Comprehensive Marketing Strategy Analysis: Vietcombank & VPBank

This report provides a comprehensive marketing analysis of Vietcombank and VPBank, two prominent commercial banks in Vietnam. It begins with an introduction to both banks, highlighting their history and growth. The core of the report focuses on a detailed examination of their marketing strategies, primarily using the 7Ps marketing mix framework (Product, Price, Place, Promotion, People, Physical Evidence, and Process). The report compares and contrasts the two banks across these elements, evaluating their digital product offerings, pricing strategies, distribution channels, promotional activities, customer service approaches, physical presence, and operational processes. Furthermore, the report incorporates a SWOT analysis for each bank, assessing their strengths, weaknesses, opportunities, and threats. The analysis includes an overview of their competitive positioning and market strategies. The report concludes with a summary of the key findings and insights gained from the comparative analysis, offering valuable perspectives on the marketing approaches employed by Vietcombank and VPBank in the competitive Vietnamese banking landscape.

10180375_ME_A2.2_VuPhuongHoa

Table of Contents
INTRODUCTION........................................................................................................... 3
MAJOR FINDINGS........................................................................................................ 5
Task 1: Marketing Mix............................................................................................. 5
VIETCOMBANK & VPBANK.................................................................................... 5
Task 2: Marketing plan and SWOT...........................................................................9
CONCLUSION............................................................................................................ 18
APPENDIX................................................................................................................. 19
REFFERENCES........................................................................................................... 27

INTRODUCTION
Marketing is an essential part of every business. Thanks to marketing, businesses can grow
strongly together with other departments such as Sales, Finance, Customer services, etc.
Therefore, Marketing Department is one of the indispensable departments in the process of
formation and development of businesses.
Former Vietnam Foreign Trade Bank, now Joint Stock Commercial Bank for Foreign Trade in
Vietnam (Vietcombank) was founded and finally put into service on April 1, 1963 with either the
Foreign Exchange Agency's precursor organization (directly under the Bank). As the
government's first state-owned commercial bank to perform a pilot equitization, Vietcombank
formally operated as a joint-stock commercial bank on June 2, 2008 after it was successfully
implemented. Plan for equalization through the initial public offering. Vietcombank stock (VCB
stock code) was officially listed on the Ho Chi Minh Stock Exchange on June 30, 2009.
On August 12, 1993, Vietnam Prosperity Joint Stock Commercial Bank (VPBank) was founded.
VPBank has grown its network to 227 payment points with a workforce of almost 27,000
employees after more than 26 years of operation. In the first six months of 2019, total operating
profits amounted to VND 16.832 billion. Gradually, VPBank asserts the community's credibility
as a competitive bank with reliable and responsible financial capacity. VPBank's phenomenal
growth is expressed vividly in the expansion of the nationwide network of branches and
payment points and the diversified creation of sales and distribution channels.

MAJOR FINDINGS
Task 1: Marketing Mix
VIETCOMBANK & VPBANK
The 7P Marketing paradigm is one of the concepts that accompany the business and
organizational leadership pattern of inspiring marketing. This marketing model of 7P consists of
Three steps: 1 phase is "4P," i.e. 4 basic marketing planning features.It is a collection of
consumer solutions (or strategies), from concepts to product development, in which the product
is an unforgotten array of benefits; The next class is the marketing solutions, ranging from value
to discount delivery and consumer price; next are distribution and selling solutions and finally
branding solutions. (Vietnam, 2019)
Marketing mix: The marketing mix applies to the set of conditions or strategies that an
organization uses to advertise its label or service. The 4Ps represent a standard advertising
mix-price, brand, promotion and venue. Nevertheless, the advertising mix nowadays frequently
involves several other Ps as critical mix components such as branding, positioning, people and
even politics.
1. Products
A service or product that is launched and developed in the market with the company's
ownership
Vietcombank is the first digital bank in the financial industry to develop internet banking services
in Vietnam, so their products and services are extremely prominent with VCB-IB @ NKING
which is considered as a remarkable product. a step forward of the market movement era and
the foundation for bringing a new habit in consumer behavior of users in the digital age.
Immediately after being launched to customers, VCB-IB @ NKING has made a breakthrough in
the industry and left many changes for many commercial banks. In Vietnam's trade industry,
they pay attention to boosting investment in digital products. For them, continuous improvement
and change has been a goal they have been aiming for over the years with continuous

improvement from functionality to expanding suppliers and other aspects such as telecom.
information, energy, insurance, etc. to cater to consumer needs
In addition, VCB provides other digital products such as Phone bank which are used as a tool to
search for information about services and products, promotions and financial knowledge. such
as exchange rates, emergency services and support consulting to take care of customers.
SMS Banking takes advantage of the telephone messaging service to support users with
transaction information, query information or newly upgraded services, promotions, etc. Mobile -
Banking is a banking service on phones with features such as information lookup or
transactions without having to go to a transaction point or bank.
Besides electronic products, VCB promotes other services such as bank cards, savings deposit
accounts or loan services such as accumulation for future preschools, savings for partial
withdrawals. Also available are loan services such as real estate or personal loans, etc.
Compared to VPBank, every bank issues basic services such as savings, loans, internet
banking, etc. However, with VPBank they only develop products such as debit cards,
Mastercard and Visa. On the other hand, VPBank's loans are more open, such as health care,
encouraging teachers to study finance abroad.
2. Price
Price is an important and competitive factor in the banking sector and especially with credit
business. VCB constantly competes in lowering interest rates when borrowing or when raising
money, so interest rates will increase with savings deposits. Incentives for new customers or
patrons or services to pay tribute to loyal customers such as birthday gifts or Tet holidays, VCB
implements an attractive loan interest rate strategy as a gift to recruit customers and attract a
large customer base. This brings great confidence of customers for the bank
Next, the internal factors such as cost, products and services (SMS BANKING and VCB-IB
@ANKING) are factors that increase the price of VCB. External influences like customers: they
value the prices and quality of the products is difficult due to excessive information, bank
competitors: they need to know the market and the values of the competitors. They are aiming
to achieve a fair policy. Furthermore, banks may be influenced by the law pricing under control
of the government.

Even VP Bank offers discounts for new customers, opening cards or other appreciation services
as well as VCB, VP Bank is also affected by consumers, the economy, antagonists,
intermediaries. VP Bank, on the other hand, is a joint-stock commercial bank, so interest rates
are regulated in accordance with federal rules; apart from Vietnam, VP Bank is a company with
little financial means, so that loans may not be appropriate to remain competitive
3. Place
VCB has two central, conventional and modern sources of distribution. Traditional channels of
distribution include subsidiaries and reporter banks, while modern channels of dispersion
include fully automated branches, limited budget branches, online banking, and internet banking
services. Due to its high performance and low cost, VCB uses modern distribution channels and
can satisfy consumer transaction criteria anytime and anywhere. For traditional channels, it can
answer customer demands and concerns that new channels can't do, quickly answering needs
such as cash advance, high value bank transfer.
Throughout Vietnam, as in VCB, the divisions were not fully automated. VCB has 89 branches
and more than 350 foreign investment centres, 2 offices and one state office abroad, 4
enterprises and partners for many years in trading activities. Furthermore, VCB has founded
Autobank with more than 2,100 ATMs and more than 56,000 places globally that accept cards.
A network of over 1,800 foreign banks also funds banking operations in more than 176 countries
across the globe.
The banks employ two commercial channels of distribution: new and ancient. But there is an
exclusive AIA insurance marketing platform in VP Bank, and there are no outlets or payment
points internationally, so the bank's growth is still tight, hard to develop and low in size
4. Promotion
To meet overall strategic goals, VCB Marketing also uses marketing strategies to promote
goods like ads, advertising, social media marketing, brand management and private
procurement. VCB's media are magazines, the internet, tv, broad advertisements, direct
customer contact, endorsement programmes.
In addition to enticing advertisements and appreciation programs, VCB also engages in
charitable initiatives such as: supporting poor households in 10 Central Highlands mountain

districts with a total of VND 15 billion, funding VND 7 billion for education and infrastructure in
Gia Lai 2014
Many rewards programs are available to allow consumers to open label products like "American
Express VietBank (Amex) credit card, receive trendy Samsung Galaxy A10s" The policy
extends to first-time customers opened cards and sending flowers to 900 approved customers
and reaching a minimum VND 10 million or more purchase turnover with Amex business credit,
in addition, the account holder is eligible for five years. Last, on the release date.
In comparison to Vietcombank, VP Bank also has rewards to allow customers to unlock cards
and use services such as a 30 percent discount when purchasing VP Bank cards at King BBQ,
Truly Viet, Khao Lao restaurants. But the program is not really working and does not cater to
daily cardholders.
5. People
Employees are the pillar of strength for the bank. Marketing staff often play a major role such as
promotions, banking services, designing marketing plans based on a combination of consumer
intends to make the business a profit. Business but still confident of attracting customers.
Besides professional qualifications and communication skills, communication, listening and
sharing disposition and call center concerns are the main factors deciding whether or not
customers choose to use VCB goods. Knowing the scope of the problem, VCB is one of the
banks with the most strict recruitment rules and the strongest reward and benefits system for
workers throughout its operating years. Rigorous training phase was also actively encouraged
to improve the performance of the VCB system's staff.
Likewise, at VP Bank, they realize that interacting and listening to customers in particular is very
critical in the marketing plan and the bank in total, so their recruitment process is very analytical
and consistent in delivering translation. Best Customer Support.
6. Physical evidence
The workplace at Vietcombank is new, and loosely coupled. The transaction offices are planned
and fitted with new and flexible facilities that completely meet a typical commercial center's
expectations. With a diverse and experienced staff, VCB offers consumers and the industry with
the highest quality of care a full spectrum of accessible banking products or services, aiming to
appeal to a wide number of clients.

As according to Bank, the concept of "customer is the priority," the interaction thresholds in
location, service centers have changed entirely. Like transfer offices at VCB-VIP users
frequently do not have their own workspace, they need to wait as actual customers for their
switch and at VP Bank each settlement point has a client working space. To guarantee their
freedoms, vip the products. To meet the needs of its clients, VP Bank's products and services
are continuously being developed.
7. Process
The services provided by Vietkut are basically standardized by the mechanism established by
the bank to maintain standardization and quality across all banking duties. The bank still can
not, however, overcome other constraints, such as the operation of some cumbersome
systems, which will require more time for customers.
For example, the system of opening a card at Vietcombank: First, ready the required
documentation like ID card, 3x4 photo, card opening fee (50,000 VND) Next, go to the nearest
sales office, filling out the application and pay upfront (other protocols will be finished by the
employees). Also, after completing the verification process, you could use the services directly
with your card number.
Eventually, issuing the card to a retailer who has signed the card and a security code (change
password) will take 4-7 days for the Bank: Prepare paperwork; Fill out the form; Get the card
The procedure for opening a card at VP Bank is like at VietBank, but you have to fill out the
identity verification form at VP Bank along with the following phase
- Step 1: Go to card.vpbank.com.vn
- Step 2: Click enroll but pay
- Step 3: fill in the registration profile
- Step 4: upload your profile
- Step 5: Fill in and wait for the registration profile
Generally speaking, the system of opening VCB cards is still traditional and difficult for
customers as VCB is an investment bank and online form methods including VP Bank need to
be ensured.

Task 2: Marketing plan and SWOT
Company overview:
Former Vietnam Foreign Trade Bank, now Joint Stock Commercial Bank for Foreign Trade in
Vietnam (Vietcombank) was founded and finally put into service on April 1, 1963 with either the
Foreign Exchange Agency's precursor organization (directly under the Bank). As the
government's first state-owned commercial bank to perform a pilot equitization, Vietcombank
formally operated as a joint-stock commercial bank on June 2, 2008 after it was successfully
implemented. Plan for equalization through the initial public offering. Vietcombank stock (VCB
stock code) was officially listed on the Ho Chi Minh Stock Exchange on June 30, 2009.
 Vision: Vietcombank strives to become one of the 100 largest banks in Asia and among
the 300 most powerful financial banking groups. In addition, they want to develop the
system according to international standards.
 Mission: Vietcombank always wants to explore the potential to support the poor, lead the
way in supporting people in remote areas and the fields of health, society, etc. The goal
is for social development.
 Business and achievements: Enterprises set goals that bring about the development of
enterprises and the growth of society. Vietcombank wants to become the leading
enterprise in retailing and second in wholesale. In addition, they want to consolidate
profitability and high profitability within the business. In addition, Vietcombank wants to
be at the forefront of customer satisfaction in order to attract more customers to use its
services. Moreover, they want to improve the human resource management system as
well as the risk management of the leading enterprise. Ultimately, they want to change to
become the business with the strongest digital banking transformation.
SWOT
SWOT analysis (analysis of strengths, weaknesses, opportunities and threats) is a
method for recognizing and evaluating internal and external factors that may affect the
viability of a plan, product, venue, or entity.

For a strong enterprise like Vietcombank, promoting strengths and opportunities and
reducing weaknesses and facing challenges are indispensable for the company.
 Strengths:
Vietcombank - the most influential financial bank in Vietnam financial market,
strengthens its advantages through: Their management is a group of representatives
who are sensitive to the market they are in. In addition, the Board of Directors is also the
ones who have many years of experience in the domestic financial market.
To get the position today, businesses have trained staff to become elite and excellent.
They require high staff capacity throughout the working process, moreover, the
incentives and remuneration policies of the business are also extremely diverse to be
able to keep excellent employees at the same time increasing the number of employees.
the amount of manpower over the years.
In addition, their brand position is also extremely strong. The building of a brand image
also depends on many factors such as politics, experience and time to market.
In addition, Vietcombank promotes bank card services and foreign exchange activities in
the market. As of 2011, Vietcombank had 6.5 million cards in the market to meet the
needs of users.
Moreover, they aim to be a brand of financial enterprises across the country and
diversify products along with the strongest domestic and international trading system in
the country. This supports businesses in promoting development advantages.
 Weaknesses:
However, a thriving business is one that can capture its weaknesses and improve it.
For Vietcombank, this is a business that has weaknesses in a bulky management
system, lacking close links between other commercial banks.
Next, the history of Vietcombank is a state-owned bank that causes restrictions on the
introduction of modern and leading information of the country.
In addition, the bank's learning and understanding of international finance is still limited
and has not been expanded, making it difficult to become a leading and strong
international system.
Finally, they are not well structured in terms of income and are easily volatile by the
market economy through interest rates and credit. Their products are not diverse, and
are restricted within many years of operation on domestic finance.
 Opportunities: