Marketing Around you

Group Assignment – Fin202

 Group member Assigned part Level of
completion

1. Industry overview :

According to the "2023 Global Marketing Trends" report by Deloitte, CMOs (Chief Marketing
Officers) are facing external challenges such as conflicts, economic instability, and climate
change threats. However, they are well-positioned to create new levers for organizational growth
amidst such uncertainty [1]. The report provides insights from executive surveys and
conversations conducted with brand leaders, highlighting four trends that could help marketers
elevate their contributions to brand success and guide CMOs in setting priorities for 2023.

Gartner several predictions for marketing focus in 2023. These predictions include the
implementation of operational AI for smarter, data-driven decisions, the creation of a
authenticity team to combat misinformation, the redeployment of a media budgets to product
placement, and the establishment of loyalty programs to retain high-priority customers [2]. These
predictions reflect the evolving landscape of marketing and the need for marketers to adapt to
changing consumer behaviors and technological advancements.

The global marketing technology (MarTech) market is expected to experience significant

growth. The market was valued at USD 325.7 billion in 2022 and is projected to grow at a
compound annual growth rate (CAGR) of 19.8% from 2023 to 2030 [3]. The increasing reliance
on technology in marketing, the changing and fragmented customer journeys, and the need for
scalability and effective communication with colleagues and clients contribute to the growth of
MarTech. Automation, rich media tools, and personalized marketing through AI-powered
platforms are among the factors augmenting market growth.

2. Buniness idea:

MAY office is a small business specializing in providing communication services and

setting up ideas for successful marketing campaigns for other businesses and brands for the
purpose of advertising items, promoting brands and families. increase customer awareness of
the brand. The phrase "Marketing Around You" is the name of the business and is a
combination of three letters M, A, Y.

We first established our business with the following basic VISION, MISSION AND
CORE VALUES. Initially, we established MAY with the goal of becoming the leading
integrated marketing and communication office in Dong Anh district. We built MAY to be
able to address customer requirements as well as a good opportunity to expand the service
industry. We do this after realizing the necessity and difficulty of introducing other brands'
products and building strong brands to consumers.

Second, changing negative media perceptions is an important component of our

mission. Currently, communication and marketing strategies are not working and going in the
wrong direction. MAY has identified the problem and set a new course of action to change
its perspective on marketing and communication to better serve all consumer needs.

MAY's leadership, created by young and dynamic individuals, has established three
guiding principles: innovation, development and breakthrough. Customer expectations are
constantly changing as modern technological developments require the latest technologies.
Therefore, MAY will need to regularly adjust its strategy to match the requirements of its
customers.

MAY was established on January 10, 2023, with financial investment from five main
members of the office totaling USD 100,000. To develop the business, the group will add
more personnel to the departments. The company is scheduled to open its operations on
February 18, 2023, and the company's top priority is to increase revenue by 20% annually for
the first three years.

3. Market Analysis:
a. Target audiences:
 By May, small and medium enterprises and business individuals are the target customer
group for that market area.
 Small and medium enterprises are highly sought after to build an image in the eyes of
consumers. Furthermore, they need to encourage customer buying behavior but lack
successful business plans.
 Next, people and small businesses ask for solutions and plans of MAY's advisors in
addition to successful advertising and communication campaigns.
b. SWOT:
- Strength:
• In addition, with a newly established office in a market with fewer potential customers
than the physical service market, the big players in the industry are always looking for
ways to get out of the small chair. Therefore, in order for new businesses to compete for
even the smallest market share, they must constantly find ways to adapt, enhance and
innovate their products and services. Anything to do with MAY? To provide one of the
lowest prices for services in the market, May will develop strengths available inside the
office, investigate the pricing of competing brands and examine the entire market. Aim to
demonstrate step-by-step how good service doesn't have to be expensive.
• Second, we will be successful in the area of customer contact, always taking on the role
of the customer and working through their predicament to get feedback on it and move on
to the next stage. concept and options for customers. We will always create trends and
adapt to the market situation by mimicking the actions of consumers and offices. In
addition, consumers will always be included in MAY's plans as they act as managers,
sources of ideas, and the link between problem and strategy. Until the plan is ideal and
feasible for them, they will be individually consulted on a variety of proposals and will
have the opportunity to explicitly reject proposals they do not like.
• Finally, by incorporating it into its corporate culture, MAY promotes the training of
both young people and full-time MAY employees to work creatively and effectively.
 Departments will always work together to understand each other's work, thereby
completing work more and more efficiently. During the monthly creative months that the
company organizes, we will set up key prizes for both the department and the people,
encouraging both innovation and teamwork.
- Weakness:
 When a new marketing office enters the market, there will be pressure to regain market
share from established offices and companies. It is quite difficult to have little or no
market share in the industry; we have to develop extremely unique tactics with limited
time to bring to market.
 In addition, the new MAY on the market will not have repeat customers, requiring more
marketing efforts in the future. Creating such plans requires caution, as customers will be
wary of too many great services or too many new goods.
- Opportunities:
 Exploiting past agency failures, learning from that experience and using our ability to
develop new steps is one of the essential opportunities in this field. Furthermore, when
they provide business advice and idea generation, their errors are clearly displayed.
 Second, we will use those gaps to refine our concepts and vision to better serve the needs
of the office and pay them fairly without overcharging. effort into the process of
exploitation and new concepts
 Third, the market is still small, big companies haven't focused much and we can start to
dominate the market by raising prices and improving products. Moreover, we will imitate
small and medium enterprises to create credibility and access more lucrative markets.
- Threat:
 The biggest risk is that big businesses could initiate new scare tactics against start-up
offices like ours, with extremely unpredictable results. What's more, we will be one of the
market leaders during the downturn while other offices and companies will delay the
launch of new initiatives. In the end, it is possible that the majority of consumers in the
market will not be interested in our new product.

c. Competitor analysis:
a. Schannel:
- Strength:
 Broad client base: Schannel has a tremendous consumer base because of the
connections it has made with several Vietnamese companies and brands.
 Comprehensive list of marketing services: Schannel provides a comprehensive list of
marketing services, including media advertising, digital marketing, brand
management, and event planning. This makes it possible for them to satisfy the
various demands of their clients.
 Creativity: Schannel can think creatively and provide original ways to add impact to
customers' marketing initiatives..
- Weakness:
 Modest size: Schannel is quite modest in comparison to certain major media and
advertising organizations. Our capacity to reach and service big, global clients may be
impacted by this.
 Restrictions on Resources: Due to its limited size, Schannel may find it challenging to
invest in crucial resources including cutting-edge technology, qualified staff, and
partnerships.
b. Ogilvy Vietnam:
- Strength:
 • Strong Brands: Ogilvy, one of the top media and advertising firms in the world, with
a solid reputation and a well-known brand name. This gives Ogilvy Vietnam impetus
to draw in significant numbers of clients from across the world.
 Worldwide reach: Ogilvy Vietnam is supported by the company's worldwide
network, giving them access to global resources, expertise, and knowledge. This
makes it easier for Ogilvy Vietnam to provide its global customers full advertising
and marketing services.
 Quality and expertise: Ogilvy Vietnam has a crew that is skilled and experienced,
able to match the high standards of quality and creativity of clients.
- Weakness:
 High prices: Ogilvy Vietnam frequently charges more than its rivals because to its
reputation and clout. This can be a drawback for those with tight budgets.
  Competition from local businesses: Despite having an international advantage, Ogilvy
Vietnam is up against local media and advertising firms that are well-versed in the
Vietnamese market and its target audience.
d. Assumptions for development and operating expenses:
- Assumptions for the development of MAY office: for MAY, our top goal is to try to
grow the number of customers reaching each year and through that to bring about an
annual revenue growth of 20 %. We evaluate this number at a market correlation and to
fully guarantee risk and sustainable growth, 20% per year is the first assumption.
- Assumptions for Growth in Operating Expenses: In addition to the fixed amortization
cost per year, I assume that each expense I spend will grow by 8% per year as this is the
average growth against average inflation in Vietnam is about 4.2%. Besides, we also
assume that 8% is an appropriate number for service providers to increase and in line
with Vietnam's GDP growth in 2022.
- Assumption for Cost Of Capital: we have researched with an investment of $ 100,000 we
can deposit in Ocean Bank and enjoy an average annual interest rate of 9%. Therefore,
the opportunity cost we will lose instead of having to invest in the MAY office project is
equivalent to the estimated Cost of Capital at 9%.
- Assumptions for the number of projects per year that MAY can do with 10 members: On
average, a marketing office can achieve 200 to 250 different projects per year and we
assume we will reach 200 projects for first year which is about 18 projects per month for
the first year.
- Assumption of expenses: assumes that all costs for the purchase of equipment and other
costs are being valued at present, and that those costs are covered in the references link
we attached after each price in each excel file.
- Payback Assumption: With May we assume that in 3 years we will be able to fully
recover the capital.

4. Report ( Analyze financial ratios ).

- Sales Growth Rate: In the first year we generated $75,586.32 in sales and grew 20% each
year so the sales growth metric shows how much revenue the company can generate from
year to year from the initial investment of the project.
- NPV: MAY's NPV after 5 years is $5,097.10, which shows that our project is profitable
and has the potential to create value for MAY. It means that the present value of the cash
flows is greater than the initial investment cost of the project. With a positive NPV, the
MAY project is likely to generate profits and return on investment in time. This can help
strengthen MAY's position in the market and increase competitiveness.
- IRR: The IRR shows the ratio of the return on the project to the initial investment. If the
IRR exceeds the market interest rate, the project is a reliable choice. With the IRR of this
project exceeding the specific market interest rate MAY's IRR by up to 11.46%, we can
conclude that the MAY project is a worthwhile investment option considering only the
IRR index.
- MIRR: The MIRR shows the rate of return on the project, if we reinvest all the cash
flows from the project into a new investment at the market rate of return. With the MIRR
of MAY after 5 years reaching 10.74%, we can conclude that the MAY project will bring
attractive profits to investors.
- Payback Period: The Payback Period indicator shows the time it takes to get back the
initial investment. Initially, we expected to be able to repay the capital after 5 years, but
the real time to payback for the MAY project is only 4.37 years. This indicator is a lot
shorter than our true breakeven assumption which shows that MAY is really worth
taking.
5. Conclusion:
Concluding that when IRR, MIRR and Payback Period, Discounted PP all meet my
expectations, it is a clear sign that the MAY project is being effectively managed and
implemented. This means that the project is bringing profits and long-term value to our
office.
The IRR shows the rate of return achieved over the life of the project. The IRR index is
even greater than the satisfactory threshold of MAY that we set forth, so the conclusion
MAY project is considered profitable and has the ability to recover capital. The MIRR
provides a more holistic picture of the average return over the entire project life. And the
Payback period indicator shows the time it takes to recover the initial investment.
With all these indicators achieving the set goal, I believe that the project has been
carefully evaluated and implemented and meets the business's effective investment criteria. I
 hope the project will continue to develop and contribute to the sustainable development of
the business in the future.
6. Risk management:
- Financial risk:
Risks: As a young company, MAY may experience financial challenges, such as having trouble
securing funding for the company's expansion and maintenance.
Solution: MAY can look for outside financial sources like venture capital, investors, or startup
investment. The business should also think about maximizing profitability, assuring resource
efficiency, and internal financial management optimization..
- Risks of technological change:
Risk: As technology advances continuously, the marketing industry is changing quickly. New
technological developments could be challenging for MAY to understand and implement,
leading to missed opportunities and insufficient competition.
Solution: MAY has to spend money on research and educating employees in the newest
marketing techniques. To keep current with emerging trends and incorporate them into their
marketing strategies, the business must also establish a network of connections with technology
specialists and businesses.
- Market positioning risks:
Risks: It could be challenging to identify and target the market. Lack of focus and ignorance of
client demands and wants might result in inefficient investment and a loss of market share.
To understand the demands of its clients and rivals, MAY must undertake a comprehensive
market analysis. The firm must have clear objectives, a workable business model, and a
marketing plan that is centered on its intended market.
7. References:
[1]. Deloitte. (2023). 2023 Global Marketing Trends: Resilient seeds for growth. Retrieved from:
mailto:https://www2.deloitte.com/us/en/insights/topics/marketing-and-sales-operations/global-
marketing-trends.html
[2]. Gartner. (2023). What Will Marketing Focus on in 2023? Retrieved from:
mailto:https://www.gartner.com/en/articles/what-will-marketing-focus-on-in-2023
[3]. Grand View Research. (2023). Marketing Technology (MarTech) Market Size [2023
Report]. Retrieved from:
mailto:https://www.grandviewresearch.com/industry-analysis/marketing-technology-martech-
market-report