Marketing strategy to improve the customers loyalty of trung thủy group corporation master project in business and marketing management

TRƯỜNG ĐẠI HỌC MỞ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM4 TRAN MAI DOAN THAO MARKETING STRATEGY TO IMPROVE THE CUSTOMERS’ LOYALTY OF TRUNG THUY GROUP CORPORATION MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Dr Ha Tran Minh Quan Ho Chi Minh City (2010) DECLARATION I ensure that this thesis: "Marketing strategy to improve the customers’ loyalty of Trung Thuy group corporation" is the work of my own research The data and information used in this thesis is true Author Tran Mai Doan Thao   Page | ii   ACKNOWLEDGMENTS First, I must thank God for giving me the strength to complete this thesis With Him all things are possible My thanks to the people who have helped me throughout this Master program Without their support, encouragement, and understanding, I would never have achieved my final academic destination I wish to express my deepest respect and heartfelt thankfulness to my tutor – Dr Ha Tran Minh Quan - for their patience and encouragement His consistent support and guidance throughout my time were critical to the successful development and completion of this thesis I also would like to express my deepest respect and heartfelt thankfulness to Solvay Brussels School and Ho Chi Minh City Open University, Profesor Jean-Pierre BAEYENS and the administrative staffs at ULB – Mr Serge Bywalski and OU – Ms Nguyen Thi Mong Thuy for their generous help and encouragement during my master studies Special Thanks go to my parents who always encourage and support me I am grateful to them for their love, understanding, prayers and encouragements Finally, I would like to thank all my friends and colleagues for their support, assistance, kind friendship and insight particularly Without their help, the pursuit of master degree would have been more difficult and lonely Page | iii   Customer’s loyalty has always been a burning issue in any business, so in my assessment, this is a realistic and highly applicable topic but it requires a lot of effort in the survey to find out the customers’ information exactly And during the time to go together with her to this thesis, I realized that she tried to listen carefully, receive ideas and try to complete a thesis as best as she can Sincerely HCMC, 13 December 2010 Page | iv   TABLE OF CONTENTS Declaration ii Acknowledgement iii Tutor’s comments iv Table of contents v Abbreviation vii List of tables and charts viii Abstract ix PART 1: Introduction I The rise of TTG II Background of study III.Problem statement IV Purpose of the study PART 2: Literature review I.Customer relationship management II.The relationship between loyalty and satisfaction 12 PART 3: Methodology 14 I Introduction 14 II.Research objective 14 III.Method of research 14 IV.Analysis data 15 Page | v   V.Questionnaire design 15 VI.Questionnaire layout 15 PART 4: Research findings and analysis 16 I Research findings and analysis 16 1.LCB 16 MKR 17 3.MAB 23 PART 5: Discussion and recommendation 24 I.Discussion 24 1.Key service drivers of each business field 24 What is TTG’s big ideals 24 Brand Architecture direction of TTG 26 II Recommendation: Marketing strategy to improve the customers’ loyalty 27 1.Develop good relationship with landlords 27 Develop good relationship with tenants 27 Cross-selling program 28 Strengthen and maintain the loyalty of employees 29 Membership card 30 Quarterly party for loyal customers 31 Referrence 32 Conclusion 33 Appendices Page | vi   ABBREVIATION TTG Trung Thuy Group Corporation LCB Lancaster Building MAB Miss Aodai Building MKR Mekong Rest Stop AQS Annam QT spa SP Sen spa HVRS Hai Van Rest Stop MAA Miss Aodai Apartment CSSM Customer service strategic management CRM Customer relationship management VN Vietnam HCMC Ho Chi Minh City Page | vii   LIST OF TABLES AND CHARTS Table How much are you satisfied or dissatisfied with the following areas at Mekong Rest Stop Table How would you like to have your meal at Mekong Rest Stop? Table How much you agree or disagree that…? Table What is the single improvement that Mekong Rest Stop could make to increase your satisfaction? Table If Mekong Rest Stop has take-away food corner, how likely will you buy the food to take with you Table The proposal rate of Cross selling program Table The proposal rate for staffs and their relatives Chart The average points of customers of the criterias Chart The percentate of customers’ meal choices Chart The perception of customers about Mekong Rest Stop Chart The percentage of improvement Chart The percentage of agreeing take-away food corner Page | viii   ABSTRACT During the past years, Vietnam has confirmed the ability and potential by developing their high successes and the impressive boom over the statistics on the economy Simultaneously, the trend of globalization and international economic integration is an inevitable trend in the world and Vietnam is no exception to this process Clearest evidence of this development is Vietnam people lives are increasingly improving in all aspects Complying with the rules of the Maslow tower, now most Vietnam people not worry about “meals”, they just think about "What to eat in the meal" Demand for food, accommodation, clothing, leisure has changed over the apparent transformation of the related fields Grasp of market trends as well as potential economic development of Vietnam, during many years, Trung Thuy Group Corporation (TTG) has diversified in their investment for a wide range of products, services and achieved more successes However, the market is growing, competition is also increasing, so besides seeking a strategy to expand markets and develop more customers, TTG should have a plan to maintain and enhance loyalty for existing customers Maintaining the loyalty of customers before the competition hit the steps was a necessary step for existence and development of all enterprises in general and TTG in particular It’s so important because Cost of getting a new customer is five times more retaining an old customer Some important questions need to answer before having a precise program to encourage and maintain the customers’ loyalty:  Type of products or services that customers are looking at the company?  How the company can meet customer's objectives?  What customers expect from the company and brand?  What are the things that customers appreciate? At first we should have a research on current customers who are using services or products of TTG’s branches Moreover, through this research, it will help the customers understand more clearly about TTG and the brands belonged Page | ix   PART INTRODUCTION I The rise of TTG: TTG started with the Miss Aodai brand since the 90’ Today MISS AODAI is one of the leading shopping centre in providing high-quality handicraft and fine arts goods and one of the top ten travel destinations for tourists in HCMC and Hanoi From the Miss Aodai, TTG has expanded its operation into new fields such as property development & management, spa services, green rest stops… Today TTG becomes a multidisciplinary company Currently, TTG has 10 branches including: The Lancaster building The Miss Aodai building The Miss Aodai apartments The Miss Aodai shopping centre The Aodai Hanoi shopping centre The Orient shopping centre The Sen Spa The Anam QT Spa The Mekong Rest Stop 10 Hai Van Rest stop – Da Nang And some big projects in progress  One premium resort and spa in BinhChau, Vungtau, Dalat province  A chain of Rest Stops in the South and Centre of Vietnam  Some luxury serviced apartment in Center Districts of Ho Chi Minh City Page |    Through them, we can find out where they are often activities (restaurant, club, bar ) This is key places where concentrated many people as the same level, country This is a very good place to find new customers How to approach:  We can contact them through the courtesy to say hello everyday or the short conversation to visit, explore their satisfaction through surveys  Having gift cards, gifts on special occasions  Quickly discovered the need and taking the person in charge (assistants, secretaries, ) and will work directly with these people When there was a referral from them, everything will be much easier  At the point of living (restaurant, bar, club), we should be clearly understood, the needs of target groups for easy access, introduce yourself and exploration needs Cross selling plan to maximize revenue for TTG: With the advantage of multi-sector companies in the service sector, TTG will exploit it to create additional value for its customers We will divide into groups of clients as follows: - Group 1: current tenants/clients of Lancaster, MAA, MAB - Group 2: Customers of spas, shopping center, tour operator  Criterions: - Creating a closed circle for all the products/services of TTG => in order to maximizing revenue for TTG: when you are a customer of Lancaster, MAB then you will be also customers of other services: Sen / Anam, MAS - Creating additional values for the real estate products of TTG: you will enjoy special privileges that no other places have when you rent an apartment/office of the TTG - Send coupons each month for the landlord/ current tenants/ clients Page | 28   - The proposal rate of Cross selling program: Table 6: The proposal rate of Cross selling program Branches Commission rate The Lancaster building 10% The Miss Aodai building 10% The Miss Aodai apartments 10% The Miss Aodai shopping centre The Aodai Hanoi shopping centre 20% 20% The Orient shopping centre 20% The Sen Spa 10% The Anam QT Spa 10% The Mekong Rest Stop 5% 10 Hai Van Rest stop – Da Nang 5% To strengthen and maintain the loyalty of employees: - Create policies to support and motivate employees, such as: further study to improve professional qualifications - There are programs voted outstanding employee of the month / quarter / year and have a reasonable reward regime to encourage employees to strive - There is a policy to adjust the salaries of employees each year  Also having a program for them: - Staffs are not only the person who understanding clearly about TTG’s but they also are loyal customers of the company so we need to have the best promotion program for them and their relatives Page | 29   - I think this is a very good channel to keep staffs and expand more new customers Table 7: The proposal rate for staffs and their relatives Field Branch Rate (for staffs and staffs’ relatives) Miss Aodai HCMC Shopping center Miss Aodai Hanoi Discount 50% Orient HCMC Spas Rest stop Sen spa Discount 30% Anam QT spa Discount 40% Mekong rest stop Discount 15% Haivan Rest stop Discount 20% Membership card: We have levels of membership card as follows: Level 4: Chairman group: when customers get 300 points, they will join this group and they can get 15% discount for every time they use services or buy products Level 3: Millionaire group: when customers get 200 points, they will become a member of this group and they can receive 10% discount for every time they use services or buy products Level 2: Golden group: when customers get 100 points, they will become a member of this group and they can receive 5% discount for every time they use severvices or buy products Level 1: Beginers: Discount 5% for the next time if they get 10 points Page | 30   We have types of loyal customers:  The customers from 01 June 2009 to 31 Dec 2010 , and they can meet the below criterias: - For Miss Aodai building, 10B1 apartment, Lancaster building: All householders/ current tenants/ current clients who leasing office space - For Spas: who use at least 20 times/per year and continuosly - For Shopping center: who spend at least 100million/year and countinuously - Rest Stops: director of the tourism company which often have tourist visiting Mekong Rest stop  They will become a member of Golden Group from 01 Jan 2011  The customers from 01 Jan 2011: We will call them by beginners To the beginners, every time customers buy products or use services of any brand of TTG, they can get point and when they collect 10 points, they can get 5% discount for next time Quarterly party for loyal customers: - Every quarter, we will have a party for loyal customers at a luxury restaurant or hotel so that they can exchange relationship together In this party, we will total the customers’ points that they got in that quarter and give to them - Besides, we also announce the name of customers who level up and invite them to stage to receive a new membership card with a small gift Page | 31   REFERENCES The thesis “the accuracy of customer reward program” for the Master’s degree in Business Administration – Fall/Spring 2008 of Phillip Law, Literature part, page 34 Customer relationship management of Prof Fabian Delahaut – MBMM4 – ULB Research documents of Prof Claire Gruslin – MBMM4 - ULB Page | 32   CONCLUSIONS Actually, if a business can increase the 5% in customer loyalty, the profit will increase by approximately 25%-85%, or different way, an unhappy customer will tell the discomfort to nine people and one satisfied customer will tell to five others about their good feeling for those products and services So when a business does not satisfy customer need that means it not only loses customers, but also lose many potential customers Businesses should understand that to always get succeed and have growth can only be driven by the market, which means companies have to invest and trade based on understanding the needs of customers with the best goal to satisfy their needs and wants Overall, the TTG still is a good developing company, however, through the survey, we also noticed that many customers still are not satisfied for some brands of the group, and majority of those did not know the brand owned by TTG Research will help the TTG access and solve those problems Thereby, TTG will have concrete results of the evaluation, perceived by customers for each product - service This is also a solid basis for quality improvement and construction of competitive strategy, marketing, brand building strategy, trade promotion Hope with this marketing strategy, TTG will maintain and development more and more loyal customers Page | 33     Page | 34   MAIN QUESTIONNAIRE We're doing a survey on Mekong Rest Stop, and we'd like to include your opinions So please answer the following questions by yourself based on what you truly think or feel about what you will be asked Your opinions and comments are highly appreciated Q1 What is your nationality? (Please write below) - Q2 How many times have you been to Vietnam? (Please circle the appropriate number) First time Second time More than times Q3 How many times have you been to Mekong Rest Stop? (Please circle the appropriate number) First time Second time More than times Q4 How much are you satisfied or dissatisfied with the following areas at Mekong Rest Stop? (Please circle the number that best represents the extent to which you’re satisfied or dissatisfied) Staff behavior Food quality Drinks quality Souvenir items quality Landscape Cleanness Q5 Very Dissatisfied Slightly Dissatisfied Neither Slightly Satisfied Very Satisfied 5 5 5 How would you like to have your meal at Mekong Rest Stop? (Please circle the appropriate number) I would like to choose the food from the menu by myself I would like to let the tour agent decide the food for me Whichever way Q6 How much you agree or disagree that… (Please circle the number that best represents the extent to which you agree with each statement) YOUR FEELINGS ABOUT MEKONG REST STOP Strongly Disagree Slightly Disagree Neither Agree nor Disagree Slightly Agree Strongly Agree 5 5 5 5 This is the most pleasant place I’ve visited during my trip I really enjoy the food at Mekong Rest Stop This is an ideal place to stop by and rest Mekong Rest Stop offers a good variety of foods All the staff at Mekong Rest Stop are friendly and hospitable Mekong Rest Stop offers a good variety of drinks Prices here are too expensive It’s too crowded here for relaxing Mekong Rest Stop has a rich cultural architecture Q7 What is the single improvement that Mekong Rest Stop could make to increase your satisfaction? (Please write below) - Q8 If Mekong Rest Stop has take-away food corner, how likely will you buy the food to take with you? Very Unlikely Q9 Neutral Likely Very Likely On a rating scale from – 10, with 10 being the highest and the lowest, how would you rate your overall visit to Mekong Rest Stop? (Please circle the appropriate number) Q10 Unlikely 10 If you will come back to Vietnam in the future, would you like to visit Mekong Rest Stop again? (Please circle the appropriate number) Yes Not decided No Discussion guide for Trung Thuy Group (Tourguide) Background: Trung Thuy (TT) Group started Miss Aodai gift shop brand which has been very popular among Japanese tourists since the 90s From that, the group has expanded its operation into different areas such as office leasing, serviced apartment, rest stops, resort and spa With the ambition to become the top service company with sustainable growth, TT Group now wants to develop a strategic positioning for the group across its business segments Research is now required to gain understanding of key stakeholders of TT Group before the brand positioning strategy is developed Research objective: To acquire insights in the tour organizing process Assess perception about Trung Thuy Group Introduction: a) General introduction on discussions sessions b) Confidentiality: personal information can be kept confidential c) We are here today to exchange ideas, and I’m here to learn from you There are no right or wrong answers to any questions / any views Please feel free to speak your mind and express your views d) Moderator self introduction and respondents round table introduction Warming up: a) Please introduce yourself (name, company and position) b) What are tourists looking for nowadays? About tour operating and perception about Mekong Rest Stop: a) What are the criteria you consider when booking a service/destination (gift shop, hotel, sightseeing location, spa…) for your guests? b) What is the process? Are there any concerns about services/destinations/shops for tourists? c) How did you or your company start working with Mekong Rest Stop? d) What did your guests and colleagues talk about Mekong Rest Stop in terms of service, location, product quality, facilities, hospitality…? Any complains or compliments? e) What did your tour guides talk/think about Mekong Rest Stop? Any complains or compliments? f) What you think tourists are looking for in Mekong Rest Stop? g) Who are their main customers? What kinds of customers are they? Where’re they from? What are they interested in? h) What should Mekong Rest Stop to attract more guests from different groups? i) What should they improve? j) In your opinion, what is the ideal rest stop for tourist? k) If there was no Mekong Rest Stop, what would be the equal alternatives? Why? l) Do you know which company owns Mekong Rest Stop? m) If yes, how much you know about it? n) What you think/feel if there’ll be a rest stop chain named Trung Thuy? Do you think it will help to attract more guests? About Trung Thuy Group: a) b) c) d) What you know about Trung Thuy Group? When you hear I say “TT Group”, what you immediately think/feel about? Do you know what services/products are they providing? What are they? What are the impressions you have about TT Group - It could be about its people, service, scope, look, logo, name, etc e) What would you think if I tell you TT Group have business in different fields including:  Office leasing, Serviced apartments, Spa, Rest Stop, Resort, Gift Shop Ending and give incentives Discussion guide for Trung Thuy Group (Miss Aodai Office Building’s Tenants) Introduction: a) General introduction on discussions sessions b) Confidentiality: personal information can be kept confidential c) We are here today to exchange ideas, and I’m here to learn from you There are no right or wrong answers to any questions / any views Please feel free to speak your mind and express your views d) Moderator self introduction and respondents round table introduction Warming up: a) Please introduce yourself (name, company and position) b) What would be your dream office anywhere in the world? How would it look like? c) Have you ever been to an office like that? About office renting: a) What are the criteria you consider when choosing an office to rent? b) Was the process difficult? Are there any concerns about office buildings market in general? c) How did you find out about Miss Aodai office building? d) What made you chose Miss Aodai office building? e) When you first moved there, are there any difficulties in moving in? What were they? How did you cope with it? f) How you evaluate the service of Miss Aodai office building?  Its location / Facilities / Services / Staff / Image g) What should they improve? h) How about the building management over there? Are they responsive? i) In your opinion, what is the ideal building management? j) If you hadn’t chosen Miss Aodai office building, where would have you moved to? k) How are they satisfied with the location? Any complains or compliments? l) What about other people (who are guests, business partners, suppliers…) think/talk/feel when they know your company is in Miss Aodai office building? m) How long you think your company will stay in Miss Aodai office building? n) What would make you move to a new office building? o) What does the name Miss Aodai make you think/feel about? How does it sound to you? p) What kinds of associations you have with the name Miss Aodai? q) Do you know which company owns Miss Aodai office building? r) If yes, how much you know about it? Did it affect your decision in choosing Miss Aodai building for your office to move in? Why? About Trung Thuy Group: a) b) c) d) What you know about Trung Thuy Group? When you hear I say “TT Group”, what you immediately think/feel about? Do you know what services/products are they providing? What are they? What are the impressions you have about TT Group  It could be about its people, service, scope, look, logo, name, etc e) What would you think if I tell you TT Group have business in different fields including:  Office leasing, Serviced apartments, Spa, Rest Stop, Resort, Gift Shop f) Show respondents Trung Thuy logo and Miss Aodai logo separately  What you think and feel about the logo  What impressions the logo bring you  Do you think Miss Aodai is a good name for office building  Any suggestion for improvements Ending and give incentives Discussion guide for Trung Thuy Group (Lancaster’s apartment tenants) Introduction: a) General introduction on discussions sessions b) Confidentiality: personal information can be kept confidential c) We are here today to exchange ideas, and I’m here to learn from you There are no right or wrong answers to any questions / any views Please feel free to speak your mind and express your views d) Moderator self introduction and respondents round table introduction Warming up: a) Please introduce yourself: name / what you do? b) How you define good customer service at places like serviced apartment? c) What would be your dream/ideal home anywhere in Vietnam? How would it look like? About apartment renting: a) What are the criteria you consider when choosing an apartment to rent, especially when you’re in a foreign country? b) Was the process difficult? Are there any concerns about apartment buildings in HCMC in general? c) How many segments/types of apartment building are you aware of? How you perceive the differences among these segments? d) How did you find out about The Lancaster apartment building? e) What made you chose The Lancaster? f) When you first moved in, are there any difficulties in moving in? What were they? How did you cope with it? g) How you like your apartment? h) If you didn’t live in Lancaster apartment, how would you life change? i) How you evaluate the service and quality of The Lancaster apartment building?  Its location / Look / Layout / Facilities / Services / Staff / Image j) What should they improve? k) How about the building management over there? Are they responsive? l) In your opinion, what is the ideal building management? m) If you hadn’t chosen The Lancaster apartment building, where would have you moved to? n) What your friends/family members/colleagues/business partner think about your moving to The Lancaster building? o) Overall, how are you satisfied with the location? Any complains or compliments? p) How long you think you will stay in The Lancaster apartment? q) What would make you move to a new apartment? r) Which apartment building in the city you think is providing the best service? Why you think so? s) What does the name Lancaster think/feel about? How does it sound to you? t) What kinds of associations you have with the name Lancaster? u) Do you know which company owns The Lancaster building? v) If yes, how much you know about it? Did it affect your decision in choosing Lancaster? Why? w) Lancaster building is suitable for what kinds of customers? About Trung Thuy Group: a) b) c) d) What you know about Trung Thuy Group? When you hear I say “TT Group”, what you immediately think/feel about? Do you know what services/products are they providing? What are they? What are the impressions you have about TT Group - It could be about its people, service, scope, look, logo, name, etc e) What would you think if I tell you TT Group have business in different fields including:  Office leasing, Serviced apartments, Spa, Rest Stop, Resort, Gift Shop Ending and give incentives ... Building, Miss Aodai Building and Mekong Rest Stop on the minds of customers and partners  Define the role of the brand on the brand structure of TTG  Suggesting the measures to maintain and increase... expand markets and develop more customers, TTG should have a plan to maintain and enhance loyalty for existing customers Maintaining the loyalty of customers before the competition hit the steps was... ensure that this thesis: "Marketing strategy to improve the customers? ?? loyalty of Trung Thuy group corporation" is the work of my own research The data and information used in this thesis is true