International marketing of Vinfast, chiến lược 4P tại thị trường Đức đối với sản phẩm xe ô tô Điện ĐẠI HỌC UEH TRƯỜNG KINH DOANH KHOA KINH DOANH QUỐC TẾ MARKETING Tiểu luận kết thúc học phần QUESTIONS 1 3 points (maximum limit of 1500 words). Vinfast electric cars have new plans to enter the German market. If you are the leader of this campaign, please choose the entry mode to join that market and explain why? QUESTION 2 4 points (maximum limit of 3500 words). With the situation in question 1, come up with a 4Ps strategy. QUESTION 3 3 points (maximum limit of 1000 words). What are the various factors that influence product adaptation in new markets? Give the examples.
MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH BUSINESS SCHOOL INTERNATIONAL BUSINESS - MARKETING DEPARTMENT FINAL EXAM INTERNATIONAL MARKETING Tutor: PhD Đỗ Thị Hải Ninh Student name: Nguyễn Thị Diệu Linh Student ID: 31201022035 Class no: 22C1MAR50309605 TP Hồ Chí Minh, ngày 14 tháng 12 năm 2022 TABLE OF CONTENTS QUESTIONS Evaluate factors influencing international market-entry strategy I External factors Porter’s five forces industry and competition analysis II Entry mode QUESTION 10 Product strategy 10 I Product attributes 10 Branding 11 Product support service 12 II Price strategy 12 III Place strategy 14 Distribution model 14 Distribution channels 14 IV Promotion strategy 15 Promotion plan 15 Marketing plan 16 QUESTION 18 Economic Factors 18 I II Social factors 18 Buyer Preferences 18 Cultural Considerations 19 III Legal factors 19 IV Environmental Factors and Commercial Infrastructure 20 V Competitive Factors 21 REFERENCES 22 QUESTIONS points (maximum limit of 1500 words) Vinfast electric cars have new plans to enter the German market If you are the leader of this campaign, please choose the entry mode to join that market and explain why? Answer: I Evaluate factors influencing international market-entry strategy External factors 1.1 Political factors The Act on E-Mobility (Elektromobilitätsgesetz) of 2015 is the cornerstone of Germany's mobility strategy Municipalities are able to designate parking spaces for electric cars that are more advantageous and charge them less Additionally, it adds new road signs and specific license plates that identify the vehicle's electric powertrain and its qualification for a certain set of benefits The statute allows electric vehicle (EV) to be exempt from traffic regulations, which might be important in the ongoing discussion over pollution standards To encourage the usage of electric vehicles, the government has created a variety of tax concessions Currently, they are subject to lower tax rates for the first 10 years following registration and are free from car taxes during that time According to the 2018 coalition agreement reached by the new government partners, taxes on electric corporate cars are already reduced and will be decreased to half the ordinary tax Additional tax benefits include exemptions for the employer's provision of charging stations or power On November 7, 2016, the Bundestag passed a law with the support of the Bundesrat that exempts benefits provided by an employer in the form of charging electric or hybrid automobiles from income tax Tax exemptions are also given for grants to use these charging devices as well as for the charging devices that are given to the employee for free or at a reduced cost The Federal Government's market incentive program to enhance electric mobility in road transportation is supported by these tax regulations The interim arrangements are in effect from January 2017 to 31 December 2020 1.2 Economic factors Plug-in electric vehicles now account for 24.3% of sales in Germany, the continent's largest auto market, up from 22.1% year over year Over 21% YoY and over 40% less car volume overall than pre-pandemic seasonal averages were recorded Although broad economic pressures are hurting both the supply-side and demand-side, supply chain interruptions and cost increases were mostly to blame for the poor performance Early in May, the federal ministry of economics reported that the production of automobiles decreased 14.0% in March, along with a larger decline of 6.6% in the production of capital goods Ifo Institute surveys of car manufacturers revealed a further deterioration in mood from March to April as a result of additional increases in energy and raw material prices Additionally, automakers stated that they would pass on greater prices to customers, which would reduce demand With increased gasoline prices, German buyers who are still able to purchase a new car are probably looking more closely at plugins than ever before Therefore, there is no issue with plugins having a higher relative demand than other powertrains The volume of demand for all powertrains may be lower than it otherwise would be owing to the state of the economy, but plugins should be least affected because of the benefit of avoiding gasoline costs 1.3 Technological factors The gigafactory, which is close to the municipality of Grünheide, is Europe's biggest facility for the manufacturing of electric vehicles and has a potential workforce of 12,000 workers It was at the time the largest foreign direct investment in eastern Germany since the collapse of the Berlin Wall and has already attracted German and worldwide automotive suppliers to the area Long-term, charging infrastructure development for electric vehicles is more crucial than short-term headline adoption rates With a market share of 40%, Norway now leads the way in terms of electric vehicles, but Germany has the know-how to create completely standardized electric car charging options, allowing it to lead Europe in encouraging the adoption of electric vehicles On the production side, there are actors in the supply chain and OEMs, while on the other side, there are auto dealers, leasing firms, and actors who provide infrastructure (such charging stations), repair, and maintenance 1.4 Legal factors The Decree on Charging Stations (Ladesäulenverordnung) of 2016 established the legislative guidelines for the installation of public charging stations by outlining the technical requirements and attempting to guarantee compatibility A total of 25,264 charging ports are available at 8,515 charging stations in Germany as of February 2018— an increase of around 2,000 stations since the decree's implementation Operators of charging stations must approve charging on a case-by-case basis without previous verification (so called e-Roaming) The Federal Network Agency (Bundesnetzagentur), which publishes the information on a public map, is required by the order to receive operators' reports of the locations of charging stations Charging stations are to be recognized as ultimate consumers under energy law, according to the Act on the Further Development of the Electricity Market (Gesetz zur Weiterentwicklung des Strommarktes) of 2016, and are therefore exempt from any operator duties under the applicable rules The 2011 Energy Industry Act made certain crucial adjustments that gave smart grids a legal foundation in terms of data security, data privacy, and energy legislation Prerequisites were established for grid charges to be decreased if electric cars are utilized to support the grid as part of the reform of the Energy Industry Act (in German), enabling a reduction in the cost of charging The Electricity Market Act's classification of electric car charging stations as end-users greatly enhances the legislative climate for the development of a needs-based charging infrastructure and provides investors with legal certainty In this approach, investors from many industries and with a wide range of goals will support the construction of charging stations in an environment of fair competition The operation of charging stations is exempt from tight grid regulations, and this will prevent a monopoly from developing in this area The operators of the charging infrastructure will only have the absolute minimal responsibilities under energy law 1.5 Environmental factors Nevertheless, climate supporters anticipated a more pronounced shift in policy, including tougher penalties for buying carbon-emitting automobiles, because Germany's Greens were a part of the new coalition The deal does not specify whether the 6,000–9,000 euro ($10,099.80) subsidy for electric vehicles will be renewed after 2025 The agreement said that the current tax on the use of gasoline, heating oil, coal, and natural gas, which raises the cost of automobiles with combustion engines, will not be raised Porter’s five forces industry and competition analysis 2.1 Threat of new entrants The threat of new entrants is high, as the barrier of entry is low Chinese companies dominate the EV start-ups, including Nio, BYD, XPeng, and Li Auto They have a better competitive advantage because of their access to the biggest consumer market, well-established supply chain, and government support 2.2 Bargaining power of suppliers Due to the small size of the supply chain network, suppliers have high negotiating leverage 2.3 Bargaining power of buyers The bargaining power of buyers is high As Vinfast’s segments its products at the medium market with affordable pricing 2.4 The threat of substitutes The threat of substitutes is high The marketplaces are saturated with start-ups, while the major automakers have a strong client base 2.5 Industry rivalry among competitors The industry rivalry among competitors is intense, from start-ups, traditional automakers, and big automotive brands switching to electric II Entry mode In an official announcement made on October 1st, 2021, VinFast Trading And Service Limited Liability Company and AUTOBEST, the oldest automotive rating organization in Europe, expressed their shared commitment to accelerating the shift from internal combustion engine (ICE) vehicles to environmentally friendly electric vehicles in the European market VinFast may benefit from the expertise of AUTOBEST, a group that represents the opinions of European consumers in the automobile industry, in determining the demands and purchasing patterns of local consumers By forming a strategic alliance with VinFast, AUTOBEST will benefit from increased assistance in achieving its goal of accelerating the shift in Europe from internal combustion engines (ICE) to electric motors Frankfurt, Paris, and Amsterdam are home to the three VinFast offices for Germany, France, and the Netherlands Opening a VinFast headquarters in each region is intended to deliver the best level of service to every client, guided by a thorough comprehension of each nation's unique requirements VinFast has hundreds of people in place throughout its European launch areas to support its ambitious expansion, and they have a variety of experience working for major car manufacturers and market-specific knowledge In the upcoming months, VinFast also intends to enhance this statistic VinFast's strategic alliance with AUTOBEST and involvement in sustainable development initiatives confirm its steadfast and well-considered plan to collaborate with the most prominent international organizations and to help create a greener, smarter, and more sustainable world QUESTION points (maximum limit of 3500 words) With the situation in question 1, come up with a 4Ps strategy Answer: I Product strategy Product attributes 1.1 Quality: The goal of VinFast's automotive manufacturing process is to produce high-class vehicles that provide its clients exceptional value As a result, they consistently manufacture high-quality goods Many comments on automotive forums hold that VinFast vehicles are of high quality, even when compared to German or American automakers In particular, a well-known driver claimed that the Lux SA2.0 has a quality that is equivalent to 85% of a BMW in the same class, but costs just 45% less "If you are a wise shopper, then you should purchase VinFast," he said What then determines the quality of cars? VinFast manufactures the engine, chassis, and bodywork in accordance with BMW technology under the direction and supervision of BMW specialists Other components, like as the box, are supplied by other well-known manufacturers throughout the world ZF serial numbers, Bosch equipment Additionally, the vehicle has passed hundreds of the toughest tests conducted by renowned European testing facilities 1.2 Features While Japanese automobiles prioritize durability and German cars focus on luxury and sporty styling, VinFast makes a statement with its own ideals Their guiding principles are: World-class quality is achieved by combining the top global automakers to produce vehicles that adhere to high standards High-end features that cater to clients' current lifestyles are what add the most value Partners in commerce: establishing connections between users and the Vingroup ecosystem to guarantee VinFast owners long-term value and satisfaction With pricing that fall in the center of those for German and Japanese automobiles, VinFast wants to provide the driving pleasure of Germany and the dependability of Japan 1.3 Style and design: Together with the renowned automotive designer Pininfarina, VinFast gives each automobile type a high-class design aesthetic VinFast automobiles, which adhere to the bio-touch experience ethos, have a distinctly opulent exterior and futuristic interior that have been meticulously designed However, VinFast vehicles, particularly VinFast sedans and SUVs, combine modernism with well-balanced proportions and unique Vietnamese design innovations Branding 2.1 Logo: The interlocking "V"s of the VinFast logo form a strong link, as if ushering in a new era of advancement This might be considered a clear example of the VinFast logo's symbolism of reaching and growth The VinFast logo conveys the image of a chic and contemporary automotive firm by using a delicate, opulent, and elegant silver tone The silver logo design will be quite noticeable when used in conjunction with red or black automobile colors The text of the VINFAST brand name, which stands out with a glittering silver tone, is located beneath the VinFast logo The VinFast logo has consistently demonstrated the proper standards VinFast's logo is uncomplicated, free of clumsy lines and unnecessary frills, yet it nevertheless communicates a significant idea Regarding the hue of the VinFast emblem, several wellknown automakers worldwide trust it That further demonstrates the caliber of the Vietnamese automaker 2.2 Slogan: The term "Intensity of the Vietnamese spirit" is used by VinFast The motto for VinFast embodies the company's aspiration to build a world-class Vietnamese brand and its objective to rank among the top auto and motorcycle producers in Southeast Asia The tagline likely conveys an uplifting and inspiriting message as part of the effort to spread awareness of the Vietnamese brand worldwide 2.3 Branding strategy: Consumers typically worry about things like price, quality, durability, safety, external design, appropriateness, luxury, and one element whenever they purchase a product The popularity or name is essential VinFast has employed a number of well-known international brands to build value for its brand while also satisfying client demands VinFast initially employed two well-known Italian designers, ItalDesign and Pininfarina, but then offered Vietnamese citizens the chance to choose designs via a referendum This is a really smart business move by 20 VinFast, and customers will undoubtedly be accepting of the designs they select Product support service VinFast always enhances the quality of its services and makes investments in synchronous equipment systems in order to provide consumers the best possible experience Each VinFast service center is properly outfitted with technological equipment that complies with European requirements VinFast has decided that providing excellent customer service is a crucial component of its plan for establishing itself and dominating both domestic and international markets All VinFast service centers follow a structured procedure and provide four major services: warranty, upkeep, repair, and rescue on a round-the-clock basis Customers who visit VinFast's auto repair shop will receive first-rate care II Price strategy The market penetration pricing method is inapplicable to VinFast (cheaper price makes it easier for cars to enter the market) Because Vin is a newcomer to the sector with no reputation or background, VinFast also avoids using the skimming pricing technique (high price) Along with the price approach by market sector, VinFast also fully utilizes its more easily obtainable parking price adjustment criteria At EVS35, VinFast unveiled new sales rules that are only available in European countries, giving consumers an additional reason to join the firm in the worldwide electrified mobility revolution For a smarter, safer, and more pleasurable driving experience, all customers who book VF and VF between June and September 30, 2022, will receive a 1-year complimentary package of VinFast Smart Driving with Level 2+ Advanced Driver Assistance System and Smart Services suite A complimentary home delivery service will also be provided, along with a thorough handover by an expert in electric vehicles, allowing consumers to get to know their VinFasts extremely well In order to provide customers as much options as possible, VinFast has revealed the price information for the VF and VF as well as their battery subscription plans for the Dutch, German, and French markets A attractive subscription rate insurance that is permanently attached to the vehicle for the duration of its life will be available to forwardthinking consumers who buy the VF and VF in 2022 and 2023 VF Eco Battery Battery VF Plus Battery Battery VF Eco Battery Battery VF Plus Battery Battery version version version version version version version version €43,600 €43,900 €50,500 €50,800 €58,200 €58,650 €63,150 €63,600 The price listed above includes both product costs and selling costs With this pricing, VinFast declares its ambition to reach a broad audience with top-notch goods so that we can all work together to create a Vietnamese brand This is a legitimate action that complies with all price restrictions and is intended to draw customers in the beginning VinFast can still go back to the original selling price, though, if necessary In appreciation of pioneering customers, VinFast will apply the battery subscription policy for 100% of the EVs sold until the end of 2023 From 2024 onwards, approximately 50% of VinFast electric vehicles sold will be applied with the battery subscription policy, the remaining 50% will be sold with batteries as market practice III Place strategy Distribution model In the spring, VinFast plans to begin selling fully imported electric vehicles in Germany, France, and the Netherlands from its facility in Hai Phong, Vietnam Similar to Tesla, it will sell products online and through company-owned storefronts rather than through licensed dealers However, Thuy said in the statement that "the age of shipping vehicles around the world is finished, especially with COVID-19." "To genuinely draw customers, manufacturers need to be near to the market." Vinfast has thus been preparing to construct a new facility in Germany to aid it in capturing the continental market The German Trade and Investment Promotion Agency (GTAI) and VinFast are collaborating to find a location for Vinfast's electric car plant in Germany According to the 3S structure, VinFast simultaneously offers the following three primary distribution models for the company's own distribution system, which helps to boost productivity and ensure business operations: 1S: Sales 2S: Service and spare parts supply 3S: Services and Parts Sales and Supply Distribution channels 2.1 Distribution channels level For its distribution system, VinFast creates a level distribution channel In particular, the length of the distribution channel is when VinFast employs the distribution system at agents rather than any level of intermediaries in order to carry out operations to bring products and product ownership closer to the end user By accessing and receiving direct consumer input, VinFast can make the best informed judgments possible when it comes to developing its goods while also dramatically reducing the expenses associated with intermediaries services to satisfy client demands In the Vietnamese market, the firm now has more than 200 official showrooms Additionally, VinFast developed its own electronic retail system through the firm's websites and fan page to assist consumers with product deposits, offer services for product selection, or enable clients to look for nearby agents who are linked with the company optimal for guidance and care 2.2 Distribution channels level For its distribution system, VinFast also created a level distribution channel For example, when VinFast simply uses a store as an intermediate (showrooms and distribution networks of partners that VinFast has purchased or licensed), the length of the distribution channel is bringing goods and ownership closer to the final customer IV Promotion strategy Promotion plan In addition to Vinfast's ongoing presence on social networks, forums, and newspapers, some of its usual media operations include the following: - During the first stage of market penetration, Vinfast used KOL "David Beckham" at the Paris Motor Show to generate a boom media explosion - In addition, Vinfast offers "Registration VND," a 3-zero price policy on the first day of introduction, a 10% discount for paying in full up front, and interest-free credit for the first two years for clients who pay In addition, the 5-year installment plan and after-sales assistance aid Vinfast in keeping current clients and even converting them into "brand ambassadors" VinFast wants to encourage its clients to push the envelope and take part in the electric car revolution in order to hasten the development of climate change solutions The VF e35 and VF e36 are two outstanding electric vehicle models These two SUV models provide top-tier features and expectations for security, comfort, and entertainment From the car's amenities to the driving experience and pricing, these cars are fiercely competitive in their class rather than beginning from a point in the value chain of currently available autos This value chain was promptly finished by VinFast VinFast is also able to inspire confidence and a sense of pride in the Vietnamese brand thanks to the meticulous investment in technology However, when the consumer has been tested for testing, all benefits are only available Additionally, VinFast offers a first-rate after-sales service in the Asian fashion as well as a flexible and innovative sales approach Marketing plan • Insight: "I understand the consequences of the environment on the health of myself and the community better than anybody else since I live in one of the cities plagued by air pollution." • Big idea: “Think fast, think green, think Vinfast” The product's function is: Vinfast's electric vehicle goods will demonstrate the spirit of pushing beyond all barriers and aspire to live a better life with consumers, becoming allies in the pursuit of "green living" Phase 1: Trigger Phase 2: Engage Phase 3: Amplify Duration months months year Objective Promote vehicles, electric Vinfast raise vehicles electric increase consumer brand offer the loyalty In order to achieve awareness of them, ideal blend between the objective of "green and pique people's affordability interest in them quality when and living," Vinfast electric it automobiles make it a point to demonstrate the spirit of comes to embracing pushing beyond all barriers a "green" lifestyle with the desire to live a better life Key message A safer, greener, and more effective future for transportation Key hook - Bumper Ads - TVC - KOL sharing - Tham Tactics - PR Event dự Paris - SEO/SEM Motor Show - Sale promotion Social media Social media Offline activation Online articles Offline activation Online activation KOLs: David Social Beckham, Mouth media Word of QUESTION 3 points (maximum limit of 1000 words) What are the various factors that influence product adaptation in new markets? Give the examples Answer: A certain degree of localization or adaptation is frequently mandated by the market-specific political, economic, social, technical, legal, and environmental requirements of a nation I Economic Factors The purchasing power of the target market and the style of life in a nation may both influence whether a corporation has to adapt a product The availability of energy, one's degree of education, and one's money all influence how well a product will in a foreign market A company may discover a market for less technologically advanced product models that have outlived their usefulness in the United States if a nation has a lower standard of living than the United States In certain nations, certain high-tech items are unsuitable due to both their price and their intended application In a nation where employment is a top issue, a computerized industrial washing machine, for instance, can displace people Additionally, many gadgets can require service that is not available in some nations II Social factors Buyer Preferences An exporter situated in a highly developed nation could change its product in response to buyer demands in a foreign market Local traditions, such as religion or leisure activities, can impact whether a product will find a market A product's sensory impact, such as flavor or visual impression, may also be an important consideration For instance, several American businesses have redesigned cartons and packages expressly for the Japanese market in response to the region's high demand for attractive packaging Manufacturers of items like razor blades, cigarettes, chewing gum, ballpoint pens, and candy bars have been known to repackage them in small single units rather than multiple units, which are typical in the developed and more advanced economies, to make purchases of mass-marketed consumer goods in a less developed country more affordable The demands of the consumer should guide the packaging design When designing industrial items, the pack should take into account its intended purpose as well as how easily it can be stored, poured, reused, etc For consumer goods, the pack may serve a variety of purposes, including protection, education, retailing, and compliance with statutory requirements and customer preferences (e.g Americans tend to buy less frequently than Europeans, so the largest size is more popular in the United States) Cultural Considerations Examining the cultural differences between the target customers' home (country of origin) and those in the host nation is crucial when examining the necessity for adaptation or establishing the extent to which adaptation may be necessary The necessity for adaptation increases with the degree of cultural diversity between the two target markets Branding, labeling, and package issues may be influenced by cultural factors and traditions Some people may find certain colors used on labels and packaging to be unpleasant or unsightly You might need to take into account the necessity for product adjustments due to linguistic, legal, and cultural variations The design of the product, branding, labeling, packaging, and service arrangements are a few examples of such alterations The amount of expectation for product warranties varies from nation to nation based on economic growth, business practices, consumer advocacy, production quality standards, and usage frequency and patterns To enter a new market, a corporation may need to offer robust guarantees, especially if the supplier is unproven III Legal factors Other non-tariff obstacles, including product standards, are becoming more common as tariff barriers (tariffs, levies, and quotas) are abolished globally in compliance with the requirements for participation in the World Trade Organization (WTO) Future forecasts anticipate an increase in the number of foreign government product laws already present in international trade The laws governing food additives, for instance, vary from nation to nation Foreign nations may have maximum content requirements for generally recognized as safe (GRAS) additives or may outright forbid them In most countries, secondary or indirect additives are also subject to regulation, therefore documentation is crucial not only for the amount of the additive but also for the product's origin Additives frequently need to be listed in the ingredients section of the label To adhere to the nation's labeling or environmental requirements, your packaging and labeling may need to be changed Many different types of equipment need to be designed in the metric system in order to integrate with other equipment or to meet local norms The United States is essentially the only country that uses a non-metric system, and American businesses that compete effectively on the international market have discovered that selling to foreign clients requires using metric measurements Even maintenance and instruction manuals, for instance, have to be provided in millimeters, weights in grams or kilograms, and degrees Celsius IV Environmental Factors and Commercial Infrastructure It is frequently required for an exporter to modify their product to take local climate and geography into account Energy prices, humidity, and geography are just a few examples of the variables that may have an impact on a product's performance or even how it is used abroad For instance, the infrastructure of a nation and the price of petroleum products may require the development of items with higher levels of energy efficiency The Middle East and other rising regions may need automakers to modify vehicles with various types of clutch systems and hot, dusty conditions from those seen in North America, Japan, and Europe Even manufacturers of shampoo and cosmetic items must chemically restructure their products to make them more suitable for consumers who live in hot, humid areas V Competitive Factors There may not be a need to alter or localize the goods if an exporter can locate a pristine market free of existing and future rivalry This is because potential customers may not have a choice However, in the present market climate, it is quite difficult to identify a nation where there is no competition Domestic, regional, and global businesses are searching the world for items to source and market, which forces the exporter to consider the type and degree of adaption required for different foreign markets REFERENCES https://cms.law/en/int/expert-guides/cms-expert-guide-to-electric-vehicles/germany https://www.bmwk.de/Redaktion/EN/Artikel/Industry/regulatory-environment-andincentives-for-using-electric-vehicles.html https://cleantechnica.com/2022/05/06/germanys-plugin-ev-share-up-to-24-3-economicpressures-mounting/ https://germanyworks.com/news/how-innovation-is-powering-germany-s-electricvehicles/ https://www.reuters.com/markets/europe/german-car-goals-not-tough-enough-protectclimate-ngos-say-2021-11-25/ https://vinfastauto.com/vn_en/vinfast-europes-autobest-enter-new-strategic-partnership https://vingroup.net/en/news/detail/2575/vinfast-announces-plan-to-open-more-than-50vinfast-stores-in-europe https://vinfastauto.com/vn_en/vinfast-reveals-vf-8-vf-9-pricing-details-and-its-batterysubscription-policy-in-the-eu-market https://www.shippingsolutions.com/blog/export-marketing-strategies-to-adapt-or-not-toadapt https://smallbusiness.chron.com/product-positioning-strategy-3350.html https://bizfluent.com/list-6903948-factors-affecting-product-adaptation.html ... States) Cultural Considerations Examining the cultural differences between the target customers'' home (country of origin) and those in the host nation is crucial when examining the necessity for... channels 14 IV Promotion strategy 15 Promotion plan 15 Marketing plan 16 QUESTION 18 Economic Factors 18 I... choose the entry mode to join that market and explain why? Answer: I Evaluate factors influencing international market-entry strategy External factors 1.1 Political factors The Act on E-Mobility