topic establish the marketing environment and service products for best express branch in cu chi district

MARKETING PRINCIPLES - MKT101INDIVIDUAL ASSIGNMENTFull name: Trần Ngọc Quỳnh NhiStudent ID: SS170586Class: IB1702Lecture: Nguyễn Thị ThớiTOPIC: Establish the marketing environment and se

MARKETING PRINCIPLES - MKT101INDIVIDUAL ASSIGNMENT

Full name: Trần Ngọc Quỳnh NhiStudent ID: SS170586Class: IB1702

Lecture: Nguyễn Thị Thới

TOPIC: Establish the marketing environment and service products for Best Express Branch in Cu Chi District

Buyer (user) Decision Process for New Products.

• IV Define the business market and explain how business markets differ from consumer markets and competitors.

• V Provide an effective business model for Best Express if they want to extent their branch in Cu Chi District.

1 General introduction:

- BEST Express entered the Vietnamese market in 2019 with the acquisition of Vinacapital Vietnam, and swiftly took advantage of the existing service network in the home market, laying asolid foundation for the company's future growth.

- Best Express Vietnam has expanded its network to 63 provinces and cities across the country, achieving service coverage of up to 99 percent with a system of 7 large-scale sorting centres and 23 large-scale sorting centres after nearly two years of nonstop building and expansion Small-scale sorting centres with a processing capacity of over 1.8 million orders per day are scattered around the country.

2 Development:

- BEST Express has 30 large and small automatic sorting centres distributed evenly across the country, with a total area of warehouses exploited of nearly 8 hectares BEST Express' service network covers all 63 provinces and cities, with a capacity of handling over 1.8 million orders per day and delivering hundreds of thousands of parcels per day.

- The classification centre in Ho Chi Minh City, which is presently the largest BEST Inc classification facility in Southeast Asia, is erected on a total area of 40,000 m2 with a total expenditure of $8 million USD.

- In order to optimise the user experience, BEST Inc creates a diverse ecosystem that supports allcustomer needs with 7 types of services:

1 Express delivery (Best Express): handle millions of orders every day including fast delivery and flexible payment methods COD, proof of delivery POD and insurance quotes.

2 Cargo service (Best Freight): a leading freight service that allows LTL and Full Trucking (FTL) to deliver door-to-door delivery by truck.

3 Best Supply Chain: the leading 3PL intelligent supply chain service.

4 Information storage computing platform (Best Cloud): proprietary computing platform to support order management.

5 E-commerce logistics (Best Global): present in 15 countries and regions throughout North America, Europe and Asia.

6 Truck service (Best Ucargo): application that provides truck service.

7 Financial services (Best Capital): financial services that support the BEST ecosystem.

4 BEST EXPRESS in Cu Chi:

- BEST EXPRESS provides two key services at its Cu Chi branch: express delivery and franchised post office.

- For the express delivery service, the network has been expanded across the country to assist customers and online retailers in conducting business safely and efficiently The time between delivery and receiving of items is reduced, yet safety and efficiency are maintained.- Franchised post office service model: BEST Inc has purchased Vinacapital Vietnam and assigned the deployment responsibility to domestic investors based on the criterion "Empowering ownership, enriching life." Investors who join this fast delivery franchise model can try their hand at launching a business and building a local delivery network in a short amountof time at the lowest possible cost.

a Company:

Employees - putting the right people in the right jobs and retaining them for the long term by keeping them motivated is vital to a company's strategic planning process Training and development acts as a guide for the company's employees, to ensure the workforce is always up to date in terms of skills and knowledge A qualified and competent workforce can help a company achieve success without much effort.

b

Marketing intermediaries:

BEST EXPRESS partners always launch campaigns to help the company promote its services to consumers in many different ways They include resellers, physical distribution companies, marketing service agents, and financial intermediaries Resellers are distribution channel companies that help a company find customers or sell to them It can be promoted in many formssuch as using internet means, discount vouchers when using BEST EXPRESS's services,

c

Competitors: According to the marketing principle, a firm must deliver higher value and

satisfaction to its consumers than its rivals in order to be successful This also leaves BEST EXPRESS marketers to do more than simply adapt to the needs of their target consumers

BEST Express funded more than 10 trips with Hope Fund (VNExpress) between May and June 2021 to bring medical equipment and essentials to the provinces of Bac Giang, Bac Ninh, and Dien Bien, which were badly impacted by the epidemic.

BEST Express will continue to serve the community with a new mission BEST Express will also contribute to the Hope Fund's project to construct ten concrete bridges in the Mekong Delta, which will aid economic growth.

BEST Express - always sharing for a strong and vibrant community, giving a better life to the Vietnamese people.

create lasting relationships with them Each market has its own characteristics, requiring the company to carefully study the consumption behaviours and needs of customers when using the services they provide.

f

Suppliers: Currently, BEST Express is a partner of the 4 largest e-commerce platforms in

Vietnam "Lazada (May 2017), Sen Do (July 2018), Tiki (October 2019), Shoppee (May 6/monthly) 2020)” with reputable domestic shopping channels There are more than 30,000 online business partners.

SAAS: haravan, BOXME, TRUST sales, PANCAKE, SAPO, TV shopping: VTV HYUNDAI, SCJ, VGS SHOP

And these can be considered as product sources for BEST EXPRESS to operate their services.

6 Macro Environment:a.Technology:

At BEST Express's sorting centres, data is processed The whole performance is tightly monitored and optimised thanks to Big data data analysis technology on the cloud computing platform BEST Cloud and high quality picture processing technology

The use of weighing technologies, automatic measurement, barcode scanners, andautomatic picture scanners helps to improve package categorization accuracy from 80 percent to 90 percent (manual sorting) The sorting efficiency is boosted by four times, resulting in a significant reduction in delivery time and improved post office network service productivity

Parcels are handled by two independent processes at the sorting centre in Cu Chi Ho Chi Minh City, depending on the weight of the item.

-High-speed, two-stage cross-belt automated sorting system to identify items, Express employs a real-time barcode recognition technology and a high-quality picture scanning camera WCS (warehouse control system) tracking technology can validate the location, procedure, and status of order processing

The device has the ability to sort 36,000 shipments every hour The Matrix automated categorization system is designed to handle packages weighing three kilograms or more

Conveyor belts in this region can handle products in a variety of quantities and sizes They will sort goods in both directions at a rate of more than 24,000 per hour 10 conveyor belts are arranged separately to support smooth rotation even during peak hours.

b.Social Environment: BEST provided 100,000 medical masks to help combat the

outbreak on April 4, 2020 1/2021, donating 400 million VND to natural disaster-stricken central regions On June 5, 2021, the Hope Fund will support more than 10 trips to carry medical equipment and needs to areas badly affected by the disease BEST Express, in particular, will continue to build 10 bridges in the Mekong Delta by the end of 2021, which will benefit more than 60,000 people while also promoting economic growth in theregion.

II Define the market characteristics and figure out what information Best Express needs to understand the importance in the marketplace for the service products offered.

- Cultural Factors Affecting Consumer Behavior: Because each country has its own culture, BEST Express must pay close attention and use extreme caution while selecting the appropriate marketing plan for the market As the number of people moving to Cu ChiDistrict grows, it becomes a melting pot of cultures from all over the country.

- One of society's most significant consumer-buying organizations is the family If one family member uses BEST Express and is happy, they are likely to promote it to other family members There are groups on social media that allow consumers to share their experiences with a company's products and services It has a significant impact on BEST

Express's image since if a bad post about the firm is made, they are likely to lose a large number of consumers.

- Personal age and life-cycle stage: This is a high-potential and profitable consumer base for the organization, especially because many individuals choose to purchase online during a pandemic.

- Lifestyle: People of the same socioeconomic class, age, or culture will have distinct lifestyles, which will lead to diverse buying demands.

- Psychological variables: Customers tend to form a set of beliefs about the product's qualities and traits, which leads to a certain picture, or belief, about it Consumer attitudeshave an impact on their purchasing decisions.

- Information Best Express must comprehend the value of the service goods it provides in the marketplace.

+ Customer offerings are the most crucial facts that BEST Express must comprehend The customer is the one who generates revenue for the business They should carefully consider what services clients desire the most, what pricing is appropriate, what are their shortcomings, and so on, in order to provide them with better services and a better brand experience

+ Aside from that, the corporation may examine other rivals to discover their strengths, limitations, and approaches to provide clients with the best pricing in the market.BEST Express is not as well-known as its rivals (Fast Delivery, Economical delivery, ViettelPost, etc.), hence something fresh is needed to raise brand recognition They can run a marketing campaign, endorse a product, run promotions, and so forth.

+ As a consequence, BEST Express will be able to increase their market share, gain more clients, develop their business, and strengthen their position in the express delivery sector.

(user) decision process for a new product.

Steps in the marketing research process:

- BEST Express should do research to learn more about consumer requirements and wants,the market, and other issues impacting the organization In the research process, there are five basic steps.

- To begin, define the problem and the opportunity in detail It implies they must determinewhat challenges and possibilities exist both within and beyond the organization An internal issue might be a poor plan, a lack of trained personnel, or faulty machinery, among other things Customers' unfavorable reactions, as well as economic and financial difficulties, are external factors

- The fast-growing express delivery market, as well as various innovative technologies thatenable the organization minimize shipping costs, are the key opportunities today As a consequence, they will be able to deliver better customer service, lower expenses, and increase revenues Furthermore, their market share and position in the industry will improve.

- The following stage is to draft a market research strategy A corporation must perform a survey to learn what consumers want from its services, what strengths they have, and what their workers anticipate from the organization in order to design a flawless research strategy BEST Express should go through vital data before formulating a strategy based on it In addition, the corporation must consider financial difficulties in order to draft a strategy that is most appropriate for the company's financial situation.

- Data collecting is the third phase Data is required for a plan to be valid and useful (numbers) The figures will reveal how precise the strategy is Data collecting is a crucial part of the research process since it yields insights that will affect marketing strategy.- The fourth stage is to examine all of the information Examining, cleaning, converting,

and modeling data with the objective of emphasizing relevant information, drawing conclusions, and assisting decision-making is known as data analysis Databases are used by marketers to extract relevant information about client trends, attributes, and habits.

- The drafting of the report and implementation of the research are the last steps The entireeffort should be documented in a written report so that it may be easily referenced by anyone who were not involved in the research

Steps in b uyer s decision process for a new product :

- The first step in the buyer decision process is the need recognition phase Here the consumer recognizes a need or problem and feels there is a difference between some actual state and some desired state They try to find the right services to satisfy their needs.

- This leads to the second stage of finding shipping service information Consumers try to learn as much as possible about brands of high-quality and interactive services like Best.- In the third stage, consumers use the information to rate Best's rival services.

- The buyer then makes a purchase decision in the fourth stage by selecting the service thatbest suits their needs.

- The fifth stage is the evaluation after the delivery service experience, and it is the most important Depending on the level of satisfaction or dissatisfaction, consumers will either become loyal customers or actively stay away from the brand and ask others to do the same through online reviews and word of mouth

IV Identify the business market and explain how the business market is different from the consumer market and competitors.

- Business market definition

+ The business market is defined as the selling of products and services to other businesses to be resold or used to make other items or services for sale.

+ B2B: E-Commerce - Since Internet marketing currently is at its top level BEST Express Company’s websites allow interested parties to check out the products and services and their features and also allow them to initiate contact Specialized online directories providing information about particular industries, companies and the products and services they provide also facilitate business to business transactions

The difference between business market and consumer market and competitors

Definition Refers to organizations, enterprises, or entities that purchase goods and services for the purpose of producing additional goods and services.

Markets in which firms or manufacturers offer their goods or services directly to the end users.

Demand Have inelastic demand Have elastic demand.

Number of buyers

Have fewer buyers who often buy in large quantities There are a lot of buyers that buy in tiny quantities.

Buying process Have formalized buying processes whereby the purchasing process involves following the following the organization’s protocol and the complete chain of command.

Does not have formalized buying processes

Decision making Decisions are made slowly before purchases are made.

Due to the prevalence of impulsive purchases, decision-making is quick.

investments Invest heavily in capital equipment Invest heavily in marketing and promotion activities

Market segmentation

Segment their enterprises by industry, ownership, technological level, and the end market they've attained.

Organize their enterprises into segments based on demographic, behavioral, psychographic, and geographic factors.What makes BEST Express Branch in Cu Chi District different from other competitors is that the branchprovides a lot of services such as Fast Delivery, Cash on Delivery (COD), Economical Delivery, SameDay Delivery, North-South Transport, Warehousing, Franchise Post Office Best Inc – Best Express, etc.Customers can experience