Marketing plan for mini games online of vtc company in hcmc market master project in business and marketing management
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TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES
HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL
MBMM4
THÁI HOÀNG TÚ
MARKETING PLAN FOR MINI GAME ONLINE OF VTC
COMPANY IN HO CHI MINH CITY MARKET
MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT
Tutor’s Name: Prof. Dr. Nguyễn Thắng
Ho Chi Minh City
(2010)
DECLARATION
I declare that this final project contains no material that has been accepted for the award of
any other degree of diploma in any university or other institution and contains no material
previously published or written by another person, except where due reference is made.
This final project contains a survey that is primarily conducted by myself under guidance and
support of the tutor. Therefore it has high level of trust, confidence and agreement.
Signature of the Student
Date. December 15th, 2010
Thai Hoang Tu
Master of Business and Marketing Management
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ACKNOWLEDGMENT
I wish to express my deep gratitude to my advisor and Committee Chairman,
Professor Thang for his useful guidance, suggestions and encouragement through out the
research work.
I also would like to extend genuine thanks to Mr. Huy, Ms. Tâm and other staffs at
VTCHCM company for their help and suggestion during the implementation of my research
study.
Thanks are also due to my friend, Dung, who had helped me during the customer
survey.
And the most wholehearted gratitude I wish to express to my parents and my brother
for their endless love, cares, encouragement and supporting to me during the course of my
study.
Last, I would like to thank overall professors from Solvay Business School and Ho
Chi Minh City Open University as well as my classmates for their supports via lectures,
discussions, debates, comments and feedbacks throughout my all Master program.
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TUTOR’S COMMENTS
I am writing to confirm that the project entitled:
MARKETING PLAN FOR MINI GAME ONLINE OF VTC COMPANY IN HO CHI
MINH CITY MARKET
Prepared by
Mr. THAI HOANG TU
Has satisfied the requirement for a Master’s project in Business and Marketing Management.
I, therefore, recommend that the project be presented.
Tutor
NGUYEN THANG
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TABLE OF CONTENT
Title Page
Title Page .............................................................................................................................. i
Declaration ............................................................................................................................ii
Acknowledgement ...............................................................................................................iii
Tutor’s comment .................................................................................................................. iv
Table of Content.................................................................................................................... v
List of Figure .......................................................................................................................vii
List of Table .......................................................................................................................viii
Excutive Summary ............................................................................................................. 1
1. INTRODUCTION ............................................................................................................... 2.
1.1. Company descriptions .................................................................................................... 2.
1.2. Problem statement .......................................................................................................... 3.
1.3. Objectives ....................................................................................................................... 3.
1.4. Conceptual frame work of the study .............................................................................. 4.
1.5. Scope and limitation of the work .................................................................................... 4.
2. GAME ONLINE MARKET IN VIETNAM ..................................................................... 5.
2.1.Macro enviroment analysis ............................................................................................. 5.
2.1.1. Economic trends and outlook ................................................................................ 5.
2.1.2. Economic remarks on the regulatory enviroment ................................................. 6.
2.1.3. Major Political issues affecting the business climate......... 7Error! Bookmark not
defined.
3. INTERNAL ENVIROMENT ANALYSIS AND REVIEW OF CURRENT
MARKETING STRATEGIES OF VTCZONE .................................................................... 7.
3.1.Challenge ......................................................................................................................... 7.
3.2.Situation analysis .............................................................................................................. 7
3.2.1. Company analysis .................................................................................................. 8.
3.2.2. Customer analysis ................................................................................................. 8.
3.2.3. Industry attractive and competitor analysis .......................................................... 9.
3.2.3.1. Market position ..................................................................................................... 9.
3.2.3.2. Branding ............................................................................................................... 9.
3.2.3.3. Porter's 5 forces.................................................................................................... 9.
3.2.4. Collaborators ...................................................................................................... 13.
3.2.5. Climate ................................................................................................................ 13.
3.3.Review of current marketing strategies of VTCZone ................................................... 13.
3.3.1. Media relationship............................................................................................... 13.
3.3.2. Website: ............................................................................................................... 14.
3.3.3. Events ................................................................................................................... 14
3.4.SWOT analysis .............................................................................................................. 14.
3.5.Use Swot analysis's results ............................................................................................ 16.
3.5.1. Use Strength ........................................................................................................ 16.
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3.5.2. Stop weaknesses ................................................................................................... 16.
3.5.3. Exploit opportunity .............................................................................................. 16.
3.5.4. Defense against threats ....................................................................................... 16.
3.6.Collusion........................................................................................................................ 16.
4. NEW MARKETING PLAN FOR MINI GAME ONLINE OF VTC IN
HOCHIMINH CITY MARKET .......................................................................................... 17.
4.1.Positioning and Market Segmentation........................................................................... 17.
4.1.1. Positioning ........................................................................................................... 17.
4.1.2. Officer 10 minutes segment ................................................................................. 17.
4.1.3. Gamer segment .................................................................................................... 17.
4.1.4. Other segments .................................................................................................... 17.
4.2 Marketing Mix ............................................................................................................... 18.
4.2.1. Product .................................................................................................................. 18.
4.2.2.Price ....................................................................................................................... 20.
4.2.3.Distribution............................................................................................................. 20.
4.2.4.Promotion ............................................................................................................... 20.
4.3. Selected Marketing Strategies ...................................................................................... 21.
4.3.1. Encourage member to play .................................................................................. 22.
4.3.2. Attract and recruit new users .............................................................................. 22.
4.3.3. Customer care and royalty program ................................................................... 22.
4.3.4. Maintaining positive image ................................................................................. 22.
4.3.5. Brand-building via brand ambassador ............................................................... 22.
4.3.6. Sponsorship in game shows, top programs, event ............................................... 23.
4.3.7. Outcome projection ............................................................................................. 23.
4.4.Alternative Marketing Strategies ................................................................................... 23.
4.4.1. Re-branding ......................................................................................................... 23.
4.4.2. Discontinuting Product ....................................................................................... 23.
4.4.3. Repositioning ....................................................................................................... 23.
4.5. Implementation plan ..................................................................................................... 23.
4.5.1. Product Design and Developement ....................................................................... 23.
4.5.2. Marketing & Sales ................................................................................................. 23.
4.5.3. Distributors............................................................................................................ 24.
4.5.4. Resource Requirements ......................................................................................... 24.
4.5.5. Scheduling ............................................................................................................. 24.
5. EVALUATION AND MONITORING ................................................................................ .
6. FINACIAL INFORMATION............................................................................................... .
6.1. Budgeting ..................................................................................................................... 26.
6.2. Short & Long-term Projections .................................................................................... 26.
7. CONCLUSIONS ................................................................................................................ 28.
BIBLIOGRAPHY ...................................................................................................................... .
APPENDICES
vi
LIST OF FIGURE
Figure 1.1 Framework of the study 4
Figure 2.1 Milestone of shorterm and longterm projections 28
vii
LIST OF TABLE
Table 1.1 Swot analysis 16
Table 2.1 Promotional programs 21
Table 3.1 Implementation plan 25
Table 3.2 Budget 26
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Executive Summary
A high-level summary of the marketing plan.
At present, mini games online (MGO) market in HCM city is spontaneous. There are not
really strong brands. Except Zing of Vina Game Co. is free playing. VTC HCM will establish
MGO department in next few month. Main functions and missions of this department are to
develop MGO in HCM. Especially, products will be produced on demand (outsourcing) by
MGO production partners. It is a potential opportunity for VTC which builds a marketing
planning for MGO approach in HCM market.
Designing Marketing planning for this market will be a decision factor for market share
and sales. 10 minutes officer and card player are good selections.
............................................................................................................................
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1. INTRODUCTION
1.1 Company description
Branch of Vietnam Multimedia Corporation in Ho Chi Minh City (here is shortened Branch) is a
subsidiary company directly under VietNam Multimedia Corporation-VTC; established by
Decision No. 264-QĐ/TCCB-VTC dated June 14th, 2006 of VTC’s Management Board; Scope
of business is performed on Registration Certificate No. 4116000735 that has been issued by
Business Registration Office - Department of Investment and Planning of HCMC.
VIET NAM MULTIMEDIA CORPORATION-VTC
BRANCH OF VIETNAM MULTIMEDIA CORPORATION IN HO CHI MINH CITY
Address: 43C - 43D Ho Van Hue Street, Ward 9, Phu Nhuan Dist, HCMC, VietNam
Tel/Customer Care: 19001593 - Fax: 08 3 997 6384
Website: http://vtczone.vn
Services:
Supplying services directly
- Added value services on television (SMS) by 8x39.
- Online games: Qworld, Zhu Xian, Chi Bi.
Supplying services as an area contributor
- Space Cowboy, Audition, Crazy Kart, Cross Fire, FIFA Online 2, Ling Wang.
Supplying services in the future
- Mini games for cell phone.
- Educational Equipment and digital book for all ages.
Vision:
General Target
Making to be a strong brand, business activities specialize in field of multi-media that is based
on application of modern technics, multipartite cooperation relations, together staff with high
professional level, dynamic, enthusiastic and high discipline in order to bring to customer
services with rich healthy quality contents, high educational and aesthetic.
Target in details
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- For the period from 2006-2010: Consolidating the structure; Enlarging cooperation relations;
Developing and supplying services based on application of modern technics; Investing in
infrastructure suitably and re-preparing for making brand.
- For the period after the year 2010: Developing and supplying services selectively; guarantee
quality; satisfied demand; making to be strong brand and operating from ISO.
1.2 Problem statement
In the past, VTCZone always catch market informations, breakthrough và revenue growth,
purpose for advoid risks, company must struggle for survival itself.
VTCZone currently operates to process order forms from other customers. So the company
business is depend significantly to the outside order. To survive in the long run, company must
develop its own brand name and product capability to compete in the domestic market. The
problem is extending business market share in Game Online(GO) market. Market tendency is
digital content provider of mobiphone will very develop, it need many products which intergrate
3G, 4G. In there, GO is one of early and timely development products will situable with
developmet tendency of VietNam. Therefore, VTCZone prepare caraefully products and
Marketing strategies in order to broadcast and launching products to market, achieve a certain
market share. To make trust and stable growth in business.
1.3 Objectives
Specific objectives: The focus of the thesis is to address and solve the following issues:
1. Analysis overall, current market and industry condition for online mini games ,
specifically for officer in Ho Chi Minh city market.
2. What are the strengths, weaknesses, opportunities and threads of mini games of VTC
in market HCM city?
3. How to develop alternative competitive strategies and recommendations suitable
strategy for gamers in this market?
4. How to encourage more gamers to join in MGO?
5. What improvements to increase the images of VTC mini games online.
Conceptual frame work of the study
The analysis of current performance of industry and company is based on the process of strategic
management, which is used to implement SWOT analysis for the company. First company
missions and goals are examined. Then external and internal environments are analyzed to
identify strategic situation that company is facing. Strategies are developed for the company and
evaluated to choose the most suitable one for recommendation. Figure 1.1 illustrates the
framework of the research study.
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Introduction
SWOT analysis
External Analysis Internal Analysis
Strategic Choice
Alternative Strategy
Plan
Strategy evaluation
Marketing Plan, actions
Conclusion
Figure 1.1 Framework of the study
Scope and limitation of work
The objectives of this paper are only focuses on mini games online on Game Online market of
VTC game online in HCM branch. The reason to choose this product is that it contributes an
important proportion in company total revenue and that this one is still new in company
operation.
Focus segment is officer using 10 minutes to relax by playing MGO. The reason to choose this
segment is that it is a new segment, potential market that competitors are not focus on
developing yet. If focusing and dominate this segment, we will create niche market, enable to
increase sales.
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Limitation
The unavailability of information about sales volume of each product categories, timing of sales
of each product, and expenditure on activities such as advertising, promotion, administration
constrains deep analysis on the profitability MGO and on marketing mix activities.
Limited information on industry and competitors (competitors’ past strategy and behavior)
places certain barrier to detail analysis about the competitive situation that is happening.
2. GAME ONLINE IN VIETNAM
2.1. MACRO ENVIRONMENT ANALYSIS
2.1.1. Economic trends and outlook
Regarding the number of Internet users, in 2010, Vietnam is in the Top 20 but down to
19, dropped one rank from 2009. According to statistics 6 / 2010 says as follows: group 1 with
49 countries, 57 of group 2, 120 of group 3 and group 4 from 20 countries. Vietnam is located at
the bottom of Group 2 with a rate of 28.39% but above the world average (26.6%), surpassing
China, India, Philippines, Thailand (group 3). Percentage of users, Vietnam ranked 116, retains
the previous year's rankings.
Until February 2009, Vietnam has a total of 15 enterprises released 45 online game (GO) in the
third category MMORPG, casual games and webgame. In 24 games that originated in Korea,
otherwise originating from China. There was a game VinaGame and Chinese business
development.
According to estimates, total revenue GO service market in 2008 reached about U.S. $ 80
million with the number of employees about 3700 people, they pay taxes to the state budget is
estimated at 287 billion. Also had many local enterprises producing games for the foreign market
(Gameloft, GlassEgg) or the first time the two parties cooperate to develop games like
VinaGame projects T812 and entertainment portal Zing.
Among many of publishers in Vietnam, 95% share of the three "big" is the VNG, VTC
and FPT. Although a member of the club and digital content of the Vinasa (Business Software
Association of Vietnam), but the competition between three firms are very large, from human
resources to compete, won the bidding rights to release game representatives of competing or
tearing each other's posters and internet service in the shop.
The war between the Publishers has created an extremely vibrant market, but also quite
shocked and unbalanced. Running after profits, vendors are scrambling to draw money from the
player that many become unbalanced game content, product life cycles are shortening.
Although all three major publishers and a few small companies were prepared to invest in
Vietnam game production, but the amount of investment compared to total profits or less than
the amount invested in the game's new foreign still too small. Not easy to make games, but it is
not done in Vietnam. Project T812 (Thuan Thien Kiem) VNG's is not as bad a start.
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Businesses are afraid to invest in production game for two main reasons: fear not
compete with imported games and lack of manpower. business issues that concern most game-
oriented of the State on the digital content industry and online gaming.
2.1.2. Economic remarks on the regulatory environment
This seems a good time for the Goverment, enterprises and communities of gamers
together links to adjust and supplement to better the industry. If all the parties to seriously look
into the factor market, invested properly, the online game market in Vietnam certainly more
potential for Vietnamese enterprises.
In addition, provisions to release the game to take a year to register, according to the
enterprise, this will affect negotiations with partners and selecting suitable business game.
Follow the instructions on Information Technology Law, online games and free online
foreign origin may be of special consumption tax of 30%. This makes the business enterprise
actually quite worried because most of the profits to be divided by sales partners and not as high
as before.
In 2006, the State issued the first legal document (a joint circular on management of
online gaming - online gaming - the 60/2006/TTLT/BVHTT-BBCVT-BCA). In particular, some
key provisions focused "game management through the evaluation and technical content, limited
hours of play with each account and banned from trading virtual items."
Although there are many different opinions about the actual effectiveness of this circular,
but since the circulars mentioned above, there are many titles have not been licensed in Vietnam,
or had to modify many before the circular was communicated to the players to reduce the level
of violence.
The more the game is released, the more issues need to be adjusted. Before the change of
the game online, 2010, the second State to carry out the necessary corrective measures.
Specifically, the draft circular on online games has many sides and opinions to be submitted to
the government to wait for issuance. State management agencies have conducted a series of
control measures, monitoring and adjustment of the publisher and agent Internet game about the
compliance with current regulations.
Specifically, management agencies assess the content of some games for disposal,
resolutely closed Internet shop near schools and they asked that the publisher must be serious
about playing time is limited such as buying and selling virtual items.
The inspectors made a number of consecutive games before that have not respected the
general regulations have to seriously improve accordingly. While ignoring issues of right and
wrong debate, whether or not violations of the parties concerned ... we can see that the
fluctuations in the market at this time of the game is corollary of history sector in recent years.
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2.1.3. Major Political Issues affecting the business climate
The Socialist Republic of Vietnam (SRV) is a one-Party state controlled by the
Vietnamese Communist Party (VCP). The VCP’s constitutionally mandated leading role, the
occupancy of nearly all senior government positions by Party officials, and the Party’s extensive
network down to the village level and through mass organizations ensures the primacy of
guidelines from the Party’s Political Bureau (Politburo). The Party and the Government have a
long-standing policy of not tolerating dissent and of prohibiting independent political, religious
and labor organizations. The National assembly, chosen in elections in which all candidates are
approved by the Party and most are Party members, remains largely subservient to the VCP, as
does the judiciary.
Besides, Ministry and City Department lack of uniformity in the assessment regulations
have also brought difficulties to the business. The publisher and investors always need a stable
business environment, orientation, support, commitment and close cooperation between the
Goverment management policies.
3. INTERNAL ENVIROMENT ANALYSIS AND REVIEW OF
CURRENT MARKETING STRATEGIES OF VTCZONE
3.1 The Challenge
- Company has many mini game online Products, about 10-20 games, include: 13 cards, 3
cards, 6 cards, Caro, Domino, Sea Horse,etc…
- Goals of Marketing Plan are to build a new strategy for all products which are outside of
market, purpose for pull customers, gamers. To build a image.
Nonfinancial Goals:
- To retain its present image as high quality MGO in online Game market.
- Become a TOP mini game company of HCM area.
- On Top of accessing MGO account.
Financial goals
- Achieve 6 billion VNĐ per months through first 3 year.
- To obtain a return on equity of at least 20 percent.
3.2 Situation Analysis
3.2.1 Company Analysis
Goals:
o Top 3 Mini game online.
o Top 1 Games online in Việt Nam.
Coverage
o 15.000+ Internet Cafe connected ~ 90% Vietnam territory
o 1000+ Internet Cafe belong to iCafe (VTC Internet Cafe standard)
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o Total bandwidth 15+ GB connect directly to VDC, FPT, Viettel (TOP 3
broadband provider)
Billing
o Single ID and single currency (V-Coin) system
Culture: Customer – oriented, Team Work.
Strengths:
o Have a large of number gamers who come from another GO of VTC online.
o VTC Online is one subsidiary company of VNPT Group.
o Easy for customers to access and do transactions on Game
Weaknesses:
o Working procedures have been built, but still not professional.
o Human resource is not stable. The structure with the majority of young staffs will
limit the ability to solve the problems in daily activities due to the lack of
experiences and qualification.
Market share:
o To gain 30% account market share in Game market. MGO is new market.
o 10 games / Market leader / Apx. 40% market share (Dec 2009)
o 40M+ registered / 15M+ active / 350K+ CCU / 4M+ paying
3.2.2 Customer Analysis
Pearl Research, (America) a market research company announces a new research, title is
“Game Online market in VietNam”, forecasts numbers of gamer in VietNam will exceed
10M at year 2011. In 2008, Vinagame estimates Vietnam will have 1,5M regular gamer, it is
primary young people.
Percentage attending school up to two thirds of online gamers today, followed by the
group of office workers. This is the result of a sociological survey on the latest online games in
Vietnam
Survey from group of specialist, researcher working in Socialogical Institute(VN
Socialogical Institute) conducted at 6 province in Vietnam with 1.320 interviewer.
As this result, GO player rate who go studying in a head (71,7%), next is officer group
(6,5%), freenlance (5,2%), service sales (3,9%), government official (3,5%),
unemployee/housewife/household (3,0%), worker (3,1%)…
GO playing tendency focuses on young people, in there concentrate in 16 – 20 years old
group (42,1%), this is a group who have ability to completely aware of their behaviors. Next is
10 – 15 group (26,3%), 21 – 25 groupi (22,0%), 26 – 30 group (9,5%).
Remarkable, although this result is the proportion of men than women play GO, however,
the percentage of women participating in the online game service is also very high. This suggests
that demand for gaming is a real demand in both men and.
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In terms of income, most of the players GO no income or income is not high, because
most of these people were pupils, students - the object is considered to be dependent on family,
not involved in job market and economic activity.
According to officer, through private survey(50 officers), the data are as follows:
o 70% have played online games on facebook, Vinagames, FPT, VTC(mostly
male).
o 50% agree play game online for relaxing. In there, 95% relax playing more than
10 minutes
3.2.3 Industry attractive and Competitor Analysis
3.2.3.1 Market position:
MGO market is started rising from 2008 with appearance of Zing, BenThuongHai, FPT.
Up to now, daily competitors are more stronger and they expand to other fields
Morever, new rising competitors also gain a not small marketshare, and not considerable.
But we must notice.
3.2.3.2 Branding:
* Point of Parity
- Easy-to-use / Conven ient package design
- Nice flavors
- Reasonable price
- Entertainment
* Point of Difference
- to produce production/software on demand. (Market tendency has many private
outsourcing software production companies in VietNam)
- Have many attractive promotion programs.
- Folky interface, nearby with consumers.
- Updating continuously new items.Offline activities, events holding enclose with enrich
awards.
3.2.3.3 Porter’s 5 force:
We apply Porter’s 5 force to estimate competitors, such as:
Potentials entrance: Threat of new entrance
- Vietnam Mobile Operators such as MobiFone, VinaPhone, Viettel, MobileVietNam
etc,… which long-term tendency will extends activities into MGO market interacting
mobile phone systems, they will be strong competitors with big capital resources.
- Foreign game companies will see Vietnam GO market which develops strongly (China,
Korea, Malaysia etc), they will invest into Vietnam in order to speed up business growth
of enterprises.
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- Big digital companies will gradually grow up in strength, they can deploy theirselves and
can cooperate, associate together in order to make total strengths competing to gain
market share.
Buyers: Bargaining Power of Buyers
- Consumers needs want to play simple games, good feedback customer services, user-
friendly payment conditions and shopping inside game must be sastisfied.
- MGO enterprises must have Customer Care department which solves timely complaints.
- Games are often upgraded and made new and stranger effects.
- There should be competition in the game, to create incentives for gamers more interested
in playing games.
- It is real entertainement Games.
Substitutes: Threat of Substitute Product of Service
- Consumer uses their freetime for shoping.
- To use other adding value services of mobile phone as: music listening, mobile game
playing, other games playing.
- Consumer are gradually tired and bore entertainemnet game, they will change to relax by
other forms, such as:book reading, studying, research, picnic, visiting, online business.
Suppliers: Bargaining Power of supplier
- Suppliers are GO production partners for VTCZone. Company sign agreement contracts
with exclusive right conditions which define that partners do not supply or sale for any
competitor with any forms.
- Besides, VTCZone is permmited to sale for oversea, if saling for country inside, it will
discuss with MGO production suppliers.
Industry Competitors(Rivalry among existing firms)
a/ Competitor is Zing of VinaGame
Website: http://play.zing.vn/; Copyright©Zing. VNG is the managing unit of Zing. ICP
License No.: 41/GP-TTDT.
Established 9th September , 2004, Vina Corp - VNG (former is VinaGame).
Developing After two years, Portal online entertainment website Zing.vn became No. 5 in
Vietnam (according to Alexa). Dated 07/1/2010, VinaGame company officially changed its
name to Stock Company Vina Group (VNG), the renamed VNG also can be seen as a strategy to
further development in the entertainment market online.
Not only release the game imported from China and Korea, the VNG also began the game with
its own brand by VNG research and development. In March 2010, VNG has officially launched
Thuan Thien Kiem game, games by VNG research and development based on history and culture
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of Vietnam.
February 2008, Zing Ads was founded to provide online advertising services on the electronic
portal Zing. Zing Ads business support standard IAB ads, Rich Media, tracking system. Besides
online advertising services, Zing Ads also provides additional consulting services and
implementation of marketing campaigns online on the portal Zing.
VNG products available online from the online game as Swordsman (1 and 2), Feng Shen, Ching
Toys, Fantasy, Boom Online, Zing Dance to the rise of Internet services such as e-Portal Zing,
Social Networking ZingMe, Zing MP3, 123mua. The settlement of the VNG service can use the
form to buy prepaid cards for VNG.
Human Resources: staff of VNG is 1100 people, of whom 50 key employees
Image and personality: how is the competitor positioned and perceived?
Young consumers most like to play MGO of Zing, due to Zing free for a long time to
attract consumers.
Many customers love Zing brand before, so it is very easy to use and accept Zing as a
image for local teen.
Zing, VinaGame usually held offline and promotion programs to build brand. They
are taking a Game Top Vietnam, and also Top1 mini online games in Vietnam. HCM
city in its own market, they dominate 40% market share in online games.
At the awards ceremony ICT Vietnam 2009 by the Ministry of Information and
Communication held in March 2010, VNG has been honored with three awards:
Enterprise of the best content, young entrepreneurs with potential The best
development, enterprise products, digital content brand's most successful Vietnam.
In 2006, VinaGame was awarded "Top 50 best employers in Vietnam" by Navigos
Group and AC Nielsen in collaboration with Thanh Nien newspaper awarded.
Objectives:
Resources of Zing very strong, with strong capital. They always lead and ambition
will lead to many years in the online gaming market, and especially the mini games
online.
Their goal is to achieve> 50% market share of online mini-game in Vietnam in the
next 5 years.
Current and past strategies, what are the implications for future strategic move?
Culture: what is the most important to the organization- cost control, entrepreneurship,
or the customers?
Cost structure: does the competitor have cost advantage?
Strength
Through a survey of famous gamer, said the company's products are guaranteed VNG
compared to other game publishers in Vietnam. Evidence that their staff always
respond quickly whenever a problem product
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Weakness:
According to sources from the forum and the opinions of gamers, they reflected the
company VNG is a process not transparent, often lock the accounts that they suspect.
Gamer's VNG also said they could not do anything when VNG locked their accounts
and did not inform them that any specific information.
b/ Competitor is Ken/BenThuongHai
Website: http://gameken.us; http://benthuonghai.com
BenThuongHai game was built by five friends, they use the home office and set
up the game. First time their illegal business with a benthuonghai.com domain,
then they switch to ken.vn and now their domain name is http://gameken.us.
Image and personality: how is the competitor positioned and perceived?
One of the sites business gambling mini-game and first in VietNam is a gamer
community groups to accept.
Game of their mostly gambling.
Security system is not good, but thanks to the policies in time should the
gamer acceptable.
Objectives: what does competitor commit resources to, for high growth or
differentiation strategy?
BTH want to stand in the top5 business enterprises in Vietnam MGO.
Culture: Business motto of the company is now profitable
Strength:
- It is one of the Company's business in Vietnam MgO
- BTH have a large account number playing MGO, especially the folk game
VietNam
Weakness:
- Brand is not as strong and clear..
- Exploiting the load through SMS is not released through the cards.
- Number of account not much. Not really a strong source of capital.
- The management team is not really strong enough.
Evaluation:
- Competitors are VinaGame, Zing, BenThuongHai, big digital companies, mobiphone
games of operators etc,…
- Zing and some foreign games companies permit gamer to play games with free
accounts.This enables gamer to feel comfortable. This is a big obstacle that we need to
overcome.
- Therefore, VTCZone focuses primarily to consumers who want to play folk MGO. MGO
must have betting, items, special uniform shopping.
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HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL
MBMM4
THÁI HOÀNG TÚ
MARKETING PLAN FOR MINI GAME ONLINE OF VTC
COMPANY IN HO CHI MINH CITY MARKET
MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT
Tutor’s Name: Prof. Dr. Nguyễn Thắng
Ho Chi Minh City
(2010)
DECLARATION
I declare that this final project contains no material that has been accepted for the award of
any other degree of diploma in any university or other institution and contains no material
previously published or written by another person, except where due reference is made.
This final project contains a survey that is primarily conducted by myself under guidance and
support of the tutor. Therefore it has high level of trust, confidence and agreement.
Signature of the Student
Date. December 15th, 2010
Thai Hoang Tu
Master of Business and Marketing Management
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ACKNOWLEDGMENT
I wish to express my deep gratitude to my advisor and Committee Chairman,
Professor Thang for his useful guidance, suggestions and encouragement through out the
research work.
I also would like to extend genuine thanks to Mr. Huy, Ms. Tâm and other staffs at
VTCHCM company for their help and suggestion during the implementation of my research
study.
Thanks are also due to my friend, Dung, who had helped me during the customer
survey.
And the most wholehearted gratitude I wish to express to my parents and my brother
for their endless love, cares, encouragement and supporting to me during the course of my
study.
Last, I would like to thank overall professors from Solvay Business School and Ho
Chi Minh City Open University as well as my classmates for their supports via lectures,
discussions, debates, comments and feedbacks throughout my all Master program.
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TUTOR’S COMMENTS
I am writing to confirm that the project entitled:
MARKETING PLAN FOR MINI GAME ONLINE OF VTC COMPANY IN HO CHI
MINH CITY MARKET
Prepared by
Mr. THAI HOANG TU
Has satisfied the requirement for a Master’s project in Business and Marketing Management.
I, therefore, recommend that the project be presented.
Tutor
NGUYEN THANG
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TABLE OF CONTENT
Title Page
Title Page .............................................................................................................................. i
Declaration ............................................................................................................................ii
Acknowledgement ...............................................................................................................iii
Tutor’s comment .................................................................................................................. iv
Table of Content.................................................................................................................... v
List of Figure .......................................................................................................................vii
List of Table .......................................................................................................................viii
Excutive Summary ............................................................................................................. 1
1. INTRODUCTION ............................................................................................................... 2.
1.1. Company descriptions .................................................................................................... 2.
1.2. Problem statement .......................................................................................................... 3.
1.3. Objectives ....................................................................................................................... 3.
1.4. Conceptual frame work of the study .............................................................................. 4.
1.5. Scope and limitation of the work .................................................................................... 4.
2. GAME ONLINE MARKET IN VIETNAM ..................................................................... 5.
2.1.Macro enviroment analysis ............................................................................................. 5.
2.1.1. Economic trends and outlook ................................................................................ 5.
2.1.2. Economic remarks on the regulatory enviroment ................................................. 6.
2.1.3. Major Political issues affecting the business climate......... 7Error! Bookmark not
defined.
3. INTERNAL ENVIROMENT ANALYSIS AND REVIEW OF CURRENT
MARKETING STRATEGIES OF VTCZONE .................................................................... 7.
3.1.Challenge ......................................................................................................................... 7.
3.2.Situation analysis .............................................................................................................. 7
3.2.1. Company analysis .................................................................................................. 8.
3.2.2. Customer analysis ................................................................................................. 8.
3.2.3. Industry attractive and competitor analysis .......................................................... 9.
3.2.3.1. Market position ..................................................................................................... 9.
3.2.3.2. Branding ............................................................................................................... 9.
3.2.3.3. Porter's 5 forces.................................................................................................... 9.
3.2.4. Collaborators ...................................................................................................... 13.
3.2.5. Climate ................................................................................................................ 13.
3.3.Review of current marketing strategies of VTCZone ................................................... 13.
3.3.1. Media relationship............................................................................................... 13.
3.3.2. Website: ............................................................................................................... 14.
3.3.3. Events ................................................................................................................... 14
3.4.SWOT analysis .............................................................................................................. 14.
3.5.Use Swot analysis's results ............................................................................................ 16.
3.5.1. Use Strength ........................................................................................................ 16.
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3.5.2. Stop weaknesses ................................................................................................... 16.
3.5.3. Exploit opportunity .............................................................................................. 16.
3.5.4. Defense against threats ....................................................................................... 16.
3.6.Collusion........................................................................................................................ 16.
4. NEW MARKETING PLAN FOR MINI GAME ONLINE OF VTC IN
HOCHIMINH CITY MARKET .......................................................................................... 17.
4.1.Positioning and Market Segmentation........................................................................... 17.
4.1.1. Positioning ........................................................................................................... 17.
4.1.2. Officer 10 minutes segment ................................................................................. 17.
4.1.3. Gamer segment .................................................................................................... 17.
4.1.4. Other segments .................................................................................................... 17.
4.2 Marketing Mix ............................................................................................................... 18.
4.2.1. Product .................................................................................................................. 18.
4.2.2.Price ....................................................................................................................... 20.
4.2.3.Distribution............................................................................................................. 20.
4.2.4.Promotion ............................................................................................................... 20.
4.3. Selected Marketing Strategies ...................................................................................... 21.
4.3.1. Encourage member to play .................................................................................. 22.
4.3.2. Attract and recruit new users .............................................................................. 22.
4.3.3. Customer care and royalty program ................................................................... 22.
4.3.4. Maintaining positive image ................................................................................. 22.
4.3.5. Brand-building via brand ambassador ............................................................... 22.
4.3.6. Sponsorship in game shows, top programs, event ............................................... 23.
4.3.7. Outcome projection ............................................................................................. 23.
4.4.Alternative Marketing Strategies ................................................................................... 23.
4.4.1. Re-branding ......................................................................................................... 23.
4.4.2. Discontinuting Product ....................................................................................... 23.
4.4.3. Repositioning ....................................................................................................... 23.
4.5. Implementation plan ..................................................................................................... 23.
4.5.1. Product Design and Developement ....................................................................... 23.
4.5.2. Marketing & Sales ................................................................................................. 23.
4.5.3. Distributors............................................................................................................ 24.
4.5.4. Resource Requirements ......................................................................................... 24.
4.5.5. Scheduling ............................................................................................................. 24.
5. EVALUATION AND MONITORING ................................................................................ .
6. FINACIAL INFORMATION............................................................................................... .
6.1. Budgeting ..................................................................................................................... 26.
6.2. Short & Long-term Projections .................................................................................... 26.
7. CONCLUSIONS ................................................................................................................ 28.
BIBLIOGRAPHY ...................................................................................................................... .
APPENDICES
vi
LIST OF FIGURE
Figure 1.1 Framework of the study 4
Figure 2.1 Milestone of shorterm and longterm projections 28
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LIST OF TABLE
Table 1.1 Swot analysis 16
Table 2.1 Promotional programs 21
Table 3.1 Implementation plan 25
Table 3.2 Budget 26
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Executive Summary
A high-level summary of the marketing plan.
At present, mini games online (MGO) market in HCM city is spontaneous. There are not
really strong brands. Except Zing of Vina Game Co. is free playing. VTC HCM will establish
MGO department in next few month. Main functions and missions of this department are to
develop MGO in HCM. Especially, products will be produced on demand (outsourcing) by
MGO production partners. It is a potential opportunity for VTC which builds a marketing
planning for MGO approach in HCM market.
Designing Marketing planning for this market will be a decision factor for market share
and sales. 10 minutes officer and card player are good selections.
............................................................................................................................
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1. INTRODUCTION
1.1 Company description
Branch of Vietnam Multimedia Corporation in Ho Chi Minh City (here is shortened Branch) is a
subsidiary company directly under VietNam Multimedia Corporation-VTC; established by
Decision No. 264-QĐ/TCCB-VTC dated June 14th, 2006 of VTC’s Management Board; Scope
of business is performed on Registration Certificate No. 4116000735 that has been issued by
Business Registration Office - Department of Investment and Planning of HCMC.
VIET NAM MULTIMEDIA CORPORATION-VTC
BRANCH OF VIETNAM MULTIMEDIA CORPORATION IN HO CHI MINH CITY
Address: 43C - 43D Ho Van Hue Street, Ward 9, Phu Nhuan Dist, HCMC, VietNam
Tel/Customer Care: 19001593 - Fax: 08 3 997 6384
Website: http://vtczone.vn
Services:
Supplying services directly
- Added value services on television (SMS) by 8x39.
- Online games: Qworld, Zhu Xian, Chi Bi.
Supplying services as an area contributor
- Space Cowboy, Audition, Crazy Kart, Cross Fire, FIFA Online 2, Ling Wang.
Supplying services in the future
- Mini games for cell phone.
- Educational Equipment and digital book for all ages.
Vision:
General Target
Making to be a strong brand, business activities specialize in field of multi-media that is based
on application of modern technics, multipartite cooperation relations, together staff with high
professional level, dynamic, enthusiastic and high discipline in order to bring to customer
services with rich healthy quality contents, high educational and aesthetic.
Target in details
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- For the period from 2006-2010: Consolidating the structure; Enlarging cooperation relations;
Developing and supplying services based on application of modern technics; Investing in
infrastructure suitably and re-preparing for making brand.
- For the period after the year 2010: Developing and supplying services selectively; guarantee
quality; satisfied demand; making to be strong brand and operating from ISO.
1.2 Problem statement
In the past, VTCZone always catch market informations, breakthrough và revenue growth,
purpose for advoid risks, company must struggle for survival itself.
VTCZone currently operates to process order forms from other customers. So the company
business is depend significantly to the outside order. To survive in the long run, company must
develop its own brand name and product capability to compete in the domestic market. The
problem is extending business market share in Game Online(GO) market. Market tendency is
digital content provider of mobiphone will very develop, it need many products which intergrate
3G, 4G. In there, GO is one of early and timely development products will situable with
developmet tendency of VietNam. Therefore, VTCZone prepare caraefully products and
Marketing strategies in order to broadcast and launching products to market, achieve a certain
market share. To make trust and stable growth in business.
1.3 Objectives
Specific objectives: The focus of the thesis is to address and solve the following issues:
1. Analysis overall, current market and industry condition for online mini games ,
specifically for officer in Ho Chi Minh city market.
2. What are the strengths, weaknesses, opportunities and threads of mini games of VTC
in market HCM city?
3. How to develop alternative competitive strategies and recommendations suitable
strategy for gamers in this market?
4. How to encourage more gamers to join in MGO?
5. What improvements to increase the images of VTC mini games online.
Conceptual frame work of the study
The analysis of current performance of industry and company is based on the process of strategic
management, which is used to implement SWOT analysis for the company. First company
missions and goals are examined. Then external and internal environments are analyzed to
identify strategic situation that company is facing. Strategies are developed for the company and
evaluated to choose the most suitable one for recommendation. Figure 1.1 illustrates the
framework of the research study.
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Introduction
SWOT analysis
External Analysis Internal Analysis
Strategic Choice
Alternative Strategy
Plan
Strategy evaluation
Marketing Plan, actions
Conclusion
Figure 1.1 Framework of the study
Scope and limitation of work
The objectives of this paper are only focuses on mini games online on Game Online market of
VTC game online in HCM branch. The reason to choose this product is that it contributes an
important proportion in company total revenue and that this one is still new in company
operation.
Focus segment is officer using 10 minutes to relax by playing MGO. The reason to choose this
segment is that it is a new segment, potential market that competitors are not focus on
developing yet. If focusing and dominate this segment, we will create niche market, enable to
increase sales.
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Limitation
The unavailability of information about sales volume of each product categories, timing of sales
of each product, and expenditure on activities such as advertising, promotion, administration
constrains deep analysis on the profitability MGO and on marketing mix activities.
Limited information on industry and competitors (competitors’ past strategy and behavior)
places certain barrier to detail analysis about the competitive situation that is happening.
2. GAME ONLINE IN VIETNAM
2.1. MACRO ENVIRONMENT ANALYSIS
2.1.1. Economic trends and outlook
Regarding the number of Internet users, in 2010, Vietnam is in the Top 20 but down to
19, dropped one rank from 2009. According to statistics 6 / 2010 says as follows: group 1 with
49 countries, 57 of group 2, 120 of group 3 and group 4 from 20 countries. Vietnam is located at
the bottom of Group 2 with a rate of 28.39% but above the world average (26.6%), surpassing
China, India, Philippines, Thailand (group 3). Percentage of users, Vietnam ranked 116, retains
the previous year's rankings.
Until February 2009, Vietnam has a total of 15 enterprises released 45 online game (GO) in the
third category MMORPG, casual games and webgame. In 24 games that originated in Korea,
otherwise originating from China. There was a game VinaGame and Chinese business
development.
According to estimates, total revenue GO service market in 2008 reached about U.S. $ 80
million with the number of employees about 3700 people, they pay taxes to the state budget is
estimated at 287 billion. Also had many local enterprises producing games for the foreign market
(Gameloft, GlassEgg) or the first time the two parties cooperate to develop games like
VinaGame projects T812 and entertainment portal Zing.
Among many of publishers in Vietnam, 95% share of the three "big" is the VNG, VTC
and FPT. Although a member of the club and digital content of the Vinasa (Business Software
Association of Vietnam), but the competition between three firms are very large, from human
resources to compete, won the bidding rights to release game representatives of competing or
tearing each other's posters and internet service in the shop.
The war between the Publishers has created an extremely vibrant market, but also quite
shocked and unbalanced. Running after profits, vendors are scrambling to draw money from the
player that many become unbalanced game content, product life cycles are shortening.
Although all three major publishers and a few small companies were prepared to invest in
Vietnam game production, but the amount of investment compared to total profits or less than
the amount invested in the game's new foreign still too small. Not easy to make games, but it is
not done in Vietnam. Project T812 (Thuan Thien Kiem) VNG's is not as bad a start.
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Businesses are afraid to invest in production game for two main reasons: fear not
compete with imported games and lack of manpower. business issues that concern most game-
oriented of the State on the digital content industry and online gaming.
2.1.2. Economic remarks on the regulatory environment
This seems a good time for the Goverment, enterprises and communities of gamers
together links to adjust and supplement to better the industry. If all the parties to seriously look
into the factor market, invested properly, the online game market in Vietnam certainly more
potential for Vietnamese enterprises.
In addition, provisions to release the game to take a year to register, according to the
enterprise, this will affect negotiations with partners and selecting suitable business game.
Follow the instructions on Information Technology Law, online games and free online
foreign origin may be of special consumption tax of 30%. This makes the business enterprise
actually quite worried because most of the profits to be divided by sales partners and not as high
as before.
In 2006, the State issued the first legal document (a joint circular on management of
online gaming - online gaming - the 60/2006/TTLT/BVHTT-BBCVT-BCA). In particular, some
key provisions focused "game management through the evaluation and technical content, limited
hours of play with each account and banned from trading virtual items."
Although there are many different opinions about the actual effectiveness of this circular,
but since the circulars mentioned above, there are many titles have not been licensed in Vietnam,
or had to modify many before the circular was communicated to the players to reduce the level
of violence.
The more the game is released, the more issues need to be adjusted. Before the change of
the game online, 2010, the second State to carry out the necessary corrective measures.
Specifically, the draft circular on online games has many sides and opinions to be submitted to
the government to wait for issuance. State management agencies have conducted a series of
control measures, monitoring and adjustment of the publisher and agent Internet game about the
compliance with current regulations.
Specifically, management agencies assess the content of some games for disposal,
resolutely closed Internet shop near schools and they asked that the publisher must be serious
about playing time is limited such as buying and selling virtual items.
The inspectors made a number of consecutive games before that have not respected the
general regulations have to seriously improve accordingly. While ignoring issues of right and
wrong debate, whether or not violations of the parties concerned ... we can see that the
fluctuations in the market at this time of the game is corollary of history sector in recent years.
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2.1.3. Major Political Issues affecting the business climate
The Socialist Republic of Vietnam (SRV) is a one-Party state controlled by the
Vietnamese Communist Party (VCP). The VCP’s constitutionally mandated leading role, the
occupancy of nearly all senior government positions by Party officials, and the Party’s extensive
network down to the village level and through mass organizations ensures the primacy of
guidelines from the Party’s Political Bureau (Politburo). The Party and the Government have a
long-standing policy of not tolerating dissent and of prohibiting independent political, religious
and labor organizations. The National assembly, chosen in elections in which all candidates are
approved by the Party and most are Party members, remains largely subservient to the VCP, as
does the judiciary.
Besides, Ministry and City Department lack of uniformity in the assessment regulations
have also brought difficulties to the business. The publisher and investors always need a stable
business environment, orientation, support, commitment and close cooperation between the
Goverment management policies.
3. INTERNAL ENVIROMENT ANALYSIS AND REVIEW OF
CURRENT MARKETING STRATEGIES OF VTCZONE
3.1 The Challenge
- Company has many mini game online Products, about 10-20 games, include: 13 cards, 3
cards, 6 cards, Caro, Domino, Sea Horse,etc…
- Goals of Marketing Plan are to build a new strategy for all products which are outside of
market, purpose for pull customers, gamers. To build a image.
Nonfinancial Goals:
- To retain its present image as high quality MGO in online Game market.
- Become a TOP mini game company of HCM area.
- On Top of accessing MGO account.
Financial goals
- Achieve 6 billion VNĐ per months through first 3 year.
- To obtain a return on equity of at least 20 percent.
3.2 Situation Analysis
3.2.1 Company Analysis
Goals:
o Top 3 Mini game online.
o Top 1 Games online in Việt Nam.
Coverage
o 15.000+ Internet Cafe connected ~ 90% Vietnam territory
o 1000+ Internet Cafe belong to iCafe (VTC Internet Cafe standard)
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o Total bandwidth 15+ GB connect directly to VDC, FPT, Viettel (TOP 3
broadband provider)
Billing
o Single ID and single currency (V-Coin) system
Culture: Customer – oriented, Team Work.
Strengths:
o Have a large of number gamers who come from another GO of VTC online.
o VTC Online is one subsidiary company of VNPT Group.
o Easy for customers to access and do transactions on Game
Weaknesses:
o Working procedures have been built, but still not professional.
o Human resource is not stable. The structure with the majority of young staffs will
limit the ability to solve the problems in daily activities due to the lack of
experiences and qualification.
Market share:
o To gain 30% account market share in Game market. MGO is new market.
o 10 games / Market leader / Apx. 40% market share (Dec 2009)
o 40M+ registered / 15M+ active / 350K+ CCU / 4M+ paying
3.2.2 Customer Analysis
Pearl Research, (America) a market research company announces a new research, title is
“Game Online market in VietNam”, forecasts numbers of gamer in VietNam will exceed
10M at year 2011. In 2008, Vinagame estimates Vietnam will have 1,5M regular gamer, it is
primary young people.
Percentage attending school up to two thirds of online gamers today, followed by the
group of office workers. This is the result of a sociological survey on the latest online games in
Vietnam
Survey from group of specialist, researcher working in Socialogical Institute(VN
Socialogical Institute) conducted at 6 province in Vietnam with 1.320 interviewer.
As this result, GO player rate who go studying in a head (71,7%), next is officer group
(6,5%), freenlance (5,2%), service sales (3,9%), government official (3,5%),
unemployee/housewife/household (3,0%), worker (3,1%)…
GO playing tendency focuses on young people, in there concentrate in 16 – 20 years old
group (42,1%), this is a group who have ability to completely aware of their behaviors. Next is
10 – 15 group (26,3%), 21 – 25 groupi (22,0%), 26 – 30 group (9,5%).
Remarkable, although this result is the proportion of men than women play GO, however,
the percentage of women participating in the online game service is also very high. This suggests
that demand for gaming is a real demand in both men and.
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In terms of income, most of the players GO no income or income is not high, because
most of these people were pupils, students - the object is considered to be dependent on family,
not involved in job market and economic activity.
According to officer, through private survey(50 officers), the data are as follows:
o 70% have played online games on facebook, Vinagames, FPT, VTC(mostly
male).
o 50% agree play game online for relaxing. In there, 95% relax playing more than
10 minutes
3.2.3 Industry attractive and Competitor Analysis
3.2.3.1 Market position:
MGO market is started rising from 2008 with appearance of Zing, BenThuongHai, FPT.
Up to now, daily competitors are more stronger and they expand to other fields
Morever, new rising competitors also gain a not small marketshare, and not considerable.
But we must notice.
3.2.3.2 Branding:
* Point of Parity
- Easy-to-use / Conven ient package design
- Nice flavors
- Reasonable price
- Entertainment
* Point of Difference
- to produce production/software on demand. (Market tendency has many private
outsourcing software production companies in VietNam)
- Have many attractive promotion programs.
- Folky interface, nearby with consumers.
- Updating continuously new items.Offline activities, events holding enclose with enrich
awards.
3.2.3.3 Porter’s 5 force:
We apply Porter’s 5 force to estimate competitors, such as:
Potentials entrance: Threat of new entrance
- Vietnam Mobile Operators such as MobiFone, VinaPhone, Viettel, MobileVietNam
etc,… which long-term tendency will extends activities into MGO market interacting
mobile phone systems, they will be strong competitors with big capital resources.
- Foreign game companies will see Vietnam GO market which develops strongly (China,
Korea, Malaysia etc), they will invest into Vietnam in order to speed up business growth
of enterprises.
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- Big digital companies will gradually grow up in strength, they can deploy theirselves and
can cooperate, associate together in order to make total strengths competing to gain
market share.
Buyers: Bargaining Power of Buyers
- Consumers needs want to play simple games, good feedback customer services, user-
friendly payment conditions and shopping inside game must be sastisfied.
- MGO enterprises must have Customer Care department which solves timely complaints.
- Games are often upgraded and made new and stranger effects.
- There should be competition in the game, to create incentives for gamers more interested
in playing games.
- It is real entertainement Games.
Substitutes: Threat of Substitute Product of Service
- Consumer uses their freetime for shoping.
- To use other adding value services of mobile phone as: music listening, mobile game
playing, other games playing.
- Consumer are gradually tired and bore entertainemnet game, they will change to relax by
other forms, such as:book reading, studying, research, picnic, visiting, online business.
Suppliers: Bargaining Power of supplier
- Suppliers are GO production partners for VTCZone. Company sign agreement contracts
with exclusive right conditions which define that partners do not supply or sale for any
competitor with any forms.
- Besides, VTCZone is permmited to sale for oversea, if saling for country inside, it will
discuss with MGO production suppliers.
Industry Competitors(Rivalry among existing firms)
a/ Competitor is Zing of VinaGame
Website: http://play.zing.vn/; Copyright©Zing. VNG is the managing unit of Zing. ICP
License No.: 41/GP-TTDT.
Established 9th September , 2004, Vina Corp - VNG (former is VinaGame).
Developing After two years, Portal online entertainment website Zing.vn became No. 5 in
Vietnam (according to Alexa). Dated 07/1/2010, VinaGame company officially changed its
name to Stock Company Vina Group (VNG), the renamed VNG also can be seen as a strategy to
further development in the entertainment market online.
Not only release the game imported from China and Korea, the VNG also began the game with
its own brand by VNG research and development. In March 2010, VNG has officially launched
Thuan Thien Kiem game, games by VNG research and development based on history and culture
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of Vietnam.
February 2008, Zing Ads was founded to provide online advertising services on the electronic
portal Zing. Zing Ads business support standard IAB ads, Rich Media, tracking system. Besides
online advertising services, Zing Ads also provides additional consulting services and
implementation of marketing campaigns online on the portal Zing.
VNG products available online from the online game as Swordsman (1 and 2), Feng Shen, Ching
Toys, Fantasy, Boom Online, Zing Dance to the rise of Internet services such as e-Portal Zing,
Social Networking ZingMe, Zing MP3, 123mua. The settlement of the VNG service can use the
form to buy prepaid cards for VNG.
Human Resources: staff of VNG is 1100 people, of whom 50 key employees
Image and personality: how is the competitor positioned and perceived?
Young consumers most like to play MGO of Zing, due to Zing free for a long time to
attract consumers.
Many customers love Zing brand before, so it is very easy to use and accept Zing as a
image for local teen.
Zing, VinaGame usually held offline and promotion programs to build brand. They
are taking a Game Top Vietnam, and also Top1 mini online games in Vietnam. HCM
city in its own market, they dominate 40% market share in online games.
At the awards ceremony ICT Vietnam 2009 by the Ministry of Information and
Communication held in March 2010, VNG has been honored with three awards:
Enterprise of the best content, young entrepreneurs with potential The best
development, enterprise products, digital content brand's most successful Vietnam.
In 2006, VinaGame was awarded "Top 50 best employers in Vietnam" by Navigos
Group and AC Nielsen in collaboration with Thanh Nien newspaper awarded.
Objectives:
Resources of Zing very strong, with strong capital. They always lead and ambition
will lead to many years in the online gaming market, and especially the mini games
online.
Their goal is to achieve> 50% market share of online mini-game in Vietnam in the
next 5 years.
Current and past strategies, what are the implications for future strategic move?
Culture: what is the most important to the organization- cost control, entrepreneurship,
or the customers?
Cost structure: does the competitor have cost advantage?
Strength
Through a survey of famous gamer, said the company's products are guaranteed VNG
compared to other game publishers in Vietnam. Evidence that their staff always
respond quickly whenever a problem product
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Weakness:
According to sources from the forum and the opinions of gamers, they reflected the
company VNG is a process not transparent, often lock the accounts that they suspect.
Gamer's VNG also said they could not do anything when VNG locked their accounts
and did not inform them that any specific information.
b/ Competitor is Ken/BenThuongHai
Website: http://gameken.us; http://benthuonghai.com
BenThuongHai game was built by five friends, they use the home office and set
up the game. First time their illegal business with a benthuonghai.com domain,
then they switch to ken.vn and now their domain name is http://gameken.us.
Image and personality: how is the competitor positioned and perceived?
One of the sites business gambling mini-game and first in VietNam is a gamer
community groups to accept.
Game of their mostly gambling.
Security system is not good, but thanks to the policies in time should the
gamer acceptable.
Objectives: what does competitor commit resources to, for high growth or
differentiation strategy?
BTH want to stand in the top5 business enterprises in Vietnam MGO.
Culture: Business motto of the company is now profitable
Strength:
- It is one of the Company's business in Vietnam MgO
- BTH have a large account number playing MGO, especially the folk game
VietNam
Weakness:
- Brand is not as strong and clear..
- Exploiting the load through SMS is not released through the cards.
- Number of account not much. Not really a strong source of capital.
- The management team is not really strong enough.
Evaluation:
- Competitors are VinaGame, Zing, BenThuongHai, big digital companies, mobiphone
games of operators etc,…
- Zing and some foreign games companies permit gamer to play games with free
accounts.This enables gamer to feel comfortable. This is a big obstacle that we need to
overcome.
- Therefore, VTCZone focuses primarily to consumers who want to play folk MGO. MGO
must have betting, items, special uniform shopping.
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