VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Tran Thuy Linh SOME RECOMMENDATIONS TO DEVELOP THE MARKET SHARE, THE CASE OF ILA VIETNAM IN HANOI MASTER OF BUSINESS ADMINISTRATION THESIS Hanoi - 2011 TIEU LUAN MOI download : skknchat@gmail.com VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Tran Thuy Linh SOME RECOMMENDATIONS TO DEVELOP THE MARKET SHARE, THE CASE OF ILA VIETNAM IN HANOI Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. Nguyen Thi Phi Nga Hanoi - 2011 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS ACKNOWLEDGEMENTS.iv TABLE OF CONTENTS.vi LIST OF FIGURE. viii LIST OF TABLE. Objective and aim of thesis.
Scope and scale of thesis. 2 CHAPTER 1: LITERATURE REVIEW .2 Ways to increase market share .2 Consumer decision making process .2 Source of information .3 Information search on the Internet .3 Customer Value, Satisfaction, and Loyalty. Total Customer Satisfaction. 31 vi TIEU LUAN MOI download : skknchat@gmail.
39 CHAPTER 2: THE CASE OF ILA VIETNAM IN HANOI. Analysis of visitor and sources of information channel. Product analysis and comparison. New sales analysis.
Re-enrolment and customers‟ loyalty analysis.5 Promotion mix analysis. 63 CHAPTER 3: CONCLUSION AND RECOMMENDATIONS .1 The information search on the Internet .2 Building Customer Value, Satisfaction, and Loyalty. 85 vii TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURE Figure 1-1: Decision making process. 6 Figure 1-2 Information sources for Purchase Decision.
8 Figure 1-3: Customer delivered value. 14 Figure 1-4: Levels of product. 20 Figure 1-5: The tangible-intangible continuum of goods and services. 21 Figure 1-6: Steps in new product development process.
23 Figure 1-7: Vertical marketing system model. 36 Figure 2-1: Sales volume of ILA Vietnam in Hanoi since 2007. 56 viii TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLE Table 2-1: Number of visitor from 2008 to2010. 45 Table 2-2: Sources of information that customer knew ILA from.
45 Table 2-3: Programme, schedule and fee of English course in ILA Hanoi. 48 Table 2-4: Programme, schedule and fee of English course in Apollo Centre. 50 Table 2-5: Programme, schedule and fee of English course in Language Link. 51 Table 2-6: Book using analysis.
54 Table 2-7: The number of new sales volume. 55 Table 2-8: Re-enrolment in ILA Hanoi. 57 Table 2-9: The role of advertising is more critical in Hanoi. 59 Table 2-10: Types of advertising and frequency.
59 Table 2-11: Student statement by district and areas. 64 ix TIEU LUAN MOI download : skknchat@gmail. Research Problem ILA Vietnam in Hochiminh City is a very famous English Training Centre. Everyone can recommend friends and relatives to ILA to study when they are asked.
There are six training centres in HCMC, one in Vung Tau, one in Da Nang and one in Hanoi. The centre in Hanoi was established in 2007. This centre has a big problem with the market share development. Although Hanoi Training centre has more than three years running, it now still has negative profit.
The problem is that ILA Hanoi has to compete with many big competitors such as Apollo, Language Link, ACET and British Council. Hanoians are familiar with these centres and know little about ILA Vietnam. Besides, ILA still uses one marketing strategy for both northern and southern area. With those research problems, the thesis will be conducted with the purpose to improve the market share then to get more profit for ILA Vietnam in Hanoi for the period of 2011-2016.
The objectives will include: Study the comments of customers in Hanoi about ILA‟s products and marketing activities; analyse business performance of ILA in Hanoi; find out the problems occurring in the Hanoi Centre; and give the recommendations to develop the market share based on applying the suitable marketing mix to Hanoi market. Objective and aim of thesis Those research problems will be discovered with the purpose to improve the market share then to get more profit for ILA Vietnam in Hanoi for the period of 2011-2016. The objectives will conclude: - Study about marketing performance of ILA Hanoi - Find out the problem occur in the ILA Language training centre in Hanoi (LUAN.hanoi 1 TIEU LUAN MOI download : skknchat@gmail.hanoi - Study comments of customers in Hanoi about ILA products and marketing activities then build up the suitable marketing program to increase market share. - Give the recommendations to develop the market share 3.
Scope and scale of thesis This research will be conducted based on some major objects are: - Current customers of ILA Vietnam in Hanoi - Visit customers, students of University, secondary and high schools, parents of primary students. - Staffs and manager in Hanoi 4. Methodology The thesis used some method of research such as surveys potential customers, existing customers, ILA‟s staffs and analyse reports of the company. One hundred customers were asked to collect information of their need in studying English and the source of information that they used to find and select an English Training centre.
The company‟s reports were used to analyse the business performance such as the sales number, the number of visitors and number of students. The existing students were asked for their satisfaction on courses, customer services, books, teachers, teaching assistants and if they would recommend their friends and relatives. The comments of customers were used to measure the effectiveness of marketing activities of ILA in Hanoi. The more suitable marketing strategy could help ILA to attract more customers and expand its market share.
Data resources The primary data was gathered from direct interviews and discussions with the customers, students, visitors, parents of students, staffs and managers of ILA.hanoi 2 TIEU LUAN MOI download : skknchat@gmail.hanoi second sources of the thesis was secondary data such as books, newspapers, internal and external reports and the Internet.hanoi 3 TIEU LUAN MOI download : skknchat@gmail.hanoi CHAPTER 1: LITERATURE REVIEW The literature included theory of market share, ways to increase market share, information search and building customer loyalty, marketing mix. This section will start off by explaining the market share concepts. Definition There were some definitions of market share as the following: "Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity." By Farris, Paul W. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.
Another author of investopedia said that market share was the percentage of an industry or market's total sales that was earned by a particular company over a specified time period. According to this author, market share was calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric was used to give a general idea of the size of a company to its market and its competitors. “Market share is the percentage of a company‟s sales of a particular product or service in a given area.
It can be calculated in terms of revenue or of units sold.” By Author(s) from Penetrating.net “In very simple terms, market share is the number of loyal customers your business or company has been able to retain over a long period of time” by Tito Philip, Jnr. It was quite different from other definition when mentioning the loyal customers. This author thought that no one else but loyal customers were the real market share of the companies.hanoi 4 TIEU LUAN MOI download : skknchat@gmail.hanoi Base on this definition, the author of the current thesis find out that to study consumer behaviour to make them become loyal customers is one of the good way to increase the market share. And it is the main content that the current thesis focus on.
All these definition had different calculation but all had a same idea of the “pie” of the maket “cake” that the company owned. The more important is how to increase this “pie”.2 Ways to increase market share There were some ways to increase the market share as the following: - Try to sell more to existing customer: encourage customer to buy more product and higher frequency. - Get old customer back: find the reasons why customer left: they did not need this product anymore, the price was too expensive, customers were not satisfied, customers changed to company‟s competitors… - Try to sell effectively to similar customer by using data to telesales, send mail, advertising, word-of-mouth… - Use other channels to sell: direct sales, whole sales, online sales or e- commerce - Find the new market: at other province, other country - Develop the new product for same market There was risky and costly in some ways as the expansion required more capital and staffs. It was reasonable for trying to understand existing customers in the same market and let them to be loyal ones then try to sell them more.
For this group of customers, the company already had contact and relationship so it easier to find out their sastifaction and how to make them be loyal. Even developing a new product for the old market was still easier and less cost than for the new market. In order to developing the market share for the company in the safer way, the marketer had to study the customer need and customer buying process.hanoi 5 TIEU LUAN MOI download : skknchat@gmail.2 Consumer decision making process Consumer decision making process had some states that presented in the figure 1-2 below. There were problems (need) recognition, information search, alternative evaluation and selection, outlet selection and purchase and post-purchase processes.
The lowest level of purchase involvement was represented by nominal decisions: a problem was recognized, long-term memory provides a single preferred brand, that brand was purchased, and only limited post purchase evaluation occurs. As one move from limited decision making toward extended decision making, information search increases, alternative evaluation becomes more extensive and complex, post purchase evaluation becomes more thorough. Figure 1-1: Decision making process Problems Alternative Outlet Information Postpurchase (need) evaluation selection and search processes recognition and selection purchase In this thesis, the author would like using the theory of information search in analysing the promotion mix so it was only information search stage focused.1 Information search After problems recognized, people often used internal and external search for information that related to product or service. The internal search was included long-term memory of satisfactory solutions, characteristics of potential solutions.
The external search were a price range, familiar manufactures, performance criteria, etc…that could be limited because of one or two criteria.hanoi 6 TIEU LUAN MOI download : skknchat@gmail.hanoi For example, the fan of Ms Lan was broken down. She had to by a new fan for summer using. Because the old fan was used for ten years so Ms Lan did not want to change or find another brand. She went straight to Thong Nhat company to buy a new fan with the same brand.
In this case, the satisfaction of old product influenced the decision of buying the new product without any search. There were two example of source of information that consumer used in making decision. The first example, one person had demand of toothpaste and she saw a new product in the super market that had an attached tooth-brush. This person bought the new product without searching for more new products because of the added value.
That decision was made by limited information search. The second one was the case of a mother who wanted to by a new formula milk powder for her child. She had to search for information of nutrition, the price, the samples of children using the same product… the final decision was the product that had cheaper price with the same nutrition. The mother of this example used external information that included: - The opinions, attitudes, behaviors, and feelings of friends, neighbours, relatives, and increasingly strangers contacted on the internet.