13 Kaspersky local awards Page 22 Figure 14 Kaspersky products Page 23 Figure 15 Positioning of the sales Page 24 Figure 16 Promotion banners Page 25 Figure 17 Sample of banner “Discovering Kaspersky Contest " Page 26 Figure 18 Booth designed for the VCW 2012 expo Page 26 Figure 19 Distribution system Page 27 Page of 31 EXECUTIVE SUMMARY Vietnam with over 33.4 million internet users (1) and over 10 million computerowned persons is a promising market for software selling But according to BSA (Business Software Alliance), rate of software counterfeiting in Vietnam is over 80% This raises a big question for Nam Truong Son – Kaspersky antivirus software distributior: if anti-virus software encounters the same rate, how the company can make people use copy-righted license and how Kaspersky could increase its foothold in the market In this study, a research is conducted to identify the market, understand the consumer behaviors then propose a marketing plan to achieve the two objectives: help the consumers get closed approach to copy-righted anti-virus software and improve the market share The marketing plan summary of Kaspersky anti-virus software for year 2012: Category Target Market Offering to customers Strategy Officers Diversify products / Vietnamese version / multi-channel support service Price Strategy Market price Distribution Indirect & Direct system Sales Strategy Based on reseller to enlarge the market rapidly Support center 13/7 Hotline number Service Strategy Emergence clean virus at home Promotion Strategy PR & Sales promotion Marketing Research 185 samples: brand power / Consumer habit research Page of 31 INTRODUCTION Introduction: More and more people access to the internet nowadays, these people realize they need a tool to protect themselves and their data from many hackers and harmful stuffs on the global network So they use anti-virus (or security) software But in Vietnam most of the internet users prefer cracked software, the only reason because it’s free These people don’t see the differences between copy-righted and cracked ones then they don’t want to pay The anti-virus market is huge but currently, domestic vendors as well as other foreign vendors didn’t play their good role because domestic products are lack of technical ability while foreign products are high price and lack of localization ability In front of this opportunity, if Kaspersky Vietnam can help the consumers know the benefits of using antivirus software and besides its own high quality, Kaspersky set up the price suitable with Vietnamese income, it’s so sure that Kaspersky will win the market Objectives of the project: With the fact that Kaspersky took over 33% market share while BKAV 41%, Synmantec 12% and others 14% (2) Besides, based on the collected data from Kaspersky Vietnam, there are millions Kaspersky software downloaded from the data centre but only 630,000 software licenses are activated (12.6%), most of the licenses are cracked or trial (87.4%) This project aims to understand the consumers’ and make them buy Kaspersky antivirus instead of competitors’ products This project is valued only for Ho Chi Minh market, based on the survey results The purpose of this project is: - To increase the market share of Kaspersky (up to 50%) - To increase the percentage of copyrighted software compare to cracked or trial license Project scope: To analyze the overall environment of the business to see how potential the market is, this project use the SLEPT and Porter’s forces model To understand the consumers’ behaviors, this study includes a primary data research conducted in Ho Chi Minh City by interviewing 185 office staffs: Page of 31 Age from 20 to 30, regardless of gender Places: companies (SK telecom, Artsign, HSBC, YAN JSC, Riverbank…); Youth Culture Centre, Han Thuyen Park, evening classes, home interviews… Form of survey (see appendix) Secondary data research also is taken from website The 5Ps marketing strategy is applied for the implementation plan Page 17 of 31 In the survey of this study, the office staff shared their evaluation about the softwares that they knew: Part II: The marketing plan Rate of customer satisfaction Bkav Norton Bit Defender Kasperky 40.3 49.1 Virus updating Technical support 27.1 24.1 Easy to buy 39.6 Easy to use 26.7 76 48 61.4 50 41.7 Price/Cost of license 78.1 45 39.4 Protection effectiveness 57.6 79.6 53.9 60.4 53.6 47.8 51.5 67.7 89 62 Figure Rate of customer satisfaction The strong points of domestic antivirus software BKAV is to kill domestic viruses which are sometimes immune to renowned foreign software brands, the technical support, easy to buy – easy to use and the suitable price To compete with foreign brands, Vietnamese antivirus software brands are making efforts to strengthen the Vietnamese market positions The typical local representative is BKAV, this antivirus producer started selling commercial versions in 2005 to personal and corporate users besides its free antivirus software limited version BKAV also join the antivirus software testing of Virus Bulletin (a famous organization of antivirus software testing) to get the international certification This domestic brand paid a lot for the TV ads Page 18 of 31 Consumers behavior: When asked about anti-virus software, the research collected the brand in the consumers’ top of mind as bellow: % Bkav 43.7 Kaspersky 35 9.3 Symantec 6.6 AVG Bit Defender 2.7 Others 2.7 10 20 30 40 50 Figure Top of mind brands Because of the inflation, the price increase during the economic crisis, most of the people are not ready to pay much for software license Reasonable price for an antivirus software (Unit: 1000 VNĐ) Below 100 100 - 200 200 - 300 Over 300 2% 17% 26% 55% Figure Reasonable price for anti-virus software Page 19 of 31 For the group of people don’t use copyrighted software, the study dive into their th reasons why: Why not using copyrighted software No idea/no information about copyrighted software 9.1 57.6 Like free software 40.4 No much differences between copyright/crack license 31.3 Hard to find a shop selling anti virus software 75.8 PC / Laptop is ok with the crack / free license 85.9 Pay money Figure 9 Why consumers not using copyrighted software In order to have a suitable approach to convince the market use software license, the study define their ways of achieving anti-virus anti virus software information and which factors factor affect their decision making Sourcce of information about Antivirus software Others (banner/poster…) Introduction of salesman 6.5 13.5 60.5 From friends, relatives Professional magazine / newspaper 28.1 69.2 Online search engine Daily newspaper 23.8 Figure 10 Source of information about anti-virus virus software Page 20 of 31 Key affects of decision making In promotion / free gift 9.8 Much advertising Lower price than other software 15.2 11.4 Advice form professional 19.6 More advantages than other softwares 41.3 Refference from friends 33.2 Loyalty 19.6 Easy to buy Others 12.5 8.2 Figure 11 Key affects of decision making Based the Porter forces model, we knew the consumers in antin-virus market can switch to another product easily In order to gain the market share from other competitors, the study investigated why the consumer change their current software Figure 12 Reasons of changing to a new software Figure 12 Reasons of changing to a new software Page 21 of 31 MARKETING PLAN FOR KASPERSKY ANTI-VIRUS Company SWOT analysis: Strength - Weakness NTS Security is the exclusive - distributor in the whole country The service company can totally control the price - Marketing / sales team is strong and innovative, supported by the experts in - Foreign language - Distribution channel is not strong enough Singapore - Not a large team for customer support Well-known worldwide software in the world, high technology Opportunities - More and more people realized they must protect their computer by an security software - Threats Intellectual right protection policy from the government, especially IT software - Strong competitors from local and international products Page 22 of 31 Marketing strategy: 2.1 Product: Although Kaspersky had achieved many international awards but it only makes sense when it has the local awardd That why NTS built long term relationship with PC World (a reputation IT magazine) and CIO & CEO forum which have yearly award for softwares When took part of the contest “the best antvirus chosen by Vietnam CIO & CEO association”, Kaspersky won the first prize in four consecutive years from 2008 to 2011 Kaspersky is also voted the best product in consecutive years by PC World’s readers Figure 13 Kaspersky local awards To be different from other foreign anti-virus soft-wares and compete with the local program, Kaspersky invest in developing Vietnamese version So the Vietnamese can use software with local language but international quality In order to meet the customer requirements, Kaspersky was segmented in two types of license: Kaspersky internet security for professional and who doesn’t care much about price, Kaspersky anti-virus for common users with affordable price Page 23 of 31 Figure 14 Kaspersky products 2.2 Price: The market price for a security software is about 300,000 VNĐ: • BKAV: 299,000 VNĐ/lic • Synmantec: 420,000 VNĐ/lic • Norton: 295,000 VNĐ/lic • Kaspersky: 300,000 VNĐ/lic ~ the market price For the customers who hesitate spending too much money for an anti-virus software and these customer are ready to pay only 100,000 VNĐ – 200,000 VNĐ as the survey showed, we propose the Kaspersky Anti Virus packet with full functions of protecting a personal computer from virus/spyware/worms …at lower price: 160,000 VNĐ Applying the up-sales technique, we encourage the groups of people buying licenses by setting up an attractive price for a license packet: • Kaspersky Internet Security: 580,000 VNĐ / users ~ < 200,000 VNĐ /user • Kaspersky Anti Virus: 300,000 VNĐ / users ~ 100,000 VNĐ / user License type Kaspersky Internet Security Kaspersky Anti Virus user / lic 300,000 VNĐ 160,000 VNĐ users / lic 580,000 VNĐ 300,000 VNĐ Page 24 of 31 2.3 Positioning: In software selling/consulting industry, the most important factor is customer If a company want to be successful, it has to consider customer its centric orientation Kaspersky position itself as a high quality product with the best customer support by local team Figure 15 Positioning of the sales NTS will invest strongly in customer support team in order to response to all questions of customer regard technical matters 2.4 Promotion: PR Nowadays, people are more and more caring about sharing difficulties within community NTS continue to develop its fund for poor pupils by taking 3,000 VNĐ on each license sold to support the fund This action not only showed the company responsibility to the social but also can get huge supports from the customers Page 25 of 31 Some magazines Kaspersky put the advertising on: Figure 15 Brands of newspapers Kaspersky advertised on Sales promotion Free gift / voucher for customer Free 1000 months license + T-shirt shirt for Đông Á Bank owner card Figure 16 Promotion banners The purpose of these promotion programs is to attract attract more and more people use Kaspersky, create a “propagation effect” through word of mouth – an effective way to convince people use Kaspersky license Page 26 of 31 Figure 17 Sample of banner “Discovering “Discovering Kaspersky Contest year 3rd – 2012”: This contest is toeducate educate the customers customer about the risk of using crack license as well as how an antivirus software can help them and guard them As usual, Kaspersky also buy a booth in VCW 2012 expo, held in the end of August 2012 Figure 18 Booth designed for the VCW 2012 expo Discount iscount 30% price at the expo Schedule Dec 2011 – Feb 2012 April – June Promotion / PR / Advertising Ad Budget Chrismast and New year promotion 2,5 B VNĐ 1000 T-Shirt Shirt free gift + months license for Dong A Bank 150 M VNĐ May – June Kaspersky Discovery Contest 100 B VNĐ August – Sep Booth in VCW Expo 80 M VNĐ Feb – Dec PR / Advertising on newspaper (6 newspapers) 1,5 B VNĐ Total 4,330M VNĐ Page 27 of 31 2.5 Place: To reach out the market fast and easy for customer to buy license, NTS decided to strengthen & expand its current distribution channel as well as develop the direct online sales Figure 19 Distribution system Break-event analysis: In this part, the study will calculate the BEP in order to know how many of license sold to cover the expense for marketing: TFC = 4,330 M VNĐ Assume: Average sales price per license: P = 200,000 VNĐ Average cost variable cost per license: V = 80,000 VNĐ 1200000 1000000 800000 600000 Sales revenue 400000 Total cost 200000 55000 50000 45000 40000 35000 30000 25000 20000 15000 The BEP is: about 36,000 So the target sales is 36,000 licenses Page 28 of 31 CONCLUSION Anti-virus software for office staff is a very potential market in which business can make a lot of profit This study is to understand the customer behavior and set up a marketing plan to increase the market share From the surveys, we can see the consumers are ready to use copy-righted software if it is affordable and solve their concerns like: easy to use, easy to buy and powerful to protect their data With the marketing plan proposed in the project, we have a strong belief that Kaspersky will be become the number one anti-virus software Page 29 of 31 Refference (1) http://www.thongkeinternet.vn/jsp/tintuc/tintuc.jsp (2) http://forum.bkav.com.vn/showthread.php?40016-Bkav-chiem-hon-85-thi-phan-banle-phan-mem-diet-virus(3) MBMM5 course documents (4) http://www.baomoi.com/Viet-Nam-co-5-trieu-nguoi-dung-Kaspersky/76/3611697.epi Page 30 of 31 Apendix Customer Survey Questionaire What kind of anti-virus software you are using ? BKAV Kaspersky Synmantec Others Please list brands of anti-virus software that you know What your anti-virus software term of using? months months year Over year Non-coppyrighted Are your ready to change your current anti-virus software ? Yes No No idea If you choose “yes” at question number 4, please share the reason why you want to change? Try a new brand Change to a software which most of the people choose The current software is not satisfied Advice from professional Other one is more effectiveness Advice from friends Easy to buy Low price So much advertising In promotion Which of the following reasons make you hesitate buying a copyrighted anti-virus software? Don’t want to pay Like free software Cracked software is ok Not much difference between cracked and copyrighted software Page 31 of 31 Not know where to buy No idea When choosing an anti-virus software, which of these following reasons that affect you? Ability of updating / dectecting virus Refference from friends Refference from experts Much advertising Loyalty Easy to buy Low price In promotion Others What kind of information sources that you look for an anti-virus software? Friends Sales person Professional / IT magazines Internet Daily news According to you, what is the appropriate price for an anti-virus software? Below 100,000 VNĐ 100,000 – 200,000 VNĐ 200,000 – 300,000 VNĐ Over 300,000 VNĐ 10 Please name some of the anti-virus software that you know and rank them from hight to low with these following factors: Virus updating Technical support service Easy to buy Easy to use Protection effectiveness Price ... marketing plan to achieve the two objectives: help the consumers get closed approach to copy-righted anti-virus software and improve the market share The marketing plan summary of Kaspersky anti-virus. .. change their current software Figure 12 Reasons of changing to a new software Figure 12 Reasons of changing to a new software Page 21 of 31 MARKETING PLAN FOR KASPERSKY ANTI-VIRUS Company SWOT... 18 Figure Reasonable price for anti-virus software Page 18 Figure Why consumers not using copyrighted software Page 13 Figure 10 Source of information about anti-virus software Page 19 Figure 11