NATIONAL ECONOMICS UNIVERSITY

FACULTY OF TOURISM AND HOSPITALITY

INTERNATIONAL HOSPITALITY MANAGEMENT PROGRAM

GROUP ASSIGNMENT 3 REPORT

TOPIC: MARKETING-MIX OF VIA COMPANY

BUSSINESS IDEA VR TOURISM INC.

Marketing for Tourism and Hospitality

IHME Intake 62 Hanoi

September 2021

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Group Participants:

Nguyễn Khánh Linh

Tống Phương Anh

Trần Đức Nhật Anh

Phan Thanh Sơn

Nguyễn Vân Anh

Đỗ Tùng Lâm

Phạm Quang Huy

Vũ Tuấn Trung

Hoàng Tuấn Anh

Lê Thị Hồng Diệp

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 I. PRODUCT:
1. Actual product:
• Providing videos or photos using virtual reality technology, 360 and other
advanced technologies for the purposes of promotion, commerce, ... for
organizations or businesses: hotels, restaurants, homestays, travel agency
• Our company divides our products into 3 categories:
• 360 Picture
• VR 360 Tour
• Video 360 Timelapse
• Features:
• Unlimited perspectives: Viewers can observe from every viewing
angle of the video or picture that a normal one cannot make it
• Integration: Users can easily integrate everything: text, links, captions,
photos, sounds, ... to provide all the necessary information about the
place. For example, integrate the booking function to increase the
demand for guests as they can book directly when experiencing the
products
• Creativity. Users feel free to be creative and the products can be
changed depending on the different purposes of the users.
• Interaction. Users can fully interact, move, observe all the different
perspectives to all surrounding locations like they are standing
observing, moving in the rooms, places
• Conveniences. Our products can be easily used on all devices and
platforms such as: Computers, Tablets, Phones, VR Glasses...
2.Core product: Through the actual product above, we carry out the core product
for both direct customers and indirect customers. The core product is a concept that
describes the utility that a consumer derives by using the product

• Direct customer:
• One step ahead of the competitors: Currently, in Vietnam, there are
few restaurants, hotels, or travel companies that apply VR products to
their services. Our products will hold potential customers on their
homepage longer by creating a 360 web that allows guests to interact
and explore the services they provide.

• Introduce your services to potential customers in advance: Our

product allows customers to explore the destination before booking.
Users can explore on their own, experience hotel rooms,hotel

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 facilities, wandering around the resort or have a view about hotel
restaurant menus
• Deliver an enhanced user experience: Our products integrate with
travel apps or interactive video maps to identify customers' directions,
routes, and places of interest.
• Play as a marketing tool that helps increase sales: Applying VR
technology with 360 images is reproduced realistically, with sharp and
vivid image quality to raise attraction, arouse customers' desire to
explore. These methods will be more effective than just providing 2D
images or ordinary videos.
• A perfect tool for content marketing: our product integrates AI
features to introduce all content related to a tourist destination, or a
hotel and restaurant.
• Indirect customer:
• Helps tourists to make a wise decision about where to stay before
booking: Before making the final decision, customers have the chance
to directly experience the real structure of the room. They no longer
must worry about the provided accommodation photos is completely
different from the real one.
• Eliminate the waiting time for customers: A plane delay or a long car
journey will no longer the issues for customers. Our products solve
these issues by providing services for guests anytime and anywhere
• Traveling while at home: For some customers, they both want to stay
at home but also want to travel. Our product will help them solve this
problem. Moreover, Thanks to the advanced technologies we use in
our products, customers can experience a hyper-realistic space no
matter where they are feeling like they are on a real trip
• Does not require many health conditions from customers: For
example, to experience difficult terrains such as mountain climbing or
boating, you need to have good health. And what if you are having
heart problems or blood pressure but still want to experience traveling
to famous landmarks? Our products can be an excellent alternative
travel plan

3.Augmented product: Augmented product can be both tangible or intangible like the
conveniences of the products, discount, and coupons or anything that makes the products more
appealing
• Service:
• There are dedicated service teams to teach customers how to use 360
videos, 360 photos.

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 •We commit to answer every question about the product and redo the
product if the customer is not satisfied.
• Discount and Freebies:
• Customers will receive a discount coupon within a period of 2 years
after the first time purchasing the product.
• After using our services, customers will receive freebies like fountain
pens or a souvenir ... (freebies will be delivered free to the customers’
address)
• Packages:
• VIA Standard
• VIA Deluxe
• VIA Premium

VIA Standard VIA Deluxe VIA Premium

Image Full HD Full HD - 2k Full HD - 8k
quality
The Choose 1 of 3 -360 photo All kinds of products
number of products (compulsory)
products -VR tour 360 and
VR 360 timelapse
(optional)
Tour Not available Available + available + tour guide
guide voiceover (Real person in the
video)
Editing The products are The videos and The videos and pictures
edited like the pictures are edited as customers’
available are edited as request (the products can be
framework (can customers’ requests re-edited 3 times free)
only be re-edited (The products can
free once) only be re- edited
free once)
Filming FPP TPP and FPP TPP and FPP
Content The content is New content, New content, customers
made according to customers can can contribute ideas
contribute ideas

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 the available
content
Sound Available sounds Real, authentic, and Real, authentic, and
(edm music, life-like sound life-like sound
classical music) (sounds of footsteps, Optional: add sound,
see waves, ...) voiceover as the guest’s
opinion (eg a message
from a hotelier or an
owner of a restaurant)

The applicability of VIA products will consist of two large parts: “The needs of
the market, does our product meet or solve their problem?” and “Test the products
on a small scale.”

What is the market demand? Does our product meet or solve a customer's
problem?

We provided data on customer demand, as we did in Group Assignment 2.

However, in this section, I will briefly repeat our consumers' needs to demonstrate
the practicality of our products.

In terms of indirect clients, most individuals (especially young people) are

interested in technology. According to the results from Group Assignment 2, up to
71.8 percent (of the total survey respondents) use technology daily. Likewise, up to
61.5 percent of people are interested in using technology in the tourism industry. In
addition, the survey found that most people prefer to travel using technology.

It is obvious to see how anything new, strange, or technological always captures

the public's attention.

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Since the indirect customer segment has clearly shown interest in technology in
tourism, this leads to our direct customers (hotel owners, tour company owners,
restaurant owners) will have a demand. use the VR 360 products provided by us.

Because covid-19's current status is highly problematic, everyone is dealing with

numerous challenges. Young people are not allowed to go out and explore and
experience new things. Business entrepreneurs, particularly those in the service
industry, encounter numerous difficulties. We can solve this problem for them with
new and unique VR360 product lines. When business owners utilize our products
to advertise their brand, or products and services, they will become more well-
known. Not only that, but because the usage of VR in tourism is still new and
unusual, it will excite consumers' interest indirectly, increasing the desire to
experience. At the same time, it provides everyone with a new experience
throughout the long days of merely sitting at home.

Test the products on a small scale

The previous section is only what can be extracted from the survey, which is still
leaning towards theory. We will test this product on a modest scale before bringing
it to market. Because our offices are in Hanoi, we will test it in West Lake, for
example, by allowing the hotel "MARO"_ a 3-star hotel in West Lake to try its
products and marketing solutions to check if our products actually work or provide
any special value to the consumer. For participating in our VIA company's product
testing, that hotel will be rewarded with offers and discounts from us.

II. PRICING
1. Factors to Consider When Setting Prices
A. Internal Factor
• Marketing objective

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 • Current Profit Maximization: The goal of our company is to maximize
the profit get in and lower the total cost. However, the satisfaction of
our customers is still our priority.
• Market-Share leadership: Since the market in which we enter is still a
newborn one, we want to gain as many customers as possible to
increase demand and create cash flow.
• Costs: In any business, we must consider the cost, here are some costs that
need to be overlooked in our business:
• Fixed costs:
• VR Headset Display
• Specialty VR Headset in Development
• Projection Hardware
• Rendering Computer and Graphics
• Hardware - Tracking
• Hardware - Sensors
• Real-Time Rendering Software
• Training
• Facility maintenance
• Variable costs:
• Personnel
• Installation
• Support
• Extended costs:
• Transportation Cost
• Random costs
B. External Factor
• Market and Demand: Although costs set the lower limits of prices, the
market and demand set the upper limit. We will consider the relationship
between price and demand, and the condition of the world affecting the
market. Like especially in this pandemic, the demand for VR for activities is
very high.
• Consumer Perceptions of Price and Value: In the end, it is the consumer who
decides whether a product’s price is right. Even in recessionary times,
consumers are not necessarily buying the cheapest options, but they are
demanding value for their dollars, and rightly so. If you are not value-
selling, then you are giving away precious assets. With that idea in mind, we
want to provide a high-quality product at an easily affordable price.
• Price Elasticity of Demand: oligopoly - perfect competitive: niche market →
inelasticity → apply the low price
• Factors Affecting Price Sensitivity:

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 • Unique Value effect
• Total expenditure effect
C. Competitors’ Prices and Offers
• The main factor to consider is which we will interpret more clearly in the
next part

2. Our pricing strategy

• General Pricing Approaches: Competition-based Pricing
• Definition of Competition-Based Pricing: As the name suggests,
competition-based pricing is a pricing strategy in which a company sets the
price for its products after observing the competition. However, this strategy
does not cover initial costs and only considers the selling price of the rivals’
products
• Since our market is a new one, our consumer perception of price and value is
still vague, so we decided to use the Competition-Based Pricing approach to
maintain a stable market and the development of it
• Opponents’ prices: 15,000,000đ – 50,000,000đ
• Pricing strategy: Market-Penetration Pricing
• What Is Penetration Pricing: Penetration pricing is a marketing strategy used
by businesses to attract customers to a new product or service by offering a
lower price during its initial offering. The lower price helps a new product or
service penetrate the market and attract customers away from competitors.
Market penetration pricing relies on the strategy of using low prices initially
to make a wide number of customers aware of a new product - It can be
easily called Underpricing the competition
• Our business will charge a low price, but you might wonder how much it
would become to be considered a low price
• Satisfied factors like Market-Share leadership, Consumer Perceptions of
Price and Value
• → increase the competitivity of business
• To be elaborate, we will move to the next part

3. Our price
• Standard: 10.000.000VND - 30.000.000VND
• Deluxe: 15.000.000VND - 50.000.000VND
• Premium: 25.000.000VND - 80.000.000VND

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III. PLACE-DISTRIBUTION:
1. Reasons
• The product is a new sort of product in the hospitality industry,
• It is intangible and extremely high quality. Therefore, it requires a certain set
of skills and knowledge to distribute the product safely and effectively, so it
is best to distribute the product by your own staff.
• Also, the company can save a lot of time and money for not just it but also
its customers by direct distributing

2. Qualifications:

• The company will need a professional distribution team that understands the
product and the market to make the right decisions and capable of
implementing effective strategies.
• It also needs the right transportation to deliver the product in order to keep it
at the best quality when it arrives with the customers.
• And most importantly, an effective marketing strategy is the key factor for
the company's distribution method to work, so it is crucial for our marketing
team to produce a strategy that will make sure our distribution channel is
effective.
3. Benefits:

• The company can have more interactions with the customers, understands
what they need and their demands so the company can complete the service
to satisfy them.
• Also, by direct distribution, the company can maximize its profit by cutting
down unnecessary ineffective procedures and will not have to pay
commission to other distributors.
• Most importantly, the company can guarantee the product's quality, reduce
the delivery time, and have a better pricing decision so that the company can
satisfy its customer demands and make sure that they can experience our
products to the fullest.
4. Methods:

• The customers can purchase the products through the company’s website, or
they can contact the company then the company will sell the products

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 directly to them or the company will even make the first contact to the
customers and persuade them to purchase the products.
• Post the brief official information on the websites of the tour companies or
hotel using our service

• These tour companies and hotel can print a banner about our service to put
in their territory.

IV. PROMOTION:
1. Advertising
a. Advertising objectives:
• Increase the number of VR package deluxe
• Improve our position in the tourism market
• Introducing new products
• Build and strengthen the reputation of the Product as well as the business.
• Expand distribution network
b. Slogan
• Our slogan is “Transform right, Future bright!”: Right change towards a
better future.
As we have always emphasized during the presentation, VR Tourism will not
completely replace traditional tourism in the future. However, VR Tourism is a
great alternative in many circumstances, when traditional tourism cannot be done,
VR Tourism will be an alternative solution for customers. We aim to change by the
above-mentioned purpose, from which we wish to bring Vietnam tourism a new
creative and special tourism, opening a promising future of VR Tourism in
Vietnam.

• How do we form this slogan?

We collect and draw answers to the following questions to form a slogan:
- Know who your customers are: Those who are passionate about
discovering new forms of tourism, interested in tourism
development in Vietnam, towards a positive outlook for
Vietnam's tourism.
- Why customers should choose me: A pioneer in Vietnam
providing a variety of virtual reality tourism products: including

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 using virtual reality glasses and without virtual reality glasses
(360-degree video, 360-degree photo)
- Clearly define the campaign goal that is using this advertising
message: Changing Vietnamese people's thinking about using
virtual reality in tourism, bringing VR closer to Vietnamese
users, making VR no longer a concept out of reach of
customers.
• How did we evaluate and choose this slogan?
The advertising message given by us ensures all 3 factors:
- Call To Action: The message has stimulated curiosity, making
customers want to learn more deeply: what is the right change?
Is that change enough to make the future better? Those may be
the questions that customers are interested in after reading the
slogan.
- Show the core value of the product/business: Users will only
intend to learn about a product/service when it can solve the
problem you give. Therefore, values are the core issue that must
be displayed and honored. With the problem of new tourism
solutions for tourists, finding a more creative way for Vietnam's
tourism industry, our slogan produced "Transform" - which is
VR Tourism for these two issues.
- The company's slogan: We have had our slogan that completely
stands out from our competitors in terms of brevity, presenting
both the solution and the long-term purpose that we are aiming
for.
c, Advertising methods:
• Online: The Internet is considered one of the greatest scientific
achievements of the 20th century. Today, over 200 million people in the
world are connected to the Internet. There are two ways to advertise on the
Internet:
− Design a separate website for advertisers. This way allows for a
lot of information and distinct functions to be performed.
− Create banners or posters and rent space on famous websites,
when accessing them, customers will go to the advertiser's
address. The second way is the way we aim.
→ Advantages:
+ Widespread information around the world
+ Advertisement information can be changed, updated easily and quickly
+ It is possible to measure customers browsing and reading online ads

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+ Are the best means to reach the world market and properly introduce the
product
+ Instant, wide, and low-cost advertising information...
→ Disadvantages:
+ Information only reaches a group of customers who have computers and use
the network, relatively qualified
+ Depends on the network system
+ Online advertising costs will tend to increase in the future.

• Broadcasting (specifically collaborating with music apps and websites like

Spotify, Soundcloud) can communicate with many people anywhere:
- Advantages:
+ Scope and selection of subjects
+ Low advertising costs
+ Low cost of radio advertising production.
- Disadvantages: Sometimes annoying for users.
2. Sales promotion
• Promotions award prizes for a certain period to encourage customers to use
the product.
• Program for customers to try VR Travel.
• Coupons: Coupons are not only issued through leaflets but also on digital
platforms. For example, tourists often use VR tourism in summer for
entertainment, so we should make coupons in autumn or spring to attract
customers.
• Premiums: provide free meals or free drinks for visitors when experiencing a
VR tour at the hotel.
• Patronage rewards have a frequent-stay program, and many restaurants have
frequent-dining programs.
• Point-of-purchase (POP) promotions displays and demonstrations that take
place at the point of purchase or sale such as using the space near the cash
register to create eye-catching displays of VR tour.
• Contests, Sweepstakes, and Games (like “Thánh du lịch” contest, Art
photography contest…) give consumers a chance to win something, such as
cash or a trip.
3. Public relations/ publicity
• Publications: rely extensively on communication materials to reach and
influence target markets. These include annual reports, brochures, cards,

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 articles, audiovisual materials, e-mail, social media, and company
newsletters and magazines.
• Can draw attention to new products or other company activities by arranging
unique events, such as the VR tourism exhibition events, customer
appreciation events, Vietnam tourism year event, …
• Use the Internet: Web sites, blogs, and social networks such as YouTube,
Facebook, and Twitter are providing interesting new ways to reach more
people.

4. Direct Marketing

Use our websites to inform existing and potential customers and ask for their
feedback. Customers can access the website to order easily and conveniently
without having to go to the company to book a VR tour. In addition, customers can
also be consulted directly about products and services of VR tour through customer
care and support services.

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V. Poster:

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