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 provides valuable insights that can inform the development of ideas or hypotheses for subsequent quantitative research This method helps uncover trends in thoughts and opinions while allowing for a deeper exploration of the problem at hand Qualitative data collection employs unstructured or semi-structured techniques, with common methods including focus groups, individual interviews, and participatory observations Typically, qualitative research utilizes a small sample size, with respondents selected to meet specific criteria.
Quantitative research focuses on quantifying problems through numerical data, which can be converted into useful statistics It aims to measure attitudes, opinions, behaviors, and other defined variables, allowing researchers to generalize findings from a larger population sample By utilizing measurable data, quantitative research helps establish facts and identify patterns Additionally, the data collection methods in quantitative research are significantly more structured compared to those in qualitative research.
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 VNShop
The data in the thesis are obtained from primary and secondary sources
Primary data refers to information gathered directly from original sources, including experiments, surveys, interviews, and focus groups conducted by researchers In contrast, secondary data consists of information obtained from existing sources like publications, databases, and internal records.
To gather primary data for this research, interviews and questionnaires were utilized, focusing on Ecommerce and domain knowledge Key insights were obtained from discussions with industry experts, including Mr Thinh, former technology manager at Vnpay, Mr Bui Dinh Thi, a trading and forex expert at Miyatsu Vietnam, and Mr Nguyen Huu Nghi, founder and CEO of IFSC Company Additionally, secondary data was sourced from published studies on the Vietnamese industry.
This research involves a survey utilizing questionnaires to assess the current standing of VNShop in comparison to other e-commerce platforms such as adayroi.com, tiki.vn, sendo.vn, and lazada.com The questionnaire includes basic demographic questions, including gender and age, alongside inquiries about how customers rank VNShop relative to these competing websites.
Comment [A3]: Mới thấy anh làm phỏng vấn với
The survey focused on a single individual to streamline the marketing strategy, but it is essential to also interview industry experts and managers After gathering responses from 80 participants, valuable insights were collected to enhance the marketing approach.
Average point for VNShop (mean value): 1.1 Standard deviation: 1.04
This survey aims to estimate the average ranking value provided by users To achieve a 90% confidence level with a margin of error of 0.1, we need to determine the appropriate sample size (n) The calculation involves using the z value corresponding to the desired confidence level (1-alpha) and the expected error (E), which indicates that the true value lies within the 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 90% confidence level with an error margin of 0.243, indicating that the ranking error would not exceed this value To enhance the reliability of the findings, the sample size was increased, leading to a reduced error margin of 0.192, which is deemed satisfactory for the study's objectives Consequently, the decision was made 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.
THEORETICAL BACKGROUND
Strategy
The term "strategy" is commonly used in business, warfare, and daily life, but its definition varies by context At its core, strategy can be understood as a high-level plan designed to achieve specific goals amidst uncertainty It typically involves establishing long-term objectives, outlining the actions necessary to reach those goals, and mobilizing resources effectively Originating from military contexts, where competition is intense and outcomes are critical, strategy emphasizes the importance of utilizing every available resource to secure success.
Strategy, originally rooted in 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 execution.
Strategy can be defined as the art of distributing and applying resources to achieve specific goals By removing the term "military" from traditional definitions, we can see that this concept is equally applicable in business In this context, strategy involves the effective allocation of resources to reach 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 behavior observed over time, highlighting that strategies often evolve through actions rather than being strictly planned When the actual pattern diverges from the original intent, it is termed 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 can be understood in two key ways: as a ploy, which refers to a deliberate maneuver aimed at outsmarting competitors, and as a perspective, where strategy is executed based on a foundational "theory of the business" or the inherent mindset and ideological viewpoint 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 for achieving them It defines the scope of business activities the company will engage in, the type of organizational structure it aims to develop, and the economic and social contributions it seeks to make to shareholders, employees, customers, and the wider community.
In their book "Exploring Corporate Strategy" (7th edition, 2005), Gerry Johnson, Kevan Scholes, and Richard Whittington define strategy as the long-term direction and scope of an organization This strategy aims to achieve 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”
Michael Porter defines strategy as the pursuit of a competitive position by differentiating oneself in the eyes of customers and adding value through unique activities that set a firm apart from its competitors In his seminal work, "Competitive Strategy" (1980), he articulates competitive strategy as the combination of a firm's goals and the policies it employs to achieve them Porter's perspective emphasizes the importance of an organization’s competitive position and the methods to attain it.
Strategy can be defined as a long-term vision or position that a company aims to achieve, along with the methods 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
There are three key levels of strategy in business: 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 selected market Additionally, functional strategy pertains to specific departments such as operations, marketing, and human resources In the following sections, we will explore each of these strategies in detail.
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 are essential for a company's overall direction and involve long-term planning at the highest organizational levels These strategies focus on defining the business sectors the corporation aims to engage in and determining how to acquire and allocate resources effectively across its various business units.
Kinh Do Corporation (KDC), listed on 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 involves expanding a company's operations to boost revenue, which can include launching new businesses or entering new markets According to Norberto A Orcullo (2007), strategies such as mergers and acquisitions or forming strategic alliances are key components of this approach.
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 a company aims to fulfill its mission within its specific sector, focusing on individual business units (SBUs) or strategic planning units (SPUs) It addresses two key aspects: the scope and boundaries of each business unit in relation to corporate strategy, and the strategies employed to establish and sustain a competitive advantage in the industry (Wheelwright, 1984).
A successful business strategy is bolstered by various functional strategies, including marketing, human resources, and operations, which collectively enhance the competitive positioning of the products and services offered by the Strategic Business Unit (SBU) in the marketplace.
Functional strategy focuses on supporting the SBU level strategies This strategy is the strategy for each specific functional unit within a business
Functional strategies primarily are concerned with the activities of the functional areas of a business (i.e., operations, finance, marketing, personnel, etc)
Since all function of business unit must work together and is inter-related, functional strategy of each function will affect other functions
Comment [A6]: Làm rõ hơn các chiến lược ở cấp này (không phảo là business strategy mà là chiến lược cấp đơn vị kinh doanh SBU)
Comment [A7]: Làm rõ thêm lý thuyết về các chiến lược chức năng
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 goes beyond mere communication; it involves identifying customer needs and creating value that meets the demands of a target market, as highlighted by Kotler This comprehensive approach emphasizes the importance of understanding and satisfying consumer requirements.
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
Positioning your product or service effectively involves highlighting one or two key benefits that resonate with your target audience For instance, emphasizing that your application offers the fastest delivery times can significantly attract customers seeking efficiency and reliability.
Effective marketing programs encompass the strategic actions necessary for implementation, often referred to as tactics or the marketing mix These actions include key activities such as advertising, personal selling, pricing, and distribution According to Don Sexton in "Marketing 101," understanding the target market and establishing a strong positioning are crucial elements of a successful 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 functional strategies are directly aligned with the overarching corporate strategy, eliminating the need for a distinct business strategy as outlined in section 1.1.2 of this thesis.
A marketing strategy serves as a vital functional strategy that aligns with and supports both business and corporate strategies, enabling companies to attain desired market share and strategic positioning Key components of an effective marketing strategy include Segmentation, Targeting, and Positioning, which are essential for reaching and engaging the right audience in the market.
No product or service can meet the diverse needs of all customers due to varying wants and preferences To enhance customer satisfaction, companies should categorize customers into groups with similar responses to their offerings, a process known as segmentation Each of these groups is referred to as a segment Subsequently, the company selects one or two segments to focus on, a strategy known as targeting.
Segmentation is a crucial marketing strategy that divides customers into groups with similar needs and preferences, allowing businesses to effectively allocate their limited resources By focusing on buyer-based marketing, companies can tailor their product offerings to meet the specific demands of each customer segment, rather than adopting a one-size-fits-all approach This targeted method, alongside targeting and positioning, ensures that each group receives a product that aligns with their unique requirements, enhancing customer satisfaction and driving sales.
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
Fit with firm’s goals Marketing Expertise
Targeting involves selecting a specific market segment to serve, which is crucial for a company’s marketing strategy A target market consists of a defined group of customers to whom a business aims to sell its products and services Identifying this market is a vital step in creating an effective marketing plan, as it allows for tailored marketing efforts Target markets can be differentiated based on factors such as geography, buying power, demographics, and psychographics, with further details on market segmentation provided in 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 an appropriate brand image—whether it be budget-friendly, premium, popular, or luxurious—through a strategic marketing mix Achieving a strong brand position is crucial, as it can be challenging to reposition a brand once it has established itself in the market.
Positioning is a crucial marketing concept that defines the place a brand holds in the minds of its target audience It involves creating a distinct perception of a company, product, or service compared to its competitors within the same category As a regular marketing strategy, effective positioning shapes how consumers perceive a brand, influencing their choices and preferences in the marketplace.
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 process of developing a marketing strategy While the foundational steps of strategy building are universal, certain specific steps are tailored for marketing This article will outline the essential process for 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 Alsem's (2007) approach, beginning with the necessity of an executive summary Planners must grasp the company's background, mission, objectives, and financial performance While Wilson’s planning process is more intricate, it ensures thoroughness by encompassing every essential detail (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)
- Strategic marketing plan 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 3: Internal analysis (IFE) Step 4: SWOT analysis Step 5: Assess and select the strategy (PSQM, TAS…)
1.3.1 Analysis of Mission and Vision of company
The initial phase in developing a marketing strategy involves assessing the company's mission and vision, as these elements establish the foundational direction for the entire marketing approach.
A company's mission defines its purpose and core objectives, serving as the foundation for its existence For instance, Vinamilk articulates its mission as "To deliver valuable nutrition to the community with respect, love, and responsibility," highlighting its commitment to quality and social 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 analyze the external environment to uncover key factors, opportunities, and threats impacting the company This external analysis can be conducted at various levels, including the macro level through PEST analysis and the industry level using the five-force model The ultimate goal is to identify these factors, which will then be organized into an External Environment Factors (EFE) matrix.
In marketing, analysis can be categorized into three key areas: market analysis, competitor analysis, and customer analysis This classification helps highlight essential elements for developing effective marketing strategies For instance, market analysis encompasses tools such as PEST and Porter's Five Forces, along with critical factors like market size and growth rates, to provide a 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 tool that examines macro-environmental factors influencing an organization It is often expanded to include Legal and Environmental factors, resulting in the PESTLE analysis framework.
Figure 1.4 Five Force Model Market Analysis
Market analysis is essential for strategic planning, encompassing political, economic, social-cultural, and technological factors (PEST) that significantly 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) assert that market analysis is synonymous with environmental analysis, outlining a five-stage process for conducting this analysis Their framework is visually represented in Figure 1.3.4, detailing the essential steps involved in the market analysis process.
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
Marketing focuses on identifying and satisfying customer needs, and conducting customer analysis enhances our understanding of their preferences, enabling us to serve them more effectively This analysis also aids in segmenting customers into distinct groups (market segmentation) and selecting the appropriate target market (targeting).
Understanding customer behavior is crucial in the marketing environment, as recent trends emphasize the creation of customer value (Alsem, 2007) According to Kotler (2000), customer analysis plays a vital role in market segmentation and understanding customer motivations By studying customer analysis, businesses can effectively meet the needs and desires of individuals, groups, and organizations in their selection, purchase, and use of goods, services, ideas, or experiences.
Aaker and McLoughlin (2010) outline customer analysis through three key components The first component is segmentation, which involves identifying distinct customer groups that respond differently to a product The second component focuses on understanding customer motivations.
Understanding customer objectives and the reasons behind their changing preferences is crucial for researchers One significant factor contributing to these shifts is unmet needs, which refer to 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 competitors' objectives, resources, capabilities, perceptions, and competitive positions It also examines their marketing strategies and the various components of their marketing mix (Gilligan & Wilson, 2003).
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 professionals with expertise in utility services, banking, telecommunications, and business administration.
VNPAY's strategy focuses on collaboration 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 diverse channels from banks, telecom providers, enterprises, and VNPAY itself.
VNPAY aims to be a leader in electronic payments in Vietnam by partnering with 32 banks, 6 telecommunications companies, and over 40 enterprises They offer user-friendly payment solutions, including Mobile Banking, VnTopup for mobile phone recharges, VnPayBill for bill payments, and VnMart eWallet.
VNPAY is dedicated to "Simplifying Life" by collaborating with partners to create user-friendly payment solutions that reduce social costs and encourage a shift away from cash usage Their vision extends to promoting non-cash payments as a foundation for the growth and success of e-commerce.
Our goal is to simplify life by creating practical value that supports social consumption activities We are committed to delivering innovative utility services that enhance customer experiences and align with our operational objectives.
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 rất ngắn, chỉ khoảng 6-7 trang, gây mất cân đối nghiêm trọng so 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 nội dung như phân khúc thị trường (segmentation), định vị mục tiêu (targeting), và định vị thương hiệu (positioning), kết hợp với hình ảnh, số liệu và hình vẽ liên quan đến công ty và 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 easily send and receive bank account information via SMS across all telecommunication operators in the country.
VnTopup offers a convenient service for topping up prepaid mobile phone accounts across all operators in Vietnam, as well as postpaid accounts for Viettel and MobiFone subscribers This service is accessible through Mobile Banking, Internet Banking, and ATMs of various banks, allowing customers to have the top-up amount directly debited from their registered bank accounts.
The VnPayBill service enables customers to conveniently query and pay their bills, with payments directly debited from their bank accounts Additionally, customers can utilize Mobile Banking, Internet Banking, and ATMs for bill payments, or opt for auto-debiting for regular bills to streamline their payment process.
VnMart, an e-wallet created by VNPAY, serves as a convenient payment solution for e-commerce transactions Users can easily top up their VnMart accounts from their bank accounts, enabling seamless payments on VNPAY's website, http://vnpayment.vn, as well as on various e-commerce platforms partnered with VNPAY.
Utility sim, offered by VNPAY and all mobile networks in Vietnam, transforms mobile subscribers into retail points for various services, including prepaid phone top-ups, scratch card codes, postpaid bill payments, insurance, and more.
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 crucial for success Without an effective marketing plan, the company may struggle to compete and establish a strong market presence.
The application is just launched for 1 year and very new to audiences
Customers lacking an internet banking application may be unaware of the benefits of e-commerce mobile applications While integrating e-commerce features into banking apps offers convenience, 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, such as exposure to a vast pool of potential customers and enhanced trust from users when associated with a reputable bank This integration allows access to a demographic that is already familiar with banking apps, increasing the likelihood of online purchases through e-commerce However, this approach also presents a drawback, as it may restrict the application's reach to a broader audience, particularly those who do not utilize mobile banking A substantial percentage of e-commerce customers still prefer shopping via web browsers and third-party commerce applications, a market segment 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 its current situation comprehensively, we will analyze it through multiple perspectives, utilizing the 4P framework—Product, Price, Place, and Promotion This detailed analysis will provide a systematic overview of VNShop's market position and operational strategies.
- Market segmentation and target market
- Current channel and potential customer (place)
The current target market for the company consists of approximately 0.5 million customers utilizing Agribank's mobile banking services, as estimated from Google Play download counts Once the application is ready for deployment across four major banks, the potential customer base could expand to around 1.5 million, accounting for the overlap of 0.5 million customers 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 targeted.
Figure 2.2 Mobile banking EC (estimate for 4 big banks) vs Mobile EC users (million)
Currently, the company has 500,000 users, but by integrating with all four major banks, it could potentially increase its user base to 1.5 million This growth is significant when compared to the 16.9 million users engaged in mobile commerce and the overall 35.4 million users in the eCommerce sector.
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:
10) Other However the number of product in each category is small for example the Laptop category of VNShophaving only 2 product of Dell and Asus laptop The laptop categoryof Sendo.vn has 249 products.Tiki.vn 251, Lazada 5196 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
While this comparison highlights some aspects of VNShop's product offerings, it reveals that the current range and quantity of product categories are quite limited To enhance its competitive edge, VNShop must focus on expanding its product selection significantly.
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 utilize mobile applications for their purchases, highlighting a significant trend in mobile commerce The market size for eCommerce through mobile applications in Vietnam is estimated at 16.9 million users, indicating that VNShop currently holds a modest market share of just 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 has achieved an impressive milestone with 50 million downloads, reflecting its widespread popularity As an international e-commerce platform operating in five countries—Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam—this figure highlights its significant reach across diverse markets However, it's important to contextualize this number, as it may not provide a fair comparison given the varying market sizes and consumer behaviors in each region.
Figure 2.4 Number of download on Android
Before the writing of this thesis, VNShop's advertising and PR activities were limited VNPay typically organizes events at bank branches and headquarters, primarily due to the low effort required for organization and the direct targeting of mobile banking application owners, which aligns with VNShop's objectives.
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's current pilot phase, where it is assessing market conditions to identify optimal technologies and business models Given the recent failures of several heavily invested e-commerce platforms like lingo.vn and Adeca, VNShop is strategically avoiding significant investments at this time.
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 and its competitors reveals insights into effective online marketing Currently, various internet advertising channels play a crucial role in reaching target audiences.
- Facebook 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; leveraging Facebook's advertising program is a more effective strategy 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
A recent survey conducted to assess brand awareness of VNShop among potential customers revealed insights into its standing compared to other e-commerce platforms like Tiki, Sendo, Lazada, and Adayroi The survey, which included 80 participants, asked respondents to rate their familiarity with VNShop and rank it on a scale from 0 to 5 alongside its competitors.
(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 from YouNetMedia (2015) indicates that customer expectations align with Lazada's performance, revealing that the platform experienced peak activity during July, August, and September of 2015, 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 businesses, encouraging companies to invest confidently This stability allows for increased investment without the fear of financial losses stemming from political risks.
Vietnam has experienced stable and robust economic growth, averaging 7% over the past decade This consistent growth has led to an increased demand among the population, providing companies with greater opportunities for expansion The impressive growth rate of Vietnam from 2010 to 2016 highlights the country's economic resilience and potential for future development.
Vietnam boasts a youthful demographic, with 46% of its population in the working age category and approximately 1 million new individuals entering the labor market annually This vibrant workforce, particularly among the youth, drives consumer spending and enhances the market's appeal However, it's important to note that the income levels of Vietnamese citizens are currently lower than those in the region, which may result in reduced 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, creating significant potential for the eCommerce market With a robust telecommunications system and high-speed internet, eCommerce websites and mobile applications operate efficiently, enhancing the online shopping experience.
Payment system infrastructure is good to facilitate non-cash payment (epayment) However Vietnamese people still prefer COD (cash on delivery) payment method
Recent changes in Vietnamese law have streamlined processes and enhanced support for enterprises, particularly benefiting companies in the IT, e-commerce, and high-tech sectors These legal reforms create a favorable environment for innovation and growth in these industries.
Environmental factors in cities like Hanoi and Ho Chi Minh City are concerning, particularly due to rising air pollution levels However, this issue is not a significant barrier for companies operating in the e-commerce sector.
The Vietnamese e-commerce market has garnered significant attention and investment in recent years, making it an intriguing sector for growth According to statistics from Statista, the market is experiencing notable expansion, highlighting its potential for future development.
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 due to its remarkable growth potential Recent surveys and market analyses highlight the impressive size and growth rate of this sector The following table presents data on the Ecommerce market size, sourced from Statista, illustrating the promising opportunities within this dynamic industry.
Figure 3.1 Revenue of Vietnam EC market to 2021 (source: Statistica 2016)
In addition to assessing market size by revenue, we evaluate the market based on 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 understanding customer behavior, companies can effectively segment the market, identify target segments, and develop strategies to reach those audiences.
Customer analysis can be conducted through various methods, including leveraging existing customer data and purchase history, as well as utilizing surveys to gather insights directly from consumers In this study, a questionnaire was employed to assess how potential customers became aware of VNShop Participants were asked simple questions regarding their previous online purchases and to rate the popularity of competing companies on a scale 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 major players such as Lazada, Adayroi, Tiki, and Sendo, all of which have direct branches or offices in the country Additionally, numerous smaller websites are attempting to establish an online presence, though they lack the same level of recognition It's also important to note that this overview does not account for international platforms like Amazon and eBay, which operate globally and have a presence in Vietnam.
Below we give a short summary for each of the players
Founded in March 2010, Tiki.vn is a B2C e-commerce company that prioritizes customer service and the social aspects of shopping The name "Tiki" reflects the CEO's commitment to providing essential qualities for online shoppers: ease of search, affordability, and trustworthiness With a growing customer base of over 500,000, Tiki offers an extensive selection of 300,000 products across 12 categories, including Books and 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, a Vietnamese e-commerce retailer and online platform, is a subsidiary of FPT Corporation Launched in September 2012, Sendo.vn has grown significantly since the establishment of Sendo Technology JSC on May 13, 2014, which manages the marketplace Currently, over 80,000 shops operate on Sendo.vn, providing a wide variety of more than 5 million products across 21 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 a comprehensive "all-in-one" online shopping destination The website, adayroi.com, offers a diverse range of product categories, including food, fashion, travel, electronics, cars, and motorbikes.
Internal analysis
Internal analysis is a crucial component of the planning process, offering in-depth insights into strategically significant information about the company This analysis encompasses financial performance, performance metrics, strengths and weaknesses, as well as core competencies, enabling informed decision-making and strategic planning.
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 positioning and established relationships with banks provide a significant competitive advantage for VNShop, which is integrated into the banking application This integration fosters customer trust in the application, as the product is readily accessible to all mobile banking users.
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
After conducting an external and internal analysis, I interviewed Mr Thinh, the manager of VNShop, to identify the key external and internal factors affecting the company Each factor was rated on a scale of 1 to 4, where 1 represents a poor rating and 4 indicates a strong performance The results of the interview contributed to 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 is an effective tool for the marketing planning process, enabling managers to assess the company's current situation and its external environment This understanding allows them to develop strategic initiatives tailored to the company's needs Below 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 a more polished appearance, avoiding unnecessary gaps This will contribute to the company's success in a competitive market Some 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 faces several weaknesses that limit its growth potential Firstly, the application is designed to integrate solely with bank applications, restricting its initial user base to bank customers and excluding other potential users Additionally, while VN Pay is established as a payment company, it lacks recognition in the eCommerce sector, which hinders its ability to attract sellers and broaden its market reach These factors collectively pose challenges for VNSHOP's expansion and competitiveness in the digital payment landscape.
- 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 Banking application
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 analyses to create a SWOT matrix, detailed in sections 3.1 to 3.4 This section will focus on selecting alternative strategies outlined in section 3.4 (TOWS matrix) and propose a strategic plan for VNShop.
Selecting an alternative strategy can be straightforward when one option clearly outperforms others; however, it can also be challenging when the differences are less apparent In such cases, employing quantitative measures for strategy selection is essential to ensure decisions are based on objective data rather than subjective feelings.
Strategic selection is essential for seizing opportunities and leveraging a company's strengths, making S-O strategy options a top priority Subsequently, it is crucial to address significant threats and weaknesses to ensure comprehensive growth and stability.
For VNShop, we will select one of the previously proposed strategies to evaluate its effectiveness To facilitate this comparison, we will create a QSPM matrix that will help in assessing and contrasting the various strategic options available.
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.
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
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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
Sum of total Attractive Score 5.15 4.45 4.20 4.20
Figure 3.10 QSPM strategy selection matrix
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The QSPM matrix indicates that the S-O strategy received the highest score, making it the optimal choice for our case Therefore, we will now 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
VNShop currently targets users of mobile banking applications from four major banks in Vietnam: Agribank, BIDV, Vietinbank, and Vietcombank As of this writing, VNShop has successfully launched its services on Agribank's mobile banking platform.
VNShop categorizes its Ecommerce customers into two groups: those who utilize mobile banking applications and those who do not Currently, VNShop is able to target only the first group, which has led to limited outreach As of now, the VNShop app has achieved 500,000 downloads on the Google Play Store.
In 2016, the number of eCommerce users reached 33.2 million, with an estimated 51% accessing platforms via mobile devices, translating to approximately 16.9 million potential 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 nên 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 chi tiết, kèm theo 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 target market will encompass not only banking users but also any individual with mobile access in phase 1, and will expand to include a broader user base through 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 Vietnam market
- 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 market is saturated with numerous ecommerce applications, as highlighted in our competitor analysis (3.1.4) Each competitor offers a mobile application, emphasizing the need for VNShop to establish a strategic position among these mobile platforms.
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 the development of a standalone application that users can trust for purchasing products and services, rather than being tied to traditional banking This independent mobile app aims to rank among the top four mobile commerce applications, offering a seamless and reliable shopping experience.
Currently, VNShop's potential customer base is restricted to mobile users with banking applications, significantly limiting its reach According to Statista, data shows that PC and web browsers remain the most popular channels for online purchases, highlighting the need for VNShop to expand its accessibility 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 participants indicated a lack of knowledge about our brand To address this issue, we need to implement a strategic communication plan focused on increasing customer awareness This will involve allocating a larger budget for advertising on popular websites such as VNExpress and CafeF, as well as promoting our brand through social media platforms like Facebook.
To enhance brand awareness, it is essential to implement a robust communication strategy, especially since the company's name is not yet widely recognized among customers Various methods can be employed to achieve this goal, and given the current circumstances, we can focus on targeted outreach and engagement initiatives to effectively strengthen our communication with the audience.
- 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 effectively implementing the marketing strategy.
- 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, increasing 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 will overcome the limitations of our current platform This expansion will occur in two phases: Phase 1 involves creating an independent application, while Phase 2 focuses on extending our services to a web platform, allowing us to engage 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, utilizing a comprehensive review of relevant literature and practical research focused on the company Through in-depth discussions and analyses, two key research questions are explored, with this chapter providing answers and recommendations for future research endeavors.
This thesis presents a comprehensive strategic marketing plan grounded in well-established theories The plan is developed through meticulous analysis of both internal company factors and external environmental influences A thorough understanding of these elements is essential for creating an effective strategic marketing strategy tailored to the company's needs.
In this thesis, I have integrated theoretical knowledge with empirical insights to develop a strategic marketing plan for VNSHOP The research commenced with an internal analysis, providing a comprehensive understanding of the company through interviews Following this, 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 company strategies through a comprehensive analysis of both the organization and the market landscape.
This strategic marketing plan serves as a roadmap for the company's future endeavors, guiding it towards achieving its objectives It encompasses various strategies, including marketing, customer, product, and internal strategies, to ensure comprehensive growth and success.
Implementing these strategies will enhance the company's profitability and strengthen its brand image The strategic marketing plan includes comprehensive analyses: internal, customer, competitor, market, and SWOT, to assess the company's current market position These analyses identify effective solutions to existing challenges within the company It is essential for the strategic marketing plan to focus on long-term and holistic aspects, emphasizing interdepartmental collaboration Ultimately, this strategic marketing plan serves as an invaluable 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 and market position, a comprehensive analysis is essential This includes internal analysis, customer analysis, market analysis, competitor analysis, and SWOT analysis A survey was conducted during the customer analysis to gauge the brand's current standing against competitors Based on the findings from these analyses, a strategic marketing plan was developed that aligns 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
One limitation of this study is the lack of sufficient data due to the company's early stages, resulting in a reliance on secondary data sources such as publications and internet websites for analysis and situation assessment.
This thesis focuses on developing 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 The goal is to create a strategic marketing plan that effectively addresses the needs of VNShop and enhances its competitive position in the e-commerce landscape.
VNShop's strategy for the next three years must be adaptable due to the highly competitive and rapidly evolving ecommerce industry Annual reviews of the plan will facilitate future research opportunities.
- Research more throughout about customer situations
- How to use a specific channel for marketing purpose and measure result
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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
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
Please help answer the following questions
The information below will be kept confidential, please input as much as you can
This will not be shared with any third party
(Your name will be kept confidential) How old are you?
Your gender (male / female) What is your mobile phone number? (optional) What is your email address? (optional)
1) Have you ever bought anything online (via lazada, sendo, tiki.vn, adayroi, VNShop)?
2) What type of payment do you prefer when buying things online
Pay online via banking application
3) Do you know about or have used each of the following website or applications Please check the item that you have used
SURVEY QUESTIONS
This is the survey to know about brand awareness (how popular / famous) of our current company (VNShop) compare to its competitors
Please help answer the following questions
The information below will be kept confidential, please input as much as you can
This will not be shared with any third party
(Your name will be kept confidential) How old are you?
Your gender (male / female) What is your mobile phone number? (optional) What is your email address? (optional)
1) Have you ever bought anything online (via lazada, sendo, tiki.vn, adayroi, VNShop)?
2) What type of payment do you prefer when buying things online
Pay online via banking application
3) Do you know about or have used each of the following website or applications Please check the item that you have used