PRINCIPLES OF MARKETING ESSAY TOPIC VINFAST’S MARKETING ANALYSIS

In Vietnam, Vingroup is making an important contribution to creating an industry, thereby pushing many other supporting industries to go up, that is the motorcycle and car manufacturing

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FACULTY OF MARKETING

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-PRINCIPLES OF MARKETING ESSAY

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HO CHI MINH CITY, 2021

PREFACE

-The automobile industry is always the pride of many countries because the automobile is considered the standard for a developed industry, with the development level of technology, design, production capacity, supply chain, etc distribution as well as labor potential In Vietnam, Vingroup is making an important contribution to creating an industry, thereby pushing many other supporting industries to go up, that is the motorcycle and car manufacturing industry at VinFast It not only contributes to the development of a leading industry in Vietnam, but also shows the desire to build a world-class

Vietnamese automobile brand So today our group chose the topic of analysis VinFast's marketing strategy From there, we want to contribute to giving the most overview of the path of the first car brand in Vietnam.

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A GENERAL INTRODUCTION ABOUT VINGROUP:

Vingroup Group - Joint Stock Company (referred to as

"Vingroup Group"), formerly Technocom Group, was

established in Ukraine in 1993 by young Vietnamese

people, initially operating in the food and beverage

industry great success with the brand Mivina In the early years of the 21st century, Technocom was always present in the ranking of Top 100 largest enterprises in Ukraine Since 2000, Technocom - Vingroup returned to Vietnam

to invest with the desire to contribute to the construction of the country

With a long-term vision and a view of sustainable development, Vingroup has focused on investing in tourism and real estate with two initial strategic brands, Vinpearl and Vincom With continuous efforts, Vincom has become one

of the No 1 brands in Vietnam in real estate with a series of complexes of commercial centers (commercial centers) - offices - apartments in big cities, leading the trend of smart urban - eco-luxury in Vietnam In January 2012, Vinpearl Joint Stock Company merged into Vincom Joint Stock Company and officially operated under the Group model with the name Vingroup Group - Joint Stock Company In the spirit of sustainable and professional

development, after its establishment, Vingroup has restructured and focused

on developing with many brand groups

such as: Vinhomes (A system of

high-class serviced apartments and villas);

Vincom (System of commercial centers,

level); Vinpearl (Hotel, tourism);

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Vinpearl Land (Vin entertainment (Health); Vinschool (Education); Vincharm (Beauty care); VinFast (cars and electric motorcycles)

With these achievements, Vingroup is being evaluated as one of the powerful private economic groups, with a sustainable and dynamic

development strategy, with the potential for international integration to rise to the regional level and the world.

B GENERAL INTRODUCTION ABOUT VINFAST:

VinFast (or VinFast LLC), the full name is Product Limited Liability Company VinFast Manufacturing and Trading, is

an established Vietnamese automobile manufacturer in 2017.

The company is a member of Vingroup construction and real estate group and was founded by Pham Nhat Vuong The company name stands for the phrase "Vietnam - Style - Safety - Creativity - Pioneering" (the letter Ph changed to F) - VinFast is a project in the field of automobile and motorbike manufacturing - one of the leading industries, having

an impact on many other industries that Vingroup has only joined for more than

in Lach Huyen, Cat Hai, Hai Phong, expected to have a total investment of up

to 4 2 billion USD

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VinFast factory complex has invested and put into use the most advanced production technologies such as: stamping workshop according to industry 4 0 standards, body workshop with more than 1,000 robots, 100%

automatic spot weldings line, a paint shop with state-of-the-art technology and

79 applied robots, an assembly workshop with fully automated moving processes and state-of-the-art testing equipment

To accelerate market entry, VinFast has relied on partnerships with various foreign companies in terms of design, production equipment and components To achieve a localization rate of 60%, VinFast has also cooperated with international suppliers to establish component factories in the complex in Hai Phong In June 2018, VinFast signed a Memorandum of Understanding to establish a joint venture with Aapico Hitech Plc., one of Thailand's leading auto parts manufacturers, to build a body shop in Thailand complex to supply VinFast products VinFast also planned to have eight auto parts factories set up, including four factories invested by VinFast, two joint ventures between VinFast and suppliers, and two factories wholly owned by VinFast supplier At the same time, the company also acquired GM Vietnam, including a factory in Hanoi, dealer network and staff VinFast's Fadil model is manufactured under license from GM

VinFast seems to have a vision for the future In the initial phase, the company will develop cars using internal combustion engines, but it also plans to catch

up with industry trends by developing battery electric vehicles through its partnership with EDAG company Engineering of Germany VinFast's mission is

to become the leading automobile manufacturer in Southeast Asia and build a world-class Vietnamese brand, thus creating a new hope for the Vietnamese

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auto industry VinFast President, Ms Le Thi Thu Thuy, has affirmed that the company wants to target a luxury brand and will also expand exports to foreign countries Thus, not only is VinFast determined to fulfill its goal of producing cars in the Vietnamese market, but VinFast is also making great strides to realize its ambition to export Vietnamese cars abroad.

MARKETING ENVIROMENT

Marketing environment is the combination of the actors and forces outside marketing that affect the company’s ability to build and maintain successful relationships with target customers Marketing environment includes: the macro-environment and the micro-environment.

The two cities of Vietnam, Ha Noi and Ho Chi Minh City have a population density 10 times higher than the whole country at 2.39 people/km and 4.363 2

people/km 2

The above data shows that the demand for car ownership in Vietnam is very high at the present and will continue to increase in the future because the population size is getting bigger and bigger, the quality of labor resources is improved Due to the pioneering in car manufacturing in Vietnam, VinFast has many advantages from the domestic market, the proof is that in September

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2017, Vingroup’s car company successfully tested their first car model – Lux

SA 2.0 which created a fever throughout the media, car lovers in particular and Vietnamese people in general.

2 Economic environment:

For luxury goods such as cars, customers' s income has a great influence on product consumption, especially in the upper-class and middle- class According to the General Statistics Office, the average income per person per month in the whole country in 2020 at current prices is about 4.23 million VND, down about 2% compared to 2019 In fact, the income of

Vietnamese people is still growing quite well, which creates favorable conditions for people to have the opportunity to access luxury products such as cars, electric vehicles, etc.

3 Natural environment:

Natural factors in Viet Nam are exploited by VinFast such as terrain, rain, land, climate, weather, etc Besides that, the climate change is increase, which becomes a problem for the car industry.

According to the Tuoi Tre newspaper, VinFast has produced 15.000 Klara electric motorcycles that consumers can move freely and still reduce emissions into the air In addition, they also have environmental protection campaigns such as ‘Vi tuong lai xanh’, ’15.000 nguoi chung tay cung VinFast giam o nhiem moi truong’, etc VinFast has policies to help businesses create products that are not only quality but also adaptable to natural conditions This inspires

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their customers, especially young people to be environmentally conscious and also contributes to raising their brand.

4 Technological environment:

Science and technology are important factor that helps a first Vietnamese car brand like VinFast compete with other famous brands in the domestic market and can reach out to the world in the future.

Although most of the components are imported, VinFast has applied modern science and technology in assembly such as using robots in most production processes, which help speed up production, high accuracy and safety for humans.

5 Political environment:

Vietnam is a politically stable country, riots is rare, the problem of corruption is gradually being overcome so the economy in general and the car industry in particular are not affected by politics much On the other hand, because of the tension in the relationship between Vietnam and China, VinFast encountered certain difficulties in importing components from China Besides that, according to the online newspaper VTV, for domestically assembled cars, before Decree 57/2020 of the Government, car assembly enterprises still had

to pay tax on imported components for domestic assembly The average tax rate is 30% to 45% depending on the type of car components or assemblies imported to Vietnam, which also limits VinFast’s car production.

6 Cultural environment:

In Vietnam, people used to consider cars as a product of great value, inappropriate in the context of agriculture being the majority However, at present, the usage trend of Vietnamese people is shifting, cars are gradually

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becoming a popular means of communication in urban areas and also gradually appearing in rural areas.

In terms of infrastructure, according

to Wikipedia, VinFast has a main production and assembly plant located in Hai Phong City, The factory covers an area of 335 hectares with a total investment of 3.5 billion USD and is one of the largest industrial projects in Vietnam.

The company cooperates in technology, engineering, strategic consulting support, human resource training with the largest global manufacturers of automobiles, spare parts and heavy industrial equipment such as BMW, Siemens AG, ThyssenKrupp, etc

2 Suppliers:

To achieve the goal of producing high-quality cars that meet international standards, VinFast has focused on finding qualified parts and components suppliers Some VinFast’s suppliers such as VAPA provides plastic

components, ABB provides 1200 robots for production, etc.

(VinFast’s factory in Hai Phong)

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3 Intermediaries:

Customers can search for VinFast products right on VinFast's website, at car shows or at distribution places

Because VinFast develops an electric vehicle system that is not yet popular in Vietnam, the distribution and

arrangement of charging stations face many difficulties but still achieve certain

results According to Wikipedia, as of December

2020, the business has 55 showrooms, 30 authorized dealers, and 57 service workshops, including 16 VinFast Chevrolet points Electric motorbike dealer: 119 selling points, 80 warranty points, 559 battery exchange and charging stations.

4 Customers:

Customers are the most important in micro-environment VinFast targets the consumer markets In addition, they have many programs aimed at putting customers first Gifts such as gifting luxury resort packages even after buying a car for a year show the respect of VinFast for their customers.

Mr Ngo Duc Hai, Director of Strategy - Markets Funzilla Vietnam Company highly appreciates VinFast's respect for their customers, "The

(VinFast’s electric car charging station in Long Bien) (Vi F t’ h i H Chi Mi h Cit )

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principle of 'selling goods is not the complete end of the transaction' needs to

be adhered to Businesses respect, just like how VinFast is doing," said Mr

Hai.

5 Competitors:

There are 2 types of opponents:

 Direct opponent: major car brands in the world are popular in Vietnam such as Nissan, Hyundai, Toyota, etc In addition to good reviews, VinFast also received reviews which was inferior in some aspects to strong

competitors that already had a certain foothold in the Vietnamese market

This shows that VinFast needs to improve their products more to be able

to satisfy their customers.

 Indirect opponent: motorcycle, electric bicycle, etc In fact, Vietnamese people now travel by means of small and convenient sizes such as motorbikes, bicycles or electric bicycles This becomes a big challenge for VinFast to assert the position of their products compared to other long- standing vehicles.

6 Publics:

VinFast approaches their customers through media such as TV, newspapers, social networking platforms such as Facebook, Youtube, etc They also use influencers such as Ngo Thanh Van, Son Tung MTP to increase brand awareness

S-T-P ANALYSIS

(Ngo Thanh Van)

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A SEGMENT:

VinFast's market is divided into 4 segments.

VinFast's cars are distributed to almost every place in VietNam

However, their products are present in large urban areas, with wide roads and densely population such as Ho Chi Minh City, Ha Noi, Hai Phong, Binh Duong, etc In fact, we rarely see electric charging stations in rural areas, because their electric vehicle products are difficult to distribute to rural areas, most of which are gasoline-powered cars.

Student, start up, stay at home mom, elderly.

Go out rarely or just for school.

Price conscious.

Age: 21-35 Income: 30-60M Working.

Have a busy life.

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cares about quality.

VinFast becomes the first Vietnamese car brand arouse national pride, especially young people With a modern and dynamic and luxurious design, their products can make the customers satisfied with the quality that matches the price Moreover, VinFast also develops electric vehicles to help protect the environment and spread meaningful messages to their customers.

VinFast’s customers often buy products through distributors Although there are some comments complaining about the quality, VinFast products still, make the majority of customers satisfied and they will recommend to the friends about thier products.

B TARGET:

1 VinFast Electric Bike:

1.1 VinFast Impes and VinFast Ludo:

 Focus on Teenagers with morden design.

1.2 VinFast Klara S and VinFast Feliz:

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 Have girly designs, small, easy

to drive in a crowded city.

 Social Class: Middle.

 Live in the city.

 Lifestyle: Modern.

 Use for a small family.

2.2 VinFast Lux A2.0:

 Ages: 15-55.

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 Live in City.

 Income: High.

 Social class: Middle and High.

 Lifestyle: Modern

 Use for companies or a family with less than 4 people.

2.3 VinFast Lux SA2.0:

 Ages: 35 - 55.

 Income: High

 Social Class: High

 Live in the city.

 Lifestyle: Modern.

 Use for a big family with more than 4 people.

C POSITIONING:

1.

National pride - The first Viet Nam dometics brand.

The position of VinFast in customers' minds: national pride

VinFast is the first time in history, a company founded

by Vietnamese to produce a car Before introduced VinFast create a design vote influenced million Vietnamese people.

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In November 2018, VinFast Lux A2.0 and Lux SA2.0 introduced in the Paris Motor Show with David Beckham created a huge event that was reported by a lot of newspapers, magazines and TV A car “made in Vietnam” appears in one

of the biggest car events in the world which impacted people a lot.

2.

Low price high quality:

The VinFast car always has the price of lower classification and quality of higher classification:

VinFast Fadil with classification A

- Minicompact - car price but has a 1.4L I4 engine which only appears on

classification B - Subcompact car It was developed based on Opel Karl Rocks - a Germany car brand

VinFast Lux A2.0 has classification

D - Large Family car -, but it has 2.0L BMW-N20B20 I4 T engine and 8-speed ZF 8HP automatic

transmission gearbox which was developed based on a classification

E - Luxury car - BMW Series 5 engine.

VinFast Lux SA2.0 like Lux A2.0 uses an engine and gearbox which was developed based on the BMW X5 - a Luxury SUV Car.

(BMW Series 5)

(Opel Karl Rocks)

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MARKETING MIX

A PRODUCT:

1.

Production mix:

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manufactured by VinFast according to BMW technology, guided and supervised by BMW experts, and other details are provided by the world's leading famous manufacturers such as the box ZF numbers, Bosch accessories… Besides, the car has also passed hundreds of the most severe tests of leading European laboratories So, the ride quality is very good Not only that, VinFast is also the first automobile factory in Vietnam to share the world's leading high-automation, synchronization and completion cycle

Currently, VinFast is manufacturing cars with 6 factories that are interconnected and automated with thousands of ABB robots and equipped with Siemens and SAP intelligent production operating systems.

According to VinFast, "Putting customers' peace of mind first, VinFast cars are equipped with the most advanced safety features to protect the driver and all passengers on board, meeting the rigorous standards of rating agencies

leading prestigious car prices in the world such as ASEAN NCAP, EURO NCAP, NHTSA "

companions: Connecting customers with the Vingroup ecosystem to ensure long-term value and experience for VinFast owners.

VinFast aims at the German driving experience and the durability of Japanese cars with prices in the middle of German and Japanese car prices.

2.1.3 Style and design:

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Tiêu đề	VinFast’s Marketing Analysis
Trường học	The Financial University of Finance – Marketing Faculty of Marketing
Chuyên ngành	Marketing
Thể loại	Essay
Năm xuất bản	2021
Thành phố	Ho Chi Minh City

Định dạng
Số trang	69
Dung lượng	1,36 MB