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Digital Marketing Mix
Digital marketing mix is fundamentally the same as Marketing Mix, which is an adaptation of Product, Price, Place and Promotion into digital marketing aspect (Dominici, G (2009). Digital marketing can be commonly explained as 'Achieving marketing objectives through applying digital technologies'.(Chaffey, Dave; Ellis-Chadwick, Fiona (2012)).
Product: Thanks to the interaction and connection of the Internet, Product has been redefined as 'virtual product' in the digital marketing aspect, which is regarded as the combination of tangibility and intangibility. Through the form of digital, a product can be directly sent from manufacturers to customers
Price: Price concerns about the pricing policies or pricing models from a company.
Due to the widely use of the Internet, many applications could be found in both consumer's and producer's perspective. From consumers' side, the Internet enables people to make a comparison to a real-time prices before they make a consumption decision, which is time-saving and effort-saving for the consumers. As for the suppliers, they can adjust prices in the real-time and provide higher degree of price transparency with customers. Besides, the Internet is more likely to ease the
pressure on price because online-producers do not have to put budget on renting a physical store. Hence, making new or adjusting pricing strategies is essential for the company that wants to enter the Internet market.
Place: With the application of the Internet, place is playing an increasingly important role in promoting consumption since the Internet and the physical channels become virtual. The major contribution from the Internet to the business is not only making it possible to selling products online, but also enabling
companies to build relationships with customers. Furthermore, since the
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convenience of navigating from one site to another, place from the digital marketing perspective is always linked with promotion, which means retailers often uses third-party websites such as Google search engine to guide customers to visit their websites.
Promotion: Promotion refers to select the target markets, locate and integrate various communications tools in the marketing mix. Unlike the traditional marketing communication tools, tools in digital marketing aim at engaging audiences by putting advertisements and contents on the social media, including display ads, pay-per-click (PPC), search engine optimization (SEO) etc. In order to help in making online marketing campaign, Chaffey and Smith suggested that they can be separated into six groups.
Searching marketing, including search engine optimization (SEO), pay-per-click (PPC).
Online PR, enlarging good comments on one's products or services while reducing negative comments.
Adverse comments.
Online partnerships, building relationships between third-party webs to promote products or services.
Interactive advertising, Opt-in e-mail advertising.
Social media marketing, starting and participating in customer to customer, customer to company interaction through social media.
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Chapter Three: Research Method
3.1 Qualitative Analysis
The research method of this thesis is qualitative analysis. After we have an
overview of the low-cost aviation industry in the world, Southeast Asia, especially Vietnam based on the theoretical contents presented in chapter one and chapter two of the study. Next is to use SWOT & 4P analysis mentioned in chapter 2 to analyze Vietjet's business situation, the results that Vietjet has achieved, analyze internal &
external factors directly or indirectly cause affect business performance, reputation, growth or namely SWOT matrix analysis including strengths, weaknesses,
opportunities, challenges and then propose effective strategies for businesses.
Followed by 4P analysis, we will study how Vietjet implements Marketing
strategies for products, prices, locations and promotions for domestic and foreign markets. All data will be collected from Vietjet's official website, Statistical portal, Wikipedia, Financial reports, Business reports from reputable websites, world aviation data center, evaluation of aviation experts, CEO speeches, books,
newspapers, magazines ... Finally, based on the results of qualitative analysis, we will draw conclusions about marketing strategies for the industry. Low-cost aviation and some useful recommendations bring good results for Vietjet's
development in the future. Besides, this thesis will point out the limitations in the research process and future proposals
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Fingure 3.1 Research Framework 3.2 Research Framework
This study focuses on Marketing strategy for low cost airline industry based on a case of Vietjet Air in Vietnam. The overall research model is illustrated in fingure 3.1. After 6 years of participation in the airline market, Vietjet has achieved an amazing results because of the right choice of business model , seize opportunities at the right time, have a careful preparation, financial potential , strong relationship and business environment in Vietnam suitable for development of LCC: Vietnam is an attractive market thanks to its high growth rate in Asia Pacific region. The proportion of people flying is still low compared to the region. High tourism growth in the region and the most important thing is Vietjet's bold marketing strategy that has brought a great result for this low-cost airline.
Marketing Strategy for Vietjet Air
Qualitative Analysis: SWOT & 4P analysis
Recommendations for the case of Vietjet’s growth from LCC industry
Case of Vietjet Air in Vietnam
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Chapter Four: Major Findings
4.1 Brief Introduction of Vietjet
VietJet Aviation Joint Stock Company ( trading name as VietJet Air or Vietjet) is an international low-cost airline from Vietnam. It was the first privately low-cost airline in Vietnam being granted its initial approval to operate by the Vietnamese Minister of Finance in November 2007. Due to fluctuations that caused gasoline and oil prices to rise therefore it was not until December 2011,Vietjet officially launch into airline market by the first flight from Tan Son Nhat Airport to Noi Bai Airport and made a big splash early on with ads featuring bikini-clad flight
attendants .
VietJet was established from 3 main shareholders of T&C Group, Sovico
Holdings and Ho Chi Minh City Housing Development Commercial Joint Stock Bank (HD Bank), with an initial charter capital of VND 600 billion (equivalent to 37.5 million USD at the time of capital contribution) . Vietjet is an airline to operate under the new-age carrier model , cost-effective & flexible and offers a wide range of services for customers to choose from. Not only air transport, Vietjet also provides services through advanced e-commerce technology
applications. Vietjet is an official IATA member with IOSA'scertificate in 2016 (IATA Operational Safety Audit). Culture of safety is a significant integral part of Vietjet corporate culture. This will be grasped thoroughly by every staff at Vietjet.
Currently, Vietjet is exploiting 66 aircrafts A320 and A321 , carrying out more than 385 flights a day and transporting more than 65 million passengers with 105 routes covering all destinations in Vietnam and international routes to Japan, Hong Kong, Singapore, Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia... The company plans to develop a wide-spread network in the
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Pacific region continue to expand routes in the region and has signed modern, modern generation aircraft purchase contracts with reputable aircraft
manufacturers in the world.(Vietjet’s annual report 2018)