MINISTRY OF EDUCATION & TRAINING UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BUSINESS SCHOOL MBMM PROGRAM TRAN MINH HAO MARKETING STRATEGY FOR CLINICAL EXPRESS SERVICE IN TNT EXPRESS IN VIETNAM MARKET FINAL PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT TUTOR: DR. NGUYEN THANG Ho Chi Minh City 2007 i COMMITMENT I am bound that my final project titled “Marketing Strategy for Clinical Express Service in TNT Express in Vietnam market” was developed by myself. I am responsible for all the data and arguments in the thesis. ii ACKNOWLEGEMENT To finish this project, I would like to express my sincere thanks and appreciation to MBMM1 professors who have facilitated and helped me with all their kindness and assistance. My special thanks to Doctor Nguyen Thang, Marketing Manager of Nokia, has encouraged and given me a lot of advice on doing this thesis. Without Doctor Nguyen Thang's advice, a lot of difficulties would surely arise during my process on this task. My greatly appreciation to Ms. Tran Thi Xuan Dung, Special Service Manager, TNT Express Co., who has supplied me with valuable data and information for this project. There were lot of support also from all TNT & DHL Express Country Manages, Managers, Supervisors, and sales executive groups who created favorable conditions, gave me relevant data even stayed on my behalf during the time I was busy with this research dissertation. Last but not least, my family has encouraged me always, made me confident and delighted to finish this research dissertation. As all data concerning TNT Vietrans Express Vietnam & DHL VNPT Express business must be kept confidential for at least 3 years from the time of the hand-in of the thesis (2007), so I am regretted that I can not put this report in the library Ho Chi Minh City Open University for reference at this time being. Once again, all assistance helping me with this thesis is greatly appreciated. iii EXECUTIVE SUMMARY Clinical Trial is an important part of the R&D process of new drugs, initiated by pharmaceutical companies. In Asia, the clinical trial market is booming. The pharmaceutical market grew by seven per cent on a global level to US$600 billion in Asia, while the Asia Pacific region is expected to grow by up to 12 per cent annually. To support the growth of the clinical trials sector in Asia, TNT Vietrans Express launched Clinical Express Service, which started in Vietnam in 2004. How to market its services to customers successfully in a keen competition market is being a great issue for TNT Vietrans Express. Within this thesis, we will draw out the marketing strategy for TNT Express Vietnam to develop its Clinical Express (CE) product. The qualitative methodology by using in-depth, open-ended interviews, direct observations and written documents is mainly used in this thesis combined with quantitative methodology through surveys, existing business reports, and business statistics. Further more, services marketing can be combined with marketing mix as mentioned by Adrian Buckley in his book of "The Essence of Services Marketing", Prentice Hall Europe 1993 to be suggested to apply in the case of TNT Express Vietnam. With a proper services marketing strategy, we can drive our company in the right direction to win our competitors in the market where fierce competition always exist in all field of business, including clinical express industry. iv TABLE OF CONTENTS Page AKNOWLEDGEMENT i EXECUTIVE SUM MARY ii TABLE OF CONTENTS iii LIST OF TABLE iv LIST OF FIGURE iv PART 1: INTRODUCTION 1.1 INTRODUCTION 01 1.2 PROJECT OBJECTIVE 02 1.3 SCOPE AND LIMITATION OF PROJECT 03 1.4 METHODOLOGY 04 1.5 FINAL PROJECT STRUCTURE 05 PART 2: SITUATION ANALYSIS 2.1. EXTERNAL ENVIRONTMENT ANALYSIS 06 2.1.1 Vietnam’s medicine expense 06 2.1.2 Clinical Industrial Analysis 07 2.2. INTERNAL ENVIRONTMENT ANALYSIS 13 2.2.1 TNT Express Worldwide Profile 13 2.2.2 Survey results and analysis 14 2.3 SWOT ANALYSIS OF TNT CLINICAL EXPRESS SERVICES (CE) 16 v PART 3: MARKETING STRATEGY FOR CLINICAL EXPRESS SERVICE IN TNT EXPRESS IN VIETNAM MARKET 3.1. TNT CE OBJECTIVES FOR THE YEAR 2010 17 3.1.1 The overall objectives 17 3.1.2 The specific objectives 17 3.2 CE MARKETING STRATEGY 18 3.2.1 Market Segmentation and Targeting 18 3.2.2 Pricing Strategy 21 3.2.3 Marketing Communications Mix 22 3.2.4 Logistics and other aspects 24 CONCLUSIONS 25 BIBLIOGRAPHY 26 APPENDICES 27 vi LIST OF TABLES Table 1: GDP - INCOME – MEDICAL EXPENSE 2006-2010 6 Table 2: CE PRODUCT REVENUE 9 Table 3: THE COMPARISON OF PRICE OF CE SHIPMENT 10 LIST OF FIGURES Figure 1: CHART OF RESEARCH FRAMEWORK 4 Figure 2: PERCEIVED MARKET SHARE OF TOTAL CE SHIPMENTS 10 Figure 3: THE RATIO OF CUSTOMER WOKING DAY/WEEK 14 Figure 4: THE RATIO OF TESTS FOR PATIENTS/DAYS 14 Figure 5: THE REASONS FOR SELECTION OF LAB AND SERVICE 15 Figure 6: THE FACTORS MAKE CUSTOMERS LIKELY TO USE LAB 15 Figure 7: SWOT ANALYSIS OF TNT CLINICAL EXPRESS SERVICE 16 Figure 8: MARKET SEGMENTATION AND TARGETING 19 vii ABBREVIATION ABC AF AFC AP ASEAN AWB CAGR CLF CRO CTN DOX DHL EMS EU FDI FedEx GDP LMP R&D SQ TNT UPS WTO Air Business Corporation Air France American Forwarding Corporation Asia Pacific Association of Southeast Asian Nations Airway Bill Compound Annual Growth Rate Cost, Insurance and Freight Clinical Research Organization Clinical Trial Network Documents Express Dalsey, Hillblom, Lynn Express Mail Service European Union Foreign Direct Investment Federal Express Gross Domestic Products General Statistics Office Research and Development Singapore Airlines Thomas Nationwide Transport United Parcel Service World Trade Organization 1 PART1: INTRODUCTION 1.1 INTRODUCTION A Clinical Trial is an important part of the R&D process of new drugs, initiated by pharmaceutical companies. In general, a new drug R&D process comprises of three main phases: (1). Body fluid samples (diagnostic specimen) taken from patients are sent to central laboratories; (2). Doctors are responsible for taking samples and shipping them to the laboratory; (3). Laboratory takes care of analyzing the samples. TNT is mainly involved in phase 3 trials, where drugs are tested on human patients: the transportation of testing kits to doctors carrying out the trials, as well as blood and urine samples to the laboratory following the successful administration of drugs to patients. TNT started Clinical Trial Logistics in 1993 worldwide. Till now, as the Established Market Leader, TNT has global partnership with major clinic research organizations and pharmaceutical companies around the world and is now Clinical express service provider for many international hospitals & pharmaceutical company and government institutes. In Asia, the clinical trial market is booming. Recent revisions to the pharmaceutical industry’s regulatory laws as well as improved patent laws in countries such as Japan, China and India, have led to the burgeoning clinical trials market in Asia. The pharmaceutical market grew by seven per cent on a global level to US$600 billion while sales in Asia grew by about nine to ten per cent. Looking forward for the next five years, the Asia Pacific region is expected to grow by up to 12 per cent annually. To support the growth of the clinical trials sector in Asia, for Viet Nam, TNT launched Clinical Express (CE) service, a suite of logistics services for the 2 clinical trial logistics market in April 2004. Targeted at pharmaceutical companies, central laboratories and contract research organizations engaged in clinical research and drug development. The biggest achievement TNT Vietnam got was with 22 nd Seagames (5- 13, Dec 2003) when it did collect and moving thousands of urine specimen of 22 nd Seagames Athletes from 33 locations all over country and deliver to the Beijing laboratory within 36 hours at minus 20 degree for purpose of doping test. For the development of CE service, TNT not only recognizes the importance of clinical trial logistics but also is well positioned to meet the growth and challenges presented by the sector through the innovative solutions and ability to sustain and develop the services. However, there is not yet a proper marketing strategy for CE Service in Vietnam market at the time being. This research dissertation aims to do that: to provide an understanding of the theory and practices in the development and execution of services marketing strategy for the TNT Clinical Express Service (for the period to the year 2010). 1.2 PROJECT OBJECTIVE The main objective of this research study is to find out the situation of services marketing strategy for Clinical Express Service of TNT Express in Vietnam market at this time being. The specific objectives are: Concerning the research objectives, at least there are four specific objectives which should be achieved in this research as follows: - To have an overview of Vietnam Market in a World chain market which impacts on CE service, especially on TNT Clinical Express in Vietnam. - To analyze and understand the current external environment aspects. - To analyze and understand the current internal environment aspects. [...]... CE express industry and TNT Express By analyzing all strengths, weaknesses, opportunities and threats of TNT CE service, we are able to design a relevant services marketing strategy in order to develop the TNT Clinical Express Service successfully for the period 2010 The main marketing strategies include: market segmentation and targeting, pricing, marketing communication mix and setting up of TNT. .. the TNT brand and increase top-of-mind awareness of the comprehensive range of reliable on-demand express delivery service - Leverage the TNT Life Sciences team by setting-up a joint business development pipeline, conducting Life Sciences team meetings and continuing to recruit new participants 3.2 CLINICAL EXPRESS SERVICE MARKETING STRATEGY The main target of TNT is to be the leading branch in Vietnam. .. with both external and internal environments analysis Moreover, the survey results from the market through which we can get the clients' needs towards TNT CE service as well Some major findings are also pointed out in SWOT analysis of TNT CE service Part 3 – The marketing strategy supplies the marketing strategy for TNT CE service in Vietnam market to meet TNT CE objectives for the period to the year... specimens - Customer service is not good compared to TNT - Losing market share to TNT To realize the strengths and weaknesses of those competitors is vital This will help to form strategy in marketing for CE service in more proper way 2.2 INTERNAL ENVIRONMENT ANALYSIS 2.2.1 TNT Express Worldwide Profile - TNT set foot in Vietnam since 1991 In 1997, a join-venture company between TNT & Vietrans Co.,... market size is about 1-2 Mil USD in Vietnam 7 Being a member of WTO, doing business in the integration in the region and in the world, strong growth of international trade is expected to continue, particularly once Vietnam becomes a member of the WTO This bring about a good chance for TNT CE service, for it deals with special international shipment 2.1.2 Clinical Industrial Analysis 2.1.2.1 Asia Clinical. .. and resulting account performance in order to build TNT sales and marketing collateral around express- linked logistics services 25 CONCLUSIONS Clinical Express is a new, fast growing air service and TNT had just successfully launched it in Vietnam since 2004 Although TNT has been the top leader since the date of launching this service, it seems to face with more difficulties in the near future, when... consultancy VN nominated WC, DHL or FedEx PART 3: MARKETING STRATEGY FOR CLINICAL EXPRESS SERVICE IN TNT EXPRESS IN VIETNAM MARKET 3.1 TNT CE OBJECTIVES 2007-2010 3.1.1 The overall objectives: - Grow the CE revenue by 20%/year to 1 Mil Euro in 2010 - Market CE a leading branch in Vietnam 3.1.2 The specific objectives - Achieve profitable revenue growth through volume acquisitions at optimized pricing - Focus... Asia Clinical Express Industry Overview As CE Vietnam is allocated in the Asia region, we shall look at CE of TNT Vietrans Express in the conjunction with Asia Clinical Express Industry Since the late 1990s, Asia has increasingly been considered an upcoming hotspot by the pharmaceutical industry when focusing on future global research and development (R&D) activities The clinical trial market in Asia... Managing Services Marketing, 3rd Edition, The Dryden Press 11 Karen P Goncalves (1998), Services Marketing - A Strategic Approach, International Edition, Prentice Hall 12 Masaaki Kotabe & Kristiaan Helsen (2000) , Global Marketing Management, John Wiley & Sons Inc 13 Philip Kotler (2000) , Marketing Management, Prentice Hall Intemational Inc, Millennium Edition 27 14 Raymond Kent (1999), Marketing. .. Business Press 15 Tony Proctor (2000), Essentials of Marketing Research, Prentice Hall, Second Edition Other Sources: Annual Reports of TNT Express Vietnam – 2005 TNT Vietrans Express Profit & Lost Report – Year 2004, 2005, 2006 Clinical Express Breakdown Report – Year 2005 & 2006 Country Business Review of DHL VNPT Express Vietnam, 23 March 2007 Asia Pacific Marketing Sizing -Vietnam Market Sizing, . SWOT ANALYSIS OF TNT CLINICAL EXPRESS SERVICES (CE) 16 v PART 3: MARKETING STRATEGY FOR CLINICAL EXPRESS SERVICE IN TNT EXPRESS IN VIETNAM MARKET 3.1. TNT CE OBJECTIVES FOR THE YEAR. also pointed out in SWOT analysis of TNT CE service. Part 3 – The marketing strategy supplies the marketing strategy for TNT CE service in Vietnam market to meet TNT CE objectives for the. OBJECTIVE The main objective of this research study is to find out the situation of services marketing strategy for Clinical Express Service of TNT Express in Vietnam market at this time being. The