English for Specific Purpose 2 – Group 7

THUONGMAI UNIVERSITY
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GROUP DISCUSSION

TOPIC:
FREEBIES IN TRADING IN VIETNAM

Subject: English for Specific Purpose 2

Class: 232_ENTI1012_62
Teacher: Đàm Thị Hồng Nhung
Group: 7

Hanoi, March 2024

LIST OF GROUP MEMBERS

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No. Full name Student code Duties

37 Nguyễn Thị Phương Thúy 21D190199 2.1 + Slide

38 Nguyễn Thị Anh Thư 21D190250 2.2 + Slide

39 Phan Duy Tùng 21D190255 3.1 + Slide

40 Đinh Anh Tú (Leader) 21D120205 4 + Conclusion + Word

41 Đinh Ngọc Vũ 21D190151 Introduction + 1 + Word

42 Nguyễn Thị Thúy Yến 19D100407 3.2 + Slide

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English for Specific Purpose 2 – Group 7

CONTENTS
I. INTRODUCTION...............................................................................................................4
II. BODY..................................................................................................................................5
1. Definition.........................................................................................................................5
1.1. What does 'freebies' mean?........................................................................................5
1.2. Types of freebies in trading.......................................................................................5
2. Freebies in trading in Vietnam......................................................................................6
2.1. Overview of freebies in trading in Vietnam..............................................................6
2.2. Result of freebies in trading in Vietnam....................................................................7
3. Advantages and disadvantages of freebies in trading.................................................8
3.1 Advantages..................................................................................................................8
3.2 Disadvantages.............................................................................................................9
4. Solutions for Vietnamese businesses:..........................................................................10
CONCLUSION.....................................................................................................................12

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I. INTRODUCTION
The contemporary business environment is characterized by a dynamic interplay of
strategies aimed at captivating the attention and loyalty of consumers. Within this landscape,
the concept of 'freebies' has emerged as a compelling force, playing an increasingly
prominent role in the realm of commerce. As businesses navigate the challenges of a
competitive market, the strategic deployment of freebies has become a key driver for
customer engagement, sales acceleration, and the cultivation of brand allegiance. This
introduction seeks to illuminate the expanding significance of freebies in contemporary
business practices, elucidating how businesses are harnessing their potential to gain a
strategic edge. Throughout this discussion, we will embark on an in-depth exploration of
freebies, unraveling their definitions, their implications, and the diverse types prevalent in
the field of trading.

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II. BODY
1. DEFINITION
1.1. What does 'freebies' mean?
Freebies, within a commercial context, encompass complimentary items or services
provided by businesses to consumers without financial obligation. This strategic gesture
serves as a powerful tool to attract, retain, and delight customers, fostering a favorable
association with the brand.

1.2. Types of freebies in trading

The world of freebies in trading is diverse, comprising a spectrum of offerings designed
to capture the attention and loyalty of customers. Specific types of freebies include, but are
not limited to:

 Promotional Merchandise:

Businesses distribute branded pens, keychains, or T-shirts to enhance brand visibility

and create a tangible connection with the consumer.

 Trial Versions or Samples:

Providing trial versions or samples allows customers to experience a product's quality

and functionality before making a purchase decision, commonly employed in industries such
as cosmetics, food, and technology.

 Educational Resources:

Some businesses offer free access to educational materials, webinars, or workshops to

position themselves as industry leaders and build trust among potential customers.

 Loyalty Programs:

Rewarding customers through loyalty programs with freebies such as upgrades,

exclusive discounts, or access to premium content serves as a potent incentive for repeat
business.
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2. FREEBIES IN TRADING IN VIETNAM

2.1. Overview of freebies in trading in Vietnam
The real explosion in the growth of the promotional products industry occurred in the
1970s. At this time many companies realized that the benefits of giving gifts with their own
company logo would be greatly appreciated and helps promote the image of their company,
brand and products.

The use of freebies in Vietnam has existed for a long time, but has only really developed
strongly in recent years.

 Before 1990: Freebie programs were simpler, mainly involving giving away products
with purchase or offering direct discounts

 From 1990 to 2000: Programs were more diverse, with many forms such as giving
gifts, lucky draws with prizes, buy-one-get-one-free deals, and more.

 From 2000 to present: Freebie programs have become increasingly professional and
well-structured. They're widely used across various industries, from FMCG (Fast-Moving
Consumer Goods) and electronics to fashion, travel, and services.

Forms:

 Gift with purchase: Customers earn points for each purchase and redeem them for
gifts.

 Lucky draw: Businesses organize lucky draws with attractive prizes.

 Buy-one-get-one-free: Businesses offer an additional product for free when customers

purchase a specific product.

 Seasonal gifts: Businesses give gifts to customers on holidays, festivals or special

events.

 Gifts for potential customers: Businesses give gifts to people who sign up to receive
information about their products or services.

For example:

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 Unilever's "Points Redemption" program: Customers earn points for each purchase of
Unilever products and redeem them for gifts.

 Coca-Cola's "Lucky Draw" program: Coca-Cola organizes lucky draws with prizes
such as motorbikes, phones, laptops,...

 McDonald's "Buy-one-get-one-free" program: McDonald's often runs buy-one-get-

one-free promotions for products such as burgers, fries, soft drinks,...

2.2. Result of freebies in trading in Vietnam

In the context of the current Vietnamese commercial market, the freebies strategy is one
of the basic and important strategies for businesses to compete in this increasingly fierce
market.

 They Improve the Image of Your Brand

In order for your brand to stand out, you need to make as much of a positive impression
as possible. And freebies can be a great way of influencing prospects in your favor, as they
help you to make a good first impression on people. If your brand is seen in a positive light
by attendees, they’re more likely to consider your products.

For example: In 2023, Biti's Hunter launched the "Go to Return" campaign, giving
away 10,000 pairs of shoes to people walking back home for Tet, which resulted in
attracting more than 10 million likes and interactions on social networks. After the
campaign, Biti's Hunter's sales revenue increased by 20% over the same period last year.
This gift has contributed to creating strong strength for users about the Biti's Hunter brand
image associated with traditional Vietnamese cultural values.

 They Can Convey Your Values at a Glance

Choosing the right freebies to give away during an event is important. Not only should
they be relevant to your business and your industry – like sporty items if you work in the
sports industry, or pet products if you work in the animal sector – but you can also quickly
show potential clients what your brand is all about.

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For example: A sustainability-focused technology company ("GreenTech Inc.") opened

a technology exhibition promoting eco-friendly solutions and the use of reusable water
bottles made from recycled plastic as gifts for attendees. As a result, 70% of surveyed
attendees said a water bottle is a useful and suitable gift. 65% of attendees who received the
water bottle said it reminded them of GreenTech Inc. 40% of attendees who received water
bottles visited the GreenTech Inc. booth. to learn more about their sustainable technology
solutions.

 They Help to Generate Leads

One of the main reasons that companies use freebies is to get leads, and your freebies
can certainly help you accomplish this. You can get creative and use your promotional items
as your business card, which will probably be different to everyone else at your event – and
being different or unique is good, as it allows you to stick out from the crowd.

For example: MoMo's "MoMo Freeship" campaign was developed in 2018. Users pay
for orders on online ordering applications such as GrabFood, Now, ShopeeFood,
Ahamove,... using MoMo e-wallet. The system will automatically apply the free discount
code to convert to orders. The campaign has attracted more than 5 million new users to
register for MoMo, helping MoMo become the most widely used e-wallet in Vietnam.

3. ADVANTAGES AND DISADVANTAGES OF FREEBIES IN TRADING

3.1 Advantages
Freebies, also known as giveaways or promotional items, can be powerful tools in
trading for both businesses and consumers. Freebies in trading offer several advantages to
businesses, which can be instrumental in driving sales and building brand loyalty. Here are
some advantages of using freebies in trading:

 Attracting Customers:

Freebies can attract new customers who are enticed by the prospect of getting something
for free. This can be particularly effective for businesses trying to penetrate new markets or
gain market share.

 Building Brand Loyalty:

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Offering freebies can help build brand loyalty among existing customers. When
consumers receive something for free, especially if it's of value or perceived value, they
often feel a sense of reciprocity and are more likely to remain loyal to the brand.

 Word-of-Mouth Marketing:

Freebies can stimulate word-of-mouth marketing as satisfied customers share their

experiences with friends and family. Positive word-of-mouth can be invaluable for
generating new business.

 Differentiation:

In competitive markets, freebies can help a business stand out from the competition.
Offering something extra for free can differentiate a brand and make it more attractive to
consumers.

 Sampling:

Freebies can serve as a way for consumers to sample a product or service without any
risk. This can be particularly effective for new or unfamiliar products where consumers may
be hesitant to make a purchase without trying it first.

 Data Collection:

Freebies can be used as incentives for customers to provide valuable data or feedback.
For example, offering a free trial in exchange for contact information allows businesses to
collect leads for future marketing efforts.

3.2 Disadvantages
But besides their advantages, freebies also have some disadvantages:

 Costly and incorrectly targeted to potential customers:

Offering freebies can be expensive, as it requires an investment in producing and

distributing them. Some people may take advantage of the freebie offer without any
intention of becoming a paying customer.

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This attracts people who are not genuinely interested in the product or service, which
can lead to a higher cost per customer acquisition.

 Lowering perceived value:

If the freebie is of low quality or does not meet customer expectations, it can negatively
affect the brand's image and lower perceived value. Customers feel uncomfortable when
they are given freebies and have to fill out survey information. Customers do not want to
include freebies because they think it will increase the selling price of the main product.
Above all, if your freebies are not of good quality, it will also affect the reputation of the
company.

For example, Thegioididong's "Free Smartphone Accessories" Promotion: In 2016,

Thegioididong gave away free smartphone accessories with the purchase of smartphones.
However, the promotion did not generate large sales growth, due to customers perceiving the
free gift as low-quality.

4. SOLUTIONS FOR VIETNAMESE BUSINESSES:

Vietnamese businesses can refer to some of the suggestions below to promote the
advantages and overcome the disadvantages of freebies:

 Freebies design:

Freebies with beautiful designs not only contribute

to increasing the value of the gift but also show respect
to the customer. When choosing freebies for customers,
you also need to pay attention to the gift's packaging
design. The packaging here is the box, bag, bow,
processing, wrapping, etc. The freebies must be
presented in the most formal form to make an
impression when seen and desire to own it.

 Usefulness:

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“The excellence of a gift lies in its appropriateness rather than in its value” - Charles
Dudley Warner. Even though a gift is luxurious and high-class, if it’s useless to the
customer, it has not truly promoted its meaning. Your customers and partners may even give
it to someone else to use or throw it in a corner and forget about it. Therefore, a gift is
meaningful when the customer loves, uses and appreciates it. When choosing freebies for
customers, you should also consider its practicality in life.

 Mention the brand:

In addition to clearly expressing the brand identity (logo,

slogan, colors), businesses can add other information such as
communication messages, contact addresses, emails... However,
this also needs to be noted because many businesses are too
greedy for information and cramming data, causing customers to
dislike the freebies.

 Personalize freebies:

Personalization is a new trend in businesses, not only in products but also in freebies.
Personalization comes from choosing individual freebies for each customer, engraving the
customer's name, image, anniversary date or other information related to the customer on the
freebies. Personalization will make customers feel valued and that their gift is not mass
produced, showing that the giver really cares and puts a lot of effort into your gift.

 Attach cards, wishes, and “Thank you!”

notes:

If your gift includes a card or a “Thank you!” notes, it

can also make the gift more meaningful. Especially for

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high-end freebies, cards are indispensable. This small thoughtfulness can also touch
customers and increase the value of your gift.

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CONCLUSION
In the business activities of Vietnamese businesses, marketing has become the key to
helping them grow strongly and attract potential customers. And freebies become a simple
but extremely effective solution for businesses in an increasingly fierce market competition.
However, using freebies effectively is not simple, it can even have negative effects.
Businesses must always innovate in their business operations to bring the most value to
customers and maximize profits.

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