developing a marketing plan for the keywordz service of gapit communication joint-stock company

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS TRAN THI THUY DEVELOPING A MARKETING PLAN FOR THE KEYWORDZ SERVICE OF GAPIT COMMUNICATION JOINT-STOCK COMPANY MASTER OF BUSINESS AD

VIETNAM NATIONAL UNIVERSITY, HANOI

SCHOOL OF BUSINESS

TRAN THI THUY

DEVELOPING A MARKETING PLAN FOR THE KEYWORDZ SERVICE OF GAPIT COMMUNICATION

JOINT-STOCK COMPANY

MASTER OF BUSINESS ADMINISTRATION THESIS

Hanoi - 2011

VIETNAM NATIONAL UNIVERSITY, HANOI

SCHOOL OF BUSINESS

TRAN THI THUY

DEVELOPING A MARKETING PLAN FOR THE

KEYWORDZ SERVICE OF GAPIT COMMUNICATION

JOINT-STOCK COMPANY

Major: Business Administration

Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: Ph.D: Tran Doan Kim

Hanoi-2011

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TABLE OF CONTENT

ACKNOWLEDGMENT i

ABSTRACT ii

TÓM TẮT iv

TABLE OF CONTENT vi

LISTS OF TABLES ix

LIST OF GRAPHS x

INTRODUCTION 1

1 Necessity of The Thesis 1

2 Research Aims and Purposes 2

3 Research Scope 2

4 Data sources and Processing 2

5 Methodology 3

6 Limitations of the Thesis 3

7 Expected finding 3

CHAPTER 1: LITERATURE REVIEW 4

1.1 Marketing plan 4

1.1.1 Marketing plan definition 4

1.1.2 Process to formulate Marketing plan 5

1.2 Mobile marketing 15

1.2.1 Mobile marketing definition 15

1.2.2 Mobile marketing solution 18

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1.3 Special considerations for a marketing plan of a Mobile marketing

service 23

CHAPTER 2: GAPIT COMMUNICATION AND KEYWORDZ SERVICE SITUATION ANALYSIS 26

2.1 Introduction Gapit JSC and Keywordz 26

2.1.1 Background of Gapit communication 26

2.1.2 Gapit keywordz 28

2.2 Marketing situation analysis 31

2.2.1 Keywordz market and customer analysis 31

2.2.2 Competitors analysis 35

2.2.3 Partners 40

2.2.4 Environment: PEST analysis 40

2.3 Opportunities and issues analysis 42

2.3.1 SWOT analysis 42

2.3.2 Analysis of marketing issues for the Keywordz services 47

CHAPTER 3: SET UP MARKETING PLAN TO GAPIT KEYWORDZ SERVICE 48

3.1 Marketing objective 48

3.2 Marketing strategies 48

3.2.1 Market segmentation and selecting target market 49

3.2.2 Product positioning 50

3.2.3 Recommending a marketing strategy for the Keywordz service 53

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3.2.4 Keywordz service 54

3.2.5 Price 55

3.2.6 Place 56

3.2.7 Promotion 57

3.2.8 People 61

3.2.9 Process 62

3.2.10 Physical evidence 64

3.3 Action plan 64

3.4 Expected turnover and loss 72

3.5 Control 74

CONCLUSION 75

REFERENCE 76

APPENDIX 77

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LISTS OF TABLES

Table 1.1 Bluetooth Content 19

Table 1.2 Type of Coupon 20

Table 2.1: Characteristics of SWOT of Gapit Keywordz service 42

Table 3.1: Description the action plan 66

Table 3.2: Estimated Cost 72

Table 3.3 Estimated Profit & Loss account 73

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LIST OF GRAPHS

Graph.2.1: The data on mobile subscribers in 2006, 2007, 2008, 2009

year……… ………….32

Graph 2.2: The turnover of digital mobile content service……… 33

Graph 2.3: The main download content in Mobile phone 45

Graph 2.4: The operating subscribers up to 6/2008 45

Grap 3.1: Positioning chart of Gapit keywordz and direct competitors 51

Graph 3.2: Process to supply Gapit keywordz service: 62

Graph 3.3: Process to implement Mobile maketing 63

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INTRODUCTION

1 Necessity of The Thesis

Founded at the first time in American in 2004, up to now, the definition of Mobile marketing has not been new thing in the world because a half of decade recently, Mobile marketing is effective real tool to many service, food product, fashion firms…to promote their products and brand name

According to statistic of Yakee, now there are more 2.5 billion people use mobile phone in the world, more 90% of them have send or receive message demand, not only call and answer Mobile phone is the nearest medium beside owner in 24 hours

in all days of week, more permanently than any means of transportation included Internet and Television Catch up this demand; companies exploit value added service on mobile phone launch new application is Mobile marketing This marketing channel is exploited successfully in Europeans countries, America, South of America, and many countries in Asia Immediately, Mobile marketing have attracted attentions

of many advertisers and prestigious corporations as Wheat Crunchies (Golden wonder) fast food, Dunkin Donuts café (Italy), or marketing campaign of Sony Ericson, Nokia, LG…

Mobile marketing is step-by-step gaining foothold in the advertising field Mobile marketing is a growing two-way marketing medium that is already today cost-effective and more importantly, interactive channel that can be utilized to drive the sales of myriad products and services

Now, advertisers, firms, can approach this online Mobile marketing solution, the first appear in Vietnam named Gapit Keywordz by Gapit Communication JSC developing This solution is combine between E-commerce and M-comerce, bring to useful of the most favorite commerce both forms

The different point in this solution is only through website www.keywordz.vn, individuals, enterprises can implement buy code process fast, create online

From the meaning of application Mobile marketing in companies’ marketing campaign, author decides study Mobile marketing and choice topic “Developing a Marketing plan for the Keywordz service of Gapit Communication Joint Stock Company” to study and write my MBA thesis

2 Research Aims and Purposes

Based on reasons above, the purpose of this study is to gain a better understanding

of Mobile marketing, how organization do plan Mobile marketing and epecially writing

a Mobile marketing plan for Gapit Keywordz in next year 2012

In order to reach the research purpose for this study the following research questions are stated:

1 What is Mobile marketing and other related definitions to Mobile marketing?

2 How is application of Mobile marketing in Vietnam?

3 What are steps in building marketing plan for Mobile marketing service for Gapit JSC?

3 Research Scope

The scope of study is Mobile marketing and how to plan Mobile marketing campaign The research scope is also in Gapit Communication Technology JSC

4 Data sources and Processing

The data sources is used in the Thesis is colected by many sources, from Internet; newspapers; VMA and MMA Mobile marketing documents; Gapit’s financial report

2006, 2007; International Conferrence on Digital Marketing documents They are colected and analyzed, used as secondary data In addition, informations about Gapit

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in my thesis is experienced after I worked for Keywordz department as Asistant, product and contract management

5 Methodology

Analysis and Generalization : The information in the thesis was analyed and created

by a number of documents and records of electronic marketing, digital marketing, concepts and ideas of planned digital marketing, mobile marketing In addition, the research conducted with data from company, digital conferences, and consulting experts in the implementation of campaign planned for mobile marketing These sources are not only theoretical but also practical

Survey: In the process, the author has surveyed a number of key customers and partners of GAPIT Keywordz to find out GAPIT Keywordz’s weaknesses, opportunities and threats as well as the reasons they use Keywordz of GAPIT Communication JSC but services of other companies

Case Studies: the thesis concentrate analysis the case of Gapit Communication JSC, the mobile marketing service named Keywordz of that company

6 Limitations of the Thesis

Because E-marketing is very broad and extensive, and due to limited time allocated for undertaking this research This thesis will only focus on examining the use of Mobile marketing and how can develop a mobile marketing plan, to further limit the research only Gapit Communication JSC and companies implement sucessfully Mobile marketing of Gapit

7 Expected finding

The expected findings in study is have an overview of Mobile marketing and Mobile marketing plan; how companies see the benefit of applying Mobile marketing in Marketing campaign And more important thing is complete writing Mobile marketing plan for Keywordz service of Gapit Communication JSC in 2012

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CHAPTER 1: LITERATURE REVIEW 1.1 Marketing plan

1.1.1 Marketing plan definition

Form the Marketing text book, the nature and contents of a marketing plan can be

understand that marketing plan is one of the most important outputs of the marketing process It relies very heavily on an analysis of the industry, the business and the product situation.1

It is also the instrument for planning and organising the company’s resources and capacities for achieving marketing objectives for the new firm It has to identify the most promising business opportunities for the company and details how to enter, capture and retain positions in identified markets

The marketing plan can and should be an essential document for organizational success The marketing plan is also an operational document that is created at the business level of the organization The plan may address a multiple year time horizon but it should be reviewed and updated on an annual basis Plans tend into one of two categories: a new products/services introduction plan or an annual marketing plan that addresses products and/or services that already in your company profile

1 KoTler, Armstrong, Brown, Adam and Chandler, “ Marketing” ( Fourth edition) ( Page 72)

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1.1.2 Process to formulate Marketing plan

Base on William Sahlman of Harvard University in E-marketing book, he identifies nice questions that every business plan should answer:2

1 Who is the new venture’s customer?

2 How does the customer make decisions about buying this product or service?

3 To what degree is the product or service a compelling purchase for the

customer?

4 How will the product and service be priced?

5 How will the venture reach all the identified customer segments?

6 How much does it cost (in time and resources) to acquire a customer?

7 How much does it cost to produce and deliver the product and service?

8 How much does it cost to support a customer?

9 How easy is it to retain a customer?

The above questions are also problems that companies should consider when they

decide to formulate any marketing plan

Based on “Destination Marketing” by Richard B Gartrell (by Publisher:

Kendall/Hunt Publishing Company in January 1994) Marketing plans may be long or

short, and they will vary among organisations/regions Whatever their length of character, marketing plan are valued as a tool for effective planning and assessment

of productivity

To have a successful marketing plan, companies should do enough nine steps The following steps are some general guidelines for developing a marketing plan The marketing plan details who will do what, when, where and how, in order to achieve the firm market objectives

2Judy Strauss, Adel El- Ansary, Raymond Frost; “E-Marketing book” (Fourth Edition) (page 48)

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Product specific, market specific or company-wide plan that describes activities involved in achieving specific marketing objectives within a set timeframe A market plan begins with the identification (through market research) of specific customer needs and how the firm intends to fulfil them while generating an acceptable level of return It generally includes analysis of the current market situation (opportunities and trends) and detailed action programs, budgets, sales forecasts, strategies, and projected (pro forma) financial statements

a) Executive Summary

Executive Summary is brief explanation of what the organization does its mission statement, the management’s infrastructure, and a short summary about the marketing objectives and the proposed plan

Summary is one of the most important parts of the marketing plan The objective is to give clear understanding what this marketing plan is about without getting into details Although the summary is located under the first chapter, it is usually completed last after the whole plan is complete.3

It is typically one to three pages but shorter is better and it is usually written last

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Richard B Gartrell, “Destination Marketing”, Developing a Marketing plan

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a platform to support the choice of objectives and strategies.4

 Market Attractiveness analysis: this section should include an analysis of how big the market is, what competitive forces put pressures on performance levels

in the market and what the future is of relevent trends in the environment

 Customer analysis: this section should present an analysis of the factors that attract and retain cuctomer, to provide the support for customer-oriented actions It should include a clear description of the major segments in to which the organization separates its customers, and an analysis of the effect of marketing on each segment The customer segment analysis should include who they are, what motivate them to buy, what their buying process is, who they depend on for advice, how often they buy, and how they use the products/services, etc

 Competitor analysis: this section should present an analysis of key competitors, defined as any initiative posting a barrier to adoption of your program It should summarize their objectives and current strategies, their strengths and weaknesses on the dimensions that will affect their ability to compete effectively, and their likely future actions

c) Objectives and Goals

Marketing Objectives is where the marketing goals and financial objectives are set Objectives should be challenging, yet attainable for the organization

The second element in developing a marketing plan is the establishment of measurable goals This can be accomplished only after carefully considering the demand and supply potential of the customers Questions that address this issue are

4Richard B Gartrell, “Destination Marketing”, Developing a Marketing plan

 How will the organisation assess the attainment of these goals?

 Are the goals realistic in terms of the organisation’s resources, timelines and products?

Not every market opportunity is a business opportunity Only those market opportunities that are consistent with the firm’s mission, vision, objectives and current

or potential organization strengths are business opportunities Therefore, the marketing plan should present the entire objectives, from those at the corporate strategic level to those of non-marketing functional areas, as well as for the marketing area itself 6

d) Market Segments

The third essential element in a marketing plan is that of identifying and selecting the target markets This is usually called market segmentation Market segmentation is identifying different groups (segments) in a population It is more beneficial for an organization to focus its marketing efforts on a group who have similar characteristics, needs, and wants, than it is to a group of undifferentiated people There are many different ways a group can be segmented The most common characteristics included: demographic (age, income), psychographic (social class, lifestyle), and geography An organization can increase their revenues and decrease their expenses by focusing their efforts on a market segment

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Demographic variables most commonly used to identify groups include age, sex,

income, expenditure patterns, occupation, education, household size, marital status and ethnic background

Psychographic research (or personality research) goes beyond demographics and

asks why people behave or select products in a certain way It wants to get at the root

of their decision making process, it wants to find out why some select one product not another product Psychographic research can measure which population segments use this product or service, what motives can be identified to increase their potential to use

Geography is another means of defining a market segment; for example, an

organisation may find that it has a potential market for daytime or overnight tours from group operators within a five-hour drive of that destination Specific events or activities, such as antique fairs, cultural events or special pageants may be interest to those tour operators who have groups that wish to spend only a day away from their homes Geographically, this opens a new market segment for an organisation

To evaluate each market segment and selecting the appropriate segment that will be profitable When analyzing a segment there are many factors to consider The segment needs to be the right size A common mistake is large companies marketing

to a small segment This is probably an unprofitable situation for the company The opposite is true with small companies marketing to a segment that is too big They simply do not have enough resources to meet the demands of the large segment A sure miss when trying to target a market is when a segment is in an environment where a number of competitors already exist When selecting a target market an organization has to consider the different patterns to chose

e) Marketing Strategies

Marketing Strategy is plan for meeting the marketing objectives

The fourth element in a marketing plan is that of identifying and selecting the appropriate and most productive marketing strategies for the targeted market Based

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on understanding of both competition and the target, marketers must decide how to differentiate their products from competitors’ products in a way that provides benefits perceived as important by the target

Marketing strategies should be formulated by market segment if possible, to keep customers foremost However, concern for production and marketing effiency may also require that services delivery is coordinated across segment

According to Philip koler in Marketing management book, a marketing plan strategy including:

Selecting target market:

Mobile marketing with personal customers is potential rich soil If do positioning and make an order well, good idea campaign, company will attract more number of that loyal customers For intance, well-khown people as singers, composers, actor or actress, they can use Mobile marketing application as promotion method when

introduce new album, live show, their music project

Product positioning: “Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind”7

This is one of four positioning strategies are promoted largely by advertisers Al Ries and Jack Trout, including: positioning to solid the current position in customer’s mind, positioning to vacant market, positioning to reconfirm competitive position or postioning as different club strategy

7 Philip Koler – Marketing management, the second edit, page 202, “Positioning and differentation strategy”

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According to them, general well-known products have one position in customer’s mind For instance, Coca-cola is number one soft drink in the world Hennessy is high-grade wine for high-society Chanel No 5 is high-class perfume symbol for ladies Basicly, Ries and Trout sketched out the same methods with brand name to capable of gaining differentiation in flooding society informations, there are two much advertising so consumers ignore almost message advertisng It has trend to remember number one So, the second company usually have a half turnover of the first company and the third is a half turnover of the second More over, the first company is the most remembered

Marketing mix: Simplifying somewhat, marketing strategies can be seen as the

means, or `game plan', by which marketing objectives will be achieved and, in the framework that we have chosen to use, are generally concerned with the 7 Ps, such as:

Product- The actual product

Price- The amount of money needed to buy products

Place- Where the product is located

Promotion (advertising) - Getting the product known

People- Represent the business

Physical environment- The ambience, mood, or tone of the environment

Process- How do people obtain your product?

In principle, these strategies describe how the objectives will be achieved The 7 Ps are an useful framework for deciding how the company's resources will be manipulated (strategically) to achieve the objectives It should be noted, however, that they are not the only framework, and may divert attention from the real issues The focus of the strategies must be the objectives to be achieved - not the process of

f) Resources8

Fifth, an organisation needs to allocate its resources adequately to support the programs outlined for attaining the desired goals Without funding and personnel, programs will simply not be productive

 To what extent will personnel and money be dedicated for a specific program?

 Will the allocation be sufficient to reach the desired program goal?

 Does the organisation have other community resources that might be employed towards a specific program to ensure its success?

The issue of funds and staff time becomes a critical element in planning, particularly for smaller organisations But with planning and some creativity, programs can be implemented and a level of success attained

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have outlined in a plan? Timing has a lot to do with how successful a marketing plan will be It affects the placement of advertising and its impact on the targeted market segment; it also will affect how successful one might be in reaching planners during or prior to their planning time Questions that might direct the implementation of a plan include:

 When is the best time to launch a specific marketing strategy for a specific market segment?

 What kinds of lead times applicable to various market segments would impact goal attainment?

 In what sequence should various marketing elements be implemented? Does one strategy need to follow another to maximize impact?

 And far from least, who is doing what, when, how and with whom? In implementing a program, is it coordinated for maximum bureau efficiency?

Organisations always face pressures to implement programs that will provide immediate return on investment This may not always be the case, especially in the travel trade

This is the part everyone enjoys deciding how to accomplish the objectives through creative and effective tactics Marketers select the marketing mix (4 Ps), relationship management tactics, and other tactics to achieve the plan objectives and then devise detailed plans for implementation (the action plans) They also check to be sure the right marketing organization is in place for implementation (i.e., staff, department structure, application service provides, and other outside firms) the right communication of tactics will help the firm meet its objectives effectively and efficiently

9Richard B Gartrell, “Destination Marketing”, Developing a Marketing plan

The final stage of any marketing planning process is to establish targets (or standards) so that progress can be monitored Accordingly, it is important to put both quantities and timecales into the marketing objective (for example, to capture 20 per cent by value of the market within two years) and into the corresponding strategies

Plans only have validity if they are actually used to control the progress of a company: their success lies in their implementation, not in the writing

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Richard B Gartrell, “Destination Marketing”, Developing a Marketing plan

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1.2 Mobile marketing

1.2.1 Mobile marketing definition

The mobile phone is an ideal marketing channel because it is personal, interactive, and relevant While mobile users do not want to be bombarded with traditional advertisements on small screens, merchants can leverage mobile phones to create deeper and longer lasting customer relationships

Mobile marketing: The systematic planning, implementing, and control of a mix of

business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products where the primary point of contact with the consumer is via their mobile device

“Mobile marketing” also can be defined as any use of the mobile channel for delivery

of marketing communications Mobile marketing is often used to broadly encompass everything from wireless advertising (as defined above) as well as promotion of mobile phone related content such as mobile personalization and entertainment items such as ringtones, graphics, and games Broadly, defined, Mobile marketing also encompasses various applications such as localized search and voting/polling such as use of mobile phones to interact with reality TV and various shows like American Idol

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Mobile marketing should be considered within the context of mobile commerce and

is therefore a subset of that For the purpose of this paper, we define mobile

11 G.S Mort and J Drennan, “Mobile Digital Technology: Emerging Issues for Marketing, Journal of Database Management”

Since consumers first started to use SMS marketers, have had the idea of text message marketing or marketing SMS - also known as Mobile marketing In addition, since that time, marketing SMS messages have grown and changed and new

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Turowski, K and K Pousttchi, Mobile Commerce – Grundlagen und Techniken, Springer, Heidelberg, 2003

Consumer Preference is about permission based marketing, permission marketing solution If, as an advertiser you can execute permission based marketing campaigns then you can certainly find ways to benefit from Mobile marketing In addition, permission starts with understanding the consumer marketing preference If you can understand consumer-marketing preference, then you can execute permission-based marketing Moreover, permission marketing is not mobile phone spam

Mobile marketing starts with traditional marketing - print, web, radio, and television - all of the old standards Because before you can send the first message to a consumer, you must obtain their permission and that means that you understand consumer-marketing preferences

According to ADMA( Asia digital marketing association) 87% indicated that digital marketing is part of their marketing strategy ( 87% in 2006, 82% in 2005, 77% in 2004) 39% will be spending more than 15% of the advertising buget on digital marketing (16% increase over 2006) 70% marketers continue to increase their digital marketing budget allocation (More than in previous years 43% in 2004, 50% in 2005, 62% in 2006)

And about Mobile marketing, text alerts still predominant with 83%, Mobile in-game advertising 28%, 3G services 33%, Bar code scanning 33%, request information via SMS 39%

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1.2.2 Mobile marketing solution a) SMS Marketing

SMS: short message service, also known as text messaging, is one of the oldest and

most functions of mobiles Almost all mobile are now capable of receiving and sending SMS (short text message) Two third of mobile subscribers - that 1.8 billion people- are active text messaging users SMS is not just for young any more Usage

is mushroom around the world, with over 350 billion SMS exchanged every month, about 15% of which commercial-or marketing- messages, the so-called thumb economy (Digi Marketing book)

Multimedia messaging service (MMS) expands SMS to include non-text items, including images, audio, and video Although now almost universally available, MMS has extremely low adoption rates, having suffered from problems of interoperability across different brands of handsets and difficulties in handset configuration

Benefits of SMS Marketing

 High penetration of mobile ownership

 Reach consumers anytime, anywhere (brand in hand)

 Send personalized, immediate message to your target database (segment

messages based on audience)

 High Open Rate for SMS Marketing, no spam filter

 Detailed Real-time Reporting (Success sent rates of campaign along with consumer responses)

b) Bluetooth marketing

Bluetooth is almost universal on mobiles today, although not every mobile owner actually knows how to active it Bluetooth is a low power, short-range communications standard that can create wireless personal area networks (PANs) This allows digital devices to connect and exchange information Today’s mobiles can connect wirelessly to headsets, stereo speakers, computers, printers and so on

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Location based marketing tool that allows you to connect with consumers at the time when they are more likely to interact with your Brand

Benefits of Bluetooth Marketing

 Bluetooth Technology = Local Wireless Distribution

 Absolutely FREE mobile content delivery

 No SPAM, Bluetooth is all user-initiated

 BMS (Bluetooth Messaging System) advantages over SMS and MMS are that

it is a Permission Based Service

 BMS messages, the chances of being read are 99.9%

 Does not require GPRS

Table 1.1 Bluetooth Content

Text, Images Java Games  At event

Shop Locator Tool

Example: Many global corporations, including Burger King, MTV, Procter & Gamble

and Ford, have initiated programs that enable consumers to search for the nearest restaurant location using their cell phones, receive electronic coupons or participate

in other Mobile marketing activities Such campaigns have generated click-through rates up to 10 times those of traditional Internet banner ads, and recent forecasts for global Mobile marketing spending range from $9 billion to $19 billion by 2011 That said, several brands, including Sprite and Adidas, have launched Mobile marketing efforts only to see some successes amidst an equal number of disappointments

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c) Digital Redemption System (Mobile Coupons)

The Digital Coupon is broadcast to the member base or SMS to target Recipients A message is received that includes a unique code, which can be redeemed by the user The code is then submitted to the Digital Redemption System for authentication

A Mobile Coupon is an electronic ticket solicited and/or delivered by mobile phone that can be changed for a financial discount or rebate when purchasing a product or service

Customarily, coupons are issued by manufacturers of consumer-pack-aged goods or

by retailers, to be used to attract customers to entertainment attractions (amusement parks, zoos, museums, etc) and services (beauty shops, spas, etc) They are often distributed through SMS, MMS, Bluetooth, and other mobile means The customer redeems the coupon at store or online In some case, the retailer could forward it to a clearinghouse, or directly to the issuer, for reimbursement

Table 1.2 Type of Coupon Type of coupon

Cents-off or dollars-off Self-destruct Coupons are printed to

overlap and consumers choose one deal

or another

required to buy more than one of a given product

Buy-one-get-one-free Time-release Coupons with different

expiration dates are distributed together

to encourage repeat purchase Crossruff The consumer gets a coupon

for one product, often related, when

purchasing another

Sweepstakes-entry or personalized The coupon can be redeemed only at specific locations, such as a chain of stores Universal coupon Manufacturer

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distributes a high value coupon good on

multiple products within the

manufacturer’s product lines

Coupon advantages

 Drive traffic to stores/events/entertainment attraction/services

 Add value to purchase

 Direct discount to the consumer

 Targeting possibilities

 Leverage the distribution

d) Mobile Tagging

Mobile tagging is based on tags (or labels) which can be read by your mobile’s built

in camera This allows users to access any type of information, anywhere, anytime

Benefits of Mobile Tagging:

 Create flexible and easy way to deliver information to consumers

 Linkable to Mobilizes/WAP sites

 Can be used for registration, ticketing, and interactivity of consumers at events

 Place on products to get product information or at ATM locations to alway have ALL ATM locations at the tip of your fingers, all with just a snap of your mobile camera

e) Mobile Web Advertising

WAP Banner Advertising extremely effective way to drive Interaction and Registration

 Advertising Overview

The Mobile Web is fast emerging as a mainstream information, entertainment, and transaction source for people on the move and away from a PC Browsing the Mobile

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Web is similar to traditional PC-based Web browsing and provides users with access

to news, sports, weather, entertainment and shopping sites

However, there are some significant differences between PC based access and phone-based access:

 The mobile phone is a highly, targeted device with typically one user As such, powerfully accurate and relevant communication messages can be delivered where users become instantly engaged with campaigns and content resulting

in increased campaign effectiveness

 The environment in which people interact with their mobile phone does not lend itself to detailed information search and delivery Instead, mobile users seek quick and convenient access to information and services when they are out and about Space on the mobile phone screen is at a premium, and users have limited input mechanisms, so Mobile Web sites need to be easy to navigate using just the mobile phone keypad

 Today’s mobile phones have a broad range of different form factors, screen sizes and resolutions, all of which presents challenge for the display and optimal viewing of content and advertising This document’s recommendations directly address this challenge

Many operators provide a “home page” that is configured to work well with their subscribers’ browsers The operator portal (also known as the carrier’s “deck” or on-deck) provides a variety of links to branded, mobile-specific external sites to make it easier for subscribers to navigate Increasingly, mobile users browse outside their operator portal These “off portal” or off-deck sites are becoming important destinations for Mobile Web browsing, with sites such as Yahoo!, Face book, BBC and Sky offering tailored mobile experiences

f) Mobile search

Mobile search is potentially the killer app for the mobile device To date, Digimarketers are a long way behind in the curve A recent study in the UK found for searches using the company’ name, 93% of FTSE 100 companies fail to get their

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homepages on the first page of mobile search result, and only 5% get their pages as the first listed result on mobile, versus 90% for online searches Clearly, DigiMarketers are neglecting mobile search optimization

Mobile search provides consumers anytime, anywhere access to information via the mobile Web Mobile search applications need to have speed and ease-of-use, feature simple query entry, quick interface navigation and precise use of limited mobile device screen space Awareness of mobile local search continues to grow with consumers, creating new opportunities for brands and vendors to exploit the power of the mobile channel Written by Kris Kolodziej an industry veteran in the location technology field for almost a decade, this report evaluates location-based search business opportunities and vendors that exploit them, and provides an

analysis of the current market and technology landscape

 Mobile Local Research

Location-based or proximity-based search is a very important factor in presenting local search results Local search engines use a different algorithm than the main search engines – a location-based algorithm If a user self-provisions his location (by including a city name, zip code, area code, or address in his query), or if the location information is provided automatically via a GPS or similar, listings can be filtered according to proximity to that particular location (in addition to other metrics/filters) to

make them more relevant

1.3 Special considerations for a marketing plan of a Mobile marketing service

Mobile marketing is special service, which provides many digital solutions for enterprises To convince customers buy that invisible product, marketers should have clear and expert marketing plan, should research target customer carefully, should have specific strategy to build image of service in customer’s mind is prominent quality of service or is the leading service of Mobile marketing industry in Vietnam market

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The particular points of Mobile marketing with marketing plan could say that it is illustated in new technology service, the objective of customer and the distribution channel

First of all, it is new technology service so marketing to service industry need to

concentrate more 3P’s in marketing mix: people, process and physical envidence

People factor occupy an important position in marketing service, especially in Mobile

marketing service Who is responsible for each factors in Business service department? It is special product so “Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organisation wants to obtain a form of competitive advantage Consumers make judgments and deliver perceptions of the service based on the employees they interact with Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for.”13

So the ability to selecting, recruitment and retaining the suitable persons to capacities and skilles to implement their task well, those are very important

Process, this factor refers to the systems used to assist the organisation in delivering

the service If company have good process, it means that its service will be delivered

to customer fast With Mobile marketing service, the process depend on its technology system and admin of service When customer have marketing campaign, the technology system deliver it to admin and they have responsibility to check the content of that marketing campaign before end-user can receive it

Physical Evidence factor illustrate that where is the service being delivered? It

allows the consumer again to make judgments on the organisation And it is also an essential ingredient of the service mix, consumers will make perceptions based on

13 http://www.learnmarketing.net/servicemarketingmix.htm

Table 1.3: Service marketing mix _ Extened marketing mix

The second thing is the objective of customer, the characteristic of that technology

service need customer also to be high-tech, high education, high knowledge of information technology and have farvorite of new application on Mobile marketing

The last thing is the distribution channel, it is invisible so customer can know that

service via effective of its To have good distribultion channel for this service, need to have distributors who understand and have knowledge of information technology, Internet, mobile content The main ditribution channel for this kind of service concentrate on online system

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CHAPTER 2: GAPIT COMMUNICATION AND KEYWORDZ

SERVICE SITUATION ANALYSIS 2.1 Introduction Gapit JSC and Keywordz

2.1.1 Background of Gapit communication

Gapit Communication is Joint Stock Company

Founded in 2005, Gapit has become a leading specialist in IT and telecommunication In recent years, Vietnam has experienced huge growth in e-commerce, m-commerce, and the development of digital content Gapit has responded to the new market demands of offering their customers and partners interactive solutions via wireless technology, the internet, mobile entertainment and broadcasting software applications Gapit with DFJ Vinacapital LP funding are providing to be market leaders in the development and delivery of digital content technology

Gapit Communication partner with brand-owners, mobile operators, internet service providers, broadcasters, production companies, TV networks, advertisers and service providers to enable revenue generation from interactive entertainment, interactive TV program formats and mobile content services to end-users

a) Vision and mission

“ GAPIT provides you with high capacity connections, billing, localization support, and marketing solutions to help you access the Vietnamese mobile consumers We believe that in the near future, GAPIT will become a leading value added services provider with fully leading International standard in Vietnam, by maintenance of optimal quality policies and guarantee on providing good and save-cost content services.”

GAPIT's mission is to make mobile & IP services useful, affordable, and fun for all customers in every community

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b) Business activities

Vietnam is experiencing explosive growth and the mobile consumer market is recognized as the best new opportunity in the world today! Gapit provides applications with high capacity connections, billing, localization support, and marketing solutions to help customers access the Vietnamese mobile consumers

Gapit Communication’s services:

 Gapit Mobile marketing:

- Gapit 2-Way Mobile Gateway: 8x69, 6x58, 8x08

- Gapit Keywordz: www.keywordz.vn

 Gapit Mobile Entertainment:

www.miu.vn: Miublack

www.shazam.com.vn: Shazam Music Recognition

 Gapit ASP Operator Services

c) Analyze financial reports 2006, 2007

Characteristic of business activities in financial year that effect Income statement:

2006 was the first year that company operated, not having many customers and administration costs, office equipment and infranstructure machinery costs are high Those are affect on Company’s turnover that not compensated for cost yet, so company was loss

The Company’s income in 2007 was growing well and company signed to large contracts, relative stably customers and infranstructures are more better, resources is also stability However, that was second year operated, cost of goods sold, administrations cost and purchasing equipments costs, infranstructure marchinery costs are high at once, so those was effect on company’s turnover The Gapit’s income was continuously lossing in 2007

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Seeing the table Income statement (in appendix) there are different among indicators when compare the numbers between this period and the previous period The indicator sale and revenue have increased dramatically by more 511.7% The Net profit indicator increase 311.1%, revenue from business activities increase 2277.4%, other revenue increased 244.4%, other profit increased 1036.3% And other expense indicators, For intance, finacial expense indicator decreased 92.1%, it was a good sign, it was made profit from ordinary indicator cut down lossing in 2007 (14.4%), and total revenue before tax also increased 25.4% but selling costs and administration costs continued increasing Selling cost increased reglect that company had more customers, business activities was potential developing

2.1.2 Gapit keywordz

In order to meet the demands of the communication sector, Gapit has developed Keywordz, a complete internet based marketing solution Gapit keywordz is a complete online service Moreover, Gapit Keywordz’s shortcodes is also rent by CPs

on purposing doing mobile content business

Gapit Keywordz is special product, to understand the characteristic about it, in researching progress, the author had collected primary data by set up a list of questions and interviewed main Gapit keywordz’s partners to find more informations

of Gapit keywordz service

(The list of interviewers and questionaires can be found in the appendix)

Through the answer of some directors of Gapit keywordz’s partners, it could be said that Gapit keywordz is the number one to choice in Mobile marketing industry in Vietnam (75% of interviewed customer) 50% of interviewed customers highly appreciate Gapit’s customer care and service

The above is symbol idea for characteristic of Gapit keywordz service Through interview, research and find out the application in the fact, the benefit and outstanding feature that sum up here:

 Promoting products and increasing brand awareness

 Executing market research and customer behavior research via SMS

 Generating and managing customer profile opt-in databases

 Improving customer loyalty and strengthening customer relationship

 Supporting management of employees, retail systems and customer loyalty

 Increasing revenue

 Keywordz - outstanding features:

 Online or offline payment options to purchase Keywordz and short-codes

 Easy to program online marketing campaigns

 Online managing and operating marketing campaigns

 The simple management and updating of customer profile databases

 Online reporting systems for optimal analysis

 Saves time and money to increase an organizations effectiveness

 24x7 customer care and service

 Product guide: online keywordz

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a) Basic campaigns

MO: "Mobile originated" is SMS sent by mobile user via a short-code

MO Content = Keyword + Sub-Keyword 1 + Sub-Keyword 2

The basic campaign enables mobile users to send an SMS short-code in order to receive information about a service or product Mobile users text a MO content (Keyword with/without sub-keyword) and send to the short-code to receive single informational response

With Gapit Keywordz, you can provide your customers with information on new services, promotions, vouchers, and discounts Your customers simply use SMS as the promotional short-code, in order to access the latest information

Through Gapit Keywordz, all individuals, businesses, or organizations can set up online interactive voting systems via SMS To access the service mobile users simply text the voting message and send using the specified short-code

To broadcast information, simply import your mobile number list, message and broadcast time to Gapit Keywordz The Keywordz system will then automatically send the message to your customers

2.2 Marketing situation analysis

2.2.1 Keywordz market and customer analysis

 Keywordz market: Mobile marketing is new marketing trend in Vietnam, its target

market is large opportunity to develop when Vietnamese enterprises attach special importance to more marketing tool and consider it as effecient promotion tool Combine to prominent characteristics as cheap cost, interactive to consumers, brandname awareness, so Mobile marketing can be the best choice at now

Base on research of eMarketer, the budget spent on Mobile marketing increase fast

in the world If 2006, it only have 410 million USD, in 2007 the number up to 878 million USD, in 2008 is about 1,54 billion USD, in 2009 is about 2,29 billion USD, in

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Graph 2.2: The turnover of digital mobile content service 16

In Vietnam, 65% in 88 million people is younger than 30 ages, 57% younger than 25 ages, those are ages that have trend like to use high technology product

According to Mr.John Shirley, the CEO of Gapit Communication JSC, the number of people acess Intetnet from mobile phone increase nearly vertically, because of developing 3G technology and more important thing that there are many smart phones allow end-user access Internet Among 82% use iPhone access Internet by their mobile phone

The turnover in 2008 of Mobile marketing industrial was 2500 billions VND In 2009 estimate about 3500 by increasing 40%, and expected turnover in 2010 will increase 50% because of developing 3G technology

Customer: The keywordz market concentrate on enterprises who have demand

marketing on SMS Gapit keywordz bring to customer two SMS marketing solutions

16 “White book”, Information and Comunications Pulishing House, Hanoi

2010