INTRODUCTION
Rationale
Globalization and international economic integration are rapidly advancing, significantly influencing global trade relations and intensifying market competition worldwide The formation of organizations and regional alliances such as the EU, WTO, ASEAN, FTA, and TPP fosters stronger international connections To further enhance these relationships and boost competitive advantages, effective logistics activities play a crucial role in helping countries establish a prominent presence in the global marketplace.
Vietnam’s developing economy has prompted the government to implement numerous initiatives aimed at strengthening the logistics sector, facilitating easier import and export activities to the global market Since the 1990s, Vietnam has deeply integrated with Southeast Asia and the world, highlighted by the signing of various free trade agreements (FTAs) and its accession as an official member of the World Trade Organization (WTO) on January 11, 2007 As of 2023, according to Tuoi Tre newspaper, Vietnam maintains diplomatic relations with 191 of the 193 United Nations member states, exports goods to approximately 230 markets, and benefits from numerous bilateral and multilateral trade agreements that foster economic growth and bolster the country’s transport, import, and export industries.
According to Report No 94/BC-BCT from the Ministry of Industry and Trade, over 4,000 businesses operate in freight forwarding and logistics across various modes of transportation, including rail, air, sea, road, inland waterways, and multimodal options This extensive industry presence indicates that supply may surpass demand in the coming years, intensifying competition among freight forwarding companies In such a challenging and competitive environment, implementing targeted, strategic, and effective solutions is essential to attract and retain customers seeking logistics services, ensuring business sustainability and growth.
Maxpeed Vietnam, established in 2005, is a fully licensed international logistics company specializing in sea freight, air freight, and comprehensive logistics services, backed by its parent company Maxpeed Korea, founded in 1990 and ranking No 1 in Korea’s logistics industry With 18 years of experience in the Vietnamese market, Maxpeed Vietnam has expanded to nine branches nationwide, employing 150 staff, operating 18 tractors, 15 trucks, and managing three warehouses Headquartered in Hanoi, the company’s network extends from the North to the South, consistently enhancing service quality and professionalism Although Maxpeed Da Nang is a new entrant, it is steadily developing and strengthening its business operations and service offerings to meet customer needs.
Maxpeed currently operates with four departments: sales, field, import-export, and accounting To effectively serve customers, the company emphasizes its sales department, which primarily finds customer information, bids, and sells products through Gmail, phone calls, B2B e-commerce platforms, and attendance at domestic and international fairs and exhibitions Communication with customers is maintained via applications like Skype, Zalo, Viber, Whatsapp, Line, Tango, and WeChat to provide excellent service and address customer inquiries However, the company's investment in customer search and technological tools remains limited, restricting its ability to develop resources for better customer acquisition To enhance sales, Maxpeed needs to promote marketing strategies on social media, participate in logistics groups, and develop a comprehensive website for instant access to information and pricing, ultimately enabling more proactive customer engagement and expanding its market reach.
Effective customer engagement is crucial in logistics, yet Maxpeed currently lacks proven methods for successfully approaching and managing clients This challenge hampers the company's ability to attract and retain customers, as well as deliver tailored solutions that meet their needs To ensure sustainable growth and stay competitive, it is essential for Maxpeed to research and develop innovative strategies for customer outreach This article will focus on addressing these issues and propose practical solutions to enhance customer approach methods.
So, this research is conducted to enhance the ability to reach customers at Maxpeed company in Da Nang City, VietNam.
Reasearch objectives
In this research, I focus on developing Maxpeed Logistics's ability to reach customers through newer, more timely ways such as using the support of information technology, network utilities, social, website.
Overview about Maxpeed Co., LTD – Da Nang Branch
Figure 1.1 Logo of Maxpeed – Da Nang
Source: From Maxpeed Website on the internet
Maxpeed Hanoi Co., Ltd - Da Nang representative office is a subsidiary of Maxpeed Vietnam, a leading freight forwarding company established in 2005 Located at Room 5.7, 5th Floor, Danabook Building, 76-78 Bach Dang Street, Hai Chau I Ward, Da Nang, this office plays a vital role in expanding Maxpeed Vietnam's logistics services in Central Vietnam Founded on May 27, 2016, the company is legally represented by Mr Vu Quang Hung, ensuring reliable and professional freight forwarding solutions.
Maxpeed Hanoi Co., Ltd – Da Nang Representative Office offers professional transportation and logistics services in Central and South-central Vietnam, prioritizing customer satisfaction Committed to delivering high-quality services at competitive prices, the company emphasizes reliability, speed, and efficiency, as reflected in its logo, which embodies its core values and vision.
Maxpeed Vietnam, established in 2005, is a leading freight forwarding company licensed by the government to provide comprehensive logistics, sea, and air transportation services As a member of Maxpeed Korea, the top logistics provider in Korea since 1990, Maxpeed Vietnam benefits from extensive expertise and a strong industry reputation Over 17 years of operation, the company has expanded to 9 branches nationwide, staffed by 150 employees, and operates a fleet of 18 prime movers, 15 trucks, and 3 warehouses Headquartered in Hanoi, Maxpeed Vietnam's extensive network spans from the North to the South of Vietnam, ensuring efficient logistics solutions across the country.
Maxpeed started as a small company with limited staff and transportation vehicles, but through a clear vision and sustainable development strategy, it gradually expanded its operations The company invested in additional transportation vehicles, advanced equipment, and cutting-edge technology to enhance service quality These strategic investments enabled Maxpeed to meet the growing demands of customers and grow its market presence.
Maxpeed Logistics is now one of Vietnam's leading logistics companies, with a comprehensive network of offices and warehouses across major cities including Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, and Can Tho The company has expanded its presence internationally, operating in key markets such as China, Korea, and Japan Committed to providing reliable and efficient logistics solutions, Maxpeed Logistics has established itself as a trusted partner in both domestic and global freight forwarding Its extensive infrastructure and strategic global partnerships enable seamless transportation and supply chain management across Asia and beyond.
Maxpeed Logistics - Representative office in Danang was established in
2016 in Danang city with the purpose of providing professional transportation and logistics services in the Central and South-Central region.
Maxpeed Logistics prioritizes customer satisfaction by providing top-quality services and competitive prices, building trust and loyalty Committed to putting customers at the heart of everything we do, we ensure reliable logistics solutions that meet and exceed expectations Our dedication to excellent service quality guarantees high levels of satisfaction, making Maxpeed Logistics the trusted choice for your shipping needs.
Maxpeed Company is committed to delivering services that are fast, safe, cost-effective, and conducted with a standard attitude Operating under a legitimate business license in Vietnam, the company's core functions and responsibilities prioritize efficiency, safety, affordability, and professionalism to meet customer needs effectively.
Maxpeed Vietnam aims to become one of the top logistics solution providers in Vietnam by leveraging a team of experienced and capable experts Their mission is to deliver comprehensive and efficient logistics solutions that prioritize safety and ensure the timely delivery of goods Committed to excellence, Maxpeed Vietnam strives to meet customer needs with reliable and innovative logistics services across the country.
Maxpeed Vietnam aims to be a trusted partner in the logistics industry, delivering sustainable value to both businesses and the community Their vision emphasizes building a strong, sustainable growth model that supports their customers’ development Committed to contributing to Vietnam’s economic and social progress, Maxpeed Vietnam strives to foster long-term partnerships and overall industry advancement.
Our primary goal is to provide customers with the highest quality service at competitive prices, meeting their needs and generating value for them This commitment drives our company's growth and dedication to excellence We strive to become the top choice in the logistics industry by continuously improving our services through honesty and a strong team spirit.
Maxpeed Vietnam maintains its current service areas and sources high-quality goods from countries such as South Korea, Japan, Singapore, and China To attract and retain customers, the company plans to diversify its product offerings beyond clothing and furniture by expanding its sources of goods Additionally, Maxpeed - Da Nang Co., Ltd is committed to strengthening its human resources by providing employees with comprehensive training in professional skills, language proficiency, communication, discipline, and ethical values Recognizing the importance of a skilled workforce in the knowledge economy, Maxpeed will implement specialized training programs to enhance employee capacity and support its continuous growth.
The company operates in the business lines of freight forwarding, cargo handling, transport brokerage, customs procedures, document services, warehouse rental, delivery agent, domestic transportation, etc.
Cooperate closely with other companies both domestic and foreign to transport and deliver exported-imported goods, transit goods, exhibition goods,personal goods, etc.
The company should establish its own capital sources and financial services to support growth and sustainability It is essential to invest in equipment renewal and expand business operations to enhance competitiveness Maintaining accurate economic accounting ensures self-financing of borrowed debts while fulfilling obligations to the state budget, promoting long-term financial stability.
We offer comprehensive support services to enable customers to concentrate on their production and export operations, including customs clearance, documentation assistance (such as bills of lading, certificates of origin, import-export licenses), and inventory management These services streamline the export process, reduce logistical challenges, and ensure compliance with international trade regulations By providing these essential support solutions, we help businesses improve efficiency and expand their global reach.
We offer comprehensive cargo forwarding services, including receiving consignments, warehousing, and leasing storage yards to meet your logistics needs Our solutions cover storage fee management across various transportation methods such as ships, trucks, airplanes, and containers Additionally, we provide essential cargo services like goods collection and export procedures to ensure smooth and efficient supply chain operations.
Maxpeed Company, authorized by legal authorities and committed to state management regulations, undertakes necessary rights and obligations to ensure the effective operation of transportation services As a representative of the shipper, Maxpeed oversees the entire logistics process, managing all stages of cargo transport until the goods safely reach the final recipient.
Business situation of the company
Maxpeed VN has proactively diversified its business operations to navigate the increasing volatility of both domestic and international markets, expanding into sectors such as domestic transportation, container logistics, shipping agency services, cargo auctions, and import-export activities Alongside its traditional freight forwarding and warehousing services, these strategic initiatives have enabled the company to achieve notable success Through practical and effective measures, Maxpeed VN has realized significant accomplishments, demonstrating its resilience and adaptability in a challenging business environment.
Table 1.1: Revenue of Maxpeed DN Co., Ltd from 2020-2022
Revenue Proportion % Revenue Proportion % Revenue Proportion % Difference Rate % Difference Rate %
4.Services of import and export goods
Source: Accounting Department of Maxpeed VN Co., Ltd
Transport Forwarding agent Warehouse service Services of import and export goods
Figure 1.3: Revenue source of MaxpeedVN Co., Ltd from 2020-2022 Revenue from transportation activities
Interlogistics specializes in freight transportation by purchasing shipping services from shipping lines and reselling them to exporters The company’s transportation revenue has shown consistent growth over recent years, reaching 100.7 billion VND in 2020, which accounted for 28.8% of total revenue In 2021, transportation income increased to 143 billion VND, representing 29.2% of total revenue, while projections for 2022 estimate revenues at 162.4 billion VND, making up 29.3% of total revenue This steady increase indicates that Maxpeed Logistics’ transportation segment has expanded for three consecutive years, with its contribution to the overall revenue gradually rising from 28.8% in 2020 to 29.3% in 2022.
Transportation activities remain a crucial part of the company's strategic focus and continue to develop, though their proportion remains relatively stable To ensure long-term stability and sustainability, diversifying into other business areas is essential Maxpeed VN - Danang Branch has successfully increased revenue from transportation by adapting flexibly to market changes and securing long-term contracts with shipping lines, which lowered costs and attracted new customers Consistently delivering excellent service and earning customer trust have been key factors in the company's sustainable growth.
Freight forwarding is a comprehensive service that manages the multimodal transportation of full container loads from exporting to importing countries, ensuring smooth logistics across borders Revenue for freight forwarding companies includes charges for ocean freight as well as domestic transport costs Maxpeed Vietnam Co., Ltd - Danang Branch specializes in delivering goods according to foreign partners' instructions or handling the receipt and delivery of imported goods to customers, providing reliable and efficient logistics solutions.
Maxpeed Logistics' freight forwarding services consistently represent the largest share of the company's total revenue, accounting for 48.5% in 2020, 46.7% in 2021, and 46.3% in 2022 This reflects the critical role that freight forwarding plays in the company's overall business strategy and revenue stream.
Maxpeed Logistics should prioritize diversifying its business activities to reduce risks and strengthen long-term resilience Relying solely on freight forwarding can make the company vulnerable to market fluctuations and rising competition Expanding into new logistics services will help ensure sustained growth and stability in a competitive industry.
Despite a decrease in the proportion of revenue from freight forwarding compared to 2021, it remains the largest contributor to the company's total revenue, highlighting its critical role in driving profit To sustain growth and competitiveness in the transportation and logistics industry, the company should focus on enhancing the efficiency of its freight forwarding operations Improving operational efficiency can lead to increased profitability and help maintain or expand the company's market share in the logistics sector.
Revenue from import-export goods services
Import-export goods services, including customs brokerage, document certification, export-import consulting, and packaging, play a vital role in Maxpeed Vietnam - Da Nang Branch's revenue According to financial data, this sector consistently ranks third in the company's annual total revenue The steady growth in revenue over the years reflects the dedicated efforts of all employees and departments, as well as the strong reputation and trust that Maxpeed has established with its customers.
Maxpeed generates significant revenue from its extensive network of warehouses strategically located nationwide, enabling efficient storage and distribution The company has secured long-term contracts with customers requiring warehousing solutions, including space for goods awaiting customs clearance Additionally, Maxpeed earns income from CFS fees for LCL consignments waiting to consolidate goods from various locations into containers This robust warehousing infrastructure and contractual agreements position Maxpeed as a key player in logistics and freight services nationwide.
Based on the above data table, we can imagine the warehouse service activities of Maxpeed Da Nang Co., Ltd from 2020 to 2022 as follows:
The contribution of revenue from this activity to the total revenue of the enterprise has steadily increased each year, with proportions of 6.5% in 2020, 7% in
In 2020, the company's revenue from this activity was VND 22.5 billion, increasing to VND 34.3 billion in 2021, and reaching VND 40.2 billion in 2022, reflecting consistent growth over the years With growth rates of 7.5% in 2022, this activity continues to significantly contribute to the company's total revenue The steady rise highlights the importance of nurturing and expanding this segment for future business success.
Volume Thousand Tons 290 306,6 105,7 320 340.66 106,5 350 363,4 103,8 111 106,6 Container Thousand TEU 12 12,9 107,5 13.5 14.70 108,8 15.5 16,7 107,7 139,5 113,6 Service value Billion dong 9,1 9,3 102,7 10 11,02 110,2 12 13,15 115 117,9 119,3 Import
Volume Thousand Tons 850 834 98,1 840 765.74 91,15 780 746,3 95,67 91,7 97,45 Container Thousand TEU 41 39,9 97,3 40 36.46 91,1 38 34,94 91,94 91,4 95,83 Service value Billion dong 31 26,2 84,6 30 24,25 80,85 26 23,8 91,63 92,4 98,1
Result of international freight forwarding activities
Table 1.2: Result of import and export freight forwarding activities of the company.
Based on the data analysis table above, the situation of international freight forwarding activities has almost always exceeded the set plan.
In 2020, the volume of shipments exceeded by 5.7%, in 2021 it was 6.5%, and in 2022 the volume exceeded by 3.8%.
Regarding the number of containers mobilized for export shipping, in
2019 it exceeded by 7.5%, in 2021 the actual difference from the plan was 8.8%, and in 2022 it was 7.7%.
In 2020, the actual value of exported goods exceeded expectations with a deviation rate of 2.7%, while in 2021, the deviation increased to 10.2% Remarkably, in 2022, exports surpassed projections by 115%, showcasing significant growth Conversely, the actual import freight forwarding activity did not align with the initial plan, indicating a divergence between expected and real trade performance.
In 2020, the actual import volume fell short of the 1.9% target, with shipped containers decreasing by 2.7% compared to projections Additionally, the value of services experienced a decline of 5.4% from the planned figures, indicating a slowdown in trade and service sector performance.
In 2021 and 2022, the actual import volume decreased by 8.85% and 4.32% respectively compared to the plan.
In 2021 and 2022, the number of containers required decreased by 8.9% and 8.06% respectively, indicating a decline in freight activity The notable gap between the planned and actual container mobilization highlights discrepancies in import and export freight forwarding planning This misalignment suggests that current forecasting methods are ineffective, leading to fluctuations that impact logistical efficiency and supply chain stability Improving forecast accuracy and aligning planning with real-world trends are essential for optimizing container logistics and enhancing overall supply chain performance.
Analysis of customer outreach situation
The company expects new employees to acquire at least 4 new customers per month, requiring effort and sales skills to identify and approach potential clients Experienced salespeople are tasked with securing at least 1 major customer and 2 smaller clients monthly, emphasizing the importance of these targets for business success Sales managers are set to attract 5 new customers each month, a challenging goal that demands adequate company resources and support to help employees achieve these objectives.
Table 1.3: Business results of Maxpeed DN from 2020-2022
Based on the data in the table above, we can see the performance of Maxpeed company in the field of import and export cargo transportation as follows:
The transportation activities significantly increased in 2021 with a growth rate of revenue of only 40.1%, but the profit increased dramatically by 99.05% compared to 2020.
In 2022, the growth was only slightly higher than in 2021, with revenue increasing by 12.98% and profit increasing by 35.7%.
Table 1.4: Revenue from freight forwarding
Figure 1.4: Revenue from transportation activities
Within 3 years from 2020 to 2022, the company performs freight forwarding on average about 7000 shipments a year.
In 2020, the revenue from freight forwarding activities is 348.94 billion VND, but by 2020 and 2021, the revenue will increase by 547.49 billion VND and 673.88 billion VND, respectively.
The highest year is 2022, the company has delivered 12542 import and export shipments, revenue increased by 18.75% compared to 2021.
In which, the company's volume of goods transported by sea in 2015 is about
3000 lots, equivalent to 187.4 billion VND By 2017, the volume of goods delivered and transported by this road increased significantly by about 5000 lots, reaching a revenue of VND 386.54 billion.
Maxpeed primarily focuses on sea freight for import and export logistics, showcasing significant growth in this sector The company's success is driven by the dedicated efforts of its employees and departments, alongside strategic business advantages Despite these strengths, Maxpeed currently faces challenges in customer acquisition and market access, which impact its ability to maximize import-export productivity and expand its global shipping operations.
Analysis of the customer search and acquisition process:
Statement of the problem
Specifically, this research aims to seek answer to the following questions:
1 What are the methods used by Maxpeed Company in finding and reaching customers for the past 3 years?
2 What are the problems encountered by Maxpeed Company in finding and reaching customers?
3 What are the factors that enhance the ability of Maxpeed in finding and reaching customers?
Scope and Limitations
This study examines the methods employed by Maxpeed Company in Danang City to attract and engage customers, with a specific focus on the sales department responsible for reaching potential and existing clients It identifies the challenges faced by Maxpeed and explores factors that enhance their ability to find and retain customers The research aims to provide solutions for improving Maxpeed Co., Ltd.'s sales efficiency, covering the period from 2020 to February 2023 to offer comprehensive insights into their customer acquisition strategies.
REVIEW OF RELATED STUDIES AND LITERATURE
Introduction
By exploring different authors' concepts about customers, one can gain a general understanding of the importance of approaching them According to Peter Drucker
Customers are fundamental to business success, defined as individuals, businesses, or groups with needs that products or services can satisfy (1954) Nguyen Xuan Quang emphasizes that customers have existing and potential needs coupled with the ability to pay, highlighting their potential purchasing power (Marketing textbook, 2005) Theodore Levitt famously stated, "Customers don't buy products, they buy value," indicating that customer purchasing decisions are driven by the perceived value of offerings According to Kotler and Keller (2009), customers are "buyers of products or services," representing actual consumers engaged with a company's offerings Recognizing different customer types—such as loyal, potential, and new customers—helps businesses tailor strategies to build relationships and boost sales (Reichheld and Sasser, 1990) Customers are central to a salesperson's role, as they generate sales and income; understanding and satisfying customer needs is vital for business growth.
Customers can be classified in various ways depending on the purpose and context of each business
Loyal customers are essential for business success, as they consistently use products or services and are more likely to make repeat purchases According to Reichheld and Sasser (1990), "Loyal customers are the lifeblood of every business, and the key to unlocking the door to profits." Their loyalty not only drives revenue but also fosters enduring growth and stability for companies.
Customer loyalty refers to a customer's willingness to repeatedly choose a company for their needs, consistently purchase its products or services, and recommend it to friends and family Building strong customer loyalty is essential for businesses seeking长期增长 and competitive advantage Satisfied customers who remain loyal are more likely to make repeat purchases and promote the brand through positive word-of-mouth Developing customer loyalty requires delivering excellent experiences, quality offerings, and fostering trust between the company and its customers.
A potential customer is someone who has the ability and willingness to purchase a business’s product or service in the future, often identified through criteria such as age, gender, location, interests, and needs Seeking and engaging with potential customers is crucial for boosting sales and profits, as it helps build a brand and motivates others to participate Seth Godin describes potential customers as individuals capable of inspiring others about your offering and contributing to brand growth Neil Patel emphasizes that potential customers are those actively seeking your products or services but have not yet made a purchase, making their conversion a vital marketing goal According to Brian Tracy, potential customers are future revenue generators, whose interest and willingness to buy are key to business success.
New customers are individuals who have recently been exposed to a business’s products or services without any prior purchases, making them a vital segment in marketing strategies aimed at increasing sales and expanding market reach As Matt Ackerson of Petovera notes, these potential customers have the capacity to become loyal clients, highlighting their importance for business growth Kevin Johnston emphasizes that new customers are those who have never bought from a company before and represent future growth opportunities Industry expert Neil Patel adds that new customers require convincing of a product’s value since they are unfamiliar with the brand, underscoring the need for targeted marketing efforts to convert them into loyal buyers.
Intermittent customers are individuals who do not regularly use a business’s products or services, often engaging sporadically Price-sensitive customers prioritize cost over quality or brand reputation, making purchasing decisions primarily based on price Inspirational customers tend to make quick buying decisions without extensive deliberation, driven by impulse or inspiration Discount customers are motivated by promotional offers and discounts, actively seeking out deals to purchase products or services at reduced prices.
Methods Used in Finding and Reaching Customers
Several studies highlight effective customer outreach methods B Tuten and S Hennessey (2019) found that both direct mail and email marketing can be optimized to enhance customer engagement L.E Cope (2019) emphasizes that telephone marketing significantly increases sales for small and medium-sized businesses by enabling direct communication with target customers S.M.J Razavi and M Poursharifi (2018) demonstrate that telemarketing effectively boosts brand awareness and influences purchasing behavior Additionally, H Kim and H Park (2019) compare traditional marketing channels like newspapers and radio with online methods such as social media and email, revealing that while traditional methods remain viable, digital marketing is increasingly dominant due to technological advancements and changing consumer preferences Combining both traditional and online strategies is recommended for a comprehensive marketing approach.
Problems Encountered in Finding and Reaching Customers
Recent studies highlight key challenges businesses face in reaching customers According to A Smith and J Brown (2020), small and medium-sized enterprises (SMEs) can overcome outreach difficulties by enhancing customer relationships, conducting thorough market research, leveraging online marketing, and utilizing data analytics tools M Lee and K Lee (2018) emphasize that limited marketing budgets cause SMEs to rely on low-cost strategies like social media, email, and referrals, suggesting prioritizing marketing efforts based on target audiences and exploring partnerships to expand reach Meanwhile, N Gupta and P Jain (2017) identify fierce competition as a major hurdle, recommending that businesses develop unique competitive advantages, optimize customer experiences, and foster long-term customer relationships by monitoring market trends and competitors.
Factors Enhancing the Ability of Finding and Reaching Customers
In this section, we will review related studies and literature factors enhancing the ability of finding and reaching customers According to the research article by
V Kumar and W Reinartz (2016), the study examines the impact of product quality on customer acquisition, retention, and profitability The results show that high- quality products lead to higher customer acquisition and retention rates, and ultimately higher profitability Besides that, there is a research article by M Sigala et al (2019): This study investigates the use of social media for customer engagement and satisfaction in the hotel industry The authors find that social media can be an effective tool for businesses to approach and engage with customers, and improve their satisfaction levels The following is a study by A Avlonitis et al.(2017): This article compares the marketing budgets of B2B and B2C companies,and examines the impact of increasing marketing budgets on business performance.The results show that increasing marketing budgets can lead to higher customer acquisition and retention rates, and ultimately higher business performance TheRole of Marketing Methods in Enhancing Customer Acquisition and Retention: AnEmpirical Study" by H Xu and L Wu (2019) is a study that investigates how marketing methods can enhance customer acquisition and retention The study suggests that combining traditional and digital marketing methods can improve businesses' ability to find and approach customers Similarly, "Networking andBuilding Relationships: Key Factors in Enhancing the Ability to Find and ApproachCustomers" by J Jones and K Smith (2018) explores the importance of networking and building relationships in enhancing businesses' ability to find and approach customers The authors argue that businesses can benefit from building strong relationships with customers, suppliers, and other stakeholders, which can help them to access new opportunities and expand their customer base.
To attract new customers, consider asking for referrals and networking to expand your reach Offering exclusive discounts and incentives can motivate new clients to choose your business Re-engaging with past customers through targeted follow-ups can also generate fresh interest Improving your website enhances your online presence and provides a better user experience Partnering with complementary businesses helps tap into new audiences, while promoting your expertise establishes credibility Leveraging online reviews can boost your reputation and attract more customers Participating in community events increases local visibility, and encouraging existing customers to bring a friend can introduce your business to potential new clients.
Sugars (2011) highlights key factors in attracting customers, emphasizing that successful advertising should generate promising leads Additionally, leveraging referrals from networking, past business associations, and forming strategic alliances or teaming-up can create long-lasting customer relationships that endure for many years.
RESEARCH METHODOLOGY
Research Design
According to Shrutika Sirisilla (2023), descriptive research design is a powerful tool used by scientists and researchers to gather comprehensive information about a specific group or phenomenon This method offers a detailed and accurate depiction of the characteristics and behaviors of a particular population or subject By systematically observing and collecting data, descriptive research enables researchers to gain in-depth insights into specific issues These insights are valuable for informing future studies and making informed decisions in various fields.
This study employs a descriptive research design to effectively capture the current state of Maxpeed’s customer outreach efforts and the key factors influencing their success Data collection methods include surveys, interviews, and observations to analyze the strategies Maxpeed currently uses to reach customers and evaluate their effectiveness The findings will help identify areas for improvement and provide valuable insights to develop more targeted and efficient customer engagement strategies, ultimately enhancing Maxpeed's ability to connect with its audience.
Research Methodology
Quantitative research involves collecting and analyzing numerical data to identify patterns, make predictions, and generalize findings to larger populations It is widely used across natural and social sciences such as biology, chemistry, psychology, economics, sociology, and marketing This method is preferred for its ease of quantification, analysis, and interpretation, making it ideal for studies like assessing customer outreach at Maxpeed Company By measuring the degree of various factors, quantitative research helps establish clear relationships and connections between variables Additionally, statistical tools enhance the reliability and validity of the results, enabling accurate conclusions and effective strategies for improving Maxpeed's customer engagement.
Utilizing quantitative methods to enhance Maxpeed Company's customer access in Da Nang City increases research accuracy and scientific validity This approach enables data-driven insights that support smarter, more effective business decisions, ultimately improving customer engagement and market presence.
Data gathering tool
Data collection is a crucial process involving gathering, measuring, and analyzing accurate data from various relevant sources According to Simplilearn (2023), it helps in solving research problems, answering key questions, evaluating outcomes, and forecasting future trends and probabilities, making it an essential component of data-driven decision-making.
Using questionnaires as a data gathering tool is highly appropriate due to their reputation as one of the most reliable and common methods in scientific research They enable researchers to design targeted questions aligned with specific research objectives, facilitating the collection of both quantitative and qualitative data In this study, questionnaires effectively capture the insights of individuals with relevant experience and knowledge about customers and businesses, ensuring high reliability and accuracy Additionally, utilizing questionnaires saves time and reduces costs compared to methods like interviews or observations Participants, such as Maxpeed employees and customers, possess the necessary knowledge about the company's products and services, allowing for precise and valuable responses that reflect the current state of the organization and areas needing improvement Furthermore, engaging participants in questionnaires provides them with an opportunity to offer feedback, influence company decisions, and foster a sense of involvement, which can boost morale and promote consensus.
Data Gathering Procedure
Data gathering is the process of collecting, measuring, and analyzing accurate insights for research using validated techniques, as described by Adi Bhat This essential step varies depending on the research aims and the type of data being collected, ensuring the reliability and validity of the information gathered.
To effectively improve customer engagement at Maxpeed Company, research begins by identifying the relevant department manager Securing their approval for data collection is essential, which involves explaining the purpose and benefits of the research, obtaining permission to distribute questionnaires to employees, and ensuring data confidentiality Once the manager approves, conducting an interview to gather insights about the company’s goals, values, and operations provides valuable context, especially for journalists or researchers interested in the company's overall strategy and customer engagement initiatives.
Sampling
Sampling is a process in statistical analysis where researchers take a predetermined number of observations from a larger population (Alicia Tuovila,
Using the sampling method can effectively reduce data collection costs and time while enhancing the representativeness of the sample when implemented correctly However, it is important to recognize that sampling cannot eliminate sampling errors or biases introduced by the sampling technique Therefore, a careful and scientific approach to the sampling process is essential to ensure the accuracy and reliability of research outcomes.
Based on the multivariate regression analysis method outlined by Tabachnick and Fidell (1996), the minimum sample size is determined by the formula n ≥ P + 8m, where P represents the number of dependent variables and m the number of independent variables Applying this formula with three independent variables results in a minimum sample size of 74 participants (n = 74), ensuring sufficient statistical power for the analysis.
The sample size used in the study is based on the requirements of exploratory factor analysis (EFA) and multivariate regression analysis:
Sample size: For the question content and analysis needs, the minimum sample size is 75 To increase accuracy, the minimum sample size is increased to 100.
• m: the number of questions in the survey n= 5×15u
Statistical tool
In research, statistical tools are essential for collecting, analyzing, and interpreting data to uncover meaningful insights These tools help determine relationships between variables, assess data accuracy, and draw valid conclusions about research hypotheses Commonly used statistical methods include descriptive statistics, inferential techniques, modeling and prediction approaches, hypothesis testing, and data visualization tools, all of which enhance the clarity and reliability of research findings.
This study employs statistical tools like frequency and mean to analyze the data effectively Frequency counts how often specific values appear within the dataset, providing insight into data distribution, while the mean calculates the average value, offering a clear overview of the overall dataset These essential statistical methods enhance data interpretation, ensuring accurate and reliable results The formulas for calculating frequency and mean are integral to this analytical process.
The formula to calculate frequency is: f = n / N where: f = frequency of the value n = number of times the value appears in the data set
N = total number of values in the data set
The formula to calculate percentage is:
Percentage = (f / N) * 100 % Where: f = frequency of the value
N = total number of values in the data set
Questionnaire
Nguyen Hoang Long, a fourth-year student at Duytan University, is conducting a research study titled "A Systematic Investigation of Key Factors to Enhance Customer Reach at Maxpeed Company in Da Nang City" for his graduation thesis He kindly requests your participation in completing the questionnaire, assuring that all provided information will be kept confidential This study aims to identify effective strategies to improve customer outreach and engagement for Maxpeed Company, contributing valuable insights for business growth in Da Nang.
Part I The methods used by Maxpeed Company in finding and reaching customers
Direction: Please check the method you use to reach customers You can have multiple choices.
Part II Problem encountered by Maxpeed Company in finding and reaching customers?
Direction: Please check what are the main issues that Maxpeed Company encounters in finding and reaching customers? (Please select all that apply)
Insufficient information about products or services
Difficulty in reaching the target customer base
Insufficient budget to carry out marketing campaigns
Part III Factor to enhance the ability of Maxpeed in finding and reaching customers
Direction: Please check what aspects should Maxpeed Company improve to find and reach customers more effectively? (Please select all that apply)
Improve the quality of products or services
Enhance understanding of the target customers
Explore and utilize new marketing channels
PRESENTATION, ANALYSIS, AND
Methods Used in Finding and Reaching Customers
Table 4.5 - Methods Finding and Reaching Customers
Finding and approach customer method Frequency Percentage (%)
11 Other (Event sponsorship, Word-of-mouth marketing)
At Maxpeed Company, the most common method for acquiring and engaging customers is through phone calls, used by 100% of the company’s marketing efforts Email marketing is also highly prevalent, with 87% of strategies involving email communication Social media platforms like Facebook and SMS are utilized equally at 48%, while traditional advertising channels such as billboards account for 14% Newspaper and magazine advertisements are less common, comprising 5% and 2% respectively Notably, Maxpeed does not advertise via radio or leverage popular social media platforms like TikTok and YouTube, focusing instead on direct and targeted communication methods.
Maxpeed Company primarily reaches out to customers through phone calls and emails, reflecting their long-standing effectiveness in the transportation industry for domestic and international services This cost-effective and convenient method enables personalized service introductions to each customer Additionally, Maxpeed utilizes Facebook to leverage its large user base, advanced targeting tools, campaign tracking capabilities, low costs, and ability to interact directly with customers, building trust and engagement The company also employs SMS messages for local clients to deliver quick, direct updates such as delivery schedules or shipment reminders, which are cost-effective and suitable for customers preferring minimal phone contact Furthermore, Maxpeed enhances its industry presence through event sponsorships at cargo exhibitions, logistics conferences, and transportation competitions, fostering relationships with potential clients and strengthening its industry reputation Word-of-mouth marketing also plays a vital role, as satisfied customers share positive experiences, helping Maxpeed build credibility and trust Providing professional, high-quality services cultivates ongoing communication, loyalty, and reputation within the logistics sector.
Radio and social media platforms like TikTok and YouTube are rarely used or entirely unused by Maxpeed, with a usage frequency of zero This suggests that Maxpeed considers these channels ineffective or unsuitable for achieving their customer reach goals It is also possible that limited investment or strategic planning has been directed away from these platforms A careful evaluation of these methods is essential to determine their potential role in future customer outreach strategies.
Problem Encountered in Finding and Reaching Customers
Table 4.6 - Problem encountered in finding and approach customer
N = 100 Problem encountered in finding and approach customer
1 Insufficient information about products or services
2 Difficulty in reaching the target customer base
3 Insufficient budget to carry out marketing campaigns
According to Table 2, the most common challenge faced by businesses is insufficient budget for marketing campaigns, affecting 78% of respondents This is followed by ineffective marketing methods, cited by 74%, and intense competition from competitors, reported by 67% Other significant issues include additional unspecified problems at 54% and difficulty in reaching the target customer base, impacting 35% of businesses Addressing these key challenges is essential for improving marketing effectiveness and gaining a competitive edge.
“Insufficient information about products or services” is 5%
Maxpeed Logistics currently faces significant challenges due to limited budget allocations for marketing campaigns, making it difficult to implement effective promotional strategies The unique nature of the transportation industry, both domestically and internationally, means that traditional marketing methods used for regular products are not feasible, requiring specialized approaches While cost-effective phone calls remain a common method within the industry, the company has yet to invest in developing alternative customer access channels, and evaluating the effectiveness of marketing strategies remains complex given the industry’s specialized needs The logistics sector is increasingly vital to business operations and economic growth, driven by rising e-commerce and export activities, which have led to intensified competition among logistics providers To succeed, companies must not only focus on quality services and competitive pricing but also prioritize targeted marketing efforts to acquire new customers and foster loyalty in a rapidly evolving market.
Factor Enhancing the Ability of Finding and Reaching Customers 44
Table 4.7 - Factors Enhancing the Ability of Finding and Reaching Customers
N = 100 Factor enhancing the ability of finding and approach customer
1 Improve the quality of products or services 46 46
2 Enhance understanding of the target customers 73 73
3 Explore and utilize new marketing channels 48 48
6 Other (Networking and Building relationships) 1 1
Based on Table 3, it is evident that all factors are crucial in enhancing the ability to find and approach customers The factor with the highest frequency is
"Increase marketing budget" at 89% This is followed by "Enhance understanding of the target customers" at 73%, "Improve current marketing methods" at 67%,
"Explore and utilize new marketing channels" at 48%, "Improve the quality of products or services" at 46%, and the specific factor "Networking and Building relationships" accounting for 1%.
Maxpeed Company should prioritize increasing its marketing budget, as this factor has the highest frequency at 89%, highlighting the need to invest more in marketing activities to effectively reach customers Marketing plays a crucial role in building brand awareness and introducing services to the target audience Additionally, the company should focus on improving its understanding of target customers, which has a rate of 73%, to develop more targeted and effective marketing strategies Conducting research on customer needs enables the company to offer suitable products and services and to guide marketing efforts more accurately Enhancing current marketing methods is also essential for optimizing outreach and engagement.
Leveraging new marketing channels is essential, with 67% of companies recognizing its importance, alongside the need to update and research innovative marketing strategies to better meet customer needs Improving product or service quality remains a key focus, cited by 46%, as higher quality fosters customer loyalty and distinguishes the company from competitors Although networking and relationship-building account for only 1%, they play a crucial role in growing the customer base and enhancing the company's reputation through strong connections with current clients and industry partners.