Table of ContentsPart 1: Introduction 5Part 2: Suggestion of two potential market segments for VFC82.1. Basement for suggestion 72.2. Suggestion of two potential market segments 92.2.1. Office dress 92.2.2. Pregnant 11Part 3: Marketing mix for the two segments 13Part 4: Conclusion and recommendation17References 19List of TablesTable 1.1: Number of VFC’s outlets6Table 2.1: SWOT analysis for VFC 9Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9List of ChartsChart 1.1: VFC’ Distribution network 6Chart 2.1: VFC’s revenue from 2007 – 2013 periods8IntroductionOver the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development. Currently, Vietnam is the world''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s No. 4 in terms of garment exports, is poised to overtake Bangladesh in due time. Garment exports reached a volume of 14.1 billion US dollars in 2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013). In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17%. The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012). Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well. In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards.VFC was established in 1998 by Mr. Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of “Building the first casual wear fashion brand for the young Vietnamese” (VFC’s portfolio, 2010). VFC specializes in designing, manufacturing and marketing/distributing apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean). Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia. In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS).
Trang 1MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
MARKETING STRATEGY
Submitted to: Assoc Prof Dr Nguyen Xuan Minh
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
MARKETING STRATEGY
Submitted to: Assoc Prof Dr Nguyen Xuan Minh
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
MARKETING STRATEGY
Submitted to: Assoc Prof Dr Nguyen Xuan Minh
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
Trang 2A completed report would not be done without any assistance First of all, I would
like to express my endless thanks to lecturer Assoc Prof Dr Nguyen Xuan Minh.
His kindly support and continuous advices went through the process of completion of
my report Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards, Huynh Thi My Dieu
Acknowledgements
A completed report would not be done without any assistance First of all, I would
like to express my endless thanks to lecturer Assoc Prof Dr Nguyen Xuan Minh.
His kindly support and continuous advices went through the process of completion of
my report Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards, Huynh Thi My Dieu
Acknowledgements
A completed report would not be done without any assistance First of all, I would
like to express my endless thanks to lecturer Assoc Prof Dr Nguyen Xuan Minh.
His kindly support and continuous advices went through the process of completion of
my report Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards, Huynh Thi My Dieu
Trang 3Table of Contents
Part 1: Introduction 5
Part 2: Suggestion of two potential market segments for VFC 8
2.1 Basement for suggestion 7
2.2 Suggestion of two potential market segments 9
2.2.1 Office dress 9
2.2.2 Pregnant 11
Part 3: Marketing mix for the two segments 13
Part 4: Conclusion and recommendation 17
References 19
List of Tables Table 1.1: Number of VFC’s outlets 6
Table 2.1: SWOT analysis for VFC 9
Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9
List of Charts Chart 1.1: VFC’ Distribution network 6
Chart 2.1: VFC’s revenue from 2007 – 2013 periods 8
Table of Contents Part 1: Introduction 5
Part 2: Suggestion of two potential market segments for VFC 8
2.1 Basement for suggestion 7
2.2 Suggestion of two potential market segments 9
2.2.1 Office dress 9
2.2.2 Pregnant 11
Part 3: Marketing mix for the two segments 13
Part 4: Conclusion and recommendation 17
References 19
List of Tables Table 1.1: Number of VFC’s outlets 6
Table 2.1: SWOT analysis for VFC 9
Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9
List of Charts Chart 1.1: VFC’ Distribution network 6
Chart 2.1: VFC’s revenue from 2007 – 2013 periods 8
Table of Contents Part 1: Introduction 5
Part 2: Suggestion of two potential market segments for VFC 8
2.1 Basement for suggestion 7
2.2 Suggestion of two potential market segments 9
2.2.1 Office dress 9
2.2.2 Pregnant 11
Part 3: Marketing mix for the two segments 13
Part 4: Conclusion and recommendation 17
References 19
List of Tables Table 1.1: Number of VFC’s outlets 6
Table 2.1: SWOT analysis for VFC 9
Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9
List of Charts Chart 1.1: VFC’ Distribution network 6
Chart 2.1: VFC’s revenue from 2007 – 2013 periods 8
Trang 4SUGGESTION OF TWO POTENTIAL MARKET SEGMENTS FOR
VIET FASHION CORPORATION (VFC)
SUGGESTION OF TWO POTENTIAL MARKET SEGMENTS FOR
VIET FASHION CORPORATION (VFC)
SUGGESTION OF TWO POTENTIAL MARKET SEGMENTS FOR
VIET FASHION CORPORATION (VFC)
Trang 5Part I: Introduction
Over the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development Currently, Vietnam is the world's No 4 in terms of garment exports, is poised to overtake Bangladesh in due time Garment exports reached a volume of 14.1 billion US dollars in
2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013) In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17% The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012) Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards
VFC was established in 1998 by Mr Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of
“Building the first casual wear fashion brand for the young Vietnamese” (VFC’s
portfolio, 2010) VFC specializes in designing, manufacturing and marketing/distributing
apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean) Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS)
At from the beginning, VFC has focused on targeted customers is young people age from
15 – 45 in urban area (occupy of 14% of total national population) In term of its targeted
Part I: Introduction
Over the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development Currently, Vietnam is the world's No 4 in terms of garment exports, is poised to overtake Bangladesh in due time Garment exports reached a volume of 14.1 billion US dollars in
2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013) In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17% The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012) Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards
VFC was established in 1998 by Mr Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of
“Building the first casual wear fashion brand for the young Vietnamese” (VFC’s
portfolio, 2010) VFC specializes in designing, manufacturing and marketing/distributing
apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean) Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS)
At from the beginning, VFC has focused on targeted customers is young people age from
15 – 45 in urban area (occupy of 14% of total national population) In term of its targeted
Part I: Introduction
Over the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development Currently, Vietnam is the world's No 4 in terms of garment exports, is poised to overtake Bangladesh in due time Garment exports reached a volume of 14.1 billion US dollars in
2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013) In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17% The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012) Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards
VFC was established in 1998 by Mr Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of
“Building the first casual wear fashion brand for the young Vietnamese” (VFC’s
portfolio, 2010) VFC specializes in designing, manufacturing and marketing/distributing
apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean) Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS)
At from the beginning, VFC has focused on targeted customers is young people age from
15 – 45 in urban area (occupy of 14% of total national population) In term of its targeted
Trang 6market, VFC focus on middle – class with average income level This segment is occupied 60% of total fashion market whereas Ninomaxx account for 22% of casual in Vietnam 97% VFC’s products serve for local market, remaining 3% for exporting to foreign market such as Cambodia and Australia (Company Data, 2013) Its products are distributed through their own retail stores, franchised retail stores, retail agents and exported to several foreign markets, for examples: Thailand, Philippines, and South Africa, etc (Chart 1.1.)
[Source: Company’s Data, 2013]
Chart 1.1: VFC’ Distribution network
Three main fashion brands of VFC:
- Ninomax: came to life in 1998 with a mission
of “building the first casual wear fashion
brand for the young Vietnamese” VFC is
gradually widely known locally and on its way to reach out to international
- N&M: was born in late 2008 with the thematic concept “Work and Play”, co-existing
with VFC N&M brings about the most suitable outfits for the Vietnamese fashion
enthusiasts for workplace or non-workplace, to build the image of elegant, young and alluring to those who are dressed in N&M constantly releases new designs with an average of 80 designs per month
VFC's Distribution Network
Vietnam Singapore Indonesia
Number of VFC’s outlets:
Vietnam 216 Singapore 2 Cambodia 2 Indonesia 1 Philippine 2 Malaysia 1 America 2 South Africa 1
Table 1.1: Number of VFC’s outlets
market, VFC focus on middle – class with average income level This segment is occupied 60% of total fashion market whereas Ninomaxx account for 22% of casual in Vietnam 97% VFC’s products serve for local market, remaining 3% for exporting to foreign market such as Cambodia and Australia (Company Data, 2013) Its products are distributed through their own retail stores, franchised retail stores, retail agents and exported to several foreign markets, for examples: Thailand, Philippines, and South Africa, etc (Chart 1.1.)
[Source: Company’s Data, 2013]
Chart 1.1: VFC’ Distribution network
Three main fashion brands of VFC:
- Ninomax: came to life in 1998 with a mission
of “building the first casual wear fashion
brand for the young Vietnamese” VFC is
gradually widely known locally and on its way to reach out to international
- N&M: was born in late 2008 with the thematic concept “Work and Play”, co-existing
with VFC N&M brings about the most suitable outfits for the Vietnamese fashion
enthusiasts for workplace or non-workplace, to build the image of elegant, young and alluring to those who are dressed in N&M constantly releases new designs with an average of 80 designs per month
VFC's Distribution Network
Cambodia America Philippine Thailand Malaysia Dubai
Number of VFC’s outlets:
Vietnam 216 Singapore 2 Cambodia 2 Indonesia 1 Philippine 2 Malaysia 1 America 2 South Africa 1
Table 1.1: Number of VFC’s outlets
market, VFC focus on middle – class with average income level This segment is occupied 60% of total fashion market whereas Ninomaxx account for 22% of casual in Vietnam 97% VFC’s products serve for local market, remaining 3% for exporting to foreign market such as Cambodia and Australia (Company Data, 2013) Its products are distributed through their own retail stores, franchised retail stores, retail agents and exported to several foreign markets, for examples: Thailand, Philippines, and South Africa, etc (Chart 1.1.)
[Source: Company’s Data, 2013]
Chart 1.1: VFC’ Distribution network
Three main fashion brands of VFC:
- Ninomax: came to life in 1998 with a mission
of “building the first casual wear fashion
brand for the young Vietnamese” VFC is
gradually widely known locally and on its way to reach out to international
- N&M: was born in late 2008 with the thematic concept “Work and Play”, co-existing
with VFC N&M brings about the most suitable outfits for the Vietnamese fashion
enthusiasts for workplace or non-workplace, to build the image of elegant, young and alluring to those who are dressed in N&M constantly releases new designs with an average of 80 designs per month
Number of VFC’s outlets:
Vietnam 216 Singapore 2 Cambodia 2 Indonesia 1 Philippine 2 Malaysia 1 America 2 South Africa 1
Table 1.1: Number of VFC’s outlets
Trang 7- Maxxstyle: was born in 2009 as the third
brand by VFC after N&M and Ninomaxx
Maxx Style is significantly different from all
other brands since its designs are specialized
for the young, wanttobeyoung, young
-obsessed target audiences, who always express themselves via their simple but unusual designed with bizarre colors dressing style
VFC uses various kinds of materials such as
Jeans, Kaki, Cotton, Linen, Wool, etc and its
design styles are casual-wear, elegant and active It
has average price from 110.000 VND to 300.000
VND with products-line range from coat, shirt,
T-shirt, Jeans, Kaki trouser, shorts for active men and
women enclosed with accessories such as belt, hat
and handbag, etc Since VFC has been success in
this target market, it is facing with such big
competitors like Blue Exchange, Viet Thy, FOCI,
PT2000, John Herry, Sea Collection Other
competitors come from same industry like Viettien,
Nha Be, Nguyen Long, NEM, Senti, An Phuoc, Oxy
etc and from foreign country such China, especially from Korea
- Maxxstyle: was born in 2009 as the third
brand by VFC after N&M and Ninomaxx
Maxx Style is significantly different from all
other brands since its designs are specialized
for the young, wanttobeyoung, young
-obsessed target audiences, who always express themselves via their simple but unusual designed with bizarre colors dressing style
VFC uses various kinds of materials such as
Jeans, Kaki, Cotton, Linen, Wool, etc and its
design styles are casual-wear, elegant and active It
has average price from 110.000 VND to 300.000
VND with products-line range from coat, shirt,
T-shirt, Jeans, Kaki trouser, shorts for active men and
women enclosed with accessories such as belt, hat
and handbag, etc Since VFC has been success in
this target market, it is facing with such big
competitors like Blue Exchange, Viet Thy, FOCI,
PT2000, John Herry, Sea Collection Other
competitors come from same industry like Viettien,
Nha Be, Nguyen Long, NEM, Senti, An Phuoc, Oxy
etc and from foreign country such China, especially from Korea
- Maxxstyle: was born in 2009 as the third
brand by VFC after N&M and Ninomaxx
Maxx Style is significantly different from all
other brands since its designs are specialized
for the young, wanttobeyoung, young
-obsessed target audiences, who always express themselves via their simple but unusual designed with bizarre colors dressing style
VFC uses various kinds of materials such as
Jeans, Kaki, Cotton, Linen, Wool, etc and its
design styles are casual-wear, elegant and active It
has average price from 110.000 VND to 300.000
VND with products-line range from coat, shirt,
T-shirt, Jeans, Kaki trouser, shorts for active men and
women enclosed with accessories such as belt, hat
and handbag, etc Since VFC has been success in
this target market, it is facing with such big
competitors like Blue Exchange, Viet Thy, FOCI,
PT2000, John Herry, Sea Collection Other
competitors come from same industry like Viettien,
Nha Be, Nguyen Long, NEM, Senti, An Phuoc, Oxy
etc and from foreign country such China, especially from Korea
Trang 8Part 2: Suggestion of two potential market segments for VFC
2.1 Basement for suggestion:
VFC has enjoyed rather good years with continuous increase in both sales and profits As
of August 2010, VFC has the largest retail stores network with 119 stores across the nation, among those 67 stores are of Ninomaxx brand Total assets doubled from $14 to $31 million
in just three years between 2007 and 2010 while in the same period, compound annual growth rate was 57.2% (VFC’s Portfolio, 2010) The company has focused on one market segment only of casual-wear for active young people as it believes that step-by-step development will guarantee the sustainable success in the strongly fierce competitive markets
in Hochiminh City and other provinces And it has been done effectively
[Source: Company Data]
Chart 2.1: VFC’s revenue from 2007 – 2013 periods
However, in a very competitive environment of fashion sector, VFC need to adapt the trend of unstable changing in consumer’s behavior to be more successful Furthermore, VFC may take the advantages of its strength and external opportunities by doing SWOT analysis
to have evidences of doing such new segmentation for its expanding business plan
2007 Revenue 131 0
100 200 300 400 500 600
VFC's Revenue from 2007 - 2013 periods
Part 2: Suggestion of two potential market segments for VFC
2.1 Basement for suggestion:
VFC has enjoyed rather good years with continuous increase in both sales and profits As
of August 2010, VFC has the largest retail stores network with 119 stores across the nation, among those 67 stores are of Ninomaxx brand Total assets doubled from $14 to $31 million
in just three years between 2007 and 2010 while in the same period, compound annual growth rate was 57.2% (VFC’s Portfolio, 2010) The company has focused on one market segment only of casual-wear for active young people as it believes that step-by-step development will guarantee the sustainable success in the strongly fierce competitive markets
in Hochiminh City and other provinces And it has been done effectively
[Source: Company Data]
Chart 2.1: VFC’s revenue from 2007 – 2013 periods
However, in a very competitive environment of fashion sector, VFC need to adapt the trend of unstable changing in consumer’s behavior to be more successful Furthermore, VFC may take the advantages of its strength and external opportunities by doing SWOT analysis
to have evidences of doing such new segmentation for its expanding business plan
2007 2008 2009 2010 2011 2012
VFC's Revenue from 2007 - 2013 periods
Part 2: Suggestion of two potential market segments for VFC
2.1 Basement for suggestion:
VFC has enjoyed rather good years with continuous increase in both sales and profits As
of August 2010, VFC has the largest retail stores network with 119 stores across the nation, among those 67 stores are of Ninomaxx brand Total assets doubled from $14 to $31 million
in just three years between 2007 and 2010 while in the same period, compound annual growth rate was 57.2% (VFC’s Portfolio, 2010) The company has focused on one market segment only of casual-wear for active young people as it believes that step-by-step development will guarantee the sustainable success in the strongly fierce competitive markets
in Hochiminh City and other provinces And it has been done effectively
[Source: Company Data]
Chart 2.1: VFC’s revenue from 2007 – 2013 periods
However, in a very competitive environment of fashion sector, VFC need to adapt the trend of unstable changing in consumer’s behavior to be more successful Furthermore, VFC may take the advantages of its strength and external opportunities by doing SWOT analysis
to have evidences of doing such new segmentation for its expanding business plan
2012 2013
519
Trang 9- S1: Strong brand-name
- S2: Wide distribution network
- S3: Effective marketing
- S4: Creative design
Weaknesses
- W1: Limited financial capacity
- W2: Less quality of products
- W3: High price compare to other competitors with same targeted market
Opportunities
- O1: Strongly growth of Vietnam’s
economy
- O2: Government’s policies encourage and
create good conditions for garment sector
- O3: Vietnam has jointed WTO, take
advantage of connecting and expanding
business environment.
- O4: Increasing in demand of fashion
Threats
- T1: High and various competitors, entering of many foreign companies, especially from China and Korea
- T2: Citizens have the habits of consuming foreign products
- T3: Fasting growth of China’s garment
industry
- T4: Technology and skills of garment
sector in host country are left behind others
Table 2.1: SWOT analysis for VFC
2.2 Suggestion of Two potential market segments:
2.2.1 Office dress:
There are some reasons for choosing this segment as listed in the following:
- Huge potential customers (market size) and the trend of shopping:
Female are at working age group accounted for 48.5% in 2013, while this group occupied for 46.1% in early 2014 (GSO, 2013) The trend concern in fashion for lady office is increasing time by time and never stops changing They may be forced to wear uniform (for example: suit) due to company’s policy in some case but it does not make sense Suits somehow build the professional status but lady may feel uncomfortable and boring as well In many organizations, employers allow the flexile
styles of uniform that does not affect the country’s habits and customs The shopping
clothes hobbies of lady are never enough and they still prefer enjoy buying office
Strengths
- S1: Strong brand-name
- S2: Wide distribution network
- S3: Effective marketing
- S4: Creative design
Weaknesses
- W1: Limited financial capacity
- W2: Less quality of products
- W3: High price compare to other competitors with same targeted market
Opportunities
- O1: Strongly growth of Vietnam’s
economy
- O2: Government’s policies encourage and
create good conditions for garment sector
- O3: Vietnam has jointed WTO, take
advantage of connecting and expanding
business environment.
- O4: Increasing in demand of fashion
Threats
- T1: High and various competitors, entering of many foreign companies, especially from China and Korea
- T2: Citizens have the habits of consuming foreign products
- T3: Fasting growth of China’s garment
industry
- T4: Technology and skills of garment
sector in host country are left behind others
Table 2.1: SWOT analysis for VFC
2.2 Suggestion of Two potential market segments:
2.2.1 Office dress:
There are some reasons for choosing this segment as listed in the following:
- Huge potential customers (market size) and the trend of shopping:
Female are at working age group accounted for 48.5% in 2013, while this group occupied for 46.1% in early 2014 (GSO, 2013) The trend concern in fashion for lady office is increasing time by time and never stops changing They may be forced to wear uniform (for example: suit) due to company’s policy in some case but it does not make sense Suits somehow build the professional status but lady may feel uncomfortable and boring as well In many organizations, employers allow the flexile
styles of uniform that does not affect the country’s habits and customs The shopping
clothes hobbies of lady are never enough and they still prefer enjoy buying office
Strengths
- S1: Strong brand-name
- S2: Wide distribution network
- S3: Effective marketing
- S4: Creative design
Weaknesses
- W1: Limited financial capacity
- W2: Less quality of products
- W3: High price compare to other competitors with same targeted market
Opportunities
- O1: Strongly growth of Vietnam’s
economy
- O2: Government’s policies encourage and
create good conditions for garment sector
- O3: Vietnam has jointed WTO, take
advantage of connecting and expanding
business environment.
- O4: Increasing in demand of fashion
Threats
- T1: High and various competitors, entering of many foreign companies, especially from China and Korea
- T2: Citizens have the habits of consuming foreign products
- T3: Fasting growth of China’s garment
industry
- T4: Technology and skills of garment
sector in host country are left behind others
Table 2.1: SWOT analysis for VFC
2.2 Suggestion of Two potential market segments:
2.2.1 Office dress:
There are some reasons for choosing this segment as listed in the following:
- Huge potential customers (market size) and the trend of shopping:
Female are at working age group accounted for 48.5% in 2013, while this group occupied for 46.1% in early 2014 (GSO, 2013) The trend concern in fashion for lady office is increasing time by time and never stops changing They may be forced to wear uniform (for example: suit) due to company’s policy in some case but it does not make sense Suits somehow build the professional status but lady may feel uncomfortable and boring as well In many organizations, employers allow the flexile
styles of uniform that does not affect the country’s habits and customs The shopping
clothes hobbies of lady are never enough and they still prefer enjoy buying office
Trang 10dress than suit when they go to work Therefore, focus on office dress market with the
mission “lady first-beauty come along” will be a smart choice in fashion industry.
- Take advantages of available capacity and its strength:
Strong Brand-name: VFC is well-known by three famous brands are Ninomaxx,
N&M and Maxxstlye Therefore, related products derive from one of those brand will be familiar to customers, despite of new design styles for lady office’s products in urban area
Various kinds of materials: available materials suits for this segment are: silk,
cotton and kaki Those kinds of materials are for designing such form of clothes
in office with comfortable feeling for users
Design style: active, young
and elegant are the key
elements in any product of
VFC For this segment, VFC
should focus more on elegant
and active style to suit with
lady users in office
Human resource: good
management, creative
designers, stylists, active
selling and good marketing
staffs These forces have
most contribute to the
process of launching new
products to targeted market
Loyal customers: VFC already has a number of loyalty customers, therefore it
easy for VFC to attract more lady office for this new target segment
However, when focusing on this segment, VFC may face with such competitors such as Minh Long 1, PNJ, M.A.C, K&K Fashion, etc They have the same characteristics of targeted customers are female working in office The differences come from the use of
dress than suit when they go to work Therefore, focus on office dress market with the
mission “lady first-beauty come along” will be a smart choice in fashion industry.
- Take advantages of available capacity and its strength:
Strong Brand-name: VFC is well-known by three famous brands are Ninomaxx,
N&M and Maxxstlye Therefore, related products derive from one of those brand will be familiar to customers, despite of new design styles for lady office’s products in urban area
Various kinds of materials: available materials suits for this segment are: silk,
cotton and kaki Those kinds of materials are for designing such form of clothes
in office with comfortable feeling for users
Design style: active, young
and elegant are the key
elements in any product of
VFC For this segment, VFC
should focus more on elegant
and active style to suit with
lady users in office
Human resource: good
management, creative
designers, stylists, active
selling and good marketing
staffs These forces have
most contribute to the
process of launching new
products to targeted market
Loyal customers: VFC already has a number of loyalty customers, therefore it
easy for VFC to attract more lady office for this new target segment
However, when focusing on this segment, VFC may face with such competitors such as Minh Long 1, PNJ, M.A.C, K&K Fashion, etc They have the same characteristics of targeted customers are female working in office The differences come from the use of
dress than suit when they go to work Therefore, focus on office dress market with the
mission “lady first-beauty come along” will be a smart choice in fashion industry.
- Take advantages of available capacity and its strength:
Strong Brand-name: VFC is well-known by three famous brands are Ninomaxx,
N&M and Maxxstlye Therefore, related products derive from one of those brand will be familiar to customers, despite of new design styles for lady office’s products in urban area
Various kinds of materials: available materials suits for this segment are: silk,
cotton and kaki Those kinds of materials are for designing such form of clothes
in office with comfortable feeling for users
Design style: active, young
and elegant are the key
elements in any product of
VFC For this segment, VFC
should focus more on elegant
and active style to suit with
lady users in office
Human resource: good
management, creative
designers, stylists, active
selling and good marketing
staffs These forces have
most contribute to the
process of launching new
products to targeted market
Loyal customers: VFC already has a number of loyalty customers, therefore it
easy for VFC to attract more lady office for this new target segment
However, when focusing on this segment, VFC may face with such competitors such as Minh Long 1, PNJ, M.A.C, K&K Fashion, etc They have the same characteristics of targeted customers are female working in office The differences come from the use of