(Tiểu luận) analysis of the marketing strategy of vinfast a new but outstanding electric carbrand in viet nam can final year students at ftu become potential customers forthis brand

Hypothesis and research modelBase on three theories before, which are Theory of Reasoned Action, Theory of PlannedBehaviour, Technology Acceptance Model, we have built four Hypotheses ab

FOREIGN TRADE UNIVERSITY

ASSIGNMENT SUBJECT: RESEARCH METHODOLOGY FOR ECONOMICS AND BUSINESS Analysis of the marketing strategy of Vinfast - a new but outstanding electric car brand in Viet Nam Can final-year students at FTU become potential customers for

LECTURER: Le Hang My Hanh

Examiner 1’s signature Examiner 2’s signature

Invigilator 1’s signature Invigilator 2’s signature

Ho Chi Minh City, February 16th, 2023

9 Result 23

9.2 OLS model results and problems with the model 23

9.4.1 Is the coefficient obtained from the regression function consistent with economic theory? 26

9.5 Check for the existence of multicollinearity 27

always been a topic of interest, and we also wonder if final-year students can be a target

of the marketing strategy of the company For this reason, the proposal will bring someinformation and methods to find the answer to the question “ Can final-year students atFTU become potential customers for this brand?” At the end of the research, this studywill highlight some expected results through several trustworthy documents regardingthe issue, key elements that affect the marketing strategy, and some recommendationsfor VinFast

2 Introduction

VinFast is one of the most famous Vietnamese companies and their main products areelectric automobile products and internal combustion, electric motor-using cars, and eco-friendly electric motorcycles This is also the 7th core business of Vingroup with the headoffice located in Hanoi and the CEO is Mr Pham Nhat Vuong It was established in 2017and the birth of VinFast not only contributed to making the Vietnamese car dreams cometrue, but also opened Vingroup's era of development-based technology and knowledgeand participated in promoting Vietnamese automotive industry “VinFast is a subsidiary ofVingroup, a large conglomeration of privately held corporations in Vietnam, that includesbusinesses in technology, industry, and services VinFast boldly stepped into theVietnamese automotive market in 2019 as the only domestic car brand and showed thatthey could move quickly and decisively to produce high quality cars resulting in rapidsales and leading revenue in their respective segments It is the first Vietnamese car brand

to expand into global markets as well as the first to expand into producing EVs such aselectric cars and electric scooters.Within 21 months of launch, and with an investment ofnearly $3.5 billion USD, they were producing several models of e-scooters, buses, andautomobile models —including the ultra-high luxury President2— in their fully-automated modern manufacturing facility boasting capacity to build 250,000 vehicles ayear In early 2021, VinFast executives announced their vision of becoming a globalleader in the EV market, introduced EV models, and started their international expansionplans.”

Nowadays, Vinfast has launched 4 lines of gasoline cars: Fadil, LUX A2.0, LUX SA2.0,President, in which Vinfast's largest internal market share is Vinfast Fadil In 2021,Vinfast also launched 3 lines of electric cars: VF31, VF32, VF33 So we can see that this

is a vital milestone that affirms VinFast’s vision of becoming a new global electricautomotive brand and bringing Vietnam to a new position on the world automotiveindustry map

In this proposal, the main issues addressed here include: (1) the popular use of electricvehicles in Viet Nam; (2) The introduction of a new brand, as well as its marketingcampaign; (3) The prospective customers for Vinfast; (4) Methodology of the research;(5) Expected results and (6) Recommendations

3 Literature review

3.1 The demand of using electric vehicles in Viet Nam

People's knowledge of global warming has been quickly increasing in modern society.Vehicles that don't release harmful pollutants to the environment are a fantastic fit foralternative sources of energy The People's Republic of China and the United States ofAmerica are the leading countries in terms of vehicle sales, while Vietnam and Singaporeare the leading vehicle markets in terms of growth, with growth rates of 27.1% and48.2%, respectively, in 2015-2016 This is according to a JATO Dynamics Ltd survey thatlooked at the number of tourist vehicles, pickup trucks, and commercial vehicles soldamong automobile markets worldwide

The data from the Vietnam Registry stated that the number of electric vehicle registrations

in our country in the three years of 2019, 2020 and 2021 has prospered In 2019, thenumber of registered electric vehicles is 190 vehicles, in 2020 it will increase to 900vehicles and in 2021 it will be more than 1000 vehicles, it will be shown in the next table.Years The number of registered electric vehicles

The statistics above show that the number of vehicles sold in the Vietnamese automobilemarket is not particularly large, but the Vietnamese automobile market has experiencedrapid growth in recent years The vehicle market in Vietnam has enormous potential forgrowth.

3.2 The appearance of a new brand and its marketing strategies

3.2.1 Basic marketing information

-Vinfast Fadil: the first product from Vinfast, first introduced to customers on 20/11/2018

at Thong Nhat Park, Ha Noi

- Vinfast LUX: we have 2 versions for this brand including SUV (Vinfast LUX SA2.0) vàSedan (Vinfast LUX A2.0)

- Vinfast LUX V8: Introduced in 2020

-Brand name: Vinfast VinFast is abbreviated from extremely meaningful words InVietnam, it is “Việt Nam, Phong cách, An toàn, Sáng tạo và Tiên phong”

The VinFast brand name expresses the aspiration of industrialization and modernization,the desire to pioneer the development of the automobile manufacturing industry inVietnam, and national pride The logo is inspired by the "V" symbol, using delicate,luxurious and classy silver tones to create a stylish and fashionable car company Theletter "V" represents Vietnam, Vingroup, VinFast, and the symbol "V" is also a victory.The color of the logo is trusted by many famous car brands in the world, demonstratingthe level of the Vietnamese car brand

- Product feature: VinFast Fadil is a small car powered by a 4-cylinder petrol enginewith a maximum capacity of 98 horsepower and 128 Nm It also has a CVT gearbox and a6.2L V8 engine with a capacity of 445 horsepower and maximum torque of 624 Nm.VinFast Lux SA2.0 has a 2.0L turbocharged gasoline engine with 228 horsepower and

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350 Nm Transmission: ZF 8-speed automatic transmission Powertrain: Rear-wheeldrive, AWD 4-wheel drive (premium version) Ground clearance 192 mm.

- Product design: Exterior design has many colors for customers to choose, Fadil serieshas 6 colors (red, blue, gray, silver, orange, white) and Vinfast Lux has 8 luxurious colors(Mystique Red, Luxury Blue, Desat Silver, Action Orange, Jet Black, Cormorant Brown,Brahminy White and Neptune CL) The body is sturdy, true to Europe, the sound ofclosing the door firmly and entering the interior compartment does not have an unpleasantsmell like popular cars The bonnet of this new model is elongated with sporty embossedribs quite similar to BMW's 5-Series cars The bonnet is elongated with sporty embossedribs, and the LED bulbs connected to daytime positioning lights bring something new.Next to the letter "V" are 2 lines using LED bulbs connected to daytime positioninglights This different design of VinFast LUX A2.0 really brings something new

3.2.1.1 Price strategy for new products

Vinfast, as a new car manufacturer, does not appear to be targeting the low-cost carmarket, even positioning the brand at a slightly higher price point than product linesbelonging to Japanese and Japanese brands Korean automakers such as Honda, Toyota,Hyundai, and Kia In the first stage, VinFast decided to implement strong consumersupport policies, including a "3 No" price policy VinFast will not charge depreciation,financial costs (interest payable on loans used to build plants, working capital, etc.), orinterest The selling price will be equal to the product's production cost plus sellingexpenses VinFast wishes to provide customers with the opportunity to experience world-class Vietnamese products by adopting a "3 No" pricing policy that accepts no profit.3.2.1.2 Price adjustment strategy

After maintaining the price of "3 No plus incentives" (from January 1 to August 31,2019), from September 1, the selling price of VinFast Lux SA 2.0 cars will increase by

532 million VND, from 1,286 billion VND now up to 1,818 billion dong; Lux A 2.0increased by 466 million, from 900 million to 1,366 billion; and Fadil increased by 64

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million, from the current 359 million to 423 million (price excludes VAT) In September

2019, the price list of VinFast cars, including Lux SA 2.0, Lux A 2.0, and Fadil models,

no longer includes incentives and returns to the official selling price, so the car's price willrise dramatically However, VinFast decided to extend the preferential period for its carmodels at the last minute From February 12, 2020, VinFast continues to increase carprices according to the policy of 3 without incentives, specifically VinFast Fadil carsincrease by 20 million, VinFast Lux A2.0 increase by 30 million, VinFast Lux SA2.0increase by 50 million per version Keeping true to its commitment to customers, VinFastdecided to adjust the selling price of the product, on the principle of maintaining the "3No" policy, only gradually reducing the bonus plus

VinFast VF 5 Plus with bin: 538 million VND

VF Fadil VinFast Fadil Standard version (Base): 352,500,000 VND

VinFast Fadil Advanced version (Plus): 383,100,000 VNDVinFast Fadil Premium version: 419.100.000 VNDVinfast LUX A 2.0 Lux A2.0 sedan standard: 881,695,000 VND

Lux A2.0 sedan enhanced: 948,575,000 VNDLux A2.0 luxury sedan: VND 1,074,450,000VinFast’s vehicle price list in 2023

3.2.1.3 Promotion strategy

Promotion and direct marketing

Automobiles are considered a luxury item in Vietnam, and the Vinfast brand has yet toenter the Vietnamese market As a result, Vinfast promotes numerous promotions for carbuyers, such as vinfast no interest for the first two years for customers who purchase a

fadil car between November 15, 2019 and February 15, 2020 Customers who purchaseVinFast Fadil cars between November 15, 2019 and February 15, 2020 will only need topay 30% of the car's value in advance, with the remaining 70% being paid Payment ininstallments over a 5-year period Customers can also receive interesting gifts fromVinfast

by participating in the program "Test drive VinFast Lux - Experience class."

3.2.1.4 Repair strategy

From January 6, 2022, VinFast pioneered to deploy the first genuine mobile repair service(Mobile Service) in Vietnam As a result, a team of technicians will perform maintenance,repair, and replacement of spare parts with simple items at the location specified by thecustomer, without the use of a vehicle lift This service first appeared in Vietnam to helpimprove the customer experience

3.2.2 Achievements in recent years:

Vinfast made its first appearance at the Paris Motor Show one year after its debut This isone of Vinfast's major milestones in bringing the Vietnamese car brand abroad andattracting the attention of Vietnamese auto enthusiasts One of the important goals thatVinFast aimed to achieve was to export in order to expand the market and generate profits

on a larger scale, thereby contributing to the company's economic pressures VinFast'sexport targets include massive markets such as Europe, China, and ASEAN Since August

2018, VinFast has been quietly establishing subsidiaries and representative offices inGermany, China, and Korea

3.3 The potential customers for Vinfast

A recent research by Nguyen Thi Nhu Quynh about the marketing-mix strategy forVinfast has shown that Vinfast manufactures and sells cars not only in the domesticmarket but also wishes to expand internationally, bringing Vietnamese brands to newmarkets As a result, a large customer base both at home and abroad serves as aneconomic foundation for Vinfast's auto industry Vinfast positions itself as a high-end car

line, targeting both domestic and foreign customers, implying that its target market iswealthy people In the study, she did not mention the specific customer that Vinfast istargeting, as well as the student object Final-year students may be the object that does notsuitable for such a luxury car brand like Vinfast, but through researching the marketingstrategy, it is clear that this company usually changes to fit the demand of customers, and

we can believe that with the improvement of the product, Vinfast electric car may soonattend the mass market

4. Research question and objectives

+ Some analysis of the marketing strategies in the industry of electric cars

+ Highlight some expected results through several trustworthy documents regardingthe issue

+ Determine key elements that affect the marketing strategy, and somerecommendations for VinFast

+ Offers a look at the elements that led to VinFast's success in the Vietnamese automarket in recent years

5 Theoretical basis

FTU-Foreign Trade University-one of the most prestigious universities in Viet Nam.Students at FTU are famous for their dynamism, creativity, and difference Almost allstudents have had a job before graduating from this university, another fact is that theyoften have good salaries and promotion opportunities Besides, because of living inmodern life and having opportunities to access the Internet and interact with people fromall over the world, they have awareness of common human problems One of the biggest

issues that humans have to deal with nowadays are environmental pollution and runningout of fossil fuel As a result, green energy may become a trend in the future.

It is said that a prospect is a name given to a company's potential customer It is a personwho has expressed an interest in the company's services and products but has not yetpurchased them In this case, we can test the purchase intention of the final-year students

to consider if they can be potential buyers of Vinfast cars

In the research, we will apply three theories that will be mentioned below:

- Theory of Reasoned Action – TRA: The TRA model is a predictive model of theintention to buy (Ajzen & Fishbein, 1975) including two main elements in the model,namely Attitude towards behavior and Subjective Norms to influence affect theBehavioral Intent, which leads to the final act However (Ajzen & Fishbein, 1975) theassessment is still limited to the TRA model, which assumes that behavior is determinedbased on the intention to perform that behavior So this theory only applies to pre-intentioned behavior

- Theory of Planned Behavior (TPB) According to (Ajzen, 1991), this concept isinherited and developed from the concept of TRA - Theory of Reasoned Action of (Ajzen

& Fishbein, 1975) The TPB model was created to overcome the limitation of the previoustheory that human behavior is controlled by reason and is considered to be a more optimalmodel than the TRA model Perceived behavioral control is expressed in terms of howeasy or difficult it is to perform a particular behavior or whether or not the performance ofthe behavior is restricted (Ajzen, 1991)

- Technology Acceptance Model (TAM) According to (Davis, 1986), thetechnology acceptance model (TAM) is said to be derived from the theory of rationalaction (TRA), which is related to the problem of predicting the ability to accept a newtechnology The technology acceptance model is defined by two factors: perceivedusefulness and perceived ease of use Electric motorcycles are the product of “green”technology development, so it makes perfect sense to use the TAM technology acceptancemodel to explain the intention to adopt a “green” technology

6. Hypothesis and research model

Base on three theories before, which are Theory of Reasoned Action, Theory of PlannedBehaviour, Technology Acceptance Model, we have built four Hypotheses about therelationship between final-year students at FTU and the ability that they become potentialbuyers of Vinfast (their intention to purchase electric cars) and the relevant elements:

- Hypothesis 1: Environmental awareness has a positive effect on the purchase intention

of final-year students at FTU

According to the research of (Yi-Chang & Gwo-Hshiung, 1999) Environmentalawareness is related to the perception of environmental pollution, knowledge of theenvironment and energy saving on the behavior of people, so that this may be a suitableelement to test

- Hypothesis 2: Attitude has a positive effect on the purchase motivation of students intheir senior year at FTU

A consumer's positive or negative attitude is a person's evaluation of the outcome of thatbehavior (Ajzen & Fishbein, 1975) In TRA and TPB theory, it has also been shown thatAttitude is a particularly important factor that directly affects intentional behavior and it iscompletely verified through many different research papers Therefore, attitude can be anelement that should be mentioned

- Hypothesis 3: The attraction of Vinfast’s electric cars has a positive effect on thepurchase willingness of final-year students at FTU

The attraction of electric vehicles comes from its benefit to the environment, reasonableprice, version, color, advertising, free repair time, design), which are also called visualmerchandising techniques According to the TAM (Technology Acceptance Model, twofactors define the technology acceptance model: perceived usefulness and perceived ease

of use Electric motorcycles are the result of "green" technology development, so usingthe TAM technology acceptance model to explain the intention to adopt a "green"technology makes perfect sense

-Hypothesis 4: Customer’s loyalty has a positive effect on the buying motivation of

last-year students at FTU

A Study of Local Taxi Companies in Ho Chi Minh City, Vietnam by Mai Ngoc Khuongand Ngo Quang Dai states that the antecedent of customer loyalty is customersatisfaction, but how to create buyer satisfaction? The technology acceptance model isdefined by two factors: perceived usefulness and perceived ease of use In other words,helping customers to experience the products before purchasing can be a way to increasetheir belief, as well as their loyalty From those four hypotheses, we introduce theResearch Model:

7.1.2 Type of research

An exploratory research is a research whose primary purpose is to examine a littleunderstood issue or phenomenon and to develop preliminary ideas about it and movetoward refined research questions (Newman, 2014, p 38) The reason why this proposal

is considered exploratory research is its main purpose is to analyze VinFast’s marketingcampaign and to test the feasibility of turning final year students into potential customersfor VinFast's electric cars So using exploratory types of research can help us answer thequestions written at the beginning of this proposal and reach the research objectives

7.1.3 Survey Development

For data collection, we tend to use an online survey with only closed-ended questions.Based on the literature review, all of the questions will be carefully selected andevaluated to be able to measure with the most accurate results

A detailed questionnaire will cover visual merchandising techniques, with 35-40questions and 15-20 minutes for respondents to answer The survey may be conductedwithin 2 weeks and on online platforms such as Google Form

The survey will use a 5-point likert scale (with 5-point likert scale from stronglydisagree (=1) to strongly agree (=5)) to determine who best characterizes their thoughts

or perspectives Primary data will be gathered for data collection, while secondary datamay be used to find suggestions for questions

7.1.4 Sampling method

We will choose randomly a sample of approximately around 400-500 final year FTUstudents First, we can use systematic sampling by posting the form on some socialmedia platforms such as Facebook, Instagram, Zalo, ; especially Facebook groupswhich include almost all FTU final year students Secondly, we always considerconvenience sampling, we will send the form or the questionnaire to our acquaintances

at FTU and ask them to help us share the form to their friends Finally, to ensure therepresentativeness of the sample chosen and to send thanks to the one who completedthe form, we will give them some useful data or documents at the end of the form

7.2 Research Scale

In this study, we want to test the four hypotheses that have been mentioned above, so theLikert scale may be best suitable as we need to collect respondents’ attitudes andopinions We use this psychometric scale to understand the views and perspectivestowards a brand (Vinfast) The Likert scale assumes that the experience's strength andintensity are linear Assuming that attitudes can be measured, it thus progresses fromcomplete agreement to complete disagreement.

(Fleetwood, Likert scale: Definition, examples & how to use it 2023)Specifically, the research scale will be demonstrated in the next table

Environmental

Awareness

EA1: The threat from environmental pollution

and air pollution is becoming more and more

seriously important

EA2: Environmental protection is the shared

responsibility of each individual

EA3: Using a lot of traditional motorbikes

increases environmental pollution in

Ho Chi Minh City

EA4: I will use a green electric car because I

have a habit of using environmentally friendly

products

(Yi-Chang & Gwo-Hshiung, 1999)(Trang, 2018)(Dung, 2012)(Thogersen, 1999)

Attitude A1: I think Vinfast electric motorbikes are

environmentally friendly

A2: Vinfast electric motorbike has a stylish and

modern design

A3: I support the country to come up with many

policies to encourage people to buy electric cars

A4: I think Vinfast electric motorbikes are easier

to use than other electric motorbikes

(Thoa, 2017), (Trang, 2018).(Huang & Ge, 2019), (Ajzen & Fishbein, 1975),(Tra, 2019)

AOV2: The price of an electric car is higher than

a traditional car but it can be acceptable

AOV3: The easy use of electric cars impresses

me

(Thoa, 2017),(Trang, 2018)(Huang & Ge, 2019), (Ajzen & Fishbein, 1975),(Tra, 2019), Customer’s

loyalty

CL1: I tend to buy a product that satisfies me

CL2: I would choose a Vietnamese electric car

rather than a foreign one

(Mai Ngoc Khuong & Ngo Quang Dai, 2016)Purchase

intention

PI1: Buying a Vinfast electric motorbike is the

first choice if I buy an electric motorbike

PI2: I intend to buy Vinfast electric motorbikes in

the future

PI3: I will recommend Vinfast electric

motorbikes to friends and relatives if they have

them

(Lu & partner,2014), (Huang &

Ge, 2019), (Ajzen & Fishbein, 1975), (Ajzen, 2002)

7.3 Data analysis

We use four independent variables (environmental awareness, attitude, attraction ofVinFast’s car, customer’s loyalty), which are also called merchandising techniques andthe dependent variable is FTU’s final year students' purchasing decisions

Because likert scale is a continuous scale, reliability test, factor analysis, correlation andstepwise linear regression will be considered to run on the data for the study using SPSS

In addition, we research synthetic panel data that can be seen from part 1 of theLiterature Review

To analyze the factors affecting the intention to buy VinFast electric cars of students atForeign Trade University, we use a linear regression model:

Population Regression Model

yd= 0 + 1.env +2.vin +3.hd + 4.tt +u

Sample Regression Model

yd= 0 + 1.env + 2.vin +3hd+4.tt

8.1.2 Explain the variables and their influence on the dependent variable

a Dependent variable

yd: The intention to buy a Vinfast electric car of Foreign Trade University

students

The intention to buy a Vinfast electric car depends on many factors.

In particular, there will be important factors that determine someone'sintention to buy an electric car We have discussed and given 4important factors affecting this: environmental awareness, attitudesabout Vinfast electric cars, attractiveness of Vinfast electric cars andloyalty to Vinfast electric cars

b Independent variables

env: The environmental awareness of students at Foreign Trade University.

According to the studies of Yi-Chang & Gwo-Hshiung (1999), Trang(2018), Dung (2012), Thogersen (1999), we find that environmentalawareness has an influence on the intention to buy an electric car andthis relationship is directly proportional to each other It means thatthe higher the awareness of environmental protection, the higher theintention to buy an electric car and vice versa

vin: Attitudes of Foreign Trade University students towards Vinfast electric

cars

Attitude towards Vinfast electric cars is also an important factoraffecting the intention to buy a car The fact that buyers have a goodattitude and evaluation towards Vinfast electric cars will alsoincrease their intention to buy a car This has been tested in thestudies of Huang & Ge (2019), Ajzen & Fishbein (1975)

hd: The attraction of Vinfast electric cars to students of Foreign Trade

University

Currently, consumers are very interested in the design, price andusage of vehicles If Vinfast electric cars can meet thoserequirements well, it will increase the attraction of Vinfast electriccars to consumers Therefore, the attraction of Vinfast electric carswill also affect the intention to buy electric cars The higher the