PROJECT REPORT BUSINESS ECONOMICS NEW PRODUCT EPIONE AND EPIONE PRO LAUNCHING AND SILICONZ MARKETING STRATEGY

Category - Market volume and growth rate Ergonomic office chair is mainly used in various companies and businesses where employees operate in a sitting position for long hours.. Growing

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

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PROJECT REPORT BUSINESS ECONOMICS NEW PRODUCT EPIONE AND EPIONE PRO LAUNCHING AND SILICONZ MARKETING STRATEGY

Group 4 - Case Study 1 Class: KTEE312(GD2-HK1-2223).2 Lecturer: Dr Hoang Ngoc Thuan

Ha Noi, 12/2022

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TABLE OF CONTENTS

A RESEARCH 2

I Category - Market volume and growth rate 2

II Competitor 5

III Product 10

B MARKETING PLAN 12

I Customer Persona 12

II 4P Strategy 14

III Objectives and KPI 20

IV KPIs ( for quarter) 21

V Deployment Plan 22

VI Channels 22

VII Budget 27

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PROJECT REPORT: NEW PRODUCT EPIONE AND EPIONE PRO

LAUNCHING AND SILICONZ MARKETING STRATEGY

A RESEARCH

I Category - Market volume and growth rate

Ergonomic office chair is mainly used in various companies and businesses where employees operate in a sitting position for long hours The seat is adjustable, supports and provides a natural sitting posture, which helps to minimize back discomfort and strain during long periods of sitting Nowadays, offices are choosing ergonomic office chairs over standard office chairs to make the workplace healthier, happier and improve everyone's work productivity

Growing workforce, growing concern about employee health and well-being, rising obesity awareness, increasing number of workplace injury complaints globally are important drivers for the growth of the ergonomic office chair market The outbreak of the COVID-19 pandemic has had a partial negative impact on the ergonomic office chair market The government's enforcement of the shutdown restricted the movement of consumers out, leading to the complete closure of the business and education sectors As a result, the demand for office chairs has gradually decreased in these areas

Market segments

− Popular segment: Models under VND 5,000,000 (Sihoo, Xiaomi HBADA, )

− Mid-end segment: Types that priced from 6,500,000 - 16,500,000 VND (GTCHAIR, )

− High-end segment: Over 20,000,000 VND (Herman Miller)

Analyzing the impact of the Covid-19 epidemic on the market

The production process of office chairs has become a challenge for companies due to limited labor resources, interrupted raw material supply and logistics problems

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The increased demand for office chairs in households as consumers are confined to their homes leads to a shift towards remote working This shift in working conditions has increased the demand for ergonomic office chairs as consumers want a suitable setup to

work long hours Consumers don't want the comfort and compromise of their

performance by using an ordinary office chair

Market Impact Factors

The corporate industry is one of the most prominent in the market Businesses from all over the world are entering the corporate sector leading to a skyrocketing demand for

office chairs Ergonomic office chairs are an important piece of furniture that supports employees and helps improve work performance

High-altitude office chairs are hindering the growth of the office chair market as consumers are in a dilemma of whether to invest or not to invest in tall chairs High-altitude office chairs are forcing price-sensitive customers to decide to buy an ordinary low- rise office chair Price-sensitive customers are willing to give up

Growing concern about employees' health and well-being is affecting their performance

at work Concerns about the health and well-being of employees are encouraging them

to look for alternatives Work chairs are gaining popularity among employees, as the chair

has lumbar support and employees can work for hours sitting on it comfortably

Although it is anticipated that the ergonomic chair market will grow, limitations including range of motion limited high price are believed to hold back its growth

Ergonomic chair market trend forecast

− Companies are partnering with multinational companies (MNCs) to promote their

products

Manufacturing businesses partnering with MNCs to expand sales It is a technique through which employees use chairs at work and they may decide to buy office chairs for

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their families if they feel its advantages Remote working became popular and it is now part of the daily routine of employees following the arrival of the COVID-19 pandemic

− The evolution of the chair is expected to attract more consumers

Ergonomic chairs offer maximum benefits to employees, providing additional functions, such as large armrests, cool vibration- distance, heating pad and other functions These new features are likely to be a game changer in the ergonomic office chair industry, with growing appeal All employees enjoy comfort, which contributes to employee productivity

− Multi-channel strategy favors the growth of the ergonomic office chair market Customers are choosing more convenient forms of buying office chairs by switching to e-commerce purchases The lack of transparency of details and inconsistent pricing are influencing consumers to make purchasing decisions As the world is moving towards digital business and almost all transactions take place on digital platforms It is an opportunity for companies to interact with consumers who realize their desires A clear message about product details and appropriate mention of price without any hidden fees will drive customers to purchase

− Growth by Region

Region market The Asia Pacific accounts for the highest share of revenue and is

expected to maintain its dominance over the forecast period The growing number of industries and the increasing number of employees in the countries of the region are the key factors driving the growth of the Asia Pacific ergonomic office chair market

The North American market is expected to record a significant growth in the global market, due to the increasing health consciousness of individuals in countries in this region Source: Allied Market Research

The office chair market accounts for 7% of the total office furniture market by 2022 and

is expected to grow as people restore their office work as COVID contagion fears ease The office chair market is expected to gain an absolute $8.9 billion USD opportunity during the 2022-2032 assessment period

- The Asia Pacific region market accounts for the highest share of revenue and is expected

to maintain its dominant position over the forecast period The growing number of industries and the increasing number of employees in the countries of the region are the key factors driving the growth of the Asia Pacific ergonomic office chair market

- The North American market is expected to record a significant growth in the global market, due to the increasing individual health consciousness in countries in this region

General statistics about Vietnam market in 2022

- Reported revenue of Ergonomic chairs on e-commerce platforms reached more than 72 billion VND in 12 months and increased by more than 18.2% compared to the last quarter According to the market assessment, business shops can sell at popular prices from 1,000,000 VND to 4,000,000 VND The most distributed and best-selling Ergonomic Chair brands are Sihoo, Xiaomi, etc

- The number of products sold from November 1, 2021 to October 31, 2022 is 57,110

II Competitor

COMPETE THE ADVANTAGES OF ERGONOMIC SHEET BRAND IN THE MARKET

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1 Herman Miller

Founded in 1927 in the US, Herman Miller is known as one of the leading furniture manufacturers in the US, including ergonomic chairs The Herman Miller brand's ergonomic chair is very diverse with extremely high-class ergonomic chair products that are trusted by many people around the world with deep customization, supporting fine- tuning the standard sitting posture for each body shape different people sitting

Herman Miller's ergonomic chair product lines are used by many people, including big businessmen, movie stars, etc As a high-end product line, Herman Miller not only meets all the essentials of a set of ergonomic chairs, but also demonstrates the superiority of product quality, high-quality materials, and elegant design

+ Adjustable Posturefit SL Support (ALP) backrest provides spine support

+ Custom 4D PU armrest: high, deep and 2 corners (with leather armrest upgrade support)

+ Adjustable height, and all seat recline angles – back and forward

+ Floor wheels (upgraded from the default carpet wheel)

+ Currently, Herman Miller has released millions of products each year and has many different models such as Herman Miller Aeron, Herman Miller Embody,

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WEAKNESS

Disadvantages of Herman Miller Ergonomic Chairs:

- High PRICE (24 → 45 million/sp): this is definitely one of the things that makes users "headaches" because Herman Miller's ergonomic chair models are all very good It is among the most expensive ergonomic chair models in the world

- PRODUCT DESIGN:

+ No headrest: Herman Miller does not produce the included headrest, if necessary, you have to order it through a 3rd party for a price of 3-5 million VND, which is quite "bitter"

+ The lifting and reclining system is quite inconvenient, you have to reach down

to adjust it With another high-end chair, you can adjust it right under the shelf

to make your hands much more convenient

- Sturdy

+ Chair frame, can withstand large loads

+ The whole is covered with high quality Korean Wintex mesh fabric, breathable and highly elastic

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+ It is possible to adjust many different positions such as backrest, armrest position adjustment, headrest, seat height adjustment, even in some models, the seat position can be adjusted

+ The design of the lever adjusts the parts right under the armrest, easy to adjust without bending over, extremely easy to operate

- PRICE: Many models in different price segments from 8-17 million for buyers to choose the price that is suitable for the economy

WEAKNESS

- PRODUCT DESIGN:

+ Slide the backrest up/down a bit loose, not too sure

+ The finish in some plastic details in contact with the mesh is not smooth

- MARKETING: there are not many genuine distributors in Vietnam, users have to order quite a lot leading to a long waiting time, not much warranty and no replacement parts

STRENGTH

- Frame ABS plastic, quite sturdy but lower payload than aluminum alloy frame Some new high-end models have aluminum frames

5 Hoa Phat

Hoa Phat is known as one of the leading units in Vietnam specializing in manufacturing home appliances and office furniture In the growing trend of office ergonomic chairs, Hoa Phat has also researched and launched a number of ergonomic chair product lines to meet the needs of users in Vietnam

Hoa Phat chairs are diverse in design to meet the needs of consumers such as: Hoa Phat stainless steel stools, folding chairs, lazy chairs, recliners, leadership chairs, office chairs,

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and in each product category The product has a variety of different chair models for you

to choose from Hoa Phat chair brand mainly produces office chairs, with good quality and price

- As one of the prominent names in the market of ergonomic furniture

- Distributed through SiliconZ's store and the company's customers (ThinkPro, GearVN)

- There are many price segments, the design has superiority compared to other brands With similar products in the same segment

- Ergonomic chair: The body support parts of the chair are highly customizable with many advanced features such as True Tilt reclining mechanism, Tension resistance adjustment Control, to be able to fit all body shapes and postures of users

- High-quality and reliable materials and technology with public and clear origin or supply resources

+ Applied SHRINX Tech from Krall+Roth - Germany (This supplier was presented with the Interzum Award 2013 and 2017 for the best products of the international supplier industry for furniture and interior design)

+ Meets 190,000 Martindale durability standards

+ Standard 100 OEKO - TEX - Skin-friendly

Aluminum alloy chair legs + Slient PU Wheels => Load capacity: 150 Kg)

- Modern and attractive design: having colors: all black, cool gray, pink blossom for different genders' tastes

WEAKNESS

- Running SEO is not effective, when searching for ergonomic chairs / lifting tables, the name Epione is not really prominent

- Lifting table: The updated pro feature is not really too reasonable compared to the price

- A new entry in the market: Epione products entered the market in 2019

OPPORTUNITIES

- Currently there are not too many competitors in the market and the ergonomic furniture market is an expanding market, with demand expected to increases as people's living standards are improving and customers are more concerned about their health

- Rapid urbanization → raises the affordability of buying more expensive chairs

- Increasing living standards → people are more picky and take more care of their heath, thus looking for products that can protect their health

- Open and self-love mindset of the young people - Generation Z This means they will not only try their best to work hard but also love themselves by taking care of their physical and mental health Besides, this mindset has also affected the managers Managers are nowadays more concerned about their employees' health and satisfaction, which can raise the productivity of their work

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- The rapid increase of the trend "Vietnamese people prioritize using Vietnamese goods" + The boom of numerous high-quality Vietnamese brands today => Vietnamese people when being an user/ customer are starting to look for Vietnamese products more And in Vietnam today, Vietnamese brands providing ergonomic products are quite rare

- As a startup in the field of furniture and health, these products can attract a lot of support and investment from the government and big investors

(In 2021, according to a WIPO report, Vietnam ranks 44th out of 132 countries and economies in the global innovation index => Vietnam has taken a lot of care of startup businesses) THREAT - Ergonomic tables and chairs in

THREATS

Ergonomic products in general are still not yet popular in the domestic market

Our Unique Selling Point

− The first and only ergonomic chair in Vietnam that is adjusted due to Vietnamese characteristic → Bringing the best experience for Vietnamese customer

− With the surprisingly low cost (only 3-4 million VND for a chair) this will best suits companies that care about their workers health as well as productivity without taking a