XÂY DỰNG KẾ HOẠCH MARKETING CHO SẢN PHẨM MỚI VINFAST

With the mission "To create a better life for the Vietnamese people", Vingroup has developed a diversified portfolio across several business segments: VISION With pioneering aspirations

UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING

-

CLASS: CLC_17DMA2

MARKETING PLAN FOR VINFAST LUX A2.0

Lecturers: MBA Ngo Minh Trang

Group: 2

HCMC – March 2019

UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING

-

CLASS: CLC_17DMA2

MARKETING PLAN FOR VINFAST LUX A2.0

Lecturers: MBA Ngo Minh Trang

Group: 2

HCMC – March 2019

Contents

1 Executive Summary 1

2 Situation Analysis 4

2.1 Market Summary 4

2.1.1 Market Demographics 5

2.1.2 Market Needs 5

2.1.3 Market Trends 6

2.1.4 Market Growth 7

2.2 SWOT Analysis 9

2.2.1 Strengths 9

2.2.2 Weaknesses 9

2.2.3 Opportunities 10

2.2.4 Threats 10

2.3 Competition 10

2.4 Product Offering 10

2.5 Keys to Success 11

2.6 Critical Issues 12

3 Marketing Strategy 13

3.1 Mission 13

3.2 Marketing Objectives 13

3.3 Financial Objectives 13

3.4 Target Market 13

3.5 Positioning 14

3.6 Strategies 15

3.7 Marketing Program 16

3.8 Marketing Research 18

4 Financials 18

4.1 Break-Even Analysis 18

4.2 Sales Forecast (Not Available) 19

4.3 Expense Forecast 19

5 Controls 20

5.1 Implementation 20

5.2 Marketing Organization 20

5.3 Contingency Planning 20

1 Executive Summary

Vingroup, formerly known as Technocom Corporation, was founded in 1993 in Ukraine From 1993-2000s, Technocom had successful trade in instant noodle, fast food In the early 2000s, Vingroup started in Vietnam with two key brands: Vincom and Vinpearl In January 2012, Vinpearl JSC merged with Vincom JSC to form Vingroup Joint Stock Company

With the mission "To create a better life for the Vietnamese people", Vingroup has developed a diversified portfolio across several business segments:

VISION

With pioneering aspirations and a long-term investment strategy, Vingroup positions itself as the property developer and retailer in Vietnam, with growing reputation and position on the global economic map and a portfolio of quality products and services

• Vingroup is fully prepared to execute its plans and spares no effort in meeting its commitments, even going beyond the expectations of customers and partners, particularly on those related to product quality – services and implementation progress

INTEGRITY

• Vingroup considers Integrity an important foundation of its business We comply fully with the law and maintain the highest level of professional and social ethics

• Vingroup adopts a customer-centered approach, in which the Group places the interests and wishes of the customers above its own Vingroup strives to provide its customers with the best products and services, and considers customer satisfaction as the measure of success

• Vingroup upholds a customer-service approach, and only takes on a task when the Group is confident of its execution capability

CREATIVITY

• Vingroup considers Creativity as the source of vitality and innovation in each

of its products and services Creativity enables the Group to deliver on its philosophy of “Dare To Think, Dare to Do” aimed at building an organization

eager to learn and to apply modern scientific and technical technologies into its production and management The Group always looks into improving its efficiency and enhancing the quality of its products and services

• Vingroup promotes the development philosophy of a "Learning enterprise" in which its employees are not afraid to learn, to self-study and to overcome their limits

SPEED

• Vingroup considers “Speed and efficiency in every activity” as our guiding principle and “Fast Decision – Fast Investment – Fast Deployment – Fast Sales – Fast change and Quick Adaptation” as our core value

• Vingroup believes that “Glory goes to those who meets deadline” Vingroup understands the importance of speed whilst upholding its commitment to quality

• Vingroup believes that: The Group must be like a healthy and well-shaped body without redundant fat We attract and retain the right person for each position, allowing each employee to grow in their role or face elimination if unsuited

HUMANITY

• Vingroup fosters close relationships with our customers, business partners, colleagues, investors and society with goodwill, compassion and a humane

spirit

• We value employees as our most important resource; we build a professional, dynamic, creative and compassionate work environment, and provide a superior compensation package and fair development opportunities to all

employees

• Vingroup fosters “Harmony” based on fairness, integrity and compassion The Group values teamwork, solidarity, discipline and loyalty, and demonstrates corporate social responsibility that harmonizes corporate goals with

community contributions

VINFAST

As a subsidiary of Vingroup, VinFast is the first large-scale automobile manufacturer in Vietnam and will be the first company to participate in the international auto exhibition The company is currently developing and manufacturing innovative cars of world-class level

As a Vietnamese enterprise with international vision, VinFast is cooperating with leading European design, engineering and component companies to create products that meet international standards and customer expectations

in terms of design, quality, ability, features in the car and driver experience

2 Situation Analysis

2.1 Market Summary

Vietnamese market has none local car brand before Vinfast which makes Vinfast being the first Vietnamese car brand and known by almost all the Vietnamese people Because of being controlled by Vingroup, a local company, Vinfast has good information about Vietnamese market such as the average income, policy and citizens demand Therefore Vinfast can launch their new products which are based these information

Target Markets: Low-cost

• Age: From 30 to 50 yrs

• Family size : Available to every family size

• Income: High Class (Over 50m/month)

• Psychographic: The vehicle of vinfast is suitable for the personal lifestyle of favoring luxurious, world-class cars but still bearing the pride of Vietnamese

brand with competitive starting price

Behaviorals:

Vinfast products are suitable for users who use car usually because its low cost and easy to maintain

Volume usage: suitable for people who use car regularly

Brand loyalty: loyalty customers of Vingroup are Vinfast potential

2.1.2 Market Needs

Quality

• Durable: use it in long-term

• Safety: Adaptive Cruise Control, Camera System, saved gasoline

• Comfortable: wide space, air-conditioner, odorous, radio,…

• Many features

Design

• Northern: Small size, luxurious, easy to move

• South: Big size

Customer Service

• Guarantee in long-term

• Organize many event about maintenance, repair

• Sales off in next time or customer’ friend

2.1.3 Market Trends

In 2018 there is a name not to be missed: VinFast, the car brand of VinGroup, will

be produced in Vietnam, competing in urban and mid-range car groups VinFast was born in late 2017, and in 10/2018 officially launched the world, when attending the Paris Motor Show 2018 took place in France The ambitious project with a long-term vision, VinFast's goal is to become the leading automobile manufacturer in Southeast Asia with a capacity of 500,000 cars / year and 1 million electric motorbikes by 2025 The automobile market is full of top names in the world such as BMW, Mercedes, Toyota, Ford Vingroup offers cars that are evaluated by experts as high-end, European technology but the price is "chestnut"

Electric motorbikes are advertised as designed for Vietnamese people and the special feature of "amphibious cars" is suitable for Vietnamese conditions, but the price of electric motorbikes is much more controversial Phones from 2.5 to 6.3 million in the first phase are also said to be quite pleasant

The above price is thanks to Vingroup applying a "3 no" price policy, including no depreciation, no financial costs and no interest but loss on the business side

VINFAST'S MARKET TREND IS FOLLOWING THE WORLD TREND

Communication method upholds the brand of VinFast

1 Build a high-profile international brand image

VinFast with the ambition of products of international stature, so when it started building a brand that chose Paris Motor Show - the most prestigious exhibition

2 Encourage national pride

The media that has hit the "national pride" has always been exploited by Vietnamese brands and the users have been very supportive National pride is also one of the great competitive advantages of VinFast when Vietnamese car company entered the race to compete with "big men" from the West

3 Coverage communication with expensive Influencers

Invited guests to the event launched VinFast: Miss Tran Tieu Vy, Queen Hoang Thuy and model Quang Dai partly caused attention for users Especially, the appearance of David Beckham with 15,837 discussions helped VinFast improve its brand

In the future, it is hoped that VinFast will have further strategies to enhance brand identity both in social media and in real life Being a brand can be strong enough to compete with foreign brands and really create a pride for Vietnamese people in the international arena

More than 200,000 vehicles are sold in Vietnam market in 2017 and the growth rate is about 25% / year in the past few years Most observers, at home and abroad, see Vietnam as a growing potential market However, the technology change will put VinFast ahead of many challenges, especially when VinFast engine is developed on the basis of BMW engines Many years of research show that Vietnamese customers

are reluctant to buy high-value products made in Vietnam, they are afraid of quality It's okay to buy Vietnamese food and drinks, or furniture But for things that are as complicated and expensive as cars, they may be shy, "said market researcher

VinFast's original plan is to focus on the domestic market With a forecast of GDP growth of about 6-7% per year, automobile sales are expected to increase strongly in the coming years Even the new production line of VinFast has enough capacity to meet domestic demand and its leaders are looking for export opportunities, mainly to Southeast Asian countries VinFast factory is being constructed at an amazingly fast speed Even when the rain is torrential, workers still work hard to keep the retail production of the first VinFast products: two small cars and one electric vehicle before the second quarter of 2019, which is not yet full 2 years since the project was started According to VinFast data, Vietnam's economy is growing very fast, but per capita income is only about 2,000 USD / year Consumers who are still struggling to save can buy motorbikes very popular in big cities like Hanoi and Ho Chi Minh City According to Ms Le Thi Thu Thuy - Chairman of VinFast, the income of people in urban areas is much higher than in rural areas With this significant difference, Ms Thuy said that VinFast's plan to produce and consume 250,000 cars is feasible

In fact, the calculation of 250,000 vehicles / year is equivalent to 38 cars / hour - a figure that is quite modest compared to the general standard of the world VinFast leader said when needed, the company can push capacity to 60 vehicles / hour, approaching the industry's practice

Thus, the value system that VinFast has created from its aspirations clearly does not stop at a specific car It is the value of the belief that Vietnamese enterprises are capable of being able to lead the production chain with the links of big names in the world It is also the value of the desire to contribute to promoting the development of domestic enterprises, thereby creating momentum for the rise of the country's economy

According to BMI Research, Vietnam and the Philippines will be the two growing automobile production markets in Southeast Asia from 2017 to 2021 Economic growth of both the Philippines and Vietnam is expected to exceed 6%, among the fastest growing countries in the world.

fastest-In the past four years, the average rate of urban consumers in ASEAN economies that intend to buy cars is 25% In Vietnam, the average proportion in 2016 and 2017

is over 15%, up from 11.9% in 2013 and the highest among five ASEAN countries including Philippines, Indonesia, Thailand, Malaysia and Vietnam

Official figures show that car sales in Vietnam increased sharply from 2013-2016, although it slowed down from the beginning of 2017 to the end of 2017 According

to FTCR, the reason for this slowdown is that Vietnamese consumers delay the decision to buy cars until 2018 to wait for the Government to cut import tax from other ASEAN countries from 30% currently to 0% FTCR forecast sales of cars in Vietnam will increase from 2018

2.2 SWOT Analysis

2.2.1 Strengths

• Awareness: Having an amount of awareness which comes from Vingroup

• Strong finance: make sure that the marketing mix strategies flow goes

2.2.3 Opportunities

• Metro: base on the new infrastructure, the traffic problems will be solved Therefore the demand of using car increase strongly

• Average income of the citizens increase ( 20%)

• The first Vietnamese Car: this is the advantage of Vinfast because we need no money in advertising for the first step of introducing new products

2.2.4 Threats

• Tax free for the asean imported cars => 2019, low-cost imported cars increase

• Metro: an alternative transportation which competes directly to traditional transportation

• Pollution: Vinfast new products have no environment solving solution

Vinfast Lux A2.0 is a complex car for a sophisticated audience From the like hood, classic cab rearward to large wheels and tires, the sense of harmony and balance is unrivaled

aircraft-DESIGN CHOSEN BY ITS PEOPLE

A car specifically designed and voted by Vietnamese users

MUSCULAR YET ELEGANT

A combination of muscular shape and taut forms give Lux A2.0 a very contemporary and timeless look

https://vietnambiz.vn/doanh-nghiep-ban-le-o-to-da-be more competitive 2017 witnessed a decline in automobile purchasing power due

to the expectation of reducing import tax from consumers of ASEAN Through 2018, the industry continues to face a shortage of supply due to strict requirements from Decree 116

According to the latest analysis report of Viet Rong Securities Joint Stock Company (VDSC), despite high demand, the total sales of the whole market in the first 10 months of 2018 are still equivalent to the same period last year

However, in the last months of 2018, most importers can meet government regulations on quality, technical safety and emission standards VDSC expects that the automotive retail industry in 2019 will get better but at the same time the market

is expected to be more competitive