TOPIC BUILDING a MARKETING PLAN FOR VINFASTS ELECTRIC CAR PRODUCTS

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING - - Class: CLC_19DM07 MARKETING MANAGEMENT TOPIC BUILDING A MARKETING PLAN FOR VINFAST'S ELECTRIC CAR PRODUCTS FACULTY OF MARKETING SPECIALIZED MARKETING MANAGEMENT Ho Chi Minh city, 2021 0 TIEU LUAN MOI download : skknchat123@gmail.com THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING - - Lớp: CLC_19DM07 MARKETING MANAGEMENT TOPIC BUILDING A MARKETING PLAN FOR VINFAST'S ELECTRIC CAR PRODUCTS FACULTY OF MARKETING SPECIALIZED MARKETING MANAGEMENT Lecturers: Students do: Ho Chi Minh city, 2021 0 TIEU LUAN MOI download : skknchat123@gmail.com TABLE OF CONTENT EXECUTIVE SUMMARY INTRODUCE MARKET ANALYSIS 3.1 Macroenvironment 3.1.1.Economic 3.1.2.Natural 3.1.3.Political 3.1.4 Social - Cultural 3.1.5.Technological 3.2 Competition 3.3 Electric car industry SWOT ANALYSIS 4.1 SWOT of Vinfast 4.2 SWOT of product SEGMENTATION AND POSITION STRATEGY 5.1 Segmentation strategy 5.1.1.Geographic Segmentation 5.1.2.Demographic Segmentation 5.1.3.Income Segmentation 5.1.4.Psychographic Segmentation 5.2 Posititation Strategy 5.2.1.Value-based positioning strategy MARKETING MIX STRATEGY 6.1 Product 6.1.1.Product adaptation strategy 6.1.2 Strategy for each product ACTION PLAN CONCLUSION LIST OF REFERENCES & ORIGINALITY 10 APPENDIX 10.1 Financial Paper 10.2 Expense Budget 10.3.Member’s group work assessment 0 TIEU LUAN MOI download : skknchat123@gmail.com EXECUTIVE SUMMARY The report fully shows the activities in the integrated communication plan for electric cars under the VinFast brand The communication strategy will be focused on implementing in some forms such as advertising, PR, events, OOH and hitting the Vietnamese market hard In the world today, electric cars are very popular and popular, but in Vietnam, the market share of this car is less and new to users Vinfast's electric cars have only just entered its first phase, so Vinfast is under a lot of pressure to compete with rivals that gasoline cars have been around for a long time The objective of the communication plan is to increase customer awareness about electric cars and build trust in customers about this model Therefore, the communication strategy is implemented through TVC with the message "Explode electric Era to save the Earth" to enhance the value and outstanding benefits of electric cars compared to gasoline vehicles in terms of environment and clean energy, while highlighting its superior features Besides, accompanied by interactive Event activities, CSR is also an activity that helps businesses take responsibility to the community and impact consumer awareness in protecting the environment better and better INTRODUCE VinFast is an automotive startup with the backing of Vingroup - the largest private enterprise in Vietnam, that's why we freely design cars in new and bold directions From the very beginning, our goal was to create world-class cars with a Vietnamese identity VinFast is Vietnam's first branded car This brand is owned by VinFast Manufacturing and Trading Company Limited (VinFast LLC), a member of Vingroup Group, led by Mr Pham Nhat Vuong as Director With the mission of "Creating a better life for the people of Vietnam", Vingroup has developed a diversified investment portfolio in many business areasVingroup continues the prerequisite style and first guide used in each of its businesses, introducing customers to a completely new, modern lifestyle with products and services of international standards Vingroup continues to pioneer and lead the consumption trend in each of its businesses, introducing to Vietnamese consumers a completely new and modern lifestyle with products and services of international standards Vingroup has built a prestigious Vietnamese brand, recognized and proud to be one of the leading private enterprises in the country 0 TIEU LUAN MOI download : skknchat123@gmail.com Let's see how Vinfast's Social Media strategy has exploded so that it can have a dream start in the market MARKET ANALYSIS 3.1 Macroenvironment 3.1.1 Economic Economic growth rate (GDP) In recent years, Vietnam has had a remarkable and stable growth rate The year VinFast was established - 2017 is considered a miracle year of the Vietnamese economy The economic growth rate reached 6.81%, exceeding the set target of 6.7% In the second half of the year, there was a spectacular breakthrough of over 7% (7.46% in the third quarter, 7.65%) in the fourth quarter, creating a big boost for our economy This is also a record number in the past 10 years In the following years, the economic growth rate remains impressive when reaching 7.08% in 2018 and 7.02% in 2019 Although in 2019, the growth rate is somewhat reduced, but the This number is still very high compared to previous years These remarkable economic growth marks have created momentum for the development of Vinfast with many open opportunities and a solid foundation, especially in expanding its scale and increasing investment GDP growth rate in the last 10 years 5.32 2009 Economic growth rate Chart 1: GDP growth rate in the last 10 years (Source: General Statistics Office) 0 TIEU LUAN MOI download : skknchat123@gmail.com CPI The inflation rate (consumer price index – CPI) also affects both production and consumption When the inflation rate is high, it will adversely affect consumption, reduce demand, reduce consumption, discourage production and reduce investment Poisonous CPI changes in recent years 25 20 % 15 10 2010 Chart 2: Poisonous CPI changes in recent years (Source: General Statistics Office) Inflation index in 2019 is about 2.79%, the lowest in the last years when it was 3.54% in 2018 and 3.53% in 2017, this index is much lower than growth, helping to increase inflation growth makes more sense In Vietnam, the automobile industry also accounts for 3% of the country's GDP It is for this reason that the industry always receives special attention and treatment from the government 0 TIEU LUAN MOI download : skknchat123@gmail.com Contribution of the auto industry to GDP 14 12 10 America Contribution of the auto industry to GDP (%) Chart 3: Contribution of the auto industry to GDP (Source: Eurostat, Synthetic CTS) Electric cars are becoming more popular than ever when they can solve the problem of urban pollution, self-driving systems are also being invested and developed strongly 3.1.2 Natural In Vietnam, dust pollution caused by vehicles such as cars, motorbikes, etc in urban areas continues to remain at a high level, which has also caused negative impacts on people's health The production of electric vehicles is also a way to reduce pollution and is supported by the people and the government 3.1.3 Political The automobile industry has always received enthusiastic attention from the government, making a large contribution to the country's GDP The business environment has changed, however, the two industries that always receive priority are Automotive and Steel and are usually not included in the list of exempted or reduced tax lines, except for ATIGA and possibly EVFTA 3.1.4 Social - Cultural VinFast up to this point has had a result that, according to the foreign press, is promoting national pride, bringing a dynamic and modern Vietnam image but also rich in national identity ethnicity Just like the recent trend "Vietnamese people give priority to using Vietnamese products" has shown a positive side in the development of Vietnam's automobile industry 0 TIEU LUAN MOI download : skknchat123@gmail.com 3.1.5 Technological Vingroup has chosen the world's leading partners and has advanced solutions in the application of 4.0 technology to design and install production lines for VinFast's automobile factories Picture 1: Inside the vinfast factory (Source: Báo Thanh Niên) Currently, Vinfast produces and markets electric vehicles, along with the cooperation with major petroleum distributors in Vietnam such as Petrolimex, PVOil to develop infrastructure and systems various charging stations (normal charging station, fast charging station, battery rental); integrating overnight charging stations in apartment basements and charging stations at VinMart, creating convenience for car users and contributing to solving the challenge of environmental pollution 3.2 Competition Every business does business in an environment with different competitors: • Competitors in different industries • Competition takes place within the same industry • A product category with competition between brands 0 TIEU LUAN MOI download : skknchat123@gmail.com MARKETING MIX STRATEGY 6.1 Product 6.1.1 Product adaptation strategy Thanks to the combination with the famous Italian brand Pininfarina, VinFast VF E34, VFe35 has conquered all the most demanding customers with its luxurious and sporty design Picture 6: Product image VFe35 ( Source: Web) 0 TIEU LUAN MOI download : skknchat123@gmail.com Picture 7: Product image VFe34 (Source: Website) In addition, Vinfast also invested in the interior design of this electric vehicle product line, as well as equipped with safety systems for these models (certified from the new car evaluation program of Southeast Asia Asean) NCAP, 04 stars for Vinfast VF E34 (standard version) The high-end version is also rated 05 stars by Euro NCAP for safety features) Digital Number of seats Hips Dimension Weight (self-esteem) Airbag System Engine Pin 0 TIEU LUAN MOI download : skknchat123@gmail.com 70% charge and 300km (fast charging technology DC60kW CCS2) Featured features 6.1.2 Strategy for each product Proactive innovation With the increasing number of cars in the Vietnamese market as well as the increase in air pollution caused by vehicles Understanding this, Vinfast is trying to develop electric vehicles, including models such as VFe34, VFe35 that are about to be launched in Vietnam (VFe34) and the US (VFe35) pole As a company with a position in the top list of Vietnam, Vinfast has combined with Pininfarina of Italy; and cooperates with famous global automotive engineering and manufacturing companies The cooperation with these famous brands not only helps Vinfast have the same quality as other car manufacturers around the world, but also strengthens the image of high-class Vietnamese cars in the hearts of users Price The price strategy will help businesses achieve one or more marketing goals (increased market share, maximum profit, ) mainly through the application of a reasonable price for products / services at a specified time Vinfast can apply the following price strategies for product lines of VF e34, VF e35 as follows: 0 TIEU LUAN MOI download : skknchat123@gmail.com a When launching: Market-penetration Pricing: This is the time to promote new products, so Vinfast needs to apply the lowest price possible with the goal of gaining market share and covering the awareness and favorite of both cars Vinfast must accept losses in the first place to achieve the goal, then gradually bring the product price back to the possible level to help the business be profitable: The recommended price in the first2 months of launch is as follows: VF e34 590 million VNĐ VF e35 estimated price 700 - 800 million VND Optional-product Pricing: Vinfast can sell cars with one or more optional products (car parts, car interior, spare tires, 1-for-1 policy when the car has problems) at a cheaper price if buying each product separately This strategy can increase the competition of the main product (electric cars have just launched) b After launching to the market for a while: Promotional pricing: On Tet holidays, Black Friday, Vingroup's birthday, Vinfast can offer promotional policies such as sharp discounts to boost its sales these days Credit-term pricing: The trend of installments and post-payment is gradually gaining popularity in today's society Vinfast can apply, customers can immediately own VF e34 with a pre-deposit and installment amount with 0% interest rate on term That helps to accelerate sales, satisfy customers in the best way Place In the Vietnam market, Vinfast is an exclusive enterprise producing and distributing rights in the country For car manufacturers being sold in Vietnam, in 2020, Vinfast has dominated and become the "leading" enterprise As a leading enterprise in the market, with strong financial resources, high ability to produce goods and services, and large markets Besides, Vinfast has also pioneered and launched VF e34 and VF e35 electric cars Therefore, the distribution strategies that Vinfast can apply are: Exclusive distribution: Vinfast manufactures and distributes its own vehicles on its system without intermediaries or other distributors That helps Vinfast to maintain strict control over the good image of its products and services 0 TIEU LUAN MOI download : skknchat123@gmail.com With the no position in the market, therefore the distribution strategies they apply are placed in each specific goal such as: + Increase total market demand: increasing total demand will increase the ability and market service capacity of leading enterprises Businesses increase total demand by: + Picture 8: Customers come to the showroom to see Vinfast president (Source: Daily Xe) Find new consumers: implement channel promotion strategies and develop distribution channels in new markets Expand vehicle distribution stores throughout the country to reach more customers + Develop new uses of products: attract customers, by launching products with better new uses, leading to a restructuring distribution system to suit new products Vinfast has been doing that, launching electric cars Vinfast needs to distribute to all stores so that customers can come and easily experience and order more + Maintain market share: continuous innovation, producing products with exclusive and superior features to serve customers better Increased market share Promotion Promotion in Marketing is the fourth and final P of marketing mix strategy This is because before implementing the Promotion strategy, the remaining P's (product, price and distribution) had to be ready Promotion often uses integrated marketing communications (IMC) – i.e using different media to convey the brand's message from business to consumer 0 TIEU LUAN MOI download : skknchat123@gmail.com Coming to Vinfast, the two latest electric cars: VF e34 and VF e35, are about to be launched in the market, Vinfast can apply the Promotion strategy through factors such as Personal Selling, Sales Promotion, PR, Direct Marketing, As follow: Sales Promotion: Preferential when ordering in advance (Website): The official price when buying VinFast VFe34 is 690 million VND, the ideal price to own the first smart electric car of Vietnam More specifically, the price will only be VND 590 million exclusively for VFe34 deposit pioneers before June 30, 2021 Vinfast also reduces registration tax on VFe34's pre-orders Picture 9: Incentives when depositing in advance for VFe34 (Source: Vinfast's website) Products are always up-to-date (products, services, information, ) along with promotions through online forms: videos (Teaser, official video), Facebook ads, Google Ads and live forms: launch events, trade fairs Public Relations: Create events such as + Launch event of VFe34 and VFe35 electric cars Through the event, highlight the features and benefits that these two cars bring Invite journalists and reporters to participate in writing and posting + After having the number of customers buying and testing VFe34, organizing the event "Vin Fresh" with the purpose of exchange about vehicle experience, enhancing education on environmental protection and the use of clean energy is one of the methods to protect the environment Highlights during the event is "Kilometers to Trees" Customers are using VF's 0 TIEU LUAN MOI download : skknchat123@gmail.com trams upon arrival at the event The kilometers of the car that have been run will be converted by VF into a mill for planting green hills + Organizing "Vin Figure" event on Vietnamese Family Day at Vinschool Through model assembly, model experience and products to introduce new products (VFe34 electric cars, VFe35) In addition, the event helps to create the value of education, develop children's thinking, increase the interaction between children and parents when vinfast is accompanied on all roads Personal Selling: At Vinfast's showrooms and shopping malls such as Vincom, Landmark 81: display new products, VFe34 and VFe35 for customers to see and experience directly It is necessary to have a salesman at the showroom to guide and provide information about the product to customers, inform about promotions for customers Direct Marketing Directly send emails to loyal customers of Vinfast, which can be expanded to those who have registered membership cards of Vingroup In addition, registered customers interested in Vinfast brand in general and new products in particular should also send emails to information about VFe34 and VFe35 models 0 TIEU LUAN MOI download : skknchat123@gmail.com ACTION PLAN Timeline 2021 July August Septembe r October 2022 Novembe r Decembe r Januar y Februar y OWNE D Gmail POS Showroom SHARE Ecosyste m Vincom Vinpearl Vinschool Vinbus PAID OOH Bilboard Transit Ads TVC Gmail Facebook Ads Google Ads Activation Event News March April May June Press 0 TIEU LUAN MOI download : skknchat123@gmail.com Conferenc e CONCLUSION Today, when the era of science and technology is making great progress, as well as when the environment is becoming more and more serious, the production of products that not affect the environment is gradually becoming the trend of most of the world In today's market, grasping that trend, Vinfast has made clear strides and choices in the application and use of electric vehicles in its ecosystem as well as their production and hit the Vietnamese market strongly South as well as the world With the strategy of targeting users' tastes first and ranking profits in second place, it shows Vinfast's willingness to play, as well as Vinfast's sales statistics are increasing, that One thing is for sure, with that strategy Vinfast is confident enough to be able to maintain the strategy, as well as succeed in the field of electric cars in the future LIST OF REFERENCES & ORIGINALITY Vietnamese reference material (1) Ngô Thị Thu Marketing Căn Bản Nhà xuất lao động – xã hội (2011) (2) Cẩm Tú Chiến lược sản phẩm (2016) Slideshare (3) Minh Hiếu Vinfast bán 67.000 sản phẩm ôtô-xe máy điện năm 2019 (17/01/2020) Vietnam+ (4) Cổng thông tin điện tử giao thông vận tải Vấn đề ô nhiễm môi trường từ phương tiện giao thông vận tải (22/07/2014) (5) Trung tâm Nghiên cứu – Phân tích Báo cáo ngành tô Vietin Bank secutiry (2019) (6) Thái Quỳnh (Theo Nhịp sống Kinh tế) Lộ diện top 10 tỉnh thành có thu nhập bình quân đầu người cao năm 2020: Cả TP HCM Hà Nội không dẫn đầu (22/05/2021) Hội doanh nghiệp hội nhập (7) Minh Anh Điều khiến cổ phiếu ngành tơ thu hút quan tâm lớn giới đầu tư? (17/04/2019) CAFEF (8) Ngọc Khánh Chiến lược khác người VinFast (09/07/2020) VTC News (9) Thành Phạm Chi tiết xe Vinfast VFe35 2021 – Mẫu SUV Xăng & Điện thông minh Vinfast (03/06/2021) MuaXeGiaTot.vn English reference material (1) Philip Kotler, Kevin Lane Keller Marketing Management 14E Publisher: Pearson (2011) (2) Pham Quang Thuy, Do Thanh Ngan, Trinh Quoc Bao, Phan Hoang Bao & Thai Ngoc Minh Uyen Marketing Plan For Vinfast Lux A2.0 University of Financial – Marketing (2019) (3) Vinfast's marketing strategy (2019) National University of Economics 0 TIEU LUAN MOI download : skknchat123@gmail.com 10 APPENDIX 10.1 Financial Paper Table 1: Estimated budget report table (Million VNĐ) Revenue Quanlity Time Month VFe34 14 VFe35 10 10.2 Expense Budget Table 2: Budget for promotional activities OWNED SHARED PAID 10.3 Member’s group work assessment Name Student code Evaluation of the process 0 TIEU LUAN MOI download : skknchat123@gmail.com 0 TIEU LUAN MOI download : skknchat123@gmail.com ... FINANCIAL UNIVERSITY OF FINANCE – MARKETING - - Lớp: CLC_19DM07 MARKETING MANAGEMENT TOPIC BUILDING A MARKETING PLAN FOR VINFAST'S ELECTRIC CAR PRODUCTS FACULTY OF MARKETING SPECIALIZED MARKETING. .. car demand growth Per capita income grew well, while inflation and exchange rate were managed in a timely and reasonable manner, creating favorable conditions for people to access cars - an asset... here can be mentioned as corporations as well as big car manufacturers such as THACO, Honda, Hyundai, Toyota, Ford, Competitive market: Thaco regains market leading position; Honda and Hyundai achieved