VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Do Van Dan MARKETING STRATEGY FOR REAL ESTATE PRODUCT THE CASE OF VINACONEX MASTER OF BUSINESS ADMINISTRATION THESIS Hanoi – 2010 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Do Van Dan MARKETING STRATEGY FOR REAL ESTATE PRODUCT THE CASE OF VINACONEX Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisors: Dr. Tran Đoan Kim Hanoi – 2010 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ACKNOWLEDGEMENTS. iv TABLE OF CONTENTS. vi LIST OF FIGUGES.
vi LIST OF TABLE. x LIST OF ABBREVIATIONS. SCOPE OF WORK. DATA SOURCES AND PROCESSING.
STRUCTURE OF THE THESIS. 3 CHAPTER 1 THEORETICAL FOUNDATION .1 WHAT IS MARKETING STRATEGY .2 THE MARKETING STRATEGY PROCESS .2 THE IMPORTANCE OF MARKETING STRATEGY TO REAL ESTATE .1 EXTERNAL ENVIRONMENT ANALYSIS. Error! Bookmark not defined. Error! Bookmark not defined.4 MARKET SEGMENTS AND SELECTING TARGET MARKET.
15 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.6 TYPES OF MARKETING STRATEGY .1 MARKETING STRATEGY BASED ON PRODUCT LIFE CYCLE .2 STRATEGIES BASED ON MARKET DOMINANCE .7 SELECT MARKETING STRATEGY AND APPLICATION .1 BENEFITS OF THE BCG MATRIX .2 LIMITATIONS OF THE BCG MATRIX .8 DEVELOPING MARKETING MIX. 28 CHAPTER 2 STATUS OF VINACONEX’S MARKETING STRATEGY PLANNING .2 SCANNING THE ENVIRONMENT .2 HANOI REAL ESTATE MARKET OVERVIEW .5 SEGMENT AND SELECT TARGET MARKET OF VINACONEX .7 LIFE CYCLE FOR REAL ESTATE PRODUCT .8 BCG AND GE MODEL. 69 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.9 STATUS VINACONEX’S MARKETING STRATEGY. 72 CHAPTER 3 SELECT MARKETING STRATEGY FOR VINACONEXS’ REAL ESTATE PRODUCT .1 SETTING UP A FULLY MARKETING DEPARTMENT .2 CLOSE COORDINATION WITH OTHER DEPARTMENT TO IMPLEMENT THE SELECTED STRATEGY .3 SEGMENT AND SELECT TARGET MARKET OF VINACONEX .1 MAJOR FACTORS FOR HOME BUYING DECISION .3 SELECT TARGET MARKET.4 SOME WAYS TO IMPLEMENT THE MARKETING STRATEGY .5 MARKETING STRATEGIES FOR VINACONEX .1 INVESTMENT AND BUSINESS TRADE CENTER .2 OFFICE FOR LEASE .3 NEW URBAN AREA .6 ANSOFF STRATEGIC MODEL WITH MARKET - PRODUCT .7 EVALUATION AND CONTROL .1 ANNUAL-PLAN CONTROL.
103 viii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGUGES Figure 1.2: The Marketing Strategy Process .3: The Five Forces model of Michael E.4: Product life cycle .5: The BCG Matrix .6: General Electric-McKinsey Matrix .7: The four Ps: Marketing mix.1: VINACONEX Organizational Chart .2: Chart on forecasting urbanization growth rate .1 Hanoi’s population from 2006 – 2009.3: Hanoi year to date GDP (% y-o-y Growth Rate).4: Hanoi FDI – Projects (Million USD) .5: CPI Growth Rate by Quarter (% y-o-y) .6: Vietnam’s Inflation Rate and prediction .7: Vietnam stock market .8: Supply about residential for sales .9: Capital Value and Demand .10: Vocancy Office Rate .11: Retail Market Supply .12: Hotel Occupancy Rate .13: Supply about office for lease .4: Future trade center supplier .14: Supply about new urban area .15: Hotel occupancy rate. 68 ix LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLE Table 2.1 Hanoi’s population from 2006 – 2009.3: Position of VINACONEX compares with competitors .4: Future trade center supplier. 66 x LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATIONS WTO Word Trade Organization Vietnam Construction and Import – Export Joint Stock VINACONEX Corporation No Number ISO 9001: 2000 International Standard Organization 9001 : 2000 UN United National FDI Foreign Direct Investment GDP Gross Domestic Product CPI Consumer Price Index SBU Strategic Business Unit CBRE CB Richard Ellis CBD Central Business District ADR Associate Director of Research SBV State Bank of Vietnam xi LUAN VAN CHAT LUONG download : add luanvanchat@agmail. THE RATIONALE Marketing strategy is the key to obtain the success in business and to be an active approach way.
Marketing strategy consists of target market; analyze customer’s demand, competitors, micro environment, macro environment, strength and weakness of the firm. Marketing strategy also consists of marketing objectives, positioning strategy, as well as tactics that are marketing mix: Product, price, promotion, and place. When we build that strategies and tactics, we have to consider to competitor’s reactive activities and customer’s target. The best way, we can access to develop the strategy to be focus on the things which we can do well (the strength) can use these strengths to determine and grasp opportunities.
And also concentrate in the things we cannot do well (the weakness), this help us to cope with them the best effect by the way improve or absolutely rejection. Nowadays, Marketing in real estate in Viet Nam’s companies is only few have professional marketing plan, and the way deploys reasonably. Others majority of the companies are confused or don’t know way to marketing real estate and attract the target customers. Without marketing strategy, companies are not only waste of resources, make faded firm’s image but also bad affect to invest, business operations According to the present circumstances, almost of real estate companies make marketing purely paste on poster advertising, send the letter, postcard with connective address, advertise on newspaper, medium with style is the same, advertising programs are similar.
This doesn’t make differences and not aim at segment of target customer. Whereas, more and more foreign competitors with the position of multi-sided strengths, financial, profession, marketing and special to be methodical and professional marketing strategy. 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Currently, the situation of VINACONEX, they can not keep focusing on selling out goods but selling goods at a satisfactory profit and retaining customers for later products. The real estate market is opening soon under accession to WTO of Viet Nam.
There are more and more foreign investors showing interest in Vietnamese emerging market and domestic companies have also discovered the lucrative of this field. In the past, VINACONEX was still successful without any strategic planning because the market was still under the control of the government and doing business in real estate was rather new, the market was very potential because there were very high demand and limited players in this market. Things are changing soon and VINACONEX must also change. It is, therefore, necessary to conduct a study on real estate product to deploy marketing strategy for VINACONEX 2.
RESEARCH QUESTION The research problems lead to a number of research questions What kind of marketing strategy does VINACONEX need? How to implement the chosen strategy successfully? 3. SCOPE OF WORK The study is limited to the following time, place and work Time: The marketing strategy of VINACONEX is projected for the next 5 years Place: The research is conducted in Hanoi market only Work: Marketing strategy for real estate product of VINACONEX 4. DATA SOURCES AND PROCESSING The information used in the sections of this study is primary and secondary information, which has been collected directly from VINACONEX Corporation and through other real estate company’s surveys, discussion, interviews and questionnaire with industry experts, website, books, newspaper, brochures, marketing information and market reports when available. 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com The study collects information and base on marketing process, marketing strategy model as well as analyze market, analyze competition, segments and select target market, position,.
The study uses PEST and Five forces model to analyze and find out threats and opportunities and then uses BCG model, GE model and Product life cycle from which to make the best marketing strategy for VINACONEX 5. RESEARCH METHODOLOGY Research method: Qualitative and quantitative/case study Research design: Case study Analysis: Descriptive analysis 6. SIGNIFICANCE The study aims to gain the following significance: Theatrical aspect: Contribute some recommendations to theories on marketing strategy Practice aspect: Applying theories on marketing strategy into practice of VINACONEX. LIMITATIONS Because of limited time and geographical space, the study has the following limitation: Time: Because there are many changes in the future.
So that marketing strategy is projected for the next 5 years Place: The research is conducted in Hanoi market only Work: Marketing strategy for real estate product of VINACONEX 8. EXPECTED RESULTS The study is expected to apply successfully theories in marketing strategy for real estate product of VINACONEX. STRUCTURE OF THE THESIS The thesis is divided into three chapters 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter 1: A review of theoretical framework of marketing strategy Chapter 2: Analysis of the current status of marketing strategy at VINACONEX Corporation Chapter 3: Recommended marketing strategy for VINACONEX Corporation 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1 THEORETICAL FOUNDATION 1.1 MARKETING STRATEGY According to Philip Kotler, enterprise’s mission provides value for market how profit. Sothat, marketing process 1 consists of analyzing marketing oppotunities, researching and selecing target markets, designing marketing strategies, planning marketing programs, and organizing, implementing, and controlling the marketing effort Figure 1.1: Marketing Process Choose the value Provide the Value Communicate the value Market Value Product Sourcing Distribution Sales Sales Customer Service Promotion Selection Positioning Development Pricing Making & force Advertising Segmentation Develop Servicing ment Strategic Marketing Tactical Marketing The four steps in the marketing process are: Analyzing market opportunities: The marketer’s initial task is to identify potential long – run opportunities given the company’s market experience and core competencies.
To evaluate its various opportunities, assess buyer needs, and gauge market size, the firm needs a marketing research and information system. Next, the firm studies customer markets or business markets to find out about buying behavior, perception, wants and needs. Smart firms also pay close attention to competitors and look for major segments within each market that they can profitably serve Developing marketing strategies: In this step, the marketer prepares a positioning strategy for existing product’s progress through the life cycle, makes decisions about competitive strategy, product lines, branding, designs and markets its services 1 Source: Philip Kotler, A Framework For Marketing Management, second edition, Prentice Hall Publishing, 2001, pp.70 – 71 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Planning marketing programs: To transform marketing strategy in to marketing programs, marketing managers must make basis decisions on marketing expenditures, marketing mix, and marketing allocation. The first decision is about the level of marketing expenditures needed to achieve the firm’s marketing objectives.
The second decision is how to divide the total marketing budget among the various tools in the marketing mix: Product, price, place, promotion. And the third decision is how to allocate the marketing budget to the various products, channel, promotion media, and sales areas Managing the marketing effort: Marketers organize the firm’s marketing resources to implement and control the marketing plan, because of surprises and disappointment as marketing plans are implemented, the company needs feedback and control 1.1 WHAT IS MARKETING STRATEGY Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal.2 THE MARKETING STRATEGY PROCESS Figure 1.2: The Marketing Strategy Process 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Marketing strategy management process 2 consists of steps: Analyze, selection, implementation and control marketing strategy. The first, enterprise has to analyze market.
Determine target market. The next, selecting marketing strategy which suitable for condition, circumstance, and enterprise’s capacity, purpose, during implements strategy process, Enterprise must check frequently performance’s result. Take care arise case or necessary must consider analyze process and strategic selection aim adjust or change timely strategy 1.2 THE IMPORTANCE OF MARKETING STRATEGY TO REAL ESTATE One of the mistakes made by real estate businessmen is that they over-believe in their impulsive decisions and can not perceive the value of marketing in adding value to their real estate. However, in reality, the more they pay attention to marketing activities, the more they can earn from their investment.