Improving effectiveness in online marketing strategy of VTV Broadcom

To understand more about online marketing strategy of VTV Broadcom, I had adesire to have an intern position at VTV Broadcom.. Other than the introduction and conclusion, the report is d

TABLE OF CONTENTS

INTRODUCTION 1

CHAPTER 1: 3

OVERVIEW OF VTV BROADCAST AND TELECOM SERVICE COMPANY LIMITED 3

1.1 Formation and development of VTV Broadcom 3

1.1.1 Formation of the company 3

1.1.2 Development of the company 4

1.2 Organizational structure 8

1.3 Recent business result and operation of the company 10

CHAPTER 2: 12

ONLINE MARKETING STRATEGY OF VTVHD/T2 AT VTV BROADCOM 12

2.1 Basic concepts about online marketing 12

2.2 About the new product: receiver hub – VTVHD/T2 14

2.3 Current online marketing situation of the new product 18

2.4 Results of online marketing after 2 months 21

CHAPTER 3: 22

EVALUATION AND SUGGESTIONS TO IMPROVE THE ONLINE MARKETING AT VTV BROADCOM 22

3.1 Evaluation of current situation 22

3.1.1 Achievements 22

3.1.2 Limitations 22

3.2 Suggestions 23

CONCLUSION 26

Nowadays, marketing is a key factor for every single business Furthermore, inthis era of information, the power of Internet is immeasurable and it can helpenterprises to reach more customers So besides traditional marketing, enterprises cantake advantage of this powerful tool not only for having a better performance but alsofor reaching new potential customers

The Internet is one of the most efficient and cheapest ways to promote acompany and its products With the Internet, promoting a business can be done for ashoe-string budget Aside from cost-efficiency, one advantage of online advertising isthat there many creative and efficient ways to advertise online The Internet is a muchmore flexible method to advertise compared to print or broadcast media For example,aside from static ads, a company can create active ads with sounds, motions, etc…Ads

on Internet can include links and interactive advertising features There are also manycreative ways to highlight your products online and they are often much moreaffordable than creating advertising on TV

The most important reason why businesses should consider using the Internet as

a marketing tool is because it is an increasing important connecting method In the nextfew years, more people will get connected through the Internet The Internet hasallowed people to communicate instantaneously to anybody around the world and ithas changed the way people collect information It also changes the way people shop

It will continually change the way people lead their lives in the coming years TheInternet is continually breaking barriers every day Internet will become an even moreessential part of people's lives so it is essential for companies to utilize this moderncommunication tool to their advantage

VTV Broadcom is a startup company, which was established in 2010 This isone of the leading companies in providing new solutions and services in television andmedia industry in Vietnam Recently, the company has developed a new product namedVTVHD/T2 After being tested carefully, it was evaluated as a focused product of thecompany and is expected to bring so much benefit to customers with a low cost

The board of directors decides to establish a new marketing team which willconsider online marketing as a main method to advertise The purposes of this smallproject is: (1) to introduce the new product to customers, (2) to push up the sale of thenew product at a highest level as possible, (3) to consider all marketing tools,especially the internet to reach to a huge amount of potential customer, and (4) to getmore experience in launching and marketing a new product

To understand more about online marketing strategy of VTV Broadcom, I had adesire to have an intern position at VTV Broadcom Thanks to the support of thecompany’s directors, thoughtful recommendations of the office staffs there andenthusiastic instruction of Mr Tran Nam Trung, I had the chance to be in direct contactwith real situations, to observe and know more about a real online marketing strategy

Therefore, I choose the topic “Improving effectiveness in online marketing strategy

of VTV Broadcom” to be the title of my report.

Other than the introduction and conclusion, the report is divided into 3 mainchapters:

 Chapter 1: Overview of VTV Broadcom

 Chapter II: Online marketing strategy of VTVHD/T2 at VTV Broadcom

 Chapter III: Evaluation and suggestions to improve the marketing online

strategy at VTV Broadcom

CHAPTER 1:

OVERVIEW OF VTV BROADCAST AND TELECOM SERVICE COMPANY

LIMITED 1.1 Formation and development of VTV Broadcom

1.1.1 Formation of the company

VTV Broadcast and Telecom Service Company limited (VTV Broadcom) wasestablish in 2010 It is one member state owned; operating under the Enterprise Law(2005) by Vietnam Television founded and owns 100% of the charter capital Thepredecessor of the company is Center for Technology Television Services which wasestablished on 18th June, 2007

 International Trade name: VTV BROADCAST AND TELECOM SERVICECOMPANY LIMITED (VTV Broadcom LTD )

 Head Office: 43 Nguyen Chi Thanh, Ngoc Khanh, Ba Dinh District, Hanoi

 Transaction Office: 2nd Floor 3D building, Duy Tan Street, Cau GiayDistrict, Ha Noi

 Branch in Chi Ho Chi Minh City: No 2 Nguyen Khac Vien, Tan Phu,District 7, Ho Chi Minh City

This company was established for the purposes of:

 Participating in developing strategies for technology development plan ofVietnam Television

 Implementing advanced television technologies; developing technologyservices on television; and improving telecommunications infrastructure

 Manufacturing and doing business on new generation of TV equipment andtelecommunications devices

 Providing consulting services, systems integration; building business plan

on existing channels; and developing digital content on television andcommunications infrastructure

 Doing scientific research in the field of Broadcasting, Telecommunicationsand IT

 VTV Broadcom Corporation has team of professionals with a deepexperience in the field of Broadcasting, Telecommunications and IT

1.1.2 Development of the company

After more than 4 years of operation, VTV Broadcom has been growing up instrength, gradually asserting to be a prestigious brand name in television and

telecommunication industry including (1) Providing television & telecommunication solutions and equipments; (2) Mobile TV service T-DMB; (3) Production TV program services; (4) Online business; (5) Providing solutions for digitized text documents

The company has finished and is carrying out many important projects andcontracts with high value in Vietnam (30 contracts and projects in total)

Table1.1: List of finished and ongoing contracts/projects of VTV Broadcom

1 Provide consulting service

127,014,000 VND

07/2010

3 Provide consulting service Hanoi 183,520,000 08/2010

No.28/2010/DVTHVT-BTC

Conservatory of Music

Of Vietnam

921,000,000 VND

08/2010

5 Supply equipments for the

project: “Terrestrial digital

broadcasting first stage in

Hanoi and HCMC”

Center of broadcasting transmission Technique

336,000 USDand

513,900,000 VND

5,890,000,00

0 VNĐ

03/2011

7 Dismantle, move, install,

measure and inspect

equipments of Son Tra - Da

Nang Radio and Television

Station

Project management of National network Broadcast

447,424,000 VND

09/2011

8 Supply light and sound

equipments

Cultural Center of Ham Thuan Nam District, Binh Thuan province

542,124000 VND

10/2011

9 Repair microwave devices Ben Tre Radio and

Television Station

182,710,000 VND

02/2012

11 Supply materials and

relocate equipments system

for TV production

International Media Corporation

557,227,000 VND

03/2012

12 Repair broadcast machines Long An Radio 279,070,000 04/2012

220,220,000 VND

05/2012

14 Provide equipments for

project: “Broadcast and

15 Upgrade transmitters for

both analog and digital

broadcasting of VTV6

Center of broadcasting transmission Technique

4,350,000,00

0 VND

09/2012

16 Supply equipments and

built-in systems for

program production of

SCJ Studio

SCJ TV Shopping Company Ltd

27,999,000,0

00 VND

12/2012

17 Supply equipments for

upgrading coaxial network

MTV Company Ltd.-Vietnam Cable Television

666,182,000 VNĐ

12/2012

19 Supply lighting system for

SCJ Studio

May Man Company Ltd

11,222,284 VND

12/2012

20 Supply IT equipments for

HTV

HCM C television (HTV)

16,410,150,0

00 VND

01/2013

22 Repair 10kW broadcast

machines

Long An Radio and Television Station

495,330,000 VND

03/2013

23 Supply material and Planar

Lightwave Circuit Splitter

Vietnam Capable Television

1.910.000.00

0 VND

08/2013

25 Supply of equipment for

the project "Produce

programs in Khmer and

broadcast on television in

the Cambodia"

Center of IT and Metrology

4.435.706.00

0 VND

09/2013

26 Supply equipments for

upgrading coaxial network

Vietnam Capable Television

418.369.600 VND

11/2013

28 Supply Antenna Parabol Center of

broadcasting transmission Technique

495.550.000 VND

12/2013

29 Supply electric generator

and transcode sofware

Quang Duong Communication and Technology Joint Stock Company

750.275.256 VND

8.420.526.00

0 VND

05/2014

Besides, VTV Broadcom is assigned many others important tasks by VTV and

is collaborating with certain strong domestic and foreign partners (such as Cisco, Sony,Panasonic, Vietmap…) to provide new technologies and services, such as OTT,HbbTV, Social media, etc to Vietnamese market

1.2 Organizational structure

The company consists of a Director, 4 functional departments; Centre ofTelecommunications Television Consulting & Technology Services; a Branch in HoChi Minh City and Science Council

 Company Director: bears responsibility in front of Board of Directors ofVTV for the results of the business, duties and other activities; directs allactivities of the company

 Sale department (Business equipment department): Takes the responsible tosupply and to do business on technological devices; presides over theconstruction of the bidding documents and bid documents; managescustomers’ database and perform customer services

 Technical Department: Supports other departments in implementing projects

of the Company; is responsible for the management and operation oftechnical systems and equipment of the company; does research on scienceand technology projects

 Department of Finance and Accounting: is responsible for all the day to daytransactional accounting for the business, for management of theorganization’s cashflow and ensuring there are enough funds available tomeet the day to day payments, for advising and sourcing longer termfinancing …

 Department of Administration: is responsible for providing administrativeand logistical support to the entire company

 Branch in Ho Chi Minh City helps the company do business in the southernarea so it is able to meet closely potential customers in a more cost effective

manner, as well as cater to, and be more informed in, the needs of specificlocations

 Counseling Center and Technology Services TV: provides and suppliesconsulting services for television solutions and equipments

The organizational structure is shown in the following diagram:

(Source: Administrative Department of VTV Broadcom)

Until 1st July 2014, the total numbers of staff of VTV Broadcom were 37 peopleworking under the direct management of director

Table 1.1: Allocation of human resources

VTV Broadcom has a highly qualified, experienced managers and technicalprofessionals and they have worked in broadcasting for many years, some have beentraining abroad

Table 1.2: Level of education Diagram 1.1: Organizational structure of VTV Broadcom

Education level Number of staff

1.3 Recent business result and operation of the company

In an unstable economy in Vietnam, although VTV Broadcom has to face upwith many difficulties and challenges, it has still achieved quite high growth rate forprevious years With the guideline of reasonable growth and effective businessperformance, the Company is considered as a successful start-up company

During 3 year 2011, 2012, 2013 the business result of MB has shown asignificant growth

Table 1.3: Summary of financial data in recent 3 fiscal years (currency unit: VND)

6 Income before tax 215,287,451 434,614,409 1,405,898,777

7 Income after tax 99,307,936 241,545,172 1,059,608,416

it can tie in with traditional offline advertising and sales too.

Internet marketing has three cornerstone principles:

(1) Immediacy: the web changes at a blistering pace and online audiences,

whose attention spans are short, expect on-the-minute updates and information to keepthe favor and attention of this group; so the content builder/admin must respond toonline messages and interact with communities as quickly as possible

(2) Personalization: customers online are no longer faceless members of a

broad target audience – they are individuals who want to be addressed personally Use

the wealth of personal information available online to a company’s benefit bytargeting the relevant people precisely and personally.

(3) Relevance: communication online must be interesting and relevant to the

reader, otherwise it will simply be ignored With all the information that is competingfor your audience’s attention, the administrative team must find a way to stand out andengage readers The best way to do this is by giving them exactly what they want,when they want it Throughout this course, admin will learn tips and techniquesfor making all online communication more immediate, personal and relevant

There are various channels for online marketing Below is an outline of the basiconline marketing channels that businesses may integrate into their marketing campaign

(1) Search Engine Marketing or Paid Search — This is basically the first

thing comes in the mind of any new internet marketer It uses various models but two

of them are the most popular ones “pay per click” and “pay per impression” Thischannel can be used easily for affiliate marketing but Google Adwords do not acceptaffiliate links, so the best option with this is Facebook ads or 7Search etc

(2) Search Engine Optimization or SEO — Unlike SEM here a company can

improve the ranking of the organic result for the keyword Search results are listings on

search engine result pages that appear because of their relevance to the keywords,content as opposed to their being advertisements Inorganic search results includes paidpromotion, but organic searches relies on free strategies such as backlink building,content marketing and using page optimization in order to get your site to rank high foryour keywords in the all search engines, thereby getting visitors to your affiliatewebsite and offers

(3) Email Marketing — E-marketers will need an opt-in list of email addresses

to run this type of campaign and also need an email service provider Manyprofessional affiliate marketers use this channel without any hassle Building a largeopt-in list is the main features of this channel and this list must relate to the niche sothat marketers can promote relevant offers to subscribers

(4) Developing Niche Websites or Mini Websites — A company can create a

various niche websites consisting 2 to 3 WebPages, with valuable content aimed at itspotential audience, which it can use to advertise various affiliate offers about theproducts and services it is promoting

(5) Blogging — This is the most common channel to promote any affiliate offer.

There are several open free blogging platform like Blogger or WordPress which can be

a very fertile land for marketing

(6) YouTube Channel — If a marketing department has series of mini videos

about the product or brand then those marketers can create a Youtube channel topromote and probably try to make such video viral

(7) Other Tools/Models — There are other several other channels most of them

comes under one big platform ‘the social media’, they are definitely Facebook fanpage,Twitter, LinkedIn, Pinterest, Instagram etc Some other could be forums, online reviewboards, free classified ad portals etc

Online marketing has outsold traditional advertising in recent years andcontinues to be a high-growth industry

2.2 About the new product: receiver hub – VTVHD/T2

According to the digitalized scheme for television of the government by 2020,analog TV will be stopped broadcasting and be replaced by digital television based on

DVB-T2 standard DVB-T2 is an abbreviation for "Digital Video Broadcasting – Second Generation Terrestrial"; it is the extension of the television standard DVB-T,issued by the consortium DVB, devised for the broadcast transmission of digitalterrestrial television DVB has been standardized by ETSI This system transmitscompressed digital audio, video, and other data in "physical layer pipes" (PLPs),using OFDM modulation with concatenated channel coding and interleaving Thehigher offered bit rate, with respect to its predecessor DVB-T, makes it a system suitedfor carrying HDTV signals on the terrestrial TV channel (though many broadcastersstill use plain DVB-T for this purpose)