MARKETING PLAN ANALYSIS THE CASE OF MOMO e WALLET

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 mil

IV Marketing Goals

I INTRODUCTION

Established in 2007

M_service is one of the pioneers in

the field of providing mobile

awareness of up to 97%

II Environmental Analysis

A big turning point for the development,

causing the rate of this form of payment

to increase for e-wallets.

2 Resources

Resources of MoMo:

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.

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.

3 Competitive Environment

application developed 2013 with a focus on

by Service Joint Stock ZaloPay is an e-wallet mobile payment via QR

Year Founded 14, 2014, Online payment system created Moca account, which

Mobile (abbreviated in 2016 by ZION Joint includes an e-wallet that

Application 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 often chosen to convey

stability and evoke trust

in customers

finance, and so forth.

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, making money transfers and

transactions with pals

faster

Moca, which has a strategic

alliance with Grab, has

swiftly become a major player in the e-wallet competition

Moca, with its cleverly designed 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 of transactions are processed throughMoMo Wallet

every day

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 has direct connections with

25 commercial banks and one digital bank, allowing it to serve

about 92% of ATM

card users in Vietnam.

March 2018: MoMo was

named one of the top 100Fintech firms in the world

January 10th, 2019: MoMo

is named "The e-wallet of theyear" by The Asian Banker

April 9th 2020: MoMo was

named Best Digital Wallet Product at The Asian BankerVietnam Awards 2020

2020: The International

Data Group (IDG) in partnership with the Vietnam Banks

Association recognizedMoca as the typical

fintech business

Moca is also the only Fintech in Vietnam to receive this honor fouryears 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.

5.3 Digital Payment Trends

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.

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 Vietnam has not created favorable conditions for the development of the digital economy

The insufficient implementation of programs and policies to develop the digital economy; digital skills and digital human resources

have not met the requirements of the digital economy

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.

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

MoMo offers over 200

different features

Ranging from money transfers, saving with

interest, to making donations or taking loans

Ahead of the race

Multiple features, great ease of use,

nation-wide popularity, and world-class security

In the future

7 Technologycal

Environment

Global access, great user-experience

through high security and diverse

customization options, etc.

B Target

Markets

Vietnam has become one

of the world’s most rapidly growing in digital

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

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

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

B Target Markets

III SWOT Analysis

e-Huge market potential

THREATS

Fierce competitio n

Risks in wallet

e-payment

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.

IV Marketing Goals

MoMo is intended to implement important future marketing goals like:

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.

Languages English and Vietnamese

Area Southeast Asia (SEA)

Population 97.34 million people

Demographics

Age Gender Both male and female

middle-income

Life stage Single, couple, family

- Free and instant money transfer

- Cashback has the highest refund rate

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

- Meets the highest secure payment standards

Targeted markets of MoMo e-wallet:

Customer group 1

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

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

5.1.2 Positioning

MoMo’s promise to

customers:

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.

MoMo’s brand mantra:

"TRANSFER MONEY - INSTANT MOMO"

This is:

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

The phrases "Let’s MoMo" is

increasingly frequently used by Gen Z youth in daily life.

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.

*Some of the challenges faced by MoMo e-wallet:

1/ Threat from New Entrants

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

Vietnam Specifically:

- E-wallets such as PayPal, Skrill, Payeer, and others are expanding in foreign markets.

money transfer services of banks… may participate.

==> Because of the Vietnamese people's habit of using money, potential rivals put a lot of pressure on MoMo.

2 Suppliers' Bargaining Power

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.

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

3 Buyers' Bargaining Power:

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.

==> Customers put much pressure on the

MoMo e-wallet As a result, MoMo must

develop a high-quality brand image and

better customer care.

4 Substitute Products Or Services Threats.

Banks, post offices, and traditional methods are examples of substitute products.

Transfer/multiply money by mail

Transfer/multiply money using a bank.

Trade customers and money the old-fashioned way: ask relatives or send by car

ways

It has an advantage in customer psychology and service habits in money transfer.

Advantages All localities have post - Relatively low fee - The method of receiving money is quite simple

offices -A high level of security.

-Get financial protection for the amount that customers transfer/send.