ASSIGNMENT COVER SHEET

UNIVERSITY OF SUNDERLAND

BA (HONS) BUSINESS MANAGEMENT

Student ID: 139130968/1

Student Name: TO CHAU HOANG THONG

Module Code: MTK306

Module Name / Title: Marketing Strategy

Centre / College: UTE Ho Chi Minh, Vietnam

Due Date: October, 10th, 2014 Hand in Date: October, 10th, 2014

Assignment Title: New marketing strategy for new products and services of Sacombank

Students Signature: (you must sign this declaring that it is all your own work and all sources of information have been referenced)

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Assignment: MarketingStrategy(MKT306)

Due date : Friday, 10th October, 2014

Hand in date : Friday, 10th October, 2014

Topic: New marketing strategy for newproducts and services of Sacombank

"Analyze and evaluate the factors internal and external forthe Sacombank as well as the competitive advantage that theBank can use to make marketing strategy for new products orservice aim to expand market share and enhance its position

in the Vietnam market, even regional markets"

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Student name : TO CHAU HOANG THONG

Student ID : 139130968/1

Centre : UTE Ho Chi Minh, Vietnam

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MARKETING STRATEGY

Introduction..............................................2

Internal..................................................3

Value Chain.............................................3

External..................................................7

PESTLE..................................................7

SWOT...................................................11

The STP..................................................12

Recommendation...........................................13

Marketing mix............................................15

Conclusion.............................................19

References...............................................20

Appendix.................................................23

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MARKETING STRATEGY

With this report, I will present marketing strategy for newproducts or services of Sacombank (See appendix (1), p.23) infuture to expand its market share along with improving the Bank'sposition, particularly enhancing competitive advantage compare toother banks in both Vietnamese market and regional markets. Toachieve this marketing strategy, Sacombank need to understand theactual situation with the current strategy by evaluating macroenvironment (external) and micro-environment (internal) based onthe tools such as PESTLE analysis and value chain. TherebySacombank recognizes strengths and weaknesses, along with theopportunities and threats, from which Bank give necessaryrecommendation and SMART objective, especially establishingmarketing model (7Ps) to implement marketing strategies.

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MARKETING STRATEGYCurrently, Sacombank's vision is to become the first modernmulti-functional retail bank in Indochina. Along with mission isto maximize value for customers, investors and staff andupholding the highest commitment to corporate socialresponsibility (Sacombank, n.d.).

For current strategy, Sacombank quite successful with the currentstrategy through bank was voted the best retail bank, along withthe brand for years, the resources available and how to workprofessionally, it create the position of Sacomabank in Vietnammarket, even areas. However, Sacombank still limited invest inpromotion, particularly continuous developing and training humanresources to overcome challenges from competitors and access tocustomers in a professional way more

Besides, Sacombank also thanks to reasonable strategic marketingmix to achieve certain success in Vietnam market through majorproducts such as ATM cards, raising capital and lending,international payment along with other banking services. Inaddition, Sacombank in Vietnam market always apply pricing policyflexibility, however the price of product and service packsbetween Banks is relatively similar (no significant difference)(See Appendix (2), p.24).

Moreover, system is relatively wide distribution channel acrossthe country with 72 branches and 343 transaction offices alongwith a representative office in the country, and one branch inLaos and 1 branch in Cambodia, this creates a part of advantageof accessibility and meet customer needs (Tinnhanhchungkhoan,2014).

Last but not least important is promotion such as advertising,promotion, marketing and community activities, but results arenot worthy of stature of Sacombank so there should be a new stepin the future

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MARKETING STRATEGYTo establish right strategy and solid future, Sacombank alwaysknow comprehensive assessment of actual situation of bank throughmicro environment and macro environment at the present time torecognize the strengths and weaknesses and threats or challengesbased on basic tools but extremely useful from internal (ValueChain) and external (PESTLE) which are wroten by Micheal E.Porter, as well as recognize importance and impact on Bank.

Internal

SacomBank applied Value Chain tool which is proposed by MichaelPorter (1985), it helps Bank can analyze competitiveness ofproducts and services of Banks in Vietnam as well as understandWeakness and Strength of themselves based on primary and supportactivities according to model below

(Source: http://www.mindtools.com/pages/article/newSTR_66.htm)

Primary activities directly affected to production, sales,marketing delivery and service.

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MARKETING STRATEGY_Inbound logistics are operations of Bank related to supply,planning and facilities management / capital, labor and materialsto support or guarantee for business, especially supplierrelationshipsFor SacomBank, main input of Bank is capital raising activitiesincluding deposit and borrowing transactions (See Appendix (3),p.25). Besides, human resource is an important input factor ofSacombank, Bank has always recruited extremely strict andscreening along with basic training, in addition to support fromequipment to always meet strategic

_ Operations are the most influential process in the value chainwhen changing from input to finished products or services throughseparate treatment together with the separate service. The legaltransactions executed by Sacombank in its daily business, such asproviding loans , mortgages and investments , depending on thefocus and size of bank (Businessdictionary, n.d.). In addition,it is also approach, consulting, serving and problem solving fromemployees and management or strategies of SacomBank

_Outbound logistics is a very important role in distribution ofproducts and services to consumers.

Sacombank carried out work outbound logistics such as issuance ofshares, loans, and purchase and sale, transport, distributed cashthroughout ATM and bank systems or large and small branch overthe world in general and Vietnam in particular, along with otherservices. In addition, Bank applies advanced management software

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MARKETING STRATEGY

(e.g. FPT.iHRP, Core Banking T24, and cooperate GSOFT) to bettermanage cash flow, assets, employees and customers to havestrategies better and more efficient (See appendix (4), p.26)

_Marketing and Sales is a very important step in the value chain,it has a lot of influence on sales as well as success or failureof Bank

To attract and sell Bank's products or services, Sacombank hasused many tactics in advertising, promotions and incentivespolicy along with e-marketing, especially social activities. Inreturn Sacombank received trust of consumer and suit with theirneeds, and make Bank's benefit increased in recent years.However, Marketing of Sacombank is limited by not very stronginvestment, only through the media as bank's website, newsconference or opening branches program, especially rarely seenadvertisements TV.

_Service is support as well as take care of customer aftercustomer buy and use products and services that Bank providesthem

With a team or staff powerful, professional and prestige,especially always put customers' interests first, especiallySacombank always listens and overcome from feedback customers orshareholder. Sacombank has very good service and always comeswith service to support consumers such as take care of customeronline service through website, phone or mail, or meet directlyfor counseling.

Support activities provide procurement; management planning,human resources, technology and infrastructure function tosupport primary activities.

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MARKETING STRATEGY_Infrastructure: Data Center to establish a central managementserver system and network of banks according to internationalstandard TIA-942.

According to Thanh - Chairman of the Board of Sacombank said."The safety and system security requirements of information havebecome criteria leading commercial banks to customer considerchoice and decided to trade relations. Stemming from thisawareness, we have decided to spend adequate funds forconstruction of a data center to achieve international standardsand will continue to build redundant data centers similar nextyear" (Sacombank, 2008)

_Human resource management including recruitment, training,development and compensation of employees

The success has been so far to mention irreplaceablecontributions of staff talent and zealous dedication so thatSacombank is striving to create a work environment based oncreativity and autonomy. The leaders of Sacombank always havelong-term training programs, to promote every employee trainingto improve and enhance skills, provide opportunities foremployees can maximize perform. Recently, Sacombank collaborationwith the University of Banking in Ho Chi Minh city so that itbring advantage for input of Human Resource such as deploymenttraining enhance professional knowledge for staff Sacombank,cooperation in scientific research and development projects inbanking activities, and development human resource (Sacombank,2014). In addition, Bank is always advisable strategy toencourage and increase labor productivity for each individual,along with ensure labor rights and basic labor safety of workers,such as insurance and workers have right to negotiate for Bank'splans. However, professional qualifications of staff ofinternational payments between branches in HCM City and otherprovinces are too many differences, caused difficulties when

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MARKETING STRATEGYimplementing new business processes, along with training program,improve professional qualifications of the staff is not reallyeffective (Tai-lieu, n.d)

_Technology development is research and technology development,process automation, in particular to support the value chain

For Sacombank, technology is an indispensable factor. It supportsand plays a very important role in success. Thanks to thesethings that Sacombank continuous innovation aims at providingproducts and services for consumers to access easier and moreconvenient, but still ensures privacy such as ATM, credit card,along with Internet Banking. Moreover, Bank always applies newtechnologies leading in the World to improve and optimizequality.

_Procurement (purchasing) - This is what Bank does to getresources it needs to operate. This includes finding vendors,customers and negotiating best prices (Mindtools, n.d.)

Sacombank always guarantee or estimate cost and stable cash flowthrough strategic incentives for long-term contracts withshareholders, investors, even both savings and loans, along withnew products or services to attract investment, especially non-stop find potential customer or new market segments to getresources it needs.

From thing above, we can see and analyze strengths andweaknesses

Strength Weakness

Sacombank is one of the Uniformity of development and8

MARKETING STRATEGYbank's own capital largescale

Brand and reputable financialin Vietnam market, evenregional markets

Sacombank systematic retailnetwork covering wholecountry.

Sacombank continue to buildrelationships with customers,together with domestic andforeign partners more firmly

Sacombank staff of young,capable and enthusiasm.

governance are not yetsystematically achieve thehighest efficiency

Information Systemstechnology unfinished.

Sacombank not have a clearpolicy commissions formarketing intermediaries.

The training program, improveprofessional qualificationsof staff is not reallyeffective, especiallyInternational paymentsdepartment

Difficulties whenimplementing new businessprocesses due to large gap ofqualifications betweenbranches

In branch to ensure no riskleading to overcrowding atheadquarters in solvingsystem of records shouldcause takes time and effortto process.

External

To suit these macro environmental factors, Sacombank need toanalyze these factors follow model PESTLE – it also is written byMichael Porter and apply this tool, Sacombank can see impact of

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MARKETING STRATEGYthese factors as well as opportunities and threats forbusinesses. It is presented as follows

Political factor - Political factors are often the firstinterested by enterprises of bank because it helps Sacombank tobe able to analyze the safety of operations business in anycountry that they want invest or establish business.

Now, Vietnam is one of the countries with the most stablepolitical world, policies to reduce Corporate Tax and incentivesin business, especially in combination with open-door policy whenjoining international cooperation World Trade Organization WTO.This creates opportunities for Sacombank can trade and attractnot only domestic but also foreign investor (FDI). However, bankalso face a number of challenges and threats in market share aswell as competing investment from potential competitors or newentrants

Economic factors

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MARKETING STRATEGYEconomic trends always have a direct impact on success of everybusiness strategy. When economic trends change, activities andstrategies of business will also change.

Strategic activities and of Sacombank also affected very muchfrom economy through

Currency system - with world economic crisis in 2008, Vietnam'seconomy was affected quite as large as Vietnamese currencydepreciation and dollar appreciation. Because price of gold andexchange rate strong fluctuations leads to customer orshareholders feel fear and hesitation so that capital to bankingsystem stalled, even reduced

Currency values change frequently affects the amount ofinformation contained in prices is destroyed, the economiccalculation is skewed with time lead to difficulties foroperation of capital investment (GEC, 2013).

Inflation problem - this is one of the biggest problems ofVietnam today. Historically, from 1996 to 2012, Vietnam'sinflation rate average of 7.3% to reach an all-time high of 28.2%in August 2008 (Trading economics, n.d.). Due to risinginflation, bank’s capital mobilizations face many difficulties.Besides, competition pushes up interest rates to influenceuncertainty for banking system. Moreover, lending interest rateincreases lead to worsening investment environment of banks,moral hazard occurs.

Economy is measured by GDP. Vietnam's economic growth in 2012will slow to just 5.3%, much lower than 5.9% growth of 2011 (vov,2012). This cause Sacombank has trouble as reducing raisingcapital.

The Social factors

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MARKETING STRATEGYVietnam has a very high population density with 90 millionpeople, with urbanization rate, especially needs life of Vietnamincreasing high lead to loans to procurement such to business,homes, vehicles, and even to organize event and wedding, on theother hand, some people send money in bank to increase interest,this is a form of keeping money in the safest Vietnam market.This is an opportunity for Sacombank because market is very largeand potential. However, Sacombank have challenging due toeducational level has been uneven and remains low compared toregional and world issues related to trade and use of modernbanking products remains limited (Sacombank, 2009).

The Technological factors

This is an important factor for any business with level ofdevelopment of science and technology is growing so thatSacombank must invest and apply continually technology to reducecost and time of customer transactions, providing convenience andmodern, special relationship with stakeholders better throughprovide complete banking services and integrated through network,Internet Banking, ATM, PhoneBanking and more. The identificationand application of techniques to bring advantages of Sacombank inVietnam market as well as regional markets

The Legal factors

Legal factors include discrimination law, consumer law, antitrustlaw, employment law, and health and safety law. Sacombank has metmost of Vietnam's Legal offer. For example, rising labor costs inaccordance with minimum wage for employees (over 1,150,000Vietnam Dong over 1 month), along with labor insurance for

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MARKETING STRATEGYemployees. In addition, Sacombank also has arrangements shiftsand time to rest reasonable, especially compliance absoluteceiling price or floor price, along with exchange rate andinterest rate that are prescribed by legal

The Environment factors

Environmental factors include weather and climate change.Temperature changes may affect businesses. With major climatechange caused by global warming and with greater environmentalawareness this external factor is becoming an important issue forbusinesses to consider. Therefore, Sacombank has set goals toprotect environment through reduction in operating costs and hereis policy of Sacombank in 2013. Specifically, with tight controlof operating costs and optimize available resources , Bank stepby step to minimize negative impact environmental (See Appendix(5), p.27)

From the above analysis we can see opportunities and threatsfor Sacombank in current situation.

Opportunities

_Vietnam's economy has been a steady development in recent years;liberal policy of the state has created many businessopportunities in domestic as well as import and export businessesand products and services of bank goods are used more.

_Activity import and export of Vietnam growth in recent years andthere is much potential for further development. This is a prettygood chance to Sacombank development of international paymentservices.

_Economic integration facilitates extensive cooperation withother organizations of international financial institutions,improving management skills, network expansion activities abroad

Threats13

MARKETING STRATEGY_Human resource capacity, highly qualified increasingly scarceand competition is fierce among other Banks.

_The need to use banking products are increasingly moreinterested in business and demanding diversity, product qualityand service customer service skills.

_Vietnam has officially opened banking sector under WTOcommitments, foreign banks have massively penetrated Vietnammarket and thus competition among commercial banks together willbecome more intense.

_The economy is facing risk of deflation and inflation couldreturn to potential liquidity risk, maturity risk and exchangerate risk, including risk of confidence in banking system goods.

Through analysis both internal and external environment, wecan draw key conclusions about the SWOT of Sacombank.

Sacombank has a great opportunity to expand business andincrease sales because the large suit current needs in Vietnamsuch as import and export increasingly popular due to WTO

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MARKETING STRATEGYaccession, along with a huge advantage in longtime brand andquality in Vietnam market. However, Sacombank want to stand inmarket and increase revenue, they have to actually passcompetition in quality and price of the product or servicethrough appropriate strategy and constantly improving theinfrastructure, especially people to create products or serviceunique and difficult to compete. For understand more and viewmore, we will apply Pepsi to SWOT matrix (See Appendix (6), p.28)

(Source: http://stpsamsungmobiles.blogspot.com/)

In addition, Segment of Sacombank is labor object, typically asworkers and businessmen because as it is one of the largestforces of Vietnam (accounting for nearly 60% of totalpopulation). According to Smartfinance website, n.d. Sacombankopens with banking system and branch mainly focused on largecities such as Ho Chi Minh City (112 branches and transactionoffices) and Hanoi (39 branches and transaction offices) socustomers can conveniently and easily access services andproducts of Sacombank. It provides many benefits to net profitand cash flow of Sacombank growing and more stable.

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MARKETING STRATEGY(Mic, n.d.)

Besides, through 22 years of operation, Sacombank always stick tothe strategy or target of a retail bank versatile, top modernVietnam and regional reach. Sacombank has developedsynchronization solutions include: increased financial capacity;consolidate, develop and promote effective network of branchesand subsidiary banks and affiliated banks; adjustment and perfectorganizational structure to match strategic development andchanges of business environment; focus on recruitment, trainingand complete personnel policy in order to build team stronger;application of advanced management methods and improving systemof internal regulations; continue to invest in modernization ofbanking technology; deploy multiple products, new services, manymodern gadgets, timely response to need of customers; strengthenrisk management and bad debts (Sacombank, 2013).

Services are invisible, so customers are difficult to accuratelyassess quality of services directly, or position of Sacombank.However, customers can evaluate service quality through physicalevidence. Thus, determine the position of Sacombank throughevidence of tangible impact significantly (See appendix (7),p.29) on quality of service and level of satisfaction of serviceprovided to customers.

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MARKETING STRATEGY

Position and image of Sacombank compared to other banks inVietnam market

Recommendation

_Sacombank should focus on developing and enhancing Bank's imagethrough product and service quality, especially internationalpayment services based on resources available and continue tomaintain and develop their strengths (the best retail Bank) aimto maintain position and competitive advantages

__Besides, consumer preference is always changing so thatSacombank constantly updated as market survey to get exact looklead to establish strategic fit of consumer satisfaction.

_Moreover, Sacombank should invest and promote more strategicadvertising products and services, as well as images of Bank bynew information about activities of Sacombank, especiallyinternational payment services through TV, especially websites to

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MARKETING STRATEGYlook more realistic and more details to promote demand, togetherwith application of modern technology in bank for purpose ofminimizing time and costs consumers. It not only showprofessional but also modernity of Sacombank

_Most importantly, Sacombank should develop and training focus onhuman resource such as open short course or change location ofparts together to get flexibility, extra skills and promotecreativity breakthrough or serving long-term strategy of company

Besides, Sacombank's image is not appreciated by consumer. In myopinion, main factor is international payments of Sacombankaffecting image or position which is not really good. Inaddition, since entering the WTO, Vietnam's economy has developedrapidly and more powerful, it has created a lot of tradeopportunities between Vietnam enterprises with foreign companies,including Bank. In the future, demand for payment of importedgoods increased business so international payment services stilla lot of potential for Sacombank

In future, overall objective of Sacombank is committed tobuilding such as maintain Retail Banking - multifunction -modernization, along with International payment becomes the mostpowerful and best purpose of Sacombank improve its image inVietnam market through specific objectives (until 2016),especially must achieve SMART

_Product and services diversification in international payment

_Developing distribution network synchronization, efficiency andprofessionalism to ensure sustainable growth

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MARKETING STRATEGY_Providing the best service with competitive price

_Improving service quality and satisfy customer needs

_investment and trade promotion programs effectively, and deliverreal benefits to customers.

_Continuing restructuring apparatus, training to update theirknowledge, skills training for human resources

_Expanding relationships through collaboration and associationwith organizations and financial both domestic and foreign,creating synergy to reduce competitive pressure.

To achieve set objectives, Sacombank should implement strategicmarketing mix is written by E. Jerome McCarthy for internationalpayment services

(Source: http://blog-xtraffic.pep.vn/marketing-mix-la-gi/)

Product (or Service)

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MARKETING STRATEGYFor Import payments, Sacombank need to maintain and further develop payment imported goods services such as

Letter of Credit - Banks need to provide products come with derivative financial instruments to mitigate risks due to fluctuations in exchange rates. In particular, banks can recommend customers to sign forward contract to buy foreign currency, so customers will be more active in payment. Besides, Sacombank apply for low deposit margin customers with customer who have long-time relationships, reputation.

Telegraphic Transfer Remittance: Service method of Telegraphic Transfer Remittance in Sacombank basically pretty good, but theseis limited of Sacombank when customers asked to pay service charges for foreign investment capital for country. Therefore, Sacombank need to issue general guidance on procedures for each product and service, especially for service payment for business is required detailed, specific and comply with Ordinance on Foreign Exchange Management of state.

A sale of Sacombank’s export payments is still low compared with growth potential. Therefore Sacombank to have breakthrough products to attract customers using the service more

Letter of Credit: Sacombank implement sponsorship when clientsofficially signed foreign trade contracts. Funding levels may be20-30% of contract value, along with Sacombank should developstandard procedures for consulting services and establishment ofexport documents, send documents abroad and collecting money forcustomers

Build Telegraphic Transfer Remittance: 20-30% funded when clientofficially signed foreign trade contracts, rest will be disbursedwhen goods have been shipped. In addition, customers must ensure50% funding by real estate mortgage at Sacomabank.

(Truong, 2009)

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MARKETING STRATEGYPrice

The price of products and services of banking and financialinstitutions today become the most concern problem. Because ofcompetition in banking and finance sector is increasing andprices are not only competitive factor between banks, but alsohave a strong impact on decision of customer choice. Therefore,Sacombank always made strategic price based on the criteria suchcost that was spent, customer needs (products or service uniquewill have a higher price), geographic location (e.g. in the bigcities, port or airport will have a lower price than facilitatedelivery or receipt of goods internationally), especially pricesof competitors for equivalent services

Besides, Sacombank to be applied at low cost to entry at newmarket to increase market development and competitivenesscompared rivals, along with using flexible pricing policy aim tomaintain and develop relationships with existing customers, evenattract to potential customers

Place

Sacombank not only build strategic product good service,reasonable pricing strategy, but Sacombank also must have anappropriate distribution strategy to bring products to bank'sservices to customers in the best way. Determine appropriatedistribution channels is extremely important because it greatlyaffects results of operations and marketing activities of banks

_In Vietnam, Sacombank has approximately 400 systems andbranches, relatively coverage Vietnamese market, concentrated inmajor cities therefore remaining areas should not open newbranches, instead, development of transaction systems underbranches, along with revaluation to ensure that operations.

_For foreign market, currently Sacombank has representativeoffices in China and branches in Laos and Cambodia. To develop

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MARKETING STRATEGYinternational payment services, Sacombank need to open morebranches in Korea, Japan or the United States because ofrelationship and import and export goods are Vietnam's largest,in addition revenue from money transfer service will increase dueto export of Vietnam's labor in these countries is very large

Sacombank may also distribute products of international paymentservices through modern distribution channels such as telephoneand internet (See appendix (8), p.30)

Promotion

Promotion is an important tool in marketing to stimulate use ofexisting products and services and new products and services, andincrease loyalty of existing customers, attract potentialcustomers, increase credibility and image of banks in market.However, with what has been achieved is not commensurate withscale of Sacombank, so Bank need to implement following specificstrategies to enhance image and reputation in market

Advertising through traditional media like newspapers, magazinesor television (in common channel as HTV7 and VTV3), along withmodern media such as internet (for example, website of Sacombankor community website) and phone (message service or calldirectly). Besides, it is very important that messages forservices and products and in accordance with cultural fit as wellas met current needs.

In addition, Sacombank should also have promotional strategiessuch as giving gifts on holidays to longtime customer as calendaror watch, as well as discounts on services in Bank's celebrationto gratitude guests. Sacombank often organize special events toconvey information as well as utility products or services forinternational payments, and also expand and enhance brand andimage of Sacombank.

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MARKETING STRATEGYMoreover, Sacombank should also continue with communityactivities such as organizing charitable programs to supportethnic that meet flood disaster, sponsor scholarships for poorstudents, and gifts for poor families and especially difficultduring holidays

People

To get high-quality human resources to serve sustainabledevelopment of entire bank, Sacombank need for HR strategy inline with current situation.

Sacombank need to create the best conditions for employeesserving clients in course of providing services such time torest, distribution shifts and environmental conditions andnecessities such as salaries, allowances along with insurance foremployees. In addition, build quality image bank, it givesemployees pride and confidence in bank, especially employeeretention leads to more enthusiastic and eager to work, anddevote more. Besides, build relationships between employees andemployers so that employees have a comfortable workingenvironment and friendly, along with implement reward policies,it promotes creativity and opinions in order to build Bank betterand better.

Combined with recruitment and training _Recruitment process should be conducted according to scientificprinciples and based on criteria specified and built inaccordance with practical requirements of banks. _System of personnel training program of Sacombank internationalpayment towards building a team of high quality unlocking needsprofessional training, specialized skills especially for

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MARKETING STRATEGYinternational payments and organizing exams online (Every 6months) _Rotation and nominated employees to participate in seminars andprofessional training to improve skills_The head of international payment department often encouragesbranches, reminding employees to cultivate knowledge throughinternal documents and InternetProcessProcess plays a very important role in service creation andprovision of services to customers. Sacombank need for processimprovements, especially international payment process, such asreducing step by step procedure or without necessary papers,along with addition of process to bring about effective efficientand professional show but still ensure time and cost of customer.Physical evidenceSacombank should have improved this element through trainingstaff to be more present throughout process from start to finishtrading transactions, combined with how polite and dresseduniformly with hearted support. Sacombank to continue building aprofessional image because professional image is always toppriority, this creates trust with customersBesides, Sacombank to infrastructure investment: desks, chairs,reception desks, machinery must be uniform throughout system,along with decorations so that information on products andservices must be neatly arranged and placed convenient place forcustomers to easily see.Budget forecast also plays a very important role in the Bank'sbusiness because it ensures full implementation of activitiestaking place during strategy. Sacombank estimated 10% of totalnet sales this marketing strategy for the promotion services, 20%for staff training, and 15% for the survey travel expenses alongwith improve infrastructure.Sacombank also apply monitoring and controlling process to ensurethat project is within scope, on time, and on budget aim to avoid

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MARKETING STRATEGYwith minimal risk through making the report in terms of revenueas well as the implementation process from the relevantdepartments (once a month), along with the direct supervision ofmanager, but still ensure comfortable working environment.Certainly these changes will cause many difficulties forSacombank in process of implementing strategy. However, with longexperience and resources, Sacombank will overcome alldifficulties and become banks international payment best servicein Vietnam in coming time.

From the above analysis and evaluation based on theactual situation of the Marketing mix, along withinternal (Value chain) and External (PESTLE), Sacombankcan take advantage of the strengths and resourcesavailable to minimize weaknesses and threat. Inaddition, Sacombank has relied on market segmentation,the targeting as well as the position at the moment,from which made recommendations to assist the Bank aimsto achieve marketing strategy process perfect thanks tothe marketing model (7Ps) with develop strategicinternational payment services. Through this process,we can see part of the professional in the business ofBank thus improving market share or empowering, even

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MARKETING STRATEGY

become a leader in the field of banking in VietnamSouth is a relatively positive with Sacombank

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MARKETING STRATEGY

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MARKETING STRATEGYMic Website, n.d. Co cau dan so và luc luong lao đong tai Viet Nam[Online]. Available at:<http://mic.gov.vn/daotaonghe/thongke/Trang/C%C6%A1c%E1%BA%A5ud%C3%A2ns%E1%BB%91v%C3%A0l%E1%BB%B1cl%C6%B0%E1%BB%A3nglao%C4%91%E1%BB%99ngt%E1%BA%A1iVi%E1%BB%87tNam.aspx> [Access on:October 8, 2014]

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S.cafef Website, n.d. CAC CHI TIEU CHINH [Online]. Available at:<http://s.cafef.vn/hose/STB-ngan-hang-thuong-mai-co-phan-sai-gon-thuong-tin.chn> [Access on: October 8, 2014]

Sacombank Website, 2008. Sacombank khanh thanh Trung tam du lieu lon vahien đai đau tien cua he thong ngan hang thuong mai Viet Nam [Online].Available at:<http://www.sacombank.com.vn/tintuc/Pages/Sacombank-khanh-thanh-Trung-tam-du-lieu-lon-va-hien-dai-dau-tien-cua-he-thong-ngan-hang-thuong-mai-Viet-Nam.aspx> [Access on: October 8, 2014]

Sacombank Website, 2009. SACOMBANK TRIEN KHAI HAI SAN PHAM CHO VAYTIEU DUNG MOI [Online]. Available at: <http://www.sacombank-sbr.com.vn/news/Details.aspx?Id=66> [Access on: October 8, 2014]

Sacombank Website, 2013. Sacombank ky niem 22 nam thanh lap: Tiep tucphat trien ben vung [Online]. Available at:<http://www.sacombank.com.vn/tintuc/Pages/Sacombank-ky-niem-22-nam-thanh-lap-Tiep-tuc-phat-trien-ben-vung.aspx> [Access on:October 8, 2014]

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MARKETING STRATEGYSacombank Website, 2014. Sacombank hop tac voi Truong Đai hoc Ngan hangTP.HCM [Online]. Available at:<http://www.sacombank.com.vn/tintuc/Pages/Sacombank-hop-tac-voi-Truong-Dai-hoc-Ngan-hang-TP-HCM.aspx> [Access on: October 8,2014]

Sacombank Website, n.d. Establishment and Development [Online].Available at:<http://www.sacombank.com.vn/en/intro/Pages/Establishment-and-Deveplopment.aspx> [Access on: October 8, 2014]

Smartfinance Website, n.d. Ngan hang Sacombank - Ngan hang TMCP SaiGon Thuong Tin [Online]. Available at:<http://smartfinance.vn/index.php?branch_bank=47&branch_province=0&district=0&com=search&ctr=search&act=searchDiemGiaoDich&p=27> [Access on: October 8, 2014]

Smartfinance Website, n.d.(2) VAY TIEU DUNG NGAN HANG SACOMBANK[Online]. Available at:<http://smartfinance.vn/ngan_hang/san_pham_vay_von/vay_tieu_dung_tra_gop/Vay_tieu_dung_Sacombank571837.html> [Access on: October8, 2014]

Stpsamsungmobiles Website, n.d. STP of Samsung Mobiles [Online].Available at: <http://stpsamsungmobiles.blogspot.com/> [Accesson: October 8, 2014]

Tai-lieu Website, n.d. Nang cao dich vu thanh toan quoc te bang L/C taingan hang Sacombank [Online]. Available at:<http://tai-lieu.com/tai-lieu/nang-cao-dich-vu-thanh-toan-quoc-te-bang-lc-tai-ngan-hang-sacombank-22635/> [Access on: October 8,2014]

Tinnhanhchungkhoan Website, 2014. Sacombank-Southern Bank: an so ty lehoan doi [Online]. Available at:<http://tinnhanhchungkhoan.vn/doanh-nghiep/sacombanksouthern-

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MARKETING STRATEGYbank-an-so-ty-le-hoan-doi-90933.html> [Access on: October 8,2014]

Trading economics Website, n.d Vietnam Inflation Rate [Online].Available at: <http://www.tradingeconomics.com/vietnam/inflation-cpi > [Access on: October 8, 2014]

Truong, 2009, n.d.(2) Chien luoc Marketing [Online]. Available at:<https://vi.scribd.com/doc/67078930/Chien-Luoc-Marketing-Cho-TTQT-Tai-Sacombank [Access on: October 8, 2014]

Truong, 2009. Luan van Chien luoc marketing [Online]. Available at:<http://doc.edu.vn/tai-lieu/luan-van-chien-luoc-marketing-cho-dich-vu-thanh-toan-quoc-te-tai-ngan-hang-sai-gon-thuong-tin-sacombank-41979/> [Access on: October 8, 2014], p. 58

Voer Website, n.d. .Cac hinh thuc huy đong von cua ngan hang thuong mai[Online]. Available at: <https://voer.edu.vn/m/cac-hinh-thuc-huy-dong-von-cua-ngan-hang-thuong-mai/23f4b6b0> [Access on: October8, 2014]

Vov Website, 2012. EIU du bao GDP Viet Nam nam 2012 dat thap [Online].Available at:< http://vov.vn/Kinh-te/EIU-du-bao-GDP-Viet-Nam-nam- 2012-dat-thap/227772.vov > [Access on: October 8, 2014]

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MARKETING STRATEGY

Appendix1) Introduction about SacombankDecember 1991, Sacombank was one of the first commercial jointstock banks to be incorporated in Ho Chi Minh City, Vietnamthrough the merger of Go Vap Bank for Economic Development andthree credit cooperatives: Tan Binh, Thanh Cong and Lu GiaCooperatives. 1993. The first foreign shareholder was thefinancial group Dragon Financial Holding (UK), whichcontributed 10% of the charter capital. This was followed bycapital contribution from the International Financial Company(IFC) and ANZ Bank, raising the foreign shareholders’ capitalto 30% of the charter capital, especial cooperation withTemenos Company (Switzerland) in 2004. According toTinnhanhchungkhoan, 2014 currently there are over 400 branchesand transaction offices across the country, especiallySacombank has expanded into Indochina markets (e.g. 2008 Laosand 2011, Cambodia). Along with the recent trophies achieved(2013) The best domestic Bank in Vietnam awarded by The AssetMagazine, the best retail Bank in Vietnam awarded byInternational Finance Magazine, and best of the best bank inVietnam awarded by Robb Report Magazin, it contributes to theimage building of the Sacombank Bank increasingly powerfuland prestigious

(Sacombank, n.d.)

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MARKETING STRATEGY

2) Price of the product and service packs between the Banks

For example:

The table compares interest rate (raising capital) of some banksin 2014

BankMonths

From 1 to lessthan 6

From 6 to lessthan 12 Over 12

Techcombank 6,55%-6,86%/year 7,03%-7,35%/year 7,06-8,3%/year

Sacombank 6%-7%/year 7,2%-7,3%/year 7,9%-8,5%/year

ACB 6,4%-7%/year 7,1%-7,3%/year 7,6%-8,5%/year

Eximbank 6,5%-6,85%/year 7%/year 7,8%-8%/year

Oceanbank 6,8%-7%/year 7,2%-7,5%/year 7,5%-8,5%/year

VIB 6,2%-6,5%/year 6,5%-7,1%/year 7,5%/year

NamAbank 6,95%-7%/year 7,92%-8%/year 6,4%-7%/year

PVcombank 6,92%-7%/year 7,92%-8%/year 8,83%-9,2%/year

Vietcombank 5%-6,8%/year 7%/year 7,5%-8%/year

BIDV 5,8%-6,75%/year 7%/year 8%/year

Vietinbank 5,5%-6,5%/year 7%/year

Agribank 6%-7%/year 7%/year 8%/year

(Source: http://news.zing.vn/Lai-suat-huy-dong-cua-ngan-hang-nao-cao-nhat-hien-nay-post394833.html)

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MARKETING STRATEGYThe table compares interest rate (Loans) of some banks in 2014

Loans to Consumer (Individual) Loans toConsumer (Business)

(Laisuat, 2014) and (smartfinance, n.d)

3) Raising capital through borrowing transactions

This form plays increasingly important role in the businessenvironment such as turbulent current. The commercial banks canborrow from several sources:

Borrowings from credit institutions

That's the conventional borrowings which banks borrow from eachother on the interbank market or the currency market. Banks

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MARKETING STRATEGYtypically build good relationships to can borrow from each otherwhen capital shortage without borrowing central bank.

Borrowings from central banks

When commercial banks are capital shortage or loss compulsoryreserves liquidity, the central bank is the bank that the bankeventually may help. The central bank lend in the form ofrediscounting commercial paper. The commercial banks may bringthe stock to trade central banks to borrow. However, this borrowalso has some difficulties due to the central bank only lend withrediscount quotas, and this lending under the direction ofnational fiscal policies. Anyway this is a form of additionalcapital for commercial banks are extremely important in the giventime.

Mobilized through issuance of debt instruments

This is form of raising capital with relatively high efficiencyof the commercial banks. In the course of operations, banks seethe need to raise additional capital before the businessopportunities attractive. That means that banks raise capital inthe initiative, mean when the beginning have the output, thenBank will calculation input.

Bank defined scale deposits, currency and provide at a reasonablecost for the creation of bank capital in rapid succession. Toborrow on the market, banks can issue bonds and bonds.

Bank bonds is a valuable paper, to confirm the customer's debtwith the bankers with commitments such as paying a specified sumof money on a specified date in the future for a fixed period ofbefore. Bonds issued in the entire banking system, mainly toraise capital medium and long term.

Debentures: Debentures bank is a type of short-term debt papersreceived by the issuing banks to raise capital in the population,

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MARKETING STRATEGYmainly to cater to the business plan of the bank identified as aproject, an economic program

(Voer, n.d.)

4

FPT.iHRP help management personnel throughout the entire system,standardization of data, information, personnel data managementis the rapid extraction service training, transfer, appointmenthuman resources

(Lhrp, n.d.)

With the efforts of both GSOFT and Sacombank, deployment takesplace manual asset management software gAMS for Sacombank.

(Gsoft, n.d.)

5. The Environment factors

_Use of energy

The actual cost of gasoline in 2013 reached 86% of the plan.Although in 2013, we have expanded the business, developing thepotential transaction offices, provided bank’s cars for this unitor business but the cost of gasoline is still tightly controlled.

Similarly, the actual utility costs reached 88% in 2013 toachieve planned results; we have implemented a number ofinitiatives in our office as saving light bulbs use electricity,buy procurement of office equipment with energy-efficientlabeling or not labeling carbon emissions (CarbonZero) and water-

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MARKETING STRATEGYsaving showerheads. We also conduct new copier leasing instead ofoutright purchases in order to save costs, ensure quality printswhile limiting emissions from the use of old machines. Inaddition, we also rearrange workspace at the office Sacombank torationalize the working environment better, save space in orderto reduce power consumption costs.

In 2013, the cost of our move has fallen 3.53% compared with thecost of in 2012 and reaching 70.21% of the plans. To do this, weencourage employees to use the tools of modern communicationmedia such as television conference, phone conferences, onlineteaching instead of having to move (transport use traditions suchas cars, planes). In addition, we also work with serviceproviders move to ensure cost savings and reduced carbonfootprint (carbon footprint) of the Bank.

_Use paper printing

In 2013, the printing paper used in Sacombank to reach 84% of theplan year, slightly lower than the cost of 2012 This is one stepin a long-term orientation of Sacombank to reduce paperconsumption in Bank. We step by step encourage customers to useelectronic statements, check books, email, bank share the samecommitment to environmental protection. We also considergradually shift to using electronic media marketing replacestraditional methods to reduce the number of leaflets, manualintroduction, and promotional products annually. Besides, we alsouse social networks to introduce new products and services suchas e-banking his

Sacombank throughout the system, from 2011, we have implementedpaperless office model (e-office) began moving all documents intoa digital archive and all employees have access to view fromcomputers, laptops, tablets and even phones

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MARKETING STRATEGYIn addition, we regularly choose, working with supply partners toensure all paper sources are used in the offices of Sacombank areclearly derived, 100% natural ingredients grown due to paperbanks comply with environmental standards, social (eg ISO14001and ISO9706) production. We also encourage employees to use toprint two-sided documents

_Environmental activists

Through aggressive form, actively participated in the movement toprotect the local environment, Sacombank branch leaders step bystep guide their staff to raise awareness about preserving andimproving the environment and nature protection.

(Baocaothuongnien, n.d.)

6. Matrix SWOT

Strengths Weakness

Opportunities

S-O

Use strengths to takeadvantage of theopportunities

W-O

Opportunities to overcomethe weaknesses that areexperiencing

Threats

S-T

Take advantage of yourstrengths to avoid realand potential threats

W-T

Minimize weaknesses andavoid threats

(Mindtools, n.d)2

The above table can be reviewed as followsS-O Sacombank should continue take advantage of strengths withthe best retail Bank to maintain market share and competitiveposition in the marketplace Vietnam, along with longtimeAdvantages in terms of brand and quality, as well as

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MARKETING STRATEGYunderstanding of the needs and capture the future trends(international trade), Sacombank can expand market throughdeveloping international payment strategy to bring breakthroughin capital flows as well as its position in Vietnam market andregional markets

S-T with the development of Sacombank, Bank always know to takeadvantage maximum such as image and quality, especially long-termdevelopment in Vietnam so that bank will receive trust andloyalty from the majority of the people here. With this strength,Bank largely overcomes the significant threat from substituteproducts of other bank or potential competitors. Thus, Bankconstantly creative and development to create the best productsor services and best quality for consumers

W-O to enhance market share and expand market through developmentstrategy international payment, essential and special interest ofSacombank is improve skills and experience for staff, especiallyin the field of international payment through short-term trainingas well as periodic inspections, to promote and to support staffdevelopment to achieve the best effective in work. this thingsovercome this weakness maximum of Sacombank, and brings certainadvantages to expand market opportunities.

W-T to improve the image of the company when training program,improve the professional qualifications of the staff is notreally effective as well as to avoid competition and substituteproducts or services of Bank and potential competitor, Sacombankmust try to overcome as well as invest more on improving humanresources, along with search for professionals both domestic andabroad who have the experience, skills and special knowledge ininternational payment for help and guidance in order to attractcustomer’s needs. Besides, to avoid competitors and alternativeproducts or services, Sacombank can create new strategy about

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MARKETING STRATEGYproduct or service to bring about the distinctiveness andoriginality while ensuring the quality.

7. Due to services are intangible, so we can evaluate theposition of the image Sacombank and its competitor throughtransaction services that consumers use as much as the more trustand more quality

According to s.cafef.vn website, 2014, we have

Total net interest income of Sacombank (STB) compare the entirebanking sector in Vietnam

Outstanding loans of Sacombank compare the entire banking sectorin Vietnam

Raising capital of STB compared to the banking sector

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MARKETING STRATEGY

From the above chart we can see the position of Sacombank againstthe Vietnam market is average level, especially compared tocompetitors such as Agribank, BIDV, Vietcombank (VCG), andVietinbank (CTG) is relatively lower and slightly higher thanMilitary Joint Stock Commercial Bank (MBB).

8. Distribution channels through telephone and internet

Banking by phone: this is a channel being applied in most bankstoday, with all transactions are conducted between the customerand bank by the phone. Sacombank, transactions through thischannel just stop at providing information about the interestrates, exchange rates, import and export documents and businessconsulting. In the coming time, Sacombank need to deployinternational payment services through this channel.Specifically, the money transfer customers can fax money orderfor Sacombank and confirm transactions with employees bytelephone conversations password and confirm successfultransaction. With this way customers can save a lot of timecompared to the original transaction of money orders.

Internet Banking: this is a channel of distribution utilities,Sacombank to promote the development of international paymentservices through this channel. Using the Internet system,customers only need to use a personal computer connected to theInternet is possible with banking transactions without having togo to the bank. The website of the bank will be dealing withwindows clients. This service does not depend on the time of the

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MARKETING STRATEGYbank, customers can also bank transactions from anywhere in theworld

(Truong, 2009)2

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