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The research topic is improving the promotion of Q Student, a product of MobiFone Company through offering various benefits to different groups of customers
Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 INTRODUCTION The research topic is improving the promotion of Q Student, a product of MobiFone Company through offering various benefits to different groups of customers. The reason for the interest in this topic is from the researcher’s situation. Like almost students in Vietnam, the researcher is very happy when three mobile operators (Viettel, MobiFone, and Vinaphone) launch a new product which is designed for only students with a lot of benefits. MobiFone is the provider which offers more benefits than the two others. However, I feel dissatisfied when I can not take full advantage of all benefits which this provider offers. For example, I use a normal mobile phone which only has the basic functions like calling and answering, sending and receiving messages; so I can not spend 35 free megabytes monthly using GPRS. I had a question: why I can not receive other benefits such as some free calling minutes? That is the original idea for my research. To start the research, there are two research questions that help the researcher broaden the content of the topic. They include: 1) how many groups are there among students according to their personal factors relating to using mobile? , 2) which kinds of promotion should we apply to different groups? One of the methodologies of this research is analyzing. Through observing the packages of some mobile operators, the researcher draws some strengths, weaknesses, and challenges that Q Student has and faces with. As a result, the researcher can suggest some recommendations to make the product better. Questionnaire is the second methodology. 200 students at National Economics University and Hanoi University of Technology were asked to fill out the form. The result of the survey provides findings on consumer behavior and characteristics on using mobiles. The researcher also interviewed 30 students among 200 students above. From their answers, there was information about their feelings on Q Student and their recommendations to improve the product. 1 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 CHAPTER ONE INTRODUCTION OF MOBIFONE COMPANY WITH THE ISSUES RELATED TO THE RESEARCH TOPIC 1. Introduction of the company Official name Vietnam Mobile Telecom Service Company Short name VMS Official address 216 Tran Duy Hung street, Hanoi, Vietnam Website http://www.mobifone.com.vn Telecom 84 - 4 -38649533 Fax 84 - 4- 38649534 Vietnam Mobile Telecom Services Company – VMS, a state-owned company under Vietnam Posts and Telecommunications Corporation, was founded in April 16th 1993, VMS has become the first GMS 900/1800 mobile telephony services provider in the brand name MobiFone, marking the beginning momentum of the mobile telephony industry in Vietnam. MobiFone specializes in building, developing network and providing mobile telephony. Currently, Vietnam Mobile Telecom Services Company has five Mobile Telecom Services Centers and one Design Factory. Head office is located in Hanoi City. Mobile Telecom Services Centre I located in Hanoi City, in charge of operating and doing business in the North. (North areas to Ha Tinh province). Address: 811A Giai Phong Road, Hoang Mai District, Hanoi City. Mobile Telecom Services Center II, located in HoChiMinh City, in charge of operating and doing business in the South (Ninh Thuan province to the Eastern areas and Ho Chi Minh City).Address: MM18 Truong Son Road, Ward 14, District 10, Ho Chi Minh City. Mobile Telecom Services Center III, located in DaNang City, in charge of operating and doing business in the Central and Highlands (Quang Binh province to Khanh Hoa and Dac Lak province).Address: 263 Nguyen Van Linh Road, Da Nang City. Mobile Telecom Services Center IV, located in CanTho City, in charge of operating and doing business in ten provinces in the Mekong Delta. Address: No.6, Hoa Binh Avenue, An Cu Ward, Ninh Kieu District, Can Tho City. Mobile Telecom Services Center V, located in Hai Phong City, in charge of operating and doing business in 14 Northern 2 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 provinces and cities. Address: No.8, Lot 28, Le Hong Phong Str, Hai Phong City. Value Added Services Center was established in October 6th 2008, its headquarter is located in Hanoi City specialized in developing, managing and doing business of value added services on GSM (including short message, short message based services, GPRS based services, 3G services and national and international roaming services). 3 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Chart-1: Structural organization of Vietnam Mobile Telecom Services Company The company has six main kinds of products (these products can be called packages). They are mobigold, mobicard, mobi4U, mobiQ, mobi365, mobizone. Each product is designed for one group of target customers which are suitable for customers’ needs, wants and demands. Mobigold service offers perfect voice quality, wide coverage, and more value-added services. Customers will enjoy more in daily life. This product is after-paid package. Customers just present the ID, pay activation fee (99.000 VND/ subscription) and pay the subscription fee (49.000 VND per month). Then they can get a lot of benefits such as easy to pay bill, national customer care 24 hours/ day, and enjoy some of utilities services free. With Mobicard, customers can connect in the quickest way because it offers customers such a high quality of MobiFone network at a very short time. Mobi4U connects U with friends, family and places at any time. No limit to whom and what you can connect to. It also offers a wide range of attractie services for you. MoiQ is for two kinds of customers: student and teenager with two packages Q Student and Q Teen. This is new type of call package with a lot of benefits for customers. With Mobi365, customers can have chances of calling with economical charges. They only pay 200 VND for the the ten seconds. MobiZone is the newest package designed for customers who want to call mainly within a zone. The company has received a lot of awards since 2005: Awards in 2005 - “The best mobile telephony operator in 2005” voted by E-Chip Mobile Magazine - “Strong Brand 2005” voted by Vietnam Economic Newspaper. Awards in 2006 - “The most favourite operator 2006” and “The best customer care operator 2006” voted by E-Chip Mobile Magazine under the Vietnam Mobile Awards chain 4 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 - “The famous brand 2006” voted by Vietnam Chamber of Commerce and Industry - “Ranked 1st among TOP 10 strong and potential brand of Vietnamese economy” voted by Le Courierr du Vietnam newspaper on the occasion of APEC Summit 2006 Awards in 2007 - “The most favorite mobile telephony operator 2007” voted by E-Chip Mobile Magazine - Vietnam Mobile Awards - Ranked TOP 20 among 200 biggest businesses in Vietnam by UNDP - TOP 10 “Strong Brand” in 2006 - 2007 voted by Vietnam Economic Newspaper Awards in 2008 - “The excellent ICT business in 2008” voted by PC World’s readers - “The best quality service provider in 2008” voted by Saigon Tiep Thi Newspaper - “The most favorite mobile operator in 2008”; “The best customer care operator in 2008” voted by Vietnamnet cyber newspaper and E-Chip Mobile Magazine - “The excellent mobile operator” granted by Vietnam Ministry of Information and Communications at Vietnam ICT Awards 2008 - “The best customer care operator in 2008” granted by Vietnam Ministry of Information and Communications at Vietnam ICT Awards 2008 Awards in 2009 - “The most favorite mobile telephony operator 2009” voted by Vietnam Mobile Awards - “The best customer care operator in 2009” granted by Vietnam Ministry of Information and Communications at Vietnam ICT Awards 2009 The company has developed its market share through the growing number of subscribers during years. The chart-1 below shows the number of subscriber from 1993 to 2010 (planing). According to the chart, there is a great increase in the subscribers. Starting with only below 2.000.000 customers at 2002, the number was 11.000.000 in 2007. 5 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Chart-2: Subscription Growth from 1993 to 2010 6 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Chart-3: Market share – Quarter I 2009 From the chart-3, MobiFone is the provider who gets the largest market share with 41%. That can be explained for some reasons. The contingent of 3000 MobiFone staff in ready to effectively meet every demand of customers. MobiFone is the first and exclusive mobile telephony services provider in Vietnam which is selected as of the best mobile operator in three consecutive years (from 2005-2008) in the Vietnam Mobile Awards Ceremony organized by E-chip Mobile Magazine, Especially in 2009, MobiFone was honored to receive the Excellent Operator 2008 granted by Vietnam Ministry of Information and Communications. 2. Introduction of the research topic 2.1 General information about the product Q student Q Student is a call package designed for only students at all universities, colleges, and training schools in Vietnam with a lot of special features. This new package was introduced on 25th August 2009 after Viettel Telecom (1st June 2009) and before Vinaphone (1st September 2009). Q Student was developed from package MobiQ which was for all young customers. This package is only valuable for student time. After that, customers’ packages would be changed to MobiQ • Benefits and regulations * Benefits Charges: 7 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Customers will receive VND 25000 monthly during the effective time of the subscription. If customers do not use all, they can keep extra money until the next month. Mobile Internet service Customer will receive 35 MB using internet free during the effective time of the subscription. If customers do not use all, they can keep free megabyte until the next month. Multimedia message service Customers will receive 25 free MMS during the effective time of the subscription including messages with texts or with pictures or sounds. If customers do not use all, they can not keep free messages until the next month. * Regulations Validity days will be 92 for Q Student. It remains 92 days since customer makes an outgoing call. If customer makes an outgoing call while a validity day is more than 92, it will be remained. Time out, customer will get 10 days additional for incoming calls and top-ups. Out of date, customers' calls will be barred. Disconnection validity day is 92. Out of date without any top-ups, the subscription number will be discharged. Validity days will be added in every top-up. Tariffs Table-1 Tariffs of Q Student List Type Rate (VAT included) 1 Domestic calls a) Intra network VND 1.380/minute First 6 second bloc VND 138 Subsequent 1 second VND 23 b) Other operators VND 1.580/minute First 6 second VND 158 8 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 bloc Subsequent 1 second VND 26,33 c) Group calls VND 830/minute First 6 second bloc VND 83 Subsequent 1 second 13,83 3 Short messages a) Intra network VND 99/SMS b) Other operators VND 250/SMS (Source: www.mobifone.com.vn) 2.2. Introduction of the research topic Q Student is really a good package for students. It is the first time Vietnamese students have such many benefits. Mobifone and two other big operators in Vietnam, Viettel and Vinaphone have this special package designed for students. They are “I am student” of Viettel and “Talk student” of Vinaphone. Without mentioning other features, we just focus on benefits students receive from these operators and then analyze them. Table-2 Benefits offered by three operators Operators Benefits Viettel (1st Jun e 2009) MobiFone (25th August 2009) Vinaphone (1st September 2009) Extra charge VND 25000 VND 25000 VND 30000 Free Internet Mobile service 30 MB 35MB 30MB Free Multimedia message service 25 MMS 25 MMS 50 % off to 5 VND 840/minute to 9 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Group call registered intra network numbers 5 registered intra network numbers. From the figures, we can see that there is no much difference among benefits which three operators offer to students. To contact with a fixed number, customers only choose one package from one mobile operator. There is still case when customers have more than one mobile phone. Whenever it is, they still need one fixed package to use. That is the chance for MobiFone to make their product different and keep students as regular customers through particular products. However, MobiFone has not attracted the whole group of students. MobiFone’s promotion has not effective in order to satisfy the whole group of customers’ needs wants and demands. MobiFone has not understood clearly different characteristics of different groups of students. Thefore, this research is carried out in order to improve the promotion of Q Student through offering various benefits to different groups of students. The starting point for this research is the two research questions: the first one is how many groups are there among students according to their personal factors relating to using mobile? , and which kinds of promotion should we apply to different groups? To answer these questions, there was a survey among 200 students at National Economics University and Hanoi University of Technology. They were asked about their behavior and demands on using mobile. The scope of this survey is 200 first year and second year students at two universities. These two universities are near together, so it is easy for the researcher to implement the survey. In addition, they are students major in two fields: economics and techonoly, so they can help the sesearcher a lot in having more ideas for the research. Along with delivering the questionnaire for students to fill out, the researcher also interviewed 30 students among 200 students above. From their answers, there was information about their feelings on Q Student and their recommendations to improve the product. The other methodology of this research is analyzing. Through observing the packages of some mobile operators, the researcher draws some strengths, weaknesses, and challenges that Q Student has and faces with. As a result, the researcher can suggest some recommendations to make the product better. 10 [...]...Website: http://www.docs.vn Email 11 : lienhe@docs.vn Tel : 0918.775.368 CHAPTER TWO THEORETICAL FRAMEWORK To understand different factors that affect consumer behavior, we first identify consumer needs, wants, and demands The reason for studying different factors is to satisfy customers better... MOBIFONE COMPANY WITH THE ISSUES RELATED TO THE RESEARCH TOPIC 2 1 Introduction of the company 2 2 Introduction of the research topic 7 CHAPTER TWO 11 THEORETICAL FRAMEWORK 11 CHAPTER THREE 15 FINDINGS ON CHARACTERISTICS AND DEMANDS OF THE STUDENTS ABOUT Q STUDENT 15 1 General analysis 15 2 Findings on . http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 CHAPTER TWO THEORETICAL FRAMEWORK To understand different factors that affect consumer