THE 7ps MARKETING MIX OF VIETJET AIR

OVERVIEW

Reasonsforchoosingthe topic

The aviation market is now more interested than ever Because life is more and moremodern, people's needs are increasing From old bicycles, to motorbikes, to cars. People'smeans of transportation are getting more modern over the years Moving between farawayplacesisnolongersomethingthatmakesusthinktwice.Noneedtosaymuchordiscussdeeply,thereisone thingthateveryonemustadmitthattravelingbyair willbemuchmoreconvenientthan other types of means. Although the cost is much higher, flying gives us commensuratebenefits First of all, the issue of time, traveling by

"birds of flight" helps us save a lot of time.And thanks to that, our time will be longer, longer, and we can do more of our plans. Besides,health issues are also very important, instead of having to sit for hours on end tired in cars andtrains,wecan sit comfortablyonairplanes in a much shorter time.

Along with the growth rate of the economy, the aviation market also develops in aproportional manner According to IATA data, Vietnam's aviation market has the third fastestgrowthrateintheworldwithanaveragerateof16.6%peryearintheperiod2001-2014.IATAalso forecasts that Vietnam will be the fifth fastest growing aviation market in the world,reaching 150 million passengers by 2035. Vietnam's aviation industry is also the fastestgrowingindustryin Southeast Asia.

It can be said that the success of the aviation market that Vietnam has cannot fail tomention the names Vietjet Air, Vietnam Airlines, Bamboo, etc Among them, Vietjet is thename that is making waves when it was born but both growth and revenue are outstanding.According to the announcement of the 2020 financial report, Vietjet announced a profit of 70billiondong, while Vietnam Airlines lost morethan11,000 billion dong.

Realize the resounding success of VJA and the importance that the MarketingMixstrategy contributes to that success We decided to choose the topic: "Marketing MixStrategyofVietjet Aviation JointStock Company" as ourresearch topic.

Objectivesof thestudy

- AnalyzethebusinessenvironmentofVJAtoseestrengths,weaknesses,opportunitiesandthreats.Andfromthere,proposemeasurestoimproveVJA'sMarketingMixstrategy

Researchsubjects

Researchscope

ResearchMethods

- Usinganalytica l m e t h o d s , comparingdata be tw ee n y e a r s toc o m e upwithVJA's performance results.

Structureof topic

CHAPTER2 : M A R K E T A NA LYS IS O F A V I A TI O N I N D U S T R Y A N D C OMPETITORS:

CHAPTER 3: TARGET CUSTOMERS AND POSITIONING

OVERVIEWOFVIETJETAIRLINESJOINTSTOCKCOMPANY

AboutVJA

VietJet'sfull nameis VietJet AviationJoint StockCompany.

This is Vietnam's first private airline Not only air transportation, Vietjet also providesconsumerdemand for goodsandservices throughe-commercetechnologyapplications.

Currently,VietjetAirisanofficialmemberoftheInternationalAirTransportAssociation(IATA)with theOperational SafetyCertificate (IOSA).

Currently, Vietjet is operating 80 A320 and A321 aircraft, carrying out more than 385flightsperday, transportingmorethan 65 million passengers.

This airline currently has 105 routes covering destinations in Vietnam and a number ofinternational routes such as Japan, Hong Kong, Singapore, Korea, Taiwan, etc In the future,VietjetAir will openmoreroutes flies throughoutthe Asia-Pacificregion.

Vietjet'sheadquartersinHanoi,address:VanPhucDiplomaticCorps,NgocKhanhward,BaDinh district.

In Ho Chi Minh City, the head office is at 260 Ung Van Khiem, Binh Thanh District.Inaddition,thecompany's hotline number is 1900.1796 (support24/7)

Visionandmission

Tobecomeamultinationalairlinecorporation,withawidenetworkofflightsthroughoutthe region and the world, developing not only aviation services but also providing consumergoodson ane-commerceplatform,abrand thatis lovedbycustomers.loveand trust.

- Makeair serviceapopular means oftransportation in Vietnamand internationally

Goalsand Corevalues

Core Values:Safe –Fun–Cheap–Ontime

MARKET ANALYSIS OF AVIATION INDUSTRY ANDCOMPETITORS

MACROENVIRONMENT

Vietnam's economy in recent years has made great progress, with an annual growth rateof 7% to 8.6%, per capita income has increased significantly Vietnam's economy is changingitsface,infrastructureisbeingupgraded,investmentisincreasing.Withtherapiddevelopment of the economy, human needs also increase, including the need for travel People with highincomeshavean increasingneed for air travel.

Vietnam's economy has achieved quite high growth Besides, GDP per capita alsoincreased by more than 40%, from 1,532 USD/person in 2017 to 2,171 USD/person in 2020.Socio-economicsituationOursocietyhasmadepositivechangesintherightdirection,andthemacro- economyhasbecomemoreandmorestable.Theseissueswillcreatefavorableconditionsforthe development ofaviation transport.

In the coming years, it is forecast that the world economy will continue to grow at anaverage rate of 3.5% in the period 2015-2020; The world tourism market will increase by anaverage of 3.6%/year In 2015, there are nearly 1.18 billion foreign tourists, up 4.4% over theprevious year This is a very important premise for international and regional aviation to havestronggrowth and developmentconditions, includingtheaviationmarket.

The change in technology has had the most direct and strongest impact on the business oftheaviationindustry.Itnotonlyensuressafeflights,butalsoinvolvesmanyotheractivitiesinthe air transport business The first is aircraft manufacturing technology This is the mostimportant factor in the success of airlines The production of safe, good quality, fuel efficient,businessefficientaircraftofmediumandlargesizesensuresflightsrequiringhightechnology.These aircraftwereborn,makingthepreviousaircraftlinesobsolete,reducingthecompetitiveness of less innovative airlines and modernizing the fleet - creating a pressure onairlines.

For the management of mining operations, the Company uses Geneva software. Thissoftware helps the company to optimize its resources in terms of flight schedules, crewschedules, simplify flight handling and flight time control The company uses SunSystems tomanageprocurement,financeandaccountingprocesses.Inaddition,thecompanyalsoappliesAMOSt o managematerials and aircraft spareparts.

Orienting investment in information technology on the Internet, the Company will buildan expanded e-commerce technology platform to facilitate customers in buying tickets andgoods and services from the website VietJetair.com Besides, the Company will continue toinvestinERPsolutionsforbusinessoperationmanagementunderthemodel"E-Company-

ThecompanyiscurrentlyworkingwithPriceWaterhouseCoopersCompany(PWC)toimplementa privateinvestment project.Question.

Vietnam is considered to have the most stable and peaceful political environment With astable political background leading to unoccupied airports, free skies, unregulated, favorableconditionsforairlines to do business.

In parallel with the process of international integration, the State continues to adoptpoliciestoimprovetheinvestmentenvironment,increasetheattractivenessofforeigninvestm ent, and focus on investment of multinational companies; Encourage and promotetourismdevelopment,shiftfromexploringtourismbusinesstobuildingarealtourismindustry,consider ing tourism as a spearhead economic sector; Foreign investment (FDI) achieved agrowthrateofabout5-7%/year;thesourceoftouristsfromabroadtoVietnamwillgrowat1012%/ year,domestictourists 10-11%/year.

TheVietnamesegovernment'sremovalofthe15%taxonimportedfuelandinvestmentininfrastructure to meet future demand is considered animportant step Vietnam has wellimplementedtheconversionofpaperticketstoelectronictickets,nextneedstopromotefreighttransportthr ough electronic transactions to serveexports.

Currently,Vietnamisintheperiodof"Goldenpopulationstructure"becausethepopulation structure by age changes rapidly This is a period that brings many opportunitiesthanks to an abundant working-age population However, it is also a challenge in the processof improving the quality of human resources, creating jobs and jobs with high productivity,qualityandincome.Vietnamisrecordingthehighestproportionofyoungpopulationinhistory.Th epopulation aged 10-24 in our countrycurrentlyaccounts fornearly40%of thepopulation

- With the current population situation in our country, Vietjet Air - a low-cost airline,focusesontheyoungcustomersegment,activeandfirst-timeflyers,middle-incomepeople.Customerswho are proficient in using technology and the Internet such as smartphones, email, socialnetworks, online payment methods: visa,master card, and have a hobby of exploring,traveling often at the right cost Most ofVietjet's customers are those who like innovation,creativityandlove to connect,

Since its establishment, Vietjet has not looked at how much the aviation market share hasbeen"captured",butonlyfocusedonhowmuchmorecanbeexploited.VietJetDeputyGeneralDirector vindicated: If we keep looking at the water that has been poured into the capital,VietJet will not see the opportunity of the city to be poured more Thanks to that "strange"thinking, VietJet saw a great opportunity: "With

Vietnamesepeopleuseairtransport,99%ofthechancesareVietjet".VietJetalsodoesnottargetcustomersw hohavealreadyflown.Withthesamemindsetasaglassofwaterwithhalf,Vietjethasmadea decision to target customers who have never been on a plane The breakthrough in thinkingistoconsidertravelingbyplaneassimpleastakingabus,notasluxuriousasridingalimousine.

The geographical position of Vietnam is quite favorable for the development of theaviationindustrywithalocationontheedgeofSoutheastAsia,inthemiddleoftheinternationalairr outeconnectingfromeasttowest,fromnorthtosouthissuitableforbuildingthe flight network between the US and Australia with short flights within Southeast Asia andinlandVietnam With the characteristics of Vietjet Air's route network built according to the"shaft- spoke"modelwithhighoperatingfrequency,goodtransshipmentserviceinHanoi.InnercityandHoChiMinhCit y,creatingcompetitiveadvantageswithtransportationflowsinternationalcargoto/ fromIndochina,SoutheastAsia;Vietnamstepbystepbecomearegionalair hub, competing directly with airlines major transit centers such as Hong Kong, Bangkok,Singapore Vietjet Air will actively cooperate in bilateral trade with international airlines,expandroutes,overcomesubjectivelimitations,andgraduallyselectpartnerstojointheglobalalli anceinlinewithcurrenttrends.thegeneraldevelopmentpositionoftheworldandtheactualcapacity of the company, if it makes good use of the position of Vietnam's natural factors, itwill significantly increase the production of its goods in these markets However, Vietjet Airhasnotyetfullyexploited this advantage.

MICROENVIRONMENT

Total assets by book value in 2020 compared to 2019 decreased by VND3,662 billion,down 7% mainly because the Company transferred an investment projectto support airtransport.

In2020,themarketrecordedgreatfluctuationswhentheCovidepidemicbrokeoutandcomplicatedmov ementsthroughouttheyearresultedina64%decreaseinnetrevenuein2020compared to 2019 net revenue When the load is low, the airlines are forced to reduce thenumber of seats available, the number of flights and the frequency on a large scale in order toincrease the efficiency of seat utilization and revenue The competition for market share andfor each flight takes place fiercely on every day, every flight, Business aircraft rental pricesdown to very low levels; a series of promotions and stimulus programs are launched to attractcustomersandsaleschannels.Intheinternationalmarket,Vietjetmainlyconductsanumberofhumanitarian flights to rescue and repatriate Vietnamese people under the coordination ofauthorities.

During the year, Vietjet made transfer transactions of investment projects and made aprofit of 1,773 billion VND to compensate for losses in aviationactivities As a result,consolidated profit after tax reached VND 69 billion, making Vietjet one of the rare airlineswitha profit in 2020.

Table1: Structureof thecompany's shareholdersasof January4th, 2021

No Shareholder Number ofsharehold er

(Source:List of shareholders,providedbyVSDonJanuary4, 2021)

 With about 300 flights per day, the purchase of products by Vietnam Airlines DungQuat Oil Refinery will help businesses save on transportation costs moving, warehousing andnot be under pressure of foreign currency in the context of the economy as the current At thesametime,contributingtoreducingthetradedeficitforthecountry.FromAugust2010tonow,BinhSonRefi ningandPetrochemicalCompanyhassoldtodomesticandforeignpartnersmorethan 28,600 tons of Jet A1 jet fuel It is estimated that each year Dung Quat Refinery willproduce about 400,000 tons of Jet A1 gasoline, meeting about 35% - 40% of the current fueldemandfor Vietnam Airlines.

 Inaddition,somefamiliarpartnersofVietjetAirinSLBdealsareGECapitalAviationServicesLimit ed,AwasAviationTradingLimited;Awas7170IrelandLimited;AvationPLC;GoshawkAviationLimited

;GoshawkManagement(Ireland)Limited;JacksonSquareAviation,LLC…

 Consumers:individuals and households who haveaneed to fly

.However,aftermanydelays,itwasofficiallyputintooperationin2011andquicklyreceivedthesupport of domestic customers becausethe ticket priceis verycheap.

 The main office is at Tan Son Nhat International Airport in Ho Chi Minh City and abranch at Noi Bai International Airport in Hanoi with a registered capital of 600 billion VND,Vietjet Air is a 100% Vietnamese owned company with 3 main shareholders: T&C Group,SovicoHoldingsandHoChiMinhCityJointStockCommercialBankandHousingDevelopme nt.

 Owning 100 aircraft of all kinds: 62 ordered, 30 more purchased and 8 leased with thetimeuntil2022 witha totaltransaction value of about$9.1 billionfrom themanufacturer.

 Vietjetisthefirst airlinein Vietnamandafewinthe regiontoownthelatestandmostmodernSharklet A320 aircraft from Airbus.

 The modern fleet is an international, professional crew With experienced and friendlyflightattendants,providingqualityaviationservices,servingcustomers,VietjetAirisayoungand dynamic airline trusted by many passengers and has become a leading airline in Vietnam.domesticandregionalfavoriteairline.Theareaisknownforthebrand"Flyislikerightaway"

 Vietjet has developed a wide domestic flight network and plans to develop a networkofroutesintheAsia-

Pacificregion.Meetingtheincreasingtravelneedsofdomesticaswellasinternational people with the rate of on-time flights and service quality that is always at theforefront of the industry The highlight of the airline is that it always offers many choices offlights, not just a means of transport, Viejet is always creative, bringing customers manyinterestingtricksand funon flights.

In2020,whilemanyairlinesaroundtheworldsimultaneouslycutstaffinordertomaintainbusiness operations during the ongoing Covid-19 pandemic, Vietjet took advantage of theopportunitytorecruitqualifiedpersonnel.from thedomesticandinternationallabormarket.

During the year, Vietjet recruited 792 new employees including 13 pilots, 125 flightattendantsand 654 otheremployees.

08 Vice Directors and Chief Accountant The General Director is the legalrepresentative of the Company, manages all day- to-day activities of the Company and isresponsible to the Board of Directors for the implementation of the assigned rights and duties.The CEO, Vice Directors and Chief Accountant directly manage production and businessactivities,andadvisethe GeneralDirector tomake strategicdecisionsforthe Company.

4 ToViet Thang Vice Director of

COMPETITOR

Inrecentyears,Vietnam'sairtransportmarkethasreallyexplodedasprivateandstate-owned airlines vie for market share in a price war Vietjet Air is highly competitive withdomestic airlines such as Vietnam Airlines, JetStar

Pacific, Bamboo Airways, In the future,low- costairlineserviceswillcontinuetoexpandandthelevel ofcompetitionwillincrease.

Along with competition in the domestic market, Vietjet Airalso has to compete withairlines from countries inside and outside the region In 2017, fares for flights from Europe toVietnamdecreasedsignificantly.Ifinthepast,theseroutesVNAcompetedmainlywithFrenchandGerma nairlines,now,whenGermanairlineshavetogivewaytoairlinesfromtheMiddleEast, VNA is forced to compete with very strong opponents, difficult to balance While VNAhas only 4 routes to Western Europe (Paris, Frankfurt, London, Moscow), Middle Easternairlineshaveroutes to all cities in Europe.

We can divide potential competitors into two main groups: the group of small andmedium-sizedairlines in theregion,thegroupofmajorairlines in theworld.

 Small and medium airlines: These are mainly newly established domestic airlines orsmallregionalairlinesthathavejustopenedroutesinVietnam,thisgroupofairlinesoftentakeadvantageof thefollowingadvantages to compete:

- Advancedtechnicaltechnologyhelpsreducecosts(takeadvantageoftheInternetfor ticketing, use new generation aircraft more flexible) For example, Air Mekong usesBombardier CRJ 900 series of jets, thereby doing unprecedented things such as directflights from Hanoi to Phu Quoc, Pleiku, Con Dao Choose short routes, actively buildnewroutes notyet exploited byVietjet Air.

- Dividing a long flight into reasonably short segments (For example, with the routeHCM-Bangkok,aCambodianairlinecanopenarouteHCM-SiemReap-

Bangkokto take advantage of a group of customers who like to travel with the wish one trip cangoto 2 places).

- Therea r e m a n y w a y s s u c h a s : h o m o g e n i z i n g s e a t s , u s i n g o n l y o n e t y p e o f p l a n e , eliminating food services, free newspapers, if you want to be served, you have to payextra)For example,anairlineh a s b e e n established:Air Mekong.

 Majorairlinesintheworld:BecausetheVietnameseaviationmarketisquitesmall,thisgroupoflargeai rlinesoftendoesnotbuilddirectroutesaswellasdomesticflightsinVietnam.However,theseairlines can competewith VietjetAir in thefollowingways:

- BuildingaroutetoVietnamthatconnectstoanothercountrywithamorestablemarket(e.g.Thailand orSingapore).SowiththereverseflightfromVietnam,theywillbe able to lower the price a lot to promote the brand, destroy the opponent, but the profitwillnot affect too much.

- Usestrongfinancial resourcesto conductstrongdiscountstobuildaname,buildtrustincustomers,causingsmallcompetitors alot ofdifficulties,even bankruptcy.

- Link with a domestic airline through the form of capital contribution Currently, thegovernment'sn e w p o l i c y i s v e r y o p e n , n o t o n l y e n c o u r a g i n g t h e e s t a b l i s h m e n t o f privateairlines,Vietnamwillalsobecallingforforeigninvestorstojointheassociationwitht heconditionthatthelegalrepresentativeisaVietnamesecitizenandthe charter capital of the foreign airline does not exceed 49%.) For example:

QantasAirwaysusedtobebought30%ofsharesandbecameastrategicshareholderofJetstar,thankstoits verystrongpotential,QantasAirwayshelpedJetstarofferalmostunbelievableprices.

TARGETCUSTOMERS AND POSITIONINGSTRATEGIES

VJA'scustomers arethosewho need to travel byair.

VietJetAirisalow-costairline,becauseofthis,ithasattractedmanyyoungpeopleandmiddle-income people VJA focuses on segmenting target customers who are young anddynamic people VietJet Air had the idea to attract this group of customers, so the brandpersonality was built on three personality traits

"Playful", "Creative" and "Inspiring" Inaddition, VJA also targets customers who are proficient in using technology and the Internetsuch as smartphones, email, social networks, online payment methods: visa, master card, etc.andhaveahobbyofexploring,travelingoftenatareasonablecost.MostofVietjet'scustomersarethose who likeinnovation, creativity, connection, etc.

For high-income customers, VJA has high-class services suitable for these customers.Customers can enjoy personalized services when using Vietjet's premium services (lounge,food,private shuttle ).

Nowadays, people's travel needs are increasing, especially by air Recognizing the needsof customers, VJA has struck into the minds and perceptions of customers about its services.Therefore,to stimulatecustomer demand,VJA has dividedinto 3triggersofneed:

 Physicalconditions:Becausetheneedtouseaviationservicesissuitabletothecustomer'sconditi ons, the customer has decidedto chooseVJA.

 Externals o u r c e s : t h e c u s t o m e r ' s d e c i s i o n t o b u y s e r v i c e s i s a f f e c t e d b y m a r k e t i n g activitiesthat VJAhas launchedsuch asadvertising, servicequality, brand,

Because the demand for air travel has sparked an effort to find information related toair services Through searching, customers have received many sources of information aboutthis service This information has suggested to customers many different services and brands.Beforethecustomermakesadecision,theclientconsidersfactorsgainedfrompastexperienceor external factors From there, offer alternative solutions and consider, evaluate and make afinalchoice.Realizingthat,VJAhaslaunchedextensivemarketingstrategiestocreatestimulationa nd accesstodemandso thatcustomers can chooseto useVJA's services.

Besides Vietjet Air, customers also have other options such as Vietnam Airlines,Bamboo Airlines Jetstar, And customers will base on the following attributes to make thefinaldecision:

 The search attribute helps customers evaluate a service before choosing to usethat service: after searching for information, customers begin to compare and evaluate theservicequalityofairlinessuch asticket prices,food, brand value,

 Experience attributes:After experiencing the aviation services of differentairlines,theycanassessattributessuch asreliability,easeofuse,andcustomersupport.

 Reliabilityattribute:showcustomersthatthevalueandqualitythatVJAbringsisexactl ywhatthecompanyhascommittedto.Anexampleoftheairline'sslogan"Baylàthíchngay" not only offers cheap fares but also gives customers a great experience Besides, theairline also has attractive events such as giving small souvenirs to customers on specialholidays.ThesethingshaveaffectedthetrustofcustomerswhohaveneverexperiencedVJA'sservi ces through the media, creating advertising TVCs, taking photos of events and postingthemon the company's newspapers and websites.

During the experience of Vietjet Air's services, the airline has shown customers the truequality of service This thing is doing from the customer check-in before the fly to when themachine fly to the world Flight options match the criteria selected by the customer,somecustomers will choose domestic flights, others will choose flights outside the country,shouldworkwith longor shortservicecontact belongs totherow ofthe options.

High-contact service: Vietjet Air is a high-contact service Because throughout the servicedelivery process, there must be cooperation between the customer and the service provider.VJAfocuseson“processing”peopleratherthaninanimateitemsbecauseanairplaneisaflyingtransport ation “factory.” The marketing challenge is to make the experience engaging forcustomers in terms ofboth the physical environment and their interactions with serviceemployees.

Customers analyze the service performance they have encountered and compare it to theirprior expectations in the post-encounter stage of service consumption Customers evaluate thequalities and hazards associated with a service offering during the decision-making process.Theyestablishexpectationsabouthowtheservicetheyselectwillperformduringthisprocess.Thezo neoftolerancecanbenarrowandfirmiftheyarerelatedtoattributesthatwereimportantin the choice process The majority of customers feel that Vietjet meets their expectations intermsofserviceandcustomersfeelverysatisfied.VietjetAirhasreceivedverygoodfeedbackfrom customers,which has become the driving force for Vietjet Air to grow stronger andstronger.

POSITIONINGSTRATEGY OFVIETJET AIR

Once we have segmented the market, and understood determinant attributes and relatedservice levels, we need to see how we can best position our service in a competitive mar ket.Competitive positioning strategy is based on establishing and maintaining a distinc tive placein the market for an organization and/or its individual product offerings Jack Trout distilledtheessenceof positioninginto the followingfour principles:

1 Acompanymust establish aposition in theminds of its targetedcustomers.

3 Theposition must setacompanyapart from itscompetitors.

4 Acompanycannot be all thingsto allpeople-itmustfocus itsefforts.

Theseprinciplesapplytoanytypeoforganizationthatcompetesforcustomers.Understandingtheprinciplesof positioningiskeytodevelopinganeffectivecompetitiveposture.Theconcept of positioning is certainly not limited to services-indeed, it had its origins in packaged- goodsmarketing-but it offers valuable insights by forcing service managers to analyze their firm'sexistingofferings and toprovidespecificanswerstothefollowingsixquestions:

1 Whatdoes ourfirmcurrentlystand forin the mindsof currentandprospectivecustomers?

2 Whatcustomers doweservenow,and whichones wouldweliketotarget inthe future?

3 Whati s t h e v a l u e p r o p o s i t i o n f o r e a c h o f o u r c u r r e n t s e r v i c e o f f e r i n g s a n d w h a t m a r k e t segmentsis each onetargeted at?

5 Howwelldocustomers inthechosen targetsegmentsperceive ourserviceofferin gsasmeetingtheirneeds?

6 Whatc h a n g e s d o w e n e e d t o m a k e t o o u r s e r v i c e o f f e r i n g s i n o r d e r t o s t r e n g t h e n o u r competitiveposition within our target segment(s)

Positioninglinksmarketanalysisandcompetitoranalysistointernalcorporateanaly-sis.Fromthese three, a position statement can be developed that allows the service organization toanswersis questions for developinganeffectivepositioningstrategy.

Marketanalysisaddressessuchfactorsastheoveralllevelandtrendofdemandandthegeographic location of this demand So following to this theory, Vietjet Air focuses much onyoung, dynamic customer segments and first- time flyers, middle-income people, they have ahobby of exploring, traveling often at a reasonable cost Most of vietjet air's customers arethosewholike to innovate, create, like to connectto others,…

Vietjet Air has abundant and large human resources, which include a total of about5092 qualified, outstanding, experienced young, active, and enthusiastic employees.Vietjethasalsobeencontinuouslyhonouredwithmanyprestigiousinternationalawardssuchas"Asia'sBestEmployer Brand", top500 "Asia'sLeading Brand",and theworld’s50best airlinesfor healthy financing VietJet is able to obtain marketknowledge as well as provide computerizedinformation for suppliers, customers,… Vietjet Air has always done a good job in motivating.Vietjet has been rewarded for unrelenting commitmentsand efforts ininvesting in humanresources,improvingwell-being and engagementof employees.

VietjetAirwillexpandflightroutesanddistributionchannelsgloballyaswellasconnecting withmorethan446differentairlineswithinAmadeusnetwork.InVietnam,VietJetalsohas astronglocaldistribution throughanetworkof1,300 localagents.

Aboutfinance,financialresources,duringtheperiodofinfluencebyCovid-19,Vietjet'sstrategies and solutions to optimize cash flow are always the top priority.Vietjet Air hasoptimizedworkingcapitalandcashflowthroughthedeploymentofcomprehensiveandadvancedc a s h f l o w m a n a g e m e n t a n d p a y m e n t i n t e g r a t i o n s o l u t i o n s b a s e d o n m o d e r n technologyplatforms of leadingbanks.

Vietjet Air has the lowest cost per unitof products inboth Asia and the world The revenuefrom in-flight services alsocontributes more than 23% of Vietjet’s revenue, this factor has ledtothesuccessofVietjetAir.AccordingtoVietjetAir’sfinancialreport,inthefirst6monthsin2019, thepre-tax profit of Vietjet Airreached2398billion VND,while that of thebrand’sbiggestdomesticrival– VietnamAirlines,wasonly1650b i l l i o n VNDwhenfollowingLCCmodel.

InVietnam,Vietjetonlyhastocontendwithtwodomesticrivals:thestate- runVietnamAirlinesanditslow-costarm,JetstarPacificAirlines.Vietjet currentlyoperates60Airbusjetswith more than 385 flights daily within Vietnam and to countries and territories such asmainlandChina,HongKong,Japan,Malaysia,Myanmar,SouthKorea,Singapore,TaiwanandThailand.

Picture2: Scaleand thelevelflight route coverage

Airfares of VietJet Air are extremely cheap, especially these two airlines often havesurprisinglycheapticketdiscountsforcustomers.Therefore,ifyouwanttotraveleconomically ,youshouldpayattentiontohuntforcheapflightticketsfromJetstarPacificandVietJet Air.

AirfaresofVietnamAirlinesarequitestable,therearenodeepticketdiscountsandasmanyas the two airlines above. Although the ticket price of Vietnam Airlines is much higher thanthat of Jetstar Pacific and VietJet Air, it still retains its position and reputation in the hearts ofcustomers Many people choose to go to Vietnam Airlines because of the perfect servicequality.

Vietnam Airlines impresses customers with professionalism, traditional costumes, andflightattendantswithgentleanddiscreetuniforms.VietjetAiragainaffirmsitsbrandwiththedynamism andyouthfulnessof itsstaff.The airlineownsafleetofmorethan45aircraft.

Besides, while most of the full-service carriers depend on travel agents or thesalesoffice to sell the ticket, Vietjet Air focuses on the internet, SMS, and credit card sales Ticketbooking and sales can be made by telephone; it is simple and cost-effective. Vietjet Air alsoprovides online check-in which allows passengers to check-in their flights with any devicesthatcan connect to theInternetand access to its website.

There are 2 things that need to be considered: one is its novelty, measured by theoriginality of the “big idea” and the freshness of the strategy used to approach the customer;andanotherisitseffectiveness,whichistheamountofawarenessraisedbythestrategyamongitsc ustomers, regardless of negativeorpositive responses.

The Y-asis shows that “Respect” in this positioning map is the reputation and publicimage of the brand in the customers’ perception The X-asis indicates “Preference” is used toindicatecustomers’tendencyof choosinganairline over others:

- Jetstar – the first low cost airline in Vietnam, has made a good impression oncustomers’perception.

- VietJet’scurrentmarketingandPRstrategiesdonotreceivegoodresponsesfrom the general public and the media, this airline still reaches a high level of preferencefromthecustomers becauseof thecompetitive price.

PRODUCTSTRATEGY

Aproductstrategyisahigh-levelplandescribing whatabusinesshopestoaccomplishwith its product and how it plans to do so This strategy should answer key questions such aswho the product will serve (personas), how it will benefit those personas and the company'sgoalsfor theproduct throughout its lifecycle.

- Skyboss class: This is the ticket class with the highest fee among the airline's ticket classes.That'swhyithasspecialoffers.Passengerscanchangetheflightdate,flighttime,changename,have thebest seat arrangement and use thefree vip lounge,and have priority check- inprocedures.Buyingaticketofthisclass,duringthelongflight,passengerscanenjoyfreefoodanddrinks on the plane,andhavetheirown shuttle bus toand from theplane.

- Deluxeclass:Deluxeticketclasscomeswithmanyflexibleandconvenientutilities.Withthisticket class, passengers are allowed to change the flight date, time, flight sector or upgrade forfree (surcharge for fare difference if any) and charge + price difference if changing the nameof thepassenger.

- Ecoclass(main):Thisisanormaleconomyticketclass,that'swhyitisthebest-sellingticketclass, passengers also have the right to change flight time, flight date and change name. butwiththeconditionthatthereisafee.Thedifferencebetweentheseatclassesandticketclassesof Vietjet Air for this cheap flight ticket is suitable for the economic conditions of mostVietnamesepeople The serviceis also veryphoto qualityandattentive.

- Promo class: This is the cheapest promotion ticket class of Vietjet Therefore, when bookingthis cheap flight ticket, the services that come with it also restrict passengers from changingtheir name and refunding tickets, changing their flights, flight time, flight date and flightitinerary,but with afee fee.

Each Vietjet ticket class has different prices and service quality, customers can easily chooseaccordingto their own needs.

Services are usually defined with reference to a particular industry based on the coresetofbenefitsandsolutionsdeliveredtocustomers.Thecoreproductisthecentralcomponentthatsupp lies theprincipal, problem-solvingbenefits customers seek.

Transport services of VJA solve the need to move a person or a physical object fromone location to another, management consulting should yield expert advice on what actions aclientshould take.

- Eco or Economy is a normal economy ticket class when there is no Vietjet promotion.Therefore,duringtheperiodwhenthereisnopromotion,Ecoisthemostpopularairlineticket classofVietjet Air.

- For this class of seats, Vietjet Air does not offer free meals for passengers You can choosefroma wide varietyof meals and drinks on the menu.

- This ticket class saves costs for customers because it does not include other services.Therefore,customers are freetochooseotherservices accordingto their needs.

These services augment the core product, facilitate its use and enhance its value andappeal to the customer's overall experience Core products tend to become commodified as anindustrymaturesandcompetitionincreases,comparedtothesearchforcompetitiveadvantageoften emphasizes supplementary services Adding supplementary elements or increasing theirlevel of performance should be done in ways that enhance the perceived value of the coreproductand enable theserviceprovider tochargeahigher price.

- Food and beverage service: The food and drink menu on Vietjet Air flights is quite diverse.Notonlythat,thedishesarealsoveryelaboratelycooked.VietjetAirprovidespassengerswith9 hot dishes And 20 instant dishes created by 5-star chefs on the menu Besides, Vietjet Airalso serves desserts, bottled water, various kinds of drinks milk, fruit juices such as orangejuice, lemonade, watermelon or not to mention coconut water There is also instant coffee orcoffeeprepared byaprofessional bartender.

- Checked baggage service, which is one of the most popular and highly appreciated servicesfrompassengers.Thisisausefulservicethathelpscustomerscarrymanyitems,equipmentfortheir trip, travel, and resort Regarding luggage, VJA divides it into 2 types of hand luggageandcheckedbaggage,witheachtypehavingcompletelydifferentregulationsonquantity,sizeandw eight.

- Air travel alone with children from 12 to under 14 years old unaccompanied by adults ondomesticflights.

- VJA'sservicetoassistpeoplewithdisabilitiesinflying:VJAacceptstoprovidethenecessaryequipmentto transport up to 8 peoplewith disabilities on oneflight.

- Insurance services of VJA: TravelCare Travel Insurance is provided by ACE Insurance Co.,Ltd.through linkingwith Vietjet'ssystem, focusingon meetingthe needs ofcustomers.

- Ithelps decidetheexact stepsto betakenin anyeventto maketheproduct a success.

- A product vision is formed thereby setting the product on an independent path with a time totimeintervention allowingthecompanyto focuson multiple products in ashort time.

- The translation quality of ticket classes has not been clearly differentiated This makescustomers tend to choose low-priced tickets because the quality is similar to higher- pricedtickets.

- Thequalityoftheattachedservicesisalarminglypoor.Specifically,whencustomers'luggagewassearched, VJA staffrefusedto accept customers withdisabilities.

The most available solution for VJA at the moment is to improve and improve servicequalitytobecomea"delicious-nutritious- cheap"airline,whichmeansthatalthoughthepriceischeap, the serviceis not inferior to otherairlines. otherairlines.

- Abouttheorganizationsystem:ImprovetheregulardelayofVJA.Eventhoughweknowthatin the process of providing services,there will be unexpected incidents and errors Butcurrently, VJA is the airline with the highest flight delay rate This is for customers who arequiteconcerned whenchoosingVJA's services.

- About the service staff: There have been many times when VJA is a newspaper that wastesink when employees do not respect customers Specifically, refusing to serve disabled people,lookingdownoneconomyclasscustomers.AndthishasaverybadeffectontheimageofVJAintheeyes ofcustomers.VJAshouldtrainandimprovetheexpertiseandserviceattitudeofitsstaff Then, VJA should admit that there was a mistake in the service attitude of employees tothemedia Nextis acommitment tothecustomer thatthesamesituation willnot happen.

PRICINGSTRATEGY

Price is the required amount of money that customers spend to buy a product or servicewithacertainquality.Howtopriceproductsisalwaysaconundrumformostmarketersbecauseitisvery difficulttocontrol.Priceschange,fluctuateveryquicklyand areinfluencedbymanyinternalandexternalfactors.Makingthewrongdecisioninpricingwillhaveman yconsequences: customers are skeptical about the quality of the product or feel it is not worththe money, ruin the brand image, or simply reduce sales Pricing is not just about comparingthe prices of competitors in the same segment and then offering similar prices, it is a processthatcombinesmanyrelevantfactors.SowithVietJetAir,whatistheirpricingstrategy,wewillclarify.

“Cheap"istheleadingpricingstrategythatVietJetAirstillmaintainsuptothepresent time.Todothat,VJAappliesstandonthreefoundationsstrategies:

“Once the pricing objectives are understood, we can focus on the pricing strategy. Thefoundationsunderlyingpricingstrategycanbedescribedasatripod,withcoststotheprovider,competitors pricing, and value to the customer as the three legs (Pic ) In many serviceindustries, pricing used to be viewed from a financial and accounting standpoint, therefore,cost-pluspricingoften wasused.”

To get such a "breathable" price for passengers, VietJet must also find ways to optimizecosts Currently, they only operate narrow-body aircraft A320 and A321 This is a line thatspecializes in serving short routes (5-6 hours of flight), helping VietJet save a large amount ofoperating costs as well as meals and rest for the flight crew because it can turn around manyflights,savemoney.savefuelcosts(15%)becauseitisanadvancedaircraftwithayoungage.Instead of calculating the cost of luggage and food service together with the fare, VietJetseparates to serve passengers who really need it.Moreover, Vietjet applies online ticket salesvia website or phone Reduce marketing costs,commission costs for agents, ticket printingcosts,…

Togivecustomersmorechoice,somebusinesseshavecustomizedanoriginalproduct/service into multiple versions, usually ranked from the lowest value to the highestvalue version In this case, all versions are collectively referred to as the product line Basedon the increasing value of products/services, businesses will also set corresponding increasingprices.

VJA, like other airlines, applies this strategy, dividing air tickets into different classes. Atthe time of its establishment, VJA operated 3 ticket classes on flights including: Skyboss (themost premium class), Eco class (equivalent to the economy class of other airlines) and Promoclass(cheaptickets,promotions).forever).ButsinceJune2020,PromoclasshasbeenreplacedbyDeluxe class, with serviceincentives as shownin thetablebelow:

Free30Kgand01setofgolfclubsu nder 15 kg(ifany) Free20 Kg Must buymore

• Must cancel and rebook anewTicket,Chargefornamech angeandFaredifference(ifany)

• Must change the name fortheentireitineraryintheTic ket

• Only applicable for ticketspurchasedinitiallyasSk yboss,notapplicableforupgradetic kets

Allchangesmustbemadeandcompletedatleast3hoursbeforethescheduleddepartu retimeofthe flight to bechanged.

Passengersmustcancelthereser vedseat03hoursbeforethe scheduled departure timeindicatedontheticketornotifyt hecancellationtoVietJetviatheca llcenter,the ticketo f f i c e o f V i e t j e t n o

• FullTicketFeesarenon-refundable later than 72 hours after thescheduled departure time oftheflighttoRequestaRefun doftheTicketIdentifier

• Reservation of Tickets forup to 02 years from the dateoffl ig ht c a n c e l l a t i o n f o r reservation

• Passengersmustnotify atleast24 h ou rs before thedepa rturetime ofthe firstflight sector bay

• Reservationof F a r e foru pt o 1 8 0 d a y s f r o m th e d a t e o f flightcancellation forreservation

The principle of the intrusive pricing strategy is that the business will apply the lowestpossible price when launching a product or service to the market with the goal of capturing asmuchmarket shareas possible.

Table 4: table of ticket prices of VietJet Air compared to Vietnam Airlines,

TicketClass Hà Lội DaLat ĐaNang

By minimizing costs, VietJet ensures to provide value to customers at the cheapestprices in the market today Moreover, since the beginning of operation, VietJet has played asignificantpartinbringingtheoverallcostofVietnam'saviationindustrytoamorereasonablelevel

VietJet Air is an airline that effectively applies this method In addition to the vouchersand discount codes launched continuously, there is also the program "Hunting 0-VND ticketsto fly around Vietnam" open for sale in the 12-14h time frame After applying taxes and fees,theticket priceis still halforeven 1/3cheaper than regularbooking.

VietJet also designs promotional programs suitable for each event, at different times, toattract consumers The most recent is a 77% discount program for passengers traveling fromHanoion 7/7.

Picture7:77%discount programfor passengerstraveling fromHanoi on7/7

VJA's main customers are from 18 to 30 years old, young, dynamic, proficient and oftenuse high technologies, this target group is ready to experience a new product or service. Thelow-cost strategy is therefore very attractive to this group of customers Besides, there aregroups of customers who will measure the net value of the service before deciding to use it.“When customers evaluate competing services, they are generally supplement comparing therelativenetvalue, amarketercanincreasethe valueof aservicebyaddingbenefits tothe coreproductand byservices”.

Before VJA, Vietnam only had foreign airlines and state-owned airlines VietnamAirlines.Vietnam Airlines positions itself in the high segment, favoring enjoyment, so it is oftenexpensive The communication to customers that VJA focuses on core values,strengthens thequality of core products such as: 7 * safety certification, professional, youthful team hascontributed to the customer's psychology strong, give them a suggestion of an airline thatmeets their corevaluesexcellently,thepriceis thereforecheaper

Theappearanceofanumberoflow-costairlinessuchasBambooAirways,JetstarPacific,etc forced VJA to react to these competitors Reducing costs is now a race Pricing based oncompetitors easily puts us in a dangerous trap, worse, it can drag the profitability of the entireindustryto verylow levels even at risk of loss.

- ThestrategyisreasonableandsuitabletotheeconomicandsocialsituationofVietnam:people'sincomei s nothigh andthereis an increasingdemand forair travel.

- Unique pricing strategy, contributing to creating a unique brand for the business.AccordingtoCAPAcalculations,thebrandrecognitionlevelofVietjetAirinVietnam has reached 98% The pricing strategy has contributed significantly to the company'sstronggrowth and absolute brandrecognition in the minds ofcustomers.

- The strategy spans many price segments, giving rise to conflicts between segments.Thisleadstoasituationwheretherearemanypricesbutcustomersstilldon'tknowwhichonet ochoose.

- It is the low-cost strategy that has created doubts in customers, adversely affecting thecustomer'sdecision to usethe service.

- The low price easily turns into an excuse for customers to complain when somethinggoeswrong.Forexample,theflightisdelayedduetotheweathersituation,butcustomerswillt endto complain becauseof thelow price, poor service, frequentdelay.

Relying too much on cost minimization to maintain low prices carries some risks. Forexample, when fuel prices are high, or when more maintenance activities are involved thanusual,it will haveahugeimpact on profits.

- VietJetAirhasaveryhighlevelofbrandawareness,businessescanthinkaboutcuttingcostsforcommuni cation, in order to reducecosts andavoid losses.

- In order to have a reasonable price policy, VJA needs to calculate the total cost customershavetospendwhenusingtheservice.Thatis,whenusingVJA'sservices, howmuchtimeandmoney do customers have to spend compared to rival companies Designing processes andhelpingcustomers saveis also bringingmorevalueto customers.

- Try to meet the commitments of the business made in the communication campaigns, let thecheappricebean advantage, not an excusefor doubt.

If you mention distribution, many people are likely to think of moving boxes throughphysical channels to distributors and retailers for sale to end-users In services though, oftenthere's nothing to move Experiences, performances, and solutions are not physically shippedand stored Meanwhile, informational transactions are increasingly conducted via electronicchannels How then does distribution work in a services context? In a typical sales cycle,distribution embraces three interrelated flows, which partially address the question of what isdistributed:

• Information and promotion flow:distribution of information and promotion materialsrelatingtotheserviceoffer.Theobjectiveistogetthecustomerinterestedinbuyingtheservice

• Negotiation flow:reaching an agreement on the service features and configuration, andthetermsoftheoffer,sothatapurchasecontractcanbeclosed.Theobjectiveistoselltherighttouseaservice (e.g., sell areservation oraticket).

•Productflow:manyservices,especiallythoseinvolvingpeopleprocessingorpossessionprocessing, require physical facilities for delivery Here, distribution strategy requires thedevelopment of a network of local sites For information-processing services, such as

Internetbanking,distancelearning,broadcastnews,andentertainment,theproductflowcanbeundertaken viaelectronicchannels,employingoneormorecentralized sites

SupplementaryServices:Seat selection,Pre-orderedfood,Luggagetransport,Duty- freeproducts,Travel insurance, Web Check-in, KioskCheck-in,…

- Throughw e b s i t e , c a l l s e r v i c e , s m s , v a r i o u s a d s ( n e w s p a p e r , m a g a z i n e s , t e l e v i s i o n ) , employees(Marketing, Sales &Reservationemployees).

Specialrequestsreg.mealpreferences,specialamenities forelderlypeopleorchildr en,medicalneedsetc.

Trong số các đường bay mới mở, Vietjet ưu tiên mở tuyến quốc tế Tính đến tháng9/2017,Vietjet đã mở 12 tuyến quốc tế trong khi chỉ mở thêm 2 tuyến bay trong nước. Hiệnnay, trong tổng số 76 đường bay của Vietjet, đã có tới 38 đường bay quốc tế chiếm 50% tổngsốđườngbayvớitổngsốgiờbaynhiềuhơnnộiđịa.ĐâychínhlàlợithếcạnhtranhcủaVietjetAir.Tínhđến tháng5/2019,Vietjetthựchiện hơn 400chuyến baymỗi ngàyvàđãvận chuyểnhơn80triệulượthànhkhách,với113đườngbayphủkhắpcácđiểmđếntạiViệtNamvàquốctế.

PHYSICALEVIDENCEMANAGEMENT

PhysicalEvidenceisunderstoodasthelocationandenvironmentwherecustomersbuyand consume products It is the environment in which the company and the customer interactin the exchange of products Initially, this was most relevant to service products, but the linehas become blurred between service products and physical products Companies that deal inboth service and physical products want to control the physical proof of their products, as itcontributesto theoverallcustomer experience.

It is a way to control and add value through the presentation of intangible elements oftheproduct.

This is the location and surrounding factors that the customer is in when the product isconsumed This is an essential component of Physical Evidence Because it can set thoughtsandmoods and is ahighcontributor toperceivedvalue.

• Ticket counters and check-in areas: the main locations are large and small airportsacrossthecountrysuchasTanSonNhat,NoiBai,PhuQuocairports,etc.Intheticketcounterarea, the Vietjet Air ticketing area will is a separate area from other airlines, in addition, at thecheck-inarea,therewill beVietjetAir's ownstaff to serveandguideenthusiastically.

• Lounge: Vietjet has a system of modern and luxurious lounges at airports servingSkybosspassengers.Passengerscanrest,relax,exchangework,meetpartnersinaseparateandfully equipped space such as a private screen providing information about the flight, a richbuffet and a bar, newspaper/magazine. newspapers, free wifi and other amenities for businessand leisureneeds.

• In-flight service: comfortable seats that can be adjusted when sitting and lying down,richanddiversemenuincluding9hotdishes,instantdishes,richsnacksandmorethan20kindsof hot drinks and Different cold Asian and European style prepared by chefs from 5 starrestaurants.Inaddition,aspecialthingisthatVietjetalsoservesbothvegetablesanddietdishesaccordingto theneeds ofcustomers.

• In-flightentertainment:Inadditiontoequippingscreens,booksandmagazines,Vietjetregularly conducts a number of entertainment activities and exchanges with passengers onboard such as Carnival dance, Gangnam style dance, etc wedding on the plane,… with theparticipation of famous artists In addition, on major holidays such as Tet, Vietjet organizesevents to distribute lucky money, distribute fortune at the beginning of the year, Christmasgifts,gifts forwomen and children, etc.

This is a component, acting in conjunction with the physical environment This is how theenvironmentis set up.

• Ticket counter: as mentioned before, the ticket counter of Vietjet Air will be arrangedseparately with a distinctive red background to attract the attention of customers as soon astheyentertheareainsidethe airport.

• Ontheplane:withacapacityofupto100peopleinwhichtheseatsarearrangedintworows with a total of six rows, three rows on each side are numbered from left to right withcapitallettersArespectively.–B–C– aretherowsrightneartheentranceoftheaircraftuntilD – E – F inside In addition, there are 3 areas on the plane with different prices to suit theneedsofeachcustomer:thefrontseatingareaisforVIPguestswiththebestquality,seatswideand very comfortable, followed by the regular row area, in this area the legroom will besomewhat more limited than the red seats, and need to be aware that this area is usually a bitnoisy and more likely to cause intoxication because the rear rows are closer to the plane'sengine, so during take-off and landing, there is often shaking combined with the noise of theaircraftengine.

This is another component of physical evidence This is an important factor in how customersperceive your business Sometimes, brands are in other areas of the marketing mix However,it does have a definite place in the physical evidence as brands contribute to the intangibleaspectsofthecustomerexperience.Thus,brandinghelpstoestablishthecustomer'sperceptionof your product For the airline Vietjet Air, which is already extremely famous with domesticcustomers,isthefirstprivatelow- costairlineinVietnamwithayoung,dynamicandprofessional staff Not only that, the airline often gives passengers promotions for 0 dongairfaresinthegoldenhourfrom12to14o'clock.Itcanbeseenthatthe"cheap"factoristhe bestfactortoattractcustomerstouseitsservices,itseemsthatwhenitcomestocheapairfares,only Vietjet Air is the more appropriate choice than ever over In addition, the airline has apolicyofeasyticketexchange,namechange,anditinerarychangewithafee.Currently,VietjetAir is rated as the second best low-cost airline in Southeast Asia The airline also offers a lotofimpressiveservicestomakecustomersmostcomfortableonflights.Withcontinuousefforts,Vietjet Air is currentlyalow-cost airline trusted bymanypassengers

This is an important component of physical evidence You want your customers to know thatwhen they use your product, what to expect and get in return Therefore, consistency allowsyoutoperformabovethatexpectation.Consistencyhelpstoreducealargepartoftheriskwhena buyer uses a new product As a result, a purchase is more likely to happen the first time aswellasthenext. VietjetAir'sconsistencyisreflectedin allaspectsandis consistentfromstartto finish:

• Main colors: red and a bit combined with yellow, these are the two main colors thatVietjet has always used since its inception until now It appears from the logo, paint color ofthe plane, the official website of the airline, staff uniforms, airplane seats and all printedproducts such as airline tickets, posters, banners, etc Because of this, the general invisiblecreatedGivecustomers a deep impression ofthecompany

• Main slogan of the airline: "Flying is like right away!" With thoughtful and concisecontent, it seems to be popular everywhere, from tangible printed items to such invisiblecampaigns,advertising, and marketingforbrands.

• This "cheap" factor is also a decisive factor when customers choose its services. Itseemsthatwhenitcomesto"low- costairline",themajorityofcustomerssubconsciouslythinkofVietjetAir, thisisalso theairline'sgreatest successinbuildingbrandconsistency.

This is important in setting the customer's mood It can include a number of factors such as:lighting,music,clothing,employeeattitudes,andmanyothercomponentsofexternalevidence.

• Clothing:asoneofthemostbeautifulandattractiveairlineuniformsintheworld,withthehighlight ofthenewredshirtandplaidshorts,VietjetAirbelievesthatthisoutfitwillbringanewfeeling.andadyn amic,youthful spaceforpassengersonalongflight.Thisuniform model was inspired by European designers from the uniforms of "cadet soldiers" in the oldnational guard team The uniform consisting of a calorie hat, a red shirt, and a youthful anddynamicplaidshorts,wornbytheairline'sflightattendants,enhancesthebeautyfullofvitality,aspiration,yout handstrongfaith.ListisalwaysreadytoconquertheskiesofVietnamandtheworld.VietjetAiruniformsare verypopularwithforeigntourists,becausetheycanfindahintof luxury, modern British style in the outfit of a Vietnamese airline. Besides factors such asmodern aircraft fleet, friendly and professional crew of pilots, flight attendants, advanceddistribution channels, economical fares It is these costumes that have gradually won manysympathyfrom customers.

• Employeeattitudes:Inaddition to the standards of staff service attitude that arefriendly, sociable and serious at work, the positions that have a direct influence on thecustomer'sperceptionarepilotsandflightattendants,Vietjetalwaystrainandselectinamuchmore specialized way, they must always ensure the standards set by the company So whenflight attendants and pilots serve passengers, it will be very different, for example, alwayssmiling properly, service attitude is always positive, soft spoken, timely and agile handling ofsituations,…

• Passengerservices:Thisisalsoanextremelyimportantfactorforcustomersandairlinesthat is the customer's luggage, the staff as well as the flight attendants are always responsiblefor the customer's luggage Their task is to carry and move the luggage to the right place andto the customer at the right time, if there is any problem with the luggage, the airline staff ismore or less affected so this is what Airline employees are required to do their best from thetimeofpickinguppassengers fromtheairporttothetimethecustomer leavestheairport.

• Flightsupportequipment:thisisoneoftheairline'sdirectserviceproductpackagesthatcometocustome rsfromseatsthataredesignedtohelpcustomerssitorliedownatwill,menusThe food on the plane must also ensure a certain quality, the toilet on the plane, althoughsomewhat limited compared to the ground, still ensures sufficient hygiene, or is useful as theguide of the flight attendants about medical equipment, emergency exits, etc must also beclear.

PEOPLE

Among the most demanding jobs in service businesses are the so-called frontline jobs.Employees working in these customer-facing jobs span the boundary between inside andoutside the organization They are expected to be fast and efficient in executi pera tional tasksas well as courteous and helpful in dealing with customers In fact, frontline employees are akeyinput for deliveringservice excellenceand competitive advantage.

Therefore,behindmostoftoday'ssuccessfulserviceorganizationsstandsafirmcommitmenttoe ffectivemanagementofhumanresources(HR)includingrecruitment,selection, training, motivation, and retention of employees Organizations that display thiscommitment understand the economic payoff from investing in their people These firms arealso characterized by a distinctive culture of service leadership and role mod cling by topmanagement.Itisprobablyharderforcompetitorstoduplicatehighperformancehumanassetscomparedt o anyother corporate resource.

4.7.1.2 Service employees as a source of Customer Loyalty and CompetitiveAdvantage

From a customer's perspective, the encounter with service staff is probably th mostimportantaspectofaservice.Fromthefirm'sperspective,theservicelevelsandthewayserviceis delivered by the frontline personnel can be an important source of differentiation as well ascompetitiveadvantageServiceemployeesaresoimportanttocustomersandthefirm'scompetitiveposi tioningbecausethefrontline:

• Isacorepartoftheproduct.Often,theserviceemployeesisthemostvisibleelementoftheser vice, delivers theservice, and significantlydeterminesservicequality.

• Istheservicefirm.Frontlineemployeesrepresenttheservicefirm,andfromacustomer'spers pective, theyarethefirm

• Isthebrand.Frontlineemployeesandtheservicetheyprovideoftenareacorepartofthebran d The employeesdeterminewhether thebrand promiseis delivered.

• Affectssales.Servicepersonneloftenarecruciallyimportantforgeneratingsalescross-sales,and up- sales.

On entering the market with only the first 3 aircraft, Vietjet's fleet has grown to morethan 40 aircraft so far The company said that it has prepared very carefully so as not to facedifficultiesin human resources.

VietjetAircurrentlyhas154pilots,303flightattendantsincludingforeigners,30flightoperators and 260 technical personnel VietJet's human resources are mainly in aviation suchasmanagers,pilots,aircrafttechnicians,flightdispatchers,groundservicestaff,flightattendants , etc domestic and foreign training In addition to human resources with aviationexperience, Vietjet also recruits input from universities, colleges, and other aviation traininginstitutions at home and abroad These employees will continue to be trained according to thestandardsoftheaviationindustryatVietjet'strainingcenterbeforejoiningtheoperationchain.Therefore, Vietjet's human resources are selected from more than 30 different countries, fullymeetingthecapacityandexperiencein theaviation industry.

Onaverage,thisairlinereceives1aircraftpermonthandneedstoprepare10pilots,18flightattenda ntsforA320aircraftand23flightattendantsforA321aircraft.Fromthebeginningof2016uptonow,theair linehasreceivednearly600pilotapplications,over3,000flight attendants From the beginning of 2016 up to now, the airline has received nearly 600pilot applications, over 3,000 flight attendants With the goal of building Vietjet into a globalmultinationalairline,havingmanyforeignemployees(pilots,flightattendants,technicalstaff)isi n linewith Vietjet's goals and development orientation.

The costume is also another outstanding highlight that attracts many customers both athome and abroad, the costume with the main color is red symbolizing the color of the flag ofVietnam.Vietjet alwaysbringsgoodwill to customers:

• Wearskin-coloredsocks(ifany), donotwear socksof othercolors

Vietjet'sonlineflightbookingserviceisquitesatisfiedbycustomers,fastandaccurate,savingtime ,therearealwaysmanyreceptionstafftohelpcustomersbookticketswheneverviaphonenumber Vietjet Air boxoffice19001886.

In addition to fierce competition with national airlines and other brands such as JetstarorAirAsia,VietjetAirisgraduallyassertingitspositioninthemarket.VietjetAir'ssuccessisprimarily dueto its wisebrand positioning.

On 3th July, Vietjet signed a comprehensive cooperation agreement with Amadeus - aleadingtechnologypartnerinthefieldofglobalaviationandtourism.ThroughAmadeus'agentnetwork, Vietjet will provide information on products, services, and promotions on domesticand international flights operated by Vietjet. Through Amadeus' agent network, Vietjet willprovide information on products, services, and promotions on domestic and internationalflights operated by Vietjet The parties will complete the connection in the shortest time Inaddition, Vietjet also chooses the Amadeus e-ticketing system to manage additional servicesservingmarkets in Vietnam and other countries intheregion

The birth of the private low-cost airline Vietjet Air has marked a strong developmentof the low-cost airline industry in Vietnam, now people with low incomes can still travel byair This is really foreign to them Vietjet Air is receiving a lot of love from customers.Currently,thecompanyis providingsomespecialservices asfollows:

To meet the needs of air travel for all passengers, Vietjet Air also provides basictransportation services at the most reasonable cost to customers for the additional service thatwill be served according to their needs customer needs, such as dining, management or seatselection,…

• Recognizingtherisingtrendofsocialnetworks,mainlyamongyoungusers,VietjetAirintegratesde eplyintoZalosothatuserscanbooktickets,check-in,andtrackschedulesquicklyand efficiently This is also one of the factors that brought Vietjet's strong boom in the pastyear.

• Hot meals cost about 50,000 VND for breakfast, lunch, and dinner such as: crab stir- fry, mixed fried rice, rice cake, fried noodles, spaghetti, etc For combo 1 A hot meal with adrink costs about 65,000 VND Besides, Vietjet also serves instant meals such as instantnoodles,instantnoodlesoup,and instantnoodle soupwith thepriceof30,000 VND/serving.

• Vietjet Air not only serves bottled water and milk The airline also serves passengerstraveling on flights with fruit juices such as orange juice, lemonade, watermelon or coconutwater.Thereisalso instant coffee,but alsocoffeeprepared byaprofessional bartender.

• PassengerstravelingonVietjet Airflightsarenotonlyservedwith theusualamenitiesbut also can buysouvenirs at extremelycheap prices.

• OnVietjetAir'sflights,thereisextremelyfastandqualitymedicalserviceduetotakingcare of passengers who have health problems or are affected by the sudden change in theenvironment However, flight attendants will not provide injections or other medical services.Flight attendants support professional cases Therefore, passengers, if they are in love afterspecialservices,itisasiftheyhavetocontactthe goodsinadvanceto be arrangedseparately.

Althoughthequality ishighly appreciatedbycustomers,thisairlin e has encounteredm any negativecomplaints suchas:

• Thereareconsecutivescandalsoccurringwithadenselevel.Recently,VietJetAirwasaccusedofr efusingtoprovideservicestopassengerswithdisabilities.Specifically,afemale passenger with disabilities booked a round-trip ticket and boarded a VietJet Air flight fromHanoito DaNang, however, when shecheckedinto Hanoi, theairline refused.

• The staff points directly to the face and throws the luggage of the guest to the ground.Theincidenthappenedwhenpassengersontheflightarrivedearlybutwerestillforcedtowaitin line for too long, leading to a delay He was asked to pay the penalty fee, so angry, the twosidesexchanged words.

• The customer complained that her belongings were searched when she departed fromThailand airport to Noi Bai on May 23, she lost all her expensive clothes and was worth up to20million VND, making the passengersangry.

It is necessary to focus on developing and improving the quality of the staff, havingmore policies on rewards, insurance, security facilities such as insurance, appropriate NewYearholidaysandannualleave,periodicalsalaryincreases,identifyingaccordingtoability…