Topic propose a new product to a real business and propose a plan to launch this new product

Untitled FPT UNIVERSITY CAMPUS CAN THO  Group Assignment [MKT101] TOPIC PROPOSE A NEW PRODUCT TO A REAL BUSINESS AND PROPOSE A PLAN TO LAUNCH THIS NEW PRODUCT Name of group me[.]

FPT UNIVERSITY- CAMPUS CAN THO  Group Assignment [MKT101] TOPIC: PROPOSE A NEW PRODUCT TO A REAL BUSINESS AND PROPOSE A PLAN TO LAUNCH THIS NEW PRODUCT Name of group member Contribution (%) Vo Hoang Vu_CS161000 17% Ngo Duc Huy_CE160644 16% Nguyen Thi Hong Mai_CS171008 17% Le Thi Tra Mi_CS170045 16% Bui Nguyen Phu Qui_CS171577 17% Nguyen Minh Nhat_CS171970 17% i 0 TABLE OF CONTENTS I INTRODUCTION…………………………………………….…….1 Current demand for electric vehicles in Vietnam……………… Supply Ability……………………………………………………1 II III METHOD AND CONCEPTUAL FRAMEWORK…………….2 ANALYSIS RESULTS…………………………………………3 Overview of Vinfast………………………………………3 1.1 Company introduction VinFast……………………… 1.2 History of formation and Development………………3 a) b) c) d) e) f) IV V In 2017…………………………………………………3, In 2018…………………………………………………4, In 2019…………………………………………………5, In 2020 …………………………………………………6 In 2021………………………………………………….6, In 2022………………………………………………… 7, 1.3 Branches of VinFast………………………………….8 Analysis of environmental factors impact……………………9 2.1 Microeconomic…………………………….9, 10, 11 2.2 Macroeconomic…………………………… 11, 12, 13, 14 Analyze consumer behavior……………………………….14 3.1 Segmenting………………………………………… 14 3.2 Targeting…………………………………………… 14, 15 3.3 Positioning…………………………………………… 16 4P Factors…………………………………………………….16 4.1 Price……………………………………………………….16 4.2 Product………………………………………………… 17 4.3 Promotion…………………………………………… 17 4.4 Place……………………………………………………18 Media analysis and public relations………………………………… 18 CONCLUSION………………………………………………18, 19 REFERENCES………………………………………………… … 19 ii 0 I INTRODUCTION Current demand for electric vehicles in Vietnam The electric vehicle market in Vietnam is also considered an attractive market with a rapidly increasing number of manufacturers and assemblers of electric vehicle products Data from the Registry shows the development trend of electric vehicles compared to traditional fuel-powered vehicles Although the proportion of motorcycles and electric motorcycles produced in the country accounts for a small proportion, about 7% annually, but maintains a steady growth rate Besides, the import of electric cars by companies into Vietnam has a great growth rate According to the newspaper, the number of imported electric cars in 2020 will increase by about 500% compared to 2019 In recent years, domestic manufacturing companies have participated in the production and supply chain of electric cars It is expected that in 2022 a series of electric vehicle products will be introduced to the market such as buses and cars According to the latest updated data from the Vietnam Register, the number of electric vehicles in Vietnam is still very small, in 2019 there are only 140 electric vehicles, in 2020 it will increase to 900 vehicles and by 2021 there will be more than 1,000 vehicles All of the above vehicles are imported and almost all are hybrids, plug-in hybrids, and battery-powered vehicles account for a very small percentage Supply Ability Vietnam's electric vehicle market is very exciting and competitive between imported and domestic brands - VinFast However, imported electric vehicles are subject to high import tax and excise tax from 15-70%, so this operation will not be sustainable in the future Therefore, electric car products of Vietnamese brands will likely be preferred by customers when they not have to pay too much money for car ownership Although it has not yet resonated with other countries in the region about the use of green vehicles in the environment, the electric vehicle market in Vietnam has great potential for future development Electric vehicles instead of vehicles using internal combustion engines are a global trend in the future Currently, our country's urbanization createsr year, people are starting to have a priori awareness of a better personal life Our country is also looking forward to building smart cities and applying high technology Electric vehicles meet the criteria of a smart city, plus "green lifestyle" communication activities are becoming stronger, making people learn more about environmental protection vehicles [BA1706.Group 2.GA] 0 II METHOD AND CONCEPTUAL FRAMEWORK Vingroup believes that a sustainable business is one that creates long-term value for its partners to ensure its continued development in the future We also aim at providing clean, environmentally friendly products in every business segment, including green transportation, eco-efficient smart living, and essential social services, while ensuring biodiversity preservation Increased environmental consciousness has made it essential for businesses to choose suppliers based on sustainable and green factors This thesis proposes MultiCriteria Decision Making (MCDM) models, including the Fuzzy Analytical Hierarchy Process (FAHP), the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) for data processing and to provide assessment and selection of green and sustainable suppliers in the automotive industry Methods that could be applicable to studies on other topics and used in this analysis to identify a supplier selection approach for the producer In particular, this study uses FAHP to determine the weights of the proposed criteria The FTOPSIS is employed to rank the suppliers This study is outlined by the fact that VinFast describes the value of social sustainability and the automotive sector in Vietnam This thesis is a piece of extensive knowledge of GSCM and sustainable supplier selection Following analysis, results highlight short-term and long-term recommendations from donations of customers to increase collaboration between sustainability businesses [BA1706.Group 2.GA] 0 III ANALYSIS RESULTS Overview of VinFast company 1.1 Company introduction VinFast VinFast (or VinFast LLC; abbreviated: VF, full name: VinFast Manufacturing and Trading Company Limited) is a Vietnamese manufacturer of electric cars and motorbikes established in 2017, with headquarters Headquarter is located in Hai Phong city, led by Ms Le Thanh Hai as Managing Director This company is a member of Vingroup, founded by Mr Pham Nhat Vuong The company name is abbreviated from the phrase "Vietnam - Style - Safety - Creativity - Pioneering" (the letter Ph changed to F) VinFast has a main assembly and production plant located in Hai Phong city, Northern Vietnam The factory covers an area of 335 hectares with a total investment of 3.5 billion USD and is one of the largest industrial projects in this country The company cooperates in technology, engineering, strategic consulting support, and human resource training with the largest global manufacturers of automobiles, spare parts, and heavy industrial equipment such as BMW, Siemens AG, ThyssenKrupp, ZF, SAP, Schuler, Dürr AG, Eisenmann SE, Grob Aircraft and Robert Bosch GmbH of Germany, VinFast has registered with the Frankfurt Business Registration Office to establish a representative office called "VinFast GmbH" in Germany, along with other representative offices in the cities of Melbourne (Australia), and Shanghai (China) Quoc) and Seoul (Korea) VinFast's future goal is to gradually increase the localization rate of components, and move towards technological and technical autonomy, besides, the company will continue to invest in development and expand domestic market share at the same time into international markets About the future product that VinFast can develop is an electric car using "solar energy" technology with the function of "moving to park" in public places It is an extremely creative new step that car manufacturers around the world are always aiming for and Vietnam has VinFast which is researching and developing That modern car is called VinFast SLP (VinFast Solar Parking) 1.2 History of formation and Development The history of the automobile industry in Vietnam is marked by the car named Chien Thang, which was released in 1958 In 1970, Citroën car company released the La Dalat car In 1991, the Mekong Auto assembly joint venture was established In 2004, Thaco inaugurated Chu Lai - Truong Hai Automobile Manufacturing and Assembling Factory, and Vinaxuki was also granted a license to manufacture and assemble automobiles The density of car users in Vietnam by the end of 2017 was 16 cars per 1,000 people The localization rate in cars by the end of 2016 is 15-18% for Thaco's passenger cars, 37% for Toyota's Innova series This ratio is higher for trucks and passenger cars 2017 is also the year in the process of implementing the AFTA agreement to reduce the import tax on automobiles from ASEAN countries to 0% This reduction in import duties resulted in the reduction of domestically assembled vehicles for import, causing a labor surplus in the auto industry [BA1706.Group 2.GA] 0 In 2017: - On September 2, 2017, the VinFast automobile production complex project in Dinh Vu - Cat Hai economic zone was started by Vingroup - VinFast's initial registered business activities are the production of motor vehicle bodies, trailers, and semi-trailers, the production of spare parts and auxiliary parts for motor vehicles and vehicle engines, shipbuilding, and structures flotation facilities, boat building, sports, and recreational boats, and production of locomotives, trams, and wagons - In the following month, the company launched the contest "Choose a favorite car with VinFast" Some of their partners up to this point are Magna Steyr, an Austrian parts supplier, and Siemens, which jointly built the plant and research and development center - Vingroup also signed a cooperation agreement with Bosch on the supply of spare parts, components, software systems for cars and motorcycles, and business management software - In the same month, VinFast announced the two most popular car models voted by consumers in the first phase of Italdesign In 2018: - On January 18, 2018, the company announced that it had completed the model production contract with leading designer Pininfarina and purchased the intellectual property rights from BMW - On February 7, they established the Mechanical and Mechatronics Technician Training Center - On March 8, the enterprise launched a contest to vote for electric cars and small cars "Choose your favorite car with VinFast - 2" with 36 models including 17 electric cars and 19 small cars - In the summer of that year, the company signed a contract to develop a completely electric car with EDAG and established a joint venture factory with Aapico Hitech Company of Thailand - In July 2018, VinFast started recruiting an authorized dealer to sell electric motorcycles and opened a subsidiary in Germany - The following month, the Company signed a contract with Siemens to provide technology and components for the production of electric buses and established Vietnam Grand Prix Co., Ltd with a business line focusing on organizing and promoting events events, exhibitions, conferences, and seminars [BA1706.Group 2.GA] 0 - That fall, the company signed a cooperation agreement with LG Chem of LG Group in the production of international standard batteries for electric vehicles, phones, and other industrial products - In October 2018, the company introduced two models LUX A2.0 of the Sedan line and LUX SA2.0 of the SUV line at the 2018 Paris Motor Show - At the end of the month, VinFast signed an agreement with the Vietnam Oil Corporation to deploy a system of charging stations and renting batteries at petrol and oil trading points nationwide - In November 2018, VinFast inaugurated the eScooter smart electric motorcycle factory and launched the first electric motorcycle product line, VinFast Klara, with versions using Lithium-ion batteries and using Acid batteries- lead In 2019: - On January 15, 2019, the enterprise continued to organize the contest "Choose a favorite car with VinFast - 3" to vote for models of cars with the Pre brand (short for Premium) spanning class A segments, Grade B, Grade C, and Grade D - Next month, the company completed the stamping and welding of the body of VinFast Lux SA2.0 - The Suv VinFast Lux SA2.0 model was officially completed, rolled, and prepared to be tested 155 VinFast LUX cars have been sent for safety testing in 14 countries on continents - Before summer, Vingroup decided to establish VinBus public passenger transport business using electric buses manufactured by the company[127] in a relationship of technology and components with Siemens - Vingroup also signed a cooperation agreement with Viettel to build a network of charging points and exchange electric vehicle batteries at Viettel's business locations - In May, the company conducted a test run of 58 Lux and Fadil vehicles in Vietnam After that, the company announced that Fadil cars met safety standards through test results at GM Korea - In the summer, VinFast inaugurated and put into operation the car factory in Dinh Vu - Cat Hai economic zone - Next month, Kreisel Electric based in Rainbach im Mühlkreis, Freistadt, Oberösterreich, Austria signed a cooperation agreement on battery packaging for VinFast electric cars By the 28th, VinFast has handed over about 200 Lux cars including Sedan A2.0 and Suv SA2.0 [BA1706.Group 2.GA] 0 - In September of the same year, VinFast acquired 51% of AAPICO Hitech's shares in AAPICO VinFast Auto Parts Co - VinFast announced the policy of recalling discarded products in the strategy of preserving the environment At the end of the year, the enterprise sponsored and handed over 393 Lux cars including Sedan A2.0 and Suv SA2.0 to the Material Logistics Subcommittee, ASEAN National Committee 2020 to transport delegates during their visit to Vietnam attend the meeting - In December, the company announced the price list of VinFast Lux and VinFast Fadil auto parts, and the selling price of Ludo, Impens, and Klara S - In 2019, VinFast sold a total of 17,214 units including Fadil, Lux A2.0, and Lux SA2.0 models In 2020: - VinFast revealed information about its intention to expand to Australia - In March, Discovery Channel made a reportage clip about VinFast in particular and the automobile industry in Vietnam in general - Vingroup announced VinSmart factory and VinFast factory to open more ventilator manufacturing fields - Before the summer, the company opened 14 more service workshops, bringing the total number of service workshops nationwide to 54 - In the summer of the same year, VinFast announced the selling price of LG Chem-VinFast Lithium-ion batteries (for VinFast Klara S, Impens, and Ludo electric motorbikes) - VinFast continues to open an office in Melbourne (Australia) with the Institute of Automotive Technology led by Kevin Yardley as director - The company also plans to open an automobile test center in Australia This Vietnamese car company also has the ambition to contribute to the development of the global auto industry by opening a test track for other automakers to freely use - Also in December, male singer Son Tung M-TP combined to launch special versions of VinFast Ludo Mint To Be and VinFast Impens Milky Sky electric motorcycles Năm 2021: - VinFast opens 2021 by announcing electric motorcycles and car lines, including electric cars and petrol cars with the brand names VF31, VF33, and VF33 [BA1706.Group 2.GA] 0 - On February 16, 2021, the Southeast Asia New Car Assessment Program (ASEAN NCAP) awarded VinFast the "New car brand with a high commitment to safety" award - On March 23, VF received an order for the first electric C-segment SUV, VF e34, which is the VF31 model with seats, the engine has a maximum capacity of 110 kW, maximum torque: of 242 Nm , airbags, using a 42 kWh lithium-ion battery with a delivery plan in November of the same year - At the end of March, VF opened 64 more showrooms in 30 provinces and cities in Vietnam In April, VF partnered with NVIDIA to use chips for smart electric vehicles launched in 2022 - In July, VF opened branches in the USA, Canada, France, Germany, and Nether lands On 27th, VG announced the appointment of Michael Lohscheller as General Director of VinFast worldwide - On August 23, VinFast signed a cooperation agreement with Gotion High-Tech to build a Giga factory to produce LFP battery cells - On November 18, VF introduced electric car models VF e35 and e36 at the Los Angeles Auto Show 2021, with the companionship of Supercar Blondie, Nas Daily, Lana Condor, Maria Tran, Sunisa Lee - In November, VF handed over 18 cars including VinFast President and 13 VinFast Lux A2.0 to Lao market dealer Phongsupthavy according to the agency agreement in June 2021 - On December 4, VinGroup transferred the entire 51.52% stake in VinFast to its subsidiary, VinFast Singapore - On December 12 VinFast plans to introduce electric car models e32, e33, e34P, e35, and e36 at CES 2022, and at the same time start receiving price announcements and accepting orders for e35, and e36 In 2022: - VF uses blockchain technology and NFT to distribute electric vehicles VF e35, and e36 to global customers from 2022 - VinFast announced to change of the name of electric cars VinFast VF e32 to VinFast VF 5, VinFast VF e33 to VinFast VF 5, VinFast VF e34P to VinFast VF 7, VinFast VF e35 to VinFast VF and VinFast VF e36 to VinFast VF - At the beginning of April 2022, VF announced its participation in the New York International Motor Show and organized a tour from Ha Long to Sa Vi cape which was recognized as a Vietnamese record for honoring "The most electric car caravan in the world" [BA1706.Group 2.GA] 0 - Also in the same month, VF announced to choice of B-EV Motors as the official distributor in Israel and then introduced new electric motorcycle models using LFP battery technology - VinFast cooperates with Renesas Electronics from Japan in providing components such as electronic systems (System on Chips - SoCs), microcontrollers, analog semiconductors, and electronics - At the 121st Paris Motor Show in 2022, VinFast was awarded the first "Rising Star" award by Autobest (The Rising Star) 1.3 Branches of Vinfast VinFast showroom agents in the North • VinFast Thach That Electric Motorcycle Showroom Address: Highway 21, Hoa Lac Hamlet, Binh Yen Commune, Thach That, Hanoi • VinFast Chuong My Electric Motorcycle Showroom Address: Noi An residential group, Chuc Son town, Chuong My district, Hanoi • VinFast Vinh Thanh Address: 42 Cau Buu, Tan Trieu Commune, Thanh Tri District, Hanoi VinFast showroom agents in the Central region • VinFast Ho Xa Electric Motorcycle Showroom Address: 38A Le Duan, Ho Xa TT, Vinh Linh District, Quang Tri Province • VinFast Huong Tra Electric Motorcycle Showroom Address: 59 Cach Mang Thang 8, Tu Ha Ward, Huong Tra Town, Thua Thien Hue Province • VinFast Hai Chau Address: 115 Nguyen Van Linh, Nam Duong Ward, Hai Chau District, City Danang VinFast showroom agents in the South • VinFast Thuan Nhan Address: 447-447A-447B Cong Hoa, Ward 15, Tan Binh District, City Ho Chi Minh • VinFast 517B2 Dong Khoi Electric Motorcycle Showroom Address: 517 B2 Dong Khoi Avenue, Quarter 03, Phu Khuong Ward, Ben Tre City, Ben Tre Province • VinFast Can Tho Address: 274 30/4 Street, Hung Loi Ward, Ninh Kieu District, Can Tho Analysis of environmental factors impact [BA1706.Group 2.GA] 0 2.1 Microeconomic a Customers Customers inside the business: are the people who work in the business providing products and services, in the departments and departments in the customer care process of the business Company employees are the most loyal customers and advertising for products is easiest Businesses need to create good awareness for the target customer group, build an effective distribution system for each of those customer groups, and have an attractive message/support package to help that segment buy a car easily It is easy to see that Vingroup has a huge list of potential customers who are using real estate, tourism, medical examination, or have children to go to school at member businesses Vingroup also has too many beautiful locations to open distribution showrooms Therefore, VinFast will have a certain advantage For VinFast, from the customer's perspective, this business was interested in: - Increasing consumer demand: the residents of Hanoi and Ho Chi Minh City increasingly need to use "clean" vehicles Therefore, Vinfast produces Klara electric motorcycles with lead-acid and lithium-ion battery versions, which are compact, lightweight, and environmentally friendly - After-sales service: Vinfast offers a gift package worth 15 million VND to customers who have received Fadil cars through the program "Top notch experience with VinFast Fadil" In addition, the program "Exchange old for new, applies to owners of all car manufacturers who want to change to Vinfast - Reasonable price for the market segment: In the domestic market, this brand officially accepts deposits from customers with a commitment of "three nos": no depreciation, no financial costs, and no calculation profit on product cost - Quality is the most important factor: According to VinFast, the company's car models will in turn undergo hundreds of tests for quality and safety standards in 14 countries before mass production b Competitor According to the plan, VinFast will launch a Premium car line - abbreviated as Pre in 2020, spanning all segments A, B, C and D, from small cars, sport utility vehicles to family cars Combining introduced car lines has brought the total number of VinFast cars to Thus, in the future, VinFast will have to compete with many rivals In the class A urban car segment (also known as the low-cost car segment), VinFast already has a key product, the Fadil model (listed price is VND 423 million) VinFast Fadil's competitors will be two Korean car models assembled in Vietnam, namely Hyundai Grand i10 and KIA Morning, of which Hyundai Grand i10 is the most popular car model in the market and the top of the class A [BA1706.Group 2.GA] 0 VinFast also has car model in the D-class car segment, the LUX A20 model (VND 1,366 billion) In this period, the rival of LUX A2.0 is none other than two prominent names, Toyota Camry and Mazda6 The Vietnamese electric motorcycle market is divided into two segments, domestic and imported, of which most of them originate from China About 10 years ago, Chinese electric motorcycles began to be introduced into our country and were well received by Vietnamese people because of their low prices, no need to fill up gas, and no driver's license, but it has many disadvantages Right after VinFast, a number of foreign electric motorcycle companies also officially entered Vietnam with the desire to dominate the market share when there were few competitors In September 2019, the Korean electric motorcycle company MBL officially entered the Vietnamese market This brand launched different versions: Mbi X, Mbi S, and Mbi V with prices ranging from 39.8 million to 59 million VND The price is much higher than VinFast Klara However, according to many people's reviews, MBI not only has an eyecatching design and many technologies but also very good quality In November, another "big" electric car jumped into the Vietnamese market, Yadea The Chinese electric car company is known for its largest sales in the world Yadea has actually been present in the Vietnamese market for a long time and has expressed its ambitions when introducing models from cheap to high-end including Yadea E3, Ulike, and G5 with low prices suitable for many market segments - Potential competitors with cars: Ford, Daimler, BMW, GM, and many others have pledged to invest about $225 billion in electric vehicles over the next five years Volkswagen leads the race with $44 billion, ambition to end the development of gasoline and diesel models by 2026 and 40% of its sales are electric cars by 2030 The company has just launched the Mustang Mach-E SUV which is coming soon pure electric pickup model F-150 Tesla is an American electric car company When it comes to electric vehicles, this is a formidable competitor in terms of advanced technology and eye-catching exterior In the near future, when Tesla is imported to Vietnam more, this will be a strong competitor of Vinfast - Potential competitors with electric motorcycles: At the 2019 Indonesia International Motor Show, Indonesia's first electric motorcycle model named Gesits was officially launched Gesits is researched, and developed by PT Gesits Technologies Indo (GTI) and invested in a manufacturing plant in Cileungsi, Bogor, West Java With this plan, Gesits promises to become a direct competitor to VinFast Klara in the electric motorcycle segment when it goes to the international market After analyzing the external environment, VinFast can see its opportunities and challenges 10 [BA1706.Group 2.GA] 0 when initially entering the automobile-motorcycle manufacturing and trading industry c Distribution channel Vinfast's distribution system is not inferior to other competitors By the end of 2019, the list of VinFast dealers has more than 40 dealer addresses 18, 2S, and 3S put into operation Continuing, VinFast is expected to open 76 more VinFast Showroom doors by the end of 2020 Vinfast, instead of establishing its own distribution system from scratch, acquired Chevrolet's entire car distribution system in Vietnam Vinfast also chooses the form of distribution as wholesale, 1-level Lithium-ion channel (Vinfast -> Distributor -Impens offers to buy a car) d Supplier VinFast is cooperating with a series of well-known suppliers in the automobile and motorbike manufacturing and trading industry: - Bosch - the world's largest supplier of automotive technology and components - Schuler AG – stamping line - Eisenmann – technology, assembly line - Durr AG - supply paint line - LG Chem, belonging to LG Group - manufactures and supplies international standard batteries - Intellectual property rights of BMW - a famous German engine manufacturer 2.2 Macroeconomic a Economic In recent years, Vietnam has had a remarkable and stable growth rate 2017 is considered the year of miracles for the Vietnamese economy The economic growth rate reached 6.81%, exceeding the set target of 6.7% In the second half of the year, there was a spectacular breakthrough of over 7% (7.46% in the third quarter, 7.65%) in the fourth quarter, creating a big boost for the economy of our country This is also a record number in the past 10 years In the following years, the economic growth rate remains impressive when reaching 7.08% in 2018 and 7.02% in 2019 The year 2020 is considered a year of great difficulties and challenges for the world economy in general, including Vietnam However, Vietnam's economy still maintained its growth with an estimated GDP growth rate of 2.91% The Covid-19 epidemic has complicated developments, disrupting the social-economic activities of countries around the world; The US-China trade conflict continues In the country, natural disasters and epidemics have a significant impact on the activities of the economy and people's lives; unemployment and underemployment rates are high However, with drastic and effective solutions in realizing the dual goal of "both disease prevention and socio-economic development", Vietnam's economy still achieved positive results with the maintenance of economic growth chief Besides, our country also successfully controlled inflation below 4% by 2020 11 [BA1706.Group 2.GA] 0 development in 2017 reached the target of 3.5%, and in 2018 it was 3.54% Especially by 2019, inflation is only to 2.79%, much lower than growth People's income level is therefore not heavily affected, there is a tendency to increase consumption The average consumer price index in 2020 increased by 3.23% compared to the previous year, reaching the target of controlling inflation, keeping the average CPI in 2020 below 4% set by the National Assembly in the context of a year with many unpredictable fluctuations CPI in December 2020 increased by 0.19% compared to December 2019, which is the lowest level in the 2016-2020 period b Globalization Since Vietnam joined the WTO in 2015, the globalization process has been taking place at an urgent and continuous pace Vietnam has achieved many important achievements in economic development thanks to the push to open up, integrate into the world economy, and actively participate in the network of multi-tiered free trade agreements International integration contributes to market expansion, increasing competitive advantages for Vietnam's exports compared to other countries in the region; Thereby, the structure of exports has changed in quality On the other hand, extensive international integration helps to reduce the cost of imported input materials, thereby increasing the competitiveness of goods of the same type in the domestic and international markets, and at the same time reducing the competitive pressures of other countries imported goods c Politics environment The political environment includes the legal system, government agencies, and the role of social pressure groups The developments of these factors strongly and also directly influence corporate governance decisions Realizing the importance of the auto-motorcycle industry, right from the beginning of the year In 2017, the Government announced many policies to facilitate and support Vietnamese businesses participate in this field In addition, the Government has also announced many policies to facilitate and support Vietnamese enterprises to participate in this field Because that is not only the future of the automobile industry – it is also a long-term and sustainable vision for the Vietnamese industry VinFast, similar to other automobile businesses, will be subject to tax rates as prescribed by law such as corporate income tax, import and export tax, value-added tax (VAT), special consumption tax, … However, this is a Vietnamese trade, so there are more incentives VinFast in the first phase will not charge financial fees including working capital, interest paid on loans to build factories, etc., or depreciation costs, without interest The price of the car will be calculated by the cost of production and the cost of sales d Sociocultural environment 12 [BA1706.Group 2.GA] 0 In Vietnam, it is a fact that there is an imbalance between the number of vehicles on the road and the traffic technical infrastructure Besides the lack of synchronization, the lack and degradation of transport infrastructure is the delay in the construction progress of key traffic works The current means of public passenger transport is mainly buses, which only meet 8% of people's travel needs When the public transport system is not really developed, and there are not many constraints in registering to own a personal car, the number of private means of transport continues to increase rapidly, especially motorbikes because the cost of this type of vehicle is generally not too high High traffic density, many projects under construction, unreasonable traffic arrangement, low traffic awareness of the people, etc are the causes that make the traffic picture in cities become should be worse e Natural environment Natural factors are factors with specific characteristics of each region, it can be said that this is the factor that forces the industry to adapt Enterprises in the industry must have a thorough understanding to make the right decisions for their products Natural conditions will determine the needs of consumers regarding the requirements and characteristics of the vehicle To understand those characteristics, it is required businesses understand and understand the characteristics of the terrain, weather, climate, and environmental conditions, This environment has not had much of an impact on the auto industry This factor itself is just a condition and sets out for businesses a number of separate requirements so that they can research and create a car that is suitable for the natural conditions of Vietnam f Technology environment Technological factors have a strong impact on the world economy, its power can destroy or create a new economic industry The impact of the technological environment is mainly expressed through new products, new technologies or materials, and production processes applying new technologies The present era is considered to be a "Continuous explosion of destruction and creation" A series of inventions and inventions in many fields, both old and new, have been published, especially in applied research sciences that are developing faster than ever In the auto-motorcycle industry, we can divide it into two separate contents Firstly, the car itself such as appearance, engine, design, factors related to the use value, quality of the car that the customer chooses, and secondly, the fuel source used for the vehicle The current clean fuel source is difficult to obtain with the current average cost that businesses are spending on fuel procurement Two newly discovered fuel sources are electricity and biotechnology Investment in technology in the field of manufacturing and trading cars - motorcycles is huge However, if it is possible to overcome the challenges and the disparity in 13 [BA1706.Group 2.GA] 0 experience and technical level in the automobile manufacturing industry with foreign enterprises, VinFast in particular and Vietnam in general can completely opportunity to establish a foothold in the international market Analyze consumer behavior 3.1 Segmentation VinFast's market is divided into segments a Geographic Segmentation VinFast's cars are distributed to almost every place in VietNam However, their products are present in large urban areas, with wide roads and density populations such as Ho Chi Minh City, Ha Noi, Hai Phong, Binh Duong, etc In fact, we rarely see electric charging stations in rural areas, because their electric vehicle products are difficult to distribute to rural areas, most of which are gasoline-powered cars b Demographic Segmentation VinFast develops many product lines such as electric buses, electric motorbikes, and cars targeting many different customer segments Age: 10-20 No income or from 1-5M per month Student, start-up, stay-athome mom, elderly Go out rarely or just for school Price-conscious Age: 21-35 Income: 30-60MWorking Have a busy life Dynamic Go out often Focus on personal brand building Price-conscious but also cares about quality Age: 36-60 Income: 500M or more Working Buy products for family or work Going out depends on the nature of the job Cares about quality c Psychographic Segmentation: VinFast became the first Vietnamese car brand to arouse national pride, especially among young people With a modern and dynamic and luxurious design, their products can make the customers satisfied with the quality that matches the price Moreover, VinFast also develops electric vehicles to help protect the environment and spread meaningful messages to its customers d Behavioral Segmentation: VinFast’s customers often buy products through distributors Although there are some comments complaining about the quality, VinFast products still make the majority of customers satisfied and they will recommend them to the friends about their products 3.2 Targeting Of course, typical customers of VinFast are also Vietnamese people, who are still depreciated and are not eligible to own cars to move on the street It seems that from the past until now, only people with high incomes have had the opportunity to drive a car, an apartment building made in Vietnam 14 [BA1706.Group 2.GA] 0 Some of the goals that VinFast aims at are consumers in the segment of electric motorbikes and cars 3.2.1 VinFast Electric Bike: a) VinFast Impes and VinFast Ludo: - Ages: 15 - 22 - Social Class: Middle - Live in City - Lifestyle: Modern - Occupation: Students - Focus on Teen modern with modern design b) VinFast Klara S and VinFast Feliz: - Ages: 20 - 45 - Income: Middle - Social Class: Middle - Occupation: Officer - Live in City - Lifestyle: Modern - Have girly designs, small, easy to drive in a crowded city c) VinFast Theon: - Ages: 20 - 45 - Income: High - Social Class: High - Live in City - Lifestyle: Modern - Mainly design, it’s a luxury electric bike d) VinFast SLP: It is very special because it is powered by solar energy - Age: 16-55 - Social Class: Low – Middle - Live in City - Lifestyle: Modern - Occupation: Student and Elderly - Focus on environmental adaptation and suit many people 3.2.2 VinFast Cars: a) VinFast Fadil: - Ages: 25 - 45 - Income: Middle - Social Class: Middle - Live in the city - Lifestyle: Modern - Use for a small family b) VinFast Lux A2.0: - Ages: 15-55.14 - Live in City - Income: High - Social class: Middle and High - Lifestyle: Modern - Use for companies or a family with less than people 15 [BA1706.Group 2.GA] 0 c) VinFast Lux SA2.0: - Ages: 35 - 55 - Income: High - Social Class: High - Live in the city - Lifestyle: Modern - Use for a big family with more than people 3.3 Positioning 3.3.1 National pride - The first Vietnam domestics brand VinFast is the first time in history, a company founded by Vietnamese to produce a car Before being introduced VinFast created a design vote that influenced millions of Vietnamese people In November 2018, VinFast Lux A2.0 and Lux SA2.0 were introduced at the Paris Motor Show with David Beckham creating a huge event that was reported by a lot of newspapers, magazines, and TV A car “made in Vietnam” appears in one of the biggest car events in the world which impacted people a lot 3.3.2 Low price high quality The VinFast car always has the price of lower classification and quality of higher classification: VinFast Fadil with classification A-Minicompact - car price but has a 1.4L I4 engine which only appears on classification B - Subcompact car It was developed based on Opel Karl Rocks - a German car brand VinFast Lux A2.0 has classification D - Large Family car -, but it has a 2.0L BMW-N20B20 I4 T engine and 8-speed ZF 8HP automatic transmission gearbox which was developed based on a classification VinFast Lux SA2.0 like Lux A2.0 uses an engine and gearbox which was developed based on the BMW X5 - a Luxury SUV Car 4P Factors 4.1 Price As for VinFast's price marketing strategy, this company targets people who want highquality cars that are affordable Therefore, they price their products a bit higher than Korean-Japanese automakers, but lower than European automakers like Mercedes or BMW Just like that, VinFast has successfully penetrated the market, making it easier to gain market share at low prices In addition, VinFast also implements many promotions and sales discounts to increase revenue VinFast's car models are almost suitable for many people and working classes in society About a product that is about to be launched in the near future, VinFast SLP, VinFast revealed a price of only 18,000,000 - 21,000,000, to serve a wide range of students and the elderly 16 [BA1706.Group 2.GA] 0 4.2 Product VinFast's product lines are extremely diverse with many models continuously launching such as VinFast Fadil, VinFast Lux, VinFast President, VinFast Premium, etc Therefore, they can deploy marketing strategies about products immensely effectively, quickly becoming the market leader Not to mention, the products manufactured by VinFast before being launched all have strong communication Almost every product-related factor is the leading factor such as Leading manufacturing technology, leading manufacturing technology and leading design, etc Besides, VinFast also hires two famous Italian designers, ItalDesign and Pininfarina Famous designers associated with the names of Ferrari and Lamborghini to resonate At the same time, they cooperate with famous automotive engineering and manufacturing companies from all over the world: Magna Steyr and Bosch, AVL, ZF, GROB, Thyssenkrupp, AVL, and MAG VinFast always explores and learns about its customers, sees what they need, and wants to develop a reasonable strategy And most recently they have grasped people's need for electric cars powered by solar energy Because the weather in Vietnam is almost sunny all year round, it is very convenient to use in charging and moving It is a VinFast SLP product It is one of the most expensive products of VinFast 4.3 Promotion With the form of marketing promotion, VinFast has implemented many incentive programs, advertising campaigns, and widespread communication to attract the attention of customers With promotions: Vinfast implements unique sales policies such as a 3-zero price policy, interest-free loans for installment loans for the first years, a 10% discount when paying directly, etc With advertising and communication campaigns: VinFast chooses social networks to increase its brand awareness In just a short time, the image of VinFast has appeared especially impressive in the eyes of families and people I always mention the new product VinFast SLP using solar energy and the ability to selfpark in public places It certainly has a lot of incentives when it is launched and used According to the manufacturer's announcement, when you buy a car, you will be given year of maintenance and replacement of energy panels if you want and a lifetime warranty if the fault is caused by the manufacturer At the same time, if you buy cars at the same time, you will receive a discount voucher for the 3rd product up to 50% In order to answer the needs of customers and create a trust for everyone before and after buying the product 17 [BA1706.Group 2.GA] 0 4.4 Place For VinFast's location strategy, the company chose for itself the form of distribution through one-level channels For example, they operate in a linear manner such as VinFast → Distributor → Finally, customers Although there are strict selection criteria, but VinFast has many policies to support agents In particular, they also invited individuals and other car sales units to join the system, which created a fatal weakness They bring achievements to VinFast is the expansion of the brand's distribution network to the whole country In addition, VinFast also cooperates with GM (General Motors) to limit the time and human resources to self-design and manage a distribution system From there, in order to promote the trade promotion strategy for its vehicle lines in the Vietnamese market more quickly VinFast wants its customers to experience both old and new products better, so they don't have too many intermediaries in the process of selling products They always their best to support where to sell, where to charge the battery and where to advise on products VinFast SLP electric car products are no exception, supporting most showrooms in provinces across the country Hopefully, in the future, the product will be released You can come to see and experience this special product Media analysis and public relations 5.1 Taking the lead in terms of ethnicity VinFast cleverly evokes national pride inside each Vietnamese person before bringing the product to the international market The car will be labeled Made in Vietnam, 100% made and operated by Vietnamese people This has greatly attracted the attention of Vietnamese customers 5.2 Make the most of Social Media channels Aiming to capture the importance and rapid spread of Social Media, Vinfast has stepped up the way of brand advertising on all social networking platforms VinFast has constantly put the number of Seeding brands on the official Fanpage and brought about an extremely possible result Almost 90% of the responses are positive and know the VinFast brand when asked 5.3 Increase coverage with Influencer Marketing VinFast also follows the trend of using Influencer Marketing, and KOLs in the community to increase brand coverage The names selected by VinFast include Ngo Thanh Van, Hoang Thuy, Tran Tieu Vy, Bui Tien Dung, Nguyen Quang Hai, etc All are names associated with Vietnamese people VinFast has successfully positioned not only its brand in Vietnam but also in the international arena This is really a strategy worth studying and learning IV CONCLUSION VinFast is the first automobile manufacturing and trading enterprise in Vietnam, taking its first steps In doing business, understanding the business environment is especially important, helping businesses find opportunities, challenges, strengths, and weaknesses to decide on management issues so that the business develops in a sustainable way and 18 [BA1706.Group 2.GA] 0 ... car company released the La Dalat car In 1991, the Mekong Auto assembly joint venture was established In 2004, Thaco inaugurated Chu Lai - Truong Hai Automobile Manufacturing and Assembling Factory,... VinFast revealed information about its intention to expand to Australia - In March, Discovery Channel made a reportage clip about VinFast in particular and the automobile industry in Vietnam in... public places It is an extremely creative new step that car manufacturers around the world are always aiming for and Vietnam has VinFast which is researching and developing That modern car is called