MINISTRY OF EDUCATION & TRAINING UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BUSINESS SCHOOL MBMM PROGRAM NGUYEN HUY HOANG MARKETING STRATEGY FOR TNS VIETNAM SERVICES FINAL PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor: Dr. Dang Ngoc Dai Ho Chi Minh City 2007 DECLARATION I hereby enclose 8 hard copies of my final project entitled “Marketing strategy for TNS Vietnam services” to the Universiteù Libre De Bruxelles – Solvay Business School & Ho Chi Minh City Open University. This final project is to the best of my knowledge and I certify that all information contained in this project is true and accurate in every respect and may be considered for any further checking by the Universities. THANK YOU! In preparing this final project, I’ve already received valuable feedback and comments from Dr. Dang Ngoc Dai, my tutor for this project, which I do highly appreciate and treasure. In finishing my Master of Business & Marketing Management program, I would also like to show my big gratitude to my wife who has been supporting, encouraging and being with me all the time. I would also like to thank Professor J.P. Baeyens and Dr. Tran Anh Tuan who have designed and implemented this course the 1 st time in Vietnam. My special thanks are to my line manager, Mr. Fabrice Carrasco and TNS Vietnam who have sponsored and offered lots of support for me to finish this Master program. To my personal feeling, this Master program is really valuable, worth the money and efforts and helpful both for my career and my personal development in the future. Thank you all for your kind support! TABLE OF CONTENT Chapter 1: Introduction 1.1. Background of market research industry………………………………………………………page 1 1.2. Objectives of the final project………………………………………………………………………….page 3 1.3. Organization of the final project…………………………………………………………………….page 4 Chapter 2: Business environment analysis 2.1. Overview of TNS Global and TNS Vietnam………………………………………………page 5 2.2. External business environment analysis……………………………………………………….page 8 2.3. Internal business environment analysis………………………………………………………page 13 Chapter 3: Marketing strategy 3.1. Vision, mission and objectives for TNS Vietnam………………………………….page 15 3.2. Marketing strategy………………………………………………………………………………………………page 17 3.2.1. Segmenting………………………………………………………………………………………………page 17 3.2.2. Targeting……………………………………………………………………………………………………page 19 3.2.3. Positioning……………………………………………………………………………………………… page 19 3.3. Marketing mix………………………………………………………………………………………………………page 20 3.3.1. Marketing mix – Conception…………………………………………………………….page 20 3.3.2. Marketing mix – Communication……………………………………………………page 24 3.3.3. Marketing mix – Channeling…………………………………………………………….page 25 3.3.4. Marketing mix – Convincing…………………………………………………………….page 25 3.4. Suggestions and recommendations………………………………………………………………page 26 Reference list…………………………………………………………………………………………………………………page 31 Page 1 of 31 CHAPTER 1: Introduction 1.1. Background of market research industry: As a major force in the global market research industry, there is a need for TNS to have an overall understanding of the global market research industry key trends which are highlighted as below: ̌ Global market research turnover tops US$23.3bn in 2005, representing year on year growth of 5.7% and a net growth of 3.0%. Average growth rates over the last four years tops 5% with average net growth at 3%. ̌ Growth rates stabilize in Europe and North America, whilst Asia Pacific continues to outpace all other regions (see chart 1). ̌ Over two thirds of global market research turnover is generated in the top 5 markets which are USA, UK, France, Germany and Japan. France moves into 3 rd position, overtaking Germany, amongst the largest research markets in the world. ̌ China records net growth of almost 25% and will be pushing for top 5 ranking within 5 to 6 years if growth continues at this rate. ̌ Growth for 2006 is expected to continue at 4-6%, driven by good economic conditions and increasing client demand for continuous multi-national research. ̌ Significant market consolidation, with 88 acquisitions taking place during 2005. The top ten companies generated 58% of industry revenue in 2005. Page 2 of 31 ̌ Increased outsourcing and off-shoring has enabled cost savings of 30 - 40% for data processing, and programming and coding online surveys. ̌ Broadening range of skills required from researchers. In response, companies are hiring people from key client sectors and have developed extensive training programs to improve consulting, strategic, IT and relationship management skills. ̌ Companies continue to invest heavily in greater technological capabilities and keep competitive barriers high. ̌ Use of online market research continues to grow rapidly, resulting in higher response rates, faster delivery of results and lower data collection costs. Online research accounts for estimated 13% of spend. Specifically looking into Asia Pacific region which TNS Vietnam is actively doing business; market research turnover reached an estimated US$3,270 million (see chart 1), with year on year growth of 8.9% and net growth of 7.4%. This is a continuation of a strong growth trend from 2001 onwards. Since 2001 research sector in Asia Pacific has consistently grown faster than the global growth rate in real terms; in common with other industries in the region. Growth is strongly linked to macro economic conditions in specific countries, such as Japan, Australia, Korea, China, and India. Vietnam market research industry is expected to grow at 15% in 2005 and 14% in 2006 – quite higher than the average growth rate of Asia Pacific region; mainly driven by the strong growth of TNS Vietnam, AC Nielsen Vietnam and other emerging local market research companies. Page 3 of 31 Chart 1: Global & regional turnover 2005 and net growth rate on 2004 – Source: ESOMAR industry report 2005 1.2. Objectives of the final project: In line with the strong growth of market research industry in Asia Pacific and Vietnam, TNS Vietnam is facing the challenges of how to apply TNS Global strategy into Vietnam successfully and build a suitable and effective marketing strategy to ensure the strong and sustained growth rate of the company in the future. This final project is conducted in order to have deep analysis and understanding of what TNS Global is doing in the global market and what TNS Vietnam is doing specifically in Vietnamese market in line with its global strategy. Using the Segmenting-Targeting-Positioning marketing model as a specific tool, this project aims at suggesting the suitable marketing strategy and marketing mix for TNS Vietnam, trying to build a comprehensive and thorough guideline for TNS Vietnam marketing activities in the coming years. 45 36 4 1 14 Europe ($10.4bln +2.4%) North America ($8.3bln +2.1%) Asia Pacific ($3.3bln +7.4%) Central & South America ($1.0bln +1.5%) Middle East & Africa ($0.3bln +6.7%) Page 4 of 31 1.3. Organization of the final project: Apart from the appendix and the reference list, this project includes 3 chapters. Chapter 1 “Introduction” analyzes the key trends of market research industry globally and in Asia Pacific and Vietnam specifically. This chapter also provides the objectives and the organization of the final project. Chapter 2 “Business environment analysis” provides an overall understanding of what TNS & TNS Vietnam are doing in the market; analyzes the external and internal business environment; from those analyses this chapter tries to provide a full picture of strengths, weaknesses, opportunities and threats of the business environment which, based on that, we will try to build the marketing strategy and marketing mix for TNS Vietnam. Chapter 3 “Marketing strategy” tries to apply the global marketing strategy of TNS Global into Vietnam situation and build the marketing strategy and marketing mix for TNS Vietnam together with the suggestions and recommendations. Page 5 of 31 CHAPTER 2: Business environment analysis 2.1. Overview of TNS Global and TNS Vietnam: TNS Global (Taylor Nelson Sofres Plc.) is one of the world's leading market information groups. Through its global network of operating companies in 70 countries, TNS collects, analyzes and interprets information, as well as delivers innovative thinking and excellent service, to help local and multi-national clients better understand the needs and wants of their customers. In particular, TNS provides research, advice and insight on market segmentation and positioning, brand and advertising research, new product development, and stakeholder management, supported by a range of Business Solutions. TNS specializes in fast-growing and established business or industry sectors that require a global presence or the transfer of highly developed expertise which are Automotive; Consumer; Consumer Panel; Finance; Healthcare; Internet, Television and Radio Audience Measurement; Media Intelligence; Polling and Social; Technology. Below are some key facts of TNS Global: ̌ Global network spanning over 70 countries. ̌ Revenue: £1bn in 2006, the key source of revenue comes from Europe however ALM (Asia-Latin America-Middle East region is growing and becoming more and more important; see chart 2). ̌ Over 14,000 full-time employees world-wide. Page 6 of 31 ̌ 9 Market Sectors with dedicated researchers – however Consumer (Qualitative, Quantitative, Consumer Panel researches) and Media are still the biggest with more than 50% revenue contribution – see chart 3). Chart 2: TNS Global revenue split by region in 2005 % – Source: TNS Global Chart 3: TNS Global revenue split by sector in 2005 % – Source: TNS Global As a member of TNS Global, TNS Vietnam is currently the leader in market information industry in Vietnam with the market share estimated at 35% in 2006 12 23 65 ALM North America Europe 34 19 11 9 14 13 Consumer Media Business Svs Technology Healthcare Other [...]... provide some recommendations / solutions for a marketing strategy in long-term and marketing mix in short-term for TNS services among the Vietnamese market which is becoming more and more competitive and also in line with the overall marketing strategies of TNS Global which TNS Vietnam belongs to Chart 6: TNS Vietnam organizational chart in 2007 – Source: TNS Vietnam TNS Vietnam Managing Director Admin Dept... As TNS Vietnam works under the umbrella of TNS Global which is one of the biggest market information companies in the world; understanding, analyzing, building and applying the vision, mission and the marketing strategy of TNS Global into Vietnamese context are the prerequisites for the current and future successes of TNS Vietnam 4 TNS Vietnam vision is “To be the leader in delivering value added information... consumers’ behaviors; ̌ TNS Vietnam has senior research skills with high quality; ̌ TNS Vietnam has a very strong regional and global network; ̌ TNS Vietnam is doing business in a very favorable market environment, esp since Vietnam joined WTO in November 2006 Weaknesses: ̌ In terms of marketing: TNS Vietnam currently has strong focus on Sales, Operations and Client Service not much on Marketing This puts... clients of TNS Vietnam ̌ Vietnamese government is determined to push ahead with the marketoriented reforms, corruption clamp-down, bureaucracy ongoing reforms in a bid to speed up the approval regime for foreign investors and make it more transparent These will create a better business environment which TNS Vietnam can also benefit and push for its future growth ̌ The economic boom has lifted many Vietnamese... clear that TNS Vietnam source of revenue is mostly from Consumer and Media sectors benchmarking with TNS Global This leaves TNS Vietnam a great opportunity and also a big challenge to further push for other revenue sources from Automotive, Finance, Telecoms, Healthcare and Polling & Social sector clients Page 19 of 31 Chart 7: TNS revenue split by sector in 2005 % – Source: TNS TNS Vietnam TNS Global... with the Marketing Value Proposal (Image, Product, Price) and choosing the suitable channels to bring TNS services to target clients TNS Vietnam channeling strategy can be through the below channels: ̌ Delivering the services directly to Clients ̌ Delivering the services through TNS regional and global network ̌ Delivering the services through Clients’ advertising, PR agencies ̌ Delivering the services. .. panel and media currency in Vietnam, being able to provide 360” marketing support for all elements of marketing research Page 14 of 31 ̌ TNS Vietnam is the market leader in Vietnam in marketing research; being here more than 1 decade and has real understanding and deep insights into Vietnamese consumers’ attitude, awareness, media habits, and purchase and usage behaviors ̌ TNS Vietnam has a very strong... package of services for Clients from customized research, business solutions, consumer panel and media currency in Vietnam, being able to provide 360” marketing support for all elements of marketing research b Service excellence and cost efficiency: TNS Vietnam should focus on providing reliability to its Clients and leveraging the core strength that TNS Vietnam is the only research agency in Vietnam. .. (SCA) of TNS Vietnam, ensuring the company’s future and sustained successes a Client orientation: TNS Vietnam should focus on building partnership by having 7 specialist sectors together with offering 5 research areas of expertise fitting with Clients’ specific needs The key differentiation point which TNS Vietnam should leverage on is that TNS Vietnam is the only market information company in Vietnamese... 1996 and has been in Vietnamese market for more than 10 years At the moment, the company has more than 250 full-time staff, 1,500 field force and 11 offices across Vietnam TNS Vietnam was ISO accredited since 1999 and has been interviewing over 500,000 Vietnamese people since then The company is currently the market leader in Vietnam with market share estimated at 35% in 2006 TNS Vietnam is also doing . the marketing strategy and marketing mix for TNS Vietnam. Chapter 3 Marketing strategy tries to apply the global marketing strategy of TNS Global into Vietnam situation and build the marketing. aims at suggesting the suitable marketing strategy and marketing mix for TNS Vietnam, trying to build a comprehensive and thorough guideline for TNS Vietnam marketing activities in the coming. Asia Pacific and Vietnam, TNS Vietnam is facing the challenges of how to apply TNS Global strategy into Vietnam successfully and build a suitable and effective marketing strategy to ensure