Tài liệu Completing the system of distribution channels of pre paid vinaphone services in the personal customer board

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN PHƯƠNG NGA COMPLETING THE SYSTEM OF DISTRIBUTION CHANNEL OF PRE-PAID VINAPHONE SERVICES IN THE PERSONAL CUSTOMER BOARD HOÀN THIỆN HỆ THỐNG KÊNH PHÂN PHỐI SẢN PHẨM DỊCH VỤ VINAPHONE TRẢ TRƯỚC TẠI BAN KHÁCH HÀNG CÁ NHÂN LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN PHƯƠNG NGA COMPLETING THE SYSTEM OF DISTRIBUTION CHANNEL OF PRE-PAID VINAPHONE SERVICES IN THE PERSONAL CUSTOMER BOARD HOÀN THIỆN HỆ THỐNG KÊNH PHÂN PHỐI SẢN PHẨM DỊCH VỤ VINAPHONE TRẢ TRƯỚC TẠI BAN KHÁCH HÀNG CÁ NHÂN Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. TRẦN HUY PHƯƠNG HÀ NỘI - 2019 WARNING I, Nguyen Phuong Nga, graduate student of MBA15 course 2017-2019 of the Faculty of HSB, Hanoi National University, thesis "Completing the system of distribution channel of prepaid Vinaphone services in the Personal Customer Departement” by me under the guidance of Dr. Tran Huy Phuong. I guarantee that all data used, research in this thesis is honest and the result of my own research. The data and information in this thesis have not been used to protect a degree, the information cited in the thesis is clearly stated. Hanoi, May 30, 2019 The reassurer Nguyen Phuong Nga THANK YOU With deep affection and sincerity that allow me to deeply thank all individuals and collectives who have facilitated the process of studying and researching this thesis. In particular, I would like to express my deep gratitude to Dr. Tran Huy Phuong, who directly guided and helped me a lot during the research and completion of the thesis. I would like to express my gratitude to all HSB faculty members of Hanoi National University for teaching and encouraging and facilitating me during my studies at the University as well as the completion of this thesis. . I would like to express my sincere thanks to the Board of Directors, colleagues of the Personal Customer Department, the Sales Control Center for facilitating and helping me to complete this thesis. Although the author has made great efforts, the thesis is difficult to avoid certain limitations and shortcomings. Due to time limits and professional qualifications, the thesis is inevitable. We hope to receive the sincere advice and contributions from teachers, teachers, friends and colleagues to make the thesis more complete. Once again, thank you! Hanoi, June 20, 2019 Implementer Nguyen Phuong Nga CATEGORY LIST OF ABBREVIATIONS LIST OF TABLES, MODELS, TABLES INTRODUCTION............................................................................................................... 1 1. The urgency of the topic ........................................................................................ 1 2. Research overview ................................................................................................. 2 3. Research objectives ................................................................................................ 3 4. Research methods................................................................................................... 3 5. Subjects and scope of research ............................................................................... 4 6. Contents of the thesis ............................................................................................. 4 CHAPTER 1: OVERVIEW OF DISTRIBUTION CHANNEL ..................................... 6 1.1. Distribution channel ............................................................................................ 6 1.1.1. Concept ...................................................................................................................... 6 1.1.2. Roles and functions of distribution channels........................................................... 6 1.1.3. Distribution channel classification ........................................................................... 8 1.1.4. Distribution channel structure ................................................................................ 10 1.1.5. Member of distribution channel ............................................................................. 14 1.2 Management of distribution channels ................................................................ 19 1.2.1. Concept of distribution channel management ....................................................... 19 1.2.2. Role of distribution channel management ............................................................. 21 1.2.3. Content of distribution channel management........................................................ 22 1.3. Factors affecting distribution channels ............................................................. 33 1.3.1. Group of internal factors ......................................................................................... 33 1.3.2. Group of external factors ........................................................................................ 34 1.3.3. Evaluating actors participating in the distribution channel system ...................... 36 1.4. Criteria for evaluating distribution system system ........................................... 38 CHAPTER 2: CURRENT SITUATION OF DISTRIBUTION OF PREPAID VINAPHONE SERVICES IN THE PERSONAL CUSTOMER BOARD. ................ 41 2.1. Overview of personal customer board .............................................................. 41 2.1.1. The process of formation and development of enterprises .................................. 41 2.1.2. Organizational structure of individual customer committee ................................ 42 2.1.3. Business results of the Personal Customer Division for the period 2015-2018 .. 45 2.2. Current situation of distribution channel of vinaphone prepaid products at the personal customer department.................................................................................. 52 2.2.1. VinaPhone mobile service distribution channel structure .................................... 52 2.2.2. Members in the distribution channel of the Personal Customer Department ..... 55 2.2.3. Contribution of distribution channel members...................................................... 57 2.2.4. Overall assessment of distribution channels.......................................................... 59 2.3. Current situation of distribution channels of vinaphone prepaid products at the personal customer department.................................................................................. 60 2.3.1. Select member of distribution channel .................................................................. 60 2.3.2. Encourage members in the channel to work ........................................................ 61 2.7 Commercial discount rates for channels ............................................................ 62 2.3.3. Evaluate channel members .................................................................................... 63 2.3.4. The impact of the network transfer campaign to maintain the MNP number to the distribution channel ........................................................................................................... 64 2.4. General evaluation on the organization of distribution channel in the personal customer board ......................................................................................................... 66 2.4.1. Advantages .............................................................................................................. 66 2.4.2. Defect ....................................................................................................................... 67 2.4.3 The development of distribution channels of competitors. ................................... 68 2.4.4. The cause exists in the management of distribution channels.............................. 69 CHAPTER 3: SOME SOLUTIONS TO COMPLETE OF DISTRIBUTION CHANNELS OF VINAPHONE PREPAID PRODUCTS AT THE PERSONAL CUSTOMER BOARD...................................................................................................... 72 3.1. Orientation in business of personal clients ....................................................... 72 3.1.1. Forecast of influencing factors ............................................................................... 72 3.1.2. Business goals and orientations of the Personal Customer Department ............ 77 3.2. Some solutions to complete the distribution channel in the personal customer board. ........................................................................................................................ 78 3.2.1. Complete the model to provide services ................................................................ 78 3.2.2. Create close relationships with members in the distribution channel .................. 78 3.2.3. Adjust incentive policies......................................................................................... 80 3.2.4. Promote mixed promotion policies ........................................................................ 83 3.2.5. Some other support solutions ................................................................................. 85 CONCLUDE ..................................................................................................................... 82 REFERENCES .................................................................................................................. 84 Appendix 1: Table of evaluation criteria for quality of Retail points care .................... 86 Appendix 2: Questionnaire survey and assess customers' distribution channels VinaPhone. ......................................................................................................................... 88 LIST OF ABBREVIATIONS VTTT: Provincial and City Telecommunications VNPOST: Provincial and Municipal Post Offices DVGTGT: Value-added services DVGT: Value service DBL: Retail point P&T: Post and Telecommunications LIST OF TABLES, MODELS, TABLES Figure 1.1: Types of distribution channels ...................................................................... 8 Figure 1.4: Direct distribution channel format.............................................................. 13 Figure 1.5: Indirect distribution channel format ........................................................... 13 Figure 1.6: Mixed distribution channel format ............................................................. 14 Figure 1.7: Members of the distribution channel .......................................................... 14 Figure: 1.8. Administration distribution channel .......................................................... 22 Figure 1.9: Manage distribution channels ..................................................................... 23 Form. 1.10. Select channel members ............................................................................ 23 Figure 2. 1: Organizational structure of the Personal Customer Department ............... 44 Table 2.1: Successful call setup rates in recent years ................................................... 45 Table 2.2: Data on performance of yearly targets of the Personal Customer Department ..... 47 Figure 2.2: Subscription on the Personal Customer Department network for the period 2015-2018...................................................................................................................... 48 Figure 2.3: Revenue from Personal Banking Department for the period 2015-2018 ... 49 Figure 2.4: Market share of the Personal Customer Department compared to the whole Company. ..................................................................................................................................... 51 Figure 2.5: Market share of the Personal Customer Department compared to other networks ........................................................................................................................ 51 Figure 2.6: Diagram of distribution channel system at the Personal Customer Department .................................................................................................................... 52 Table 2.4: Statistics of distribution channels of the Personal Customer Department ... 56 Figure 2.7: Number of stores over the years ................................................................. 57 Table 2.5 Revenue contribution from channels (only for prepaid service revenue). ........... 57 Table 2.8 Discount rate for level 1 agents .................................................................... 62 INTRODUCTION 1. The urgency of the topic Currently, in the telecommunications market in Vietnam, there is a fierce competition between three operators: Vinaphone, Mobiphone, and Viettel; Vinaphone's mobile market share ranks second after Viettel network. VinaPhone's main competitor, Viettel, still retains its dominant position with 52% market share. Market share of the Personal Customer Department compared to other networks To gain the market share of lost Vinaphone, first of all, it is necessary to perfect the system of distribution channels of Vinaphone prepaid products at the Personal Customer Department. Distribution system with the role of linking manufacturers with consumers, it affects profit, price, as well as other benefits for consumers when choosing quality products, Price is suitable for demand ... Therefore, the distribution channel becomes one of the effective means of competition VinaPhone is one of three mobile service providers with the largest market share in Vietnam, in which the Personal Customer Department manages the northern region. Recognizing the role of distribution channels in modern business, in the past time, the Personal Customer Department has paid much attention to this issue. To ensure the mission and business of distribution system of VinaPhone services are covered widely, meeting the demand of using social services. 1 However, the application of the theory of distribution channels in practice is inadequate in view of marketing, the system of distribution channels is still inadequate, the organization of distribution channels is overlapping, taking advantage of the old distribution channels VNPT has many shortcomings, not keeping up with the current situation after dividing the Post and Telecommunications. Moreover, the direct competitor is Viettel Telecom Company of Military Telecom Group which has joined the market since the end of 2007 and now has more than 50% market share of mobile services in Vietnam. This shows that units that organize well the distribution channel will achieve high business results. Therefore, the study of perfecting management of VinaPhone service distribution channel is an urgent requirement now. For this reason, I chose the topic "Completing the system of distribution channels of Vinaphone prepaid products at the Personal Customer Department" as the research topic. 2. Research overview Distribution channels and management theory of distribution channels in business of product and service suppliers have been mentioned a lot in documents and research works in many countries in the world as well as in Vietnam. . In the curriculum of marketing management, it is mentioned the distribution channel. For example, Philip Kotler, who is considered the father of modern marketing, said that the product distribution channel is one of the four variables of mixed marketing that businesses need to build to deploy marketing efforts to the market target. The development and good organization of distribution channels help businesses build and maintain a competitive advantage in the long term. Because, distribution channel is a collection of external relations between independent businesses in business. Creating and developing a distribution channel system requires a lot of time, effort and intelligence so it is not easy for other businesses to follow. In Vietnam, in recent years, there have been some researches on distribution channels of some products and services such as: - Topic: "Improving the distribution channel system of Vietnam Post Corporation" by Nguyen Thi Thanh Hai analyzed and synthesized theoretical issues 2 related to the management of distribution and distribution channels. The actual price of distribution channel of telecommunications products of Vietnam Post and Telecommunications Corporation including VinaPhone's mobile products. The author has proposed a model of distribution channel system and sales mechanism applied in the distribution channel system of Vietnam Post Corporation, but has not focused on specific research on VinaPhone mobile products. - Subject: "Business development of mobile service enterprises in Vietnam", Doctoral thesis of Hanoi National Economics University in 2008 by Le Ngoc Minh. The thesis has assessed the current business situation of mobile information enterprises in Vietnam, applying business theories of enterprises to propose solutions for business development, however, does not specifically address the specific characteristics of the mobile product's distribution. Along with many other topics that mention distribution channel management, however, the organization of distribution channels for a specific product, VinaPhone mobile service, has no topic. With the desire to have organized research and improve the distribution channel of specific products, I chose this research topic. 3. Research objectives The general objective of the thesis is to propose solutions to improve the system of distribution channels of products and services at the Personal Customer Department. Specific objectives include: - Synthesis of the theoretical basis of distribution channels. - Evaluate the status of the system of distribution channels of Vinaphone prepaid products at the Personal Customer Department - Proposing solutions to complete distribution channels of Vinaphone prepaid products at the Personal Customer Department 4. Research methods The thesis using main research methods is: Research methods at the table: This is a common method to carry out initial assessment. Authors can collect available data within your company or external sources. Information can be in paper form or digitalized on issues such as: national 3 economic overview, market survey report, company profile, sales tracking data, trade statistics, consumer survey ... Field survey method: Is the method of direct observation on the object of the survey right at the place where the processes that the researcher can use as an argument. This is a method that requires sophisticated observation of the researcher. The observation of survey objects is divided into many types: according to the level of preparation, according to the relationship between the observer and the observed, according to the purpose of grasping the nature of the observed object, according to the purpose of treatment information, according to the continuity of observation and ultimately according to the means used in the observation. Expert method: Expert method is the method of using the intelligence of a team of highly qualified experts to consider and identify a complex scientific or practical event, to find make the optimal solution for such events or evaluate a scientific product. 5. Subjects and scope of research Research subjects: System of distribution channels for Vinaphone prepaid products at the Personal Customer Department Research scope: - About time: The thesis focuses on research on organization of distribution channels, management of distribution channels in the period of 2015-2018. - About space: The scope of 28 northern provinces is managed by the Personal Customer Department. Regarding content: Focus mainly on researching the organization and management of prepaid channel system of VinaPhone service in the Northern region. 6. Contents of the thesis In addition to the introduction and conclusion, the dissertation is structured into 3 chapters including: Overview of research situation - Chapter 1: Overview of distribution channels. 4 - Chapter 2: Current situation of distribution channels of Vinaphone prepaid products at the Personal Customer Department - Chapter 3: Some solutions to complete of distribution channels of prepaid products at the Personal Customer Department 5 Vinaphone CHAPTER 1 OVERVIEW OF DISTRIBUTION CHANNEL 1.1. Distribution channel 1.1.1. Concept From a marketing standpoint, a distribution channel is a collection of independent, interdependent businesses and individuals involved in the process of bringing goods from producers to consumers. In other words, this is a groups of organizations and individuals that carry out activities make products or services available to consumers or industrial users so they can buy and use. Distribution channels create a flow of goods from producers through or through trade intermediaries to end consumers. All participants in the distribution channel are called members of the channel. Trading intermediaries located between producers and end consumers are important members in many distribution channels. Distribution channels exist outside the enterprise, it is not an internal organizational structure of the enterprise. Distribution channels include businesses and individuals who are involved in the negotiation process of bringing goods or services from producers to end-users who have the function of negotiating, buying and selling, transfer of ownership of goods and services. Other companies such as transport companies, banks, warehouses, insurance companies, advertising agencies ... implementing auxiliary functions are not members of the channel. 1.1.2. Roles and functions of distribution channels 1.1.2.1. The role of distribution channels in business operations of enterprises The distribution channel plays a very important role in bringing products from the place of production to the end consumers so as to satisfy customers' needs and wants in terms of quantity and type of products, time and time. space and place provided, the quality of the product and the price that customers can accept. [6] The distribution channel has become an important competitive tool in the long term when it becomes a part of corporate assets, creating a competitive advantage that distinguishes between businesses. Achieving advantages of superiority of 6 products is becoming more and more difficult. Strategies to cut prices are not only quick and easy to be copied by competitors but also lead to a reduction and loss of profitability. The distribution channel enhances the ability to link and cooperate among individuals and organizations operating in the areas of production and distribution of consumption in a common purpose. Providing products and services to end-users and satisfying their own goals. 1.1.2.2. Function of distribution channel The most common basic function of all distribution channels is to help businesses deliver products to consumers at the price they can buy, the right category they need, at the right time and at the location they require. The distribution channel has seven basic functions [6]: Exchange and purchase functions: This is the most common function of the distribution channel and the essence of this function is the conduct of trading activities. The purchase function involves the search and evaluation of the value of goods and services while the selling function is related to the consumption of the product. It includes the use of personal sales, advertising and other marketing methods. Standardization and sorting functions: This function involves arranging goods according to categories and quantities. This makes trading easier because it reduces the need for testing and selection. Transport function: Goods are moved from one point to another, thereby resolving the spatial conflict between production and consumption. Storage and reserve function: It is related to storage of goods and services in warehouses and yards, providing goods and services to customers quickly and conveniently. At the same time, this is also a function to maintain a stable distribution for customers in volatile market conditions. Financial functions: Concerning the provision of cash and credit needed to transport, store and promote sales. Risk sharing function: Solving uncertainty in product distribution process in 7 the market. Information function: Is providing information from all channel members and opinions from customers outside the market. Distribution channels are the way in which products and services are circulated from manufacturers to consumers. As a result, it overcomes the barriers of time, location and ownership of products and services between producers and those who wish to use them. 1.1.3. Distribution channel classification Channel 1 Direct channel Producer Customer Indirect channel Channel 2 Producer Retailer Customer Wholesale Retailer Customer Wholesale Retailer Customer Channel 3 Producer Channel 4 Producer Agency (Source: Management of distribution channels - Associate Prof. Dr. Truong Dinh Chien) Figure 1.1: Types of distribution channels There are two types of distribution channels: direct distribution and indirect distribution: 1.1.3.1. Direct distribution channel Direct distribution channel is the distribution channel that members of the channel only include producers and end consumers (Figure 1.1, channel 1). In this distribution channel, the manufacturer directly performs the distribution function to the end consumer. Manufacturers provide services through their direct selling points 8 or through direct sales force. With the strong development of IT ( Information Technology) has formed a non-cash payment method, developing many forms of direct channels such as vending machines, telephone sales, mail order, online sales internet ... has allowed manufacturers and suppliers to minimize contact with customers and still sell effectively. Manufacturer, service provider Sales at production sites, shops, representative office valves ... Phone Internet Letter Final customer (Source: Management of distribution channels - Associate Prof. Dr. Truong Dinh Chien) Figure 1.2: Types of direct distribution channels 1.1.3.2. Indirect distribution channel Indirect distribution channel is a form of distribution channel in which the manufacturer or supplier of the sales service gives the final buyer through distribution intermediaries (channels 2, 3, 4, Figure 1.1). Types of intermediaries in indirect distribution channels In the indirect distribution channel, there are the following intermediaries: agents, brokers, wholesalers, retailers, distributors ... Choosing the right types of intermediaries in the distribution channel will bring high efficiency in business, minimizing the risks that businesses face. In 9 contrast, mistakes in the selection of distribution centers often have severe consequences in business operations and need a long time to overcome. The fact has shown that many "dead" products are due to mistakes in distribution strategies, choosing the wrong distribution center. Depending on each business and distribution intermediary, some evaluation criteria can be selected: - Doing business in the same market that the business is targeting; - Having the ability and conditions to exploit the market that businesses are targeting; - Having a full sales force with qualified training skills and sales; - Having an independent distribution network; - Having policies to promote trade in accordance with the policies of enterprises; - Having strong financial ability; - Ability to provide after-sales service; - Product development policies in line with the policies of enterprises (suitable in franchising business); - Do not trade in competitive products. - Having enough conditions for warehouses and yards to store necessary quantities of goods; - Having treasures suitable to types of goods; - Essential market coverage conditions; - Having a financial reputation; - Provide appropriate management for businesses; - Prestige and position in the market; 1.1.4. Distribution channel structure The process of distributing distributions is also the process of deciding who will participate in the distribution stages and as a result a channel structure will form. Therefore, the distribution channel structure is a group of members of the distribution channel whose collection of distribution is divided among them. Different channel structures have a way of dividing distribution jobs for different 10 members. Distribution channel structure is usually determined through three variables: length, width of distribution channel system and intermediate type at each level (Figure 1.3) Distribution channel structure Length of distribution channel Distribution channel width Intermediate forms Figure 1.3: Distribution channel structure 1.1.4.1. Length of distribution channel - The length of the distribution channel is first determined by the number of intermediate levels present in the channel. One-level channel has one intermediate level, two-level channel has two intermediate levels, three-level channel has three intermediate levels. In addition, there are channels with more intermediate levels. However, from the manufacturer's point of view, the more levels of the channel, the less likely it is to control its operation. Based on the structure of the parts of the channel, the number of channels is classified as follows: - Non-level channel (also known as direct channel): is the channel that producers sell their products directly to consumers. The sales method also has many types: organizing stations, representative offices, by mail, by phone and right at the production place (channel 1, figure 1.1); - One-level channel: is a channel with an intermediary between producers and consumers (retail) (channel 2, figure 1.1); - Two-level channel: is a channel with 2 intermediaries between producers and consumers (wholesalers and retailers) (channel 3, figure 1.1); - Three-level channel: is a channel with 3 intermediaries between producers and consumers (usually there is a big wholesale agent sold to small wholesale agents, then to retailers) (channel 4, figure 1.1 ). 11