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Table of ContentsPart 1: Introduction 5Part 2: Suggestion of two potential market segments for VFC82.1. Basement for suggestion 72.2. Suggestion of two potential market segments 92.2.1. Office dress 92.2.2. Pregnant 11Part 3: Marketing mix for the two segments 13Part 4: Conclusion and recommendation17References 19List of TablesTable 1.1: Number of VFC’s outlets6Table 2.1: SWOT analysis for VFC 9Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9List of ChartsChart 1.1: VFC’ Distribution network 6Chart 2.1: VFC’s revenue from 2007 – 2013 periods8IntroductionOver the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development. Currently, Vietnam is the world''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s No. 4 in terms of garment exports, is poised to overtake Bangladesh in due time. Garment exports reached a volume of 14.1 billion US dollars in 2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013). In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17%. The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012). Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well. In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards.VFC was established in 1998 by Mr. Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of “Building the first casual wear fashion brand for the young Vietnamese” (VFC’s portfolio, 2010). VFC specializes in designing, manufacturing and marketing/distributing apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean). Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia. In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS).
1 | P a g e MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM ASSIGNMENT MARKETING STRATEGY Submitted to: Assoc. Prof. Dr. Nguyen Xuan Minh Submitted by: Huynh Thi My Dieu ID No.: CGSVN00014998 Class: MBAOUM0313 – K08A Ho Chi Minh City, March 2014 1 | P a g e MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM ASSIGNMENT MARKETING STRATEGY Submitted to: Assoc. Prof. Dr. Nguyen Xuan Minh Submitted by: Huynh Thi My Dieu ID No.: CGSVN00014998 Class: MBAOUM0313 – K08A Ho Chi Minh City, March 2014 1 | P a g e MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM ASSIGNMENT MARKETING STRATEGY Submitted to: Assoc. Prof. Dr. Nguyen Xuan Minh Submitted by: Huynh Thi My Dieu ID No.: CGSVN00014998 Class: MBAOUM0313 – K08A Ho Chi Minh City, March 2014 2 | P a g e Acknowledgements A completed report would not be done without any assistance. First of all, I would like to express my endless thanks to lecturer Assoc. Prof. Dr. Nguyen Xuan Minh. His kindly support and continuous advices went through the process of comp letion of my report. Without his motivation and instructions, the report could not be done effectively. My special thanks approve to my parents for their endless love, care and have most assistances and motivation me. I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time. As last, my deeply thanks come to all colleagues. Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life. With kindest regards, Huynh Thi My Dieu 2 | P a g e Acknowledgements A completed report would not be done without any assistance. First of all, I would like to express my endless thanks to lecturer Assoc. Prof. Dr. Nguyen Xuan Minh. His kindly support and continuous advices went through the process of comp letion of my report. Without his motivation and instructions, the report could not be done effectively. My special thanks approve to my parents for their endless love, care and have most assistances and motivation me. I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time. As last, my deeply thanks come to all colleagues. Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life. With kindest regards, Huynh Thi My Dieu 2 | P a g e Acknowledgements A completed report would not be done without any assistance. First of all, I would like to express my endless thanks to lecturer Assoc. Prof. Dr. Nguyen Xuan Minh. His kindly support and continuous advices went through the process of comp letion of my report. Without his motivation and instructions, the report could not be done effectively. My special thanks approve to my parents for their endless love, care and have most assistances and motivation me. I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time. As last, my deeply thanks come to all colleagues. Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life. With kindest regards, Huynh Thi My Dieu 3 | P a g e Table of Contents Part 1: Introduction 5 Part 2: Suggestion of two potential market segments for VFC 8 2.1. Basement for suggestion 7 2.2. Suggestion of two potential market segments 9 2.2.1. Office dress 9 2.2.2. Pregnant 11 Part 3: Marketing mix for the two segments 13 Part 4: Conclusion and recommendation 17 References 19 List of Tables Table 1.1: Number of VFC’s outlets 6 Table 2.1: SWOT analysis for VFC 9 Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9 List of Charts Chart 1.1: VFC’ Distribution network 6 Chart 2.1: VFC’s revenue from 2007 – 2013 periods 8 3 | P a g e Table of Contents Part 1: Introduction 5 Part 2: Suggestion of two potential market segments for VFC 8 2.1. Basement for suggestion 7 2.2. Suggestion of two potential market segments 9 2.2.1. Office dress 9 2.2.2. Pregnant 11 Part 3: Marketing mix for the two segments 13 Part 4: Conclusion and recommendation 17 References 19 List of Tables Table 1.1: Number of VFC’s outlets 6 Table 2.1: SWOT analysis for VFC 9 Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9 List of Charts Chart 1.1: VFC’ Distribution network 6 Chart 2.1: VFC’s revenue from 2007 – 2013 periods 8 3 | P a g e Table of Contents Part 1: Introduction 5 Part 2: Suggestion of two potential market segments for VFC 8 2.1. Basement for suggestion 7 2.2. Suggestion of two potential market segments 9 2.2.1. Office dress 9 2.2.2. Pregnant 11 Part 3: Marketing mix for the two segments 13 Part 4: Conclusion and recommendation 17 References 19 List of Tables Table 1.1: Number of VFC’s outlets 6 Table 2.1: SWOT analysis for VFC 9 Table 2.2: Lists of some competitors in terms of price, competitive advantages and targeted market 9 List of Charts Chart 1.1: VFC’ Distribution network 6 Chart 2.1: VFC’s revenue from 2007 – 2013 periods 8 4 | P a g e SUGGESTION OF TWO POTENTIAL MARKET SEGMENTS FOR VIET FASHION CORPORATION (VFC) 4 | P a g e SUGGESTION OF TWO POTENTIAL MARKET SEGMENTS FOR VIET FASHION CORPORATION (VFC) 4 | P a g e SUGGESTION OF TWO POTENTIAL MARKET SEGMENTS FOR VIET FASHION CORPORATION (VFC) 5 | P a g e Part I: Introduction Over the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development. Currently, Vietnam is the world's No. 4 in terms of garment exports, is poised to overtake Bangladesh in due time. Garment exports reached a volume of 14.1 billion US dollars in 2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013). In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17%. The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012). Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well. In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards. VFC was established in 1998 by Mr. Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of “Building the first casual wear fashion brand for the young Vietnamese” (VFC’s portfolio, 2010). VFC specializes in designing, manufacturing and marketing/distributing apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean). Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia. In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS). At from the beginning, VFC has focused on targeted customers is young people age from 15 – 45 in urban area (occupy of 14% of total national population). In term of its targeted 5 | P a g e Part I: Introduction Over the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development. Currently, Vietnam is the world's No. 4 in terms of garment exports, is poised to overtake Bangladesh in due time. Garment exports reached a volume of 14.1 billion US dollars in 2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013). In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17%. The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012). Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well. In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards. VFC was established in 1998 by Mr. Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of “Building the first casual wear fashion brand for the young Vietnamese” (VFC’s portfolio, 2010). VFC specializes in designing, manufacturing and marketing/distributing apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean). Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia. In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS). At from the beginning, VFC has focused on targeted customers is young people age from 15 – 45 in urban area (occupy of 14% of total national population). In term of its targeted 5 | P a g e Part I: Introduction Over the past years, Vietnam’s textile and garment sector has experienced fast and sustainable growth, playing an important role in national socio-economic development. Currently, Vietnam is the world's No. 4 in terms of garment exports, is poised to overtake Bangladesh in due time. Garment exports reached a volume of 14.1 billion US dollars in 2012, an increase of close to 10% compared to 2011, and the sector is a vital one for Vietnam (together with food processing, cigarette and tobacco, chemicals and electrical goods), employing around 1.5 million workers (Fashionunited.co.uk, 2013). In recent years, being one of the key export sectors of Vietnam, textile and garment sector has always achieved growth rate of above 17%. The country now ranks second in clothing exports to the US market with a growth rate of 8.5% while still retaining sustainable growth in the Republic of Korea and Japan (Apparel Sourcing Vietnam, 2012). Some of the well-known apparel brands have established their own retail stores in major business districts and department stores, not just in HCMC and Hanoi but also in other major cities national wide and foreign countries as well. In this report, the author would like to focus on Viet Fashion Corporation (VFC) and suggest two new market segments for this company to expand its business in 2014 and onwards. VFC was established in 1998 by Mr. Nguyen Huu Phung - one of the pioneers in fashion industry with over 30 years experience in apparel fashion in local market, with the mission of “Building the first casual wear fashion brand for the young Vietnamese” (VFC’s portfolio, 2010). VFC specializes in designing, manufacturing and marketing/distributing apparel fashion under three brands which are Ninomaxx (Casual Active), N&M (Smart casual & Hi-end Casual clean) and Maxxstyle (Casual Clean). Currently, VFC is the leading retail fashion company in Vietnam with the distribution network of 216 retail stores nationwide and 5 stores in America, Cambodia and Australia. In 2007, VFC was listed as the leading local market and the strongest brand in Vietnam by Vietnam Textile and Apparel Association (VITAS). At from the beginning, VFC has focused on targeted customers is young people age from 15 – 45 in urban area (occupy of 14% of total national population). In term of its targeted 6 | P a g e market, VFC focus on middle – class with average income level. This segment is occupied 60% of total fashion market whereas Ninomaxx account for 22% of casual in Vietnam. 97% VFC’s products serve for local market, remaining 3% for exporting to foreign market such as Cambodia and Australia (Company Data, 2013). Its products are distributed through their own retail stores, franchised retail stores, retail agents and exported to several foreign markets, for examples: Thailand, Philippines, and South Africa, etc. (Chart 1.1.) [Source: Company’s Data, 2013] Chart 1.1: VFC’ Distribution network Three main fashion brands of VFC: - Ninomax: came to life in 1998 with a mission of “building the first casual wear fashion brand for the young Vietnamese”. VFC is gradually widely known locally and on its way to reach out to international. - N&M: was born in late 2008 with the thematic concept “Work and Play”, co-existing with VFC. N&M brings about the most suitable outfits for the Vietnamese fashion enthusiasts for workplace or non-workplace, to build the image of elegant, young and alluring to those who are dressed in. N&M constantly releases new designs with an average of 80 designs per month. VFC's Distribution Network Vietnam Singapore Indonesia Number of VFC’s outlets: Country Total Vietnam 216 Singapore 2 Cambodia 2 Indonesia 1 Philippine 2 Malaysia 1 America 2 South Africa 1 Dubai 1 Total 228 Table 1.1: Number of VFC’s outlets 6 | P a g e market, VFC focus on middle – class with average income level. This segment is occupied 60% of total fashion market whereas Ninomaxx account for 22% of casual in Vietnam. 97% VFC’s products serve for local market, remaining 3% for exporting to foreign market such as Cambodia and Australia (Company Data, 2013). Its products are distributed through their own retail stores, franchised retail stores, retail agents and exported to several foreign markets, for examples: Thailand, Philippines, and South Africa, etc. (Chart 1.1.) [Source: Company’s Data, 2013] Chart 1.1: VFC’ Distribution network Three main fashion brands of VFC: - Ninomax: came to life in 1998 with a mission of “building the first casual wear fashion brand for the young Vietnamese”. VFC is gradually widely known locally and on its way to reach out to international. - N&M: was born in late 2008 with the thematic concept “Work and Play”, co-existing with VFC. N&M brings about the most suitable outfits for the Vietnamese fashion enthusiasts for workplace or non-workplace, to build the image of elegant, young and alluring to those who are dressed in. N&M constantly releases new designs with an average of 80 designs per month. VFC's Distribution Network Cambodia America Philippine Thailand Malaysia Dubai Number of VFC’s outlets: Country Total Vietnam 216 Singapore 2 Cambodia 2 Indonesia 1 Philippine 2 Malaysia 1 America 2 South Africa 1 Dubai 1 Total 228 Table 1.1: Number of VFC’s outlets 6 | P a g e market, VFC focus on middle – class with average income level. This segment is occupied 60% of total fashion market whereas Ninomaxx account for 22% of casual in Vietnam. 97% VFC’s products serve for local market, remaining 3% for exporting to foreign market such as Cambodia and Australia (Company Data, 2013). Its products are distributed through their own retail stores, franchised retail stores, retail agents and exported to several foreign markets, for examples: Thailand, Philippines, and South Africa, etc. (Chart 1.1.) [Source: Company’s Data, 2013] Chart 1.1: VFC’ Distribution network Three main fashion brands of VFC: - Ninomax: came to life in 1998 with a mission of “building the first casual wear fashion brand for the young Vietnamese”. VFC is gradually widely known locally and on its way to reach out to international. - N&M: was born in late 2008 with the thematic concept “Work and Play”, co-existing with VFC. N&M brings about the most suitable outfits for the Vietnamese fashion enthusiasts for workplace or non-workplace, to build the image of elegant, young and alluring to those who are dressed in. N&M constantly releases new designs with an average of 80 designs per month. Number of VFC’s outlets: Country Total Vietnam 216 Singapore 2 Cambodia 2 Indonesia 1 Philippine 2 Malaysia 1 America 2 South Africa 1 Dubai 1 Total 228 Table 1.1: Number of VFC’s outlets 7 | P a g e - Maxxstyle: was born in 2009 as the third brand by VFC after N&M and Ninomaxx. Maxx Style is significantly different from all other brands since its designs are specialized for the young, want-to-be-young, young - obsessed target audiences, who always express themselves via their simple but unusual designed with bizarre colors dressing style. VFC uses various kinds of materials such as Jeans, Kaki, Cotton, Linen, Wool, etc. and its design styles are casual-wear, elegant and active. It has average price from 110.000 VND to 300.000 VND with products-line range from coat, shirt, T- shirt, Jeans, Kaki trouser, shorts for active men and women enclosed with accessories such as belt, hat and handbag, etc. Since VFC has been success in this target market, it is facing with such big competitors like Blue Exchange, Viet Thy, FOCI, PT2000, John Herry, Sea Collection. Other competitors come from same industry like Viettien, Nha Be, Nguyen Long, NEM, Senti, An Phuoc, Oxy etc. and from foreign country such China, especially from Korea. 7 | P a g e - Maxxstyle: was born in 2009 as the third brand by VFC after N&M and Ninomaxx. Maxx Style is significantly different from all other brands since its designs are specialized for the young, want-to-be-young, young - obsessed target audiences, who always express themselves via their simple but unusual designed with bizarre colors dressing style. VFC uses various kinds of materials such as Jeans, Kaki, Cotton, Linen, Wool, etc. and its design styles are casual-wear, elegant and active. It has average price from 110.000 VND to 300.000 VND with products-line range from coat, shirt, T- shirt, Jeans, Kaki trouser, shorts for active men and women enclosed with accessories such as belt, hat and handbag, etc. Since VFC has been success in this target market, it is facing with such big competitors like Blue Exchange, Viet Thy, FOCI, PT2000, John Herry, Sea Collection. Other competitors come from same industry like Viettien, Nha Be, Nguyen Long, NEM, Senti, An Phuoc, Oxy etc. and from foreign country such China, especially from Korea. 7 | P a g e - Maxxstyle: was born in 2009 as the third brand by VFC after N&M and Ninomaxx. Maxx Style is significantly different from all other brands since its designs are specialized for the young, want-to-be-young, young - obsessed target audiences, who always express themselves via their simple but unusual designed with bizarre colors dressing style. VFC uses various kinds of materials such as Jeans, Kaki, Cotton, Linen, Wool, etc. and its design styles are casual-wear, elegant and active. It has average price from 110.000 VND to 300.000 VND with products-line range from coat, shirt, T- shirt, Jeans, Kaki trouser, shorts for active men and women enclosed with accessories such as belt, hat and handbag, etc. Since VFC has been success in this target market, it is facing with such big competitors like Blue Exchange, Viet Thy, FOCI, PT2000, John Herry, Sea Collection. Other competitors come from same industry like Viettien, Nha Be, Nguyen Long, NEM, Senti, An Phuoc, Oxy etc. and from foreign country such China, especially from Korea. 8 | P a g e Part 2: Suggestion of two potential market segments for VFC 2.1. Basement for suggestion: VFC has enjoyed rather good years with continuous increase in both sales and profits. As of August 2010, VFC has the largest retail stores network with 119 stores across the nation, among those 67 stores are of Ninomaxx brand. Total assets doubled from $14 to $31 million in just three years between 2007 and 2010 while in the same period, compound annual growth rate was 57.2% (VFC’s Portfolio, 2010). The company has focused on one market segment only of casual-wear for active young people as it believes that step-by-step development will guarantee the sustainable success in the strongly fierce competitive markets in Hochiminh City and other provinces. And it has been done effectively. [Source: Company Data] Chart 2.1: VFC’s revenue from 2007 – 2013 periods However, in a very competitive environment of fashion sector, VFC need to adapt the trend of unstable changing in consumer’s behavior to be more successful. Furthermore, VFC may take the advantages of its strength and external opportunities by doing SWOT analysis to have evidences of doing such new segmentation for its expanding business plan. 2007 Revenue 131 0 100 200 300 400 500 600 Million Dong VFC's Revenue from 2007 - 2013 periods 8 | P a g e Part 2: Suggestion of two potential market segments for VFC 2.1. Basement for suggestion: VFC has enjoyed rather good years with continuous increase in both sales and profits. As of August 2010, VFC has the largest retail stores network with 119 stores across the nation, among those 67 stores are of Ninomaxx brand. Total assets doubled from $14 to $31 million in just three years between 2007 and 2010 while in the same period, compound annual growth rate was 57.2% (VFC’s Portfolio, 2010). The company has focused on one market segment only of casual-wear for active young people as it believes that step-by-step development will guarantee the sustainable success in the strongly fierce competitive markets in Hochiminh City and other provinces. And it has been done effectively. [Source: Company Data] Chart 2.1: VFC’s revenue from 2007 – 2013 periods However, in a very competitive environment of fashion sector, VFC need to adapt the trend of unstable changing in consumer’s behavior to be more successful. Furthermore, VFC may take the advantages of its strength and external opportunities by doing SWOT analysis to have evidences of doing such new segmentation for its expanding business plan. 2007 2008 2009 2010 2011 2012 131 195 215 310 420 431 VFC's Revenue from 2007 - 2013 periods 8 | P a g e Part 2: Suggestion of two potential market segments for VFC 2.1. Basement for suggestion: VFC has enjoyed rather good years with continuous increase in both sales and profits. As of August 2010, VFC has the largest retail stores network with 119 stores across the nation, among those 67 stores are of Ninomaxx brand. Total assets doubled from $14 to $31 million in just three years between 2007 and 2010 while in the same period, compound annual growth rate was 57.2% (VFC’s Portfolio, 2010). The company has focused on one market segment only of casual-wear for active young people as it believes that step-by-step development will guarantee the sustainable success in the strongly fierce competitive markets in Hochiminh City and other provinces. And it has been done effectively. [Source: Company Data] Chart 2.1: VFC’s revenue from 2007 – 2013 periods However, in a very competitive environment of fashion sector, VFC need to adapt the trend of unstable changing in consumer’s behavior to be more successful. Furthermore, VFC may take the advantages of its strength and external opportunities by doing SWOT analysis to have evidences of doing such new segmentation for its expanding business plan. 2012 2013 519 9 | P a g e Strengths - S1: Strong brand-name - S2: Wide distribution network - S3: Effective marketing - S4: Creative design Weaknesses - W1: Limited financial capacity - W2: Less quality of products - W3: High price compare to other competitors with same targeted market Opportunities - O1: Strongly growth of Vietnam’s economy. - O2: Government’s policies encourage and create good conditions for garment sector. - O3: Vietnam has jointed WTO, take advantage of connecting and expanding business environment. - O4: Increasing in demand of fashion Threats - T1: High and various competitors, entering of many foreign companies, especially from China and Korea. - T2: Citizens have the habits of consuming foreign products. - T3: Fasting growth of China’s garment industry - T4: Technology and skills of garment sector in host country are left behind others. Table 2.1: SWOT analysis for VFC 2.2. Suggestion of Two potential market segments: 2.2.1. Office dress: There are some reasons for choosing this segment as listed in the following: - Huge potential customers (market size) and the trend of shopping: Female are at working age group accounted for 48.5% in 2013, while this group occupied for 46.1% in early 2014 (GSO, 2013). The trend concern in fashion for lady office is increasing time by time and never stops changing. They may be forced to wear uniform (for example: suit) due to company’s policy in some case but it does not make sense. Suits somehow build the professional status but lady may feel uncomfortable and boring as well. In many organizations, employers allow the flexile styles of uniform that does not affect the country’s habits and customs. The shopping clothes hobbies of lady are never enough and they still prefer enjoy buying office 9 | P a g e Strengths - S1: Strong brand-name - S2: Wide distribution network - S3: Effective marketing - S4: Creative design Weaknesses - W1: Limited financial capacity - W2: Less quality of products - W3: High price compare to other competitors with same targeted market Opportunities - O1: Strongly growth of Vietnam’s economy. - O2: Government’s policies encourage and create good conditions for garment sector. - O3: Vietnam has jointed WTO, take advantage of connecting and expanding business environment. - O4: Increasing in demand of fashion Threats - T1: High and various competitors, entering of many foreign companies, especially from China and Korea. - T2: Citizens have the habits of consuming foreign products. - T3: Fasting growth of China’s garment industry - T4: Technology and skills of garment sector in host country are left behind others. Table 2.1: SWOT analysis for VFC 2.2. Suggestion of Two potential market segments: 2.2.1. Office dress: There are some reasons for choosing this segment as listed in the following: - Huge potential customers (market size) and the trend of shopping: Female are at working age group accounted for 48.5% in 2013, while this group occupied for 46.1% in early 2014 (GSO, 2013). The trend concern in fashion for lady office is increasing time by time and never stops changing. They may be forced to wear uniform (for example: suit) due to company’s policy in some case but it does not make sense. Suits somehow build the professional status but lady may feel uncomfortable and boring as well. In many organizations, employers allow the flexile styles of uniform that does not affect the country’s habits and customs. The shopping clothes hobbies of lady are never enough and they still prefer enjoy buying office 9 | P a g e Strengths - S1: Strong brand-name - S2: Wide distribution network - S3: Effective marketing - S4: Creative design Weaknesses - W1: Limited financial capacity - W2: Less quality of products - W3: High price compare to other competitors with same targeted market Opportunities - O1: Strongly growth of Vietnam’s economy. - O2: Government’s policies encourage and create good conditions for garment sector. - O3: Vietnam has jointed WTO, take advantage of connecting and expanding business environment. - O4: Increasing in demand of fashion Threats - T1: High and various competitors, entering of many foreign companies, especially from China and Korea. - T2: Citizens have the habits of consuming foreign products. - T3: Fasting growth of China’s garment industry - T4: Technology and skills of garment sector in host country are left behind others. Table 2.1: SWOT analysis for VFC 2.2. Suggestion of Two potential market segments: 2.2.1. Office dress: There are some reasons for choosing this segment as listed in the following: - Huge potential customers (market size) and the trend of shopping: Female are at working age group accounted for 48.5% in 2013, while this group occupied for 46.1% in early 2014 (GSO, 2013). The trend concern in fashion for lady office is increasing time by time and never stops changing. They may be forced to wear uniform (for example: suit) due to company’s policy in some case but it does not make sense. Suits somehow build the professional status but lady may feel uncomfortable and boring as well. In many organizations, employers allow the flexile styles of uniform that does not affect the country’s habits and customs. The shopping clothes hobbies of lady are never enough and they still prefer enjoy buying office 10 | P a g e dress than suit when they go to work. Therefore, focus on office dress market with the mission “lady first-beauty come along” will be a smart choice in fashion industry. - Take advantages of available capacity and its strength: Strong Brand-name: VFC is well-known by three famous brands are Ninomaxx, N&M and Maxxstlye. Therefore, related products derive from one of those brand will be familiar to customers, despite of new design styles for lady office’s products in urban area. Various kinds of materials: available materials suits for this segment are: silk, cotton and kaki. Those kinds of materials are for designing such form of clothes in office with comfortable feeling for users. Design style: active, young and elegant are the key elements in any product of VFC. For this segment, VFC should focus more on elegant and active style to suit with lady users in office. Human resource: good management, creative designers, stylists, active selling and good marketing staffs. These forces have most contribute to the process of launching new products to targeted market. Loyal customers: VFC already has a number of loyalty customers, therefore it easy for VFC to attract more lady office for this new target segment. However, when focusing on this segment, VFC may face with such competitors such as Minh Long 1, PNJ, M.A.C, K&K Fashion, etc. They have the same characteristics of targeted customers are female working in office. The differences come from the use of material, style design, price and distribution networks. Among those, M.A.C has the 10 | P a g e dress than suit when they go to work. Therefore, focus on office dress market with the mission “lady first-beauty come along” will be a smart choice in fashion industry. - Take advantages of available capacity and its strength: Strong Brand-name: VFC is well-known by three famous brands are Ninomaxx, N&M and Maxxstlye. Therefore, related products derive from one of those brand will be familiar to customers, despite of new design styles for lady office’s products in urban area. Various kinds of materials: available materials suits for this segment are: silk, cotton and kaki. Those kinds of materials are for designing such form of clothes in office with comfortable feeling for users. Design style: active, young and elegant are the key elements in any product of VFC. For this segment, VFC should focus more on elegant and active style to suit with lady users in office. Human resource: good management, creative designers, stylists, active selling and good marketing staffs. These forces have most contribute to the process of launching new products to targeted market. Loyal customers: VFC already has a number of loyalty customers, therefore it easy for VFC to attract more lady office for this new target segment. However, when focusing on this segment, VFC may face with such competitors such as Minh Long 1, PNJ, M.A.C, K&K Fashion, etc. They have the same characteristics of targeted customers are female working in office. The differences come from the use of material, style design, price and distribution networks. Among those, M.A.C has the 10 | P a g e dress than suit when they go to work. Therefore, focus on office dress market with the mission “lady first-beauty come along” will be a smart choice in fashion industry. - Take advantages of available capacity and its strength: Strong Brand-name: VFC is well-known by three famous brands are Ninomaxx, N&M and Maxxstlye. Therefore, related products derive from one of those brand will be familiar to customers, despite of new design styles for lady office’s products in urban area. Various kinds of materials: available materials suits for this segment are: silk, cotton and kaki. Those kinds of materials are for designing such form of clothes in office with comfortable feeling for users. Design style: active, young and elegant are the key elements in any product of VFC. For this segment, VFC should focus more on elegant and active style to suit with lady users in office. Human resource: good management, creative designers, stylists, active selling and good marketing staffs. These forces have most contribute to the process of launching new products to targeted market. Loyal customers: VFC already has a number of loyalty customers, therefore it easy for VFC to attract more lady office for this new target segment. However, when focusing on this segment, VFC may face with such competitors such as Minh Long 1, PNJ, M.A.C, K&K Fashion, etc. They have the same characteristics of targeted customers are female working in office. The differences come from the use of material, style design, price and distribution networks. Among those, M.A.C has the [...]... strong brand name of products for pregnant and each of them has their own competitive advantages, but VFC believe in the successful of targeting this segments for the middle class 12 | P a g e Part 3: Marketing mix for the two segments Maketing Mix Office dress - Pregnant dress products with new designs, biger Unique designed with many forms size form from office dress and colors, easy for different -... group in every aspect of lives With the mission that “beauty during ugly period” will poison in ladies’ mind the feeling of care, love and happiness VFC wish to launch this type of products vary from office dress, home-wear to seasonal-wear such as for winter season for pregnant Office dress - Home-wear Winter-wear Market size: As of in 2010, Vietnam had about 25 millions women of childbearing age and... product Except from dress for lady office and for pregnant, VFC can combine products with suitable accessories Three months once, VFC will launch to market a set of product for each with different styles, size and for seasonal wear, for example, Women Day 15 | P a g e or Teacher Day, etc VFC also offer coupon disscount on special even like Merry Christmas, Tet Holiday for any type of these products Pannel... Design with many forms but customers’ choice Product Introduce designs for office ladies - Offer new products with new - some new rang prefer use sharp color such as pink, white blue, etc - Add some features with simple and comfortable designs Price Offer lower price for middle and income level - Offer reasonal price at middle - lower imcone level Average offered pice range - Average offered pice range... react on the change of fashion trend VFC need a specific marketing plan for each type of market segment to be sucessful in this competitve environment Today, fashion products do not stop at just a specific coat, pants to keep warm or protect the body but elegent, active and stylist In that, it has the elements of culture, style, brand, shopping space, the harmony of the design Fashionable is not similar... new range - Sponsor for charity program Offer 15% discount on grand - Funding clothes for some movies, outlet charity for social programs, take - Increasing expense on develop, add more fetures and nonstop show such as “Suc Song Moi” update information on official program 13 | P a g e open event or when open any new part in fashion show and media Promotion Discount coupon website - Offering quality,... of 400.000 VND VFC has dominant points when focus on this segment is various from category listed above They will pay attention to beauty design style and more reasonable price compare to others The marketing-mix will be discussed further in the next section for expanding these new types of products for lady working 2.2.2 Pregnant: The main reason for choosing this segment is the trend of concern for. .. contribute to the success of the product new offer’s strategic VFC should become dominant at internal market by quality, reasonable price and build strong brand (essential factor) Consumer in Pacific Asia market are quite same, VFC should pay attention to research more on customer needs and wants, their culture and trend in fashion of them From this, VFC can have different strategy for each market VFC may ask... sale and marketing, Middle class wide distribution networks Very competitive price, variuos Mommy 200.000 styles and forms, service sataff are friendly and caring Other local brands Middle class and lower Low price, variuos styles and 70.000 forms, many distribution channels Lower class in the market Table 2.2: Lists of some competitors in terms of price, competitive advantages and target market Evenwhen... only for this valaible distribution - channels such as Suppermarket, decoration More Widend retail shops in potential combine with other features for district: Binh Thanh, Tan Binh, 1 - with Shopping Mall, retail outlets Place products pregnant ladies and 3 - - Consider in new sales network by different acctracted Distribute via retials shop and supermarket using distributor and franchises - Offer . from http://www.baomoi.com/Viet-Nam-co-25-trieu-phu-nu-o-do-tuoi-sinh- de/82/5409137.epi. 2. Facebook.com, 2014. Wellcome to the new insight page. Retrieved from https://www.facebook.com/pages/Kho-t%C3%A0ng-tri-th%E1%BB%A9c- Diary/605932982832052?sk=insights. 3 from http://www.baomoi.com/Viet-Nam-co-25-trieu-phu-nu-o-do-tuoi-sinh- de/82/5409137.epi. 2. Facebook.com, 2014. Wellcome to the new insight page. Retrieved from https://www.facebook.com/pages/Kho-t%C3%A0ng-tri-th%E1%BB%A9c- Diary/605932982832052?sk=insights. 3 from http://www.baomoi.com/Viet-Nam-co-25-trieu-phu-nu-o-do-tuoi-sinh- de/82/5409137.epi. 2. Facebook.com, 2014. Wellcome to the new insight page. Retrieved from https://www.facebook.com/pages/Kho-t%C3%A0ng-tri-th%E1%BB%A9c- Diary/605932982832052?sk=insights. 3.