PROPOSED SOLUTIONS FOR IMPROVING CUSTOMER CARE QUALITY OF VIETNAM AIRLINES

Specific methods: Statistics and detailed analysis of existing solutions to improve quality of customer care of VNA, the thesis points out limitations and reasons so that it is to become basis for the proposed solutions to improve customer care policy for VNA up to 2020.

INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM

PROPOSED SOLUTIONS FOR

IMPROVING CUSTOMER CARE

QUALITY OF VIETNAM AIRLINES

VIETNAM AIRLINES

Despite conscientious efforts, but due to poor qualifications as well as practicalexperience so thesis is inevitable shortcomings certainly Therefore, I hope toreceive comments from teachers and classmates for my thesis is completed.

TABLE OF CONTENT

INTRODUCTION 1

1 Reasons for choosing the subject 1

2 Rationale and objectives of the subject 2

3 The object and scope of research topics .2

4 Research methodology 3

5 Structure of the thesis: 3

CHAPTER 1 4

SOME BASIC RATIONALE OF THE CUSTOMER CARE OF THE AIRLINES .4

1.1 Factors affecting the airline customer care .4

1.1.1 The concept and characteristics of air transport services .4

1.1.1.1.The concept of air transport services 4

1.1.1.2 Characteristics of air transport services 6

1.1.2 Concepts and characteristics of airline customers 8

1.1.3 Factors that affect customer care of the air transport enterprises .13

1.2 The basic content of the airline customer care 14

1.2.1 Customer Relationship Management (CRM) of the airline 15

1.2.2 Business development efforts of the airline customer oriented focus 19

1.2.2.1.Products and services 19

1.2.2.2.Service price 20

1.2.2.3.Distribution channels .25

1.2.2.4.Trade promotion 26

1.2.3 Development of human resources and corporate culture of the airline .29 1.2.3.1 Human resource development 29

1.2.3.2 Corporate culture 31

1.3 Lessons learned about the customer care of the international airlines .32

1.3.1 Some research experience in the customer care of a number of international airlines 32

1.3.1.1 Singapore Airlines 32

1.3.1.2 Thai Airways International 33

1.3.2 Some lessons for VNA 34

CHAPTER 2… 37

SITUATION OF CUSTOMER CARE OF VNA 37

2.1 Overview of the VNA 37

2.1.1 Process outline of formation and development of VNA 37

2.1.1.1 Foudation and development history 37

2.1.1.2 Functions and tasks .38

2.1.2 Overview of business results of VNA from 2005 to present 40

2.2 State of solution to customer care of the VNA 41

2.2.1 Reality of Customer Relationship Management at the VNA 41

2.2.2 The reality of the business effort development of focus customer-oriented of VNA 46

2.2.3 Reality of human resources development and corporate culture .66

2.3 Evaluation of customer satisfaction for business activities of VNA 68

2.3.1 Achievements 68

2.3.2 Shortcomings and limitations of the VNA 69

CHAPTER 3 71

PROPOSED SOLUTIONS FOR IMPROVING CUSTOMER CARE OFVNA TO 2020 71

3.1 Some overview forecasts of the business environment and air transport services-oriented development of VNA after Vietnam joined the WTO in the period to 2020 .71

3.2 Proposed solutions to customer care period 2012-2020 .78

3.3 Some macro petition 91

REFERENCE LIST

List of symbols and abbreviations

1 VNA: Vietnam Airlines

2 WTO: World Trade Organization

3.CRM: Customer Relationship Management

4 LCC: Low Cost Carrier

5.ISO: International Organization for Standardization

6.TCT: Corporation

7 Transit: Transit Passengers through Vietnam

8 IATA: International Aviation Association

9 SITA: Type of cable to transmit information in aviation

10 ATPCO: revenue management program in aviation

11 VPCN: Branch Office

12 Representative: Representative Office

13 VPKV: Regional Office

14 ASEAN: Association of Southeast Asian Nations

15 FDI: Foreign Direct Investment

16 ODA: official development assistance capital

17 APEC: Association of Petroleum Exporting

18 HKDD: Civil Aviation

19 PAX: Passenger

1 Reasons for choosing the subject

Vietnam is a country joined the WTO in 2007 and integration into the worldeconomy In addition to these opportunities, businesses in general and VietnamAirlines (hereinafter referred to as VNA) in particular face the challenges, risks andcompetition To survive and grow, Vietnamese enterprises have to constantlyimproving competitiveness

As an air transportation business enterprise, as well as other Vietnameseenterprises, VNA are faced with the situation of increasingly fierce competitionfrom domestic rivals, including: Jetstar Pacific, Vietjet Air, Air Mekong and foreignairlines flying the same routes Competition is not only with other airlines that VNAmust compete with other means of transportation such as rail transport, roadtransport, sea transport

To be able to propose solutions to improve customer care, VNA has to study, tounderstand the needs of customers by analyzing customer groups, determining yourtarget market, development Customer relationship management system (CRM) totake care of existing customers Besides, VNA also need to develop internalresources, efficient use of organizational resources, especially human resources todevelop its customers

VNA was founded in 1995 with amount of passengers were transportedincreased by an average of 15% / year Revenue increased by an average of 12% /year VNA has direct flights to 40 cities around the world in 18 countries and 20provinces and cities in Vietnam As national airline, besides political tasks, VNAhas been contributing to economic development, strengthen exchanges andintegration between Vietnam and the world

However, in the context of globalization world economy becomes inevitablecompetition between airlines increasingly fierce, competition with other forms of

transport equally harsh, beside opportunities, prospects, VNA is facing competition.

To achieve long-term development goal is to maintain existing customers andattract new customers, VNA to reinforce modern fleet, constantly improving thequality of services, and applied advanced sales technology, in line with marketcharacteristics as well as to satisfy the increasing demand of our customers

For customer care, VNA has to study, to understand needs of customers byanalyzing customer groups, determining the target market, developing customerrelationship management system (CRM) to maintain existing customers

Through the process of studying Master of business administration program, Ihave more knowledge of economic management, methodology as well as themethod of administration, I would like to use my knowledge to suggest solutions toimprove the quality of customer care for the company that I am working

Because of these reasons, I chose the subject "Proposed solutions for improving

customer care quality of VNA" as the subject for my thesis.

2 Rationale and objectives of the subject

- Systematized theoretical basis for solutions to improve quality of customer care inthe field of air transport operations;

Activities assessment to improve quality of customer care solutions for VNA;

 Propose measures to improve the quality of customer care for VNA, namelydevelopment Customer relationship management system to maintain existingcustomers and make efforts to obtain business solutions new customers for VNA inconditions Vietnam's integration into the world economy

3 The object and scope of research.

Research objects: Concept of customer in the thesis is understood that passengersuse transport services of VNA Thesis addresses elements affecting between VNAand customers, these solutions to improve the quality of customer care of VNA

 Scope of research:

+ Concept of customer in the thesis is understood that passengers use transportservices of VNA, including retail and group.

+ Limited: Customer purchasing passenger transport services on internationalroutes and domestic routes

+ Time and the number of actual survey: VNA policies from 2000 to presentbase on VNA survey data from 2000 to present

4 Research methodology.

- Methodology: The subject use dialectical materialism method

Specific methods: Statistics and detailed analysis of existing solutions to improvequality of customer care of VNA, the thesis points out limitations and reasons sothat it is to become basis for the proposed solutions to improve customer care policyfor VNA up to 2020

5. Structure of the thesis: In addition to the preface and table of contents, the thesis

is divided into three parts as follows:

Chapter 1: Some basic rationale of the customer care of the airlines.

Chapter 2: Current status of customer care activities of VNA over time.

Chapter 3: Proposed solutions to improve customer care quality for VNA period to 2020.

CHAPTER 1

SOME BASIC RATIONALE OF THE CUSTOMER CARE OF THE

AIRLINES.

1.1 Factors affecting the airline customer care.

1.1.1 The concept and characteristics of air transport services.

1.1.1.1 The concept of air transport services.

To give an idea of the service is difficult So far, the researchers, the known experts came up with a lot of concepts But there are still a lot of controversysurrounding the concept and also very limited The main problem is not capacityissues, research capabilities in the constantly changing variety of services But alsoneed to figure out the concept more acceptable Here are some concepts to meet it.Services by Philip Kotler were understood as follows: an activity or service tosupply benefits to swap, mainly intangible and do not result in the transfer ofownership The implementation of the service can be associated or not associatedwith the physical product So services are activities such as: rent a room at the hotel,travel by air, seek medical attention, sending auto to repair, watch movies, takeclothes to laundry

well-Another concept: a service is activity includes factors do not exist, addressingrelationship between client or customer owned assets to the supplier without thetransfer of ownership Products and services within or beyond the range of physicalproducts

Air freight service is any service that uses transport aircraft in service, on thebasis of regular or irregular, and is defined in the Chicago Convention of the United

Nations on civil aviation as follows : "Air Transport Service is any regular air

transport service that uses the aircraft for the purpose of public transport of passengers, cargo or mail, parcel".

Products of air cargo services business are load supply, or the amount ofgoods that can be transported in accordance with the predetermined time Air

transport product is composed of factors including: load supply, network routes,flight time, tranfer points, connection time and other complementary products.

General transport and air transport in particular has an important role andhas great effect on the national economy of each country as well as for the worldeconomy, a special catalyst push national economy and international economicrelations to be developed International Air Transport Association (IATA) evaluatedthe role of air transport industry in this era as follows: "Air transport is one of themost vital resources of the world Its development as an economic sector and thefield of air transport services have put in the place of one of the largest branchescontribute to the achievement of modern society Air transport is essential foreconomic development In a community and the global market is growing fast, airfreight transport to facilitate a quick millions and billions of dollars of goods tomarkets all over the world "[1]

Air transport industry has an important role in the integration process of acountry with the world that other vehicles can not match Air transportation network

is important arterial system of international economic activities, contributing to theeconomic concept of the border beyond the borders of individual countries Openair also means expanding economic cooperation, political and socio-culturalexchanges, strengthen economic linkages between regions, serving the needs of thegrowing movement of social , contributing to the overall development of the socio-economic and cultural between the regions in the country

Besides, aviation also promotes the development of international tourismand regional integration among countries and among regions of the world Airtransportation system serving all areas of social life such as production andcirculation, consumption, contribute to ensuring national security anddefense Therefore, we can say the development of air transport reflect the level ofeach country

In current trend of integration, air transport has advantages compared to

[1]: Website: www.iata.org

other means of transport in terms of speed Air transport is a modern type of trafficand safety; Air transport have the ability to connect many parts of the country andmany countries in the world where other vehicles can not do it; air transport takesplace regularly and rapid revolving funds.

In summary, the basic role of air transport: sector generated a significantportion of the total social product and national income; Meeting the needs of thegrowing movement of goods and passengers in the society ; contribute to overcomethe uneven development between regions; expand economic ties and culturalexchanges with foreign countries; enhance the defense capability of the country

1.1.1.2 Characteristics of air transport services.

Characteristics of air transport services, including "The Invisible", "can not

be separated from the source", "The unstable and difficult to standardize quality",

"not preserved"

The "invisible" is that it does not exist as an object This invisible for eachtype of service has different levels of expression In terms of types of air freightservices, intangible shown in that customers choose airlines to go from one point toanother point, that is, they buy the company's products and services But beforebuying the product, they can not measure the specific quality of products andservices They can only be expected through the previously sold product orinformation about the company, the customer can not see, can not stop touching theproduct This feature requires that managers need to pay attention to the materialgoods transport services so that customers feel and that he has served If so, theattempt to improve the quality of new services mean

"The inseparable from source" Service is not formed, the production andconsumption then that the production and consumption of services take place at thesame time If service can provide by human, the presence of the supplier isinevitable This characteristic leads to the main limitations to the effectiveness ofservice delivery channels Inseparable of products and services is also reflected in

the participation of clients in the aviation service In essence, consumers decide theproducer must produce goods to satisfy their needs Relevance of consumer in theproduction of services are often more pronounced than goods Services provided by

a air freight services company can be consumed by customer travel needs is in theshortest time

"The unstable and difficult to standardize quality."It is originalperformance of the products produced by an advanced industrialized society is thelevel of standardization of product quality Moreover, the production will not becarried out without a high level of standardization Consumers buy a product by themanufacturer in the hope that this product will be the same with thousands or evenmillions of other products of the same type

Air transport services is also unstable and difficult to standardize; previousproduct with next product often have certain differences This is because in theprovision of air services with the participation of many employees provideservices When booking, ticketing, customer contact staff in the ticket office oragent; flight procedures at airports customers to communicate with the staff in-flightprocedures and customer served by the hostess

Of course, the staff is very difficult to provide the same services atdifferent places, in different times and for different customers Moreover, customersare consumers and service quality decisions based on their feelings Experience ofeach person is different and even the feel of a day at a time is alsodifferent Aviation products and services will be of high value to meet customer'sindividual needs Therefore, in the aviation service provider in no small part bepersonalized, free from regulation That makes air services increased level ofdifference The conclusion drawn is to see clients as separate individuals, even ifthey are large organizations

"Not store" is products and services consumption directly or quickly damagecan not be stored The service can not be produced in advance, then stored in awarehouse until sold Air freight service is the transportation industry especially

where the production and consumption processes occur simultaneously Airtransportation service products can not be stored or saved.

While providing a certain number of seats on a particular flight, if the number

of seats that are not sold out when the flight takes off, the excess number of seatscan not be stored for sale on the next flight It was not kept of products and servicesair freight

To overcome this difficulty for effective service delivery, need to haveaccurate market forecasting, demand management measures well (for example,application of the reservation system, the Revenue administration system YieldManagement System, diversification rates attached conditions fence .) which canfill up the flight, take advantage of the even on flights to avoid excess demand orlack of short supply, keep credibility with customers

Above characteristics of the service can be illustrated by the following model:

`

Figure 1.1: The relationship between characteristics of products and services.

1.1.2 Concepts and characteristics of airline customers.

Any business or organization will also need customers In other words, thecustomer is aim of every business A business can only exist when have customers

Of course, needs to understand that customer concept here means that people buysomething of the business or organization Most people agree that actions related to

Heterogeneous Services

Not availbale

quickly broken Integral

the exchange of money In many cases, understanding is enough However, in abroader perspective, can be considered customers with whom we exchange their

values (value).They give us something (usually, but not always money) in exchange

for something else (usually goods or services)

In a world of increasingly fierce competition, competitive pressures forcemore businesses to better serve The business can not stand the pressure ofcompetition will fail

To be able to develop strong, the company is always trying to keep up withchanging customer needs and meet those needs So the airlines have to analyze theneeds, behavior of customers, thereby making the overall solution and appropriatepolicies on products, customer care before, during and after the trip fly Here issome sort of group of customers that the airlines are using

Classified according to the number of passengers in the group, the airlinesdivided by a number less than 10 delegations called retail customers, number ofdelegations from 10 or more call Group

Classified according to the market, airlines divided by the market.Forexample: the local market, market Indochina, Japan, Korean market, French market

Classified according to the purpose of the trip, the airline divides customersinto groups of passengers traveling for business purposes, workshops, rest, student,medical treatment, military transfers, labor, immigrant

Passengers travel for business purposes including journeys related to work andpay for the travel company Passengers traveling for business purposes andsometimes a boss but passengers traveling for business purposes does not paydirectly from their pocket money from the company

Passengers traveling for the purpose of attending conferences and seminars athome and abroad is a modern trend This group is also the company paid for travel

as long as they can attend the seminar on time Hotels to conference workshops

often went into winter The conference they attend usually held in the city luxuryhotel system.

Passenger market travel for the purpose of rest is divided into two categories:passengers traveling and visiting relatives (VFR-visit friend and relative-visitingfriends or visit relatives) Unlike traveling for business purposes, passengerstraveling for leisure purposes have to pay airfare

Students to study abroad is an emerging group of customers by increasing thelearning needs of students wishing to study in the university they wish Thisaudience demand for flexible, high weight of luggage to carry books, documentsand personal belongings They usually come in the season (school holiday)

Therapy passengers were emerging customer groups and the number isincreasing When increasing life, the need to travel to places that can heal more.When treatment of travelers, who often goes by Therefore, additional airlines tonote the special service for customers located stretcher services, service use oxygentanks, service trolley

Workers often run by organized labor export worry visa, airline tickets.Customers usually travel in large groups, urgent get tickets due to wait for a visafrom the embassy, the demand for low cost, go an urgent get tickets

Move troops also was a new trend as previously they often travel by road andsea.They often take a turn and needs to go low

Immigration was relatively common when the object exit needs to be living in

a better country in the country they are living still occur This audience is usually aturn to the other countries, they also have low demand

According to “Flying Off course, the Economics of International Airlines”, inearly days of international air transport, the majority of passengers travel forbusiness purposes The passengers traveling for leisure purposes are usuallyrich Market consumers do not expand with an increase in personal income and areduction in the real cost of airfares, hotel rates for the purpose of reducing businesstravel fast In Europe, the proportion of business travel for the purpose of reducing

to rest approximately 15.3%, 72.5% traveling, 10.4% visiting friends and relatives,about 1, 8% are traveling for other reasons (according to Business Monitor) Thus,traveling for leisure purposes (traveling and visiting relatives) accounted for 83% ofthe air transport market comes from England.

Also it is statistically the relative proportion of customers travel frequently byplane is called regular customers (Frequent Flyer) Number of this regularcustomers usually fly with business purposes but sometimes travel for tourism

purposes According to statistics in the United States in 1989 regular customers at

least 10 flights a year accounted for 6% of air passengers flying but over 41% of the total number of flights.

Travel purpose affects the frequency of travel and the time of flight Whilepassengers flying for business purposes more often, they usually make the tripshorter Meanwhile, customers who travel for the purpose of resting, visitingrelatives or long vacations and travel packages are often customers wishing to settime

When resting analysis, we find the rate that women make up 53% (Londonairport figures) and even more when guests are visiting relatives We analyze theamount of travel for the purpose of rest focus on ages 30 to 49 Rate from 60 yearsand older is also very high However, at the age of 50 or under 16 years old in the

UK make up less than 10% of passengers traveling for leisure purposes

The important social and economic factors also affect the travel needs ofeach individual client by traveling for the purpose of rest to pay for their holidayand their wives and children As a result, those with higher income get market share

of traveling for the purpose of more rest

In addition to the factors of gender, age, income, politics, culture, we alsoinvestigated the social and economic problems such as: the number of people in thefamily put together, walks of passengers, passengers profession Evaluation ofsocio-economic problems of customers in each market will be very useful forairlines in advertising planning, launching and promoting the sale of other sales

activities and also help to decide advertising strategies The knowledge of thismarket will assist airlines in product planning, pricing decisions as well asforecasts Moreover, airlines know the customer's purpose of travel, time of flight,

an understanding is needed of the hotel is also very useful to make policies tomaintain existing customers and attract more customers in the future

Crops by day, week, high season is a very important issue and airlines oftenincrease during peak load to serve the travel needs of passengers.Distribution timeschool student, the annual holiday in offices, factories, public holidays such asChristmas, New Year, cultural events, sports are important factors create traveldemand much of customers called high season In Europe, the traditional summerholidays of child labor and the person who did what he identical with beautifulclimate conditions in the Mediterranean In those days this summer who didnorthern Europe to southern Europe usually to rest, the influence of the high seasonflight schedule of the airline

Customers who bought air transport services are often the income insociety The rich client or senior officials need to sit in luxury cabins, isdistinguished from other customers Therefore, traditional airlines aviation serviceclassification according to three classes of services includes: First Class (FirstClass-Class F), Business Class (Business Class - Grade C) and often (EconomyClass- class Y) In the service class, the airline division of the different bookingclasses corresponding to the different rates (sub-class) to serve different customergroups that satisfy the different needs of each customer groups

In short, the traditional airline market segment in routes, according to themarket, the purpose of the trip Others will divide customers into traveling forbusiness purposes, traveling for the purpose of resting, visiting relatives andtraveling for other purposes This division is important because it relates to predictcustomer demand for product planning flight planning, in-flight service andespecially the price.The figure below shows the market segmentation based on thetrip's purpose and needs of the customer

Table 1.2: Segmentation based on the purpose of the trip

and customer needs.

Customer Ratings Demands

have

High frequenc

y of flights

The ability to cancel and change reservati ons

Bay stops Services

inflight comfort

Check-in procedur

es, quick checkout

Low Price

It is important 5

4 3 2 Does not matter 1

(Nguồn: Flying Offcourse) : public service PAX

: visiting relatives PAX : tourists PAX

: workers PAX 1.1.3 Factors that affect customer care of the air transport enterprises.

Factors affecting the enterprise customer care air transport system is themeasure of organization, technical and professional skills to influence economiccustomers to commercialize products products and services, attract more customersboth in terms of number of customers and increase the volume of customers buyproducts and services

Factors affecting this include the impact from inside and outside theenterprise

The external factors affecting business including the policies of theministries, other airlines.Now the Civil Aviation Administration of Vietnam

(Department HKDD) managing unit management issues related to aviationenterprise licensing as established, approved commercial rights to fly to the aviationbusiness, shop browse published rates between countries, approved ceiling fordomestic flights network in Vietnam The emergence of a range of cheap airlines(Low Cost Carrier LCC) is also a factor affecting the traditional airlines LCC firmshave an impact on the market Along with the sale at very low prices, the companyLCC bring benefits to the community, creating new flows as low-income people canalso participate using air freight services However LCC carriers have a certaininfluence as the majority of its LCC to use the aircraft is about to expire use,technical costs too little leads to flight safety is not high.

The factors affecting the business which is the organizational structure ofthe enterprise.Air transport enterprises should have the organizational structure andcustomer-oriented culture Businesses need to have the professional researchcustomer needs, proactively deploy products according to customer needs, specificoperational deployment to maintain and develop customer relations Structure of theenterprise of the necessary customer care center (Customer Care Service Center)function to find out what customers need and air transport enterprises can do to beable to meet the highest customer needs.The efforts of the business itself arepresented in the modern fleet development, human resources, productaccompanying services marketing and customer

1.2 The basic content of the airline customer care.

Customers determine the sustainable development of any business includingairlines Therefore, improving the quality of customer care is the goal of theairline.To maintain customers, airlines need Customer Relationship Managementsystem (Customer Relationship Management - CRM) and implementation ofcontent management customers seriously, seriously Customer RelationshipManagement System to take good care of their existing customers to always choosethe company.Besides taking care of existing customers, airlines have to findappropriate measures to develop its customers, attract new customers to use its

services and making them its loyal customers.So in order to attract customers, theairlines need to effectively use the variables of effort and organizational resourcesfor business customers know and use its services.Here is the basic content of thecustomer care shown by customer management system and the basic content toattract more customers through the efforts of business and organizational resources

of airlines

1.2.1 Customer Relationship Management (CRM) of the airline.

Customer relationship management is used as an important solution in thebusiness, is the basic content of the airline's customer care.CRM is consideredmandatory for airlines general and VNA in particular to the implementation if youwant long-term survival and development in the market and competition isbecoming increasingly fierce.Therefore, the airline has been investing more andmore on customer relations to generate benefits in the long term is to maintain itscustomer base.In addition, customers increasingly better understanding of theservices they receive They compare, choose airlines provide most valuable benefitsbased on past experience, and needs her.Therefore, customer relationshipmanagement is indispensable for the airlines

Since the appearance of goods trading relations, we have made the storageand use of information about suppliers, buyer-clients in a variety of different formsbased on the purpose, cognitive and existing facilities.This is a primitive precursor

of customer relationship management As the development of informationtechnology, it has support for enterprises in the management of customerinformation and customer information management system - Customer InformationManagement System-CIMS, followed by the Automatic Sales System SFA - SalesForce Automation - was born Can say this is the premise of CRM today

The concept of CRM in business in general has become more popular in thelatter half of the 90s of the 20th century.But so far, the market analysts, researchersstill do not agree on the exact definition of it There are many concepts of CRM By

David Sims: "CRM is not a technology or any tool support, but it is a program to"

red carpet "entrance to reception and customer service" [2].Ideas and concepts is nearly identical to the business philosophy of "Customer is God".Also according to

Rayan Crow Cour, for that "CRM is a business process that uses a deep knowledge

about customers is accumulated over time an effective way to build and implement their business strategies to meet the specific needs of each client's goals

"[3].Jennifer Pratt said: "CRM is a management model, in which the customer is the

center of all activities and processes that make business.CRM uses modern technology, integrated strategic planning, personal marketing techniques and organizational development tools to build relationships inside and outside, in order

to increase revenue and profit profit as well as to increase productivity in the enterprise "[4].

Finally, an evaluation concept is quite adequate, it is regarded as an expert

definitions and is widely recognized for CRM, which is: "Customer Relationship Management (CRM) is a expression of the business strategy to attract, select,

develop and maintain relationships with the most valuable customers "[5].This

concept is considered to be quite adequate and is widely recognized for:

Firstly, CRM is not only a technology management; collection of model; an

organizational model or abstract as the "red carpet" that CRM is regarded as a

manifestation of the business strategy, it associated with the long-term and scale, covering all business activities of the enterprise customer towards

large-predetermined goals

Secondly, the CRM is a way of implementing business strategy.In a competitive

environment, businesses must always attract, entice customers, ensure sales tomaintain profitability and business development activities With a predetermined

[2]: http://www.customerthink.com/user/david_sims

[3]: http://g-cem.org/eng / print.jsp?contentId = 413 & subjectid = 104

[4]: http://g-cem.org/eng/print.jsp?contentId = 413 & subjectid = 104

[5]: http://www.customerthink.com/user/david_sims

strategy, CRM deployment attracting customers, based on the evaluation criteriaand classification to choose the client intends to bring the most benefits in thepresent as well as long-term future to build and maintain relationships to ensure thesurvival and development of enterprises.

Thirdly, CRM requires the coordinated participation of most of the functions

of the business such as: human resources, sales, accounting, information

Fourthly, CRM is not a business strategy.However, in the current business,CRM is indispensable for business for CRM to ensure that business strategy isimplemented effectively, especially in the long term CRM based on the strategicdirection for the implementation of customer relationship management CRMresults obtained are the customers, the enterprise market to ensure maintenance andbusiness development CRM is the basis, the premise is very important to buildbusiness strategies Thus, CRM and Business Strategy dialectical relationship toeach other In particular, the strategic direction determines the content of the CRM,conversely, CRM implementation is well underway oriented business strategy.Fifthly, large enterprises are now generally diversified businesses, theexpansion of the business into new areas requires market research, competitor andeconomic From the fact that, that CRM deployment to implement businessstrategies with existing sectors are crucial in micro data in building new businessstrategy towards business From the above concept of CRM, we have years ofcontent management clients is as follows:

Figure 1.3.The contents of the CRM client management.

Firstly, the planning and implementation of search operations, to attractcustomers.From the strategic direction of air transport operations, the Right CRMblueprint for finding, attracting customers Planning can not not mention the

Analysis, strategic customer choice

Develop and maintain relationships with strategic customers

Evaluate the performan

ce of CRM

collective marketing solution for each specific customer oriented enterprises todeploy the search activity, their attraction Marketing solutions commonly used areproduct, price, distribution and promotion.

Secondly, build customer database is an indispensable requirement for airtransport operations.Construction of database clients include: determining the scope

of the customer database (what information and criteria need to be taken in thecustomer database); selection method of obtaining and processing; developingmechanisms to maintain development, process log information into the systemdatabase; perform logging, update the information in the system database.However,the management and use of the database depends on the technology and humandevelopment, the implementation of this work

Thirdly, analysis of, strategic customer choice.Strategic direction of themarket, customers in the field of air transport group pointed out that enterprisecustomers need to focus resources toward achieving long-term goals However, inorder to identify a specific object customer is strategic customers, we have to build

a system of evaluation criteria, credit scoring, customer rating Next is to buildstrategic customer defined process Followed by the deployment of analysis,strategic choice among customers This work is not easy, it requires the job to behighly professional, ethical and technological support The process of analysis,evaluation, and determine customer requires strategic objective, independent, cross-check monitor, proposed control after selection

Fourthly, build and maintain relationships with strategic customers.Maintainrelationships with strategic customers are always looking for ways to satisfycustomer needs The supply of the service to be customer oriented and always forthe benefit of customers To do so, the policy incentives for strategic customersneed to be made There are so, to ensure the sustainable development of the airtransport business in the long term

Fifthly, assess the effectiveness of CRM activities are considered to be themost important component of CRM, shown in the two angles is evaluated CRM and

CRM reviews."Evaluating CRM" is based on a financial index, with CRM,effective assessment method is to be customer-centric "Evaluation of CRM" as thesystem application software, system software using CRM as a tool to provide airtransport enterprises of the statistical data, the analysis of the customer.Statisticaldata and follow directions completely depends on the use of information andcapacity of business leaders In fact, CRM software system is a system throughoutthe enterprise business sector and it is used for many other business sectors,depending on its intended use.

1.2.2 Business development efforts of the airline customer oriented focus.

To develop customers, airlines need to effectively use the variables of thebusiness effort Its business efforts oriented to match and satisfy customerneeds Here is the approach of business efforts to develop the airline's customers

1.2.2.1 Products and services.

An offer can be considered as an atom with nuclear or core in the center,surrounding the core product.It should be considered for evaluation at severallevels, including:

First is the basic products and services are services that exceed the needs ofcustomers or is the main reason for customers to service organizations

The second is peripheral products and services are additional services forbasic services provided by the service organization.If the service is basically

unitary, peripheral services can be many.Peripheral services may be required or not.These services correspond to the needs and wants of customers, making a good

point for basic services and increase the quality of basic services For example, onstage Hanoi - VNA Seoul, is basic shipping service from Noi Bai airport to Incheonairport.Peripheral service booking system, send the goods by aircraft registration,meals on board, passengers may or may not be needed, depending on their needsand desires

Peripheral products and services are the products utilities included basicproducts and services.For example, customers who buy a ticket they want out of aseat on the plane also has a variety of additional factors, such as waiting roomsconvenient, quality meals to ensure clean and destination right now

Network routes, flight frequency and passenger flights from place to place

is the basic products and services of air transport enterprises Besides this basicproducts and services, the air transport enterprises additional peripheral productsand services is the ground services and flight services

Ground services including: ticket booking services, hotel reservations, carrental, flight procedure service, luggage service, airport lounge, service aircraft;interline services, services in the event of abnormal flight, airport services, customercare services and settlement of trade

The in-flight service (services), including food services, entertainment,media, services for guests with special needs such as wheelchair, need oxygen tobreathe on flight,

1.2.2.2 Service price

Price apparently simple but actually very complex For one price, thefirst thing to think about is to set targets.Set goals and then the subsequentproblems can be solved quickly One price usually serve goals such as: theexistence, maximize profits, maximize sales, reputation for customer care

Activity-based pricing arrangements factors and resolve theirrelationships within the organization and outside services market include: supply,demand, business goals, competitive activity, expenditure structure costs, productlife cycle

(i) The factors that affect prices: market demand, competition, the level of

costs and customer's perception of price

Market demand depends on factors such as the scale and types of largeand small markets, customer needs; trend of increasing demand, the general

economic environment, the boom or recession; sensitivity feel about the priceelasticity of demand; market position.

Competition: depending on the level of competition in the market, theactual ability and potential of the business, the number of competitors, newpolicies intrusion into the market, price wars, stability of the market

The level of cost: depends greatly on the level of inflation, fuel prices, theimpact of currency, the minimum cost, the cost structure

A customer's perception of price: It can be seen that the cost of very smallchanges in the service.This makes customers feel service rates it is difficult tounderstand, tend to see it as too high Even if the comparison, refer to the sameproducts and services

When consumers purchase a service, and they know the original price, theprice would probably also affect the quality of service they enjoy.Besides notbeing able to use or try out the service before you buy it, the price factor is theonly objective information that customers get Of course the relationship goodprice to quality is acceptable However, as mentioned, it depends on a number offactors such as: the knowledge, experience, price of competitors

Once consumer services, customers often have a habit of re-evaluation, comparingthe quality that they actually get what they give out.For now, understand this is animportant factor in the decision and adjust the price because it encourages loyalty

(ii) The valuation method selected.

To win the market, customers, businesses have the appropriate pricingstrategy for your products and services There are many different valuationmethods are proving in the diagram below:

PRODUCT PRICING METHODOLOGY

Figure 1.4: Diagram of the method of valuation.

Priced according to the cost method of valuation in addition to costs andpricing profit targets

Added to the cost of valuation is to determine the rates published by the cost

is one of the main pricing method, often used in business Hence the cost iscalculated by the formula:

= Unit cost (variable costs + fixed costs) / quantity consumed.

One thing to note is that different from tangible products, cost structure inthe huge intangible products and accounts for a high proportion of the total cost ofthe business This makes the prices of products and services tend to be higher forconsumers As for now is a burden, a depreciation pressures a threat oninvestment

In addition to interest rates = unit cost / (1-expected earnings on sales)

Target price by the profit is determined on the basis of ensuring the targetrate of return on investment and is calculated by the following formula:

Price target profit = Cost + Profit * unit capital investment

Accord ing to the value used

Accord ing to the buyer

auctions

Pricesofcompetitors

Bid

Valuation methods under the Enterprise market is mainly based on theprice of competitors The principle of only about pricing is as follows: Price ofenterprise products less than or equal to the selling price of the competitors in theenterprise to participate in the market with weak competitiveness than or equal tocompetitors Selling price of the business is greater than the selling price ofcompetitors is applied when the enterprise product differentiation and customeracceptance.

(iii) The pricing strategy.

A strategy: In the same basic conditions and the same volume of products andservices, the price is the same for all customers.This strategy has the advantage ofallowing the enterprise can ensure income and the prestige of customers, pricingand management quite easy However, the downside of this strategy can lead toprice rigidity, less flexibility

Price discrimination strategy: offer different customers different prices inthe same conditions and the same basic volume.This strategy has the advantagethat the seller is allowed to specific price bracket "bare floor" should be able tobetter assist in the sale However, the downside of this strategy is to manage keyconstraints n, create psychological unhappy with some customers.The valuation ofthis in many forms:

Firstly, the customer group pricing: here different customers pay differentamounts for the same products and services

Secondly, the valuation in the image: the main different types of productsand services that are priced differently for different brands image

Thirdly, Valuation by location: different places, where different pricesdespite cost equal at every place

Fourthly, peak pricing, peak time: here the prices vary by season, by dayand even by the hour

Pricing strategy "lucrative": is the maximum price strategy for newproducts and services right from the launch of products and services on the market

in order to profit The essence of this strategy is the pursuit of profit This strategyhas two fundamental limitations: one is that it significantly reduces the number ofclients Second, it increases the likelihood of other companies jumped into themarket with lower prices This strategy applies when: enterprise productcompetitiveness overwhelming enterprise or monopoly position in the market.Attack strategy: a low-price strategy for the product (price low) in order to occupythe market quickly and gain market share.This strategy is usually applied ordetermined based on the price elasticity of demand.

Pricing strategy "intrusion": undervalued in the long run to be able to sellproducts and services in large quantities.This strategy is often used for alternativeproducts or product enhancements

Promotional pricing strategy: a form of temporary price adjustment tosupport promotional activities and business support The basic steps for theproduct (see Figure 1.5)

Determined

target price

Determine the cost of products

Market factors (demand, prices of

competitors, etc.)

Option valuation methods: cost valuation, demand-oriented pricing

and valuation market.

Pricing probe

Decide the final price and quote (additional factors to consider: psychological factors

in the valuation, its influence on other factors )

Figure 1.5.Diagram of the basic steps for the product.

1.2.2.3 Distribution channels.

Create services is one thing, getting the product to the consumer is a differentstory.Sale distribution of important measures to take care of customers

(i) The distribution strategy.

Strong distribution strategy: the provision of products and services usingall channels of distribution, types of intermediaries in the distribution to distributetheir products and services

Selective distribution strategy: Enterprise select one or severalintermediaries have the ability or conditions consistent with the distribution ofcertain types of products and services to deliver products and services forthemselves

Exclusive distribution strategy: within a market area, now just choose asales agent or a single monopoly in the distribution of products and services of thebusiness

(ii) Distribution method.

"Indirect distribution method" is the distribution of products and services throughthe intermediary distribution system.This method can include categories such as:merchants, dealers and brokers.The advantage of this method is to help provideservices and products to improve investment in the distribution, floor business riskfor merchants, cost savings in the organization of the distribution network andreduce direct relationships with customers

The bad point is that profit sharing.If the delivery system is too long, toowide, the supply of products and services do not have the ability to manage andcontrol this system Also feedback from the lack of timely updates and market

"Method of direct distribution" means the distribution of products and services inyour business through intermediaries: business may be in store, organizemarketing team to take home This method has the advantages such as: theprovision of products and services can be in direct contact with consumers Now

control the distribution market activities Since it can actively make decisions indistribution activities Besides, not profit sharing.

The method also has the drawback is a high risk business and to investmore capital in the distribution, and will be less effective for the lack of experience

in business operations

(iii) Distribution channels.

"Direct Distribution" means the distribution system withoutintermediaries, directly from the provision of services to consumers

"Indirect Distribution" means the distribution of products and servicesthrough intermediaries from the supply of products and services to wholesalersand retailers and ultimately to consumers

1.2.2.4 Trade promotion.

Promotion policy and business support can bring a lot of it especiallyimportant to maintain, attract and develop customers As a result of this policy hasalways been interested in investment, research and development Policy toolscommonly used in business services are: advertising, sales promotion, salespromotion and public relations with

Advertising is a really huge problem of any kind of business, organization

or service For successful service advertising can not be ignored Advertising is adescription of products and services as the most important characteristics of theservice is non-material Services can not present all drawings, photos or display Solike the existing service people to see what alternative services such as: facilities,personnel policy or can contact customer but never as the service itself Throughthat reflect the quality of service and customer satisfaction

There are many means of advertising, each of which has its owncharacteristics.You can use one type or combination of vehicles together This

depends on the advertiser's intentions The most popular means of advertising atpresent is:

Radio: broadcast media is popular in many countries around the world, isthe vector as a means of entertainment for the audience at any time.And it isinexpensive means, in accordance with the economic conditions of all classes.Television: since most people spend more time watching TV per day than othermedia, television became the "king" of the advertising medium.Televisionadvertising exploiting the audio links, images, colors and variations of the image tomake maximum absorptive capacity At the same time also the most expensive TVadvertising compared to other media

TV commercial: an extensive picture than others because through themovie one can know the details the service delivery process

Advertising material: furniture, facilities

Press: This means using more popular because the cost is nothigh.Advanced life as the demand for information, news and more Media canconvey large amounts of information should satisfy this

Printed materials: flyers, brochures, catalog, magazines, special issues,small business card ad in the place of sale

Notation system: the whole of fixed symbols to help customers move andbehave intelligently and effectively in facilities

The user manual: The user manual also note the use of the service to helpour customers to participate in an easy way.They are akin to the method used comeswith the majority of durable goods

Signs: logos, forms, its color is of paramount importance.Signs todetermine the nature, distinguished service organization, is a sign to recognize it It

is used as the mold for customers to find its location and appearance many timeswill contribute greatly to enhance its prestige

The signal panel: for many service organizations, it is crucial as thehospitality industry (because they will help customers to easily and units become

customers of the unit).These panels have to be strategic position allowed, easy toread and be able to explain.

(ii) Public relations.

Is encouraged to a large public demand is not personally identifiable.Inrelations with the public, all the objectives of the business is limited to a minimum

so it's easy impact to the recipient information Longer life cycle of information bythe recipient information plays a new role that information to others

In this way, many businesses have been very successful and they have animpressive slogan like "Our best sellers are our customers." This verse proves theonly way to get the word of mouth is beneficial customer satisfaction

(iii) Sales promotion.

Activities not to mention the mass media lead to effective businessservices and profitable.Forms of sales promotion can very much for salespromotion in many directions such as:

The first is through the sales force by improving the operation of the salesforce and improve the understanding of the sales force for their products andservices

The second is to promote the intermediate with the ways such as:increasing the commission rate, providing services, providing credit, strengtheningthe rights and determine liability for intermediaries

Tuesday is the guiding force consumers such as: doctors, soccer players And, after all, to the final consumer as: discounts, temporary discounts,discounts, send gifts, organizing customer conferences, funding for culturalactivities, sports, friendly

(iv) Promotion:

Promotional impact is to use a variety of means, stimulate in order to promote andenhance the responsiveness of the market.It has a direct and positive impact on theincrease in sales Promotion is only used for a short time

1.2.3 Development of human resources and corporate culture of the airline.

1.2.3.1 Human resource development.

(i) The different roles of human factors.

For human services always play an important role.Products and servicesdiffer from tangible products as well as human factors Recruiting, training, humanresources and management is extremely important It can be divided into fourgroups:

First, contact the employee called regular contact contact regularly withcustomers.They are sales people and other service role Training they need to beprepared and motivated to serve customers

Second, arranger, also known as commercial employees, who work in thedepartment reception, finance, credit, personnel, etc They are also exposed, butnot often with customers and staff exposure.Their role is also very important increative activities and service provision They need to have a deep understanding

of business strategy, its organization and where necessary take responsibility forsatisfying the needs of customers

Third is the impact, role in the development of products and services,research, and other functions.They do not often affect customers, but only in thecustomer-oriented operation of the program

Wednesday was isolated.They are kh his contact with the customer but as

a supporter of their activities directly affect the activities of the organization.Thesepeople also need to understand the activities of the organization to contribute toimproving the quality of customer service

(ii) The role of communication and personal links are created.

People in service to implement its role is through communication.Formore service organizations, personal communication work is the product of theorganization as legal advisor.It creates the necessary links, important for any kind

of service The link that is actually connected to service organizations with theexternal environment in the scope of its activities The group will create a link to

the organization by affecting the non-member Participant roles associated withtwo functions: convert information and description That is, they will collectinformation from the external environment and give back to theorganization They just held personal services has substitute for communicationwith external organizations Do this well, they need to have high professionalstandards.

(iii) The contradictions of the links and the resolution of conflicts.

Personal communication seemed to work just gather information anddescribe simple but is complex, difficult, hampered by the conflicts generated bythe link

First, the conflict between human communication job with their roles.Manypersonal capacity can not meet the requirements of the organization or their workand the role of conflict with their own personal awareness They can not beassociated with their human role with the ball To resolve this contradiction, right inthe selection, work assignment, the B of managers need to be studied to maximizetheir capabilities and roles

The second is the conflict between the organization itself with customerservice.Conflicts arise when consumers or clients require services beyond theprovisions of the service organization such as a loaf of bread, a glass of fruitjuice Such conflict will increase if the person doing the communicating personalcustomer support th ì they do not have the ability to change the rules or proceduresand information can not be with our customers that But if the experience andwisdom they will reconcile the contradiction and has the ability to control whathappens on his own which is good for both sides The solution to this problem is tohow to the customer's expectations are consistent with the organization's ability tosupply The ad is one of the main causes formation of customer expectations Sowhen advertisers need to match customer demand, and abnormal situations canoccur

Tuesday is a conflict between the client together.Happens to be a necessitybecause consumers have more services in the same period For example, employees

in the teahouse always torn by the customer's requirements In the same time,customers require kh ng box turn on or turn down the radio while others require theradio loud.Reconciling these two requirements is difficult This conflict can begreatly reduced if the clients share the same service and expect the same standards

of service

Finally, the conflict between those who do the work to communicate witheach other.Because of the different roles and different, there is often doubt theability of each other The problem is how do they understand that: whether in high

or low position, their role for service organizations is also important His best rolealso means that played a part in the success of the business

1.2.3.2 Corporate culture.

Customer care is very important factor for any company.Customer isprofitable for the company According to the study said the cost to have one morenew customers with five times the cost to retain a customer of the company.Abusiness with good corporate culture will be customers choice of enterpriseproducts

Corporate culture is reflected in the following aspects:

First, businesses need to have a team of enthusiastic staff work with thecustomer because the customer is always around us

Monday enterprises need to manage the quality of the products is good to

be able to take care of customers

Third parties to create their own business a rebranding how customersaware of your company, look good on the company and accept the product selection

of the company

1.3 Lessons learned about the customer care of the international airlines.

1.3.1 Some research experience in the customer care of a number of international airlines.

1.3.1.1 Singapore Airlines.

Airlines Singapore Airlines was established on 01.05.1947 as MalaysianAirways Limited Airspeed Consul made the first flight from Singapore's KallangAirport with three flights a 1 week to Kuala Lumpur, Ipoh and Penang

On 16/09/1963, Malaysia Federation birth and renamed Malaysian AirwaysLimited.May /1966, the company changed its name to Malaysia-Singapore Airlines

In 1972, Malaysia-Singapore Airlines split into two independent airlines,Singapore Airlines and Malaysian Airline System

Today, Singapore Airlines has evolved into a regional scale As of31/12/2011, the company had total assets of $ 24.5 billion revenue in 2011 was $14.5 billion and pre-tax profit of $ 1.4 billion, the number of aircraft is 101 units in

it mostly large fleet modernization Singapore Airlines are always trying to improveour services, always keep the 5 stars in the HR-related services, such as serviceattitude of the staff at the airport, the air, the C-class service, quality of food,

Singapore Airlines business motto is customer driven to satisfy the needs ofcustomers Therefore, Singapore Airlines has become the leading airline in theregion with powerful fleet of over 101 aircraft mainly modern aircraft, mid-rangeand long-range.With a modern fleet, quality of service are improved both in terms

of the quality of human resources and material Professional marketing team,research the needs of the customer so that there are measures to attract its customers

to choose In particular, the Singapore Airlines introduces flexible pricing policies,strengthen the sales network, modern sales system, the effective trade promotionmeasures, good advertising led to many interested customers and use the example

ng Services.In addition, Singapore Airlines is interested in service quality of frontline staff Especially, Stewards of Singapore Airlines very thoughtful, considerate,beautiful costumes and are particularly interested in customer care.Attendants

always smiling customer service to meet customer requirements on the flight fast,thoughtful Team members include many nationalities, have the ability to speakfluent many temperate ng languages.In short, their organization model oriented tocustomers, satisfy customer needs and the VNA now learning organization modeland its application in training the skills serve customers like flight attendants ofSingapore: nice, polite, fluent in many languages, warm customer service.

1.3.1.2 Thai Airways International.

Thai Airways International Airlines is the national airline of the Kingdom ofThailand.Carriers of passengers by air in the Thai domestic, regional andintercontinental The company made the flight from Bangkok to key destinationsaround the world and in Thailand domestic

Thai Airways International established in 1960 is a joint venture betweenthe Thai domestic airlines (TAC) and Scandinavian Airlines System (SAS) SASwhich contribute 30% of the shares.SAS provides expert management, exploitationand marketing training and coaching to bring the company into an independentnational airline within a short period of time.By training and communicationtraining experience, airlines pregnant quickly reachable good management team,highly skilled professional

On 01/04/1977, after 17 years of joint ventures with SAS, the Thaigovernment bought shares of SAS.At day SAS remaining 15% stake and AirlinesThai Airways International has become the home of a Thai

In 1960, Thai Airways has launched international flights to ninedestinations abroad.Transcontinental flights began from 1971 to Australia, followed

by the 1972 U.S and 1980 European airline to North America In 1988

Total assets of Thai Airlines is U.S $ 4.8 billion The company currentlyoperates over 89 aircraft types.Thai Airlines is a cell m to VNA learning.Thaiaviation oriented products "smoothly" desire to choose Thai Air passengers will beprovided with excellent services and convenient.Thai aviation through equitization,

joint ventures with SAS that the company has been reorganized from the valuableexperience of its SAS Since then the company had absorbed the quintessence of theaviation sector to grow and become a class airlines in the region Therefore VNAare now conducting equitization, plans to sell 20% stake out in the form ofadditional investment capital, investment of foreign enterprises, their learningexperience for passengers , developing modern fleet, schedule stability, minimizelate cancellation condition is a very severe impact on the quality of services to makeVNA become an airline with the size of the region.

1.3.2 Some lessons for VNA.

Firstly, focus on fleet modernization, application of advancedtechnology These are the key issues are, as a basis to improve customer care policytowards satisfying the needs of customers

Secondly, customer care policy must come from customers, not itssubjective experience Customers is the goal of the enterprise, the enterprise cansurvive or not by the customer Firms often organize own survey and multi-channelorganization collects opinions of passengers to be the basis of research and analysisbefore making policy

Thirdly, customer care policy should be based on the requirements of themarket and its ability to provide A policy can not be successful if it exceeds theability of a firm or not in accordance with the socio-economic conditions of themarket eg flight passenger demand on the route Hanoi - Paris in 2007 increased by150% compared the same period in 2006 Route is always full while many guestsnot to fly circle VNA research increased flight frequency, but due to limitedcapacity should only increase the frequency of service, the number of bookingsslow to accept circled

Fourthly, customer care policy must both ensure consistency anddiscriminatory Uniformity is understood that in the same conditions, customers areentitled to the same services.Class two passengers buy tickets on the same flight,pay the same price to get the same service Distinctive in that same sitting in first