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VIETTEL TELECOM. Business Communication. Group 6 Tran Cao Anh Ngo Anh Tuan Trinh Thi Thuy Tien Truong Thi Ngoc Dien Pham Duc Thanh Nhan. Lecturer: Mr . Do Huu Nguyen Loc. June 2012. Executive Summary. A Vietnamese major mobile network operator Headquarter: Hanoi, Vietnam.
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VIETTEL TELECOM Business Communication Group 6 Tran Cao Anh Ngo Anh Tuan Trinh Thi Thuy Tien Truong Thi Ngoc Dien Pham Duc Thanh Nhan Lecturer: Mr. Do Huu Nguyen Loc June 2012
Executive Summary A Vietnamese major mobile network operator Headquarter: Hanoi, Vietnam. Owned and operated by the Ministry of Defense. Operated in 2004 as a GSM launcher, The fourth network in Vietnam (after Mobifone, Vinaphone and S-Fone) and currently the biggest telecommunications provider, contributing 38% to the total mobile communication market
Vision • Every Person: One Broadband Mobile • Every Family: One Fixed Phone; One Broadband Internet; One HD Television • Timing: The Next Decade Mission & Vision Mission Always cares, listen, understand and respect the customer, member of company and partners to create product and service more and more perfectly Every customer is a special individual that needs to be respected, cared, listened, understood and served specially. Always innovation As society is the foundation for business developing, VT guarantees to reinvest for society by connecting business activities to social activities and humanity activities
Population (2011) : 90 million Population growth (2011) : 1.077% Life expectancy at birth (2011): 72.18 years Adult literacy rate (2011) : 94% Urban population (2011) : 30% Urban pop. in largest 6 cities : 72% (urban pop.) Vietnam Socio Demographic
Percentage of Population age < 30: 50% • Total Mobile Subscribers : 45 millions • Forecasted Mobile User Growth: 75 %/annum • No. of Mobile Operators: 6 (GSM) • Postpaid / Prepaid user: 10 / 90 Industry review
12/2011: Viettel officially acquired EVN Telecom and became the biggest provider in Vietnam • Mobifone and Vinaphone tend to merge in the near future • 3/2012: Sfone has been accepted to switch from CDMA to HSPA • 4/2012 VimpelCom jumped out from Gtel Mobile (Gtel take over) • Number of mobile subscribers (11/2011 - GOV): 116 million compare to 150 million by the end of 2010) -> reduce the number of virtual subs Industry review
Industry review Number of Providers (2012)
Industry review Number of mobile subscribers (2011)
CAGR 23.35% Industry review
$ per month Market review
Users tend to utility for entertainment and working needs • Focus on value-added services • Attract new subscribers and increasing operators’ revenues by mobile applications • Vietnamese applications • 3G mobile technology (12.8 million users - 2011) Trend
VNPT (MobiFone & Vinaphone) • Weaknesses • Services in rural areas is poor or non-existent • Low labor productivity • Strengths • Available & stable infrastructures • Wide-spread • Country’s leading telecoms operator with presence in fixed-line, mobile and internet • Serves 53% of mobile subscribers
WEAKNESSES • - Average quality of services • - Customers’ information management • - Unstable price • - Changing mobile service habit of customer • Opportunities • - Stable politics and legislation • - Communication/Using technology/Entertainment in mobile demands increase quickly • - 3G & 4G developing • - Abroad investment (Haiti, Laos, Cambodia, Peru, Mozambique) STRENGTHS - Market leader - Strong reputation - Strong financial capacity (belongs to government) - A variety of mobile phone services to meet the customer’s needs - Good customer services - Nationwide coverage (rural, sea) - Young, skilled and creative staff (high productivity) - Competent management board • THREATS • - Big competition from VNPT, Beeline, Vietnamobile (pricing war) • - Virtual users VIETTEL’s SWOT
Any Where: 100% Population Coverage • Any Time: No Congestion For Peak Time • Any Body: Different Packages • Any Price: 0 & Under 0 Strategies
Product strategy is creating the product that different from competitors • Invest in R&D to develop new solutions • Save expense costs • Optimize to improce product quality • Reduce price Product
PRE-PAID PACKAGES Hi school Sea+ Father and son SumoSim TOMATO Product
PRE-PAID PACKAGES Economy Student Happy zone Ciao Tourist Product
POST-PAID PACKAGES Basic+ Vip Family Corporation Product
A cheap mobile service company Descending price for subscriber and charges by 6s + 1s (free for first 6s) Building the package price depends on target audiences of company From 2004 to middle June of 2009, the lowest price in the country Price
1st June, 2009, average fee decreased more than 15% • Middle in June, 2009, the first time Viettel has charges higher price compared to Mobifone and Vinaphone. • In 1st Feb, 2010, discount 5% for all pre-paid mobile subscribers in the package. • "special price for special hour" • With internal calls: set up 500VND/min in special hours (only from 0 AM to 6 AM every day of the year) Price
Price Price package: prepaid
Price Price package: postpaid
Viettel Commission agency level 1 Commission agency level 2 Placement Stores Collaborators Customers • distribution channels diagram
Widely distribution • Monopoly distribution Placement
The quotation " rural encloses urban" and VT decided to apply this strategy • 13,000 telecommunication stations • Not only in the urban but also in the rural. Placement
2,500Km Border Coverage • 2,500Km Coastal Coverage • (100Km Radius) • 100 Islands • Viettel: The only company covers these areas Placement À Lố
Promotion • Logo • Ellipse icon continuous movement, creative non-stop (Western culture), the yin and yang blended together (Oriental culture) • Slogan • "Say it Your Way" • Shows the interest, listen to customer needs, opinions, and ideas of each individual within the Company
Advertising • On the media (newspaper, radio, television, etc. • Outdoor (billboards, posters ...) • Internet • Promotion • Free money & traffic monthly (Hi-school, Student) • Adding more money when activating new account • Imuzik Promotion
Direct Marketing • Viettel did a lot of advertising at the time of the strategy "rural encloses urban“ • Public Relation • Sponsorship for TV programs • Sponsorship for humanity activities Promotion
Main sponsorship for ASIAN 2010 Promotion Viettel sponsors 1.5 billion VND for the campaign "Smile of Children"
Appendix. 2011: 116,012 tỷ đồng
Appendix. 2011: ~18,000 tỷ đồng
Appendix. 2009: 25 triệu 2010: 49.9 triệu 2011: 58 triệu
VIETTEL’S OVERVIEW INVESTMENTS • *Cambodia (2006): • Viettel stakes: 100% • Services offering: (full-licensed operator) • Network: No. 1 network Infrastructure (16,000 km FO; 5,000 BTS (2G+3G)). • No. 1 mobile subs: 3.3M (2010) • High Ranking: 1 out of 8 biggest operators in Cambodia (Wireless Intelligence of GSMA 2Q/2009). • Laos (2007) • Viettel stakes: 49%; LAT: 51% (JV since Apr 2008) • Brand: Unitel (Sept 2009); • Network: 12,000 km FO; 2,000 BTS (2G+3G). • Customer base: 2,000,000 subs (mobile +fixed lines).
VIETTEL’S OVERVIEW INVESTMENTS • Mozambique (Q4/2010) • Success Bidder for a telecommunications project with contribution capital of US$ 493M • Haiti (Q1/2010) • Success Bidder for a telecommunications project with contribution to investment capital of US$ 59M • Peru (Q1/2010) • Success Bidder for the 4th mobile operator in Peru