FINAL REPORT PROPOSED MARKETING STRATEGY FOR MOMO e WALLET SUBJECT MAKETING MANAMENT

With Momo’s position as the first e-wallet in Vietnam with the highest market share at 68%, along with awareness of up to 97%, this project aims at taking advantages of MoMo’s existing s

UNIVERSITY OF UEH BUSINESS SCHOOL FACULTY OF INTERNATIONAL BUSINESS - MARKETING

FINAL REPORT: PROPOSED MARKETING STRATEGY FOR

MOMO E-WALLET SUBJECT: MAKETING MANAMENT

Instructor: Dr Truong Hong Ngoc Class Code: MAR503113

Class - Grade: FTC01 - K46 Group participants:

Đoàn Kiều Gia KhánhNguyễn Phương UyênNguyễn Đức Trí DũngTrần Minh Bảo Anh

Ho Chi Minh City, December 2nd, 2022

UNIVERSITY OF UEH BUSINESS SCHOOL FACULTY OF INTERNATIONAL BUSINESS - MARKETING

FINAL REPORT: PROPOSED MARKETING STRATEGY FOR

MOMO E-WALLET SUBJECT: MAKETING MANAMENT

Instructor: Dr Truong Hong Ngoc Class Code: MAR503113

Class - Grade: FTC01 - K46 Group participants:

Đoàn Kiều Gia KhánhNguyễn Phương UyênNguyễn Đức Trí DũngTrần Minh Bảo Anh

Ho Chi Minh City, December 2nd, 2022

No Student ID Name Email Contribution

Table of Contents

I Summary 4

II Introduction to MoMo 4

2.1 MoMo’s current marketing position 4

2.1.1 MoMo’s Points of Parity (POP): 5

2.1.2 MoMo's Points of Difference (POD): 5

2.1.3 Perceptual Map: 5

2.2 MoMo’s Marketing Mix 6

2.2.1 Product 6

2.2.2 Price 8

2.2.3 Place 9

2.2.4 Promotion 9

III SWOT Analysis 9

3.1 Strengths 9

3.2 Weaknesses 11

3.3 Opportunities 11

3.4 Threats 12

IV Product Improvement Opportunities 15

4.1 Product support: 15

4.2 Brand value: 16

V Marketing Goal 16

VI Marketing Strategy 17

6.1 Target markets: 17

6.2 Distribution channel in product expansion strategy 19

6.3 Promotion - Integrated Marketing Communications - IMC 19

6.3.1 Communication target (WHY) 20

6.3.2 Target audience (WHO) 20

6.3.3 Choose effective communication channel (WHERE) 20

VII Marketing Plan Implementation 23

7.1 Campaign public impression 23

7.2 Marketing plan execution table 24

VIII Evaluation and Control 26

8.1 Performance standards and financial control 27

8.2 Supervision procedures 27

IX Appendix 27

X References 32

Table of Figures Figure 1 MoMo's Perpeptual Map 6

Figure 2 MoMo's interface 28

Figure 3 Digital Economies of ASEAN countries in 2020 28

Figure 4 Digital Economy scenarios of Vietnam to 2025 29

Figure 5 E-commerce revenue in Vietnam in 2021 29

Figure 6 Most popular mobile wallet brands Vietnam 2020 30

Figure 7 Most used e-wallets Vietnam 2021 by genaration 30

Figure 8 Competitive advantages of e-wallets in Vietnam 30

Figure 9 Service fees when withdrawing money to bank accounts from MoMo 32

I Summary

Building a brand to develop into a strong brand, leading in a field is the core issue, expressingthe ambition of enterprises in production and business activities and competition in themarket in the context of international and regional economic integration is increasinglyextensive today Branding is the best way to create and reach out to customers' desires.Established in 2007, M_service is one of the pioneers in the field of providing mobilepayment solutions, with the desire to bring more value and convenience to people, M_servicelaunched Momo e-wallet application, allowing users to access hundreds of different utilities

on its application, contributing to promoting the trend of "cashless" With Momo’s position

as the first e-wallet in Vietnam with the highest market share at 68%, along with awareness

of up to 97%, this project aims at taking advantages of MoMo’s existing strengths to propose

a marketing plan for the company; in order to attract new customers for Momo e-wallet aswell as addressing its weaknesses and opportunities; help the target audience know aboutMoMo's brand and services by communicating activities to customers in the future

This report not only reviews and evaluates the influencing factors, but also above all provides

a base system, information as well as a specific strategy to help Momo accomplish the setgoals Specific contents will be presented in the marketing plan mentioned below

II Introduction to MoMo

2.1 MoMo’s current marketing position

MoMo is a market leader in Vietnam for mobile e-wallet services at the point of transactionand payment platforms There are more than 4000 MoMo outlets that have opened in 54provinces and cities around the country, allowing them to serve more than 23 millioncustomers in distant locations These remarkable numbers show the company's vision tobecome a SuperApp with an all-in-one application

With the desire to maintain its leading position and outperform competitors in the samecategory, MoMo products are optimized in every detail to meet the needs of customers,reducing the number of operations required when checking out MoMo has made its familiarfeatures more special and different with the slogan "Transfer money - Instant MoMo," which

is easy to remember and understand, leaving a strong impression on customers

2.1.1 MoMo’s Points of Parity (POP):

 MoMo e-wallet meets the needs and provides basic payment services to customers

 MoMo wallet is licensed and managed by the State Bank of Vietnam, directly linked withmany banks and when logging into the wallet or making secure payments (OTPauthentication code, fingerprint authentication, )

 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 to change theperception among users, businesses, and state agencies towards electronic payments

 Raise awareness through promotional activities and attractive promotions and cashbackprograms

2.1.2 MoMo's Points of Difference (POD):

As a mobile payment platform, MoMo wallet promotes cashless economy and providescustomers with One touch payment experience with more than hundreds of service utilities,including both basic payment (electricity, water, telecommunications, cable TV), e-commerce, tourism, transportation to other payment like entertainment, consumer finance,insurance, purchasing shopping, food service…

The application is trusted by consumers thanks to its strict safety standards, certification withthe highest international security standards (PCI DSS), 2FA, SSL/TLS, tokenization, andmulti-layer security when logging in payment (OTP authentication code, fingerprint, faceauthentication, auto-lock apps, and automatic prevention of transactions with signs of fraud).MoMo 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 Currently,MoMo has more than 5000 withdrawal points spread across the country You can go toMomo withdrawal points for convenient withdrawal Most e-wallets charge a fee for makingwithdrawals from e-wallets, but only Momo is free for 10 withdrawals/month

2.1.3 Perceptual Map:

According to 329 respondents in a DecisionLab survey that answered the question, "What isthe reason for customers to use an e-wallet more frequently than others?" PayPal is rankedfirst in the fast transaction process (59%) among the other three wallets (ShopeePay, Z

ViettelPay) It shows that the MoMo e-wallet is capable of managing customer paymentsquickly and efficiently (See Figure 2 in Appendix)

As mentioned above, one of MoMo’s points of difference (POD) is its security MoMo'ssecurity system has achieved the highest level of Service Provider PCI DSS (Payment CardIndustry Data Security Standard) global security certification (Service Provider level 1) and isrecognized as the first among the few e-wallets in Vietnam to receive this certification(ZaloPay, AirPay, Moca ) At the same time, MoMo Wallet also applies advanced andoutstanding authentication technologies such as two-factor authentication, authentication byfingerprint or face recognition, tokenization, etc With this PCI DSS International Securitycertification, MoMo E-Wallet is ranked first for the strict security system that partners andcustomers can be completely assured of

From subjective assessments of e-wallet users (through market survey results) incombination with the reference information, we propose a perceptual map based on securityand speed of payment for MoMo e-wallet

Figure 1 MoMo's Perpeptual Map

2.2 MoMo’s Marketing Mix

2.2.1 Product

2.2.1.1 Core customer value

MoMo aims to be the nation's leading e-wallet service that will promote the development ofthe cashless economy by providing its customers with one-touch payment.

2.2.1.2 Actual product

Brand name: MoMo Super App.

Quality: fast, convenient, and safe All of the world in a single tap.

Postpaid wallet: zero interest rate; no activation fee; no service fee

MoMo Entertainment: Buy movie tickets, lottery tickets, karaoke at your fingertips, payjust one second No waiting time, save time

- MoMo Donation: Join hands to help in difficult situations Donate the ‘Heo Vàng’,give thousands of gifts Generate merit, make offerings and pray for peace

- MoMo Travel: Manage your entire trip, compare all prices Paying for air tickets,passenger cars, trains, hotels Safe and secure, full of promotions

Design:

Theme color: Magenta

Main screen: The main menu contains four prominent features: deposit money, withdrawmoney, view QR codes, and scan codes along with other services provided by MoMo

Safety: MoMo security technology is globally certified Ensure user accounts will be

protected with the highest level of security

Performance:Transfer money in just 1 second, super-fast payment/recharge, save customers

time and serve customer 24/7

MoMo has a friendly interface and simplifies all operations Therefore, all ages and allprofessions can use MoMo easily and conveniently One of the most important factorsinfluencing people's intentions to use MoMo's e-wallet is perceived ease of use

There are often many attractive incentive programs associated with hundreds of partners, sousers save more money when using MoMo

2.2.1.3 Augmented product

According to the recent research of 505 interviewers who had used at least one e-wallet in HoChi Minh City and Hanoi by Cimigo Market, Momo is among the three most popular e-wallets in the two main cities of Vietnam These three e-wallets account for more than 90percent of e-wallet users

In addition, the result also shows that MoMo e-wallets are mostly used for mobile top-up,money transfer, utility bill payments, food delivery, and ride-hailing payments However,when considering a rival e-wallet like ZaloPay in general, both businesses produce similarproducts However, for ZaloPay, their business is primarily focused on leveraging Zalo's userdata Another difference is that ZaloPay is free for all deposit and withdrawal transactions.However, they can only be made from linked bank accounts As can be seen, Momo's feeschedule is more detailed, with a variety of forms and charges for a variety of services thatZaloPay accepts for free

To summarize, rather than taking users' data as Zalo Pay did, MoMo e-wallet is currentlyestablishing itself as a highly secure e-wallet with quick payment service Continuouslydeveloping a smart mechanism for one-touch payment, improving the product quality, andpositioning the brand as a super app with an all-in-one application should be the company’stop priorities at the moment

2.2.2 Price

Withdrawal cost of MoMo is quite high compared to withdrawing cash from bank accounts.The high fee may be off-putting for target customers who are workers away from home Theymust send money home every month because they are the family's primary source of income

Their main priority is to use MoMo to pay for all expenses while receiving great deals at the

most competitive prices (See Table 1 and Figure 8 in Appendix)

2.2.3 Place

MoMo service has now covered all essential family and personal payments, and by the end ofJune 2018, MoMo had completely covered places such as convenience stores (Circle K,MiniStop), supermarkets (Lotte Mart, Coopmart), and food chains (Gongcha, Tocotoco,Royal Tea) At these points, users just need to open MoMo, give their payment code(barcode) to the cashier, or scan the QR code located in the stores to be able to pay However,the marketing objectives have shown the potential to expand the market in postal andtelecommunications services

2.2.4 Promotion

Most of the information channels people know about MOMO e-wallets are from sources such

as “word of mouth", “public relations” or “Advertising on Television” Besides, the source ofinformation that affects the decision to use an e-wallet is also based on the form of ReferralMarketing This is a form of service promotion through the form of user referrals That is,each person who can successfully introduce others to use momo wallet will enjoy someincentives when paying on the wallet This form has invisibly stimulated users without theneed for any other form of promotional communication channels Therefore, when there is auser and experience, that person will summarize all the information in the most concise way

to convey to others At this time, listeners will find it easier to understand and stimulate theirneed to use

III SWOT Analysis

3.1 Strengths

 High customers’ awareness:

MoMo is one of the first developers of Fintech (financial technology) services in Vietnam.With the leading advantage, MoMo has always been the brand that occupies the "top ofmind" position of consumers

With nearly 40 different e-wallets, six prominent e-wallet brands include Momo, ZaloPay,ViettelPay, Shopee Pay, Moca, and VNPTPay According to the report from Statista, Momo

is the most popular mobile wallet brand in Vietnam 2020, accounting for 53% of the marketshare; the following mobile wallet brands are ViettelPay (25.2%), AirPay (10.6%), ZaloPay(5.3%), and others The research conducted in October among e-wallet users nationwide of

589 respondents shows that Momo is the most popular e-wallet brand in Vietnam, shared by86% of respondents Momo is a prominent e-wallet popularly used by Generation Z (54%),Millennials (59%), and GenX (47%)

 Available resources:

MoMo is the number one e-wallet company in Vietnam, one of the largest and fastestgrowing Fintech applications in the world MoMo's award-winning super app platform istrusted and loved by tens of millions of users and business partners for its ease of use,attractive design, and robust ecosystem Currently, MoMo has more than 1,600 employeeswith its headquarters in Ho Chi Minh City and offices in Hanoi and Da Nang

In December 2021, MoMo announced the completion of the 5th round of funding (series E).The company has received approximately $200 million worth of investments from globalinvestors including Mizuho, Ward Ferry, Goodwater Capital and Kora Management

 Integrate many convenient services:

With the ambition of becoming a "super application" - where users can access a variety ofsupport services that help in everyday life Momo currently provides services such as movieticket booking, hotel booking, airline ticket purchase, bill payment, financial investment, etc.Momo is currently available on the two largest operating systems, IOS and Android, soanyone can download and use the Momo e-wallet Currently, Momo has cooperated withmajor partners such as FPT Shop, Circle K, Ministop, Cheers, F88, etc., allowing users todeposit/withdraw money directly at more than 4000 transaction points

Momo has achieved international security certification PCI DSS in terms of safety Not onlythat, MoMo also implemented a savings refund feature for all customers, helping usersreceive cashback when shopping at supermarkets and convenience stores These products andservices are deployed in a safe, economical, and convenient manner Besides, Momo isgradually helping users change their lifestyle, behavior, and habits in shopping by paying

through marketing and promotion programs in a simple and close approach, creating practicalvalues for the community by becoming a channel to transfer donations to social programs.

 Effective customer retention strategy:

Momo encourages customers to raise their “trust scores” to receive exclusive benefits Byperforming transactions and other tasks, users receive the benefits such as: Discount whenbuying insurance; Increase your savings limit with the “magic bag”; Increase postpaid walletlimit and loans

3.2 Weaknesses

 Limited coverage:

Momo's usage locations are mostly in big cities and provinces This makes many people inrural areas not have access to direct deposit/withdrawal methods At the same time, in ruralareas, there are not many shops accepting payment via Momo

 High service fee:

Momo’s users can transfer money without fees only when they transfer within the app Fortransferring money or withdrawing money to the bank, Momo offers a free transfer limit,when used up, users will have to pay a fee of up to 0.6% of the transaction value

3.3 Opportunities

 Increasing demand for e-wallets:

In recent years, it is clear that the demand for online payments is increasing To explain this

we need to consider the shift between generations of consumers Gen Z will be the keyconsumers in the near future For this generation, they are often quick to accept change anddevelopment, especially technology With the conveniences that e-wallets bring, gen Zquickly changed their payment habits, leading to a significant increase in usage demand

 Huge market potential:

With an increasingly connected young population and a strong growing economy, Vietnamhas become a promising market for the Fintech sector in general and e-wallets in particular

This proves that the potential for development of the e-wallet market in Vietnam is huge In

2020, there are an estimated 19.2 million e-wallet users in the country and the number ofusers is forecast to nearly triple in the next 5 years

 Favorable environmental factors:

In addition to the fact that urban centers have been directing people to cashless purchases and

QR codes to help businesses accept cashless payments, limiting exposure to infection in thecommunity in the context of the Covid-19 pandemic has made it difficult for people to accessgoods and services in the old way and gradually switch from direct shopping to online forms.This is a big turning point for the development of payment gateways and e-wallets whenpaying online, causing the rate of this form of payment to increase for e-wallets in generaland Momo in particular

Regarding the economic environment, Vietnam economy has been growing rapidly over thepast few years Some of the noticeable fields include the digital economy development, e-

commerce, and digital payment trends (see Figure 3, 4, 5, 6 in Appendix) All of which

directly create opportunities for MoMo to innovate their products and services as well asreach new customers

Regarding the technological environment, Nowadays, Momo e-wallet offers over 200different features, ranging from money transfers and saving with interest to making donationsand taking loans Advertising itself with multiple features, great ease of use, nation-widepopularity, and world-class security, Momo e-wallet is considered ahead of the technologyrace compared to its direct competitors in Vietnam In the future, it is expected that the digitalwallet industry will further improve its customers’ experiences The most mentioneddevelopment opportunities include global access, great user-experience through high securityand diverse customization options, etc

3.4 Threats

 Barriers from environment factors:

The legal and institutional system in Vietnam has not created favorable conditions for thedevelopment of the digital economy, as evidenced by the insufficient implementation ofprograms and policies to develop the digital economy, the lack of digital skills and digital

human resources that meet the requirements of the digital economy, and enterprises' weakdigital transformation capacities.

Digital wallet providers are rapidly upgrading and diversifying their services The types ofassets and payment methods are important considerations when using e-wallets As a mixbetween a storage and a transaction medium, a digital wallet can be a closed, semi-closed, oropen wallet application, referring to whether it can perform transactions with differentservices or banks Digital wallets all over the world also involve centralized and decentralizedsystems Regarding accessing customers’ assets, nowadays digital wallets allow mobile, web,Internet of Things (IoT), and PTO access These are just a few of the services that walletscurrently provide

 Fierce competition:

With more than 40 e-wallet providers, competition in the Vietnamese market is fierce Seeingthe potential of the e-wallet market, many businesses have begun scheming to gain marketshare Although Momo's main competitors only revolve around names such as Moca,ZaloPay, Viettel Pay, ShopeePay and VNPAY, smaller providers are also launching manyattractive promotions to attract users The competition focuses on which company can build

an ecosystem that is attractive enough for both users and merchants

The table below examines the three brands and demonstrate the rivalry that MOMO faces inthe e-wallet business

MoMo (2014) Zalo Pay (2016) Moca (2013)

Application Main color: purple (a

mixture of red and blue)

Purple 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 andGreen >

Blue indicates financial security and trust While green means growth, maturity, and a promising future

Main color: blue

This means protection and financial security,

a sense of dependability, and trust Blue is often chosen to convey stability and evoke trust in customers

Types of

service MoMo offers services such as money

transfers between Momo accounts, withdrawals and deposits, bill payments, e-commerce, personal finance, and so forth

Furthermore, MOMO

is Vietnam's first wallet that allows users

e-to withdraw money from their MoMo account

ZaloPay allows customers to pay online for internet services, electricity bills, and recharge phones for prepaid subscribers, cable TV

If friends use ZaloPay, ZaloPay can identify them in their contacts, making money transfers and transactions with pals faster

Moca, which has a strategic alliance withGrab, has swiftly become a major player in the e-wallet competition

Moca, with its cleverly designed QRcode, enables users topay 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, and

50,000 corporate partners including the

25 biggest banks in VietNam

Through the MoMo wallet, millions of transactions are processed through MoMo Wallet every day

e-In 2021, this app has 6.9 million downloadsand 8.17 million users It has collaborated with 269 new key partners, including Baemin, Tiki, and Sendo

Moca has approximately 5 million customers of Moca mobile paymentsolutions in general as

a result of its cooperation with Grab

Moca currently has direct connections with

25 commercial banks and one digital bank, allowing it to serve about 92% of ATM card users in Vietnam

Media

channels National television

WebsiteYoutubeFacebook

WebsiteYoutubeFacebook

WebsiteYoutubeFacebook

Important

Achivement

s

3/2018: MoMo was named one of the top

100 Fintech firms in the world

10/1/2019: MoMo is named "The e-wallet

of the year" by The Asian Banker

9/4/2020: MoMo was named Best Digital Wallet Product at TheAsian Banker

Vietnam Awards 2020

2019: ZaloPay earned the Vietnam Typical Electronic Wallet Award27/8/2020: ZaloPay e-wallet was

rewarded in the category of "E-wallet with the rich ecological system"

as a result of the

"Vietnam Iconic Wallet 2020 VotingProgram."

E-2020: The International Data Group (IDG) in partnership with the Vietnam Banks Association recognized Moca as the typical fintech business

2018: Moca is also the only Fintech in Vietnam to receive this honor four years

in a row, beginning

 Risks in e-wallet payment/technology risks:

Vietnam has young users, cheap internet, and a large number of smartphone users But it'salso a security weakness, the more users, the higher the risk Currently criminals are notfocused on financial infrastructure but mainly on users and that is the biggest vulnerability.Safety is the factor that users are most concerned about in today's electronic paymenttransactions

Currently, most scammers are hitting the psychology of "preferring rewards", "benefiting"and the gullibility of users In addition, users have the habit of installing many apps withoutcareful control, creating a corridor for hackers to attack the device

Experiences from other countries show that the end user is the most important and difficult toupgrade link in the security system's components Once the end user has no sense of security,

no matter how secure the bank is, it still cannot protect when there is a transactionmalpractice Besides, the awareness of using copyright in Vietnam is also very low Once theuser uses the jailbreak license, the security methods are not very effective

IV Product Improvement Opportunities

4.1 Product support:

In order to protect the brand of MoMo e-wallet and the rights of users, we suggest that MoMoimplement OTP or secure questions when transferring huge amounts of money to improve

the safety of transactions for customers This method is suitable for all target customers andcan meet the highest secure payment standard that they wish for.

For product development, MoMo should introduce a new service that transfers and receivesmoney through both mobile network platforms without having to connect to the Internet Itwill be convenient for students and workers to transfer money while they are at work or atschool with no wifi connections This can meet the need for a fast and convenient paymentservice

Focus on training and transferring technologies, especially in developing, maintaining, andfixing errors that occur when withdrawing or depositing on MoMo for the employees

4.2 Brand value:

To encourage customers to use this transaction service, MoMo should reduce the fee whenwithdrawing money from bank accounts as well as at transaction points The solutions to thisproblem include connecting with other banks and financial institutions at stations across thecountry to reduce the withdrawal fee from MoMo, which would remain in the range of VND1,000–VND 3,000, which is the standard withdrawal fee from other banking systems

This new strategy is designed to target both customer groups, which are workers workingaway from home and students Since the demand for delivery of goods through the PostOffice before the Lunar New Year holiday is at its peak, the freight traffic is doublingcompared to weekdays, especially in key areas like Ho Chi Minh City and Ha Noi In order toensure a stable flow of goods and serve the needs of customers who use postal services well,MoMo can join hands with Vietnam Post Corporation (Vietnam Post) to fully prepare plans

to organize production on this occasion

V Marketing Goal

The weakness, as indicated in the SWOT analysis, is that MoMo's reach is limited, with usersconcentrating mostly in major cities As a result, MoMo loses a big number of consumers thatlive in rural areas or small cities/towns This is due to a variety of factors, includinginadequate internet coverage in these areas, a lack of people's habit of paying with e-wallets,and a lack of stores and supermarkets allowing payment via e-wallets/internet banking