MARKETING PLAN ANALYSIS THE CASE OF MOMO e WALLET

INTRODUCTION Momo application allow users toaccess hundreds of different utilities on its application, promoting the trend of "cashless" The position as the 1st e-wallet in Vietnam with

Đoàn Kiều Gia Khánh Trần Minh

Bảo Anh

I INTRODUCTION Momo application allow users to

access hundreds of different utilities

on its application, promoting the trend

of "cashless"

The position as the 1st e-wallet in Vietnam with the highest market share at 68%, along with awareness

of up to 97%

Established in 2007

M_service is one of the pioneers in the

field of providing mobile payment

solutions

II Environmental Analysis

A big turning point for the development,

causing the rate of this form of payment

to increase for e-wallets.

1 Natural environment

2 Resources

Trusted and loved by tens of millions of users and

business partners.

Has more than 1,600 employees with its HQ in

HCM City, offices in Hanoi and Da Nang.

Link with 38 domestic and international banks,

providing services to more than 90% of people with

bank accounts, has more than 10,000 agents,

30,000 business partners, has about 31 million

users with more than 140,000 payment points.

2020 - Raise capital with a total charter capital of more than 130 billion VND with 66% foreign

ownership.

Resources of MoMo:

2021 - The completion of the 4th round of funding (Series D) and the 5th round of funding (Series E)

3 Competitive Environment

MoMo, Moca, and ZaloPay are the top three most popular e-wallets in

Vietnam's two major cities

Examine the three brands and

demonstrate the rivalry in the e-wallet business.

MoMo ZaloPay Moca

Moca was launched in

MasterCard, and JCB.

3 Competitive Environment

Main color: Magenta >

Mixture of red and blue

It stands for the ability to

balance and stabilize, as

well as representing loyalty

and is a color for apps that

want to be different and

strongly identify.

Main color: Blue and Green

> Blue indicates financial

security and trust While

green means growth,

maturity, and a promising

future

Main color: Blue

> Means protection and financial security, a

sense of dependability,and trust Blue is oftenchosen to convey

stability and evoke trust

in customers

Type of

service

MoMo offers services

such as money transfers

between Momoaccounts, withdrawalsand deposits, bill

payment, e-commerce,personal finance, and soforth

MOMO is Vietnam's first

e-wallet that allows users

to withdraw money from

their MoMo account

ZaloPay allows customers

to pay online for internet

services, electricity bills,recharge phones for

prepaid subscribers, cableTV

If friends use ZaloPay,ZaloPay can identify them

in their contacts, makingmoney transfers and

transactions with pals

faster. 

Moca, which has a strategic

alliance with Grab, has

swiftly become a majorplayer in the e-wallet

competition

Moca, with its cleverlydesigned QR code, enables

users to pay at authorized

spots such as convenience

stores, commercial centers,eating establishments, or to

hire a car on Grab.

Users and

Partnerships

The app has over 31

million users, 50,000 corporate partners,

and millions oftransactions areprocessed throughMoMo Wallet everyday  

In 2021, this app will have 6.9

million downloads and 8.17

million users

It has collaborated with 269

key partners, including Baemin,

Tiki, and Sendo

Moca has

approximately 5 million

customers of Moca

mobile paymentsolutions due to its co-operation with Grab

Moca currently hasdirect connections with

25 commercial banksand one digital bank,allowing it to serve

about 92% of ATM card

users in Vietnam

channels

National televisionWebsite

YoutubeFacebook 

Website YoutubeFacebook 

WebsiteYoutubeFacebook 

Important

Awards

March 2018: MoMo was

named one of the top 100 Fintech firms in the world

January 10th, 2019: MoMo is

named "The e-wallet of the year" by The Asian Banker. 

April 9th 2020: MoMo was

named Best Digital Wallet Product at The Asian Banker Vietnam Awards 2020. 

2020: The International

Data Group (IDG) in partnership with the Vietnam Banks

Association recognized Moca as the typical

fintech business

Moca is also the only Fintech in Vietnam to receive this honor four years in a row,

beginning in 2018.

4 Cultural and Social environment

70% of Vietnamese adults have payment

accounts at credit institutions

64 million Internet users in Vietnam

61.73 million users using mobile devices

94% Vietnamese people use the Internet daily

6% use the Internet at least once a week

39.19 million activated e-wallets

583.84 million successful e-wallet

transactions with a total transaction

value of more than 271.36 trillion VND

Vietnam's Internet paymentreached

423.7 million transactions with a value

of 18.5 million billion VND

5 Economic Environment

5.1 The situation of digital economy development in VietNam

Vietnam's digital economy has made rapid and promising developments compared to the

region and the world

Vietnam's Internet/platform digital economy has reached 14 billion USD, placing the

country third in ASEAN (The e-Conomy SEA Report 2020)

The strategic focus of our country in the coming period are set very high, including the digital

economy accounting for 20% of GDP;

Universalization of 4G/5G mobile network services; Vietnam is in the group of 50 leading countries

in the information technology index (IDI) etc

5.2 E-commerce in VietNam

One of Vietnam's digital economy's fastest-growing sectors In 2021, e-commerce revenue

amounted to approximately 13.7 billion U.S dollars.

E-commerce in Vietnam is growing at a 35% annual rate, which is 2.5 times faster than in Japan

(According to VECITA) The number of people participating in online shopping in Vietnam has

steadily increased and now stands at 40 million

COVID-19 pandemic has made digital payment

services, particularly e-wallets, the "new normal"

for many of Vietnam's highly connected

consumers

2020 - There were approximately 19.2 million

mobile wallet users in the country (expecting to nearly triple in 2020-2025)

A survey conducted in 2021 has 60% of

respondents across Vietnam use e-wallets.

Early 2021 - 64% of Hanoi people surveyed used e-wallets, 68% in HCM City, 42% in other

provinces, and 59% across the country.

5.3 Digital Payment Trends

6 Political and legal environment Prerequisite to become an e-wallet service

Has an approved business plan for intermediary payment services following regulations on

investment competence in the organization's operating charter

Has a minimum charter capital of VND 50 billion Meet the conditions of personnel, facilities and technical infrastructure.

48 non-banking organizations that have been licensed by the SBV to provide intermediary payment services (05/2022)

With a large population, a golden population

structure, a strong digital workforce, and a

large number of Internet and smartphone

users, Vietnam is a large market with a lot of

possibilities for innovative business models

Covid 19 is a global calamity, but it is also a

century-long push for digital change and

economic prosperity

*Disadvantages

The legal and institutional system in Vietnamhas not created favorable conditions for thedevelopment of the digital economy

The insufficient implementation of programsand policies to develop the digital economy;

digital skills and digital human resourceshave not met the requirements of the digitaleconomy

Vietnam has an excellent opportunity

to break through and get ahead.

The opportunities and challenges

as described above pose an urgent need for a strategy to guide from the Government.

7 Technologycal

Environment

These services can now replace traditional wallets in different ways

From buying tickets to investing in stocks, technology

allows quicker transfer with fewer steps as well as

more security.

Big companies are getting involved

Paypal, Venmo provide digital wallets; Apple, Samsung

offer operating systems for such applications; retailers

like Alibaba and Walmart have also gotten involved.

Digital wallet providers are rapidly upgrading and diversifying their services

One of the key factors of using e-wallets is asset types and methods of payment They also concern about

storing systems and accessing customers assets.

Nowadays digital wallets allow mobile, web, Internet of

Things (IoT) and crypto access

Driving factors:

MORE Convenient

and Useful for

customers

MoMo offers over 200

different features

Ranging from money transfers, saving with

interest, to making donations or taking loans

7 Technologycal

Environment

Ahead of the race

Multiple features, great ease of use,

nation-wide popularity, and world-class security

In the future

Global access, great user-experience through

high security and diverse customization

options, etc.

Vietnam's growth in digital

transactions: 30.2%/year

70% of Vietnamese adults own bank

accounts, however, there are only 13

million digital wallet accounts

80% of the Vietnamese population

still uses cash for their daily purchases

59% of the Vietnamese population is

not familiar with digital wallets

77% of people that have already

used an e-wallet are willing to use it

in the future

B Target

Markets

Vietnam has become one

of the world’s most rapidly

growing in digital

transactions

MoMo picks out the

segment that best suits

them

People with modest incomes or those who

work away from home are included in this

target category They don't need a high limit

when it comes to transaction needs

B Target Markets

Demographics: Unskilled laborers between the

ages of 18 and 45, work away from home.

Education: Either students or those with a high

school education.

Income: At least 3-5 million VND, preferably

more

Behavior: They are either the income source for

their family or are under the care of their family.

III SWOT Analysis

Increasingdemand for e-wallets

Huge marketpotential

FiercecompetitionRisks in e-walletpayment

3.4 Important issues

Security weakness.

Vietnam has young users, cheap internet, and a large number of smartphone users Criminals

focused mainly on users.

Users have the habit of installing many apps

without careful control, creating a corridor for

hackers to attack the device.

The awareness of using copyright in Vietnam is also very low.

✓ Expand and strengthen its services in tier-2 and tier-3

cities as well as in rural areas all across Viet Nam.

✓ Help develop new features of the MoMo e-wallet based

on user needs and feedback.

✓ Building a provider network with tens of thousands of

transaction points nationwide and improve its security

system

✓ Look for and invest in potential, small businesses and

micro enterprises (MSMEs) in Vietnam, continue to

promote investment in Vietnamese companies to expand

the ecosystem.

MoMo is intended to implement important future marketing goals like:

IV Marketing Goals

City the whole territory of

vietnam 

Languages English and Vietnamese

Area Southeast Asia (SEA)

Population 97.34 million people

Demographics

Gender Both male and female

Income Mainly low or middle-

income

Life stage Single, couple, family

5.1.1 Segmentation - Target markets:

V Marketing strategy:

Benefit sought

- Free and instant money transfer

- Cashback has the highest refund rate

- Easily compare fares, use and pay for all travel services, alwayshave great deals at the most competitive prices

- Meets the highest secure payment standards

Targeted markets of MoMo e-wallet:

Occupation: Student Age: 18-25

Income: 0 - 5 million VND Monthly allowance: 0 - 5 million VND Behavior: There is a need to use e- wallets for shopping and eating

Education level: University education Lifestyle: An active, practical lifestyle, wanting to save time, looking for new services or conveniences in life, having

a diverse eating and shopping preferences.

Customer group 1

Occupation: Workers, farmers, craftsmen, self-employed people, etc…

Age: 18 - 45 Income: About 3 - 10 million VND Behavior: Workers away from home need

to transfer money to their hometown every month, is the main source of income in the family

Education level: At the upper secondary level.

Lifestyle: Love family, like convenience, desire to find good utility services

Customer group 2

MoMo’s promise to

2016 - "MoMo does not need

customers, MoMo needs happy

customers".

This philosophy is fully applied

by MoMo to all customers and

partners Products are optimized

in any small details to satisfy

customers' needs, reducing

operations that need to be used

when checking out.

Easy to remember, leaving a strong impression on customers Shows MoMo's ambition to

occupy the Top-of-mind position

in the eyes of consumers

"TRANSFER MONEY - INSTANT MOMO"

This is:

The phrases "Let’s MoMo" is

increasingly frequently used by Gen Z youth in daily life.

5.1.2 Positioning

MoMo’s Points of Parity ( POP):

- Meets the needs and provides basic payment

services to customers

- MoMo wallet is licensed and managed by the

State Bank of Vietnam, directly linked with many

banks and when logging into the wallet

- Implement links, expand cooperation with

many different partners in the industry (Gojek,

Bee )

- Take advantage of the push from the context

of the Covid 19 pandemic

- Raise awareness through promotional

activities and attractive promotions and

cashback programs

MoMo's Points of Difference (POD):

- MoMo wallet provides customers with

One touch payment experience with more than hundreds of service utilities

-The application is trusted by consumers thanks to its strict safety standards,

certified with the highest international security standards (PCI DSS) and is also the first among the few payment

intermediaries to achieve this certification.

-It is the only e-wallet application in Vietnam that allows external cash withdrawal.

*Perceptual Map:

Based on a survey done by DecisionLab, MoMo is ranked first in the fast transaction process (59%)

among the other three wallets ( ShopeePay, ZaloPay, ViettelPay) by 329 respondents It shows that the

MoMo e-wallet is capable of managing customer payments fast and efficiently.

MoMo E-Wallet is ranked in first place for the strict security system that partners and customers can be completely assured of.

1/ Threat from New Entrants

Many competitors have not yet entered the e-wallet market or have entered but are unpopular in Vietnam.

Many partners accept MoMo e-wallet

cooperation, including supermarkets,

convenience stores, etc

Service providers for MoMo e-wallets are

industry leaders with a good reputation

and long-standing business companies

in the market, however, they also have a

large number of links to other e-wallets

as well.

2 Suppliers' Bargaining Power

==> Suppliers have a moderate impact on the MoMo e-wallet.

In today's diverse e-wallet market, customers have numerous options for e-wallets ( MoMo, ZaloPay, ShoppePay )

Furthermore, they have many ways to learn about e-wallets, such as: transaction fees,

promotional information, security, service

quality, and customer care through articles and reviews on social networks They want to get the best deal possible while spending the least money.

3 Buyers' Bargaining Power:

==> Customers put much pressure on the

MoMo e-wallet As a result, MoMo must

develop a high-quality brand image and better customer care.