UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Phuong Yen

SALESMAN’S FAIL IN PERSUADING
CUSTOMERS USING SOLAR ROOFTOP
POWER AT TTC ENERGY JSC

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Phuong Yen

SALESMAN’S FAIL IN PERSUADING
CUSTOMERS USING SOLAR ROOFTOP
POWER AT TTC ENERGY JSC

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: LE THI THANH XUAN

Ho Chi Minh City – Year 2019

LIST OF TABLES
Figure 1.1

TTCE’s Organization Chart

Page 5

Figure 1.2

TTCE’s Services

Page 6

Figure 1.3

TTCE’s Biggest Customers

Page 6

Figure 1.4

TTCE vs Competitors

Page 7

Figure 1.5

Solar Rooftop System


Page 7

Figure 1.6

Strategic Suppliers

Page 8

Figure 2.1

Economic Value of Solar Energy

Page 9

Figure 2.2

Uneconomic Value of Solar Energy

Page 10

Figure 2.3

Renewable Target for 2020, 2025 and 2030

Page 11

Figure 3.1

Summary of Installed Capacity & Revenue in 2017 & 2018


Page 13

Figure 3.2

Selling Stages

Page 15

Figure 3.3

Summary of Deals Approached & Won in 2017 & 2018

Page 15

Figure 3.4

TTCE’s salesman won deals

Page 16

Figure 3.5

Actual Selling Steps

Page 18

Figure 3.6

Summary of Approaching History of Some Target Customers


Page 19

Figure 3.7

Example of Initial Investment Cost of a Solar Rooftop Project

Page 20

Figure 3.8

Price Comparison

Page 21

Figure 3.9

Percentage of Firms Utilizing Guided Sales Processes

Page 26

Figure 3.10

Correlation between value chain, competitiveness and profitability

Page 28

Figure 3.11

Compare the electricity cost by using solar energy system and EVN’s supply


Page 30

Figure 4.1

Comparison of Main Equipment

Page 38

Figure 4.2

The Initial Cause and Effect Map

Page 40

Figure 4.3

Certain changes of Sales Organization

Page 41

Figure 4.4

Steps of building the sales organization

Page 42

Figure 4.5

Final Cause and Effect Map


Page 45

Figure 5.1

Relationship among the dimension of sales organization success

Page 46

Figure 5.2

The sales system

Page 47

Figure 5.3

How a successful sales system function

Page 48

Figure 6.1

The strategic sales organization for TTCE

Page 51

Figure 6.2

Corporate events to be implemented


Page 53

Figure 6.3

Value chain of rooftop power of TTCE

Page 55

Figure 6.4

IT Application for Selling the Solar Rooftop System

Page 55

Figure 6.5

Overall Cost, Human resource and Timeline of Application for smart devices

Page 58

Figure 6.6

The Forecast Revenue Growth

Page 59


TABLE OF CONTENTS
Executive Summary .....................................................................................................................2
CHAPTER 1: COMPANY OVERVIEW...................................................................................3

1.1

TTC Energy Joint Stock Company (TTCE) – A member of TTC Group .......................3

1.2

Future through .................................................................................................................3

1.3

Mission ............................................................................................................................4

1.4

Vision ..............................................................................................................................4

1.5

Core Values .....................................................................................................................4

1.6

Manpower and Company Structure .................................................................................5

1.7

Business Area ..................................................................................................................6

1.8


Biggest Customers & Competitors ..................................................................................6

1.9

Rooftop system’s equipment ...........................................................................................7

CHAPTER 2: PROBLEM CONTEXT ......................................................................................8
2.1

Why using solar rooftop power? ....................................................................................9

2.2

Booming solar rooftop power in Vietnam ...................................................................10

2.3

Why solar rooftop power not really interested by Vietnamese people? ......................12

CHAPTER 3: PROBLEM IDENTIFICATION ......................................................................13
3.1

Symptom Analysis .......................................................................................................13
The revenue not fully reached in 2018 ........................................................................13

3.2

Potential Problems .......................................................................................................14

3.3


Problem Validation ......................................................................................................24

3.4

The importance of main problem.................................................................................32

CHAPTER 4: CAUSE VALIDATION.....................................................................................33
4.1

Potential Causes ...........................................................................................................33
The initial cause and effect map ..................................................................................40

4.2

Validating Main Causes ...............................................................................................41
The final cause and effect map ....................................................................................45

CHAPTER 5: ALTERNATIVE SOLUTIONS .......................................................................46
CHAPTER 6: ACTION PLANS ...............................................................................................51
CHAPTER 7: CONCLUSION ..................................................................................................60
CHAPTER 8: SUPPORTING DOCUMENTS ........................................................................61
References: ...................................................................................................................................79
Appendix ......................................................................................................................................82
Page 1 of 95


Executive Summary
Solar rooftop power basically is not completely the demand, customers want to be the
smart and clean consumers but their installation plan are still very ambiguous. This is a

big challenge in the industry and at TTC Energy JSC (TTCE) as well. In 2018, the
contracted capacity exceeded the target. However, the revenue was under the targeted
plan which is the symptom in connection with such a series of many potential problems
such as: Customers not overwhelmed by salesman’s performance; No strategic sales
organization; Time consuming for closing a deal; Little insight into core product values
by salesman; No sales tools, R&D neglect; No experienced sales resource in the
industry; High initial investment cost in the industry.
As a new established company, TTCE’s salesman mostly sells freely on their own ways,
closing the deals mainly thanks to the reputation of the TTC group's leaders because
most potential customers are introduced by the TTC group leaders. Customers somehow
confuse and hesitate in their decision. Thus, the fail in persuading customers using solar
rooftop power at TTCE is the main problem in relation to low salesman performance.
Due to the main causes are as of no strategic sales organization and neglect in
developing sales tools and R&D activities, the best proposed solution to improve the
TTCE’s low salesman performance should combine related activities, organize sales
activities in consistent with marketing strategies, company strategies and together with
developing advanced information technologies like: an application for smart devices to
introduce all information of solar rooftop power from survey to procurement,
installation, testing and operation in order to transfer best values of solar rooftop power
system towards customers and to completely win customers' trust, then they confidently
make a quick purchase decision.

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CHAPTER 1: COMPANY OVERVIEW
1.1 TTC Energy Joint Stock Company (TTCE) – A member of TTC Group
Established in February 2017 and located at 253 Hoang Van Thu Street, Ward 2,
Tan Binh District, HCM City, TTCE is a subsidiary in energy of TTC Group which
has been over 40 years of operational experience in fields such as Energy, Real

Estate, Sugarcane, Education and Hospitality, consists of 04 Corporations, 01
Sectoral Committee and more than 150 subsidiaries with over 10,000 employees.
Particularly in the energy sector, Gia Lai Electric Joint Stock Company (GEC), a
leading member company with more than 25 years, has been investing in building
energy projects: wind power, hydropower, biomass power and especially solar
power plants with target of 1,000MW by 2022. Besides solar power plants invested
by GEC, TTC Group has also been investing in solar rooftop power projects,
provided by TTCE which currently is the leading in solar rooftop power market in
Vietnam.
1.2 Future through
In recent years, the growth of electricity consumption in Vietnam has always
doubled the growth rate of gross domestic product. TTCE’s renewable energy
development projects will contribute to realizing the target of increasing electricity
output to 14% per year in the period of 2015 - 2030 of the Government. Energy is a
very practical industry for Vietnam's economy in the integration process. Investing
in clean green energy, TTCE is aiming for a sustainable development. In order to
move forwards a safer and more prosperous future, there is only one way to balance
the environmental issues and economic development at the same time.

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1.3 Mission
Using efficient resources and optimizing added value for Shareholders, customers
and employees, "Bring the prosperity to customers". Creating a green energy
source to enrich the community life and economic development in parallel with
environmental protection.
1.4 Vision
“Becoming the leading private investment organization in renewable energy in
Vietnam”.


TTCE differentiates from product quality to the leading service

standards. TTC Energy offers the optimum solution for power savings, increasing
the economic value, while still reducing production costs, providing quality and
long-term technology solutions and increasing competitiveness for business.
1.5 Core Values
TRUSTWORTHY - TTCE has extensive experience in implementing projects
nationwide and internationally. Inheriting from TTC Group and GEC, TTCE
provides professional services through leading engineering teams with more than
30 years of experience.
RESPONSIBILITY - TTCE provides after-sales services and maintenance during
system operation. TTCE commits operational performance and genuine warranty
devices. TTCE focuses on technical processes, equipment quality to optimize
system performance and meet the desired needs of the customers.
QUALITY - TTCE determines quality as a prerequisite for delivering core values
of products and services. TTCE provides equipment from prestigious partners all
around the world. TTCE provides quality customer services that meets the needs of
each individual.

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1.6 Manpower and Company Structure
Up to the end of 2018, TTCE’s total manpower is about 60 employees organized as
shown in the following structure (Fig.1.1), including: 04 members of Chairman and
the Board of Directors, 15 persons of sale & marketing department mostly the
young & the inexperienced, 13 persons of technical department and 10 persons of
financial accounting, administration, human resource, office, internal audit, and
around 18 sales collaborators.

Figure 1.1 – TTCE’s Organization Chart

Source: TTCE’s Annual Report

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1.7 Business Area
TTCE currently offers the full rooftop power services

Figure 1.2 – TTCE’s Services

from design survey, procurement, and installation to
testing, operation and maintenance (Fig.1.2). TTCE
supplies, constructs and installs the rooftop solar
system on the roof of various projects from commercial
centers, convention centers, hotels, resorts, residential
areas, apartment buildings and office buildings to
industrial parks and export processing

zones,

factories, cold storage, parking lots, hospitals and even

Source: TTCE’s Marketing
Report

households.
1.8 Biggest Customers & Competitors
TTCE’s biggest customers (Fig.1.3) are


Figure 1.3 – TTCE’s Biggest Customers

mostly the big enterprises like Saigon Co.op,
Nguyen Kim, BigC, MM Mega Market,
Vinmart / Vincom, Lottemart, Novaland....and
cooperating with business associations and
industrial parks to expand relationships and
access to businesses.

Source: TTCE’s Market Analysis Report

Based on data in the market analysis report of TTCE (Fig.1.4) in December 2018,
compared to current the rivals i.e SolarBK, Vu Phong, Redsun, DAT solar, AEEC,
etc, TTCE's total installed capacity accumulated up to 2018 is leading with more
than 15MWp currently while only about 6MWp of SolarBK, 1,5MWp of Red Sun,
400KWp of Vu Phong,….

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Figure 1.4 – TTCE vs Competitors

1.9 Rooftop system’s equipment
The two main equipment types of solar rooftop system are the solar panels and
inverter which are not manufactured in Vietnam and almost imported from oversea
countries: Canada, German, Japan, the US, Singapore, Korea…
Operation Principal of Solar Rooftop
System (Fig.1.5)
Solar


panels:

Also

known

as

Figure 1.5 – Solar Rooftop System

the

photovoltaic (PV) installed on the roof for
capturing and converting solar energy
into direct current (DC) power.
Source: TTCE’s Marketing Report

Inverter: Inverter device for converting
DC power from PV to alternating current (AC) power, then supplying power for
the whole project.
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TTCE’s strategic equipment suppliers (Fig.1.6) are Sharp and ABB which comes
from Japan and Switzerland, are the leadings over the world in manufacturing solar
energy equipment of solar panels and inverter with more than 30 year experience.
Figure 1.6 - Strategic Suppliers

Source: TTCE’s Market Analysis Report


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CHAPTER 2: PROBLEM CONTEXT
2.1 Why using solar rooftop power?
Economic values:
Long-term and sustainable economic benefits (Fig.2.1): Reducing electricity costs
electricity consumption for more than 25 years, reducing CO2 emissions for more
than 25 years, improving electricity efficiency, providing optimum power for
equipment.

Uneconomic values:
In addition to economic values, the solar rooftop power also brings many other
important non-economic benefits (Fig.2.2): Enhancing the brand position,
improving the company competitiveness, creating the added values for organization
through LEED certificate (Leadership in Energy & Environmental Design), getting
ahead of the trend of using high technology and renewable energy sources,
completing social responsibilities (energy saving, environmental protection) and
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creating a better working environment (green and clean), more beautiful (viewed
from above) for the enterprises.

2.2 Booming solar rooftop power in Vietnam
According the FAI News and CafeF.vn (1), the Vietnamese government places
more emphasis on developing renewable energy after the emission scandal of
Formosa Ha Tinh steel plant and a wave of criticism of Vietnam's heavy
dependence on thermal power plants (using coal). The Prime Minister Nguyen

Xuan Phuc once affirmed that it would not be for economic growth but must be
paid strongly attention for the environment protection. And it is true that booming
solar power projects has been occurred in Vietnam from April 2017. This is the
"golden" time for the renewable energy industry in general and solar power in
particular to develop strongly.

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According to data recorded from EVN (2), with the annual growth rate of
electricity consumption (Fig.2.3) in the period 2016-2020, ranging from 10.3% to
11.3%. It is predicted that after 2020, this growth rate will be 8% per year,
corresponding to the electricity industry will ensure 278 billion kWh of electricity
production and this figure will double by the year of 2030. Therefore, the Ministry
of Industry and Trade is worried that after the year of 2020 Vietnam will fall into
power shortage.
Domestic and foreign investors have many reasons to boldly enter the renewable
energy industry.
Vietnam has a potential for solar energy, when the average solar energy radiation is
about 4.3 kWh/m2, the number of sunny days averages about 2,000 hours/year.
In particular, from Da Nang to the South, the solar radiation is much better and is
about 4.5 - 5 kWh/m2. The average number of sunny days is 2200 - 2500
Page 11 of 95


hours/year. Therefore, the application of solar power in these areas will be highly
effective.
And the most important reason is that the Prime Minister has issued the Decision
11/2017/QD-TTg (3), allowing solar power projects to be exempted from import
tax on goods for production. It also allows the exemption from land use, land lease,

water rent and electricity buyer. The Decision also stipulates the feed-in-tariff of
9.35 cents/kwh (2,086 dong) for solar projects certified the commercial operation
date before 30th June 2019. The Decision of the Prime Minister also stated that
solar power projects on the roof are implemented the power compensation (netmetering) using a two-way meter system. It means that if the electricity output of
solar rooftop system generated is greater than the amount of electricity consumed,
the redundant capacity amount will be bought by Vietnam Electricity (EVN).
2.3 Why solar rooftop power not really interested by Vietnamese people?
Even being supported and instructed by the Government through Decision No.
2068/QD-TTg, Decision No. 11/2017/QD -TTg, Circular 16/2017/TT-BCT,
especially the Decision No. 02/2019/QD-TTg dated 8th January 2019 on buying
solar rooftop power by EVN, according to Vietnam News on 15th March 2019 (4),
only 1,800 households in Vietnam have participated in solar rooftop power
installation with about total capacity of 30 MW during the last 2 years.
The cause is due to rooftop power is too new for consumers, most customers from
households to businesses do not have a certain understanding of this product both
in product characteristics, product values and values bringing to them as well. In
addition, when using the solar rooftop power, customers have to spend an initial
investment, for example: approximately 25,000,000million VND / 1kwh on
average, this is not a small amount of investment compared to the traditional
electricity usage which costs no initial investment until customers receive the
monthly electricity bill according to their actual consumption. These are major
factors making people not interested in solar rooftop power.
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CHAPTER 3: PROBLEM IDENTIFICATION
3.1 Symptom Analysis
The revenue not fully reached in 2018
As shown below in the TTCE’s performance report of 2018 (Fig.3.1), the capacity
signed in 2018 was reached, exceeding the planned 110%, but the revenue of 84%

was not fully reached. The fact shows that solar rooftop power sometimes is not
completely the demand, customers need but they don’t have budget, they want to
be the clean users but their installation plan are still very ambiguous.

The contracted capacity has reached and exceeded the plan, however, the revenue
has not reached the plan since the salesman often spends more than 6 months on
average to one year or more to finalize the deal with customers, the rooftop power
installation activities usually lasts more than 2 months and some contracts were
signed in November and December of 2018, so the revenue booking will be
recorded for 2019.
The interview with Mr. Chau – CEO: “Through the company's report, it shows that
the revenue failed in 2018, could you explain more about it?”

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“Yes, revenue in 2018 had not reached the plan. This is an issue that the management
level must work harder to solve. I am extremely interested in sales team, they are the main
channel to publicize the company's products and services to customers, but they had not
performed well during the past time.”

As Mr. Chau's opinion, the salesman in the past year had not performed well, but
the company's revenue depends mainly on this group. And how the company
operates effectively depends on the revenue management. According to Ronald
Huefner (5) “Revenue management should be an intentional and high-level
management activity”, thus TTCE’s management level has to take specific
strategies in order to improve salesman’s performance and achieve the target
revenue. Some following problems should be considered for the improvement.
3.2 Potential Problems
From the above symptom, there may be some potential issues related to the

company, the salesman, the product or the customers. Some following validations
in term of interviews and the company data in order to investigate the related
causes:
3.2.1 Customers not overwhelmed by salesman’s performance
According to the TTCE’s below internal procedures (Fig.3.2), most of the failed
deals is stopped at the 2nd milestone where salesman is not fully confident in
explaining product characteristics, operating principles of the system, basic
functions of the main equipment (solar panels, inverter) as well as the benefits of
product value, thus they sometimes make customers confused and customers are
not completely convinced.

Page 14 of 95


According to the percentage of customers signed contracts compared to customers
reached (Fig.3.3) only 18% in 2017 (approached 238 customers but only 43 of
them signed contracts), and only reached 17% in the year 2018 (approached 292
customers but only 51 of them signed the contract).

Page 15 of 95


The below answer by a customer (Manager of GigaMall HCM) showing the
TTCE’s fail in persuading customer.
“With the monthly electricity bill of more than 1 billion VND for a commercial center, my
company is also very interested in solar rooftop system, since we suppose that cost saving by
using solar power could be, and after a few times discussed with your sales, the full picture of
solar power values is still in vague. We still have been very confused about the efficiency and
other values of the whole system.”


3.2.2 No market penetration strategy
There is no sales strategic plan for target customers, most of TTCE's customers are
large enterprises, approaching customers thanks to the relationship of chairman
committee of TTC Group, and so TTCE’s market coverage is not wide. As shown
in the company deal won reports of 2017 – 2018 (Fig.3.4), the proportion of
customers signed contracts founded by TTCE employees only accounted for 19%,
while the contracts signed through introduced by TTC Group accounted for 81% in
2017, and the corresponding number for 2018 was 25% and 75%.

Especially for products with high initial investment cost as of products of TTCE,
specific and optimal sales strategies for target customers should be inevitably
defined in order to obtain the target revenue.
Page 16 of 95


An interview with the CEO – Mr. Chau again: “As the new-established company,
what is the strategic sales plan for TTCE’s target customers?
“An effective strategic sales plan certainly does not only exist on paper, plans, or reports and
generally the rooftop investment cost is still quite high because of main equipment imported,
so a strategic sales plan must be built through practical experiences and directly touching
customers. After nearly 2 years of operation, we are still under completion the clear
marketing strategy for our target customers. In fact, in recent times, although TTCE is the
leading company in rooftop power industry, most customers have signed with us coming from
the relationship with TTC Group. Currently, we understand the market and deeply
understand our target customers, so we will immediately complete the best and most effective
strategy for our strategic customers so as to bring the best values to our customers”.

3.2.3 Time consuming for closing a deal
Through the actual selling activity progress, the sales team comes up with the
below chart (Fig.3.5), it usually takes from 06 months or even one year or more

from the beginning of access to the deal closing date. This shows that the company
management level has not had the strategic selling process, the salesman is now
selling on their way. Closing a deal mostly cannot be controlled, it can drift freely
until customers feel really interested and want to sign a contract, even this is the
new industry, new products and the customers are seriously cautious before making
investment decisions.

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From the company data as shown in the below summary (Fig.3.6) of periods from
approaching date to contracting date of some target customers; It has been taking
nearly 2 years for pursuing AON and currently still under negotiation. It also took
from 5 months to one year for another customers like Galaxy, Coopmart, Viettien
and DeHues to sign the contracts. This shows that customers not only households
but business customers also are very cautious and considerate when investing in
this product.

Page 18 of 95


Figure 3.6 – Summary of Approaching History of Some Target Customers

Source: TTCE’s Annual Report

3.2.4 Specificity of initial investment cost of solar rooftop power
Due to the product specificity and main equipment of the whole system (solar panel
and inverter) must be imported, which accounts for 70% of investment costs, thus
making investment costs high, taking below example (Fig.3.7).


Page 19 of 95


Figure 3.7: Example of Initial Investment Cost of a Solar Rooftop Project

Source: TTCE’s Internal Quotation

An interview with a customer – Mr. Quang – CEO of Vinh Quang Seafood Exporter
Company: “As the TTCE’s customer, how do you think about the initial investment
cost of solar rooftop power system?”
“I have to affirm that I am one of the few seafood exporters investing in the solar rooftop
system. Although nobody knows exactly how the system efficiency actually ensure us, only
after about 15 years of investment can be seen. But frankly speaking, the investment amount
of the system is too high, 25 million VND / 1kwp equivalent to 10m2 panel, not a small
number for businesses without financial strength. However, I accepted the purchase of

Page 20 of 95


TTCE’s system because I think that the company system price is reasonable and a bit high
just due to the specific characteristics of the product at the moment.”

And being confirmed by Mr. Chau – CEO as following:
“Compared to the price of competitors, the system price of TTCE is not high. However, due
to the characteristics of the system, the main equipment (solar panels & inverter) must be
imported which usually accounts for 70% of the investment amount, leading to the system
investment cost high – This is the general trend of the solar power industry.”

Taking into account of the price comparison (Fig.3.8), TTCE's price is not high, it
costs about 17,300 million vnd/1kwp for TTCE, 30,000 million vnd /1kwp for

Vuphong, 6,000 million vnd /1kwp for Dat Tech and 27,933 million vnd /1kwp for
Vu Son Solar. Since the main equipment imported accounting approximately 70%
of the investment cost and making the initial investment cost is quite high, that
makes customers hesitate in investment. Thus, this is the specificity of the product,
not the business problem.

3.2.5 Little insight into core product values
Asked Mr. Truong – TTCE’s salesman: How do you convince customers through
the values of solar rooftop power system? Being replied that
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“I really know whenever our customers are completely convinced by the values of the
system means that almost over 90% of them will intend to sign contracts – However, to
succeed in convincing them is a close combination process requiring related departments
to work closely together: sales team - technical team - marketing team - service team and
even the strategic direction by the top management. In addition, our customers have almost
only a preliminary concept of rooftop system, very few of them have a deep understanding
of properties, values and all the its benefits. This is also a big challenge for us."

In fact, in any business activity, not just the rooftop itself, the close and smooth
combination of the relevant departments will always create a positive result,
according to Mr. Truong, the internal cooperation of TTCE has not been strongly
built and that has affected the company's revenue.
3.2.6 R&D neglect
Interviewed Ms. Phuong - Project Development Manager: “Please tell us about
TTCE's R&D activities?”. She replied
"TTCE has only been operating for more than 2 years, the whole team has been focusing
mainly on sales, by all means to have revenue - Knowing that R&D activities are also a means
to increase the number of customers signing contracts and increasing revenue, but currently

TTCE does not seem to have personnel to implement and has no direction paying attention to
this."

As answered in the above interview with Ms. Phuong – Project Development
Manager, the R&D activities of TTCE are mostly unfocused on, currently from the
BOD, BOM to lower level staff only have mainly focused on closing the deals by
all means, but they unintentionally forget that the R&D activities neglect, which
can be seen as one of marketing tools, leads to the competitive disadvantages
effecting the deal closing as well.

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