Lack of services providing to airline customers a case study of vietnam airport ground services co ltd tan son nhat branch

UNIVERSITY OF ECONOMICS HO CHI MINH CITYInternational School of Business ---NGUYEN VAN SANG LACK OF SERVICES PROVIDING TO AIRLINE CUSTOMERS: A CASE GROUND SERVICES CO.. The issue of mai

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-NGUYEN VAN SANG

LACK OF SERVICES PROVIDING

TO AIRLINE CUSTOMERS: A CASE

GROUND SERVICES CO LTD TAN SON NHAT BRANCH

-MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City - Year 2020

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-NGUYEN VAN SANG

LACK OF SERVICES PROVIDING

TO AIRLINE CUSTOMERS: A CASE

GROUND SERVICES CO LTD TAN SON NHAT BRANCH

-MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr NGUYEN PHONG NGUYEN

Ho Chi Minh City - Year 2020

First of all, I would like to express my sincere thanks to UEH - International School

of Business for letting me be a part of this incredible journey It is my great pleasure

to come along with dearest lecturers and classmates at ISB

Furthermore, I am deeply indebted to my supervisor, Dr Nguyen Phong Nguyen forhis consistent support and guidance The completion of my thesis would not havebeen possible without the nurturing of Dr Nguyen

Thanks should also go to my lovely former colleagues at VIAGS Tan Son Nhat forproviding me valuable data and advices

Especially, I would like to extend my gratitude to my parents and my aunt for theirunconditional supports and encouragement

TABLE OF CONTENT

ACKNOWLEDGEMENTS 0

TABLE OF CONTENT 1

LIST OF TABLE 2

LIST OF FIGURES 2

EXECUTIVE SUMMARY 1

Chapter 1: Background 2

1.1 Company information 2

1.2 Symptoms 4

1.3 Problem justification 10

1.3.1 Problem definition 10 1.3.2 Justify the existence of the problem16 1.4 The importance of the problem 18

1.5 Potential causes 19

1.6 Causes validation 20

Chapter 2: Alternative solution analysis 22

2.1 Improve and enhance the quality of service: 22

2.2 Training programs for human resources and building rules 23

2.3 Brand communication 24

Chapter 3: Action plan 27

3.1 Action plan 27

3.2 Limitation in Action Plan 32

REFERENCES 34

APPENDIX 1 37

APPENDIX 2 38

APPENDIX 3 41

APPENDIX 4 42

APPENDIX 6 47

APPENDIX 7 49

APPENDIX 8 52

LIST OF TABLE Table 1: Number of passengers going from/to Tan Son Nhat Airport from 2015 to 2019 5

Table 2: SAGS (HCM Branch) business performance ratio from 2017 to 2019 6

Table 3: VIAGS-TSN business performance ratio from 2017 to 2019 7

Table 4: Number of customers of VIAGS-TSN and SAGS in 2018 & 2019 7

LIST OF FIGURES Figure 1: Preliminary cause and effect map of VIAGS-TSN 8

Figure 2: Updated cause and effect map 9

Figure 3: Final cause and effect map of VIAGS-TSN 21

Figure 4: Proposed solution for VIAGS-TSN potential problem 26

EXECUTIVE SUMMARY

Joining Sky team in June 2010 is a good step for Vietnam Airlines when it assertedits brand to the world in the context of globalization today However, according tothat, every activity of passenger service standards has been set and ensured thecompliant commitment of individuals and organizations in the service supply chainfor passengers Vietnam Airport Ground Services Co., Ltd (VIAGS) was requiredfrom the Corporation to provide ground service with the criteria of “Safety -Standards - Quality - Efficiency” The company is committed to providing services

to customers on the basis of a quality safety management system in accordance withInternational Standards ISO 9001:2008, ISAGO standards, and quality agreementsagreed with customers

Although with 25 years of professional experience, the company’s brand isincreasingly diminished VIAGS Tan Son Nhat (VIAGS-TSN) – a branch ofVIAGS is facing low sales and the reduction of customers in recent years when thecustomers of the company were unchanged from 2018 to 2019 while the number ofcustomers in existing competitors were increased There are many given differentproblems It is believed that the potential central problem is related to productquality providing to customers The main cause is poor in planning the materialsupply of VIAGS-TSN This paper will divide into main sectors, includingidentifying existing problems, justifying the central problem, analyzing alternativesolutions, and finally giving implementation of an action plan

Chapter 1: Background

1.1 Company information

VIAGS is the first business model in Vietnam that specializes in providingsynchronous and international standard services at three major airports: Tan SonNhat, Da Nang, and Noi Bai With its precursor as a ground service enterprise with

25 years of experience The Corporation has more than 4,500 skillful staff who areprofessionally-trained from basic to advanced levels The company also inherits anddevelops international qualifications of Safety and Quality Management System(ISO) 9001:2015 and IATA Safety Audit for Ground Operations (ISAGO) granted

by IATA The vision, mission, and core values of VIAGS in generally and TSN in particularly are described as following:

For the community: providing services with high quality for the development of the

society and industry

For the airlines, customers: providing reputable, reliable and effective services For the company members: providing a professional, dynamic and efficient work

environment associated with the member’s responsibilities, rights and interests

CORE VALUES

Credibility: The highest safety index, outstanding quality services, guarantee of the

reliability indicators of our services, sustained improvements of customer credibility

are objectives that VIAGS always tries to maintain and commit to customers andairlines.

Enthusiasm: Job values, professional ethics are always prioritized so that all VIAGS

members are profoundly aware of duties, responsibilities, devoted to work andthoughtful towards customers

Professionalism: VIAGS is the mixture of the consolidation - outstanding

characteristics in the supply chain services of each airport will be selected, inherited

to synchronize towards an overall high-quality service system of VIAGS

Humanity: Human is the center of the development strategies of VIAGS – taking care

of customers by emotions, understanding, and commitments; taking care of staff as avaluable asset to foster, develop, recognize the contributions fairly and humanely

As a subsidiary of VIAGS, the main function is to provide comprehensive groundhandling services in air transport lines at Tan Son Nhat International Airport The mainservice of the company consists of six segments, including station managementservices, passenger and baggage handling services, ramp services, load control andflight operation services, cargo and mail warehouse services and executive aviationservices The biggest strength of VIAGS-TSN is that it possesses skilled and well-trained staff from basic to deep, dedicated, friendly service in specialized service in theground service industry VIAGS-TSN is ultimately meeting the strict standards of theinternational aviation industry, the regulations of airport authorities, specializationaccording to the specific standards of each customer airline Since its establishment,VIAGS-TSN has more than 1,700 employees and more than 600 ground serviceequipment to ensure the service of new-generation aircraft, oversized cargo, andoverburden flight VIAGS-TSN is serving more than 30 airline customers VIAGS-TSN always tries to meet the strict requirements in the ground service of the airlines.However, there is another aspect existing in the process of strengthening thecompany's position It is showed in the SWOT analysis in the Appendix, which

provided a clear insight into the capability of the company From the result, it isevident that there is an inverse ratio between the business operating years and thecompany's sales revenue In recent years, the image of the company gradually fadesaway in the eyes of customers, even a large quantity of customers had consideredchoosing VIAGS-TSN The company wants to satisfy consumer trends of customers

in general terms, not paying attention to unique values than rivals to make up thedifferent feelings from customers Therefore, to create a good sense in thecustomer's mind, it requires the company to create "invisible" wealth, in which theservice is a matter for the company concerned to be able to develop and enhancecompetitiveness competition in the market Indeed, competition among companiestoday is not only on brand, price, but also the competition in terms of productquality and service It is the issue which VIAGS-TSN company is facing when therate of customers is reducing gradually

1.2 Symptoms

The growth of the economy facilitates the development of the air transport industry.The income of the population increased, the development of manufacturingindustries increased the solvency, time requirement becomes necessary, so thedemand for air travel increased The air transport market has been expanding with

an increase of low-cost aviation segment, and it has continued to maintain a highgrowth momentum (forecast that the total number of international visitors increased

by 16.2%, domestic growth by 13.8%, and charter flights by 35.4% over the sameperiod) Although with 25 years of professional experience, VIAGS-TSN has notbeen a popular name of customers in the ground service segment

In the context of expanding international relations, international integration hasadvantages However, at the same time, it creates pressures on the company'sdevelopment It is competition in price as well as service quality to other companiesproviding ground services at the airport It is stated that in the environment of highcompetitive pressure, with the continuous fluctuations of the current macro-economic

conditions, customers are the decisive factor for the existence and development ofcompanies providing services at the airport Each company not only focuses onreaching and attracting new customers in the market, but it is also essential tocoordinate with existing customers in continuing the signing contracts as an essentialstrategy because creating a stable customer base is essential to ensure the business ofthe company to grow The issue of maintaining and increasing the quality of serviceprovided in order to satisfy customers has become a significant trend in the competitionbetween the companies providing ground services at the airport.

The growth rate of the aviation industry through the years through Tan Son Nhat Airport has increased, the service output of the company is also constantly growing Air-ground service is a reciprocal day for aviation operations The growth of aviation operations will create a very favorable operating environment for ground service Therefore, in recent years with the rise of aviation activities in the region, the number of passengers going to/from Tan Son Nhat airport is increasing.

The more development the air-transport market is, the more newly establishedcompanies will be Therefore the competition sharply raises VIAGS-TSN Companyhas not focused on developing internal operations; it is an adverse condition for thecompany when airline customers choose the other brand to be served their demand,namely Saigon Ground Service (SAGS) This shortcoming means the number ofcustomers coming to the company is not much, so to build the trust of customersbecomes more difficult with VIAGS-TSN Company It is shown clearly in thefollowing tables (table 2 and table 3) when the business performance ratio 2018 - 2019

of SAGS (HCM Branch) is higher more 7.5 times than VIAGS-TSN

Table 2: SAGS (HCM Branch) business performance ratio from 2017 to 2019

(Source: SAGS financial statement of the year 2017 to 2019)

The annual growth of two companies in three years is also markedly different.Although in 2017 and 2018, gross sales of SAGS was much lower than that of VIAGSTSN (18.9% and 23.4%), by 2019, this growth shortened very quickly, to only 5.4% Inparticular, the annual growth of VIAGS - TSN plummeted in 2018 and 2019 (1.8times) while the annual growth of SAGS increased sharply (24.5 times) It can be seenthat there were specific weaknesses in the business strategy of VIAGS - TSN

VIAGS TSN Gross Sales Annual Growth

Table 3: VIAGS-TSN business performance ratio from 2017 to 2019

(Source: VIAGS-TSN financial statement of the year 2017 to 2019)

Moreover, VIAGS-TSN Company is facing the reduction of customers as well as lowsales, particularly in terms of quantity in recent years, which influencing negatively tovalue earned per customers as well as the sale revenue of the company In 2019:VIAGS-TSN has no new airline customers SAGS signed three new contracts with AirBusan from Korea, Edelweiss Air from Switzerland, Indigo from India

Based on the SWOT analysis, the financial report above with the responses ofinterviewees in the Appendix, in summary, the symptom leading to the main problem

of VIAGS-TSN is low sales The sales growth shows it was indented reduction ratherthan competitors, the decrease in the number of customers as well as perceive qualitywhen the rate of change from using VIAGS-TSN to other companies is high

Lack of new and

sales with old

Figure 1: Preliminary cause and effect map of VIAGS - TSN

Figure 1 shows the preliminary cause and effect of VIAGS - TSN The revenue ofany company depends on the number of customers using products and services.Customers are always at the receiving end of the services of the company If theyare satisfied with the organization's services, they stay and become loyal, and theorganization benefits in terms of revenues, and so on (Koi-Akrofi et al., 2019).The symptom of VIAGS - TSN currently is low sales, which is due to no newcustomers and no boost more sales with old customers It involved providing services

of the company which has not satisfied with customers, including tangible products(equipment), intangible product (service), price, appearance of competitors, changinglaw and political trends or market situation For VIAGS - TSN company situation and

base on in-depth interviews with Sales and Marketing Manager, Airline customersrepresentative, Operation Team Leader,… There are four potential problems areleading to low sales described in figure 2 below.

Potential central problems

Lack of new and wide range Ramp

equipment: still using old equipment

Lack of services: limited in providing

various services

No newcustomersGround handling charge: high price

Market situation: appearance of

competitors

Figure 2: Updated cause and effect map

Service is one of an important factor in terms of image, feeling, instant messagewhen people think about a company or product" This concept is relatively simple,but it also covers almost all elements of the brand definition It is believed thatservice is used to distinguish between different companies The signs can be words,images, a combination of factors reflecting by the color" Thus, the serviceconfirmed the seller or manufacturer.

Service is also the commitment of the seller to ensure supplying to consumers ofproducts characterized by the company in terms of the characteristics, benefits, andservices World Intellectual Property Organization (WIPO) affirmed that "service is

an intangible sign to identify a particular individual or organization " Therefore, thebrand is used to help customers distinguish the goods or services of the companywith the same products as competitors

Service today has become one of the most important factors for success in business.Although business is the production of goods; we are working for a large corporation or

as merely operating a small company, the service is always considered as the firstfactor governing the success or failure of the company For that reason, success inservice is successful in business Moreover, the main objective of service

development is to make the product or company becoming a unique differencecompared to the other competitors Service is the process of selecting andcombining the attributes of tangible and intangible to differentiate products, services

in interesting, meaningful, and attractive ways

To understand more operation which leads to the potential central problem, there is

an analyze of the microenvironment in VIAGS-TSN:

a Customer

The enterprise has two categorized customers: different airlines use the service ofthe enterprise, and the passengers on the plane use the service provided directly bythe enterprise The company always aims to satisfy customers' needs continuouslythrough the signing of quality standard commitments in providing services betweenenterprises and airlines Currently, 38 airlines are using the services of theenterprise; other partners are being promoted and negotiated

On the other hand, the travel demand of passengers on the plane has changed a lot, so

to meet the requirements of serving customers on the plane, the airline is constantlylaunching new products to serve passengers In addition, the way of organizing thebusiness of the airline has also changed significantly, the establishment of the airlinealliance now proves its strengths for the members of the association and Significantadvantages for Airline operators in the market This combination is not only shown inflight operations but also gradually expanded on the combination with travel agencies,other types of passenger transport, from which customer requirements for Enterprisesalso become diverse and constantly changing

The airline's operations are in addition to the strength of traditional airlines, servingordinary passengers, which is the growth and expansion of low-cost airlines withcost savings At the highest level for both operating costs and passenger servicecosts, this will be a significant pressure for the enterprise to capture market shareand build strategic direction

b Supplier

Supplier of the Enterprise includes units in the transfer line of Vietnam AirlinesCorporation, such as Tan Son Nhat Cargo Service Company, Southern RegionalOffice, Aviation Printing Company, Import Export Company AIRIMEX, The FlightControl Center, Flight Training Center, market service board, cargo board are thefocal points to provide products to provide for the flight These are the units thatgreatly affect the quality of service delivery to customers The products providedhave stability in quality and time, and complaints from customers are takenseriously and timely by suppliers

Network equipment, transmission system, terminal equipment, operating ground,office system provided by the Southern Airport Group, this is the only unitsupplying technical and comfort factors in serving other passengers The customerrequirements and the disadvantages in operating the terminal depend entirely on thesupplier of the above equipment, which greatly affects the ability to operate andserve customers, these issues are not solved and handled quickly

Software programs to carry out passenger procedures hired by the Corporation fromforeign partners, other control software of Airlines are always upgraded andadjusted to create incompatibilities and problems about the program The software

is slow to be processed, so it often makes it to be difficult for the passenger service

responsibility to manage, develop infrastructure of Tan Son Nhat airport Thefoundation of SAGS was related to lacking management and development to takethe amount of difficulty for VIAGS-TSN It is inadequacies between managementand operation, between service forces and airlines who are receiving serviceprovided incompletely.

The competitor is fully capable of providing the type of services that VIAGS-TSN

is providing Besides that, as a new unit, the competitor is in the progress oforganizing system, compact organizational model, so the system is manageable; anyraised issues can be handled fast and right objects Moreover, the framework ofSAGS is derived from VIAGS, so there are many experiences that SAGS can avoidencountering weaknesses as well as create a new style in customer service

SAGS focuses on investing in equipment, timely handling technical problems aswell as unleashing all of its capabilities to serve existing customers to make a betterimpression on potential customers

d New potential opponents

More and more aviation companies have the potential; they will set up a groundservice unit for genuine

The opening of skies and aviation operations will allow many new organizations toenter the market, which is a significant challenge for the operation of the enterprise.The development of travel companies with large numbers of passengers will be able

to introduce new airlines to join the operation The new aviation operation will bethe next step to form face companies Other lands to serve that airline, and continue

to compete for ground service market share

e Substitutes

Currently, along with the outstanding development of technology, some stages inthe service of the ground can be replaced, such as a self-check-in system, aviationprocedures on the Internet, base on the payload At the main center, not applicable

for check-in, these activities will replace services such as passenger service, payloadbalancing, or aircraft will enter the cage without using stair cars Check-in programfor multi-user who do not use the check-in service at the transit point anymore, orthe flight does not provide meals, so do not use the aircraft cleaning service In theprogressive trend of the aviation industry and intending to reduce costs, the fact thatairlines are coming to use information technology utilities instead of hiring services

is exerting pressure competition has a substantial impact on enterprises

Along with the requirement of improving the management capacity, the enterprisehas built a quality management system according to ISO 9001: 2000, now theenterprise is a focal point with the Vietnam Airlines Corporation IATA IOSAquality safety certification In order to improve the capacity of officials andemployees in the enterprise, the errors, defects of the system, and the operationalweaknesses of the system are seriously considered and remedied by the units.Prevention and implementation activities are well proven

The enterprise was officially recognized as a member of IGHC in April 2006, facingthe need to improve service quality, the enterprise actively implemented ameasurement program for the implementation of service delivery standardsaccording to IATA's AHM804, implementing the AHM600 which relates to safetyin-ground service operations

The enterprise has made substantial investments in management and administrationactivities, production and business activities and departments organized according tospecific operations without overlapping and intertwining Besides, the activities of

the direct units are also monitored and assessed through regular operating activities.

A series of measures to better meet the needs of customers have been applied, such

as providing free services to disabled customers, keeping carpets for class Ccustomers, providing services for business customers all in one

In the context of fast-growing service operations at Tan Son Nhat airport, theleadership has made strong moves, such as establishing teams to serve customers,deploying the use of airline uniforms The service area for that airline, making agood impression on passengers on the plane and creating a more friendly feelingamong the parts of the service line

Currently, the enterprise has many information control software programs for flightand other prevalent activities The internal information system is built and usedeffectively The reporting mechanism is specific and clear In its efforts, theenterprise has successfully designed the quality control system's document controlprogram, which reduces the volume of bulky documents and is a great way toconvey information

Enterprises are constantly focused on reviewing the level of quality provided tocustomers through maintaining the program of consulting customers on servicequality periodically every six months, often meeting with representatives of airlinesnot to consider issues that arise, discuss ways to correct the deficiencies of servicedelivery

The enterprise also inherits products from the feedback channel within the VietnamAirlines Corporation, which is very useful information to improve service qualityand seek opportunities for improvement

With the exception of some low-value general-purpose items purchased from localcontractors, most supplies, parts, and equipment are purchased from overseas withqualified products IATA organization technical standards Therefore most of thesematerials meet the industry's mining standards However, due to the import (due to

the fact that there is no facility in the country with all the required certifications),the long order time results in a large number of spare supplies (due to the expectedrepair of damaged arises in time equipment into exploitation) On the other hand,the equipment structure of the enterprise has many types and many origins, so eachmaterial and equipment must be ordered according to each correspondingmanufacturer but cannot choose other alternatives.

On the other hand, some equipment and services are hired by other agencies Thequality is not commensurate with the service line of the factory, affecting thecapacity of the enterprise

To be able to concentrate resources well for the implementation of the strategy, theenterprise should only select 1 or 2 foreign contractors to provide equipment andsupplies in order to reduce the number of equipment origin and reduce reservesupplies and reduce order time and costs

1.3.2 Justify the existence of the problem

There is a lack of literature review in terms of undeveloped service performance Itonly mentions about different factors which retaining and developing the service ormistakes in service extension In the fiercely competitive environment today,individuals, companies, or organizations must build themselves based on theservice According to Gabbott, M., and Hogg, G (1998), there are some mistakeswhich companies easily to make in developing the service, including paralleling thebranding with communications, packages of provided service, commitment changes,promising too much or mimic stereotyped service Or the company might be doingnot focus on factors retaining and developing the brand in terms of products andservices, employees and board of managers in the company, customers, building thecompany's culture (Blackwell et al., 2001)

As guided in "Qualitative methods in organizational research a practical guide" byKing (1994), interviews in qualitative methods with customers and especially, keypersonnel of the company were conducted to identify the symptoms leading to the

possible problems Questions from the interviews were open, objective, and focused

on revealing interviewees' perceptions and their way of describing their feelingabout the company in terms of branding From the result of the survey, employees

in VIAGS-TSN mentioned that "the company is lack of services, they are workingwith old ramp equipment." Customers who used the company's service stated that

"they also referenced the service of the company again after taking the firstexperience However, there was nothing new" Almost of interviewees do not have

a strong impression in VIAGS-TSN

Besides that, a discussion with managers in different departments and customerswas conducted to interview their perception of company operation The transcript isshown in the Appendix Based on the perspective of the board manager, problemsare identified through symptoms as follows:

(1) The activities ticket office and passenger transport of the company have notbeen focused, poor service VIAGS-TSN, when signing a contract with the airlinecarrier, must sub-contract with SRO (Southern Region Office of Vietnam Airlines)

to perform ticketing service and SASCO (Southern Airports Services Joint StockCompany) to perform passenger transport services

(2) The company has not built up a system of new and wide-range rampequipment VIAGS-TSN has difficulty in investing in ground equipment, so theequipment is very old or damaged It makes it difficult for the company to attractcustomers when observing; they will prefer new equipment, mobility, and excellentservice, such as SAGS company equipment

(3) Such several employees in the company affirmed that price is the only elementinfluencing to revenue of the company, while others think the price is characteristic ofthe company goods In this case, the base price of VIAGS-TSN is generally higher thanSAGS, which is why airlines choose SAGS over VIAGS-TSN

Problems are described by market share of Ground Handling Services in Tan Son Nhat Airport in 2019 as following:

Company Flag Carrier Low-Cost Cargo Total Market

Carrier Carrier Share

Total 33 15 29 77 100%

Table 5: Market share of Ground Handling Services in Tan Son Nhat (2019)

1.4 The importance of the problem

The quality of service at the airport depends on many factors such as equipment,staff qualifications, customer perception, service attitude of staff, objective factorssuch as airport geographic location, weather, climate, and traffic Therefore, todetermine the quality of the service performance requires a comprehensive analysis

of the factors’ relationship

The success of an organization is seen by sales results which are based strongly ondifferent factors such as service scope, price strategy as well as the involvement ofmarket situation In the internal factor matrix (Appendix 4), the result shows that thetotal score achieved is 3.19 above the average (2.5), which means that the internalfactors of VIAGS-TSN are quite good, but some of which have not beenimplemented well causing to disadvantage for the Company, in particular equipmentstatus, unpacked service, workforce and management team It is shown that lowsales performance is decided respectively by the adverse consequences in terms ofservice scope, price strategy, and involvement of market situation Indeed, althoughthere is a good plan, the low performance can not meet the requirement of providingservice, changes in the market, or competitive price strategy, then it still leads to alower financial turnover

1.5 Potential causes

According to the analysis about internal operation issue combining with theinformation from interviews with board of managers and employees in VIAGS-TSNCompany, it would be stated that three potential causes are leading to the centralproblems including:

(1) Internal operation policy: identifying customers at any stage of the internaloperating model to receive communications directed to the next stage Here, thecompany did well in classified target customers, however VIAGS-TSN encounterproblems in poor service, in terms of lack of equipment, sub-contract with otherCompanies in providing service to customers Although the company has been usingdifferent communication tools, it still does not enough to gain a considerable quantity

of customers The reason comes from the process of developing internal operations Incontrast, VIAGS-TSN was sleeping on victory when they won a certain amount ofcustomers in previous years, and they did not continuously focus on the strategy ofinternal operation development to provide better products and services to customers.(2) The policy of service development:

In terms of the system on service development, the company is facing difficult items

in terms of product policy Product is the most important factor in shaping the brandvalue in the customer's mind Enterprises are unable to make decisions that developproducts and services related to the design of the product benefits provided throughthe characteristics of the product, such as quality, quantity, and design for clients'behaviors and attitudes towards the brand in a positive direction (Shep Hyken,2011) The products of VIAGS-TSN have been the same as the initial, and thecompany has not been having any plan for improving the quality of products duringthe operating business

(3) Price policy: By analyzing the characteristics of service competitors, thecompany has an advantage in terms of VIAGS-TSN distribution, but the price has not

been VIAGS-TSN appreciation of the level of awareness compared to other brands.Specifically, VIAGS-TSN has been still giving a higher price in-ground service market.According to Huong, NTT – a strategic analyst, the company bases on the prestigebrand before setting the price policy, not much focus on the market situation.

1.6 Causes validation

In the aviation ground service market, the competition between companies isgrowing stronger, especially in image-building The company with strongdevelopment of service in the market, such as SIAGS, has been continuously doingproduct innovation, brand building The company identifies more clearly than others

in the overall image of the ground service area Meanwhile, although the number ofaviation companies has made great efforts in recent years, VIAGS-TSN does notfocus on service development Strategy for VIAGS-TSN development until 2020,Vision 2030 identified aviation development point to assert the brand andcompetitiveness; set the task of building and deploying Development Strategy forVIAGS-TSN brand by 2020, considered as one of the important measures toimprove the quality, efficiency, professionalism, competitiveness This viewcontinues to be affirmed and developed an in-ground service marketing strategy to

2020 However, the activities related to the development of the VIAGS-TSN brandover time have not agreed on the direction, messages, content, and theme In apractical deployment process, it also revealed many shortcomings, namely:

Regarding the development of branded products and regional, local brands

Strategy and planning for VIAGS-TSN development until 2020, Vision 2030 hasidentified with ground service distinctive VIAGS-TSN development planning foreach aspect is also being developed and deployed

In the market situation

The promotion activity, brand communication has been organized in various forms,such as participation, organization of aviation ground service fairs and large events;

invited the business delegation traveling and foreign press to investigate and report

on aviation market; organization launched programs in international markets;broadcast on popular TV channels; Communication through the Internet and socialnetworking However, due to the orientation of the brand has not agreed to thecontents of the message is not shown, and core values 2014, the company has madeefforts to build suitable price policies based on the current market situation forpromotional activities; brand communication is unified, synchronized over thecontent This is an important document orientation, should continue to improve andmore widely available to the stakeholders in the tourism industry

Regarding corporate brand development

Currently, several aviation operators have branded an international reputation Tosupport the business development of the brand, the VIAG TSN in collaboration withdifferent organizations voted and awarded organizations, individuals business andservice establishments serving individual and business customers in the areas, such as aticket, package, tourist accommodation; transporting tourists; restaurants servingtourists; shopping establishments serving customers; entertainment services…

Chosen potential central

and service providing

to customers

Figure 3: Final cause and effect map of VIAGS-TSN

Chapter 2: Alternative solution analysis

2.1 Improve and enhance the quality of service:

Product quality is the first criterion to evaluate any enterprise when entering abusiness, especially in the aviation business Building high product quality is thekey to achieve the success of a company Besides that, high product quality is asolid fundamental of a famous brand “Improve and enhance the quality of service”

is a way to make up the difference The current product program of VIAGS-TSNgenerally meets quite well to the target customers However, the company shouldperform the following tasks in the next period:

 Ensuring to renew and improve the quality of ground service

 Selection of reputable suppliers and quality: The company must re-arrangechoices among enterprises supplying services to find out which one ownsbetter service quality, choose the quality vendor to sign a contract, then tocoordinate and check the services of these companies strictly The contractmust come up with the requirements for their quality Furthermore, it mustregularly monitor how the service provider, if the provider is not goodcustomer service, quality of service is poor and reflects more the companyshould consider whether to continue to take visitors to that or not or switch toanother provider To know the quality of external suppliers based oncustomer complaining, companies should listen to the opinions of the staff,especially the guides

 Commit to quality and implement follow-up

The committed targets in the table usually focus on the working steps of theservice provision process of the ground service company, specifically as follows:waiting time in queue, check-in time, opening hours, support staff, waiting roomstaff, pick-up staff, baggage handling, aircraft cleaning, etc…

2.2 Training programs for human resources and building rules

In the business operation in terms of tourism as well as any business activities,workforce always plays an important role to decide the success of that company,especially in the aviation industry, human resources not only create the product butalso as a part of its There are some solution proposals for the company in term ofemployees factor, such as:

 Regularly check and monitor the process of the customer service staff todiscover the presence is limited to remind employees Simultaneously withthe control and supervision of this company can see the limitations of thecompetence of the staff, which organizes training sessions or sent abroad fortraining About training funds, the company may deduct from the profits ofthe company

 Organizing training sessions in skills for living and helping employeesunderstand their role in improving the quality of services and provide themwith a professional working style, passion for the job In addition, themarket's target customers of companies increasingly tend to go overseastours, so it is essential for the company must also have training sessions toimprove the language skills of employees Besides that, VIAGS-TSN fostersand enhances knowledge on policies and measures to build and develop abrand for the staff who are responsible for this activity, so that they can build

a brand strategy in line with specific conditions of the company

 Implementing a quick survey of the company’s image through consultingemployees or recruit It will help employees to be more engaged and aware

of the importance of building a strong brand and calculating return oninvestment possibilities for constructing and developing personnel

 In addition, the market research division of the company must regularly monitorcustomer profiles and customer classification with purposes: The first isunderstanding the needs of customers in the future; secondly, when a new

product, the company will be based on the customer profile to sending theminformation on new products; thirdly, the company will send email orgreeting cards to customers to celebrate their celebration; fourthly, with loyalcustomers, we will have reasonable policies such as discounts, promotionalservices, holiday gifts.

2.3 Brand communication

A brand will not be developed if it is not propagandized and advertised (Aaker,

1991) Through brand propaganda, consumers have opportunities to aware of thebrand and then go to accept and to be fond of the brand Therefore, advertisementplays a vital role in brand development To promote effective advertisement,VIAGS-TSN needs to focus on the following items: building a suitableadvertisement policy with each market and each period of the product life cycle Inthe strategy of brand development and business process, the company focuses onbrand positioning to be corresponding with each market segment and each customercategory Hence, when implementing an advertisement for an image, it is essential

to have a specific strategy With the advertisement policy, the company mustindicate the goals needed to propagate, the effect will be achieved, and the specificroute of the promotional period with the corresponding company’s finance

 Brand communication through the website: Brand advertisement through thewebsite is the advertising form with low cost, but its effectiveness is high Inorder to develop a brand policy on the website, the company needs tounderstand “difference” and “similar” in building a brand on the website andtraditional methods The difference is performed when doing business on theInternet, and various factors impact building a brand Business opportunitiesappear immediately However, the company has to meet those demands ofcustomers because there are always available competitors to be ready to dothe same thing