Marketing Report - AIESEC
Marketing Report - AIESEC
Marketing Report - AIESEC
AIESEC HANOI
1307010183
Nguyen Tra My
1204000064
1304000034
Class: Tut 1e
Executive Summary
AIESEC Hanoi is one of the worlds largest youth-run organizations with the philosophy of offering
young people opportunities for global leadership development.
Since its establishment in 2007, AIESEC Hanoi has grown rapidly with more and more community
development projects. These projects focus on social problems such as: environment, education, and
cultural exchange. The organizations target market is young students from 16 to 22 years old in Hanoi.
This marketing plan aims to research and develop the current marketing strategy of the organization.
With its distinctive competitive advantage, we believe AIESEC Hanoi will continue witness tremendous
growth for a sustainable future.
The methodology used in this marketing plan is primary and secondary research.
Contents
Objectives ............................................................................................................................................. 4
1.
1.1.
1.2.
2.
2.1.
2.1.1.
Microenvironment ................................................................................................................. 4
2.1.2.
Macroenvironment ................................................................................................................ 5
2.2.
3.
3.1.
3.2.
3.3.
3.4.
Customers involvement................................................................................................................. 8
4.
4.1.
4.2.
5.
6.
7.
8.
9.
10.
11.
Implementation: .............................................................................................................................. 21
REFERENCES .......................................................................................................................................... 23
1. Objectives
1.1.Corporate objectives
AIESEC is one of the worlds largest youth-run organizations with the philosophy of
offering young people opportunities for global leadership development. The organization
aims to constantly grow and innovate to bring a dynamic environment to its members; for
them to be able to thrive in constant changes and transformation to challenge themselves
as individuals and leaders.
1.2.Marketing objectives
Each year, the marketing campaign aims to draw at least 2000 new potential customers
with the target revenue of 90 million Vietnam dong.
2. Situation Analysis
2.1.External environment
2.1.1. Microenvironment
a) The organization and customer market
AIESEC is a global independent, not-for-profit, non-political organization which
develops leadership capacity through internal leadership programs, attracting students
and recent graduates in international exchange and internship programs for NGOs.
AIESECs headquarter is located in Rotterdam, Holland. In August 2012, the network of
AIESEC has more than 86000 members in 113 countries. AIESEC is sponsored by more
than 8000 global organizations with the aims of supporting the youth development,
encouraging the talented people development.
In Ha Noi, AIESEC was established in 2007. During 6 years, AIESEC Hanoi has seen
considerable development with more than 150 active members and an alumni network
consisting of 500 people from many universities in Ha Noi. AIESEC Hanoi supplies
community development programs available for all of students. The members of
AIESEC Hanoi have been recruited very severely from famed universities in Viet Nam.
They are very talented, professional, responsible and enthusiastic. This has made
AIESEC Hanoi one of the most prestigious, professional organizations of the youth in
Viet Nam.
b) Publics
As mentioned before, AIESEC and AIESEC Hanoi both have been supported, sponsored
by more than 8000 global organizations, which are very well-known and influential over
the world such as Unilever, PWC, Google Inc., Microsoft, PepsiCo, and Electrolux.
Moreover, by its prestigious partners, AIESEC is also one of the young organizations,
believed the most by the students in over the world. The main service of organizing
community development project targets current students and recent graduates in Hanoi.
c) Competitors
There are many competitors who also have the projects for Viet Nam students same with
AIESEC Hanoi such as SJ Viet Nam, Operation Smile and Volunteer for education. SJ
Viet Nam was founded in Stanford University, United State with the aim of promoting
the value of solidarity, peace, enhancing education and human rights, encouraging young
citizen to join domestic and international social projects. Operation Smile is a global
medical project, was established with the goal to supplying free medical facility for
children and disable adults. Moreover, it also has various internship and volunteer
projects for students which related to marketing, raising fund, discovery and research.
Volunteer for education is a new organization, appearing in 2013 in Viet Nam. Its
headquarter is located in Scotland. Volunteer for education majors organizing volunteer
travel to highlands of Viet Nam with the fee about $30-40, besides it also has other
internship and volunteer projects, such as attracting foreign students to intern and work
with Vietnamese students in organization.
However, in these competitors, there is not anyone which has the as large supporter and
student network in over the world as AIESEC. Operational Smile, SJ Viet Nam are also
large international student organizations, but the programs of SJ and operation Smile are
quite difficult to participate, the candidates which want to join and can join have to be a
very excellent students. Also, the sponsorship network does not have as many influential
partners as AIESEC. Nevertheless, there is a benefit participants can join projects
absolutely for free. Meanwhile, AIESEC Hanoi supplies community development
projects for students with the fee from $25 to $30. With Volunteer for education, this
organization is a new and small-scale organization versus AIESEC, the number of staff is
about 30 staff, it also has received concern from publics, but it does not have well-known
and prestigious partners as AIESEC, so the reputation of this organization is as wellknown as AIESEC, SJ or Operational Smile.
2.1.2. Macroenvironment
a) Political factors
Nowadays, the role of international organizations as AIESEC Hanoi is more and more
recognized by government and society of Viet Nam.
Viet Nam is a developing country with many existing social problems such as pollution
environment, education inequality, human development, medical awareness, living
quality and so on. The existence of international student organizations as AIESEC Ha
Noi will have many considerable and meaningful contribution for society.
b) Demographics and economics
Viet Nam is a country which has gold demographic; the number of young people and
labor forces is high. Moreover, with the development of Viet Nam now has demand of
labor is very large. However, there are many students of Viet Nam after graduated falling
in unemployment situation. According to Vietnamese Central, in 2015, 62% of
unemployed people are teenagers. Vietnamese students lack necessary skills and social
knowledge to work in companies. Recently, Viet Nam also engages many international
associations, which poses a threat to many Vietnamese students who have not invested
time in sharpening their skills. Therefore, the organizations such as AIESEC Hanoi are
very necessary and effective for Vietnamese students. AIESEC Hanoi really brings the
great opportunities for student to experience, learn, and develop personal potential
abilities.
c) Technology
Nowadays, with the development of technology, we can have great chances to approach
and search information. It is very easy to access international exchange and internship
opportunities on the Internet. Moreover, social media such as Face book, TV, email
marketing is much more prevalent with the youth. Most of student through social media
search information. The international organizations such as AIESEC Ha Noi especially
invest and keep track of strongly on social media. Therefore, this is really an effective
mean for AIESEC Ha Noi to attract students joining its project.
Hanoi keep launching new relevant projects to satisfy the needs of more customers and to
address more social problems.
While AIESEC Hanoi always values customers and strives for excellence, there is a gap
among qualities of each project as each project is run by a different organizing
committee. If this problem cannot be properly addressed, the brand image of AIESEC in
the long run can be negatively affected.
The service that AIESEC Hanoi provides is service dominant.
3. Customer Analysis
3.1.Target market
The target market of AIESEC Hanoi is young students from 16 to 22 years old from
various high schools and universities in Hanoi. These people are enthusiast opportunityseekers and have what it takes to become change agents in the future. They want to
improve their soft skills, English fluency, multi-cultural knowledge, etc. and expect the
projects to be professionally organized.
3.2.Customer expectations and perceived benefits
In the case of AIESEC Hanoi, since its nature is fairly unique, there are not many
perceived service alternatives for youngsters to choose from. Hence, their level of
expectations is quite low.
According to Wilson et al. (2008), the main elements that influence customers
expectation level include explicit service promises, implicit service promises, word-ofmouth communications and past experience. Non-personal promises can be found on
AIESEC Hanois website and Facebook pages. Usually, customers are promised that they
will see their own improvement in their English fluency, soft skills, multi-cultural
knowledge and a new friendship network.
AIESEC Hanoi understands that given its not-for-profit nature, customers do not expect
to pay much when joining a social project. Thus, when charging a certain price for each
project, AIESEC Hanoi gives customers implicit promises that the services delivered to
customers will be worth the cost they have paid.
The third element word-of-mouth communications can be both advantageous and
disadvantageous for the organization. Yet so far, this has been in AIESEC Hanois favor.
Internal surveys showed that up to 95% of the attendees are satisfied with their projects.
Many satisfied attendees have applied for other projects by AIESEC Hanoi. Their past
experience shapes their expectations and desires, which creates a challenge for AIESEC
Hanoi to maintain the standards while catching up with old customers desires.
3.3.Perceived risks
In terms of perceived risks, customers may encounter some risks below.
How can I be sure that I will be served properly?
Functional risk
Whether or not they I achieve my personal goals as expected
Financial risk
Will I have to pay unexpected costs? (for example, T-shirt uniforms)
Will I have to wait for other people such as international interns,
Temporal risk
organizing committees so start the events?
Will I have difficulty interacting with international interns? Will
Psychological risk
people make fun of me if they cannot understand my English?
Social risk
Will my future employers appreciate this experience on my CV?
3.4.Customers involvement
Each project lasts for approximately 3 weeks. However, before being able to join the
project, customers are required to fill out the application forms and go through an
interview round. After 2 selection rounds which takes 4 weeks, only 40-50 students are
chosen to join the project. The organizing committees are compelled to maintain
customers interests throughout the long and difficult selection process. If done properly,
these students will stay positive and have their first sense of achievement upon joining
the first event of the project. Because most of marketing activities are online, AIESEC
Hanoi spends time and efforts creating eye-catching promotion materials. The content of
the posts will focus on the needs of the customers such as: language and culture
exchange, fun, etc.
It is clear that from the start, AIESEC Hanois services require high level of consumer
involvement. This helps set the expectation that the ending results depend a great deal on
both the project and the efforts from the customers. High-contact level between
customers and the organizing committee also strengthens personal connections, which
reinforces customer satisfaction.
4. Service Product Analysis
4.1.Four characteristics
There are four characteristics of service: Intangibility, Inseparability, Variability and
Perishability (Kotler and Keller, 2007).
Intangibility elements lie in the pleasant attitudes of the organizing committees and the
international interns. Customers feel free to give any inquiries or concerns to the project
organizers.
Inseparability refers to the fact that services are produced and consumed at the same time.
In AIESEC events, the presence of the attendees has a great influence on the outcome of
each event. This could pose a challenge for the organizing committees as other
customers behaviors can determine the level of satisfaction of each individual.
According to Sierra and McQuitty (2005), the social exchange between service providers
and customers can create a sense of shared responsibility, which is positively related to
the emotions affiliated with the service exchange. In result, this can lead to brand loyalty.
As services are difficult to visualize and evaluate, quality control becomes of great
importance. AIESEC Hanoi takes pride in their great customer-oriented value which is
shared across the organization. However, a gap among the quality of different projects
can still be seen. A more standardized service throughout the organization has recently
been implemented in an attempt to have more consistent quality in different products.
Like any other services, AIESEC Hanois products cannot be stored or inventoried. Even
though at least 10 projects are organized during the year, there still exists a fierce
competition among students to be able to join the projects. Recognizing different demand
in different periods, AIESEC Hanoi has organized more projects during vacations to be
able to serve more customers.
4.2.Core and supplementary services
Core service of AIESEC Hanoi is the project experience. For each project, there will be a
set of core values that customers can learn. For example, in Vietnam Youth Icon project,
customers will develop their leadership skills and multi-cultural knowledge the most.
In terms of providing facilitating services, AIESEC Hanoi provides information about the
projects on Facebook fanpages so that customers can access any time that is convenient
to them. When they fill in the application form and pass the interview round, it represents
a special type of booking which entitles the customer to the project. Upon deciding to
join the project, customers will then transfer the project fee to the bank account sent to
their email or stated on Facebook fanpages.
Servicescape plays an important role in service delivering. In AIESEC events, the venue
is the most crucial factor. Thus, organizing committees always rents the venues from
well-known partners such as Summit, Talky English, Topica Edu, etc.
5. Current pricing strategy
The price offered by AIESEC Hanoi is relatively competitive and affordable for
Vietnamese students. With an interactive and international environment, diverse and
meaningful activities, AIESEC Hanoi currently is standing out among other counterparts.
AIESEC Hanoi does not offer any discounts, which can give customers an impression of
its high-quality products. The organization focuses mainly on improving their project
experiences for customers. In short, investing in the products itself is a wise and
sustainable strategy for this industry.
6. Current promotional strategy:
Online advertising: Since AIESEC in general and AIESEC Hanoi specifically is a
student-run organization, their budget for marketing as well as advertising is mainly
limited. As a result, they are only able to run advertisement on one the most ubiquitous
social networks in this day and age Facebook.
Public relations: AIESEC Hanoi has applied a widely used PR technique by collecting
testimonials from public firgures, setting parnership with other youth-run organizations,
universities, clubs.. like Ybox, VTV6,.. to build a strong foundation with students
community.
Direct marketing: After every project, campaign or contest, database of customers
(highschool and university students information) was gathered carefully and utilized for
the purpose of e-mailing about future projects.
Messages transmitted online- AIESEC Vietnams website: AIESEC Hanois website link
is integrated with the site of AIESEC in Vietnam having the same interface with AIESEC
Internaltional that demonstrates the alignment throughout this Organization all over the
world. All service and products of AIESEC Hanoi are represented professionally and
neatly through this channel, which can bring a friendly outlook and experience for
customer to explore.
New media including Youtube, Instagram, espeically Facebook are now becoming the
main marketing channels of this organization.
7. Evaluate the Methods by which Supply and Demand is managed
Demand for services varies in a number of ways and most capacity management
strategies primarily deal with the fluctuations of demand arrival, which is the number of
customers requesting the service at any given time, and the constraint on available
capacity. Normally service activities start from the reservation then comes the service
encounter which takes place with the help as well as the constraint of physical facilities.
In addition, labor and physical equipment are often needed in a large number to
sufficiently serve the customers. However, with regard to the management of demand and
supply of AIESEC, it is quite different from that of other service due to its distinctive
features and activities of GCDP projects. By and large, it can be said that the demand and
supply of AIESECs project, to some extent, is stable or at least predictable.
Supply management
10
Different
projects
Crosstraining
Local
supporters
Attendee who used to take part in project will comeback and support
activities as local supporters
With Global community development program, there exists a wide range of choices for
customers to choose from. In spite of the variation between those projects in terms of
purposes, time duration, main activities and the way each project is organized, the
valuable theme of "Youth development" and "Leadership Potential" is always placed in
the center of emphasis. This distinction has been a centric force that draw the youth to
come and join AIESEC environment throughout every year. In other words, the service
products may differ from each other but the core value of its remains, thus the demand of
customers can be met in one way or another. In addition to having various choices, the
frequency of holding each event like this is a means of stretching capacity levels.
Normally each project is organized at least twice on the annual basis. But due to the
excess demand of participants, some project can be held more frequently, such as Global
passport, which is held three or four time per year.
The problem with staff in AIESEC is also carefully dealt with in order to maximize its
capacity. Members are usually cross trained and work in a cross function team, then each
team will work separately and follow a certain project until it finishes. Besides, local
supporters, who once are attendees of previous projects are also called for help every
11
time a big event is announced. Basically, their primary role lies in promotion and
advertisement of those events, communicating them to university or school students.
Demand management
Patritioning
demand
Promoting
off-peak
demand
Limit
demand
Set the contrainst on number and quality of candidates (customers who want
to join any projects)
As has been said above, the various choices and the frequency of organizing GCDP can
help AIESEC not only with supply but also in shaping demand patterns of customers due
to its fixed and pre-announced schedules. However, there are some projects that occur
during off-peak seasons, especially those in final exams period can cause demand to
decrease. At that period, the promotion will be launched through many clubs of
universities or with the help of AIESEC partners. Moreover, via facebook, some mini
games, quiz answering for gift such as vouchers, books, project discount or free uniforms
are effectively used to stimulate the demand. Nonetheless, it is easy for customers, the
students and the youth, to find themselves filling in an application form and waiting for
an interview (and in most cases, paying a pre announced fee) to officially become a
participants of any projects. This is a procedure that organization staff does to control the
demand and ensure the numbers that is going to take part in events. Beside this purpose,
registration and interview also help to reduce customers variation of capacity (such as
English skill, teamwork,) by selectively choose suitable attendees and hence make sure
12
the quality and outcome of services can be jointly created by both staff members and
customers.
The symbol
reads the risk of excessive wait. In this case it points out the potential
risk particularly in any initial process. Its when customers come to check in and joing
opening activities. In the former case, because all the attendees are informed to come at
the same time but normally there are only one or two staff in charge of this part so they
may have to wait in a long queue. This problem can worsen the latter when attendees
need to wait for others to start the program.
-potential fail
point. First and foremost, the bottleneck can appear right from the beginning of process.
Due to its high contact nature of service, the process and outcome of the whole projects
depends greatly on both organization personnel and customers. Traditionally, AIESEC
projects have foreign volunteers or interns so English fluency is vital for anyone who
want to join. Attendee do not necessarily professional at English but at least need to have
basic communication skills, so if the selection part fail to elect suitable people, this can
pose a huge risk on frontline staff who directly work with customers. Next, when
attendees actually encounter the service by actively involving in the program with other
people (including both staff, foreigners and other attendees) the situation become more
complex. Because any projects pertaining to a certain topic (such as cross culture,
ASEAN, AEC, etc.) lack of basic knowledge from customers or complicated
communication using a lot of technical terms can disrupt the desired outcome. Last but
not least, the materials prepared for those activities and certificates for attendees need
13
much attention. Since those problem are realized when everything has already done, fail
to prepare means prepare to fail, customers will be dissatisfied.
In general, for the organization and any project, the preparation phase is of extreme
importance if this part has any troubles, the whole latter phases will be threatened.
14
Extremely
unlikely
likely
10
NPS is a simple mechanism used for checking the quality of the delivery of all programs.
It is a tool launched by AIESEC International whereby participants fill a simple survey as
shown above. Based on the score given, they would be classified as Detractors (1-6),
Passives (7-8) or Promoters (9-10). The aim is to get more or promoters but the idea is to
identify detractors to improve the service of AIESEC programs in order to get more
promoters whose stories can be showcased. NPS works because it focuses on the
emotional bonding of the referrer with people around him; moreover since the reference
require them to put personal reputation in the line so the results are reliable. One
noticeable thing about NPS is that it is used not only for customers but for AIESEC
members as well, who are considered a type of special customers. They will fill this
form quarterly and results will be analyzed for overall quality. The idea of evaluating
both customer and member experience is really creative and practical since it gives an
objective and clear view of those who participate in the program and those who directly
run it, hence the improvement can be expected to a higher level.
In addition to the particular measurements above, as a student-run organization with
network includes over 100,000 members in 133 countries and territories, the international
standard must be met, which is ensured by the Quality Control System. An exchange
quality subcommittee (XQSC) is held every half year at AIESEC national conferences to
ensure that each local entity is meeting the exchange requirements, and will make
necessary recommendations to the local entity to ensure that they improve their
processes.
9. Internal Marketing:
All members in this organization are not called employees as usual but talents as a
matter of fact that AIESEC invests and puts high priority over their most important asset
people. Every year, they design a reward and recognition program, in which the one who
performed with outstanding results will receive a discount from 50% to 100% to enjoy
company service. Furthermore, since AIESEC is a not for profit organization, all talents
will have no chance to experience salary or compensation but what makes they fulfill are
the strong sense of belonging, the feeling of self-actualization when they can contribute
wholeheartedly to the society.
10. Marketing strategy
Promotion:
16
Promotion
Strategy
Brand
Refreshment
Details
As a part of key strategy from AIESEC International, AIESEC Hanoi is of
no exception to implement a brand new look to achieve a globally aligned
value preposition along with digital globalization in order to deliver
comsistent messages with high credit, security to customers without any
conflict to each other.
17
18
Goal
Target
Channel
Message
19
considered. Hence, the fee of transportation and accommodation will be taken into
account.
Place:
Since service delivery is concurrent with its production and cannot be stored or
transported, the location of the service product assumes importance. Currently, AIESEC
does not have an official place to hold annual events and camps. However each projects
and events have different requirement of places, room for outdoor activities or
decoration, the numbers of attendees also varies so this inconvenience does not seem to
affect total outcome. Besides, AIESEC gets a lot of support from partners such as English
centers, Universities clubs in Hanoi, which normally free of charge. With proposal of
new future target segment, the problem just lies in finding a new location that allows ease
of access and the desire to make the effort to reach it. The suggestion is the school hall or
buildings which are center to target high schools.
People:
Because when any projects starts, it already has a team to follow until it is done, this new
strategy also has the same process. The OCP Organization Committee President and
other team members will together work out and run the projects as planned. When new
segment is formed, the factor People actually does not have a drastic change but its the
content that they aim at will.
Process:
Similar to the above factor, the process of service delivery can have some adjustment
depends on the content and purpose of the camp but basically the main parts will remain
unchanged not much. The process of service delivery is crucial since it ensures that the
same standard of service is repeatedly delivered to the customers. Therefore, based on the
service blueprint which provides the details steps to serve customers and the potential
problems already pointed out, the preparation phase is still stands out in importance.
Physical evidence:
20
Because physical evidence appearance affects not only the impression outsiders have of a
business but all the way that business functions, AIESEC also need to take care of this
matter carefully. First with staff members, everything will go as it does with costumed
uniform for each project. What needs more consideration is location. Unlike other
services, the attractiveness of a service location with sleek style or white lighting is not a
key factor which attracts customers. However a large building or spacious room must be
in use to meet the requirement of an active and comfortable environment. Besides, the
marketing materials of each camp (such as image, banner, standee, backdrop, etc.)
through internet or physically at any school should be designed in a pleasant or unique
way which can communicate the distinctive features of AIESEC.
11. Implementation:
21
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