Garena and VNG Marketing Essential PDF

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Table of Contents ................................................................................................................................................................. ...........................................................................................................................

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Table of Contents ................................................................................................................................................................. 1 ................................................................................................................................................................. 2 .................................................................................................................................................................... 2 NATIONAL ECONOMICS UNIVERSITY..........................................................................................................2 INTERNATIONAL SCHOOL OF MANAGEMENT AND ECONOMICS.................................................................2 HIGHER NATIONALS.................................................................................................................................... 2 BTEC HIGHER NATIONAL DIPLOMA IN BUSINESS (RQF)...............................................................................2 INTRODUCTION......................................................................................................................................... 11 MAJOR FINDING........................................................................................................................................ 11 I.PART A :............................................................................................................................................... 11 II. PART B – VNG.....................................................................................................................................16 1.Company Overview.........................................................................................................................16 2.Current Marketing Situation Analysis..............................................................................................17 3.Marketing Objective.......................................................................................................................17 4.Segmentation, Targeting and Positioning........................................................................................18 5.Tactic and Action.............................................................................................................................19 6.Evaluating and Monitoring..............................................................................................................20 CONCLUSION.............................................................................................................................................21 REFERENCE................................................................................................................................................22

INTRODUCTION The following research is featured with the comparison of marketing mix aspects between gaming company of Garena and VNG , and with it is the evaluation for both company in their own cases , which would resulting in the marketing plan to boosting the number of sales and profit .

MAJOR FINDING I.PART A : 7Ps

Garena

VNG

Product

Product & Service

Product & Service

+ Main product : Video Games ( foreign origin

+ Main product : Video Games (both foreign and

and domestically ) , all are free

domestic) are all free when they

when release , only charged

first come out; the only things

things that being sold in-game

that are priced are those that are

( skins ; special items ; etc )

sold in-game ( skins ; special

Addition products : E-payment and social network apps

items ; etc ) Addition products : E- payment and social network

+ Core Service : Game publisher and distributor

apps + Core Service : Game publisher and distributor

Characteristic

Characteristic

Ganera is regarded as Southeast

VNG focuses on four main

Asia's leading game publisher.

product segments: online gaming,

They have imported and released

payment and finance, connection

popular games based on the same

platform, and cloud service, all of

platform that attract a big number

which provide clients with the

of people with incredibly

most rich, full, and pleasurable

appealing features, such as Free

online experiences possible.

Fire, Arena of Valor, Fifa Online ,

Video games are arguably the

and so on. The convenient and the section of which VNG

security it provides surely attracts

concentrates the most. They are

the customers.

primarily engaged in two activities: developing and distributing well-known games such as PUBG and Dead Island.

(VNG, 2021) ( Garena, 2021) Price

Pricing Approach

Pricing Approach Free game combine with charging in-game products and

The games are free , not the ingame products and services

services

Pricing Strategy Garena apply 3 different

Pricing Strategy VNG also apply 3 strategies ,

strategies including :

they are :

Pricing Optional Product ;

Pricing Optional Product ;

Psychological Pricing ; Value-

Value-Based Pricing ;

Based Pricing .

Psychological Pricing .

All are applied for in-game

All are applied for the products in

products or the “virtual items “

game, also known as “virtual items “

Influence Factor + External : Covid-19 has raise the demand

Influence Factor + External : The demand for video games

for video games ( A. Epstein,

has increased during Covid-19

2020)

( A. Epstein , 2020)

+ Internal : Garena aims to maximizing

+ Internal : VNG’s goal is to make their

profit through popularize its

service perfection and please all

brand and gaming community ,

the customers’ need with a variety

targeting the teenagers

of products and services

 The price are higher than

 The price are lower as a

VNG as they have their

proportion of them are

own loyal community and

self-developed not wholly

for their games are

imported like Garena

imported

Place

Promotion

(Garena, 2021) Channel Direct distribution : Online platform and social network Characteristic + Garena’s partners are based across the countries , serving as a channel to sell and promote their products + The online platform also help the company’s business in distributing it products and services (Garena, 2021)  Conducting vary campaigns to promote the brand : + word of mouth + outdoor advertising ( billboard and leaflets ) + online advertising ( TV and social-media commercials ) + celebrities and influencers : Son Tung MTP ( singer )  Garena also spring up with

(VNG, 2021) Channel Direct distribution : Online platform and social network Characteristic + VNG using their own agency to sell and promote the company’s products + Their online platform , most notably Zing , is a strong one with more than 100mil users in 2021 (VNG, 2021)  Conducting vary marketing campaigns : + word of mouth + outdoor advertising + online advertising + celebrities and influencers : streamers like Viruss and Misthy;  VNG’s Sale Promotion is nothing less , by imposing attractive promotion , they encourage players to trade

People

Physical Evidence

many attractive sales for its customers during special occasion and for whom willingly to buy stuffs with a vast amount of money , which is call Sales Promotion The employees are vital asset of Garena , with more than 29000 personnel in 2019 , most of them are young ranging from 19-34 years old. The company care deeply about their quality , yet , the recruitment is quite simple with long internship to choose the best one that able utilize their capability and best-suited for the corporation . The working environment is also controversial as it’s claimed to be much more strict and harsh than VNG. ( Garena , 2021) + Logo of Garena represent a red stylish G . + Garena owns 5 games , 3 are PC and 2 are Mobile . The MOBA games are its advantages , with League of Legend and Arena of Valor are among the most succesful game in the region + Garena representative office in Vietnam is located in HCM City

( Garena, 2021)

more real money for the in-game currencies

The workforce of VNG is about 2700 , mainly young people , much more little in comparison to Garena. The company however , seems investing more to quality over quantity , with much more sufficient recruitment and training , with more openly and relaxing workplace .

( VNG, 2021) + Logo of VNG represent a diamond-like quadrilateral in orange color with VNG word in white . + VNG owns up to 59 games with FPS is the strength of it , with representative namely PUBG and Rules of Survival , which are among the top of the region . + VNG also own many offices worldwide , 7 of them are located in Vietnam with HQ in HCM City . (VNG, 2021)

Process

1.Users got the news about the game via social media advertisement . 2.Users download/ buy the game through qualified store or apps and middleman with a variety of payment 3.User register an account to the mainframe of the company and become clients of them and with it, a part of the gaming community

II. PART B – VNG 1.Company Overview A. History ( VNG , 2021) The company was founded in 2004 , as an technology corporation specializing in digital content and online entertainment , namely Vinagame. The company grown spectacularly , changing name into VNG Corporation in 2008 and become the top publisher of South East Asia region , with more than 80 millions users in 193 different nations and 15 different languages . B. Vision ( VNG,2021) Becoming the leading Internet and Technology firm in Vietnam and globally . C. Mission ( VNG,2021) Creating technology and developing human for a better life D. Core values ( VNG, 2021) Embracing Challenges ; Advancing Partnership ; Upholding Integrity

2.Current Marketing Situation Analysis SWOT analysis : Strength + Largest Owner and Distributor of the gaming market in Vietnam + High level of brand recognition on the market + Having a well-done collaboration and relation with foreign partners Opportunity + Huge market potential with

Weakness + Insufficient promotion campaigns + Having many game-cancellations for inadequate investment or management

Threat + Extreme competition in the market

astronomical profitability + Vietnam become more globalization , meaning more openly with foreign products and cultures

+ Foreign developers prefer more popular and higher profitable competitor of Garena

3.Marketing Objective A. Objective 1 : Improve brand recognition through popularizing games like PUBG  Specific : Organize E-sport tournament with huge award to improve its popularity  Measurable : + Number of new players , player at the same time , etc , increased by 50% + The coverage of stream related to the game increased by 25%  Attainable & Realistic : The goal is achievable with sustainable number of players and a trendy rise  Promote the product and the brand  Timely : From January 2022 to June 2022 B. Objective 2 : Improve sales and profit gains from the game  Specific : + Improve players experience by removing glitch , bugs , hack , cheats , etc + Giving out more promotion to increase demand  Measurable : + Sales increased by 60% + Profit increased by 60% + Rating increased by 80% + Number of events increased by 25%  Attainable & Realistic : The goal is achievable with large quantity of players with more demand  Timely : From July 2022 to December 2022

4.Segmentation, Targeting and Positioning A. Segmentation  Demographic : Vietnam is a prosperous land for gaming industry , with the population of urbanist increasing ( Minh Ngoc Nguyen, 2021 ) and the middle class is growing faster than ever ( BMI,2021) , along with a young population ( World Bank, 2021) , meaning that the number of potential clients is at its peak , as they are all have the demand , the access and the ability to afford the products and service VNG providing

 Geographic : For better brand recognition , VNG should focus on the domestic market of Vietnam , in cities like Hanoi and HoChiMinh City .  Psychographic : People have interest in video games , either as a form of entertainment or a life career  Behavioral : habit of using electronic equipment and spending time in game among the highest of the world ( App Annie, 2021) , and also spending huge money on them ( Appota , 2018) B. Targeting VNG is a technology enterprise , with gaming industry as its major sources of profit . As the objectives might be changing among the different types of customers with distinctive needs , capacity and behaviour , the perfect method for VNG is the Differentiated Targeting . C. Positioning Positioning map : Diversity of products and services

High

High

Low

Popularity on the market

Low

Currently , only Garena is worthy as the arch-competitor of VNG in Vietnam market , and the two are also distinguish to the others . VNG are famous for their wide grasp on many different games and fields , with an account of more than 59 , many of which are among the most well-known , like PUBG for instance , yet , the popularity of VNG is no match for Garena . In the contrary to VNG , Garena only have a handful of games on their platform , yet their coverage is much more impressive , some are even dated back 10 years ago and still popular till today , marking it with unbleachable brand recognition and huge market share. 5.Tactic and Action A. Tactic : raise the brand recognition and improve the power of distributor => The brand recognition of VNG is weaker than Garena , and as it’s the main downside of VNG , the solution is very simple , make it better . Garena also the firstchoice for distributing partner , so if VNG want more market share , it has to beat or at least equal to Garena . B. Action : cut all futile projects , focus on the superb products and services of VNG => VNG is a developer , so it have a lot of gaming projects , all of them are costly while some has already flopped and dead , so it’s vital to cut them off immediately and redirect those precious funds for much more needed operation . Garena might dominate the market with League of Legend as MOBA and Free Fire as FPS , but VNG has PUBG and many oncoming games as the new challengers , so publishing them would gain more market share back to VNG as they break the domination of Garena . With better diversity of products , VNG is upper hand on this war .

6.Evaluating and Monitoring In the VNG’s perspective , they will focus on the Sales Performance and the Response of Competitors and Customers . For Sales Performance , a report to about players’ spending , their trends and statistic , etc , would help the company to value their marketing activities , whether they sort it out or not . If the report showing the increase in sales and revenue , then the company’s marketing has been successful and fulfilled their task on the way to maximizing the profit. As for the Response , the Competitors and Customers will undoubtedly , reacting different from the other . For instance , when VNG releasing the new game or have any feature updated to the existing one , an example is PUBG with their latest mode ,while

Garena has unleashed new string of promotion and update for its game of Free Fire to counter the PUBG superior , the customers take it with joy and cheers . The measurement of it was their rating and overview and also streams of article about these changes , and as long as it show a positive result , then the company is right on track to succeed .

CONCLUSION The studies has clarified and evaluated the comparison between VNG and Garena about Marketing Mix of 7P, and by carefully analyzing the 7P of VNG, the paper also comes up with a proper Marketing Plan for VNG to improve its profitability and brand recognition.

REFERENCE 1/ Garena. (2021). Available at : https://garena.vn

2/ VNG. (2021). Available at : https://www.vng.com.vn

3/ A. Epstein. (2020). Game on : How Covid-19 become the perfect match for gamers . WEF. Available at : https://www.weforum.org/agenda/2020/09/covid19-coronaviruspandemic-video-games-entertainment-media/ 4/ Minh Ngoc Nguyen. (2021). Urban population of Vietnam from 2015 to 2020. Statista . Available at : https://www.statista.com/statistics/603397/vietnam-urbanpopulation/

5/ BMI. (2021). Vietnam’s rising middle and upper class . BMI Market Report . Available at : https://bmiglobaled.com/Market-Reports/Vietnam/economic-strength 6/ World Bank. (2021). The World Bank in Vietnam . The World Bank . Available at : https://www.worldbank.org/en/country/vietnam/overview

7/ App Annie. (2021). 2020 Data Confirms Vietnam as One of the World’s Most Dynamic Mobile Gaming Markets . App Annie . Available at : https://www.appannie.com/en/insights/market-data/2020-data-confirms-vietnam-as-oneof-the-worlds-most-dynamic-mobile-gaming-markets/#:~:text=Vietnam%20is%20a %20Gaming%20Powerhouse%20in%20Southeast%20Asia&text=Gaming%20consumer %20spend%20in%20Vietnam,year%20over%20year%20in%202020.&text=The %20average%20daily%20time%20spent,opportunity%20in%20the%20mobile %20economy. 8/ Appota. (2018). Vietnam Mobile App : Market Report . Appota . Available at : https://appota.com/uploads/report/Vietnam_mobile_app_market_Report_2018_EN.pdf

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