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Website: http://www.docs.vn Email :1lienhe@docs.vn Tel : 0918.775.368 INTRODUCTION The research topic is improving the promotion of Q Student, a product of MobiFone Company through offering various benefits to different groups of customers. The reason for the interest in this topic is from the researcher’s situation. Like almost students in Vietnam, the researcher is very happy when three mobile operators (Viettel, MobiFone, and Vinaphone) launch a new product which is designed for only students with a lot of benefits. MobiFone is the provider which offers more benefits than the two others. However, I feel dissatisfied when I can not take full advantage of all benefits which this provider offers. For example, I use a normal mobile phone which only has the basic functions like calling and answering, sending and receiving messages; so I can not spend 35 free megabytes monthly using GPRS. I had a question: why I can not receive other benefits such as some free calling minutes? That is the original idea for my research. To start the research, there are two research questions that help the researcher broaden the content of the topic. They include: 1) how many groups are there among students according to their personal factors relating to using mobile? , 2) which kinds of promotion should we apply to different groups? One of the methodologies of this research is analyzing. Through observing the packages of some mobile operators, the researcher draws some strengths, weaknesses, and challenges that Q Student has and faces with. As a result, the researcher can suggest some recommendations to make the product better. Questionnaire is the second methodology. 200 students at National Economics University and Hanoi University of Technology were asked to fill out the form. The result of the survey provides findings on consumer behavior and characteristics on using mobiles. The researcher also interviewed 30 students among 200 students above. From their answers, there was information about their feelings on Q Student and their recommendations to improve the product. Website: http://www.docs.vn Email :2lienhe@docs.vn Tel : 0918.775.368 CHAPTER ONE INTRODUCTION OF MOBIFONE COMPANY WITH THE ISSUES RELATED TO THE RESEARCH TOPIC 1. Introduction of the company Official name Short name Official address Website Telecom Fax Vietnam Mobile Telecom Service Company VMS 216 Tran Duy Hung street, Hanoi, Vietnam http://www.mobifone.com.vn 84 - 4 -38649533 84 - 4- 38649534 Vietnam Mobile Telecom Services Company – VMS, a state-owned company under Vietnam Posts and Telecommunications Corporation, was founded in April 16th 1993, VMS has become the first GMS 900/1800 mobile telephony services provider in the brand name MobiFone, marking the beginning momentum of the mobile telephony industry in Vietnam. MobiFone specializes in building, developing network and providing mobile telephony. Currently, Vietnam Mobile Telecom Services Company has five Mobile Telecom Services Centers and one Design Factory. Head office is located in Hanoi City. Mobile Telecom Services Centre I located in Hanoi City, in charge of operating and doing business in the North. (North areas to Ha Tinh province). Address: 811A Giai Phong Road, Hoang Mai District, Hanoi City. Mobile Telecom Services Center II, located in HoChiMinh City, in charge of operating and doing business in the South (Ninh Thuan province to the Eastern areas and Ho Chi Minh City).Address: MM18 Truong Son Road, Ward 14, District 10, Ho Chi Minh City. Mobile Telecom Services Center III, located in DaNang City, in charge of operating and doing business in the Central and Highlands (Quang Binh province to Khanh Hoa and Dac Lak province).Address: 263 Nguyen Van Linh Road, Da Nang City. Mobile Telecom Services Center IV, located in CanTho City, in charge of operating and doing business in ten provinces in the Mekong Delta. Address: No.6, Hoa Binh Avenue, An Cu Ward, Ninh Kieu District, Can Tho City. Mobile Telecom Services Center V, located in Hai Phong City, in charge of operating and doing business in Website: http://www.docs.vn Email :3lienhe@docs.vn Tel : 0918.775.368 14 Northern provinces and cities. Address: No.8, Lot 28, Le Hong Phong Str, Hai Phong City. Value Added Services Center was established in October 6th 2008, its headquarter is located in Hanoi City specialized in developing, managing and doing business of value added services on GSM (including short message, short message based services, GPRS based services, 3G services and national and international roaming services). Website: http://www.docs.vn Email :4lienhe@docs.vn Tel : 0918.775.368 Chart-1: Structural organization of Vietnam Mobile Telecom Services Company The company has six main kinds of products (these products can be called packages). They are mobigold, mobicard, mobi4U, mobiQ, mobi365, mobizone. Each product is designed for one group of target customers which are suitable for customers’ needs, wants and demands. Mobigold service offers perfect voice quality, wide coverage, and more value-added services. Customers will enjoy more in daily life. This product is after-paid package. Customers just present the ID, pay activation fee (99.000 VND/ subscription) and pay the subscription fee (49.000 VND per month). Then they can get a lot of benefits such as easy to pay bill, national customer care 24 hours/ day, and enjoy some of utilities services free. With Mobicard, customers can connect in the quickest way because it offers customers such a high quality of MobiFone network at a very short time. Mobi4U connects U with friends, family and places at any time. No limit to whom and what you can connect to. It also offers a wide range of attractie services for you. MoiQ is for two kinds of customers: student and teenager with two packages Q Student and Q Teen. This is new type of call package with a lot of benefits for customers. With Mobi365, customers can have chances of calling with economical charges. They only pay 200 VND for the the ten seconds. MobiZone is the newest package designed for customers who want to call mainly within a zone. The company has received a lot of awards since 2005: Awards in 2005 - “The best mobile telephony operator in 2005” voted by E-Chip Mobile Magazine “Strong Brand 2005” voted by Vietnam Economic Newspaper. Awards in 2006 Website: http://www.docs.vn Email :5lienhe@docs.vn Tel : 0918.775.368 “The most favourite operator 2006” and “The best customer care operator 2006” voted by E-Chip Mobile Magazine under the Vietnam Mobile Awards chain “The famous brand 2006” voted by Vietnam Chamber of Commerce and Industry “Ranked 1st among TOP 10 strong and potential brand of Vietnamese economy” voted by Le Courierr du Vietnam newspaper on the occasion of APEC Summit 2006 Awards in 2007 “The most favorite mobile telephony operator 2007” voted by E-Chip Mobile Magazine - Vietnam Mobile Awards Ranked TOP 20 among 200 biggest businesses in Vietnam by UNDP TOP 10 “Strong Brand” in 2006 - 2007 voted by Vietnam Economic Newspaper Awards in 2008 “The excellent ICT business in 2008” voted by PC World’s readers “The best quality service provider in 2008” voted by Saigon Tiep Thi Newspaper “The most favorite mobile operator in 2008”; “The best customer care operator in 2008” voted by Vietnamnet cyber newspaper and E-Chip Mobile Magazine “The excellent mobile operator” granted by Vietnam Ministry of Information and Communications at Vietnam ICT Awards 2008 “The best customer care operator in 2008” granted by Vietnam Ministry of Information and Communications at Vietnam ICT Awards 2008 Awards in 2009 - “The most favorite mobile telephony operator 2009” voted by Vietnam Mobile Awards - “The best customer care operator in 2009” granted by Vietnam Ministry of Information and Communications at Vietnam ICT Awards 2009 The company has developed its market share through the growing number of subscribers during years. The chart-1 below shows the number of subscriber from 1993 to 2010 (planing). According to the chart, there is a great increase in the subscribers. Starting with only below 2.000.000 customers at 2002, the number was 11.000.000 in 2007. Website: http://www.docs.vn Email :6lienhe@docs.vn Tel : 0918.775.368 Chart-2: Subscription Growth from 1993 to 2010 Website: http://www.docs.vn Email :7lienhe@docs.vn Tel : 0918.775.368 Chart-3: Market share – Quarter I 2009 From the chart-3, MobiFone is the provider who gets the largest market share with 41%. That can be explained for some reasons. The contingent of 3000 MobiFone staff in ready to effectively meet every demand of customers. MobiFone is the first and exclusive mobile telephony services provider in Vietnam which is selected as of the best mobile operator in three consecutive years (from 2005-2008) in the Vietnam Mobile Awards Ceremony organized by E-chip Mobile Magazine, Especially in 2009, MobiFone was honored to receive the Excellent Operator 2008 granted by Vietnam Ministry of Information and Communications. 2. Introduction of the research topic 2.1 General information about the product Q student Q Student is a call package designed for only students at all universities, colleges, and training schools in Vietnam with a lot of special features. This new package was introduced on 25th August 2009 after Viettel Telecom (1st June 2009) and before Vinaphone (1st September 2009). Q Student was developed from package MobiQ which was for all young customers. This package is only valuable for student time. After that, customers’ packages would be changed to MobiQ  Benefits and regulations * Benefits Charges: Website: http://www.docs.vn Email :8lienhe@docs.vn Tel : 0918.775.368 Customers will receive VND 25000 monthly during the effective time of the subscription. If customers do not use all, they can keep extra money until the next month. Mobile Internet service Customer will receive 35 MB using internet free during the effective time of the subscription. If customers do not use all, they can keep free megabyte until the next month. Multimedia message service Customers will receive 25 free MMS during the effective time of the subscription including messages with texts or with pictures or sounds. If customers do not use all, they can not keep free messages until the next month. * Regulations Validity days will be 92 for Q Student. It remains 92 days since customer makes an outgoing call. If customer makes an outgoing call while a validity day is more than 92, it will be remained. Time out, customer will get 10 days additional for incoming calls and top-ups. Out of date, customers' calls will be barred. Disconnection validity day is 92. Out of date without any top-ups, the subscription number will be discharged. Validity days will be added in every top-up. Tariffs List Table-1 Tariffs of Q Student Type 1 a) Domestic calls Intra network First 6 second Rate (VAT included) VND 1.380/minute VND 138 bloc b) Subsequent 1 second Other operators First 6 second VND 23 VND 1.580/minute VND 158 Website: http://www.docs.vn Email :9lienhe@docs.vn Tel : 0918.775.368 bloc Subsequent 1 second Group calls c) VND 26,33 VND 830/minute First 6 second VND 83 bloc 3 a) b) Subsequent 1 second Short messages Intra network 13,83 Other operators VND 250/SMS VND 99/SMS (Source: www.mobifone.com.vn) 2.2. Introduction of the research topic Q Student is really a good package for students. It is the first time Vietnamese students have such many benefits. Mobifone and two other big operators in Vietnam, Viettel and Vinaphone have this special package designed for students. They are “I am student” of Viettel and “Talk student” of Vinaphone. Without mentioning other features, we just focus on benefits students receive from these operators and then analyze them. Table-2 Benefits offered by three operators Viettel MobiFone Vinaphone (1st Jun e 2009) (25th August 2009) (1st September Operators 2009) Benefits Extra charge VND 25000 VND 25000 VND 30000 Free Internet Mobile service Free Multimedia message service 30 MB 35MB 30MB 25 MMS 25 MMS 50 % off to 5 VND 840/minute to Website: http://www.docs.vn Email10 : lienhe@docs.vn Tel : 0918.775.368 Group call registered intra 5 registered intra network numbers network numbers. From the figures, we can see that there is no much difference among benefits which three operators offer to students. To contact with a fixed number, customers only choose one package from one mobile operator. There is still case when customers have more than one mobile phone. Whenever it is, they still need one fixed package to use. That is the chance for MobiFone to make their product different and keep students as regular customers through particular products. However, MobiFone has not attracted the whole group of students. MobiFone’s promotion has not effective in order to satisfy the whole group of customers’ needs wants and demands. MobiFone has not understood clearly different characteristics of different groups of students. Thefore, this research is carried out in order to improve the promotion of Q Student through offering various benefits to different groups of students. The starting point for this research is the two research questions: the first one is how many groups are there among students according to their personal factors relating to using mobile? , and which kinds of promotion should we apply to different groups? To answer these questions, there was a survey among 200 students at National Economics University and Hanoi University of Technology. They were asked about their behavior and demands on using mobile. The scope of this survey is 200 first year and second year students at two universities. These two universities are near together, so it is easy for the researcher to implement the survey. In addition, they are students major in two fields: economics and techonoly, so they can help the sesearcher a lot in having more ideas for the research. Along with delivering the questionnaire for students to fill out, the researcher also interviewed 30 students among 200 students above. From their answers, there was information about their feelings on Q Student and their recommendations to improve the product. The other methodology of this research is analyzing. Through observing the packages of some mobile operators, the researcher draws some strengths, weaknesses, and challenges that Q Student has and faces with. As a result, the researcher can suggest some recommendations to make the product better. Website: http://www.docs.vn Email11 : lienhe@docs.vn Tel : 0918.775.368 CHAPTER TWO THEORETICAL FRAMEWORK To understand different factors that affect consumer behavior, we first identify consumer needs, wants, and demands. The reason for studying different factors is to satisfy customers better through understanding their needs, wants and demands. Needs, wants, and demands are all the core concept of marketing. According to Philip Kotler in the book named “Principles of Marketing” (1996) 1, “Human needs are states of felt deprivation”. When you are hungry, you need to eat. However, when you are sad, you need to someone to share your sadness, for example. Different people have different kinds of needs. When you can not obtain your need, you will try your best to have it. People in different situations have their own needs. Also in this book, Philip Kotler wrote that “Wants are the form taken by human needs as they are shaped by culture and individual personality”. In this concept, there is the appearance of culture and individual personality. When we talk about culture, we think of the differences between countries or even areas in the country. For example, Vietnamese people living in the south like to eat fried chicken with sweat favor while people in the north want salty favor. That is the difference in culture between two areas in a country. Another concept that Philip Kotler introduced in this book is “demands”. He presented that “When backed by buying power, wants become demands”. Although you want to have a luxurious car or a modern laptop, but if you do not afford them, you can not obtain your demands.When studying marketing subject, the researcher found intertesting information about the customer needs, wants, and demands at the website http://www.estateofflux.com. The writer of this article showed the types of needs and demand which are listed by Kotler, Keller and Burton. “1) Stated needs A customer wants an inexpensive car 2) Real needs The customer wants a car whose operating cost, not initial price is low. 1 The main references of this part are from the book “Principles of Marketing” by Philip Kotler and Gary Armstrong, seventh editiion, published by Prentice Hall, Englewood Cliffs, New Jersey 07632. Therefore, when the researcher mentions the writer Philip Kotler, it means the information is from this book in the part “what is marketing” (page 7), and characteristics affecting consumer behavior ( page 144-154). Website: http://www.docs.vn Email12 : lienhe@docs.vn Tel : 0918.775.368 3) Unstated needs The customer expects great service from the car salesman. 4) Delight needs The customer would like the dealer to include a GPS. 5) Secret needs The customer wants friends to see her as a savvy consumer.” And then the eight types of demands “1) Negative demand Consumers dislike the product and may even pay a price to avoid it. 2) Nonexistent demand Consumers may be unaware of uninterested in the product. 3) Latent demand Consumers may share a strong need that cannot be satisfied for an existing product. 4) Declining demand Consumers begin to buy the product less frequently or not at all. 5) Irregular demand Consumers purchases vary on a seasonal, monthly, weekly, daily or even hourly basis. 6) Full demand Consumers are adequately buying all products put into the marketplace. 7) Overfull demand More consumers would like to buy the product than can be satisfied.” This list helps producers a lot in developing the suitable products for different needs, wants and demands of customers. Therefore, the task of marketers is very important. They have to spend a lot of time learning about and understanding customers’ needs, wants and demands. They must do some methods like conducting consumer research, focus groups, and customer clinics. They analyze customer complaint, inquiry, warranty, and service data. They observe customers using their own and competing products, and interview them in depth about their likes and dislikes. In short, understanding customer needs, wants, and demands in detail provides important input for designing marketing strategies. “A focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service, concept, advertisement, idea, or packaging2.” 2 Henderson, Naomi R. (2009). Managing Moderator Stress: Take a Deep Breath. You Can Do This!. Marketing Research, Vol. 21 Issue 1, p28-29. Website: http://www.docs.vn Email13 : lienhe@docs.vn Tel : 0918.775.368 Among methods to tunderstand customers’ needs, wants, and demands, we can tell the “focus group”. One of the benefits of group discussion is: “Group discussion produces data and insights that would be less accessible without interaction found in a group setting—listening to others’ verbalized experiences stimulates memories, ideas, and experiences in participants. This is also known as the group effect where group members engage in “a kind of ‘chaining’ or ‘cascading’ effect; talk links to, or tumbles out of, the topics and expressions preceding it” (Lindlof & Taylor, 2002, p. 182).” After understanding customers’ needs, wants, and demands, this part will give characteristics influencing consumer behavior. “Consumer behaviour is the study of when, why, how, and where people do or do not buy product”, footnote number one. Consumer behaivor relates to buying behavior. That is the decision process for consumers to buy a product. Decision process includes problem recognition, information search, and evaluation of alternatives, purchase decision, purchase, and post-purchase evaluation. It is also useful to know customers’ demands. According to Philip Kotler, there are four main factors. They are cultural factors, social factors, personal factors, and psychological factors. Philip Kotler summerised these factors in the following figure: Cultural Culture Subculture Social Reference groups Family Social class Roles and status Personal Age and lifecycle stage Occupation Economic situation Lifestyle Personality and Self-concept Psychologi cal Motivation Perception Learning Beliefs and Attitudes Figure-1 Factors influencing consumer behavior Website: http://www.docs.vn Email14 : lienhe@docs.vn Tel : 0918.775.368 People buy products from different brands to satisfy their needs. The way customers decide to purchase depends on these factors above. Each factor plays an important role in creating different styles among groups of customers, or even individuals. Therefore, marketers not only know about these factors, but also take them into account. According to Philip Kotler in the book “Principles of Marketing” (1996), “cultural factors exert the broadest influence and deepest influence on consumer behavior. The marketer needs to understand the role played by the buyers’s culture, subculture, and social class”. This factor seems to not affect in this research because the scope of this research is students in the same country as well as they are one kind of tarket customers which the company have their ideas of clasifying. The personal factors are relating to the research topic because of the similiarity in analyzing and styding. According to this figure, there are six small groups in personal factors: age and lifecycle stage, occupation, economic situation, lifestyle, personality and self-concept. Starting with age and life cycle stage, Philip Kotler wrote that: “people change the goods and services they buy over their lifetimes”. “Taste in food. Clothes, furniture, and recreation are often age related”. Buying is also shaped by the stage of family life cycle. Traditional family life cycle stages include young singles and married couples with children. Sony recently overhauled its marketing approach in order to target products services to consumers based on their life stages. From the writer’s idea, we can summerise these sub-factors to understand more how they affect consumers in buying decision. Occupation: a consumer’s occupation affects the goods and services bought. Blue collar workers tend to buy more rugged work clothes, whereas executives buy more business suits. Economic situation: A consumer’s economic situation will affect product choice. If economic indicator point to recession, marketers can take steps to redesign, reposition, and reprice their products closely. Lifestyle: people coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a consumer’s pattern of living as expressed in his or her psychographics. It involves consumer’s activities, interest and opinions. When used carefully, the lifestyle concept can help the marketer changing consumer values and how they affect buying behavior. Personality and self concept: each consumer’s distinct personality influences his or her buying behavior. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting response to one’s own environment. For example, coffee marketer have discovered that heavy coffee drinker tend to be high on sociability. Thus Starbucks and other coffee houses create environments in which people can relax and socialize over a cup of steaming coffee. We can now appreciate the many forces acting on consumer behavior. The consumer’s choice results from the complex interplay of cultural, social, personal, and psychological factors. Although many of these factors cannot be influenced by Website: http://www.docs.vn Email15 : lienhe@docs.vn Tel : 0918.775.368 the marketers, they can be useful in identifying interested buyers and in shaping products and appeals to serve consume needs better. CHAPTER THREE FINDINGS ON CHARACTERISTICS AND DEMANDS OF THE STUDENTS ABOUT Q STUDENT 1. General analysis 1.1 Some features that Q Student are good at understanding students’ characteristics MobiFone offered the largest number of Student Sims (375000 cards) at 300 universities, colleges, and training schools in the school year 2009-2010. This large number of Sims enables more students to have chance to use mobile phones easily and cheaply. Website: http://www.docs.vn Email16 : lienhe@docs.vn Tel : 0918.775.368 MobiFone seems to understands students’ characteristics rather well when this operator costs students only VND 99 per one intra network message. It is a fact that to save money, students are people who usually send messages to their relatives and friends. That is the cheapest way as well as the way to show their different styles. With this method, Q Student is considered to be the hottest package for students by a lot of students. Students are people who always concern charges. Knowing this characteristic, MobiFone provides students a new benefit-group call. Students register five mobiFone numbers and then they can call these numbers with cheap fees (only VND 840 per minute). This company makes students feel more comfortable when they use this special benefit. MobiFone also understands the new trend among students. That is the new generation of students seem to use more modern kinds of mobiles. Besides offering 35 free megabyte to use GPRS monthly, this operator provides students 25 multimedia messages. Thanks to this, active and modern students can send messages with interesting pictures, special sounds to their friends. Students freely express their own styles. In addition to good features of benefits that Q Student bring about, MobiFone has been the very good mobile operator when it has been voted for years as the best quality service provider or the most favorite mobile operator. These features help students believe more in selecting the mobile operator. 1.2 Some weaknesses MobiFone has when offering promotion with the package Q Student Firstly, when MobiFone gave this new package, their advertising campaign was not strong enough that many students had not known about it. When asked about this, 51 out of 100 first year students at Foreign Trade University and National Economics university said that they knew about this new package one or two months after it started. Staffs that are responsible for doing this task are not really helpful. Most students felt uncomfortable when they worked with these staffs. Some students complained that they had to wait for a long time to register while some staffs talked with their co-workers and did nothing. They did not really show their respect to customers. There were only a few people replying hundreds of students. Benefits that the company offers students monthly are not effective. Many students do not have chance to use modern mobiles to use GPRS or send multimedia Website: http://www.docs.vn Email17 : lienhe@docs.vn Tel : 0918.775.368 messages. They have other demands like talking for long hours or sending more short messages. The company has not care much about student’s needs, wants, and demands when providing benefits monthly. Students account for a large number of customers who are not only students for long time but become business men, staffs or even leader in the future. Therefore, grouping students is a necessary task to provide suitable promotion programs monthly. 1.3 Opportunities the company can get through developing Q Student The first thing that is the company can get the larger market share. We can use the figure of the year 2008 to analyze. According to General Statistics Office, the number of students at universities, and colleges, were 1675700 (that number did not include students at training schools) whereas the number of subscribers at MobiFone company was 21000000. Moreover, more and more students are using mobile phones. In recent years, the prices of mobile phones have been reducing. The needs of using mobiles to contact are increasing. These prove that students account for the large number of customers in telecommunication market. If MobiFone can attract this group of customers, they can develop more their market share. Secondly, improving Q Student is a good opportunity for MobiFone to advertise their brand name. Students are people who have much time and knowledge to study products before deciding to buy them. Once MobiFone shows its impression on students’ minds, it will be interested in by following generations as well as other group of customers. As a result, MobiFone can confirm their brand to compete well with other mobile providers. The next opportunity can be called “good effect”. If Q Student can satisfy students, it will be a good starting point for company to improve more. 1.4 Challenges MobiFone has to face when it provides a new student package 1.4.1 Challenges from the two other operators providing the same student package As mention before, a long with MobiFone the two other mobile operators Viettel with “I am student”, and Vinaphone with “Talk student”, MobiFone face with a lot of challenges. Now, let look at again the table comparing the benefits that three big mobile operators provide students. Website: http://www.docs.vn Email18 : lienhe@docs.vn Tel : 0918.775.368 Operators Viettel (1st 2009) MobiFone Vinaphone June (25th August (1st September 2009) 2009) Benefits Extra charge VND 25000 Free Internet 30 MB Mobile service Free Multimedia message service 50 % off to 5 Group call registered intra network numbers VND 25000 35MB VND 30000 30MB 25 MMS 25 MMS VND 840/minute to 5 registered intra network numbers. The first challenge is that Viettel is the first operator which offers this new student package. It started on 1st June 2009 while Q Student began more than two months later on 25th August 2009. Being the first mover, Viettel has more advantages when accessing the market earlier. To be the second operator providing the student package, MobiFone has to think of strategies which need to attract student more and make them become the regular customers. It is difficult for MobiFone when customers do not want to change their existing numbers because not many students have more than one mobile and it will take a long time to inform their friends and relatives the new numbers. Vinaphone is the latest mobile operator providing student package until now. However, this provider has some interesting benefits such as it offers students more money than the two other operators above. While MobiFone offers VND 25000, Vianphone provides VND 30000. Most students like having more money to do anything they like. Therefore, this benefit makes students feel more attractive. 1.4.2 Challenges from new mobile operators Nowadays there are some new mobile providers in the market. These new mobile providers are owned by foreign investors who have a lot of experience in the telecommunication area and much capital. Firstly, we can talk about Vietnammobile. By March 2009, The Company got GSM liciense from goverment to provide GSM mobile services. Vietnamobile is the GSM network brand that Hanoi Telecom and its partner Hutchison Telecom are operating. The target of Hanoi Telecom is to become a leading telecommunications Website: http://www.docs.vn Email19 : lienhe@docs.vn Tel : 0918.775.368 service provider in Vietnam. This new brand name has attractive packages for everyone and a lot of interesting promotion. Students can save a lot of money if they use these packages. Moreover, this operator also provides interesting promotion programs, especially the new one on 24th August 2009 named “Your companion” on the occasion of students coming back to school. Students can use VM24 nationwide with Ucard Starter Kit, enjoy special promotion for new customers, receive additional premiums like bags, pen, notes...Beside; customer will be received gifts if the customer buys Ucard Starter Kit at the POS mobility of Vietnamobile. From seeing some features of VM24 package, we will know the benefits customers get from this mobile provider:  Offer: Students can use VM24 nationwide with Ucard Starter Kit; Enjoy special promotion for new customers; Additional premiums like bags, pen, notes… (Customer will be received gifts if the customers buy Ucard Starter Kit at the POS mobility of Vietnamobile)  Details: Activate Ucard Starter Kit in above period to get total 80K airtime right after activation, in which 30K anynet, 50K for onnet: VM24 across the nation. Plus 200% for next 3 top up minimum 50.000 VND + 60 extra active days for each time.  Merchanism: To register VM24 from the Ucard Starter Kit: *243#OK; Maximum on-net call duration after VM24 registration is 30 mins; 200% bonus is upon next 3 top up minimum 50K before Dec 31st. 100% for any net, not for VAS, IDD/VoIP; 100% for on-net. Bonus validity is same as core balance; with subscripers who activated before Oct 6th, bonus 200% and 60 active days for the next 2 top up of minimum 50K will be finished before 24h 30th Nov 2009. Then, Beenline is a new competitor. This mobile provider has a very interesting package named “Big Zero”. The competitive feature of this package that can attract students is the low intra network charges. With the package “Big Zero”, customers can call cheaply with only 0 Vnd for on-net calls from 3rd minute. This package seems to be competitive with Q Student when customers only spend 1199 VND calling other intra network numbers for long time as they like. Prices Validity period Local outgoing calls 0 VND/min - from 3rd minute of talk 1199 VND - first 2-min and from 21st min * Calls to other network 1199 VND / min * ............................................................................................................................................ Calls to Beeline numbers Website: http://www.docs.vn Email20 : lienhe@docs.vn Tel : 0918.775.368 Local SMS SMS to Beeline numbers SMS to other networks International Calls International SMS GPRS – Internet 250 VND 350 VND 4114 VND / minute 2500 VND 5 VND / KB (Souce: http://en.beeline.vn/en/pages/content.aspx?id=27) In addition, SFone has one package named “One VND”, in which customers can call to other SFone numbers at one VND per minute from the second minute. The first six second bloc costs VND 216 for intra network numbers and subsequent one second costs VND 16. In the future, new mobile operators may come to Vietnamese market. These new companies with their new strategic products will be MobiFone’s direct competitors. It is not surprising when they choose youngsters as their target customers. Students, of course, will be potential customers. Their promotion campaigns focusing on these customers will affect Q Students. In general, all new mobile providers in Vietnamese markets have their own strengths and weaknesses. They are trying their best, especially in promotion programs to attract more young customers. They seem to understand Vietnamese’s feeling when offering new packages with cheap charges. They are all challenges that MobiFone with Q Student has to face. 2. Findings on consumer behavior and demands on using mobile 2.1 Consumer behavior on using mobile According to the survey, 84 percent of students are using one mobile phone. Among these students, 67 percent are using normal ones while the others have modern ones which have multifunction such as using Internet, sending multimedia messages and so on. 16 percent of students have two mobiles. When asked, students using more than one mobile said that they wanted to use a fixed number and get promotion from other operators. The table below will illustrate this finding.
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