Market and Channel Viability of VMONEY in Lao PDR

1. Jessie Apiag
Researcher
E-Top Up and Vmoney: Viability of Potential
Market and Channel of Distribution

2. The year 2015 is the year for the ASEAN Economic Community. In preparation
for this, NCC is going to launch its new products: E-top up and Vmoney. Prior to its
launching, a survey to the students at the National University of Laos and merchants at
Talat Sao and San Jiang were conducted.
The objective of this research is to allow us to evaluate the viability of our
potential market and channel of distribution before making any long-term decisions, to
minimize the risk and enhance the likelihood of success.
The descriptive approach was used in conducting the survey. It means an
approach that describes the populations characteristics such as by asking what, when,
where, who and how questions.
For the National University of Laos, this survey didn’t apply any probability
statistical method. A non-probability sampling using the purposive sampling method
was used. The purposive sampling method was used to easily reach the targeted sample
quickly. A total of 1, 166 students were taken as samples. The survey was administered
while they are inside of their classrooms and the subject teacher acted as an invigilator
For the Merchant targeted groups in Talat Sao and San Jiang mall, a simple
random plus purposive sampling methodology was used. A total of one hundred eighty-
five (185) merchants were interviewed during the survey. The survey was conducted on
a one-on-one interview.
The year 2015 is the year for the ASEAN Economic Community. In preparation
for this, NCC is going to launch its new products: E-top up and Vmoney. Prior to its
launching, a survey to the students at the National University of Laos and merchants at
Talat Sao and San Jiang were conducted.
The objective of this research is to allow us to evaluate the viability of our
potential market and channel of distribution before making any long-term decisions, to
minimize the risk and enhance the likelihood of success.
The descriptive approach was used in conducting the survey. It means an
approach that describes the populations characteristics such as by asking what, when,
where, who and how questions.
For the National University of Laos, this survey didn’t apply any probability
statistical method. A non-probability sampling using the purposive sampling method
was used. The purposive sampling method was used to easily reach the targeted sample
quickly. A total of 1, 166 students were taken as samples. The survey was administered
while they are inside of their classrooms and the subject teacher acted as an invigilator
For the Merchant targeted groups in Talat Sao and San Jiang mall, a simple
random plus purposive sampling methodology was used. A total of one hundred eighty-
five (185) merchants were interviewed during the survey. The survey was conducted on
a one-on-one interview.
The year 2015 is the year for the ASEAN Economic Community. In preparation
for this, NCC is going to launch its new products: E-top up and Vmoney. Prior to its
launching, a survey to the students at the National University of Laos and merchants at
Talat Sao and San Jiang were conducted.
The objective of this research is to allow us to evaluate the viability of our
potential market and channel of distribution before making any long-term decisions, to
minimize the risk and enhance the likelihood of success.
The descriptive approach was used in conducting the survey. It means an
approach that describes the populations characteristics such as by asking what, when,
where, who and how questions.
For the National University of Laos, this survey didn’t apply any probability
statistical method. A non-probability sampling using the purposive sampling method
was used. The purposive sampling method was used to easily reach the targeted sample
quickly. A total of 1, 166 students were taken as samples. The survey was administered
while they are inside of their classrooms and the subject teacher acted as an invigilator
For the Merchant targeted groups in Talat Sao and San Jiang mall, a simple
random plus purposive sampling methodology was used. A total of one hundred eighty-
five (185) merchants were interviewed during the survey. The survey was conducted on
a one-on-one interview.

3. The Students’ Perspective
The National University of Laos has a total population of more or less thirty
thousand students (30,000). Inside the campus are eight faculties: The Faculty of
Letters, Faculty of Education with more or less 1,600 students, Faculty of Economics and
Business Administration with a known population of 2,865 students, Faculty of
Environmental Sciences with more or less 1,450 students, Faculty of Architecture,
Faculty of Forestry, Faculty of Social Sciences and Faculty of Sciences.
The respondents were taken from the first four faculties; Faculty of Letters,
Education, Economics and Business Administration and Environmental Sciences. Most of
the students that were surveyed owns a smart phone that comprises to seventy-one per
cent (71%) or 825 students. Twenty-eight per cent (28%) of them still uses analog
phone.
In figure 2 of annex 1, a significant figure of 70 per cent reveals that students
would like to buy things using virtual money instead of cash. Only 29 per cent still
prefers cash a medium of payment. Similarly, in figure 3 of annex 1, respondents have
almost the same perception towards other services that they can get from their mobile
phone. At top of the list is Savings. Twenty-four per cent (24%) of the respondents said
they would like to save money in their mobile phones. This is followed by Money
Transfer and Bills Payment that both got a significant figure of 19 per cent. A notably 17
per cent of the respondents chooses airtime top-up that should be included in a mobile
transaction. Close to that is the Online shopping which comprises to 15 per cent.
Furthermore, the survey tells us that 65 per cent or 756 students would like to
sell E-Top up and lottery. With the total population of more or less 30 thousand
students divided in eight faculties, these students can make a significant assistance in
bursting our sales. (Figure 4, annex 1)
As for the amount of money they are inclined to invest in selling e-top u and
lottery, thirty-five per cent (35%) of the respondents or 264 students are willing to
invest fifty thousand LAK and below. Twenty-three per cent of the respondents or 175
students are favorable to invest from fifty-thousand but less than one hundred
thousand LAK. Sixteen per cent (16%) of the respondents or 120 students are likely to
The Students’ Perspective
The National University of Laos has a total population of more or less thirty
thousand students (30,000). Inside the campus are eight faculties: The Faculty of
Letters, Faculty of Education with more or less 1,600 students, Faculty of Economics and
Business Administration with a known population of 2,865 students, Faculty of
Environmental Sciences with more or less 1,450 students, Faculty of Architecture,
Faculty of Forestry, Faculty of Social Sciences and Faculty of Sciences.
The respondents were taken from the first four faculties; Faculty of Letters,
Education, Economics and Business Administration and Environmental Sciences. Most of
the students that were surveyed owns a smart phone that comprises to seventy-one per
cent (71%) or 825 students. Twenty-eight per cent (28%) of them still uses analog
phone.
In figure 2 of annex 1, a significant figure of 70 per cent reveals that students
would like to buy things using virtual money instead of cash. Only 29 per cent still
prefers cash a medium of payment. Similarly, in figure 3 of annex 1, respondents have
almost the same perception towards other services that they can get from their mobile
phone. At top of the list is Savings. Twenty-four per cent (24%) of the respondents said
they would like to save money in their mobile phones. This is followed by Money
Transfer and Bills Payment that both got a significant figure of 19 per cent. A notably 17
per cent of the respondents chooses airtime top-up that should be included in a mobile
transaction. Close to that is the Online shopping which comprises to 15 per cent.
Furthermore, the survey tells us that 65 per cent or 756 students would like to
sell E-Top up and lottery. With the total population of more or less 30 thousand
students divided in eight faculties, these students can make a significant assistance in
bursting our sales. (Figure 4, annex 1)
As for the amount of money they are inclined to invest in selling e-top u and
lottery, thirty-five per cent (35%) of the respondents or 264 students are willing to
invest fifty thousand LAK and below. Twenty-three per cent of the respondents or 175
students are favorable to invest from fifty-thousand but less than one hundred
thousand LAK. Sixteen per cent (16%) of the respondents or 120 students are likely to
The Students’ Perspective
The National University of Laos has a total population of more or less thirty
thousand students (30,000). Inside the campus are eight faculties: The Faculty of
Letters, Faculty of Education with more or less 1,600 students, Faculty of Economics and
Business Administration with a known population of 2,865 students, Faculty of
Environmental Sciences with more or less 1,450 students, Faculty of Architecture,
Faculty of Forestry, Faculty of Social Sciences and Faculty of Sciences.
The respondents were taken from the first four faculties; Faculty of Letters,
Education, Economics and Business Administration and Environmental Sciences. Most of
the students that were surveyed owns a smart phone that comprises to seventy-one per
cent (71%) or 825 students. Twenty-eight per cent (28%) of them still uses analog
phone.
In figure 2 of annex 1, a significant figure of 70 per cent reveals that students
would like to buy things using virtual money instead of cash. Only 29 per cent still
prefers cash a medium of payment. Similarly, in figure 3 of annex 1, respondents have
almost the same perception towards other services that they can get from their mobile
phone. At top of the list is Savings. Twenty-four per cent (24%) of the respondents said
they would like to save money in their mobile phones. This is followed by Money
Transfer and Bills Payment that both got a significant figure of 19 per cent. A notably 17
per cent of the respondents chooses airtime top-up that should be included in a mobile
transaction. Close to that is the Online shopping which comprises to 15 per cent.
Furthermore, the survey tells us that 65 per cent or 756 students would like to
sell E-Top up and lottery. With the total population of more or less 30 thousand
students divided in eight faculties, these students can make a significant assistance in
bursting our sales. (Figure 4, annex 1)
As for the amount of money they are inclined to invest in selling e-top u and
lottery, thirty-five per cent (35%) of the respondents or 264 students are willing to
invest fifty thousand LAK and below. Twenty-three per cent of the respondents or 175
students are favorable to invest from fifty-thousand but less than one hundred
thousand LAK. Sixteen per cent (16%) of the respondents or 120 students are likely to

4. invest one hundred thousand but less than two hundred thousand LAK. An expressive
seven per cent and six per cent of the respondents reveals that they are willing to invest
from five hundred thousand and above. This percentage (6% and 7%) might not be so
big enough to catch our attention but what catches the attention of the researcher is
the amount of money they are passionately willing to invest. (See figure 5, annex 1)
More so, eighty-five per cent (85%) of the respondents or 989 students would
like to have a membership card. (See figure 6, annex 1). The survey further reveals that
these students feel the convenience of using this prepaid card in restaurants which
comprises to twenty-four per cent or 664 students. And probably because most of them
have a means of transportation, their second choice where they feel that this prepaid
card have great use is in gasoline stations which comprises to twenty-one per cent or
570 students. This was followed by shopping malls that comprises to seventeen per cent
or 483 students. Not far behind is the grocery stores and online shopping which
comprises to fourteen per cent or 380 students and eleven per cent or 307 students
respectively. (See figure 7, annex 1)
With respect to the amount of money they are happy to supply into their
prepaid card, twenty-three per cent (23%) of the respondents or 227 students are
favorable to supply from one hundred thousand but less than two hundred thousand
LAK. Close to this is twenty-one per cent (21%) of the respondents or 207 students are
happy to allocate below fifty thousand LAK. Please refer to figure 8 annex 1 for more
detailed amount.
The Merchants’ Perspective
There are 883 merchants in the targeted malls. Talat Sao has the highest
number of merchants which comprises to 68 per cent or 600 merchants while San Jiang
has only 32 per cent or 283 merchants. (See figure 1, annex 2). Of the total population,
21 per cent or 185 merchants were taken as samples. (See figure 2, annex 2.)
Figure 3 of annex 2, tells us that majority of the respondents’ uses smart phone
which comprises to 86 per cent or 157 respondents, followed by 14 per cent who uses
analog phones.
The survey also reveals that of the services presented, majority of the
respondents chooses E-top up, bills payment and money transfer which comprises a

5. total of 60 per cent of the responses or 109 merchants. A significant figure shows that
36 per cent of the respondents prefer to sell tangible products. (See figure 4, annex 2).
More so, of the 109 merchants who responded on question # 2, only 26 per cent
of the respondents or forty-eight (48) merchants express their willingness to deposit
money to avail the above mentioned services. This implies that though they are
interested with our products, they still need to understand the whole concept of it (See
figure 5, annex 2).
Sadly, majority of the respondents which comprises 65 per cent or 119
merchants will not accept virtual money as way of payment. This could mean that either
they don’t understand what’s mean by virtual money or they prefer to have a cash
payment. (See figure 6, annex 2)
In contrast to figure 6, figure 7 of annex 2 reveals with a significant figure of 52
per cent of the respondents or 95 merchants will accept payment via prepaid card if we
provide them a card reader. The remaining 46 per cent preferred cash as payment for
every goods and services sold.
With regards to the monthly rental of the card reader machine, majority of the
respondents feel that this should be free. They comprise 50 per cent of the total
responses. The remaining 50 per cent of the respondents probably chooses the ranges
of amount according to the sizes of their businesses. (See figure 8, annex 2)
Furthermore figure 9 of annex 2 tells us, of the 52 per cent who accepts card
payment, 37 per cent of the respondents or 33 merchants thought that using our
membership card as a way of payment should be free of charge. A significant figure of
24 per cent said that customers should be charge 5,000 LAK followed by 2 per cent of
transaction amount that comprises to 19 per cent while 15 per cent of the respondents
think that they should be charged 1 per cent of transaction amount.

6. GENERALIZATION
Merchants and students have different perspective towards our product.
Questions may arise from both respondents. On the side of the student, they will
probably ask “What are the benefits I can get if I patronize these products?” Promoting
our products to create awareness and converting their behavior is the key to the usage
of Vmoney and E-top up. Failure to do so is a risk for our success. Once they understand
and ready to be converted, the next question would be this: “Where will I get these
products?”
Channel of distribution plays a very vital role for these products. The target
market may be ready to be converted and are ready to use them but without the
strategic channel, success is also at stake.
On the side of the merchants, several questions may arise. They will probably
ask, “Who will patronize these products?””How will I sell these products?” The survey
tells us that majority of our merchants are unfamiliar and are unaccustomed to these
products. The researcher views this as an opportunity to do business with them. They
may be unfamiliar and unaccustomed with our products but with the right push and a
more effort in introducing these products, surely we can reach them.
Winning both the target market and the channel of distribution are a likelihood
of success.

7. Annex 1
Figure 1

8. Figure 2

9. Figure 3

10. Figure 4

11. Figure 5

12. Figure 6

13. Figure 7

14. Figure 8

15. Annex 2
Figure 1
Figure 2
Annex 2
Figure 1
Figure 2
Annex 2
Figure 1
Figure 2

16. Figure 3Figure 3Figure 3

17. Figure 4

18. Figure 5

19. Figure 6Figure 6Figure 6

20. Figure 7Figure 7Figure 7

21. Figure 8

22. Figure 9