FINAL REPORT SERVICE MARKETING SERVICE MARKETING ZALOPAY

Currently, the company is focusing on developing 4 strategic product groups including: Online games Games: Vo Lam Truyen Ky, Kiem The, etc.; Connection platforms such as Zing, Zalo, 123

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

FINAL REPORT SERVICE MARKETING

SERVICE MARKETING: ZALOPAY

By: Group 06 Advised by: Phan Hà Thanh Nhã

Major: Marketing Year: 2022

TEACHER’S COMMENT

.

Member List

Market Overview

(Leader)

marketing mixCustomer attritionAbout ZaloPay

Customer retentionstrategies

People

Value through themarketing mixValue through themarketing mix

Build customerengagement

THANK FOR

To be able to carry out and complete the report on the topic "ServiceMarketing ZaloPay.", I have received a lot of support and help as well as concernand encouragement This report is also completed based on the reference, learningexperience from related research results, specialized books, and newspapers of manyauthors at universities, research organizations, organizations, politics published onthe internet, books, newspapers, etc Especially, the support and guidance fromteachers who are teaching at Ton Duc Thang University and the help, facilitatematerial and spiritual support from family and friends

First of all, we would like to express our deep gratitude to lecturer Mr Phan

Hà Thanh Nhã - the instructor who directly teaches the class always spent a lot of timeand effort in guiding and supporting us throughout the learning process, practice,accumulating knowledge, and make and complete reports

Although I tried very hard to complete the report, it was due to my nascentknowledge, lack of professional experience, as well as difficulties in teamwork due

to the impact of the ongoing epidemic situation Complicated, so there are manyshortcomings I hope that the teachers will have comments and help to improve thetopic

Ho Chi Minh City, April 23, 2022

DECLARATION OF AUTHORSHIP THE THESIS HAS BEEN ACCOMPLISHED

AT TON DUC THANG UNIVERSITY

I here by declare that this thesis was carried out by myself under the guidanceand supervision of Mr Phan Hà Thanh Nhã; and that the work contained and theresults in this thesis are true and have not been either submitted anywhere for anyprevious purpose or published in any other literature The data and figures presented

in this thesis are for analysis, comments, and evaluations from various resources by

my own work and have been fully acknowledged in the reference part

In addition, other comments, reviews and data from other authors, andorganizations used in this thesis have been acknowledged, and explicitly cited

I will take full responsibility for any fraud detected in my thesis Ton DucThang University is unrelated to any copyright infringement caused on my work (ifany)

Ho Chi Minh City, April 23, 2022

INTRO 1

Market size: 1

Market trends: 1

1 About the Service: 2

1.1 VNG Company: 2

1.2 ZaloPay: 3

2 Target customer: 6

2.1 Partner 6

2.2 Potential partners 6

2.3 EndUser 7

3 Delivering customer- experience value: 8

3.1 Value through the marketing mix: 8

3.1.1 Service quality: 8

3.1.2 Service guarantees: 9

3.1.3 Service recovery program: 11

3.2 Price 12

3.3 Place 15

3.4 Promotion: 19

3.4.1 “Lì xì gắn kết tình thân” campaign 19

3.4.2 IMC tools of campaign 20

3.4.3 Results of the campaign 23

3.5 People 24

3.5.1 Coaching: 24

3.5.2 Consultant: 25

3.6 Process: 25

3.7 Physical evident 27

3.7.1 Facilities: Website: https://zalopay.vn/ 28

3.7.2 Ideal working environment 28

5.1 Loyalty schemes: 29

5.2 Customer club 30

5.3 Sales promotion 31

6 Build customer engagement: 31

6.1 Gamification: 33

6.2 Relational attachment: 35

6.2.1 Influencer Marketing 35

6.2.2 Partner Marketing: VNG Promotes Strategic Cooperation With Universities 35

6.2.3 Affiliate Marketing: 37

6.2.4 Referral Marketing 37

6.3 Values-based attachment 38

6.3.1 Campaign "Million hearts of gold, join hands to fight the epidemic": 38

6.3.2 Campaign “Saigon is tolerant” 39

6.3.3 Campaign “Mang Tet ve nha” 2022: 41

CONCLUSION 44

REFERENCE 45

Figure List

Figure 1: Logo of VNG Company 2

Figure 2: Logo of ZaloPay 3

Figure 3: ZaloPay ' phone interface 4

Figure 4: Flowchart of service delivery 6

Figure 5: Grocery stores combine traditional payment methods with modern ones 15

Figure 6: ZaloPay has cooperated with Lotte Mart 16

Figure 7: Lazada users can pay via ZaloPay 17

Figure 8: Paying with ZaloPay is very popular right now 18

Figure 9: MV Tấm Cám Đại Chiến 21

Figure 10: Gamification 1 33

Figure 11: Gamification 2 34

Figure 12: Gamification3 35

Figure 13: Partner Marketing 36

Figure 14: Affiliate Marketing 37

Figure 15: Nitizen's Responding 39

Figure 16: Campaign app interface 41

Figure 17: Campaign "Mang Tet ve nha" 43

Table List

Table 2: Popular types of transaction via e-wallets 19

Table 3: ELECTRONIC Wallet ACTIVITIES COMPLAINT PROCESS 27

Table 4: Customer Respondents 32

Market size:

The Vietnam mobile payment market size was valued at $250 billion in 2019, and isprojected to reach $2,732 billion by 2027, growing at a CAGR of 30.2% from 2020 to2027

Mobile payment refers to a payment method in which money is transferred from variousmobile devices such as smartphones, tablets and other smart devices, for purchasing aproduct or services In addition, various banks and financial institutions are providingmobile payment services as it provides bank customers with convenient, fast and securepayment processing systems Furthermore, mobile payments eliminate the need ofcarrying cash, credit cards and debit cards for paying for a particular product andservices as well as provide a secured substitute for the cash-based transaction Inaddition, various industries such as entertainment & media, transportation, BFSI andothers, are rapidly adopting mobile payment services This helps in improving thesecurity of the payment method and provides faster payment services, which ispropelling the Vietnam mobile payment market growth

Market trends:

With the growth of the Vietnamese e-commerce segment and the COVID-19 pandemichave made using digital payment services, especially e-wallets, the “new normal”among many of the highly connected consumers in Vietnam In 2020, there were around19.2 million mobile wallet users in the country, and the number of users was forecast togrow almost three-fold between 2020 and 2025 According to a survey conducted in

2021, the usage rate of e-wallets reached close to 60 percent among respondents acrossVietnam This rate was noticeably higher in bigger cities, such as HaNoi or Ho ChiMinh City The same survey also revealed that over 60 percent of Vietnamese users had

at least two e-wallet apps in use

1 About the Service:

1.1 VNG Company: Full name: VinaGame

Figure 1: Logo of VNG Company

- Mission: Technology Creation and People Development For a better life VNG believes

in the power of the Internet and sets the mission of giving Internet users a meaningfulexperience

- Core Value: VNG's strength is its people and corporate culture Based on the guideline

of 3 core values, members at VNG always have a spirit of dedication for the commondevelopment of VNG and the community

- Location: VNG Campus - Z06 Street No.13, Tan Thuan Dong Ward, District 7, Ho Chi Minh City

- Typical products:

VNG is the leading Internet and Technology Company in Vietnam, has an extremely rich ecosystem of Technology products, meets the needs and builds solid trust with more than 100 million customers both at home and foreign countries

Currently, the company is focusing on developing 4 strategic product groups including: Online games (Games): Vo Lam Truyen Ky, Kiem The, etc.;

Connection platforms such as Zing, Zalo, 123 Go, Bao Moi ; Electronic payment method: 123 Pay, ZaloPay and Cloud service VNG CLOUD

2

Founded in 2004, VNG has strongly influenced the entertainment needs of youngpeople at that time and quickly effectively exploited the potential of games in theVietnamese market It can be said that VNG has contributed to promoting and bringing the online entertainment platform in Vietnam to a completely new golden age.

Not only making games, thanks to its strengths in technology and humans, VNGcontinues to expand its business into potential but also challenging segmentssuch as entertainment platforms, electronic payments, etc and achieve certain achievements

1.2 ZaloPay:

Figure 2: Logo of ZaloPay

Figure 3: ZaloPay ' phone interface

Zalo Pay is a mobile payment application owned by Zion Joint Stock Company anddeveloped by VNG Company This product has been licensed by the State Bank ofVietnam since January 18, 2016, providing many useful features and extremely safesecurity methods Thanks to the Zalo social network's ecosystem, which was alreadyvery crowded before, the Zalo Pay wallet has been strongly received and is consideredone of the most popular e-wallets today.

In terms of use, Zalo Pay wallet has developed many essential and unique features thatfully meet the payment needs of users in life at that time For example, the main andtypical utilities of Zalo Pay are worth mentioning such as money transfer; directpayment transactions by QR code or, if it is an Android device, via NFC and Bluetoothlinks, payment transactions of electricity, water, and Internet bills; send congratulationgifts on important special occasions; Payment of credit card transactions, VISA /MasterCard, etc Besides information security, with the motto "Payment in 2 seconds",Zalo Pay also focuses on the fastest and most convenient for users

Currently, there are 4 ways to classify services such as:

+ People Processing

+ Mental Stimulus Processing

+ Possessing Processing

+ Information Processing

ZaloPay's e-wallet service belongs to the group of Information Processing, which

directly provides possessing and intangible acts

Figure 4: Flowchart of service delivery

Step 1: Users download ZaloPay application from Appstore or CH Play

Step 2: User logs in to confirm personal information

Step 3: User selects the link with the desired type of bank or payment

Step 4: Choose the type of service you want to use

Step 4.1: Pay for purchases, goods, services, etc via QR code or Barcode

Step 4.2: Transfer money via e-wallet

2 Target customer:

2.1 Partner

ZaloPay's main source of income is from business partners Therefore, the target

customers that ZaloPay focuses on are businesses

Currently, ZaloPay is a partner providing collection and payment services for more than

100 partners who are large enterprises nationwide Partners spread across all fields:electricity, telecommunications, mobile, television, personal finance, banking, aviation,entertainment, games, etc

2.2 Potential partners

ZaloPay continues to target businesses looking for a versatile sales and payment

channels to support business development nationwide with the following functions:

Online sales

Collect money for goods and servicesPaying commissions and servicesDirect interaction with sales agents2.3 EndUser

Loving to using vouchers

Loving the convenience of cashless payments

c Location:

Ho Chi Minh city is the biggest target market (41%)

Ha Noi city is the second (23%)Other big cities such as: HaiPhong, DaNang, CanTho, BinhDuong, etc (36%)

d Behavioural:

Internet savvy, open-minded and quickly adopt new trend adoptersTheir mobile payment behaviour included internet mobile banking apps and other non-social mobile payment services such as Momo and Viettel Pay To compete with this plethora of mobile payment options, ZaloPay had to find

an easy and intuitive way to get people to experience its money transfer solution

Want to be an explorer, tend to link with the purposeful brand

3 Delivering customer- experience value:

3.1 Value through the marketing mix:

3.1.1 Service quality:

Reliability

ZaloPay has achieved remarkable achievements compared to its competitors that arecreating familiarity, reliability and convenience for customers when setting up Becausemany people have used Zalo for messaging, it is both easy to adopt ZaloPay It isextremely important in the e-wallet industry, which invokes greater trust in the productsand services

In the competitive e-wallet industry, nowadays, some brands have a need to innovate inapproaching and attracting customers with outstanding marketing campaigns Inprevious years, Zalopay had been successful with marketing strategies, promotion thattarget customer insight with a lot of brand activations, communications on social media,etc, especially, integrating into chat on Zalo applications is a direction that has achievedmany successes of super-app models

Assurance

Most of the instructions are done through technology to help customers easily accessand use features or announce new programs or features Zalopay builds touch pointsaccording to a guiding process that shows dedication and professionalism in the way ofworking In addition to all questions that need to be answered, 24/7 customer supportservice is made according to customer care processes and scenarios, thereby expressingthe desire and readiness of service staff to provide the service timely to customers

Tangibles

Over the years, the app's appearance has been upgraded and developed to make it easyfor customers to use, create an impression and highlight the brand Besides, static QRsplaced in stores always have promotions attached and are professionally equipped

Through the Zalo application, Zalopay has been taking care of customers on a regularand continuous basis A reminder of preferential programs, vouchers, or reminders ofbills to the payment period In addition, the app's own notifications can announce newpromotions, and increase the touchpoints that increase customer retention This willmake them feel cared for regularly and remind them of the lasting brand

Responsiveness

Zalopay responds to customers' inquiries through questions in the form of topicsprepared on the website From there, customers can search and answer their wishesabout the service In addition, on the app, customers can conveniently use the supportcenter at any time with forms such as texting or calling to consult with staff

3.1.2 Service guarantees:

Information

As the market becomes more and more modernised and shopping is alsotechnologicalized, convenience is quickly becoming a competitive factor for manyservice industries In some service industries such as mini supermarkets or restaurants,today, payment by mastercard, visa or electronic wallets has been accepted, withconvenience and ease of use, ZaloPay is an application that is not Not to mention, withease of use, convenience and speed, cooperation with many large business partners,ZaloPay meets all the elements that an e-wallet application needs

ZaloPay is a mobile payment platform, or e-wallet, that allows users to make onlinemoney transactions on phones and tablets

This application is owned by VNG - Vietnam's technology company, integrated with thecommunity of 70 million Zalo application users ZaloPay develops rapidly and hasmany advantages in participating in the online payment market

Currently, ZaloPay is a payment partner of Visa, MasterCard, Vietcombank,Vietinbank, BIDV, Sacombank, Eximbank, SCB Bank, Viet Capital Bank, JCB,

ZaloPay is currently available on Appstore and CH Play platforms, or users candownload it directly with the APK file on Zalo's homepage After accessing theapplication, users will be guided through each basic operation to approach and becomefamiliar with the application.

Consultation

Questions about the user manual or frequently asked questions and problems fromcustomers are answered in detail and classified in the Support Center directory Inaddition, customers can send support tickets or via Zalo switchboard and theapplication's Fanpage at the social networking platform Facebook

Billing

ZaloPay's transactions are recorded in the transaction history list, the transactions areclearly recorded with the transaction date, time and time and the transaction code helpscustomers to check back in detail

Payment

As an e-wallet platform, ZaloPay is used as a payment method for services andproducts Currently, many convenience stores and restaurants allow payment withZaloPay, with simple operation, scan the code customers can be paid for products or

services The amount deducted will be deducted directly from the amount available inthe ZaloPay wallet Deposits, withdrawals and deductions are also automated by theservice.

Safekeeping

ZaloPay will ask for your name, email, and phone number when you sign up for anaccount Depending on the service you use, ZaloPay may also collect some otherinformation such as device location or contact information (only after your consent).This information is used to provide features, services and enhance account security, and

to research and improve ZaloPay's services

Besides that, ZaloPay won’t share any customer’s information to the third person unlessthat bank or companies provide the service on ZaloPay

Exceptions

Customer complaints about products and services are quickly resolved by ZaloPay, andZaloPay's policies are beneficial to users

3.1.3 Service recovery program:

- Each party (Zion or Seller) is solely responsible for and ensures that the supportresolves the Customer's complaint about the goods or services provided by that Party, in thescope of obligations as stipulated in the cooperation contract and policies of each party

- In the event that one of the Parties receives a request from the Customer,

within the scope of the unit we deal with, we will forward the Customer's request to the unit in charge of that scope

- Zion and the Seller are responsible for coordinating the work of supporting customers to achieve results with the highest fruit

- Zion's support channels for handling tracing and complaints:

- Customer care hotline:

Email: hotro@zalopay.vn

11

Phone: 1900 54 54 36

Time: 24 hours a day and 7/7 days a week

The investigation and settlement of complaints via the telephone switchboard will be recorded to raise awareness of high quality service

- Directly at the support address of ZION Joint Stock Company at: Z06, street 13, KCX Tan Thuan, Tan Thuan Dong Ward, District 7, Ho Chi Minh City

The customer complaint settlement process will be further clarified in Part 3.6 Process

3.2 Price

The war between e-wallets in Vietnam is getting more and more intense, big brands arepouring more and more money into implementing promotions, discounts or expandingtheir ecosystems

Currently, ZaloPay is one of the major brands in e-wallet platforms This giant hasimplemented a competitive pricing strategy in order to keep customers using the serviceand collect potential customers from stores other brands

The overview of usage costs is not too different from direct competitors such as: Momo,AirPay, ViettelPay, etc

About the deposit and money transfer in the wallet, currently ZaloPay is allowing it to

be done for free

ZaloPay only starts collecting wallets with services related to card signals and

international payments Below is a detailed description of fees for services

This fee schedule is effective from March 1, 2022

The above fees are inclusive of VAT

Table 1: Table of fees for using ZaloPay's services

A Top up/Pay ZaloPay with money sources

Zalo Pay is a mobile payment application owned by Zion Joint Stock Company and developed by VNG Company This product has been licensed by the State Bank of Vietnam since January 18, 2016, providing many useful features and extremely safe security methods Thanks to the Zalo social network's ecosystem, which was already very crowded before, the Zalo Pay wallet has been strongly received and is considered one of the most popular e-wallets today.

In terms of use, Zalo Pay wallet has developed many essential and unique features that fully meet the payment needs of users in life at that time For example, the main and typical utilities of Zalo Pay are worth mentioning such as money transfer; direct payment transactions by QR code or, if it is an Android device, via NFC and Bluetooth links, payment transactions of electricity, water, and Internet bills; send congratulation gifts on important special occasions; Payment of credit card transactions, VISA / MasterCard, etc Besides information security, with the motto "Payment in 2 seconds", Zalo Pay also

Currently, there are 4 ways to classify services such as:

Figure 4: Flowchart of service delivery

Step 1: Users download ZaloPay application from Appstore or CH Play

Step 2: User logs in to confirm personal information

Step 3: User selects the link with the desired type of bank or payment

Step 4: Choose the type of service you want to use

Step 4.1: Pay for purchases, goods, services, etc via QR code or Barcode

Step 4.2: Transfer money via e-wallet

2 Target customer:

2.1 Partner

ZaloPay's main source of income is from business partners Therefore, the

target customers that ZaloPay focuses on are businesses.

Currently, ZaloPay is a partner providing collection and payment services for more than 100 partners who are large enterprises nationwide Partners spread across all fields: electricity, telecommunications, mobile, television, personal finance, banking, aviation, entertainment, games, etc.

ZaloPay continues to target businesses looking for a versatile sales and payment

channels to support business development nationwide with the following functions:

6

Online sales

Collect money for goods and services Paying commissions and services Direct interaction with sales agents 2.3 EndUser

Loving to using vouchers.

Loving the convenience of cashless payments.

To compete with this plethora of mobile payment options, ZaloPay had to find an easy and intuitive way to get people to experience its money transfer solution.

Want to be an explorer, tend to link with the purposeful brand

3 Delivering customer- experience value:

3.1 Value through the marketing mix:

3.1.1 Service quality:

Reliability

ZaloPay has achieved remarkable achievements compared to its competitors that are creating familiarity, reliability and convenience for customers when setting up Because many people have used Zalo for messaging, it is both easy to adopt ZaloPay.

It is extremely important in the e-wallet industry, which invokes greater trust in the