TOPIC BUILDING a MARKETING PLAN FOR VINFASTS ELECTRIC CAR PRODUCTS

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING---Class: CLC_19DM07 MARKETING MANAGEMENT TOPIC BUILDING A MARKETING PLAN FOR VINFAST'S ELECTRIC CAR PRODUCTS FACULTY OF MARKETING SPECIALI

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING

-Class: CLC_19DM07

MARKETING MANAGEMENT

TOPIC BUILDING A MARKETING PLAN FOR VINFAST'S ELECTRIC CAR

PRODUCTS

FACULTY OF MARKETING SPECIALIZED MARKETING MANAGEMENT

Ho Chi Minh city, 2021

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING

-Lớp: CLC_19DM07

MARKETING MANAGEMENT

TOPIC BUILDING A MARKETING PLAN FOR VINFAST'S ELECTRIC CAR

PRODUCTS

FACULTY OF MARKETING SPECIALIZED MARKETING MANAGEMENT

Lecturers: Ngô Minh Trang

TABLE OF CONTENT

1 EXECUTIVE SUMMARY 2

2 INTRODUCE 2

3 MARKET ANALYSIS 3

3.1 Macroenvironment 3

3.1.1 Economic 3

3.1.2 Natural 5

3.1.3 Political 5

3.1.4 Social - Cultural 5

3.1.5 Technological 6

3.2 Competition 6

3.3 Electric car industry 8

4 SWOT ANALYSIS 8

4.1 SWOT of Vinfast 8

4.2 SWOT of product 9

5 SEGMENTATION AND POSITION STRATEGY 10

5.1 Segmentation strategy 10

5.1.1 Geographic Segmentation 10

5.1.2 Demographic Segmentation 11

5.1.3 Income Segmentation 11

5.1.4 Psychographic Segmentation 12

5.2 Posititation Strategy 13

5.2.1 Value-based positioning strategy 13

6 MARKETING MIX STRATEGY 14

6.1 Product 14

6.1.1 Product adaptation strategy 14

6.1.2 Strategy for each product 16

7 ACTION PLAN 21

8 CONCLUSION 22

9 LIST OF REFERENCES & ORIGINALITY 22

10 APPENDIX 23

10.1 Financial Paper 23

10.2 Expense Budget 23

10.3 Member’s group work assessment 24

1 EXECUTIVE SUMMARY

The report fully shows the activities in the integrated communication plan for electric carsunder the VinFast brand The communication strategy will be focused on implementing insome forms such as advertising, PR, events, OOH and hitting the Vietnamese market hard

In the world today, electric cars are very popular and popular, but in Vietnam, the marketshare of this car is less and new to users Vinfast's electric cars have only just entered its firstphase, so Vinfast is under a lot of pressure to compete with rivals that gasoline cars have beenaround for a long time

The objective of the communication plan is to increase customer awareness about electriccars and build trust in customers about this model Therefore, the communication strategy isimplemented through TVC with the message "Explode electric Era to save the Earth" toenhance the value and outstanding benefits of electric cars compared to gasoline vehicles interms of environment and clean energy, while highlighting its superior features

Besides, accompanied by interactive Event activities, CSR is also an activity that helpsbusinesses take responsibility to the community and impact consumer awareness in protectingthe environment better and better

2 INTRODUCE

VinFast is an automotive startup with the backing of Vingroup - the largest privateenterprise in Vietnam, that's why we freely design cars in new and bold directions From thevery beginning, our goal was to create world-class cars with a Vietnamese identity

VinFast is Vietnam's first branded car This brand is owned by VinFast Manufacturing andTrading Company Limited (VinFast LLC), a member of Vingroup Group, led by Mr PhamNhat Vuong as Director

With the mission of "Creating a better life for the people of Vietnam", Vingroup hasdeveloped a diversified investment portfolio in many business areasVingroup continues theprerequisite style and first guide used in each of its businesses, introducing customers to acompletely new, modern lifestyle with products and services of international standards.Vingroup continues to pioneer and lead the consumption trend in each of its businesses,introducing to Vietnamese consumers a completely new and modern lifestyle with productsand services of international standards Vingroup has built a prestigious Vietnamese brand,recognized and proud to be one of the leading private enterprises in the country

Let's see how Vinfast's Social Media strategy has exploded so that it can have a dream start

in the market

3 MARKET ANALYSIS

3.1 Macroenvironment

3.1.1 Economic

Economic growth rate (GDP)

In recent years, Vietnam has had a remarkable and stable growth rate The year VinFastwas established - 2017 is considered a miracle year of the Vietnamese economy Theeconomic growth rate reached 6.81%, exceeding the set target of 6.7% In the second half ofthe year, there was a spectacular breakthrough of over 7% (7.46% in the third quarter, 7.65%)

in the fourth quarter, creating a big boost for our economy This is also a record number in thepast 10 years In the following years, the economic growth rate remains impressive whenreaching 7.08% in 2018 and 7.02% in 2019 Although in 2019, the growth rate is somewhatreduced, but the This number is still very high compared to previous years These remarkableeconomic growth marks have created momentum for the development of Vinfast with manyopen opportunities and a solid foundation, especially in expanding its scale and increasinginvestment

GDP growth rate in the last 10 years

Economic growth rate Chart 1: GDP growth rate in the last 10 years (Source: General Statistics Office)

The inflation rate (consumer price index – CPI) also affects both production andconsumption When the inflation rate is high, it will adversely affect consumption, reducedemand, reduce consumption, discourage production and reduce investment

Chart 2: Poisonous CPI changes in recent years (Source: General Statistics Office)

Inflation index in 2019 is about 2.79%, the lowest in the last 3 years when it was 3.54% in

2018 and 3.53% in 2017, this index is much lower than growth, helping to increase inflation.growth makes more sense

In Vietnam, the automobile industry also accounts for 3% of the country's GDP It is forthis reason that the industry always receives special attention and treatment from thegovernment

America Thailand Germany China Viet Nam

Contribution of the auto industry to GDP

Contribution of the auto industry to GDP (%) Chart 3: Contribution of the auto industry to GDP (Source: Eurostat, Synthetic CTS)

Electric cars are becoming more popular than ever when they can solve the problem ofurban pollution, self-driving systems are also being invested and developed strongly

3.1.2 Natural

In Vietnam, dust pollution caused by vehicles such as cars, motorbikes, etc in urban areascontinues to remain at a high level, which has also caused negative impacts on people'shealth The production of electric vehicles is also a way to reduce pollution and is supported

by the people and the government

3.1.4 Social - Cultural

VinFast up to this point has had a result that, according to the foreign press, is promotingnational pride, bringing a dynamic and modern Vietnam image but also rich in nationalidentity ethnicity Just like the recent trend "Vietnamese people give priority to usingVietnamese products" has shown a positive side in the development of Vietnam's automobileindustry

3.1.5 Technological

Vingroup has chosen the world's leading partners and has advanced solutions in theapplication of 4.0 technology to design and install production lines for VinFast's 5 automobilefactories

Picture 1: Inside the vinfast factory (Source: Báo Thanh Niên)

Currently, Vinfast produces and markets electric vehicles, along with the cooperation withmajor petroleum distributors in Vietnam such as Petrolimex, PVOil to develop infrastructureand systems various charging stations (normal charging station, fast charging station, batteryrental); integrating overnight charging stations in apartment basements and charging stations

at VinMart, creating convenience for car users and contributing to solving the challenge ofenvironmental pollution

3.2 Competition

Every business does business in an environment with different competitors:

• Competitors in different industries

• Competition takes place within the same industry

• A product category with competition between brands

With the habit of using traditional cars in the Vietnamese market (gasoline-poweredengines), the competitors here can be mentioned as corporations as well as big carmanufacturers such as THACO, Honda, Hyundai, Toyota, Ford,

Competitive market: Thaco regains market leading position; Honda and Hyundai achievedoutstanding results by focusing on CKD vehicles; Toyota and Ford regain a share of marketshare

Picture 2: Vinfast's competitors (Source: Vinfast web)

VinFast can increase industry competition

VinFast, a subsidiary specializing in automobile manufacturing of Vingroup (HSX: VIC),seems to be ready for entry into the automobile market in Vietnam Firstly, the company hasinvested strongly in VinFast automobile production complex (335 ha) in Hai Phong with anexpected capital of USD 3.5 billion in the period of 2018-2019 The factory has been urgentlybuilt and is about to be completed Secondly, VinFast acquired General Motor (GM) Vietnam

in June 2018 Accordingly, Vinfast will receive:

1 Heowns GM Hanoi factory to produce hatchbacks;

For the international market, Tesla is a formidable rival of Vinfast, has been born for a longtime and has a reputation in electric cars, but with the prospect of international integrationVinfast will go further and further in the future.

3.3 Electric car industry

In addition, the electric car industry is a synthesis of many other industries, so if electricvehicles develop, the anth aid industry also develops accordingly, can create breakthroughs,solve macro problems such as jobs, income as well as raise national status On a nationalscale, electric vehicles are the trend and ambition of most governments, from developed todeveloping countries If you replace gasoline and oil vehicles with electric vehicles, the airwill be greatly cleaner because of a significant reduction in fine dust In addition, greenhouseeffects, noise pollution are also problems that electric vehicles will solve thoroughlycompared to gasoline and oil vehicles That means vinfast is on the right track and becoming apioneer in bringing electric cars into the Vietnamese market, which is a strength of Vinfastthat makes competitors hesitate for the monopoly for a period of time before the electric cars

of rival companies start to enter A system of synchronization from production, consumption

to use is being applied by countries to promote electric vehicles and limit gasoline vehicles.What kind of incentives are applied depends on the reality of the economy, the state budget aswell as the long-term orientations in each place But according to experts, in order to popularenew types of vehicles, there still needs to be separate mechanisms for all 3 processes ascountries are doing Even if Vingroup's proposal is approved, it may not be enough tomotivate consumers to buy electric cars

4 SWOT ANALYSIS

4.1 SWOT of Vinfast

· Stable human resources

· Strong financial resources

· Positive brand image

· High Level of Standard Fit - Quality

Management

· Dense agent network

· Not yet a floating brand in the market

· Maintenance and maintenance service costs are not satisfied customers

· Marketing ability, PR for VinFast products is not yet an advantage

· Have the opportunity to create products that

are suitable for the majority through inheriting

to take advantage of technology from partners

· Received high support from Vietnamese

people in the context of the strongest increase

in domestic consumption in Southeast Asia

- The first electric car in Vietnam

- Warranty and offer (10 years)

-Supported by the government

- Strong finance

- There's Vin ecosystem

- Not yet built its own strengths-Brand is young

- No company has promoted communication

about electric cars in Vietnam

- Support for Vietnamese brand (as

evidenced by Vsmart's success: accounting

for 15.2% of Vietnam's market share in

2020)

- The trend of using electric cars is growing

- Environmental protection issues are

increasingly of interest to consumers

- Determination of the government in the

development of the automotive industry

- The competitive pressure from the gasoline cars is too great

- Consumers lack knowledge of electric vehicles

- Customers are concerned about the risks

density of the whole country reached 290 people/km2, an increase of 31 people/km2compared to 2009.

Two cities with high population density in the country are Hanoi 2,398 people/km2 and HoChi Minh City 4,363 people/km2 The population density of these two socio-economiccenters is more than 10 times higher than that of the whole country

Picture 3: Vinfast factory seen from above (Source: CafeF)

From there, it can be seen that the demand for car ownership will be greater due to thelarger and larger population size Abundant labor resources, the quality of labor resources isincreasingly improved VinFast will receive a lot of advantages from the populationenvironment in Vietnam However, Vietnam's population is aging and Vietnam's attractivemarket attracts many domestic and foreign businesses, making the competition in the marketincreasingly fierce

5.1.2 Demographic Segmentation

As a car company targeting many target classes, Vinfast car lines are suitable for allgenders, customer age ranges from 30 to 50 years old, and there are always available modelsfor all sizes family size

5.1.3 Income Segmentation

Per capita income has grown well (about 3000 USD/person), which has created favorableconditions for people to have access to cars - an asset that was previously considered a luxury

It is expected that in 2025, Vietnam's GDP per capita will reach about 4,688 USD, bringingVietnam into the group of high-middle-income countries.

Stable macro environment supports car demand growth Per capita income grew well,while inflation and exchange rate were managed in a timely and reasonable manner, creatingfavorable conditions for people to access cars - an asset that was previously considered aluxury

Bắ ắc

in h

Đà N ắẵn g

g Tà u

Average monthly income per month in 2020

Average monthly income per month in 2020

Chart 4: Average monthly income per month in 2020 (Source: CafeF)

With such income, the customer group is also divided into 3 groups:

 Average customer group

Income: From 30-40 million VNĐ, interested in price

 Middle-class customer group

Income: From 40 to 40 million VNĐ, interested in price and utility

 High-class customer group

Income: over 60 million VNĐ, interested in quality, technology, convenience

5.1.4 Psychographic Segmentation

 Popular customer group: Price

The purpose of buying a car of this group of customers is the need to move They oftenfocus on price, product costs (fuel, maintenance, spare parts, ), compare with many differentproduct lines to consider options.

 Middle-class customer group: Price, utility

With a stable economic background, this group of customers will consider a more fullyequipped car in a certain price range

Picture 4: Image of staff advising customers (Source: Tin Tức Xe Cộ)

 High-class customer group: Quality, technology, convenience

Customers in this group will prioritize the quality, technology and comfort of the car Thementality of enjoying and wanting the most comfortable space when moving is probably thetop priority of people with money

 Family customer group: Safe, comfortable, durable

Families with small children when buying a car often prioritize safety, comfortable space,and spacious enough for members Because young children are often active and playful,manufacturers are also "very psychological" when designing the most optimal storage spacefor these vehicles, so that families can have comfortable and enough trips storage space

 Individual customer group: Convenience, showing individuality