How to increase penetration of Nokia in rural of Vietnam in 2012

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TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITE LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBMM5

Nguyen Thi Thu Hang

HOW TO INCREASE PENETRATION OF

NOKIA IN RURAL OF VIETNAM IN 2012

MASTER PROJECT

MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor: Phd. Hoang Thi Phuong Thao

Ho Chi Minh City

(2012)

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The author – Nguyen Thi Thu Hang - produced this project solely by herself with materials retrieved from

either public sources or Nokia’s.

The paper was made exclusively for the completion of Master in Marketing and Business Management,

Solvay Brussels School. No substance was used or would be for any other purpose.

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I would like to express my appreciation to PhD. Hoang Thi Phuong Thao for her supervision of this final

project and a deep sense of gratitude to Mom, Mandy and especially Elizabeth for their constant love

and supports.

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LETTER OF RECOMMENDATION

I am writing to confirm that the project entitled:

HOW TO INCREASE PENETRATION OF NOKIA IN RURAL OF VIETNAM 2012

Which was prepared by Ms. Nguyen Thi Thu Hang has satisfied requirements for a Master project in

Business and Marketing Management (part time). She is now qualified to present it to the Jury.

Yours sincerely,

Tutor, Hoang Thi Phuong Thao (PhD)

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ABSTRACT

Established since 1996, Nokia is very successful in Vietnam as market leader. Its performance in terms

of business growth rate ranked number one among global system for the past 14 years. 2011 was

started with worries of local team due to economy downtrend. However, by year end, we’ve realized that

severe inflation turns out did not have much influence on the growth of handset market. Market keeps on

good growth, indeed. And Nokia enjoys another year of success.

But, there are early signs of market saturation in urban of Vietnam. Market growth in volume was

approximately 3 million pieces in 2011, in which only 1 million pieces was from urban market while

another 2 million came from rural one – a “virgin” market which Nokia has spent zero dollars for direct

marketing activities.

The purpose of this paper, therefore, is to study the opportunity to expand Nokia business to rural of

Vietnam. Strategy is to seek for business growth in 2012 by increasing the penetration in such driven

market, so each single dollar we spend would have a higher rate of return on investment. In order to do

that, it is essential for undertaking many researches so we know target consumers’ lifestyle, income,

touch points; how cellular phone plays a role in their daily lives; what are the options for cellular phones,

from then identify our competitors and how they are doing. Most importantly, to find out what is the

driven value which leads to a purchase: is it price, is it brand equity or is it the design / features of the

product?

Relevant desk researches and secondary information are used for the analysis. And a qualitative

research is conducted in outskirts of 4 provinces, which represent 4 regions: Mekong Delta, South,

Middle and North to uncover the truths of rural consumers

The findings will finally lead us to Nokia’ SWOT analysis before a marketing strategy is recommended, in

which a profitable market segmentation will be selected; treatment for 4P mix is suggested, e.g. how to

communicate to target audiences effectively; what we should do to improve our distribution system;

which product portfolio should be introduced, and at what price range.

This paper will be a ready-to-use menu for all marketing activities Nokia should take in 2012 toward rural

market in order to hit 8.4% penetration and 58% market shares in rural by first half of 2012 and maintain

it over the year.

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TABLE OF CONTENT

CHAPTER I: DEFINITIONS 08

1. Market Share and market penetration 08

2. Rural Vietnam 09

CHAPTER II: INTRODUCTION 11

1. Background 11

2. Problem Statement and Rationales 12

3. Project Objectives 14

4. Methodology 14

5. Scope and Limitation 14

6. Organization of the Thesis 15

CHAPTER III: SITUATION ANALYSIS 17

1. Customer Analysis 17

1.1 Research Objectives 17

1.2 Specific Research Questions 17

1.3 Scope 17

1.4 The design of the research 18

1.5 Target respondent recruitment criteria 18

1.6 Samples design 18

1.7 Area of investigation 19

1.8 Key Findings 20

1.9 Section Remarks 23

2. Competitor Analysis 23

2.1 Brand Perception 24

2.2 Samsung Strengths and Weaknesses 25

2.3 Chinese Brands Strengths and Weaknesses 26

2.4 Section Remarks 26

3. Collaborator Analysis 27

3.1 Operators 27

3.2 Retailers 28

4. Macro Environment Analysis 29

4.1 Political factors 29

4.2 Economic factors 29

4.3 Social factors 30