LV Thạc sỹ_Development marketing communication mix in Hien Duc corporation

1 ACKNOWLEGEDMENT Firstly, upon the formation of this research ideas and paper, I would like to send my most sincere thanks to my supervisor, Dr Nguyen Quang Hong …for his valuable support in my MBA thesis I am also indebt to all of the lecturers and instructors in Business School of Hanoi National Economic University who are very whole- hearted in lessons, speeches, case studies and teaching method All these lessons gave me precious knowledge in business that I will have more chance to apply in practice in future I am also grateful to the helps of my colleagues in HDC for sharing data, motivating and encouraging me so much to come to conclusions in my research Last but not least, I would like to send my thanks to my family, my classmate in class EMBA8B for their strong support and being the companions in the progress of my work - TABLE OF CONTENTS - ABRREVIATIONS 22 LIST OF TABLES 22 LIST OF FIGURES 22 EXECUTIVE SUMMARY 11 22 CHAPTER 13 22 INTRODUCTION 13 22 CHAPTER 18 22 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 18 22 CHAPTER 46 22 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 46 22 CHAPTER 83 22 RECOMMENDATIONS ABOUT SOLUTION TO PERFORM MARKETING COMMUNICATIONS MIX FOR HD COMPLEX OF HIENDUC CORPORATION 83 22 LIST OF REFERENCES 94 22 - APPENDIX 96 23 APPENDIX 97 23 APPENDIX 99 23 ABRREVIATIONS 23 LIST OF TABLES 11 23 LIST OF FIGURES 13 23 EXECUTIVE SUMMARY 15 23 CHAPTER 17 23 INTRODUCTION 17 23 CHAPTER 22 23 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 22 23 CHAPTER 50 24 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 50 24 CHAPTER 87 25 - RECOMMENDATIONS ABOUT SOLUTION TO PERFORM MARKETING COMMUNICATIONS MIX FOR HD COMPLEX OF HIENDUC CORPORATION 87 25 LIST OF REFERENCES 98 25 APPENDIX 100 25 APPENDIX 101 25 APPENDIX 103 25 ABRREVIATIONS 26 LIST OF TABLES 28 ABRREVIATIONS 30 LIST OF TABLES 30 LIST OF FIGURES 30 EXECUTIVE SUMMARY 11 30 CHAPTER 13 30 INTRODUCTION 13 30 CHAPTER 18 30 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 18 30 - CHAPTER 46 30 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 46 30 CHAPTER 83 30 RECOMMENDATIONS ABOUT SOLUTION TO PERFORM MARKETING COMMUNICATIONS MIX FOR HD COMPLEX OF HIENDUC CORPORATION 83 30 LIST OF REFERENCES 94 30 APPENDIX 96 31 APPENDIX 97 31 APPENDIX 99 31 ABRREVIATIONS 5 31 LIST OF TABLES 31 LIST OF FIGURES 31 EXECUTIVE SUMMARY 11 31 CHAPTER 13 31 INTRODUCTION 13 31 - CHAPTER 18 31 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 18 31 CHAPTER 46 31 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 46 31 CHAPTER 83 31 RECOMMENDATIONS ABOUT SOLUTION TO PERFORM MARKETING COMMUNICATIONS MIX FOR HD COMPLEX OF HIENDUC CORPORATION 83 32 LIST OF REFERENCES 94 32 APPENDIX 96 32 APPENDIX 97 32 APPENDIX 99 32 ABRREVIATIONS 32 LIST OF TABLES 11 32 LIST OF FIGURES 13 32 - EXECUTIVE SUMMARY 15 32 CHAPTER 17 32 INTRODUCTION 17 32 CHAPTER 22 32 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 22 32 CHAPTER 50 32 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 50 33 CHAPTER 87 33 RECOMMENDATIONS ABOUT SOLUTION TO PERFORM MARKETING COMMUNICATIONS MIX FOR HD COMPLEX OF HIENDUC CORPORATION 87 33 LIST OF REFERENCES 98 33 APPENDIX 100 33 APPENDIX 101 33 APPENDIX 103 33 - ABRREVIATIONS 33 LIST OF TABLES 11 33 LIST OF FIGURES 19 33 EXECUTIVE SUMMARY 21 33 CHAPTER 23 33 INTRODUCTION 23 33 CHAPTER 28 34 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 28 34 CHAPTER 56 34 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 56 34 CHAPTER 93 35 RECOMMENDATIONS ABOUT SOLUTION TO PERFORM MARKETING COMMUNICATIONS MIX FOR HD COMPLEX OF HIENDUC CORPORATION 93 35 LIST OF REFERENCES 104 35 - 10 APPENDIX 106 35 APPENDIX 107 35 APPENDIX 109 35 LIST OF FIGURES 36 ABRREVIATIONS 38 LIST OF TABLES 38 LIST OF FIGURES 38 EXECUTIVE SUMMARY 11 38 CHAPTER 13 38 INTRODUCTION 13 38 CHAPTER 18 38 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 18 38 CHAPTER 46 38 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION 46 38 CHAPTER 83 38 - 10 318 is 0.3% A larger expenses comes from mock up because it includes fees of design, build, consultancy and management, interior, and equipments inside All has been been performing by foreign contractors Table 4.1: Marketing Communications Forecast for 2013 Tools Advertising VND - Television advertising (VTV1, VTV3, 6:00am- 13,248,000,000 Of total 7:00am; 19h50, 11:55- 13:00 on Sunday, 3days/perweek on months Duration: minutes - Radio 776,000,000 - Newspapers and magazines 630,000,000 - Outdoor ( pano, public spaces, ,billboards …) 700,000,000 - Brochure 21,000,000 - Telephone 10,000,000 - Direct mail and internet 150,000,000 - Others 100,000,000 Total advertising budget 15,635,000,000 23.36% Events and experiences 50,000,000,000 74.70% - Mock room 50,000,000,000 Personal Selling (0.1% revenue in 2013) 1,100,000,000 1.64% 200,000,000 0.30% 66,935,000,000 100.00% Others Total marketing communications forecast for 2013 4.3.6 Criteria for measure Each tool of MCM has criteria to measure: - 318 319 Table 4.2: Criteria for MCM measure Tools of MCM Criteria - Customer’s awareness, knowledge or preference about the advertised products Using the consumer feed back method to ask customers Advertising and about: + What is the main message you get from advertising? direct marketing + How likely is it that this ad will influence you to undertake the action? + How does the ad make you feel? - The advertising’s sales effect Criteria are given from sales call report: - Average number of sales calls per sales person per day Personal Selling - Average sales call time per contact - Average revenue per sales call - Percentage of orders per hundred sales calls, - Number of customers per period Events and experiences - - Sale force cost as a percentage of total sales - Customer’s satisfaction - How many contracts that have been signed between HDC and customers? 319 320 4.3.7 Control and valuation HDC choose advertising and direct marketing, events and experiences, and personal selling are main tools to perform MCM Events and Experiences: HDC spends so much money on design and building mock rooms that imitate the real apartments on HD Complex There will have types of typical apartments in HD Complex with full interior and landscape around After the mock rooms have been finished, customers will be invited to visit to see the first imitation of HD complex’s apartment and imagine how their life will be in those apartments, Advertising: Base on analysis on Chapter about fluency of using mass media, customer’s watching time habit, customer’s favorite program HD Complex’s MCM concentrates great efforts on television marketing in months before and after official sale stage 1.5 months Choosing VTV1 and VTV3 program which are very popular channel to connect product introduction with customers - Duration advertising: minutes - Time advertising: + 6:00 am to 7:00 am on VTV1, time per day, times per week + 11:50 to 13:00 every Sunday + 19:50 to 20:00 on VTV3, time per day, times per week On radio: Traffic VOV is chosen to advertise HD complex during months Advertising will be broadcasted within minute in the morning and evening (2 times per day) when people drive their car to work and go home On magazines and newspapers: Advertisements will be shown on the total last page of VIR and VN economy in three months (3 times per week) and ẳ to ẵ of any pages inside Vietnam Property Review - 320 321 Outdoor advertising: + Public places: with the aims to attract foreign customers’ notice, HD complex will be advertised by public places along Thang Long Highways so that, on the way from Noi Bai Airport to the centre of Hanoi foreigners can see HD Complex’s image on the road side By this way, it costs HDC about 600.000.000 VND per year to advertise and is intended to perform from June, 2013 + Billboards will be advertised on big Mall such as: Vincom, The garden, Big C Within months before and after official sale stage The expenses for each place costs about 60.000.000 VND per year Besides, HD Complex website will be designed with eye-catching images, full information, especially video function in website allows customers can visit mock rooms by online This is a new technique that has been applied on real estate website recently Other tools of advertising: there will have 1000 printed and designed brochures that supply full and clear information of HD Complex with customers Besides, customers will receive advertising email from HDC ‘s sale department Personal Selling: Sale force objectives: - Spending 20% of their time with current customers and 80% with prospects, spend 30% of their time with current properties but 70% with new property - Approaching, presenting, answering questions, overcoming objections and closing sales - Providing various services to the customers- consulting on problems, arranging finance… - Obtaining 30% of HD Complex revenue in 2013 - 321 322 Sale force structure is product- based design as following and sales force size Sale manager Apartment for sale executive Apartment for lease Executive Officetel for lease executive Figure: 4.2: Sale force structure Source: The author HD complex has types of property to sell and lease: Apartment for sale, apartment for lease and Officetel for lease ( office combine with hotel function), With this sale force structure, there will have specific staff who will be responsible to sell or lease each type of real estate It is estimated sales men to be in this structure All of them need to be train in the method of analysis and customer management to comprehend that selling is a sit- step process: Prospecting and qualifying customers, pre- approach (the prospect of company, who is involve in the purchase and its buyers), presentation and demonstration, overcoming objectives, closing and follow-up and maintenance Sales force compensation is designed to encourage their capability in finding customers, doing consultancy with them, and persuading them to give the last purchasing decision Compensation= fixed salary + interest (0.01% revenue)+ expenses allowances (travel, entertaining…) + benefits (pensions, life insurance ) Evaluation will be done after the real MCM performance to see how effective MCM is for launching HD Complex - 322 323 CONCLUSION Since the early of 2012, under the affect of global economic recession, Not only Vietnam economy but also real estate field has faced up with many difficulties Although Vietnam government have been taking many efforts to give different solutions about policies, specific criteria to “save” real estate but up to now Vietnam real estate seems to be unmoved Marketing for real estate in Viet nam is not exception Everyday we update information via internet, we see that many investors use many different ways to attract customers purchasing their department ranged from cheap price apartments to luxurious department, but there are not many successful transactions and in my own opinion, there are many challenges to Vietnam real estate in years later (2013-2014) Therefore solutions about marketing communication mix that are recommended to apply for HD Complex are just for reference In fact, since the early of 2013, Boards of Director in HDC decided to delay more time for HD Complex for fear of unsuccessful sale process in recession period Because the thesis was prepared in a limited period, the mistakes are unavoidable So, the valuable comments and sharing ideas from the teachers, instructors and colleagues are very helpful to make this thesis better - 323 324 LIST OF REFERENCES http://www.grin.com/e-book/97128/real-estate-marketing http://www.grin.com/e-book/real-estate-marketing http://quantritructuyen.com/chi-tiet/ban-ve-marketing-bat-dong-san http://www.vietrees.com/index.php? navi=information&cat_id=38&article_id=14263 http://www.marketingchienluoc.com/trang-chu/thitruong/trongnuoc/6546-cnh-cao-cp-cnh-tranh-khc-lit.html http://hienduc.com.vn/Surface_Overall.aspx? tabid=1&ProjectID=10&&CategoryProjectID=4 Thai Thi Thuy Ha, (2010), Analyzing a marketing communication mix of the Sona company Tran Thu Thuy (2010), Marketing communication mix to launch new products of Gummy bears in Song Thap Company Philip Kotler (2000), Marketing management millennium edition, Prentice Hall Publisher 10 Philip Kotler and Kevin Lane Keller 13th edition, Marketing Management 11 Philip Kotler, Veronica Wong, John Sauders and Gary Armstrong, Principles of Marketing, Prentice Hall 12 http://www.tapchibatdongsanvietnam.vn/Web/Default.aspx? tab=newsdetail&zoneid=108&itemid=450&lang=vi-VN 13 http://vnrea.vn/Web/Default.aspx? tab=newsdetail&zoneid=48&subzone=83&itemid=54&lang=vi-VN 14 http://tapchimarketing.vn/marketing/8-cach-tang-hieu-qua-truyen-thongtrong-su-kien/ - 324 325 15 http://tapchimarketing.vn/marketing/chon-phuong-an-tiep-thi-truyen-thonghay-truyen-thong-moi/ 16 http://vietbao.vn/Van-hoa/Truyen-thong-marketing-tich-hop/40197794/184/ 17 http://www.saovangdatviet.com.vn/index.php? Module=Content&Action=view&id=653&Itemid=135 18 Fairway Joint Stock Property (2010), Feasibility Research Report, Fairway Joint Stock Property, Ha Noi - 325 326 APPENDIX 1 In your opinion could you please say something about the importance of marketing communication mix in launching real estate project? By your deep experience in real estate, can you give your own assessments on tendency of Ha noi real estate in the stage from 2012 to 2013? What is the biggest difficulty that property enterprises now are facing with in their launching campaign? When should a company make a decision to launch its product? What kind of marketing communication mix you will choose to marketing for your product in order to get the biggest response and effectiveness? Whether or not are investing and building a project on hotel, luxurious apartment and office for lease at this time in Ha Noi potential and promising now? - 326 327 APPENDIX Personal information Choose your gender A Male B Female You are now at… year old A.18 to 30 B.30 to 40 C Over 40 Your income now is…… A Under million per B From to 17 millions C Over 15 million per month per month month What kind of vehicles you take everyday to get your office A Motorbike B Private car C Public transports Your house/ apartment you are living now is: A Yours B Not yours but your parents’ C Getting from hiring How much money can you buy a new apartment if you have enough money? A Under 1.2 billion B From 1.2billion to 3.5 C Over 3.5 billion billion What kind of apartment you desire is: A bed room B bedrooms, under 100 C bedrooms over 100 square meter square meter What kind of apartment you need that is suitable to your income: A bed room B bedrooms, C bedrooms under 100 C bedrooms under 100 square square meter over 100 square meter meter 10 If bank support you in buying a new apartment with loan and low interest, are you interested to buy? - 327 328 A Yes B No C Need to consider 11 What kind of mass media are you interested? A Newspapers B Magazine C Television D Radio 12 If our advertisement is showed on television What time should it be so that you can watch it more regularly? A 6:30 am to B 12am to 1:pm C 7:45pm to 9pm D After 10pm am 13 Which channels you usually turn on? A VTV1 B VTV3 C Hanoi TV D Others (Please give specific name) 14 Where you usually look for real estate information? A Broker office - B On Internet C Via mass D Via direct media email E Others… 328 329 APPENDIX Result summary Genders and Ages Question 1: Male: 189 persons; Female: 111 persons Question 2: From 18 to 30 year- old : 78 persons From 30 to 40 year- old : 180 persons Over 40 : 42 persons Question - Survey customer age A B C D E 329 330 number 10 11 12 13 - From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old From 30 to 40 year- old Over 40 Total From 18 to 30 year- old 44 31 80 70 164 22 256 97 34 137 28 27 60 11 11 17 85 24 126 12 21 31 44 23 19 49 31 142 21 194 16 20 38 38 45 88 33 89 12 134 17 62 12 91 17 51 10 78 53 63 10 126 17 24 19 22 54 113 17 184 42 16 26 0 34 38 132 17 64 25 106 54 117 27 198 28 32 62 32 48 58 135 22 215 23 137 24 184 10 36 49 26 96 27 149 16 18 40 31 12 50 18 26 330 331 From 30 to 40 year- old Over 40 Total - 33 29 65 85 134 35 47 20 46 331 332 APPENDIX 4: OBJECTIVES OF FINANCE FROM 2013 TO 2015 Total Area/ Type of property Price revenue Quantity Apartment for sale (m2) Car parking for sale (lot) Oficetel for lease in 46 2013 Rate 2014 Rate Revenue 2013 (%) 2015 Rate Revenue (%) 2015 Revenue 2014 (%) Total revenue from 2013 to 43,729 434 (USD) $2,100 $91,830,900 $25,000 $10,850,000 30% 30% $ 27,549,270 $ 3,255,000 30% 30% $ 27,549,270 $ 3,255,000 40% 40% 2015 $ 36,732,360 $ 91,830,900 $ 4,340,000 $ 10,850,000 43,729 $1,800 $78,712,200 30% $ 23,613,660 30% $ 23,613,660 40% $ 31,484,880 21,864 $420 $9,182,880 $ 78,712,200 years (m2) Service apartment for lease Handover - (usd/m2/year) Car parking for lease 2015 Handover 377 $100 $37,700 - (usd/lot/month) Motorbike parking for 751 $10 lease (usd/lot/month) TOTAL REVENUE FROM 2013 TO 2015 - Remar 2015 Handover 2015 $ 54,417,930 $ 54,417,930 $ 72,557,240 $ 181,393,100 332 ... DEVELOPING MARKETING COMMUNICATION MIX 56 2.1 Overview of marketing communication mix 56 2.1.1 Definition of marketing 56 2.1.2 Marketing mix 58 2.1.3 Marketing communication 61 2.1.4 Marketing communications... 17 23 INTRODUCTION 17 23 CHAPTER 22 23 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 22 23 CHAPTER 50 24 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION. .. 13 30 INTRODUCTION 13 30 CHAPTER 18 30 THERORETICAL FRAMEWORK OF DEVELOPING MARKETING COMMUNICATION MIX 18 30 - CHAPTER 46 30 CURRENT SITUATION OF MARKETING COMMUNICATION MIX IN HIEN DUC CORPORATION