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THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING Major: SERVICES MARKETING Course: CLC_19DMA04 Course code: 2021702052704 ANALYSE MARKETING MIX ACTIVITIES FOR SAVINGS TRAVEL SERVICE OF VIETRAVEL COMPANY Student name ID Nguyễn Thụy Như Khanh 192100546 192100554 192100557 192100558 192100559 192100578 Đỗ Ngọc Thanh Ngân Nguyễn Thị Minh Nguyệt Nguyễn Thị Lan Nhi Trần Thị Xuân Nhi Lê Đức Thành Vinh Ho Chi Minh City, 2021 THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING ANALYSE MARKETING MIX ACTIVITIES FOR SAVINGS TRAVEL SERVICE OF VIETRAVEL COMPANY Student name ID Nguyễn Thụy Như Khanh 192100546 192100554 192100557 192100558 192100559 192100578 Đỗ Ngọc Thanh Ngân Nguyễn Thị Minh Nguyệt Nguyễn Thị Lan Nhi Trần Thị Xuân Nhi Lê Đức Thành Vinh Major: SERVICES MARKETING Course: CLC_19DMA04 Course code: 2021702052704 Ho Chi Minh City, 2021 LIST OF FIGURE Figure 1.1: Vietravel's revenue from 2015 to 2020 Figure 1.2: Number of visitors of Vietravel from 2015 to 2020 .2 Figure 2.1: Impact of Covid–19 on the tourism industry Figure 2.2: International visitors to Vietnam in the period 2016 – 2020 Figure 2.3: McKinsey's Vietnam Tourism Recovery Model .6 Figure 3.1: Positioning map 19 Figure 4.1: Uniform of Vietravvel 30 Figure 4.2: Logo of Vietravel 30 Figure 4.3: Blueprinting a full–service experience 32 Figure 4.4: (Continued) 33 Figure 4.5: (Continued) 33 Figure 4.6: Setting standards and targets for customer service processes 36 Figure 4.7: Servicescape for customer 37 Figure 4.8: Star Rating Vietravel Guide 2019 40 TABLE OF CONTENTS SECTION INTRODUCTION 1.1 VIETRAVEL COMPANY 1.1.1 Overview 1.1.2 The process of formation and development 1.1.3 Vision 1.1.4 Mission 1.1.5 Business philosophy 1.2 OBJECTIVES OF THE STUDY .4 SECTION MARKET & COMPETITORS ANALYSIS 2.1 CURRENT MARKET SITUATION 2.1.1 Growth rate of tourism industry in Vietnam 2.1.2 Trends in Vietnam's tourism industry in recent years .6 2.1.2.1 Changing travel habits 2.1.2.2 Contactless technology to inspire traveler confidence 2.1.2.3 The increase of domestic tourism 2.1.2.4 More interest in “green” tourism 2.1.3 Scale of Vietnam's tourism industry 2.2 INTERNAL ANALYSIS 10 2.2.1 Resources 10 2.2.1.1 Physical resources 10 2.2.1.2 Human resources 11 2.2.2 Reputation .11 2.2.3 Constraints .11 2.2.4 Values 12 2.3 COMPETITORS ANALYSIS 12 2.3.1 SaiGonTourist Travel Service MTV Limited Liability Company 12 2.3.2 Fiditour Joint Stock Company 13 2.3.3 Ben Thanh Tourism Service Joint Stock Company 14 SECTION TARGET CUSTOMERS ANALYSIS & POSITIONING STRATEGY 16 3.1 SEGMENTATION 16 3.2 TARGET MARKET 18 3.3 POSITIONING STRATEGY 18 SECTION MARKETING MIX STRATEGIES 20 4.1 SERVICES PRODUCT STRATEGY 20 4.1.1 Core product 20 4.1.2 Supplementary services 20 4.1.2.1 Facilitating services 20 4.1.2.2 Enhancing services .21 4.2 PRICING STRATEGY 22 4.3 DISTRIBUTION STRATEGY 23 4.4 PROMOTION STRATEGY 24 4.4.1 Target Audience of Vietravel 24 4.4.2 Communication Objectives 24 4.4.3 Plan 25 4.4.3.1 Integrated Marketing Communications 25 4.4.3.2 Corporate Design .29 4.5 SERVICE PROCESSES MANAGEMENT 31 4.6 PHYSICAL EVIDENCES MANAGEMENT 36 4.7 PEOPLE MANAGEMENT .37 4.7.1 Frontline staff of Vietravel 37 4.7.1.1 The team advises travel packages such as sales tours 38 4.7.1.2 Tour guides 38 4.7.1.3 Tour operators 38 4.7.2 Human resources manager 38 4.7.2.1 Wonderful working environment .38 4.7.2.2 Remuneration and Benefits 39 SECTION EVALUATION AND RECOMMENDATION 41 5.1 SERVICES PRODUCT STRATEGY 41 5.2 PRICING STRATEGY 41 5.3 DISTRIBUTION STRATEGY 42 5.4 PROMOTION STRATEGY 43 5.5 SERVICE PROCESSES MANAGEMENT 44 5.6 PHYSICAL EVIDENCES MANAGEMENT 45 5.7 PEOPLE MANAGEMENT .46 CONCLUSION .49 REFERENCES A SECTION INTRODUCTION 1.1 VIETRAVEL COMPANY 1.1.1 Overview Vietravel is one of the first tour operators in Vietnam specializing in providing the most professional and package tour services, established on December 20, 1995 With the aim of developing on the basis of integrating with the expanding economy, potential development opportunities as well as facing fierce competition to capture market share in the tourism business market In addition to tourism services such as organizing international travel tours at home and abroad, travel transportation, Vietravel is also a unit serving the development of traffic and transportation of the country as air ticket agent for Vietnam Airlines and other domestic and foreign airlines, shipping agents and brokers Vietravel also undertakes the functions of labor export, accommodation services, meals and souvenirs, etc During 26 years of operation, Vietnam Travel and Marketing transports Company has built a branch system in big cities such as: Hanoi, Da Nang, Quy Nhon, Dong Nai, Hue and developed the system through international representative offices of countries such as France, Thailand, Singapore, Japan, etc Thanks to the development of direction and determination of business strategies such as: diversifying products, markets and business fields The company has constantly developed many domestic and international travel programs In addition, Vietravel always focuses on improving the quality of tourism services with a stable and extensive service supply system with hundreds of domestic and foreign partners including airlines, hotels, restaurants and transportation systems, along with improving service quality, Vietravel also focuses on improving labor productivity by investing, renovating facilities and equipment, opening professional training courses activities, etc Thanks to its own trust and prestige, Vietravel has become an official member of international tourism associations such as JATA (Japan), PATA (Asia – Pacific), ASTA (USA), USTOA (USA) Unit: 1,000,000 VND Net Revenue 2015 4355269 2016 5263507 2017 6184614 2018 7233167 2019 2020 7431875 1522670 10000002000000300000040000005000000600000070000008000000 Figure 1.1: Vietravel's revenue from 2015 to 2020 Unit: turn/person Figure 1.2: Number of visitors of Vietravel from 2015 to 2020 Vietravel retain customers existing customers and attract new customers through price competition with competitors in the market Weaknesses Tourism was heavily affected after the epidemic, but continuing to keep the same price form is still a difficult problem for customers in spending plans Suggestions There should be a newer policy of cooperation with price partners, taking advantage of incentives in the state's industry, thereby minimizing costs to promote the sale of goods and services, to be able to lower the cost of products, in order to attract and attract more people customers during and after the epidemic 5.3 DISTRIBUTION STRATEGY Strengths Vietravel is a pioneer in applying information technology: online tour sales via a website: www.travel.com.vn, a wide network of activities in the country and in Southeast Asia Many branches across the country are convenient in approaching customers Weaknesses Vietravel does not have a strategy to reach target customers suitable for the company Suggestions To develop and expand business networks of hardware (branch and representative office systems) and software (sales via website), especially in the current period when the Covid–19 epidemic is still going on, Vietravel should focus more on the form of selling tours online Keep a good relationship with restaurants and hotels to spread the word and encourage customers to come to Vietravel Participating in specialized exhibitions and seminars to constantly seek and create more relationships with more local distribution channels Developing relationships between suppliers due to long–term cooperation with airlines and train tickets, the company always has advantages in this respect 43 5.4 PROMOTION STRATEGY Strengths IMC ties together and reinforces all communications to deliver a strong brand identity Communications in different media should form part of a single, overall message about the service of Vietravel Policies and remuneration for members of Vietravel, attractive affiliate partners are diversified and regular The uniform is ao dai with Vietnamese culture Weaknesses Online media channels have not really attracted customers Because it has not focused on online channels such as social networks, online newspapers, etc It mainly only publishes travel news and incentive programs, but has not yet promoted the Vietravel brand to promote customer demand through online channels The content of the programs has not been fully conveyed to customers, still using the old ways of running ads with boring, old content that lacks trending The direct connection between the company and the customer is still low The methods of actively seeking new customers have not been applied, mainly customers who come to Vietravel when they have new demands or are old customers who have used the service There has not been a clear difference in advertising programs for tourism services between Vietravel and competitors, and there is no highlight that makes an impression on customer's minds Suggestions Focus more on customer care channels by implementing a clear and extensive plan to address customer concerns or contact customers directly if they are struggling with issues of Vietravel as soon as possible In addition, apply means such as email to monitor the evaluation and interest of customers for the brand, so that Vietravel does not lose its potential customers Promote Vietravel's information access process on online media channels with a promotion program for savings tours that only apply to buying products or services online – the percentage reduction depends on the strategy that Vietravel offers At the same time, 44 cooperate with reputable banking enterprises to increase the credibility of the brand image In addition, Vietravel needs to invest in renovating its own website, promoting the exploitation of digital technology and an online tour selling system, creating conditions for consumers to easily use and comfortably experience products and services of Vietravel Contacting the actual situation, the Covid–19 pandemic is complicated, advertising or communication will cause great loss and waste of costs when they seem to have no need for the product travel services because of the fear of contracting the Covid–19 epidemic Therefore, low–cost communication activities to serve the purpose of not letting the company reduce the level of brand recognition for customers during the distance is the best solution that Vietravel can at this juncture Proposing a number of communication activities for Vietravel during the Covid–19 pandemic: Promote posts about domestic travel, in provinces with a safe level of infection Conversely, minimize communication about travel in high–risk provinces Promote people's demand for domestic tourism by improving the quality of tourism products and destinations, and at the same time, it is necessary to apply service discount programs (as some places have done) to stimulate tourism bridge In terms of prices, in the short term, standard instruments such as reductions in taxes, fees and charges can be used – although this reduction may reduce revenue It is necessary to better understand the development of this field by collecting data about Covid–19 with high frequency on the brand's official fanpage or the official website of Vietravel Focus on building branding and promotion strategies, ensuring service businesses have the capacity to provide their services in the new development environment 5.5 SERVICE PROCESSES MANAGEMENT Strengths Blueprinting distinguishes between “frontstage” and “backstage” of the service process Clarify interactions and support by backstage activities and systems Identify potential fail points; take preventive measures; prepare contingency Pinpoint stages where customers commonly have to wait 45 Weaknesses Some processes are proposed but not actually implemented The process still has some failure points Faced with the Covid–19 epidemic situation, new improvements to service processes are needed to meet the needs of the "new normal" of the tourist Suggestions Improving reliability of processes through fail – proofing: Vietravel develop and implement the Mistake Proofing device or method into the process Always make sure that operators on the line are aware of the changes made and how it will benefit them Use the knowledge gained through the tourist's feedback to make improvements in similar processes Continue to review the processes and look for ways to prevent errors Setting service standards and targets: Standards for services can help Vietravel's service providers and their customers, by raising the quality of the services provided This can be in terms of safety or improved communication between Vietravel and their customer Service standards can also give tourists more confidence, reduce costs and open up markets for firms Vietravel should use AI to improve customer satisfaction in travel and tourism: Guests expect quick, convenient, and personal resolutions on their channel of choice Chatbot statistics can help prove that customer service is a core driver for overall customer satisfaction, loyalty and future spend on travel and tourism AI travel chatbots can resolve over 50% of pre–, day–of, and post–travel customer service issues in less than one second Exceptional customer process care is how Vietravel stand out and build brand love Traveling is complex – logistically and emotionally Issues happen and questions arise Hence, travelers have very high expectations for customer service AI customer support can delight customers with immediate resolutions while supercharging human agent productivity Vietravel will enjoy enormous cost savings by optimizing human agent time and reducing agent and customer churn 5.6 PHYSICAL EVIDENCES MANAGEMENT Strengths 46 Modern facilities, enthusiastic and friendly staff, wide coverage at home and abroad, diverse products and services, Vietravel constantly improves to be able to bring experiences actual customer satisfaction at every stage Weaknesses Vietravel has not yet made a complete difference compared to its competitors Suggestions Promote the establishment of Physical Evidence through the design steps of facilities such as layout, music, scents, etc and other equipment around the set messages and objectives and at the same time appropriate In line with the context of Covid – 19 Deploying and building facilities according to the safety criteria set by the Ministry of Health and the General Department of Tourism, as well as implementing the work to ensure the highest level of safety for tourists guests when joining tours with Vietravel Emphasis on customer factors, especially target customers by conducting extensive surveys to find the desire and change that customers need at Vietravel deployment 5.7 PEOPLE MANAGEMENT Strengths Vietravel has done a great job in promoting the People element in its marketing mix strategy Vietravel has trained and standardized excellent, professional and professional staff to serve customers conscientiously and effectively, with special attention to training energetic and professional tour guides Along with the professional training for staff, the issue of ideological stability, taking care of employees' lives is also highly appreciated so far Weaknesses Although there are many articles praising Vietravel's quality and staff in customer care service, there are also articles that have criticized Vietravel's service quality Typically, the article "Chuyen du lich hanh xac cua Vietravel" (Hai, 2018), about the fact that the passengers even had to lie in the hallway on the journey from Germany to Italy This is partly due to Vietravel leaders, but also partly the fault of tour operators and tour guides, who have not been sensitive in handling the situation They did not properly handle the unexpected and reluctant situation that occurred, making the passengers unhappy 47 Suggestions It is necessary to detect capable people and arrange them in jobs that suit their forte Then their working efficiency will be the highest, bringing great benefits to the company Recruiting directors, managers, department heads, etc need to be done scientifically based on their capacity and experience Because these are the brains who control all activities that greatly affect the development of the company There should be a human resources department dedicated to managing the company's human resources to be able to select and use human resources most effectively Set up a unified working process and regulations for all employees to follow, and at the same time, it is necessary to encourage employees to give their opinions together for better business development Create good conditions for close connection and quickly if necessary between employees of departments by: increasing internal phone numbers, using quick and effective communication methods such as: Skype online or creating online chat rooms via internal email, etc Use reward and punishment measures to stimulate employees to work more effectively Last but not least, with the collaborators to guide tourists, in addition to professional qualifications, the most important thing is to have professional ethics, love for the job, understand customer psychology and know how to behave skillfully The company needs to have its own coaching staff to minimize the risk from unqualified collaborators In particular, the company needs to regularly train and check the quality of the guides every months to improve the professional knowledge and professional ethics of the guide team In addition, the fact that during the Covid–19 epidemic period, the company should focus on the health of employees Arrange many tools to prevent Covid–19 infection at the company such as temperature monitors, hand sanitizer, masks, etc If possible, the company should sponsor the Vaccine for the head staff Employees with symptoms must notify their immediate supervisor and stay at home Asymptomatic or pre–symptomatic employees (still not showing symptoms) but who have tested positive for SARS–CoV–2 infection should also isolate and follow CDC recommended steps Employees may not return to work until the criteria for ending home isolation have been met, in consultation with a healthcare provider 48 Educate employees on steps they can take to protect themselves at work and at home Encourage employees to follow new policies or procedures regarding illness, cleaning and disinfection, and meeting and business travel matters Implement paid and unpunished sick leave and support policies and practices as part of a comprehensive approach to preventing and reducing employee transmission Some employees may be able to afford leave under the Family Sick Leave Act (FMLA) external icon or the Families Coronavirus First Response Actexternal icon 49 CONCLUSION After 26 years of operation, Vietravel has achieved certain successes and is a leading enterprise in the Vietnamese tourism market The essay "Analyse Marketing Mix activities (7Ps) for Savings Travel Service of Vietravel" has partly clarified the Marketing – Mix (7Ps) strategies of the company and proposed a reasonable solution to the current situation based on the current situation theories learned in class Due to the ever–changing business environment, with many fluctuations such as the Covid–19 pandemic, Vietravel should apply technology to the service, make additional changes to suit the context so that Saving Travel Service can maintain its stability position in the spearhead economic sector of Vietnam 50 REFERENCES Anh, L T (2020, April 09) Du lịch Việt Nam hồi phục sau khủng hoảng nào? 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