ACKNOWLEDGMENT
I wish to express my deep gratitude to my advisor and Committee Chairman,
Professor Thang for his useful guidance, suggestions and encouragement through out the
research work.
I also would like to extend genuine thanks to Mr. Huy, Ms. Tâm and other staffs at
VTCHCM company for their help and suggestion during the implementation of my research
study.
Thanks are also due to my friend, Dung, who had helped me during the customer
survey.
And the most wholehearted gratitude I wish to express to my parents and my brother
for their endless love, cares, encouragement and supporting to me during the course of my
study.
Last, I would like to thank overall professors from Solvay Business School and Ho
Chi Minh City Open University as well as my classmates for their supports via lectures,
discussions, debates, comments and feedbacks throughout my all Master program.
iii
TUTOR’S COMMENTS
I am writing to confirm that the project entitled:
MARKETING PLAN FOR MINI GAME ONLINE OF VTC COMPANY IN HO CHI
MINH CITY MARKET
Prepared by
Mr. THAI HOANG TU
Has satisfied the requirement for a Master’s project in Business and Marketing Management.
I, therefore, recommend that the project be presented.
3. INTERNAL ENVIROMENT ANALYSIS AND REVIEW OF CURRENT
MARKETING STRATEGIES OF VTCZONE .................................................................... 7.
3.1.Challenge ......................................................................................................................... 7.
3.2.Situation analysis .............................................................................................................. 7
3.2.1. Company analysis .................................................................................................. 8.
3.2.2. Customer analysis ................................................................................................. 8.
3.2.3. Industry attractive and competitor analysis .......................................................... 9.
3.2.3.1. Market position ..................................................................................................... 9.
3.2.3.2. Branding ............................................................................................................... 9.
3.2.3.3. Porter's 5 forces.................................................................................................... 9.
3.2.4. Collaborators ...................................................................................................... 13.
3.2.5. Climate ................................................................................................................ 13.
3.3.Review of current marketing strategies of VTCZone ................................................... 13.
3.3.1. Media relationship............................................................................................... 13.
3.3.2. Website: ............................................................................................................... 14.
3.3.3. Events ................................................................................................................... 14
3.4.SWOT analysis .............................................................................................................. 14.
3.5.Use Swot analysis's results ............................................................................................ 16.
3.5.1. Use Strength ........................................................................................................ 16.
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3.5.2. Stop weaknesses ................................................................................................... 16.
3.5.3. Exploit opportunity .............................................................................................. 16.
3.5.4. Defense against threats ....................................................................................... 16.
3.6.Collusion........................................................................................................................ 16.
4. NEW MARKETING PLAN FOR MINI GAME ONLINE OF VTC IN
HOCHIMINH CITY MARKET .......................................................................................... 17.
4.1.Positioning and Market Segmentation........................................................................... 17.
4.1.1. Positioning ........................................................................................................... 17.
7. CONCLUSIONS ................................................................................................................ 28.
BIBLIOGRAPHY ...................................................................................................................... .
APPENDICES
vi
LIST OF FIGURE
Figure 1.1 Framework of the study
4
Figure 2.1 Milestone of shorterm and longterm projections
vii
28
LIST OF TABLE
Table 1.1 Swot analysis
16
Table 2.1 Promotional programs
21
Table 3.1 Implementation plan
of business is performed on Registration Certificate No. 4116000735 that has been issued by
Business Registration Office - Department of Investment and Planning of HCMC.
VIET NAM MULTIMEDIA CORPORATION-VTC
BRANCH OF VIETNAM MULTIMEDIA CORPORATION IN HO CHI MINH CITY
Address: 43C - 43D Ho Van Hue Street, Ward 9, Phu Nhuan Dist, HCMC, VietNam
Tel/Customer Care: 19001593 - Fax: 08 3 997 6384
Website:
Services:
Supplying services directly
- Added value services on television (SMS) by 8x39.
- Online games: Qworld, Zhu Xian, Chi Bi.
Supplying services as an area contributor
- Space Cowboy, Audition, Crazy Kart, Cross Fire, FIFA Online 2, Ling Wang.
Supplying services in the future
- Mini games for cell phone.
- Educational Equipment and digital book for all ages.
Vision:
General Target
Making to be a strong brand, business activities specialize in field of multi-media that is based
on application of modern technics, multipartite cooperation relations, together staff with high
professional level, dynamic, enthusiastic and high discipline in order to bring to customer
services with rich healthy quality contents, high educational and aesthetic.
Target in details
2
- For the period from 2006-2010: Consolidating the structure; Enlarging cooperation relations;
Developing and supplying services based on application of modern technics; Investing in
infrastructure suitably and re-preparing for making brand.
identify strategic situation that company is facing. Strategies are developed for the company and
evaluated to choose the most suitable one for recommendation. Figure 1.1 illustrates the
framework of the research study.
3
Introduction
External Analysis
SWOT analysis
Strategic Choice
Internal Analysis
Alternative Strategy
Plan
Strategy evaluation
Marketing Plan, actions
Conclusion
Figure 1.1 Framework of the study
Scope and limitation of work
The objectives of this paper are only focuses on mini games online on Game Online market of
VTC game online in HCM branch. The reason to choose this product is that it contributes an
important proportion in company total revenue and that this one is still new in company
otherwise originating from China. There was a game VinaGame and Chinese business
development.
According to estimates, total revenue GO service market in 2008 reached about U.S. $ 80
million with the number of employees about 3700 people, they pay taxes to the state budget is
estimated at 287 billion. Also had many local enterprises producing games for the foreign market
(Gameloft, GlassEgg) or the first time the two parties cooperate to develop games like
VinaGame projects T812 and entertainment portal Zing.
Among many of publishers in Vietnam, 95% share of the three "big" is the VNG, VTC
and FPT. Although a member of the club and digital content of the Vinasa (Business Software
Association of Vietnam), but the competition between three firms are very large, from human
resources to compete, won the bidding rights to release game representatives of competing or
tearing each other's posters and internet service in the shop.
The war between the Publishers has created an extremely vibrant market, but also quite
shocked and unbalanced. Running after profits, vendors are scrambling to draw money from the
player that many become unbalanced game content, product life cycles are shortening.
Although all three major publishers and a few small companies were prepared to invest in
Vietnam game production, but the amount of investment compared to total profits or less than
the amount invested in the game's new foreign still too small. Not easy to make games, but it is
not done in Vietnam. Project T812 (Thuan Thien Kiem) VNG's is not as bad a start.
5
Businesses are afraid to invest in production game for two main reasons: fear not
compete with imported games and lack of manpower. business issues that concern most gameoriented of the State on the digital content industry and online gaming.
2.1.2. Economic remarks on the regulatory environment
This seems a good time for the Goverment, enterprises and communities of gamers
together links to adjust and supplement to better the industry. If all the parties to seriously look
into the factor market, invested properly, the online game market in Vietnam certainly more
potential for Vietnamese enterprises.
In addition, provisions to release the game to take a year to register, according to the
2.1.3. Major Political Issues affecting the business climate
The Socialist Republic of Vietnam (SRV) is a one-Party state controlled by the
Vietnamese Communist Party (VCP). The VCP’s constitutionally mandated leading role, the
occupancy of nearly all senior government positions by Party officials, and the Party’s extensive
network down to the village level and through mass organizations ensures the primacy of
guidelines from the Party’s Political Bureau (Politburo). The Party and the Government have a
long-standing policy of not tolerating dissent and of prohibiting independent political, religious
and labor organizations. The National assembly, chosen in elections in which all candidates are
approved by the Party and most are Party members, remains largely subservient to the VCP, as
does the judiciary.
Besides, Ministry and City Department lack of uniformity in the assessment regulations
have also brought difficulties to the business. The publisher and investors always need a stable
business environment, orientation, support, commitment and close cooperation between the
Goverment management policies.
3. INTERNAL ENVIROMENT ANALYSIS AND REVIEW OF
CURRENT MARKETING STRATEGIES OF VTCZONE
3.1 The Challenge
-
Company has many mini game online Products, about 10-20 games, include: 13 cards, 3
cards, 6 cards, Caro, Domino, Sea Horse,etc…
Goals of Marketing Plan are to build a new strategy for all products which are outside of
market, purpose for pull customers, gamers. To build a image.
-
Nonfinancial Goals:
To retain its present image as high quality MGO in online Game market.
Become a TOP mini game company of HCM area.
Single ID and single currency (V-Coin) system
Culture: Customer – oriented, Team Work.
Strengths:
o Have a large of number gamers who come from another GO of VTC online.
o VTC Online is one subsidiary company of VNPT Group.
o Easy for customers to access and do transactions on Game
Weaknesses:
o Working procedures have been built, but still not professional.
o Human resource is not stable. The structure with the majority of young staffs will
limit the ability to solve the problems in daily activities due to the lack of
experiences and qualification.
Market share:
o To gain 30% account market share in Game market. MGO is new market.
o 10 games / Market leader / Apx. 40% market share (Dec 2009)
o
40M+ registered / 15M+ active / 350K+ CCU / 4M+ paying
3.2.2 Customer Analysis
Pearl Research, (America) a market research company announces a new research, title is
“Game Online market in VietNam”, forecasts numbers of gamer in VietNam will exceed
10M at year 2011. In 2008, Vinagame estimates Vietnam will have 1,5M regular gamer, it is
primary young people.
Morever, new rising competitors also gain a not small marketshare, and not considerable.
But we must notice.
3.2.3.2 Branding:
* Point of Parity
- Easy-to-use / Conven ient package design
- Nice flavors
- Reasonable price
- Entertainment
* Point of Difference
- to produce production/software on demand. (Market tendency has many private
outsourcing software production companies in VietNam)
- Have many attractive promotion programs.
- Folky interface, nearby with consumers.
- Updating continuously new items.Offline activities, events holding enclose with enrich
awards.
3.2.3.3 Porter’s 5 force:
We apply Porter’s 5 force to estimate competitors, such as:
Potentials entrance: Threat of new entrance
- Vietnam Mobile Operators such as MobiFone, VinaPhone, Viettel, MobileVietNam
etc,… which long-term tendency will extends activities into MGO market interacting
mobile phone systems, they will be strong competitors with big capital resources.
- Foreign game companies will see Vietnam GO market which develops strongly (China,
Korea, Malaysia etc), they will invest into Vietnam in order to speed up business growth
of enterprises.
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-
name to Stock Company Vina Group (VNG), the renamed VNG also can be seen as a strategy to
further development in the entertainment market online.
Not only release the game imported from China and Korea, the VNG also began the game with
its own brand by VNG research and development. In March 2010, VNG has officially launched
Thuan Thien Kiem game, games by VNG research and development based on history and culture
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of Vietnam.
February 2008, Zing Ads was founded to provide online advertising services on the electronic
portal Zing. Zing Ads business support standard IAB ads, Rich Media, tracking system. Besides
online advertising services, Zing Ads also provides additional consulting services and
implementation of marketing campaigns online on the portal Zing.
VNG products available online from the online game as Swordsman (1 and 2), Feng Shen, Ching
Toys, Fantasy, Boom Online, Zing Dance to the rise of Internet services such as e-Portal Zing,
Social Networking ZingMe, Zing MP3, 123mua. The settlement of the VNG service can use the
form to buy prepaid cards for VNG.
Human Resources: staff of VNG is 1100 people, of whom 50 key employees
Image and personality: how is the competitor positioned and perceived?
Young consumers most like to play MGO of Zing, due to Zing free for a long time to
attract consumers.
Many customers love Zing brand before, so it is very easy to use and accept Zing as a
image for local teen.
Zing, VinaGame usually held offline and promotion programs to build brand. They
are taking a Game Top Vietnam, and also Top1 mini online games in Vietnam. HCM
city in its own market, they dominate 40% market share in online games.
At the awards ceremony ICT Vietnam 2009 by the Ministry of Information and
Communication held in March 2010, VNG has been honored with three awards:
Enterprise of the best content, young entrepreneurs with potential The best
development, enterprise products, digital content brand's most successful Vietnam.
Weakness:
According to sources from the forum and the opinions of gamers, they reflected the
company VNG is a process not transparent, often lock the accounts that they suspect.
Gamer's VNG also said they could not do anything when VNG locked their accounts
and did not inform them that any specific information.
b/ Competitor is Ken/BenThuongHai
-
Website: ;
BenThuongHai game was built by five friends, they use the home office and set
up the game. First time their illegal business with a benthuonghai.com domain,
then they switch to ken.vn and now their domain name is .
Image and personality: how is the competitor positioned and perceived?
One of the sites business gambling mini-game and first in VietNam is a gamer
community groups to accept.
Game of their mostly gambling.
Security system is not good, but thanks to the policies in time should the
gamer acceptable.
Objectives: what does competitor commit resources to, for high growth or
3.2.5 Climate
SLEPT analysis:
- Social-cutural: Vietnam is proud of stable sociocultural environment. Increasing the
GDP, earning helps people enjoy higher level in living standard. Children get better
education, people are more customer-oriented, wiki-oriented. About 7 million of internet
users, ¾ of these users are officers and students, high knowledge of computing and
internet competence. 1/3 of gamers in HCM city choose mini games online as their
relaxing. A large number of potential gamers arewhat to be expected in near future.
- Legal: Game Online is supported by the Ministry of Communication và Informarion.
Vietnamese government is re-controlling harmful GO affects. But it still encourages to
develop GO with a healthy entertainement role in according to culture, life way of
VietNam people.
- Economic: In year 2010, Vietnamese GDP growth rate reached 8 %. Gamer spend much
of their budget for relaxing. The economic is high inflation rate recently.
- Political: More cooperation with other governments. More foreign investors do business
in Vietnam.
- Technology: Vietnamese is reported to be one of the countries that have good computing
technology in Asia. 1/5 Vietnamese population have their own PC. Among them, a
million people have internet access at home or at work. Vietnam Game software
production companies produce gradually MGO for theirselves companies, or export,
outsource to overseas.
- Future: Vietnam Companies can produces many Game for theirselves. Besides, MGO is
produced on 3G platform with growth in depth. Mobile operators are concerning and
finding out to stimulate this needs. This is a hot digital content provider market in nearing
future.
3.3 Review of current marketing strategies
Currently VTCZone major trading online games such as Audition, Tru Tien ... The company's
marketing strategy focuses on three main strategies: media, website, events.
3.3.1 Media relations:
- To encourage competition among gamers: online competition on game website in order
to stimulate spirit and make exciting in game playing.
- To encourage gamers to build gamer community and contact groups.
Objective/Evaluation:
- Increase image, brand perceptions.
- encourage to increase accounts.
- increase revenue growth.
- Increase game loving.
3.4 SWOT Analysis
A SWOT analysis of the business environment can be performed by organizing the
environmental factors as follows:
Internal
Factors
Management
Strengths
Weaknesses
Currently the company has large number of
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Small size can restrict options
gamers from other games in the network's
online VTC
VTC is a part of Communication information
limit the ability to solve the
problems in daily activities
due to the lack of experiences
and qualification.
Finance
The parent company financial support when
needed.
Many good relationships with banks
-Small budget for marketing
-Financial resources is not
strong enough to finance the
innovation to increase
working efficiency.
Manufacturing
- The company hired local companies to
produce on game.
- System with modern equipment, ensuring
speed and backup.
Security system should be
improved
R&D
Continuing efforts to ensure quality in
Consumer income is high
Legal/Regulatory
-High competition
-Competitors (foreign
games) having better
technique and experiences ;
Free price.
Some bad games affect
gamers, children playing
game.
-Legal is continuously
changing.
Table 1.1: swot analysis
3.5 Use SWOT analysis’s result:
3.5.1 Use the strengths:
- We should use strong umbrella brand(VTC) and available resources in order to occupy
market rapidly. Besides, we need to find be trust outsourcing partners to create quality, trust
products in market.
3.5.2 Stop weaknesses:
- To focus on researching security system for better, whole we and government build
policies to punish hackers cheating people.
- Recruit experienced manager positions to manage and exploit, operate games
professionally.
3.5.3 Exploit opportunities:
o BLOG
o Pull from the forums, viral marketing.
Price sensitivity: Have much money.
4.1.3 Gamer segment
Description: Gamer playing in GO of VTC, competitors.
Percent of sales: 50% Sales
What they want:
o They want to play other games much more smoothly, apart from playing games
for entertainment.
o To bet, to compete.
How to reach them
o Marketing go through Website.
o BLOG.
o Pull from the forums.
o Marketing Strategy programs, Promotion programs.
Price sensitivity: flexible price. Sometimes free.
4.1.4 Other segments
Description:
o The rich people like gambling, entertainment by playing online games.
o Internet users love to play the traditional games.
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o
Interface performs folk style, nearing Vietnamese.
Extra services: Call center (FAQ), loyalty program, offline seminars.
Customer Interface:
We use the 7Cs supporting factors of the e-business model to build up Customer interface.
- Context:
Integrated: Aesthetic & Functional
Aesthetic: To appeal as the most emotional way
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-
Website* is more functional than aesthetic. The graphic is used for learning
illustrations.
Content:
Offering mix
Appeal mix
Multimedia mix
Products
Low price, Multiple
level, High quality
Text, Audio, Image,
Video, Graphics
Content & Layout Configuration: Users select layout + content based on interests.
Favorite: Member could save their favorite class for later reference
Recommendation: Based on past actions, member will get the automatic
recommendation for suitable products.
-
Communication:
Mass Mailing: Frequently send e-newsletters to members
FAQs: Answers for Frequently Asked Questions
Live online dialogues: Member could contact directly online with VTCzones online
game moderators
User Input: User could rate and give comments for levels
-
Connection:
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