Marketing strategies giaohangtietkiem 2022

MARKETING STRATEGIES AND SWOT ANALYSIS OF
GIAOHANGTIETKIEM

Table of Contents

Table of figures 1

Introduction 2

Part A: 3

Products 4

Price 6

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Place 7

Promotions 8

People 8

Process 9

Physical evidence 10

Part B: 10

Introduction of Giaohangtietkiem 10

SWOT analysis 10

Marketing segmentation 12

Differentiating strategies 13

Metrics to evaluate marketing performance for Giaohangtietkiem 14

References 14

Table of figures

Figure 1: 7Ps model 3

Figure 2: Viettel Post company 4

Figure 3: Giaohangtietkiem company 6

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Introduction
According to the Vietnam E-Commerce Association (VECOM), along with the high
growth rate of e-commerce, 2018 witnessed the strong development of logistics
services, last-mile delivery and refund orders (VECOM, 2018). The three outstanding
elements of this sector are strong increase in investment, application of advanced
technology and fierce competition. Currently, VECOM assesses that the market share
of nationwide delivery services is still in the hands of domestic enterprises,
specifically, Vietnam Post Corporation (Vietnam Post) is a company that provides
delivery services hired by 61% of online sales units; next is the Viettel Post (Viettel
Post) with a rate of 25% ... The corresponding rates for EMS (postage from time to

time), Giaohangnhanh service and Giaohangtietkiem service are 5%, 1% and 1%
respectively (VECOM, 2018). Other delivery units accounted for only 13% (VECOM,
2018). The situation changed for outsourced delivery services in two e-commerce
centers, Hanoi and Ho Chi Minh City. Ho Chi Minh. Vietnam Post and Viettel Post
are still the most hired delivery companies but the rate has decreased significantly
(Phuong, 2019). In addition, the level of competition among delivery companies is
very high, especially in the city. Specifically, in Hanoi, the number of units renting
Vietnam Post is 20%, Viettel Post is 52%. EMS delivery is 4%, Giaohangnhanh
service: 10%, Giaohangtietkiem service: 9%, other courier companies are 10%
(VECOM, 2018). The corresponding rate in Ho Chi Minh City is 15%, 28%, 10%,
5%, 7% and 43% respecitively (VECOM, 2018).
As such, it can be affirmed that Giaohangtietkiem is gaining a part of market shares in
the cut-throat market for logistics service in Vietnam. Therefore, this report paper
aims to analyze marketing strategies to position itself of Giaohangtietkiem service on
high competition logistics market as in Vietnam as well as make comparison of its
marketing strategies with its most significant and big competitor who is Viettel Post

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and finally come up with marketing plan to launch new service of Giaohangtietkiem
on Vietnamese market.
Part A:
7P Marketing Mix is a familiar marketing strategy tool, and it is known as the
abbreviated version of 7P marketing mix is a 4P model including Product, Price, Place
and Promotion (Rafiq & Ahmed, 1995). It is rated as the top 3 traditional marketing
models based on statistics by Smart Insights. 4P model is designed at the time of
selling products without attention to service and the role of customer service in brand
building and development. Over time, Booms and Pitner added three service elements:
People, Physical Evidence and Processes to create the 7P Marketing Mix model today
(Booms & Bitner, 1981).

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Figure 1: 7Ps model

The 7P model was invented and published by E. Jerome McCarthy in 1960 in Basic
Marketing - A managerial Approach for providing intangible services. 7P Marketing
Mix helps the company to review and identify the essential factors affecting the
product marketing process (Booms & Bitner, 1981).
Products
New and inclusive definition of a marketing concept for a product: a product is a set
of benefits (Booms & Bitner, 1981). This definition applies to all categories and types
of products, although a product definition by classification is always necessary, but a

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general definition will cover marketing for all areas, as long as it identifies the product
to set up a mission to serve people (Akroush, 2011). By this definition it is not
necessary to separate marketing for products or services, marketing for industry or
B2B and marketing for consumer goods and B2C (Mohammad, 2015). A product is
recognized by the customer, more specifically, it translates the concept of benefits into
the concept of value of the same entity, and begins to form brand status according to
the value that customers recognize (Akroush, 2011).
In the case of Giaohangtietkiem and its most significant competitor who is Vettel Post
both provide the same service which is logistics in Vietnam market. ViettelPost is a
delivery unit of Military Telecom Corporation (Viettel), established in 1997 with a
nationwide network.

Figure 2: Viettel Post company
Viettel Post is an organisation specializing in business of a number shipping offerings

such as: courier services, express transport services, savings shipping services, plus
offerings ...Viettel Post continually considers human assets as the core aspect and

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valuable asset. With the slogan: "Viettel Post -Go deep to get nearer to people", the
business enterprise has constructed a streamlined staffing team, with honesty and hard
work ethic to meet customers' wishes when the use of the service. The Corporation
constantly creates an expert and modern-day working environment, maximizing the
proper to work, dedication, development, honor of employees and a harmonious
aggregate between enterprises' hobbies and benefits of officers and workers. In the
coming years, Viettel Post's method will still be to develop a multi-service business,
bringing the carrier nearer to customers than each home and global markets, and
always asserting that an agency fulfills its duties in the direction of community,
socially responsible with Viettel Post it is sustainable development. Believing that,
with the status of brand and provider quality, with the enthusiasm and intellect of the
staff, Viettel Post will be more and greater steadfast on the path of commercial
enterprise development and conquering customers.
While the scope of logistics service of Giaohangtietkiem is providing smaller and
fewer options for logistics compared with Viettel Post.

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Figure 3: Giaohangtietkiem company

Giaohangtietkiem is a service that has been in operation for more than 5 years. After 5
years of operation, Giaohangtietkiem has affirmed its brand and received the trust of
thousands of customers throughout the country. Although the coverage of
Giaohangtietkiem does not extend to remote and mountainous areas, the unit focuses
on service quality, so it has attracted and attracted thousands of users.

Giaohangtietkiem exactly as its name suggests is the most economical delivery unit
for customers. With this service, customers will be able to use the most professional,
most prestigious and cheapest shipping service.
Price
Price is the true amount that shoppers will pay for a product. The price depends on the
so-called "perceived value" of the product to the consumer alternatively of the goal fee
of the product provided, by way of an exact product solely if the purchaser considers
that it is right (Booms & Bitner, 1981); A rate is solely viewed to be low priced

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when the patron perceives it to be beneficial. Although this is a subjective thinking
and there are relative differences among distinctive consumers, in familiar if a product
is priced greater or lower than its perceived cost then the business will not sell
(Chikte, 2009).
Viettel Post's COD fee is 1.3% of the collected amount, at least VND 20,000 / mail for
destination destinations in communes. COD charge is 0.8% of collected amount,
minimum 15,000 VND / 1 postage for destination being the center of the province or
city.
Giaohangtietkiem provides low delivery service, suitable for small and medium online
shops. In addition, fast, morning delivery time is delivered with provincial and city
orders and support to take place every day of the week, including the evening.
Place
Upgrading to the notion of location as a location of sale, distribution is a device or
income community organized professionally and successfully (Phuong, 2019). Place
is about bringing merchandise to customers in the most efficient way, however can
deliver clients to merchandise in the most convenient way (Akroush, 2011). This
method should be called a two-way distribution strategy. In the new definition, it is
critical to have the concept of distribution channel, which is the meaning of vertical or
vertical alignment. Each channel is suitable for a distinct product positioning, which is

the preeminence of advertising and marketing when bringing collectively an
extraordinary advertising feature gadget pushed through a pair of amazing concepts:
Segment & Positioning, as an alternative than Multi-segment segmentation
& Positioning (Chikte, 2009).
Also during this period, Viettel Post established the largest delivery network in
Vietnam. Therefore, 1,476 post offices and 827 stores have been newly developed,
equal to 7 times the total number of post offices opened in the previous 15 years
combined, creating jobs for thousands of workers. Viettel Post's IT development has
been strongly promoted, with popular products such as ViettelPost delivery app, ride-

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hailing app and MyGo online delivery, VoSo e-commerce platform ... helping Viettel
Post System optimization and labor productivity improvement.
Giaohangtietkiem nationwide coverage with more than 500 nationwide shipping
locations, covering 99% of commune districts, taking goods / delivering over 11,000
communal districts nationwide. This will help customers to send goods anywhere
while ensuring the quality criteria set on time, saving delivery time between locations
across the country, convenient for both shippers and Giaohangtietkiem party in the
process of taking, returning goods. Shipping signs Giaohangtietkiem has an extremely
flexible working hours so that customers can comfortably come to ship almost any
time of the day. From 7:00 - 22:00 daily, working all Sunday. Customers can send in
the morning before going to work, taking advantage of noon time to pass through the
nearest post office. Even at 9:00pm to10:00pm, customers can still send. Shipment is
now fully active, flexible in time and absolutely does not affect customers' commute
time. Shipping at the post office is definitely a wise choice for customers who are still
maintaining a fulltime job.
Promotions
Mixed promoting or exchanged promotion is a component in advertising combination
that is normally misunderstood as the entire advertising technique due to its

everywhere, in each industry (Chikte, 2009). However, it is only accomplished as the
closing stage when the product has been researched and prepared to launch on the
chosen distribution channel, organized to be bought at a calculated price. Mixed
promotion targets to improve sales, help to make a strong impact on the product to
stimulate consumption and at the identical time maximize customer experience
(Akroush, 2011). Mixed promotion includes the following forms: Advertising
(Catalog, newspaper, television ...), sales promotion, promotion, personal income and
public family members (Booms & Bitner, 1981).
Both of these two logistics service provided many promotional mixed program to
attract more customers. However, it can be seen that Giaohangtietkiem positioned

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itself as cheap shipping service provider, it offered customers packages with cheaper
prices and more promotions compared with Viettel Post.
People
People include all actors that play a role in providing services and affecting buyers'
perceptions; namely employees of the company - people directly involved in
providing services, and target customers of the business (Booms & Bitner, 1981).
In 2017, the Bunny was chosen to become the mascot of Viettel Post. The image of
the Bunny has all 4 qualities: Fast - Smart - Honest - Friendly is also the goal to train
every day of Viettel Post employees. Not only training the qualities of the military
postmen, each Viettel Post employee has been improved their working capacity
through training activities. Viettel Post considers training to be the development
platform Viettel Post is not only known as a leading enterprise in the field of delivery,
but also has a high-quality workforce.
Viettel Post's employees are trained to develop their capacity before all assigned tasks.
At the same time, thanks to training, Viettel Post's staff can improve its
competitiveness against competitors, especially, in the current fierce competition
market.

The shipper team of Giaohangtietkiem is professionally trained. Attentive attitude to
customers, delivery on time. Shipper will contact customers before delivery or pick up
whether or not it is convenient for the customer at the time. If customers are unable to
receive their order, the shipper will contact them to reschedule their delivery. In the
online shopping process, Shipper is the person who directly touches customers, gives
customers real shopping experience, so it can be said that shipper is the person
shop on behalf of the shop to create images with customers. That's why the shipper
team is extremely professional, always polite attitude to customers to help shop build
image and build trust with customers.

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Process
A process consists of a system procedure or professionalism (Chikte, 2009).
Development enterprises constantly put the management tactics as the management
system as the groundwork for institutionalizing the working apparatus, helping to
legalize private responsibilities, or rather, "transparency" of roles and responsibility of
every man or woman to genuinely see his duties and powers in a collective
administration (Booms & Bitner, 1981). However, the application of preferred
administration process systems in some agencies with high grey remember content
and excessive carrier quality seems to show ineffective. Both Viettel Post and
Giaohangtietkiem provided clear and transparent shipping procedures so that their
customers can process to deliver their goods with these two companies quite easily.
Besides, both of the companies offered customers online tracking system to check and
follow the status of orders which enables customers to keep tracking and feel safe
when the deliver their products.
Physical evidence
Physical evidence refers to all the physical components that consumers will interact
with (Booms & Bitner, 1981). For example, product packaging, signs, logos, business
reports, brochures, websites and even business cards.

Established and operated in the market for a long time, both Viettel Post and
Giaohangtietkiem have significant and clear physical evidence with their customers
due to the fact that each company has significant logo, uniforms, packages and
applications which are clear and easy for customers to differentiate.

Part B:
Introduction of Giaohangtietkiem
Giaohangtietkiem Joint Stock Company was established in 2013 which is a
professional shipping unit, specializing in providing door-to-door delivery services for

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online businesses. After 5 years of operation, Giaohangtietkiem has been voted as the
top 1 most favorite carrier of mobile e-commerce platform covering 63 centers of
provinces across the country with the scale of more than 20 operation centers, 500
branches and target of reaching 100,000,000 orders in 2018.
In 2017, when Vietnam's e-commerce market grew by 25%, the revenue growth rate
of delivery businesses was from 62-200%. According to forecasts, about 30% of the
population in Vietnam is expected to switch to online shopping by 2020, showing that
the delivery demand of the e-commerce industry will increase significantly in the near
future (EVBN, 2018). Currently, there are more than 50 large and small delivery units
nationwide. This number has increased 10 times in 5 years (EVBN, 2018). However,
only a few businesses have a large market share and are mentioned a lot in the
domestic freight forwarding market such as VNPost, Viettel Post, Fast Delivery and
Savings Delivery (SEA Group from Singapore) (EVBN, 2018).
In the high competition like this, Giaohangtietkiem aims to set itself become the
leading shipping service with cheapest price in Vietnam.
SWOT analysis
Strengths

● Connect with customers quickly by chatting on the web or on the app. Submit
the request and will be responded shortly.

● Can create / manage orders online or from phone app.

● No need to label with the "From / To" information on the package. Customers
only need to write the order code, the clerk will print the spot label and paste
on the package.

● City and inter-city delivery charges are low.

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● Fast delivery time: In the morning, take and delivery within the day (in the
city). Support for grab and evening deliveries, all days of the week.

● Storage time is up to 3 days and supports repeated delivery

● Updating the delivery status is easy to understand, hitting customers' mind is a
specific situation. When customers create an order, its status will be
"Received", then it will change to "Dispatched / Incoming". After the employee
finishes taking it, it will change to "Retrieved / Already stored". When it is time
to broadcast, it displays "Delivered / Delivered". Then it will be "Delivered /
Not Checked" or "Delivered / Checked" depending on the payment status of the
order.

● Display log / tracking of orders

● Submit request for more / update information for each order.

● Send detailed reports on the status of orders delivered during the day as well as
a record of checking / collecting money. Fixed COD transfer 3 times / week.

Opportunities
● The service price is lower but still ensuring good service quality based on the
core values the business has built.
● The logistics service market in Vietnam is in high demand with the rapid
development of e-commerce

Weakenesses
● The "expected delivery" condition is often inaccurate for provincial delivery
orders.

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● Afternoon pickup and evening deliveries are often unsuccessful as promised

● Nationwide delivery is still limited, behind Giaohangnhanh and ViettelPost, but
not too big a weakness.

● The delivery of battery-powered products like watches is too slow. It takes 1
week to deliver from Ho Chi Minh City to Hanoi.

● Customer service call center has no contact time for a long time.

● There is no address or phone number for each specific warehouse. So if
customers do not call the switchboard will not know who to find.

Threats
● High competition from other rivals in the market, especially big rivals with

stable financial background such as Viettel Post.

Marketing objectives
● Increase brand awareness of Giaohangtietkiem among the community of
customers (both individual and company) in big cities including Hanoi, Ho Chi
Minh, Da Nang, Hai Phong and Can Tho
● Increase sale volume of Giaohangtietkiem (the number of new customers who
register and pay for service of the company)

Marketing segmentation
Giaohangtietkiem's target customers are online shop owners who do not have their
own shipping department. As the number of online shopping shops increased
dramatically and the difference in products gradually decreased, the competitive
advantage was mainly in the service. Therefore, the shop owners need a carrier to
carry out the service in the true sense, giving customers a complete shopping

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experience, thereby creating a competitive difference and increasing the number of
loyal customers for the shop. And Giaohangtietkiem has grasped that need and
provided shops with a reliable, quality delivery service that helps shops to best serve
their customers. Thereby improving the service quality and reputation of the shop
owners.
Differentiating strategies
Lower service prices but still ensuring good service quality based on the core values
the business has built is the biggest difference Giaohangtietkiem wants to build in the
minds of customers.
The core values that Giaohangtietkiem have been building:

● Quick: Is the core value that Giaohangtietkiem endeavors every day to bring to

customers. Fast is the goods always circulating non-stop, improving
productivity on each employee, automating processes based on technology.

● Flexibility: Although flexibility is the most difficult problem in operation,
Giaohangtietkiem believes that flexibility is the competitive advantage of
online businesses to make automation and optimization, mobile technology,
etc. so that shop or business owners can flexibly serve customers to create a
completely new online shopping experience.

● Friendly: At Giaohangtietkiem, the service thinking of every employee is to
make every effort to bring satisfaction to customers from the delivery / receipt
to handle the incident. Giaohangtietkiem understand that serving the buyer
better is helping the seller more prestigious. Not only in humans,
Giaohangtietkiem is also friendly in technology systems and operating
procedures in a simple and easy to use, most understandable way for users.

Giaohangtietkiem locates based on customers' perceptions of quality compared to the
price paid for services. The name Giaohangtietkiem of this business represents a part

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of Giaohangtietkiem's positioning strategy. Giaohangtietkiem wants to create a cheap
delivery service but still a standard, fast, efficient and professional shipping service.
The company wants to build an image of a top quality delivery unit in the minds of
customers, specifically with 3 criteria: Fast - fastest, Flexible - most flexible, Friendly
- most friendly, as value The core that businesses build is at the same time an image of
a young, modern, progressive enterprise with updated technology trends in the system
and management process.
Metrics to evaluate marketing performance for Giaohangtietkiem
With the two main marketing objectives including increasing brand awareness and

sales volumes, marketing performance for Giaohangtietkiem can be measured via two
main indicators:

● Brand awareness indicators: PAR (Purchase Action Ration) and BAR (Brand
Advocacy Ratio). According to Philip Kotler (2016), these two indicators come
from the 5A model itself and measure the journey from awareness to purchase
(Kotler, 2016). For example, after running an advertising campaign, we
measure the brand awareness rate of 90%, but the purchase rate is only 20%.
That means brands are missing out on 70% of brand awareness, which doesn't
motivate them to buy. Brands will then identify the problem that lies in the
attraction and learn steps. From there find the direction to solve the problem.
These two ratios measure the buying journey of customers and give businesses
a better overview of marketing activities, regardless of online or offline, digital
or traditional application. These two indicators show the business results quite
clearly and the measurement method is quite simple. Therefore, in the future,
marketing activities should apply these two indicators.

● Sale volumes: sale volume in the case of Giaohangtietkiem should be measured
by the number of new customers who register and pay for its logistics service.

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References
Akroush, M. N., 2011. The 7Ps Classification of the Services Marketing Mix
Revisited: An Empirical Assessment of their Generalisability, Applicability and Effect
on Performance - Evidence from Jordan’s Services Organisations. Jordan Journal of
Business Administration, 7(1), pp. 116-147.
Booms, B. & Bitner, M., 1981. Marketing strategies and organisation structures for
service firms. Chicago: American Marketing Association.
Chikte, A., 2009. Marketing and the 7Ps A brief summary of marketing and how it

works. The Charted Institute of Marketing.
EVBN, 2018. E-commerce industry in Vietnam in 2018, Hanoi: EVBN.
Kotler, P., 2016. Marketing 4.0: Moving from Traditional to Digital. 1 ed. New
Jersey: Wiley.
Mohammad, H. I., 2015. 7PS MARKETING MIX AND RETAIL BANK
CUSTOMER SATISFACTION IN NORTHEAST NIGERIA. British Journal of
Marketing Studies, 3(3), pp. 71-88.
Phuong, N. H., 2019. CURRENT STATUS AND SOLUTIONS TO REDUCE
LOGISTICS COSTS IN VIETNAM. Malaysian E Commerce Journal (MECJ), 3(3),
pp. 1-4.
Rafiq, M. & Ahmed, P., 1995. Using the 7Ps as a generic marketing mix: An
exploratory survey of UK and European marketing academics. Marketing Intelligence
& Planning , 13(9), pp. 4-15.
VECOM, 2018. Report on logistics services for Vietnamese ecommerce 2018, Ho Chi
Minh City: VECOM.

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