PROPOSAL

1. EXECUTIVE SUMMARY

● Proposal Objectives

The proposal helps shape the research into an appropriate direction with many

careful considerations. From collecting secondary data relating, there is a significant

management problem of Vietjet Air coming up. Then, Vietjet Air performance will be

examined in three factors: service quality, product quality, price and two externally

additional ones like: situational factors and personal factors to examine the correlation

between them and customer satisfaction. Finally, after analyzing primary and secondary

data, we will make some recommendations objectively basing on the research results

whether Vietjet should improve to develop the brand image.

● Outlines

Here are some main contents which will be shown in detail in this proposal. After

introducing company background, VietJet ‘s management problem will be defined. Then the

research will discuss the relationship between customer satisfaction and three factors above.

We will formulate the research design consisting of choosing research type, methodology,

techniques, sample and etc. Lastly, the proposal will describe the process of collecting and

analyzing data.

2. BACKGROUND

Currently, there are 72 international airlines and 4 Vietnamese airlines operating

more than 200 regular international routes and charter flights from 25 countries / territories to

8 destinations in Vietnam.

The aviation market in the first 6 months of 2019 continued to grow, but the speed

has slowed down compared to the same period in 2018. Specifically, the growth of the

aviation market in the first half of 2019 reached 9.4. % over the same period in 2018 and

production reached 38.5 million visitors. While the same period last year this figure reached

14%.
 The Aviation Administration's report shows that in the first half of 2019, Vietnamese

airlines made more than 153,000 flights, an increase of 2.4% compared to the same period

of 2018. Of which, the number of flights taking off on time was 130,000. flights, reaching

84.8%, down 1.3 percentage points compared to the same period in 2018. The number of

flights canceled was 274 flights, accounting for 0.2%, an increase of 0.1 percentage points

compared to the same period. period 2018.

Vietjet Aviation Joint Stock Company (Vietjet) is the first airline in Vietnam operating

a new generation aviation model, saving & flexible cost and providing a wide range of

services for customers to choose. Not only does air transport, Vietjet also provides

consumer goods and services needs through advanced e-commerce technology

applications. Vietjet is an official member of the International Air Transport Association

(IATA) with the IOSA Operational Safety Certification. Vietjet has just been rated aviation

safety at the highest level in the world with 7 stars by AirlineRatings.com, the world's leading

reputable organization specializing in safety and products assessment of global airlines.

Earlier, AirlineRating also honored Vietjet with the award of "Best Ultra Low-Cost Airline

2018 - 2019". The airline also recently reached the top 50 global airlines in terms of

operations and financial health in 2018, according to Airfinance Journal.

Currently, Vietjet operates 64 A320 and A321 aircraft, operates more than 385 flights

a day and has transported over 65 million passengers, with 105 routes covering destinations

in Vietnam and international routes. To Japan, Hong Kong, Singapore, South Korea, Taiwan,

China, Thailand, Myanmar, Malaysia, Cambodia ... The airline plans to develop a wide

network throughout the Asia-Pacific region. continued to expand routes in the region and

signed contracts to procure new and modern aircraft with prestigious aircraft manufacturers

in the world. The Board of Directors includes 6 members, among those Mrs Nguyen Thanh

Ha was appointed as the Chairwoman of the Company’s Board in 2007 and Mrs Nguyen Thi

Phuong Thao is the Company’s Chief Executive Officer (CEO).

3.PROBLEMS DEFINITION/OBJECTIVES OF THE RESEARCH

 ● Problems definition:

Beginning in 2007, Vietjet has become the first private enterprise in the aviation

industry and promptly gained population and started to attract a huge number of passenger

since then. However, over the first-half year of 2019, Vietjet suffered from many serious

scandals involved in technical issues, delay and business culture. As a result, many

customers have become disappointed and and begin to switch their choices to Vietjet’s

competitors, which leads to the decrease in revenue and population. Our group would like to

figure out to which level customers feel satisfied with Vietjet’s passenger transportation

service, and then suggest some solutions to the problem.

● Objectives of the research:

In a precise way, this research has these subsidiary objectives:

1. Determine the factors that have great impact on customer satisfaction of Vietjet’s

domestic passenger transportation service.

2. Measure the level of influence of those factors on customer satisfaction of Vietjet’s

domestic passenger transportation service.

3. Evaluate how much customers are satisfied with Vietjet’s service.

4. APPROACH TO THE PROBLEM

The two main questions have been written of this research:

RQ1: What are the factors that makes VietjetAir pay attention on quantity and quality?

RQ2: Between two sides, which one is more efficient?

There are four things that have a huge impact on brand loyalty which are: brand

image, product, service, and marketing. According to these factors, hypotheses have been

developed:

Hypotheses 1: If Vietjet Air focus on the quality of the process, services, etc., they would

gain more customers.

Hypotheses 2: If Vietjet Air focus on the quantity such as buying more airplanes, giving out

new departure time, etc. they would gain more customers.

With the hypotheses developed above, this project will highly concentrate on

maintaining the following objectives:

RO1: Collecting data on factors.

RO2: Show the relationship between factors and the problem.

RO3: Developing recommended strategies for VietjetAir’s top management.

5. RESEARCH DESIGN

To explore the insights and buying behaviors and satisfaction of consumers towards

Vietjet Air, there are many relating criteria selected and secondary data used to examine the

levels of satisfaction based on 5 main factors such as service quality, product quality, price,

situational factors and personal factors. This project carries out not only exploratory and

descriptive research as well.

● Qualitative Research:

Focus group is conducted with the participation of UEH-ISB freshman and

sophomore who are currently using Vietjet Air services in order to travel back to their

hometowns frequently. Moreover, because of their financial conditions dependence on

parents, they are potentially the price-sensitive customers that Vietjet Air needs to have a

deeper view about their thoughts, feelings and reactions. Each focus group interview

consists of 6 undergraduates being asked with open questions for about 30 to 45 minutes

long.

● Quantitative Research
 To know the relationship between the factors of customer satisfaction and Vietjet ‘s

decision to improve the service and increase the quantity of airplanes, we decide to use

administration method, which is a survey conducted by Google Form. Method of electronics

and Internet are chosen due to its convenience and flexibility. Questionnaire is designed

mainly based on Semantic Differential Scale with rating scale from 1 to 5 (strongly disagree

to strongly agree). The questionnaire and conclusion of this survey was taken from the focus

group. A system of questions was short enough and arranged clearly in order for

respondents to understand and answer easily. Some statements of brand recognition were

supplied with relevant customer satisfaction. About sample size, the greater the number of

respondents are, the more reliable the result is. Only respondents who used to buy Vietjet

Air are accepted to this interview because most of statements related to Vietjet past

experience evaluation.

6. FIELD WORK/DATA COLLECTION

● Preparation for data collection

The data collection period for the research includes general requirements for

fieldworkers. First, the research team will record all the descriptions needed for the

moderator with the full background characteristics. They will be the people who deeply

understand about the topic and objectives with good communication skills and positive

attitude to complete the interview. The next part is training, which involves following steps:

making initial contact by welcoming interviewee and informed them with nature of a focus

group. Audio and video recording will also be prepared to work at the same time. The

interviewer may ask some questions to help them feel more relaxed and identify our topic.

Each focus group will have about 30-40 minutes to complete the interview. Therefore, the

fieldworkers also have to be instructed to be the time-keeper. Finally, the research group

should prepare for some situations when interviewing such as some other questions so as to

help respondents to clarify and explain more about their answers.

● Description of data collection

 Our data collecting process includes two stages, specifically:

❖ Stage one: Recruiting through screening questionnaire and conducting the interview.

In this stage, our group will make a screening questionnaire to recruit the suitable

interviewee who will be our target participants above. Each member in our group is

responsible for inviting two people to participate in the focus group. After that, interviewers

will deliver questions clearly based on moderator outline included questions and its

objectives. Other members are responsible for recording audio, video and noting down the

answers. After finishing, the moderator will send to respondents some candy to thank them

for taking their time attending the interview.

❖ Stage two: Spread out the questionnaire online.

Our group will prepare an online questionnaire. It contains 25 questions, 4 questions

for demographic and takes 8-10 minutes to complete. The goal of this survey is to reach

about 50 - 80 respondents. Our group choose online channels to spread the survey such as:

facebook, messenger or community for students who had used Vietjet Air.

● Supervision of data collection

Although the quantitative survey is being checked and released, our group also has

to update the answers form surveyors and adjust the question correctly when the answers of

that question can not solve the main objectives because there are many differences between

domestic and abroad flights. Therefore, we decided to check the answers continuously to

have qualified answers which meet our purposes.

7. DATA ANALYSIS

The research will conduct simple cross-tabulations and multivariate analysis with the

support of SPSS software.

8. REPORTING

Data analyzed is presented in the written report and oral presentation. There are brief

summary about including process conducting information and details about the research
designs and methodology. Furthermore, it consists of conclusion and recommendation for

the problem.

9. COST AND TIME

● Cost

Qualitative research setting 1,000,000 VND

Form printing 500,000 VND

Gifts 300,000 VND

Total 1,800,000 VND

● Timing

Problem identification 2 days

Secondary data collection 2 days

Survey preparation 7 days

Research design formulation:

Qualitative research 5 days

Quantitative research 5 days

Conduct research:

Qualitative research 2 days

Quantitative research 4 days

Data collecting and analyzing 14 days

Report preparation and presentation 5 days

Total 46 days

➢ The marketing research will be conducted in 46 days, starting from the time of
accepting the proposal. The total fee will be 1,800,000 VND.

10. REFERENCES

Cafebiz.vn. (2018, May 04). Vietjet Air chính thức trở thành hãng bay có thị phần nội địa dẫn

đầu Việt Nam. Retrieved from: http://cafebiz.vn/vietjet-air-tuyen-bo-nam-43-thi-phan-vuot-

mat-vietnam-airlines-tro-thanh-hang-bay-hang-dau-tai-viet-nam-20180503172158476.chn
Capa. (2017, October 09). VietJet Air SWOT: Rapid success and growth in booming

Vietnam, but future challenges. Retrieved from:

https://centreforaviation.com/analysis/reports/vietjet-air-pre-ipo-swot-rapid-success-and-

growth-in-booming-vietnam-but-future-challenges-324179?fbclid=IwAR2Z1WI4tJGHc-

FltYaQZBZXvhy2hptdg-I5Df4uJytJTYKYkSGZkpaRnZM

Pefindo.com (2019, April 02). Airline Industry – Key Success Factors. Retrieved from:

http://www.pefindo.com/index.php/fileman/file?file=308

Vietnam - AviationVietnam - Aviation. (n.d.). Retrieved from: https://www.export.gov/article?

id=Vietnam-Aviation

Thu Hang (2019, January 24th). Vietjet: Các chỉ tiêu vượt kế hoạch, phát triển mạnh các

đường bay quốc tế. Retrieved from: https://ndh.vn/doanh-nghiep/vietjet-cac-chi-tieu-vuot-ke-

hoach-phat-trien-manh-cac-uong-bay-quoc-te-1249491.html

Tran Dung (2018, May 10th). Giá dầu tăng phi mã phủ bóng đen lên Vietjet, Vietnam

Airlines, Bamboo Airways. Retrieved from: https://theleader.vn/gia-dau-tang-phi-ma-phu-

bong-den-len-vietjet-air-vietnam-airlines-bamboo-airways-20180510002710491.htm

Vietjet.com (n.d). Welcome to a new age carrier Vietjet. Retrieved from:

https://www.vietjetair.com/Sites/Web/en-US/NewsDetail/our-company/%20336/welcome-to-

a-newage-carrier-vietjet

VietJet aviation joint stock company (December 31, 2018). KPMG. Retrieved from:

https://ir.vietjetair.com/File_Upload/financial-information/annual-reports-root/audited-

financialreports/2018/02.%20CONSOLIDATED%20FINANCIAL%20STATEMENT

%202018_ENG.pdf

Tiệp Nguyễn (November 9, 2018). Tham vọng vượt tầm Đông Nam Á của VietJet. Retrieved

from: https://viettimes.vn/tham-vong-vuot-tam-dong-nam-a-cua-vietjet-air-307885.html