What is communication ? How does a communication process happen? Design a communication strategy to launch a new product of VINFAST

CHAPTER 2: PRACTICAL CONTACT OF VINFAST . COMPANY 2.1. About the company VINFAST VinFasts full name is VinFast Manufacturing and Trading Company Limited (VinFast LLC). This is a Vietnamese car manufacturer established in 2017. The head office of this company is located in Hai Phong. The CEO of VinFast Manufacturing and Trading Co., Ltd. is Mr. James Benjamin DeLuca. This company is a member of VinGroup, founded by billionaire Pham Nhat Vuong. The car factory complex with an area of 335 hectares is located in Dinh Vu industrial zone, Cat Hai, Hai Phong. After just over 1 year of construction, the factory complex has been formed, most of the factories have been completed and are assembling production lines. The factory complex will include: operator, when producing electric motorcycles, ancillary industrial park, training center, RD research and development institute. The factory produces electric cars and motorbikes with a designed capacity of 38 vehicleshour. In phase 1, the factory will produce 250,000 cars a year and 500,000 electric motorbikes a year. At VinFast, there is a 50,000 m2 engine factory. This area is where the BMW N20 engine is manufactured, equipped on Lux A2.0 and Lux SA2.0. In addition, the 5 factory complex also has an auxiliary workshop and an auxiliary industrial park for its partners. Since its establishment until now, VinFast LLC first published the financial statements of the business. Accordingly, in terms of financial scale, in 2019 this brand owns VND 19,459 billion. By the end of 2019, VF had a total capital of over 90,873 billion VND.Through the report, it is possible to know the business profit of this brand after 2 years of product launch. Specifically, last year VinFast had a net loss of VND5,702 billion in aftertax profit, resulting in a negative profitafterequity (ROE) ratio of more than 29%. 2.2. Design communication strategy to launch new products for the company VINFAST company is about to launch a new product in early 2022: a new electric car called VINFAST FURE with many new features. Therefore, I set out a communication strategy to launch new products for the company, including 7 steps as follows: Step 1: Analyze the situation SWOT STRATEGY  Strengths : Vinfast has stable human resources: Former vice president James B.DeLuca of the largest US corporation in driving Vinfast. Previously, Vo Quang Hue held the position of deputy general director, overseeing the vinfast project with 40 years of experience in the auto industry. Ms. Le Thi Thu Thuy, former vice president and general director of VIC, used to be in charge. Vice President of Lehman Brothers Japan, Thailand and Singapore Financial resources: Vingroup itself is also a strong financial group, as a member of the group, Vinfast has great financial backing. Positive brand image: Vingoup has created a great buzz in tourism and real estate, so Vinfast also inherits many of that positive brand image and reputation. High degree of conformity – quality management : Investing in technology and with a vision to the future, Vin has more advantages when not having to bear the burden of the current system 6 Dense dealer network: Vinfast quickly acquired the entire dealer network of GM Vietnam right before the launch of new models (including 22 dealers, 1.5 times larger than BMW). There are many shopping centers to display new products  Weaknesses Vinfast is not yet a wellknown brand in the market: if customers want to find a luxury car that shows their status, Vinfast is not an option, due to many barriers in the age of the brand. and has not yet resonated in the industry The cost, warranty and maintenance services have not satisfied customers: although dealers are being spread, the source of components is being produced at affordable prices, but the popularity of components is weak compared to previous brands. The ability to market and PR for Vinfast products is not an advantage: Vins success comes more from thinking above the range, heat resistance, product and service quality surpassing those of other suppliers. domestic other than from their marketing ability  Opportunities Vinfast has the opportunity to create products suitable for the masses by inheriting and leveraging technology from partners: cooperating with strategic partners such as Italian car design companies or BMW Group With high support from Vietnamese users in the context of the strongest increase in domestic consumption in Southeast Asia: vinfast is the first company to turn the ambition of Vietnamese automobile production into reality, with a young population and stable income. Definitely, the need to own a car at an affordable price is extremely high There is great potential when meeting the mentality of Vietnamese people who want to own a car as soon as the infrastructure is increasingly improved: urbanization trends and peoples living standards improve, creating The demand, the tendency to want to own a car is high  Threats The automobile manufacturing industry is an extremely complicated industry: Companies with many years of age still have technical errors and have to 7 recall cars regularly, will a 2yearold immature company like vinfast bear the responsibility? hot and do well or not – this is the question that remains unanswered The supporting industry in Vietnam is still in its infancy: the localization rate is only 710% while the target set since 2010 is 60%. Extremely fierce competition: In Vietnam, cars are not only a vehicle but also a valuable asset in the family, while the price keeping and durability of vinfast cars have not been tested much, as well as the age. Being quite young makes it difficult to compete with the big boys in the industry PEST MODEL  Political Factors Realizing the importance of the auto industry, the government has announced many policies to facilitate and support Vietnamese businesses to participate in this field. As the first Vietnamese car brand, Vinfast also receives a lot of favor from the government  Economic Factors Economic factors play a leading role and affect Vinfasts business activities. Economic growth, inflation, average income, etc. have a great influence on purchasing power and consumer structure Especially during the complicated development of covid 19, the escalating economic situation in the country and the world also significantly affected domestic businesses, including Vinfast.  Social Factors Society has many different forms and colors, creating different standard views. These standard views have a profound influence on corporate governance of the company The progress of construction of public transport works in Vietnam is still quite slow, the shortage has a significant impact on the daily circulation, thus directly affecting Vinfasts car consumption. 8  Technological Factors The 4.0 technology revolution has a very important role for the automobile manufacturing industry in particular and other fields in general. Vinffast has applied high technologies, received the elite of world intellectuals into its vehicle production system. Applying many modern electronic and computing technologies in operation, production and consumption of products. Products Step 2: Define communication goals  Set goals for your communication strategy: Shortterm goal: will reach 1,000,000 people after launching the first 5 hour advertising strategy Longterm goal: improve the position of the product in the market, reach 1 million USD in revenue after 3 months of selling products, exporting to foreign markets Outcome goal: Sell all the products produced in the first batch, gain many benefits in many aspects, gain consumer confidence in the product as well as the company Process objective : Access to fastidious markets through the results of consumption in the domestic market and the results of analysis of the world market Communicating products in all aspects: word of mouth, magazines, television, etc. Build target towers for better performance: o Level 1: Raise awareness Learn deeply about the companys newly launched product electric car VINFAST FURE Promote the search, learn about product promotion of the employees in the company, through training strategies Improve knowledge about product promotion as well as communication and marketing o Level 2: Change of attitude Cultivate the attitude of each employee in the company in all aspects: patience, smile, hard work, progress, ... creating satisfaction in service for each customer. Eliminate stereotypes about customer discrimination 9 o Level 3: Change behavior Each employees behavior in the process of promoting and selling products affects sales, so there must be strict training. Always act according to the organization, have a plan in place  Step 3: Identify the target audience Learn about market segments, customer segments, search for potential customers Coordinate with mass media, journalists and reporters in promoting products Create a positive public opinion, build a prestigious image of vinfast  Step 4: Define the content of the message Prepare a script for promotional communication so that you can practice Define a clear message: “Towards the future” – an image that illustrates the new product, the message of the product Voice: The tone and tone of the voice must convey all the content and messages about the product Time: Choose the golden time of the day to promote the product most effectively Repetition: Always repeat the message through TV advertising channels, internet, posters, ..... increase consumer awareness.  Step 5: Design strategy and tactics Purpose : o Establish business as market leader for new electric vehicle product in public perception. o Reach out to the international market. Objective: Inform customers about the features of electric cars, incentives during promotional events, accompanying customer care services (such as giving discount vouchers, warranty). free car maintenance within 12 months,...)

ACADEMY OF FINANCE INTERNATIONAL TRAINING

PROGRAM

BANKING - INSURANCE

FINAL EXAM Subject: Communication Class: K104

Exam code : 01 Duration: 24h

Open book

Question 1: What is communication? How does the communication take place?

Design a communication strategy to launch a new product of Company X

Company X of your choice

First and last name : Dang Thi Tra My

Key/Grade: K104

STT: 05

Test day: 7/9/2021

Student code: 1873403013006 Yearly: K10

Exam room ID: 103 Exam time: 24h

TEST: COMMUNICATION COMMUNICATIONS

Exam format: Large assignment/essay

Exam paper code: 01 Exam time: 14pm

PREAMBLE

Today, with the outstanding development of science and technology, as well as the development of the international integration economy, we have learned a lot of experience and absorbed many new knowledge and technologies, especially is in the auto industry Since then, the development of businesses is increasing, the demand for product promotion is increasing

On the path of integration and development, enterprises, besides acquiring a lot of experience in the business field, in order to survive and develop, have a strong position in the market, must also accept a competition not only in price, quality but also in brand competition.The building of a strong brand, position and trust in the hearts of customers is huge Since then, building a new product promotion strategy

is not simply an increase in product sales but also an important strategy in building

a brand

To learn more about how to promote an effective product, I chose this topic as my research topic In order to find effective methods of product promotion, as well as ways to improve brand, I have chosen Vinfast as an experimental company for this essay

CONTENT

CHAPTER 1: THEORETICAL BASIS OF COMMUNICATION

1.1 What is communication?

Communication is a process of exchanging information between a speaker and a listener in order to achieve a certain purpose Typically, communication goes

through three states:

 Information exchange, psychological contact;

 Mutual understanding;

 Interact and influence each other

When communicating a message, you need to know why you are communicating, and what you want to communicate about or about You also need to be confident that the information you are saying is useful and accurate

It is an effective and important communication process in your life that you need to follow The message is the information that you want to convey

This is the process of converting the information to be communicated into a form, which can be presented orally or in writing, which can be successfully decoded by the receiver Your success in coding depends on your ability to communicate

clearly and simply, and eliminate potential distractions such as: cultural issues, misinformation, false assumption

Equally important is understanding your audience: Failure to understand who you want to communicate with will lead to confusion in the delivery of the message

Messages are transmitted mainly through 02 channels: face-to-face including

telephone, face-to-face, video chat and written channels such as emails, letters, memos and reports

Different channels will have different strengths and weaknesses For example, you should not be verbal when giving a series of lengthy examples while using a

written letter or responding to a negative opinion

Encryption or decryption both require communication skills in life (including skills such as: listening attentively or reading messages carefully), but confusion in the encoding process will create many errors in the decoding process code This is an effective communication process in life

When a message is delivered to the recipient, you visualize how that person will react or act upon receiving your message However, it should be remembered that each individual involved in the communication process will interpret those

messages and feelings with different attitudes And if you want to be successful, you need to consider those factors to convey your message and act in the most appropriate way

When receiving a communication message, surely the listener will respond in some way And you need to pay special attention to those responses because that will be the only evidence that tells you that the recipient understands your message or not In case you find out that the person has misunderstood your message, you will

at least have a chance to re-send the message a second time

CHAPTER 2: PRACTICAL CONTACT OF VINFAST COMPANY

2.1 About the company VINFAST

VinFast's full name is VinFast Manufacturing and Trading Company Limited (VinFast LLC) This is a Vietnamese car manufacturer established in 2017 The head office of this company is located in Hai Phong The CEO of VinFast

Manufacturing and Trading Co., Ltd is Mr James Benjamin DeLuca This

company is a member of VinGroup, founded by billionaire Pham Nhat Vuong The car factory complex with an area of 335 hectares is located in Dinh Vu

industrial zone, Cat Hai, Hai Phong After just over 1 year of construction, the factory complex has been formed, most of the factories have been completed and are assembling production lines

The factory complex will include: operator, when producing electric motorcycles, ancillary industrial park, training center, R&D research and development

institute The factory produces electric cars and motorbikes with a designed

capacity of 38 vehicles/hour In phase 1, the factory will produce 250,000 cars a year and 500,000 electric motorbikes a year

At VinFast, there is a 50,000 m2 engine factory This area is where the BMW N20 engine is manufactured, equipped on Lux A2.0 and Lux SA2.0 In addition, the

factory complex also has an auxiliary workshop and an auxiliary industrial park for its partners

Since its establishment until now, VinFast LLC first published the financial

statements of the business Accordingly, in terms of financial scale, in 2019 this brand owns VND 19,459 billion By the end of 2019, VF had a total capital of over 90,873 billion VND.Through the report, it is possible to know the business profit

of this brand after 2 years of product launch Specifically, last year VinFast had a net loss of VND5,702 billion in after-tax profit, resulting in a negative profit-after-equity (ROE) ratio of more than 29%

2.2 Design communication strategy to launch new products for the company

VINFAST company is about to launch a new product in early 2022: a new electric car called VINFAST FURE with many new features

Therefore, I set out a communication strategy to launch new products for the

company, including 7 steps as follows:

Step 1: Analyze the situation

SWOT STRATEGY

- Vinfast has stable human resources: Former vice president James B.DeLuca of the largest US corporation in driving Vinfast Previously, Vo Quang Hue held the position of deputy general director, overseeing the vinfast project with 40 years of experience in the auto industry Ms Le Thi Thu Thuy, former vice president and general director of VIC, used to be in charge Vice President of Lehman Brothers Japan, Thailand and Singapore

- Financial resources: Vingroup itself is also a strong financial group, as a

member of the group, Vinfast has great financial backing

- Positive brand image: Vingoup has created a great buzz in tourism and real estate, so Vinfast also inherits many of that positive brand image and

reputation

- High degree of conformity – quality management : Investing in technology and with a vision to the future, Vin has more advantages when not having to bear the burden of the current system

- Dense dealer network: Vinfast quickly acquired the entire dealer network of

GM Vietnam right before the launch of new models (including 22 dealers, 1.5 times larger than BMW) There are many shopping centers to display new products

- Vinfast is not yet a well-known brand in the market: if customers want to find

a luxury car that shows their status, Vinfast is not an option, due to many barriers in the age of the brand and has not yet resonated in the industry

- The cost, warranty and maintenance services have not satisfied customers: although dealers are being spread, the source of components is being produced

at affordable prices, but the popularity of components is weak compared to previous brands

- The ability to market and PR for Vinfast products is not an advantage: Vin's success comes more from thinking above the range, heat resistance, product and service quality surpassing those of other suppliers domestic other than from their marketing ability

- Vinfast has the opportunity to create products suitable for the masses by

inheriting and leveraging technology from partners: cooperating with strategic partners such as Italian car design companies or BMW Group

- With high support from Vietnamese users in the context of the strongest

increase in domestic consumption in Southeast Asia: vinfast is the first

company to turn the ambition of Vietnamese automobile production into

reality, with a young population and stable income Definitely, the need to own a car at an affordable price is extremely high

- There is great potential when meeting the mentality of Vietnamese people who want to own a car as soon as the infrastructure is increasingly improved:

urbanization trends and people's living standards improve, creating The

demand, the tendency to want to own a car is high

- The automobile manufacturing industry is an extremely complicated industry: Companies with many years of age still have technical errors and have to

recall cars regularly, will a 2-year-old immature company like vinfast bear the responsibility? hot and do well or not – this is the question that remains

unanswered

- The supporting industry in Vietnam is still in its infancy: the localization rate

is only 7-10% while the target set since 2010 is 60%

- Extremely fierce competition: In Vietnam, cars are not only a vehicle but also

a valuable asset in the family, while the price keeping and durability of vinfast cars have not been tested much, as well as the age Being quite young makes it difficult to compete with the big boys in the industry

PEST MODEL

- Realizing the importance of the auto industry, the government has announced many policies to facilitate and support Vietnamese businesses to participate in this field

- As the first Vietnamese car brand, Vinfast also receives a lot of favor from the government

- Economic factors play a leading role and affect Vinfast's business

activities Economic growth, inflation, average income, etc have a great influence

on purchasing power and consumer structure

- Especially during the complicated development of covid 19, the escalating

economic situation in the country and the world also significantly affected

domestic businesses, including Vinfast

- Society has many different forms and colors, creating different standard

views These standard views have a profound influence on corporate governance of the company

- The progress of construction of public transport works in Vietnam is still quite slow, the shortage has a significant impact on the daily circulation, thus directly affecting Vinfast's car consumption

 Technological Factors

- The 4.0 technology revolution has a very important role for the automobile

manufacturing industry in particular and other fields in general

- Vinffast has applied high technologies, received the elite of world intellectuals into its vehicle production system Applying many modern electronic and computing technologies in operation, production and consumption of products Products

Step 2: Define communication goals

- Short-term goal: will reach 1,000,000 people after launching the first 5 hour

advertising strategy

- Long-term goal: improve the position of the product in the market, reach 1 million USD in revenue after 3 months of selling products, exporting to foreign markets

- Outcome goal: Sell all the products produced in the first batch, gain many benefits

in many aspects, gain consumer confidence in the product as well as the company

- Process objective : Access to fastidious markets through the results of consumption

in the domestic market and the results of analysis of the world market

- Communicating products in all aspects: word of mouth, magazines, television, etc

- Build target towers for better performance:

- Learn deeply about the company's newly launched product - electric car VINFAST FURE

- Promote the search, learn about product promotion of the employees in the

company, through training strategies

- Improve knowledge about product promotion as well as communication and

marketing

- Cultivate the attitude of each employee in the company in all aspects: patience, smile, hard work, progress, creating satisfaction in service for each customer

- Eliminate stereotypes about customer discrimination

o Level 3: Change behavior

- Each employee's behavior in the process of promoting and selling products affects sales, so there must be strict training

- Always act according to the organization, have a plan in place

- Learn about market segments, customer segments, search for potential customers

- Coordinate with mass media, journalists and reporters in promoting products

- Create a positive public opinion, build a prestigious image of vinfast

- Prepare a script for promotional communication so that you can practice

- Define a clear message: “Towards the future” – an image that illustrates the new product, the message of the product

- Voice: The tone and tone of the voice must convey all the content and messages about the product

- Time: Choose the golden time of the day to promote the product most effectively

- Repetition: Always repeat the message through TV advertising channels, internet, posters, increase consumer awareness

- Purpose :

o Establish business as market leader for new electric vehicle product in public perception

o Reach out to the international market

- Objective:

Inform customers about the features of electric cars, incentives during promotional events, accompanying customer care services (such as giving discount vouchers, warranty) free car maintenance within 12 months, )

- Strategy :

o Launch a product promotion campaign

o Organizing scientific forums, information associated with new

products and company image vinfast

- Tactic :

o Press conference, interview, advertisement

o Research reports, documents, information exchange forums,

incentives,

- Divide the product promotion strategy into 3 phases:

o Phase 1: Market exploration through the release of signals

o Stage 2: Implement product promotion program

o Stage 3: Continuous communication and promotion, making the most of customers

- Allocate human resources to each stage of product promotion in accordance with the scale, location and requirements of the program

- Operating costs: Pay attention to efficiency and use the most economical and reasonable costs, avoiding unnecessary waste

- Using auxiliary equipment for product promotion must be appropriate and highly effective

- Focus on promoting products on electronic advertising channels

- Create electronic survey and hand survey to be able to survey in many aspects about customer satisfaction about products as well as promotional campaigns

of vinfast company

- Create channels, customer feedback forms for the new electric car line of vinfast

- Synthesize and statistical data during and after the end of the product

promotion campaign to find out the weaknesses and take remedial measures,

in order to create the best preparation for the product as well as the strategies future product promotion