Research Rationale
Marketing is an important area of management when managing a company
Marketing activities are essential for companies to identify and deliver the right products and services to their customers Recognizing the significance of marketing, businesses allocate substantial budgets to these efforts A prime example is Vinamilk, a leading dairy company that exemplifies effective marketing strategies in the industry.
Vietnam In the first 9 months in 2015 Vinamilk spend 1,235 billion VND on advertising in 4,500 billion VND of selling, general and administrative expense
(SG&A) On average, each day Vinamilk spend about 4.57 billion VND on advertising
(source: cafef – [29]) Another example is a Tan Hiep Phat a big company in beverage spends 4.9 million USD on advertising even from year 2004.[27]
While many companies invest heavily in marketing, not all achieve success Effective marketing relies on a well-defined strategy, which is a crucial component of a company's overall functional strategy.
Dr Pepper's advertisement campaign, titled "Not for Women," aimed to boost male consumption of their soft drink; however, this approach inadvertently alienated female customers The campaign's focus on excluding women ultimately led to a significant misstep in their marketing strategy.
Segmentation, when company want to keep both the gender male and female the advertisement remove female customer
Marketing is crucial for all companies, even those not directly selling products In Vietnam's competitive e-commerce landscape, recent closures of well-invested companies like deca.vn and lingo.vn highlight the challenges faced by new entrants To succeed, newcomers must develop effective entrance strategies, as evidenced by the success of established platforms such as adayroi.com (Vin-Ecom), tiki.vn, and chotot.vn A solid marketing approach is essential for any new company aiming to thrive in this dynamic market.
VNPay is a leading company in payment industry of Vietnam; the company has provided services to bank on SMS banking VNPay created VNShop in 2014 join the
Ecommerce market when it's very competitive The Ecommerce market in Vietnam is
A well-defined marketing strategy is essential for success, as it clarifies ongoing marketing activities and evaluates their effectiveness Many projects, despite substantial funding, have failed due to a lack of strategic direction, highlighting the need for a comprehensive approach For instance, competitive ventures like Deca and Lingo.vn serve as cautionary tales of how insufficient planning can hinder success.
To succeed in a competitive market, VNShop must differentiate itself from existing companies by offering unique products or services A well-defined marketing strategy is crucial for the company to effectively segment the market and target the right audience, ensuring its success and reducing competition.
Leveraging its position as one of Vietnam's largest payment providers, VNShop has effectively segmented the market into two groups: customers with bank accounts and those without mobile banking The company prioritizes delivering services to customers who are already utilizing mobile banking, enhancing their user experience and expanding their reach in the digital payment landscape.
Customers who prefer online shopping typically utilize mobile banking, while those without mobile banking services tend to avoid e-commerce.
VNShop's initial strategy focuses on a narrow market segment, specifically targeting users of internet banking applications Furthermore, the platform's advertising and promotion efforts are minimal, with only a brief description available on the Agribank and VNPay websites, and a lack of investment in marketing initiatives As a result, the application has a low customer base and limited public awareness.
VNShop need a good marketing strategy to improve this, and this thesis will aim at building a marketing strategy for VNShop
This thesis has two research questions
1 What is the strategic marketing plan and how to build it?
2 How can the strategic marketing plan be built for the VNSHOP?
Aims of research
Main objective of the thesis:
To build marketing strategy for the company
Along with above, the other objectives of this thesis are:
Research and summarize the theory on marketing strategy, the process of building a marketing strategy
Comment [A2]: What are the current marketing activities at Vnshop, is it effective? why does it require marketing strategy
Perform the external and internal analysis Propose marketing strategy for
VNShop, assess and select marketing strategy for VNShop.
Objects of research
Object of this thesis is the marketing strategy for VNShop.
Scope of research
The scope of this thesis is the marketing strategy for VNShop; this strategy will be for VNShop mobile applicationfor the time duration 2017 – 2020.
Research methodology
There are 2 research methods: qualitative and quantitative
Qualitative Research is an exploratory approach aimed at understanding the underlying reasons, opinions, and motivations behind a phenomenon It offers valuable insights that can inform problem-solving and help formulate hypotheses for subsequent quantitative studies By uncovering trends in thought and opinion, qualitative research delves deeper into issues at hand Data collection methods in this realm often involve unstructured or semi-structured techniques, such as focus groups, individual interviews, and participatory observations Typically, qualitative research utilizes a small sample size, with respondents selected to meet specific criteria.
Quantitative research aims to quantify problems by generating numerical data that can be analyzed statistically It focuses on measuring attitudes, opinions, behaviors, and other defined variables to generalize findings from a larger population sample By utilizing structured data collection methods, quantitative research formulates facts and uncovers patterns, making it a more systematic approach compared to qualitative research methods.
Quantitative data collection methods include various forms of surveys – online surveys, paper surveys, face-to-face interviews, telephone interviews, longitudinal studies, online polls, and systematic observations
In this thesis I will use both qualitative and quantitative research methods
Qualitative method will be used to explore and to understand the current company situation,then a quantitative research to measure the current brand aware level of the company
To perform this research and build a marketing strategy for VNShopI follow the following process:
Review the theoretical background about strategy and marketing strategy
Interview with company managers to understand about the product and marketing situation
Conduct a survey to know how customers currently know about the product
Analyze assess current situation and build the marketing strategy for
The data in the thesis are obtained from primary and secondary sources
Primary data refers to information obtained directly from original sources, including experiments, surveys, interviews, and focus groups conducted by researchers In contrast, secondary data consists of information gathered from pre-existing sources, such as publications, databases, and internal records.
Interview and questionnaire are the tools to get the primary data Data about
My research on ecommerce and domain knowledge is based on interviews with industry experts, including Mr Thinh, the former technology manager of Vnpay, and Mr Bui Dinh, a specialist in IT and trading.
Thi, expert in trading and forex of companyMiyatsu Vietnam Mr Nguyen Huu
Nghi, the founder and CEO of IFSC Company, has utilized insights from a published study on the Vietnamese industry, drawing on valuable data from secondary sources to inform strategic decisions.
This research involves a survey utilizing questionnaires to assess the current standing of the company in the e-commerce sector, specifically how potential customers perceive VNShop in comparison to competitors such as adayroi.com, tiki.vn, sendo.vn, and lazada.com The questionnaire includes fundamental demographic questions regarding gender and age, as well as inquiries about how customers rank VNShop against other e-commerce platforms.
Comment [A3]: Mới thấy anh làm phỏng vấn với
The survey was conducted with 80 participants to gather insights for developing a marketing strategy It emphasizes the importance of consulting with industry experts and managers, highlighting the need for diverse perspectives in the decision-making process.
Average point for VNShop (mean value): 1.1
This survey aims to estimate the average ranking value provided by users To achieve a confidence level of 90% with a margin of error of 0.1, it is essential to determine an appropriate sample size, denoted as n The calculation involves using the z value corresponding to the desired confidence level (1-alpha), specifically z (alpha/2).
E: Error, where we expect value is in interval (1-E, 1+E)
In this case, alpha = 0.1, z(0.05) = 1.649 E=0.01, use above formula we have n = (1.649*1.04/0.1)^2 = 296.64 = 297
But due to limited time author have not yet been able to get to this sample, this is a limit of this research
In this research, a sample size of nP was initially used, resulting in a ranking error of 0.243 at a 90% confidence level To improve accuracy, the sample size was increased, which reduced the error to 0.192, deemed sufficient for the study's objectives Consequently, we decided to collect a total of 80 samples.
Structure of the thesis
The thesis is contains 4 chapters
Introduction- Introduce the research, summary about the importance of marketing and why we need to make a marketing strategy for VNShop
Chapter 1– Theoretical background: This chapter covers the theoretical background of the research About strategy, marketing and marketing strategy
Chapter 2–Current situation of the marketing activities at VNShop
Chapter 3- Building marketing strategy for VNShop
Chapter 4 – Conclusion and suggestion for future research
Comment [A4]: Tại sao là 50 người, và 50 người này anh chọn lựa thế nào Con số 50 là khá nhỏ, thường thì phải 120 nếu anh có nhiều khách hàng tiềm năng.
THEORETICAL BACKGROUND
Strategy
The term "strategy" is commonly referenced in business, warfare, and everyday life, yet its definition can differ based on context At its core, strategy can be understood as a comprehensive plan designed to achieve specific goals amidst uncertainty Typically, strategy encompasses the establishment of long-term objectives and the actions required to attain those goals.
A well-defined strategy is essential for achieving goals, drawing inspiration from military practices where competition is fierce and outcomes are critical In such high-stakes environments, every resource is strategically mobilized to ensure success, emphasizing the importance of careful planning and execution in any competitive endeavor.
Strategy, originally derived from military terminology, has various definitions Military strategist Liddell Hart, in his 1967 book "Strategy," provides a foundational understanding of the term, emphasizing its significance in planning and executing operations effectively.
Strategy can be defined as the art of distributing and applying resources to achieve specific objectives By removing the term "military," this definition becomes applicable to the business context, emphasizing the importance of resource allocation in reaching desired outcomes.
To understand about strategy in business meaning, now we look at some definition in business context
Max McKeown (2011) define that “strategy is about shaping the future”
Henry Mintzberg from McGill University defines strategy as ―a pattern in a stream of decisions‖ Henry Mintzberg described five definitions of strategy in 1998:
Strategy as plan – a directed course of action to achieve an intended set of goals; similar to the strategic planning concept
Strategy as a pattern refers to a consistent sequence of past behaviors that develop over time, rather than being explicitly planned or intended When the actual pattern diverges from the original intent, it is identified as an emergent strategy.
Strategy as position – locating brands, products, or companies within the market, based on the conceptual framework of consumers or other stakeholders; a strategy determined primarily by factors outside the firm;
Strategy as ploy – a specific maneuver intended to outwit a competitor; and
Strategy as perspective – executing strategy based on a "theory of the business" or natural extension of the mindset or ideological perspective of the organization
In the book, The Concept of Corporate Strategy(Kenneth Andrews, 1980)
Kenneth defined strategy as below:
Corporate strategy encompasses the decision-making framework within a company that outlines its objectives, goals, and policies It establishes the business scope the company aims to pursue, defines its intended organizational structure, and articulates the economic and social contributions it seeks to make to shareholders, employees, customers, and communities.
Gerry Johnson, Kevan Scholes, Richard Whittingon in the book Exploring
Corporate strategy, as defined in the 7th edition of the 2005 publication, refers to the long-term direction and scope of an organization It aims to secure a competitive advantage in a dynamic environment by effectively configuring resources and competencies to meet stakeholder expectations.
Michael Porteris a well-known author in the topics of competitive strategy
Porter argues that competitive strategy is about doing activities different than competitors In the article ―What is strategy‖ on Havard Business Review
(December 1996) he defined strategy as:
“The essence of strategy is choosing to perform activities differently than rivals do”
Porter emphasizes that strategy revolves around establishing a competitive position by distinguishing oneself from competitors, ultimately enhancing customer perception This involves creating value through a unique combination of activities that set a business apart in the marketplace.
In his 1980 work, "Competitive Strategy," Michael Porter defines competitive strategy as the integration of a firm's goals and the policies employed to achieve them This definition underscores the importance of a company's competitive positioning and the strategic approaches necessary to attain it.
Strategy can be defined as a long-term vision or position that a company aims to achieve, along with the methods employed to reach that vision In the following section, we will explore the various types and levels of strategy.
1.1.2 Types and levels of strategy
Strategic management encompasses three key levels: corporate-level strategy, business-unit strategy, and functional/operational strategies Corporate strategy focuses on determining which businesses the firm will pursue, while business strategy outlines how the company competes within its chosen market Functional strategy pertains to the specific approaches employed by individual departments, such as operations, marketing, and human resources In the following sections, we will delve deeper into each of these strategic levels.
Corporate strategy defines what business or businesses the firm is in or should be in, how each business should be conducted, and how it relates to society
Corporate strategies encompass the overarching plans for a company and its various business units, operating at the highest organizational levels These strategies typically have a long-term perspective and aim to define the business areas in which the corporation intends to engage Additionally, they involve the acquisition and allocation of resources among these business units to ensure effective operation and growth.
Kinh Do (stock ticker: KDC), listed on the HOSE, operates in both the food industry and real estate The company's corporate strategy will determine its involvement in real estate, as well as whether to maintain or divest its food business.
There are varieties of corporate strategy but Wheelen and Hunger (2004) divide corporate strategy into 3 big categories:
- Growth strategy: This is to expand company activity
- Stability strategy: Keep the current company operating business and domain
- Retrenchment strategy: Reduce company level of activity
Comment [A5]: Làm rõ hơn các chiến lược cấp coongty như chiến lược tăng trưởng, chiến lược ổn định, chiến lược thoái lui…
A growth strategy focuses on expanding a company's operations to boost revenue, which may involve launching new businesses or entering new markets Strategies such as mergers and acquisitions are also key components of this approach, as highlighted by Norberto A Orcullo (2007).
Strategic Alliance fall in to this group of strategy
Stability strategy: Keep the current company operating business and domain To make this strategy means that company will keep current activity level
It also mean that the company may not find new investment opportunities to grow
Retrenchment strategy: Reduce company level of activity In this category, the company will reduce activity level Some of strategy of this type is: Sell out or de-investment, Outsourcing…
A business strategy outlines how individual businesses aim to fulfill their mission within a specific industry, focusing on each strategic business unit (SBU) or strategic planning unit (SPU) This strategy addresses two key aspects: first, it defines the scope and boundaries of each business while establishing operational connections with corporate strategy; second, it identifies how the business unit will attain and sustain a competitive advantage in its market.
Marketing strategy
Marketing in modern business is very important Even that we need other function like HR, finance with a poor marketing the company will hardly succeed
In a narrow sense, people usually only understand marketing as ―advertising‖ but if we need to understand marketing properly to set a good background for the following chapters
There are many definitions of marketing, below author will cite some famous one and then analyze it Philip Kotler, Kevin Lane Keller 2012 Marketing
Management, defined marketing as below:
“Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”
The following definition is from AMA (American Marketing Association)
―Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.‖
Marketing encompasses more than just communication; it fundamentally involves identifying customer needs and subsequently creating and delivering value to meet the demands of a target market, as highlighted by Kotler This comprehensive understanding of marketing emphasizes the importance of aligning products and services with consumer expectations to ensure satisfaction.
In section 1.2.1 we have discussed the definition of marketing, marketing can be strategic or tactical.At strategic level we normally emphasize on customer segmentation, targeting and positioning
Comment [A8]: Font chữ thống nhất với toàn bộ bài (Phuong 30.10)
In this thesis we concentrate on building a marketing strategy, so here we will define what marketing strategy is In section 1.3 we will discuss the process of building a marketing strategy
In the book Marketing Management (Trương Đình Chiến, 2013: Quản trị marketing: 14) the author define marketing strategy as below:
“Marketing strategy is collection of principles and directions that lead and direct the marketing activities of enterprise in a specified duration”
Phd Don Sexton 2010 in the book ―Marketing 101: How to Use the Most
Powerful Ideas in Marketing to Get More Customers‖ : 15 has defined marketing strategy as below:
“A marketing strategy is a blueprint for how you will allocate your resources to archive your business objectives”
In this book Sexton also point out that a product / market strategy should include the following component:
- Target market: Specify the target customer segment
- Business objectives:This specifies objectives in term of financial such as revenues, profits or quantity of unit sold or market shares
Effective positioning is crucial for your product or service, focusing on one or two key benefits that resonate with customers For instance, highlighting that your application offers the fastest delivery time can significantly enhance its appeal and attract potential users.
Programs refer to the specific actions taken to execute a marketing strategy, often referred to as tactics or the marketing mix These actions encompass various activities, including advertising, personal selling, pricing, and distribution, all aimed at attracting more customers and enhancing overall marketing effectiveness.
Don Sexton also emphasizes that target market and positioning are the most important things in a marketing strategy
Marketing strategy must align with organization strategy The marketing manager of the company must set marketing objectives and build strategy that aligns with organization strategy
John Ensor, Graeme Drummond has depicted this in the book ―Strategic
Marketing Planning and Control‖ as following
Figure 1.1 Corporate and marketing planning
(Source: John Ensor, Graeme Drummond, Strategic Marketing Planning and
The company is perceived as operating under a singular business model, where the functional strategy is closely aligned with the corporate strategy, eliminating the need for a separate business strategy as discussed in section 1.1.2 of this thesis.
A marketing strategy serves as a vital functional strategy that aligns with both business and corporate strategies, enabling companies to enhance their market share and establish a strategic position within the market Key components of an effective marketing strategy include Segmentation, Targeting, and Positioning, which collectively help businesses identify and reach their desired audience.
No single product or service can meet the diverse needs of all customers, as individual preferences vary significantly To enhance customer satisfaction, companies should categorize their clientele into groups with similar responses to products and services, a process known as segmentation Each categorized group is referred to as a segment Subsequently, the company selects one or two segments to focus on, a strategy known as targeting.
Segmentation splits customers into groups with similar needs and wants to best utilize a firm's finite resources through buyer based marketing Segmentation
Targeting and positioning are crucial elements of effective marketing Each customer segment has unique product needs, which means a one-size-fits-all approach is ineffective Instead, businesses should tailor specific product offerings to meet the distinct requirements of each customer group.
There are many reasons why we do segmentation, some of those reason are listed in below (Doyle, 1994) includes:
- To meet consumer needs precisely
As we have described the importance of segmentation, so how we segment the market is very important
The segmentation process involves establishing criteria by which groupsof consumers with similar needs can be identified These criteria have toestablish consumer groups that have the following characteristics
● The consumers in the segment respond in the same way to a particularmarketing mix
● The consumers within the segment have to react in a clearly differentway from other groups of consumers to the marketing mix on offer
Comment [A9]: Mục này không thấy ăn nhập gì với mạch của luận văn Anh đang định nghĩa chiến lược marketing Thiếu logic
Comment [A10]: Thêm mục cho dễ theo dõi ví dụ
● The group has to be large enough to provide the return on investmentnecessary to the organization
● The criteria used to identify the segment have to be operational
After the market is divided into segments, the company will evaluate the attractiveness of each segment and select the target market The criteria to evaluate each segment may include
Targeting involves selecting a specific market segment to serve, which consists of the customers a company aims to reach with its products and services This targeted approach is crucial for effective marketing efforts and is a foundational step in developing a marketing plan A target market can be defined by various factors, including geography, buying power, demographics, and psychographics For more detailed information on market segmentation, refer to section 2.2.3 of this thesis.
Positioning refers to the place that a brand occupies in the mind of the customer and how it is distinguished from products from competitors In order to
To effectively position products or brands, companies should highlight their unique features, such as their purpose and functionality, while also crafting a suitable image—whether it be budget-friendly or premium, popular or luxurious, entry-level or high-end—through a strategic marketing mix Once a brand has established a strong market position, repositioning it becomes a challenging task.
Positioning is a crucial marketing strategy that defines the unique space a brand occupies in the minds of its target audience It involves shaping perceptions that influence how consumers view a company, product, or service compared to its competitors Effective positioning creates a distinct identity that resonates with the market, making it an essential component of successful marketing efforts.
There are a number of different approaches to positioning:
Positioning according to product benefit
Positioning according to product attribute
Positioning along price lines: a luxury brand or premium brand
In this thesis we, since our product is an ecommerce application we will use
2 methods for positioning include Positioning against a competitorand positioning according to product benefits.
Building marketing strategy
In section 1.1 and 1.2 we have discussed about strategy, marketing strategy
In this section we will discuss the process and tools to make a marketing strategy
Numerous authors have explored the steps involved in developing a marketing strategy While the foundational process can be universally applied, certain specific steps are particularly relevant to marketing In the following paragraph, we will outline the key stages of creating an effective marketing strategy.
According to Alsem (2007, 21), the strategic marketing plan process involves both external and internal analyses, where the internal analysis focuses on identifying the firm's strengths and weaknesses.
The objectives of external analysis could provide the opportunities and threats The combination of strengths, weaknesses, opportunities, and threats (SWOT) helps managers find out an effective strategy
Gilligan and Wilson (2003) outline a comprehensive planning process that surpasses the approach of Alsem (2007) The initial step involves crafting an executive summary, which necessitates an understanding of the company's background, mission, objectives, and financial performance While Wilson's planning process is more intricate, it ensures that every detail is thoroughly addressed (Gilligan & Wilson 2009, 65-68).
The steps listed by Gilligan and Wilson include:
- Analysis of mission, vision, objectives
- External analysis (customers analysis, competitor analysis, market analysis)
The steps are detailed in the below picture:
Figure 1.2 Strategic marketing process (Gilligan & Wilson)
Don Sexton, in his book Marketing 101, 2010 give a simple process for building a marketing strategy where his approach is more toward marketing The process includes:
1) Situation analysis: Customer analysis, competitor analysis, environment analysis
2) Segmentation, Identify and select target market
3) Assembly of Strategy: Which we set objective and, positioning and propose programs to achieve the proposed objectives
Figure 1.3 Develop a product/ market strategy
From the above we can summarize the process of building a market strategy as follow:
Step 1: Analysis the mission, vision of the company
Step 2: Analysis of external environment, within this we need to do analysis at many level include:
- Industry environment analysis using 5-force model
Step 5: Assess and select the strategy (PSQM, TAS…)
1.3.1 Analysis of Mission and Vision of company
The initial stage in developing a marketing strategy involves analyzing the company's mission and vision, as these elements serve as the foundation and guide for the overall marketing direction.
A company's mission defines its purpose and the reason for its existence For instance, Vinamilk's mission statement highlights its commitment to providing valuable nutrition to the community, emphasizing respect, love, and responsibility.
Vision is the long term image, or goals that the company wants to archive
Vision will provide the company with a direction
After determine the mission and vision, we continue to next steps in building strategy that is external and internal analysis
To develop an effective marketing strategy, it is essential to first analyze the external environment to pinpoint key factors, opportunities, and threats that may impact the company This external analysis can be conducted at various levels, including a macro-level assessment.
PEST analysis, industry level using five-force model The purpose is to identify the factor and then we build the EFE (external environment factors) matrix
In marketing, analysis can be categorized into three key areas: market analysis, competitor analysis, and customer analysis This classification helps to highlight essential elements that inform marketing strategies For instance, market analysis encompasses tools such as PEST analysis and Porter's Five Forces, along with critical metrics like market size and growth rates, enabling a more comprehensive understanding of the market landscape.
In the following paragraphs, we will details about each of this analysis model
PEST analysis (political, economic, social and technological):
PEST analysis is a strategic management framework that examines macro-environmental factors influencing an organization It is often expanded to include Legal and Environmental factors, resulting in the PESTLE analysis, which provides a comprehensive overview for environmental scanning.
Figure 1.4 Five Force Model Market Analysis
Market analysis is crucial for strategic planning, encompassing political, economic, social-cultural, and technological factors (PEST) that influence market performance According to Aaker and McLoughlin (2010), the primary objectives of market analysis are to develop strategies that attract both current and potential customers and to understand the dynamics of the market.
Gilligan and Wilson (2003, 341) believe that market analysis equals to the environmental analysis They give five stages of the analysis This process illustrated in
Figure 1.3.4 Gilligan and Wilson (2003, 344) show the following steps:
1) Audit of environmental influences: To find out the types of environmental factors influences the company’s development and previous performance
3) Identification of key environmental factors
4) Identify the competitive position which includes strategic group analysis and market share analysis
5) Identification of principal and to put the company in a strategic position
Figure 1.5 Five stages of environmental analysis
Source: Johnson and Scholes 1998,cited in Gilligan & Wilson 2003
Effective marketing revolves around identifying and satisfying customer needs, and conducting customer analysis enables businesses to better understand and serve their audience This analysis aids in segmenting customers into distinct groups (market segmentation) and selecting the most appropriate target market (targeting).
Understanding customer behavior is crucial in the marketing environment, as it plays a significant role in creating customer value, a concept that has gained emphasis in recent years (Alsem, 2007) According to Kotler (2000), customer analysis is essential for effective market segmentation and understanding customer motivations By studying customer behavior, businesses can better satisfy the needs and desires of individuals, groups, and organizations in their selection, purchasing, and usage of goods, services, ideas, or experiences.
Aaker and McLoughlin (2010) outline customer analysis by dividing it into three key components: segmentation, customer motivations, and behavior Segmentation involves identifying distinct customer groups that respond differently to products, while understanding customer motivations is crucial for tailoring marketing strategies effectively.
Understanding customer objectives and the reasons behind their changing preferences is crucial for researchers, particularly when addressing unmet needs—those customer requirements that current products fail to satisfy.
―Competitors are companies that satisfy the same customer need‖ (Kotler
Competitive analysis plays a crucial role in the marketing planning process, focusing on key aspects such as each competitor's objectives, resources, capabilities, perceptions, and competitive positioning It involves a thorough examination of their marketing strategies and the specific elements of their marketing mix (Gilligan & Wilson, 2003).
According to Aaker & McLoughlin (2010), it is essential for researchers to first identify both current and potential competitors before conducting a competitive analysis Once these competitors are identified, understanding their strategies becomes crucial Additionally, analyzing the strengths and weaknesses of each competitor is vital for a comprehensive strategic assessment.
(Aaker &McLoughlin 2010, 42) Alsem (2007, 131) points out beside that the competitor analysis should obtain strengths and weaknesses of the competitors
CURRENT SITUATION OF VNSHOP MARKETING
About VNPay
Founded in March 2007, Vietnam Payment Solution Joint Stock Company (VNPAY) was established by a team of seasoned experts with extensive experience in utility services, banking, telecommunications, and business administration.
VNPAY's strategy focuses on collaborating with financial institutions, banks, telecommunications companies, and online businesses to create a modern payment solution This solution leverages mobile phones, the internet, and bank card systems, utilizing multiple channels from banks, telecom providers, enterprises, and VNPAY itself.
With the objective to become a leading company in the electronic payment in
VNPAY in Vietnam has established partnerships with 32 banks, 6 telecommunications companies, and over 40 enterprises to create user-friendly payment solutions These include Mobile Banking, VnTopup for mobile phone top-ups, VnPayBill for bill payments, and VnMart as an eWallet option, all designed to enhance convenience in financial transactions.
VNPAY is dedicated to "simplifying life" by collaborating with partners to create an easy payment system that minimizes social costs and encourages a shift away from cash usage among the population Additionally, VNPAY envisions that non-cash payment methods will serve as a foundation to enhance and support the growth of e-commerce.
Our goal is to simplify life by creating practical value that enhances social consumption activities, while also reaffirming our commitment to providing innovative utility services to our customers.
The services which is currently provided by VNPAY to customers including:
Chương này nên được đổi tên thành "Phân tích và Hình thành Chiến lược cho Công ty", đồng thời kết hợp nội dung của chương 2 và chương 3 Chương 3 cần đi sâu vào các điều kiện và các bước cụ thể để thực hiện chiến lược đã được lựa chọn.
Phần này em xin giữ cấu trúc em trinh bay theo guideline HSB
Giơi thieu Background Hien trang Giai phapt Chương 3 tương ứng ới phần giai phap
Chương này có nội dung ngắn chỉ 6-7 trang, gây mất cân đối với chương 1 dài hơn 30 trang Để giữ cấu trúc, anh cần phân tích sâu hơn về thực trạng và hoạt động Marketing của công ty Anh có thể thực hiện phân tích theo các yếu tố như phân khúc thị trường, định vị mục tiêu và định vị thương hiệu, kèm theo hình ảnh, số liệu và biểu đồ liên quan đến công ty và các hoạt động của nó.
VNPAY is a leading provider of SMS Banking and Mobile Banking solutions in Vietnam, offering a dedicated SMS short number (8149) for numerous banks With just a single connection to VNPAY, banks can enable their customers to conveniently send and receive account-related information via SMS across all telecommunications operators in the country.
VnTopup is the service for topup of mobile phone prepaid account (applying for all mobile phone operators in Vietnam) and postpaid account of Viettel and
MobiFone subscribers This service has been deployed on Mobile Banking, Internet
Banking and ATM of banks The amount of topup will be directly debited from customer’s registered bank account
The VnPayBill service enables customers to easily query and pay their bills, with the payment amount directly debited from their bank accounts Additionally, customers have the convenience of making bill payments through Mobile Banking and Internet Banking options.
Banking channels, ATM of bank or register for auto-debiting of the regular bills
VnMart is an e-wallet developed by VNPAY to be a mean of payment for the transactions on e-commerce websites With the connections to banks of
VNPAY and VnMart users can easily top up their bank accounts to facilitate online transactions on the VNPAY website at http://vnpayment.vn, as well as on various e-commerce platforms that are integrated with VNPAY.
Utility sim is a service provided by VNPAY and all mobile networks in
Vietnam, it allows mobile subscribers become a selling point of prepaid phone topup, scratch card code, postpaid bill payment, insurance and other services…
VNPay accept the typical organization structure of a joint stock company, the organization structure of the company is published in the website as below:
VNPay Shop
VNPay Shop, a subsidiary of VNPay, is a new e-commerce company that sells products via the mobile applications running on iOS and Android platforms
VNShop is venturing into the e-commerce sector, where a robust marketing strategy is essential for success In a competitive landscape, having an effective marketing approach is crucial for the company to establish a strong market position and thrive.
The application is just launched for 1 year and very new to audiences
Customers without a bank's internet banking application are often unaware of the e-commerce mobile app While integrating this application into banking services offers several benefits, it also presents certain drawbacks.
Products and services: VNShop working to provide products to customer via mobile application Customer can buy products from VNShop application which is integrated to mobile banking application of Agribank
Channel of access (Place): At the moment customer only can access this via the mobile banking application of Agribank
Integrating mobile banking applications offers significant advantages, including access to a vast pool of potential customers and enhanced trust from users when associated with a reputable bank This visibility can lead to increased online purchasing through e-commerce platforms, as bank customers are typically more familiar with mobile banking However, this integration also presents a limitation, as it may restrict the application's reach to a broader audience, particularly those who do not utilize mobile banking services A substantial portion of e-commerce customers still prefer shopping through web browsers and third-party commerce applications, a demographic that VNShop has yet to tap into.
Current situation of marketing activity at VNShop
As of this writing, VNShop has been operational for just over a year, with its activities still in the early stages To assess the current situation comprehensively, we will analyze it through multiple perspectives, employing the 4P framework: Product, Price, Place, and Promotion This structured approach will allow us to delve into specific details and gain a clearer understanding of VNShop's market position.
- Market segmentation and target market
- Current channel and potential customer (place)
The company currently targets approximately 0.5 million customers using Agribank's mobile banking, based on Google Play download estimates Once the application is deployed across four major banks, the potential customer base could grow to around 1.5 million, considering an overlap of 0.5 million users among these banks However, this figure remains relatively small compared to the 16.9 million mobile eCommerce users, indicating that there are still 15.4 million mobile users yet to be engaged.
Figure 2.2 Mobile banking EC (estimate for 4 big banks) vs Mobile EC users (million)
Currently, the company has 500,000 users; however, if it successfully integrates with all four major banks, its user base could increase to approximately 1.5 million In comparison, the mobile commerce sector boasts 16.9 million users, while the overall eCommerce market encompasses a total of 35.4 million users.
EC users Number of potential customers (million) 0.5 1.5 16.9 35,4
Figure 2.3 Number of customer vs market potential
2.3.2 Product offering categories vs competitors
The current product categories of VNShop is limited compare to other competitor, the company offer 10 categories of products like:
The laptop category on VNShop features a limited selection, offering only two products from Dell and Asus In contrast, Sendo.vn boasts 249 laptop options, Tiki.vn has 251, and Lazada leads with an extensive inventory of 5,196 products.
Table 2.1 Product in laptop category of VNshop and competitor
Company Vnshop Sendo Tiki Adayroi Lazada
Number of product in laptop catetory 2 249 251 768 5196
Another category of example is perfume, while on VNShop we found 5 products, the same category on Sendo.vn we will see 107,606 products
Even this comparison does not show the full picture of product offering of
VNShop currently faces limitations in its product categories and overall inventory compared to its competitors To enhance its market position, it is essential for VNShop to significantly expand its product offerings.
2.3.3 Current channel and potential customers
Because currently VNShop is installed along with Mobile banking application of Agribank the estimated number of user is 500,000 users (source: number of downloads on Google Play store)
To know the market potential, we can look at the forecast on number of ecommerce users Below table is number of forecasted user by statistica in Sep 2016
Table 2.2 Number of EC users forecast (statistica, 2016)
As of 2016, approximately 51% of eCommerce users in Vietnam utilized mobile applications for their purchases, highlighting a significant trend in online shopping behavior The market size for mobile application-based eCommerce reached 16.9 million users, indicating a robust growth potential in this sector.
VNShop now only got market share of 2.9%
We also look at the number of application download on Android platform from Google Play ™ store The number of download is as in below table
Table 2.3 Number of download from Playstore (Android)
Application Tiki sendo.vn Adayroi VNShop Lazada
Lazada, an international e-commerce platform, has achieved an impressive milestone of 50 million downloads However, it operates across five countries in Southeast Asia—Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam—making this figure less meaningful for direct comparisons.
Figure 2.4 Number of download on Android
The period before writing of this thesis, the advertising and PR activates of
VNShop's operations are constrained, as VNPay typically hosts events at bank branches and headquarters This approach is strategic, as organizing such events requires minimal effort while effectively reaching the target audience—owners of the mobile banking application that VNShop aims to develop.
Holding this type of event will be direct and there is no need for an intermediary party to involve
The VNShop application is primarily recognized by bank staff rather than the broader mobile banking user base This limited awareness is partly due to VNShop being in its pilot phase, where it is assessing market conditions to identify the most effective technologies and business models Given the recent failures of heavily invested e-commerce platforms like lingo.vn and Adeca, it is not the right time for VNShop to make significant investments.
Tiki sendo.vn Adayroi VNShop
Number of download (on Android)
Digital marketing encompasses advertising on platforms such as social media and search engines like Google, Bing, and Yahoo Analyzing the communication and advertising strategies of VNShop alongside its competitors reveals key insights Currently, various internet advertising channels play a crucial role in reaching target audiences effectively.
Banner advertisement is the kind of advertising that company put its image, message or logo on another famous website to deliver message
Google advertisement service is when company pay fee so that each time user searches on google for related products Google will display the company name at top results
Facebook marketing involves more than just creating a Facebook page for your product or company; it is more effective to utilize Facebook's advertising program By investing in Facebook ads, you can reach a larger audience and effectively promote your product to numerous users.
The following table gives a summary of the ways that each company is doing on advertisement This data come from direct collection in time of writing (October, 2017)
VNShop Sendo.vn Tiki Adayroi Lazada
This table shows that VNShop now not yet used the modern advertising channels
2.3.5 Current user rating of VNshop vs competitors
In addition to our limited advertising and public relations efforts, we conducted a survey to gauge awareness of VNShop among potential customers The survey involved 80 participants who were asked to identify their familiarity with VNShop compared to other e-commerce platforms such as tiki.vn, sendo.vn, lazada, and adayroi.com, and to rank each brand on a scale from 0 to 5.
(This sample size is calculated in section 5 of the introduction chapter)
After collecting data from survey, the result we found is like follow:
About awareness, in 80 people who were ask the number of people show know each company like follow
Table 2.4 Awareness level of each brand Lazada Tiki Sendo Adayroi Vnshop Number of people know 63 58 36 46 14
Figure 2.5 Awareness level of each brand
In response to question how you rank or trust each brand in scale 0-5, the result collected is showed in the following table
Table 2.5 Brand ranking level of VNShop and competitors
Brand Tiki Sendo Lazada Adayroi VNShop
Below is the graph on the ranking of each brand
Figure 2.6 Brand ranking level of VNShops and competitors
Research by YouNetMedia (2015) indicates that customer expectations are met by Lazada, which experienced its highest activity levels in July, August, and September of that year, as illustrated in the survey results below.
Figure 2.7 Brand activity level data in 2015
(Source: YouNetMedia, 2015, survey on customer expectation)
This has showed us that in 5 applications and site VNShop got lowest ranking to other competitors
This has suggested that we need marketing strategy to improve the situation In
Chapter 3 we will go through steps required to create marketing strategy for VNShop.
MARKETING STRATEGY FOR THE CASE OF VNSHOP
External analysis
PEST analysis is used to analyze the macro environment that the company is operating in PEST analysis will concentrate on analyze political, economic, social and technological factor
Vietnam's political stability and peaceful environment create a secure atmosphere for companies to invest and conduct business This reliable political climate enables businesses to invest confidently, minimizing concerns about potential financial losses due to political risks.
Vietnam has experienced stable and robust economic growth, averaging 7% over the past decade This consistent growth has led to an increase in societal demand, providing companies with greater opportunities The growth rate from 2010 to 2016 illustrates this positive trend (source: gso.gov.vn).
Vietnam boasts a youthful demographic, with 46% of its population in the working age and approximately 1 million new individuals entering the labor market annually This dynamic workforce, particularly the younger generation, tends to have a higher propensity to spend, making the market appealing for businesses However, it's important to note that the current income levels of Vietnamese citizens are relatively lower compared to the regional average, which may dampen overall consumer demand.
However with stable economic growth rate, investor will expect good development in Vietnam
Technological factor:internet is widely accessible with reasonable price;
The younger generation in Vietnam is tech-savvy, making the e-commerce market highly promising With a robust telecommunications system and high-speed internet, e-commerce websites and mobile applications operate seamlessly, enhancing the overall shopping experience.
Payment system infrastructure is good to facilitate non-cash payment
(epayment) However Vietnamese people still prefer COD (cash on delivery) payment method
Vietnam's recent legal reforms aim to streamline processes and enhance support for businesses, particularly benefiting companies in the IT, e-commerce, and high-tech sectors These changes create a favorable environment that encourages growth and innovation within these industries.
Environmental factors in cities like Hanoi and Ho Chi Minh City present challenges, particularly due to rising air pollution However, this issue is not a significant concern for companies operating in the e-commerce sector.
The Vietnamese e-commerce market has emerged as a captivating sector, drawing significant attention and investment in recent years According to statistics from Statista, the growth and potential of this market are evident through various compelling figures.
Revenue in the "e-Commerce" market amounts to US$2,187m in 2017
Revenue is expected to show an annual growth rate (CAGR 2017-2021) of
16.5 % resulting in a market volume of US$4,024m in 2021
The market's largest segment is the segment "Electronics & Media" with a market volume of US$842m in 2017
User penetration is at 50.5 % in 2017 and is expected to hit 58.0 % in 2021
The average revenue per user (ARPU) currently amounts to US$61.74."
The Ecommerce market in Vietnam has garnered significant attention recently, driven by its impressive growth potential Various surveys and market analyses highlight the substantial size and rapid expansion of this sector The following data, sourced from Statista, illustrates the remarkable size and growth rate of the Ecommerce market in Vietnam.
Figure 3.1 Revenue of Vietnam EC market to 2021 (source: Statistica 2016)
In addition to assessing market size based on revenue, it's essential to evaluate the number of users or potential customers According to Statista data from 2016, the number of eCommerce customers is projected to reach 40.7 million by 2020.
Figure 3.2 Number of EC users forcast
With the number of user growing, also the spending per user (APDU) is also increasing over the years Below is the forecast till 2020
Figure 3.3 average revenue per user (APDU) in EC market Vietnam
Customer analysis belongs to external analysis.Companies do customer analysis to understand customer to serve customer better? When doing customer analysis normally company will need to know:
- What customer wants from the company (customer needs)?
- How customers are segmented (segmentation)?
- What is the position of company in the customer ranking?
Customer analysis is essential for any business plan, regardless of growth stage By thoroughly analyzing customers, companies can effectively segment the market, identify their target audience, and develop strategies to reach them.
To conduct effective customer analysis, companies can leverage existing customer data and purchase history, as well as gather insights through surveys In this study, a questionnaire was utilized to assess potential customers' awareness of VNShop Participants were asked straightforward questions regarding their online purchasing experiences and to rate competitors based on popularity, using a scoring system from 0 to 5 A total of 80 survey responses were collected, providing valuable insights into customer perceptions and preferences.
Figure 3.4 Brand ranking level of VNShop and competitors
Competitor analysis helps managers know the competitors We will need to understand about the competitor to effectively complete in the market Competitor analysis will also highlight the situation
Vietnam's e-commerce landscape is dominated by several major players, including well-established companies like Lazada, Adayroi, Tiki, and Sendo, all of which have direct branches or offices in the country In addition to these prominent platforms, numerous smaller websites are emerging in the online retail space, though they often lack the same level of establishment It's important to note that this overview does not account for global e-commerce giants such as Amazon and eBay, which also operate in Vietnam through local platforms.
Below we give a short summary for each of the players
Founded in March 2010, Tiki.vn is a B2C e-commerce platform that prioritizes customer service and the social aspects of shopping The company's name reflects the CEO's commitment to providing customers with a worry-free online shopping experience, emphasizing three key factors: ease of search, reliable service, and customer satisfaction.
Tiet kiem (affordability), and Tin cay (trustworthiness) Tiki now has over 500,000 customers and offers 300,000 products across 12 categories (Books & Stationery,
Electronics, Beauty - Healthcare, Home living, Mom & Baby, Fashion & Apparel,
Sport, etc.) and is recording triple-digit growth per year
The strengths of Tiki are: Tiki has a good established brand, besides that Tiki has good product portfolio and Tiki work very well on both website and mobile application
Sendo Joint Stock Company is a Vietnamese e-commerce retailer and online commerce platform It is a subsidiary of Vietnamese software conglomerate FPT
Corporation Sendo.vn was officially launched on Sept 2012 On May 13, 2014,
Sendo Technology JSC, a subsidiary of FPT Group, manages the Sendo.vn marketplace, which currently hosts over 80,000 shops This platform provides a wide variety of products, featuring more than 5 million items across 21 distinct categories.
Sendo.vn also has a website and a mobile application
Adayroi, the e-commerce platform of VinCommerce and a subsidiary of Vingroup, aims to be an all-in-one shopping destination The website, adayroi.com, offers a diverse range of product categories, including food, fashion, travel, electronics, cars, and motorbikes, catering to a wide array of consumer needs.
Internal analysis
Internal analysis plays a crucial role in the planning process by delivering essential insights into strategically significant information about the company This analysis encompasses various elements, including financial performance, performance metrics, strengths and weaknesses, and core competencies, which collectively inform strategic decision-making.
In the case of VNShop, the company having the following strengths and weaknesses:
- Good relationship with bank and telecom companies
- Integrated to bank - limited customer
- Company is not famous in e-commerce market
VNPay's strong position and established relationships with banks provide a significant competitive advantage for VNShop, which is integrated into the banking application This integration fosters customer trust, as the product is readily accessible to all mobile banking users, enhancing its appeal and usability.
The limit of this is: The potential customers become limited also, so for long term
VNShop must extend its channel for reaching customers.
EFE, IFE matrix
Following an external and internal analysis, I interviewed Mr Thinh, the manager of the company, to discuss key external and internal factors Each factor was rated on a scale of 1 to 4, where 1 indicates poor performance, 2 is average, 3 is quite good, and 4 is excellent The results of the interview informed the development of the External Factor Evaluation (EFE) and Internal Factor Evaluation (IFE) matrices for VNShop.
Key external factors Weight Ratings
There is big room for growth in e-commerce market in Vietnam 0.15 4 0.60
No company doing the same model (integrated to bank application) 0.15 4 0.60
Shoping on mobile is becoming a trend 0.15 3 0.45
Vietnam has big population of young age 0.20 2 0.40
Very high competition from the market that is currently very completive 0.15 2 0.30
Competitors already have good financial and established 0.20 2 0.40
Figure 3.6 EFE Matrix for VNShop IFE matrix
Key internal factors Weight Ratings
Good relationship with bank and tele- communication companiess 0.10 3 0.30
Integrated to bank - limited customer 0.15 2 0.30
Company is not famous in e-commerce market 0.10 2 0.20
Figure 3.7 IFE Matrix for VNShop
SWOT Analysis and alternative strategy selection
SWOT analysis serves as an effective tool in the marketing planning process, enabling managers to assess the company's current situation within its environment By understanding these dynamics, managers can develop strategic initiatives tailored to the company's needs The following is the SWOT matrix for VNSHOP.
1 VNPay is the leading provider payment service in Vietnam, partner with many banks
3 The company have trust from bank / telecom market
4 The company has already got a good platform for banking and payment application
1 Bundled to bank application so the initial targeted user is low
2 Company is not famous in e- commerce market
1 There is big room for growth in e- commerce market in Vietnam
2 No company doing the same model (integrated to bank application)
1 The market is currently very completive
2 Many company already have good financial and established in Vietnam (lazada, adayroi.com, tiki.vn, sendo.vn)
3 Customer has not got habit of buying from the Banking application
Figure 3.8 SWOT matrix for VNShop The strengths of the VNSHOP: Even being a new launching and the company is doing new ecommerce application this company has many strengths
Adjust the presentation of the text for improved aesthetics, avoiding unnecessary gaps This enhancement contributes to the company's success in a competitive market Key elements to consider include:
- Good VNPay brand that is established in Banking / telecom industry
- Integrate with banking applications so it give convenient to user (but also this limit number of potential users)
- The company has good infrastructure in banking / payment industry to start with
VNSHOP has several weaknesses that limit its potential growth Firstly, the application is designed to integrate exclusively with bank applications, which restricts its initial user base to bank customers and excludes other potential users, unlike broader e-commerce platforms Additionally, while VN Pay is recognized as a payment company, it lacks significant visibility in the e-commerce sector, hindering its ability to attract sellers and expand its market presence.
- Current market share is low due to company start started
- Awareness of customer (brand) is low; people know about many big companies like lazada.com, tiki.vn, adayroi.com and not yet know about this
- Advertisement / marketing for this product is now pretty limited
The opportunities of the VNSHOP: Opportunities for the company is large, because this is a new application that integrated with banking application this give company a good differentiation from other competitor
- High market potential in e-commerce The room for growth is very big
- There is no other company doing the same (integrate with banking application) so this will be the leading
The threats of the VNSHOP:
- Many established company / player in market like sendo.vn, lazada, tiki.vn…
- Limited potential customer because this application is integrated only to the banking application
The TOWS matrix is often used along with SWOT matrix TOWS matrix will describe the strategy for each scenario when like SO (Strength – Opportunity), ST, WO, WT
Based on above analysis about internal / external environment and SWOT matrix, the following TOWS matrix is proposed
1 VNPay is the leading provider payment service in Vietnam, partner with many banks
3 The company have trust from bank / telecom market
4 The company has already got a good platform for banking and payment application
1 Bundled to bank application so the initial targeted user is low
2 Company is not famous in e-commerce market
1 There is big room for growth in e-commerce market in Vietnam
2 No company doing the same model (integrated to bank application)
1 Attract customer who is using mobile banking app
2 Expand to independent application platform and web
3 Increase integrated advertise in QR pay
1 Attract customer who is using mobile banking app
2 Expand the product offering category
3 Expand to independent app and web platform
1 The market is currently very completive
2 Many company already have good financial and established in Vietnam
(lazada, adayroi.com, tiki.vn, sendo.vn)
3 Customer has not got habit of buying from the
1 Concentrate on niche market (banking)
2 Communicate to user benefit of buying from bank app
1 Target the niche market of ecommerce with in banking application
2 Expand the product offering category
Figure 3.9 TOWS matrix of alternatives strategy for VNShop Comment [A15]: Chưa có phần lựa chọn chiến lược dựa trên ma trận QSPM anh trình bày.
Alternative strategies selection
In the analysis phase, we conducted both external and internal evaluations to develop a comprehensive SWOT matrix, as detailed in sections 3.1 to 3.4 This section focuses on selecting alternative strategies outlined in section 3.4, utilizing the TOWS matrix, to propose a strategic direction for VNShop.
Selecting an alternative strategy can be straightforward when one option clearly outperforms others However, in situations where strategic choices are less obvious, relying solely on intuition can lead to poor decisions In such cases, employing quantitative measures for strategy selection is essential to ensure a more objective and informed decision-making process.
To effectively leverage a company's strengths and seize opportunities, prioritizing S-O strategy options is essential Subsequently, it is important to address significant threats and weaknesses to ensure a comprehensive strategic approach.
To evaluate and compare strategies for VNShop, we will implement one of the proposed strategies from the previous section and create a QSPM matrix This approach will allow us to systematically assess the effectiveness of the chosen strategy in relation to the others.
4 strategies proposed that we name (SO, ST, WO, WT) accordingly
The QSPM for all 4 strategies is presented in the table in following page.
SO stragetegy ST strategy WO strategy WT strategy
Key internal factors Weight AS TAS AS TAS AS TAS AS TAS
Good relationship with bank and telcos 0.10 3 0.30 3 0.30 4 0.40 2 0.20
Integrated to bank - limited customer 0.15 3 0.45 2 0.30 2 0.30 2 0.30
Company is not famous in e-commerce market 0.10 2 0.20 2 0.20 2 0.20 2 0.20
SO stragetegy ST strategy WO strategy WT strategy
Key internal factors Weight AS TAS AS TAS AS TAS AS TAS
There is big room for growth in e-commerce market in Vietnam 0.15 4 0.60 2 0.30 2 0.30 1 0.15
No company doing the same model (integrated to bank application) 0.15 3 0.45 2 0.30 2 0.30 2 0.30
Shoping on mobile is becoming a trend 0.15 3 0.45 2 0.30 2 0.30 2 0.30
Vietnam has big population of young age 0.20 2 0.40 2 0.40 2 0.40 2 0.40
The market is currently very completive 0.15 2 0.30 3 0.45 2 0.30 3 0.45
Competitors already have good financial and established 0.20 2 0.40 2 0.40 2 0.40 2 0.40
The QSPM matrix indicates that the S-O strategy received the highest scores, making it the optimal choice for our situation Therefore, we will proceed to elaborate on this strategy and develop a comprehensive marketing plan for the company based on the S-O approach.
Marketing strategy for VNShop
In section 3.1 – 3.4 we have built and chose the strategy for VNShop so in this section we will capture the final marketing strategy that have been built
Mission and visionis important to any strategy Vision provides company with a future ideal image to archive Mission provide a meaning to company work, a why the company should exist
Mission of VNShop is to provide customer with good shopping experience integrated bank payment system
Vision of VNShopis to become one the top 5 application that user trust and do shopping with
Products and services: VNShop provide trading platform on mobile applications this section will analyze the company product as part of 4P category of marketing
Company actually provide the service of trading platform, company will sell products from many providers Company will also provide payment utility and infrastructure to customers
To the users who are using E-commerce for buying products, the company is offering products but the company is actually providing the platform and payment services
Due to above analysis in chapters 2, the current number of user is small
Target for the company should be:
1) Extend potential market to EC mobile users not limited to users
2) To 2019, number of users is 11.7 million (30%) of forecasted EC mobile user in 2019
Market segmentation and target market
Current target market of VNShop are users who are using mobile banking application of 4 big banks in Vietnam (Agribank, BIDV, Vietinbank,
Vietcombank) At the time of writing this thesis, VNShop has already deployed on
Mobile banking application of Agribank
VNShop categorizes its eCommerce customers into two distinct groups: those who utilize mobile banking applications and those who do not Currently, VNShop is only able to target the former group As of now, the VNShop app has achieved 500,000 downloads on the Google Android application store.
In 2016, the number of eCommerce users reached 33.2 million, with approximately 51% utilizing mobile devices, translating to an estimated 16.9 million mobile users Currently, VNShop is only able to target 2.9% of this mobile eCommerce user base.
Figure 3.11.VNShop users vs EC Market
The current target market is small compare to potential The strategy for the company should to run VNShop as an independent shopping application rather than integrated
Total users Mobile users VNShop users
VNShop vs EC users (millions)
Phần này cần được chuyển sang chương 3, nơi sẽ trình bày cách thức và giải pháp thực hiện chiến lược Marketing của công ty Cần cụ thể hóa chiến lược thành các hành động rõ ràng, đi kèm với các điều kiện cụ thể để đảm bảo tính khả thi và hiệu quả.
Em bổ sung thêm phần 3.6 cho phân kế hoạch
The future market will encompass not only banking users but also anyone with mobile access in phase 1, and will expand to include a broader user group via a web platform in phase 2.
VNShop having competitive advantages compare to other providers in the market, especially the new startup in Ecommerce The competitive advantage we can include is:
- Company is backed by VNPay which is a trusted payment provider in
- Integrated application in banking application, this again high trust from users
- VNShop can be advertised via other channel of VNPay like mobile banking,
The Vietnamese e-commerce market is saturated with numerous applications, as highlighted in our competitor analysis (3.1.4) Each competitor has developed its own mobile application, emphasizing the need for VNShop to establish a strategic position to stand out among the competition.
Through the competitive advantages we shown above, we position VNShop as a trusted mobile application for shopping, provide most convenient integrated payment to customers
This positioning is also aligned with company traditional business and will have many advantage from other application that VNPay is doing like QR Payment application
The future of mobile trading lies in developing an independent mobile application that users trust for purchasing products and services, rather than merely integrating it with banking This app aims to become one of the top four mobile commerce applications in the market.
VNShop's current application primarily caters to mobile users with banking apps, significantly narrowing its customer base According to Statista, PC and web browsers remain the most popular channels for online purchases, highlighting a substantial opportunity for growth beyond mobile platforms.
Figure 3.12 Device used for online purchase 2015
So as we have pointed out in the target market section the first step should be to have application as independent application to target larger market
To enhance brand awareness among customers, our analysis reveals that many are unfamiliar with the VNShop application A significant number of survey respondents indicated a lack of knowledge about our brand Therefore, it is essential to implement a strategic communication plan aimed at increasing customer awareness Key actions will include allocating a larger budget for advertising on popular websites to effectively reach our target audience.
(vnexpress, cafef…) and advertising on social network like Facebook
To enhance brand awareness, it is essential to implement a robust communication strategy, as the company's name is currently not well recognized by customers By utilizing various effective methods tailored to the current situation, we can significantly strengthen our communication efforts and elevate the brand's visibility in the market.
- Utilize modern communication channel like social media (Facebook, twitters…) to reach customers
- SEO (search engine optimization) and Google Ads advertising.
Plan and activities
This section outlines a comprehensive plan and activities designed to enhance the marketing strategy discussed in section 3.5 Each proposed activity will require specific conditions and support for successful execution The plan includes various initiatives aimed at driving effective marketing outcomes.
- Plan for expansion to independent of mobile banking
- Communication to emphasize on our competitive advantages
In below paragraphs we will describe more details each of this item:
In today's competitive market, enhancing promotion is crucial as consumers have numerous options for online purchases Effective advertising, particularly through modern channels such as social media platforms like Facebook and Twitter, as well as Google Ads, plays a vital role in attracting customers and driving sales.
The web site for this application should also be optimized for search engine (SEO – search engine optimization)
Promotion for Vnshop can also be increased via other channel that VNPay is building includes QR code payment, SMS
To enhance our customer reach, we plan to develop a new application that addresses the limitations of our current platform This expansion will occur in two phases: Phase 1 will focus on creating an independent application, while Phase 2 will involve extending our services to a web platform, allowing us to access a larger customer base.
Communication to emphasize on our competitive advantages:
Communication message should emphasize our advantage include item we can details:
- Service provided by trusted provider that is partner of banks
- Company has great experience and infrastructures in payment that is established in payment industry
A proposed schedule can be as follow:
Setup Facebook page, using Facebook promotion
Setup twitter page for Vnshop
Build website that support SEO
Buy Google ads package to available on search engine
This thesis aims to develop a strategic marketing plan for VNShop by reviewing relevant literature and conducting practical research specific to the case company Through discussions and analysis, two key research questions are explored This chapter presents the answers to these questions along with recommendations for future research.
This thesis develops a comprehensive strategic marketing plan grounded in well-established theories It emphasizes the importance of a thorough analysis of both internal company factors and external environmental conditions By understanding these elements, we can effectively formulate a robust strategic marketing plan tailored to the company's needs.
In this thesis, I developed a strategic marketing plan for VNSHOP by integrating theoretical knowledge with empirical insights The research began with an internal analysis to gain a comprehensive understanding of the company, utilizing interviews to gather relevant information Subsequently, an external analysis was conducted to assess the market environment, focusing on competitors and customer dynamics.
This thesis has two research questions The first question is as follows:
1 What is the strategic marketing plan and how to build it?
The strategic marketing plan is designed to develop strategies for the company by analyzing both the organization and the market environment.
This strategic marketing plan serves as a roadmap for the company's future endeavors, guiding it toward achieving its objectives It encompasses a variety of strategies, including marketing, customer, product, and internal strategies, all designed to enhance overall performance and growth.
Implementing these strategies will enhance the company's profitability and strengthen its brand image The strategic marketing plan encompasses internal, customer, competitor, market, and SWOT analyses to assess the current market and company conditions These analyses identify effective solutions to existing challenges It is essential for the strategic marketing plan to focus on long-term, holistic company goals, emphasizing interdepartmental collaboration Ultimately, this strategic marketing plan serves as a valuable tool for managers to achieve the company's objectives.
The second research question is as follows:
2 How can the strategic marketing plan be built for the VNSHOP?
To effectively assess the company's objectives, a comprehensive analysis of the market is essential This involves conducting internal analysis, customer analysis, market analysis, competitor analysis, and a SWOT analysis A survey was performed during the customer analysis to gauge the brand's current standing relative to competitors Following this thorough examination, a strategic marketing plan was developed by integrating the insights gained from the analyses with the company's objectives.
During the thesis work, there are some problems difficult to solve in the research process In the preparation period, the data is from a private company and hard to get
The company is just founded and starts running so the revenue is small and kept confidential, the company is pretty strong to keep its strategy and data private
A limitation of this study is the lack of extensive data due to the company's early stage, resulting in a reliance on secondary data sources such as publications and websites for analysis and situational assessment.
This thesis presents a strategic marketing plan for VNShop, an e-commerce platform The author conducted extensive research and surveys to gain insights into the company and the current market conditions, aiming to develop a practical marketing strategy that can be effectively implemented for VNShop's growth and success.
Over the next three years, VNShop aims to navigate the rapidly evolving and highly competitive e-commerce landscape To ensure success, the strategy will require annual reviews and adaptations, paving the way for numerous opportunities for future research.
- Research more throughout about customer situations
- How to use a specific channel for marketing purpose and measure result
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20 DI marketing 2016 Ecommerce usage in Vietnam http://www.di- onlinesurvey.com/en/2016/09/12/e-commerce-usage-in-vietnam-2016/
21 Introduction to mobile banking application of
22 Guide to use VNShop in Agribank mobile banking (VNPay web site)https://vnpay.vn/tin-tuc/Tin-Thuong-mai-dien-tu-414/Huong-dan-mua- sam-truc-tuyen VNShop-tren-ung-dung-Agribank-E-Mobile-Banking 1319
23 Nashwan Mohammed Abdullah Saif, How does Marketing Strategy
Influence Firm Performance? Implementation of Marketing Strategy for
Firm Success,http://researchleap.com/how-does-marketing-strategy- influence-firm-performance-implementation-of-marketing-strategy-for-firm- success/
(https://www.statista.com/outlook/243/127/e- commerce/vietnam#contentlist0)
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26 VCCI news website, http://vccinews.com/news_detail.asp?news_id934
27 Vecita 2017 Report on Vietnam Ecommerce Indices (2017) http://www.vecita.gov.vn/anpham/279/Bao-cao-Chi-so-Thuong-mai-dien-tu-
28 Cafef - Vinamilk: Mỗi ngày chi 4,5 tỷ cho quảng cáo, http://cafef.vn/doanh- nghiep/vinamilk-moi-ngay-chi-4-5-ty-cho-quang-cao-
29 Eric Kain, Dr Pepper's Bizarre New 'Not for Women' Ad
Campaign,http://www.forbes.com/sites/erikkain/2011/10/18/dr-peppers- bizarre-new-not-for-women-ad-campaign/#6a23efe46fff
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Vietnamhttps://www.statista.com/statistics/375620/device-used-for-online- purchase-vietnam/
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Conclusions and suggestions for future research
This is the survey to know about brand awareness (how popular / famous) of our current company (VNShop) compare to its competitors
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1) Have you ever bought anything online (via lazada, sendo, tiki.vn, adayroi,
2) What type of payment do you prefer when buying things online
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3) Do you know about or have used each of the following website or applications Please check the item that you have used