specific action plan for launching tcbs branch in 2011

ACKNOWLEDGEMENT
I would like to gratefully acknowledge all people who have help with the
completion of this research.
I wish to express my profound thanks and appreciation to Dr. Le Nguyen Hau, my
study Tutor, for his invaluable guidance, constructive suggestions and constant
encouragement throughout this study work. His support and understanding made
this study a rewarding experience to me.
Among my professional colleagues, I am grateful to my colleagues at
Techcomsecurities Company – Nguyen Trung Kien, Nguyen Duc Hung, and Dao
Thanh Tung – for their help, stimulation and feedback. I also owe a special thank to
Mr. Nguyen Trung Hau – my mentor – for providing advices and resources for me
to fulfill my study.
Special thank are expressed to all professors from Solvay Business School and Ho
Chi Minh City Open University as well as my classmates for their supports via
lectures, discussions, debates, comments and feedbacks throughout my all Master
program.
I gratefully acknowledge the encouragement from members of my family to my
studying


i

TABLE OF CONTENTS

Contents
Abbreviations And Acronnyms

Pages
ii
iii
1

2

Tables, Chart & Figures
EXECUTIVE SUMMARY
CHAPTER I. INTRODUCTION
1.1 Overall background
1.2. Company description
1.3. Problem statement
1.4. Objective
1.5. Scope of works
1.6. Methodology
1.7. Structure of study

2
2
3
4
4
4
7

CHAPTER II. ENVIRONMENTAL ANALYSIS
2.1 External Environment Analysis
2.2 Internal Analysis
2.3. SWOT Analysis
2.3.1 Opportunities
2.3.2 Threats
2.3.3 Strengths
2.3.4 Weaknesses
2.3.5 Use SWOT analysis’s result

6
6
14
16
16
16
17
17
18

CHAPTER III. MARKETING PLAN 2011-2015 FOR TCBS
3.1 Marketing objectives
3.2 Marketing strategic plan
3.3 Marketing Mix

20
20
20
21

CHAPTER
IV.
SPECIFIC
ACTION
LAUNCHING TCBS BRANCH IN 2011
4.1 Financial
4.2 Action plan
4.3 Evaluation

25

CHAPTER V. CONCLUSION

PLAN

FOR

25
26
27
29


ii

ABBREVIATIONS AND ACRONNYMS

ABS

AN BINH Securities Joint Stock Company

ACBS

ACB Securities Company Ltd

BVSC

BAOVIET Securities Joint Stock Company

CPI

The Consumer Price Index

FPTS

FPT Securities Joint Stock Company

GDP

Gross Domestic Product

HBBS

HABUBANK Securities Company Ltd

HNX

Hanoi Stock Exchange

HOSE

Ho Chi Minh Stock Exchange

HSC

HOCHIMINH CITY Securities Corporation

KEVS

KIMENG VIETNAM Securities Joint Stock Company

OCS

OCEAN Securities Joint Stock Company

SBS

SACOMBANK Securities Joint Stock Company

SSI

SAIGON Securities Incorporation

TCBS

Techcomsecurities Company

TSC

THANGLONG Securities Joint Stock Company

UPCoM

The Unlisted Public Companies Market

VCBS

Vietcombank Securities Company Ltd

VIETINBANKSC

Vietnam Bank for Industry and Trade Securities Joint
Stock Company

VIS

VIETNAM INTERNATIONAL Securities Joint Stock
Company

VNINDEX

Vietnam Index of stock price


iii

TABLES, CHARTS & FIGURES

TABLES
Items
Table 4.1: The marketing budget can be spent maximum in theory
Table 4.2: Details of action plan

Pages
25
26

CHARTS
Items

Chart 2.1: Admin Structure of VN capital market

Pages
12

FIGURES
Items
Figure 2.1. Vietnam’s GDP from 2002 to 2009
Figure 2.2. Vietnam’s CPI from 2000 to 2010

Pages
7
8

Figure 2.3. Number of securities companies in Vietnam

10

Figure 2.4. VN brokerage market share - 2009

11


1

EXECUTIVE SUMMARY

Techcomsecurities Company (TCBS) was found in early 2010. Due to the
infancy of the company itself together with the negative impact of the global
financial crisis, TCBS is facing a great of difficulties and challenges. So a

marketing plan for a new branch of TCBS in Hochiminh city plays an important
role in ensuring proper direction for business development.
Through analyzing in depth of current macro-economic situation and
securities market in Vietnam that helps identify opportunities and threats for the
development of securities companies.
In recent year, the Vietnam’s economy has face challenges because of the
heavy global economic crisis. In addition, securities companies are facing the local
and regional competition. The competition will be increasingly fierce with the
appearance of experienced foreign competitors with tremendous financial strength
in the years to come. Although having challenges Vietnam stock market still has
opportunities. When the crisis is over, there will be a fast growth of securities
industry, promoting the economic development of the country. Besides, securities
industry has caught greater awareness and participation of all types of investors due
to the joining of new entrants in the stock market.
TCBS is owned by Techcombank - one of the leading banks in Vietnam. So
TCBS inherits sophisticated competency mostly from Techcombank. Drawing out
SWOT for the company itself helps to determine TCBS’s strengths and weaknesses
to find out the market penetration strategic plan in the fist two years and the
enhance large scale plan in the next three years. These plans is done through
marketing mix strategy including Products, Price, Place, and Promotion
Moreover, the company put out a specific action plan for launching branch in
Ho Chi Minh City. This creates preconditions for sustainable development for the
company


2

.
CHAPTER I
INTRODUCTION

1.1 Background
In the past 10 years Vietnam securities market has grown strongly in scale
and quality. The official Vietnam securities market includes Ho Chi Minh Stock
Exchange (HOSE) established in July 2000, Hanoi Stock Exchange (HNX) in
March 2005 and the unlisted public companies market (UPCoM) in 2009.
Vietnam securities market now has the market capitalization volume of 38 billion
USD, accounting for 40 percent of GDP. There are many leading companies that
have been trading stock in HOSE. The value and volume of trading have increased
steadily over the years. As at end June 2010, there were 243 stocks, 58 bonds, 04
fund certificates being listed in HOSE with market capitalization of over VND560
trillion (US$ 30.31 billion).

Up to now HOSE has 104 securities companies

(Securities) members compared with only 4 companies in 2000. The current
companies have a total capital of over VND 23 trillion, and most of them are
already involved in transactions online.
1.2. Company Description
Techcomsecurities Company (TCBS) was founded in early 2010 with the
goal of being ranked as one of Top 10 securities companies in five years more, and
delivering a diversity of products and services under sole ownership of
Techcombank. Currently, Techcombank is 20% owned and supported by HSBC. As
one of the leading banks in Vietnam, Techcombank has constantly put great efforts
to sustain this position in Vietnam securities market. The company is focusing on
technology investment, diversifying products, improving services, exploring and
developing the new market segments. By inheriting Techcombank’s strengths and
brand name, TCBS is believed to quickly gain reputation and achieve market share
in Vietnam securities market.

3

1.3. Problem statement
The securities market has made outstanding growth after 10 years of
operation. The market will be attractive because the Government will speed up the
equitization process of big state owned general corporations, which means more
valuable commodities will be available. The number of new trading accounts has
increased approximately 50% in 2009 and achieved 730,000 accounts. The
transaction accounts have increased seven times compared with figures in 2006, but
it only makes up 0.9% of the total population of Vietnam. The number of listed
companies has reached to 459 companies by the end of 2009, compared with around
200 companies in 2006. There are currently more than 100 securities companies,
mostly in Hochiminh City and Hanoi Capital. It is forecasted that securities
companies would be merged to be the larger ones, at least with medium scale.
However, due to the infancy of the company itself together with the negative impact
of the global financial crisis, TCBS is facing a great of difficulties and challenges.
In order to survive through this tough situation and prepare for a future
development, TCBS needs to focus on technology and develop competitive
products and services. The expansion of operation area in Hochiminh City is one of
the first steps forward in TCBS’s plan of strong development. Given this context,
the development of an effective marketing plan for TCBS in Ho Chi Minh City is
important to help the company get more market share and create good image and
reputation in Vietnam stock market.
The following questions need to be addressed:
1. What are the opportunities, threats, strengths, and weaknesses of TCBS to
find out what should be done to exploit the strengths and stop the
weaknesses?
2. What need to do for the successful establishment and taking into operation of
TCBS branch in Ho Chi Minh City?

4

1.4. Objective
The objective of this study is to develop a marketing plan to provide a road
map and specific guidelines for TCBS to achieve its business development goals in
Hochiminh city in the next five years.
1.5. Scope of works
This project is mainly for the operation of TCBS in Ho Chi Minh City from
2011-2015. It is developed in the given context of the general corporate strategy of
TCBS in Hanoi, which emphasizes on offering convenient and secure products and
services.
1.6. Method
The study is based on both types of data namely primary and secondary data.
Primary data: In-depth interviews with the Investment Manager - Nguyen
Trung Hau, the General Manager - Nguyen Trung Kien and some functional
managers of TCBS to obtain information on the firm’s current situation and their
assessment about the current industry’s environment.
Secondary data: Data was collected from macro and industry analysis
reports, database of historical data resource of the securities market, the company’s
reports, research companies, internet, government offices, newspapers, etc…
Data analysis
Once the data has been collected, the researcher has used an inductive pattern to
analyze the data collected by means of primary and secondary sources.
The data analysis basically consisted of the following components:
• The first component relates to the macroeconomic environment in Vietnam. It is
indeed necessary for the proper understanding of the growth and development of
Vietnam economies and stock market.
• The second component covers an in-depth internal analysis of TCBS, then
drawing out SWOT for the company itself.

5

• The third component reveals the qualitative analysis that presents in detail the
marketing plan 2011-2015 for TCBS as well as the comprehensive action plan.
The final evaluation of the marketing plan is also mentioned.
1.7. Structure of study
The structure of the study is as follows:
The first chapter presents the overall introduction of the study including
overall background, company description, problem statement, objectives, scope of
works, methodology and structure of the study. The second Chapter analyzes in
depth of current macro-economic situation and securities market in Vietnam that
helps identify opportunities and threats for the development of securities company
in general, and then point out TCBS’s strengths and weaknesses in particular. A
marketing plan 2011- 2015 for TCBS as well as marketing programs is presented in
Chapter 3. Chapter 4 shows the detailed action plan for launching branch, budget
and evaluation method. Last but not least, the conclusion Chapter will grasp what is
analyzed and discussed in the study and make final conclusion on the topic.


6

CHAPTER II
ENVIRONMENTAL ANALYSIS
2.1 External Environment Analysis
2.1.1 Macro level: SLEPT Model Analysis
There are many factors in the macro-environment that will be a great
leverage but also a threat to financial industry in general and securities market in
particular. These factors include Social, Legal, Economic, Political, Technological

factors (SLEPT).
Social factors:
With the population of over 86 million, 2/3 of which are below 30 years of
age, Vietnam has enormous young human resource. The country records in
continued improvement in key human development indicators such as high literacy
rates of above 90% education, health improvement, life expectancy, and impressive
poverty reduction. The workforce is highly motivated, adaptable and has strong
work ethic. Compared with other countries in the region, Vietnam still have low
labor cost. This can be proved by the extremely low Gross Net Income per Capita of
Vietnam in 2009 with only US$1,010 compared to US$37,220 of Singapore or
US$3,760 of Thailand. Besides, it is worth mentioning that there are an increasing
number of students choosing economics and finance as their majors rather than
technology and manufacturing at the Universities. According to the Vietnam
Ministry of Education, 38 percent of students have applied in the commerce schools
in 2010

(Source: on website Admission Information)

.These young, qualified students would be

skilled workforce considered as human supply or prospective clients as market
demand for TCBS in near future. Furthermore, they would become potential
customers due to their knowledge in business. Generally, social factors of Vietnam
are proved to be very positive not only to finance sector but also to other industries.
Legal factors:
In term of financial market: Vietnam Securities Law came into effect in 1
January 2007 and amended in November 2010; the Decree No.14 and series of


7

regulations on fund management, securities operation are issued, and they are going
to be amended in near future. In a bid to improve liquidity yet still control main
fields in the economy, the government has raised the foreign ownership limit for
equities to 30% for banking and 49% for other sectors and totally removed foreign
ownership limit of a particular issuer’s bonds. Admittedly, Securities Law is a
major step to improve information disclosure and corporate governance for all
public companies, so as to shape an effective regulatory framework for the stock
market development in Vietnam. In conclusion, this legal improvement really
means to securities companies, especially those newly found like TCBS since it
helps create a transparent market, and above all a fair playground for everyone.
Economic factors:
Vietnam is considered as an impressive growth since the “Doi Moi” reform,
emerging as a major financial hub in the region with strong and consistent growth
over 8% during 2005-2007 and sliding 6.23% in 2008 due to the global crisis. Up to
2009, GDP growth is 5.23%, and it is ranked the first in Asia region.
Figure 2.1: Vietnam’s GDP from 2002 to 2009
1400
1200
1000

7.1

7.3

7.7

8

8.44

823

800
600

8.48

430

482

528

2002

2003

2004

704

625

400
200
0
2005

2006

GDP per capita (US$)

2007

9
8
1024
7
6.23
6
5
5.32
4
3
2
1
0
2008 2009

GDP Growth (%)

(Source: General Department of Statistics)

1200


8

Figure 2.2: Vietnam’s CPI from 2000 to 2010

Since 2001 average CPI has been 8.1% one of the highest in Asia
(Source: TNS Research Company)

Inflation is in the control below 7% in 2009, on the average the consumer
price index (CPI) decrease compared with the previous years. However, since 2001
average CPI has been 8.1% one of the highest in Asia. (Source: TNS Research Company)
Political factors:
Vietnam’s entry to WTO in November 2006 has far-reaching implication
from lower trade barrier for goods to more competitive business environment and
the adoption of an array of laws and regulations. Vietnam Government has
committed to reform such as development of private sector, privatization of state
owned companies, infrastructure development. Banking Law (1998), Investment
Law, Enterprise Law (2005), Securities Law (2006) and other administrative
regulations gradually come into effect as Vietnam’s strenuous efforts to
strengthen

the financial mechanism

to help generate domestic and foreign

resource, improve transparency for business environment. Vietnam is ranked as
one of the most Asian stable countries on politics. Multinational companies
consider Vietnam as a safe and lucrative investment destination in comparison with
other countries in the region. As a result, Vietnam securities market is likely to
enjoy such abundant foreign indirect investment and has more chances to develop in
the years to come.


9

Technological factors:
Generally, Vietnam is on the way to apply modern technology and
equipments needed to promote the country's industrialization and modernization.
At present, many paper processing tasks typically performed by personnel have
been moved to modern administrative software. Since the beginning of 2009, HOSE
has applied online transactions (no-floor trading) while HNX used distance trading
for listed market. This modern online system brings convenience to both investors
and securities companies in the sense that it allows automated orders receipts,
transaction handling and investors verification regardless of location distance as
well as enhances liquidity, fairness and clearance in operation. As a result,
securities companies must satisfy all the requirements of technological system
which may be a financial burden for them in this gloomy market.
In short, although difficulties and challenges are still ahead, there is a room
for hope that Vietnam with strenuous efforts can overcome such economic
obstacles, becoming an Asian tiger in coming future.

Admittedly, this rather

promising macro-environment can enhance Vietnam to be an attractive investment
destination top in mind of foreign investors. It can be said that the mentioned
SLEPT including young qualified workforce, effective regulatory framework,
impressive economic growth, stable political environment, modern trading system
have together contributed to a very promising business environment for securities
companies in general and TCBS in particular. The problem remains in whether
industry factors are also favorable to the development of securities companies. This
will be clearly presented in the following part.
2.1.2 Industry level: Porter's 5 forces
The competitive structure of securities industry can be analyzed using
Porter's five forces including rivalry amongst existing competitors, bargaining
power of buyers, bargaining power of suppliers, threat of substitute products and

threat of new entrants.


10

Rivalry amongst exiting competitors: “high”
When Vietnam Index of stock prices (VNINDEX) reached the peak of 1,170
on March 12, 2007, the stock market was then shared among 60 securities
companies. Accompanied with the nearly 70% decrease in the value of VNINDEX
is the dramatic boom of securities companies which stood at 104 companies in
2010. These two contradictory pictures represent the stiff competition among the
existing companies.

Figure 2.3. Number of securities companies in Vietnam
Number of Securities Company in Vietnam
120

104

100

91
78

80
55

60

c

40
20

4

8

9

12

13

13

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(Source: Techcomsecurities statistic book)

Vietnam Capital market is divided into Securities market and Bond market.
In term of Securities market, in 2009, the top 10 companies accounted for 51.26%
of brokerage market share. Therefore, the small remaining “cake” is modestly
shared for 90 companies. The increasingly fierce competition happens in Bond
market which is playing field of state-owned companies who have closely
relationship with the Government. In 2009, the top 10 concentration rate was
92.75% of brokerage market share.

11

Figure 2.4. VN brokerage market share - 2009
Brokerage Market Share on Bond in 2009

Brokerage Market Share on Securities in 2009
9.13%

TSC
8.26%

SSI
SBS

7.77%

5.63%

3.84%
2.59%

3.40%
2.90% 3.37%

ABS
18.21%

SBS
SSI

7.72%

OCS
17.38%

8.75%

FPTS

VCBS
The rest

HBBS
VIETINBANKSC

BVSC
VIS

VCBS
HSC

3.61%

FPTS
KEVS

4.37%

2.58% 7.25%

HSC
ACBS

48.74%

3.06%

TSC
11.31%

9.43%

The rest

10.70%

(Source: Vietnam State Securities Commission Annual Report 2009)

Referring competitive advantages of some top securities companies,
Thanglong Securities (TSC), Hochiminh Securities (HSC), KIM ENG Securities,
Sacombank securities are of powerful brokerage while BaoViet Securities is known
as a great corporate finance services provider. Others like FPT securities and
VNDIRECT securities are good at technology and utilities for investors. Saigon
Securities (SSI) is diversifying client portfolio and services. The Vietcombank
securities (VCBS) is focusing on bond trading. TCBS needs to take this fact into
consideration, to point out which path the company is able to catch up with. This
company’s internal strength will be discussed more detail in the later part.
In short, the competition among players is severer than ever. Most of market share
are dominated by big boys whose have advantages of early establishment or
cooperation with foreign strategic partners. Smaller or newborn companies find it

extremely difficult to penetrate in the current highly concentrated market. Thus,
rivalry amongst existing competitors is “high”.
Threat of substitute products: “high”
There is an increasing recognition that Vietnam has put great deal of effort in
developing into a market economy. Stock market has become key indicator of
economic performance, not only helps mobilize capital to invest in business but also
ensure these resources bring best profits in the future. Its economic necessity is
apparent, but there appears a threat from other attractive investment channels such
as gold trading and real estate. These two alternative kinds of investment are


12

currently paid special attention due to their high fluctuation and ease of trading. The
investors now find it very easy to shift among these investments to get arbitrage. So
the threat of substitute products is “high”.
Bargaining power of buyers: “high”:
First, the value customers who have high requirements in financial products and
services are obtained by large securities companies. The medium and small income
investors’ demands for services are not as strict as that of large or institutional
investors whom only large securities companies are able to serve. This means that
the current 104 securities providers are in an intense competition as investors
especially medium and small one quite easily shift among them in order to enjoy
better services at low fees. The ins and outs of contractual requirement are not so
stringent, which partly contributes to the investors’ movement to other companies.
To conclude, the power of buyers/customers is considered “high”.
Bargaining power of suppliers: “high”
As for securities companies, suppliers will be administrative organizations
such as Ministry of Finance, State Securities Commission, Ho Chi Minh Stock
Exchange, Hanoi Stock Exchange, and Vietnam Securities Depository.

Chart 2.1. Admin Structure of VN capital market

(Source: Vietnam Ministry of Finance)

The State Securities Commission (SSC) is an executive arm of the Ministry
of Finance (MoF) that directly implements the MoF’s legal regulations and
guidelines, also, controls the financial market. Ho Chi Minh Stock Exchange, Hanoi


13

Stock Exchange is administrative agencies of SSC having functions of organizing,
regulating, operating and inspecting securities trading activities and stock market’s
activities at a national level. Once securities companies satisfy requirements or obey
regulations and principles from these “powerful suppliers” are they allowed to be
established or continue operation. The fact leads to the conclusion that bargaining
power of suppliers is high.
Threat of new entrant: “medium”
The highly concentrated market accompanied with the current sliding
economy has made it difficult for new players to enter the game. Besides, the high
entry cost of heavy investment in advanced trading systems and communication
network, to a certain extent, has discouraged those who want to get a small bit of
cake. Since the beginning of 2009, State Securities Commission of Vietnam has
imposed a restriction on granting establishment license for new securities
companies (Source: Decision 126/2008/QD-BTC published at the end 2008 by Vietnam State Securities Commission)
The barrier to entry also comes from the Securities Law effective as of 1
January 2007 that representative office, foreign securities companies can invest
in Vietnam in the form a joint venture with up to 49% foreign ownership. Only
after 2011, foreigners will be able to own 100 percent of securities firms and
will be able

to branch

into Vietnam

for

some

securities activities. As a

consequence, there is a threat of so experienced competitors with tremendous
financial strength since 2011. The plan of improving services, human, financial
capacity, technology for existing securities companies should be taken into
consideration right now. To sum up, threat of new entrant is “low” at the present,
yet may be “medium” in the long run. In the Porter's five forces analysis that most
of factors are negative, take medium threat of new entrants or high threat of
substitute products and high bargaining power of buyers for example. The high
bargaining power of suppliers is not serious because such necessary principles and
regulations are set by the regulators (suppliers) to ensure the transparency, fairness
of the market. However, it is worth to mention that the high industry competition


14

prevents existing securities companies from generating high returns. The case turns
out to be more difficult in the current global economic crisis. Securities companies
should pay due attention to develop effective strategies to overcome difficulties,
then, take opportunities in the future.
2.2 Internal Analysis

Company background
Techcomsecurities was established in September 2008 with the capital of
VND 300 billion owned by Techcombank.

Techcomsecurities performs stock

trading operations, including Securities Brokerage, Proprietary Trading, Securities
Depository and Finance Advisory.
Overview of Techcombank
Vietnam Technological and Commercial Joint- stock Bank - Techcombank
has been operating for 16 years. Currently, Techcombank is one of the Leading
Commerce Joint Stock Bank in Vietnam with property of more than 107,910
billions VND (end of June 2010). Techcombank has strategic shareholder HSBC
with 20% share holdings. With network of 230 branches, Transaction offices at
more than 40 provinces and cities within the country, Techcombank expects to
continue expand, increase the number of branches and offices to 300 national wide
at the end of 2010. Techcombank is also the first and the only bank has Financial
Insight give the Title of Leading Bank in technology solution and application.
Currently, with more than 5000 staff, Techcombank is always ready to satisfy all
the requirements and provide services to customers. Techcombank is now serving
more than 1 millions of individual customers, and nearly 42.0000 business
customers.
Resource:
Techcomsecurities was founded by the legal entities with great histories of
success in the fields of Banking, Consultancy and Financial/ Securities Investment.
Therefore, Techcomsecurities inherits sophisticated competency mostly from


15

Techcombank. Admittedly, technology, trading fee, human resource are considered
as an important prerequisite to successful securities company. Referring the specific
case like Techcomsecurities, the company has a number of highly-skilled managers
mainly coming from its supporter -Techcombank. Needless to say, this professional
workforce has been toughly selected, receiving thorough training and staying
updated with the latest knowledge and news of Finance and Securities. However, in
order to ensure the long-term success, TCBS must continue investing in human
resource instead of relying on Techcombank. In term of technology, TCBS is
currently investing in a technological system called BOSC that can ensure the
accuracy and comply with the trading rules and regulations but is unable to quickly
handle a great number of investors’ orders. Concerning trading fee, it can be said
that TCBS has been applying a very competitive trading fee that is 0.15% per every
transaction value compared to average 0.25% per transaction value under 500
billion VND (Source: Trading Fee Table of securities companies) in the market. This fee will not be
likely preferred by institutional or large investors as they are enjoying 0.1% of
trading fee by almost top securities companies at the present. To sum up, with
current valuable resource, TCBS is quite able to achieve its target and business
goals.
Vision
Technology Securities Co. Ltd targets to become to securities company
which has development in depth. The company guarantees to provide best services
to customer and create an active, professional and effective working environment to
company’s staffs.
Mission
“The development of customer is also ours”. TCBS promised to provide
services and products at the most professional and effective to customers.
Core value
+ Customer’s benefit is the top priority at any company’s operation.

16

+ Always improving thoughts and method at organizing and function in
order to keep with the general development of Vietnam Securities Market.
+ Honest and explicit, united and follow the rules of professional moral.
+ The company commits and creates condition to develop competence of
staff to achieve high level in skills and professional in work.
2.3. SWOT Analysis
The analysis of external macro-economic environment has brought both
opportunities and threats for TCBS as follows:
2.3.1 Opportunities
O1: - The enhancement of legal framework through the development of
securities law has shown the Government’s commitment to develop the financial
sectors, especially securities market: it will be a promising market in the years to
come.
O2: - The equitization process is in the course of deployment and will be
speeded up in the future, which will supply more stocks for the exchange.
O3: - The numbers of transaction accounts has increased but it only makes
up 0.9% of the total population of Vietnam. TCBS would have more favorable
exposure to the abundant skilled workforce as well as investors’ portfolio in near
future.
O4: - The securities market is a potential market because there are not many
varied financial products.
2.3.2 Threats
T1: - Growing competition in the industry: the rivalry among existing
companies is more and more severe under the economic crisis. There has already
been a sign of bankruptcy or merger in Vietnam market.
T2: - Threat of new comers: since 2011, foreigners will be able to own 100
percent of securities firms and to branch into Vietnam for some securities
activities, instead of 49% foreign ownership at the moment. The threat of so

experienced competitors with tremendous financial capacity is really worrying.


17

T3: The amount of the valued customers in 2006-2007 has been obtained by
companies which have competitive advantages in flexible and outstanding financial
products.
T4: The customers easily switch to another investment channels such as gold
trading or real-estate when the securities market is not attractive.
T5: The securities market is not attractive to new investors because of the
present complicated macro economy. It depends on the development of economy
and the market trend in the future.
The internal analysis of TCBS clearly shows the company’s strengths and
weaknesses. They are presented below:
2.3.3 Strengths
S1: - Techcomsecurities has received an intangible precious asset that comes
from famous brand name of Techcombank.
S2: - Great capital capacity: with high level of cash, the company easily
accesses to the fund to support the operation. Techcomsecurities has the strong
financial support from Techcombank.
S3: - Techcomsecurities has well-trained, creative and self-motivated
workforces. The age of majority is under 30 years old. They are willing to
welcome the challenges and opportunities.
S4: - Techcomsecurities has a major source of potential clients in
Techcombank. Good relationship with many strong partners of Techcombank also
brings more competitive advantages to Techcomsecurities.
2.3.4 Weaknesses
W1: - TCBS was established after other securities companies. The TCBS is
still in its infancy; therefore, the company encounters some difficulties and

challenges.
W2: - TCBS still relies on Techcombank in term of human resources. This
may threaten the company’s sustainable business expansion.


18

W3: - Software and back office systems are invested in a minimum level to
maintain trading activities. It is very hard to meet the requirements of rapid
expansion.
2.3.5 Use SWOT analysis’s result
All strengths and weaknesses of TCBS were examined thoroughly by SWOT
matrix. For operation and future development, the company needs to develop
strategic plans to cope with possible challenges, also take opportunities.
Strength – Opportunity:
TCBS should strengthen strategic brand development; implement marketing,
and access to businesses to seek opportunities for financial advisory and
underwriting. Furthermore, TCBS should perform market research, analyze
customers’ needs, search of new, flexible and effective financial products to attract
and satisfy the high requirement of customers.
Strength – Threat:
Cooperation with strategic partners in both domestic and international
market to have stronger support in finance, technology and controlling ability
should be taken into consideration.

As mentioned before, solely relying on

Techcombank is not a good decision because banking sector is still in difficulties
due to the current crisis. As long as the finance capacity is strong, the company can
be able to compete with other top securities company. Therefore, there is always a

need of financial cooperation with strategic partners. Performing marketing plan,
increase brand image to attract existing and potential investments in the market
seems to be the must for TCBS.
Weakness – Threat:
TCBS should pay attention to IT investment, recruitment and training of
human resources, because they are extremely essential to development of the
company in the hot market in the years to come. The current gloomy situation will


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be a good time for such an investment, preparing for the future stock market
booming.
Weakness – Opportunities
Searching for new financial products and developing customer services to
attract and retain customers as well as increase market share in the financial crisis
situation.


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CHAPTER III
MARKETING PLAN 2011-2015 FOR TCBS

3.1 Marketing objectives
Short-term (upcoming year)
- Create brand awareness for Techcomsecurities (TCBS) in Ho Chi Minh
City in the first quarter.
- Increase brokerage market share in individual investment segment by 2
percentages in 2011.

Long-term (3 to 5 years)
- Obtain 8-10% market share in 2015.
- To be one of the top 5 companies in the securities market.
3.2 Marketing strategic plan
The first period: The market penetration strategies (strategic plan in the
first two years)
By the investigation of the current actual situation, the stock market had
initially stabilized on the number of customers. There are not a lot of completely
new investors open accounts at the securities companies. Hence, TCBS will be
difficult if it focuses on this kind of customer.
In penetration strategy TCBS provides all financial products appeared in the
market with a lower price policy as well as launches more promotion champaigns to
attract current investors, especially small and medium income investors. Besides,
the company serves varied and convenient services for the customer to fufill their
needs.
Currently, independent broker teams have been formed in the market. They
try to find the customers for companies and enjoyed the percentage of transaction
fee. Characteristics of this broker teams had fairly large number of investors and
daily transaction value reach from 2 billion to 10 billion. In this period, TCBS


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promotes cooperation with them to attract customers and ensure revenue. In
addition, TCBS does advertising and promotional activities to increase brand
awareness.
The target segment: With the current condition of resources, medium and
small income investors are TCBS’s target investors. As mention above, reputation
companies had a large amount of VIP customers and they had steady customer
retention policies. And the medium and small cutomers easily switch to other

securities companies that can satisfy their needs. So TCBS focuses on this segment
to ensure the revenue that helps the company exist in the initial period as well as
establish network of customers in the stock market.
The second period: Enhance large scale and reputation of TCBS
(strategic plan in 2013 - 2015)
In this period, TCBS pays attention to develop distribution channels. The
company expands stock agents and trading points across branch system of
Techcombank in Hochiminh city.
TCBS continues to upgrade the software system, financial products and
service quality. The company tries to provide securities brokerage service as fast,
accurate and professional manner in order to fulfill our customer needs.
Besides, the company tries to seek cooperation relationship with foreign
strategic partners. It not only helps to support the company with strong financial
resource and technical progress, but also build up a reputation for the company.
The target segment: More than 90 percent of investors entered the market as
retail investors

(Source: report on tinnhanhchungkhoan website)

.So TCBS continues to focus on

retail growth (retail customers). The company tries to exploit fully the potential of
this segment.
3.3 Marketing Mix:
The marketing mix provides 4P Strategies including Products, Price, Place,
and Promotion which aims at differentiating Techcomsecurities from other
competitors in Vietnam Securities market.