Baocaothuc T P

Year 2016 – 2018
MASTER OF MARKETING AND PROSPECTIVE
INTERNSHIP REPORT
PARTNERSHIP MARKETING PROGRAM FOR INCREASING SALES

OF VPBANK’S UNSECRED PERSONAL LOAN (UPL)
By: LE DIEU TRANG
Supervisor: PhD PHAM THI LIEN
6/20/2018
Acknowledgement
This report has been prepared for the internship that has been done in Viet Nam Prosperity
Joint stock Commercial Bank in order to study the practical aspect of the course and
implementation of the theory in the real field with the purpose of fulfilling the requirement of
the course of ISVN (Master of Marketing)
All aspect of the report that has been prepared have been work-shopped with VPBank’s
marketing team members who have provided extensive input and supportive participation.
I would like to pay gratitude, and want to give especial thanks to our respected superviser Dr
Pham Thi Lien It was her encouragement, patience, and valuable feedback that enabled me to
complete this work.
I am also deeply indebted to my academic supervisor, Mr Sandeep Deobakta, Head of retail
Banking Division at VPBank. The support that he provided motivated me to think more
broadly about associated concepts and helped expand my understanding of product as well as
consumers’ insight. Invaluable discussions we held stimulated my enthusiasm and
imagination in the research process.
Research has been carried out with the support, cooperation and assistance of VPBank’s
customers that have been asked to participate in the study. They have spent a significant
amount of time and resources on providing input.
This project would not have been possible without the kind support and help of many
individuals. I would like to extend my sincere thanks to all of them
1 Chapter 1: Introduction | Year 2016 – 2018

Contents
1 Chapter 1: Introduction ................................................................................................................... 7
1.1 Background of the study .......................................................................................................... 7
1.2 General objectives of the study ............................................................................................... 8
1.3 Methodology of the study ........................................................................................................ 8
1.4 Scope and Limitation of the study ........................................................................................... 8
1.5 Thesis outline .......................................................................................................................... 9
1.6 Contribution and future study .................................................................................................. 9
2 Chapter II: Overview of unsecured personal loan product and partnership program .................... 11
2.1 Bank and it activities ............................................................................................................. 11
2.2 Unsecured lending market ..................................................................................................... 11
2.2.1 Unsecured personal loan................................................................................................ 11
2.2.2 Unsecured lending market ............................................................................................. 11
2.3 Partnership in marketing strategy .......................................................................................... 13
2.3.1 General view.................................................................................................................. 13
2.3.2 Partnership approach ..................................................................................................... 14
Partnership approaches can be broken into three levels of collaboration ...................................... 14
3 Chapter 3: Overview of VPBank ................................................................................................... 16
3.1 Historical background of VPBank ......................................................................................... 16
3.2 Mission, Vision, Development Strategy and Core value of VPBank .................................... 17
3.3 Organogram of VPBank ........................................................................................................ 19
3.4 Organogram of Retail Banking Division and Sales distribution............................................ 20
3.5 Financial performance of VPBank (Retail Banking Division) in 2017 ................................. 21
3.6 VPBank’s UPL current situation and problems ..................................................................... 23
3.6.1 SWOT analysis of VPBank’s UPL ................................................................................ 23
3.6.2 Competition situation in unsecured lending market ...................................................... 24
4 Chapter 4: Qualitative and Quantitative study............................................................................... 28
4.1 Objectives of qualitative and quantitative study .................................................................... 28
4.2 Qualitative study ................................................................................................................... 28
4.2.1 Sample of the study ....................................................................................................... 28
4.2.2 Data collection method .................................................................................................. 28
4.2.3 Model of interview guide: Annex 1 ............................................................................... 28
4.2.4 List of respondents: Annex 2 ......................................................................................... 28
4.2.5 Findings ......................................................................................................................... 28
4.2.6 Summary findings from qualitative study ..................................................................... 33
4.3 Quantitative study.................................................................................................................. 35
4.3.1 Model of questionnaire: Annex 3 .................................................................................. 35
4.3.2 Research objectives recall ............................................................................................. 35
4.3.3 Data analysis.................................................................................................................. 35
5 Chapter 5: Recommendation and partnership plan ........................................................................ 45
5.1 Recommendations: ................................................................................................................ 45
5.1.1 Step 1: Product strategy ................................................................................................. 45
5.1.2 Step 2: Target partner identify ....................................................................................... 47
5.1.3 Step 3: Partnership program Development .................................................................... 49
a) Sales forces ............................................................................................................................ 49
b) Product .................................................................................................................................. 50
c) Process................................................................................................................................... 50
d) Marketing and promotion ...................................................................................................... 50
6 Chapter 6: Implementation and result ........................................................................................... 58
6.1 Implementation of the partnership program .......................................................................... 58
6.1.1 Partner collaboration channel ........................................................................................ 58
6.2 Number of partners that VPBank collaborate in pilot time ................................................... 59
6.3 UPL disbursement through parnership channels ................................................................... 61
6.4 Lesson learns ......................................................................................................................... 63
6.4.1 Key challenges .............................................................................................................. 63
6.4.2 Key lessons .................................................................................................................... 64
7 Chapter 7: Overall conclusion ....................................................................................................... 65
Reference list ..................................................................................................................................... 66

Table of Figures
Figure 2-1 Partnership pyramid ............................................................................................................. 14
Figure 2-2 Partnership approach ........................................................................................................... 15
Figure 3-1 VPBank branches allocation ............................................................................................... 16
Figure 3-2 VPBank organization chart ................................................................................................. 19
Figure 3-3 VPBank Retail Banking Division organization chart .......................................................... 20
Figure 3-4 Business Regions of Retail Banking Division ..................................................................... 21
Figure 4-1 UPL customers’s loan purposes ........................................................................................... 35
Figure 4-2 House construction and decoration – specific purposes ..................................................... 36
Figure 4-3 Design consultancy service using ....................................................................................... 36
Figure 4-4 Suppliers chosen by customers for furnitures ...................................................................... 36
Figure 4-5 Channel for finding information about suppliers ................................................................. 37
Figure 4-6 Electronics market share in 2016 ........................................................................................ 38
Figure 4-7 Specific loan’s purposes among customers borrowed for their business ............................. 40
Figure 4-8 Source for input materials .................................................................................................... 40
Figure 4-9 Age of customers who borrowed money for personal hobbies ............................................ 41
Figure 4-10 Customers’ personal hobbies ............................................................................................. 42
Figure 4-11 Suppliers for technology devices ....................................................................................... 42
Figure 4-12 Age of UPL customers....................................................................................................... 43
Figure 4-13 Income of UPL customers ................................................................................................. 43
Figure 4-14 Income of high income UPL customers............................................................................. 43
Figure 4-15 Age of high value customers ............................................................................................. 43
Figure 4-16 Loan’s purposes of high value customers ......................................................................... 44
Figure 5-1 Benchmark of speed, loan condition and interest rate for UPL customers .......................... 46
Figure 5-2 List of partner for each fields ............................................................................................... 48
Figure 5-3 Target partner for business .................................................................................................. 48
Figure 5-4 Target partners for technology devices ................................................................................ 48
Figure 5-5 Target partners for motorbike .............................................................................................. 49
Figure 5-6 Target partners for spa, beauty, cosmetic ............................................................................ 49
Figure 5-7 Target partners for education ............................................................................................... 49
Figure 5-8 Example about promotional merchandise ............................................................................ 51
Figure 5-9 Collaboration tools for each level of partnership ................................................................. 52
Figure 5-10 Partnership marketing plan ................................................................................................ 53
Figure 5-11 KPIs of partnership development (number of partners) ..................................................... 54
Figure 5-12 KPIs of partnership development (UPL disbursed through partnership channel) ............. 55
Figure 5-13 Timeline for partnership development program ................................................................ 56
Figure 5-14 Projected cost for parnership development program in 2018 ............................................ 57
Figure 6-1 Number of partners after 3 months implementation ............................................................ 60
Figure 6-2 Number of partners compared to target ............................................................................... 61
Figure 6-3: UPL disbursement through partnership channel (Unit: Billion VND) ............................... 61
Figure 6-4 UPL disbursement, channels breakdown (Unit: Billion VND)............................................ 62
Figure 6-5 UPL new customers over 3 months – channels breakdown (Unit: number) ........................ 63

Abstract
This is the internship report on Partnership program to increase sales of unsecured personal
loan product (UPL) in VPBank. The objectives of the study are to study consumers’s loan
using behavior, to identify potential partner and the opportunity and seasonality to collborate
with them. Both primary and secondary data are used to prepare this report.
Companies across many industries are finding that more value comes from strategic
partnerships, where two companies have a vested interest in and commitment to creating a
mutually beneficial relationship that returns value to both the end customer and to the partners
themselves. Strategic partnerships extend beyond the initial deal and establish a culture of
sharing between partners. McDonald’s building global co-promotions with Coca-Cola and
Walt Disney to Nike building trainers that talk to your iPhone. But alliances can bring
significant benefits for small firms too, as Andrew Armour explains. Laptops that are bundled
with anti-virus software. The local gym membership giving you discount vouchers for a
sports store when you join. And more simply, the pub working with the local sports clubs so
that the after-match drink is always held in the right bar.
A collaborative culture takes time and effort to develop, but it works — and the numbers
prove it. Understanding this trend among market, I spent my 3 months of internship at
VPBank to do researches, broaden my knowledge and get advices from professors to
develope a partnership program for one strategic product of VPBank - UPL
Before drawing any conclusion based on this report it may be noted that the report was
prepared in a very short term and there is lack in data. But still the report may be useful for
designing any further study to build much more potential and effective partnership program
for VPBank and for other products of the Bank.

Abbreviation and Elaboration
VPBank/Bank Vietnam Prosperity Joint Stock Commercial Bank
UPL Unsecured personal loan
Division of activities which deal with individual
Retail Banking customers. Banking services which are regarded as retail
Division include provision of savings and transactional accounts,
mortgages, personal loans, debit cards, and credit cards
A product of collaboration between bank and insurance
Bancassurance
company
The amount the borrower promises to repay, as set forth
Loan amount
in the loan contract
Period from the date of disbursement of loan to the date
Loan tenor
of the last payment or the date of closure of loan
POSM Point of sales Materials
PBT Profit before tax

1 Chapter 1: Introduction
1.1 Background of the study
This report has been prepared as a mandatory requirement of the Master of Marketing and
perspective program under International School, Vietnam National University, Ha Noi and
Nantes’ University. This report is entitled “Partnership program for increasing sales
performance of VPBank’s unsecured personal loan (UPL)”. The internship supervisor was Dr.
Pham Thi Lien – Professor of International School, Vietnam national University, Ha Noi.
Over the past decade, VPBank has always sought to become the leading retail banking in the
Vietnamese Banking sector. With that ambition, VPBank’s resources are focused on the
following strategic segments: Individual customers, small and medium enterprise customers,
small business customers, consumer loans. For each of these segments, VPBank has the
corresponding sales channels to provide products and exploit customers.
Among strategic products of VPBank in the period from 2012 to 2017 and from 2017 to 2022,
unsecured personal loan (UPL) is considered to be the most important product. This explains
why VPBank has different kind of sales channels for this product. In 2016, FE credit, a
subsidiary company of VPBank operating in parallel with retail banking Division of VPBank
in Unsecured personal lending sector, officially compete each other
In the year 2017, VPBank had outstanding growth in consumer credit, however the growth
came mainly from FE – credit (a subsidiary company) which made a big contribution to the
bank total earning and account for more than 48% market share of consumer finance
companies1. With consumer loans, VPBank’s Retail Banking Division has slower growth rate,
not competitive enough to financial institutes and other Bank in the market.2
The experts in this fields believed that the challenge in 2018 will be greater as more and more
banks come into this sector. Despite of great potential for growth in Vietnamese market,
customers for this segment is no longer plenty because of customers seeking and stalking
activities of financial institutes.
In addition, banking industry has changed in the last 10 years, especially in the mindset about
the position of bank and its customers. If in the past, customers have to humbly ask for their
loan from bank, nowadays, bank must rush to invite customer to borrow money.
1
VPBank’s report made by CEO in 2018 Annual General Meeting of Shareholders https://baomoi.com/vpbank-
tham-vong-gi-voi-tin-dung-tieu-dung/c/25327796.epi
2
[MW Special Report] Vietnamese consumer finance market https://thelowdown.momentum.asia/plenty-
room-growth-remains-vietnamese-consumer-finance-market/
For seeking customers and optimizing selling opportunities and positioning Unsecured
consumption loan - UPL product in consumer lending market, Retail Banking division –
VPBank believe that it is important to understand customers and offer outstanding value
proposition of the product. Specifically, cooperation with partners, enterprises, brands to
reach customers, sell product is a way to increase resource, reduce costs.
As such, this marketing task is aimed at studying opportunities and pointing out plans for
cooperation and developing relationships with partners to boost sales of consumer credit
products through partner network.
1.2 General objectives of the study
The study has been undertaken with the following objectives:

• To build and implement PARTNERSHIP strategy (one P of marketing mix) to increase
sales performance of VPBank’s unsecured personal loan (UPL), therefore evaluate the
efficiencies of the plan and adjust it for a better application on a large scale
1.3 Methodology of the study
Both primary data and secondary data were used in order to make the report. Based on prior
research report, author proposes a marketing mix plan. Then the practical experiences and
observations from the project work for during internship will be compared with literature.
Finally, quantitative research and customers’ awareness point at the end will lead us to the
answer.
(a) Primary resource
• Qualitative study: In – depth Interview with customers of VPBank
• Quantitative study: Surveys via email or phone
• Observing the effectiveness of marketing mix strategy on sales performance of the bank in
a period
(b) Secondary resource
• From prior research reports
• Journal and article related to banking industry and the similar topics
• Bank’s monthly reports
• Website information
1.4 Scope and Limitation of the study

This study focuses on UPL product of VPBank. Market analysis has been carried out in
VPBank’s business Region, where VPBank’s branches are located.
Although the research has reached its aims, there were some unadvoidable limitations.
First, because of the time limit, this research was conducted only on a small size of population
who once had UPL loan with VPBank. Therefore, to generalize the result for larger groups,
the study should have involved more participants.
Secondly, due to limitation of finance resource and loan seems to be a sensitive issue to
customers, they are not totally willing to answer all of the question. Some of them did not tell
the truth or reject answering.
Thirdly, partnership is a take – time – strategy, so with only 3 months of implementation and
evaluation, the result migh not reflect 100% the effectiveness of the strategy.
1.5 Thesis outline
This report is divided into six chapters.
Chapter 1: The first chapter of this study deals with introduction that presents the objectives,
methodology, and scope of limitation of the study.
Chapter 2: In order to understand the Bank on which the study is carried on, the second
chapter of the study deals with some theoretical concept about profile of Vietnam Prosperity
Joint Stock Commercial Bank (VPBank).
Chapter 3: The third chapther is about the conceptual framework of UPL product and UPL
sales situation in VPBank, the issue that leads me to this study and the opportunity of
partnership in the mission of increasing UPL sales.
Chapter 4: The fourth chapter is about different types of analysis and finding on customers’
behavior and potential partnership for VPBank.
Chapter 5: The fifth chapter is about conclusion and recomendation for partnership program
which are drawn by analysis of whole study.
Chapter 6: The final chapter, the implementation of partnership program in pilot phase, the
initial result and conclusion which is the base for partnership program in VPBank for the next
phase will be presented.
1.6 Contribution and future study
1.6.1. Contribution to VPBank

• The study contributes to identify potential goods/services suppliers based on

customers behaviors.
Behavior segmentation is defined as the act of grouping customers based specifically on how
they act as consumers when making purchase decisions. Behavior segmentation is the most
difficult but effective type of segmentation. Behavioral segmentation helps understand how
different groups of customers should be targeted with different offers, at the most appropriate
time through their preferred channels. Researcher can use historical behavioral patterns to
predict and influence future customer behavior. Moreover, smarter decisions will be made on
how to best allocate time, budget and resource by identify high value customer segment, high
purchase season with initiatives with the greatest potential business impact. These benefits
will be shown in this study, in scope of partnership marketing strategy.
Specifically, VPBank can through this study narrow the most commonly suppliers for
customers purchase demand to identify potential partner for partnership program;
Understanding purchase season to make partner link plan to optimize resource and save costs;
And finally predict customer purchase in the future to offer suitable financial support on time.
• Examine effectiveness of the partnership marketing strategy and make adjustment if any.
There are so many factors influence sales’ decreases or increase such as: Sales staff
incentives, product policy, law, credit regulation, market, competitor, etc. Putting partnership
program in a separate study to examine sales through this channel is the only way to exactly
evaluate the effectiveness of the plan.
1.6.2. Contribution to customers
• After this study, customers can totally expected to receive adequate financial solution for
their needs
• Full package product can be provided to customers through only one channel, supplier or
bank
• Customers are able to use products/services which are guaranteed by the Bank.
1.6.3. Future study
• Researcher can do deeply research to understand: the different in purchase behaviors of
customers between different geographic region, demographic, perception, loyalty, etc. to build
different message, marketing channel, promotion program, product policy, etc. for different
segments.

2 Chapter II: Overview of unsecured personal loan product and partnership program
2.1 Bank and it activities
• Bank is a financial institution authorized by a government to accept deposit, pays interest,

clears check, makes loans, acts as intermediary financial transactions and provides other
financial services to customers.3 Bank plays an essential role in the growth of an economy of
a country.
• Bank operates by borrowing funds – usually by accepting deposits or by borrowing in
money markets. Bank borrows from individuals, businesses, financial institutions, and
governments with surplus funds (savings). Bank then uses those deposits and borrowed funds
(liabilities of the bank) to make loans or to purchase securities (asset of the bank). Bank
makes these loans to businesses, other financial institutions, governments (that need the funds
for investment or other purposes). Interest rate provides the price signals for borrowers,
lenders, and banks.
2.2 Unsecured lending market
2.2.1 Unsecured personal loan
UPL is one of the lending products that are approved without the need for collateral. Instead
of pledging assets borrowers qualify based on their credit history and income. Bank does not
have the right to take physical assets (such as home or vehicle) if borrowers stop making
payment on unsecured loans.
- Customers promise to pay but they do not have to back up that promise by pledging collateral.
- Customers can apply for an unsecured personal loan when they need cash for: Wedding,
travelling, education, shopping, etc.
- Customers’ credit limit can be different with different banks. However, they can absolutely
borrow up to hundred millions as long as your profile meets the bank’s requirements.
2.2.2 Unsecured lending market
Unsecured lending market starts to grow strongly in recent 3 years, take its source from the
change in consumers’ behavior and high demand on installment plan among medium income
consumers. In which, the habit of borrowing from relatives, friends or black market gradually
3
Definition by http://www.businessdictionary.com
11 Chapter II: Overview of unsecured personal loan product and partnership program | Year
2016 – 2018 MASTER OF MARKETING AND
PROSPECTIVE
switch to borrow from financial institutes
“Golden population” period, in 2016, Vietnam has approximately 55 million of people who
aged from 20 to 594. This segment does not have need for big loans; focus mainly on personal
consumption, household goods and vehicles. Income growth with average speed each year is
about 13.2%, especially in urban areas, stimulate customers to spend a lot for valuable
products and be capable of accepting interest rate up to 30-40% for not big scale - unsecured
loans. High interest rate is still the matter of concern for consumption lending activity, but
cannot be an obstacle to the indispensable development of this financial product because of its
benefit – to satisfy consumers’ personal demands before they can be able to pay by their
income.
With the market share of only 5-10% of total outstanding loans, the balance of market for
consumer credit in Vietnam is still very large. This rate in developed country
Stoxplus Company has studied and surveyed more than 2,000 consumers in 12 provinces/
cities. The result show that while many people have psychological anxiety when dealing with
the service of financial institution; but a part of consumers, especially young people are in
increasing demand for this service.
62.4% of respondents said that they had not used consumer loans. The reasons are they do not
want to owe debt and worry about the condition of loan.
But 47.8% of those who never used consumer loan in the survey responded that they were
willing or willing to borrow for consumption if they needed it. 5
For those who have used consumer loan, the factors that influence customers’ choice toward
financial institutions include: Loan policies (Clear, transparent, easy to understand); factors
that create the sense of friendliness (incentives, attitude of sales staff), convenience of service
(flexible loan, quick transaction).
In addition, the desire for lower interest rate and simpler loan procedure are also the factors
that borrowers expect. The report also noted the fact that people still keep the habit of
thinking to relatives in priority.
4
CIA World Factbook - This page was last updated on January 20, 2018
5
Report on consumption loan market in Viet Nam by TPBank
PROSPECTIVE
2.3 Partnership in marketing strategy
2.3.1 General view
According to Mike Burnette – the Founder and President of Partnership Source: “Pure
partnership marketing is a symbiotic relationship between two or more marketing entities. It's
not a relationship where one party is purely selling goods or services to the other but a
relationship where parties are utilizing their own assets to assist the marketing efforts of each
other.”
In today's competitive world of brand marketing, using the power of partnership marketing to
gain marketing exposure and utilize new distribution channels is not only smart but also an
essential marketing tool for businesses who want to remain competitive in today's constantly
changing marketplace. As corporate and marketing budgets are always an issue, partnership
brand marketing programs provide a way to grow business and acquire new customers and
reach new market segments
Partnership brand marketing brings two companies and brands together—each with its own
brand equity and its own distribution strength. Whether teaming a fast food restaurant with a
movie, pairing cereal with toys, or aligning a car manufacturer with a theme park to capture
the family segment, partnership brand marketing creates strategic alliances for companies that
reach areas in which they may not normally compete—providing more marketing exposure
and ultimately gaining new customers.6
True partnership brand marketing programs are more than just promotions. When carried out
at a strategic level, partnership marketing can be expansive and deliver its full potential.
Strategies can involve all elements of the marketing mix and thus have an impact on a
company's overall marketing message, its advertising programs, as well as product packaging
and merchandising. Partnership marketing programs can also create joint sales and
distribution opportunities, broader in-store merchandising, more compelling packaging and
marketing material and overall offer stronger value to the consumer.
Creating strong, relevant and effective partnership brand marketing programs can be a
cornerstone of every company's marketing plan. Partnership brand marketing can actually
6
According to “How strategic partnership brand marketing can boost business” by Leeanne Rambin
PROSPECTIVE
affect and contribute to all elements of the marketing mix, including product and service
offerings, price, locations, distribution, and promotions. For example:
Partnership marketing can affect the actual product or service, increasing the overall value
and providing stronger benefits to consumers
Partnership marketing adds value to the overall price element by delivering a higher level of
perceived value and providing consumers more reasons to purchase
Partnership marketing impacts the location and distribution element, as it can open up new
places to offer services or sell product and gain shelf space
2.3.2 Partnership approach

Partnership approaches can be broken into three levels of collaboration
Figure 2-1 Partnership pyramid

Low collaboration: Medium High collaboration: fully
Simple transactional collaboration: integrated
Partially integrated
Customer o Receive benefits o Salespeople are o Customers have
experience from both bank and trained to complete, bundled solution
suppliers understand and available from one provider
o Information is deep fulfill customers’ o Partners selling
and broad about needs company’s solutions are
PROSPECTIVE
banking and consuming o Credit approval experts in the offerings and
products based on deliver high quality
o More confident transaction history customer service
because suppliers are record at suppliers
verified by bank in database
advanced
How o Integration of o Customer o Partnerships jointly
VPBank and technology and data satisfaction studies deliver solutions
supplier kept to a minimum conducted with o Partners pull each other
work o Share profit and cost partners’ into deals to better serve
together to provide customers customers customers
lower price products. o Partners are o Co-marketing efforts
mutually invested driven by partners
and partnerships
are mutually
beneficial
Figure 2-2 Partnership approach
Note that: depending on each supplier we decide the level of collaboration. Not necessary the
partner must go from low to high. They may immediately be in high collaboration with
VPBank.
PROSPECTIVE
3 Chapter 3: Overview of VPBank
3.1 Historical background of VPBank7
Vietnam Prosperity Joint-Stock Commercial Bank (formerly known as Vietnam Joint-Stock

Commercial Bank for Private Enterprises) was established on August 12th 1993. In 25 years
of operations, VPBank has increased its charter capital to VND 15,706 billion, expanded the
number of transaction points to over 219, and grown its workforce to more than 24,000
employees.
Figure 3-1 VPBank branches allocation

VPBank is taking steps to reaffirm its reputation as a dynamic, financially stable bank which
is responsible to the community. 2017 marked the end of VPBank’s five-year journey to
become one of the leading commercial joint-stock banks in Vietnam, with splendid results in
terms of both scale and profit. VPBank also reached a historic milestone, listing nearly 1.5
billion shares on the Ho Chi Minh City Stock Exchange (HOSE), which grabbed significant
7
According to History of VPBank on http://www.vpbank.com.vn/
16 Chapter 3: Overview of VPBank | Year 2016 – 2018
attention from both domestic and foreign investors.
VPBank’s remarkable growth is vividly illustrated by the expansion of its branch and
transaction office network and the diversity of sales and distribution channels.
With the motto “all for customers”, the layout, service model, and amenities of transaction
points have been completely restructured, and VPBank’s products and services have been
continually improved and combined with numerous tools to increase customer benefits. This
has contributed both to satisfying existing customers and attracting new customers, thereby
rapidly expanding VPBank’s customer base.
The Bank has always been the market leader in applying advanced information technology to
its products, services, and operational systems. Along with building a strong and effective
corporate culture, core human resources management systems have been developed and
implemented at VPBank, and the Bank has taken steps to develop an independent, centralized,
and specialized risk management system which meets international standards and aligns with
the its business strategy. While complying with international best practices in corporate
governance, VPBank has also refined its organizational structure according to a clear and
transparent corporate governance policy.
With constant efforts, VPBank’s brand has become increasingly strong, which has been
affirmed by the receipt of many prestigious awards. In 2017 alone, VPBank was presented
with 20 such awards.
Brand Finance, the top independent branded business valuation consultancy, valued the
VPBank brand as one of four most valuable bank brands, and the 22th most valuable
enterprise brand in Vietnam.
These awards once again demonstrate VPBank’s prestige and the quality of its products and
services in Vietnam’s banking and financial markets, as well as reaffirming its development
strategy. VPBank will continue to focus on rejuvenating its products and services to bring
outstanding benefits to customers and improve quality to meet international standards.
3.2 Mission, Vision, Development Strategy and Core value of VPBank
As one of the earliest-established Joint-stock Commercial banks in Vietnam, VPBank has

achieved steady development throughout its history. Especially since 2010, VPBank has
grown dramatically with the development and implementation of the strategic transformation
program diligently with support from one of the world’s leading consulting companies.
Following this strategy, VPBank aims to become one of the 5 leading joint-stock commercial

banks and one of the 3 leading retail joint-stock commercial banks in Vietnam by 2017. This
vision is realized through the two-pronged strategy as follows:
• Aggressive organic growth, focusing on personal and SME customers, and exploiting
opportunities in the segment of large business customers and consumer credit.
• Building strong foundation systems in terms of organization, human resources, technology,
operation, etc.
The support for the implementation of the above strategy is the VPBank corporate culture
which is nurtured and built on six core values:
• Customer Focus;
• Productivity;
• Ambition;
• People Development;
• Trust;
• Make the Difference.
The achievements of this transition period have determined the right strategy, with the
positive changes of image, service quality, professionalism, etc. The trust of customers for
VPBank has also strengthened by the constantly increasing number of new customers and
capital mobilization. More importantly, VPBank is becoming a desirable destination for talent
in the banking and finance industry. This key element has been, and will become VPBank’s
strategic weapons in the journey towards becoming one of the 5 leading joint-stock
commercial banks, and one of the 3 leading retail joint-stock commercial banks in Vietnam by
2017.
VPBank believes that its above-mentioned vision and strategy will help the Bank to achieve
its mission to maximize customers’ benefits, attach special importance to the interests of
employees and shareholders, build a strong corporate culture, and contribute effectively to
community development.8
8
According to Mission, Vision, Development Strategy and Core value of VPBank on
http://www.vpbank.com.vn/
3.3 Organogram of VPBank
Figure 3-2 VPBank organization chart9
9
VPBank’s regulation or organization chart – Internal document
3.4 Organogram of Retail Banking Division and Sales distribution
Figure 3-3 VPBank Retail Banking Division organization chart

Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7
Ha Noi North North Red River South Ho Chi Mekong
mountains Central Delta Central Minh city Delta
and Coast Coast (South East)
Midlands and Central
Highlands
Figure 3-4 Business Regions of Retail Banking Division
3.5 Financial performance of VPBank (Retail Banking Division) in 2017
At the end of its strategic five-year period, VPBank has become one of the five largest retail
joint stock commercial banks in Vietnam by revenue and profit, of which the Retail Banking
Division accounted for 50%. Following the successes of previous years, the income from
retail banking in 2017 was on target and up 66% year-on-year. VPBank has also developed
business strategies and product policies for optimal profitability using a Single Account
Profitability model. As a result, PBT grew impressively by over 100% year-on-year. In 2017,
the Bank launched successive initiatives to make products more suitable and attractive to
customers, resulting in the customer base increasing significantly to more than 2.7 million,
and producing 83% growth in loan balances. Together with credit growth, the Bank also
launched several community-oriented projects and products to promote sustainable
development for customers and society.

2017 saw significant growth in credit cards, in both number of cards issued and card
spending. VPBank rose from fifth position in 2016 to third by the number of cards issued and
to second in card spending. By year-end, 198,000 cards had been issued – 132% year-on-year
growth – while card spending continued to hit new milestones and surpassed VND 2 trillion
per month. The ‘One million cards by the end of 2019’ project was launched and VPBank is
confident of reaching this target. One of the key drivers of this success is proper, customer
centric design and the presentation of credit cards with an understanding of the characteristics
and spending habits of each customer segment. Besides affluent and middle-class customers,
the Bank has also designed credit cards for low-income customers, especially workers, giving
all customers the opportunity to experience simple and convenient payments with plenty of
special offers. As a result, VPBank received the ‘Best Customer Segment in Asia Pacific
2017’ award from MasterCard. Similar to credit cards, VPBank wants to approach every
segment and offer financial solutions to low-income customers. A wide range of unsecured
loan products dedicated to teachers, hospital staff, and low-income workers were launched
and received wide positive feedback from customers. In December 2017, the Bank was given
the ‘Best Consumer Finance Product’ award by The Asian Banker for the second time. In
addition, the Bank’s networks of real estate partners and auto dealers have continued to
expand to provide customers with comprehensive and easily accessible offers and
experiences. Deposit and fee-based products also brought success, with a 15% increase in
deposit balance compared with the start of the period. Payroll stimulation strategies began to
produce positive results with the number of current accounts increasing by 260,000 year-on-
year, cross-sales contracts nearly doubling, and the mean number of products held by each
customer increasing from 1.48 to 1.63. With remarkable bancassurance achievements driven
by a change in the bancassurance sales model, AIA Vietnam decided to enter into a 15-year
exclusive bancassurance partnership with VPBank on October 23, 2017 – the largest deal of
the year in the market. Besides life insurance, VPBank now also offers customers health
insurance products from other partners, notably terminal illness insurance. To lead the digital
banking trend, the Bank launched several projects to digitalize key products, including credit
cards, UPLs, and deposits. The highlight is the ‘Dream’ project, an application that allows
customers to manage personal finances and creates a savings roadmap with support from the
Bank to help them realize their dreams as quickly as possible. VPBank has also developed a
partner ecosystem, in which the Bank is a link between customers and suppliers, helping to
meet customers’ varied needs. Focusing on the affluent segment has been one of the Bank’s

key strategies. In 2017, the Affluent Banking project was implemented with advice from
Arete. The Bank also offers professional services such as wealth management to this segment,
in addition to deposits. VPBank is proud to be the first bank to have a VIP lounge at Noi Bai
International Airport for affluent customers, which tentatively will be put into operation in
early 2018. VPBank believes that these activities will open up the opportunity to unlock great
potential from affluent customers. In addition, the organizational structuring and redesign of
the alternative channel model (now Direct Sales), which started in September 2017, has begun
to produce 66%5 INCOME GROWTH IN 2017 21 positive results. The number of credit
cards issued was up 50%, the number of payroll accounts doubled, and credit card sales
productivity increased by 60%. In 2018, VPBank will implement an ‘Alphabet Strategy’ for
retail banking with five components: Affluent (focus on affluent customers), Bancassurance
(promote the growth of exclusive bancassurance products), Cards (promote the growth of
credit cards, Digital (continue to speed up the digitalization process), and Ecosystem (develop
a diverse partner ecosystem).10
3.6 VPBank’s UPL current situation and problems
3.6.1 SWOT analysis of VPBank’s UPL
S – Strengths W – Weaknesses
(1) Wide distribution network (1) Ability of bad bank management
With more than 200 transaction units, 5000 Along with high risk segment targeted, bad
sales staff in 40 cities and provinces of Viet bank proportion of VPBank is alway stay at a
Nam, opportunity to develope a wide high level. How to reduce bad bank firgure is
partnership network is great. always a matter of concern of VPBank
(2) Diversified products (2) Lack of customers resource
VPBank – Retail Banking has a porfolio of Previously, VPBank targeted to individuals

more than 30 different types of products who are located near VPBank branches, they
(saving, insurance, account, credit, loan, have low income, needing a mortgage for
bond, etc.) consumption needs. But the resources is now
(3) Open risk appetite running low and the Bank need to find the new
The diffrence that VPBank is following is one.
10
VPBank annual report - 2017
“business taste” targeting high – risk
segements with high return. Unsecured
lending is a high risk product, and focus on
it is going in the right direction of VPBank
O – Opportunities T – Threats
(1) Unsecured lending market is

projected to growth rapidly in the next
few years
The consumer lending market, especially the (1) New circular “Regulation on consumer
unsecured loans of less than VND100 loans for financial enterprises”: bring
million for life purpose in Vietnam, is very more new name to comsumption finance
potential and has plenty of room for market
development in Vietnam The regulation also tighten the rules in
Consumer finance is expected to play a lending and debt management.
central role in Vietnam's transition to a more (2) Competitors:
growth-based economy. Consumer lending More and more banking and financial
should be encouraged as it ensures access to institutions join unsecured lending market
credit, especially for middle-income earners make it more competitive
and plays an important role in improving the

quality of life. increased financial
understanding
3.6.2 Competition situation in unsecured lending market

Figure 3-5 Market Participants
a) Banks:
In 2015, Personal lending of 11 banks which was studied reached 640,866 billion VND,
account for 27,5% total lending of 11 banks. Compared with the largest customer loan size in
the system (598,4 trillion VND), BIDV has the highest personal unsecured loan balance,
reaching 137,9 trillion VND. VIB had a small loan size, (47,8 trillion VND), but has the
outstanding balance among 11 surveyed banks (60,7%)
In the period from 2013 – 2015, 10/11 surveyed banks witnessed an increase in personal
unsecured loan. Of which, Lienvietpost Bank has the largest increase rate, reaching 13%. By
2017, like many banks aim to become the number 1 retailer: Vietcombank, Viettinbank
b) Finance Companies
There are currently 7 finance companies run effectively in personal unsecured lending market.
The total loan balance of 7 companies reach about 38 trillion VND by 2015, account for 7,6%
total lending balance of the market. Among them, FE Credit is the lead with lending balance
achieve 20,208 billion VND, account for 53% total lending balance of finance companies.
Next up is Home Credit (16%), Prudential (11%)
c) Fin-tech Companies: Mobivi; Loanvi; DoctorDong

In 2017, the market share of unsecured lending of competitor groups is divided as following:
Bank group accounts for 87% total unsecured consumer lending; finance company group
accounts for 12% and Fin-tech company group is 1%. The large gap in market share between
banks and the others two groups is due to the fact that the banks’ lending portfolio is mainly
high value items such as home loans, car loan while the financial company group is targeting
low value loans (phone, motorbike, electric devices, etc)
However, compared to 2015, the market share of bank group has narrowed to 87% from 91%.
The market share of financial company and other group rose to 13% from 9%. The reason is
that sales services of financial companies are more prominent such as: fast approval time,
application of 0% interest rate installment in the key fields as house hold appliances, access to
all customer segments (including non-income students, low-income workers), flexible
customer approach (at counters, online, mobile finance advisory)
VPBank’s UPL sale has to face with a lot of difficulties and challenges both form outside and
inside since second half of 2017.
- Depletion of customer reource
- Bad information on the financial market: about high interest rate
- Tightenning regulation from State bank for consumption loan and unsecured loan
- Competitive market
This leads to a drammatic fall in both sales result and number of new customers. From July to
Dec 2017, sales of UPL keeps down to around 30- 40% vs target. The paid off amount was
big but new disbursement did not improve.
In this situation, Marketing team and Product team have to sit together and find immediately
the solution for it. After evaluate all the strength, weakness, threaten and opportunities of
UPL, we decided that, a partnership program can possible be the key to a new chance for
UPL.
Companies across many industries are finding that more value comes from strategic
partnerships, where two companies have a vested interest in and commitment to creating a
mutually beneficial relationship that returns value to both the end customer and to the partners
themselves. The combination of two companies not only helps them to reach each other's
customers, but also leverages each other's strengths, such as distribution networks,
infrastructure, or brands. The two stand alone enterprises will only be able to use their own

capital, but when they shake hands and cooperate, they will not only connect to their networks
but also their partners. Practical for both parties. This method really brings about the perfect
solution for businesses struggling to expand their business and customer networks
However, with the limitation of time, human and finacial resource, and in order to make the
plan more effective, VPBank need to know, which partners are potnetial to collaborate, in
which time and by which way?
With that orientation, I with support from my colleagues at VPBank conducted a research, at
first, to understand customers and their buying behaviors. From the research, necessary
information can be gathered for propose partnership development plan.
27 | Year 2016 – 2018 MASTER OF

MARKETING AND PROSPECTIVE
4 Chapter 4: Qualitative and Quantitative study
4.1 Objectives of qualitative and quantitative study
- Objectives 1: To understand the loan’s purposes that are most commonly seen among UPL’s
customers
- Objectives 2: To find out the source of information customers often find when they need a
supplier for their purchases to build effective partnership programs and marketing campaigns
- Objectives 3: To understand the consumption seasonality to launch suitable promotion,
marketing campaign
4.2 Qualitative study
4.2.1 Sample of the study
- Sample: Customers holding a UPL loan in customers data base of VPBank

- Sample size: 20 customers
- Age: From 18 to 60 (allowed to borrow money under VPBank’s regulation)
- Location: 10 in Ha Noi and 10 in Ho Chi Minh
4.2.2 Data collection method
- 10 UPL customers of VPBank selected from customers database. Customers were chosen
within specific parameters to sample participant characteristics (age, salary, occupation, etc.)
so as to provide a view of broadest range of customers.
- The duration of interviews vary from 60 to 90 minutes. All interviews were recorded, with the
permission of the customers being interviewed
- After the interviews, the recordings were transcribed into computer files. Care was taken by
researcher team to assure that the respondents that they and the place of their work would not
be identified in any sub-sequent report. Once the final report was written, the tapes from the
interviews will be destroyed
4.2.3 Model of interview guide: Annex 1

4.2.4 List of respondents: Annex 2
4.2.5 Findings
4.2.5.1 Loan’s purposes that are most commonly seen among UPL’s customers
28 Chapter 4: Qualitative and Quantitative study | Year 2016 – 2018

- Top 3 purposes that are mentioned by respondents in order are: For business,
houses fixing and motorbike
- Of the 20 clients surveyed in both Hanoi and Ho Chi Minh City, up to 7

customers borrowed for business purposes, 4 for home repairs, 3 for travelling,
2 for motorbike, 1 for cosmetic surgery, 1 for personal hobbies, 1 for wedding
and 1 borrower to buy TV
- Not all the customers provided real purposes of the loan to the Bank. Note that,
before booking the interview with any customers, researcher did have a look at
the database and referred information from the branch who is managing that
customers’ loan. However, after interviewing, we noticed that many of the
customers, at the beginning they tell us about the purpose that they reported to
VPBank, but later disclosed further about the other using purposes of the fund
that bank provided them.
“Actually, I cannot remember for what I spent those money. A little for each, I
spent them for my game machine, clothes, cosmetic, a new television, etc.” –
Hang – a PG whose loan’s purpose in database is for house fixing
- Customer may not use the loan for themselves. In other words, they use their
identity to borrow money from bank for a 3rd party who does not meet the
bank’s requirement for a loan. This leads to some risks for the bank in terms of
loan’s purpose, ability to repay debt, source of repayment as well as the ability
to recover debt once bad debt incurred.
“I am not using the money. I borrow them for my friend. He needs money to
compensate for buying a taxi”- Thong – a taxi driver
4.2.5.2 Source of information customers often find while needing suppliers
- Customers who want to buy high value products tent to choose shopping
center, or big stores which has high reputation. Name and reputation of one
supplier seem to be the first factor that customers search for when they want to
find a place to buy things costly, more than about 10 million VND. For the
same type of goods but less value or stability, customers have more flexible
choices such as: shop near house, online website, Facebook, etc.
“I love gentle style for my house, so I went to Nha Xinh, one of the biggest and
most famous interior stores in Ha Noi to find the suitable ones. I cannot
believe in the quality of retail shop” – Thanh – business man
- For business purpose
In this area, customers who need a UPL for retail business are for the purpose
of supplementing working capital. They need a certain amount of capital in a
short amount of time. To these customers, loan amount is more important than
loan term because they usually repay quickly.
“I have ability to repay the loan after 2 years of borrowing. However, the loan
term in my contract is 7 years and early repayment charge is rather high so I
have not paid off this debt”
- With additional working capital, customers often choose wholesale market,
trade village for their input.
“Friends in this field, they buy where I buy there. They go ahead, have
experience, they know where to buy with low cost but good quality”
- For the purpose of repairing the house, customer who hires Design agency will
buy furniture of that company.
Furniture that Agency uses in their design is not easy to be found in the market
or may be found but incomplete. Further, the design will be free if customer
buy interior at the company. As such, most customers who come to find design
agency have identified using a full package service.
“I ask my friend for consult and go shopping to find the right or so. It is more
beautiful if hire a design agency but I will have to buy all the interiors from
them if I want it that beautiful. Cost for a full package like that is rather
expensive”
- Customers with high position in company, high income prefer to be served a
full package service. They can work with only one person from design agency
and do nothing until their house is filled with all interior that they need
“I do not have much time so I find a design agency to do all that for me”
- Some keywords
§ Super market/Show room: Uma, Coop Mart, Cho Lon
electronic Market, Nguyen Kim electronic
§ Interior agency: Khong gian dep, Quy Manh, Hue interior,
Phuong Nam, Tuong Minh, Jara, Unique décor, Nha Dep
Company.

- For the purpose of purchasing a motorbike
Customers who want to buy motorbike are young and have low income. Value
of a motorbike is usually in range from 40 – 100 million VND. The brand that
is mostly chosen is Honda.
Customers went straight to the showroom to find the motorbike they want
because:
“There is no difference in price or quality between motorbike showrooms. If
there is a factor affecting my choice of the showroom, it is this showroom has
promotion program while the others do not”
- Other purposes. In addition to the above mentioned purposes, customers also
use UPL for shopping technology devices, cosmetic surgery, dental clinic,
travel, school fee, for repaying other loan or re – lending to friend.
- In terms of travel, customers prefer self – sufficient travel for short trip in the
country. Overseas trip, a tour supplied by travel agency will be select more.
Some customers with higher living standard, they hire Travel Company to
design a private tour for them not going with other customers like common
tour.
“I used a travel agency; however, I ask them to design a program for me and
my family. So I have to pay a little bit more fee but I have nothing to worry
about in return”
- Key words for tourism: Tour from…to…, reputable tourism company, low
cost tour.
- Key words for technology devices: low cost technology/electric devices,
Amazon, shop online
4.2.5.3 About seasonality of customers’ consumption demands
- Business customers in entertainment or service sectors often need large capital

at the beginning of each school year, when students return to major cities.
During summer vacation, the demand for those service decrease significantly.
- New purchases for personal or for family are often made in Quarter 4. This is
the time customers receive their salary or bonus and prepare for Tet holiday.
Because in VietNam, it is believed that borrowing at the beginning of the new
month or year is unlucky. Therefore, purchase power at the end of Lunar year

is always strong. Customer revealed that they borrow before Tet but wait until
after Tet to go shopping.
4.2.5.4 About UPL and the Bank.
- Most of customers decided to borrow the entire loan limitation although the
initial demand may not be that large. Then, they still use the whole loan for
some other reasons
“I used up that entire loan. Of which about 70% was spent for the main
purpose, the rest I bought some other household items”
“I only need 30 million to cover the missing part to buy a motorbike. However,
I got a loan of 100 million VN. The remaining 70 million, I do not remember
for what I paid”
- All customers just remember the amount of money they have to pay every
month, not exactly the interest rate of the loan.
“Each month, I pay 2.4 million VND for principal and interest. This amount is
reasonable compared to my income. After paying the debt, I still have enough
monthly expenses”
- And interest rate is not the first reason for them to choose a Bank. Among the
respondents, loan term and loan procedure are more frequently mentioned.
“I see interest rate among banks is not much different. I also do not consult
much. I chose VPBank because your invitation come in right time and your
lending procedures is quick”
- Not all of the respondents know clearly about other products of VPBank.
12 out of respondents have been advised by VPBank about VPBank credit
card. 3 of 20 respondents knew about the over draft. Of which only one
customer use regularly both UPL and credit card of VPBank. Some others are
advised to open the card but did not use or closed.
“I have VPBank credit card right here. But I do not understand how to use so I
never used”
- Many of the customers interviewed revealed they had other financial needs,
such as buying home, car, insurance. However, these need have not been
grasped by the sales staff to advise the products.
“My wedding loan has been 3 years. I will pay off my debt in June. I need to

borrow more and finding information to buy a new small car”
- Almost all customers know about VPBank through friend’s referral.
“My friend introduced VPBank to me. He had a UPL of VPBank too. I have
seen VPBank’s ads but not really impressed me. I decided to choose VPBank
because of my friend’s referral.”
- Customers provided information through VPBank’s marketing programs.
However, after a few months, even a year later, a consultant called to ask about
the loan demand of long time ago.
“Your sales staff asked me for my phone number and promise to call back to
introduce me about your UPL. At that time, I need a small amount of money to
prepare for my wife for giving birth. But months later, one man call back, and
my baby was 4 months at that time”
Leads collection and in-depth consultancy has not been implemented
uniformly. Customer identification skill is not good. This leads to missing
potential customers and give advice in a wrong moment.
4.2.6 Summary findings from qualitative study
Loan’s purpose:
(1) Purpose of the loan that customers declared to the Bank may be not true.
Therefore, monitoring the loan after disbursement and taking care of the next
financial demand of customer may not be effective.
(2) The fact that customers use their identities to borrow money and then lend
again to the 3rd party who do not meet the Bank’s requirement causes a lot risk
to the Bank. However, with the orientation of expanding customer base and
actively increase the number of loan contract as VPBank has been done recent
years, controlling this problem is not easy to implement
Where do customers find information about suppliers
(3) Among all source of information, referrals from friends, relatives, colleagues
are considered as the most trusted source. Therefore, in order to develop
partnership effectively, Bank needs to go deep in to each industry, knowing the
suppliers are trusted and appreciated by the people in each profession. Quality
of the suppliers should be focused, avoid doing partnership in a general way
(4) We cannot deny that big brand, famous store still attract a large number of

customers. Therefore, partnership link cannot ignore these names.
(5) Search engines like Google, forums, groups on Facebook are also trusted by
many customers when they do not have much information about the provider.
Advertising and partnership link in advertisement through these channel also
need to be invested.
Seasonality of customers’ demand
(6) For borrowers for business purposes, depending on each industry, there is a
different need for additional capital. VPBank needs to distinguish clearly
between sectors, avoid loan consultancy in low season, the demand for loan
will be low. This cost money and marketing resources but not much
effectiveness is brought back.
Customers’ choice toward bank and banking products:
(7) As the way customers choose supplier, how they choose a bank is similar.
Customers tend to believe in their friends’ experience than any advertisement
from bank and sales staff. This shows that leaving good impression in the
customer by good service, quality products; fast and simple process is a very
important factor, much more important than advertising rampant in the media.
(8) Customers who are in need of a UPL often do not care much about interest
rate. Their top of mind is quick and high speed procedures. This is probably
because UPLs are usually small size loan and customers need this type of loan
usually because they are short of funds need to be covered in a short of period.
(9) Although the loan amount that customers need is small, few customers deny
borrowing to the maximum credit limit that they are approved by the Bank.
And then, almost all customers use the entire loan amount.
(10) Cross sell and up sell to existing customers have not been done thoroughly,
especially with lending customers. The number of customers who know about
VPBank’s credit card or overdraft – alternative products of UPL in some cases
– is less; or even customers have demand but not consulted.
(11) Marketing programs to collect leads with the exploit system after that do not
have good combination. This makes a problem that leads have to wait for a
long time until they are exploited, sell opportunities are over.

4.3 Quantitative study
In the quantitative study, we used “Monkey survey” as a tool and chose sending email as a
method to collect ideas. We sent email with link of questionnaire to 3000 UPL customers.. As
a result, we received 2046 responses and of these, there are 1842 responses are valuable, 204
are missing value. We collected 1842 responses as our data to analyze
4.3.1 Model of questionnaire: Annex 3

4.3.2 Research objectives recall
- Objectives 1: To understand the loan’s purposes that are most commonly seen
among UPL’s customers
- Objectives 2: To find out the source of information customers often find when
they need a supplier for their purchases to build effective partnership programs
and marketing campaigns
- Objectives 3: To understand the consumption seasonality to launch suitable
promotion, marketing campaign
4.3.3 Data analysis
4.3.3.1 Loan’s purposes
Loan's purposes Respondents %

House construction and decoration 627 34.0%
Business 573 31.1%
Personal hobbies 324 17.6%
Motorbike 231 12.5%
Wedding 30 1.6%
Medical 12 0.7%
Others 45 2.4%
Total 1842
Figure 4-1 UPL customers’s loan purposes
Of the total participants in the survey, around 35% use their loan amount for “house
construction and decoration”. “Business” purposes rank second with 31.1% and “personal
hobbies” is far less with 17.6%.
Only 2.4% of respondents chose other purposes, they are: education, real estate investment,
travel.
- House construction and decoration purposes
Purposes Respondents %
House hold items 423 67.5%
Paint 120 19.1%
Raw construction 108 17.2%
Flooring 93 14.8%
Interior 3 0.5%
Total 627
Figure 4-2 House construction and decoration – specific purposes
The shown table data give information about the number of customers in 5 categories in term
of house construction and decoration purposes. A high number of customers use their loan for
house hold item, account for 67.5%. Follow up is painting purpose with 120 customers ~
19.1%
Approximately 20% of customers use design consultancy service (in whole or in part)
Design consultancy Respondents %
No use 510 81%
A part 99 16%
Whole package 18 3%
Figure 4-3 Design consultancy service using
Furniture buyers tend to choose super market, electronic center, or show room near their
houses to find the house hold item they want
Suppliers Respondents %
Super market, showroom 201 32%
Near house retail shop 195 31%
Street specialize in selling furniture/household
171
items 27%
Design consultancy company 33 5%
Handicraft village 27 4%
Other (specific name of the shop) 15 2%
Figure 4-4 Suppliers chosen by customers for furnitures

Nearly one-third of respondents choose super market or famous show room as the first place
to come if they need household items or electric devices. Slightly less than “super market and
showroom” is “near house retail shop” which gains 31% of customers’ choice. Not much
customers buy from design consultancy company or handicraft village with 5% and 4%
respectively.
Channel to find information
Channels Respondents %
Go straight to interior super market 255 40.7%
Friends’ referral 186 29.7%
Search on Google 48 7.7%
Suppliers’ official website 48 7.7%
Other 90 14.4%
Total 627
Figure 4-5 Channel for finding information about suppliers
The majority of respondents ~ around 41% are priority to go to super market, big center for
house’s interiors. These are prestigious locations for service and cost. With this purpose,
friend referral is not really important. This can be explained by the fact that in Vietnamese
market, super market or electric centers have a certain place in customers’ mind. Their
effective marketing strategy and discount policy make them attractive toward customers.
Some outstanding name should be mentioned are: Dien May Xanh, Nguyen Kim, Media mart,
Dien May cho lon, Nha Xinh, Uma, etc

Figure 4-6 Electronics market share in 201611
Of the report made by The Gioi Di Dong Company, in 2016, on the market of genuine
electronics, the brand name of Nguyen Kim is leading the market with 12%, behind is Dien
May xanh. More than a half of the market share belongs to retail shop.
ð Conclusion: Combining customers’ feedback and reporting on the market share of
electrical center or furniture showroom on the market, we can temporarily conclude
that VPBank should focus on strategic partnerships with big names and retail stores
in densely populated areas, by using parallelism both whole country and local scale
partnership programs. Specifically:
- With big centers/showrooms:
§ Implement partnership programs, share profits to reduce the
price and provide loan to customers
§ Set up booth sale for UPL consultancy at super market,
showroom to advise customers loan packages dedicated to
home furnishing
§ Associate with other partners to provide with the loan some
discount or voucher for purchasing related to house
construction such as: Paint discount voucher, wall decal,
and Japanese home furniture purchase voucher, blanket
11
The gioi di dong annual report 2016
purchase voucher, etc.
- With retail stores:
§ Organize partnership program in local scale and every
branches of VPBank has the right and responsibility to link
partner with shops or showroom in local.
§ Design local partnership policy to offer profits to retail
shops, showroom if they join partnership program.
- For business purposes
Types of business of all the customers who use VPBank’s UPL for business purposes are
diversified with nearly 30 different types.
Type of business Respondents %
Whole sale and retail 243 52.9%
Working capital financing (goods, material, etc.) 147
Fixed assets financing (factory, machines, equipment, etc.) 9
Both above purposes 84
Service (Medical, beauty, café, etc.) 72 15.7%
Industrial production 30 6.5%
Agricultural production 27 5.9%

Others 87 19.0%
Total 459
Figure 4-7 Specific loan’s purposes among customers borrowed for their business
Wholesaling and retailing account for 50% of all business lending purposes. For service,
industrial production, agricultural production, the proportions are not high with about 10%,
6% and 6% respectively. In the meanwhile, others purposes make up a large part. As gathered
from respondents, others types that are mentioned are as: pawn, real estate, stock. Because of
their high risk, those lending purposes are all not accepted by VPBank for a UPL.
In all business fields, the number of customers who are using their UPL amount for financing
working capital is much higher than fixed assets investment. Especially for whole selling and
retailing, the proportion for this purpose is more than 50%. This can be explained by the fact
that, for customers, borrowing a small amount of credit is usually a need arises when capital is
needed due to deficiency. Often, customers with purpose of fixed assets financing have a
large need for a loan and these customers can be able to choose secured business loan which
is much more suitable than a UPL.
However, in some cases, a UPL is not quite reasonable for working capital investment.
VPBank can offer over draft for this type of purpose, which is much more flexible and
suitable.
Wholesales markets or wholesales stores are potential for partnership.

Supplier Respondents %
Wholesales market, wholesales stores 150 63.6%
Import from other countries 39 16.9%
Others (Self supply, second hand) 42 19.5%
Total 231
Figure 4-8 Source for input materials

Considerably, the source of input goods or materials from wholesales market or wholesales
stores are the most popular source with nearly 70% of customers choose. Other sources are
not large with 16-19%.

ð Conclusion: As the result of the survey, VPBank should focus financial and human
resource on linking with wholesales markets and wholesales store for input materials.
Besides developing commission policies for successful referrals, VPBank can
provide both partners and customers a package of product, not limited in UPL only.
Products can be sold are over draft, credit card and payment account. Shop owners
can use the account for receiving money from buyers while the buyers use the fund
issued by VPBank to pay the seller.
VPBank can consider granting one unsecured credit limit to customers, with which
customers can choose how much to use for UPL, how much for over draft and how
much for credit card. The difference is, with overdraft customers can pay whenever
they wants and only get loan from the time the money is spent. In the case of having
money to pay back, they can pay them into overdraft account to not continue to be
charged interest. For smaller payment purposes, credit card is a good choice which
allows customer not to be charged interest up to 45 days. For bigger amount of
money and longer repayment, UPL can be used.
As a result, VPBank is able to grow loan balance, while encouraging customers to
hold more products and services of VPBank and also collecting fees from those
services.
- For personal hobbies

Customers borrow money for personal hobbies have the average age of 24 years old
Ages Respondents %
20-35 261 81%
35-45 42 13%
>45 21 6%
Total 324
Figure 4-9 Age of customers who borrowed money for personal hobbies
The percentage of customers of this purpose aged from 20 to 35 reached 81%. In other loans’
purpose categories, the proportion of client in these ages is also large, but the different in this
group is significant.
Specifically, what are customers’ personal hobbies?
Hobbies Respondents %
Technology devices 207 64%

Travel 54 17%
Fashion 48 15%
Other 15 4%
Total 324
Figure 4-10 Customers’ personal hobbies
Among all personal preferences mentioned by customers, technology equipment is the most
invested item with above 60%. Second but far below is travel with 17% and third is fashion
with 15%. It seems that by constantly launching new products, technology equipment
manufacturers such as cell phones, tablets, and cameras…have contributed not a small part to
stimulate spending power of young customers.
Similar to electronic products, in Vietnam market, customers have the need to buy technology
items often go to trade center, electronic center to find the item they want. This is also
reflected in the result of the survey.
Suppliers for technology devices Respondents %

Trade center, electronic center 144 74%
Online website 24 12%
Retail shops on streets 27 14%
Total 195
Figure 4-11 Suppliers for technology devices
ð Conclusion: The Bank should be able to catch up with the upcoming technological
products like IPhone, Samsung, Oppo to capture the psychology and behavior of
customers. Since then, prepare promotion program to support the price, preferential
interest rates, support to change old phone for whom spending with VPBank’s loans…
Such program should be planned and launched on time.
For other hobbies, travel, fashion and others, because the percentage of users spending
on them is not much, VPBank may not need to consider developing marketing programs
for this group.
4.3.3.2 General outlook on the demographics of UPL customers
More than 70% of unsecured lending customers are young clients (under 35 years old)
Age groups Respondents %
20-35 1383 76%

35-45 330 18%
>45 129 7%
Total 1842
Figure 4-12 Age of UPL customers
Most of the customers only earn from salary. More than 30% have income from both salary
and business. In particular, income from business account for 50% of total income
Income Respondents %
Salary 1170 64%
Business 72 4%
Both 600 33%
Average % from salary 50%
Average % from business 50%
Total 1842
Figure 4-13 Income of UPL customers
In high income customers’ segment with total income is more than 20 million VND. 80% of
customers have income from business. Business income accounts for about 61% of total
income. Average income is about 46 million VND
Income Respondents %
Both 270 71.20%
Salary 72 19.50%
Business 33 9.30%
Total 375
Figure 4-14 Income of high income UPL customers
In terms of age, most clients with income of over 20 million VND are from 35 to 45 years old.
Age groups Respondents %

35-45 177 47%
20-35 129 34%
>45 69 18%
Total 375
Figure 4-15 Age of high value customers
50% of high income customers need UPL for their business

Loan’s purposes Respondents %
Business 186 50%
House construction, repair 102 27%
Personal hobbies 60 16%
Figure 4-16 Loan’s purposes of high value customers
ð Conclusion: From the above statistics, we can draw a portrait of VPBank’s UPL
customers as following:
o They are young, with age from 20 to 35
o Their income is totally or mostly come from salary
o They have many spending needs in life
o They borrow money mostly for investing in their business and for the family
On the other hand, VPBank seems to have missed a lot of opportunities from customers
aged 35 to 45 year olds. Or their product communication campaigns have not hit this
customer segment yet.
In terms of demographics, with the increasing trend of life expectancy of people now,
the number middle age customers will be higher and higher than other groups. In
addition, this is also a set of customers have high and stable income, they have more
consumption demand not only for themselves but also for family and children.
VPBank need to redefine the target customers of UPL and communicate it to sellers. At
the same time, periodically overview statistic to find customers who have not exploited
well and can exploit more
As originally stated, this research serves 3 main objectives:

- Objectives 1: To understand the loan’s purposes that are most commonly seen
among UPL’s customers
- Objectives 2: To find out the source of information customers often find when
they need a supplier for their purchases to build effective partnership programs
and marketing campaigns
- Objectives 3: To understand the consumption seasonality to launch suitable
promotion, marketing campaign
Based on analysis and finding from qualitative and quantitative study, we recommend a
partnership programs as in the following chapter

5 Chapter 5: Recommendation and partnership plan
5.1 Recommendations:
5.1.1 Step 1: Product strategy
(According to customers’ spending behaviors understood from the research in chapter II, UPL
market competition, and UPL’s SWOT)
5.1.1.1 Unified loan approval policy, offer 1 credit limit for all unsecured lending
products
The fact that, limitation for all unsecured lending products is approved based on customers’
income. Total credit limit is up to 10 month salary, depending on the bank. In addition,
customers who have been granted a credit card limit, for example, the limit for UPL or
overdraft will be deducted when they apply for these products. Instead of assessing and
approving each product separately, VPBank need to provide customers an unsecured lending
limit, in one time. Depending on customers’ choice, the limit will be divided into 3 divisions
for: credit card, overdraft and UPL.
By this way, customer who in need of credit card and overdraft will automatically granted an
UPL amount and VPBank save a lot of operation cost: assessment and human resource, etc.
5.1.1.2 Build a bench mark for UPL customers and offer different interest rate
corresponding to the needs of customer
For customers who are in urgent need and require a fast disbursement process with simple
requirement, VPBank can take risk and charge higher fee and interest rate in return. On the
other hand, customers who meet the loan paperwork and accept waiting will be charge lower
interest rate.
45 Chapter 5: Recommendation and partnership plan | Year 2016 – 2018

Figure 5-1 Benchmark of speed, loan condition and interest rate for UPL customers
5.1.1.3 Unsecured business loan for house hold business with small loan amount
Every day, aspiring business owners are pursuing business opportunities so raise the capital
they need to achieve their business goals. The launch of corporate mortgage loan product
allows small businesses to borrow additional capital without collateral.
For many small businesses, eliminating the need for collateral opens doors. One household
business may not even have any assets to secure business funding. Moreover, obtaining an
unsecured business loan is faster because the lender doesn’t have to spend time appraising
collateral, filling out forms, waiting on documents from other sources, etc. The process is
simpler and more streamlined. Speedy funding can make all the difference for small
businesses. They rarely have the luxury of waiting weeks or months for a traditional loan to
come through. Or not quick approval and funding can pull them out of a jam, whereas waiting
could kill the business. It can also give business owners ready cash to take advantage of a
timely opportunity. Just as higher approval rates, the speed of an unsecured loan can
strengthen the business.
With these benefit above, unsecured business loan is an ideal solution for many household
businesses.
Stand on the bank, of course, this kind of loan increase lender’s risk and VPBank will find
another way to reduce risk, such as charging higher interest rates. Unsecured business loan
financing for businesses make money available on an ongoing, revolving basis. Over time,
VPBank gain confidence in borrowers’ consistent repayment track record. VPBank then can

classify customers and decide to allow them a bigger loan amount or reduce it.
Considering the opportunity of selling, after the business has a loan at VPBank, the bank can
continue to approach to consult other suitable products for employees of that enterprise. This
is a reliable source of customers. Employees’ income and ability to pay are demonstrated by
company’s repayment track record.
5.1.1.4 Online UPL application and instant approval
Most people try to plan their expenses but there are things it’s impossible to foresee.
Sometimes consumers need to borrow money really quickly and they can’t wait until they
have time to come to the Bank and explain to a sales man why they need the money.
Regardless the instant approval, whenever the customers have need of a loan, they can access
to the system, enter some input information (income, career, purpose, etc.) and then they can
see how much money they can possible to borrow from VPBank. This system has it benefit in
partnership program which we will have detail look in the next part.
For customers who already had credit history, VPBank can have a quick assessment to offer
or instantly approve a small loan amount. Then, if want to increase the limit, customers can
submit their collateral to the bank and wait for the top up.
By digitizing lending approval procedure, VPBank can also save a lot of operation and human
resource costs. The interest rate for online UPL can therefore reduce from 0.5% to 1%
compared to traditional way.
5.1.2 Step 2: Target partner identify
The collaboration will be implemented in parallel in 2 scales: in macro and micro.

For Macro, Partnership development department at VPBank Head Office will contact to the
big and famous brand name in all countries and offer partnership programs.
For Micro, VPBank branches will take credit for collaborating with wholesales shop, retail
shops, whole sales market or other suppliers at their locals.
5.1.2.1 House construction and repair
Purpose Target partner Name of partners

Thinh Phat JSC; Bach Khoa ec; Minh Cat; Xay
House construction dung nha xinh; kien truc dai an; Kien truc Viet
Raw construction consultant company Quang; …
or repair
Real estate Vinhome; Mulberry land; Dat xanh; Net Land;
company Yellow page; …
Pho Xinh, Uma, Dien may cho lon, Erado, Nha

xinh, Khong gian dep, Quy Manh, Hue interior,
Interior showrooms Phuong Nam, Tuong Minh, Jara, Unique décor,
Interior Nha Dep Company
Architecture Real house, Sao Viet AIC, Kien Viet, Wonder,
interior company …
Electronic Nguyen Kim, Dien May Xanh, Media mart,

showrooms/ super Dien may cho lon…
Household items
markets/ shopping Other retail shops
centers
Figure 5-2 List of partner for each fields
5.1.2.2 Business financing
Purpose Target partner Name of partners
Working capital Wholesale markets, Decided by branch managers

financing wholesale/retail shops at local
Figure 5-3 Target partner for business
5.1.2.3 Technology devices
Target partner Name of partners
Technological/ digital showrooms, The gioi di dong, CellphoneS, TechOne and other
store reputed store in locals.
Figure 5-4 Target partners for technology devices

5.1.2.4 Motor bike

Motorbike showrooms Honda, SYM, Yamaha
Figure 5-5 Target partners for motorbike

5.1.2.5 Spa, cosmetic surgery
Nha khoa Paris, Nha Khoa quoc te A Chau, …
Spa, beauty salon, dental Kangnam beauty salon, Thu Cuc, Lavienrose …
Spa of cosmetic brand: Menard
Figure 5-6 Target partners for spa, beauty, cosmetic

5.1.2.6 Education
Schools for children Vinschool, Global, BVIS,

(Target to high cost tuition fees range from 100-300 Wellspring, …
million/year)
Training center BSI group, vinalink, PTI, …
Figure 5-7 Target partners for education

5.1.2.7 Other sectors:
With limited human resource, VPBank should priority focus on 6 above sectors. Other
spending purposes such as wedding, medical will be invested in next stage.
5.1.3 Step 3: Partnership program Development
5.1.3.1 Partnership program development
a) Sales forces
- Build Incentives policy for partners’ sales forces: (PGP) Partners get Partners
or (PGC) Partners get customers allow suppliers who are VPBank’s partners
can recieve incenttives for each partner or customer that they refer to VPBank.

This amount of money will be paid in cash directly to partners’ sales or
manager every month
- Sales booth at partners’ location: Arrange sales staff sitting at suppliers’ shops
or showrooms to introduce and consult products to customers who have needs
- Training program: Train partners’ sales forces, make them experts in
VPBank’s product. Additionally, training improves partners’ commitment,
increases collaboration between VPBank and partners’ sales team, inspires and
motivates the sales teams and improves overall customer satisfaction
- Build sales team: Include sales staff of VPBank and partners
- Develop partnership policy include: loyalty point and benefits from VPBank in
return. Then build a system for VPBank’s partnership, in which, partners can
connect to partners to exchange products by loyalty point that they gain from
VPBank.
b) Product
- Special product: UPL policy can be adjusted to be suitable with the partners’
customers (reduce interest rate, quick approval process, flexible loan tenor,
etc.)
- Sell product in bundle. For example: customer is approved a UPL of 100
million VND and instead of money is disbured to their account, he/she receives
a package of cosmestic surgery cost 100 million VND
c) Process
- Redesign process: Process is redesigned exclusively for the collaboration with

partner (in any)
d) Marketing and promotion
- Set up POSM about UPL at partners’ shops/showrooms with information

about: hotline, promotion program, loan condition and requirement, etc.
- Ads, links on partners’ website: VPBank is allowed to run ads or link on
partners’ official website. Customers can acess to supplier’s site and apply for
a loan by only one click,without having to find information about VPBank’s
product on the bank’s website

- Email, phone marketing to partner’s customers: By sharing data policy
between two business, VPBank can aquire customers in partners; database by
sending them email or through a phone call
- Sponsor or co-organize seminar, workshop about the products: Coporate with
partner to organize seminar, workshop about the products and financial
solution for that product. This method can be applied to valuable items.
Example: package for skin care, motorbike, holiday package, etc.
- Design brochure/catalogue/promotional merchandise especially for the
partners. In brochure/catalogue/promotional merchandise will have
information both about the supplier and VPBank. Example: One motorbike
brand collaborates with VPBank, VPBank will provide them a designed
catalogue about their motorbike and VPBank’s products. For each customers
who buy a motorbike, they will receive a gift from VPBank. On that gift,
information about UPL and other product is represented creatively
Figure 5-8 Example about promotional merchandise
Low Medium High

Sales forces
Incentives V V V
Booth sales V V
Trainning V
Build sales team V
Partnership policy: loyalty point V V V
Product

Product adjustment V
Offer product in bundle. V
Process
Redesign process V V
Promotion
POSM V V V
Ads, links on partners’ website V V
Sponsor or co-organize seminar, workshop V V
Email, phone marketing to partner’s customers V V
Designer brochure/catalogue V
TV ads, film, bill board... about the two companies and the
V
partnership
Design promotional merchandise V
Figure 5-9 Collaboration tools for each level of partnership
5.1.3.2 Partnership marketing seasonality
- Partnership development will be made during the year, regardless of seasons.

But, marketing campgin and promotion campaign for the partnership between
VPBank and suppliers must be based on consumer’s seasonality.
Based on customers’ feedback about the time that they incurred the need for
UPL financing amount, we reccommend the timeline as below for 2018
2018 2019
May Jun Jul Aug Sep Oct Nov Dec Jan
Rough
"Dream house in your hand"
construction
"Refresh your
Interior, household
home with
items
VPBank"
Firm step in
Education
the future
Technological
Old renovated
devices

Go everywhere with
Travel
VPBank
New
motor
Motorbike bike,
new
luck
Figure 5-10 Partnership marketing plan
- Rough construction: Construction season usually fall from August to
December every year, because this time the climate is temperate and dry
weather, so it is convenient to buy house. In addition, the construction time
from 4-6 months to complete the construction (small and medium size). At the
end of the year, finishing a new home for welcoming Tet is the best.
“Dream house in your hand” will be launched in from Sep 2018 to Jan 2019,
especially for house construction partners and their customers:
- Interior, household item: The need for home interior often increase in 2 season:
wedding season and before Tet holiday. In Viet Nam, wedding season is from
September to February of Lunar year. So the marketer can choose from Oct to
Nov to launch promotion program with interior or house hold items with these
partners: “Refresh your home with VPBank”
- Education: Before the start of new school year, parents often worry about their
children’s education fee for that year. VPBank’s marketing campaign for UPL
for education can be organized in August and September include:
o Sponsor for school’s events to be able to access to parents
o Give scholarship to pupils
o Introduce about VPBank’s UPL through promotional merchandise and
workshop.
o Serveal promotional merchandises can be used for education purposes
are: note book, pencil, black board, etc.
- Technological devices: As studied from the research, customers often buy
technological devices in summer. This can be explained that, famous brand of
technology like Apple, Samsung... often choose to launch their new generation
of products in summer. As such, VPBank should know the time these brand

publish the new product to organize promotion campaign. Here, we
temporarily propose “Old renovated” campaign in August and September. The
time will be rearranged depending on actual situation.
- Motorbike: Consumers in Viet Nam do not buy valuable things in July (lunar
month) because they believe it is unlucky in this month. There a fact that, in
this month, the demand decrease, the price reduce as well. Customers’ who
decide to buy in this month, they can receive a lot of benefits. In the
meanswhile, sales performance of VPBank in this month alway reduce
drammatically year over year.
Nowaday, consumers tend to have more modern view and benefit oriented.
VPBank can collaborate with motorbike partners to cleverly run promotion
program in this period. Instead of normal gift, for each customers who buy a
motorbike in July, VPBank gift them a feng shui articles, which can bring them
lucky and safeness.
- Other fields: The needs of Spa, medical, investment, ... can occurr during the
year. For these sectors, VPBank’s marketer should attach promotion program
with a suitable special day to enhance marketing’s effectiveness.
5.1.3.3 Partnership KPIs
For pilot period, from 1st March 2018 to 30th April 2018, the number of UPL partners is
expected to be:
Collaboratio Ja Fe Ma Ap Ma Au Se No De Tota
Jun Jul Oct
n n b r r y g p v c l
High 0 0 0 1 1 1 1 1 1 1 1 0 8
Medium 0 0 20 20 20 20 20 20 20 20 20 20 200
10 10 10 10
Low 0 0 80 80 80 100 100 100 940
0 0 0 0
Figure 5-11 KPIs of partnership development (number of partners)
UPL disbursement through partnership channles is expected to contrubute 10% of all

disbursement of the division:

Ja Fe Ma Ap Ma Au Se No De Tota
Jun Jul Oct
n b r r y g p v c l
UPL
disbursemen
10 10 10 10
t 0 0 70 70 100 50 120 150 960
0 0 0 0
(unit: billion
VND)
Figure 5-12 KPIs of partnership development (UPL disbursed through partnership
channel)

5.1.3.4 Timeline
Figure 5-13 Timeline for partnership development program

5.1.3.5 Projected cost
Projected cost for the second phase (roll

Projected cost for the first phase (pilot)
out)
from 1st Mar to 31st May 2018
Items (From 1st Jun to 31st Dec 2018)
Unit: million VND
Unit: million VND
Minimum Average Maximum Minimum Average Maximum

Staff expenses
Partnership development managers 180 225 270 720 900 1080
Incentives for partners' sales forces 800 1000 1200 3200 4000 4800
Training 160 200 240 640 800 960
Procurement
Booth sales 160 200 240 640 800 960
Online system for partners management 120 150 180 120 150 180
Marketing
Marketing items production 800 1000 1200 3200 4000 4800
Publishing, advertising 800 1000 1200 3200 4000 4800
Other operation expenses (travel,
telephone, printing, postage, etc.) 160 200 240 640 800 960
TOTAL 3180 3975 4770 12360 15450 18540
Figure 5-14 Projected cost for parnership development program in 2018

6 Chapter 6: Implementation and result
6.1 Implementation of the partnership program
6.1.1 Partner collaboration channel
6.1.1.1 Partners collaboration channels
Partner collaboration activities are implemented in parallel in 2 levels, macro and micro. Macro
level is for partners in large scale, taken responsibility by Headquarter (HO) – Partnership
development department. In the mean while micro for local partners, conducted by branches
Macro level Micro level
• Human resource • Human resource
- Collaborated by partnership - Collaborated by branch
executive – Partnership directors and sale staff at
development department branches
6.1.1.2 Partnership collaboration procedure (for micro level)
• Step 1: Branch makes a list of potential partners and necessary budget for acquire these
partners, then send them to partnership development department
• Step 2: Based on the proposal from branches, partnership development department identify
the suitable partners for a period, priority to which partners…
• Step 3: Head of Retail Banking approved the partnership collaboration plan of the branch
• Step 4: Finance Division provide money for branch to implement the approved partnership
collaboration plan
• Step 5: Branch implement the plan (with support from HO), tracking result and make the
report at the end
6.1.1.3 Responsibilities of relevant units
• Marketing department
- Design promotion materials about VPBank, VPBank’s business result, position of the
58 Chapter 6: Implementation and result | Year 2016 – 2018
bank and its UPL product to invite associate partners
- Develop marketing framework for different groups of partner. Cooperate with related
unit, take the lead in developing detailed marketing plan and implement marketing
with partners
- Coordinate with partners and related units to produce marketing publication of 2
brands
• Partnership development department
- Build up a standard framework for partners based on the following factors: brand
name, distribution, competitive capacity, expected benefits to the bank... to group
partners
- Develop policies, benefits for class and group of partner: Promotion, redeem, bonus
policy, commission…
- Search for associate partners, be responsible for linking with large scale partners, or
transferring partners to branches if any
• Training department
- Organize training programs for sales staff of partner about VPBank’s product and
promotion program and policy in each period
- Build sales support tools: Sales kit, booklet and supply to marketing point.
• IT
- Establish a partner management website that allows VPBank partners to post their
information, offer discount, exchange products/services.
6.2 Number of partners that VPBank collaborate in pilot time
After 3 month of implementation, the number of partners that VPBank collaborate is as following
Channels
Categories Partnership development
Branches
department
Business (suppliers for input materials) 2 24
High 0 0
Medium 0 0

Low 2 24
House construction 3 5
High 2 0
Medium 1 0
Low 0 5
Electronic super market 5 101
High 1 0
Medium 0 4
Low 4 97
Digital store 2 15
High 0 0
Medium 0 0
Low 2 15
Spa, dental, cosmetic surgery 7 0
High 1 0
Medium 0 0
Low 6 0
Education 1 0
High 1 0
Medium 0 0
Low 0 0
Travel 3 20
High 0 1
Medium 0 5
Low 3 14
Others 27 37
High 0 0
Medium 0 0
Low 27 37
Figure 6-1 Number of partners after 3 months implementation

Total number of partners are 252 suppliers in more than 50 provinces and cities. In which, low
collaboration is 247, account for 103% vs target. Medium collaboration is much lower than tartget
with only 3 suppliers, and high collaboration meet target with 2 suppliers
Low Medium High

collaboration collaboration collaboration
Target 240 15 2
Actual 247 3 2
% vs. target 103% 20% 150%
Figure 6-2 Number of partners compared to target
6.3 UPL disbursement through parnership channels
Figure 6-3: UPL disbursement through partnership channel (Unit: Billion VND)12
In the first month of implementation, UPL disbursement was just 20 billion VND, approximately
30% vs target (70 billion VND). This situation is not too hard to understand. Because, in the first
month, VPBank’s partnership development or branches had not been familiar with the program and
12
UPL monthly Report of Retail Banking
also partners were still hesitant toward this very new policy and program. However, in the next 2
months, sales performance increase rapily with 43 billion VND in April and 112 billion VND in
May, exceeded the target.
Figure 6-4 UPL disbursement, channels breakdown (Unit: Billion VND)13

Among 175 billion VND of disbursement, up to 140 billion ~ 80% comes from high collaboration
partners. Medium and low collaboration partner account for 20% with 135 billion was disbursed
from customers acquired through these 2 channels.
13
Figure 6-5 UPL new customers over 3 months – channels breakdown (Unit: number)14
From March to May 2018, through partnership channels, VPBank welcome 1700 new customers in
terms of UPL product. Among them, over 1600 customers came from low collaboration partners.
Only 85 new customers come from high collaboration partners.
So researcher can temporarily conclude that if VPBank targets to grow disbursement and balance,
they should focus on high collaboration partners. On the contrary, if a large data base of customers
and great growth of new customers are important factor to VPBank, they should aim to medium and
low collaboration partner. Therefore, in the next phase, target of number of partners of 3 levels
collaboration can be revised to fit with VPBank’s goal.
As mentioned in the limitation of study (chapter 1), because of limited time for implemention, the
effectiveness and influence of partnership programs has not been evaluated comprehensively.
However, with this initial result, VPBank can completely believe that they can achieve the target
and contribute to improve UPL sales perforamance in this year.
6.4 Lesson learns
6.4.1 Key challenges

(1) Branches have not had high awareness about the importance of partnership program. Sale
staffs often focus on direct selling and advising clients rather than applying indirect methods
like this.
14
(2) Quality control of partners is a challenge. VPBank’s reputation may be influenced by
partners’ reputation.
6.4.2 Key lessons
(1) The study of customer’s behavior is just the initial step. More in-depth research on customers
and partners needs to be continued to get a more in-depth look to build more effective
partnership collaboration program
(2) Partnership marketing program for UPL can be combined with other products such as credit
card, which are suitable for growing based on partnership model
(3) Risk management should be done closely due to the shake hand between VPBank’s sale
staffs and partners’ sale staffs. Especially with UPL, one product with easy loan condition,
high risk.
(4) Apply special approval mechanism for loans through partnership channels (shorten approval
time), especially for customers from high collaboration partners
(5) Training for medium and low collaboration partners should be handed over to branches to
minimize cost and manpower.

7 Chapter 7: Overall conclusion
Strategic marketing partnerships are not new. It is an inexpensive way to promote brand and product
as long as you do not give more than you get. Akbank’s work with Boyer Fashion Stores, where a
new card targeting the younger, female audience was instantly issued in the outlet in less than 15
minutes and had some fantastic benefits including a non-stop lottery programme. Some 200,000
cards were issued in the first five months of the launch; Barclaycard launched a contactless card
with Orange company – a French multinational telecommunications corporation which allowed
people to control their accounts by being able to set daily, weekly or even category-based spending;
these are outstanding examples for the success of partnership marketing program in banking
industry.
Through our 3-month marketing mission with our VPBank colleagues, we have introduced the
initial proposal for a partnership strategy to sell one of the key products of VPBank - UPL. With the
goal of building a marketing program that links partners to increase sales of UPLs, through the
results I can conclude that the goal of the research task has been fulfilled. Further research and
partnering activities will be further strengthened with greater involvement of headquarters and
business units.
With personal projection, I think that amid strong development of marketing trends, intense
competition among companies and rivals in consumer credit, the partnership opens the door for
opportunities to locate products and brands, helping to find new approaches to VPBank's customers,
emphasizing VPBank's customer oriented approach.
Due to the shortcomings of my expertise, limited financial, time, marketing tasks are facing many
limitations and cannot be applied to become a long-term strategic plan for the whole bank VPBank .
However, with the issues raised in this report and with the support of the Retail Banking Division
managers, the plan will be deepened and adjusted in the coming time.
65 Chapter 7: Overall conclusion | Year 2016 – 2018

Reference list
1. CIA World Factbook - This page was last updated on January 20, 2018
2. Report on consumption loan market in Viet Nam by TPBank:
file:///C:/Users/trangld/Downloads/bao_cao_thi_truong_tai_chinh_tieu_dung%20(1).pdf
3. MW Special Report] Vietnamese consumer finance market
https://thelowdown.momentum.asia/plenty-room-growth-remains-vietnamese-consumer-
finance-market/
4. VPBank monthly report on products
5. VPBank internal document about organization chart
6. http://www.vpbank.com.vn/bai-viet/gioi-thieu-vpbank
7. The gioi di dong annual report 2016: https://mwg.vn/wp-content/uploads/delightful-
downloads/2017/05/MWG_BCTN-2016.pdf
8. VPBank annual report:
http://www.vpbank.com.vn/sites/default/files/pictures/VPBank_AR_2017_Vietnamese_part_1
.pdf
9. The theory of partnership: Why have partnerships by Ronald W. McQuaid, University of
Stirling
10. Delivering excellence in partnership marketing: https://gcs.civilservice.gov.uk/wp-

content/uploads/2017/10/6.3364_CO_Partnerships-guidance_FINAL_WEB.pdf

ANNEX 1: MODEL OF INTERVIEW GUIDE
# Questions Guide (only for interviewer's reference)
I. Loan’s purposes that are most commonly seen among UPL’s customers
- For business purpose: what is the business
sector? (Education, clinic, retail, whole sale,
For the most current UPL contract between
agriculture production, industrial production,
1 you and VPBank, what did you borrow the
motorbike, wedding, house fixing,
money for?
investment, cameras, travel, collection other
hobbies etc.)
- Business: Purchase fixed assets, supplement
capital
- House fixing: rough construction, flooring,
buy furniture, etc.
- Wedding: wedding party, honey moon,
2 What exactly was the money paid for?
wedding photo, etc.
- Investment on what?
- Clinic: Cure, cosmetic surgery
- Hobbies: Travel, electronic devices,
camera, etc.
II. The source of information customers often find when they need supplier
3 For house fixing:
- Super market
- Interior center
Where did you prefer to come and find the - Buy from design company
3.1
furniture? - Ordered at handicraft village
- Interior shop near house
- Other
3.2 Did you need an interior design? - full package or a part

- Search on Google: What is the key word
did you use?
By which channel did you find the - Facebook group
3.3
information about the supplier? - Go direct to the shops
- Referred by friends
- Others
4 For buying a motorbike
4.1 What is the value of your motorbike?
4.2 What is the brand of your motorbike?
did you use?
How did you find information before - Facebook group
4.3
deciding the supplier to buy your motorbike? - Go direct to the shops
- Others
5 For wedding purpose
If "yes", what is the name of your wedding
5.1 Did you rent a wedding planner?
planner
did you use?
How did you find information before
5.2 - Facebook group
deciding to choose that wedding planner?
- Others
6 For clinic
Which medical facility did you choose? State hospital, private hospital, foreign
6.1
(exactly the name) hospital, etc.
How did you find information before did you use?
6.2
deciding to choose that medical facility? - Forum, group

- Others
- Super market
- Online website
For electronic devices, where did you go to
7 - Shop near house
buy it?
- From friend
- Others
8 For Travel
- Self or tour
8.1 In which form did you go travel?
- If tour: What is the name of travel agency?
did you use?
How did you find information before
8.2 - Forum, group
deciding to choose that travel agency?
- Others
*Note: For other purposes, ask the same to know the name of suppliers and how did the respondent
find the information about suppliers
III. About the loan and bank
How much did you need for the purpose you
9
have mentioned?
10 How much did you borrow, in fact?
How much is your credit limit that you were
11
offered by VPBank?
12 Can you tell me the interest rate of the loan?
In which month, did you have the demand for
13
the loan?
If not VPBank, where did you borrow this - Other bank: Interest rate?
14
money? - Other sources?
15 Who do you first think of when you need an Relatives, friend, pawn service, etc.

amount of money?
16 Do you know any other product of VPBank?
- Interest rate, simple document required,
quick process, high credit limit, friends
Which factor do you think is most important
17 reference, service, etc. (keep asking what else
for you to choose a bank for your loan?
and mark the order of all the factors that are
mentioned)
18 Why did you choose VPBank at that time?
IV. Customers demographic
19 Age?
20 Total income?
21 Occupation?
22 Ha Noi?/Ho Chi Minh city?

ANNEX 2: QUALITATIVE RESEARCH RESPONDENTS
# Full Name Gender Age Career Location Income
1 Tong Tat Dat M 32 IT Ha Noi 20 million VND/month no extra
Nguyen Duy
2 M 28 Driver Ha Noi 20-30 million VND/month
Thanh
12 million/month + 5 million extra
3 Hua Manh Quan M 28 Event agency Ha Noi
(average)
4 Bui Hai Anh M 40 State employee Ha Noi 15 million/month
5 Dau Sy Quyet M 44 Worker Ha Noi 7 million/month, no extra
6 Tran Chau Giang F 23 Promotion girl Ha Noi 10-20 million/month
Nguyen Thi Hoai Seller at
7 F 26 Ha Noi 8 million/month, no extra
Tho bookshop
10 million/month for full-time
8 Vu Thi Nhai F 35 Accounting Ha Noi work, 2-3 million/month for part-
time work
To Phuong
9 F 49 Business Ha Noi 50-70 million/month
Thanh
Nguyen Bao
10 F 32 Shop owner Ha Noi 30 million/month
Chau
Pham Duy Ho Chi Minh
11 M 26 Logistic 15 million/month
Phuong city
Ho Chi Minh
12 Tran Thanh Tu M 37 Small business 25 million/month
city
Ho Chi Minh
13 Pham Minh Ha M 34 State employee 5.5 million/month
city
Ho Chi Minh
14 Le Minh Anh M 50 Small business 20 - 30 million/month
city
Ho Chi Minh
15 Pham Phuoc M 55 Driver 10-15 million/month
city
Huynh Thu Ho Chi Minh 4.5 million/month, 3
16 F 43 Teacher
Huong city million/month for part - time work
Ho Chi Minh
17 Nguyen Thi Tuoi F 31 Worker 11 million/month
city
Ho Chi Minh
18 Ta Minh Loan F 30 Banking 25 million/month
city
Ho Chi Minh
19 Hoang Thu Ha F 30 Driver 10-20 million/month
city
20 Chu Thu Phuong F 21 Baker, student Ho Chi Minh 15 million/month
ANNEX 3: MODEL OF QUESTIONAIRE
UPL CUSTOMERS INSIGHT
With purpose of improving product quality and service in order to bring customers better
experience in the future, we would like to invite you to take 2-3 minutes to take participate in the
survey from VPBank. We affirm that your identity will be kept absolutely confidential.
This survey is conducted by an independent party. Therefore, the results of the survey will not affect
the credit monitoring process and the approval of your current or future credit.
Date_ _/ _ _/ 2018
A What do you want to borrow UPL for? (only 1 answer)
□ Partially or fully for business purpose (skip to part B)
□ For consumption and shopping (skip to part C)
B Business (question 1 -7)
1 What is your business field? (only 1 answer)

□ Service (medical, beauty, cafe, ...)
□ Retail/wholesale (shop, online sale ...)

□ Industrial production (electronic, mechanical, garment, ...)
□ Agricultural production (grow and feed, ...)
□ Other (detail)

2 What is the purpose of your loan? (choose 1 answer)
□ Fix asset financing: Machine, equipment with high value
□ Working capital financing: input materials, goods...
□ Both
3 Where do you usually buy machine, equipment for your business? (Multiple choice)
□ New purchase from reputable firms in the country
□ Import directly from abroad
□ Buy from old machine and equipment traders
□ Others (detail)
4 How do you find information about the sellers? (Multiple choice)
□ Google search (specify which key words to use to search

□ Suppliers' official website
□ Friend referral
□ Other (detail)
5 Where do you usually buy input materials? (multiple choice)
□ Wholesales market, handicraft village
□ Import directly from abroad
□ Other (detail)
6 What is the monthly purchase frequency? (only 1 answer)
□ 1 time/ 3 months and less
□ 1 times/ 2 months
□ From 1-2 times per month

□ More than 2 times
7 What is the value per purchase? (1 answer)
□ Less than 20 million VND
□ From 20 million VND to 50 million VND
□ From 50 million VND to 100 million VND
□ More than 100 million VND
Skip to part K
C What is the purpose of your loan? (multiple choice)
□ House construction (rough construction, furniture, flooring, etc.) Skip to part D

□ Motorbike (skip to E)
□ Wedding (skip to F)
□ Medical cosmetic (Skip to G)
□ Personal hobbies (skip to H)
□ Other: (Detail).................... - (Skip to part I)
D House construction
In case you borrowed to repair your house, please indicate the specific purpose (multiple
1
choices)
□ Raw building
□ Buy furniture, households’ appliances, electronics devices, etc.)
□ Flooring (wood, brick, stone, etc.)
□ Paint
□ Other: Detail...........................

2 Did you use construction consulting service? (1 answer)
□ Did not
□ Partially used
□ Used full package services
3 Where do you usually buy? (multiple choice)
□ Buy from construction company
□ Super market, interior super market, home appliance showroom
□ Order at handicraft village
□ Street full of furniture shop
□ Retail stores near house
□ Other: Detail...........................
4 How do you find information about the sellers? (Multiple choice)
□ Google search (specify which key words to use to search)
□ Directly buy at interior super market, showroom
□ Friend referral
□ Other (detail)
Skip to part I
E MUA XE MÁY
1 How much did your motorbike cost? (1 answer)

□ 50 - 100 million VND
□ 100 - 200 million VND

□ more than 200 million VND
2 Of which brand? (1 answer)
□ Honda
□ Piaggio
□ Yamaha
□ Ducati
□ Suzuki
□ Kawasaki
□ Other: detail..........................
3 How did you find information about motorbike seller? (multiple choice)

□ Motorbike brand' official website
□ Directly buy at showroom
□ Friend referral
□ Motorbike trade website
□ Other (detail)
Skip to part I
F Wedding
1 Where are you living? (1 answer)

□ Ha Noi/Ho Chi Minh
□ Suburban Ha Noi/Ho Chi Minh
□ Other province
2 Did you rent a wedding agency? (1 answer)
□ No
□ Yes

3 What was the specific purpose that you borrowed money for? (multiple choice)
□ Wedding banquet
□ Honey moon
□ Wedding room interior
□ Wedding photo album
□ Other: Detail........................................
4 How did you find service supplier? (multiple choice)

□ Friend referral
□ Other (detail)..................
Skip to part I
G Medical/Beauty
1 What was the specific purpose that you borrowed money for? (multiple choice)
□ Health healing
□ Cosmetic surgery
□ Other (detail)..................
2 Which health facility did you choose? (multiple choice)
□ State hospital
□ Private hospital
□ Foreign hospital
□ Other: detail......................
3 How did you find information about that medical facility? (multiple choice)

□ Medical facility official website
□ Friend referral
□ Facebook page/ forum
□ Other: detail...................
Skip to Part I
K Personal hobbies
1 What was the specific purpose that you borrowed money for? (1 answer)
□ Shopping (cameras, smart device, phone, tablet (skip to question No 2-3)

□ Travelling (Skip to question 4)
□ Other: detail.................................
2 Where did you mostly go for shopping (1 answer)
□ Big super market, shopping center
□ Street concentrated by electronic/house hold appliance shops
□ Retail shops near house
□ Website online
□ Other: detail.................................
3 Did you rent a travel agency for your travel (1 answer)
□ No
□ Yes
How did you find information about products/services supplier for your need? (multiple
4
choice)

□ Facebook page/ forum/ club
□ Friend referral
□ Other: detail..............................
Skip to part I
I General questions
How much did you need to borrow for the purpose you have mentioned above?
1
...............................................
How much did you borrow in reality?

2 ...............................................
In which month did you want to borrow this money?

3
...................................................................
Rank your understand about VPBank's overdraft (from 1 to 4 with 4 is the highest)
4
⃝ 1 ⃝ 2 ⃝ 3 ⃝ 4
Rank your understand about VPBank's credit card (from 1 to 4 with 4 is the highest)
5
⃝ 1 ⃝ 2 ⃝ 3 ⃝ 4
Demographic
Age: ......................................
Income: ...................................
□ Income from salary: .............................
□ Income from business: .............................
Thank you for your participant!


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Year 2016 – 2018

MASTER OF MARKETING AND PROSPECTIVE

PARTNERSHIP MARKETING PROGRAM FOR INCREASING SALES

By: LE DIEU TRANG

Supervisor: PhD PHAM THI LIEN

1 Chapter 1: Introduction | Year 2016 – 2018

3 Chapter 1: Introduction | Year 2016 – 2018

4 Chapter 1: Introduction | Year 2016 – 2018

5 Chapter 1: Introduction | Year 2016 – 2018

6 Chapter 1: Introduction | Year 2016 – 2018

1.1 Background of the study

1.2 General objectives of the study

The study has been undertaken with the following objectives:

1.3 Methodology of the study

1.4 Scope and Limitation of the study

8 Chapter 1: Introduction | Year 2016 – 2018

1.5 Thesis outline

This report is divided into six chapters.

1.6 Contribution and future study

1.6.1. Contribution to VPBank

9 Chapter 1: Introduction | Year 2016 – 2018

10 Chapter 1: Introduction | Year 2016 – 2018

2.1 Bank and it activities

• Bank is a financial institution authorized by a government to accept deposit, pays interest,

2.2 Unsecured lending market

2.2.1 Unsecured personal loan

2.2.2 Unsecured lending market

2.3.1 General view

2.3.2 Partnership approach

Figure 2-1 Partnership pyramid

3.1 Historical background of VPBank7

Vietnam Prosperity Joint-Stock Commercial Bank (formerly known as Vietnam Joint-Stock

Figure 3-1 VPBank branches allocation

3.2 Mission, Vision, Development Strategy and Core value of VPBank

As one of the earliest-established Joint-stock Commercial banks in Vietnam, VPBank has

17 Chapter 3: Overview of VPBank | Year 2016 – 2018

Figure 3-2 VPBank organization chart9

Figure 3-3 VPBank Retail Banking Division organization chart

20 Chapter 3: Overview of VPBank | Year 2016 – 2018

21 Chapter 3: Overview of VPBank | Year 2016 – 2018

22 Chapter 3: Overview of VPBank | Year 2016 – 2018

3.6 VPBank’s UPL current situation and problems

3.6.1 SWOT analysis of VPBank’s UPL

(1) Wide distribution network (1) Ability of bad bank management

(2) Diversified products (2) Lack of customers resource

VPBank – Retail Banking has a porfolio of Previously, VPBank targeted to individuals

The diffrence that VPBank is following is one.

(1) Unsecured lending market is

potential and has plenty of room for market

development in Vietnam The regulation also tighten the rules in

Consumer finance is expected to play a lending and debt management.

central role in Vietnam's transition to a more (2) Competitors:

should be encouraged as it ensures access to institutions join unsecured lending market

credit, especially for middle-income earners make it more competitive

and plays an important role in improving the

3.6.2 Competition situation in unsecured lending market

24 Chapter 3: Overview of VPBank | Year 2016 – 2018

c) Fin-tech Companies: Mobivi; Loanvi; DoctorDong

25 Chapter 3: Overview of VPBank | Year 2016 – 2018

26 Chapter 3: Overview of VPBank | Year 2016 – 2018

27 | Year 2016 – 2018 MASTER OF

4.1 Objectives of qualitative and quantitative study