Product management topic analyzing industry and competitors of household

In 2010, SUNHOUSE was officially named SUNHOUSE Group Gate Company, investing in many diverse fields household goods, electrical appliances, kitchen equipment, electrical equipment.. In

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH TP HỒ CHÍ

MINH KHOA KINH TẾ

PRODUCT MANAGEMENT Topic: Analyzing Industry and Competitors

of Household

Lecturer: Nguyễn Đức Công Class: A17

Name’s Group: Nicetry

Full name and Student ID:

1 Nguyễn Ngọc Quỳnh Như - 205045006

2 Nguyễn Hoàng Anh - 205016689

3 Nguyễn Thị Ngọc Ngân - 215018858

4 Phạm Hùng Thuận - 215019076

Table of Contents

I

ABOUT SUNHOUSE

1 G ENERAL INFORMATION 4

2 S UNHOUSE ' S FIELDS AND OPERATIONAL CHARACTERISTICS ACTIVITIES : 6

2.1 FIELD OF ACTIVITY CHARACTERISTICS: 6

2.2 OPERATIONAL CHARACTERISTICS 6

2.3 MAIN PRODUCT LINE 7

II MARKET SHARE

1.M ARKET SHARE OF HOME APPLIANCES INDUSTRY IN V IETNAM 10

2 M ARKET POSITION 13

3 D EVELOPMENT POTENTIAL OF ELECTRIC GRILLS IN V IETNAM 14

III COMPETITORS

1 C OMPETITOR E NVIRONMENT 15

1.1 MACRO ENVIRONMENT: PESTLE 15

1.2 MICRO ENVIRONMENT: FIVE FORCES ANALYZE 17

2.D IRECT C OMPETITOR OF S UNHOUSE G ROUP 20

3 SWOT A NALYZE 23

I V SUNHOUSE’S POSITION

1 C OMPETITIVE ADVANTAGE 25

2 TARGET CUSTOMER 25

2.1 CUSTOMER'S MOTIVATION TO PURCHASE ELECTRIC HOUSEHOLD 25

2.2 AMS (ATTAINABLE MARKET SHARE) 26

2.3 THE POTENTIAL GROUPS OF CUSTOMERS 27

3 C ASH FLOW 30

1 P RICING STRATEGY 31

2 P RODUCT STRATEGY 32

3 D ISTRIBUTION STRATEGY 33

VI MARKETING STRATEGY

1 S UNHOUSE ' S MARKETING STRATEGY FOR PRODUCTS 33

2 S UNHOUSE ' S MARKETING STRATEGY ON PRICE (P RICE ) 34

3 S UNHOUSE ' S MARKETING STRATEGY ON DISTRIBUTION (P LACE ) 34

4 S UNHOUSE ' S MARKETING STRATEGY ON PROMOTION 34

SUNHOUSE GROUP JOINT STOCK COMPANY

I About Sunhouse

SUNHOUSE Group Joint Stock Company, formerly known as Phu Thang Co., Ltd., was established on May 22, 2000 In 2004, SUNHOUSE entered into a joint venture with SUNHOUSE Co., Ltd Korea, established SUNHOUSE Vietnam Co., Ltd and built a joint venture factory to produce household appliances, applying advanced cold Anodized technology in ASEAN region In 2010, SUNHOUSE was officially named SUNHOUSE Group Gate Company, investing in many diverse fields

(household goods, electrical appliances, kitchen equipment, electrical equipment After 20 years of establishment and development, SUNHOUSE Group has joined thetrillion-dollar enterprise group with an average annual growth of 25-

30%.SUNHOUSE currently owns a cluster of 8 production factories on a total area of100,000m2 with more than 2,500 employees employees, providing essential

household items and kitchen equipment, and becoming a familiar brand in the minds

of Vietnamese consumers

With a network of more than 60,000 points of sale nationwide, SUNHOUSE is

currently manufacturing and trading more than 600 groups of household products, household electrical appliances, kitchen equipment, water purifiers, civil electricity, industrial electricity weak, convenient for life Products of SUNHOUSE Group havebeen present and are a close friend to every Vietnamese family and have been present in foreign markets such as Cambodia, Laos, Myanmar, Egypt, Turkey, Hong Kong, Brazil and Vietnam Canada…

Products of SunHouse company are manufactured on modern lines and technology

of Korea, meeting the maximum demand for aesthetics and convenience compared

to existing household products on the market With breakthrough products in

technology such as: Non-stick pan, stainless steel pot set, aluminum pot set, Anod pot set SunHouse brand has received the trust of Vietnamese consumers In particular, thanks to the business motto of "success and development with

customers" through providing genuine quality products, implementing the best

consulting services, warranty and after-sales services, has brought Sunhoue

becoming a leading brand in the field of manufacturing and distributing high-end home appliances and kitchens in Vietnam

1 General information

Company name: SUNHOUSE Group Joint Stock Company

Short name: Sunhouse Group JSC

Charter capital: 390 billion VND

Tax code: 0101976905

Scope activities: Producing and trading in household appliances, electrical appliances, gas stoves, electric cables and electrical equipment

Head office: 12th floor, Vinaconex 9 building, Pham Hung, Nam Tu Liem, HanoiDirector (Representative): Mr Nguyen Xuan Phu

Phone: 043 7366696Email: info@sunhouse.com.vn

Website: http://sunhouse.com.vn/

Organizational structure

2 Sunhouse's fields and operational characteristics activities:

2.1 Field of activity characteristics:

Sunhouse is a pioneer enterprise in the field of manufacturing and trading householdappliances, electrical appliances, gas stoves, electric cables and electrical

equipment with breakthrough products in production technology such as:

+ Non-stick pan

+ High quality stainless steel pot set

+ Aluminum pot set

+ Rice cooker

+ High-class rice cooker

+ Infrared stove + Bathroom heating light

+ New generation RO water purifier

2.2 Operational characteristics

With a team of skilled workers who have been trained by Korean experts and a team

of office staff and more than 900 skilled workers, Sunhouse branded home

appliances and electrical appliances have affirmed their position leading its industry and is trusted by many domestic and foreign customers for the quality as well as the richness and variety of products

2.3 Main product line

SUNHOUSE pot is a typical household product of this brand and is used cold

Anodized technology to bring many outstanding advantages such as: High durability,good scratch resistance, resistance to force, especially non-reflective react with chemicals In addition, the SUNHOUSE pot also helps to shorten the cooking time byits fast heat transfer

- Electric Appliances

+ Rice cooker: The SUNHOUSE rice cooker impresses users not only with

a delicious bowl of rice with three-dimensional warming technology, but also with the ability to cook many different modes and functions ̣(such as cooking rice, stewing soup, boiling meat, ) In particular, due to it has the large heat tray, the

power consumption is minimized, helping the rice to cook faster

+ Air fryer: SUNHOUSE oil-free fryer with the most durable, high-grade materials

that are heat-resistant, resistant to scratches, and with an extremely luxurious and modern design, the oil-free fryer from the SUNHOUSE brand is trusted by many people

At the same time, the SUNHOUSE oil-free fryer can also reduce up to 80% of greaseand fat in food , saving cooking time, the ability to automatically shut off when

overheating, and has been recognized is safe for the health of consumers

heat, transmitting it to the stovetop, heating the bottom of the pot and cooking food.Possessing a super-durable, heat-resistant glass surface design and a convenient,youthful appearance with a modern touch panel, there are 5 different cooking modessuch as: Bone stew, soup, BBQ, fried, hot pot and many other useful features

without worrying about abrasion after use In addition to the multi-function ability togrind many foods with strong performance, the SUNHOUSE blender is alsoequipped with a super sharp stainless steel blade, serving to puree food without

worrying about rust

+ Other household products: In addition to the above products, SUNHOUSE alsoproduces many other household products and has achieved many successes suchas: electric pressure cooker, induction cooker, electric hot pot, oven, iron,…

- Electronic refrigeration

with RO membrane to help remove impurities, bacteria and ensure completely pureoutput water In addition, SUNHOUSE water purifiers meet extremely strict qualitycontrol procedures and obtain certification from the NSF organization

design suitable for all interior spaces, SUNHOUSE air conditioner can also meet allneeds of use in all conditions climate thanks to 2 modes of cooling and heating This

is a product that helps to take care of the family atmosphere, bringing a cool and

comfortable livingspace

- Kitchen equipment

Kitchen appliances from SUNHOUSE are always leading the Vietnamese market with a wide range of products such as: Gas stoves, electric stoves, hoods, These are products that SUNHOUSE has integrated into many industries Modern,

advanced technology and meet strict standards according to the production line fromKorea Therefore, you can rest assured to use to help everyone both save costs and ensure safety

II Market share

1.Market share of home appliances industry in Vietnam

According to data from the Ministry of Industry and Trade, currently consumption in household goods accounts for 9% of the total personal consumption package, among

11 main product groups, the household goods group ranks fourth in terms of

consumption The market size of the domestic household goods industry is estimated

at 12.5 - 13 billion USD, growing by more than 10% per year

Specifically, consumption for household appliances aged 18-45 accounted for 57-60%

of total market spending At the same time, people's income is currently increasing (over 2,000 USD/person/year), leading to changes in demand for more quality and designs

Besides, the percentage of consumers interested in Made in Vietnam products is increasing According to statistics, in the supermarket system of Vietnam, 85-95% are Vietnamese brands such as Happy cook, Sunhouse, Son Ha, Tan A, Dien Quang, which are increasingly dominating the market thanks to technology and prices city, wide distribution system.

In addition, the rural market has shifted from using homemade household items to using familiar Vietnamese brands Nielsen's research results show that in the first quarter of 2017, the growth rate of shopping in rural areas reached 12.4%, while in urban areas only reached 6.5%

In which, the purchase rate of common products increased by 40% and high-end products increased by 38.5% This shows that rural consumers will no longer be loyal

to popular and cheap products

Topping the list of "big guys" in the home appliance market is Kangaroo, with

revenue in 2016 amounting to about VND 2,000 billion, mainly coming from end water purifiers

high-Following is Sunhouse with revenue of about 1,800 billion VND However, if only sales of household products are counted, Sunhouse still holds the largest market share,with about 10% of the market in the period 2010 - 2016 This is also an enterprise with a stable growth rate at a high level average at 30% per year

A little-known enterprise like Elmich (a household appliance group from the Czech Republic that started to penetrate the Vietnamese market in 2011) also announced an annual revenue growth of 25 - 30%

Currently, domestic brands of household goods are accounting for 80% of the

household goods market share, 20% of which belong to foreign brands However, 80% of the market share of enterprises in Vietnam, mainly products of Chinese origin through "shaking hands" with domestic enterprises such as Sunhouse, Kangaroo

With such a potential market, of course, there will be fierce competition between firms in the industry In the past 2 years, large and traditional enterprises in the

country are also having to compete fiercely with a series of "small but powerful" enterprises such as VnTech, Asanzo, and Korihome

● User penetration will be 28.2% in 2022 and is expected to hit 36.0% by 2025.

● The average revenue per user (ARPU) is expected to amount to US$22.64.

History of development in Vietnam

Current status, trends and development potential of electric grills in Vietnam Most housewives in Vietnam do not have much time to cook and clean, although they always want to cook nutritious food for their family by themselves Young,

educated and tech-savvy consumers tend to be open to new technology, and

investing in a modern, long-lasting, family-friendly cooktop is a natural choicePursue a green lifestyle, live healthy, load healthy nutrients for the body but still want to eat delicious

2 Market position

There are 4 Genres of Market Position:

The first one is Market leader All of them represent high quality and high price Bosch has the highest market share in the US with more than 50% In Vietnam, Samsung, Sony and LGs have brand awareness of about 70%

Market leader: LGs, Bosch, Electrolux, Samsung, Elmich, Hafele,

Currently, household appliances brands account for 80% of domestic products, 20% of which belong to foreign brands They are in the group of challengers & followers

Market Challengers: Sunhouse group, Kangaroo, Goldsun, Philips, VnTech,

Asanzo, Korihome,

Market Followers: Benny, Gowell, Beko and Galanz

Market Nichers: Fable, Quince & Cook, Pangea Home,

3 Development potential of electric grills in Vietnam

Evaluation of the development potential of electric grills based on Maslow's hierarchy of needs

The first one is Basic needs: The electric grill can cook delicious baked goods to meet the needs of energy supply

The second one is Safety needs: Gas stoves often produce toxic gasses that affect users' health, are not good for physical health when breathing a lot of smoke, not only that, using a coal or gas stove is not safe to use With an electric grill, you do not have to worry about unsafe issues such as fire and explosion, in addition, it alsolimits the generation of smoke from materials such as charcoal => very safe to use

The third one is Social needs: Helping you enter the party faster when you don't have to wait too long to be able to enjoy delicious food with high heat capacity as well as many convenient cooking modes and functions.

The last one is Aesthetic needs: Most electric grills are an integral part of a modern home which is not only something that makes cooking easier but is also seen as a decoration that makes the whole house eye-catching Think about it, a modern house will never have to buy firewood to cook in the house

⇒ A product that meets 3-4 levels of the demand pyramid can be considered a

potential product with few competitors

III Competitors

1 Competitor Environment

1.1 Macro Environment: PESTLE

Policy:

 Household electrical appliances with VAT reduced to 8%

 Government import tax may affect Sunhouse's production cost and selling price The Vietnamese government is pursuing a green and inclusive recovery process

 Economic and financial policies of the Government may affect the production, business and investment activities of the company

Economic:

85-95% of consumers interested in “Made in Vietnam” products is increasing, such as: Happy cook, Kangaroo, Sunhouse,…Besides, some agreements (TPP, FTA) have opened up opportunities and challenges for the Vietnamese manufacturing industry, including the household industry for exporting with tax incentives, credit incentives, insurance The survey results show that, compared to the global

average, Vietnamese consumers have a stronger preference for domestic products, with 17% of consumers stating that they only buy consumer goods domestic

consumption, and 59% said they mostly buy domestic consumer goods (compared

to global averages of 11% and 54%) Even before the pandemic, nearly two-thirds of

Vietnamese consumers (69%) were willing to pay more for quality and safe products,far exceeding the global average of 49% This trend is expected to grow even

stronger, as consumers increasingly seek reassurance in the wake of the pandemic

Sociocultural:

Vietnamese people tend to live in groups, gathering and eating seems to be a

culture After the Covid 19 pandemic, people need to eat clean together and

especially at home, the electric grill became an indispensable tool at meals

According to the research, the group of 18 - 45 years old consumers is the largest target group accounting for 60% of the total consumption of household electrical goods

Trends in the use of smart and energy-saving devices can affect the company's product consumption

Technology:

 In the period of digital transformation, AI technology is pre-programmed in devices and technologies advanced 3D hot air circulation technology or Sunhouse applied cold Anodized, most of Vietnam's leading companies Asanzo, Sunhouse, Kangaroo take source equipment from the OEM company(Dat Quang Company)

 Technological improvements in production and design can help Sunhouse better compete in the market

 The development of information technology and the Internet may affect

Sunhouse's sales and advertising channels

Environmental:

Because of the pollution, Limiting the use of coal or gas while cooking alsocontributes to environmental protection Modern household appliances arefollowing the trend of using batteries and electricity, green energy Besides,After the Covid-19 pandemic, according to a survey of the newspaper

"Doanhnhansaigon.com", in 2021, 48% of Vietnamese people care about theirhealth So, Electric Grill can help for minimizing toxicity by traditional ways ofgrilling food directly with charcoal The possibility of carcinogenicity is due tothe fact that when grilling with charcoal or wood, the fat melts, then falls andreacts with oxygen and some substances in the smoke (due to oxidation with

high temperature conditions) to produce PAHs (Polycyclic aromatichydrocarbons (PAHs - Polycyclic Aromatic Hydrocarbons) this is a carcinogen.

Legal:

All household brands in VN Must strictly execute all the rules of Vietnamese

technical regulations announced by the Ministry of Science and Technology:

Vietnamese standards TCVN 5699-1:2010 National - Household and similar electricalappliances – Safety There were 19 types of electrical and electronic products

managed for electromagnetic compatibility in Vietnamese technical regulations

Regulations on consumer protection and product quality may affect Sunhouse's

production process and product quality control

Food safety regulations can also affect the company's production process

Patent and copyright may affect Sunhouse's development of new or innovative

products in the culinary field

International trade regulations and free trade agreements can affect a company's export and business plans

1.2 Micro Environment: Five forces analyze

Pressure from Customer:

Sunhouse’s customers are divided into 2 main groups:

Households (In main provinces and cities)Officials at work (In main provinces and cities)

Industrial customers, factories & offices, supermarkets, agentsConsumers today are very interested in using high technology to not only beconvenient but also protect family health and save time In addition, customers also

consider other factors such as durability, usage, aesthetics, breakthrough, and sales service Of course, reputable brands will always be placed as the first choice.

after-People who play a role in purchasing decisions: Women

Consult from: Husband, colleagues, friends, sellers, internet, advertising

Here is some feature for making decisions and choosing to buy Sunhouse products ofcustomers:

The product group of:

+ Water purification equipment: Technology

+ Kitchen equipment: Product durability

+ Electronic device: : Energy saving and safety

Customer’s monthly income: over $7 million

Marital status: recently married, planning to marry, married with a child,

Demand: Desire for products for family activities

Competitive strength in the industry:

There are many competitors in the home appliance manufacturing and trading industrysuch as LG, Samsung, Electrolux, etc However, Sunhouse has a competitive

advantage because its product prices are lower than its competitors

Supplier negotiating power:

Sunhouse can be affected by the prices of input materials, especially the prices of electronic components and metals These suppliers have high bargaining power and can increase the price of input materials However, in addition to the influence of raw material costs, Sunhouse is not under too much pressure on supply because they are

Client's negotiating power:

Customers have high negotiating power for Sunhouse because the company's productshave many competitors Customers may switch to a competitor's product if Sunhouse does not provide the product with sufficient quality or the product cost is high

Strength of substitutes:

Substitute products, such as those of competitors, can be a risk for Sunhouse If the company's products do not meet customer needs or the product costs are higher than competitors, customers may switch to competitors' products

Strengths of potential competitors:

There are many potential competitors that can set foot in the home appliance

manufacturing and trading industry Sunhouse needs to be careful in positioning its brand to deal with the emergence of potential competitors

Sunhouse substitutes depend on the specific product category, however, here are sometypical substitutes:

Replacement products for washing machines: LG, Samsung, Panasonic, Toshiba, Electrolux,

Replacement products for refrigerators: LG, Samsung, Panasonic, Toshiba,