Marketing plan for kaspersky anti virus software

List of ChartFigure 2 Rate of copyrighted / non-copyrighted antivirus Figure 3 Intention of changing to copyrighted software Page 15 Figure 5 Overview of the antivirus market share

Bùi Hương Thanh

MARKETING PLAN FOR KASPERSKY ANTI-VIRUS SOFTWARE

MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s Name: Lê Thái Thường Quân

Ho Chi Minh City

(2012)

Words of guarantee

This academic project is a research project that was written by Bui Huong Thanh in fulfillment of the requirement of the degree of Master Business & Marketing Management at Solvay Business School and Ho Chi Minh City Open University, course MBMM5

Ms Bui Huong Thanh

I would like to express my sincere thanks to professors of Solvay Business School – University of Brussels for the profound knowledge that they managed to impart to me, for the time they had spend to instruct me My thanks are reserved for Mr.Ngo Tran Vu for his advice on conducting choosing the topic and his recommendation to help me finish my final project I would also like to extend my gratitude to colleagues and friends, who helped me to complete the questionaires

My deepest gratefulness goes to Professor Lê Thái Thường Quân, lecturer of the Ho Chi Minh City Open University and aslo my tutor, who enthusiastically helped me from project outline until to project finishing

Lastly, I would also like to thank Mr.Serge Bywaski and Ms.Nguyen Thi Mong Thuy,

Ms Le Thi Ngoc Hien, our co-ordinators, who have been with us throughout the course, for their enthusiastic connection between the class and Solvay professors

Bui Huong Thanh (Ms.)

Tutor’s comment

Comment on project

Marketing Plan for Kaspersky Anti-Virus Software

By Bui Huong Thanh

This is practical project for real business situation Although there are many rooms for improvement in the report, it covers basic information and analysis which bases on survey data and gives sensible suggestions

Le Thai Thuong Quan

Table of content

NAM TRUONG SON CORPORATION & KASPERSKY LAB - Page 10

2 Micro-environment analysis – Porter Five Forces - Page 13

Abbreviation list

List of Chart

Figure 2 Rate of copyrighted / non-copyrighted antivirus

Figure 3 Intention of changing to copyrighted software Page 15

Figure 5 Overview of the antivirus market share Page 16

Figure 8 Reasonable price for anti-virus software Page 18

Figure 9 Why consumers not using copyrighted software Page 13

Figure 10 Source of information about anti-virus software Page 19

Figure 12 Reasons of changing to a new software Page 20

Figure 17 Sample of banner “Discovering Kaspersky Contest " Page 26

Figure 18 Booth designed for the VCW 2012 expo Page 26

EXECUTIVE SUMMARY

Vietnam with over 33.4 million internet users (1) and over 10 million owned persons is a promising market for software selling But according to BSA (Business Software Alliance), rate of software counterfeiting in Vietnam is over 80% This raises a big question for Nam Truong Son – Kaspersky antivirus software distributior: if anti-virus software encounters the same rate, how the company can make people use copy-righted license and how Kaspersky could increase its foothold in the market

computer-In this study, a research is conducted to identify the market, understand the consumer behaviors then propose a marketing plan to achieve the two objectives: help the consumers get closed approach to copy-righted anti-virus software and improve the market share The marketing plan summary of Kaspersky anti-virus software for year 2012:

Offering to customers Diversify products / Vietnamese version / multi-channel

support service

Price Strategy Market price

Distribution Indirect & Direct system

Sales Strategy Based on reseller to enlarge the market rapidly

Service Strategy

Support center 13/7 Hotline number Emergence clean virus at home

Promotion Strategy PR & Sales promotion

Marketing Research 185 samples: brand power / Consumer habit research

INTRODUCTION

1 Introduction:

More and more people access to the internet nowadays, these people realize they need a tool to protect themselves and their data from many hackers and harmful stuffs on the global network So they use anti-virus (or security) software But in Vietnam most of the internet users prefer cracked software, the only reason because it’s free These people don’t see the differences between copy-righted and cracked ones then they don’t want to pay

The anti-virus market is huge but currently, domestic vendors as well as other foreign vendors didn’t play their good role because domestic products are lack of technical ability while foreign products are high price and lack of localization ability

In front of this opportunity, if Kaspersky Vietnam can help the consumers know the benefits of using antivirus software and besides its own high quality, Kaspersky set up the price suitable with Vietnamese income, it’s so sure that Kaspersky will win the market

2 Objectives of the project:

With the fact that Kaspersky took over 33% market share while BKAV 41%, Synmantec 12% and others 14% (2) Besides, based on the collected data from Kaspersky Vietnam, there are 5 millions Kaspersky software downloaded from the data centre but only 630,000 software licenses are activated (12.6%), most of the licenses are cracked or trial (87.4%) This project aims to understand the consumers’ and make them buy Kaspersky antivirus instead of competitors’ products

This project is valued only for Ho Chi Minh market, based on the survey results The purpose of this project is:

- To increase the market share of Kaspersky (up to 50%)

- To increase the percentage of copyrighted software compare to cracked or trial

license

3 Project scope:

To analyze the overall environment of the business to see how potential the market

is, this project use the SLEPT and Porter’s 5 forces model

To understand the consumers’ behaviors, this study includes a primary data research conducted in Ho Chi Minh City by interviewing 185 office staffs:

Age from 20 to 30, regardless of gender

Places: companies (SK telecom, Artsign, HSBC, YAN JSC, Riverbank…); Youth Culture Centre, Han Thuyen Park, evening classes, home interviews…

Form of survey (see appendix)

Secondary data research also is taken from website

The 5Ps marketing strategy is applied for the implementation plan

NAM TRUONG SON CORPORATION

Nang, NTS Can Tho and NTS Security (www.nts.com.vn )

Founded in 1997, today, Kaspersky Lab (www.kaspersky.com) is firmly positioned

as one of the world’s top four leading vendors of endpoint security software Kaspersky Lab continues to further improve its market position, demonstrating significant growth in all regions The company’s headquarters are located in Moscow, Russia, and it operates in more than 100 countries worldwide Kaspersky Lab currently employs over 2,400 highly qualified specialists The company has its own territory offices in 29 countries and its products and technologies provide protection for over 300 million users worldwide

From year 2007, Kaspersky Singapore and NTS Corp signed the strategic

agreement, appointed NTS the exclusive distributor and service supporter of Kaspersky

antivirus software all over Vietnam under the company NTS security NTS security

-represent for Kaspersky Vietnam - is responsible for developing Kaspersky trademark, taking care of distribution channel and marketing activities in Vietnam During the last 5 year, Kaspersky Viet Nam has proved its foothold in Vietnam market through over 7,000 resellers and 5 millions users

2 Kaspersky Lab Vietnam mission:

To be number One in Vietnam anti-virus market (personal product line)

3 Kaspersky Lab Vietnam vision statement:

Accessible and Affordable

- Accessible: consumers could buy the product through nationwide distribution

channel, use Vietnamese language and 13/7 customer support service

- Affordable: set up a reasonable price system

MARKET ANALYSIS

1 Macro-environment analysis – SLEPT

The same as other industries, software business also is affected by the environment around it

Social More and more spam mail and advertising sent to the personal’s mailbox

People realized that most of this caused from the website where they sign up for the free services or free software They are annoyed and will buy a copyrighted software when the price is affordable Besides, the risks of being hacked or losing important data also make the consumers wonder when they use the crack software

Legal The 47 governmental decree 47/2009/NĐ-CP came into effect on 30th June

2009 designated person or entity who use the software is not genuine or murky software will be fined up to 500.000.000 VNĐ and can be responsible for criminal prosecution

Economic From July 2007, Vietnam officially became the 150th member of WTO, this mean the businesses in Vietnam have to follow the existing regulations between the participating countries including intellectual property rules For example in The United State, some states force the countries exporting to their market have to use the licensed software within the whole business, from administration to sales and manufacturing Antivirus software isn’t an exception

Political The government encouraged the consumer using licensed software by

defined the VAT for software is 0%

Technology Nowadays, the antivirus vendors have tools to tracking which software

is running with or without licensed Those are not a copyrighted software will be rapidly locked and come into the blacklist In addition, more and more viruses and malware are written and broadcast on the internet, they threaten the information security

2 Micro-environment analysis – Porter Five Forces

Learning the competitive advantage model of Porter, the company can strategize the actions in order to create competitive advantages

Firgure 1 The Porter’s five forces model (3):

POTENTIAL ENTRANTS (Threat of new entrants: high)

- Growing market

- Common concept

- Low consumer switching cost

- Low capital investment

BUYERS POWER (Powerful)

- Buyer low switching cost

- Anti-virus is not a “must

- Product is not really different

- Supplier low switching cost

- Customer is powerful

(acceptable price, accessibility to

the distribution channel…)

SUBSTITUTES (Threat of Substitute: high)

- Open-source / free software

- Integrated firewall / security components in the Operating System (Ex: Malicious Software

Removal Tool in windows 7)

RIVALRY among EXISTING FIRMS

- No of Antivirus brands in the market: above

10

-Compete in price / promotional program

- Market share: BKAV 41%; Kaspersky 33%;

Synmantec 12 %; Others 14%

The competition among vendors in the anti-virus market is high and there are a lot of threat from the substitutes and potential entrant So Kaspersky Vietnam have to see clearly what is the strong point of the company, then deliver an appropriate strategy

The buyers in this case are the most important The mission of NTS is how to draw and retain the customers by its marketing program

3 General anti-virus market:

Although antivirus sales is not as big as other operating software / hardware’s, it has quickly still become a favorite destination of many antivirus software producers since mid

2009, such as Kaspersky, Symantec and BitDefender, BKAV… In early 2010, new brands came to Vietnam, including Panda Security, PC Tools and Avira Apart from the two long-standing options, BkavPro and Kaspersky, two new big names Symantec and McAfee are stirring up the market Bitdefender Antivirus software officially made debut in Vietnam in October 2005 through its distributor VIAMI Although this software is very popular in 100 countries in Europe and the Americas, most Vietnamese computer users do not see it as their choice In middle 2010, Panda Security officially presented in Vietnam after 20 years

of operation, with offices in more than 195 countries Avira Company is the latest antivirus software foreign company entered Vietnam, after it named Red Umbrella Services Company as its distributor in September 2010

When looking at the anti-virus market, we see there are two types of anti-virus software: domestic – developed by local vendor and foreign – developed by foreign company

With domestic software, the updating and virus detecting ability is not meet the customer requirements but it has its own advantage is Vietnamese language While foreign antivirus brands are superior in updating new virus patterns and threats worldwide but only have English version and high price

If Kaspersky can overcome the disadvantages of foreign softwares, it can be the first choice of the consumers

4 Customer demand:

Based on the surveys, more than half of the office staffs using non

antivirus software But most of them are ready to change into copyrighted software if the software can meet their requirements

Figure 2 Rate of copyrighted / non

Figure

Facing many risks when surfing internet, Vietnam consumer realized they need a tool

to protect their data, their applications on the

security software become high

This study conducts the survey to clarify the factors that consumers care when they choose an anti-virus software

Customer demand:

Based on the surveys, more than half of the office staffs using non

antivirus software But most of them are ready to change into copyrighted software if the software can meet their requirements

Rate of copyrighted / non-copyrighted antivirus software

Figure3 Intention of changing to copyrighted software

Facing many risks when surfing internet, Vietnam consumer realized they need a tool

to protect their data, their applications on the computers The needs of the anti

security software become high

This study conducts the survey to clarify the factors that consumers care when they

virus software

Copyrighted software 46%

copyrighted software 54%

Non-Types of software used

Ready 49%

No idea 23%

No 28%

Intention of changing to copyrighted

software

Based on the surveys, more than half of the office staffs using non-copyrighted antivirus software But most of them are ready to change into copyrighted software if the

copyrighted antivirus software

Intention of changing to copyrighted software Facing many risks when surfing internet, Vietnam consumer realized they need a tool

computers The needs of the anti-virus /

This study conducts the survey to clarify the factors that consumers care when they

Intention of changing to copyrighted