12-093 - Nguyen Thi Kim Hoang - MKT 601 - Final Assignment

12_093_NGUYEN THI KIM HOANG_MKT 601 _Final Assignment
COURSE TITLE:
marketing in global
environment
Student:
NGUYEN THI KIM HOANG
UBIS INTAKE 04.12
Student ID: 093
COURSE CODE:
Lecturer: Anh Tho Andres
MKT 601
Anhtho.andres@gmail.com
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TABLE OF CONTENTS
Introduction.............................................................................................................2
BIDV OVERVIEW.................................................................................................3
APPLYING MARKETING MIX ON THE BIDV OPERATION ......................4
Theory............................................................................................................4
Marketing mix on BIDV operation......................................................................5
1. Product/Services....................................................................................................5
2. Price...................................................................................................................... 6
3. Place......................................................................................................................6
4. Promotion.............................................................................................................. 7
THE CO-BRANDED CREDIT CARD BIDV – MU…………………………..8
DEFINE EXPORT STRATEGY TO RUSSIA FEDERATION..........................11
Market research...................................................................................................11
Macro- environment............................................................................................12
Micro environment..............................................................................................16
Porter’s Five Forces Model..................................................................................16
SWOT..................................................................................................................19
Define the export strategy ...................................................................................22
Target market.......................................................................................................22
Marketing Mix (4P) for export strategy ..............................................................23
Conclusion..............................................................................................................26
Reference.................................................................................................................27
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INTRODUCTION
Integrating international economy is general trend in Viet Nam. Recent years, many
economic achievements we have been developing are big and important devotions in
accomplishing many business policies at present.
With the general development of social economy, the market of financial and banking
field has widened strongly since years. The customers’s needs are being satisfied better by
many new products and services. Beside the essential strengths such as saving account,
traditional loan, the development of retail market has been become the potential market
and estimate that can bring more profits in the future, especially in this difficult case.
Joint stock of Bank for Investment and Development in Vietnam (BIDV) aim to retail
nearby recently is the top importance of development strategy. However, because the
products of many banking competitors are likely, it cause the severe face up about the
expenditures, even some banks are trouble of selling services at a extremely loss. These
put BIDV in challenge that finding where to focus and how to change to become a realy
moderning retail bank.
Attaching importance to simulate the trading card market is the service branch that gives
customers many conveniences in payment as well as administrates their consumption. In
2012, BIDV has had many basic achievements in increasing guest market; develop new
products and business strategy of card branch. In the end of 2012, BIDV cross-overed
many competitors to own the monopoly authorization of issuing credit card Visa BIDV
MU (brand joint ownership with Manchester United football club).
As the marketing CEO of BIDV, I recognize that BIDV MU visa credit card is a distint
and special item for Manchester United’s fans. There are an extremely large numbers of
MU’s fans all over the world, and arcording to MU’s datas from May 2012, these are
about 659 milion fans, make up 1/10 world population, a record number.
To create more chances for expanding card market particularly and for retail banking
products of BIDV generally, I concentrate to develop card products to foreign market,
prior to Russia Federation.
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BIDV OVERVIEW:
Joint stock of Bank for Investment and Development in Vietnam (BIDV) was established
in 1957, the most long-standing bank. BIDV brand formed by choice, belief of economic
organizations, business and retail in approaching financial banking services, and
acknowledged as one of the big banks in Vietnam by community inside and outside. In
VNR500’s ranking board year 2012 of Vietnam Joint Stock Company of Report and
Assessment (Vietnam report), BIDV overcome many big corporations to stand 16th in
500 corps in ranking list and become top 3 big Bank in Vietnam.
BIDV concentrates in banking, insurance, security, financial investment field. At present,

BIDV has 117 branches and more 551 customer service office, 1300 ATM/POS at 63
provinces/cities in Vietnam. Nonbank nets include security investment company (BSC),
finance renting company, insurance investment company (BIC) with 20 branches in
Vietnam…
BIDV presents in Laos, Cambodia, Myanmar, Russia, Czech…, simultaneously cooperate

with foreign banks comprises cooperate VID-Public bank (Malaysia partner), cooperate
Laos-Viet bank (Laos partner), Viet-Russia bank-VRB, cooperate tower BIDV company
(Singapore partner), cooperate management and investment BIDV – Vietnam
Partners ( American partner)…
It founded on 26th April 1957 under the name Bank for Construction of Vietnam.
From 1981 to 1989: Under the name Bank for Investment and Construction of Vietnam
From 1990 to 27/04/2012: Under the name Bank for Investment and Development of
Vietnam (BIDV)
From 27/04/2012 to now: Under the name Joint Stock Commercial Bank for
Investment and Development of Vietnam
Abbreviated name: BIDV
Address: BIDV Tower, 35 Hang Voi Street, Hoan Kiem District, Hanoi
Website: http://bidv.com.vn
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Slogan: Share opportunities, Share successes
The Mission: Complete s professional, effective organization and become to the

modernized, international standard operation as well as coordination between business
units towards product development and customer orientation aligned with international
best practices.
The vision: BIDV striving to become one of top 20 banks of high quality, efficiency and
reputation in Southeast Asia in 2020.
MARKETING MIX OF BIDV:
I. Theory
Marketing mix is the set of marketing tools that the firm uses to pursue it marketing
objectives in the target market (Kotler, 2002). The marketing mix has an important role
when determining a product or brand's unique selling point (the unique quality that
differentiates a product from its competitors). The marketing mix is classified into
four broad groups known as the 4P of marketing: price, product, promotion, and
place. The firm makes numerous decisions based on these four Marketing Mix variables
in order to market and sell its products.
PRODUCT PRICE
The price is the amount a customer pays for
A product is seen as an item that satisfies what a the product. The price is very important as it
consumer needs or wants. It is a tangible good determines the company's profit and hence,
or an intangible service. survival. It includes of list price, discount,
allowance, payment method,…
PLACE PROMOTION
It refers to providing the product at a place which Represent all of the methods of
is convenient for consumers to access. Place is communication that a marketer may use to
synonymous with distribution. It relates channels, provide information to different parties about
coverage, location, Inventory, transport. the product. Promotion comprises elements
such as: advertising, public relations, personal
selling and sales force,
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To introduce clearly the services of BIDV, the author will use the theory of Marketing
Mix.
II. Marketing mix on BIDV operation.

1. Products/Services
Like other financial organization, BIDV has variety products for all customers. People
are in favor of BIDV’s products, so in 2011, BIDV is top 20 best-known brands of
Vietnam by the National Office of Intellectual Property of Vietnam, the Association of
Intellectual Property of Vietnam in coordination with relevant Ministries and Agencies.
Beside the traditional products such as saving products, loan products, remittance,
trade finance…, BIDV has a modern financial products like E-banking, mobile-banking,
International credit card, Insurance, asset management, derivatives… These products are
classified for each category customer like individual customers, corporate customers and
financial institutes.
Furthermore, BIDV design products fit to each customer categories like products
package for big corporate with many agency in many cities like cash collection service
plus demand deposit with automatic capital management service, so the customer can
manage their cash flow easily and receive the interest rate higher the normal demand
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deposit account. Or the individual customers can get free insurance when they borrow
money….
BIDV has been investing to Indochina area by putting capital into the bank in there,
but almost the BIDV’s products have not exported oversea yet. If BIDV want to export its
services to Indochina, BIDV has to research market fully.
For the several recent years, returns from other services have been increasing, but the
lending returns are major.
2. Price
Price is the one of the aspects of the marketing mix, which creates sales revenue. In
theory, price is really determined by the discovery of what customers perceive is the
value of the product on sale.
Price of the bank’s services are the interest rate (in both loan and deposit). Fee,
charges, foreign exchange rate… Price of the bank’s services is affected by vary factors
like regulations, competitors’ price, which market… Currently, the price of the banking
services among the banks is almost the same except some of small banks have dumping.
However, the banks’ pricing policy will vary according to time and circumstances,
example : the bank calculate total benefits that a customer bring to the bank is up on vary
services customer used, may be the bank decrease foreign exchange rate (the bank may
be loss in this transaction) but increase loan interest to compensate for all transactions
with the customer. So, the price policy of BIDV is flexible for each product and for each
customer (group).
3. Place
Place refers to the means by which your customer acquires your product. It may be the
actual place like a department located on some street, and internet. So, BIDV has taking
advantage of the widespread network to distribute their services to their customers and
customers of the other banks.
As at April 8th 2013, BIDV’s network including 117 branches, 551 transaction
offices. BIDV’s ATM, POS Network total number of ATMs are 1,300 ATM and
6,203POS terminals. BIDV’s ATM is linked to banknet-system with 12 other banks to
increase capacities to serve customers.
Along with domestic network expansion, in 2011, BIDV opened the representative
office in Laos, Lao-Viet Joint Venture Bank’s branch in Atapu, the Cambodia-Vietnam
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Securities Joint Venture Company (CVS); BIDC’s branches in Ha Noi and

Kampongcham and the Finance Company in Czech Republic. Notably, BIDV increased
the chartered capital of Lao-Viet Joint venture Bank and adjusted the percentage of
ownership thereof to 65%, aiming at becoming the first Vietnamese bank that owns a
foreign subsidiary bank.
BIDV network has developed in both quantity and quality. Besides developing the
units (including branches and transaction offices), BIDV has concentrating to develop
services on internet which are the 24/24, comfortable and modernized office.
BIDV has actively developed software programs to extract data from units managed
directly by transaction offices and savings counters to support the assessment of their
operational efficiency. Meanwhile, policies on rewards and disciplines have been adopted
to associate their operational performance with the pay allocation, which would act as a
strong motivation for enhancing their quality and operational effectiveness.
4. Promotion
Promotion is the direct way that a bank tries to reach its publics. This is performed
through the five elements of the promotion mix, i.e advertising, sale promotion, personal
selling, public relation, and direct marketing. The role of promotion has been redefined
into managing long-term relationships with carefully selected customers.
Advertising:
Use the important printed media such as financial time newspaper, youth newspaper…
and electronic media such as TV channels having a mass watchers, or Internet, BIDV’s
website. Banners display at branches and transaction offices and billboards display
outside. Leaflet distributed at branches and transaction offices.
Selling promotional:
BIDV has been launching many program for customer such as Reward Saving, free
annual fee for Visa card,… to attract customers. Besides it, BIDV built customer policies
to take care to the customers such as give gift, give a travel for customer(s)’s family.
Public relation
Maintain the friendly image to the public. BIDV implement corporate social
responsibility (CSR) programs for the sake of people with recognized contributions to
the State, soldiers in remote bordering stations as well as other CSR activities such as
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presenting gifts to poor households, providing scholarships to poor students, financing

heart surgeries for poor children…
Sale Force:
BIDV’s sale force is young, enthusiastic and creative staff. They are the tellers,
customer relationships staff.
THE CO-BRANDED CREDIT CARD BIDV – MU:
In recent years, trending comsumption in super market, shopping central mall has
increased speedily. Therefore, modern payment channels such as cards, online…also
develop strongly. Instead of bringing amount of money, it is inconvenient, dangerous,
customer just take a small and thin card which is simple to pay and also have many
preferences, surplus values from bank. Grasp this consumption trend, BIDV focus on
carry out products-services of modern payment card, especially international credit card.
And now, BIDV is the top bank in publishing cards market with many services and
products of cards. For instance, debit card with many types of this suitable with any
object (Etrans card for office agent, Moving card for student, Harmony card designed
according to Eastern philosophy by five basic elements metal-wood-water-fire-earth),
BIDV Master Platinum credit card and BIDV Master ready debit card, BIDV Visa credit
card (Visa Flexi, Visa Precious). Continuing successes of Vietnam card market, recently,
BIDV officially becomes the first bank which is authorized to publish BIDV Visa MU-
Manchester United international credit card.
BIDV ‘s card types:
Card Card Maximum Annual

Image Interest rate
types name credit limit fee
Visa -
Credit VND 60 VND
BIDV 16% p.a
card million 100.000
Flexi
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Visa -
Credit VND 300 VND
BIDV 15% p.a
Precious
Visa
Credit VND 300 VND
BIDV - 15% p.a
MU
Phụ thuộc số
Master -
Debit tiền trong tài VND
BIDV 15% p.a
card khoản của 100.000
Ready
khách hàng
Master -
Credit VND 1 VND
BIDV Preparing for Deployment 15% p/a
card billion 1.000.000
Platinum
The BIDV – MU credit card:
Manchester United is the most famous and traditional football club in England, this
big brand has long and glorious history, strong finance and a big numbers of fans,
standing in top rank on the world (follow the datas of international market searched by
Kantar company on half June and August 2011, Manchester United has 659 milion fans
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on the world). In Vietnam, Manchester United is also the football club which is liked best
with 26 milion fans (Kantar, 2011).
BIDV-Manchester United Visa has officially issued broadly since 25/4/2013. This
product confirms official cooperation and monopoly of Manchester United- a great
football club with the great numbers of BIDV fans – the top commercial bank in
Vietnam. BIDV expects to appear international debit card- Manchester United Visa in
August 2013.
Generally the uses of credit card Visa and Visa BIDV-MU particularly, customer will
have special “consumption and then pay bank” preference, free interest rate payment in
45 days. This payment type is responded by high-income customers and the MU’s fans.
On the occasion of MU Visa credit card appearence event from 25/4 to 26/4/2013,
customer registers BIDV MU visa form will have a shirt as a souvenir of BIDV MU Visa
card ( sum of 1000 ones) and attend a random number game programme to have
opportunities to win many great presents such as 1 trip for 2 people to watch a live
football match at England with the attendance of Manchester United, 10 trips to Hong
Kong to watch live football match in Manchester United’s friendly match tour 2013-2014
and MU team uniform shirt, souvenir flag with football player’s signature…….
BIDV-Manchester United Visa credit card is designed attractively with the picture of
many legendary football player of MU team over periods as : Eric Cantona, Roy Kean,
David Beckham, Ryan Giggs, Wayne Rooney. With enough features of credit card, one
more special convenience of MU visa is that customer can be given high withdrawable
money limit at 200 million VND. BIDV MU Visa credit card is accepted to pay goods at
millions of places on the world and online trading on many famous web.
Card owner can be completely safe because of its magnetic set-up with the chip
follows EMV qualification supports secrect password security and restrain producing fake
card.
It is not only a useful payment card, but also BIDV-Manchester United Visa is a
bridge between the Vietnam MU fans and their favorite team by many special preferences
and sole for instance :
5 BIDV MU Visa credit card owners have highest payment income from 1/5 to
31/12/2013 will get 1 trip to England to watch Manchester United match at Old Trafford
values more than 70 million VND
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Card owner can have opportunities to talk to and have signature Alex Ferguson and
MU football players lively as Wayne Rooney, Van Persie, Ryan Giggs,…and watch a
training match of team 1. Go to Old Traford, sit on a coach and visit MU’s museum.
These will be an unvaluable chances for any MU’s fans, specially in Vietnam.
Attend collecting gift score programme to be with Manchester United win the Premier
League championship
1 score for each 10.000 VND paid by credit card. The score will be multiplied with 5
when customer pays after one closest day in which MU win. The gift score will exchange
into money at the end of programme’s period.
Enjoy many special preferences from Manchester United when paying by credit card
BIDV MU Visa :
Deduct 10% when buying goods at Manchester United online megastore

www.manutd.com.
Deduct 10% MU’s fan club fee charge.
Deduct 10% when buying goods at Megastore and Red Cafe at Old Traford
stadium, Manchester City, United Kingdom.
Deduct 20 % when making reservation for visting musium and stadium Manchester
United tour, Manchester city, United Kingdom.
DEFINE EXPORT STRATEGY TO RUSSIA FEDERATION
I. Market Research
To enter the international market in financial sector is very difficult because this is
the special industry. It relates the barriers of regulation, the behavior of customers…
Therefore, BIDV has to do the market research fully and entry step by step the market by
joint venture with a Russia’s bank. In this part of the study, author is going to do the
market research based on the theories about PESTEL, micro-environment, Potter’s
five forces.
1. Macro Environment
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Legal
Model 2: PESTEL
The macro environmental analysis is the first step in creating the Environmental
Analysis. The macro environment examines the general business climate as it relates to
the organization, but has nothing to do with the organization itself.
The macro environment is primarily concerned with major issues and upcoming
changes in the environment. It includes 6 elements, that are Political, Economic,
Social/culture, Technology, Competitive and Legal.
1.1 Political and Legal elements
At the moment, Russia attach importance to improve the jurisdiction of the state
machine with new law system to ascertain the power between party organizations orderly
or social organizations. Along with promoting democracy, the government determines to
stop any scheme which abuses democracy to harass, insult or subvert the government by
through the law to decrease the punishments to illegal actions at meeting, demonstration
and slander guilty.
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To bribe offence trouble, Russia determines to prevent this. The new law system
doesn’t accept family members, wife and husband,people in blood-relationship to attend
national congress delegate, has been stopped faction and group divison problem.
Simultaneously, by acknowledging decree issue « prohibit government dignitary has
bank account and properties in foreign country », it is required that dignitary must
publicise their big income and expenses, so do their relatives with resultful verification
mechanism and also strict punishments in any illegal case.
1.2 Economic element
Although Russia is still difficult in economy because of the world economic crisis,
existing illegal bribe and lasting present tense situation with USA, Russia’s president-mr
Putin- define prior to focus on domestic and foreign policies to develop economy, evolve
inhabitant’s living standard and keep firmly nation’s advantage rules in international
trouble.
Economically, Russia still maintains constantly total growth domestic product

(GDP) to 3.5% a year (2012), inflation fell to 6.1% compared with 12.75% of the Decade
2000-2010, public debt reduced by 10 times to more than 10% of GDP, the
unemployment rate was 5.4% as the undeniable achievements, particularly the context of
the world economic situation is more difficult.
Russia's economy has recovered and is always stable from the 2010s to the present.
High level of living entail more advanced consumer trends in supermarkets, shopping
centers is rapidly growing larger. Associated with that is the modern method of payment
such as credit cards, online ... also flourished.
1.3 Social and culture
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Russian culture is one of the Western’s cultures admired and prouded of by the whole
human. Russian culture over the centuries until now still retains their special features.
Russian with over 16 Ethnic groups, each people has different cultures but still generally
characterize them. Russian cultural is influenced by the fundamentalist ideology Slav.
Russia is a country with a culture of abudent matter and a strong tradition in technology
From year 2000, Russia's population dropped nearly 1 million people each year, the
decreased condition of Russia's population was halted and began to increase from 2010 to
the present. In the last 4 decades, the life of the Russian people rose to 2.5 years.
Currently, Russia is counted number 9th as the most populous country in the world with
143 million people.
Retrieved May 22, 2013, from http://en.wikipedia.org/wiki/Russian_culture:
“During the Soviet period, Russia was also a competitive footballing nation. Despite
having fantastic players, the USSR never really managed to assert itself as one of the
major forces of international football, although its teams won various championships
(such as Euro 1960) and reached numerous finals (such as Euro 1988). Along with ice
hockey and basketball, football is one of the most popular sports in modern Russia. In
recent years, Russian football, which downgraded in 1990-s, has experienced a revival.
Russian clubs (such as CSKA Moscow, Zenit St Petersburg, Lokomotiv Moscow, and
Spartak Moscow) are becoming increasingly successful on the European stage (CSKA
and Zenit winning the UEFA Cup in 2005 and 2008 respectively). The Russian national
football team reached the semi-finals of Euro 2008, losing only to eventual champions
Spain.”
The fan in Russia is willing to spend money to buy goods related to their idols such as
jerseys, memorabilia, ... join to MU club fans, traveling and watching football.
1.4 Technology
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Science and technology in Russia developed rapidly since the Age of Enlightenment,
when Peter the Great founded the Russian Academy of Sciences and Saint Petersburg
State University and polymath Mikhail Lomonosov founded the Moscow State
University, establishing a strong native tradition in learning and innovation.
In the 19th and 20th centuries the country produced a large number of notable scientists,
making important contributions into physics, astronomy, mathematics, computing,
chemistry, biology, geology and geography. Russian inventors and engineers excelled in
such areas as electrical engineering, shipbuilding, aerospace, weaponry, communications,
IT, nuclear technology and space technology.
Recently, the crisis of 1990-s led to the drastic reduction of the state support for science
and technology. Many Russian scientists and university graduates went to Europe or
United States in the so-called brain drain migration. In 2000-s, on the wave of a new
economic boom, the situation has improved, and the government launched a campaign
aimed into modernisation and innovation. Current priorities for the country's
technological development include energy efficiency, IT (including both common
products and the products combined with space technology), nuclear energy and
pharmaceuticals.
1.5 Ecology and physical environmental
Russia's topography includes the world's deepest lake and Europe's highest mountain and
longest river. The topography and climate, however, resemble those of the northernmost
portion of the North American continent. The northern forests and the plains bordering
them to the south find their closest counterparts in the Yukon Territory and in the wide
swath of land extending across most of Canada. The terrain, climate, and settlement
patterns of Siberia are similar to those of Alaska and Canada.
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2. Micro Environment
It includes the customers, competitors, suppliers and partners elements.
Customers: it is the important elements in any companies operation including

banking sector.
BIDV has a large of customers in Viet Nam and some of those are operating in
Russia. Beside it, BIDV has had joint venture with a Russia’s bank under the name is
Viet Nga Bank for 7 years, so BIDV has relationship with many customers at Russia
market.
Competitors: BIDV was the first bank of Vietnam invested to Russia 7 years ago,
and now there is not any another bank invests to Russia. Therefore, BIDV has more
opportunities in Russia market.
In the Russian market there is no co-branded credit card a bank - MU, so BIDV is
no competitor now, but maybe in future will have a bank which provide this service.
Suppliers: The suppliers for the bank include the IT suppliers, the labor
suppliers… In Russia, both of them are strong. So BIDV should hire several new local
staff members, the cost may be cheaper.
Partners: Besides selling banking products and services as the credit card Visa
BIDV - MU, the bank has to sell related product like insurance, leasing, ect... BIDV has
those companies to serve their clients demand.
3. Porter’s Five Forces Model
It is a framework for industry analysis and business strategy development formed

by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial
organization (IO) economics to derive five forces that determine the competitive intensity
and therefore attractiveness of a market
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Bargaining power of
customers
Bargaining power of Competitive rivalry Threat of substitute

suppliers within an industry products
Threat of new entrants
Model 3: Poster’s five forces
For most industries, the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry. Those are four elements that affect it as follow:
Bargaining power of supplier: The bargaining power of suppliers is also described as

the market of inputs. Suppliers of raw materials, components, labor, and services (such as
expertise) to the firm can be a source of power over the firm, when there are few
substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high
prices for unique resources.
In Russia have a good human resources, however, the cost of hiring local employees high
so it will difficult to select the good staff with reasonable cost
Bargaining power of customers: The bargaining power of customers is also described as

the market of outputs: the ability of customers to put the firm under pressure, which also
affects the customer's sensitivity to price changes.
Customers always want to get more profit because they have many choices to use services
in many banks. In order to satisfy their demand, BIDV must to improve and invent
products to satisfy the customers.
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The credit card is not a new service, so BIDV have to supply the co-branded credit card
BIDV – MU to make a difference in Russia.
Threat of substitute products: The existence of products outside of the realm of the
common product boundaries increases the propensity of customers to switch to
alternatives. Note that this should not be confused with competitors' similar products but
entirely different ones instead.
The co-branded credit card a bank - MU can be offered by banks in Russia, so BIDV have
to charge a good fee and update its feature regularly.
Threat of new entrants: Profitable markets that yield high returns will attract new firms.
This results in many new entrants, which eventually will decrease profitability for all
firms in the industry. Unless the entry of new firms can be blocked by incumbents, the
abnormal profit rate will tend towards zero.
When a bank in Russia cooperated with Manchester United to supply a co-branded credit
card, BIDV will be shared the market-share.
4. Target market and market division :
As announced by the MU, the number of their fans around the world amounted to 659
million, which is nearly equal to one tenth of the worldwide population now; this is the
desirable number of fans for all teams. This number is supplied by the famous company
in England known as Kantar Media that is professional in providing statistics did a survey
in the whole world in the period between June and August 2011, when MU has won the
national championship 19th in history and reached the Cup final C1 with Barca.
According to Kantar, the numbers of fans of the Red Devils have increased annually by
10% since 2007.
The inventory of the number of "followers" of MU in some countries on the world,

conducted by Kantar
Number of
Population %
National "followers" of MU
(million) Population
(million)
China 1.353 108 8%
Indonesia 244 55 22.5 %
India 1.258 35 2.8 %
Nigeria 170 33 19.4 %
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Vietnam 89 26 29.2 %
Mexico 112 25 22.3 %
Thailand 69 20 29 %
Russia 143 18 12.6 %
Korea 49 15 30.6 %

Manchester United has been very successful in developing personal financial activities
through cooperating with co-brand card to issue to the banks in Europe (MU cooperated
co-branded card partnership with Bank of America since 1998 in UK, co-op Banking
Group since 1998, MBNA, in Norway - Stander Consumer Bank since 2012, ...) and in
Asia (in Japan-MU cooperated co-branded card partnership with Shinsei Bank Group,
Bank Danamon in Indonesia-since 2007-Krungsri Bank of Thailand since 2007-Shinhan
Bank Korea in 2007, and the Singapore-Malaysia cooperation with Maybank from
2011, ...). The number of customers use co-branded MU card counted over 1.7 million
customers worldwide.
In some countries where the rate of MU fans like above, BIDV has available networks in
the Republic of the Russian Federation: a representative office and bank which its 100%
capital owned by Bank of venture Vietnam - Russia (VRB). VRB was established on
19/11/2006 as a result of the economic cooperation between the Government and the
Central Bank of the two countries, opening up opportunities for cooperation between the
two economies, two financial systems. VRB is a joint between the two leading banks, the
Bank for Investment and Development of Vietnam (BIDV) and VTB Bank (formerly the
Bank for Foreign Trade of the Russian Vneshtorgbank) with an equal capital contribution.
So, to take advantage of available networks, BIDV plans to develop card products BIDV
- MU to the European market, primarily Russia. BIDV targets desired card used by 18
million total fan of Manchester United in Russia (accounting for 12.6% of the
population). This is the prospect of BIDV, potential and strong individuals, is a
prerequisite for the strong development of activity card and other products. Exploiting
cooperation deal with Manchester United will bring a forward significant step for card
operations and retail banking activities of BIDV Vietnam market in the coming years.
II. SWOT
SWOT is a framework used to assess the strengths, weaknesses, opportunities, and

threats of an organization in a project. SWOT helps in indentifying the internal (strengths
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and weaknesses) and external factors (opportunities and threats) that are suitable and
unsuitable for the organization. SWOT analysis determines what factors may support
the organization in accomplishing its objectives, and what obstacles must be aware
of and overcome in order to succeed. Through SWOT analysis, organization can
create a strategy which is suitable for its resources, capabilities and the environment.
SWOT is widely used in various business aspects like: marketing, products development,
business strategy.
STRENGTHS WEAKNESS
- BIDV is one of the largest and - BIDV is operating under the joint
strong banks in Vietnam (in capital venture but not domestic in Russia,
and customers) so getting the barriers policies to
- Have experiences in banking protect the domestic banks .
operation, especially 7 years - Lack of active operation in units
operating in Russia market. lead to low efficiency.
- Serve various economic sectors, so - Lack of breakthrough products.
BIDV has many products fit to - There is not any famous brand of
customers. BIDV in Rusia.
- The strengthened, modernized - When a bank in Russia cooperated
distribution channels including with Manchester United to supply a
domestic and foreign units. co-branded credit card, BIDV will
- Employees are young, professional. be shared the market-share.
Future managers and experts were
well- planned for and trained in the
bank’s HR planning scheme
preparing for long term purpose
with a 10 - 15 years’ view.
- Good relationship with Government,
Ministries…
20
THREATS
OPPORTUNITIES
- Global economic crisis affects to
- Russia has a total population of over
Vietnam and Russia economies
143 million people, is one of the 8
like trade balance sheet; growing
largest economy in the world with a
rate; investment issues.
total GDP reached 1.500 billion
- People tend to use the service in
U.S. dollars, per capita income of
the Russian domestic banks
nearly $ 12,000 / year. Russia is not
- Changing investment policy of Lao
only the largest but also the market
government.
is not demanding markets such as
Western Europe, Japan or the
United States.
- Russia is reforming its economy, so

the regulatory environment is
largely up to standard;
- The Russia government’s policy

statements favor the development of
a strong and sustainable, market
oriented development of the
financial sector;
- Strong demand for sustainable,

available and accessible financial
service providers within the
population;
- Growing number of young, educated

people, wanting to improve both
themselves and their country, and
apply to work in the financial
21
sector;
- Many Vietnamese investors invest

in Russia.
III. Define the export strategy

1. Target Market
Theory
A target market is a group of customers that the business has decided to aim its
marketing efforts and ultimately its merchandise towards.
Market Segmentation: is a marketing strategy that involves dividing a broad target

market into subsets of consumers who have common needs (and/or common desires) as
well as common applications for the relevant goods and services. Depending on the
specific characteristics of the product, these subsets may be divided by criteria such as
age and gender, or other distinctions, such as location or income.
Levels of Market Segmentation:
- Mass Marketing is a market coverage strategy in which a firm decides to ignore

market segment differences and appeal the whole market with one offer or one
strategy.
- Segment Marketing is the practice of defining your customer needs and wants by
placing them in specialized groups that receive different attention and different
levels of marketing.
- Niche Marketing defines the specific product features aimed at satisfying specific
market needs, as well as the price range, production quality and the demographics
that is intended to impact. It is also a small market segment.
- Individual or customized Marketing is an extreme form of product
differentiation. Whereas product differentiation tries to differentiate a product from
competing ones, personalization tries to make a unique product offering for each
customer.
2. Define export strategy to Russia Federation :
22
Basing on market segmentation theory and market research, BIDV choose the target
market is the key area in Russia to aim at satisfying specific market needs and wants.
Exporting products and services to the international market is common trend of

companies including financial sector. BIDV invested to Russia from 07 years ago under
the joint venture form named Viet Nga Joint Venture Bank.
VRB’s chartered capital increased from USD 10 million to USD 30 million in the year
2007, USD 62.5 million in the year 2008, USD 168.5 million (arround VND 3.000
billion) in the year 2011, contribution rate to 50/50 of BIDV and Bank VTB. The
chartered capitalwould be a prerequisite for the Bank to restructure its operational
organization, improve its management, heighten competitiveness and fulfill all the goals
set forth for the near future.
In this study, the author uses the marketing theory to define the BIDV’s export
strategy to Russia Federation.
3. Marketing Mix for export strategy

3.1 Product
A credit card is a payment card issued to users as a system of payment. It allows the
cardholder to pay for goods and services based on the holder's promise to pay for them.]
The issuer of the card creates a revolving account and grants a line of credit to the
consumer (or the user) from which the user can borrow money for payment to a merchant
or as a cash advance to the user.
BIDV – MU credit card is an alternative means for making payment by cash. The
cardholder settles the transaction amount at a later stage up to 45 days without interest
charges
Product strategy for Russia market should concentrate on people who avid fan of
Manchester United.
BIDV should update the new feature of the Visa BIDV - MU credit card regularly.
To do this, BIDV must to invest in technology to develop the high technologically

products and services compare to existing product and services in Russia market.
23
In comparison with main rival’s product: …
Aeroflot-Citibank credit card

The card for those who prefer traveling. Use accumulated
miles for premium air ticket.
 Advantages and benefits of a Citibank credit card

 1 mile for each RUB 30 spent using the card
View card details  Minimum 500 miles for each flight with Aeroflot or
Aeroflot Bonus program partners
Apply online
 Up to 2,000 award miles after your first purchase
Maximum credit limit 300.000 RUB 600.000 RUB
Interest rate 27,9% p.a. 25,9% p.a.
Annual fee 950 RUB 2.950 RUB
(http://www.citibank.ru/russia/cards/eng/main.htm)
II.2 Price
24
The co-branded credit card a bank - MU can be offered by banks in Russia, so pricing
strategy should lower than other competitors to attract them.
Here is a comparison about rate, credit limit and annual fees. The exchange rate on 05.09.2013 is RUB 1 =
VND 673.5360.
The Visa credit card of The Visa BIDV – MU credit

Citibank (being applicable card (being applicable in
in Russia) Vietnam)
1 Maximum credit 600.000 RUB 450.000 RUB

limit
2 Interest rate 25.9% p.a 15% p.a
3 Annual fee 2.950 RUB 600 RUB
To compete with Visa cards issued by Citibank, BIDV should offer low fees to compared
with Citibank in Russia.
This is the cost leadership pricing strategy which means low price determination
deliberately, in order to gain market share and penetration into the market gradually.
After the stabilization target market, BIDV will increase the price.
II.3 Place/Channels
BIDV should expand the net work in key areas (Moscow, Saint Petersburg, Kazan
where there are a lot of MU’s fans in Russia in order to increase its competitiveness with
other banks.
II.4 Promotion
Key message : “Connecting Legend”
Cardholders can express themselves as a Manchester United fan by using the Visa
BIDV - MU credit card.
Criteria media:
Level of awareness of market segments will 50% in the first 6 months of advertising.
Channels of communication :
25
BIDV has built its brand-name in Russia market for 7 years and BIDV has been
building it under of sponsoring charity programs and mass broadcasting programs.
BIDV can support the big projects of Russia’s government to attract more than
domestic company operating with BIDV. This help BIDV is supported by Russia’s
Government in its operation.
Media: BIDV should increase advertising on public media like TV, radio, newspaper,
magazine, billboards, Facebook about product and services.
Direct marketing: telesales, contact to customer at fan clubs or café…
Beside it, BIDV should boost the lucky programs or accumulate bonus points when
customers use credit card.
Organizing events to clients the opportunity to meet the idols are members of the
team Manchester United.
CONCLUSION
The international co-branded credit card will be strong market in the coming years, so
the competition between banks will be increasingly tougher and tougher. To penetrate
into the Russian market, it is neccesary that BIDV must take advantages of the 7 years of
experience, research carefully of Russian citizen preferences for timely updates of new
and modern products.
Thereby, we also need a clear analysis of the strengths, weaknesses, opportunities,

challenges and recognize the viability of their companies. Therefore, interest in building a
marketing strategy article, consistent identity for products and services is an important
condition in the business strategy of each bank.
26
REFERENCE
[1] Philip R.Cateora; Mary C. Gilly; John L. Graham. International Marketing.

The fifteenth edition. Mc Graw.Hill Irwin
[2] Ms. Anh Tho Andres. (2012). Teaching Material MBA program subject
Marketing in Global Environment. UBIS
[3] Porter, M.E. (1979). How Competitive Forces Shape Strategy. Harvard
Business Review
[4] Philip Kotler. (2002). Marketing Management, Milenium Edition. Pearson

Custom Publishing. Boston
[5] BIDV annual report 2012
[6] Website
www.bidv.com.vn
www.wikipedia.org
www. vrbank.com.vn
27

12-093 - Nguyen Thi Kim Hoang - MKT 601 - Final Assignment

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12_093_NGUYEN THI KIM HOANG_MKT 601 _Final Assignment

APPLYING MARKETING MIX ON THE BIDV OPERATION ......................4

THE CO-BRANDED CREDIT CARD BIDV – MU…………………………..8

DEFINE EXPORT STRATEGY TO RUSSIA FEDERATION..........................11

BIDV concentrates in banking, insurance, security, financial investment field. At present,

BIDV presents in Laos, Cambodia, Myanmar, Russia, Czech…, simultaneously cooperate

Abbreviated name: BIDV

Slogan: Share opportunities, Share successes

The Mission: Complete s professional, effective organization and become to the

MARKETING MIX OF BIDV:

II. Marketing mix on BIDV operation.

Securities Joint Venture Company (CVS); BIDC’s branches in Ha Noi and

presenting gifts to poor households, providing scholarships to poor students, financing

THE CO-BRANDED CREDIT CARD BIDV – MU:

Card Card Maximum Annual

The BIDV – MU credit card:

Deduct 10% when buying goods at Manchester United online megastore

Deduct 10% MU’s fan club fee charge.

DEFINE EXPORT STRATEGY TO RUSSIA FEDERATION

1.1 Political and Legal elements

1.2 Economic element

Economically, Russia still maintains constantly total growth domestic product

1.3 Social and culture

Retrieved May 22, 2013, from http://en.wikipedia.org/wiki/Russian_culture:

1.5 Ecology and physical environmental

It includes the customers, competitors, suppliers and partners elements.

Customers: it is the important elements in any companies operation including

3. Porter’s Five Forces Model

It is a framework for industry analysis and business strategy development formed

Bargaining power of Competitive rivalry Threat of substitute

Threat of new entrants

Model 3: Poster’s five forces

Bargaining power of supplier: The bargaining power of suppliers is also described as

Bargaining power of customers: The bargaining power of customers is also described as

4. Target market and market division :

The inventory of the number of "followers" of MU in some countries on the world,

SWOT is a framework used to assess the strengths, weaknesses, opportunities, and

- Russia is reforming its economy, so

- The Russia government’s policy

- Strong demand for sustainable,

- Growing number of young, educated

- Many Vietnamese investors invest

III. Define the export strategy

Market Segmentation: is a marketing strategy that involves dividing a broad target

Levels of Market Segmentation:

- Mass Marketing is a market coverage strategy in which a firm decides to ignore

Exporting products and services to the international market is common trend of

3. Marketing Mix for export strategy

To do this, BIDV must to invest in technology to develop the high technologically

In comparison with main rival’s product: …

Aeroflot-Citibank credit card

 Advantages and benefits of a Citibank credit card

Maximum credit limit 300.000 RUB 600.000 RUB

Interest rate 27,9% p.a. 25,9% p.a.

Annual fee 950 RUB 2.950 RUB

The Visa credit card of The Visa BIDV – MU credit

1 Maximum credit 600.000 RUB 450.000 RUB

2 Interest rate 25.9% p.a 15% p.a

3 Annual fee 2.950 RUB 600 RUB

Direct marketing: telesales, contact to customer at fan clubs or café…

Thereby, we also need a clear analysis of the strengths, weaknesses, opportunities,

[1] Philip R.Cateora; Mary C. Gilly; John L. Graham. International Marketing.