Mkt-Report_ Comprehensive Global Marketing Analysis Of U.s. &Amp; Germany Markets.pdf

and Germany to indicate the market where VinFast has more potential for development as well as evaluates the company's potential in that market and makes appropriate recommendations for

FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

GROUP ASSIGNMENT

TOPIC: VINFAST'S COMPREHENSIVE GLOBAL MARKETING REPORT ON

THE U.S AND GERMAN MARKETS

Mid-term Assignment — Global Marketing Management

Academic year: 2024 — 2025

- Group 3 -

Class Code: MLILO1 Lecturer: PhD Nguyén Thi Thu Thao

Thai Van Anh 2212535009

V6 Dinh Khanh Doan 2212535013

TABLE OF CONTENT

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INTRODUCTION rn nr hen hen kh 1

1 1.1 Vingroup and VINFaSt eee ee treet ee een eeeeeaeeeeeeaeeeeenaes 1 1.2 VinFast EV product - VF8 ch» nh he kh he 1 1.3 About the two market: US and Germany cà 2 CHAPTER 2 Q nhe kh Hit MARKET COMPARISON

3 2.1 Criteria definitiO' ch nh HT nh HH hy 3

2.3 Market Attractiveness AnalySỈS che nhi 5 2.4 Competitiveness Strength các nh nh Heo 7 CHAPTER 3 ce eo ENTRY STRATEGY AND EVALUATION

13 3.1 Internal fACEOFS ccQ nnnnn TH nh nh» nh kh ky 13 3.2 External fACEOVS SH TT nh nh eee tk kg 13 3.3 Desired mode characteriSfiCS nen nhe 14 3.4 Transaction-specific factors (Tacit nature of Know-how: low)

14 3.5 TÌDOC LH Hs KT nh TK TK Ko KH kh kh 15

3.5.3 PROGUCt (44344 16 CHAPTER 4 nh n HH nh Hành MARKETING PROGRAM

17 4.1 Segmentation and TA - ch nhe 17 4.2 — Target aUdi€nCe - nh nh nh nh kh kh 17 4.2.1 Demographic characteristiCS - cành nhe 17 4.2.2 Barrier for purchasing an EV chen nhe 17 4.2.3 Behavior, psychology Of TA cán nh nhe 18 4.2.4 Psychological barrier for VinFasf cà ào 18

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4.3.2 PLICC Lec cece ccc ceeseseeeeeeeeeeeaceeeeeeeeeeeeaseueeeasesaeatavesaeanenenass 18 4.3.3 PIACC Li ccccccccceccee ce ceeeseeeseeeeeceeeeeaeeeseueeeeeeesaeegeeeeaeanene es 19 4.3.4 PTOIMỌOR HT TK KH nh tu kh ni nha 19 RECOMMENDATIONS AND CONCLUSION - - 20

REFERENCCE -.- Q0 HH TH KT TK K Kn Kế kh ng kế kh Bà bà tp rg 21

TABLE FIGURE

Table l - Markets Potential IndICafOTS ó0 0212110113111 113131111115 012 1121101118112 xy 3

Table 4 - Market Attractiveness AnaÌYS1§ 1H12 1201111111 1101111111111 1111181 1 xkg 7

Table 5 - Market Attractiveness Marking tabÌe c2 2 211 2311581211218 re 8

Table 6 - Competitiveness Strengt ác c2 1211121111 011111111111111 11911111111 8 yên 11

Table 7 - The U.S.s Competitiveness Strength n1 1v 2 12111 erreg 11

Table 8 - Germany’s Competitiveness Strength cv ng HH1 12 kg 12

FIGURE

Figure | - The U.S and Germany market attractiveness/competitive strength matrix 12

Figure 2 — VE§'s SegmenfafIOH c1 121 1v 9913911111 111211 111111111811 111111211115 xe 18

ICT Information and Communications Technology

INTRODUCTION

This report aims to evaluate the two operated markets of VinFast: the U.S and Germany to indicate the market where VinFast has more potential for development as well as evaluates the company's potential in that market and makes appropriate recommendations for future development By using the BERI index and market attractiveness/competitive strength matrix (GE Matrix), it has been shown that the U.S is the market where VinFast should focus

on developing more at present The identification of the target audience and customer segments in this market is analyzed and evaluated as appropriate; however, VinFast needs to prepare more in terms of the level of resource commitment from current operations to prepare for the transition to FDI strategy in the U.S market This report also analyzes the company's marketing strategy and makes appropriate assessments for further development

1.1 Vingroup and VinFast

VinFast, a Vietnamese automobile manufacturer, is a subsidiary of the region's leading conglomerate - Vingroup The company’s vision is “driving the movement of global smart

EV revolution” with the mission of “creating a more sustainable future for everyone” By always putting customers first, VinFast maintains its three core values “high-standard products, competitive pricing, and outstanding after-sales policies” (VinFast, 2024)

By the end of 2022, VinFast had stopped producing internal combustion engines (ICE), focusing on all-electric powertrains for its vehicles In less than a year, VinFast became one of the world’s first automotive companies to switch to an all-electric line-up, affirming its position as a leader in the global EV revolution (Vinfastauto, 2022)

1.2 VinFast EV product - VF8

VinFast has a wide range of product portfolio, including:

e Electric vehicles (EV): VF3, VF5 Plus, VF6, VF e34 ,VF7, VF8, VF9

e Internal combustion engines (ICE): Fadil, LUX A2.0, LUX SA2.0, President

o Intermediate: Feliz S, Klara § (2022)

© High-class: Theon S, Vento S

VinFast has rapidly established its global footprint, entering the global EV market boldly, and positioning itself as a global competitor brand (Nolan, 2024) VF8 is one of the company’s flagship electric SUV models launching in 2022 targeting environmentally- conscious consumers seeking high-performance cars VF8 features modern amenities such as

a high-capacity battery, autonomous driving capacities, and state-of-the-art technology inherited from the German production line It is regarded as one of the premium yet affordable EVs that are an alternative to traditional luxury vehicles for its competitive pricing and the modern aesthetic design by an Italian design house - Pininfarina Studio, contributing

International standards” (Times & Times, 2024) To maintain global consumer loyalty, VinFast also focuses on after-sales services such as battery leasing programs, and warranty coverage to reduce customer barriers to EV adoption (VF 8 | VinFast, n.d.)

1.3 About the two market: US and Germany

The U.S and Germany are two of the markets that VinFast has operated The two countries have some data reflecting the potential of EV market development

Table I - Markets Potential Indicators

Both countries are developed countries that have high GDP per capita and also personal earning, which allows US and German people to spend more on products According

to a Gallup poll, nearly two-thirds of Americans express concern about climate change while this number in Germany is 76% A substantial majority in the U.S., 66% (Blazina, 2024) and approximately 86% Germans, support the development of renewable energy sources over fossil fuels

The U.S EV market is projected to reach approximately $82.8 billion by the end of

2024, rising by 20% in 2024 (Sukhanova, 2024) According to the Boston Consulting Group, 70% of U.S drivers are considering purchasing an EV, and nearly 40% of consumers say they plan to purchase one as their next vehicle (ChargeLab, 2024)

The German EV market is expected to reach $44.6 billion by the end of 2024, reflecting an annual growth rate of 28.9% In 2023, Germany saw an 11.4% increase in battery-powered vehicles sold from the previous year (Markets, 2024)

CHAPTER 2 MARKET COMPARISON

2.1 Criteria definition

In the Beri index, we highly concentrate on 3 main points including political stability, economic growth, and currency convertibility to evaluate the market potential and its openness Political stability supports the long-term development of the EV industry, an industry that requires contributions from many suppliers (Radu, 2015) Economic growth generally leads to growth in economic output, a rise in national income, and access to public goods, encouraging customers’ willingness to buy more and driving a higher living standard like cars (Sen, 2021)

Market attractiveness is how profitable or desirable a target market is for an organization, considering the market size, market growth, buying power, the level of competitive intensity, and other constraints (Monash University, n.d.) Market size measures the total sales from selling products, indicating the size of potential customers’ segmentation and revenue translation opportunities (IGNITION, 2024) Market growth measures how much and how fast the market has changed, showing whether there 1s room for new products

or services to enter and succeed (Blum, 2014) Hence, market size and growth determine the

potential for any new business and tend to promote entry into markets generally (Anderson & Waldfogel, 2015) Buying power is the number of products that a unit of customers’ currency can buy at a time (Hayes, 2023), giving consumers the ability to squeeze industry margins by pressing firms to drive down prices or increase the quality of products offered (CFI, 2022) Competitive intensity is the extent to which companies within an industry press on the others, and whether they are aggressive and active, which suppose the market degree of

concentration and competitiveness, the barriers, and rivalry (CFI team, 2020)

Competitive strength is the combination of unique selling points that benefit customers and set the business apart from its competitors (Employment, 2022) Businesses use price as a factor to differentiate themselves from competitors, and determine their profitability, and market position (Devie et al., 2022) Brand awareness refers to the customers' familiarity and recognition with a particular brand, making them stand out from the crowd of competitors and becoming the consumer's first thought, and first choice when choosing a product (Effective, 2023)

2.2 BERI Analysis

Political olitical stability Fragile States Index| 3 141/179) 24.0 (Rank 166)

Economic growth GDP Growth Rate | 2.5 2.5 (2023) -0.3 (2023)

Currency convertibility 2.5 Very high High

Labour cost/productivity | Average income 2 80,300$ 53,970$

Long-term loans/venture Business

5 confidence index 2 98.91 (1/2024) | 98.94 (1/2024)

capital

(BCT

foreign investor and I mt t 1.5 million US $ million US$ profits Ryegmen (2022) (2022)

International Nationalization Property Rights 1.5 7.5 (2023) 7.7 (2023)

Index Monetary inflation Inflation Rate 1.5 2.5% (8/2024) | 1.9% (8/2024)

Cc ommunications phone, | IC ications: ph ICT Devel evelopment 1 96.7 (2024) 87.8 (2024)

Local management and Ease of Doing 1 Rank:6/190 Rank: 22/190

Professional rofesslonal services and | a cation Index | 0.5 i 0.88 0.95 contractors

Table 2 - BERI Analysis

Table 3 - BERI Evaluation

The stability of political, economic growth and common use of the U.S dollar point out the potential of the U.S market for new entrants into the EV industry Moreover, the openness for new companies and the credit conditions also emphasize the more ideal conditions for the development of the EV industry

2.3 Market Attractiveness Analysis

Sales revenue of EVs -

(Statista, (Statista,

(World Bank, | (World Bank,

Table 4 - Market Attractiveness Analysis

Score (on the Overall index scale from 1 to score igh

US Germany US Germany

Market size Sales revenue of EV 0.15 5 4 0.75 0.6

Score

USA (with regard to 2024

in North America (Ford,

- VinFast doesn't directly own and operate a charging network in North America (ChargeHub, 2024)

- Can use Tesla chargers with

some limitations (Must use

adapter) Moderate: VinFast has more charging station throughout Europe compared to Volkswagen but Volkswagen uses Tesla Supercharger more

Lower: Although VinFast can use charging stations from partners, they do not have their own charging Stations

conveniently

Ford:The standard-range battery can charge from 10

VinFast: 10% to 70% in 31

Charging | and 482 km for Select minutes and 4 25 km (Eco)/ 391

time & = | (Ford, 2024)

VinFast:10% to 70% in 31 |(VinFast, n.d.)

for full -

battery minutes and 425 km (Eco)/ Equivalent

391 km (Plus) on a full charge (VinFast, n.d.) Lower: VinFast has longer charging time and also smaller range

Ford: National Highway Volkswagen: The 2024 ID.4 Traffic Safety gets good overall crash test Administration: 5/5 overall | ratings from both the Insurance (NHTSA, n.d.) (Autoblog, Institute for Highway Safety and 2024) Good overall of ITHS | the National Highway Traffic Safety test (IIHS, 2023) Safety Administration (Indigo

'VinFast: National Highway

Administration: 4/5 overall | NCAP Crash Test (Iulian

Prices

Ford:

- $43,995 for 2024 Mustang Mach-E Premium

VinFast VF8 Eco: $46,000 (Vinfastauto, n.d.) Moderate: VinFast has less consumption effectiveness than Ford but longer terms

of warranty for their users

Volkswagen ID.4: €46,335

(Electric Vehicle Database, 2023)

VinFast VF8 Eco: €48.990 (Evspecs, 2021)

Moderate: Volkswagen are more economical in terms of electricity usage and have more equipment, but VinFast EV cars have a much longer basic

- 2023 Sales ranked top 2,

lower than Tesla (Carlier, 2024)

VinFast: Limited awareness

in the USA

Lower

Volkswagen: Operates in more than 150 countries and has more than 100 car manufacturing facilities in 27 countries worldwide (Market.us, 2022) VinFast: Aims for its presence

in up to 50 global markets and countries by the end of 2024 (VinFast, 2023)

Lower

Obtainable market share

- More than 1.3 million

Vietnamese immigrants resided in the United States

Financial resources Ford: Net income $4.329B

in 2023 (Ford | News, 2024) VinFast: Net loss of $2.39B

in 2023 (VinFast, 2024a)

€6.24B in 2023 (Volkswagen Group, 2024)

VinFast: Net loss of $2.39B in

2023 (VinFast, 2024a) Weaker

Weights | from 1 to 5 - USA (**) | 88 66%

system

Charging time &

Table 7 - The U.S.’s Competitiveness Strength

Score on the scale from 1 Overall

i Weights to 5 - Germany (**) index for

†o market stations system