final marketing final marketing, Schemes and Mind Maps of Marketing

Download final marketing final marketing and more Schemes and Mind Maps Marketing in PDF only on Docsity! INTERNATIONAL SCHOOL - VIETNAM NATIONAL UNIVERSITY PRINCIPLE OF MARKETING --------------------------------------------- CLASS: INS2003 3 MARKETING PLAN FOR VINFAST LUX A2.0 Group: 5 HNC – April 2021 Contents 1. Executive Summary ............................................................................................. 1 2. Situation Analysis ................................................................................................ 4 2.1. Market Summary ........................................................................................... 4 2.2. Macro Environment ....................................................................................... 4 2.2.1. Demographics ......................................................................................... 5 2.2.2. Economics ............................................................................................... 5 2.2.3. Natural .................................................................................................... 6 2.2.4. Technology Environment ....................................................................... 7 2.2.5. Political Environment ............................................................................. 9 2.2.6. Cultural Environment ............................................................................. 9 2.3. Competition ................................................................................................. 11 2.3.1. Market Needs ........................................................................................ 11 2.4. SWOT Analysis ........................................................................................... 15 2.4.1. Strengths ............................................................................................... 15 2.4.2. Weaknesses ........................................................................................... 15 2.4.3. Opportunities ........................................................................................ 16 2.4.4. Threats .................................................................................................. 16 2.5. Product Offering .......................................................................................... 16 2.5.1. Keys to success ..................................................................................... 17 2.6. Critical Issues .............................................................................................. 18 3. Marketing Strategy ............................................................................................ 19 3.1. Market Demographics ................................................................................. 19 MISSION To create a better life for the Vietnamese people. CORE VALUES "CREDIBILITY - INTEGRITY - CREATIVITY - SPEED – QUALITY – HUMANITY” CREDIBILITY  Building Vingroup's Credibility is a top priority for the company. The Group considers Credibility to be a competitive advantage, and it guards it with the same zeal as one would guard one's honor.  Vingroup is completely prepared to carry out its plans and makes every effort to satisfy its obligations, even going above and beyond what customers and partners anticipate, notably in terms of product quality, services, and implementation progress. INTEGRITY  Integrity is a key component of Vingroup's business strategy. We follow the law to the letter and uphold the highest standards of professional and social ethics.  Vingroup has a customer-centric strategy, prioritizing the interests and desires of its consumers before its own. Vingroup endeavors to give the greatest products and services to its consumers, and success is measured by customer happiness.  Vingroup adheres to a customer-service philosophy, taking on projects only when it is sure in its capacity to complete them. CREATIVITY  In each of Vingroup's goods and services, creativity is seen as a source of energy and innovation. Creativity enables the Group to carry out its idea of "Dare to Think, Dare to Do," which aims to create a learning organization that incorporates new scientific and technical advances into its manufacturing and administration. The Group is constantly working to increase its efficiency and improve the quality of its products and services.  Vingroup encourages a "Learning enterprise" development attitude in which employees are not afraid to learn, self-study, and push above their limits. SPEED  Their guiding idea is "Speed and efficiency in all activities," and their fundamental value is "Fast Decision – Fast Investment – Fast Deployment – Fast Sales – Fast Change and Quick Adaptation."  According to Vingroup, "glory belongs to those who meet deadlines." Vingroup recognizes the need of speed while maintaining a high level of quality. QUALITY  Vingroup's mission is to bring together the greatest people to deliver the finest products and services while also contributing to the development of a better society.  Vingroup aspires to build a human capital force that is competent and efficient, with strong ethics and knowledge, and where each member is an expert in his specialty.  Vingroup believes that the Group should resemble a healthy, well-shaped body free of excess fat. We hire and keep the best people for each job, allowing each employee to advance in their position or risk being fired if they aren't. HUMANITY  With kindness, compassion, and a humanistic attitude, Vingroup cultivates deep ties with our customers, business partners, colleagues, investors, and society.  We consider our employees to be our most valuable resource, so we create a professional, dynamic, creative, and caring work atmosphere for them, as well as a competitive compensation package and equal development possibilities for all.  Vingroup promotes "Harmony" via honesty, integrity, and compassion. Teamwork, solidarity, discipline, and loyalty are valued by the Group, and it practices corporate social responsibility by balancing company aims with community contributions. VINFAST - VinFast, a subsidiary of Vingroup, is Vietnam's first large-scale automotive manufacturer and will be the country's first to compete at an international car show. The company is currently designing and producing world-class innovative automobiles. - VinFast, as a Vietnamese company with a global vision, collaborates with leading European design, engineering, and component firms to develop products that match international standards and customer expectations in terms of design, quality, capability, automobile features, and driver experience. 2. Situation Analysis 2.1. Market Summary Before Vinfast, there was no local car brand in the Vietnamese market, making Vinfast the first and most well-known Vietnamese automobile brand. Vinfast has good information about the Vietnamese market, such as the average income, policy, and citizen demand, because it is operated by Vingroup, a local corporation. As a result, Vinfast will be able to launch new goods based on this knowledge. 2.2. MACRO ENVIRONMENT 2.2.1. Demographic Here are some results of the demographic survey 2020 Overview of VinFast Lux A2.0 VinFast Lux A2.0 is a 4-door sedan manufactured by VinFast of Vingroup, Lux A2.0 is developed based on the system of the 6th generation BMW 5 Series (2010-2016). This is Vinfast's first sedan, along with the Vinfast Lux Sa2.0 Suv that was first introduced at the Paris Motor Show 2018. Not only that, this is not an official commercial vehicle, but this model has more or less created a pervasive media effect with the positive feedback of millions of Vietnamese hearts about the pride of the car. The first was produced by Vietnamese people. Vinfast Lux A2.0 car exterior Lux A2.0 is considered as one of the cars with luxurious design lines from the experienced engineers of Pininfarina Company. The image of the letter "V" a symbol of Vinfast placed in the middle of the grille is complemented by 2 "V" LED strips on both sides connected to the front turn signals. In terms of dimensions, VinFast LUX A2.0 has a length x width x height of 4,973 x 1,900 x 1500 mm and a wheelbase of 2,968 mm. Ground clearance 150mm. Lazang design makes a lot of impression with images that are associated with the 5 ways of flowers or the image of a star to create an eye-catching look with meticulous and meticulous lines. Overall, the Vinfast Lux A2.0 car is luxuriously designed with a luxurious exterior from the famous Italian design firm Pininfarina. Vinfast Lux A2.0 is also the pride of Vietnamese- branded cars. Vinfast Lux A2.0 car interior The cockpit is designed with a high-class dashboard made of carbon plastic, metal cladding details and a high-quality leather interior. The driver's seat and the passenger seat are 12- way electric on the Premium version, 4-way electric and 2-way mechanical with 2 Standard and Plus versions. The interior used orange tones as the main color with a 7-inch color screen in the middle. More than half, with the following utilities: • 10.4-inch touch screen • Location function, map • Radio, AM/FM • Wifi connection, 4 USB ports, Bluetooth • Wireless phone charger • Sound system with 8 speakers or 13 speakers with amplifier • 12V power socket, 230V. AC outlet • Smart key and push-button start Engine, operating car Vinfast Lux A 2.0 Vinfast Lux A2.0 uses a copyrighted engine from BMW. On the two Lux A2.0 Standard and Plus versions, the 2.0L turbocharged petrol engine, direct fuel injection, delivers a maximum capacity of 174Hp/4500- 6000rpm, maximum torque of 300Nm/1750- 4000rpm. Operation and safety technologies such as Cruise Control, tire pressure sensor, electronic handbrake, Auto Hold, support for downhill departure, lane departure warning, etc. are all very smart technologies. used on modern luxury car models. Safety assessment of Vinfast Lux A2.0 The safety system of the announced VinFast Lux A2.0 has many modern features equipped such as: • 6 airbags • Reversing camera or 360. Camera • 7-inch color driver information display • Quick Tire Repair Kit • Emergency belt tension system, force limiter, front seats • ISOFIX child seat fixing hook (2nd row, outer seat) • Electronic balance (ESC) • Blind spot warning • Front and rear parking sensors • Hill Start Assist (HSA) • Anti-lock brakes (ABS) • Electronic/automatic handbrake, emergency brake assists (BA) • Electronic brake force distribution (EBD) • Blind spot warning •Assist to begin across the hill • Collision warning • Anti-slip function (TCS) • Downhill assist (HDC) function • Anti-roll function (ROM) • Automatic door lock function when the vehicle is moving and when leaving the vehicle • The security of VinFast Lux A2.0 is also enhanced with an anti-theft alarm system and encryption key. 2.2.5. Political environment The legal system affecting businesses is increasing: Antitrust law, intellectual property rights, patents ... will create opportunities for healthy competition among companies in the industry. . With the current development of consumer protection groups will be a threat to companies as this will increase the position of consumers, forcing companies to take more responsibility for safety. products, advertising honestly and with culture ... political stability is a prerequisite for economic development . When formulating a business strategy, it is necessary to consider political factors that are the ruling party's views, goals and social development orientation. The degree of socio-political stability is reflected in the people's reaction to the perfection of the legal system, the effectiveness of law enforcement in social life 2.2.6. Cultural environment Communication on all fronts Vingroup has "blocked" users on all media forums. Vinfast's marketing strategy is to hit the media on social networks, where Vietnamese users are mostly using. The company has understood the psychology of Vietnamese people too well and so it is understandable that Social Media and word of mouth communication are the two methods targeted by the company. The amount of Seeding on social networks is very positive when receiving up to 90% of the positive feedback. Moreover, when asked about Vinfast, up to 80% of respondents know and look forward to its launch in the domestic market. Vinfast's marketing strategy is to understand the media, understand consumer psychology and know how to apply and take advantage of many strong media sources to increase their reputation. The debut at the Paris Motor Show was one of them. VinFast does not put too much emphasis on launching this model to the market, they have had 10 years in research and development of their model. VinGroup already has a large enough customer database in many fields, so that they can sell all products to these customers and be sure to sell well. They sold travel services, sold houses, apartments, sold Customer Service  Long-term assurance.  Organize a variety of maintenance and repair events.  Discounts in the future or for a customer's acquaintance\ Market Trends VinFast, the automotive brand of VinGroup, will be produced in Vietnam in 2018 and will compete in the urban and mid-range automotive segments. VinFast was founded in late 2017 and officially introduced in the globe in October 2018 at the Paris Motor Show in France. VinFast's long-term ambition is to become Southeast Asia's premier automobile manufacturer by 2025, with a production capacity of 500,000 automobiles per year and 1 million electric motorcycles. The vehicle market is brimming with world-famous brands like BMW, Mercedes, Toyota, and Ford... Experts describe Vingroup's cars as "high-end, European technology," but the price is "chestnut." The distinctive feature of "amphibious automobiles" is ideal for Vietnamese settings, but the price of electric motorbikes is considerably more contentious. In the first phase, phones ranging from 2.5 to 6.3 million were deemed to be quite nice. The aforesaid price is due to Vingroup's "3 no" pricing policy, which includes no depreciation, financial costs, or interest, but a commercial loss. THE MARKET TREND Of VINFAST IS FOLLOWING THE WORLD TREND. VinFast's brand is upheld via this communication approach. 1. Develop a well-known international brand image With the goal of producing products of international renown, VinFast picked the Paris Motor Show, the most famous exhibition, to launch its brand.. 2. Promote a sense of national pride Vietnamese firms have always used the media that has attacked "national pride," and users have been very receptive. When the Vietnamese auto business VinFast entered the battle to compete with "big guys" from the West, national pride was also one of its greatest competitive advantages. 3. Communication with high-priced influencers for coverage Miss Tran Tieu Vy, Queen Hoang Thuy, and model Quang Dai were among the invited guests at the ceremony that debuted VinFast. The appearance of David Beckham, which drew 15,837 comments, was very beneficial to VinFast's brand. VinFast is expected to have more initiatives in the future to improve brand identification in both social media and real life. Being a brand may be powerful enough to compete with multinational brands and give Vietnamese people a sense of pride in the worldwide arena Market Growth VinFast is the "offspring" of billionaire businessman Pham Nhat Vuong, who developed a Vingroup with an estimated worth of $10 billion USD from a 40,000 USD loan many years ago. Vingroup operates in several industries like manufacturing, trade centers, complex housing, resort, education, health, and so on. At the Paris Motor Show in October 2018, VinFast unveiled the first two versions of its new automobiles to the globe. This will be the new automaker's first significant obstacle. Vietnamese customers will be able to purchase a VinFast vehicle within a year. In 2017, more than 200,000 automobiles were sold in Vietnam, with a growth rate of roughly 25% per year over the previous several years. Vietnam is seen as a developing prospective market by most experts both at home and abroad. However, the advancement in technology will put VinFast ahead of many obstacles, especially because the VinFast engine is based on BMW engines. Years of study have shown that Vietnamese clients are loyal. They are hesitant to purchase high-value items created in Vietnam because they are concerned about quality. It is acceptable to purchase Vietnamese cuisine and beverages, as well as furnishings. "However, when it comes to something as difficult and expensive as autos, they may be hesitant," said a market researcher. VinFast's first strategy was to concentrate on the home market. Automobile sales are predicted to rise sharply in the next years, with GDP growth predicted to be about 6-7 percent a year. Even though VinFast's new manufacturing line has adequate capacity to fulfill domestic demand, the company's management are seeking for export potential, namely in Southeast Asia. The VinFast facility is being built at a breakneck pace. Even when it's pouring outside, workers toil away to keep the first VinFast products on the road: two small cars and one electric vehicle, before the second quarter of 2019, which is still a long way off. It's been two years since the project began. Vietnam's economy is growing rapidly, according to VinFast data, but per capita income is only around 2,000 USD per year. Motorbikes, which are very popular in big cities like Hanoi and Ho Chi Minh City, are a good option for consumers who are still trying to save. The income of people in urban areas is much higher than in rural areas, according to Ms. Le Thi Thu Thuy, Chairman of VinFast. Ms. Thuy believes that VinFast's ambition to create and consume 250,000 automobiles is achievable given this considerable disparity. In reality, 250,000 automobiles per year equates to 38 automobiles every hour, which is a rather low amount by global standards. According to VinFast's CEO, the company can increase capacity to 60 vehicles per hour when needed, which is in line with industry standards. As a result, the value system that VinFast has developed from its objectives does not appear to be limited to a single vehicle. It is the worth of believing that Vietnamese businesses are capable of leading the global production chain with the help of large names in the industry. It is also the worth of wishing to contribute to the development of domestic businesses, thereby generating momentum for the country's economic growth. 2.5.1. Keys to Success VDSC anticipates the automobile retail business to improve in 2019, although the market will become more competitive, according to Vietnambiz (https://vietnambiz.vn/doanh-nghiep-ban-le-o-to-da-tang-truong-se-tro-lai-trong- 2019-115720.htm). The anticipation of lower import taxes from ASEAN customers resulted in a drop in automotive purchasing power in 2017. Due to severe constraints imposed by Decree 116, the sector continues to confront a supply shortfall in 2018. Despite increasing demand, the overall sales of the whole market in the first ten months of 2018 are still equal to the same period last year, according to the latest analytical report of Viet Rong Securities Joint Stock Company (VDSC). However, most importers were able to fulfill government quality, technical safety, and emission criteria in the latter months of 2018. VDSC predicts that the automobile retail business will improve in 2019, but that the market will also become more competitive. Automotive supply is expected to rebound strongly in 2019 Importing automobiles was impossible in the first seven months of 2018 due to Decree 116's restriction on type certificates of quality (VTA). The supply of imported cars fell by nearly 16 percent in the first eleven months of 2018. However, in the final months of 2018, supply began to improve as most exporting countries' governments adhered to the decree's requirements. As a result, VDSC anticipates that the recovery will continue in the coming months, with CBU supply in 2019 rising dramatically from 2018 lows. On the other hand, government regulation will put a stop to expansion. Automobile purchasing power remained high The import of automobiles appears to have been temporarily halted in the first months of 2018, implying that the supply will be insufficient to fulfill the market's strong demand throughout the year. As a result, consumers will have to wait another two to three months to get their hands on the vehicle. Many clients agreed to put down a deposit in early 2018 and get the automobile in early 2019. Furthermore, the vehicle retail business in Vietnam still has a lot of space for expansion. 2.6. Critical Issues - Because Vinfast is the first Vietnamese vehicle brand, it must be very cautious to safeguard its image, which also represents Vietnam; - As a result of the tax benefit, the price of Vinfast goods must be set at the same level as worldwide automobiles of comparable quality. - Ensure that the initial impressions of customers are exceptional in order to boost Vinfast's reputation. Ensure that the initial impressions of customers are exceptional in order to boost Vinfast's reputation. 3. Marketing Strategy Target Markets: Low-cost 3.1. Market Demographics Vinfast's customers are defined by the following geographic, demographic, and behavioral characteristics: Geographics: In Vietnam, concentrate on the major cities. Demographics:  Age: Older than 30 years old  Family size Available to all family sizes  Income: High Class (Over 50m/month)  Psychographic: Vinfast's vehicle is suited to the personal lifestyle of those who like sophisticated, world-class automobiles while yet retaining the pride of a Vietnamese brand at a competitive starting prices. Behaviorals: - Vinfast products are ideal for consumers who often use cars due to their low cost and ease of maintenance. - People that drive a car on a regular basis will benefit from the volume consumption. - Vingroup's brand loyalty consumers are Vinfast's potential consumers. 3.2. Mission VinFast is a part of VinGroup (Vietnam's largest private company), but its aim is more than just commerce and commerce. According to the Ministry of Industry and Trade, a nation with a population of more than 50 million people must have its own automobile brand. Vietnam's officials have also said several times that the country need a national automobile brand. As a result, the creation of VinFast is the wish of both political system and series of support policies not only for VinFast but also for VinGroup. 3.3. Marketing Objectives ( marketing objective for 2021, and marketing objective for 2022) “We have revolutionized the way traditional design is done by asking the people of Vietnam, our first prospective consumer, to be intimately involved in the automotive design process from the start." - According to Vinfast. Lux A2.0 will be positioned by Vinfast as a high-end product that is still relevant. This positioning will determine the value of Vinfast products as well as the market niche in which Vinfast will focus. Furthermore, Vinfast advertises itself as a vehicle brand for Vietnamese people, giving the impression that the Lux A2.0 is a car for Vietnamese people as well, with a reasonable price and great quality. 3.7. Strategies Vinfast and Lux A2.0 are both new to the Vietnamese market, as well as the rest of the world. As a result, the initial phase in the marketing plan will be to raise awareness. To begin, Vinfast will publish reservation prices that are significantly lower than the actual pricing. This will draw attention to our target clients while also expanding our consumer base. At the same time, Vinfast launched the official Lux A2.0 website, which contains a wealth of information. It will be created with the goal of providing information to customers as fast and readily as feasible. This combination will meet customers' instant desire for information in order to raise awareness. Vinfast will then make use of social media to update the commercial version's composition using media such as social networks, online magazines, online newspapers, etc. The level of consciousness rises once more. Advertisements will be the second technique of marketing. Lux A2.0 will be published as a commercial version with an official pricing after it has gained enough renown. Because Vinfast has to update the pricing and underline that the Lux A2.0 is available, advertising now is the best method. Finally, Vinfast will use a combination of three strategies: sale promotions, direct marketing, and public relations. The reason for this is Lux A2.0's life cycle. Lux A2.0 has entered the Growth phase, which means it's time for Vinfast to take money back. Because this is a brief period of time, using three techniques at once will drive the sale as high as feasible and as quickly as feasible. 3.8. Marketing Program Focus on using techniques like PR, internet marketing, and direct marketing to promote advertising and raise awareness. Pricing The first purchase price (pre-order) is 900 million VND; after March 2019, the price will return to the baseline price of 1.366 billion VND, with a cheaper price when purchased through Adayroi.com. The Audience applauds Vingroup's carmaker's "3 no" price strategy to help customers (no depreciation, no financial costs and no interest) Distribution Currently, VinFast is establishing a countrywide distribution network with 15 product showrooms, 400 selling outlets, and 22 authorized dealers selling electric motorcycles across the country. VinFast is also developing a unique service ecosystem, which will include service complexes, charging stations, customer care center systems, and product warranty and repair sites. When electric motorcycles are released onto the market. Advertising and promotion - Digital marketing (website, Facebook and Google ads, SEO, etc.) has a budget of 75 billion VND from January to December 2019. First quarter: from January to March in 2019  We need to display over 9 notable new papers, online news, and new papers for trades and economics in book arcticals => Budget: VND 200 billions Second quarter: from April to June in 2019  KOLS: Vinh Thuy, Noo Phuoc Thinh, Thuy Tien - Cong Vinh, Cong Phuong, Tran Thanh, Quang Dai, Miss Vy Vy=> budget: 10.5 billion VND Event inaugurated in Vinhomes Hai Phong (April 6th - April 7th) and Landmark HCMC for 2 days (April 13th - April 14th), invited KOLS: Vinh Thuy, Noo Phuoc  Creating posters and billboards in residential neighborhoods, wealthy homes, business centers, and luxury apartments such as the Vincom region, as well as a shopping mall => budget: 10 billion VND  Need to create some TV and Youtube advertisements => budget: 30 billion VND Third quarter: from July to September in 2019  Budget: 50 million VND for direct marketing to clients having a VIN ID.  Budget: 30.5 billion VND for advertising on planes, television, and newspapers. Fourth quarter: from October to December in 2019  Set up a customer appreciation event to which Vin customers are invited. Use email to invite people based on their financial capacity to attend. Quang Dai, Miss Tieu Vy, and other KOLs => 40 billion dollars in the budget Total budget: 446 billions VND Customer Service:  After 6 months of ownership, call for car maintenance.  VinID's Integrated Voucher after releasing (counted from Sep 1st to Sep 14th,2018) About Vingroup 105,129 reacts and 13,320 mentions The term “Paris Motor Show” 283,013 mentions 5.1. Implementation  The key marketing programs are identified in the milestones that follow. It's critical to complete each task on time and within budget. 5.2. Contingency Planning Difficulties and Risks The event did not have the desired effect; few customers attended, and there was no lasting impact. Worst-Case Risks Already have counterfeit customers, who book news and boost SEO illegally. 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