NATIONAL ECONOMICS UNIVERSITY

BTEC HND IN BUSINESS AND MANAGEMENT

Assignment Cover Sheet

NAME OF STUDENT
REGISTRATION NO.
UNIT TITLE
ASSIGNMENT TITLE
ASSIGNMENT NO
NAME OF ASSESSOR
SUBMISSION DEADLINE

Nguyen Thu Ha
10130076
Principles of Marketing
Individual Assignment
Assignment 1 of 3
Dr. H Ch Dng
Ms. inh Vn Oanh
10.00am, Wednesday, 8th October 2014

I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized
from any source. I have referenced the sources from which information is obtained by me for this assignment.

_____________________________

Signature

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Date

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FOR OFFICIAL USE

ASSIGNMENT GRADE

Unit outcomes
Evidence for the
criteria

Outcome

Understand the
concept and
process of
marketing
(1)

Assessors
decision

Feedback

Explain the
various elements
of the marketing
process

1.1

Evaluate the
benefits and costs
of a marketing
orientation for a
selected
organization

1.2

Merit grades awarded

Distinction grades awarded

M1

M2

M3

D1

D2

D3

Internal
Verificati
on

Professors additional feedback and comments

Overall Comments By Assessor

Assignment
( ) Well-structured
Reference is done properly / should be done (if any)

Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE

DATE

NAME:.......................................................................................

(Oral feedback was also provided)

STUDENT SIGNATURE

DATE

NAME :......................................................................................
FOR INTERNAL USE ONLY

VERIFIED

YES

DATE

NO
4

VERIFIED BY : .........................................................................
NAME

: .........................................................................

Contents
NATIONAL ECONOMICS UNIVERSITY................................................................................1
BTEC HND IN BUSINESS AND MANAGEMENT.....................................................................1
MAIN FINDINGS.............................................................................................................. 7
A.

Identify the numerous elements of the marketing process applied on Vietravel business company.
7
Executive summary.......................................................................................................... 7
1.

Market segmentation................................................................................................. 8

2.

Marketing audit....................................................................................................... 9

3.

Environmental scanning........................................................................................... 12

4.

Strategy formulation............................................................................................... 15

5.

Marketing planning and strategy...............................................................................17

6.

Marketing strategy.................................................................................................. 18

7.

The marketing plan................................................................................................. 19

B.

Calculate the benefits and costs of being marketing-oriented for Vietravel business company....21
1.

Benefits................................................................................................................. 22

2.

Costs.................................................................................................................... 22

REFERENCE.................................................................................................................. 24

MAIN FINDINGS
A. Identify the numerous elements of the marketing process applied on Vietravel
business company.
Executive summary
Marketing is becoming an increasingly important field that have to be well-thought-out by any
business if they want to survive in competitive markets of any areas. However, marketing is not
only about selling products or making a sale but to understand customers needs and wants then
satisfy them. It must be a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others (P.
Kotler).
There are various elements included in a marketing process: market segmentation, marketing audit,
environmental scanning, strategy formulation, marketing planning and strategy, marketing strategy,
and the marketing plan.
In this research, I will take an inside look into Vietravels marketing process (Vietravel is a
company working on tourism field). After that, I will analyse and assess each step of the companys
marketing process then propose some solutions to improve its planning and strategy.

Marketing audit

Market segmentation

Environmental scanning

The marketing plan

Strategy formulation

Marketing strategy

Marketing planning and strategy

1. Market segmentation
As for any company, during forming period, it has to identify whichsubdivision of the market that it
will focus on. There are three reasons why entrepreneurs need to find the best segments to invest in.
First, it is because of the huge needs in the market that no business can meet them all. Second, each
person has a different need up to their taste, living style, genders, ages, incomeand only by
dividing them into separated categories that firms can work it out. Third, once the company classify
the needs, it can easily focus its resources and use them effectively.
Similarly, Vietravels products and services are devided into three groups of activities, purposes and
other services system (air service, money-exchanged service, transportation service)
In the classification of activities, it contains outbound, domestic and inbound tour for foreigners
traveling abroad, Vietnamese within the country and foreigners living in Vietnam.

In the classification of purpose, Vietravel organizes MICE tour and Team-building tour for tourists.
Also, many other kinds of tours are available such as ethnic tour, health tour, explore tour and
transit tour according to the website www.vietravel.com.vn
Whats more, Vietravel has its branches and head offices classified by geography so as to have
proper ways of managing in different regions and religions.

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2. Marketing audit
It is vital that all business take marketing audit step into consideration. Since this provide
companies with information and figures about themselves, it can help set up some goals and vision
for them in the future. As cited on a website about marketing Johnson Direct, marketing audit has
5 reasons to be so important, two of which are that it helps the firm understand its products and
services more clearly, and that it is a constant reminder of the firms mission.
In this case, Vietravel has to understand itself, including inside condition and its own products as
well as services.
Acknowledged of the internal environment
Founded by Mr. Nguyen Quoc Ky in December, 1995, Vietravel now is the most popular tourism
company for guests all over the country.
8

The company started with 10 billions VND but after five years it reached 55 billions; and only 10
years after that, the sales multiplied by nearly 27 times and it seemed to have no intention to stop.
In 2013, Vietravel attracted about 480,000 tourists to go on international tours and earned hefty
3,062 billions VND.

Vietravel's sales figures (Billions VND)

3500
3062
3000

2500
2500

2000
2000

1480

1500

1000

500

370

10

55

0
1995

2000

2005

2010

2011

2012

2013

According to Vietravel Marketing and Media Departments Deputy Chairman, Nguyen Minh Man,
the companys objective was to have one million customers in 2020 and to be listed in the top 10
tourism companies in Asia.
9

The company is on its way to expand the business and last months, Vietravel carried out various
campaigns to satisfy its customers, specifically Hello Summer 2014 and Charming Fall 2014.

10

Product Review

O
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S
//
It is easy to see from the hierarchy that Vietravels products range from Outbound tours, Domestic
tours, Inbound tours to other types of products.
Realizing customers need, the company offered numerous types of tours with different purposes.
There are tours for sight-seeing, ecological tours Vietravel even organized tours for couples.
These kinds of services are all the same in package outbound, domestic and inbound tours.
However, a little difference is that, according to each tours function, Vietravel has a different plan
11

to satisfy domestic tourists, outbound and inbound tourists. For instance, after analysing the market
and figuring out the demand for American tours is increasing to 400 visitors per month, Vietravel
has immediately added 100 slots this November, 2014 to meet the market demand especially on
28/11, Americans Black Friday.

3. Environmental scanning
The third element which is indispensable for a marketing process is environmental scanning.
According to theMarketing Principles Course Book, this part means keeping ones eyes and ears
open to what is going on generally in the market place, which will require the company to keep
track of the competitors status as well as other external factors.
Market Description
Thanks to the Open Door Policy and Vietnamese governments tourism encouragement by
cooperating with ASEAN countries, many tourism companies in Vietnam, especially Vietravel now
has the chance to develop and extend.
According to the Vietnam Tourism Associations deputy chairman, Mr. Vu The Binh, in the past six
years, the number of Vietnamese people traveling abroad increased 20% each year; and Vietnam
has become the source markets of the tourism industry of many countries, this man said.
In Mr. Binh research, he also revealed that the most destination for Vietnamese tourists was China,
with 1.1 million people. Then, 110,000 tourists traveled to South Korea, not to mention the ones
who went to the United States and European countries.

Numbers of tourists used outbound tours each year (thoundsands)

1,200,000 1,100,000
1,000,000

1,000,000

800,000
500,000

600,000

300,000

400,000
200,000

200,000

110,000

0
China

Cambodia Thailand Singapore Malaysia South Korea

12

The situation increased the demand of outbound tours among Vietnamese people. Aware of this,
Vietravel has worked on this field and on September 11th 2013, the company was awarded the Best
outbound travel operator of the year for Vietnam for the fifth times in a row in Mekong Tourism
Alliance Awards 2013 event. The success reason was because Vietravel had met the criteria of:
new and multiform tours, many options for tourists, customer services of good quality yet
everything was at a reasonable price. In terms of customer services, Vietravel achieved it through:
customers trust, press interest, awards and sustainable development along with practical activities.
Competive Review
Indeed, knowing the competitors to details is important. In a competitive world where a little
difference can distinguish a product from another, yet there are too many companies offering the
same products or services as yours understanding your competitors profoundly can help you come
up with specific marketing plans.
In this case, Vietravel has taken into consider some big competitors such as Saigontourist and Asia
Lotus Travel.
Saigontourist :
Estabished in 1975, Saigontourist Travel Service Company has made its mark of being the pioneer
in tourism market. Nowadays, its outbound tours even offer visitors to Cuba, Argentina, South
Africa, Belgium, Holand, Austria, Spain, Itali, Russia, Malta with the maximum insurance level
of 2,1 billions VND per customer for one trip.
Furthermore, Saigontourists advantages were that it owned lots of restaurants and was the first one
to enter the tourism market so it had more support and got a better place in the market. Besides,
Saigontourist invested in many fields: hoteling, restaurants, transportation, rent offices, export and
import, food processing, which can be a great source of finance to mobilize when necessary.
Also, one more thing that is so special about Saigontourists ways of marketing is that, it has many
delivery channel both offline and online, especially in different languages for online services
promotion. The websites being under control are:
http://www.etravelvietnam.com (English);
http://www.saigontourist.de (German)
http://www.saigontourist.jp/ (Japan)
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http://russian.saigontourist.net/ (Russia)
http://www.saigontourist.net/espanol (Spanish)
Whats more, the company even managed to operate seasonal websites for people in Vietnam over
periods of the year:
www.dulichhe.com (Summer);
www.dulichthu-dong.com (Autumn Winter)
Asia Lotus Travel:
Asia Lotus Travel is a tourism company which does not only organize tours for individuals and
groups of people but also have training classes for tourism. In addition, it owned a handicraft
business and traded bonsai for business.
Overall, each company has its own ways of operating and promoting the products. Although
Vietravel does not have numerous websites in different languages but it has many other advantages
which will be analyse as strengths and opportunities.

14

4. Strategy formulation
When doing marketing, firms should not overlook Strategy formulation. This is the course whereby
sequences of action are selected to serve certain purpose. Moreover, strategy formulation is
necessary if the company wants to have an action framework to base on.
In this stage, the company will have to assess all its strengths, weakness, opportunities and threats
to come up with the best direction to go.
Strengths
First of all, being a part of Ministry of Transport brings Vietravel the advantage of transportation. If
Saigontourist Travel Service company owns many restaurants and stores, which can support the
tourism business then Vietravels transportation advantage is a stepping stone. Second, Vietravel
doesnt have to worry as its suppliers number is stable.
Whats more, having founded in 1995, Vietravel has formed its reputation and gained market shares
as well as building good relationships with the natives and local authorities. The company has many
branches not only in Hanoi but other provinces: Hue, Da Nang, Quy Nhon, Nha Trang, Can Tho
Also, its staffs are of good quality and are sent overboard for training quite often. Many experts are
also invited to teach employees and exchange experience. Being members of well-known
associations about tourism such as Japan Association of Travel Agents (JATA-NET), Pacific Asia
Travel Association (PATA),etc is also a great advantage of Vietravel.
Weaknesses
Beside strengths, there are still some drawbacks in the way the company promote its products.
Indeed, as mentioned above, while the big competitor Saigontourist has many websites for
foreigners from different nations to visit and have a quick reference, Vietravel hasnt focused on
designing these online websites to provide information. It only has two main websites in
Vietnamese and English, yet the vision, mission and core value of the company are still not
available.
Opportunities
Ever since Vietnam joined WTO, the countrys economy has changed from dominant planning
system to marketing orientation. There are many fields has been invested in, especially in tourism
and services.
15

Besides, now the standard living in Vietnam has been improved step by step, from 1960 to 1995,
the numbers of Vietnamese rised from 30,172 million to 73,959 million people according to
Vietnams Population, Population Distribution and Labor Issues. This can be an opportunity to
increase the demand in the market.
Moreover, there are many attractive and historical places in Vietnam are not yet to be explored.
Threats
Although there are lots of opportunities for Vietravel, it has to face up with some threats from
external environment. Specifically a large number of firms were making efforts to join the tourism
market. In Hanoi, there were 191 companies let alone in other provinces.
Another threat not only for Vietravel but for Vietnamese tourism as a whole is that, as cited in an
online newspaper Thanhnien NEWS: Most customers want to participate in making handicraft
products. They want to know about the production process, the villages' customs and culture. But
the villages do not provide them that information () At the villages, tourists can only visit
showrooms. So their tours are often boring, and they do not want to return. This means we have to
develop the handcraft in trade villages such as textile trade if we want to attract more foreign
visitors.
In order to understand more about Vietravels ability, I put all the information above on an
analysing table. Then, I will find out the best solution or suggest some ways for it to reinforce the
strengths and to solve the problems.
Strengths
S1: Transportation
Weaknesses
S.W.O.T analysis

- Stable suppliers
- Lack of websites

and suggestion

- Good relationships
- Qualified staff
- Member of associations
16

SO
Opportunities
- Making alliance with
- Join WTO
- High living standard
- Unspoilt sites

government and local areas to

open more tourism sites
- Expanding business size in
other countries

Threats

- Taking advantage of
relationships between WTOs
members and create
multilingual webs for
foreigners

ST

WT

- Sticking to what the

- Organising provisional

company is best at

campaigns for products

- Increased number of
competitors

WO

promotion
- Learning from competitors
mistakes and strategy

- Destinations poor condition

- Ordering tourists interesting

sites meanwhile raising the

- Offering local residents to

living standard of the visited

improve their living areas

places

17

5. Marketing planning and strategy

Another step that is also important when making a marketing process is defining the companys
objectives, then allocating the main issues which have to do with the objectives, after that setting
some goals to achieve.
There are two main objectives in Vietravels strategy: the young (18 to 30 years old) and those who
are medium-aged.
One of the very reasons why Vietravel focuses on these kinds of customers is the new generations
increasing demand to explore new places, to experience, and to prove themselves. However, as the
elder ones have other needs such as enjoying life, increasing their mentality Vietravel company
set out some targets (which is the way they take advantage of the customer market).
Moreover, the levels of income of Vietnamese also affect the business sales. A website providing
necessary information about tours in Vietnam (Food & Hotel Online) has pointed out that
customers choice of tours depended very much on their income. For instance, tourists who had
monthly income of less than $1,000 to $2,000 tended to choose leisure tours, or cultural ones.
Nevertheless, those who had high income (above $5,000), in contradiction, more favored ecological
tourism and resort tourism.
In future, Vietravel also plans to improve its products and services by creating diversified types of
tours for a new group of people: special tourism resort for people from 55 to 65 years old.

6. Marketing strategy
There is one big question that many entrepreneurs come across during setting up the business:
How to satisfy customers with your products?. Thus, marketing strategy is needed to achieve this.
Vietravel chose the product development strategy by continuously promoting its traveling tours in
the existing market. It is clear to see that last summer, Vietravel increased the number of
destinations to attract customers such as: Nha Trang Da Lat Cu Lan Village or Nha Trang Hon
Mun I-resort Hot spring and received many positive feedbacks in return. Whats more, this fall,
the company is planning to release a brand new set of tours, for example, slow tours for the elderly,
Fall theme tours, and Honeymoon tours.
18

Also, Vietravel has put the companys priority on its customers, which is its focus strategy.
The firm believes that the target of the company should be its sustainable development as well as
customers, staff and community.
To attain this Vietravel focuses on improving the quality of the products on one hand but not doing
any harm to the society and the environment on the other hand.

S
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Vietravels business philosophy:

-

Company Focus philosophy: aiming maintainable development.

Customer Focus philosophy: providing best products and services to meet the market

demand while keeping adding value on the products by fascinating experiences.

Staff Focus philosophy: training employees so that they have enough job skills, knowledge

to work together, to boost the firms sales.

Society Focus philosophy: harmonizing the companys profits and societys. The companys
products should be environmental friendly and suitable to the habitat, also in good
relationship with the local residents.

7. The marketing plan

If a marketing strategy answers for the question of what the goals are all about, which is mostly
understood as a description of the business objectives then a marketing plan is the action
program, how the company achieve its goals.
19

So as to realize the marketing plan in the most efficient way, Vietravel has applied the marketing
mix of 4Ps: Product, Price, Place, and Promotion to the business itself.
Products
In order to obtain what it has set out for, Vietravel need to improve its products and services. In fact,
it opened a Ticket & Hotel Centre since the beginning of September, 2014. The centre provides
ticket services and offers Free & Easy diversified tours.
Free & Easy is a tour package including the most basic services such as booking tickets, hotel
rooms and picking up tourists in the airport. Customers do not need to worry about anything,
instead, they will have more time to hang out, do what they want. In fact, Vietravel has finished
creating the first three kinds of package tours, which are Inbound tours, Luxury Honeymoon and
Photo wedding tour.
Price
Understanding customers psychology and behaviour, Vietravel also used sales promotion technique
to attract new customers.
In a specific case of Vietravels Free & Easy tour, since that was the first time it came into effect,
the company has some special treatment for those using the companys products at the very first
time, such as:
-

20 gifts for the first 20 tourists use Luxury Honeymoon and Photo wedding tour.
100% ticket discount along with 100 handbags for the earliest ones.

Place
The company success requires very much the involvement of right place. Take an inside look at The
Ticket & Hotel Centre venue and we will understand why the contribution of place is so important
when doing marketing. Indeed, the centre was opened since the beginning of September, at number
02 Tran Thanh Tong street/ Hai Ba Trung district. This is an advantageous place for the company to
realize its target because it is more easy to draw peoples attention there.
Promotion
Vietravel also used different channels of distribution to propagate their new services. People can
come across the business product introduction both online and offline. In terms of online
20

marketing, Vietravel used HTV channel to promote their images in the audiences eyes. Besides, it
also used offline marketing methods such as hung posters and flyers.

(Vietravels new product flyers)

B. Calculate the benefits and costs of being marketing-oriented for Vietravel

business company.
It can be seen that marketing orientation is the main marketing method of Vietravel. The companys
aim was to fulfill its customers needs and wants and by doing this, the business had to actually care
about its customers, knowing all the information about them. Nevertheless, marketing-oriented
approach does have some costs as well as many benefits.

1. Benefits
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Since Vietravel can get hold of the information before launching a new product, the products are
often competent as they are out on the market for the sake of customers. For example, when
realizing the needs for traveling among the ages of 18 and 30, Vietravel can make it easier to design
suitable tours to satisfy them.
As a consequence, more customers will be attracted. When the target customers realize that they are
cared about and they know that theres a service company offering them such kind of product they
will go for it whenever they have the need; they will call for Vietravel services again and again,
even booking expensive tour. Thus, the sales of Vietravel will increase.
Likewise, when knowing what kinds of tours visitors want most, Vietravel will have the market
advantage and be able to respond to the needs sooner than other competitors. In fact, Vietravel has
done customer research very well and figured out the needs for volunteer tourism and took
advantage of it. Indeed, in business, the faster is the winner. According to the statistic, at the begin
of 2014, the percentage of people booking volunteer tours annually rised by 30-40%. Many
customers may become loyal customers of Vietravel since it can meet their needs instantly.
Thus, it is clear that customer satisfaction can be achieved through marketing orientation. This may
be difficult, however, once the company can catch up with the forthcoming movement of the
market, it will not only fulfill its customers but also seduce more people to try the products and
services.
Besides, if the customers are satisfied, or if Vietravel can cause customer delight, not only they will
have a fixed number of loyal customers but they also dont have to spend too much time and money
on attracting new ones or promoting for themselves. The operating costs can be reduced.
Furthermore, the loyal customers may make Vietravel even more famous and well-known to their
friends by the word-of-mouth.

2. Costs
However, marketing-oriented methodology has some drawbacks such as being expensive and timeconsuming, requiring market research in a large scale, too risky and trendy
First, marketing orientation is costly because of the expense for gathering information about the
companys customers. According to Mrs. Duong Mai Lan, who works in Marketing Department of
22

Vietravel, each project of Vietravel requires over 10 millions VND to do customer research,
including carrying out surveys and offline marketing. Besides, this process is also time-consuming
as it must take some time to design the survey questions, to share them, to collect them, then to
analyse them and make them beneficial.
Whats more, doing too many surveys may bother the customers which may later on result in the
decreased satisfaction of customers about Vietravel.
Second, in order to understand the customers needs and wants, research has to be done all over the
country. If Vietravels target is to provide tours for everyone within Vietnam and outside, then it can
not carry out the survey among only a group of people. The result would be unprecise.
One more disadvantage of marketing orientation is that, it contains high levels of risks. Peoples
tastes vary everytime, hence, a business cant change itself to meet the needs all the time. If it does
this, not only it fails in meeting all the needs but also the failed services can steer customers away.
Moreover, the cost is too high yet ineffective. Thus, Vietravel should stick to what it does best and
only consider other options as reference.

23

REFERENCE

1. Books
BPP Learning Media; (2010), Marketing Principles, BPP House, London, United Kingdom

2. Websites
Phn khc th trng Ly sao cho ng ming ngon, Bn sc thng hiu. Retrieved September
8th from
http://bansacthuonghieu.com/chi-tiet/phan-khuc-thi-truong-lay-sao-cho-dung-miengngon/4606.html [1]

System of products & services, Vietravel Asia Leading Tour Operator. Retrieved 8 th from

http://www.vietravel.com.vn/en/about-us/products-and-services.aspx [2]

5 benefits of a marketing audit, Johnson Direct. Retrieved 8 th from

http://www.johnsondirect.com/2010/07/28/5-benefits-of-a-marketing-audit/ [3]

Vietravels pride: 18 year journey to success, Vietravel Asia Leading Tour Operator. Retrieved 8th from
http://www.vietravel.com.vn/en/vietravel-diary/vietravels-pride-18-year-journey-to-success-v10001.aspx [4]

Vietravel A professional Travel Organiser, Vietnam Pictorial. Retrieved 8 th from

http://vietnam.vnanet.vn/vnp/en-us/13/58823/branded-in-vietnam/vietravel-a-professional-travelorganiser.html [5]

Bng n th trng tour M ti Vietravel, Vietravel Asia Leading Tour Operator. Retrieved 8th from
24

http://www.vietravel.com.vn/vn/tin-tuc-du-lich/bung-no-thi-truong-tour-my-tai-vietravelv10479.aspx [6]

Travel and tourism in Vietnam, Euromonitor International.Retrieved 8th from

http://www.euromonitor.com/travel-and-tourism-in-vietnam/report [7]

Vietnamese people spent $3.5 billion on overseas tours, VietnamConsult. Retrieved 8 th from

http://www.vietnamconsult.com/outbound-tourism-estimated-at-35-billion-annually [8]

Vietravel awarded with the best outbound travel operator of the year for Vietnam award for the
fifth consecutive time by five tourism ministries, Vietravel Asia Leading Tour Operator. Retrieved 8th
from

http://www.vietravel.com.vn/en/vietravel-diary/vietravel-awarded-with-the-best-outbound-traveloperator-of-the-year-for-vietnam-award-for-the-fifth-consecutive-time-by-five-tourism-ministriesv9759.aspx [9]

History, Saigontourist Travel Service. Retrieved 8th from

http://www.saigontourist.net/aboutus.htm [10]

Thng ngon th gii Tri nghim khc bit, Du lch doanh nghip. Retrieved 8th from
http://www.dulichdoanhnghiep.com/dulichnuocngoai.php [11]

Gii thiu v cng ty Hoa sen chu , Asian Lotus Travel. Retrieved 8 th from

http://asialotustravel.com/vecty.php [12]

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http://www.saylor.org/site/wp-content/uploads/2013/02/BUS208-7.3.1.1-Strategy-FormulationFINAL.pdf [13]

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