Student Name: MAI ANH HA

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Student Number: 3 1 2 1 8 1 3
Course:
G Sode B S 6 1 1 1 Service Marketing
Management

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Campus of Study: GRADSCHOOL WEBLEARN

Assessment Item Title: BLUEPRINT EXERCISE

Word Count :
2,146 Due Date/Time: November 21st , 2010

Lecturer/Tutor Name: Vaughan Douglas

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 LIVE ON BRIGHT SIDE
I. Introduction
There is a big question that, in case of the mature state of the market, is there any chance for the new commer? Every questions has its
answer. In this Beeline case, that is the service delivery system.
Beeline is a new telecommunication company established in 2008 with the joint venture of Vietnam Ministry of Police and
Vimplecom, a giant in telecommunication in Russia. The mobile services industry in Vietnam has currently 6 big players operate
spreadly all cities. They are all well know brand with long time establishment in the mind of customers.
The target of service delivery system is to gain up to 1 million subcribers at the end of year 2010. The current market size deliver
feasible term for this target. However, with the big barrier to entry that those existing players have made, Beeline has to find its unique
way to survive and grow.
This main purpose of this Blueprint report is to analysis the current delivery system of Beeline company. Through the broad analysis,
based on achieved results and limitations, this report provides suggestions for change. Recommendations are made largely based on
4Ps strategies with brief service delivery system map.
II. Brief description of the key features of Beeline service delivery system
1. Environment brief analysis
a. Markets
Urban Rural
Population weight 30% 70%
Average annual income 1000 USD 500 USD
Average monthly expense on mobile service 15 USD 10 USD
Table 1. Personal expense on mobile service
The Vietnamses market now has about 40 million subcribers mostly lived in rural areas. The mobile communication services industry
gained about $4 billion each year.
Beeline focus deliver its services in urban cities.
b.Competitive environment
Five forces analysis
i. Degree of rivalry: is very high because of the following reasons:
- Major players such as Viettel Mobile, Mobiphone and Vinaphone, Mobilephone and Viettel are keeping large market shares already
- The services offered by players are the same and delivery strategies applied have no differences. For example, in 2009, Viettel
applied Tomato pakage, free add 100% value for charging cards, Beeline also applied BigZero pakage with no fee for internal calls
and SMS.
ii. Thread of substitute is quite low. The numbers of substitudes are various such as emails, home phones however, the price of mobile
communication service is considered to be cheaper, services faster and more convinent.
iii. Thread of new entrance is moderate due to market is on mature stage and the setup cost is high with complex requirements for
establish documents.
iv. Bargaining power of supplier is low because many supplier offer the same quality mobile equipment and the low switching cost
v. Buyer bargaining power is high due to simple and cheap swithch between operators.
c. Economic environment
Real fact shows that Vietnamese GDP has growth rate of 6% regardless to the global finacial crisis in 2008. This lead to the increase
in total revenue of the mobile telecommunication industry by 39% up to $2.8 billions. The numbers of subcribers are estimated
increased to 60 millions at the end of 2010.
2. Beeline service delivery system
a. Services offer
Beeline offer customers three types mobile communication services:
- Standard mobile services basicllyrelated to call and SMS activities such as call divert, sending and receiving messages, call waiting
and so on. This service is done by the connection of Beeline network with other domestic and international operators. Beeline
subcribers are connected world-wide.
- Value-added mobile services are supplementary services with various types such as normal ring tone services, waiting ring tone
services ( subcriber when making call, in stead hearing boring dial tones, can hear songs), MMS that let subcribers send images and
songs in the messages sending).
- Mobile data services that refer to GPRS service. This is a service that allow customers to connect to Internet services, surf webs such
as e-mail, e-bankking, Yahoo, Google by using their mobile phones.
b. Current Service delivery system
Beeline sets three channels of service distribution: (Lovelock, 2009)
- Traditional distribution channel: This channel includes chain of authorized showrooms and offices of Beeline in cities. This channel
focus on sales of Beeline numbers for new users, charing cards and some simple customers care services such as installation of new
subcribers.
- Non-traditional distribution channel: Beeline sell its prepaid cards for subcribers through non-authorised offices such as coffee
shops, grocery shops or super-merkets.
inn. This channel delivers prepaid card to subscriber
- Internet distribution channel: this channel is mainly done via the official Beeline website and focus on value-add services and data
services. The lists of ringtones, images are displayed on website with code for customers to download.

III. A service mapping of the service delivery system

1. Standard mobile service:
 a. Fisrt time customers’perspective: Resgister to use Beeline’s telecommunication network

Enter showroom Meet sale staff Choose pakage give personal Wait for account Try using service Payment Leave showroom
information active received

Contact
Person
Greet customers
Give information Enter customer Connect to central Help customer
about pakages information to switchboard use the service Receive pay Farewell guests
Advise customerssystem Send customer's Give customer
Prepare chairs for information service phone
customers numers

Support Billing
Process Give account Management Internet access Customer record
number for system
customer

Physical Parking spaces Appearance of Printing machine

Security guards
Evidence Showroom sale staff Computer system Mobile phone Pricing list Building exterior
exterior Furniture Brochues Documents Computer system Computer Business cardFront door
Front door Waiting chairs Price rate table Photocopy machine system Stairs
Security guards Newspapers Quick guide
Stairs Tea
 b. Frequent subcribers’ perspective: payment of monthly using bill
Enter showroom Meet sale staff Show bills give personal Payment Wait for payment Receive receipt Leave showroom
information process

Contact
Person
Greet customers
Ask customer Enter customer Receive money Connect to central
requirement information to switchboard Farewell guests
Insert customer system Send customer's Give customer
Prepare chairs for bill number payment service phone
customers numers

Support Billing
Process Give promotion Management Internet access Customer record
programs system
information

Physical Parking spaces Appearance of Print machine Security guards

Evidence Showroom sale staff Computer system Mobile phone Pricing list Building exterior
exterior Furniture Brochues Documents Computer system Computer Business card Front door
Front door Waiting chairs Price rate table Photocopy machine system Stairs
Security guards Newspapers Quick guide
Stairs Tea
 2. Value-added mobile service / Mobile Data service Map
Enter showroom Meet sale staff Tell requirement Choose service Give personal Wait to receive Payment Leave showroom
Ask question information service

Contact
Person
Greet customers
Connect to central Transfer service Help customer
switchboard to customer phone use the service Receive pay Farewell guests
Answer question Give customer
Prepare chairs for service phone
customers numers

Support Billing
Process Give advice Management Internet access Customer record
to customers system
Internet access

Physical Parking spaces Appearance of Printing machine

Security guards
Evidence Showroom sale staff Computer system Mobile phone Pricing list Building exterior
exterior Furniture Brochues Documents Computer system Computer Business cardFront door
Front door Waiting chairs Price rate table Photocopy machine system Stairs
Security guards Newspapers Quick guide
Stairs Tea
IV. Concise critique of Beeline service delivery system
1. Marketing Targets
- Gaining 3% market shares by attracting the numbers of 1,5 million subcribers at the end of 2010.
- Reach the ratio of 90% of potential customer’s awareness about the Beeline brand
2. Financial Advantages
Vimplecom,the parent of Beeline is the leader in the telecommunication services in Russia, that bring advantages of Financial for
Beeline to operate in Vietnam. Through the FDI investment type, Vimplecom invested about 1 billion dollars to Beeline network in
Vietnam. This investment has been awarded Golden Dragon medal in 2008 by Vietnam Ministry of Plan and Investment.
3. Non-financial Advantages
Comparing with other players, Beeline is a new commer with about 1 year of operation. However, Beeline has the biggest capacity
that can serve up to 6 million subcribers.
Flexible human resource pocily together with high payroll, Beeline attract many expertisers in the telecommunication services area.
This is competitive advantage of Beeline.
The remaining parent of Beeline, Ministry of Police, has strong and powerful relationship. This bring advantage for Beeline in dealing
with politics. All huge numbers of people working in Ministry of Police uses Beeline services.
4. Beeline service delivery system SWOT analysis
a. Strength
- Strong financial foundation from Vimplecom
- Large numbers of experts in telecommunication services area
- Good relationship of Ministry of Police
b. Opportunity
- Good awareness of potential customers to Beeline brand
- Huge market with about 40 million subcribers.
c. Threat
- Big competitors offer the same services with similar quality
- Vietnam country signed the WTO aggrangement about free trading that attract many other foreign investors enter in the
telecommunication services.
d. Weakness
- Beeline is very new player with little of experiences in customer service
5. Potential points for change in service delivery system
a. Target markets
At the beginning, Beeline set to provide its services in only 3 main cities of Vietnam as Hanoi, Ho Chi Minh city and Da Nang. Those
cities are dominanted by 3 big existing players so the competition is very hard, market reach to mature stage. Beeline need to think
about expanse its target to other cities to gain more market shares.
b. Target segmentation breakdown
Market segment at beginning is people aged from 15-60 living in urban areas also need to be expanded to rural areas which contain
about 70% of total population. Market segmentation is breakdown to 2 main groups for easier reaching:
- Group 1 includes customers with ages from 15 to 30 years old. This is booming generation, born in modern life. They are young, fast
update with technology and fashionable. They see mobile services as a mean to express themselves, not simple a way of
communication. However, the finance is their limitation. This segment is not stable because they easily switch to other brands which
is newer, cheaper or more stylist.
- Group 2 includes customers from 30 to 60 years old. They were born during the Vietnamese War with poverty and deprivation. They
tend to use mobile servcies as a communication way to serve their life and business, so demand high quality services. They are stable
segment with good finance.
c. Market positioning breakdown
Based ongreakdown of target segmentation, Beeline understands the values of customer groups as follow:
- Values of Group 1: cheap, fashionable, self-expressable
- Values of group 2: stable, high quality and premium.
Beeline differentiate itself when customers receive their values through using Beeline’ s services. Beeline change its geographic-
oriented strategies to pricing-oriented strategiesto attract as more customers as possible, expanse from urban areas with high income to
rural areas with low income but larger numbers of customers.
V. A service blueprint
1. Applying 4Ps marketing theory
a. Product lines strategies
Beeline adopt different service lines to different groups:
- Beeline Youth-line
This focus on group 1. This line offer both standard services and value add services. Young subcribers can use Multimedia message
type to send pictures and songs to others. They also can express themselves through various types of ringtones and wallpapers.
Internet connection is another attractive factor for youth line.
Requirement for this line is continously refresh the services, updated newest trend and technology and informed well to customers.
G-Premium line
This line focus on Group 2. All three types of Beeline services are combinated in this line. Fast and convinent Internet connection,
premium in customer care service, hot-line services are example of services in this line.
Services in this line do not change much over time. The high quality and stability are requirement. Any change is set to be free using
by subcribers to get their acceptance before final release.
b. Price strategies
Beeline sets its price as low as possible to gain more sbucribers. Suitable price strategies are adopted to keep existen subcribers and
attract new customers.
- Duration pricing strategy: subcriber increase their using time to pay less. The example is first 5 minutes cost $0.2 but second 5
minutes only cost $0.07.
- Time pricing strategy : the use of call and SMS in the evening is lowe than other time, Beeline releases attractive reduction in price
for mobile services such as GPRS services in the evening.
- Numbers purchase pricing strategy: Subcribers who buy a large numbers of services will get discount on prices. For example,
download 5 songs at fee of $1 per song will get 1 more free song.
- Discount pricing strategy for postpaid subscriber who pay the invoice on time.
c. Promotion strategies
Based on the services lines, Beeline adopt different advertising programs:
- Publicity
+ Approach used: posters and banners
+ Location: in street, walls of supermarkets, shopping malls
+ Target consumers: both group
+ Delivery content: Beeline’s image
+ Frequency: always everyday in 2 years
- Advertisement 1
+ Approach used : Television channels
+ Target consumers: group 1
+ Delivery content: fashionable, fresh appearance of Beelines in short advertisements.
+ Frequency: everyday in 4 months. Reduce to every 3 days in next 4 months.
- Advertisement 2
+ approach used: popular website
+ Target consumers: both groups
+ Delivery content: Beeline’s image and website address
- Advertisement 3
+ Approach used: daily newspapers, magazines
+ Target consumers : group 2
+ Delivery content: Beeline appear with promise of high quality,stability and convinence
- Sale promotion is adopted in authorised shops and offcies.
d. Distribution strategies.
This is the most important step, that lead to the change in service delivery system flowchart (that’s shown below)
- Make contract/ agreement with big trading company in Vietnam such as FPT company to become Beeline’s retailer in selling
prepaid cards and charing cards.
- Besides the traditional distribution system that force the customers come to the showrooms or Beeline’s offcies to register the
services, now Beelines build a professional website with fashonable images, full ranges of services list, prices and other information,
address of authorised offcies and hot-lines service. Customers only need to log on this website , choose services, then call to the center
to register, no need to go directly to showrooms.

2. Value-added mobile service / Mobile Data service Map after change

 Call to the central Meet service Tell requirement Choose service Give phone Receive service Try using
switchboard staff Ask question number service

Contact
Person Deduct
money from
Pick up phone Ask customer Transfer service Help customer customer
Greet cutomer phone number to customer phone use the service account
Answer question Offer help
line number

Support
Process Give advice Management Internet access Customer
to customers system record
Internet access

Physical Computer
Evidence Computer system Mobile phone System
Phone lines Phone lines Documents Computer system Computer
Photocopy machine system
VI. Conclusion
The mobile telecommunication services has growed rapidly in recent years. The market at the end of 2009 reached to the nembers of
43 million subcribers. This is attractive market for Beeline to operate in. However, with the hard competition from other big older
players in the market, Beeline has to find out its unique way to become differentiate.
Beeline’s service delivery system is well established based on various strength and opportunites. There are also changes need to be
taken to eliminate the wekness and threats.
With its core services of providing voice and data via wireless technology in mobile communication field, Beeline tries to achieve the
target of 1 million subcribers at the end of 2010. Operating with the position of the newest operator in this competitive market, Beeline
set out clear approach for its service delivery system to gain target market shares.

mendation for Change

References:
Books and Publication
- Lovelock, C., Wirtz, J. and Chew, P. (2009). Essentials of Services Marketing, Prentice Hall Pearson Education: South Asia,
Singapore.ISBN 13 978-981-06-7995-8
Websites
- Beeline website http://beeline.vn/vn/default.aspx
- Viettel Telecommunication website http://www.viettelecom.vn
- Mobile Telecommunication website http://mobiphone.com.vn
- Vina Telecommunication website http://vinaphone.com.vn