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ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN PHƯƠNG NGA COMPLETING THE SYSTEM OF DISTRIBUTION CHANNEL OF PRE-PAID VINAPHONE SERVICES IN THE PERSONAL CUSTOMER BOARD HOÀN THIỆN HỆ THỐNG KÊNH PHÂN PHỐI SẢN PHẨM DỊCH VỤ VINAPHONE TRẢ TRƯỚC TẠI BAN KHÁCH HÀNG CÁ NHÂN LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN PHƯƠNG NGA COMPLETING THE SYSTEM OF DISTRIBUTION CHANNEL OF PRE-PAID VINAPHONE SERVICES IN THE PERSONAL CUSTOMER BOARD HOÀN THIỆN HỆ THỐNG KÊNH PHÂN PHỐI SẢN PHẨM DỊCH VỤ VINAPHONE TRẢ TRƯỚC TẠI BAN KHÁCH HÀNG CÁ NHÂN Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG HÀ NỘI - 2019 WARNING I, Nguyen Phuong Nga, graduate student of MBA15 course 2017-2019 of the Faculty of HSB, Hanoi National University, thesis "Completing the system of distribution channel of prepaid Vinaphone services in the Personal Customer Departement” by me under the guidance of Dr Tran Huy Phuong I guarantee that all data used, research in this thesis is honest and the result of my own research The data and information in this thesis have not been used to protect a degree, the information cited in the thesis is clearly stated Hanoi, May 30, 2019 The reassurer Nguyen Phuong Nga THANK YOU With deep affection and sincerity that allow me to deeply thank all individuals and collectives who have facilitated the process of studying and researching this thesis In particular, I would like to express my deep gratitude to Dr Tran Huy Phuong, who directly guided and helped me a lot during the research and completion of the thesis I would like to express my gratitude to all HSB faculty members of Hanoi National University for teaching and encouraging and facilitating me during my studies at the University as well as the completion of this thesis I would like to express my sincere thanks to the Board of Directors, colleagues of the Personal Customer Department, the Sales Control Center for facilitating and helping me to complete this thesis Although the author has made great efforts, the thesis is difficult to avoid certain limitations and shortcomings Due to time limits and professional qualifications, the thesis is inevitable We hope to receive the sincere advice and contributions from teachers, teachers, friends and colleagues to make the thesis more complete Once again, thank you! Hanoi, June 20, 2019 Implementer Nguyen Phuong Nga CATEGORY LIST OF ABBREVIATIONS LIST OF TABLES, MODELS, TABLES INTRODUCTION 1 The urgency of the topic Research overview Research objectives Research methods Subjects and scope of research Contents of the thesis CHAPTER 1: OVERVIEW OF DISTRIBUTION CHANNEL 1.1 Distribution channel 1.1.1 Concept 1.1.2 Roles and functions of distribution channels 1.1.3 Distribution channel classification 1.1.4 Distribution channel structure 10 1.1.5 Member of distribution channel 14 1.2 Management of distribution channels 19 1.2.1 Concept of distribution channel management 19 1.2.2 Role of distribution channel management 21 1.2.3 Content of distribution channel management 22 1.3 Factors affecting distribution channels 33 1.3.1 Group of internal factors 33 1.3.2 Group of external factors 34 1.3.3 Evaluating actors participating in the distribution channel system 36 1.4 Criteria for evaluating distribution system system 38 CHAPTER 2: CURRENT SITUATION OF DISTRIBUTION OF PREPAID VINAPHONE SERVICES IN THE PERSONAL CUSTOMER BOARD 41 2.1 Overview of personal customer board 41 2.1.1 The process of formation and development of enterprises 41 2.1.2 Organizational structure of individual customer committee 42 2.1.3 Business results of the Personal Customer Division for the period 2015-2018 45 2.2 Current situation of distribution channel of vinaphone prepaid products at the personal customer department 52 2.2.1 VinaPhone mobile service distribution channel structure 52 2.2.2 Members in the distribution channel of the Personal Customer Department 55 2.2.3 Contribution of distribution channel members 57 2.2.4 Overall assessment of distribution channels 59 2.3 Current situation of distribution channels of vinaphone prepaid products at the personal customer department 60 2.3.1 Select member of distribution channel 60 2.3.2 Encourage members in the channel to work 61 2.7 Commercial discount rates for channels 62 2.3.3 Evaluate channel members 63 2.3.4 The impact of the network transfer campaign to maintain the MNP number to the distribution channel 64 2.4 General evaluation on the organization of distribution channel in the personal customer board 66 2.4.1 Advantages 66 2.4.2 Defect 67 2.4.3 The development of distribution channels of competitors 68 2.4.4 The cause exists in the management of distribution channels 69 CHAPTER 3: SOME SOLUTIONS TO COMPLETE OF DISTRIBUTION CHANNELS OF VINAPHONE PREPAID PRODUCTS AT THE PERSONAL CUSTOMER BOARD 72 3.1 Orientation in business of personal clients 72 3.1.1 Forecast of influencing factors 72 3.1.2 Business goals and orientations of the Personal Customer Department 77 3.2 Some solutions to complete the distribution channel in the personal customer board 78 3.2.1 Complete the model to provide services 78 3.2.2 Create close relationships with members in the distribution channel 78 3.2.3 Adjust incentive policies 80 3.2.4 Promote mixed promotion policies 83 3.2.5 Some other support solutions 85 CONCLUDE 82 REFERENCES 84 Appendix 1: Table of evaluation criteria for quality of Retail points care 86 Appendix 2: Questionnaire survey and assess customers' distribution channels VinaPhone 88 LIST OF ABBREVIATIONS VTTT: Provincial and City Telecommunications VNPOST: Provincial and Municipal Post Offices DVGTGT: Value-added services DVGT: Value service DBL: Retail point P&T: Post and Telecommunications LIST OF TABLES, MODELS, TABLES Figure 1.1: Types of distribution channels Figure 1.4: Direct distribution channel format 13 Figure 1.5: Indirect distribution channel format 13 Figure 1.6: Mixed distribution channel format 14 Figure 1.7: Members of the distribution channel 14 Figure: 1.8 Administration distribution channel 22 Figure 1.9: Manage distribution channels 23 Form 1.10 Select channel members 23 Figure 1: Organizational structure of the Personal Customer Department 44 Table 2.1: Successful call setup rates in recent years 45 Table 2.2: Data on performance of yearly targets of the Personal Customer Department 47 Figure 2.2: Subscription on the Personal Customer Department network for the period 2015-2018 48 Figure 2.3: Revenue from Personal Banking Department for the period 2015-2018 49 Figure 2.4: Market share of the Personal Customer Department compared to the whole Company 51 Figure 2.5: Market share of the Personal Customer Department compared to other networks 51 Figure 2.6: Diagram of distribution channel system at the Personal Customer Department 52 Table 2.4: Statistics of distribution channels of the Personal Customer Department 56 Figure 2.7: Number of stores over the years 57 Table 2.5 Revenue contribution from channels (only for prepaid service revenue) 57 Table 2.8 Discount rate for level agents 62 INTRODUCTION The urgency of the topic Currently, in the telecommunications market in Vietnam, there is a fierce competition between three operators: Vinaphone, Mobiphone, and Viettel; Vinaphone's mobile market share ranks second after Viettel network VinaPhone's main competitor, Viettel, still retains its dominant position with 52% market share Market share of the Personal Customer Department compared to other networks To gain the market share of lost Vinaphone, first of all, it is necessary to perfect the system of distribution channels of Vinaphone prepaid products at the Personal Customer Department Distribution system with the role of linking manufacturers with consumers, it affects profit, price, as well as other benefits for consumers when choosing quality products, Price is suitable for demand Therefore, the distribution channel becomes one of the effective means of competition VinaPhone is one of three mobile service providers with the largest market share in Vietnam, in which the Personal Customer Department manages the northern region Recognizing the role of distribution channels in modern business, in the past time, the Personal Customer Department has paid much attention to this issue To ensure the mission and business of distribution system of VinaPhone services are covered widely, meeting the demand of using social services + Jobs for channel members to believe in the service quality of the Personal Customer Department is just as important as persuading customers The Personal Customer Department needs to show intermediaries that they deliver reputable supplier products Their beliefs will be transmitted to customers and more convincing than advertising messages This can be done through the distribution of journals introducing the potential of the Personal Customer Department, the operation of the Personal Customer Department then organizing a contest to find out the agents to learn about the Board Individual customers + For channel members who not complete sales according to regulations, the Personal Customer Board can consider the difficulties of members and help them continue to be distributors of the Personal Customer Department according to another form (signing agency contract level with VTTT) 3.2.4 Promote mixed promotion policies This can be said to be the most important policy of companies in the field of mobile information when services, distribution channels of companies are increasingly similar, price is equivalent and price policy is planned by the Group 3.2.4.1 Advertisement Advertising in recent years is considered to be highly effective, but in business conditions with strong competition Individual Customer Boards need to implement advertising programs scientifically based on a thorough study of the consumer behavior of the target customer, specifically: - Advertising should emphasize the expansion of the network with the quality of the network, especially the quality of 3G / 4G, reaching 5G These are the leading factors for consumer information network selection In advertising, it is necessary to give specific figures on the total number of base stations and the total number of 3G / 4G stations - Advertising also needs to emphasize new services such as ezCom, online services - Enhancing advertising on mass media, especially television and newspapers, 83 advertising at rush hour and impressive advertising content - Maintain large billboards in places with high traffic density, carry out advertisements on vehicles such as taxis, buses - Need to have a plan to summarize, analyze and evaluate the effectiveness of periodic advertising activities (quarterly and annually) to draw experience to plan for the next period -The Personal Customers Departement also needs to enhance propaganda to create trust among customers, motivate them to buy goods, attracting goods out of the channel because service is a product that is difficult to perceive quality, so the effect of advertising is great VinaPhone has an advantage over other competitors, such as the system of post offices, transaction points of VTTT and VNPOST, but this is also a weakness because many people still think of the bureaucratic image of the time-trading ladies subsidy, an ancient image for a modern service Therefore, the task of advertising in the provincial market must change the perception of customers Individual Customer Boards may use existing advertisements or build new ads if existing ads are not appropriate for certain localities 3.2.4.2 Promotion The Personal Customers Departement needs specific operational plans recommended by the Company such as: - Implementing local promotions for each area, with appropriate policies for each area to achieve the highest results - Organize promotional programs on the occasion of the establishment of the Company, the Personal Customers Departement as well as special occasions and celebrations - Develop promotion programs in important sports occasions of the country, region and the world - Free add some extra services - The Personal Customers Departement can also perform promotions for intermediaries when there is no promotion for customers to keep sales stable 84 However, it is not necessary to organize regular promotions because it will reduce motivation and cause psychological waiting for other promotions The intermediaries, if they know the rules of promotion, can store goods that create fake consumption 4.2.4.3 Participate in social activities Improve the awareness of VinaPhone brand in customers, improve the level of service preference, thereby improve the competitiveness that is implemented in the most effective way through social activities, public relations activities Here are some solutions to further improve this work: - It is necessary to actively participate in more and more exhibition exhibitions about the Company, the Personal Customers Department both in the country and abroad about the services currently being provided and intended to be provided in the near future - Strengthening the image of the Personal Customers Departement through gratitude activities, especially activities launched by mass media - A marketing information system is also essential to serve market activities, customer retention and support other production and business activities This activity may propose the Company to implement or through another intermediary company 3.2.5 Some other support solutions In order for the channel of distribution of high-performance mobile information services, it is possible to combine other tools as follows: 3.2.5.1 Improve network quality and customer service: Quality of service is always stable and guaranteed, the reputation of suppliers will increase the trust and cooperation of intermediaries, increase the customers' love, create good publicity for the service It is recommended to eliminate products that start in the recession phase of the product life cycle if this product complicates management, costing both the Personal and Intermediate Customer Department when it is required Product maintenance in the distribution list (eg Vinadaily 85 product) In the past, continuously expanding the coverage area, installing more new broadcasting stations, especially the 3G / 4G stations, signing the roaming contract with MobiFone network has made the quality of VinaPhone's waves improve and meet All customers have high requirements In the near future, the number of subscribers is close to saturation, along with tightening up prepaid subscribers by the provisions of Circular 04 of the Ministry of Information and Communications, which entices customers to stay online only is network quality and service quality 3.2.5.2 The expiry date of scratch cards High-value scratch cards show the encouragement of consumers to use highvalue cards, but customers still prefer to use a card with a face value of VND 100,000 due to their budget Therefore, it is recommended that the Company issue cards of VND 120,000 or VND 150,000 to replace the first 100,000 cards After a while the customer sees the money and the benefits received between the 150 and 150 cards are much different and they will use the 200 card 3.2.5.3 Enhance the ability of the sales force in supporting agents Sales staff is a force that directly contacts with agents, offers products of the Personal Customer Department, acknowledges orders, on behalf of the Personal Customer Board in monitoring, monitoring and collecting information Feedback, respond to inquiries of agents, propose solutions to support agents The Personal Customer Department should focus on building, coaching and managing this team because they are the agents of managing agents Sales staff must not only be sufficient in quantity but also ensure the quality, understand the policies of the Personal Customer Department, understand the products and services, have the sales skills Individual Customer Committee should consider: - Funding for business staff to participate in short-term training courses to improve necessary knowledge and skills such as time management, communication skills in business, effective negotiation art, problem solving skills Sales staff 86 registered courses expected to participate in the year, specifically the level of course fees After completing the course, the certificate and receipts will be returned to the Personal Customer Department to pay the fee - Recommend the Company to organize a sales force conference throughout the Company every year The company-wide sales force conference should be held at the same time as the Company's holiday so as not to interrupt the business The purpose of the conference is to stimulate business employees to achieve better results in the future, to cultivate and communicate sales and conference situations and experiences that are also a source of supply for the main business staff New books of the Company, new products, plans, information on the competitive situation in the industry - Encourage sales staff to travel long-term in the region to increase opportunities for direct contact, to grasp difficulties in each area 3.2.5.4 Improve the quality of customer care In the current condition, the quality of customer care is a significant competitive advantage among mobile networks Customer care work at the Personal Customer Department is associated with the strategic goal of the Personal Customer Department The Personal Customer Department should consider the following issues to further improve the quality of customer care -Revision of complaint settlement process so that the departments receive feedback from customers and the processing department more smoothly Overcoming customer comments on service quality and satisfying customer requirements for services in the shortest time - It is necessary to have a uniform and smooth direction between VTTT and the Department of Personal Customers in the context of a customer care network with a combination of two units 3.2.5.5 Improve quality and expand the lookup feature on the intranet Currently, the Personal Customer Department has built an internal network (CCBS) so that employees and members of the channel can look up, register and 87 perform customer care tasks, but the quality of the network The net is not good For effective management tools, this system must be upgraded On the other hand, the business team with enough online data to serve the research, evaluation and market orientation needs to expand the research functions such as: - Newly developed subscribers in each area, the structure of subscribers - The number of subscribers does not arise or charge less - Subscribers with two-way locking and risk of leaving the network - Revenue accounts - Sales of card Based on the above data, sales staff will analyze and propose reasonable incentive policies for each stage and each customer 88 CONCLUDE In production and business activities, every business is not only interested in producing products, how much is it going to market, and how to have an promotion program, but also to identify products go to the market through which distribution channels and how to effectively manage that distribution channel In terms of theory, the thesis systematized the basic arguments about distribution channels and distribution channel management such as: nature, distribution channel function, distribution channel role, organized distribution channel and how it works, relationships in channels, channels flows, issues of distribution channel management (selection, encouragement and evaluation of members' activities) and image elements enjoy distribution channels With the summation, research in theory, the topic went to study the issues of distribution channels, channel members, current management policies of the Personal Customer Department and gave some solutions France has practical meaning, it is: - Evaluate the status of management of mobile service distribution channels at the Personal Customer Department - Proposing a number of solutions to contribute to perfecting the management of VinaPhone's distribution system of mobile service products in the Personal Customer Department The important solution is: + Create close relationships with members of the channel + Adjust incentive policies + Promote mixed promotion policies + Some supporting solutions are to improve the ability to contact, support agents of sales force, improve service quality to create a competitive advantage, enlist the cooperation of agents; upgrade the intranet system The author hopes that the contributions can help the Personal Customer Department in completing the management of VinaPhone mobile information 82 service distribution channel of the Personal Customer Department in general and business activities in particular With the framework of the thesis as well as its limited knowledge, although there have been many efforts in the process of synthesizing the basic theoretical issues as well as the application of methods for managing the distribution channels of dissertation Certainly, there will be inevitable limitations and errors, and the problems that are not mentioned in depth or incomplete The author wishes to continue to receive contributions and advice from teachers and readers so that his thesis is supplemented with new research information and knowledge, to have a more comprehensive view of activities dynamic of distribution channel in order to contribute to perfecting the management of itself as well as getting more contributions to the unit they are serving is the Personal Customer Department 83 REFERENCES VIETNAMESE Van Anh (2007), Nine customer loyalty tools [online] Access address: http://www.bwportal.com.vn/?cid=4,4&txtid=2582 Thanh Binh (2006), principles "immutable" with customer service [online] Great access only: http://bwportal.com.vn/?cid=4,4&txtid=1972 Thanh Binh (2007), Building a sales staff [online] Access address: http://bwportal.com.vn/?cid=4,4&txtid=2148 Thanh Binh (2007), How is your customer service assessment? [online] Access address: http://bwportal.com.vn/?cid=4,4&txtid=2602 Assoc Prof Dr Truong Dinh Chien (2015) - Marketing Management Marketing Department - National Economics University Assoc Dr Truong Dinh Chien (2002) - Marketing Manager - National Economics University Publishing House Tran Minh Dao (2006), Basic Marketing Curriculum, Publishing House of National Economics University, Hanoi Huynh Minh Em (2007), MBA at hand - Marketing theme, Young Publishing House, Ho Chi Minh City Doan Thi Thu Ha, Nguyen Thi Ngoc Huyen (2002), Management science curriculum set II Science and Technology Publishing House, Hanoi 10 Assoc Prof Dr Vu Tri Dung (2007) - Public Marketing - National Economics University Publishing House 11 Assoc Prof Dr Ngo Kim Thanh, Associate Prof Dr Le Van Tam (2016) - Curriculum for Strategic Management - National Economics University 12 Philip Kotler (1995), Marketing principles, Statistical Publishing House, Ho Chi Minh City 13 Philip Kotler (2003), Marketing Manager, Hanoi Publishing House 84 14 Ngo Trong Thanh (2006), Marketing in the flat world, Place or Partners? [online] Access address: HTTP://dddn.com.vn 15 Phan Thang (2015), Marketing manual for businesses, Statistics Publishing House, Hanoi 16 Telecommunications economy - Post and Telecommunications Institute of Technology - Post Publishing House 2003 17 Vietnam Post and Telecommunications Corporation - Marketing Telecommunication services in integration and competition - Post Publishing House 2002 ENGLISH Ashok Ranchhod - Marketing Strategies: a twenty-first century approach Dr.PrashantMehta (2016): http://www.slideshare.net/prashantmehta371/distribution-logistics-channelmanagement Jeanne W Ross - Peter Weill & David C.Robertson - Strategic Enterprise Architecture - National Economics University Publishing House Rich Delbridge, Lynda Graton & Gerry Jonhson (2006) - USINESS & MARKETING - Oxford University Press, The Exceptional Manager - Making the Difference WEBSITE Website of Telecommunication Service Company: http://www.vinaphone.com.vn Website of Telecommunications Corporation: https://vnpt.com.vn/ Website Magazine of information technology - telecommunications communication: http://www.echip.com.vn 85 Appendix 1: Table of evaluation criteria for quality of Retail points care No Evaluation criteria Rating score by rating Good Reach Not Reach The presence of Vinaphone brand at Retail Up to 30 points points 1.1 Outside Retail points: A Retail points has a large front panel with other small boards (such as a waving table / selling 15 10 15 10 point notice board Vinaphone / T-table ) placed in a position that helps customers identify 1.2 Inside Retail points: Retail points has display shelves and leaflets with a minimum of 05 types of vinaphone services (not accepting photocophy leaflets, if any of these leaflets are considered unsuccessful), Vinaphone publication Publications, shelves are displayed neatly, clean, beautiful, not covered by publications, widgets of other networks, no expired publications 2.1 Vinaphone sales activity at Retail points Retail points must sell Vinaphone products (such Up to 30 points 20 0 10 as VNK set, scratch card ) 2.2 Point of sale has tools for sales and development 86 of prepaid subscribers The working efficiency of the CSR staff of Up to 40 points VTTT 3.1 BLD staff visit Retail points at least 01 time / 10 10 10 10 week 3.2 Retail points is provided with information about Vinaphone promotion programs at least 01 day before the program takes effect (in the form of promotion announcement, telephone ) 3.3 Employees at retail outlets must master Vinaphone operations, sales policies (discount rates, promotions ) to be able to immediately advise retailers when needed 3.4 Retailer care staff has a professional and polite style when visiting retail points (uniforms, staff cards, enthusiastic attitudes are not reflected by retail points ) The maximum total score 100 Rules of grading and acceptance level according to the quality of work completed: Content Assessment scores in the Rating Degree of month classification completion of care 95=

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