Strategic marketing for sme securities company nguyen van chung

TRƯỜNG ĐẠI HỌC MỞ TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH OPEN UNIVERSITY SOLVAY BRUSSELES SCHOOL MBMM5 NGUYEN VAN CHUNG STRATEGIC MARKETING FOR SME SECURITIES COMPANY MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT HO CHI MINH CITY 2012 i DECLARATION With honor and personal responsibility, I assure the completion of the final project with reference to other documents, but be prepared and completed an independent, creative under the devoted guidance of Dr Nguyen Van Thuan HCMC, February 07th 2012 NGUYEN VAN CHUNG ii ACKNOWLEDGEMENT After full time of training and research, based on the current status of SMES and with the knowledge I learned to contribute a little effort into the concerns and worries of the Company in the topic: "Strategic Marketing for SME securities company‛ This project carried out under the assistance and encouragement of the staff and leadership of the company I would like to thank the dedicated guidance of Dr Nguyen Van Thuan, and company officials in collecting information from SME that help me to finish this project I also acknowledge all the help extended from all my friends in the Ho Chi Minh Open University Special thanks to everybody for their constructive comments and suggestions Finally, for the support that has mattered most in my efforts, I would like to give my special acknowledgment and precious thanks to my wife, Anh Thư for her love, patience and moral support I appreciate for all that she has done Her kindness has no bounds and her sacrifices have no match iii TUTOR’S COMMENTS The thesis meets the requirements for a marketing thesis It is very useful for securities firms since the majority of the securities companies in Vietnam not have their own marketing strategies During the time to go together with him to this thesis, I noticed he collected opinions carefully and try the best of his ability to finish his thesis I am agree to let this student to defend his thesis at the committee iv TABLE OF CONTENTS EXECUTIVE SUMMARY Page INTRODUCTION…………………………………………………………………………………………………… 1.1 Company description …………………………………………………………………………………… 1.2 Problem statement and Objectives………………………………………………………… 1.3 Scope of works………………………………………………………………………………………………… 1.4 Literature review …………………………………………………………………………………………… 1.5 Method to solve the problem and outline……………………………………………… CURRENT MARKETING SITUATION ……………………………………………………… 2.1 External environment analysis………………………………………………………………… 2.1.1 Macro environment analysis……………………………………………………………… 2.1.2 Micro environment analysis……………………………………………………………… 10 2.1.3 Competition……………………………………………………………………………………………… 13 2.2 Internal environment analysis…………………………………… 17 2.2.1 Resources analysis…………………………………………… 17 2.2.2 Competence analysis……………………………………………………………………………… 18 SWOT ANALYSIS………………………………………………………………………………………………… 18 3.1 Strengh ……………………………………………………………………………………………………… 18 3.2 Weaknesses……………………………………………………… 19 3.3 Opportunity……………………………………………………… 19 3.4 Threats…………………………………………………………… 20 3.5 Use SWOT analysis’s result……………………………………………………………………… 21 3.5.1 Use the strengths…………………………………………………………………………………… 21 3.5.2 Stop weaknesses…………………………………………………………………………………… 21 3.5.3 Exploit opportunities……………………………………………………………………………… 22 v 3.5.4 Defend against threats…………………………………………………………………………… 22 OBJECTIVES…………………………………………………………………………………………………………… 22 MARKETING STRATEGY……………………………………………………………………………… 23 5.1 Products……………………………………………………………………………………………………………… 24 5.2 Pricing………………………………………………………………………………………………………………… 24 5.3 Distribution……………………………………………………………………………………………………… 25 5.4 Attract investors to invest in securities through SMES…………………… 25 5.5 Maintaining positive image………………………………………………………………………… 26 5.6 Propagate the general public…………………………………………………………………… 26 5.7 Estimate expected results…………………………………………………………………………… 27 ACTION PLAN……………………………………………………… 27 6.1 Alternative plans and mixes……………………………………………………………………… 27 6.1.1 Media relations……………………………………………………………………………………… 27 6.1.2 Publications and printed material…………………………………………………… 28 6.1.3 Websites…………………………………………………………………………………………………… 28 6.1.4 Events……………………………………………………………………………………………………… 28 6.2 Schedules…………………………………………………………………………………………………………… 29 6.3 Budget…………………………………………………………… 30 6.4 Human resources…………………………………………………………………………………………… 31 6.5 Responsibilities……………………………………………………………………………………………… 31 6.6 Accountabilities……………………………………………………………………………………………… 32 RISK MANAGEMENT……………………………………………… 32 CONCLUSION………………………………………………………………………………………………………… 33 vi ABBREVIATION AND ACRONNYMS CPI The customer price index HOSE Ho Chi Minh City Stock Exchange HNX HaNoi Stock Exchange GDP Gross domestic product ORS Orient securities Corporation SSC State securities commission of Vietnam SME SME Securities Company SMES SME Securities Company UBCK State securities commission of Vietnam VND VNDirect Securities Company vii APPENDIX, TABLE, CHART AND FIFURE APPENDIX Items Page Appendix 1: The Growth of Vietnam’s economy by quarter 36 Appendix 2: VN Index with time period for 10 years 36 Appendix 3: The securities brokerage market share of 10 leading securities 37 companies in the first 06 months 2011 TABLE Items Page Table 1: Vietnam GDP Index 2010-2011 Table 2: Consumer Price Index (CPI) of the month in 2011 Table 3: Financial Index of SME Securities Company 13 Table 4: Financial Index of VND Securities Corporation 15 Table 5: Financial Index of ORS Securities Corporation 16 Table 6: The Budget of Marketing Plan 30 CHART Items Page Chart 1: Organizational Chart Chart 2: Objective of Strategic Marketing 23 FIGURES Items Page Figure 1: Risk Management 33 viii EXECUTIVE SUMMARY To develop Marketing strategy is a very important task of every business to make the most effective three targets: profit, position and secure The economy is in fierce competition, a business wants to survive and develop, it must be conducted to mobilize all resources, know how to manage all elements to achieve the set goals Through strategic marketing, businesses can develop their internal resources focused on the attractive opportunities in the market and thus will help them to improve business efficiency, enhance competition in the process of the economy development Generally, the role of marketing is not new anymore, but how to implement such marketing activities most effectively is the interest of business administrators The year of 1996 was a memorable event in the development of Vietnam's securities market that was the establishment of the State Securities Commission And then in 2000, Securities Trading Center in Ho Chi Minh City was born that laid the foundation for a new development stage of Vietnam's stock market, created favorable conditions for all enterprises develop in the equitization and freedom transfer of shares as well as support for investors with an attractive investment channel Setting up Vietnam stock market also reflects the strong growth of the economy and the increasing demand for production and investment of Vietnamese in the coming years From the urgent need to develop a marketing strategy for SME to have a specific program of marketing actions to promote the development and the driving force for the generation of staff working at the company as well as to create competitive advantage in the more harsh market After more than six years of operation, the company has to face many business rivals and has many lessons in this securities field Develop marketing strategies for SME Securities Company is an urgent action that needs to be implemented soon to meet and enhance the brand value of the company and professionalization and modernization of public sector marketing Since Vietnam has a stock market, many securities companies have been established and now there ix are 105 securities firms in the country With a pressure of market competition as well as personnel and the macro environment of the new market, SMEs also faces a change in legal basis apply for Vietnam's stock market Although Vietnam stock market is still new, the rate of establishment of securities companies is so fast that led the competition for status customers is fierce Besides the number of shares means the supply of market is sometimes become scarce due to the equitized enterprises remains small so the number of outstanding shares listed is few from which customers have little choice of goods lead to competitive sale of shares in a fierce and push up stock prices unusually high With the number of securities companies are direct competitors with SME so the company has chosen the market segment is the small investors to serve and built software e-commerce systems applications to serve customer service easier and more convenient After determining the own market segment, SME focused strategies to encourage investment and good relationships with the joint-stock companies to increase intimacy in a relationship of professional investment advice and underwriting securities for stock companies The advice will be studied in the Analysis department of the company and then send email to customers regularly In addition, the company holds seminars to evaluate the portfolio as well as comments on the situation of macro and micro world and domestic to support the investors timely in their decision on the sale of shares From this marketing strategy, SME will have specific directions in marketing activities and thus strengthen the competitiveness and attract more investors towards building fully operational procedures of the company to become a great name of securities company on the Vietnam stock market In the coming years, SME will grow strong enough to overcome the difficulties of Vietnam's economy in particular and world in general, offer new products and meet the international standards of market securities in the future 23 relationships with individuals, organizations and companies providing consulting services at domestic and abroad (audit, legal advice, ) to cooperate, sharing customer, take advantage of the parties; strengthens the cooperation with SME fund management in the investment activities and fund management; Expands the client network, especially small and medium enterprises, establish group or corporation relations; monitors the cost-cutting plans set out: lower borrowing costs, office, PR-Marketing; review provider to sign a new contract to save cost Growth target of account round 12% per month and maintain active accounts regularly round 60%; To further promote public relations activities, support customer relationship To further promote S-Pro utilities, attracting customers from the company that not have trading online, the new investors To complete and enhance the software functionality for S-Pro and S -Bos; To promote professional Pro S-through emphasizing differences Chart 2: Objective of Strategic Marketing Objective Objective of Strategic Marketing Services Strategy Pricing Strategy Distribution Strategy Promotion strategy mix Position of service Low Price Development Advertisement New products Free software more branches Promotion development Free advisory Reach the Organization of Software upgrade Free banking Customer care transaction fee MARKETING STRATEGY customer through seminars Call Center seminars Public relations 24 5.1 Products The main products supplied by SME which are the services of securities and securities market All of these services are professional and ensure the support and serve customer at the best They are closely related to each other to satisfy the customer needs, including: - Trading services directly and indirectly (Trading online via Spro or brokers); - The financial services to support customers(advance sale of securities, pledge, repo securities, securities trading co ); - Providing information to customers (market analysis information, transaction information via sms, via website, through online trading software Spro); - Receiving orders online; - Transaction offices with collaboration model; - The service packages for each customer classification; - The corporate financial services consulting; - Services transactions via mobile phones (SproMobile); - Diversification of financial services (to provide additional financial instruments as pay, withdraw money, transfer money online); - The services that need the approval of SSC can be implemented immediately (Margin trading, stock trading T2 ); - Support Software managing customer information (CRM); - Quality management software; 5.2 Pricing Most of securities companies have the own pricing strategy to compete with competitors But this is not easy for some companies to due to the high cost of personnel, premises and related services that they cannot offer very low brokerage fee SMES with long-term strategic investment and the supports of online transactions Spro software, the company has saved a lot of manpower and brokerage staffs then can give a fee which can be said is the lowest in the market This is the strength of SME has 25 been proven over the period 2009-2010 with the number of investor accounts increased 300% per year So, SME is known as a company has the most powerful online transactions software and this strength is continuously to maintain in the period 20122016 The Government’s reasonable price policy on brokerage fee has the special important meaning to support SME to set up an effective business strategy S-pro software is provided free of charge for investors to place orders and follow up market information, fundamental technical analysis as well as portfolio analysis Provides free daily analysis reports from the laboratory of SME and send to customers via their registered email addresses at the company SMES is responsible for transferring funds from the client's bank account to their trading account at the company 5.3 Distribution The company needs to build a distribution system and establish branches and transaction offices completely to increase sales and maintain company market, needs to be widely distributed throughout the network, not miss the market segments within company’s ability Also, the company needs to build directly sales force because they bring a great result with company’s products that are securities services They contribute to job creation, collect information and make customers closer to the company The company needs the smoothly coordination among departments to create a harmony, avoid congestion in the circulation or in the distribution channel The branches and transaction offices as well as the receiving order offices should have close relationships with each other to exchange information and assist together to achieve the overall goal of the company 5.4 Attract investors to invest in securities through SMES For the existing customers, SMES usually pays attention to customer needs in order to maintain good relationships with them gain the support and trust from customers, 26 expand the client network, especially small and medium enterprises, establish group or corporation relations - Search, maintain and develop customer networks; - Identify and approach the target customers; - Standardization of customer information systems, setting up a customer’s data - Build trust and customer support; - Build the sustainable relationships with customers - Organize seminars to introduce the products and services and new software utilities for customers - Consult via Call Center - Organize the letter-writing campaigns to introduce the service and attractive investment channel in SMES 5.5 Maintaining positive image SMES must maintain its position as a securities company has the powerful transaction technology software in Vietnam's stock market, where investors can maintain a portfolio of safe investment, effective results and feel comfortable with trading on the stock market This is not an easy task because the market has a fierce competition for market share (investment decisions are affected by rumors lead to incorrect behavior of investors) Moreover, SME helps investors to hold financial reserves and overcome the difficult period of the current economy then creates the trust image to the public Continue to support and guide new investors to use the software provided by SMES, helping investors achieve the highest efficiency based on the application of technology that SMES takes a great pains in building over the years 5.6 Propagate the general public Introduce and free guide for investors on the trading, the media services and investment information that SME can provide to customers regularly The company combines supporting for universities, especially for finance, banking, securities departments for students to visit and guide them to trade in the company's trading floor In addition, 27 through seminars, analysis of summarizing reports of daily and weekly trading by the brokerage director and analysis director in charge Besides maintaining and growing the information channel to the public, building and upgrading web 2.0 user-friendly Call Center PBX installed automatically with basic answers in investment support 5.7 Estimate expected results They are include - SME is in the top 10 securities firms have large brokerage market share in Vietnam - The capital is growing and risk prevention capability of the company at the rate of absolute safety - The number of investors’ accounts increase at least 100% over the year - Brand is known as a commitment and sustainability company ACTION PLAN 6.1 Alternative plans and mixes 6.1.1 Media relations The Website Vietnamese - English is always a fastest channel to update information, events, and pictures of SMES to investors as well as the economy – financial information and posted promptly to maximum support for customers Together with the professional information provider VIETFIS (famous Bloomberg News partner in Vietnam), www.smes.vn website is one of the websites of securities companies that has quickly access and full information To provide documents for investors, complete the Sale Kit for customers including specific information from opening account to CD install software S-Pro deals, instruction manual S-Pro Completing company profile about the potential, advisory services and many other marketing documents To implement marketing plan systematically, ensure brand recognition among the public Establish good relationships with the media and actively provide information and services of SME with the media to promote the brand image widely, regularly cooperate with Vietnam and Index - VTV1 - Vietnam Television, Regularly write and 28 identify in newspapers and advertise in newspapers / Magazines such as Securities Investment, Economic Times, Saigon Economic Times, Vietnam Financial Review, Vietnam News, Lao Dong, VNeconomy…) Advertising, introduce SME’s products services on e-CafeF, hanging SME logo on Lao Dong Newspaper and some partner’s websites 6.1.2 Publications and printed material Update regularly the instruction of new software for investors together with the promotion or PR activities to customers Distributing free of stock newsletters and stock analysis portfolio worth noting daily for investors who come to the company trading floor Printing the full document sent to shareholders upon annual shareholders meeting printing envelope separately with a brief introduction of the company's services when sending documents from the company to customers Thereby, the customers will know the new services or other incentives to SME customers 6.1.3 Websites In stock companies, Website is not only serves as merely providing information, marketing and brand building, training, education, cultural exchange, but also a very important role in the tool of online transactions for customers Therefore, the SMES website should meet the following conditions: - Use dynamic Web 2.0 technologies to apply for online transactions - Disclosure of information on listed companies for investors - Dissemination of the rules and regulations on securities trading - The friendly site for the users - Highlighting the important information on the site - Upgrade the site, especially the English version - Strengthening relationships with the public, the training tools… 6.1.4 Events 29 Marketing Department coordinates closely with PR department to organize workshops investors, holds reducing costs program, transaction fees awarded to bring the value to investors for SME In this year, SME will organize a seminar for investors with the participation of speakers from countries with stock market growth as the USA, Japan that attract more attention of investors to the market The company also holds events to give investors information to predict accurately the market period from 2012 -2013 and help them make decisions in Buying - Selling the right time The seminars should be held regularly during the year because investors are interested in the economic situation and predict the future of the stock market In 2013, SMES will continue to organize series of workshops with contents like market forecast, the stock recommendations, businesses to invest In the second, third and fourth quarters of the new year, the company will continue to invite securities experts such as Singapore, Hongkong to present at seminars and consulting support for SME’s investors in purchasing decisions This is one of the important activities of the company In 2012-2013, SMES focus on the development of target group of customers as the following: existing customers; online customers (to attract and grow through online marketing tools together with the advantages of S-Pro software) as office employees, customers in far areas (outside the two major economic centers: Hanoi and HCM), organizations and other potential customers (Especially Korean customers through the introduction and support of Tong Yang Group is South Korea's intimate partner SMES) Continue to implement customer services as offering birthday gifts, visiting investors in the special occasions 6.2 Schedules Timeframe: from 2012 to 2016 There are 03 categories: - Ongoing category: frequent, regular and daily activities such as media relation, publication, web… - Events: regular and planned (Table 6) - Upgrade new building and big events: (Table 6) 30 6.3 Budget SMES will be available from approximately 10-15% of profit for the company's marketing plans in order to reach and achieve the proposed plan: Table 6: The Budget of Marketing Plan Advertising Start date End date Budget Department Marketing plan completion 01/01/2012 30/04/2012 $0 Marketing Advertising campaign No.1 01/01/2012 31/12/2012 $5,000 Marketing Advertising campaign No.2 01/01/2013 31/12/2013 $10,000 Marketing Advertising campaign No.3 01/01/2014 31/12/2014 $10,000 Marketing Advertising campaign No.4 01/01/2015 31/12/2015 $10,000 Marketing Advertising campaign No.5 01/01/2016 31/12/201 $10,000 Marketing Total Advertising budget $45,000 PR Start date End date Campaign No.1 01/01/2012 31/12/2012 $5,000 Marketing Campaign No.2 01/01/2013 31/12/2013 $5,000 Marketing Campaign No.3 01/01/2014 31/12/2014 $5,000 Marketing Campaign No.4 01/01/2015 31/12/2015 $5,000 Marketing Campaign No.5 01/01/2016 31/12/2016 $5,000 Marketing $25,000 Marketing Total PR budget Promotion Start date End date Promotion campaign No 01/01/2012 31/12/2012 $5,000 PR Promotion campaign No.2 01/01/2013 31/12/2013 $5,000 PR Promotion campaign No.2 01/01/2014 31/12/2014 $5,000 PR Promotion campaign No.2 01/01/2015 31/12/2015 $5,000 PR Promotion campaign No.2 01/01/2016 31/12/2016 $5,000 PR Total promotion budget Others $25,000 Start date End date 31 Festival for children 01/06/2012 05/06/2012 $10,000 PR Intelligent children competition 15/09/2013 31/10/2013 $10,000 PR Philanthropy at Children's Hospital 15/09/2014 31/10/2014 $10,000 PR for poor 15/09/2015 31/10/2015 $10,000 PR 31/10/2016 $10,000 PR Funded scholarships students Support charities women Vietnam 15/09/2016 Total for others $50,000 Grand Total $145,000 6.4 Human resources With a Marketing team include staffs, SME needs to recruit more staff and upgrade to Marketing department to implement marketing contents as setting up a marketing plan and submit to Board of Directors for approval Develop and coordinate with other departments to implement the programs: Guide customers to use the trading tools, products and services; promotion seminar; customer services; advertisement Coordinating with specialist department to make information and introduce share issuance consultancy, listing advisory The departments should coordinate include: - Business Development - Securities services - Financial Services - Analysis - Investment - Corporate Financial Advisory - Finance - Information Technology - Administration - Legal & internal control 6.5 Responsibilities 32 01 Marketing director will in charge of marketing activities 6.6 Accountabilities The plan will be reviewed, evaluated and adjusted annually by marketing & PR department under the direction of Marketing Director It will be reported to and approved by the CEO RISK MANAGEMENT Every week the Marketing department has to submit weekly report on business results ,weekly work plan, weekly working schedule and next week planning Control marketing costs, not let the occurrence of unanticipated work costing too much cost Identify and assess the risk of a marketing plan or specific program Risk management must have the whole system work, including corporate marketing departments to closely coordinate with each other to unite and identify the risk level Efficient allocation of human resources is promoted the strength of staff optimization of error control and cost reduction in the maximum level without affecting the productivity and work efficiency The marketing staffs have to assist management in considering and determining a reasonable decision for achieving the goals set out by the company Identify risks are clearly out of control and risk in control in order to have specific plans to minimize the risks that are of control SME is also trying the best to identify significant risk (competitors, information technology, consumer behavior, corporate services) All risks should be included in the plan to be very carefully before making decisions There are detailed plans of risk prevention that occur during implementation of the company's business activities such as brokerage transactions, advising clients as incorrect orders, the trading system is interrupted, the information misleading 33 information or the occupational risk for financial consulting activities that can cause the complaints and lawsuits from customers Risk management in trading activities, SME has built the transaction process, training for staff and strict control of the implementation process SME continue to invest in modern hardware systems, advanced software with high reliability along with a good and experienced team of information technology to ensure stability and reliability of the system simultaneously development and implementation of management processes transactions closely to minimize the risks associated with the transaction Figure 1: Risk Management CONCLUSION Vietnam's stock market is still new and undeveloped The favorable macroeconomic with experienced a boom time in the past few years However, the economy is now facing the global financial crisis as well as SME faces the competition from 104 other companies while SME continuously attracting new customers is a difficult thing So the appropriate trading strategy is very important In marketing strategy needs to encourage and supply the market by supporting and enabling the enterprise equitization and 34 listing, to create more sources and choices for investors, strengthen relationships with listed companies, stock companies, maintaining a positive image and good services The strategy must then be implemented through action detailed plans By this way, SME will achieve its goal to maintain its competitiveness and brand known for many investors with strong technology platform and support in dealing securities investment consulting 35 BIBLIOGRAPHY 01 06 Phillip Kotler, Gary Amstrong, John saunders, Veronica Wong (1996), Principle of Marketing Rechard m.s Willson and Colin Gilligan (1992), Strategic Marketing Management Prof Jean – Pierre Baeyens, Strategic marketing management Course notes for MBMM5 Solvey Business School University of Brussels Prof Olivier Kupferman, Marketing and Business Planning Course notes for MBMM5 Solvey Business School University of Brussels Claire Guslin, E-Business management Course notes for MBMM5 Solvey Business School University of Brussels SMES Company, Annual Report 2010-2011 07 VND Corp, Annual Report 2010-2011 08 ORS Corp, Annual Report 2010-2011 09 Prospectus of SMES Company 10 http://ssc.gov.vn 11 http://hsx.org.vn 12 http://hnx.org.vn 13 http://smes.vn 14 http://www.ors.com.vn 15 https://www.vndirect.com.vn 16 http://www.mof.gov.vn 17 http://www.gso.gov.vn 02 03 04 05 36 APPANDIX The growth of Vietnam's economic by quarter (Source: Vietnam Statistics Bureau) APPANDIX VN Index with time period for 10 years (Source: Ho Chi Minh City Stock Exchange) 37 APPANDIX (Source: Ho Chi Minh City Stock Exchange) ... Orient securities Corporation SSC State securities commission of Vietnam SME SME Securities Company SMES SME Securities Company UBCK State securities commission of Vietnam VND VNDirect Securities Company. .. international standards of market securities in the future 1 INTRODUCTION 1.1 Company description The full name of SME Securities is Securities Corporation SME (SME Securities/ SMES), established under... knowledge I learned to contribute a little effort into the concerns and worries of the Company in the topic: "Strategic Marketing for SME securities company This project carried out under the