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Name: Nguyen Thi Minh Chau Class: I8B Submitted to: Mrs. Pham Phuong Lan
ACKNOWLEDGEMENT
In order to complete this research, there must have been for the help of many people. Therefore, we would like to thank all of them for supporting us and spending such effort on the report. First of all, the greatest thanks are for the lecturer, Mrs. Phuong Lan. If there had not been for your clear instruction in class, we would not have been able to complete this report. Besides, you spent time instructing us with every detail of the project. Secondly, thank all the students who had helped to complete the survey. They had to spend time answering the questionnaire. Even though it took time, they still tried to do it as perfect as possible. Finally, thank all our friends who helped us come up with the idea and showed us what was correct, what was irrelevant or what was missing. They had undoubtedly played a large part in the project. Therefore, we want to thank them sincerely. In short, this part of the report is written in acknowledgement of these peoples precious help, who had contributed a lot regardless of the time, work and efforts.
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Contents
ACKNOWLEDGEMENT .............................................................. 0 Chapter 1: INTRODUCTION ...................................................... 3 I. 1. 2. II. III. IV. 1. 2. V. Background: ....................................................... 3 Introduction about e- commerce: ..................... 3 Brief about Nhommua.com and E-commerce:.. 3 Rationale: ........................................................... 4 Scope of the study: ............................................ 4 Research Menthod: ........................................... 4 Primary data: ..................................................... 4 Secondary data: ................................................. 4 Literature review: .............................................. 5
Chapter 2: Group coupon and SWOT of Nhommua.com ......... 8 A. I. II. B. I. II. III. IV. V. Introduction Groupon and Nhommua.com ...... 8 What is Groupon and how does Groupon work? 8 Introduction about Nhommua.com company: 11 SWOT analysis about Nhommua.com ............ 12 Analyze competitive: ....................................... 12 Strengths: ......................................................... 13 Weakness: ........................................................ 14 Opportunity: .................................................... 15 Threats: ............................................................ 16
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Chapter 1: INTRODUCTION
I.
Background:
1. Introduction about e- commerce:
The first e-commerce model was introduced in 1979 by Michael Aldrich base on Electronic data interchange (EDI) and Electronic funds Transfer (EFT). This model allowing business to send the commercial documents like purchase orders or invoices electronically. Nowadays, ecommerce develops with a high speed with the new inventions of technology and new business models.
Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge. Business to Business or B2B refers to electronic commerce between businesses rather than between a business and a consumer. B2B businesses often deal with hundreds or even thousands of other businesses, either as customers or suppliers. Carrying out these transactions electronically provides vast competitive advantages over traditional methods. When implemented properly, ecommerce is often faster, cheaper and more convenient than the traditional methods of bartering goods and services. The road to creating a successful online store can be a difficult if unaware of ecommerce principles and what ecommerce is supposed to do for your online business. Researching and understanding the guidelines required to properly implement an e-business plan is a crucial part to becoming successful with online store building.
2.
In the trend which e-commerce is increasing more and more, it is easy to recognize that in the recent years, the amount of purchasing through website sold rocketed over the period. This form of trading becomes closer to a huge number of consumers. Go with this trend, Nhommua.com is one of developed companies by e- commerce form and one of first companies operated orientated in Group coupon business model, which is formed in the United States and expand trade over two years nearly and cored business in group discount principles. Although it has just entered into Vietnam in a short time, but this model increases soared and became a new trend in e- commerce activity in Vietnam. In the period of formed and developed, philosophy and policies
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Group coupon model and SWOT Analysis about Nhommua.com of Nhommua.com is nonstop improving and advancing either quality and service, always brings about gratification and provide the most actual benefits to customer. Nhommua.com had many achievements and hallo- effect from consumers, especially young people. It can be said that, ecommerce plays an important role in Nhommua.com success.
II.
Rationale:
The first reason I choose this topic since I want to focus on one of e- commerce form: Group Buying, which is belong to my major in the university. I hope that research this project will help me explore some aspects of the subject I will learn in the future: Marketing. This thesis will also help me to get acquire with some extend of Marketing study that will learn in the second year. Secondly, this is a good opportunity for me to improve my analysis skills and estimation through research this topic. I believed that in the future, its very important to have a larger view from many aspects. In addition, in the last few years, Group buying have become a rocketed trend in current market. More and more peolple prefer using Internet for shopping than going to real shops or stores. On the other hand, many businesses and company use Internet as their strategy to advertising. They have received many good result and sale products increase rapidly because they have gain their customer attentions through Group coupon marketing form. In conclusion, this business model is really hot and draws a lot of attention in business circles. There are many business follow this business model but just only few of them can stay and have a position in the current market. Many companies have to say good bye to this Group Buying market because to obtain a fairly good standing in the market is not a simple matter. I want to know how do they apply the Group Buying model which is from a very different market in United States to Vietnams market, the reasons that make them succeed, or fail sometimes, especially Nhommua.com, the website is now leading all the market Group coupon, what threats do they have to face with?. To understand more, I choose to a topic about Group coupon and SWOT analysis of Nhommua.com.
III.
IV.
Research Menthod:
1. Primary data:
The primary data of this research are from the survey of the customers in Hanoi who used online coupons by the Internet. I choose 30 people who live and in Hanoi to survey, they will answer to the questionnaire through the google.docs. Most questions focus on people in the age group from 18- 65 years old in Hanoi.
2. Secondary data:
To support the primary data gathered from the online survey, secondary data will be also collected. In this research, there are many sources of secondary data including electronic articles, websites (specialized in researching Groupon statistics), Internet reports about Groupon websites and previous studies (from foreign authors and thesis of previous years). I use some websites to collect data such as: baomoi.com, vietnamnews.vn, techinasia.com
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V.
Literature review:
1. Nhommua.com has many delightful surprises!
http://hcm.24h.com.vn/thi-truong-tieu-dung/nhommua-co-nhieu-bat-ngo-thu-vic52a441957.html i. Business condition in 2011: Up to present, nhommua.com still be number 1 website e-commerce in Vietnam and the quantity product is more and more plentiful and varied. This website gets a couple of million hits a day. Therefore, Nhommua sales 2 million voucher. The company has gained a large market share, for about 60%. There was no sign that competitors can surpass easily. ii. Future plans: First of all, NhomMua will try to maintain their No. 1 position in the field of group purchasing in Vietnam. They will create more new and attractive program to increase the amount of members up to 2 million people. The most important is nhommua.com will be available in two major cities of Hai Phong and Can Tho this year, also Nhommua Hai Phong they are in the preparation stage. On the other side enterprises cooperation with nhommua.com, this year, NhomMua will create more services and attractive conditions of cooperation in order to demonstrate that nhommua.com always be a reliable partner in their development business . iii. The ways to reach the tagets: The first thing is finance situation. Nhommus.com is very fortunate to take advantage of the supports from three investment funds in the world: IDG Ventures Vietnam, Rebate Networks, and ru-Net. From which NhomMua will focus on improving the technical team to stabilize the system and create a variety of services / products. The second thing is NhomMua will focus strongly on social network field. Now nhommua.com are operating on Facebook, Twitter, Linkedin, Youtube ... and the company was very pleased with the results today. According to the latest data from company SocialBakers, NhomMua Facebook now has more than 200,000 members, this figure has helped NhomMua become number one fanpage in Vietnam. In addition, Nhommua cooperate with a big shot electronics industry to run several attractive programs, to ensure to attract all the current members of the site as well as people who do not know nhommua.com.
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Figure 1: Groupon business model (Venkateswaran, Network effects in groupon business model,2010,<http://www.ebizcolumn.com/2010/12/network-effects-in-groupon-business.html>, viewed 8/12/2012).The deal of groupon wonders for local small businesses that need foot traffic. Traditional online advertising isnt nearly as effective as social buying platforms for getting people to visit local storefronts. For approximately the same price as a decent-sized online advertising campaign, a collective buying site will feature your businesss deal offering on their website and notify local email subscribers. With many of these online services boasting readership in the
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Group coupon model and SWOT Analysis about Nhommua.com millions, they can literally flood your store with hundreds to thousands of new customers within a single day or two. Moreover, these daily deal websites only charge you when sales are generated. So not only will this promotional tool earn a bucket load of cash flow and new customers for you, but youll only have to pay when real results are obtained for your business. A pay per sale model combined with a powerful distribution system, time-sensitive discounts, and social media based user referral incentives make group buying sites a hands down winner for most local business owners seeking to gain new customers and elevate sales. Instantly acquire new customers For budding small businesses that are starved for clients, group buying sites are the most effective solution to acquiring new customers. Groupon and others like it can send you hoards of deal crazed consumers for you to convert into long-term customers. Your return on investment (ROI), in terms of getting new customer in the door, is unmatched compared to other advertising options. Quickly generate cash flow Top daily deal sites like Groupon have generated sales in the tens of thousands for some business owners. If a merchant sold 10,000 vouchers at $10 each, thats $50,000 (minus Groupons standard share) in cash flow that was raised in just a matter of a few days. No other advertising model rivals the rate at which deal sites can inject cash flow into a business. No upfront costs Deal sites utilize a pay per sale (PPS: a.k.a. cost per sale; CPS) model to generate revenue which means business owners pay nothing upfront to use their services. In contrast to traditional cost per thousand impressions (CPM) or cost per click (CPC) advertising fees, a cost per sale charge ensures that you only pay Groupon when a sale is generated for your business. Barring unauthorized purchases or any refunds that buyers submit to the deal site, your advertising expenses produce real results in terms of customer acquisitions and the production of sales. Measurable results Companies can spend millions of dollars on local radio, television, print, and online advertising campaigns and never see any clear increase in offline sales, let alone any change in traffic to their local stores. Vouchers require that the customers visit your storefront in order to redeem them. When they do this, you can easily track the profits and expenses for each voucher sale thats generated. Before that however, youll already know exactly how many people received your deal offer in their inbox, how many people opened it, and the number of people that purchased it. Increase offline visitor traffic Previously, the resources available to convert online sales into foot traffic for local store owners was limited to gift cards and simple coupons. The conversion rates of the latter are quite poor and without a discount, gift cards dont fair much better when it comes to getting customers into stores. Social buying sites on the other hand represent a very efficient way for merchants to push traffic into local storefronts and acquire new customers. Gain Facebook & Twitter followers People love businesses that offer deals to their customers and theyre more willing to hit that Like or Follow button on Facebook and Twitter because of it. Business owners have reported that their Facebook fans and Twitter followers have increased after being featured on daily deal websites like Groupon. Minimal time commitment Groupon and other daily deal sites do nearly everything for you. Your time commitment upfront is limited to gathering a few images and creating some text copy
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Group coupon model and SWOT Analysis about Nhommua.com regarding the limitations of your deal offer. Groupon employs nearly one hundred full-time writers to ensure your featured deal pops off the page and it creates quite a buzz for your establishment. In comparison, effective online advertising requires a much larger investment of time to create the ads, complete the necessary keyword research, and setup conversion tracking. Incredible business exposure Large social buying sites like Groupon have millions of email subscribers and they get just as website visitors each month. They distribute your deal offering to local site members that then retweet and share your deal throughout the Web. Since you only pay when a sale is generated youre essentially getting free advertising to boot and lots of more buzz for your business. Highly desirable customer demographic The average user of daily deal sites like Groupon tend to be educated females with money to spend that are socially active both online and offline. If youre a local business owner that utilizes Groupon this means that those new customers possess a great potential to return to your establishment and share their experience with their friends. Reduce your advertising budget The primary goal for advertising is to acquire new customers for your business. Social buying websites are much more effective at this than traditional advertising channels. By redirecting your companys advertising budget to offer a group deal instead of traditional local ads allows you to spend less on advertising and still acquire more customers. (Top 10 reasons to using groupon, 2011, http://tomuse.com/daily-deal-sites-groupon-businessadvertise/, viewed 4/3/2012)
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It can be seen that this is a Win - Win - Win model, means that all three parties have their own benefits: Nhommua.com - partner is a supplier of products, service, customers. Especially,
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Group coupon model and SWOT Analysis about Nhommua.com customers buy goods at low prices (40 - 90% of original cost); suppliers have more opportunities to advertising / obtain new large customers with low cost, and maximize productivity in spare time, reduce the amount of inventory. Nhommua.com is like a middleman, inherited differential cost (5 10%). For example, after reaching an agreement to provide a large number of voucher, the supplier 55% discount for decision Nhommua.com, Nhommua.com will retain 5%, 50% is reserved for clients. Although Nhommua.com have just established a company from 7.2010 but Nhommua.com now accounts for over 36% of market trading online discount voucher and currently is the leader in this field. Since going into operation, Nhommua.com Vietnam saves consumers more than $ 13 million, giving partners a profit of $ 6 million and 4.5 million unique visitors per month and impressive record consumption by more than 800.0000 coupon discounts, is Nhommua.com are associated with more than 300 partners that provide products and services leading reputation. Model when embarking on new activities and have met its barriers to success. However, according to some experts, the trend is Group coupon going to have a huge advantage that has attracted attention from the consumers, and especially young people. This trend creates preconditions for stable models in operation. Make use advantage of this, Nhommua.com are constantly developing their systems, and to build and expand relationships with major partners and prestige model to let Win - Win - Win is actually achieved its inherent efficiency.
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Group coupon model and SWOT Analysis about Nhommua.com In terms of sales, nhommua.com was leaded for 35.89% of the market with 225.586 billion. Second is hotdeal.vn with 167.068 billion, accounting for 26.58% of the market. The third page is muachung.vn with 91.213 billion, accounting for 14.51% of the market. And fourth is cungmua.com with the 85.617 billion, accounting for 13.63% of the market.
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II.
Strengths:
With the advantage of starting from a member of page Diadiem.com, Nhommua.com has the advantage of location data. In addition, last month 7.2010, Rebate Networks (USA) had invested and launch 60 million USD in MJ Group, the company Nhommua.com belonged to. This is a successful investor has invested in Group coupon sector worldwide, currently operating 14 different countries and over 280 cities. This is considered as the advantages in terms of technical, financial, capital
With long experience period, Nhommua.com had drawn upon all the energy and all the advantages of experience in e-commerce in the areas of previous work to build a nice interface, eye-catching, feature-packed and easy tool to use.
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Group coupon model and SWOT Analysis about Nhommua.com Besides, Nhommua.com is known as a pioneer in the field of Group coupon, Nhommua.com had occupied more than 36% of the market and has built its brand and reputation in the market. There are many advantages of a leader, through measures propaganda ad will attract more and more visitors to the company, and the buyer is also count on brand when shopping. In addition, with a large plus members that made her reputation, negotiating with suppliers will also become easier than weaker competitors, increasing the chances of negotiations successful negotiations with major suppliers and reputation in the market as well as negotiating to get the best price. This is considered one of the competitive elements of the business. Figure 1 not only shows the reasons why customers choose Nhommua.com but also illustrated strength of Nhommua.com
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Figure 1
To conclude, Nhommua.com has a strong business strategy and advertisement: 1. Strategic partnership: Rebate Networks which specializes in Groupon cloning 2. Extensive investment in advertising 3. 360o advertising: web banners, building LCD, elevator LCD, coffee shop LCD, taxi LCD. They attempt to cover a persons full day with their brand 4. Strong sales team aiming to win the top merchants. Merchant quality is one key factor to retain customers 5. Signing exclusive contracts with merchants to block other group coupon players 6. Win the market to attract investment 7. Utilizing DiaDiem.coms infrastructure data for delivery logistics 8. Office design that forces sales team to the streets
III.
Weakness:
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Group coupon model and SWOT Analysis about Nhommua.com Many surveyed people consider websites to buy coupons for price reduction. The most important reason for Group coupon website favourite is that deals are in their favourite category (54.5%). Second reasons are "Competitive prices" (50.4%), "Fast and good delivery service"(47.0%), "Good supporting service" (44.4%) and "Deals in living location" (42.1%). The least considered reasons are "Famous website" (21.6%), "Useful feedbacks from previous buyers" (17.4%).
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Figure 2 Besides, the form of payment by electronic gate - type of payment is quite convenient and modern undeveloped, existing companies use forms of payment via MasterCard or highest Internet Banking, in the form of e-payment gateway (Nganluong.vn ...) has not been paying attention to.
IV.
Opportunities:
According to experts, Viet Nam has a strong technology infrastructure, with one-third of the population regularly using the internet. In addition, one in nine citizens use social networking, while one in every five cell phone owners uses a smartphone. Accordingly, there is a clear opportunity for businesses to take full advantage of the internet. In addition, with the develop of supporting devices such as D-com 3G, wifi, some software in cell phone play important parts in creating oppotunites for Nhommua.com to approach customers easly. It is easy to see that Vietnamese consumers are very interested in price, and promotion, a lot of people buy promotional items even when they are not needed; so this is a huge advantage when applying this model. Besides, the Vietnamese consumer psychology often follow trends crowd also is a good opportunity for business types Group coupon of Nhommua.com.
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Group coupon model and SWOT Analysis about Nhommua.com Groupon can be a potential acquisition target for larger companies, such as Google, Facebook or Amazon.com, leveraging its subscriber base and brand value.
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The next opportunity is Group coupon is still a new model, a new way to always give people the excitement and desire to experiment. Not all successful models in the world will be archived somewhere else, but with a huge number of internet users in Vietnam, as well as compliance with psychology, consumer behavior has created opportunities for Nhommua.com.
V.
Threats:
There is a fact that the Vietnamese people still do not really believe in buying things on the Internet, especially the super type of discount, often "scare". Vietnamese people also have the concept of "cheap is of not good" so sometimes they suspect at large discounts. In order to attract buyers, attract members interested in your website requires some significant costs, also means that arose some costs, such as: operation costs for advertising, maketing costs ...
As mentioned above, the group purchasing organization activities on Groupon sites mainly focus on the service sector. Customer service and employee service attitude in places to provide products / services as well as a double-edged sword. In Vietnam for a number of businesses participating in this form are not aware of the benefits of customer care and long-term benefits, attentive to short-term profit, when customers use coupon coupon , especially in the service segment is not usually attentive service staff, and some places even discrimination. Even the service of the big brands also had many similar cases occur, the service provided is not 100% as promised, garbled to reduce costs. Having quality products and services and the lack of preparation of the enterprises involved. For many businesses, the quality of products and services is the lack of consistency in quality should lead to a lack of careful preparation and forecasts
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Group coupon model and SWOT Analysis about Nhommua.com wrong program capacity to serve the customer to the east, quality of products and services do not meet hotline perpetually grumpy staff, product shortages ... This reverse image also detrimental for real business deals. On the other hand service providers Vietnam is no exact standard for their products and services, which leads to the stage of quality management services for customers to buy coupons on your the Group coupon page will not guaranteed and it is also difficult to manage the provision of the service provider.
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The reasons why in the Middle of November, revenue of Nhommua.com reached a lowest point is that, Nhommua.com have some trouble internal business. That is a big problems that Nhommua.com have to deal and fix it as soon as possible.
Chapter 3: Conclusion Right now, with the strong development of science and technology especially information technology sector, providing services as well as utilities increasingly rich, diverse, not only meet immediate needs but also improving the living standards of the people considerably. With the style industry, customer is God, Nhommua.com could have used a phase in the area of ecommerce, which provides hands customers a range of products and services with affordable, appropriate standard of living of consumers in the context of the economy is difficult. However, Nhommua.com still have to face with some problems inside. I believe that if they fix and overcome that, in the future, Nhommua.com will further extend applications to meet the needs for customers. This is a key factor contributing to building a strong Nhommua, scalability scale international stature, and increase more than ever
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VI.
Report
Topic: The effectiveness of groupon website Nhommua.com Survey started from 9/11/2012 to 13/12/2012 with 31 respondents.
Survey Result
Here are some results for questionnaire: Question: Where do you buy coupons for price reduction the most? Nhommua.com Mua chung.com Hotdeal.com Cungmua.com Giamua.com Dealsoc.vn others 12 votes 8 votes 3 votes 2 votes 2 vote 1 vote 2 votes
Question: Please let me know the reasons why you choose nhommua.com Deals specialized in your favorite 17 votes
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category Best deals with competitive prices Fast and good delivery services Good supporting service Good comments from friends and coworkers Beautiful images and design website
Question: How frequency do you usually surf this website: Vote times 3 9 9 2 4 2 2
Above 4 2-3 times/ day 1 time/day 4-6 times/ week 2-3 times/ week 1 time/ week 1-3 times/ month
Comestic shopping coupon Supermarkets coupon Travelling coupon High class restaurants coupon Cinema coupon Health care coupon Coffee shop coupon Clothes shopping coupon Household appliance shopping coupon Common restaurants coupon
Vote times 8 7 8 7 7 8 9 9 11 14
Question: Please let me know your satisfaction level with nhommua.com: Strongly satisfied Slightly satisfied 9 21
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Slightly unsatisfied
Question: How many times have you ever faced with nhommua.com: 0 time 1_2 times 3_5 times Above 6 times 15 12 3 1
VII.
Reference:
http://hcm.24h.com.vn/thi-truong-tieu-dung/nhommua-co-nhieu-bat-ngo-thu-vic52a441957.html http://dimua.vn/blog-dimua/danh-gia-hinh-thuc-mua-theo-nhom-groupon-tai-viet-nam http://groupbuyviet.blogspot.com/search/label/nhom%20mua http://www.fool.com/investing/general/2012/02/29/an-analysis-of-grouponsbusiness.aspx http://www.techinasia.com/impact-vietnams-fallen-group-buying-star/
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