Vinagame is one of biggest game companies in Vietnam market. It has just been founded in 2004 but it gradually become more and more popular because of its variety. Vinagame’s home page is http://zing.vn/. When they first were established, its main area is just providing authorized games from China and creating Vietnamese traditional games based on folk games from years ago. However VinaGame wants to spread out their brand name more popular, they decide to work in software outsourcing, e-commerce and media and communications as well. Due to its diversification, now its website has thousands of access per day to find about updated movies, new music albums, latest news or joining forum with others, etc. These leads to success of Vinagame and expansion of their brand name in the market.
In this marketing plan, our team only focuses on online games area of Vinagame and draws up a plan for the following year. we will help Vinagame set financial objectives and marketing objectives. Vinagame intends to achieve 5% increase in profit each month and holding 20% market shares.
Table of Content
1. Current Market Situation 4
1.1 Introduction 4
1.2 Situation analysis 4
1.2.1 Macro- environment: 4
1.2.2 Micro-environment: 6
1.3 SWOT Analysis 6
2. Objectives 8
2.1. – Financial Objectives: 8
2.2. Statement of Product Objectives (SMART): 9
3. Segmentation, Targeting and Positioning 9
3.1 Segmentation 9
3.1.1 Geographical segmentation 9
3.1.2. Demographical segmentation 10
3.1.3. Psychographic segmentation 10
3.1.4. Behavioral segmentation 10
3.2. Target Marketing 11
3.3. Positioning Segmentation 11
4. Marketing Mix Strategies 13
4.1. Product 13
4.1.1. Product and service classification 13
4.1.2. Three level of Product 13
4.1.3. Branding 14
4.2 Price 15
4.2.1 New Product Pricing Strategies: 15
4.2.2 Product Mix Pricing Strategies: 15
4.2.3 Pricing Adjustment Strategies: 15
4.2.4 Pricing Approaches 15
4.3. Place 16
4.3.1 Location 16
4.3.2. Distribution 16
4.4 Promotion 16
5. Action Plan & Budget 19
6. Control Program 21
7. Reference list 21
1. Current Market Situation
VinaGame, founded in 2004, is a software service company. It is the first company in Viet Nam providing online games. They have more than 1000 employees and the main office is located at Ho Chi Minh City. They hold ¾ shares in online games market and become the biggest games company at the present. In 2004, they made a deal for Swords Man online with Kingsoft, a Chinese game company. This online game becomes the most attractive and popular in Vietnam from 2004 until now. In addition, they released some online games such as nine dragons, Ragnarok, Boom online, Sword Man online II, which are played national wide range too. In 2006, they offered the e-commerce website http://www.123mua.com.vn/. In 2007, they provided online music website http://mp3.zing.vn/ (VinaGame 2007).
1.2 Situation analysis
1.2.1 Macro- environment: Macro -environment affects the company in general and they could not be prevented.
Demographic: It is study of human population in term of size, density, location, age, gender (Kotler et al, 2005). So the population structure impacts strongly on Vinagame’s strategy of distributing their online games. In Vietnam, majority of people who play online game are from 10-30 years old (VinaGame, 2008). The reason is online game is entertainment pattern which the youth is most interested in (GameThu, 2007). According to GOPFP 2008, population at the age of 10-30 is about 38.16% so this is the most potential market for Vinagame to develop.
Economic: It is factors that affect consumer buying power and spending patterns (Kotler et al, 2005). Changes in income also affect amount of payment for game accounts. In 2004, average income of urban people is 815,000 VND (VNmedia, 2007). It increases about 200,000 more in average in 2006. Higher income may let gamers spend more money on their game accounts. According to VnMedia 2007, in general, people less than 25 years old pay 50-100,000 VND per month for Swords Man online, the most attracting game of Vinagame. Because of financial crisis, many gamers have to spend less on game online. Nevertheless our targeted customers are mainly teenagers and youth who depend mostly on their parents, their payment for game online is not affected much.
Social and cultural: It is institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors(Kotler et al, 2005). In perception of Vietnamese or people in others countries, males usually play game for relax much more than females do. And males always like adventure, violent, fighting games. So Sword man online, nine Dragons and Sudden Attack are suitable. It leads to huge number of males play those game.
Natural: Natural resource that are needed as inputs by marketers or that are affected by marketing activities (Kotler et al, 2005). VinaGame buy the copyright original games from foreign countries and then remake them become the games for Vietnamese with Vietnamese language. In the future, with the steady develop in creativity of people, Vietnamese can write game. So the cost of game materials will be reduced and VinaGame will not need to import games.VinaGame have many employees who are very good at computer skill. They should invest more in human development. So they can write their own games without purchasing game material.
Political: It is laws, government agencies, and pressure groups tat influence and limit various organizations and individuals in a given society (Kotler et al, 2005). Policy of government for online games affects Vinagames’s business. For example, the limitation of playing time reduces the number of people play game (GameThu2007). Many games request players spend more time to get their characters stronger than other players. Players can only access to the games for 5 hours. So they will no more feel interested in the games.
Technological: It is the forces that create new technologies, creating new product and market opportunities (Kotler et al, 2005). Technological environment is the most effect on VinaGame because they are a software service company. They work on computer, internet to run their business. With the fast development in the Internet in Viet Nam, online game has chance to be more popular. According to VnMedia 2007, in 2007 there were about 21 million people using Internet. Beside internet, computer gradually becomes popular either. Therefore, it makes a good opportunity for online games develop.
1.2.2 Micro-environment: the micro-environment affects marketing strategies directly. Those factors impact on the number of players who plays online games of VinaGame.
-Direct competitors: they are the companies which provide online games for players in Viet Nam market such as VTC, Asia soft. VTC have some famous games such as Cross Fire, Audition and Asiasoft have TS online, Gunbound, Cabal online. They are the same type of game like VinaGame’s and they attract a lot of players. They directly compete to VinaGame and they affect number of their players. For example, Cross Fire of VTC competes to Sudden Attack of VinaGame, Swords Man with Cabal online and TS online because they are the same action type.
-Indirect competitors: they are some different type of game or type of gamer. For example, offline game is from EA game company, PS3 from Sony, Xbox from Microsoft. They also affect VinaGame because if people are interested in those games, they do not play online games more.
Marketing intermediaries: Firstly, they are the agencies that sell game card which enable players get in the game. However, they do not affect a lot because buyer does not care about service. Secondly, they are the game shop of VinaGame or they are the game shop of individual. Those are where people come and play games. So their service can affect number of player. They reflect how good those games are.
Suppliers: They are the software companies from foreign countries. They write games and then sell for VinaGame the copyright version. There are 9 suppliers which provide game for VinaGame: Kingsoft Inc, VDC Co.ltd, Intel corp, IDG venture, Indy 21 Co.ltd, Gravity, Nexon, CJ Internet, GameHi. In 9 companies, Kingsoft and GameHi support games for VinaGame. Games of Kingsoft lead the 3 of 5 top online games in Viet Nam. They play an important role in developing VinaGame become one of the biggest game company.
1.3 SWOT Analysis
External factors Strengths:
-they have strong advertising nationwide and huge amount of capital.
-their employees are the passionate gamers. So they understand deeply what gamers expect in a game.
-they have nationwide hosting network.
-VinaGame focuses too much on profit. It gradually lose the attraction of the game when player who spend more money, they get stronger character in the game.
-Although they have nationwide network, sometime a lot of error happen and cause annoying for gamers.
-Customer service department do not solve player’s problem quickly.
-Viet Nam game market is developing very fast and it is a good chance for VinaGame develops.
-Many attractive games from over the world companies will release in few years.
-Internet is now used popularly. So it is good condition for online game become popular to everyone. SO Strategies
-make use of nationwide advertising and network to meet and satisfy player’s game demand when Viet Nam game market develops fast
- with almost employees are passionate gamers, VinaGame should select and buy the right game that is suitable for Vietnamese players WO Strategies
VinaGame also up to date the existing game more regularly in order to make players more exciting, not just focusing on profit. It also creates for VinaGame some competitive advantage to compete to others game companies
-Government policy does not allow people play excess 5 hours for each game.
- There are many foreign companies are running business in online game market and they compete to each other to attract players.
-if the game is unchanged or updated regularly, players will feel bored. ST Strategies
- Vinagame should use their passionate game employees to make competitive games to foreign games. WT Strategies
- They should care more about the network that they supply for users in order to improve quality of network and compete to new rivals. They also provide 24/7 customers services.
2.1. – Financial Objectives:
Our finance objective is to return to investment for purchasing the game and increase 5% of profit each month from January 2009- December 2009.
In the first 3 to 4 months, from January to April Vinagame plans to rewrite the external games from Korea and China then translate into Vietnamese. In this period, they will get no profit. After release the game to market in March, they spend on marketing in order to attract players. From May, each month they will receive about 22.5 billions by selling 4.5 millions game cards to 1.5 millions forecasted customers and the forecasted profit is about 12.1 billions. Amount of money they pay for purchasing supplies is about 30 billions VND. The break-even point is about 1,270,000 numbers of game cards. Their wage budget for 6 months from the beginning always reserved to avoid emergencies. It is about 48 billions.
2.2. Statement of Product Objectives (SMART):
Vinagame is going to apply “more for more” approach for the products. As the company divides the products into three types of game card, that is ranged from 50,000VND to 200,000VND. The more products being paid, the more opportunities customer would have to satisfy their game passions. The company tries to make various kinds of products that up to customer’s need. Vinagame plans to increase the market share to 15% in 2009 and products would be sold 50% in each month.
By releasing new games every three months, Vinagame hopes to increase the quantity of new customer in the target market.
Furthermore, Vinagame’s brand awareness plans to increase the brand name by 40% within a year. To keep the current customers, Vinagame focuses specifically on product quality and services. Moreover, the company also looks at the potential customers to widen its own market. The customer would also be business man or women who are stressful at the office and want to find a new way of entertainment out of bars, restaurant or karaoke bar.
Besides, Vinagame gradually develops their current website in order to serve customer and media more flexible. The company accepts online ordering for customer who lived far from centre or some who are busy with work and have no time to buy at the agency.
Overall, the focus that Vinagame invests time and money in is the quality of games that the company tries hard to produce. The more attractive the games are, the more customers Vinagame would have. An improvement plan for new types of games for girl such as Boom online, games based on legends, etc, would be developed and deployed.
3. Segmentation, Targeting and Positioning
3.1.1 Geographical segmentation
Vinagame plans to launch the agency to other Vietnam’s main cities, which are Da Nang, Nghe An, Da Lat, Dak Lak. These potential cities are specially developed in Vietnam. Not only most of these cities are Vietnam’s main harbours but they also have
3.1.2. Demographical segmentation
As the needs and wants of Vinagame’s consumer targets on a specific range of age, the company decides to provide their product for young people from 8 to 25. Besides, even most people used to think game is only boy. Vinagame widen the target also for girl. There has not only boys who are concern about game but also girl nowayday. Since the Gunbound game officially launched in Vietnam, the youth was attracted to a type of colourful and active game with cute characters. This type of game makes people connect together. They could share the character’s clothes and stuffs and have money in exchange. Gunbound game makes girls and boys close together and it is funny to spend their time. Based on this experience, Vinagame plans the same type of game that could attract both genders to get involed in. From it, the products that are provided would be served for both genders. In Vietnam individually, household income generally stay at a low rate. Therefore, the average income group Vinagame focuses on is people earn approximately 3 million VND. Gamers of Vinagame mostly are students who parent’s earnings are suitable to give them money to spend on games and part time workers. Part time workers who do not have to do much work can spend one to two hours for game online. Vinagame produces three kinds of game that suitable to Vietnamese. There are swashbuckler, battle formation and tactic games.
3.1.3. Psychographic segmentation
Vinagame provides for targeted markets who are interested in being put to the test and try ways to deal with the difficulties of the games. Vinagame’s gamers are in lower and middle class with great patience, intelligence and ambitious.
3.1.4. Behavioral segmentation
As the customers include ex users, non-user and potential group, Vinagame started to focus on these groups to bring out suitable strategy to the market. Furthermore, the company also looks at the customer’s loyalty to identify the frequency of play games. Besides, Vinagame especially concerns about customer’s attitude toward their products to make changes up to customer’s wants in each period. The changes are made to create customer’s benefits as product convenience and relaxation.
3.2. Target Marketing
Vinagame’s target marketing strategy is “differentiated marketing”. Vinagame offers their product to several market segments. The company designs various kinds of games that suit with different personality of both sexes such as Swashbuckler and Battle formation for boy and Boom Online for girls with colorful designs.
3.3. Positioning Segmentation
Vinagame products are produced to give customers chances to satisfy their passion in game and relaxation. Based on the improvement that the company makes each day, Vinagame would potentially brings new value to the market with highest quality game that meet market’s current demands. The company slogan is “Leading Game Operator in Vietnam”. Vinagame is positioned on quality and service.
Low price High price
To increase the needs and wants of Vietnam’s market, Vinagame is bringing a great international scale service that offers unique hosting, services and new process of payments
4. Marketing Mix Strategies
4.1.1. Product and service classification
Vinagame sells not only game services but also tangible products.
- Product: Game card with different prices (tangible)
- Service: Game on the Internet (intangible)
Although it is the leading company in the game online market, it sill provides affordable products (various prices for game card: range from 20,000 VND-100,000VND). Customers also take fewer efforts to shop and buy and any player can buy its cards at any store or even small shops. So, according to Kotler 2005, Vina games are the convenience product in the category of consumer product.
4.1.2. Three level of Product
a/ Core Benefit:
When customers come to Vinagame, they really buy these following things:
- Relaxing time, entertainment.
- Skills of thinking logically
b/ Actual product:
In the second level, planners will think of how to create a real product which includes these following factors.
- Brand name: Most famous brand name in the game online market
- Quality lesvel: Stable game with not many errors
- Design: Colourful design with the name of the game, the card price, and the contacts service on the card
- Features: action games and funny
c/ Augmented Product:
In the last level, building an augmented product around the core and actual which must add the customer service and benefits (Kotler, 2005).
- Delivery and credit: order game cards on the website; pay the game account through the internet and text messages.
- Installation: instruction of installation on the websites
- After sale service: Contacts of Vinagame on the game card.
At this time, Vinagame use plastic to make the game card. In 2009, Vinagame will use paper instead of plastic to protect the environment.
The face of game card will include the name of company (Vinagame), price group, hotlines for customer service. In 2009, Vinagame will design different game card for each price group. For the price group of 20,000 VND, the card will have blue color, pink for 60,000 VND game card, and red for 120,000VND game card. Therefore, the customer will easy to recognize the type of card they want to buy.
c/ Branding Strategy:
- Brand Positioning:
Vinagame is the largest game online company in Vietnam (Vinagame, 2008). Along with the brand name Vinagame, in 2009, building up the beliefs and values in customers are very important to Vinagame.
- Brand Development Strategies:
According to Kotler 2005, successful brand will help to develop a new product. So the managers will follow Brand Extension Strategy to develop new games. Understanding this key point, in around 1 year, Vinagame will keep developing old brand games like Sword man, Zhengtu, Hot Step and Boom. These are famous games of Vinagame Company. None of these should be phased out. In addition to that, Vinagame will introduce two more new games in the trial versions. Players are very difficult to change to new games so if they see familiar name, they may try the new game.
4.2.1 New Product Pricing Strategies:
There are many ways to set pricing strategies. In 1 year period, considering the price group and the segmentation of Vinagame, market-skimming pricing strategy will match the objectives of Vinagame in 2009. Setting high price is affordable with the target market of Vinagame so high price for high quality product will gain a large market share gradually (Kotler, 2005).
4.2.2 Product Mix Pricing Strategies:
- Optional-Product Pricing:
For each price of game card, player can choose to play what they want or they can choose what stuff they want to buy.
- Captive Product:
It means that when the players want to play the games of Vinagame Company, they have to buy Vinagame card. They cannot use VTC game card to play Vinagames . If they want to be stronger in the game, they have to buy Vinagame card to buy stuff they need such as clothes, food, power, weapon, etc.
4.2.3 Pricing Adjustment Strategies:
- Discount and Allowance Pricing:
To promoting the new games, Vinagame will apply the discount pricing. Customers can play any new games for free and if they want some tools or weapons to be stronger, they just have to pay half price. This discount period will last for 6 months.
Adding more playing time during Tet Holiday
4.2.4 Pricing Approaches
Vinagame bases on the satisfaction of customer about the games so the price of games will be decide following the theory of value-based pricing.
Vinagame has retailers everywhere because the Vinagame cards (Zingcard) are sold in any game shop and also some convenience stores. Most game shops are located around the secondary and high schools because Vinagame’s target market is students. Now, Zingcards are sold near school and parking area. Therefore, in 2009, Vinagame will continue to sell their cards at these places.
Vinagame use the vertical marketing system to build up its distribution systems. In 2009, after the new game is bought, the technician will make some changes to the game so that it is suitable for Vietnamese players. For examples, changing to text from English to Vietnamese or adding more characters. So Vinagame is manufacturer, supplier and outlet.
Vinagame also use new way of high-tech distribution. They use the text messages or the Internet for customers to pay the game accounts.
In order to attract more and more gamers come to their game online. VINA game has used the Pull Strategy to support for their target. Pull strategy is the business put lot of effort to advertise and promote product to create the enthusiasm from gamer to new product.(Kotler, 2005)
Since, Game Online is just a virtual product that cannot be bought direct, so VINA Game mainly build up the customer demand, in other word, they stimulus the gamer enthusiasm to the coming up games, through some different type of promotion such as :Advertising, Sale promotion, Public Relationship, and some additional ones like Physical Evidence , People, or Process.
ADVERTISING: is the way, product was presented under different forms, instead of people. Thus, VINA game used many various ways to promote their products through their homepage (www.vinagames.com), or some kind of social activities such as charity or sponsor to attract the people’s attention to their promoted product. Since, our targeted customer is mainly the teenager and youth who are interested in IT technology, and music, hence, we concentrated on promoting game on the specific IT newspaper, magazine such as E-Chip( the most favorite IT newspaper), or PC World, also put advertisement on music radio station ( xonefm). Also, VINA Game want to use message strategy that make customer react to our product in positive way, for example, our company will promote the brand new game online on our homepage that got lot of viewers, by mean of posting game trailers with vivid imagines , funny characters.. That will attract the gamer attention. Another one, VINA Game will send email to gamers being members to inform about the new coming up game. Additional, VINA game will keep the eyes on level of competition (i:e how much their direct competition pay for ads, how often they are shown on TV), based on that, they will regard about budget to pour on advertisement. Due to our targeted customer are teenager and youth, so they have intention to believe in big brand names, rather than small ones in market. Thus, a mount of money for advertising, or developing advertisement will raise our brand awareness from customer, percentage of future sales. Also, it helps us take more market share from rival’s hand.
SALE PROMOTION: the strategy to encourage customer to buy the product or services by providing some Consumer promotion Tools, for instance,
o Sample: Before providing the official game to market, VINA game always give the free trial beta, and close beta for gamers in a month, in order to get their interest in our new product.
o Coupons: when gamer buys one 50.000VND Card, they will have 200% in the balance instead of buying 50.ooo VND.This strategy aims to promote for mature games
PUBLIC RELATIONSHIP: the way company makes good impression on the various publics what take the much lower cost rather than advertise
o Special Event: to promote for “Swordsman Online”, VINA hold the “ Miss Swordsman Competition”, another ones is “Best Gamer Meeting”. to create the favorable news about the company and also interest the target publics.
o Lobbying: the way we integrate with legislator or official to affect on the government legislation and regulation. Our company will cooperate with the government in limiting the game online addiction of gamer, by mean of, we will reduce their level, or minus score if they more than 5 hours.
PHYSICAL EVIDENCE: the physical items that customer can see, also it portrays the company image that company tries to promote (Physical Evidence, 2008). For example:
o Brand name: when gamer buy the scratch- off prepaid cards. They will see the company logo on each card.
o Internet/webpage: customer can see many different games with the flash trailer shown on the VINA game homepage. Also, they introduce some different types of business the company are operating.
o E-Mail: when people who are the member of forum, they will be informed by mail, about some new coming up game.
PEOPLE is who involve in business, having the more influence rather than any kind of promotion to customer’s experience whenever they contact the customer (People, 2008). Since, VINA game operates in service field, but our product can’t be sold direct to customer individual. Hence, the firm mainly pay attention to improve the better Customer Service Support that will add more value of our company to customer.
o Customer Service: customer support team, expertise on IT, providing gamer some technical supports: for example, they will return to blocked account to gamers. Also, they communicate with the customer through telephone or Internet (I;e mail), such as when they get problem with the scratch- paid off card, they will contact to our service to check, and then activate the balance for gamers.
PROCESS: is the number of process integrating with each other to create the an overall marketing process, in order to fulfil the main achievement (Process & Services Marketing, 2008).With purpose that seeing the customer experience to the company’s offering, from that the company can measure the achievement. Thus, we want to create our system understandable for everyone, not only our particular target, For instance, to “swordsman Online,” if gamer wants to play it. He just need go to our homepage to register, fill some information. After that, our system will sent him an activated message, and he can play game immediately.
5. Action Plan & Budget
Vinagame Action Plan
Task Who Time Frame (Jan-Dec 2009) Budget
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Market Research MRKT Depart
Survey on Homepage 5,000,000 (1)
Market Analysis 5,000,000 (2)
Product Development Prodt-Depart
Release free 1st beta vers 20,000,000 (3
Final beta 20,000,000 (4)
Release official game No Cost
Updated version 3.0 50,000,000 (5)
On IT newspaper Echips 11,900,000 (6)
On Game Magazine
PC World (7)
On Internet (homepage) No Cost
On musical radio station (xonefm) 2,000,000 (8)
(for gamers only) No Cost
Public Relation MRKT-Depart
Publish Vinagame magazine 20,000,000 (9)
Live Competition Gameshow 300,000,000 (10)
Charity for disable people 1000,000,000 (11)
Sponsor for technology prize ( TriTue Vietnam- Vietnam Intelligence) 500,000,000 (12)
6. Control Program
Since the action program will be carried out in the next year, Vinagame should have some ways to evaluate the effectiveness of the action plan.
Firstly, we concentrate on the advertising of the new game so the awareness of players is the most important thing. The company will set up Customer Awareness Surveys. These surveys are designed to know the knowledge of customers about the new products so that the company can adjust its advertising campaign.
Secondly, Vinagame release the new game in March so the customer’s satisfaction should be concerned. By carrying out Customer Satisfaction Surveys, the managers can understand more about the need and want of players. So Vinagame can make needed decision to satisfy the players.
Finally, in term of sales, Annual Reports of the company and Sale figures will be analysed carefully. In these reports, we can see the number of actual players for the new game and the number of sold game cards. The company can also compares its performance with the other competitors like VTC or Gameloft. Therefore, the action plan will be adjusted for the next period.
7. Reference list
Marekting Teacher, viewed 13th December, 2008
VinaGame 2008, viewed on 14 December,
General Statistics Office 2008, viewed on 14 December,
Vinagame, 2008, Press Room, Press Realese, viewed 3rd December, 2008
Lemcom Network, 2008, Customer Awareness, viewed 5th December, 2008
About, 2007, Retailing, Tips to Increase Retail Sales, viewed 19th December, 2008
Search CRM, 2007, Ask the CRM Expert: Questions & Answers, How to increase market share and maintain customer trust, viewed 17th December, 2008
Kotler et al, 2005, Principles of Marketing: An Asian Perspective, Pearson, Singapore.