PHU QUOC ISLAND

MARKETING PLAN IN ATTRACTING WESTERN TOURISTS

2010 – 2015

Phu Quoc Management and Development Unit

A Living Document

Prepared by

MDE 16-7 Consultancy Group

A joined program between University of Economics of Hochiminh City - Vietnam and

Erasmus University Rotterdam – Netherlands.

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Executive Summary

Consultancy Group MDE 16-7 were asked by Phu Quoc Management and Development Unit to

prepare this strategy to be a part of Phu Quoc’s Acting Plan in five years 2010-2015.

The project has been developed in order to determine the 03 year-guide map for preparing and

developing Phu Quoc an attractive destination as well as enticing stably more and more Western

tourist enjoying this pearl land.

Through Part 1, and 3 of analyzing progress which includes place description, demand supply

analysis (industry-customer analysis), and competitiveness analysis we find out the Western

tourist who are from Europe (Russia included) and North America take the majority of

international tourist visiting Phu Quoc by years. However, the annual pax volume is fluctuated

showing there are still many things Phu Quoc has to do for a tourism sustainable development in

terms of quantity and quality.

After the strategic focus pointed out part 2, SWOT analysis resulted in part 3 we use Life Cycle

graph, Four Abilities figure, and Mc Kinsey matrix to identify the position of development

phase, strategic navigation, and visualization about investment’s budget respectively. The

combined result getting from SWOT and above analysis tools help us to pick up some main ideas

which can be deployed for the next step of specific targets.

We set ideas into modules of 4Ps objectives which specified by mixed-method of image

marketing, attraction marketing, infrastructure marketing, and people marketing in Part 4. The

concept of Porter’s value chain is applied to make more value to the product development.

Preparation for funding the project into fact is considered in Part 6, we will examine the financial

sources sponsoring.

Marketing Program in part 6 & and Implementation plan in part 7 would be provided programs

to be coordinated for meeting objectives. Timing is vital factor in this part.

Part 8 concerns to the evaluation & monitoring process in which the quantifiable criteria are used

for evaluating and periodic criteria for monitoring the implementation.

The overall approach to reaching these objectives is presented in the Project as the primary phase

developing an effective, coordinated and tangible marketing program for Phu Quoc. This Project

should be treated as a Living Document and should be continually revised and updated.

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Table of Contents

Contents

1. The Place Description..............................................................................................................32. Strategic focus:........................................................................................................................73. Situation analysis.....................................................................................................................84. Product Market Focus............................................................................................................185. Marketing Program................................................................................................................206. Financial Projection...............................................................................................................237. Implement Plan......................................................................................................................258. Evaluation & Control.............................................................................................................30Appendix:......................................................................................................................................31Reference.......................................................................................................................................38The Place Description

1.1. Overall

Phú Quốc, an administrative unit of Kiên Giang province, is the largest island of Vietnam with

coastal periphery length of 150km. In fact is a group of islands situated in the Gulf of Thailand

but are uni-deemed as one island, never has to face the natural disasters like storm, earthquake,

or tsunami, etc. The district of Phú Quốc includes the island proper and 21 smaller islets. The

district seat, Dương Đông, which is located on the west coast, is also the largest town on this

island, whose total area is 593.05 km².

1.2. Natural & Social conditions

Thanks for location in region of tropical monsoon, Phu Quoc holds a most primeval ecological

system in South of Vietnam in terms of jungle and seabed. It is remained some nearly extinction

creatures all over the world such as dugongs, Hawkbill tortoise, Leatherback turtle, or a rare kind

of melaleuca.

Verdant and topographically varied, the island offers the visitor an array for landscapes, ranging

from sandy beaches and coves to most wild forest, creak from mountain to the white beach, and

smaller islets which together make up an archipelago of 26 islands. The island-surrounding sea-

areas’ depth is under 10m that is very appropriate for tourism development especially sea-water

activities. The favor natural conditions make Phu Quoc satisfied tourist’s demand of relaxing,

experiencing and exploring all years.

The island's variety extends to its maritime heritage, Phu Quoc having both an active fishing

industry and good quality coral reefs, most notably to the south and northwest of the island.

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The population, numbering around 85,000, has traditionally beeb associated with the sea, and the

island's most the striking cultural traits remain the fishing communities of the two main towns,

Duong Dong and An Thoi as well as host of smaller and very distinctive fishing villages dotted

around the island. The island has also however attracted considerable migration from to respond

to growing opportunities in the service industries spurred on by tourism.

In the centre and south much of the original lowland tropical evergreen forest cover has been

cleared leaving behind a mix of agricultural and secondary forest landscapes and a variety of

rural, settlements. These areas contrast with denser and more extensive rainforest areas in the

north which national conservation laws protect and whose scenery is particularly striking when

combined with the natural coasting and rivers.

Phu Quoc is geographically familiar to Vietnamese people, particularly in the south of the

country where its tropical island status and mountainous character contrasts sharply with the

flatlands of the Mekong Delta. Internationally it is an almost unknown destination, with only

specialist features of the island, notably the Phu Quoc fish sauce "nuoc mam", Phu Quoc pepper,

"ho tieu" and Phu Quoc dog (unique ridgeback breed). However, Phu Quoc owns rich resources

not only for satisfying tourist’s sightseeing desire but also for their needs of foodstuff

experiment.

1.3. Strategic Location

Located 10-degree North latitude, Phu Quoc is a tropical island whose closest landing point in

Vietnam by sea is the town of Ha Tien, also in Kien Giang province and is 46 km away. Rach

Gia city, the capital of the province is 120 km away and be reached by sea and by air (25 minute

fly). Ho Chi Minh City is some 500 km away and is accessible by air (60 minutes fly). Phu

Quoc’s Beach is remote from oil-mines and industrial zones that the quality of sea water, and

beach is far fine from other beach’s destinations of Vietnam. Besides, it takes shortest distance

from here to any Southeast Asian countries’ capitol in compare to certain place in Vietnam.

1.4. Economy

GDP per capita is soaring with value from Vnd 12 million/year of 2005 up to Vnd 30.4

million/year of 2010(estimated).

Phu Quoc is famous for its two traditional products: fish sauce and black pepper. The rich fishing

grounds offshore provides the anchovy catch from which the prized sauce is made. Pepper

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cultivation is located inland in the center of the island. More recently a pearl farm was

established.

Tourism though starts contribute to the local GDP since 2000 but quickly plays an important part

of the economy structures with the beaches being the main attraction with the total revenue is

Vnd 404 billion in 2009 with an annual average growth rate of 40%/year.

Current infrastructure is still backward. Externality connectivity is based on one small airport

that plane ATR can landed, and An Thoi port of low capacity. The internal traffic system is

mainly macadam-covered roads.The infrastructure is now continuously improved by building

International Phu Quoc Airport that can serve Boeing 747, International An Thoi port that can

receive simultaneously two ships of 30,000 DWT and one boat-cruiser with capacity of 200~300

pax. The internal system road is invested with surrounding path project of 1,300 billion Vietnam

dong. The electric capacity is innovated by 05 generators supplemented with upload capacity of

15 MW. TKVN has made due diligence for thermal electricity as well as the coming up sea-

cable electric line of 110 KV from Ha Tien.

Public service like education and healthcare is under-developed with only 100 schooling-rooms

and 12 clinical points with ratio of 20 doctor/10,000 persons (2009).

1.5. Brief history of the island

In the early 17th century, Phu Quoc was a desolate area, where Vietnamese and Chinese

immigrants earned their living from sea cucumbers. From 1782 to 1786, Phu Quoc became a

stronghold of Lord Nguyen Anh, later Emperor Gia Long, in his confrontation with Tay Son

forces. Between 1841 and 1847, 12 villages were recorded on the island, including Duong Dong,

Gach Dau and Cua Can.

In 1869, the French occupied it and set up rubber and coconut plantations in the island. From

1967 to 1972, a P.O.W detention camp of 40,000 inmates during the war covering on 400

hectares was built at An Thoi by the Saigon regime.

Population records suggest a very small population on the island: in the late 19th and early 20th

Century less than 1,000 people resided on Phu Quoc, mostly distributed among small fishing

communities. After being liberated on 30 April 1975, Phu Quoc has been converted into an ideal

tourist destination for nature and sea lovers.

1.6. Traditional Customs & Festivals

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Like special events everywhere, the local festival days based on the lunar calender falling on

Oct.,16 (Dinh Cau Temple); Nov., 20 (Thuy Long Thanh Mau Temple); July 15 (Temple

consecration ); July 30 (Sung Hung Ancient Pagoda consecration); Ham Ninh Lady's spirits

memory; Oct.7 & 8 (Su Muon Pagoda); Sep. 25 & 26 (Suoi Da Pagoda; Sep. 26 & 27 (Ganh Gio

Pagoda); August 27 (Nguyen Trung Truc monument's day) ; July 27 (Phu Quoc jail martyr

Vietnamese monument's day); Jan. 15 (Gia King's Temple day); From Oct.3, 1997 (Many local

people died in the Storm no. 5 ); May 16 (Bon Canh Temple day).

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1. Strategic focus:

Long term Vision: Phu Quoc would be national & regional center of tourism, finance,

technology and science in 2030 in terms of Southeast Asia. In order to bring this vision into fact

of 2030, Phu Quoc has to prepare all the conditions which are not for tourism only but also for

further development of economy such as infrastructure, public service, labor force, financial

fund. However, we understand the resource is limited that Phu Quoc need to set up a long-term

phase by phase strategy in which deploy the tourism advantage as the corner stone to attract, and

accumulate resource of human, and finance. The more development that Phu Quoc’s tourism

industry together with its accompanied services is, the more attractive strengths for Phu Quoc

implement the long term Vision.

Project goal: Under the decision No. 633/QD-TTg date 11 May 2010, the Government targets

until 2020 there are annually 2 ~ 3 million tourist visiting Phu Quoc in which foreigner 35~40%

that equals 850,000 ~ 1,000,000 pax/year. This target requires a growth rate of 50 ~ 100%/year.

The situation analysis gave us the core market segment we should focus on is Western &

Northern European (Russia included), and Northern America (USA, Canada). This project gives

Phu Quoc the guideline for successfully building up Phu Quoc as a branded attractive

destination to the market segment for a growth of 50~100%/year.

Core competence: Phu Quoc will achieve brand name “Hidden Beach – JOURNEY TO THE

ORIGINAL” satisfying, facilitating comfortably most of demand and desire with our various,

beautiful, clean, wild sightseeing, services, and the friendliness.

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2. Situation analysis

1.1. The industry analysis

1.1.1. Global Travel & Tourism industry

According to the UNWTO, 846 million international visitor arrivals generated US$733 billion

(US$2 billion/day) in tourism revenue in 2006. Tourism represents 35 percent the world’s export

of services and over 70 percent in the Least Development Countries. The UNWTO predicts that

international tourism demand will double by 2020 to an astronomical 1.6 billion visitors

generating well over US$1 trillion.

Currently, the tourism industry is characterized by a variety of issues and trends, which present a

range of inherent threats and opportunities. These include, but are not necessarily limited to as

the appendix No. :

1.1.2. Vietnam Industry Analysis

Vietnam is one of the popular tourist destinations in Asian Pacific regions, and its tourism

industry has been developed in the recently years, Vietnam tourism sector contributes to

Vietnam’s GDP 4% and expected to contribute to 8% in next 10 years (2020)*. In 2008, total

outbound tourist from Vietnam also achieved an all-time record high and next year later (2009),

although the world financial crisis, tourism industry stills increase around 2% (with the

impression increase of domestic visitors). That proved that Vietnam tourism industry have a

large potential to develop more. Below is the table demonstrating the development of Vietnam

tourism from 1990 to 2009 by visitor.

Figure 1 - Vietnam Tourism Visitors

(Source: Vietnam National Administration of Tourism_Index, 2009)

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It is said that Vietnam has a lot of good conditions for tourism industry to boom in the future.

Vietnam’s geography has diversity of special regions help Vietnam has many tourism forms

(from mountains, highlands, streams, to delta, beach, coral reef,…). Beside that, a population

with 54 ethnic groups and long-standing culture (4000 years), Vietnam has the large number of

ancient templates (Champa towers, pagodas,…), places (Ben Thanh market, Hoi An town, Ha

Noi’s 36 streets,…), museums (Ho Chi Minh museum, War museum, Revolutionary museum,

…), diversity of festival (both modern and folk festivals are hold usually). Its characteristics

make Vietnam become the destination to attract multi-purpose visitors to visit (discovery,

explorer, retirement, travelling,..).

With the threat of the terrorism in the world and the unstable policies more popularize in the

recently years, the most stabled policy nation like Vietnam gives the preference choice for the

visitor who want to have a safe trip.

Now, with the orients of the Vietnam government to develop more tourism industry (contribute

8% GDP in 2020), many policies and investment encouragement of Government (from luxury

hotels, beach resorts, gold courses, and airport) is currently deploying, help to improve the

infrastructure, paper-work lessen, attract diversity of economic elements jump to this industry.

The privatization process is now happening that asserts some currently tourism companies to

improve their service qualify. By the exchange rate regime was fixed and adjusted to beneficial

for foreign visitors, Vietnam’s tourism sector has advantage on price to compete with other

competitor countries in Asian region. All of their things make the Vietnam’s tourism industry

has the impression portray to take off in the future.

1.1.3. Phu Quoc Analysis

As the statistic document done in 2009, Phu Quoc has about 629 units operating in tourism

services, and 1,773 units in hotel and restaurant sector by the total labor force of 3,534 people.

Phu Quoc is the specific place that Vietnam expects to be the place able to compete with Phuket

(Thailand) and Bali (Indonesia) in the future. Phu Quoc has a lot of stand-out conditions for

tourism, from natural conditions to special policies for its place. Its advantage now can be seen

by the large investment into that place. From the record of April 2010, Phu Quoc has 213

registered projects (4000 billion VND capitals –39 projects accepted), most of them are beach,

spa, and retirement resorts.

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Phu Quoc’s infrastructure is still weak, quality of road connecting around areas of island is

under-developed. Not enough energy supply, fresh water supply is the main reason to boost the

development of Phu Quoc, but now with the investment of 6 remarkable projects (project of 110

KV underground cable connection between Ha Tien-Phu Quoc and other future electric

generator of wind, thermal; project of garbage collection system and wastewater treatment

manufactory for all island, Ham Ninh; project of upgrade water reservoir lake of Duong Duong,

Suoi Lon, Rach Ca, project of solar energy development in Hon Thom island), the limited of

these things can be temporary resolved.

With its geography, Phu Quoc has favored conditions that can develop many tourism forms

(from retirement, travelling tour to explorer, discovery tour), moreover, with the specific

policies, Phu Quoc visitor is now visa exemption for less than 15 day staying, and Phu Quoc can

lure more visitors with the first real casino in Vietnam.

With the island position where are little affected by bad weathers, diseases, and locate in the

international cruise, Phu Quoc has good conditions to attract visitor all time in year. Moreover,

the transportation between Phu Quoc island and homeland are beneficial by the cheaper ticket

price.

Beside their conditions, Phu Quoc has explored some weakness. First is the bad condition of the

transportation system in terms of internality and externality. Except of Duong Dong Town’s road

system is good, the remaining is still under-developed situation. The roads are small, rough, and

clay-stone-covered. These would go bad if Phu Quoc gets rain. The connectivity ability is still

limit with a small airport which can receive only plane like ATR, or Fokker 70. Now, Vietnam

airlines is main carrier which 09 fights every day from Ho Chi Minh city to Phu quoc, and on

Oct 2010 Mekong Air will the second carrier supply these routes. Other infrastructure’s

weaknesses in terms of energy, hospital, and banking are also take down Phu Quoc’s attraction.

The second is the poor services for tourism on the island. The services now concentrate on

Duong Dong Town but not many. Other destinations like Bai Truong, Bai Sao, Bai Khem the

services is still under-developed. Visitor after day of enjoying beautiful sightseeing will get

disappoint when Phu Quoc get night. If they cannot go out for night-fishing there would be no

recreating activities happening here excepting some bar operated by foreigners. The tours

operating on Phu Quoc are mostly depended natural conditions such as taking tourist visiting

from a place to a place while the added value activities are absent. The usual tour package

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includes swimming, bathing, sightseeing, visiting pearl camp, visiting Phu Quoc’s prison, and

ending. These are the two most weakness that Phu Quoc need to improve for attracting more

customers.

1.2. Customer Analysis

1.2.1. General Analysis

Irrespective of visitor is business or non-business, they all have the same decision process to

answer the question “what benefit he/she can achieve or explore when getting there?”

The below picture shows the path for choosing a destination for visiting. If a place want to attract

and take tourist and visitor it

must define what specific phase

in the tree it should take part in.

If it goes in visitor mind too

late it, or with many defects it

may face more competitiveness

from other destinations.

As a study on North American

tourist’s behavior made by Karma Centre for Knowledge and Research in Marketing, McGill

University, Montreal, Canada (August -November 1998) to support tourism development

strategies in Latin America showed that the top influences on destination selection is word-of-

mouth information. This reveals that the destination attracts visitors not only simply via

promotion, but also by itself qualities. The creditability of destination as well as its real attraction

is logically increased by its satisfying its current tourists. The more details are provided in

Appendix No.2.

1.2.2. Analysis on tourist visiting Phu Quoc in relationship with Vietnam’s status

a. Overall Analysis:

Phu Quoc though has many natural conditions for developing tourism industry; it just soared

since 2000 for the development of traffic connectivity system with mainland. The visitor volume

has increased 40% per year in which the main force comes from domestic tourist. The number of

visitor increased from 55,000 pax in 2000 to 220,350 pax in 2009. This rising has resulted in

revenue of 136 bil. VND in 2005 to 450 bil. VND in 2009 with the annual growth rate at

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46%/year. This rate is 2.96 fold of Vietnam’s average growth rate of 15.6%/year and highest in

Vietnam.

Figure 2 – Number of Visitors to Phu Quoc (Unit: pax)

(Source: Statistic Dep of Phu Quoc)

From the figure above we can see that the total visitor’s volume steps up by years. However, the

main impetus comes from domestic visitor while foreign visitor volume is still fluctuated. The

stay duration is 2.29 days for foreign visitor in 2005 has increased to 2.65 days in 2009. The

weakness of services in terms of quantity, quality and variety is the main reason for this

fluctuation, and short stay. Besides, the destination tourism is not due promoted that brand-name

Phu Quoc is not so popular in world travelling industry.

Above 87% of the total tourist coming to Phu Quoc for relaxing, the remaining is combining

relaxing and looking for investment, or business. Couples (56%), group (31%) take the core of

travelling pattern while family and tour team just take a small account. Currently this situation

gets better when Phu Quoc becomes a rather famous destination of tourism that was branded as

top ten in polls of some famous media channels like www.concierge.com (2008 – peak of World

top 10 of hidden beaches), ABC News channel (2009 – peak of World top 10 hidden beach) ,

www.tripadvisor.com (2010 – peak top 10 Ideal destinations for travelling of Asia) , or as the

Earth Reservoir Region of UNESCO’s charter.

Tourist’s expenditure is still low as statistic survey in 2003. The biggest percentage of 49% is in

range of under USD 50/day, while the highest expenditure range of 150 USD/day is at 11.5%.

The other segments fall in 38% of 55-99 USD/day, and 0.8% of 100-148 USD/day. This

situation is being improved by years with more high-end resort building up, and more value

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added goods and service providing on the island such as tour of fishing, motorcycling, sport

water, as well as more handicraft goods like pearl, Corel

Foreign tourist preferred annually visiting Phu Quoc from May to September (Winter flee).

Tourist can reach the island from mainland, or directly by travelling cruisers.

Figure 3 – Structure of International Visitor to Phu Quoc (2005)

(Source: Statistic Dep of Phu Quoc)

According to a statistic in 2005

regarding to foreign visitor

structure, account visitor from

Western Europe is 68.6%, North

America is 11.8%, Australia and

Asia take the same percentage of

6.5%. The majority of Western

Europe is now enriched by

significant increasing from Eastern and Northern European countries especially Russian,

Finland, etc. if we compare the ratio against that of Vietnam. We can see the large difference

when Asian customer (China, Japan, Korea, Taiwan) is the main force of tourism market of

Vietnam. These ratio still keep stably to some current time as statistic officer of Phu Quoc

district said.

1.3. Competitive Analysis

In this part, we discuss about the competitors whom relate directly to Phu Quoc in the travelling

market. Those places have the same or nearly the same model Phu Quoc Pearl. Most of them are

famous places for travelling over the world. In domestic, Phu Quoc Pearl has faced to many

places, where have beautiful sea, wonderful Bay, long beaches and full infrastructures and other

attraction activities such as Danang City, Nha Trang city, Halong Bay at Quang Ninh province.

Moreover, pass over bound of countries, there is a plenty of popular places in the world that are

ready to welcome hundred of visitors annually. Only at Asia area, Phu Quoc competes with

many regions where are famous in travel business sector, that is Phuket in Thailand, Bali in

Indonesian, Singapore,…

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To easily distinguish with us, we will divide by internal and external competition to Phu Quoc

Pearl. For internal competition, we choose Nha Trang city for analysis its competence and

influence to Phu Quoc, because Nha Trang has same Phu Quoc type of travelling and is one of

the outstanding destination of visitors internal or external if they want to sea combine with

ecological travel. Phuket-one of big island of Thailand, lies down at Indian Ocean, far from

Bangkok capital 862 kilometers towards South with same characteristics as Phu Quoc. Likely

Phu Quoc, Phuket has also many islets surround it. In addition, Phuket is impacted by monsoon

tropical climax, so travel season coincides with Phu Quoc. All of elements are explained why we

choose Phuket for analysis external competitor at now also the future. Herein are concrete views

related to remarkable and restriction of each place-name. Understand the competitor clearly

helps us choose right direction for Phu Quoc in strategy marketing place.

Nha Trang city is located in a valley surrounded by mountains on three sides (the North, the

West, and the South). This geography is natural favourite to Nha Trang, because it can avoid

annually storm that is a specific of tropical climax. Besides that, it contains two rivers (Cai river,

Cua Be river), 19 islands with more than 2,500 households. Nha trang is home to many famous

beautiful spots and landscapes and is a major tourist center in the country. With many

universities, academies, research institutes, colleges, vocational schools, and centers for applying

scientific-technological advances, Nha Trang has become a center for training and scientific

research of Southern Central Vietnam.

A famous specialty of Nha Trang (and also of Khanh Hoa) is the edible swift let nests. All the

islands hosting the swift lets are within Nha Trang’s territories.

Nha Trang also is taken interest from government and contributes a plan for 15 years with

objective development three main service sectors which served traveling surround the beach

(Nha Trang city, Cam Ranh town, Doc Lec sector).

Now, Nha Trang traveling depends on main specific visiting Bay. However, the environment

surround Bays is very incentive, especially special ecological, for instances, coral reef, swallow

burrow. With now status, that is more and more visitors travel to Nha Trang, those sectors will

be polluted. And it also affected other sectors, such as aquaculture. Besides that, Nha Trang is

invested widespread in many fields without concentrate some fields which Nha Trang has

advantage.

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Phuket Island- the biggest island of Thailand located in of Andaman Sea, the paradise of

Thailand. It has rapidly become one of the best known seaside resort of the word. It is the most

sought after travel and wedding & honeymoon destination in all of Asia. Phuket has many

beautiful beaches, Patong, Fata, Bang Tao and the picture postcard island make Phuket a

retiree’s paradise.

Many beautiful beaches with all the corresponding activities that go along with them. Phuket

Beaches can be found all over the Island. It is really a shame that many tourists in Phuket never

leave their resort are. The beaches at the resort towns such as Patong beach and Karon Beach

have the some attractive beaches of Phuket.

Not only blessed with beautiful beaches, Phuket has numerous other attractions to make any

holiday here an experience to remember for a lifetime. On the island or off, a visitor's days can

be easily filled with a wealth of exciting, entertaining, educational and enjoyable encounters with

the history, culture, and natural wonders that have helped make Phuket a holiday destination

unsurpassed for its beauty and diversity.

Besides sun, sea and sand, Phuket is a multifaceted destination and offers ample scope for

fascinating exploration. Phuket Town is interesting for its surviving examples of old Sino-

Portuguese architecture - reminders of the island's long and interesting history - and for its

shopping and entertainment possibilities.

Due to the fast development of Phuket in recent years, it bears and being bear those suffers

simultaneously that cannot be cured in short time. That will be barrier to sustainable

development at Phuket and the main reason makes travelers do not choose Phuket as destination

of their vacation in the future.

Phuket is visited by over a third of all international visitors to Thailand in any given year. But

along with them have come unregulated development, severe environment degradation,

organized crime and a raft of other ugly annoyances. The Pearl of the South has quickly lost a

good deal of its luster in the past few decades. As property prices soared, many locals sold up to

national and international hotels and the most beautiful beaches are famous with pure, natural

beauty which are replaced with over-priced restaurant, bars, travel agents, massage parlous and

the rest of usual suspects.

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After above analyzing we made a

scored evaluation among Phu Quoc,

Nha Trang, and Phu Ket basing

surveying some visitor who visited the

three places for positioning its image

provided in appendix – No. 3

1.4. Strategic navigation by the combination of SWOT analysis, Life Cycle

graph, Four Abilities figure, and Mc Kinsey matrix

Brainstorming ideas from SWOT analysis (detail is showed in Appendice No.5) has raised some

combination of strength and opportunities to offset the weakness, and threat. In addition to that is

the ideas raised from the analysis, that can advise Phu Quoc to focus for improving the

competitiveness strength to attract more tourists.

By data resulted from situation analysis we can put Phu Quoc in the introduction phase Life

Cycle graph. Respective to the phase, advertising and sales promotion are extremely pertinent in

creating an extremely high level of awareness.

Continuing using Four Abilities figures we can define the environment in which strategy and

implementation of Phu Quoc can take place is “The Frustrator”. It is more clear for the periphery

of marketing program and the aspect of finance that we can deploy further by using the Mc

Kinsey Matrix. Although the

consequential position is in red area, the

group suggests a careful and appropriate

investment because the point is very

close to the selectively area. The

situation shows that although the market is

very attractive. Phu Quoc however has to

face a very rough competitiveness from other competitors while their advantages are not strong

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enough to make a unique attraction. That require the Unit should consider carefully about what

programs which are necessary to do first and which are for latter.

Comparing the strategic point using Mc Kinsey Matrix (appendix

No.6). thinking against the solutions and ideas achieved from SWOT

analysis the Group limits the marketing program into focusing, and

improving the ability and quality of implementation than pour

resources into strategic planning as hereunder:

The local activity should focus on the programs to make Phu

Quoc can attract, and take visitors to Phu Quoc with the popular

brand-name “Hidden Beach”. Then satisfied them by real

beautiful sightseeing, valuable local services, friendliness, and facilities.

Macro factors of Vietnam that Phu Quoc can benefit (exchange rate, stability & security of

society, and politics).

Preferential policy for attracting investing private tourism infrastructure, high-skill human

resources in investment, and tourism industry, as well as increasing local budget amount.

Favored climate for four season travelling (no storm, tsunami, earth-quake,…)

Exploit the diversified natural condition (branded pearl, branded local dogs, branded beach,

primeval forest, rich-ecological system, beautiful sea with chartered international

reservation of coral, mountainous creeks, botanical medicine, etc.,) for tour’s value-add, and

variation.

Strategic location in Southeast Asia for regional event like regional summit, international

conference,…

Social positives (high personal security, low cost, no tourism industry evils, crowded traffic

jams)

Monitoring, and pressing the Government for soon accomplishment of big infrastructures

like international airport, port, energy factory, and internal road system.

.

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3. Product Market Focus

1.5. Customer segmentation:

Through Customer Analysis part the Group suggest target market is characterized as

hereunder:

o Geography: Western Europe (Russia included) & Northern America

o Pattern: Couples, company’s workshop, teambuilding,…

o Age: 25~45

o Income: Middle & high income who are available for 100,000 ~ 200,000

USD/year.

1.6. 4Ps objectives: brand: “Hidden Beach”

1.6.1. Products:

- To provide visitors beautiful hidden beach, clean in terms of

o Wild, ecological beach, diving in the North side

o Modern, water recreation sport, etc,…

- To provide services, facilities, friendliness that make them feel comfortable, and willing

to stay more, and pay more.

For achieving above targets Phu Quoc should implement the programs providing in

Marketing Program Part.

1.6.2. Place:

- Develop more straight lines from other centers of Vietnam like Hanoi, Danang as well as

from some neighborhood places like Cambodia, or Thailand.

- Increase the volume of flight from Hochiminh City to Phu Quoc.

- Increase number of airline doing business on this routine (Current: Vietnam Airline; from

10 October 2010: Mekong Airline added).

- Diversified more ways to access the place via air, water, domestic routines, international

voyages, etc.,

Programs should be conducted as in Marketing Programs Part.

1.6.3. Promotion:

- Focusing on national advertising program that Phu Quoc can benefit.

18

- Strongly using public relation by which Phu Quoc create a positive image and customer

preference through third party endorsement with the world acknowledged brand name

“Hidden Beach” Positioning in potential visitors’ mind “Hidden beach – the

remaining treasure of nature on the earth” enjoy it before it changes.

- Sales promotion: Combining with private resorts and hotels for incentive programs for

raising the amount of visiting and returning.

Implementation programs as next part.

1.6.4. Price:

- Develop services serving foreign tourist who has expenditure of 250 USD/pax/day.

Detailed programs is in the Part No.5.

Figure 4 – Phu Quoc’s 4Ps program

19

4. Marketing Program

PRODUCT STRATEGY

Appearance. Building the wild, ecology appearance is available in some actions. These are:

Orientation and regulation. The fundamentals need to set a high standards for the whole

building constructions, services, sanitary, cleanliness and environment friendliness.

Pure beauty and modern beauty. The island shoud be Separate into two region for

tourism: ecological tourism in the North, and modern recreation activities of tourism in

the South. So besides of taking the advantage of hidden beach, Phu Quoc need to focus

on the system of tourism spots (hotels, resorts, restaurances…).

Community. For attraction the tourism, we need to improve the community by opening class in

short term and long times to change the behavior of citizen, improve labor skills such as cooking,

English, communicating…Besides that, we need the incentive policy to attract skilled labor for

working in island (part time and full time) in other to create the tourism society place of warm,

hospitability and friendly image.

Local products. Increasing the output and quality of some main products based on the famous

name of company in terms of Fish sauce, Sim wine, Pepper, Pearl by support policies, export

strategies. Moreover, handicraft villages need to be developed to combine with tourist programs

and souvenir products

Diversity of tourism. For building the diversity of tourism, enriching day night life and mixing

activities are very important. These are:

Rich night life: specialize night clubs such as musical clubs (sing together), bars,

performing in a concert, fishing seafood, culinary (night market, high class restaurance)

and so on.

Special interests: hiking, snorkeling, mountaineering, diving, surfing, golfing, camping

and backpacking, bicycle-riding, horse-riding, heath spas, theme parks… and amenities

(music, art, entertainment …)

Mixing tours and special tours. For couples, some specialization in weddings and

honeymoons are based on a wide variety resorts. For families and teams, various resorts

can distinguish with other islands by marketing bicycle-riding, horse-riding, heath spas,

theme parks, racing dogs, casino and so on…

20

PRICE STRATEGY

Develop services serving tourist who has expenditure of USD250/pax/day.

Prestige: high price as a unique quality and distintative services

Promotional: strategy for reducing or sales off package prices to attract tourists during off-

seasion (October to May)

PLACE STRATEGY

Infrastructure. For the development of Phu Quoc, it requires comprehensive measures in public

sector and private sector. Some problems can considered as below:

More and more policy subsidies and tax shields to encourage investment in business and in

building infrastructures for firms investing in island.

Increasing the speed of important projects in public sectors such as International Air Port,

Roads, Quays

For more convenience for foreigner we need to establish the international banking systems,

high standard hospitals, kid gardens (temporary holding for couples to travel). Besides we

need to build concert, cinema for entertainments and facilities.

Constructing more accessibilities: banks, hospitals, taxies, supermarket systems, giving

more incentive policy for privatization.

Standardizing principles. Real actions and local rules such as cleaning beach, forest protection,

fishing rules shoud be promulgated.

PROMOTION STRATEGY

Building Phu Quoc’s brand. For impressive brand name, Phu Quoc have to establish the unique

image though out slogan, logo, banners, brochures, picture images etc…

Set-up competitive to develop Phu Quoc for all architect's students to desgin Logo,

Banners, Ads Images.

Positioning some advantage areas to lay out banners for more attractive

Medias. It’s is nessesary to mix cooperation with all of media channels, such as:

Developing the quality of websites: http://www.daongoc.com/vn/,

http://www.phuquocexplorer.com/VN/vnhome.html

Cooperating with many famous newspapers, magazines in nation and international

(Fashion and Travel, Sai Gon Times, Maketting Family…)

21

Broadcasting Ads in television in Vietnam and international channels (Du Lich va Cuoc

Song, National Geography Channel, Discovery, Travel…)

Closing relationship with air plane company to distribute brochures, images in planes

Incentive policy for attraction and invitation strategy to encourage some famous film

makers and directors especially Union Films of Holiwood (famous direct like as Michel

Bay, James Cameron).

Sport arenas and events. The management officers of Phu Quoc need to set up a team and

strategy to propose compain as some followings:

Sport champion cups: Yatch Competition, Beach Valleyball Competition, Canoe-racing,

Water game…

Cultural events: annual fishing festival, musical concert, Beauty contests such as Miss

Vietnam…

Conferences. Mobilizing to organize some big conferences bias the environment fields

such as World Ocean Conference, Senior Officials on Environment Conference, United

Nations Climate Change Conference, through all Phu Quoc could communicate and

improve the image all over the world.

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5. Financial Projection

In order to implement strategy projections, Phu Quoc need find itself a huge capital supplement.

At the beginning, Phu Quoc has already advantages comparing to another provinces that is

received full careness from government, also timely policy from infrastructure investment to

sustainable development. Kien Giang administration combine to government contribute strategic

plan and the way to approach capital resources. It can be divided two main fund resources, one

from the Vietnam’s government which supports for infrastructure’s Phu Quoc, and remain part

from investors (including foreign and domestic). After that, some remarkable projects are

presented in the Appendix No. 7.

Herein, we used past data from 2005 to 2009 to estimate tourism revenue’s Phu Quoc for period

2010-2015. By average method, we could estimate the growth speed rate per annual and use

them for forecasting. To simply, we ignore inflation and other factors, in order to have overview

the picture of Phu Quoc.

Years 2010 2011 2012 2013 2014 2015Revenue (billion vnd) 543 719 952 1,431 2,151 3,232

Visitors 251,366 286,748 327,110 405,864 503,579 624,819 Total stay time (days) 538,971 599,233 666,232 774,034 899,280 1,044,791 Ave Spending/visistor (vnd) 2,159,509 2,507,559 2,911,704 3,526,571 4,271,279 5,173,249 Cost (billion vnd) 217 288 381 286 430 646Profit (billion vnd) 326 431 571 1,145 1,721 2,586

Figure 5 - Revenue Estimated 2010 to 2015

The figure? shows us specific numbers revenue through years. And this below diagram

describes more accuracy view growth speed through years, also each period.

Figure 6 – Estimated Revenue Of Phu QuocFrom the revenue estimated for Phu Quoc,

easily to recognize that the average growth

speed of period 2013- 2015 is 50% instead of

32% for previous years. The reason is

explained by after 2012, most of basic

infrastructure system will be completed and it

is good condition for attraction more tourism

to Phu Quoc.

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

2010 2011 2012 2013 2014 2015

Revenue (billion vnd)

Revenue (billion vnd)

We assume that government supports Kien Giang province by accepting tax exemption for given

period. The amount will be reinvestment and use for our marketing program. The table is

summarized the budget spend for each year. Most of budget in this period is used for established

infrastructure and orient & regulate the building.

Figure 7 – Financial Projection for Phu Quoc (2011-2015)

Activity Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015

BUDGET (billion vnd) 431 571 1,145 1,721 2,586Infrastructure 216 286 344 344 259Orient & Regulate the Building 181 177 229 172 259

Encourage tourism entrepreneurs 9 6Tourism spots (hotel, resorts, spa, restaurant, disco,..) 173 171 229 172 259Build the diversity of tourism forms 9 6Improve Phu Quoc's community 6 17 11 9 8

Open training course for citizen 4 6Attract skilled labor working in Phu Quoc 2 11 11 9 8Build Phu Quoc's brand 4 6 6 9 13Cooperate with other communication medias 9

Newspapers, Television, Magazines, Internet Sites 4 17 46 86 103Film Makers, Directors 4 11 23 34 26Events 6 46 92 138 207

Festivals 2 23 46 69 103Sport Arenas 2 17 34 52 78Propose to hold International Conference 2 6 11 17 26% used of budget 100% 99% 66% 46% 34%

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6. Implement Plan

BUILD THE UNITED STRATEGY THAT ORIENT TOURISM ENTERPRISES TO PHU QUOC’S IMAGERegulate & Orient the Building Appearance Encourage tourism enterprises to develop the qualified services that suite with Phu Quoc’s

image.

The appearance of the tourism spots (hotel,

resorts, spa, restaurant,…) must conform with

Phu Quoc’s image, or at least not affect the

original, wild, pure attributes. Regulate the hotel,

resort, restaurant should be decorated with the soul

of Vietnamese or reflect the original of the place.

Regulate the business operations in Phu Quoc:

Some modern places like bar, disco, modern shops,… must locate in the right places that not

affect the silent environment of Phu Quoc.

Encourage the export image of current business exporterVia the current exporter like: Nam Duong’s Fish Sausage, Phu Quoc’s Pearl, Phu Quoc’s pepper,

Sim Wine. We can encourage them to include the Phu Quoc’s image to their item. It is the good

channel to let the visitor know and feel friendly with name Phu Quoc.

For Fish sauce & Sim Wine

Subside 500 vnd/label/bottle

Targeted films: Nam Huong, Quoc Duong, Loc Tai

For Pepper

Subside 500 vnd/label/pepper’s package

Targeted firms: Bien Hai Quan.

For pearl

Subside to 5000 vnd/item to attach PhuQuoc Introducing handbook in pearl package box.

Targeted firms: JVC Phu Quoc Pearls

Gift the visitors when they leave PhuQuocWhen visitor leave Phu Quoc, they must bring Phu Quoc’s image to home via introduction

brochures, slogan, image and specially – a small gift demonstrate the Phu Quoc’s island.

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Target: Children, Family

Budget: 20.000 * number of tourism come to visit.

Start: Sept-2011

BUILD THE TOURISM PACKAGES THAT SUITABLE WITH THE TARGETED

VISITORS

Based on the Original slogan, we will build the tourist packages corresponding with its image.

Original is the starter

1. Start of the ocean

Description: Mountain is considering is the place that starts of the rain, make a stream, run down

flow to the mountain side, through the forest, and go out to ocean.

Visitor can view the stream, climbing to the highest mountain at Island, go through the forest

explorer diversity of plants and animal.

Target Audience: Personal, Explorer, Friend, Team.

2. Start of the Rebel

Description: Visitor can visit the revolutionary base of Nguyen Trung Truc heroes, Phu Quoc

prison.

Visitor can visit army camp, Nguyen Trung Truc’s template, Phu Quoc prison, Cao Dai pagoda.

Target Audience: Explorer, Company Trips, Family, Retirement peoples.

Original is the beginner

1. Beginner of the love

Description: new couples want a good place to develop their loving, having the loved time

together, spending the most romantic time of their life.

They will have the right place for their requirement: private place, a romantic room, beautiful

sight with the blue ocean, silent environment, and walk together as shopping.

Target Audience: Couple, Family, retired people.

2. Beginner of the new life

Description: A place to make a wedding party, for just married couple.

They will have the most romantic time together, romantic room with flower candle. Serve special

meals for their time.

Target Audience: Just married people.

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Original is the conserver

1. Conserver the natural beauty

Description: They will see the natural beauty of coral reef the natural beauty was conserved for a

long time. View the handicraft business: Pearl Handicraft, fish sauce.

Target Audience: company trips, family, friend, international cruiser, personal, retirement

people, and explorer.

Original is the unique

1. Fist real casino places in Vietnam

Description: They can visit the place that has no entry visa needed.

Target Audience: Gambler, company trips, friend, personal, and retirement people.

BUILD THE PROFESSIONAL TOURISM OPERATORSAssociate with the existing tourism school, tourism center, tourism companies to open specific

classes to operation in Phu Quoc.

When they operate, they have to aware of their things:

o They are delegator of the Phu Quoc’s community to introduce Phu Quoc to visitor.

o Understand clearly about Phu Quoc’s places.

o Have skilled that qualify with their specific jobs.

Mountain, Stream, Beach, Diving, Night Fishing.

o Professional, Patient to visitors.

Open training classes for operator agencies, touristm schools.

o Location: at Phu Quoc’s villages

o Involved Actors: Phu Quoc's island local distric Management Sector

o Progress: 1 year (start 2011

Begin Time: April 2011

Budget: 100.000.000 vnd

IMPROVE PHU QUOC’S COMMUNITY

1. Launch the campaign to improve their awareness about their beautiful places.

The community campaign’s missions:

Educate & Regulate for drop litter.

Open training classes for the local people to improve their behaviors.

o Give them a conscious that they are one of representative of Phu Quoc’s image.

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o Open, friendly with the visitors.

o Learn basic foreign words to communicate with foreign visitors: way direction

helping, SOS situations,…

o Prevent them from the bad habits like: tell overprice, invite with insistence,

Beggars,..

Improve their daily activities.

Orient their behaviors of the future tourism society.

2. Build the sanitation system for all places, community.

All sanitations system must be qualified and foreign visitor feel free when using them.

Build an effective garbage system.

o For the recycle bin: its shape, form must be comfortable with the around places.

Open 8 training classes at 8 places at 5 Phu Quoc's areas(Duong Dong (3), An Thoi, Ham Ninh,

Cua Can, Hon Thom).

Location: at Phu Quoc’s villages

Involved Actors: Phu Quoc's island local distric Management Sector

Progress: 1 year (start 2011

Begin Time: April 2011

Budget: 100.000.000 vnd

3. Build the brochures, banners, slogans, images around and entry PR Exit to the placesLaunch the competitor for architect student in Vietnam

Start: Feb-2011

End: June-2011

Places: HoChiMinh, DaNang, HaNoi

Budget: 200.000.000 vnd

Descrption: Competitor’s mission is to build the Phu Quoc’s image based on the pearl. The result

can be their kinds:

Statue

Photograph

Icon

Logo

Phu Quoc uniform

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Phu Quoc beach uniform

COOPERATE WITH OTHER COMMUNICATION MEDIA 1. Build the website to introduce all Phu Quoc’s information.Website content:

o Society news

o Investment news

o Tourist places

o Special Foods

o PhuQuoc’s cultures

o Weathers

o Touristm agencies

o Hotel Resort Status’s Information

o PhuQuoc governemtn’s presentator

o How to Document:

How to make visa entry to stay long time in Phu Quoc,

How to book a plane, trip, tours.

How to view the status condition of Phu Quoc’s conditions.

o Geography information: Maps, Weather.

o Register following domains

www.phuquoctravel.com

www.phuquoc.com.vn

www.journeytooriginal.com

Department: 2 employees

Budget: 100.000 millions

Beginning date: January 2011

2. BUILD RELATIONSHIP WITH PUBLIC MEDIA Targeted magazine and newpapers: TuoiTre, ThanhNien, NguoiLaoDong, SaigonTime,

DuLich&DoiSong

Give each offices 4 tickets/year (3 days trip) to visit.

Invite or encourage Firm Makers to make a firm in Phu Quoc.

Invite famous people to visit or take a trip in Phu Quoc.

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7. Evaluation & Control

8.1 FINANCIAL EVALUATIONTo evaluate the successful of the project, we will base on the Return on Investment (ROI) number.

For the 5-year project: (unit: bill)Years Investment Estimated Revenue

2011 288 4312012 381 5712013 286 11452014 430 17212015 646 2586

We evaluate real revenue & investment by each year.

8.2 MARKET SHAREWe will consider about the market share between 4 largest market places: Phu Quoc, Nha Trang, Phu Ket, Bali.Method: We will get the total numbers of western tourism visitors come to Phu Quoc, Nha Trang, Phu Ket, Bali. By each year, we show the percentage of each places.

Years Phu Quoc Nha Trang Phu Ket Bali

2011 X11% Y11% Z11% T11%2012 X12% Y12% Z12% T12%2013 x13% Y13% Z13% T13%2014 X14% Y14% Z14% T14%2015 X15% Y15% Z15% T15%

8.3 SURVEYWe will do a Survey about the population of Phu Quoc’s name. Survey will be hold in internet, tourism entry points, target market points (Western Europe and North America cities).The survey will be start on 2011, 2013, 2015.By the survey, we can evaluate the successful of our marketing.

8.4 COMPETITOR SCOREFor the competitor’s score, we will consider about 3 places: Phu Quoc, Nha Trang, Phuket. After following years: 2011,2013, 2015, we will recalculate the competitor score. So that we have the overall picture of Phu Quoc’s position.

Years Phu Quoc Nha Trang Phu Ket Bali

2011 X11% Y11% Z11% T11%2012 X12% Y12% Z12% T12%2013 x13% Y13% Z13% T13%2014 X14% Y14% Z14% T14%2015 X15% Y15% Z15% T15%

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Appendix:

1. Table 1: Number of travelers annually (domestic, international)

                                                                                             Unit: by paxYear Foreign visitor Domestic visitor1990 250.000 1.000.0001991 300.000 1.500.0001992 400.000 2.000.000

1993 670.000 5.100.000

1994 1.020.000 6.200.000

1995 1.351.300 6.900.000

1996 1.607.200 7.300.000

1997 1.715.600 8.500.000

1998 1.520.100 9.600.000

1999 1.781.800 10.000.000

2000 2.140.100 11.200.000

2001 2.330.050 11.700.000

2002 2.627.988 13.000.000

2003 2.428.735 13.500.000

2004 2.927.873 14.500.000

2005 3.477.500 16.100.000

2006 3.583.486 17.500.000

2007 4.229.349 19.200.000

2008 4.253.740 20.500.000

2. Appendix No.2

There has been an increase in the perception of terrorist threats in many countries most

graphically embodied in the Bali bombings in 2002 and 2005. There have also been

subsequent terrorism scares and attacks in London, Glasgow, Madrid, Bangkok and other

destinations.

The notable growth of China into one of the largest source markets in the Asia Pacific

region has become a primary focus of the world’s tourism industry. Chinese nationals

have been increasingly visiting international destinations; a trend the industry widely

31

agrees will continue to increase in the foreseeable future. Equally phenomenal growth is

also evident from the Indian outbound market.

New destination branding campaigns from relative newcomers such as India, South

Korea, New Zealand, Egypt, South Africa, Vietnam, Eastern Europe and the Philippines

have been recently launched, adding increased competition to mainstay destinations such

as Australia, Singapore, Thailand and Malaysia.

Technology such as the internet has made booking travel-related products easy and

convenient, empowering the consumer to be less reliant upon the traditional tourism

supply chain. This disintermediation opens many possibilities for consumer-direct

marketing and distribution.

In what many refer to as the emergence of a Leisure Society, tourism is seen as a basic

right – as opposed to an activity for a privileged few - and has become widely accessible

for a more diverse global demographic. The rise of low-cost airlines and cut-rate travel

deals is fuelling a new wave of demand for tourism in the new millennium. A similar

boom last occurred in the early 1970’s with the launch of the Boeing 747 and other

technological advancements in transport creating a wave of mass international tourism

demand by increasing affordability and access.

The emergence of sub-regional cooperative agreements in which neighboring countries

jointly market multi-nation itineraries in an attempt to increase the value and synergy for

the tourist and the participating economies is on the rise.

Demand is rapidly increasing for niche tourism products that are customised to satisfy the

tastes of an increasingly discerning traveler, particularly among business and affluent

leisure travelers. Many of these new niches are narrowly defined, but should not be

overlooked.

32

An increased awareness and consciousness among travelers of the social and

environmental impacts of tourism which is fuelling a rapidly increasing interest in

responsible, sustainable, and green tourism.

3. Customer in depth analysis

The major market is from Europe, and North America. These are market segment of high-

standard living that tourist are available for high expense to due services.

The survey of Karma Centre for Knowledge and Research in Marketing, McGill University,

Montreal, Canada (August -November 1998) indicated that

For selecting the destination, North American tourists is majorly focus on some Key product

features (Activities, Services and Characteristics) influencing destination selection:

Cleanliness of Food and Water

Affordability of Flights and Accommodations

Availability of Flights and Accommodations

Dining/Restaurants

Sightseeing

Local Prices

During vacation, tourist‘s satisfaction/dissatisfaction mainly caused by

Sightseeing

Nightlife and culinary activities

Personal security

Accommodations, flights and prices

Nature-related activities

Friendliness of locals

Infrastructure and services

In which the likelihood to return were mostly dependent on

Personal security

Nightlife and culinary activities

Friendliness of locals

Family and health services

Infrastructure and services

33

While the study “Loyality programs which influence the decision process in choosing

tourism destination” (Sasu Dinu Vlad, Universitatea din Oradea, Rumania, 2005) has

mentioned that

In most Western European countries, tourists start the process of planning the summer

holiday most of the times from the beginning of the year or even from the previous year.

The analysis of the buying decision is based on the existence of a need determined by the

difference made according to the Maslow's hierarchy of needs. From this point of view,

the tourism need may by included in the category of basic needs, more exactly it is

integrated in the category of bio-physiological needs of rest and health improvement.

Another point of view in approaching the tourism destination choosing is another much

known motivational theory, Herzberg's Two Factor Theory. Like Maslow's Hierarchy of

Needs, Herzberg's Two Factor Theory is a need-based motivation theory. Two Factor

Theory (also known as Herzberg's Motivation-Hygiene Theory) was developed by

Frederick Herzberg who separated the motivational factors in two categories: factors that

lead to satisfaction and others factors that do not affect satisfaction or the level of it, but if

not present, could lead to dissatisfaction

As he said to assure tourists' satisfaction, a tourism operator must do two things:

o Firstly to be sure that all possible dissatisfaction factors were eliminated, and

o Secondly, to create the satisfaction factors because these satisfaction factors

represent the main reason for which the customers choose one or another product

or service in tourism.

Phu Quoc should organize a survey to get the real image reflected from tourist’s visualization.

The factors used in this project however can be applied from a GMS (Great Mekong Sub-region)

visitor survey doing in 2006.

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4. Competitior scored evaluation

5. SWOT Analysis

6. Scored for Mc Kinsey Matrix (Market Attractiveness & Competitive Strength)

N

o

Market Attractiveness Score Weight Result Competitive strength Score Weight Result

35

.

1 - Market size 50 10% 5 - Competencies/quality of services 55 15% 8.25

2 - Market growth rate 75 15% 11.25 - Relative brand strength 50 15% 7.5

3 - Market profitability 60 10% 6 - Market share 60 0% 0

4 - Pricing trends 65 5% 3.25 - Market share growth 55 5% 2.75

5

- Competitive

intensity/rivalry 40 15% 6 - Customer loyality 35 10% 3.5

6

- Overall risk of

diferentiate product

and services 60 5% 3

- Relative tourist's expenditure position

(compared to competitors) 75 10% 7.5

7 - Demand variability 65 5% 3.25

- Relative tourist's benefit margin

(compared to competitors) 60 15% 9

8 - Segmentation 80 15% 12

- Marketing strength and satisfying

capacity 50 15% 7.5

9 - Brandname popularity 45 10% 4.5 - Innovate ideas 50 5% 2.5

1

0

- Infrastructure

development 65 10% 6.5

- New investment for more facilities (in

fact) 80 10% 8

100% 60.75 100% 56.5

7. Some major infrastructure project in Phu Quoc.

In early May 2010, Government has already been plan to invest around US$8.6 billion in

island infrastructure to boost national defense and economic development, according to a

government decision released. Nearly 60 percent of the program’s total cost – VND162.5

trillion ($8.6 billion) – will be paid by the government with the rest sourced from the

private sector and foreign official development assistance.

Major ports will be constructed for ships of around 1,000 tons on many islands while the

ports on Con Dao and Phu Quoc islands will be expanded. Con Dao Island’s Con Son

Airport will be upgraded and the construction of Duong To International Airport on Phu

Quoc Island will be expedited to welcome an estimated three million travelers a year.

More roads will be constructed on major islands, all of which are expected to have

“complete” road systems by 2020. In 27 March, 2010 at Phu Quoc Island,

Transportation Service’s Kien Giang organized to begin construction the bound road’s

Phu Quoc, from Cua Lap to An Thoi. Total invested capital of this project is 1,300 billion

VND which is completed 1 year.

36

According to the People’s Committee of the southern province of Kien Giang, the

government has agreed to thermo-electricity plant with covering an area of 60.3 hectares

on Ganh Dau commune, the plant will be built at a cost of US$ 356.8 million invested by

the Vietnam National Coal and Mineral Industries Group.

In early April 2010, Toan Hai Van Joint Stock Company, a major shareholder of Toan

Thinh Phat Architecture Investment Construction Joint Stock Company, began

construction on the Vinh Dam project in Phu Quoc. The project, which includes a cargo

port, industrial zone, traditional trade village, entertainment area, resort, restaurants,

and public services, will cover an area of 350 hectares. It is funded with VND1.2 trillion

and is divided into three stages, set to be finished within five years.

C. Past data

Years 2005 2006 2007 2008 2009 Ave speedVisitors 130,400 146,277 160,200 184,100 220,350

Ave speed/annual 12% 10% 15% 20% 14%Total stay time (days) 322,990 307,182 336,420 398,790 484,770

Ave speed/annual -5% 10% 19% 22% 11%Ave Spending/visistor (vnd) 1,046,779 1,073,443 1,300,000 1,385,117 1,859,769

Ave speed/annual 3% 21% 7% 34% 16%

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Reference

1. Nguyen Quoc Thiet Wednesday, May 2010, Vietnam island economies- national defense to get $8.6 bln boost, Retrieved 3rd Sep 2010 from http://www.phuquoconline.net/home/News

2. VOVNewspaper, Mar 2010, 1300 billion for construction Phu Quoc’s bound road system3. Nguyen Quoc Thiet, March 2010, US$ 356.8 million to build thermo-electric plant in Phu

Quoc, Retrieved from http://www.phuquoconline.net/home/News4. Sai Gon Giai Phong Newspaper, Discovery Phuketm Retrieved 10 Sep 2010 from

http://www.dulichviet.com.vn/goc-bao-chi5. Nha Trang Travel, Retrieved 4th Sep 2010 from http://www.chudu24.com/huong-dan-du-

lich/chau-a/viet-nam/nha-trang

6. Vietnamese Government (May 2010), Decision No. 663/2010/QD/TTg dated 11 May 2010, Vietnam Gazette, Hanoi.

7. Vietnamese Government (2007), Decision No. 42/ 2007/QD/TTg dated 29 March 2007, Vietnam Gazette, Hanoi.

8. Vietnamese Government (2007), Decision No. 01/ 2007/QD/TTg dated 08 January 2007, Vietnam Gazette, Hanoi.

9. Vietnamese Financial Mistry (2007), Directive No. 10/2007/TT-BTC dated 5 February 2007, Vietnam Gazette, Hanoi.

10. Phu Quoc statistic 2009 (2010), Department Statistic book 2009, Phu Quoc district, Kien Giang Provice.

11. Sasu Dinu Vlad (2004), Loyality programs which influence the decision process in choosing tourism destination, University Oradea Facultatea de Stiinte Economice, Catedra de Management _i Marketing, Str. Universitatii, Nr. 1, telephone 0259.408796, email: dsasu@uoradea.ro.

12. Karma Centre for Knowledge and Research in Marketing (1998), Latin American tourism survey, McGill University, Montreal, Canada.

13. Seppo K Rainisto (2003/04), Success Factors Of Place Marketing: A Study Of Place Marketing Practices In Northern Europe And The United States, Helsinki University of Technology, Institute of Strategy and International Business.

14. Ljiljana Stanković, Suzana Đukić (2009), Challenges Of Strategic Marketing Of Tourist Destination Under The Crisis Conditions, Economics and Organization Vol. 6, No 1, 2009, pp. 23 – 31, University of Nis, Faculty of Economics, Serbia.

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