MARKETING PLAN PROJECT

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING Class: CLC – 19DMA12 Class code: 2021702006012 FINAL EXAM ASSIGNMENT MARKETING PLAN PROJECT FOR THE AUTO-COOL HELMET COOLERS OF A

MINISTRY OF FINANCE

UNIVERSITY OF FINANCE - MARKETING

Class: CLC – 19DMA12 Class code: 2021702006012

FINAL EXAM ASSIGNMENT MARKETING PLAN PROJECT FOR THE

AUTO-COOL HELMET COOLERS OF ANDES HELMET BRAND MANUFACTURED BY LONG HUEI

MINISTRY OF FINANCE

UNIVERSITY OF FINANCE - MARKETING

Class: CLC – 19DMA12 Class code: 2021702006012

FINAL EXAM ASSIGNMENT MARKETING PLAN PROJECT FOR THE

AUTO-COOL HELMET COOLERS OF ANDES HELMET BRAND MANUFACTURED BY LONG HUEI

TABLE OF CONTENTS

LIST OF TABLES 3

LIST OF FIGURES 4

EXECUTIVE SUMMARY 5

INTRODUCTION 6

SWOT & MACRO-ENVIRONMENT ANALYSIS 7

1 THE ANDES’S STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS 7

1.1 OPPORTUNITIES 7

1.2 THREATS 7

1.3 STRENGTHS 7

1.4 WEAKNESS 8

2 ANALYZE THE CURRENT MARKET SITUATION FOR THE AUTO-COOL HELMET COOLERS 8

2.1 DEMOGRAPHIC ENVIRONMENT 8

2.2 ECONOMIC ENVIRONMENT 8

2.3 NATURAL ENVIRONMENT 9

2.4 TECHNOLOGICAL ENVIRONMENT 9

2.5 POLITICAL-LEGAL ENVIRONMENT 9

3 SWOT OF THE ANDES’S HELMET COOLERS 10

SEGMENTATION & POSITIONING STRATEGY 12

1 SEGMENTATION 12

1.1 GEOGRAPHIC SEGMENTATION 12

1.2 DEMOGRAPHIC SEGMENTATION 12

1.3 BEHAVIORAL SEGMENTATION 13

1.4 PSYCHOGRAPHIC SEGMENTATION 14

2 TARGETING 14

3 POSITIONING 15

3.1 SITUATION ANALYSIS: 15

MARKETING MIX STRATEGIES 16

1 PRODUCT STRATEGIES: 17

1.1 PRODUCT ATTRIBUTES 17

1.2 VALUE PROPOSITIONS: 17

1.3 BRANDING: 17

1.4 PACKAGING 18

1.5 LABELING 18

1.6 PRODUCT SUPPORT SERVICE 18

2 PRICING STRATEGIES: 19

3 PLACE STRATEGIES: 20

4 PROMOTION STRATEGIES: 20

4.1 IDENTIFY THE TARGET AUDIENCE: NOTE: TIMELINE CAMPAIGN, THE IMAGE OF INFLUENCERS 20

4.2 DETERMINE THE COMMUNICATIONS OBJECTIVES: 21

4.3 DESIGN THE COMMUNICATION: 21

4.4 SELECT THE COMMUNICATION CHANNELS 21

4.5 ESTABLISH THE TOTAL MARKETING COMMUNICATIONS BUDGET

21

ACTION PLAN 23

CONCLUSION 25

LIST OF REFERENCES & ORIGINALITY 26

APPENDIX 28

1 FINANCIAL PAPER 28

2 EXPENSE BUDGET FOR PROMOTION ACTIVITES OF THE FIRST YEAR 28 MEMBER’S GROUP WORK ASSESSMENT 30

PLAGIARISM CHECK 32

LIST OF TABLES

TABLE 1: SWOT OF THE ANDES’S HELMET COOLERS 11 TABLE 2: IDENTIFY THE PRICE OF THE ANDES’S HELMET COOLERS 19 TABLE 3: THE TABLE OF FINANCIAL PAPER OF ANDES’S HELMET COOLERS

IN 2022 28 TABLE 4: THE TABLE OF EXPENSE BUDGET FOR PROMOTION ACTIVITIES OF THE FIRST YEAR 28 TABLE 5: THE TABLE OF MEMBERS’ GROUP WORK ASSESSMENT 31

LIST OF FIGURES

FIGURE 1: THE HELMET COOLERS OF THE BLUARMOR BRAND 10 FIGURE 2: THE RANKING OF PER CAPITA INCOME IN 2020 13 FIGURE 3: POSITIONING MAP 15 FIGURE 4: BREAK-EVEN ANALYSIS FOR THE ANDES’S HELMET COOLERS 19 FIGURE 5: DISTRIBUTION CHANNEL OF ANDES’S HELMET COOLER

PRODUCTS 20 FIGURE 6: THE TIMELINE ACTION PLAN OF ANDES’S HELMET COOLERS IN

2022 23 FIGURE 7: THE TIMELINE ACTION PLAN OF ANDES’S HELMET COOLERS IN

2022 (NEXT) 24

EXECUTIVE SUMMARY

This marketing plan project about the auto-cool helmet coolers called Andes Coolers

of Andes brand illustrates detailed the plan to launch new products in the first year First, this plan includes the swot and macro-environment analysis, identification of the target market through the segmentation and from the target market, Andes Coolers can detail the positioning strategy Second, Andes Coolers design the marketing mix strategy based on the positioning to show the specific strategies for the auto-cool helmet coolers From all parts of the marketing mix strategy, the timeline will be mentioned in the action plan to identify the budget for the specific campaign

INTRODUCTION

In 1988 Long Huei Co., Ltd was founded in Taiwan, this company has professionally manufactured helmets for people moving on motorbikes Long Huei had the first brand of helmets named Zeus, which developed to meet the growth of demand for using motorbikes

in Taiwan (sundahelmets.com.vn, 2021) Until 2001, Long Huei Company had officially an opening ceremony in Vietnam with the factory located in Binh Duong province Long Huei has created and developed the Andes Helmet brand as soon as appeared in the Vietnam market (mubaohiemandes.vn, 2021) In the current years, Andes Helmet is a top brand about the guarantee of quality helmets for consumers

In 2007, Anh Toc Co., Ltd was chosen as the distributor of Andes Helmet in Vietnam with the desire that the consumers can approach the authentic helmet and help this brand can serve its customers by the best service quality After 10 years of the establishment of the Andes Helmet, the branches of showrooms were founded, and in 2019, there were 15 showrooms stores in all of the districts in Ho Chi Minh City and 1 store in Can Tho (mubaohiemandes.vn, 2021)

According to the Andes Helmet Brand, when it has just been founded, it declared the mission statement that:

- Develop sustainably with other companies which manufactured helmets in Vietnam to bring benefits to economic and social development

- Have more creativity and promote the advancement of technology to meet the demand of customers in the domestic and foreign markets

- To be the best choice for customers with the various discount programs and the policies of improving the staff's standard of living

- Stimulate the strategy of brand development, maintain the loyalty of old customers and raise the potential customers, expand the market with the slogan "For perfect happiness"

The Strategic objectives for the first year:

The Andes launch the new product called Andes Coolers about helmet coolers to develop the brand, enhance brand awareness Besides, Andes also wants to be the exclusive brand which the first manufacturer of helmet coolers in Vietnam Moreover, Andes Coolers desires to improve the quality of human life through the technology in the coolers

SWOT & MACRO-ENVIRONMENT ANALYSIS

1 THE ANDES’S STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS

1.1 Opportunities

O1: Multiple partner companion:

Andes is the number 1 helmet brand in Vietnam, its products are trusted by partners and customers Partners and customers are a great bridge to bring Andes helmet products to

every Vietnamese family Some Andes’s Strategic partnerships such as: CocaCola, Loteria, Unilever, Vespa, BIDV, Amway,…

O2: Political-legal environment:

According to a study, up to 89.9% of the total helmets surveyed did not meet quality standards, failing to protect users from the risk of traumatic brain injury in the unfortunate event of a traffic accident

Vietnamese law clearly regulates the quality of helmets Therefore, standard helmets are tested by the QCVN 2: 2008 standards that the Andes brand has built for a long time

As a result, the company's customers feel more secure in choosing Andes helmets, helping

to avoid penalties for fake, poor quality, and untested helmets being sold in the market

1.2 Threats

T1: Many competitors:

Currently, the whole country has over 80 helmet production facilities (down 20% compared to 2019) However, out of the total number of helmet manufacturers at present, the number of enterprises producing all components and assembling complete helmets by themselves does not exceed 10 (e.g Amoro, Protec, HSL, Honda, Royal, ), while the rest are other enterprises, especially Small establishments only produce helmet shells and buy other components to assemble helmets

T2: Percentage users of motorcycles decreased

The decrease in people's demand for buying motorbikes and the impact of the

Covid-19 pandemic in the first half of 2020, made motorbike consumption in Vietnam 2020 decrease by about 10.9% compared to 2019 according to the report Motorcycles Data

1.3 Strengths

In 2010, the branch of LONG HUEI Vietnam Co., Ltd was established with the factory located at Lot CN12 CN13 adjacent to N6 and D1 streets, Kim Huy Industrial Park, Thu Dau 1 City, Binh Duong – the head office is in Taiwan With more than 30 years of experience in manufacturing helmets for the international market, LONG HUEI Co., Ltd has always been the leader in Vietnam in the field of MBH manufacturing LONG HUEI with its strength in technology, modern equipment and human resources rich in intelligence, experience, skill level, high discipline has created products with quality, design, Various models, rich, meet the needs of domestic and foreign customers LONG HUEI factory in Vietnam uses advanced and automatic machines from Spain, Germany, Italy LONG HUEI

is the only company with a modern and international standard laboratory in Vietnam

1.4 Weakness

In 10 years of business and production of helmets, Andes has 12 showrooms in the central districts of Ho Chi Minh City The distribution system is only concentrated in Ho Chi Minh City, while niche markets in different provinces and cities which the population

is smaller than HCMC did not have access to genuine Andes products

AUTO-COOL HELMET COOLERS

2.1 Demographic environment

Three main cities include Ha Noi, Da Nang, Ho Chi Minh City are the most developed

in Vietnam The most crowded city is Ho Chi Minh City, which has more than 9 million people according to the General Statistics Office of Vietnam (gso.gov.vn, 2020) About the labor force, Ha Noi has the largest labor force, which occupied 67 percent in 2020 (gso.gov.vn, 2020), yet the rate of trained workers in this capital just got 48 percent in 2020 (Minh Ngọc, 2021) Ho Chi Minh City had the rate of trained workers reached 85 percent

in 2020 (Hoàng Cảnh, 2020) Nowadays, most of the three markets have a large amount of using motorbikes According to the Department of Transport, in 2019, the number of motorbikes in Ho Chi Minh city reached 8,12 million, this number increased 6,14 percent

in the same period in 2018 (tuoitre.vn, 2019)

2.2 Economic environment

2.2.1 Unemployment and labor supply

The number of unemployed people of working age in the first nine months of 2020 was nearly 1.2 million, an increase of 132.1 thousand people over the same period last year The unemployment rate of working age in 9 months of 2020 was 2.48%, 1.14 times higher than the same period last year

The youth unemployment rate in the nine months of 2020 was 7.07 percent, up 0.45 percentage points over the same period last year The youth unemployment rate in urban areas was 10.7%, up 0.09 percentage points over the same period last year

The underemployment rate of workers aged 9 months in 2020 was 2.69%, up 1.15 percentage points over the same period last year, of which underemployment in rural areas increased by 1.21 points percent

The number of unemployed people, the rate of unemployed young and The rate of underemployment increased in the comparison with those of last year which have been affected by the Covid-19 pandemic Those above factors would become Andes’s opportunities which will help recruit a large manufacturer in the first year

2.2.2 Labor costs

The average income of workers increased by 35% in 2020 In particular, the average income of workers in the fourth quarter of 2020 is 7.4 million VND per month, of which the salary is 5.22 million VND; overtime work 934,000 VND; bonus and diligence 2.1 million VND

As we have discussed above, although a hill number of unemployed workers was increasing due to the effects of the covid-19 pandemic, the average salary of them was still rising Therefore, Andes had better consider hiring well-trained labor to manufacture helmets

2.3 Natural environment.

Vietnam has a tropical monsoon humid climate, the weather is usually sunny, and the beverage temperature is above 21 Celsius As a consequence of global warming, Vietnam experienced the hottest heatwave ever in 2020, the highest temperature in northern Vietnam

is 40 Celsius, 39 Celsius in central, and 38 in southern Vietnam The heatwave affecting many parts of Vietnam is expected to continue

2.4 Technological environment.

A helmet cooler is not an air-conditioner, it’s a device using evaporative cooling technology, battery technology, and technology of electronic miniaturization It’s called a miniaturized evaporative air cooler

2.5 Political-legal environment

According to Traffic Safety Law, in 2007, people from 6 years old above must wear helmets on motorbikes when participating in traffic (Nguyễn Ngọc Tuấn, 2017) In accordance with 100/2019/NĐ-CP decree legislated the monetary fine of these behaviors

of joining in traffic is from 200.000 VND to 300.000 VND These behaviors include people riding motorbikes and people sitting on the motorbikes who do not wear helmets or wear the wrong, unsafe helmets (Thùy Liên, 2020)

Helmets that have CR stamps will allow manufacturing and business CR is a symbol issued by the Government If the products of the enterprises conform to the standards and certified for conformity, the products will be stamped by CR stamps CR stamps are like product certification features to ensure high-quality products for consumers and safety for riders According to the regulations, since 2018, any companies which have not had enough standards to manufacture helmets, these products have not received the technical regulation certification CR (Ngọc Hậu, 2008)

In response to the strictures of Decree No 87/2016 NĐ-CP dated July 1st, 2016, which stipulates that helmet business enterprises have suitable premises, suitable storage facilities, production equipment must be there are enough equipment for pressing the helmet shell,

pressing the shock-absorbing layer… These regulations have hindered the helmet business,

so the Government has issued Decree 154/2018 ND-CP in which abolishing Decree No 87/2016/ND-CP dated July 1st in 2016 of the government on regulations on enterprises trading in helmets (Phạm Công Thành, 2018)

This is a sample helmet cooler from BluArmor brand

Figure 1: The helmet coolers of the BluArmor brand

(Nguồn: bluarmor.com, 2021)

Table 1: SWOT of the Andes’s helmet coolers

O3: There are many suppliers

to provide materials for production

O4: 16 showrooms in Ho Chi Minh city

Threats T1: Reducing demand for backpacking during the covid-19 pandemic

T2: Potential competitors T3: New Product technology T4: The helmet coolers are launched due to the Covid-19 pandemic

S1, S2+T3: Using the promotion strategy about product quality through user manual

From the table of SWOT analyze, we have 4 strategies that will help the Andes company to conduct the marketing-mix strategies: the skimming pricing strategy, the promotion strategy about product quality, the support service and the place strategy

SEGMENTATION & POSITIONING STRATEGY

1.1 Geographic Segmentation

Vietnam has three regions that North, Central, South In these regions, the typical cities which have the socio-economic development rate are Ha Noi Capital, Da Nang City, and Ho Chi Minh City The helmet coolers of the Andes brand should segment the market into these cities to conduct research and develop the products

1.2 Demographic Segmentation

The number of hours of sunshine in a year in the north is about from 1500 to 1700 hours On the other hand, in the central and in the south the hours of sunshine per year is nearly from 2000 to 2600 hours (nangluongvietnam.vn, 2020)

1.2.1 Population and Climate

Ha Noi Capital: One of the most developed cities in Vietnam is Hanoi Capital, which has more than 8 million people in 2020, also is a crowded population in Vietnam The population density in Hanoi was approximately 2,4 thousand people per square kilometer

in 2019 The total population of the age from 20 to 34 was about 1,5 million people (gso.gov.vn, 2019) The climate in Hanoi includes 4 clear seasons in a year: Spring, Summer, Autumn, Winter In the summer, the weather is hot, the climate always on the hot temperature, besides the humidity usually in the high rate The average temperature in Hanoi is 29,2 degrees Celsius (hoangthanhthanglong.vn, 2017) and the highest temperature

in Hanoi reached 42 degrees Celsius in June 2020 (Mỹ Hà, 2020) Therefore, the summer

in Hanoi makes people feel uncomfortable, and like pressure for people who ride motorbikes on a long trip

Da Nang City: Another developed city in central Vietnam is Da Nang, which is an excellent economic development center in Vietnam, has more than 1,1 million people The population density in Da Nang was 888 people per square kilometer in 2019 The total population of the age from 20 to 34 was nearly 140 thousand people (gso.gov.vn, 2019) The climate in Da Nang feels comfortable due to wind from the sea, the highest average temperature in this city is just about 29 degrees Celsius (danang.gov.vn, 2020)

Ho Chi Minh City: According to the General Statistics Office of Vietnam: Ho Chi Minh’s population fluctuated more than 9 million people, this is the most crowded city in Vietnam (gso.gov.vn, 2019) The population density in this city was more than 4,3 thousand people per square kilometer in 2019 The total population of age from 20 to 34 was more than 2,186 million people (gso.gov.vn, 2019) The highest temperature in Ho Chi Minh City reached 40 degrees Celsius, but the downtown can get 45 degrees Celsius due to the phenomenon of concreting (Sơn Hòa, 2019)

1.2.2 Income

Figure 2: the ranking of per capita income in 2020

(Nguồn: cafef.vn, 2020)

According to the preliminary results of the 2020 Population Living Standards Survey

of the General Statistics Office, Ho Chi Minh City ranked second with 6,537 million VND/person/month Hanoi is in third place with 5,981 million VND/person/month Followed by Da Nang province with incomes over 5 million VND/person/month In general, the average income per person per month in Ho Chi Minh city is the highest in the

3 chosen segments (cafef.vn, 2020)

Ho Chi Minh City: According to the Department of Transport, in 2019, the number

of motorbikes in Ho Chi Minh city reached 8,12 million, this number increased 6,14 percent

in the same period in 2018, besides, Ho Chi Minh City has the largest number of motorbikes

in Vietnam (tuoitre.vn, 2019)

1.4 Psychographic segmentation

Psychographic segmentation of Helmet Cooler is only based on customers’ lifestyle Backpackers, they love traveling by motorbike or people who have hi tech lifestyle, they give attention to modern technology, or they use motorbike as their main vehicle or for their jobs like drivers

Our group has classified geographically the market in Vietnam into 3 areas as northern, central, and southern ones The representatives for each field are Hanoi, Da Nang city, Ho Chi Minh city respectively There are the most populous and economically developed cities in each part In addition The average income per person per month in these cities were in the top 10 of the hold countries and the number of people from 20 to 34 years old captured the majority as we have discussed in the segmentation In more details:

Ha Noi: The number of people in the ages from 20 to 34 were 1.5 million people, monthly income was over 5.981 million VND, and approximately 5 million motorbikes were used

Da Nang city: In the same ages, around 140.000 people with the salary of 5 million VND per month used about 920.000 motorbikes every month

Ho Chi Minh city: This is the city whose economy has the most vibrant growth in the nation This is proved by these data: the per capita income per month was 6.537 million VND, there were about 2.186 million people from 20 to 34 years old, and more importantly, the number of motorbikes used here was the highest with 8.12 million units

From the collected and analysed information, we decided Ho Chi Minh city is the target market and the young people studying and working there from 20 to 34 years old are the target customers This city is considered at the niche market segment that Andes are seeking The strength points of the coolers are:

S1: Exclusive technology in Viet Nam

S2: Improving the quality of the helmet

S3: the advance equipment cooling inside the helmet

According to the survey results from groups and fanpages on Facebook that have 10

to 20 posts about packaging desires, average 110.000 followers Clarify that the demand for helmet coolers is getting more and more substantial

3 POSITIONING

3.1 Situation analysis:

Customer analysis: Andes Cooler’s customers who are in the age from 20 to 34 years old and their main vehicle are motorbikes They have to wear helmets for many hours in hot weather Besides caring about safety in riding motorbikes, they also have the need of feeling comfortable while they are riding And they like modern technology products which can show their style, so they are willing to pay a suitable price to satisfy their need

Competitor analysis: Helmet Coolers of Andes' direct competitor is the BlueArmor brand with BluSnap2 product, an imported product from India, currently there are no similar products manufactured in Vietnam Strengths and weaknesses of direct opponents compared to Helmet Coolers of Andes:

- Imported from India

- Made in Vietnam, the price is higher than Helmet Cooler in Vietnam, BlueArmor does not have communication strategies to attract customers

- As a product imported from abroad, it takes longer to ship

→ Positioning map: based on two factors: price and value

Figure 3: Positioning map