PROJECT REPORT BUSINESS ECONOMICS NEW PRODUCT EPIONE AND EPIONE PRO LAUNCHING AND SILICONZ MARKETING STRATEGY

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS …… ***…… PROJECT REPORT BUSINESS ECONOMICS NEW PRODUCT EPIONE AND EPIONE PRO LAUNCHING AND SILICONZ MARKETING STRATEGY Group - Case Study Class: KTEE312(GD2-HK1-2223).2 Lecturer: Dr Hoang Ngoc Thuan Ha Noi, 12/2022 MEMBER ASSESSMENT Member Student's ID Assessment Phan Bui Minh Anh 2113550007 Complete assigned work well Le Dam Nhi Linh 2112550025 Complete assigned work well Dieu Hieu Minh 2113550016 Complete assigned work well Vu Thu Ngan 2113550017 Complete assigned work well Le Phuong Quyen 2111510070 Complete assigned work well Le Khanh Thu 2111520070 Complete assigned work well Mai Ha Vy 2113550021 Complete assigned work well TABLE OF CONTENTS A RESEARCH I Category - Market volume and growth rate II Competitor III Product 10 B MARKETING PLAN 12 I Customer Persona 12 II 4P Strategy 14 III Objectives and KPI 20 IV KPIs ( for quarter) 21 V Deployment Plan 22 VI Channels 22 VII Budget 27 PROJECT REPORT: NEW PRODUCT EPIONE AND EPIONE PRO LAUNCHING AND SILICONZ MARKETING STRATEGY A RESEARCH I Category - Market volume and growth rate Ergonomic office chair is mainly used in various companies and businesses where employees operate in a sitting position for long hours The seat is adjustable, supports and provides a natural sitting posture, which helps to minimize back discomfort and strain during long periods of sitting Nowadays, offices are choosing ergonomic office chairs over standard office chairs to make the workplace healthier, happier and improve everyone's work productivity Growing workforce, growing concern about employee health and well-being, rising obesity awareness, increasing number of workplace injury complaints globally are important drivers for the growth of the ergonomic office chair market The outbreak of the COVID-19 pandemic has had a partial negative impact on the ergonomic office chair market The government's enforcement of the shutdown restricted the movement of consumers out, leading to the complete closure of the business and education sectors As a result, the demand for office chairs has gradually decreased in these areas Market segments − Popular segment: Models under VND 5,000,000 (Sihoo, Xiaomi HBADA, ) − Mid-end segment: Types that priced from 6,500,000 - 16,500,000 VND (GTCHAIR, ) − High-end segment: Over 20,000,000 VND (Herman Miller) Analyzing the impact of the Covid-19 epidemic on the market The production process of office chairs has become a challenge for companies due to limited labor resources, interrupted raw material supply and logistics problems The increased demand for office chairs in households as consumers are confined to their homes leads to a shift towards remote working This shift in working conditions has increased the demand for ergonomic office chairs as consumers want a suitable setup to work long hours Consumers don't want the comfort and compromise of their performance by using an ordinary office chair Market Impact Factors The corporate industry is one of the most prominent in the market Businesses from all over the world are entering the corporate sector leading to a skyrocketing demand for office chairs Ergonomic office chairs are an important piece of furniture that supports employees and helps improve work performance High-altitude office chairs are hindering the growth of the office chair market as consumers are in a dilemma of whether to invest or not to invest in tall chairs High-altitude office chairs are forcing price-sensitive customers to decide to buy an ordinary lowrise office chair Price-sensitive customers are willing to give up Growing concern about employees' health and well-being is affecting their performance at work Concerns about the health and well-being of employees are encouraging them to look for alternatives Work chairs are gaining popularity among employees, as the chair has lumbar support and employees can work for hours sitting on it comfortably Although it is anticipated that the ergonomic chair market will grow, limitations including range of motion limited high price are believed to hold back its growth Ergonomic chair market trend forecast − Companies are partnering with multinational companies (MNCs) to promote their products Manufacturing businesses partnering with MNCs to expand sales It is a technique through which employees use chairs at work and they may decide to buy office chairs for their families if they feel its advantages Remote working became popular and it is now part of the daily routine of employees following the arrival of the COVID-19 pandemic − The evolution of the chair is expected to attract more consumers Ergonomic chairs offer maximum benefits to employees, providing additional functions, such as large armrests, cool vibration- distance, heating pad and other functions These new features are likely to be a game changer in the ergonomic office chair industry, with growing appeal All employees enjoy comfort, which contributes to employee productivity − Multi-channel strategy favors the growth of the ergonomic office chair market Customers are choosing more convenient forms of buying office chairs by switching to e-commerce purchases The lack of transparency of details and inconsistent pricing are influencing consumers to make purchasing decisions As the world is moving towards digital business and almost all transactions take place on digital platforms It is an opportunity for companies to interact with consumers who realize their desires A clear message about product details and appropriate mention of price without any hidden fees will drive customers to purchase − Growth by Region Region market The Asia Pacific accounts for the highest share of revenue and is expected to maintain its dominance over the forecast period The growing number of industries and the increasing number of employees in the countries of the region are the key factors driving the growth of the Asia Pacific ergonomic office chair market The North American market is expected to record a significant growth in the global market, due to the increasing health consciousness of individuals in countries in this region Source: Allied Market Research Regional growths - The global office chair market is estimated to reach USD 13.4 billion by 2022 and is expected to reach USD 22.4 billion by 2032, growing at a CAGR of 5.1% from 2022 to 2032 The office chair market accounts for 7% of the total office furniture market by 2022 and is expected to grow as people restore their office work as COVID contagion fears ease The office chair market is expected to gain an absolute $8.9 billion USD opportunity during the 2022-2032 assessment period - The Asia Pacific region market accounts for the highest share of revenue and is expected to maintain its dominant position over the forecast period The growing number of industries and the increasing number of employees in the countries of the region are the key factors driving the growth of the Asia Pacific ergonomic office chair market - The North American market is expected to record a significant growth in the global market, due to the increasing individual health consciousness in countries in this region General statistics about Vietnam market in 2022 - Reported revenue of Ergonomic chairs on e-commerce platforms reached more than 72 billion VND in 12 months and increased by more than 18.2% compared to the last quarter According to the market assessment, business shops can sell at popular prices from 1,000,000 VND to 4,000,000 VND The most distributed and best-selling Ergonomic Chair brands are Sihoo, Xiaomi, etc - The number of products sold from November 1, 2021 to October 31, 2022 is 57,110 II Competitor COMPETE THE ADVANTAGES OF ERGONOMIC SHEET BRAND IN THE MARKET Herman Miller Founded in 1927 in the US, Herman Miller is known as one of the leading furniture manufacturers in the US, including ergonomic chairs The Herman Miller brand's ergonomic chair is very diverse with extremely high-class ergonomic chair products that are trusted by many people around the world with deep customization, supporting finetuning the standard sitting posture for each body shape different people sitting Herman Miller's ergonomic chair product lines are used by many people, including big businessmen, movie stars, etc As a high-end product line, Herman Miller not only meets all the essentials of a set of ergonomic chairs, but also demonstrates the superiority of product quality, high-quality materials, and elegant design STRENGTH - PRODUCT DESIGN: + Newly Remastered yet iconic design, helping users to sit in the correct posture and most comfortable when sitting + The seat and back cushions are made of Herman Miller's exclusive new Pellicle breathable mesh, providing ideal comfort and air circulation + Adjustable Posturefit SL Support (ALP) backrest provides spine support + Custom 4D PU armrest: high, deep and corners (with leather armrest upgrade support) + Adjustable height, and all seat recline angles – back and forward + Floor wheels (upgraded from the default carpet wheel) + Currently, Herman Miller has released millions of products each year and has many different models such as Herman Miller Aeron, Herman Miller Embody, WEAKNESS Disadvantages of Herman Miller Ergonomic Chairs: - High PRICE (24 → 45 million/sp): this is definitely one of the things that makes users "headaches" because Herman Miller's ergonomic chair models are all very good It is among the most expensive ergonomic chair models in the world - PRODUCT DESIGN: + No headrest: Herman Miller does not produce the included headrest, if necessary, you have to order it through a 3rd party for a price of 3-5 million VND, which is quite "bitter" + The lifting and reclining system is quite inconvenient, you have to reach down to adjust it With another high-end chair, you can adjust it right under the shelf to make your hands much more convenient GTChair GTChair is one of the famous companies in China specializing in manufacturing office furniture and especially ergonomic chairs GTChair ergonomic chair products are distributed in many countries around the world and appeared in the Vietnam market in recent years GTChair ergonomic chair has many different models and prominent among them are GTChair Ivino, GTChair Marrit, GTChair Butterfly, STRENGTH PRODUCT DESIGN: - Sturdy + Chair frame, can withstand large loads + The whole is covered with high quality Korean Wintex mesh fabric, breathable and highly elastic + It is possible to adjust many different positions such as backrest, armrest position adjustment, headrest, seat height adjustment, even in some models, the seat position can be adjusted + The design of the lever adjusts the parts right under the armrest, easy to adjust without bending over, extremely easy to operate - PRICE: Many models in different price segments from 8-17 million for buyers to choose the price that is suitable for the economy WEAKNESS - PRODUCT DESIGN: + Slide the backrest up/down a bit loose, not too sure + The finish in some plastic details in contact with the mesh is not smooth - MARKETING: there are not many genuine distributors in Vietnam, users have to order quite a lot leading to a long waiting time, not much warranty and no replacement parts Sihoo Sihoo is one of the most modern office ergonomic chair brands on the market today with new and modern designs with luxurious and classy style Sihoo Chair office chair is a product manufactured on modern technology lines, combined with advanced production techniques and international standard machinery, so the product fully converges with modern and advanced beauty Sihoo Ergonomic Chair office chair products are loved, preferred and chosen by a large number of customers in the market today for corporate offices STRENGTH usually people between the ages of 18-40 with moderate to high income, specific targeted groups can be: SUB TARGET: PERSONAL Target Demographic - Age: 22 - 40 - Marital status: single, married - Income: Economy class - Occupation: Office workers, individuals who spend a part of the time working from home Psychology - Care about the physical statement - Motivated to be on the track of leading a healthy lifestyle - Use a smartphone to entertain, connect and keep self up-to-date through social media (Facebook, TikTok, Youtube) - Heavily impacted by peers, reviews by others Behavior - Being a high achievers, they try to attain many goals and face physical problems for sitting all day long - They find it hard to maintain a good statement for their physical health - They desire a good physical statement to achieve goals - Purchasing decisions remain driven by consideration of quality and brand attributes - Willing to try new brand with products that is good for their health 13 → These achievers prioritize their physical health They are admittedly unstable in physical health due to various factors, with workload and poor work-life balance accounting for the majority - Obstacle: + High cost + Not understanding the importance of ergonomic chairs to health + Do not think that it’s effective → Assist: Educate them about the effectiveness of ergonomic chairs through marketing on social media where they are highly active MAIN TARGET: BUSINESS - Commerce proprietors who want to progress the quality of the working environment, make keen speculations for their staff by giving high-quality working furniture (this can be a way to boost productivity among employees) - Motivation: Maximizing employee productivity → results - Obstacle: + High cost (by buying in bulk) + Many competing brands (with larger market share) → Help: Raise awareness of Epione brand, highlight the USP of Epione chair to beat competitors II 4P Strategy PRODUCT Epione always understands and wants to bring products with the best value in terms of quality and service 14 How will customers use the product? Products have international quality: Standing in the position of customers, Epione always wants to bring Vietnamese products with the best quality and most reasonable prices to users The Epione team has worked with international partners to deliver a quality product following the most advanced technologies Epione has boldly combined with leading partners in the market to form an ergonomic chair with extremely high-class details such as: Class Piston from Samhongsa Korea, Shrinx Tech Krall & Roth Mesh from Germany, Donati resistance set from Italy… Products are designed to fit Vietnamese users: Epione team are young people who always put themselves in the position of Vietnamese customers to design and create the most suitable chair From the flexible headrest according to the adjustment to suit the user's height the most Until the design of the seat can move forward and adjust the tilt angle to suit the user's leg length Products are provided with the best customer service: In addition to good and quality products, Epione also provides customers with the best customer service from complete product installation to after-sales policies (On Epione's website, there are slow-motion video clips and detailed instructions on how to install the product at home that anyone can in less than 30 minutes Or when the product is delivered, the customer can ask the delivery staff to assist in the installation and use of the product.) What features does the product need to meet customer needs? ErgoChair Pro is calculated, designed and manufactured to the most rigorous ergonomic standards in the world Vietnamese customers can experience the greatness of Epione ErgoChair Pro with best features supporting them in terms of maintaining a comfortable sitting position, which improves their health and focusing while working Such features include: - ASPA - AUTOMATIC SITTING POSTURE ADAPT SYSTEM: 15 + The 3D design back of the chair embraces the curve of the spine + Self-adhesive mechanism when moving forward, can recline 16 degrees - TRUE TILT MECHANISM: + The True Tilt mechanism allows you to precisely calibrate both angle and tension Help you completely relax after hard working hours + The tilt of the seat is synchronized with the backrest, ensuring you are always in the most comfortable position - TENSION CONTROL MECHANISM: + Helps to accurately adjust the resistance of the chair back, confident to use in all cases, optimal for all bodies - 3D HEADREST: + The headrest adjusts flexibly, creating a stable, comfortable support for your head and upper spine - 2D ADJUSTABLE SEAT: + Optimal for any sitting postures + Help you have the most comfortable sitting position - 4D HANDREST: + Flexible adjustment to suit your typing posture while working + Effective support for your arm during work - SHRINX TECH KRALL & ROTH MATERIAL: + SHRINX Tech from Krall&Roth - Germany + Meets 190,000 Martindale durability standards 16 + Standard 100 OEKO - TEX - Skin-friendly - MULTIFUNCTION “MACHINERY STATION”: + The “machinery station” is considered the heart of the chair For a chair to operate and be accurate and durable requires a healthy heart So I put my trust in the Italian Donati controller + The adjustment modes are diverse and 90% more optimal than products on the market - PISTON CLASS SAMHONGSA: + Class is one of the highest standards for Piston + Meets TUV and BIFMA standards (means your company's products have attained the requirements of safety, quality, and sustainability) - ALUMINUM CHAIR LEGS: + Strong and durable What are the differences between the product and the competitors? Epione is a pioneering brand for Vietnamese users while most competitors import different types of product lines of ergonomic chairs or produce chairs that meet the demands of European and American consumers For example, Ergo Chairs of Herman Miller have no headrest: Herman Miller does not produce the included headrest, if necessary, you have to order it through a 3rd party for a price of 3-5 million VND while Epione chairs are designed with flexible 3D headrests that can adjust to suit the Vietnamese user's height the most PRICE Are your prices higher or lower than your competitors? 17 There are competitors with higher prices but also there are some with lower prices The market segments include: Popular segment - Models under VND 5,000,000 (Sihoo, Xiaomi HBADA, ); Mid-end segment - Types that priced from 6,500,000 - 16,500,000 VND (GTCHAIR, ); High-end segment - Over 20,000,000 VND (Herman Miller) However, with such quality and customer service, we offer a price that is reasonable for both our company and our customers Should a discount be offered to a specific customer segment? Our target customers are office workers, employees working from home from 22 - 65 years old, businesses who want to progress the quality of the working environment for their employees The businesses can be the customer segment suitable for a discount offer as a policy served when businesses buy products with large numbers The perceived value the company can bring? SiliconZ can meet the main benefits to effectively higher the perceived value of the products: - Morphological benefits: All products including Epione Ergonomic Chairs have exquisite, luxurious design, suitable for all your workspaces - Functional benefits: In addition to good and quality products, Epione also provides customers with the best customer service from complete product installation to after-sales policies - Time benefits: SiliconZ provides customers with a website that can save time for searching and ordering, pre-ordering products The company also provides chatbot and hotline for customers to contact easily to serve every needs of them - Location benefits: Epione products can be experienced and ordered in different stores in big cities like Hanoi, HCM City, Da Nang, Can Tho 18 - Ownership benefits: The company has detailed and suitable policies related to shipping and warranty PLACE Where can the customers find the products? The company has its own website with all the information included about the products, prices, policies that can help customers reach out to buy the products The places that customers can experience products and purchase are the sales system of SiliconZ and its customers as well as stores specializing in technology across Vietnam In Hanoi, there are Thinkpro, GearVn, TNC, ErgoHome, In HCM City, there are Broshop, TminsStore, MaxpingGear, SiliconZ, In Danang, there are Anh Duc Digital stores In Can Tho, there is a Nguyen Vu Store Is the location you choose convenient for your customers? Stores are located in big cities around Vietnam so customers can easily find and experience the products directly PROMOTION Which marketing method will you choose? Online: - More development to improve the website to be more attractive to customers in both designs and content: + Having more posts on Epione being the pioneer brand for Vietnamese users as this is a strength of ours + Adding more pictures or videos of customers experiencing products (on the current website there are mostly images of only the products) 19 - Develop Youtube and pick some Youtube short videos to post on Tiktok (nowadays Tik Tok is one of the most popular platforms for customers to know about the company and products) - Facebook, Instagram Offline: - Let the customers experience ErgoChair in real life in Showroom in HCM City and plan to set up a place in some technological fairs organized around Vietnam What promotional activities you apply? Discount offer for specific customer segment: businesses purchasing Ergonomic Chairs for their employees III Objectives and KPI General Objectives: Specific: - Making the Epione and Epione Pro ergonomic desks and chairs popular among office workers and people whose jobs require long hours of sitting in front of a computer - Monthly revenue growth Measurable: - Increased quarterly revenue by at least 20% Achievable: - As one of the prominent names in the ergonomic furniture market, distributed through SiliconZ's store and the company's customers (ThinkPro, GearVN) There 20 are many price segments, the design has advantages compared to products in the same segment Therefore, it will easily become popular and the company's revenue will also increase rapidly Relevant - Make the product in the top brands of ergonomic chairs worth using in Vietnam Time Bound - Goals to be achieved by December 2023 IV KPIs ( for quarter) Leads Criteria Information KPI Qualified Website 10,000 customers Lead ( IQL) Email 10,000 customers Tiktok 30,000 customers Facebook 30,000 customers Influencer Marketing 20,000 customers Tech Fairs 500 customers Marketing qualified lead 10,000 customers (MQL) 21 Sale- qualified lead (SQL) 5,000 customers Products: - The number of products sold each quarter must reach at least 5000 products + Epione ergonomic desks and chairs: 3000 products + Epione pro ergonomic desks and chairs: 2000 products V Deployment Plan Marketing Deployment Plan (Click to view details) VI Channels main marketing channels, including online and offline marketing forms: Website Email Online TikTok Facebook (fanpage) Influencer Marketing Offline Tech Fairs 22 a Website ● Purpose: Improving the identity of the website and the product, and introducing comprehensive information about the firm to create absolute trust for customers; collecting databases for the business while promoting speedy customers’ response receipt ● Action plan: - Promote USP - Investing in SEO and Google Ads to have products and website information appear in the top 1, top 2, top positions of Google so that those who have the intention of searching for keywords will reach the website - Maintaining the connection with potential customers: + Inviting customers to provide information with the registration form to receive notifications when new content is available Once having email information of potential customers, continue to connect with them and provide various values through a decent content chain + Re-reaching potential customers who have visited the website because today's advertising systems like Facebook, Google, etc can connect to the website and record users’ behaviors on the web As a result, businesses can quickly inform customers about attractive content + Ensuring customer-business contact by positioning the business phone number displayed in a visible location on the website's interface, and an instant call button on mobile devices Add a chat bar on the screen because there are customers who are not willing to make calls or have a need to communicate via chat 23 b Email ● Purpose: Providing information about products and promotions, especially targeting the right potential customers to create reputation for the brand while maintaining relationships with customers, creating a loyal customer group for the brand The target of this channel is people who actively choose to receive email notifications from the firm ● Action plan: − Collecting database and email marketing list by inviting customers to provide email via website (Through Floating Form that appears in the sidebar, navigation bar, or below the footer of the website and 'floats' along with user to ensure that users can always find the form and CTA easily without any discomfort) − Increasing email marketing list with lead magnets through special offers and discounts (eg Subscribe to receive a 10% discount on your next order) − Receiving customer information through offline fairs − Promoting products, sharing promotions with loyal customers, updating subscribers on new and important information… c Facebook ● Purpose: Introduce the brand and its products to customers, helping the business reach the right target customers, targeting the right advertising audience and being an effective communication tool with customers ● Action plan: − Fanpage content structure: + Posts for branding and products selling: 24 + For branding posts: Posts revolve around the formation and development of products and the brand, + For selling posts: Targeting to create contents about promotions, discount policies, etc to attract customers − Posts for sharing information and knowledge about product’s technology: + Targeting to focus on knowledge related to product mechanisms (ATLAS mechanism, ASPA self-adaptive mechanism), the product's correlation with solving health problems that has been receiving a lot of attention; information about manual, delivery policy and warranty… − In addition, promoting product and brand seeding on related groups (Ergonomic chairs, office furniture groups, ) − Running Facebook Ads on newsfeeds of users whose behaviors correspond to the firm’s customer profile d TikTok ● Purpose: Introducing TikTok users to the brand and its products ● Action plan: − Running In-feed Ads by Epione's existing TikTok account − Cooperating with credible technology influencers/reviewers on TikTok to increase product reach and customer’s trust − Content: + Educate about Epione's products + Office-related content (Working tools, skills set, working method 25 + A day at TechFair e Influencer Marketing ● Purpose: − Collaboration with influencers to raise brand awareness + Field: lifestyle, productivity, education, bloggers/vloggers, technology + Influencers’ image have to fit with the brand’s image ● Some of the recommended influencers − The Present Writer (Youtube, Instagram) − The Hanoi Chamomile (Youtube, Instagram) − Thach Trang (Youtube, Instagram, Tik Tok) − Sunhuyn (Youtube Instagram) − Giang oi (Youtube, Instagram, Facebook) − Something With Mia (Tik Tok, Instagram) − Tân cú ● Action plan: − Upload content related to topics such as work productivity, ergonomic, healthcare, etc and cue the introduction of the Epione's products in − Influencer marketing is generally more effective for the fashion and beauty field with products that not cost much and the TA are mostly youngsters As the target audiences are overall more mature plus the products are not necessity and are costly, TA have the tendency to buy only after careful research and consideration 26 → Emphasize on the long-term benefits of the products, the competitive price compared with other competitors f Tech Fairs ● Purpose: Creating opportunities for customers to receive direct advice and experience products to increase credibility for the brand and products, as well as opportunities for the firm to create direct contact with consumers to capture their psychology ● Action plan: − Registering booths at technology fairs to reach customers and introduce products and brands − Consulting and giving customers free trial at the booth − Providing minigames/Asking customers to provide information or check in (if desired) to receive gifts or discount vouchers VII Budget MARKETING BUDGET (Click to view details) 27 ... 22 VII Budget 27 PROJECT REPORT: NEW PRODUCT EPIONE AND EPIONE PRO LAUNCHING AND SILICONZ MARKETING STRATEGY A RESEARCH I Category - Market volume and growth rate Ergonomic office... of Epione brand, highlight the USP of Epione chair to beat competitors II 4P Strategy PRODUCT Epione always understands and wants to bring products with the best value in terms of quality and. .. quarter must reach at least 5000 products + Epione ergonomic desks and chairs: 3000 products + Epione pro ergonomic desks and chairs: 2000 products V Deployment Plan Marketing Deployment Plan (Click