Establishing a marketing strategy for luxury hotel and residence project of tms group join stock company in quy nhon city, binh dinh province

Scholastic: 2017-2018

ESTABLISHING A MARKETING STRATEGY
FOR LUXURY HOTEL AND RESIDENCE PROJECT
OF TMS GROUP JOIN STOCK COMPANY
IN QUY NHON CITY, BINH DINH PROVINCE

Author: Nguyen Thi Mai Anh
Advisor: Dr. Dao Van Tien

Release year: 2018

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EXECUTIVE SUMMARY
Under the Subject "Establishing a Marketing Strategy for Luxury Hotel and Residence
Project of TMS Group Join Stock Companyin Quy Nhon city, BinhDinh Province", the
report consists of 4 main parts:
Firstly, introduce need, objective and values of the report.
Secondly, provide an overview about the TMS Group Joint Stock Company.
Thirdly, set up a marketing strategy for Luxury Hotel and Residence Project of TMS Group
Joint Stock Company in Quy Nhon city, BinhDinhprovincethroughcollecting primary data
and conducting preliminary research on the real estate market in Quy Nhon city, then
assessing the demand of customers for real estate products such as land, apartment, hotel
apartment,ect.Whereby, proposing a development plan of TMS Group real estate products
which is suitable to market demand. After that, makinganalysis of above project in a
comparative relationship with competitors, which helps to position products, identify target
customers, build competitive factor and price for the product and ultimately building a
marketing strategy for that project in order to promote the business effectively and gain
market share for TMS Group in Quy Nhon market.

Finally, providing conclusion, recommendations and limitations of the report.

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INTERNSHIP CERTIFICATE
This is to certify that the Internship Report entitled "Establishing Marketing Strategy for
Luxury Hotel and ResidenceProject of TMS Group Joint Stock Company in Quy Nhon city,
BinhDinhprovince"submitted by Mrs. Nguyen Mai Anh is research work for the award of
the MastersofMarketing& Prospective in IAE Nantes Economie& Management at the
Universite De Nantes, that the report has not formed thebasis for the award previously of any
degree, diploma, associate ship, fellowship or anyother similar title of any university or
institution. Also, it is certified that the report represents an independent work on the part of
the candidate.
The data presented in the report are entirely collected and analyzed by author which are
reliable and accurate at the time of report.
Place: Ha Noi, Vietnam
Date:
Signature of Author:

Signature of the Advisor:

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ACKNOWLEDGEMENT
Situated in an area oriented to develop tourism in the South-Central region, Quy Nhon is a
charming natural place with many famous places such as EoGio, Ghenh Rang Tien Sa,
Champa Twin Towers, Ky Co island, Cu Lao Xanh, Phuong Mai Peninsula…ect. Along
with the general trend of the country, more than ever, BinhDinh in general and Quy Nhon in

particular are determined to increase investment attraction in a sustainable way through open
policies, creating open and transparent environment for investors.
Recognizing the advantages of landscape and culture, BinhDinh province has been issuing
many policies and orientations for tourism development. In particular, there are plans for
infrastructure and transport development. Key projects such as: upgrading and expanding
National highway 1A, National highway 1D, National highway 19, Nhon Hoi - Tam Quan
coastal road, ThiNai bridge; to build and expand the civil aviation area - Phu Cat airport;
Quy Nhon seaport ... has been investing and building. When these works are completed, not
only tourism but the economy, real estate here also promised to have a breakthrough growth.
According to BinhDinh Department of Culture, Sports and Tourism, in 2016, BinhDinh has
welcomed 3.2 million visitors, accompanied by the tourism revenue growth of 44%,
reaching 1,500 billion VND. It is expected that from now to 2020, the province will attract
5.5 million visitors. In which, there are about 800,000 international passengers, with an
average annual growth rate of 15%/ year, the total tourism revenue will reach 10.000 billion
VND, with an average annual growth rate of 25%/year. (BinhDinh Statistical Office;
Statistical Year Book 2016; 2017)
According to the BinhDinhtourismoriented development in general and Quy Nhon in
particular, vision to 2030, the province will focus on investment, exploiting tourism
resources towards professional, branded, sustainable development, tourism products with
high quality, competitive and bold identity. Simultaneously, Quy Nhon city is planning to
become one of the central cities of the Central Coast, development-oriented industries - ports
- services - tourism to become one of the typical destinations like Da Nang, Nha Trang and
Phan Thiet…
However, according to the survey, the entertainment venues, shopping centers and resort
facilities in Quy Nhon are still very few and do not meet the increasing demand of tourists.
Up to the end of the 2017 first quarter, the province has 150 accommodation facilities with

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4,000 hotel rooms, including 5 four-star hotels and only one five-star hotel. (BinhDinh
Statistical Office; Statistical Year Book 2016; 2017)
This modest figure shows a huge shortage of luxury apartments for tourists coming to
BinhDinh as the number of tourists is two times higher than Phu Quoc and equal with 70%
of Nha Trang.
Taking advantage of the beginning opportunities and development, exploring the potential of
tourism and the increasing number of tourists in the locality, many big, reputable and strong
financial strength investors have quickly chosen Quy Nhon as the place to "take off" resort
real estate development, including TMS Group.
For the business which is putting their first foot in the field of real estate investment under a
strong competition market, TMS Group needs to have a breakthrough strategy to gain
competitiveness and market share. Especially, for potential emerging markets such as Quy
Nhon, there is not much competition from big markets such as Hanoi, Ho Chi Minh City, Da
Nang and Nha Trang… a proper marketing strategy will not only helping the company to
dominate the market, creating competitive advantage but also helps to create brand value and
solid position for the corporation.
Marketing strategy is one of the key determinants of the business, project or product success.
Effective marketing strategy is one of the most important factors for Samsung to become one
of the fastest growing brands in recent years. The brand value of Samsung in 2000 was $ 5.2
billion. After Samsung continued to invest 508 million USD for branding promotion in
2001, the company's brand value rose to $ 6.3 billion, after 13 years, Samsung brand’s value,
rose to $39.6 billion, top 8th World Brand. (Thanh Tú, Why Samsung Surpasses It’s 8th World
Brand, Dantri, 2013)
Recognizing the importance of a marketing strategy, the subject poses the need to develop a
marketing strategy for the project as one of the most important tasks that determine the
success of the project, in addition to a good product and effective business strategy.

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THANK YOU
First, I would like to express my gratitude to Economy & Management, Université de Nantes
and International School, Vietnam National University for giving me the opportunity to
accomplish this Master of Marketing & Prospective course. It has been a valuable
experience in my life, especially for my career. I am also appreciation to my supervisor, Dr.
Dao Van Tien on his guidance, encouragement and companion with me through this report.
Without his valuable advice and assistance, I may not materialize and complete this report
timely.
Secondly, I would like to give thankful for TMS Group Join Stock Company, where I work
during the completion of this report until now. My collage, especially Ms Nguyen Ngoc Hoa
– Vice CEO of TMS Group, who is responsible for all Sale & Marketing activities at TMS
Group, she gave me all the best condition to finish this report, shared with me all her
experiences, deep knowledges in this field. Hopefully this report will contribute something
to the group and its development.
Finally, I would like to express my best regards to my family, who always beside me and be
my infinite momentum to complete this report.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................. 2
INTERNSHIP CERTIFICATE ......................................................................................................... 3
THANK YOU ...................................................................................................................................... 4
TABLE OF CONTENTS .................................................................................................................... 7
LIST OF CHARTS & FIGURES ..................................................... Error! Bookmark not defined.
LIST OF TABLES ............................................................................. Error! Bookmark not defined.
CHAPTER 1: INTRODUCTION ..................................................... Error! Bookmark not defined.
1.1

Need of the report ............................................................... Error! Bookmark not defined.

1.2

Objectives of the report ..................................................... Error! Bookmark not defined.

1.3

Values of the report ............................................................ Error! Bookmark not defined.

CHAPTER II: THEORETICAL BASIS OF ................................... Error! Bookmark not defined.
MARKETING STRATEGY ............................................................. Error! Bookmark not defined.
2.1. Definition of marketing strategy ............................................ Error! Bookmark not defined.
2.2. Necessity of marketing strategy planning ................................. Error! Bookmark not defined.

2.2.1. Importance of marketing strategy planning .......... Error! Bookmark not defined.
2.2.2 Objective necessity to develop a marketing strategy for businesses in the market
economy .......................................................................... Error! Bookmark not defined.
2.3. Levels of strategy: ...................................................................... Error! Bookmark not defined.

2.3.1. Corporate level strategy: ...................................... Error! Bookmark not defined.
2.3.2. Business unit level strategy: ................................. Error! Bookmark not defined.
2.3.3. Functional strategy (Operational strategy): ........ Error! Bookmark not defined.
2.4. Strategic planning ........................................................................ Error! Bookmark not defined.

2.4.1. Concept .................................................................. Error! Bookmark not defined.
2.4.2. Contents of the marketing strategy planning process. Error! Bookmark not defined.
2.5. Marketing strategies: .............................................................. Error! Bookmark not defined.

2.5.1. Cost leadership strategy ....................................... Error! Bookmark not defined.

2.5.2. Product differentiation strategy ........................... Error! Bookmark not defined.
2.5.3. Focus strategy ...................................................... Error! Bookmark not defined.
2.5.4. Generic strategy combinations ............................. Error! Bookmark not defined.
2.6. Marketing strategy development process.............................. Error! Bookmark not defined.

2.6.1. Marketing goal determination:............................. Error! Bookmark not defined.
2.6.2. Marketing environment analysis .......................... Error! Bookmark not defined.
2.6.2.1. Macro environment: .......................................... Error! Bookmark not defined.
a / Economic environment: ............................................. Error! Bookmark not defined.
b/ Socio-cultural environment: ....................................... Error! Bookmark not defined.

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c/ Political-legal environment: ....................................... Error! Bookmark not defined.
d/ Technological environment: ....................................... Error! Bookmark not defined.
e/. Demographic environment: ....................................... Error! Bookmark not defined.
f/ Natural environment: .................................................. Error! Bookmark not defined.
g/. Global environment: .................................................. Error! Bookmark not defined.
2.6.2.2. Micro-environment: ........................................... Error! Bookmark not defined.
a/ Industry environment analysis: .................................. Error! Bookmark not defined.
b/ Internal analysis: ........................................................ Error! Bookmark not defined.
c/ Analysis of SWOT matrix in the formation of business strategy: .... Error! Bookmark
not defined.
2.7. Marketing strategy .................................................................. Error! Bookmark not defined.

2.7.1. Expansion Marketing Strategy (By Product - Market): Error! Bookmark not
defined.
2.7.2. Competitive Marketing Strategy ........................... Error! Bookmark not defined.
a / Market leader strategies: .......................................... Error! Bookmark not defined.

b / Market Challenger Strategies: .................................. Error! Bookmark not defined.
c / Market follower strategies:........................................ Error! Bookmark not defined.
d / Market nicher strategy: ............................................. Error! Bookmark not defined.
2.8. Marketing - mix program (for each SBU)............................. Error! Bookmark not defined.

2.8.1. Product: ............................................................... Error! Bookmark not defined.
2.8.2. Price:...................................................................................... Error! Bookmark not defined.

2.8.2.1. What is the price? .............................................. Error! Bookmark not defined.
2.8.2.2: Pricing methods ................................................ Error! Bookmark not defined.
2.8.3. Distribution: ......................................................... Error! Bookmark not defined.
2.8.3.1 Concept, role and function of distribution.......... Error! Bookmark not defined.
2.8.3.2: Distribution Channel ......................................... Error! Bookmark not defined.
a/ Distribution Channel concept: ................................... Error! Bookmark not defined.
b / Channel Design: ........................................................ Error! Bookmark not defined.
2.8.4: Advertising - Communication: ............................. Error! Bookmark not defined.
2.8.4.1: Basic concepts ................................................... Error! Bookmark not defined.
2.8.4.2: Implementation Tools: ...................................... Error! Bookmark not defined.
a / Advertising: ............................................................... Error! Bookmark not defined.
b / Promotion:................................................................. Error! Bookmark not defined.
c / Public Relations: ....................................................... Error! Bookmark not defined.
d / Direct marketing ........................................................ Error! Bookmark not defined.
e / Direct Selling: ............................................................ Error! Bookmark not defined.
CHAPTER 3: OVERVIEW OF THE TMS GROUP ..................... Error! Bookmark not defined.

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3.1. History, vision, mission and core values ................................ Error! Bookmark not defined.

3.1.1 History ................................................................... Error! Bookmark not defined.
3.1.2. Vision .................................................................... Error! Bookmark not defined.
3.1.3. Mision ................................................................... Error! Bookmark not defined.
3.1.4. Core values ........................................................... Error! Bookmark not defined.
3.2. Structure of the TMS Group Joint Stock Company ............ Error! Bookmark not defined.

3.2.1. TMS Edu ............................................................... Error! Bookmark not defined.
3.2.2. TMS Travel ........................................................... Error! Bookmark not defined.
3.2.4. TMS Commercial: ................................................ Error! Bookmark not defined.
3.2.5. TMS International School..................................... Error! Bookmark not defined.
3.2.6. TMS HR ................................................................ Error! Bookmark not defined.
3.3.2 Function and duties of marketing department ....... Error! Bookmark not defined.
a/ Research to establish marketing strategy: ................. Error! Bookmark not defined.
b/ Market forecasting research: ..................................... Error! Bookmark not defined.
c/ Product research and implementation organization of new product development
program: ......................................................................... Error! Bookmark not defined.
d/ Price research: ........................................................... Error! Bookmark not defined.
e/ Research marketing support tools and measures: ...... Error! Bookmark not defined.
4.1 Research on Real Estate Market in Quy Nhon, Binh Dinh .. Error! Bookmark not defined.

4.1.1. Landscape ............................................................. Error! Bookmark not defined.
4.1.2. Apartment market ................................................. Error! Bookmark not defined.
4.1.3. Condotel market ................................................... Error! Bookmark not defined.
4.1.4. Conclusion ............................................................ Error! Bookmark not defined.
4.2. Introduction about The 5 stars Complex TMS Luxury Hotel and Residence of TMS
Group in Quy Nhon ....................................................................... Error! Bookmark not defined.

4.2.1. Project overview ................................................... Error! Bookmark not defined.
4.2.2. Competitive focus (USP) ...................................... Error! Bookmark not defined.
4.2.3. Product Positioning .............................................. Error! Bookmark not defined.

a/ Positioning according to competitors ........................ Error! Bookmark not defined.
b/. Product Positioning through the image of the customer .......... Error! Bookmark not
defined.
c/ Product Positioning based on the characteristics of the product ... Error! Bookmark
not defined.
d/ Position by quality / price........................................... Error! Bookmark not defined.
4.2.4. SWOT analysis...................................................... Error! Bookmark not defined.
a/ Strength: ..................................................................... Error! Bookmark not defined.
b/ Weakness: ................................................................... Error! Bookmark not defined.
c/ Opportunity: ............................................................... Error! Bookmark not defined.

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d/ Threaten: .................................................................... Error! Bookmark not defined.
4.3. Target customers ..................................................................... Error! Bookmark not defined.

4.3.1. Customers purchase Apartment ........................... Error! Bookmark not defined.
a/ Segment by geography: .............................................. Error! Bookmark not defined.
b/ Segment customers by demographics: ....................... Error! Bookmark not defined.
c/ Segment by purpose: Buy to stay, own a second home, sublease; speculative ...Error!
Bookmark not defined.
d/ Segment by psychology, buying behavior ................... Error! Bookmark not defined.
4.3.2. Customers purchase Condotel .............................. Error! Bookmark not defined.
a/ Segment by Geography ............................................... Error! Bookmark not defined.
b/ Segment by demographics: ......................................... Error! Bookmark not defined.
b/ Segment by Purpose: .................................................. Error! Bookmark not defined.
c/ Segmentby psychology & buying behavior ................. Error! Bookmark not defined.
4.4. Competitor analysis................................................................. Error! Bookmark not defined.

4.4.1. Analysis of competitive factor for condotel product ............ Error! Bookmark not
defined.
a/ Branding criteria ........................................................ Error! Bookmark not defined.
b/ Product Criteria ......................................................... Error! Bookmark not defined.
c/ Trade criteria .............................................................. Error! Bookmark not defined.
4.4.2. Analysis of competitive factor for Hometel product ............ Error! Bookmark not
defined.
a/ Branding criteria ........................................................ Error! Bookmark not defined.
b/ Product Criteria ......................................................... Error! Bookmark not defined.
c/ Trade criteria .............................................................. Error! Bookmark not defined.
4.5. Marketing strategy for TMS Luxury Hotel & Residence Quy Nhon Error! Bookmark not
defined.

4.5.1. Products ................................................................ Error! Bookmark not defined.
a/ Product classification ................................................. Error! Bookmark not defined.
b/ Product development strategy .................................... Error! Bookmark not defined.
4.5.2. Price ..................................................................... Error! Bookmark not defined.
a/ Condotel sale price: ................................................... Error! Bookmark not defined.
4.5.3. Sales and buying process ...................................... Error! Bookmark not defined.
4.5.3.1. Phasing Sales Plan ............................................ Error! Bookmark not defined.
4.5.3.2/ Sale policy ......................................................... Error! Bookmark not defined.
a/ Apartment sales policy with profit commitment (Condotel) ...... Error! Bookmark not
defined.
b/ Sales policy for Apartment which is not committed to profit (Hometel) .............Error!
Bookmark not defined.

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c/ Discount policy when buying bulk .............................. Error! Bookmark not defined.

4.5.3.3. Sales strategy and distribution system development ........ Error! Bookmark not
defined.
4.5.4. Promotion ............................................................. Error! Bookmark not defined.
4.5.4.1. Key message/Slogan/Tagline ............................ Error! Bookmark not defined.
a/ Slogan: ........................................................................ Error! Bookmark not defined.
4.5.4.2. Media Chanels ................................................... Error! Bookmark not defined.
a/ Analyze customer behavior on the Media channels ... Error! Bookmark not defined.
b/ Media channel ............................................................ Error! Bookmark not defined.
4.5.4.3. Phasing the plan of communication & budget .. Error! Bookmark not defined.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS .... Error! Bookmark not defined.
5.1. Conclusion................................................................................ Error! Bookmark not defined.
5.2. Recommendations ................................................................... Error! Bookmark not defined.
5.3. Limitations ............................................................................... Error! Bookmark not defined.
REFERENCES ................................................................................... Error! Bookmark not defined.

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LIST OF CHARTS &FIGURES
Chart 1: Apartment statistics in Quy Nhon
Chart 2: Statistics of hotel apartment in Quy Nhon
Figure1: Model of 4 steps of strategic planning
Figure 2: Five stages of strategic planning
Figure 3: Model 10 stages of strategy building
Figure 4: Steps in strategic planning
Figure 5: 5 Force Competitive Model
Figure 6: Organization Structure of TMS Group
Figure 7: Organizational Structure - Department of Marketing & Communications
Figure 8: Product/service positioning diagram.
Figure 9: Media Channels

LIST OF TABLES
Table 1: Generic strategies of Porter
Table 2: SWOT Analysis Framework
Table 3: Information survey table of land projects in real estate projects in Quy Nhon City
Table 4: Information survey table of apartment projects in Quy Nhon city
Table 5: Information survey table of apartment hotel projects in Quy Nhon city
Table 6: Information survey table of Condotel projects to be launched in Quy Nhon
Table 7: Summary of real estate in Quy Nhon market
Table 8: Analysis of the brand competitiveness coefficient (condotel)
Table 9: Analysis of the product’s competitiveness coefficient (condotel)
Table 10: Analysis of the commercial competitiveness coefficient (condotel)
Table 11: Analysis of the brand competitiveness coefficient (Home-tel)
Table 12: Analysis of the product’s competitiveness coefficient (Home-tel)
Table 13: Analysis of the commercial competitiveness coefficient (Home-tel)
Table 14: Statistics of TMS Quy Nhon apartment types
Table 15: Product Strategy TMS Luxury Hotel & Residence Quy Nhon
Table 16: Scoring Competitiveness coefficient of brand & product (condotel)
Table 17: Trade rating & setting the Basic price (Condotel)
Table 18: Scoring competitiveness coefficient of brand & product (Home-tel)
Table 19: Scoring commercial competitiveness coefficient & setting basis selling price
(Home-tel)
Table 20: Phasing sales plan & Roadmap for price increases

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Table 21: Sale policy for Condotel
Table 22: Sale policy for Home-tel
Table 23: Wholesale policy (in bulk)

Table 24: Project distribution options
Table 25: Distribution of project rate
Table 26: Customer behavior on the Media channels
Table 27: Phasing the period of communication & cost estimation

CHAPTER 1: INTRODUCTION
1.1 Need of the report
Economic experts acknowledge that Vietnam has the potential to develop its tourism
economy strongly and becomes a destination for world tourism in the future, especially
thanks to the best coastline in Southeast Asia.
Looking in the region, Vietnam has many similarities to Thailand's 10 years ago in terms of
tourism growth opportunities, with the trend of resort real estate development expected to
grow even more in the future.
Emerging as a new tourist paradise, voted as the "most attractive destination in Southeast
Asia" (The Rouge Guide Magazine – United Kingdom, 2015), Quy Nhon city, BinhDinh
province is planned to become one of the central cities of the Central Coast, developing
towards the industry - sea port - service - tourism. Following Da Nang, Nha Trang and Phan
Thiet, BinhDinh is a very “hot” name on the investment map in Vietnam, becoming an ideal
destination for domestic and foreign investors.
According to BinhDinh Investment Promotion Center, in the first 6 months of 2017,
BinhDinh attracted 47 projects with a total registered capital of more than 12 trillion VND,
of which 22 investment projects in the field of tourism, services, trade and real estate,
accounting for over 60% of total investment capital, typically luxury real estate projects
focusing in Quy Nhon city (People's Committee of BinhDinh Province, Investment Program
of 2018).
With the orientation to 2020, the province has attracted 5.5 million visitors, of which 30%
are international visitors, in combination with investment incentive policies and good
exploitation of tourism resources in a professional, branded, sustainable development,

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tourism products of high quality, bearing bold identity, BinhDinh in general and Quy Nhon
in particular are witnessing the large-scale "landing" of the giants real estate to catch up with
the beginning trend of tourism development here as well as demand for luxury resorts are
gradually in vogue. The real estate market in Quy Nhon is therefore increasingly competitive
among the leading real estate corporations. In order to compete and gain market share in this
potential market, TMS Group Joint Stock Company (TMS Group hereafter) needs to have
good strategies to meet market requirements and marketing is one of the most important
strategies.
From offering the market good quality products at competitive prices, TMS Group needs to
make customers believe in investing to their products instead of buying competitor's
products. To do that, TMS Group needs to understand the needs of customers, promoting
better regarding their products, and building a long-term relationship between the TMS
Group brand and customers.
With more than 14 years of operation in the field of international human resources,
education and oversea study, in the last five years, TMS Group has been consistently ranked
among the top 3 high quality of Vietnam human resources companies for leading
corporations in Japan. However, due to the unique nature of the human resources sector,
TMS Group has never promoting their brand or product marketing. When it comes to real
estate, TMS Group quickly recognizes the need to innovate, actively promote the brand,
promote marketing activities to improve competitiveness, to gain market share.
Quy Nhon is one of the first investment destinations of the TMS Group, starting the strategy
of developing hotel chain, luxury resort of the group across the country. TMS Luxury Hotel
and Residence Project of TMS Group in Quy Nhon city (TMS Quy Nhon project hereafter)
is a 5 stars Hotel and Apartment complex with more than 1000 rooms. The project possesses
many advantages in terms of position, geomancy, etc that promising to become the most
worthing real estate project to wait in Quy Nhon market. However, TMS Group is a new
investor that does not have enough experienced in developing real estate projects, as well as
not known in a fiercely competing real estate market, especially in Quy Nhon city.

Therefore, TMS Group needs a prudent, properly marketing strategy for TMS Quy Nhon
project in order to grasp the opportunity to invest and dominate this potential market.

1.2 Objectives of the report

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With the necessary nature, the report is implemented to achieve these main objectives:
Firstly, synthesizing primary data, researching and evaluating real estate products of
competitors in the Quy Nhon market related to the real estate sector includes land,
apartment, hotel apartment. Since then, achieving the product development strategy for TMS
Quy Nhon to be in line with the market demand, while helping to assess the proper demand
and ability to consume of customers for the real estate products in Quy Nhon market.
Secondly, research the TMS Quy Nhon project in comparison with its competitors in this
market, in order to find and promote the competitive advantages of the product, reducing the
limitations of the project in comparing with the similar products. This helps to positioning
the products of TMS in Quy Nhon market, as well as "sketch" target customers of the
project.
Thirdly, basing on competitors and targeted customers research, building the suitable price
and choosing the best distributors.
Finally, this internship assets the main objective to research customer behaviors on media
channels, that could help choosing the most effective media channels, since then, proposing
product marketing strategy to promote business, gain market share for TMS Group in Quy
Nhon market.

1.3 Values of the report
With the main tasks proposed above, the subject is expected to bring specific values for the
business:
Firstly, providing a proper, comprehensive view on the issues of Quy Nhon real estate

market for management board of TMS Group.
Secondly, to develop products of TMS Group in the right direction, suitable to the tastes of
customers, meet the market demand, increase the absorption capacity of the product.
Thirdly, to help TMS Group dominates the market, gain market share in the context of Quy
Nhon real estate market which is increasingly hot, the competition is increasingly fierce.
Fourth, building the brand of TMS Group in real estate through the success of the project.

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CHAPTER II: THEORETICAL BASIS OF
MARKETING STRATEGY
2.1. Definition of marketing strategy
The term “Strategy” is derived from the field of military as the “science of planning and
conditions of military operations”; is “the art of commanding means to win the enemy”.
Thus the strategy is understood as the science of planning, conditions, and art that uses
resources and means in large-scale, long-term military operations to create advantages to win
the enemy; and is understood to be the art of exploiting the weaknesses and bringing the
greatest chance of success.
Being developed in the 1960s, marketing strategy has been gradually used commonly in
businesses with different definitions.
Jame B Quinn defines strategy as being “the pattern or plan that integrates an organization’s
major goals, policies and action sequences into a cohesive whole”(Jame B Quinn, 1998,
p.508)
William F.Glueck in the textbook “Business Policy & Strategic Management” defines
strategy as “a unified, comprehensive, and integrated plan designed to ensure that the basic
objected of the enterprise are achieved”(William F.Glueck,1988, p.324)
Alfred Chandler from Harvard University defines strategy as “the determination of the basic
long-term goals and objectives of an enterprise, and the adoption of courses of action and the
allocation of resources necessary for carrying out these goals”

Strategic planning is also understood as an art and science of setting, implementing, and
evaluating multi-functional decisions that enable the business to achieve its goals.
Thus, it can be defined that marketing strategy of a business is to synthesize activities to
make planning, implement and check, adjust the marketing strategy of the business
repeatedly with or without following a time cycle to ensure that the business always takes
advantages, opportunities as well as limit or eliminate the threats and pitfalls in the way of
achieving its goals(Le The Gioi, 2008, p.11)
2.2. Necessity of marketing strategy planning
2.2.1. Importance of marketing strategy planning
In the business of a business, the existence and success in business first depend on the
correctness of the strategy. Therefore, business strategy plays an important role in the
development of the business. This is shown as follows:

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Firstly, marketing strategy helps businesses clearly see the purpose and direction of the
business in the business operation. Thus, the business knows what direction it should
organize its business apparatus. The business also knows what to do to achieve success in
business and when the business achieves its goals.
Secondly, business environment is always volatile, creating many opportunities as well as
traps, risks. Strategic planning forces planners to analyze and forecast the conditions of the
business goals in the near and far future, thereby focusing on the best opportunities while
avoiding the worst risks.
Thirdly, thanks to the use of marketing strategies, businesses, regardless of their decisions
closely related to environment conditions, may balance their resources, power and goals with
the market opportunities to ensure good achievement of the set goals.
Fourthly, in a fierce competitive environment, the comprehensive analysis of macroeconomic
factors and the operational environment helps businesses identify and assess the current
demand for capital, equipment and human resources of the business with the demand of

customers and problems arisen, thereby having the best resource allocation to achieve the set
goals.
1.2.2 Objective necessity to develop a marketing strategy for businesses in the market economy.
Objective necessity to develop a marketing strategy for businesses is reflected in several
aspects as follows:
Firstly, current business environment has changed fundamentally compared to the previous
time, which requires renovation the business management and organization in terms of both
content and method.
Secondly, to survive, develop in a more fiercely competitive environment in terms of scale
and scope, businesses are required to change their ways of thinking, look for new business
methods, new management methods that is the development and implementation of a
Marketing strategy.
Thirdly, in the world, the ideology of strategic business management has been for a long time
and has been confirmed to be the inevitable process of corporate governance.
Fourthly, according to major researches in the world, companies that use strategic planning
often achieve better business results than before and better than those in the same industry
without making strategic planning in their production and business activities. This explains
that the “life expectancy” of multinational companies is 40-50 years and there are some with
the life expectancy of more than 100 years.
2.3. Levels of strategy:
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Besides including various aspects, the definition of strategy is different at several levels and
there are at least three levels of strategy identified, namely, corporate level strategy, business
unit level strategy and functional strategy.
2.3.1. Corporate level strategy:
Company level strategy addresses the overall purpose and scope of the organization to meet
shareholders’ expectations. The company strategy involves in all activities, products,
services and markets of the Company. This strategy is clearly stated in the company’s

“mission statement” and indicates how and where the whole business should grow.
Therefore, this strategy is set by the senior leaders before starting a business, and it is a
magnetic needle, a reference point to assess the organization’s goals and strategies.
2.3.2. Business unit level strategy: It is the overall strategy of engagements and actions
helping businesses win the competitive advantage by exploiting their core competencies in
the specific product markets.
2.3.3. Functional strategy (Operational strategy):These strategies are tools supporting the
business unit level strategy and corporate level strategy to be implemented effectively by the
constituent parts in terms of resources, processes, people, and necessary skills.
2.4. Strategic planning
2.4.1. Concept
Strategic planning is the analysis of past events to determine what is to be achieved in the
future. Strategic planning outlines the goals that an enterprise wants to accomplish, the ways
and resources required to achieve the goals, the implementing personnel, and the time to
implement. In other words, strategic planning is about finding the answer to the questions:
What does the enterprise want? What is needed? How? Who implements and when?
Strategic planning is the foundation of all the management processes. It advocates systematic
thinking about future enterprise development concepts, enhances the ability to recognize
opportunities, actively copes with environmental changes, and sets performance
measurement standards and performance on that basis, as well as creates the ability to
improve the coordination of resources, functions and strategy implementation units.
The purpose of strategic planning is to establish, maintain and develop the business units and
products of the enterprise, so that they can bring in profit and targeted growth to the
enterprise.
2.4.2. Contents of the marketing strategy planning process

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In order to have a development strategy, an enterprise must carry out the strategy in a

process. In fact, the strategic process of the enterprise is to select the business fields, secure
the resources for them, maintain and develop the enterprise in a competitive environment.
There are many approaches to introducing a strategic planning process of the enterprise.
Here are some key models.
Figure1: Model of 4 steps of strategic planning
Strategic
Objectives
(1)
Analysis of goal
changes
(opportunities/
threats) (2)

Analysis of
strengths/
weaknesses (3)

Strategic views of
operation (4)

Source: James V. Earle (2009)
Step 1: Identify strategic objectives. It is the quantification of the purpose of the enterprise
Step 2: Analyze the environment, the result of this step must identify business opportunities
as well as threats from the environment.
Step 3: Conduct the internal analysis aims to help the enterprise assess its own strengths and
weaknesses.
Step 4: Decide the right strategy choice.

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Figure 2: Five stages of strategic planning
Source: James V. Earle (2009)
This model differs from the model in that it separates the strategic planning stage.
Moreover, each stage has clarified the specific implementation contents. For example, in the
first stage, the strategic objective is to identify the priority target. Similarly, before making
external judgments, the enterprise must implement the strategic segmentation as well as
identify the competitive rules, relationships, and critical success factors of each segment of
the strategy.
Compared to previous models, this model consists of two major stages: strategic
judgment and strategic decision. Stage 1 is divided into 6 specific steps, while phase 2
consists of 4 specific steps. This is a strategic planning model that is highly practical for
enterprises. Because, at each specific step, a series of questions are raised for the enterprise
to answer.

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Figure 3: Model 10 stages of strategy building

Source: James V. Earle (2009)
A number of typical models which illustrate the process of strategic planning of the
enterprise are summarized in the following major steps:
Step 1: Determine the strategic target system
Step 2: Judge the strategy of the enterprise, including
- External judgment (identify opportunities and threats)
- Internal environment judgment (identify strengths and weaknesses)
Step 3: Select the appropriate strategic decision
Step 4: Implement the selected strategy with specific contents, including the layout of the
means of implementing the strategy as well as the corresponding check and adjustment

process.

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Figure 4: Steps in strategic planning:

Source: James V. Earle (2009)
2.5. Marketing strategies:
Each strategy is usually formed at one of three levels: Corporation, business unit and
functional department, in which the business unit level is the dominant segment of
competition in the industry. In order to counter the five market forces, including supplier
strength, substitution risk, entry barriers, customer bargaining power and competitiveness,
Michael Porter identified three general strategies can be applied at the business unit level to
create competitive advantages.
If the first determinant of the profitability of an enterprise is the attractiveness of the
business sector, the second most important factor is the position of the enterprise in that
sector. Even when operating in an industry that is less profitable than average, enterprises
with optimal positioning can still generate very high returns. Each company locates itself in
its active field by leveraging its existing strengths. Michael Porter thinks that the advantages
of any enterprise will always lie in one of two ways: cost advantage and product
differentiation. By applying these advantages, companies will pursue three common
strategies: Cost leadership, product differentiation and focus.
Table 1: Generic strategies of Porter
Target
range

Advantage
Low cost

Product

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differentiation
Broad

Cost

(whole

strategy

leadership Product differentiation
strategy

industry)
Narrow

Focus

(market

cost)

segments)

strategy

(low Focus strategy
(product
differentiation)

Source: Porter’s Generic Strategies (2017)
2.5.1. Cost leadership strategy
This strategy aims to become a low-cost producer in the industry with certain quality
standards. Then, the company will either sell the product at an industry average price to earn
a higher return than its competitor or sell it at a lower price than the average to gain market
share.
2.5.2. Product differentiation strategy
This is a strategy for developing your product or service so that the product or service has
unique characteristics that are valued and appreciated by customers more than the products
of the competing enterprises. The value added by product uniqueness allows the enterprise to
set higher prices without fear of being boycotted by buyers.
The risks associated with the product differentiation strategy are the likelihood of
competitors mimicking, or the changes in consumer tastes. Furthermore, many companies
are pursuing the focus strategies that are likely to achieve higher product differentiation in
their market segments.
2.5.3. Focus strategy
The focus strategy targets to a relatively narrow market segment in which companies try to
gain competitive advantage through low cost or product differentiation by applying the
theory “the need for a group can be satisfied better by totally focusing on serving the team”.
“An enterprise that uses the focus strategy often keeps loyal customers loyal and discourages
other companies from wanting to, or dare not compete directly.
By focusing only on a narrow market segment, enterprises that pursue this focus strategy
have lower sales, so they do not take advantage of bargaining with suppliers. However,
enterprises that pursue a focus strategy - product differentiation can transfer the higher costs
that the vendor imposes on the customers, as customers cannot find alternative products.
2.5.4. Generic strategy combinations

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These generic strategies are not always compatible with each other. If an enterprise tries to
act in a way that prevails in every field, then the result is no gain. For example, a company
that has made itself superior to its competitors by launching very high-quality products will
have to take the risk of reducing the quality of its goods if the company is still trying to keep
being a leader in low cost. Even if the quality of the product is not reduced, the company
inadvertently creates an inconsistent image in the customer's eyes. Therefore, Michael Porter
argued that for long-term success, every enterprise needs to choose only one of the three
strategies outlined above. If it is greed to pursue all three goals, the company will fall into a
state of embarrassment and do not gain competitive advantage.
Also according to Porter, companies that can successfully implement multiple strategies
often have to set up separate business units, each of which pursues a strategy. By separating
the strategy for different units in terms of policy or even culture, an enterprise can reduce the
risk of falling into inertia.
2.6. Marketing strategy development process
2.6.1. Marketing goal determination:
According to Bui Bao An (2012, p.17), in order to set up a marketing goal, the goal must be
in harmony with what the company is pursuing. Therefore, first of all, we need to know how
the company’s goals are built so that the marketing goals are met.
There are two ways to define a goal: Determined by Ansoff matrix and SMART goal
SMART goal
In marketing, identifying a specific goal is a prerequisite to developing an appropriate
strategy to achieve such goal. A specific goal also allows marketers to measure the
effectiveness of their marketing efforts. In addition, setting a specific, feasible goal also
demonstrates the level and determination of the marketer.
S = Specific: Detailed, clear: The goal must be specific. For example, if it is to
increase market share, what is the percentage increase? The sale increase should be specific

about how much USD/VND? How long does it take, to end the date/month/year? How?
Where does the capital and human resources come from?
M = measurable: Can be measured. The goal must have a unit, a specific number that
can be measured. For example, %; USD / VND; hour, day, month; kg; ton; turns of
customers, etc. By the end of the year and by the end of the program, it can be determined
whether the plan reaches or does not reach the goal.
A = Achievable: Can be obtained. The goal should be high enough to take advantage
of the market potential and make the most of the capabilities of the enterprise, but also
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reliable. Because if you set the goal that everyone can recognize that it is unachievable, no
one will try to do anything.
R = Realistic: Practical. The goal must be close to the capacity and realistic, do you
have enough resources and personnel to achieve that goal? Thus, the goal setter must know
the market, know others and know oneself.
T = Timed: There is a time limit. How long will it take to reach your goal?
2.6.2. Marketing environment analysis
The marketing environment analysis is one of the basic stages in how each company can
shape the right strategies. Due to the volatile nature, difficult to control and completely
unstable, the marketing environment touches deeply on the life of the company. The changes
that occur in this environment cannot be called slow and difficult to predict. It can cause big
surprises and heavy consequences. As a result, the company needs to pay close attention to
all the evolutions of the environment by constantly reviewing, tracking, making predictions
and evaluating the environment. Moreover, with the particulars of the marketing, it is
required to conduct research and collect market information to tailor marketing strategies to
meet new threats and opportunities in the marketplace.
2.6.2.1. Macro environment:
Companies, suppliers, marketing intermediaries, customers, competitors, and the public are
all operating in the vast macro-environment of forces and the tendency to create

opportunities, at the same time threats. These forces are "uncontrollable" forces that the
company must monitor and cope with. In the rapidly changing global picture, the company
must monitor seven major forces, namely the economic, natural, scientific-technological,
political-legal, cultural & social environment and the global environment.
2.6.2.2. Micro-environment:
a/ Industry environment analysis:
Managers cannot form a long-term orientation or a strategic decision if they do not have a
deep understanding of the strategic situation of the company, the nature and conditions of the
competition it faces, how to create the harmony between resources and capabilities with
those conditions. Therefore, Michael E. Porter has developed a framework that helps
executives identify the opportunities and threats faced by an enterprise in an industry.
Porter’s framework is called the 5 Force Competitive Model. Porter pointed out that the
stronger the force, the more limited the ability of existing companies to increase prices and
get higher profits.
b/ Internal analysis:
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