Executive Summary
The Firm
Vision6 an Australian company was established in the year 2001. The company is co-owned by Evan fortune and Mathews Myers. The two friends and colleagues identified an opportunity that would help businesses achieve great marketing results by integrating e messaging into their marketing mix. Vision6 wants to launch a subsidiary in Vietnam, after successfully operating in the Australian online marketing industry. Vision6 aims at attaining 20% of the overall on line marketing business in Vietnam and 2% of the advertising business within by end of the first year of operating in Vietnam. In the long term, Vision 6 aims at expanding its business into other potential markets in Vietnam.
The Business environment
Vietnam is one of the fastest growing internet countries in the world since 1997 when the World Wide Web was accessible in the country. With a population of close to ninety million, Vietnam has over thirty million internet users. Vietnam’s internet use has reached the level of key emerging markets with the number of internet increasing astronomically at a rate of 10,882% since launch of internet in the country.
Initially most organizations in Vietnam were not keen on advertising. However, today most companies have changed their perception and advertising is key component of marketing in the country. Companies not only use television, billboards, and radio but also incorporate on line marketing in their promotional and marketing campaigns.
Primary most Vietnamese business set up on line marketing to increase their international presence through exports. Companies engaging in international business through on line marketing have been experiencing significant growth in their profitability.
Competition
The threat of new entrants is relatively high. International companies such as IBM, Microsoft, and Oracle have been offering computing services and could easily expand into on-line marketing. Currently venturing into on-line marketing for large companies is not very attractive because of the high cost of establishment. However, with time to reduce threat of new entrants Vision6 should ensure they have a strong brand reputation.
The threat of substitutes is relatively high as companies are venturing into mobile and social networking advertising. To reduce the threat of substitutes it is imperative that Vision 6 keeps up with the marketing trends by adopting new trends immediately they are launched into the market. Market rivalry in the industry is relatively low as the companies in the industry lack experience and do not long term vision and objectives as Vision 6.
Market
The market for Vision6 is primarily small medium enterprises and large corporate in both the goods and service industries. The global economy has transformed drastically with most companies becoming knowledge-based organizations. This presents a huge opportunity for Vision6 as their market expands into companies selling market information on-line.
Products and services
Vision6 offers consumers with a website platform with numerous features and email templates to help consumers to create and send emails for on-line marketing campaigns. To remain competitive Vision6 should venture into advertising on social networks and mobile technology.
Summary of key elements of marketing activities for projected period (usually three years)
In keeping in line with Vision6’s short-term an long-term objectives the company will of acquiring twenty percent of email marketing in Vietnam by the end of operation and two percent of the overall advertising market and eventually expanding into other potential markets Vision6 requires to launch an intensive marketing plan. The company can use advertising on television, radio and newspapers to create awareness about its services. Additionally personal selling on the telephone and in person will help the company to create a rapport with small and medium enterprise as well as large companies. In addition Vision6 can use on line marketing to reach its target market.
Projected outcome
With an intensive marketing strategy, which should be implemented in phases Vision 6 will be able to, acquire and surpass its target market share. As the company grows in two years time, it should be able to venture into new markets in Vietnam.
Introduction
According to Hiebing, Hiebing, and Cooper (2004), the marketing plan of an organization should be based on the organizations long term and short-term objectives. Vision6 has short-term objective of achieving two per cent of the overall market share in the on line marketing industry by the first year of operating in Vietnam and achieve profitability of $511300. The company has a long-term objective of venturing into other viable markets in Vietnam and forming strategic alliances. Additionally the company wants to build a strong brand reputation.
Currently organizations in the Vietnam market are shifting into on line marketing as the number of internet users grows. However, with time the service offered by Vision 6 might become obsolete as most organization find more technologically advanced methods of communicating with their consumers. To increase its chances of survival Vision 6 will need to incorporate product diversification into marketing strategy. The product diversification strategy can be implemented through strategic alliances with other companies.
Mission
The mission statement focuses on providing the organizations customers with platform where they can connect with the world through e-messaging campaigns. Vision6 offers its consumers a variety of support service, which makes their market campaigns successful.
Product Description
Vision6 offers a service comprising e-massaging campaigns that have the following features managing contacts for its client, designing stunning emails. Exceptionally unique web forms, conditional content, corporate accounts and reporting. Each of these features performs a unique function which all aim at making the clients marketing campaign a success. For instance the through the managing contact feature Vision6 is able to maintain a customer database for each of its clients. Vision6 has software, which enables the organization to collect contacts for its corporate clients.
Vision 6 has hundreds of templates, which can be tailored to suit each client, which enables the organization to create stunning emails. Trough use of the web forms feature vision 6 is able to collect emails for its clients, which the client can use to create awareness about its products and services. Conditional content allows the client to tailor each email depending on the profile of a customer. The feature can hide or reveal some portion of a standard email depending on the customer’s profile. Corporate accounts enable a client to centralize all its marketing activities and have control over their marketing activities. Reporting enables all clients to generate a report on number of emails sent to its clients, opened emails, bounced emails and links clicked. The client is able to bench mark the companies performance based on the report.
Firm's core competencies
Vision 6 has a number of competences and resources, which has enabled the company to remain a market leader in the Australian online marketing industry. Vision 6 has strong email marketing management systems. The systems enable Vision6 to offer its clients a number of services including conditional emails, reporting, web forms and stunning emails. Vision6 also has highly skilled employees who are well trained, and always motivated to provide consumers with the best services.
Vision 6 has developed innovative ways of attracting consumers through its exceptionally unique support services it offers its clients. Vision 6 initial investment in a strong system, which can perform most of the functions in the organization, gives it a competitive edge because it only requires few employees thus reducing cost of operation.
Marketing
Vision6 offers its clients high quality products and services. The company has positioned itself as a prestigious brand name in the on line marketing industry in Australia. Vision6 will enter the Vietnam market by targeting medium and small size enterprises with its strong brand reputation.
Vision6 has an extensive advertising campaign using both the traditional and current medium of advertising. Most of Vision6 clients are business people made of both young and older age groups. To reach the old clients Vision 6 uses television, radio and print media to advertise. To reach the young generation Vision6 uses online marketing and social networks such as face book, twitter, and bloggers. Vision6 also uses sales public relations to create good publicity for the organization. In addition, the organization uses sales promotions by offering its clients thirty day trial package.
Primarily Vision6 uses two major channels of distribution for its product and services. The company employs direct customer distribution where it has direct contact with a client and collaborating where strategic partner resells its products and services to a third party.
Industry Analysis
The political environment in Vietnam is stable political however governments unpredictable actions present a huge challenge for business operating in the country. For example, although the Vietnam is always encouraging foreign investment in the country some actions such as arising corporate taxes for foreign company may act as major barrier for business in the country. Vietnam’s economic environment is very attractive because the markets are growing presenting good opportunities for investors in the country.
The demographic of Vietnam comprises of a large number of well-educated individuals most of whom use the internet constantly. The demographics also comprise a large number of young people who have access to the internet. Middle-aged persons also present large number of people using the internet. The demographics of Vietnam have greatly influenced the change in advertising by organizations in the country.
50% of internet uses have shown interest in online advertising by clicking on advertisements that catch their attention. However, the industry has been facing a huge challenge from e-mail spam, which prompted the government of Vietnam to issue a decree against spam email. All online marketing companies have to be careful not to violate spam laws. The technological environment is highly dynamic with consumers adopting new methods of communication in the market when they are launched.
Customer Benefit and Market Segments
Vision6 market is relatively the same although the needs of the market segments differ slightly. The company market segments include small and medium size enterprises and large companies. In Vietnam, Vision6 launched its products and service by targeting small and medium sized enterprises. However, in Australia the corporation offers its products and services to all three-market segments. Vision 6 segments the market is highly dependent on the number of internet users.
With an overall population of close to ninety million people, a third of the population uses the internet. Vietnam demographics have the largest number of growth in internet users worldwide. This presents an opportunity for businesses to market their products and service through the internet. Vision6 products and services enable its clients to create database of its customers, and send them stunning emails. Additionally customers can generate reports and use the results to bench their company’s performance.
Underlying assumptions behind forecasts
The initial capital outlay in the first year of operation is only two hundred thousand dollars, which will be provided Vision 6 Australia. Vision 6 Vietnam expects to gain two percent of the overall market share of online marketing, which translates to $511300 dollars with an expected growth of $128260 annually up to the fifth year. The Vietnam online marketing business presents a good opportunity for business because of the growing number of internet users in the country. The business environment is stable with relatively low political and legal interference from the government. Market rivalry in the industry is relatively low which reduces barrier of new entrants.
Potential market share achieved (and assumptions)
Vision6 expansion of its business into the Vietnam is largely because of the high growth market in the country. The expansion with not require a huge initial outlay. The initial outlay is only two hundred thousand dollars. Vision6 expects to get two percent of the on line advertising market within its first year of operation in the country which translates to over half a million dollars in revenue. The marketing strategy adopted by Vision6 will enable the company to achieve its financial objectives.
Marketing Objective
Vision marketing plans has four major objectives, which include:
Achievement of 2% of the online marketing and advertising business in Vietnam by the end of the first year
Expected revenue by the end of the first financial year should be $511300.
Formation of strategic alliances and partners
Expansion into other markets in the long term
Product concept
Vision 6 offers consumers with a website platform with numerous features and email templates to help consumers to create and send emails for on line marketing campaigns. Vision6 products and services enable its clients to create database of its customers, and send them stunning emails. In addition, customers can generate reports and use the results to bench their company’s performance.
New Product development
Vision 6 develops its products and services using a highly competent team of employees. New product development will help vision6 to achieve both its long-term and shorter market objectives.
Vision6 offers its clients high quality products and services and his positioned itself as a prestigious brand name in the on line marketing industry in Vietnam as well as Australia. To service competition and reduce threat of new entrants Vision6 will need to develop a stronger brand reputation in Vietnam.
Vision 6 products and services are developed through a unique system, which enables consumers to recognize. The system enables vision 6 to provide its clients with unique features, which are not available in the Vietnam on line marketing industry.
Vision 6 will use penetration pricing to launch its product into the Vietnam market. The low prices will help the company to acquire market share and gain consumer loyalty. After Vision 6 has established its market share, it will readjust its prices to normal.
Vision6 uses two major channels of distribution for its product and services. The company employs direct customer distribution where it has direct contact with a client and collaborating where strategic partner resells its products and services to a third party.
Vision6 has an extensive advertising campaign using both the traditional and current medium of advertising. Most of Vision6 clients are business people made of both young and older age groups. To reach the old clients Vision6 uses television, radio and print media to advertise. To reach the young generation Vision6 uses online marketing and social networks such as face book, twitter, and bloggers. Vision6 also uses sales public relations to create good publicity for the organization. In addition, the organization uses sales promotions by offering its clients thirty day trial package.
Vision6’s Vietnam subsidiary will operate from a small office in Ho Chi Minh City after launch of the business before the company acquires permanent premises if the market is viable. The subsidiary will require only ten employees most of whom will be recruited from the Vietnamese labor market. The rationale behind getting employees from Vietnamese labor is because the labor cost in Vietnam is relatively low which will enable Vision6 to offer consumers low prices. A manger will be expatriated from Australia to foresee the launching of the subsidiary and train the new staff. The subsidiary will use that same system and software used in Vision 6 Australia to serve customers.
The business environment in Vietnam presents a good opportunity for business. Vision6 has the resources and competencies, which will help the company to launch a subsidiary in Vietnam successfully. The marketing strategy adopted by the company will enable it to achieve its marketing objectives.
Hiebing, R. G., Hiebing, R., & Cooper, S. W. (2004). The one-day marketing plan: organizing and completing a plan that works. New York: McGraw Professional.
