Group 3_MKT_A2

Nguyen Ngoc Anh_ 10150242_MKT_A2

Do Vu Dat_ 10160003_MKT_A2
Bui Duc Hai Long _ 10150128_MKT_A2
Vu Minh Trang _ 10160036_MKT_A2

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 INTRODUCTION

Company BABY BOSS is running a business as a fitness center for children from 7 months
to 10 years old.They open their venue in Xa Dan – one of the main roads in Hanoi – the capital
of Vietnam. The building has 4 floors with the number of different equipment, besides that
company BABY BOSS provides for customers a huge team of professional trainer with many
experience years and their employees are trained every week to be more professional then satisfy
and serve customers with the best qualification. They operate many different classes and subjects
to let customers have variety and freedom when choosing the most interesting class and suitable
time with them. Company BABY BOSS set the price per month for each child is 600,000 VND –
the acceptable price with the income of people in Vietnam, especially with cities in modern city
like Hanoi.

Within the fixed budget, company BABY BOSS can do some following plan to attract more
customers, set the higher position in the customers’ mind and also minimize the cost to maximize
the profit for company. The following report will analyze how products are developed to sustain
competitive advantage, choose the most suitable distribution channels to satisfy customers,
explain the process of setting price to suitable with the objectives of organizingand market
conditions, show how the promotion strategy is definitely essential to achieve marketing
objectives and consider some factors of the 7Ps – marketing mix. Furthermore, this report also
indicates some marketing’s plan in consumer markets,distinguish the differences in B2B and
B2C (business to business and business to customers). And lastly, the difference between
internal and domestic marketing will be illustrated in the following report.

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 Major Finding

Task 3.1. Explain how products are developed to sustain competitive advantage
Competitive advantage is the condition where each company has their own special
strategies, such as produce products or services at a lower price or designs it with the
differentiation to attract customers and compete with other competitors. There are many
elements which are included in competitive advantages: the cost of raw material, products’
quality, brand and distribution network…

3.1.1. Customer’s needs and wants:

First and foremost, people are living in a busy world; they do not have enough time to take
exercise although their desire is having a good health. As a result, people encourage their
children to do exercise because they know that the older people are, the less time people have to
do exercise. When kid growth, they have many things to learn and do, for instance study or
practice other subjects.

Secondly, the preparation for children have enough skills to face with some basic
circumstances in the daily life is one of the most essential things which parents need to do. For
more detail, kids need to learn how to swim, it not only a relaxing activity but also helps children
improves its health a lot. Moreover, the higher number of children who know to swim, the lower
rate of water accidents.

Last but not least, in the technological age, let children play with technology is not
unfamiliar, for instance, parents will let their kids play with their phone or computer, watch TV
or play video game whenever they want their kids play alone and obedience. Even in some
families, playing with technology is considered as an award for children when they do something
good. In facts, the age under 12 years old, children are extremely smart and they can learn new
things with high speed. Hence, they need to go out more to discover the world around them and
learn some basic skills or main subjects. However, parents are not having enough time to teach
their children or play with them, it quite difficult for children to develop in the best situation.
Taking everything into consideration, parents have a demand of letting their kids have a good
health, grow with some basic skills and have more activity to be more energetic and most of
them, they need to ensure that their children always are do exercise in the most safe place.

Catching this demand, company BABY BOSS was established as a fitness place for kids;
they train for children from 7 months to 10 years old, help children have a good health, teach
them some core skills and main extracurricular subjects. In Vietnam, operating a fitness place for
children from 7 months to 10 years old is quite strange, it not only require the highest careful and

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safe for children but also need the highest profession to train kids. Company BABY BOSS need
to show and prove that they are one of the most ideal environment and safe place where parents
believe to let their children come and practice, because the training team of company BABY
BOSS is trained very careful. To rank the higher position in the customer’s mind than other
competitors, company BABY BOSS need to follow and satisfy the customer’s needs, wants and
demands (Bhasin, 2017). Furthermore, company BABY BOSS need to create and develop some
unique or different products, services or strategies to attract customers.

3.1.2. Benefits in total products / services:

Based on “Principle of marketing” of Phillip Kotler, achieving three product’s level is the
successful method to satisfy the need and want of customers, which are core products, actual
product and augmented product. (Kotler, 1983)

Figure 1. Three levels of product

(https://marketing-insider.eu/three-levels-of-product/)

 Core benefit:
Core benefit is the basic value of product or service, it answers the question what does the
consumer seek and expect when they buy or use this product or service. Applying it to company
BABY BOSS, they operated a fitness place for children from 7 months to 10 years old, they train

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and improve the health for kids, teach them some basic skills, it is the core benefit of company
BABY BOSS. To provide services with high qualification, company BABY BOSS trained their
employees to be professional trainers who are clever with children and have enough careful to
ensure that children is practicing in the most safety situation. All trainers and supervisors of
BABY BOSS center were trained based on the program of USA about healthcare.

 Actual Product:
Through actual product, for instance: design and have special brand name, logo, etc. the core
benefit can be identified clearly (Mueller, 2007). All of the factors at the second step are related
closely to the core benefit. It means that each step in three levels of products are built based on
the above step, they are linked strictly together.

When it comes to company BABY BOSS, first and foremost, the company can establish
website and app on smart phone to help customers can register, update news and information of
company in the easily and convenient way.

Secondly, when customers come to do exercise, they need to wear comfortable clothes;
company BABY BOSS can design the unique uniform for their members. The uniform need to
ensure that it not only comfortable but also attractive to make members want to wear it instead of
their clothes. Of course, they can wear their own cloth but if they want, they can take cloth of
gymnasium when they come and pay back when they done their practicing time. Company
BABY BOSS provides the service of laundering and members no need to pay fee. It is very
convenient because after studying time, children can go straightly to the fitness place without
bringing other clothes.

Last but not least, the practicing environment is one of the most essential elements which
create the huge effect on deciding process of choosing company BABY BOSS is the suitable
place for children practice. Xa Dan is the street where near center of Hanoi, it has many roads to
come to Xa Dan, it is quite an ideal and convenient venue. More than that, the distribution of
building is pretty scientific, it is a 4 floor-building and each floor is designed for different age
group. It ensures that each age of group will have different methods, different classes to train,
they do different fitness exercises.

 Augmented product:
It is the last step in the three levels of products and it also built based on two above steps. It
concludes: delivery, credit provided, warranty, after-sale services, etc. (Mueller, 2007).
Customer can install app and use website of company BABY BOSS to have more information
and convenient.

Firstly, with credit provided, customers can pay fees for the fitness company by both cash
and credit card, there is no limitation.

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 Secondly, with post-purchased, customers can leave feedback online for trainer and
company; the trainer can be rated by their members, it helps company improve the effectiveness
of them.

Thirdly, when customers buy gym card online, they can order to be shipped the card to their
wanted place; company BABY BOSS provides ship service to satisfy their customers. Lastly,
company BABY BOSShas one department responsible for calling and asking about the level of
customers’ satisfaction.

3.1.3. The features, advantages and benefits of company service:

Through applying FAB model, company BABY BOSS can understand the desire of
customers through three elements: features, advantages and benefits (Clark, 2017).

Applying in the situation of company BABY BOSS, they provide fitness service and the
following table will analysis company BABY BOSS:

Features Advantages Benefits

Saving time and money because the
Signing up and receive news
App and customer does not have to call for or
through using computer or smart
website come to the venue to register. It is more
phone.
convenient to customers.
Easier to realize the staff of company
The drivers are training carefully
and it makes the performance’s company
Uniform and professional, reliable and
become more professional in the
belong to Company BABY BOSS.
customer’s mind.
Members can take part in
Members can leave the online-feedback
improving the performance and
Feedback for the trainer, staff and service of
effectiveness of company BABY
company.
BOSS.
Variety of Customers have freedom to choose Customers can choose to pay directly
payment’s the most convenient way to pay through cash or indirectly through credit
form money: through cash or credit card. card. It is very convenient for members.
Figure 2. The FAB model on company BABY BOSS

With Vietnamese market, the competitors is appearing many day by day, therefore, company
BABY BOSS need to have some unique features and strategies to attract customers.

First of all, the differentiation in the method of gym and the variety of subject which
children can practice in this gymnasium is the first element that attracts customers. For more
detail, in this building, company BABY BOSS spends one room for swimming, they teach for
kids the skill of existing swimming. It is absolutely necessary for children and parents also pay a

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lot of attention in this problem, they always want their children have enough basic skill to deal
with dangerous situation.

Secondly, letting parents believe more on company, at all the space in this building has
equip cameras and all of them will be shown online to let parent can see their kids whenever they
want. Moreover, parents can register if they want to join class with their kids and no charged fee
when parents take part in this class.

Thirdly, company BABY BOSS designs the variety subjects in the timetable to make
children always feel highly enthusiastic when come to gymnasium. For more detail, it has
acrobatics, aerobics, athletics, zumba, yoga, belly dance, calisthenics, climbing, swimming, etc.,
besides, this fitness center also has some lesson which teaches children about balance and many
lessons with exercise ball. The lesson which this fitness center provides is very differentiation
and varieties.

Last but not least, the price for the gym in here is 600,000 VND per month for one kid, it is
accepted price when compare with the market price. For instance, My Gym charged 400,000
VND per month for each kid while Elite Fitness charged around 850,000 per kid per month,
some center even charged more than 1,000,000 VND per month for each kid. Taking everything
into consideration, company BABY BOSS creates some unique features and differentiations to
sustain competitive advantages and compete with other competitors in this market.

3.2. Explain how distribution is arranged to provide customer convenience:

3.2.1. Place:

“P” stands for Place and in the 4Ps of marketing mix(E. Jerome McCarthy, 1960)it is known
as distribution and it also is a pretty essential part of the product mix (marketingmix.co.uk,
2017). Through it, company can determine the potential place to deliver place in the most
convenient and attractive way to the customers and also the most suitable method of distribution
channel to apply the marketing strategies. The company need to analyze deeply the following 5
essential factors: service, place, time, price and quantity to understand more about desire of
customers then satisfy it to make customers appreciate that using services of company is
convenient and it is right choice.

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 Right
service

Right Right
quantity place

Right Right
price time

Figure 3. Five Right Elements

 Right service: In the modern world, people are very busy and they do not have enough time
to go out to do exercise with their kids. Furthermore, nowadays, children are spending too
much time on playing game, watching and serving internet with smart phone, TV and
computer. It reduces the briskness of kids and children will be lazy when they need to work
out. Therefore, company BABY BOSS runs this service to deal with this problem of young
generation. Company BABY BOSS is doing the right service when developing a convenient
app and website for parents registering, checking their kids and also following the news of
center; it saves a lot of time for customers.

 Right place: Hanoi is the capital city of Vietnam, the population in here is ranking the top
number in Vietnam, and hence, the demand in this city is also high. Moreover, Xa Dan is one
of the main road in Hanoi, it is an ideal place which definitely convenience for customers. It
is easily to see that company BABY BOSS has considered as a right place of this service’s
type when chose Hanoi is the city to start-up their business.

 Right time: This fitness center open from 5:00 AM to 9:00 PM, therefore, customers can be
flexible to arrange their timetable to register the suitable practicing class.

 Right price: It is one of the most advantages of company BABY BOSS to attract customers.
While other fitness center for kid charged from 300,000 VND to 1,000,000 VND, company

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 BABY BOSS set the price is 600,000 VND – an acceptable price for customers while the
basic salary of Vietnamese labor is 1,300,000 VND (moit.gov.vn, 2017).

 Right quantity: Each class of this fitness center open for 10 to 20 kids and they arrange 4 to 8
trainer to teach kids and 2 to 3 people who responsible for supervising. Each class study 2 to
3 days per week and customers has freedom to choose whatever class they want to study.

3.2.2. Analyzing characteristic:

Analyzing character of market, distribution channels of competitors, etc. are the main
characteristics which company needs to study deeply to have the most suitable distribution
channel for them. Distribution channel include direct and indirect distribution channel. The
product and service will be delivered directly from company to customers (Mantau, 2001). On
the other hand, indirect distribution channel consist of wholesaler, retailers and intermediaries,
etc. The products and services will go through business to lower distribution channel then
transfer to wholesaler, wholesaler will moved it for retailer and finally it is bought by customers
(Mantau, 2001).

Company
BABY BOSS

Retailer

Customers

Figure 3. Distribution channel of company BABY BOSS

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 Firstly, when mention about the distribution of competitors, company BABY BOSS has
many competitors in Vietnamese market. Company BABY BOSS provides fitness service, it
relates to health, children and organize; as a result, company BABY BOSS need to appear more
in social activity to let people know more about them. For instance, they can take part in or co-
financing for program about health, encouraging people work out more like marathon
competition or join in some meetings or special programs for parents and also in school, etc. It is
some of the most effective method to set the brand and performance of company in the
customers’ mind.

Secondly, besides competitors, market is the other elements which company needs to think
to arrange distribution channel. The population of Vietnam is reaching approximately 95 billion
people in 2017 (gopfp.gov.vn, 2017). Vietnam is a developing country, the living standard is
improving and increasing day by day, till now 80% of population use smart phone (Davis, 2017),
therefore, it is ideal method to approach customers. Furthermore, Hanoi is the capital of
Vietnam, the cities in this city is absolutely crowed and the speed of developing in here is not
denied that it is definitely fast, everything is updated and changing day by day. It means that the
living standard in Hanoi is ranking the top of higher level in Vietnam and the demand in this city
is very high. But they do not have a tendency to require strictly children from 7 months to 10
years old do exercise. As a consequence, the distribution channels of company BABY BOSS
should be small and long.

Lastly, service’s characteristicis the last element which company need to concern when
choosing the most suitable distribution channel. The company is doing intangible service; they
train and improve the health for customers. Especially, the customers of them is children from 7
months to 10 years old, with this age group, fitness center need to care a lot, and they need apply
some unique strategy, unique lesson when training them. More than that, they need to satisfy
customers as much as they can if they do not want to lose customers; therefore, the distribution
channels cannot be long.

In the case of company BABY BOSS, they apply direct distribution channel from business
to customer. The company bought app and website, they need to buy it from the program
company then their customer can use it freely. Everything will be connected directly through
headquarter of company in Xa Dan. Calling for the center, customers will have more information
and details about the service of company and they also can complain directly through this
channel. And customers can connect online with company through software; hence, customers
can save their time and money instead of going directly to the venue. All activities of booking,
buying, changing class, etc. will be dealt by one department of company BABY BOSS. On the
other hand, if company BABY BOSS apply indirect distribution channel, they must to pay a
huge of fee for intermediaries, it wastes a lot of money. All in all, applying direct distribution
channel is the most suitable channel for company BABY BOSS, they not only connect closely
with their customers but also can save money.

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MKT_A2_May 2017 Page 11
3.3 Explain how prices are set to reflect an organisation’s objectives and market conditions

The objective of Baby BOSS is directing children to a civilized fitness environment, soon
aware of the importance of training the body, maintaining a healthy body shape when grow up.

Making price decisions assesses both internal factors and external factors.

 Internal Factor

Cost: The price of products depends strongly on the costs. There are two types of costs, which
are variable costs and fixed costs. The production output change leads to the change in variable
costs while fixed costs stay the same (investopedia.com, n.d.). Variable costs of Baby BOSS
such as: variable overhead, labor costs… while fixed cost related to training facilities, renting,…

Competitive advantage: Baby BOSS center is the only gym center focus on swimming ability
of children. By provide swimming class for children join in center, this is the strength of Baby
BOSS center in competing with opponents in children fitness industry.

 External Factor

Market structure

Fitness for children is a new concept to Vietnamese people. However, recently, it has gained
the confidence of kids’ parents because of its benefits. In Hanoi, now have 3 fitness centers for
children: The Little Gym (has 3 branches), Fun Kid Gym and My Gym (has 2 branches). This is
a niche market because it focuses on children from 7 months to 10 years as customers. Having a
few competitors in the market but each of them has great quantity of market share so that the
market structure here is oligopoly.

Competiors pricing

 The Little Gym: 380.000vnd/month/child for almost class of different age

(thelittlegym.com.vn, 2017)
 Fun Kid Gym: average 1.000.000vnd/month/child (facebook.com/funkidgym, 2017)
 My Gym: 200.000vnd/week/child (facebook.com/mygymvietnam, 2017)

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L.O 3.4: Illustrate how promotional activity is integrated to achieve marketing objectives:
Promotion is one of the most significant factors in 4Ps of marketing mix. According to case
study, Baby BOSS Center set their own objectives that build brand, direct children to a civilized
fitness environment, soon aware of the importance of training the body, maintaining a healthy
body shape when grow up and expand market share. Their placed on Xa Dan Street, Hanoi is its
first destination before their expanding into other cities in Vietnam. Moreover, Baby BOSS
Center needs to develop the quality of services in 2 year in Vietnam with the price for gym is
600.000 per month for one childBaby BOSS Center considers promotion factor can help them to
reach their market objective.

3.4.1: Pull and Push strategy:

To evaluate selling and buying products, in the marketing, they are considering used two
main of strategy: push strategy (or marketing pull) or push strategy (marketing push)
(marketingbox.vn).

Picture...:Pull and Push strategy (source: marketing-made-simple.com).

Base on marketingbox.vn, push factor described as the method of excite customers to buy
the item and to catch the attention of the customer into the product of the company. Push strategy
is the factor can help the company develop the production into mass media; make sure the
customer know about Baby BOSS Center. Moreover, pull strategy focus on “pull” the product or

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service of the company for the customer. Moreover, Baby BOSS Center is the company doing
healthcare business for the children from 7 month to 10 years old and Baby BOSS Center is a
new company in fitness children industry of Vietnam. So that “push” is fit for the Baby BOSS
Center’s promotion strategy because Baby BOSS Center is a new company so that not many
people in Vietnam know about this company and Baby BOSS Center’s brand and especially for
the customer who has the children. Hence, Baby BOSS Center needs focus on commercial to
expand its name and brand to everyone.

3.4.2: Promotion Mix:

Advertising is one of the important factors in marketing mix activities to attract the customer
mind. Base on The Economic Time (economictimes.indiatimes.com), Advertising is a means of
communication between consumer and the product or services. Moreover, advertising is the
messages paid for customer who has delivered or impact the people receives them.

In the modern life with the development in technological, media and knowledge, Baby
BOSS Center is very easily to do their own advertising with minimize the cost. In the same
ways, Baby BOSS Center can use the social media to do their advertising such as creating their
own page on face-book and invite the people to share and thumb up the post about Baby BOSS
Center. Moreover, Baby BOSS Center performs activity’s advertising, they can bring the brand
and service for the parents. If their parents do not have much time to take care the child from 7
month to 1 year old, they can bring their children come to fitness Center likesBaby BOSS Center
can take care for them minimize 1 hour to maximize 3 hour and take care them in health activity
such as swimming and skincare for them.

However, the old people not care about the gym but with the old people just focus on take
care their grandchildren and play with them. Hence, Baby BOSS centre can focus on older
because they are old people so they health cannot really good to play with their grandchildren all
days so that the reason Baby BOSS Center can help them by take care the children in 2 hour and
the older can take a rest in short-time. In addition, Baby BOSS Centre must to focus on
traditional advertising about them in traditional channel for example television at 7 pm before
news. Moreover, Baby BOSS center can sends the flyer show the information about Baby BOSS
Center because the older are group of people who reading the newspaper and watching the news

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so that it’s a big opportunities for Baby BOSS Center to introduce the healthcare industry for
children to them.

Another marketing mix activity is PR (Public Relation). PR is a single and large concept. It
is the activity can help the consumer image the picture of the company clearly included the
consumer to understand the company and its product or services. Public Relations are any
purposeful commutated between the organization and its publics that aim to create goodwill for
this organization (managementhelp.org).

For Baby BOSS Center’s promotion strategy, PR is the good idea to approach the target of
customers. Baby BOSS Center needs to focus on the children parents and the older customers.
More clearly, Baby BOSS Center can focus on the parent because they always focus on what is
the best for their children, and how to keep their children healthy in physically and mentally.
Therefore, Baby BOSS Center can attack in customer mind they are the best choice for them in
take care the health for the children. The best plan do help Baby BOSS Center will be create the
video to show the reality activities between staffs who work in Baby BOSS Center with their
customer - children and their parents. In order to, Baby BOSS Center can set to work connected
between the manager, designer, marketing department how to create the slogan about the
company. For example, Fit Kids Gymnastics Centre in South Bay are successful in show their
slogan and bring their value in to customer mind with slogan is “Learning Gymnastics is FUN”
(fitkidsgym.com). In the same ways, Baby BOSS Center must to show for their customer slogan:
“Baby is BEST”.

Moreover, Baby BOSS Center can discount for a new customer who use the services in the
Company. For example, Baby BOSS Center can discount 20% for the customer who pay all the
money for 3 months or can send a gift for the customer by giving free fee for swimming or spa
for kids from 7 month to 1 year old in 4 days per month. Hence, Baby BOSS Center will make a
huge positive review and feedback to their market.

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3.4.3: AIDA model:

Picture ...: AIDA model (24point0.com).

Elias St. Elmo Lewis has developed AIDA model in 1898, AIDA model is a popular model
used in the marketing and advertising industry. The letter stands for Awareness, Interest, Desire,
and Action that the main 4 step can help the company figuring out the products or services in
order to the customer will help the company can help them find out final decision
(bsscommerce.com).

Awareness: If Baby BOSS Center to raise their attention to the customers, advertising is the
best method to bring the customer, come to Baby BOSS Center. There are many ways to use
advertise Baby BOSS’s brand. For example, Baby BOSS Center can putting the poster into
the cars or motor bikesin the streets; or Baby BOSS can invite the model and take a video or

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 picture and post like sponsor in Facebook or Instagram apps. Benefit and helpful service is
the most significant factor that Baby BOSS can bring for their consumers.
Interest: “How the firm can makes the consumers focus on their services and interest in it?”
– is the big question that Baby BOSS Center must to answer. Kick to the customer mind
always is a big challenge with many companies. Customers have to good review and
feedback in their mind when Baby BOSS Center can bring the suitable performed for them.
For instant, Baby BOSS Center is very fluently in their software, process of caring the child
and the main point can help the customers feel interest is the security and rescue techniques
such as a security chip with high software. Its can help employees recognize the danger of
children in the event of an emergency so they can be rescue emergency and timely.
Desire: In this step, Baby BOSS Center needs to focus on the customer’s feedback and their
thinking to know about what is the customer really need and expected in the services of the
company. Hence, Baby BOSS must to make a short survey about the customer’s opinions,
after that Baby BOSS Center can fix the plan how to improve their services for the
consumers by discounting or make a new combo in some special events or days.
Action:In the case of Baby BOSS Center, this company needs to attack the people mind to
become their customer by discount or opening a small event when they join to Vietnamese
market so that Baby BOSS mission is to satisfy the customer in both faces: the quality and
the prices of services. With 600.000 VND per month, Baby BOSS can give a discount for the
new customers so that they can keep the positive in the customer’s point of view so that is the
main infrastructure for Baby BOSS Center can keep long-term relationship their own loyal
customer in the future.

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L.O. 3.5: Identify the extended marketing mix:
For Services Company like Baby BOSS Center, the company needs to apply 4Psin
marketing mix for the company. Moreover, Baby BOSS Center needs to focus on three important
factors that Physical Evidence, People and Process.

3.5.1: People factors:

People are the most important factors in marketing mix. In this factor, Baby BOSS must
focus on people’s skills and behavior as same as they focus on human resources because they are
affected in profit of the company (blog.oxfordcollegeofmarketing.com). All the staffs are training
in high qualified in USA. Moreover, female coaches are the main staff in Baby BOSS Center
who has married and have a child. In the similar ways, the female staff who has a child have lot
more experiences in take care of children and they knows what is a best ways for children; the
coaches who will considered the members as their child.

However, Baby BOSS Center must to keep the balance about the sexual of the staff, so that
Baby BOSS Centerneeds recruitmentman staff who has experiences in security industry can
protect around the swimming poolor keeping security of building. Moreover, Baby BOSS Center
can bring many benefits for their staffs because Baby BOSS Center must to follow the law of
labors in Vietnamese market. For example with female staff can retire if they enough 50 and man
is 60 years old, employees will have 3 day off after their wedding or do not work in special day
(Tet Holiday, Hung King,...). In addition, Baby BOSS Center can bring the gift when they
complete their job in high quality, appreciated.

3.5.2: Process factor:

Main reason can help Baby BOSS Center can attack of the customer mind will be the staff
behavior and attitude. The first sign when the customer looking at Baby BOSS Center is
protectors of the center so that protector’s behavior and attitude is very polite and smile is
exuberance such as they can say greeting with the customer like “Welcome”. It will get a point in
the customer mind with positive feedback. Moreover, the manager can instruct and show for the
customer about Baby BOSS Center’s information, about services and the cost of services. After
that, Baby BOSS’s coaches will take care the children by help them go to class and wearing
uniform for them.

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3.5.3: Physical Evidences factor:

In services industry, physical evident is the final factors in marketing mix as proposed by
Booms and Bitner (1981) (blog.oxfordcollegofmarketing.com). Moreover, product and people
cannot separable because services industry is an intangible when the customer buys the services
but they cannot touch or own it. The important of course that the physical environment must
consistent system of marketing mix such as the staff’s outfit or facilities of system, etc.

1. The staff’s uniform: The uniform of the coaches are very difference with the staff who work
in the marketing, HR, accounting, or security departments.
 The Coaches: they must have a suitable uniform because they needs to do many activities.
Hence, Baby BOSS Center used the product have 2D or 4D elastic fabric, ultra-fast in sweat
of ADIDAS. ADIDAS is the popular brand in the world about sport- activates clothes and
shoes.

Picture: Coaches uniform (s-media-cache-ak0.pinimg.com).

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 Picture: Men Coaches’s Shoes (adidaslosangeles.com.us).

Picture: Female coaches’s shoes (adidaslosangeles.com.us).

 The offices staffs: they need to have suitable uniform with them when they go to offices. In
the similar ways, Baby BOSS Center is a gym company so that the staffs do not needs to
wearing offices uniform but Baby BOSS Center consider to use BOO clothes – a popular

MKT_A2_May 2017 Page 20

 clothes in Vietnam with other name is “BÒ SỮA”. Base on vietrf.com in 2013, in July 2009,
BOO become a local street wear, fashion icon, designed and made by BOO and they proud to
be “made in Vietnam”. Moreover, BOO can help the staffs whose works in Baby BOSS
Center feels younger. BOO used special pictures in Vietnam such as street ice-tea, noodle, or
zodiac, etc. In order to, fabric and ink are selected and used very carefully to pursuit the
highest quality and safe for environment but suitable price for very one. In the similar ways,
Baby BOSS Center consider to use Zodiac collection of BOO because its will be the benefit
for their staffs help other member can remember their birthday month.

Picture...: BOO collection of zodiac (bosua.vn).

2. The Building: Following to USA structure and suitable area for children, Baby BOSS Center
provides excellent health-care services for the children.

First floor: Baby BOSS Center’s offices room with marketing, HR, accounting, or security
room and clothes room for the staffs. In order to, it is easy to help the customers ask the
information about Baby BOSS Center and the staffs can follow and attack the customer mind
easily.

MKT_A2_May 2017 Page 21

 Picture: Offices floor of Baby BOSS Center (static1.squarespace.com).

Moreover, in the first floor Baby BOSS Center can use small area to open the small
canteen for the children when they are feeling hungry or thirsty. The coach can use the smart
phone or walkie-talkie to order the foods or drink for their children.

Picture... : Canteen for children (alamystockphoto.com).

Second Floor: Gym for the baby (7 months To 1 year old): This floor can divide 4 parts: 3
part of floor can use for the fitness rooms and other small room is for medical room. In 3 part
of floor, we have 3 classes call: SMALL BOSS. However, Baby BOSS Center following the
new movie about the baby with the same name Baby BOSS (2017) so that they can learn

MKT_A2_May 2017 Page 22

 with their parent who to walk, to talk and play a toys. In this floor, there are many colors and
music can develop their optic or their hearing.

Picture: SMALL BOSS class symbol (stickpng.com).

Third floor: Gym for children from 2 years old to 5 years old: The kids from 2 years old to 5
years olds is the time they can understand the word, collected information from outside. In
these rooms, we have 3 medium rooms and one biggest room for the event such as physical
education for both classrooms. Children can learn with their parent in special day. Moreover,
we can use the lesion to develop their physical such as: running, doing exercises, opening
small competition about learning the differences toys or animal. These activities can help
children develop enhance of receptive. The classrooms in this floor can called BOSS.

MKT_A2_May 2017 Page 23

 Picture...: BOSS Class symbol (encrypted-tbn3.gstatic.com).

Fourth floor: Gym for children from 6 to 10 years old. In this floor, the children can creating
their idea and draw anything they like so that Baby BOSS Center can build the classrooms by
follow this structure. In order to, children can doing exercise with their partner or teams to
develop team building in the completion or lesion. Moreover, exercise of kids requires
balance between members in the team or control team behavior. In this process, children can
learn gymnastic skills, run through high wall,... so that children can help them to perfect
physic for their body. In fourth floor, there are 2 big classrooms and name for this floor is
BIG BOSS.

Picture...: BIG BOSS class symbol (encrypted-tbn2.gstatic.com).

MKT_A2_May 2017 Page 24

 In order to, Baby BOSS Center can use the terrace in the 4th floor to building the swimming
pool. The children must to learn how to swim so that this activity can help them out of drowning.
Hence, children need to study when they are very young such as for SMALL BOSS.

Picture...: Terrace pool (3.imimg.com).

Task 4.1: Plan marketing mixes for two different segments in consumer markets

Children from 3 months to 4

Children from 5 to 10 years old
years old
 This is basic group and requirement  This is Advanced group. (Big BOSS)
the participant of parents. (Small  To join these groups, children must be
BOSS and BOSS) tested their ability and skill level by
 Provide for children an early professional couch teams in a period of
healthy practicing environment. time.
Product Follow the growth of children in a Children who have talent, passion or
safety environment through interest can be invited to participate in
developing physically and socially special training programs.
activities. This service encourages  Direct children to a civilized fitness
their mind to explore and learn environment, soon aware of the
from activities and help them importance of training the body,

MKT_A2_May 2017 Page 25

 master basic fitness skills. This maintaining a healthy body shape when
service help children not only relax grow up.
but also be more confident and  These programs are designed for special
dynamic proactive in daily life and children in order to provide them the
study. foundation for advanced art gymnastics
 Direct children to a civilized fitness
environment, soon aware of the
importance of training the body,
maintaining a healthy body shape
when grow up.
Average price of the gym is
600.000VND each child per month. 600.000VND/child/month
Price This price is similar to price in Children who join special programs have
medium quality gym centre in Ha to pay additional fee
Noi.
Because it is a start-up and the running cost is already very high, the
company does not want to spend too much money on its Marketing. Thus, the
Promotion company should promote their service on the Internet and social network such as
Instargram, facebook, twitter,… moreover, company should concentrate to
decorate the outside of building in order to attract people going through.
The gym is located on Xa Dan Street, Hanoi. It is a 4 floor – building and
designed in USA structure and suitable area for children. Each floor is designed
suitable for each different age group. This is an appropriate place for company
Place because Xa Dan street is a crowd place. In addition, a salient outside of building
will certainly attract people on street. Company should focus on develop this
place until their brand become popular or have a position in consumers’ mind.
After that, company can open more branches in other locations.
 Hiring employees who have  Hiring employees who have outgoing
outgoing personality, positive personality, positive attitude towards
attitude towards customers’ care, customers’ care, especially love kids and
especially love kids and have have ability, knowledge of taking care
ability, knowledge of taking care babies and children
babies and children  All trainers and supervisors of BABY
 All trainers and supervisors of BOSS center were trained based on the
BABY BOSS center were trained program of USA about healthcare gym
based on the program of USA for kid.
People
about healthcare and gym for kid.  Couches in Big BOSS classes get an
 Most of couches are young women intensive training based on special
and have experience of taking care program of USA
of babies and children  There are always security guards,
 There are always security guards, medical staffs in each floor to ensure
medical staffs in each floor to children’s safety.
ensure children’s safety  Company also has gifts and events for
 Company also has gifts and events employees in holidays
for employees in holidays
Process  The person who welcomes children  The person who welcomes children to

MKT_A2_May 2017 Page 26

 to class is one of their couches.
He/she waits in the first floor then
takes the children to their trainers.
The trainers will help the children
go up stair and wash hand and feet
before go into their classroom then
help them change clothes.
 Each week, children will learn
different topics. Each lesson has 4
parts and lasts 45 minutes or 1
hour. The first part, the children
will get to know friends and
teacher through the song and
introduce yourself (for early
lessons, sing the songs for after).
The second part is warm – up, the
children will follow the supervisor
to do some easy warm – up actions.
The trainers also help them to do
correctly. The fourth part is doing
exercise and working in group.
This will help them practice their
skill, and also learn how to interact
with each other, wait their turn.
Finally, children will have a period
of free time to play what they want
until their parents pick them up.
 Swimming class is open for all
children join in Baby BOSS center.
They will have one class per week.
 During whole process, supervisors 
and trainers must always look after
children very carefully.
 Facilities and training facilities
have appropriate, high quality and
safe certification for children.
 Programs of practicing follow the 
International standards, safety and
Physical suitable for children.
evidence  Specialized clothing for couches
and kids to practice. Couches have
own one to recognize easily.
 Employees have own uniform. It
has to be young and cute in order to
attract and make kids feel friendly.
MKT_A2_May 2017
class is one of their couches. He/she
waits in the first floor then takes the
children to their trainers. The trainers
will help the children go up stair and
wash hand and feet before go into their
classroom then help them change
clothes.
 Each week, children will learn different
topics. Each lesson has 4 parts and lasts
1 hour to 1 hour and a half. The first
part, the children will get to know
friends and teacher through the song and
introduce yourself (for 1 – 2 lessons,
sing the songs for after). The second part
is warm – up, the children will follow
the supervisor to do some easy warm –
up actions. The fourth part is doing
common exercise and basic actions in
which subject they choose then
practicing in group. The trainers also
help them to practice. This part will
provide them the foundation for
advanced art gymnastics and also learn
how to interact with each other in group.
Finally, children will have a period of
free time to play what they want until
their parents pick them up.
 The structure is quite similar but the
program of practicing is harder and more
sporty.
During whole process, supervisors and
trainers must always look after children
very carefully.
 Facilities and training facilities have
appropriate, high quality and safe
certification for children.
Programs of practicing follow the
International standards, safety and
suitable for children.
 Specialized clothing in each different
subject for couches and kids to practice.
 Certificate of Sports Award of the
children who studied in the Baby BOSS
center.
Page 27
MKT_A2_May 2017 Page 28
4.2

On our project, Baby Boss is designed to serve the children that considered being the B2C
service. That definably different with B2B. You can see more clearly about it in the table below

4.2.1 Consumer process buying process

The consumer buying process

The consumer buying process has 5 steps that are need recognition, purchase decision,
search, evaluation of alternative, behavior, post-purchase and information.

The consumer buying steps Information

The first step of consumer buying process and

it seem is the most important steps to make
decision for them to buy product or not. Their
needs can be influence by internal factors or
1. Need recognition
the external factors.

("5 Steps To Understanding Your Customer’s

Buying Process | B2B Marketing", 2015)

After first step, the customer will move to next

step is finding information or information
search. The consumers will find the
information about the product that suitable
with their demand. Normally, visual and online
2. Information search
media is the tools that customer use to find
their information.

("5 Steps To Understanding Your Customer’s

Buying Process | B2B Marketing", 2015)

3. Evaluation of alternatives Alternative brands or product that can make

MKT_A2_May 2017 Page 29

 customer satisfy will be access to find the most
appropriate products. The factor will affective
in this stage is the attitude of customer. With
the high level satisfy of customer attitude will
lead to evaluation some product. Otherwise, if
it is low, that will make customer choose only
one product or brands.

("5 Steps To Understanding Your Customer’s

Buying Process | B2B Marketing", 2015)

In this stage, it shows that the final buying

decision can be disrupted by 2 factors: negative
feedback from customer and the level of
4. Purchase decision motivation to accept it.

("5 Steps To Understanding Your Customer’s

Buying Process | B2B Marketing", 2015)

In this stage, customer will compare of product

with the previous requirements to find their
product can fulfill their demand or not. If they
satisfy with it they will come back and keep
continue use product. If they do not satisfy
they will stop using products of company. The
5. Post purchase behavior
company should focus on this step if they want
to build the long term relationship with their
customer.

("5 Steps To Understanding Your Customer’s

Buying Process | B2B Marketing", 2015)

MKT_A2_May 2017 Page 30

4.2.2 Business buying process

The business buying process

The business buying process Information

The first steps this process, problem will

recognize by someone in the company that will
solve by purchase of new product or service. It
separate to two elements: internal elements and
external elements. In the internal elements, the

1. Problem recognition manager can be decision to produce new

product or replace the old machine. As a result,
with this elements manager will not provide
the effective goods with a reasonable price.
Otherwise, external elements could be form of
new advisement or attractive offer of sale.

In this stage, they will prepare with some main

2. General need description characteristics .The implication of durability,

the cost, the reliability and other factor.

In buying process is that the company prepares

3. Product specification specific list of technology by engineer team.
That information decided to reduce the cost to

MKT_A2_May 2017 Page 31

 reproduce that product or service.

In this step, looking for suitable supplier to

make a purchase with at a fair price. They will

4. Supplier search have a list of the competitive suppliers

prepared by the company. The supplier should
make they have good reputation.

For this step, they are asking about the

suppliers to submit the proposals. Sometime, in
simple case, suppliers will send the catalogs

5. Proposal solicitation simple. On the other hand, when that product

more expensive and more complicated than
normal, the supplier will require the formal
presentations.

This stage is to choose one supplier in the list

of competitive suppliers. It has some main
attributes that served as the basic needs with
6. Supplier selection
the competitive suppliers: Reasonable price,
quality of product, past performance and
reputation, honest communication, etc.

The order-routine specification is consisted of

7. Order-routine specification the list of the quantity, the selective supplier,
price and repair ,etc.

In this final stage, when the performance of

suppliers is experienced by the buying
organization. They will contact with the
8. Performance review
customer to receive their review. That review
is very useful for judge the efficiency for
product provides form business suppliers.

MKT_A2_May 2017 Page 32

4.2.3 The difference between B2C and B2B

In this part, we will analyze the difference between B2B and B2C from some factors such
as: number of sales, amount of money spent, purchasing process, relationship, product, price and
promotion.

Factors B2B B2C

Number of sales In the big quantity In the smaller quantity
Paid by the investment of Paid by the personal’s budget
Amount of money spent
company
It takes time to reach to the The customer’s buying
final decision to make process usually faster than
Purchasing process agreement between two B2B because customer
organization requires little influence from
other.
Need to build the relation for Do not need to build the
Relationship
the long-term corporation relation.
The other business will have Baby Boss need to do the
Product the requirement on the research for their product to
services increase customer
Baby Boss will have to create Baby Boss should create the
the normal price for customer trust between customer and
Price to keep the relationship the company to make
between them competitive with other
company
Baby Boss should pay more Baby Boss can use Instagram,
attention on this. We should Facebook, and other type of
Promotion use direct selling strategy. social media.

MKT_A2_May 2017 Page 33

4.3

4.3.1 Macro environment

In this part, we use PEST to analyses the macro environment.

PEST Factor Information

Vietnam is managed by one party (Communist Party
of Vietnam). They have 16 significant members of
Communist Party of Vietnam who has to vote for the
strategy direction for Vietnam. For example, follow
the website chinhphu.vn, the relationship between
Vietnam and Malaysia is established since 20th march
POLITICAL
1973. Moreover, Vietnam and Malaysia is the member
of WTO. That means a lot to these two countries
economic. This is huge advantage for Baby Boss
invests in Vietnam. They will have the benefit from
Vietnam is member of ASEAN; they will less tariffs
and treated fair.
Follow the website worldbank.com, the GDP of
Vietnam has been increasing form 57,633 billion USD
ECONOMIC
to 193,599 billion USD. That is stable sign of Vietnam
economy for company like Baby Boss to invest
Culture, religion, social-norm are the most affective
factor will affect to the company when they want to
SOCIO-CULTURE invest in Vietnam. If Baby Boss want to successful in
Vietnam market, they should think about the strategy
based on these factor
In over 17 years, Vietnam is one of the highest internet
growths with 49 million people using internet in 2016.
TECHNOLOGY
Baby Boss should create more chance and marketing
plans based on internet.

MKT_A2_May 2017 Page 34

4.3.2 Micro environment

Factor Information
Before entering a new market, company should
research to understand culture, religion, social-
Companies
norm of Vietnam market from that they can
have suitable strategy for company.
Customer is the most important factor with
company. If company make customer satisfy
with their service they will successful.
Customers
Company need to create more strategy to
provide for customer and have the trust from
them.

4.3.4. Marketing planning

In this part, we will using 4P applying for Baby Boss in Vietnam.

The 4P factors Information

The product must meet the need of customers.

PRODUCT
That is what the customer expected for.

The product should available for the target of

PLACE
customer to take it.

Product should be seen as the representing for

the cash. That does not mean the service must
PRICE
cheap as possible. Customer are feel happy to
pay a little money for services

MKT_A2_May 2017 Page 35

 There are many way to promote for the service
PROMOTE or products such as direct marketing, personal
selling, PR, etc.

4.2.2 Business buying process

The business buying process

The business buying process Information

The first steps this process, problem will

recognize by someone in the company that will
solve by purchase of new product or service. It
separate to two elements: internal elements and
external elements. In the internal elements, the

9. Problem recognition manager can be decision to produce new

product or replace the old machine. As a result,
with this elements manager will not provide
the effective goods with a reasonable price.
Otherwise, external elements could be form of
new advisement or attractive offer of sale.

In this stage, they will prepare with some main

10. General need description
characteristics .The implication of durability,

MKT_A2_May 2017 Page 36

 the cost, the reliability and other factor.

In buying process is that the company prepares

specific list of technology by engineer team.
11. Product specification That information decided to reduce the cost to
reproduce that product or service.

In this step, looking for suitable supplier to

make a purchase with at a fair price. They will

12. Supplier search have a list of the competitive suppliers

prepared by the company. The supplier should
make they have good reputation.

For this step, they are asking about the

suppliers to submit the proposals. Sometime, in
simple case, suppliers will send the catalogs

13. Proposal solicitation simple. On the other hand, when that product
more expensive and more complicated than
normal, the supplier will require the formal
presentations.

This stage is to choose one supplier in the list

of competitive suppliers. It has some main
attributes that served as the basic needs with
14. Supplier selection
the competitive suppliers: Reasonable price,
quality of product, past performance and
reputation, honest communication, etc.

The order-routine specification is consisted of

15. Order-routine specification the list of the quantity, the selective supplier,
price and repair ,etc.

In this final stage, when the performance of

suppliers is experienced by the buying
16. Performance review organization. They will contact with the
customer to receive their review. That review
is very useful for judge the efficiency for

MKT_A2_May 2017 Page 37

 product provides form business suppliers.

4.2.3 The difference between B2C and B2B

In this part, we will analyze the difference between B2B and B2C from some factors such
as: number of sales, amount of money spent, purchasing process, relationship, product, price and
promotion.

Factors B2B B2C

Number of sales In the big quantity In the smaller quantity
Paid by the investment of Paid by the personal’s budget
Amount of money spent
company
It takes time to reach to the The customer’s buying
final decision to make process usually faster than
Purchasing process agreement between two B2B because customer
organization requires little influence from
other.
Need to build the relation for Do not need to build the
Relationship
the long-term corporation relation.
The other business will have Baby Boss need to do the
Product the requirement on the research for their product to
services increase customer
Baby Boss will have to create Baby Boss should create the
the normal price for customer trust between customer and
Price to keep the relationship the company to make
between them competitive with other
company
Baby Boss should pay more Baby Boss can use Instagram,
Promotion attention on this. We should Facebook, and other type of
use direct selling strategy. social media.

4.3

MKT_A2_May 2017 Page 38

4.3.1 Macro environment

In this part, we use PEST to analyses the macro environment.

PEST Factor Information

Vietnam is managed by one party (Communist Party
of Vietnam). They have 16 significant members of
Communist Party of Vietnam who has to vote for the
strategy direction for Vietnam. For example, follow
the website chinhphu.vn, the relationship between
Vietnam and Malaysia is established since 20th march
(P)OLITICAL
1973. Moreover, Vietnam and Malaysia is the member
of WTO. That means a lot to these two countries
economic. This is huge advantage for Baby Boss
invests in Vietnam. They will have the benefit from
Vietnam is member of ASEAN; they will less tariffs
and treated fair.
Follow the website worldbank.com, the GDP of
Vietnam has been increasing form 57,633 billion USD
(E)CONOMIC
to 193,599 billion USD. That is stable sign of Vietnam
economy for company like Baby Boss to invest
Culture, religion, social-norm are the most affective
factor will affect to the company when they want to
(S)OCIO-CULTURE invest in Vietnam. If Baby Boss want to successful in
Vietnam market, they should think about the strategy
based on these factor
In over 17 years, Vietnam is one of the highest internet
growths with 49 million people using internet in 2016.
(T)ECHNOLOGY
Baby Boss should create more chance and marketing
plans based on internet.

MKT_A2_May 2017 Page 39

 CONCLUSION

Taking everything into consideration, company BABY BOSS need to come up with some
unique strategies and differentiations, such as methods, distribution channel, etc. to attract more
customers and also minimize the cost and maximize their profit. Based on 4Ps model, company
BABY BOSS can give out their introduction and promotion to bring the performance and brand
of company go closer to the customers’ mind, for instance: through their software (app, website)
or social media (facebook, TV, etc.). Furthermore, this report analyzes 7Ps to combine 4Ps with
3 other P factors: Physical evidence, People and Process. Last but not least, the difference
between B2B and B2C, international and domestic marketing are distinguished clearly in the
above report.

MKT_A2_May 2017 Page 40

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