1.
Vietnam Cell Phone Proposal
Sarah Daniels, Kim DiVincenzo, Peter Gett, Seda Gokoglu
2. Vietnam
Vietnam is a country going
through rapid changes as
they become a more global
player in world trade and
increase the connectivity
within their country.
3. People
¾ live in rural areas
4 basic tenets of culture
Allegiance to family
Yearning for a good name
Love of learning
Respect for others
4. Needs
Independent, Economic Sustainability
& Increased Exports
Stagnant agricultural productivity due
to lack of efficiencies and
environmental conditions
Majority of rural population (3/4 of
population) grows and sells crops
22% of GDP, 30% of exports, and 60%
of employment are in the agricultural
sector
Became a member of the WTO in Jan.
of 2007
5. Needs
Increase Connectivity Across Vietnam Business Sector
Behind other countries in terms of ICT trade metrics
The government working to bring the country online
Connectivity strong on consumer side but business
community is far behind
Current cell phone market is on
younger generation using data snacking
6. Opportunity
Bring business communications to the agricultural sector
Microsoft pilot program confirms the need for this type
of business entry
Sugar cane famers were given phones with SMS
texting to improve efficiency & productivity
100% of farmers were in support
7 out of 10 said service exceeded expectations
98% would continue to use service
7. Solution
Develop a cell phone designed
specifically to increase
agricultural productivity and
efficiency as well as improve
connectivity in rural areas
8. Positioning
Frame of reference: B2B communications
Target audience:
Farms in need of streamlining operations
Specifically coffee production companies
Coffee is the country's second-largest agriculture product export
item in terms of value, after rice.
Decreases in commodity prices could
impact profitability
Government is pursuing higher quality
coffee through careful and slow production of
Arabica beans
9. Positioning
Target audience Cont.
Vinacafe (Vietnam National Coffee Corporation)
Largest member of the Association of Coffee and Cacao
Accounts for 20-25% of coffee production and exports
56 companies, enterprises and agricultural fields
Also export pepper and cashew nuts
Looking for joint ventures with mutual
benefit
10. Positioning
Points of Parity Points of Difference
Talking Agricultural focus
Texting Government support
Simplistic design and enhanced
Picture messaging durability
3G availability Locally made
Applications specific to the
agricultural industry that keep
farmers and factory counterparts
up to date on road, weather and
crop conditions as well as pricing
Environmentally minded
13. Objective
Sign contracts with 25% of agricultural business within 3
years of market entry
Achieve a minimum satisfaction rating of 8.5 with all
customers
14. Marketing Plan
Product
High performing talk, texting, picture messaging features
Made for rugged work environment
Simple design and easy to use to use features
Large buttons, loud speakers, large screen, light, attachable to work belt, built in
flashlight
Business specific applications
Real time updates on crop prices, weather reports, road conditions, crop health
Waterproof cases
Variety of belt clips
15. Marketing Plan
Support
24/7 call center
On-site training and tech support
Unique wear and tear warranty
Variety of payment plans including cash
Government financing available
Portion of proceeds go the environmental causes
Strict QA standards, faulty cell phones replaced immediately
16. Marketing Plan
Value Pricing Strategy
Product design and delivery
Simplistic design and minimal technological capabilities enable low cost
structure
Product costs
Leverage efficient manufacturing technology by partnering with Thuan Phat
Only local cell phone company
Annual capacity of 3 million units
Product Prices
Leverage competitive success in the low end market by introducing phones at
VND 3 million
Government support and financing enable further
financial incentives
17. Distribution
Use Thuan Phat to manufacturer products
Not distributing to 3rd party retailers
Use our own sales force to sell
Provide store to door delivery (like Snapple)
18. Media Plan
Channel Strategy
Utilize indirect and direct channels to reach target businesses
Media Advertising: Radio, Newspaper
Place Advertising: Billboards
Direct Marketing: Newsletters, postcards, flyers, telephone
Online: Ads on business news websites, e-mail ads
Event Marketing: Sponsoring a tree planting event
Personal Selling
19. BTL & Internet Strategies
Skywriting
Digital billboards on delivery trucks
Agri-APP scavenger hunts
20. Brand Extensions
Short-Term
Accessories: Phone cases, Clips, Head pieces
Long-Term
Develop similar coordination systems for other crops (Rice, sugar
cane, etc.)
Expand into the industrial industry
22. CRM
Provide excellent personalized customer service
Continue R&D to identify future needs and wants of
businesses we are servicing or plan to service
Provide regular updates on environmental practices and
achievements
Editor's Notes
Social/CulturalPopulation: 90,549,390Urban pop: 30% of total populationLack of local professionals and market leadershipLocals missing working attitude, professionalism, global mindsetMedian age 27.8Urban population = 30%High risk for major infectious diseases20.2% children underweight94% literatevalue system is based on four basic tenets: allegiance to the family, yearning for a good name, love of learning, and respect for other peopleWomen play a major role in managing financesFamily is very importantWork from early morning until early evening with extended rest period in the heat of middayUrban Vietnamese Stroll in great numbers on evening and weekends, especially in the parks and along the banks of the lakes and riversIn larger cities, young people enjoy western dancing and listening to western music in coffeehousesTwo large distinctive groups: Hanoians & Saigonese
Stagnant Agricultural productivity -Slow rate of investment in agricultural diversificationUnderdeveloped marketing channels, institutions, and infrastructure,. Farmers don’t receive timely information on crop prices; Lack of roads and road troubles prevent them from getting their crops to market on timeVulnerability to natural hazards (floods and storms cause crop failure and livestock disease)Growing urban industrialization and population migration are degrading environment in Hanoi and Ho Chi Minh CityDeforestation and soil degradationWater pollution and overfishing threaten marine lifeLimited potable water supplyMajority of people in rural areas make living by growing or selling crops90% of the poor in Vietnam (3/4 of the population) live in rural areas – which is why rural development and agriculture are critical to Vietnam’s development. Agriculture accounts for 22% GDP, 30% exports, 60% unemployment
Vietnam leaped up four ranks to stand at 15th on the 2010 Connectivity Scorecard, Meanwhile, the business community scored 0.19 points in terms of telecom infrastructure and 0.23 point in terms of telecom spectrum usage and skills, much lower than the maximum of 0.72 points and 0.79 points, respectively.Industry insiders said domestic businesses should pour more investment into IT facilities if they want to narrow the technological gap with other nations.
LookAtVietnam – Microsoft Viet Nam LLC and Nghe An Tate & Lyle (NAT&L) Sugar Cane factory met on Thursday and declared the initial stage of their automatic short messaging system (SMS) pilot project a success.The pilot project sponsored by Microsoft began this past February at the NAT&L sugar cane factory. Instead of having farmers come to the company’s representative offices or making phone calls to give and receive information, the usage of mobile phone text messages has been introduced to improve efficiency. The project aims to improve collaboration between factory and farmers, help farmers minimise their risk, reduce communication costs and improve the productivity and efficiency of both factory and farmers.“The SMS usage idea comes from Microsoft’s Unlimited Potential program, which aims to fill the IT gap between country-dwellers and city-dwellers in Viet Nam in order to improve their living standard”, said B Rimes Mortimer, GM Strategic Alliance, Microsoft Corporation.Approximately 25,000 households spread out over six districts in the northwest of Nghe An Province grow and supply cane to the NAT&L company. Via SMS, farmers have been receiving information regarding the harvesting timetable, accounts receivable, transport timetable and the information about vehicle’s ID.Every two minutes from November to April, a truck carrying 10-12 tonnes of cane rolls into the factory. This represents an enormous amount of harvesting and transport co-ordination between factory and farmers to meet production goals.In a survey given to 200 group leaders and farmers, who have directly used the SMS application in harvesting and transporting processes between cane fields and the factory, the results were quite positive. Out of the group leaders, 95 per cent saw benefits already from the new communication method, and 100 per cent of farmers were in support.The general consensus in the survey was that using SMS has helped group leaders and farmers get information from the factory conveniently and easily. Every 7 of 10 said that the service exceeded their expectations. Ninty-eight per cent of the interviewees said that they would continue to use this service.Hoang Van Dung, a sugar cane grower, said that with the support of this SMS system, he was able to be much more proactive in arranging his work, harvesting plan and transportation with less time and effort than before.NAT&L’s general director, Michael GoonewArdene said: “We are always concerned about the efficiency of our business and are happy we decided to co-operate with Microsoft to improve it.”“The first success of the pilot project at Nghe An Sugar Cane factory has opened opportunities to apply SMS in many other circumstances such as collecting an distributing agricultural products’ price information, informing farmers of environmental and disease information (storm forecast, area under impact of poultry flu epidemic),” said Mortimer.In addition, SMS is also now being used in an e-Government program to enhance the communication flow between state officials and farmers about policies, regulations, and for the government to answer people’s question, according to Mortimer.VietNamNet/Viet Nam News
http://www.new-ag.info/02-6/develop/dev04.htmlIn suitable areas, i.e. high altitudes, the government promotes the careful and slow expansion of Arabica plantations and washing stations. The ultimate goal for 2010 is to have a stable production at 600,000 tons, consisting of 70% Robusta and 30% Arabica.Brazil is #1 2.85 million metric tons Vietnam is #2 .85 million metric tons;Times-BoldUN food and agricultural organizationhttp://www.vietnamimportexportnews.com/vietnam-statistics/vietnam-export-statistics/39588-vietnams-coffee-exports-rise-53-percent-.htmlExport growth, meanwhile, stayed solid at 46% inJuly, even faster than the 36% registered in the firsthalf. But a notable portion of this growth camefrom price increases. For example, exports ofthree main non-oil commodities (coal, rice andcoffee) grew by 40% in the first seven months.But accounting for a 76% price increase,volume shrank by 21%. The price impact ofthese commodities accounted for about aquarter of the increase in total non-oil exports.The recent decline in commodity prices couldreduce this windfall growth. Moreover, weaknessin global demand is becoming deeper and morewidespread, with Europe and Japan now leadingthe pack. Growth in Vietnam’s other main exports,such as apparel and electronics, may also comeunder pressure, especially as the downturn isexpected to last well into 2009.About Vinacafe The Vietnam National Coffee Corporation (Vinacafe) is the biggest state owned corporation specializing in coffee producing, processing, and exporting in Vietnam. Established in 1995, Vinacafe is a corporation with 100% capital of the state. It is the largest member of the Association of Coffee and Cacao Vietnam. This is a large business, with up to 56 companies, enterprises and agricultural fields. Vinacafe annually accounts for about 20 - 25% of coffee production in the country, and about the same percentage of coffee been exports for the country.Beside coffee beans as their main commodity, Vinacafe also exports other agricultural products such as pepper, and cashew nuts, and imports fertilizers and facilities for the coffee industry. Vietnam has promoted the export of such high value products as roasted beans, ground coffee, instant coffee. Today, when talking about coffee in Vietnam, Vinacafe is a top-of-mind consideration. The company states directly that they are “willing to cooperate and enter joint ventures with domestic and foreign organizations on the basic of mutual benefit” (www.vinacafe.com.vn/en).
http://www.new-ag.info/02-6/develop/dev04.htmlIn suitable areas, i.e. high altitudes, the government promotes the careful and slow expansion of Arabica plantations and washing stations. The ultimate goal for 2010 is to have a stable production at 600,000 tons, consisting of 70% Robusta and 30% Arabica.Brazil is #1 2.85 million metric tons Vietnam is #2 .85 million metric tons;Times-BoldUN food and agricultural organizationhttp://www.vietnamimportexportnews.com/vietnam-statistics/vietnam-export-statistics/39588-vietnams-coffee-exports-rise-53-percent-.htmlExport growth, meanwhile, stayed solid at 46% inJuly, even faster than the 36% registered in the firsthalf. But a notable portion of this growth camefrom price increases. For example, exports ofthree main non-oil commodities (coal, rice andcoffee) grew by 40% in the first seven months.But accounting for a 76% price increase,volume shrank by 21%. The price impact ofthese commodities accounted for about aquarter of the increase in total non-oil exports.The recent decline in commodity prices couldreduce this windfall growth. Moreover, weaknessin global demand is becoming deeper and morewidespread, with Europe and Japan now leadingthe pack. Growth in Vietnam’s other main exports,such as apparel and electronics, may also comeunder pressure, especially as the downturn isexpected to last well into 2009.About Vinacafe The Vietnam National Coffee Corporation (Vinacafe) is the biggest state owned corporation specializing in coffee producing, processing, and exporting in Vietnam. Established in 1995, Vinacafe is a corporation with 100% capital of the state. It is the largest member of the Association of Coffee and Cacao Vietnam. This is a large business, with up to 56 companies, enterprises and agricultural fields. Vinacafe annually accounts for about 20 - 25% of coffee production in the country, and about the same percentage of coffee been exports for the country.Beside coffee beans as their main commodity, Vinacafe also exports other agricultural products such as pepper, and cashew nuts, and imports fertilizers and facilities for the coffee industry. Vietnam has promoted the export of such high value products as roasted beans, ground coffee, instant coffee. Today, when talking about coffee in Vietnam, Vinacafe is a top-of-mind consideration. The company states directly that they are “willing to cooperate and enter joint ventures with domestic and foreign organizations on the basic of mutual benefit” (www.vinacafe.com.vn/en).
http://www.new-ag.info/02-6/develop/dev04.htmlIn suitable areas, i.e. high altitudes, the government promotes the careful and slow expansion of Arabica plantations and washing stations. The ultimate goal for 2010 is to have a stable production at 600,000 tons, consisting of 70% Robusta and 30% Arabica.Brazil is #1 2.85 million metric tons Vietnam is #2 .85 million metric tons;Times-BoldUN food and agricultural organizationhttp://www.vietnamimportexportnews.com/vietnam-statistics/vietnam-export-statistics/39588-vietnams-coffee-exports-rise-53-percent-.htmlExport growth, meanwhile, stayed solid at 46% inJuly, even faster than the 36% registered in the firsthalf. But a notable portion of this growth camefrom price increases. For example, exports ofthree main non-oil commodities (coal, rice andcoffee) grew by 40% in the first seven months.But accounting for a 76% price increase,volume shrank by 21%. The price impact ofthese commodities accounted for about aquarter of the increase in total non-oil exports.The recent decline in commodity prices couldreduce this windfall growth. Moreover, weaknessin global demand is becoming deeper and morewidespread, with Europe and Japan now leadingthe pack. Growth in Vietnam’s other main exports,such as apparel and electronics, may also comeunder pressure, especially as the downturn isexpected to last well into 2009.About Vinacafe The Vietnam National Coffee Corporation (Vinacafe) is the biggest state owned corporation specializing in coffee producing, processing, and exporting in Vietnam. Established in 1995, Vinacafe is a corporation with 100% capital of the state. It is the largest member of the Association of Coffee and Cacao Vietnam. This is a large business, with up to 56 companies, enterprises and agricultural fields. Vinacafe annually accounts for about 20 - 25% of coffee production in the country, and about the same percentage of coffee been exports for the country.Beside coffee beans as their main commodity, Vinacafe also exports other agricultural products such as pepper, and cashew nuts, and imports fertilizers and facilities for the coffee industry. Vietnam has promoted the export of such high value products as roasted beans, ground coffee, instant coffee. Today, when talking about coffee in Vietnam, Vinacafe is a top-of-mind consideration. The company states directly that they are “willing to cooperate and enter joint ventures with domestic and foreign organizations on the basic of mutual benefit” (www.vinacafe.com.vn/en).Sustainability is our middle nameCoordinate sustainabilityCultivate the future Coordinate the futureCommunicate. Sustain. Improve.Communicate. Cultivate. Improve.Raising the bar
Support:24/7 call centerOn-site tech supportUnique wear and tear warrantyportion of proceeds go to environmental causesStrict QA standards, faulty cell phones replaced immediately
