Final exam International marketing

International marketing of Vinfast, chiến lược 4P tại thị trường Đức đối với sản phẩm xe ô tô Điện ĐẠI HỌC UEH TRƯỜNG KINH DOANH KHOA KINH DOANH QUỐC TẾ MARKETING Tiểu luận kết thúc học phần QUESTIONS 1 3 points (maximum limit of 1500 words). Vinfast electric cars have new plans to enter the German market. If you are the leader of this campaign, please choose the entry mode to join that market and explain why? QUESTION 2 4 points (maximum limit of 3500 words). With the situation in question 1, come up with a 4Ps strategy. QUESTION 3 3 points (maximum limit of 1000 words). What are the various factors that influence product adaptation in new markets? Give the examples.

MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH BUSINESS SCHOOL INTERNATIONAL BUSINESS - MARKETING DEPARTMENT

FINAL EXAM INTERNATIONAL MARKETING

Tutor: PhD Đỗ Thị Hải Ninh

Student name: Nguyễn Thị Diệu Linh Student ID: 31201022035 Class no: 22C1MAR50309605

TP Hồ Chí Minh, ngày 14 tháng 12 năm 2022

TABLE OF CONTENTS

QUESTIONS 1 4

I Evaluate factors influencing international market-entry strategy 4

1 External factors 4

2 Porter’s five forces industry and competition analysis 7

II Entry mode 8

QUESTION 2 10

I Product strategy 10

1 Product attributes 10

2 Branding 11

3 Product support service 12

II Price strategy 12

III Place strategy 14

1 Distribution model 14

2 Distribution channels 14

IV Promotion strategy 15

1 Promotion plan 15

2 Marketing plan 16

QUESTION 3 18

I Economic Factors 18

II Social factors 18

1 Buyer Preferences 18

2 Cultural Considerations 19

III Legal factors 19

IV Environmental Factors and Commercial Infrastructure 20

V Competitive Factors 21

REFERENCES 22

QUESTIONS 1

3 points (maximum limit of 1500 words)

Vinfast electric cars have new plans to enter the German market If you are the leader of this campaign, please choose the entry mode to join that market and explain why?

To encourage the usage of electric vehicles, the government has created a variety of tax concessions Currently, they are subject to lower tax rates for the first 10 years following registration and are free from car taxes during that time According to the 2018 coalition agreement reached by the new government partners, taxes on electric corporate cars are already reduced and will be decreased to half the ordinary tax Additional tax benefits include exemptions for the employer's provision of charging stations or power

On November 7, 2016, the Bundestag passed a law with the support of the Bundesrat that exempts benefits provided by an employer in the form of charging electric or hybrid automobiles from income tax Tax exemptions are also given for grants to use these charging devices as well as for the charging devices that are given to the employee for free

or at a reduced cost The Federal Government's market incentive program to enhance

electric mobility in road transportation is supported by these tax regulations The interim arrangements are in effect from 1 January 2017 to 31 December 2020

1.2 Economic factors

Plug-in electric vehicles now account for 24.3% of sales in Germany, the continent's largest auto market, up from 22.1% year over year Over 21% YoY and over 40% less car volume overall than pre-pandemic seasonal averages were recorded Although broad economic pressures are hurting both the supply-side and demand-side, supply chain interruptions and cost increases were mostly to blame for the poor performance

Early in May, the federal ministry of economics reported that the production of automobiles decreased 14.0% in March, along with a larger decline of 6.6% in the production of capital goods Ifo Institute surveys of car manufacturers revealed a further deterioration in mood from March to April as a result of additional increases in energy and raw material prices Additionally, automakers stated that they would pass on greater prices

to customers, which would reduce demand

With increased gasoline prices, German buyers who are still able to purchase a new car are probably looking more closely at plugins than ever before Therefore, there is no issue with plugins having a higher relative demand than other powertrains The volume of demand for all powertrains may be lower than it otherwise would be owing to the state of the economy, but plugins should be least affected because of the benefit of avoiding gasoline costs

1.3 Technological factors

The gigafactory, which is close to the municipality of Grünheide, is Europe's biggest facility for the manufacturing of electric vehicles and has a potential workforce of 12,000 workers It was at the time the largest foreign direct investment in eastern Germany since the collapse of the Berlin Wall and has already attracted German and worldwide automotive suppliers to the area

Long-term, charging infrastructure development for electric vehicles is more crucial than short-term headline adoption rates With a market share of 40%, Norway now leads the way in terms of electric vehicles, but Germany has the know-how to create completely standardized electric car charging options, allowing it to lead Europe in encouraging the adoption of electric vehicles

On the production side, there are actors in the supply chain and OEMs, while on the other side, there are auto dealers, leasing firms, and actors who provide infrastructure (such charging stations), repair, and maintenance

1.4 Legal factors

The Decree on Charging Stations (Ladesäulenverordnung) of 2016 established the legislative guidelines for the installation of public charging stations by outlining the technical requirements and attempting to guarantee compatibility A total of 25,264 charging ports are available at 8,515 charging stations in Germany as of February 2018—

an increase of around 2,000 stations since the decree's implementation 8 Operators of charging stations must approve charging on a case-by-case basis without previous verification (so called e-Roaming) The Federal Network Agency (Bundesnetzagentur), which publishes the information on a public map, is required by the order to receive operators' reports of the locations of charging stations Charging stations are to be recognized as ultimate consumers under energy law, according to the Act on the Further Development of the Electricity Market (Gesetz zur Weiterentwicklung des Strommarktes)

of 2016, and are therefore exempt from any operator duties under the applicable rules The 2011 Energy Industry Act made certain crucial adjustments that gave smart grids

a legal foundation in terms of data security, data privacy, and energy legislation Prerequisites were established for grid charges to be decreased if electric cars are utilized

to support the grid as part of the reform of the Energy Industry Act (in German), enabling

a reduction in the cost of charging

The Electricity Market Act's classification of electric car charging stations as end-users greatly enhances the legislative climate for the development of a needs-based charging infrastructure and provides investors with legal certainty In this approach, investors from many industries and with a wide range of goals will support the construction of charging stations in an environment of fair competition The operation of charging stations is exempt from tight grid regulations, and this will prevent a monopoly from developing in this area The operators of the charging infrastructure will only have the absolute minimal responsibilities under energy law

1.5 Environmental factors

Nevertheless, climate supporters anticipated a more pronounced shift in policy, including tougher penalties for buying carbon-emitting automobiles, because Germany's Greens were a part of the new coalition

The deal does not specify whether the 6,000–9,000 euro ($10,099.80) subsidy for electric vehicles will be renewed after 2025 The agreement said that the current tax on the use of gasoline, heating oil, coal, and natural gas, which raises the cost of automobiles with combustion engines, will not be raised

2 Porter’s five forces industry and competition analysis

2.1 Threat of new entrants

The threat of new entrants is high, as the barrier of entry is low Chinese companies dominate the EV start-ups, including Nio, BYD, XPeng, and Li Auto They have a better competitive advantage because of their access to the biggest consumer market, well-established supply chain, and government support

2.2 Bargaining power of suppliers

Due to the small size of the supply chain network, suppliers have high negotiating leverage

2.3 Bargaining power of buyers

The bargaining power of buyers is high As Vinfast’s segments its products at the medium market with affordable pricing

2.4 The threat of substitutes

The threat of substitutes is high The marketplaces are saturated with start-ups, while the major automakers have a strong client base

2.5 Industry rivalry among competitors

The industry rivalry among competitors is intense, from start-ups, traditional automakers, and big automotive brands switching to electric

II Entry mode

In an official announcement made on October 1st, 2021, VinFast Trading And Service Limited Liability Company and AUTOBEST, the oldest automotive rating organization in Europe, expressed their shared commitment to accelerating the shift from internal combustion engine (ICE) vehicles to environmentally friendly electric vehicles in the European market

VinFast may benefit from the expertise of AUTOBEST, a group that represents the opinions of European consumers in the automobile industry, in determining the demands and purchasing patterns of local consumers By forming a strategic alliance with VinFast, AUTOBEST will benefit from increased assistance in achieving its goal of accelerating the shift in Europe from internal combustion engines (ICE) to electric motors

Frankfurt, Paris, and Amsterdam are home to the three VinFast offices for Germany, France, and the Netherlands Opening a VinFast headquarters in each region is intended to deliver the best level of service to every client, guided by a thorough comprehension of each nation's unique requirements VinFast has hundreds of people in place throughout its European launch areas to support its ambitious expansion, and they have a variety of experience working for major car manufacturers and market-specific knowledge In the upcoming months, VinFast also intends to enhance this statistic

VinFast's strategic alliance with AUTOBEST and involvement in sustainable development initiatives confirm its steadfast and well-considered plan to collaborate with the most prominent international organizations and to help create a greener, smarter, and more sustainable world

QUESTION 2

4 points (maximum limit of 3500 words)

With the situation in question 1, come up with a 4Ps strategy

to 85% of a BMW in the same class, but costs just 45% less "If you are a wise shopper, then you should purchase VinFast," he said What then determines the quality of cars? VinFast manufactures the engine, chassis, and bodywork in accordance with BMW technology under the direction and supervision of BMW specialists Other components, like as the box, are supplied by other well-known manufacturers throughout the world ZF serial numbers, Bosch equipment Additionally, the vehicle has passed hundreds of the toughest tests conducted by renowned European testing facilities

1.2 Features

While Japanese automobiles prioritize durability and German cars focus on luxury and sporty styling, VinFast makes a statement with its own ideals Their guiding principles are: World-class quality is achieved by combining the top global automakers to produce vehicles that adhere to high standards High-end features that cater to clients' current lifestyles are what add the most value Partners in commerce: establishing connections between users and the Vingroup ecosystem to guarantee VinFast owners long-term value and satisfaction With pricing that fall in the center of those for German and Japanese

automobiles, VinFast wants to provide the driving pleasure of Germany and the dependability of Japan

1.3 Style and design:

Together with the renowned automotive designer Pininfarina, VinFast gives each automobile type a high-class design aesthetic VinFast automobiles, which adhere to the bio-touch experience ethos, have a distinctly opulent exterior and futuristic interior that have been meticulously designed However, VinFast vehicles, particularly VinFast sedans and SUVs, combine modernism with well-balanced proportions and unique Vietnamese design innovations

2 Branding

2.1 Logo:

The interlocking "V"s of the VinFast logo form a strong link, as if ushering in a new era of advancement This might be considered a clear example of the VinFast logo's symbolism of reaching and growth The VinFast logo conveys the image of a chic and contemporary automotive firm by using a delicate, opulent, and elegant silver tone The silver logo design will be quite noticeable when used in conjunction with red or black automobile colors The text of the VINFAST brand name, which stands out with a glittering silver tone, is located beneath the VinFast logo

The VinFast logo has consistently demonstrated the proper standards VinFast's logo is uncomplicated, free of clumsy lines and unnecessary frills, yet it nevertheless communicates a significant idea Regarding the hue of the VinFast emblem, several well-known automakers worldwide trust it That further demonstrates the caliber of the Vietnamese automaker

2.2 Slogan:

The term "Intensity of the Vietnamese spirit" is used by VinFast The motto for VinFast embodies the company's aspiration to build a world-class Vietnamese brand and its

objective to rank among the top auto and motorcycle producers in Southeast Asia The tagline likely conveys an uplifting and inspiriting message as part of the effort to spread awareness of the Vietnamese brand worldwide

2.3 Branding strategy:

Consumers typically worry about things like price, quality, durability, safety, external design, appropriateness, luxury, and one element whenever they purchase a product The popularity or name is essential VinFast has employed a number of well-known international brands to build value for its brand while also satisfying client demands VinFast initially employed two well-known Italian designers, ItalDesign and Pininfarina, but then offered Vietnamese citizens the chance to choose designs via a referendum This

is a really smart business move by 20 VinFast, and customers will undoubtedly be accepting of the designs they select

3 Product support service

VinFast always enhances the quality of its services and makes investments in synchronous equipment systems in order to provide consumers the best possible experience Each VinFast service center is properly outfitted with technological equipment that complies with European requirements

VinFast has decided that providing excellent customer service is a crucial component

of its plan for establishing itself and dominating both domestic and international markets All VinFast service centers follow a structured procedure and provide four major services: warranty, upkeep, repair, and rescue on a round-the-clock basis Customers who visit VinFast's auto repair shop will receive first-rate care

II Price strategy

The market penetration pricing method is inapplicable to VinFast (cheaper price makes

it easier for cars to enter the market) Because Vin is a newcomer to the sector with no reputation or background, VinFast also avoids using the skimming pricing technique (high