Marketing management marketing plan for vinfasts 2022 klara electric motorcycle

THANK YOU

First of all, I would like to thank the Faculty of Marketing, University of Finance - Marketing for creating conditions for us to study and practice Marketing Management And above all, I would like to express my deepest gratitude to teachers Mrs Ngo Minh Trang - who accompanied us throughout the lessons From her comments and suggestions in the previous exercises, in this report, we have also tried to improve our writing as much as possible Although I have checked many times, I still cannot avoid errors Be thoughtful and gentle

Our team is looking forward to receiving your comments so that we can see our shortcomings and draw lessons for the upcoming reports

Finally, I would like to wish the teachers and teachers of the University of Finance - Marketing in general and the teachers of Marketing in particular, good health, always success in work and life, always be children the best person in the world Enthusiastically impart useful knowledge to students

Sincerely thanks!

CHAPTER 1

EXECUTIVE SUMMARY

VINFAST is a member company of Vingroup, which is connected from the abbreviation chain of from: Vietnam - Style - Safety - Creativity - Pioneer with the meaning of honoring commercial vehicles Vietnamese brand The birth of VinFast confirmed the Vietnamese ability to master modern technology Through the automotive sector and, in particular, the electric motors-one of the leading industries

With the 2022 Klara tram line, this is one of the vehicles leading the "green" vehicle trend in the Vietnamese market Compared to other electric vehicles Klara 2022 is considerably more expensive, designed to be more unique than other electric models on the market Not only that, cars own smart utilities that are applied in modern technology that few rivals have

With its high value, vision and mission, VinFast is gradually becoming the largest powertrain supplier in Vietnam, while this market in Vietnam is harsh and competitive

By building up the proposal budget, we hope that you somehow understand the objectives and the actions that are coming we will do The target customer we want to reach for is all urban residents aged 12-45 And needs to be around very often Especially the customer group tend to be adaptable to modern technologies and green, environmentally friendly consumer trends

With innovative Marketing strategies suggested, we believe VinFast wil be thriving in the future

CHAPTER 2

CURRENT MARKETING SITUATION 2.1 ENTERPRISE INTRODUCTION

VinFast is a start-up company in the automotive field with the backing of VINGROUP - the largest private enterprise in Vietnam Right from the start, the brand's goal is to be able to create world-class products with Vietnamese identity

VinFast Manufacturing and Trading Company Limited (VinFast LLC) was established in June 2017 On September 2, 2017, the car production complex project in Dinh Vu - Cat Hai economic zone was started by VinGroup

This is considered the first automobile brand in Vietnam, belonging to VinFast Manufacturing and Trading Company Limited (VinFast LLC) The company is a member of VinGroup created by billionaire Pham Nhat Vuong

The car factory complex with an area of 335 hectares is located in Dinh Vu industrial zone, Cat Hai, Hai Phong After just over 1 year of starting construction, the factory complex has been formed, most of the factories have been completed and are assembling production lines

The factory complex will include: operator, when manufacturing electric motorcycles, ancillary industrial park, training center, R&D research and development institute The factory produces electric cars and motorbikes with a designed capacity of 38 vehicles/ hour In phase 1, the factory will produce 250,000 cars a year and 500,000 electric motorbikes a year

At VinFast, there is a 50,000 m2 engine factory This area is where the BMW N20 engine is manufactured, equipped on Lux A2.0 and Lux SA2.0 In addition, the factory complex also has an auxiliary workshop and an auxiliary industrial park for its partners

2.2 MARKET SUMMARY

Compared to other countries in Asia such as Taiwan, China or Japan, the electric vehicle industry in Vietnam appeared late in 2010 Accordingly, our country's economy is gradually recovering after the crisis People began to approach new technologies, especially for the first time with the concept of "Electric motorcycles." The first generation of electric motorcycles appeared,

such as: Mitsubishi i MIEV, Nissan Leaf In terms of transportation in Vietnam, electric motorbikes are a popular means of transport in urban areas The Vietnamese motorcycle market is shifting towards electrification while the sales of motorcycles using traditional internal combustion engines (ICE) are gradually saturated, making it difficult to reach the same sales volume as before On the other hand, electric motorcycles are partly capturing a certain market share in 2021 According to the announcement of the Vietnam Association of Motorcycle Manufacturers (VAMM), the total sales of 5 members (Honda, Yamaha, Suzuki) , SYM and Piaggio) in the first quarter of 2021 only reached 701,454 vehicles, down 10.6% compared to the previous quarter and down 4.05% over the same period in 2020 Meanwhile, Motorcycles Data's statistics - a combination of both traditional motorbikes and electric vehicles - showing that motorcycle sales in the first quarter reached 777,638 units Thus, electric motorbikes accounted for 9.8% of sales in the first quarter

Vietnam's electric motorcycle market is dominated by VinFast with strong growth, the total number of showrooms, agents and service workshops is spread across all 3 regions of the country with 182 showrooms combined with Vin3S experience centers at 30 locations VinFast province shows the effort to block the fence that has existed for many years with an ecological system on an unprecedented scale Through the strategies implemented, VinFast is facing the opportunity to lead in the electric motorcycle market share in Vietnam

2.3 SWOT AND ISSUE ANALYSIS

- Sleek design, wide range of colors, features clearly stated on websites and in manuals increase reliability and ease of use by users

- Belonging to a long-term consumer product, the company focuses on durability and has battery exchange programs to increase the life of the vehicle to help it operate better - Environmentally friendly: Moving

- Limited time and distance running - The repair and replacement of spare parts is difficult, there are very few electric motorbike repair shops

- It is water resistant but the time is still not high

- Long charging time

at fast speed, ensuring safety,

powered by an electric motor to help reduce emissions to the surrounding environment

- Focus on expanding the width and investing in developing the length - Combines all 3 elements

"sustainable - smart - ecological"

- Vehicles using clean energy to replace internal combustion engines are a global trend

- Foreseeing the future of the world, changing user habits

- In the near future, Vinfast will open and operate 30,000 - 50,000 battery charging and rental stations

nationwide This is a great opportunity for the electric

motorcycle industry in general and Vinfast in particular because currently there is no electric motorcycle company in the Vietnamese market that offers

charging stations and battery rental

- Because electric motorbikes have just been introduced to the market in recent years, it is difficult to change the concept and consumption habits of Vietnamese customers about electric motorbikes

- The price is high and the size is on par with traditional scooter models

- Besides the competition from

traditional motorbikes, Klara 2022 also has to face cheap electric motorbikes in the market

- About new technology Batteries are not the only clean technology In 2015, Honda tested hydrogen technology on taxi models in preparation for the Tokyo 2020 Olympics Hydrogen fuel technology is considered cleaner than gasoline engines and batteries, and more convenient for users If Honda or Yamaha apply this technology on scooter models and distribute them in Vietnam in the future, those will be no small challenges for VinFast's electric

cars

2.4 COMPETITION

VinFast is considered a driver of the electric motorcycle market since the first electric motorbike model VinFast Klara was sold in November 2018 This is a potential market with a lot of room for development But not only VinFast sees the potential of the electric motorbike market in Vietnam Right after VinFast, a number of foreign electric motorcycle companies also officially entered Vietnam with the desire to capture market share when there were few competitors

In September 2019, Korean electric motorcycle company MBI officially entered the Vietnamese market This brand launched 3 different versions: Mbi X, Mbi S and Mbi V with prices ranging from 39.8 to 59 million VND The price is much higher than VinFast Klara However, according to many people's assessment, MBI not only has an eye-catching design, lots of technology, very good quality, but also aims at changing batteries and building an ecosystem with charging stations and battery swapping systems, which are very convenient that VinFast is trying to build Therefore, despite the high price, this will definitely be a tough opponent of VinFast

Right after 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 And expressed ambition when introducing 3 models from cheap to high-end including Yadea E3, Ulike and G5 priced from 16-40 million VND With the hope of competing with VinFast Klara in the same segment

VinFast also has to deal with two big rivals, Honda and Yamaha With a technological background and long-term manufacturing experience, Honda and Yamaha easily entered the electric motorcycle game in the Vietnamese market without any barriers For many years, Yamaha electric motorcycles have been popular in the world market Honda has also successfully built and introduced battery-powered large displacement sports cars Therefore, the development of electric motorcycles in the Vietnamese market is not too big of a problem for these two companies

Air pollution is seriously affecting human health According to the WHO, nearly 7 million people die every year because of air pollution in the world

In Vietnam alone, about 60,000 people One of many proposed solutions is the solution to "green" means of transport The trend of electric motorcycles is exploding in the world and is the mainstream of the future Trends of using Lithium batteries for electric motorcycles Compared with traditional lead-acid batteries, Lithium batteries are light in weight and have a large charge-discharge cycle of 500 to 1,000 times Being able to charge at any time without having to wait until the battery capacity is used up reduces the overall weight load so that the vehicle can operate over longer distances, at a more stable speed Internet trends and technology of the times Many electric vehicle businesses have had breakthroughs in product development that not only improve product quality but also show in intelligent and superior technology features, harmony between people and life.

2.5 PRODUCT OFFERING

The core product of VinFast Klara electric car is to serve the needs of fast moving, ensuring safety for customers, especially the product is operated by an electric motor to help reduce emissions to the surrounding environment Very suitable for those who need to travel on not too long distances

The sleek design, wide range of colors, and features clearly stated on websites and in manuals increase reliability and ease of use

Belonging to a long-term consumer product, the automaker pays great attention to durability and has battery exchange programs to increase the life of the car to help it operate better

The features are designed and upgraded in accordance with the usage habits and physical condition of Vietnamese people, meeting the specific conditions of urban traffic and Vietnam's climate In addition, the car has a high-class design, has great resistance to flooding, as well as high shock resistance on uneven terrain, capable of connecting to "Smartphone" to perform some control operations or vehicle monitoring, positioning (GPS), check the vehicle's moving history, check vehicle status, anti-theft warning

Provide backup batteries and take advantage of the spacious trunk for storage Each battery can help the car travel an additional 50km at a speed of 40km/h Therefore, consumers do not have to worry about running out of batteries along the way

The scooter on the car is made more solid than in 2021, helping consumers easily control their speed In addition, the charging time is shorter, about 4-5 hours on average, it is fully charged, helping users to be more active in charging the car without being restricted in the time range of charging in the evening from 7 to 5 hours 8 hours like before

2.6 SERVICE DIFFERENCE

Electric motorbike charging stations cover all 62 provinces and cities

nationwide It is expected that in 2022, VinFast will deploy more than 3,000 charging stations with more than 50,000 charging ports for electric motorbikes as well as electric cars The showroom system combined with Vin3S experience center, agents and service workshops of VinFast has officially expanded to 182 locations With a long-term methodical investment, Vin3S focuses on 3 main functions: sales, service and support Service workshop area, customer support with full modern equipment, consulting and maintenance according to the highest technical standards of VinFast by skilled technicians Customers can replace genuine parts and

equipment at the best price

Table: Battery charging station system of VinFast Klara electric motorbike

Normal charging station Fast charging station Battery rental station

Currently, VinGroup has arranged a lot of charging stations, usually in parking lots, apartment basements, VinMart+ convenience stores or at high schools, universities, dormitories, These charging stations usually work at night, so you can leave the car at the station to charge the car overnight

Fast charging stations are arranged by VinFast in public places such as parking lots,

convenience stores, etc Fast charging stations usually have very large charging speeds, just 20-30 minutes to provide them provide enough power for the using a car for long trips out of the city

- The system of battery exchange stations is widespread in major cities and towns, customers can search for the nearest battery exchange point through VinFast Escooter application and Google Map

- Support test run: Customers can freely experience the product through car launch events, at showrooms across the country by registering for a test drive on the company's website

Warranty policy: Periodically, customers will get vehicle maintenance and brake fluid change completely free of charge

- Warranty policy is divided into 2 types: recall program and parts warranty For the recall program, customers will be treated free of charge for errors related to the quality and safety of vehicle products circulating on the market This program is applicable even if the vehicle has expired warranty For the spare parts warranty policy, the maximum time is 12 months from the time the dealer authorized the customer and 16 months for VinFast cars for the authorized dealer To receive the warranty policy, customers must store documents such as repair orders, invoices, etc To receive warranty and product maintenance, customers can go to the main authorized electric motorbike dealers the firm Of VinFast company nationwide

- With a scale spanning 3 regions of North - Central - South to create convenience for customers and clear warranty policy to increase reliability For electric vehicles, the charging station system is very important, but VinFast has built an ecosystem chain that no other competitor has

- Promote transportation services, train a team of professional and dedicated consultants, receive feedback from customers, etc In addition, quick and transparent procedures increase reliability with customers customers and avoid wasting customer time

2.7 DISTRIBUTION

VinFast has 260 distribution locations across the country These agents or showrooms must be located on prime geographical locations, meeting the requirements of being located on major streets, main roads, and arterial traffic routes of the city In addition, the geographical location must also be on the list of VinFast's distribution system development strategy

In addition, to be granted dealer rights by VinFast, the showroom must have an area of over 200 square meters and have a facade located on a main road of 10 meters wide or more

Here are some typical agents and showrooms in big cities in Vietnam market:

1 VIN3S 129 Ton Duc Thang, Dong Da, Hanoi 2 VIN3S Ngoc Hoi, Hoang Mai, Hanoi

3 VinFast Phu My Hung, District 7, City Ho Chi Minh 4 VinFast Cong Hoa, Tan Binh District, City Ho Chi Minh 5 VIN3S 179 Dien Bien Phu, Thanh Khe, City Danang

CHAPTER 3

MARKETING STRATEGY 3.1 OBJECTIVES MARKETING

- Accompanying that goal are support policies to create conditions for a large number of customers to access and experience high-class products at very good prices compared to other electric motorbike in the same segment and contribute to establishing habits use zero-emission vehicles

- Creating world-class products with Vietnamese identity Increasing market penetration and increasing product consumption, dominating the electric motorcycle market

- Focusing on expanding the width but also investing in developing the length by releasing many different versions to cover all segments from mid-end, high-end to super-premium to diversify choices for consumers…

- The goal is to produce 250,000 electric motorbikes/year in phase 1, increase to 500,000 vehicles in phase 2 and possibly expand to 1 million electric motorbikes/year…

3.2 TARGET MARKETS

The main customers that VinFast targets with the arrival of the electric motorbike Klara 2022 are urban people All urban residents with frequent need to move (usually between the ages of 12 and 45) are potential customers of VinFast Klara Especially in the young customer group because in this group, they tend to love to explore, are interested in new technologies, easily adapt to modern technologies and like to lead the trend For example, the current trend is green consumption, using eco-friendly electric motorbikes

 Female customers: attracting all ages because of its light weight, beautiful, youthful and elegant design

 Male customers: impressed by modern technology  Income level: Customers with a good income or more

3.3 POSITIONING

Right from the launch, Vinfast has positioned the electric motorcycle line as a "safe and smart" car company Having a firm to build a brand image is to keep the price There is a strong company in entertainment technology However, VinFast chooses a different direction of "safety - smart" Because, besides the default benefits of electric motorbikes, "smart" represents competition when many features are enhanced, and safety is a factor that customers are increasingly interested in as the quality of life gradually improves Before rolling out, VinFast's products have all met international safety standards

3.4 STRATEGIES

 Product

- The Vinfast Klara 2022 electric car series promises to well serve the needs of fast moving, ensuring safety for customers, especially the product is operated by an electric motor to help reduce emissions to the surrounding environment , very suitable for those who need to travel on not too long distances

- In this upgraded version, we have focused on designing beautiful designs, diverse models and colors, practical technology, smart utilities, powerful engines, more focus on increasing length size while ensuring the depth for the product Equipped with many modern features such as 3G internet connection, GPS navigation, remote locking and unlocking, synchronizing distance information, driving parameters via smartphone, finding charging stations, battery rental stations, translation stations service, report emergency situations via preset phone numbers

- Faced with the great challenge of environmental pollution as well as theincreasing demand for energy, the appearance of electric motorcycles is like a "green" breeze in the current vehicle market Inheriting previous electric motorcycles along with the desire for world-class quality products, with this upgraded version we have used modern technologies to help reduce dependence on fossil fuels, reduce greenhouse gas emissions and save energy to replace gasoline to bring optimal value to serve the modern lifestyle of customers

- Operated by an electric motor that receives energy from the battery block located below the saddle

Therefore, the operation of the car moving on the roads gives a smoother feeling, does not bring noise like gasoline cars It does not consume fuel like fossil fuels, but only uses electric power, so it does not emit toxic air to the environment

- The maximum range of 120 to 150km per full charge (latest version - 2022) helps users not to worry about suddenly running out of power while on the go This can be considered as the perfect vehicle for moving in urban environments - either megacity or urban type 2

- 5-inch LED screen clock displays the vehicle's basic number Klara 2022 has the ability to connect to smartphones to perform some vehicle control or monitoring operations

 Place

- Widely distributed in showrooms and agents nationwide

- At the company's website or reputable electronic information sites  Price

The electric motorcycle models on the market as well as the selling price of Klara in previous versions are at an average level, customers in the wide segment from low to high income can choose to buy the model However, this time, the new Vinfast Klara 2022 line with innovative improvements aimed at urban people with decent incomes or more, the price is also different from previous versions If the Klara 2021 series launches with 2 versions of Vinfast klara lithium-ion battery & lead acid with prices ranging from 30 to 50 million, the 2022 Klara series will be offered at a price of 60 to 80 million for one

 Promotion

To promote the product, we choose to carry out many large-scale advertising campaigns Representative:

- Web advertising for electric motorbikes on Google Adwords: Allows users to create online advertising campaigns such as ads with videos, images, etc., and ordinary texts that will be displayed on their mobile phones customers who have a Google account registration and bring in a large number of potential customers Specifically, they include: Electric motorbike web search campaign, Display electric motorbike web advertising campaign, Electric motorbike video web advertising campaign, Shopping electric

motorbike web advertising campaign, Web advertising campaign electric motorbike app, Smart electric motorbike web advertising campaign

- Advertising products to foreign markets: In developed countries, traditional cars are gradually being replaced by high-end cars that save raw materials or use clean materials, typically Tesla Catching that trend, the company has plans to promote products to expand to foreign markets instead of only operating in the country

- Advertising on the homepage of the parent company Vinfast: Currently, Vinfast is a large corporation in Vietnam, gaining the trust and love of customers and has a large number of loyal customers as well as a high level of customer satisfaction High brand awareness Based on that reputation, the promotion here will be more known to customers as well as have higher trust in the product

3.5 MARKETING MIX

 Define communication message

- Fact: The year 2022 will be a new beginning after 2 years of fighting the Covid-19 epidemic, natural disasters, and unexpected things that happen to everyone

- Insight: Young people concentrated in urban areas, especially customers aged 12-45, have active personalities, love to explore, tend to consume green, live a green lifestyle, and care about issues environmental and health issues

- Big idea: Leading the trend of vehicle greening

- Total budget: 57,200,000,000 VND

 Implement a communication plan (The plan consists of 4 quarters) Quarter 1: January 1, 2022 - March 31, 2022

The stage of capturing the attention of the target customer by reaching out, creating curiosity and creating interactions from customers via social media channels