Business plan for boeing v3

Boeing Cooperation

File: Group 2 Strategic Account Business Plan.doc

Date Published: 06/26/2014

STRATEGIC ACCOUNT BUSINESS PLAN

FOR VIETNAM AIRLINES

Submitted by: Group 2

Group members: Diệp Quang Huy - 1158049

Nguyễn Trần Quốc Anh - 1158006

Phan Tuấn Vũ - 1158174

Hứa Bảo Duy - 1158025

26/06/2014

Group 2 Strategic Account Business Plan

Boeing Cooperation Page 2 11/12/2014

Table of Contents

Document Objective.......................................................................................................... 3

Account Background ........................................................................................................ 3

Customer Needs................................................................................................................. 6

Value Proposition .............................................................................................................. 7

Sales Opportunities ........................................................................................................... 7

Sales Strategies .................................................................................................................. 8

Financial Forecast ........................................................................................................... 10

Communication Plan ...................................................................................................... 11

Action Plan....................................................................................................................... 12

Required Resources ........................................................................................................ 14



Document Objective

The purpose of this plan is to introduce the background information, the business

relationship between Boeing and client Vietnam Airlines. Through that, we work out marketing and sales strategies, the way we approach our clients Vietnam Airline, and other clients as well. In addition, we also forecast the financial situation in the future that we

expected. Above all others, we build a possible strategy that we could get a long- term relationship and cooperate for development with our client.

Account Background

Objective

Boeing provide airplanes using advanced technology in the aviation industry such as

environment-friendly, saving fuel so that Vietnam Airlines can provide the best service around the world as well as extensive route network.

Boeing design golden lotus in the tail of Vietnam Airlines aircraft so that customers can recognize the beautiful image of Vietnam because it is the most meaningful symbols of Vietnamese people. Moreover, Vietnamese people assume the lotus as a symbol of ancient

culture, and their ability to stand adverse circumstances and retain traditions.

Client Profile

Mission statement: Bring beautiful images and the best services of the nation around the world.

Vietnam airlines- World Class Airlines:

During twenty years, its development is at an annual growth rate in double digit number, Vietnam airlines has grown and become a respected and prestige airlines in the Asian

aviation market due to owning a modern fleet, extensive route network and schedule convenient connecting flights. Beginning with non-regular domestic flights, today Vietnam airlines developed to 21 cities throughout the country and 28 international destinations in

26 countries and territories. In 2006, Vietnam airlines is awarded the IATA operational Safety Audit (IOSA) certificate, Vietnam Airlines is as an official member of the

International air transport association (IATA). In June 2010, Vietnam airlines joined Sky Team, the world second largest global airlines alliance, confirming its internationa l standards as well as a great development in process of integration into international market.

Client Business Objectives and Initiatives

Vietnam Airlines wants to reach 101 air planes in 2015 and 150 airplanes in

2020.Therefore, they want to buy some Boeing 787-9 aircraft with advanced technology



aircraft, fuel-efficient and environment- friendly which make solid steps to integrate into global aviation industry as one of leading regional carrier.

Boeing will make and introduce the new features of new aircrafts as well as produce

according to client requirements in order to meet the expectation of our client.

Client Organization Chart

President and CEO Pham Ngoc Minh: will operate and take the highest responsibility in decision-making such as purchasing aircraft, extensive route network, increasing flight, personnel changes and it is approved by chairman Pham Viet Thanh.

Client Contact List

Name Title Telephone

Number E-mail Address

Mr. Pham Ngoc Minh President & CEO (84-4) 3.8732732 [email protected]

Mr. Pham Viet Thanh

Mr. Pham Ngoc Minh

Mr. Phan Xuan Duc

Mr. Nguyen

Van Hung

Mr. Le Hong Ha

Mr. Trinh Ngoc

Thanh

Mr. Nguyen

Ngoc Trong

Mr. Duong Tri

Thanh

Mr. Trinh Hong

Quang



Internal Team Organization Chart

Internal Sales Performance Summary

In 2003: Vietnam Airlines purchased six aircrafts Boeing 777. This event marked the

beginning of the program to modernize its fleet. Prior to that, Boeing collaborate Vietnam Airlines to provide on-site training and help Vietnam integrate into global aviation environment.

In 2015: Vietnam Airlines expect to use Boeing 787 aircrafts because they desire to bring to the best flying experiences for passengers

Current Engagements and Status

Boeing commit and guarantee to provide high quality goods and services in order to satisfy our client needs:

Improve and increase standardization of our product and service with suitable price.

All activities of us are to ensure strict compliance with the provisions of law.

Build and maintain business relationship and collaboration closely.

W. James McNerney, Jr.

Chairman, President & CEO

Dennis A. Muilenburg

Vice Charirrman,President & Chief OperatingOfficer

Tom Downey

Sr Vice President

Communications

John Tracy , Chief

Technology Officer; Sr.

Vice President

Engineering, Operations & Technology

Greg Smith , Executive

Vice President,

Chief Financial Officer

Timothy Keating ,

Senior Vice President

Government

Operations

Anthony (Tony)

Parasida,


Human Resources

Diana Sands,


Internal Governance

Shep Hill,

President

International

J. Michael (Mike) Luttig, Executive Vice

President & General Counsel

Law Department



Ensure after-sales service and customer care such as always support when our product have a malfunction.

On-time delivery.

Value Delivered to Client

Our account team commits three core values that deliver to Vietnam Airlines as a result of

successful projects:

Integrity: we always practice and perform the highest moral standards so that we keep and

maintain our reputation. Furthermore, we also work with the highest responsibility and take the blame for our own actions

Quality: we desire to provide the best quality of products with respect, love and high

responsibility for our client

Trust and respect: meeting our client satisfaction is an important part to get trust and respect

of client. In addition, we respect ourselves, colleagues, partners, clients and we cooperate in respect.

Customer Needs

For Boeing, establishing long term relationships with clients is essential, this also surviva l matter when this is relationship between business to business. Customers - airlines

companies - are very clever and subtle, they pose very high standards in business relationships, and if we know how to please them, maybe they will open other opportunity

doors for us. First, what they require in a long term relationship is trust, process building trust take a long time before customers can totally believe that we are the best choose for they. Trust usually go along with prestige, because in a professional business, every words

should be valuable and speaker must comply as what they say. It is okay to make a mistake, but acknowledge your mistake and do everything possible to fix it; once mistrust, distrust

thousand times. It is said that trust take place nearly 50% success of the whole relationship. Second is work style, customers don’t want to do business with ones who don’t show respect for them. From the way we talking, working to how we use our gestures, control

behaviors or/and seriously attitude. These factors could be very influent to conversations when two sides discuss or dealing a new contract. Finally is benefits, customers always

want benefits if they have relationship, especially long term relationship? They want to know as soon as possible about upcoming product lines before other companies, they want to have a better price in dealing contract and other offers that other companies won’t have.



Value Proposition

For client company which is doing business with our company, Boeing ensure that there

are statements and commitments that guaranty their success. When we research, develop, produce and improve our products, we always head to follow to the world trend. We observe and analyze trends so that we can identify which one will be popular in coming

years, then we develop our product base on these factors and launched the product line appropriate for the trends we predict, moreover, we also offer customization for customers

in order to attract attention and make them more interested in these products. For business, one step ahead mean a huge step before competitions and three, four step ahead mean they are ahead of their time. Predicting opportunities and risks allow us to help customers

minimize and eliminate cons and take maximum advantage of opportunities so that their outcome can be highly positive and enlarge their success. We confident that our actions

have purpose, and we act long time before competitors. We go ahead our competitors in order to help our customers go ahead theirs.

Sales Opportunities

Vietnam airlines (VNA) is a big company located in Vietnam – a country in South East Asia. For many years, Vietnam’s economy growth increase significantly and become one

of the most developing nation of Asia. This lead to many opportunities that Boeing and VNA can together take full advance of the demand of people. As a developing country, more and more people want to travel for business or tours, so we try to become major

manufacture airplanes for VNA. The demand is diversified but the supply could be not enough, therefore we will fill it with our product line. For example, big planes should be

used for long range flights, and medium planes should be used for short range flights; if airplanes isn’t used for the purpose of its production, operating costs and maintenance costs will rise dramatically. To avoid that, we try to have contracts with them to provide suitable

planes for the right flights and above all is these planes must meet with their requirements. We want to sell planes for they fit with domestic and international flights, because we know

that they have to increase the number of airplanes as reasonable as the demand. Recent years, the amount of people use VNA go up strongly and VNA is searching for aircraft manufacturing companies that have product integrated features they need. Obviously,

Boeing also research about VNA and know what they want and need. Therefore, we come to them and offer opportunities base on win – win attitude. Boeing has product line of

airplanes suitable for various uses such as domestic or international, short range and long range, medium or big capacity. Moreover, Boeing intend to have a long term relationship with VNA so that both sides will have long term benefits and continue seeking and reaching

new opportunities.



Sales Strategies

At the beginning, before Boeing take any action to airlines companies, Boeing has to find

ways to enter the market in Vietnam. In order to accomplish this stage, there are steps that need to be followed and carried out:

Reconsider and analyze airlines companies to determine financial situation,

direction, trend and what they are needing. This step has to be completed precisely and carefully, because throughout years, things change and strategies of Boeing

could be old fashion and aren’t useful anymore. Airlines companies in Vietnam mostly aim to developing countries to claim the market, this mean, there are many opportunities here for Boeing to gain sales. Financial situation of a company is

critical because it decide should they purchase more planes or they choose solution that maintain the scale. Most of airlines companies try hard to expend scale in one

way or another, and from customer’s point of view such as VNA, there are many ways that apply to buy new planes from Boeing. The two major ways they choose are capacity and range. These major ways are relatable to Boeing’s business

customers because today, airline companies’ choices are whether or not to operate short range flights or long range flights and whether or not to have high capacity or

low capacity flights. Direction is the way how Boeing’s customers operate their forms of planes, combining two major factors, there are four combinations available: short range and low capacity, short range and high capacity, long range

and low capacity, long range and high capacity. Each company choose the best possible direction for their own business and depend on internal and external

elements of their business, each combinations also have advantages and disadvantages. Trend is now a new way of thinking in attracting customers and being responsible to society. Almost every airlines companies in the world now

need airplanes that reduce fuel consumption and release less emission, Boeing has to consider and find out if its target company is also head to these trends or they

might not the trend followers but the trend creators. Therefore, Boeing needs to know all above so that it can identify what the airlines companies really want are, for each factor changes, final result or analysis changes, and then Boeing’s tactics

also changes, therefore every moves should be carefully.

Collect reports and statistics for analyze the demand and habits of Vietnamese in recent years because it definitely changes due to the economics growth rate of

Vietnam. Within 3 years around now, Vietnam’s economics growth rate change although decreases ( 7.34% - 2011, 6.1% - 2012, 5.54% - 2013) (1) but the standard of living of people still increases which mean they have more demand in enjoy their

lives so they want to travel places to places by planes. In the other hand, economics growth rate go down but still, there are more investors invest in Vietnam and this

also lead to demand travel for work rise. To prepare for this market, Boeing need



to find out where the investments come from and produce planes that flexible with the demand for planes of customers to serve business men.

Figure out elements that affect to airlines companies’ big decision such as: culture, traditions, habits… These factors could have a great effect to they because parts of

people, and essential of each nation. Therefore, Boeing has to study and research a lot in order to avoid failures because of lack of knowledge.

Then, Boeing must predict situations and opportunities in at least 1 year from now on, Boeing should aim to times that the demand of travel by planes of Vietnamese increase and

there are average 3 periods:

From June to August, this period in time when students have summer vacation and

lots of Vietnam family take a trip to abroad or domestic for travel. Airlines companies will need more planes so that the supply can meet with the demand. Moreover, many business men combine travel for work and relaxation together to

save time, Boeing will hit to that psycho and provide for these companies planes that can classify into classes.

January – February: this period in before and after Lunar New Year (Tet). This time people will have New Year vacation and they will use that for holiday and try to

return hometown and stay with their family.

March – May: there are many festival in this periods and people will go the places

where festivals take place.

Next, Boeing will establish business relationship with airlines companies. Depend on

which companies, Boeing will has suitable plan and tactics, but it is good if Boeing want to set up business with companies that have relationship with Boeing before such as VNA.

The strength when cooperate with VNA are both side can skip seeking for trust stage and head toward main business because both already understand how each side work and they can know what the other need. Therefore, procedures and dealing will be easy and fast,

also convenient. The weakness of this is the profit of Boeing won’t as high as if do business with others, because VNA obviously will negotiate a better price which beneficial to them.

Opposite, if Boeing want to set up relationship with other companies, there are steps need to be done:

Contact the division responsible for the company's transactions and to appoint a

representative to introduce and recommend business relationships with them.

Offer attractive benefits as well as jointly open up other business opportunit ies

doors.



Finally, open up the campaigns to promote the image of Boeing and partner to attract customers who use their services. The campaign will mainly target the periods mentioned above, besides that, Boeing will provide partners with aircraft product lines have been

integrated features consistent with the requirements of the financial situation, developing direction and trends of the partner. In fact, the requirements of the partner company Boeing

has been investigated and determined prior to creating suitable intervals for Boeing production before and will provide partners when the campaigns began.

Financial Forecast

2011 2012 2013 2014 (before plan) 2014 (after plan)

Sales revenue 68.748B 81.7BB 86.62 88.35B 91.55B

Cost of goods sold 55.87B 68.56B 73.19B 74.65B 77.35B

Unusual expense 94M 47M 30M 22.2M 23.7M

Before using plan After using plan

Sales revenue 88.35B 91.55B

percentage 2% 5.7%

This table shows the data of Boeing from 2011 to 2014 about the income statement of

Boeing. In my opinion, the revenue of Boeing steadily increase each year from 2011 to

2013, which means when the Boeing gets the good contract with a partner like their clients,

they will have the increase over 2% in 2014.

The revenue of Boeing from 2010 to 2013 which show stability and that increase in each

year with over $10,000,000 so base on the strategy of Boeing in 2014, we think the revenue

of Boeing will increase more than that because in 2014 we will cooperate with many

airlines in the world and we focus on producing the Boeing 787 to deliver good on 2015.

In addition, the revenue from 2012 to 2013 with increase over 6% and we think that can



increase more than in 2014 because in 2014, we carry out the unusual expense such as

facilities, advertisement, employees to have the good choice for Boeing, we will decrease

the other expense to save the money for manufacturing. Moreover, we have the target 2014

with increase over 7.5% about the revenue of Boeing and we think that will be come true.

By this way, we will give you an example to demonstrate what we say can realize in the

future, when we buy a Boeing 777 with the price is over $320million, we will get the sales

revenue increase about $3.2 billion per each so in 2014, we have many contracts to order

the Boeing 777 and that is one of thing can get more money for Boeing.

On the other hand, when we use the strategic plan in 2014, we can easy to recognize the

different from using plan and not. If we don’t use the plan for business in 2014, we just

increase about 2% but when we use this plan, we can get more money for this with about

3.7%.

Communication Plan

Objective: the purpose of Boeing not only about connecting and communicating with customers but also about how we get the profits for company. We don’t use so much the

internet, advertising on TV to show products of company or use the Facebook such as page, we just give the information on main website, if an investor or a partner want to buy or

connect with us, we will have a day or a meeting to meet them and interchange with them about their purpose, what they need. For example, the purpose of Boeing in 2014 which get more profits than 2013 which means we must sell more planes so we need the

communication plan to help us can connect easier with the customers.

Audiences: we focus on airlines companies, army force. Throughout the customers, we can use the communication to make the influence from other investors. About the army, we have good business with the USA Army such as producing more fighters or

manufacturing orders base on the USA Army. With this thing, we can confirm our level in the international market.

Messages: Based on the Strategic of Boeing, we have a specific plan to get the profits for company in 2014 like according to customers and products to have good ideas. We develop

products throughout customers’ needs in order to building long-term relationship with customers and improve the reputation.



Tools and activities: for communication plan, we will use newsletters, advertisement to show new products, the purpose of Boeing which connect the attraction of audiences so we

can easy to get the focus from audiences about new products, by this way we can make the

believe from customers when we take and fix the comments from customers to get more advantages for customers.

Resources: the main market of Boeing is in America, Boeing provides products for the army to serve country and for the airline brands in America.

Timescales: Time always the important element in business so that Boeing always

punctual when delivering the products. This helps Boeing maintain not only customer relationship but also the reputation.

Evaluation and amendment: in order to improving the business, Boeing receives all complains of customers. After that, we reconsider the problems and update products if

these complains are useful and possible to do so. Thus, customers will trust Boeing products’ quality and Boeing products are more and more complete.

Action Plan

Action Person Responsible Time Frame

Research airlines companies’ financial

situation, direction, and trend

Collect their financial

data and statistics (1)

Find common points in

their operation way

among recent years (2)

Identify which trends

they are chasing (3)

R&D department 12 months



Combine (1), (2) and (3)

to know what they are

needing

Carry out survey about

Vietnamese to know

their demand and habit

(4)

Investigate situation of

Vietnam economic in

these years (5)

Figure out relationship

between (4) and (5) to

find how they are

influent each other

Research about

Vietnam’s culture,

tradition, habits… and

other elements that can

affect to Vietnamese’

psychology

Search for times in year

that people usually have

free time to use airlines,

classify into periods so

that Boeing can create

specific plan for each

period

Detect what Boeing

should handle and

provide for airlines

companies in each

periods

R&D, Sale and Marketing department

12 months

Establishing business

relationship to airlines

companies, decide if

Boeing want to do so

with companies already

Sale and Marketing department

3 – 6 months



have relationship or new

companies.

Establish tactics and

plans for companies

decided, analyze SWOT

Sales and Financial department

3 – 5 months

Open campaigns to PR

image for Boeing and

partners Marketing department 2 – 4 months

Produce and provide

planes that integrated

features partner

companies want and

need

Manufacture department 12 – 36 months

Required Resources

Vietnam GDP Growth Rate. (n.d.). . Retrieved June 20, 2014, from http://www.tradingeconomics.com/vietnam/gdp-growth

Market Watch. (2014, January 1). . Retrieved June 15, 2014, from http://www.marketwatch.com/investing/stock/ba/financials

Boeing Official Site. (n.d.). . Retrieved June 15, 2014, from

http://www.boeing.com/boeing/commercial/prices/ Vietnam Airlines Official Site. (n.d.). . Retrieved June 26, 2014, from

http://www.vietnamairlines.com/wps/portal/en/site/about_us/our_background?lang=en&country=vietnam&country_code=VN&

Boeing and Vietnam – Working Together for Mutual Success. (n.d.). . Retrieved June 25, 2014, from http://www.segvn.org/eventDetail?event_id=10

Fleet Information. (n.d.). . Retrieved June 25, 2014, from

http://www.vietnamairlines.com/wps/portal/en/site/flight_info/fleet_information?lang=en&country=vietnam&country_code=VN&

http://www.tradingeconomics.com/vietnam/gdp-growth

http://www.marketwatch.com/investing/stock/ba/financials

http://www.boeing.com/boeing/commercial/prices/



http://www.segvn.org/eventDetail?event_id=10





Culture & Values. (n.d.). . Retrieved June 25, 2014, from http://www.boeing.com/boeing/aboutus/culture/index.page

Boeing Corporate Organizational Structures and Leaders. (2013, October 9). . Retrieved

June 25, 2014, from http://www.boeing.com/boeing/companyoffices/aboutus/whq/index.page

CDK - Proud to be part of Vietnam Airlines success. (n.d.). . Retrieved June 25, 2014, from http://cdk-

group.com/index.php?option=com_content&view=article&id=15&Itemid=12&lang=en

http://www.boeing.com/boeing/aboutus/culture/index.page

http://www.boeing.com/boeing/companyoffices/aboutus/whq/index.page

http://cdk-group.com/index.php?option=com_content&view=article&id=15&Itemid=12&lang=en

http://cdk-group.com/index.php?option=com_content&view=article&id=15&Itemid=12&lang=en

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Business plan for boeing v3