VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Tran Thuy Linh SOME RECOMMENDATIONS TO DEVELOP THE MARKET SHARE, THE CASE OF ILA VIETNAM IN HANOI MASTER OF BUSINESS ADMINISTRATION THESIS Hanoi - 2011 VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Tran Thuy Linh SOME RECOMMENDATIONS TO DEVELOP THE MARKET SHARE, THE CASE OF ILA VIETNAM IN HANOI Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Nguyen Thi Phi Nga Hanoi - 2011 TABLE OF CONTENTS ACKNOWLEDGEMENTS .i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENTS .vi LIST OF FIGURE viii LIST OF TABLE .ix INTRODUCTION 1 Research Problem Objective and aim of thesis Scope and scale of thesis Methodology Data resources CHAPTER 1: LITERATURE REVIEW Market share 1.1 1.1.1 Definition 1.1.2 Ways to increase market share 1.2 Consumer decision making process 1.2.1 Information search 1.2.2 Source of information 1.2.3 Information search on the Internet 1.3 Customer Value, Satisfaction, and Loyalty 13 1.3.1 Customer Value 14 1.3.2 Total Customer Satisfaction 17 1.3.2.1 Customer expectation 18 1.3.2.2 Measuring Satisfaction 18 1.4.Marketing mix 19 1.4.1 The product 19 1.4.2 Promotion mix 27 1.4.2.1 Advertising 28 1.4.2.2 Sales promotion 31 vi 1.4.2.3 Public relation 33 1.4.3 Place 34 1.4.4 Price 39 CHAPTER 2: THE CASE OF ILA VIETNAM IN HANOI 41 2.1 Introduction 41 2.2 Business analysis 44 2.2.1 Analysis of visitor and sources of information channel 44 2.2.3 Product analysis and comparison 47 2.2.3 New sales analysis 55 2.2.4 Re-enrolment and customers‟ loyalty analysis 57 2.2.5 Promotion mix analysis 58 2.2.6 Place 63 CHAPTER 3: CONCLUSION AND RECOMMENDATIONS 67 3.1 Conclusion 67 3.2 Recommendations 69 3.2.1 The information search on the Internet 69 3.2.2 Building Customer Value, Satisfaction, and Loyalty 70 3.2.3 Marketing mix 73 3.1 Product 73 3.2 Promotion mix 77 3.3 Place 81 REFERENCES 83 Appendix 85 vii LIST OF FIGURE Figure 1-1: Decision making process Figure 1-2 Information sources for Purchase Decision Figure 1-3: Customer delivered value 14 Figure 1-4: Levels of product 20 Figure 1-5: The tangible-intangible continuum of goods and services 21 Figure 1-6: Steps in new product development process 23 Figure 1-7: Vertical marketing system model 36 Figure 2-1: Sales volume of ILA Vietnam in Hanoi since 2007 56 viii LIST OF TABLE Table 2-1: Number of visitor from 2008 to2010 45 Table 2-2: Sources of information that customer knew ILA from 45 Table 2-3: Programme, schedule and fee of English course in ILA Hanoi 48 Table 2-4: Programme, schedule and fee of English course in Apollo Centre 50 Table 2-5: Programme, schedule and fee of English course in Language Link 51 Table 2-6: Book using analysis 54 Table 2-7: The number of new sales volume 55 Table 2-8: Re-enrolment in ILA Hanoi 57 Table 2-9: The role of advertising is more critical in Hanoi 59 Table 2-10: Types of advertising and frequency 59 Table 2-11: Student statement by district and areas 64 ix INTRODUCTION Research Problem ILA Vietnam in Hochiminh City is a very famous English Training Centre Everyone can recommend friends and relatives to ILA to study when they are asked There are six training centres in HCMC, one in Vung Tau, one in Da Nang and one in Hanoi The centre in Hanoi was established in 2007 This centre has a big problem with the market share development Although Hanoi Training centre has more than three years running, it now still has negative profit The problem is that ILA Hanoi has to compete with many big competitors such as Apollo, Language Link, ACET and British Council Hanoians are familiar with these centres and know little about ILA Vietnam Besides, ILA still uses one marketing strategy for both northern and southern area With those research problems, the thesis will be conducted with the purpose to improve the market share then to get more profit for ILA Vietnam in Hanoi for the period of 2011-2016 The objectives will include: Study the comments of customers in Hanoi about ILA‟s products and marketing activities; analyse business performance of ILA in Hanoi; find out the problems occurring in the Hanoi Centre; and give the recommendations to develop the market share based on applying the suitable marketing mix to Hanoi market Objective and aim of thesis Those research problems will be discovered with the purpose to improve the market share then to get more profit for ILA Vietnam in Hanoi for the period of 2011-2016 The objectives will conclude: - Study about marketing performance of ILA Hanoi - Find out the problem occur in the ILA Language training centre in Hanoi - Study comments of customers in Hanoi about ILA products and marketing activities then build up the suitable marketing program to increase market share - Give the recommendations to develop the market share Scope and scale of thesis This research will be conducted based on some major objects are: - Current customers of ILA Vietnam in Hanoi - Visit customers, students of University, secondary and high schools, parents of primary students - Staffs and manager in Hanoi Methodology The thesis used some method of research such as surveys potential customers, existing customers, ILA‟s staffs and analyse reports of the company One hundred customers were asked to collect information of their need in studying English and the source of information that they used to find and select an English Training centre The company‟s reports were used to analyse the business performance such as the sales number, the number of visitors and number of students The existing students were asked for their satisfaction on courses, customer services, books, teachers, teaching assistants and if they would recommend their friends and relatives The comments of customers were used to measure the effectiveness of marketing activities of ILA in Hanoi The more suitable marketing strategy could help ILA to attract more customers and expand its market share Data resources The primary data was gathered from direct interviews and discussions with the customers, students, visitors, parents of students, staffs and managers of ILA The second sources of the thesis was secondary data such as books, newspapers, internal and external reports and the Internet CHAPTER 1: LITERATURE REVIEW The literature included theory of market share, ways to increase market share, information search and building customer loyalty, marketing mix This section will start off by explaining the market share concepts 1.1 Market share 1.1.1 Definition There were some definitions of market share as the following: "Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity." By Farris, Paul W.; Neil T Bendle; Phillip E Pfeifer; David J Reibstein (2010) Marketing Metrics: The Definitive Guide to Measuring Marketing Performance Another author of investopedia said that market share was the percentage of an industry or market's total sales that was earned by a particular company over a specified time period According to this author, market share was calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period This metric was used to give a general idea of the size of a company to its market and its competitors “Market share is the percentage of a company‟s sales of a particular product or service in a given area It can be calculated in terms of revenue or of units sold.” By Author(s) from Penetrating.net “In very simple terms, market share is the number of loyal customers your business or company has been able to retain over a long period of time” by Tito Philip, Jnr It was quite different from other definition when mentioning the loyal customers This author thought that no one else but loyal customers were the real market share of the companies .. .VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Tran Thuy Linh SOME RECOMMENDATIONS TO DEVELOP THE MARKET SHARE, THE CASE OF ILA VIETNAM IN HANOI Major: Business Administration... business performance of ILA in Hanoi; find out the problems occurring in the Hanoi Centre; and give the recommendations to develop the market share based on applying the suitable marketing mix to. .. share then to get more profit for ILA Vietnam in Hanoi for the period of 2011-2016 The objectives will include: Study the comments of customers in Hanoi about ILA? ??s products and marketing activities;