7Ps-Marketing-Mix-Of-Vietjet-Air Compress, The Latested Update.pdf

19 13 06/09/2023 7ps marketing mix of vietjet air compress, the latested update about blank 1/70 THE FINANCIAL UNIVERSITY OF FINANCE MARKETING – oOo THE 7Ps MARKETING MIX OF VIETJET AIR Branch of lear[.]

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THE 7Ps MARKETING MIX OF VIETJET AIR

Branch of learning : Marketing

Hồ Chí Minh City, 15 July, 2021

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TABLE OF CONTENT

LIST OF TABLES 5

LIST OF PICTURES 6

CHAPTER 1: INTRODUCTION 1

1.1 OVERVIEW 1

1.1.1 Reasons for choosing the topic 1

1.1.2 Objectives of the study 1

1.1.3 Research subjects 2

1.1.4 Research scope 2

1.1.5 Research Methods 2

1.1.6 Structure of topic 2

1.2 OVERVIEW OF VIETJET AIRLINES JOINT STOCK COMPANY 2

1.2.1 About VJA 2

1.2.2 Vision and mission 3

1.2.3 Goals and Core values 3

1.2.4 Operational scale 4

CHAPTER 2: MARKET ANALYSIS OF AVIATION INDUSTRY AND COMPETITORS: 5

Overview of the world Aviation Industry and the Domestic Aviation market: 5

2.1 MACRO ENVIRONMENT : 5

2.1.1 Economic environment 5

2.2.2 Technology environment 6

2.2.3 Political - legal environment 7

2.2.4 Socio-cultural environment 7

2.2.5 Natural environment 8

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2.2 MICRO ENVIRONMENT: 8

2.2.1 Finance 8

2.2.3 Customers 10

2.2.4 Media 11

2.2.5 Employees 11

2.2.6 Shareholders 12

2.3 COMPETITOR 13

2.3.1 Direct Competitors: 13

2.3.2 Potential Competitors 13

CHAPTER 3: TARGET CUSTOMERS AND POSITIONING STRATEGIES 15

3.1 TARGET CUSTOMERS AND POSITIONING STRATEGIES 15

3.1.1 Target customers 15

3.1.2.1 Customers' perception of using Vietjet Air's services: 15

3.1.2.2 Customers searching for information about Vietjet Air's services: 16

3.1.2.3 Customer reviews of other options or alternatives: 16

3.1.2.4 Customers' experiences when using Vietjet Air's services: 16

3.1.2.5 Feedback from customers after using Vietjet Air's services: 17

3.2 POSITIONING STRATEGY OF VIETJET AIR: 17

3.2.1 Positioning distinguishes a brand from its competitors: 17

3.2.2 Developing an effective positioning strategy: 18

3.2.2.1 Market analysis: 18

3.2.2.2 Internal corporate analysis: 18

3.2.2.3 Competitor analysis: 20

3.2.3 Using positioning maps to plot competitive strategy: 21

3.2.3.1 Marketing Strategy Evaluation: 21

3.2.3.2 Customers' perceptions: 22

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CHAPTER 4: MARKETING MIX STRATEGIES 23

4.1 PRODUCT STRATEGY 23

4.1.1 What is product strategy? 23

4.1.2 Product portfolio 23

4.1.3 Product strategy analysis 24

4.1.3.1 Core product 24

4.1.3.2 Supplementary services. 24

4.1.4 Evaluate VJA's product strategy 25

4.1.5 Solution to complete the company's product strategy 26

4.2 PRICING STRATEGY 27

4.2.1 Definiton of price 27

4.2.2 VJA’s Pricing Strategies 27

4.2.2.1 Cost-Based Pricing 27

4.2.2.2 Value-Based Pricing 32

4.2.2.3 Competition-Based Pricing 33

4.2.4 The solution to complete the company's pricing strategy 33

4.3.1 Definition 34

4.3.2 VJA’s Distribution of Supplementary and Core Services 34

4.3.3 VJA’s Distribution Strategies 36

4.3.2.1 Indirect Distribution 36

4.3.2.2 Direct Distribution 36

4.3.3 VJA’s Place Decisions of Service Delivery 37

4.3.3 VJA’s Delivering Services in Cyberspace 37

4.3.3 Đánh giá Distribution strategy của VJA (Ưu, nhược điểm) 37

4.3.4 Gi i pháp hoàn thi n Distribution strategy c a công tyả ệ ủ 38

4.4.1 What is a Promotion Strategy? 38

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4.4.2 Actual situation of promotion strategy activities of VJA 39

4.4.2.1 Advertisement 39

4.4.2.2 Promotions 40

4.4.2.3 Public relations 41

4.4.2.4 Personal selling 42

4.4.2.5 Direct Marketing 43

4.4.3 Evaluate VJA's promotion activities 43

4.4.4 Complete solution for promotion activities 44

4.5.1 Definition: 44

4.5.1.1 Processes: 44

4.5.1.2 Flowcharting customer processes: 45

4.5.2 Processes in Vietjet: 45

4.5.2.1 Vietjet’s booking and payment process: 45

4.5.2.2 Vietjet’s air ticket refund process: 46

4.5.2.3 Vietjet's complaint and compensation process: 46

4.5.2.4 Vietjet’s maintenance process: 47

4.5.3.2 Propose solutions for Vietjet: 48

4.6 PHYSICAL EVIDENCE MANAGEMENT 49

4.6.1 Definition of evidence 49

4.6.3 Physical evidence assessment of Vietjet Air 52

4.6.4 Solutions and proposals for Vietjet Air company 53

4.7 PEOPLE 55

4.7.1 Service employees 55

4.7.1.1 Service employees are crucially important 55

4.7.1.2 Service employees as a source of Customer Loyalty and Competitive Advantage 55

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4.7.2 Human Resource 56

4.7.3 Customer services 57

4.7.4 Problems and suggestions for future 58

4.7.5 Pros and Cons of People’s Strategy 59

4.7.6 Solutions and proposals for Vietjet Air company 60

CHAPTER 5: SUMMARY 61

DOCUMENTATION 63

LIST OF TABLES Table 1: Structure of the company's shareholders as of January 4th, 2021 9

Table 2: List of Board of Directors 12

Table 3: The service of each levels of price 28

Table 4: table of ticket prices of VietJet Air compared to Vietnam Airlines, Pacific Airlines from Ho Chi Minh city to some provinces 30

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LIST OF PICTURES

Picture 1: Life of cycle cost analysis 19

Picture 2: Scale and the level flight route coverage 20

Picture 3: Staff and aircraft of VJA 21

Picture 4: Positioning map 1 21

Picture 5: Positioning map 2 22

Picture 6: “Hunting 0 VND tickets to fly around VietNam Campaign”- 31

Picture 7: 77% discount program forr passengers 32

Picture 8: Minh Tu and Celine Farach in VJA’s calenndar in 2018 41

Picture 9: VJA’s promotion on VietNam Teacher’s day 42

Picture 10: VJA for bikini model to welcome U23 VietNam caused a lot of controversy 43

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CHAPTER 1: INTRODUCTION 1.1 OVERVIEW

1.1.1 Reasons for choosing the topic

The aviation market is now more interested than ever Because life is more and more

modern, people's needs are increasing From old bicycles, to motorbikes, to cars People's

means of transportation are getting more modern over the years Moving between faraway

places is no longer something that makes us think twice No need to say much or discuss deeply,

there is one thing that everyone must admit that traveling by air will be much more convenient

than other types of means Although the cost is much higher, flying gives us commensurate

benefits First of all, the issue of time, traveling by "birds of flight" helps us save a lot of time

And thanks to that, our time will be longer, longer, and we can do more of our plans Besides,

health issues are also very important, instead of having to sit for hours on end tired in cars and

trains, we can sit comfortably on airplanes in a much shorter time

Along with the growth rate of the economy, the aviation market also develops in a

proportional manner According to IATA data, Vietnam's aviation market has the third fastest

growth rate in the world with an average rate of 16.6% per year in the period 2001-2014 IATA

also forecasts that Vietnam will be the fifth fastest growing aviation market in the world,

reaching 150 million passengers by 2035 Vietnam's aviation industry is also the fastest

growing industry in Southeast Asia

It can be said that the success of the aviation market that Vietnam has cannot fail to

mention the names Vietjet Air, Vietnam Airlines, Bamboo, etc Among them, Vietjet is the

name that is making waves when it was born but both growth and revenue are outstanding

According to the announcement of the 2020 financial report, Vietjet announced a profit of 70

billion dong, while Vietnam Airlines lost more than 11,000 billion dong

Realize the resounding success of VJA and the importance that the Marketing Mix

strategy contributes to that success We decided to choose the topic: "Marketing Mix Strategy

of Vietjet Aviation Joint Stock Company" as our research topic

1.1.2 Objectives of the study

- Learn about Marketing Mix activities of Vietjet Aviation Joint Stock Company

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- Analyzing the current situation of VJA's Marketing Mix

- Analyze the business environment of VJA to see strengths, weaknesses, opportunities and

threats And from there, propose measures to improve VJA's Marketing Mix strategy

- Collect secondary data and business results of VJA in recent years

- Collect data and information from newspapers, TV, Internet,

- Using analytical methods, comparing data between years to come up with VJA's

CHAPTER 3: TARGET CUSTOMERS AND POSITIONING STRATEGIES

CHAPTER 4: MARKETING MIX STRATEGIES

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This is Vietnam's first private airline Not only air transportation, Vietjet also provides

consumer demand for goods and services through e-commerce technology applications

Currently, Vietjet Air is an official member of the International Air Transport Association

(IATA) with the Operational Safety Certificate (IOSA)

Currently, Vietjet is operating 80 A320 and A321 aircraft, carrying out more than 385

flights per day, transporting more than 65 million passengers

This airline currently has 105 routes covering destinations in Vietnam and a number of

international routes such as Japan, Hong Kong, Singapore, Korea, Taiwan, etc In the future,

Vietjet Air will open more routes flies throughout the Asia-Pacific region

Vietjet's headquarters in Hanoi, address: Van Phuc Diplomatic Corps, Ngoc Khanh ward,

Ba Dinh district

In Ho Chi Minh City, the head office is at 260 Ung Van Khiem, Binh Thanh District In

addition, the company's hotline number is 1900.1796 (support 24/7)

1.2.2 Vision and mission

Vision:

To become a multinational airline corporation, with a wide network of flights throughout

the region and the world, developing not only aviation services but also providing consumer

goods on an e-commerce platform, a brand that is loved by customers love and trust

Mission:

- Exploiting and strongly developing domestic, regional and international routes

- Bringing a breakthrough in aviation services

- Make air service a popular means of transportation in Vietnam and internationally

- Bringing joy and satisfaction to customers with outstanding, luxurious service and friendly

smiles

1.2.3 Goals and Core values

Goals:

Creating a new historical milestone for the aviation industry, making Vietjet a "made in

Vietnam" global airline

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Core Values:Safe Fun Cheap On t– – – ime

1.2.4 Operational scale

VJA operates more than 385 flights per day and has carried more than 65 million passengers,

with 105 routes covering destinations in Vietnam and international routes to Japan, Hong Kong,

Singapore, Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia, etc Vietjet plans

to develop a wide flight network throughout the Asia-Pacific region, is studying to continue

expanding routes in the region and has signed contracts to purchase new and modern aircraft

with major aircraft manufacturers in the world

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CHAPTER 2: MARKET ANALYSIS OF AVIATION

INDUSTRY AND COMPETITORS:

Overview of the world Aviation Industry and the Domestic Aviation

market:

Currently, airlines are still struggling to maintain operations, partly thanks to the

resources of businesses, partly thanks to financial support from the government However,

according to the assessment of organizations, with strong vaccine programs in countries and

gradually loosening policies to open up internationally, it is expected that aviation activities

will gradually become bustling and recover from the beginning of 2022 The number of

passengers transported dropped sharply due to flight restrictions and social distancing, causing

international and domestic routes to be suspended The airline market also faces difficulties

when tourism demand is low, leading to a decline in passenger arrivals After recording a sharp

decline of 86.5% and 87.7% in April and May respectively due to the outbreak of the disease,

the market recorded a gradual recovery in the following months thanks to the stimulus policies

during the tourist season, which mainly serves domestic tourists For the whole year 2020, the

number of passengers transported reached 34.8 million passengers, down 61%; in which

international visitors reached more than 3 million visitors, down 79% and domestic tourists

reached 31.7 million visitors, down 25%, a decrease much less than the world average

In Vietnam, with the best anti-epidemic record in the region and a country with the

advantage of 22 airports, it is expected that Vietnamese airlines will gradually recover, and are

expected to open international routes in the fourth quarter of 2021 and start to recover gradually

in 2022

2.1 MACRO ENVIRONMENT :

2.1.1 Economic environment

Vietnam's economy in recent years has made great progress, with an annual growth rate

of 7% to 8.6%, per capita income has increased significantly Vietnam's economy is changing

its face, infrastructure is being upgraded, investment is increasing With the rapid development

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