(Tiểu luận) final reportsale management pnj

PNJ GOLD JEWERLYSince its establishment in 1988 until now, PNJ gold jewelry brand has constantly been innovating to continuously produce hundreds of diverse collections of gold materials

UNIVERSITY OF ECONOMICS AND FINANCE

FINAL REPORT SALE MANAGEMENT

HUỲNH THỊ ÁNH HỐNG LÊ THỊ LAN

VÕ KHÁNH LINH ĐẶNG THỊ NGỌC THẢO HUỲNH THÁI TƯỜNG VY

ASSIGNMENT DUE DATE 9 , APRIL 2023TH

1 | P a g e

SUMMARY OF MONITORING AND ASSESSMENT WORKING GROUP 6

LEADER MOTIVATION – EVALUATION – REPORT – VIDEO RECORD 100%

BUDGET - VIDEO EDIT/ RECORD

HUỲNH THÁI TƯỜNG VY MEMBER SALE STAFF RECUIT – 50% SCRIPT – 30% SALE PROCESS – VIDEO RECORD – SLIDE

CONTENTS

A COMPANY INTRODUCTION: 6

I HISTORY OF COMPANY FORMATION AND DEVELOPMENT 6

II BUSINESS PHILOSOPHY 7

III SOME BRANDS AND SERVICES OF PNJ 8

1 WHAT IS SALES ORGANIZATION? 45

2 CHARACTERISTICS OF A SALES ORGANIZATION 45

3 SIGNIFICANCE OF SALES ORGANIZATION 45

4 CONSUMER SPECIALIZATION TYPE 46 4 | P a g e

Too long to read on your phone?

Save to read later on your computerSave to a Studylist

II SALE PROCESS 49

1 Sale process 49

2 sale script – CUSTOMER GROUP CONSCIENTIOUSNESS 60

III SALE TARGET 65

1 GROWING MIDDLE CLASS 65

2 GROWING UPPER CLASS 65

IV SALE BUDGET 68

1 Cost of goods 69

V SALE STAFF RECRUIT 71

1 RECRUITMENT STANDARDS AT PNJ BY DEPARTMENT 71

A COMPANY INTRODUCTION:

PNJ was established on 28/04/1988 as Phu Nhuan Gold and Silver Trading Shop Put into operation with 20 employees It was later reorganized into Phu Nhuan Fine Arts and Gold Company, branded with Phoenix gold bars.

Over 30 years of development and reaching out to the world, up to now, PNJ has nearly 6000 employees along with 353 stores distributed throughout the country In addition, PNJ also has a factory that manufactures more than 4 million products per year, providing jobs for more than 1200 employees This is considered the largest jewelry manufacturing

enterprise in Asia.

(Source: Image of PNJ Company Logo)

COMPANY NAME Phu Nhuan Gold and Silver Gems Joint Stock Company

CERTIFICATE OF BUSINESS

BUSINESS AREAS

Producing and trading gold jewelry, silver, precious stones, fashion accessories, souvenirs, gold bars

Diamond, gemstone and precious metals

TIME EVENT

28/04/1988 Phu Nhuan Gold and Silver Business Store was born By 1992 PNJ was renamed Phu Nhuan Gold and Silver Gem

In 1994 year PNJ established its first branch in Hanoi The origin of a a strategy to develop the PNJ system nationwide

Gems Joint Stock Company (English name is “Phu Nhuan Jewelry Joint Stock Company”) with a charter capital of VND 40 million

March 3, 2009 PNJ shares are officially availble on the HOSE exchange

II BUSINESS PHILOSOPHY

VISION: As the leading jewelry manufacturer and retailer in Asia, it holds the number one position in all market segments targeted by PNJ in Vietnam.

MISSION: PNJ brings pride to customers with exquisite jewelry products, and

Take legitimate profits and business ethics as the foundation for all activities Build credibility and transparency within the organization to build trust Resolutely fight to eliminate all dishonest actions.

- QUALITY

A solid basis for ensuring survival and a measure of the value of each individual and organization.

Always ensure the quality of resources to create high-quality products and services Each individual is committed to performing the task with the best quality, not creating broken products, and not transferring broken products to others.

- RESPONSIBILITY

Take responsibility as the driving force for all activities Put the interests of customers and society on the interest of businesses.

Each individual is committed to living responsibly with themselves, their families, organizations, and society.

7 | P a g e

Excellently perform all work with the spirit of voluntariness, initiative, creativity, and dedication Always a pioneer in pursuing and performing the most difficult tasks with the spirit of victory.

- INNOVATION

This is the foundation of the long-term development of the organization.

Do not be complacent with the achievements Ready to receive, learn and apply new knowledge, experience and skills.

- CREATIVITY

To make a difference and competitive advantage.

Meeting customer expectations is the basis for creative direction.

With a sense of responsibility, and passion for the profession, each individual and organization is committed to constantly creating, offering breakthrough solutions, and creating outstanding products and services.

III SOME BRANDS AND SERVICES OF PNJ 1 PNJ GOLD JEWERLY

Since its establishment in 1988 until now, PNJ gold jewelry brand has constantly been innovating to continuously produce hundreds of diverse collections of gold materials, rich in gemstones with pioneering breakthrough designs, contributing to celebrating beauty, the luxury, and class of Vietnamese consumers.

PNJ-branded gold jewelry products always have a harmonious combination of luxurious and unique beauty, fashion, and modernity, with every detail brought to life by talented designers and skillful hands of skilled jewelers, to ensure product sophistication and high aesthetics, meeting the tastes of all types of customers.

(Source: A product in the collection with the theme “12 DEGREES of Love” by Marry Wedding)

2 HIGH-FINE JEWERLY

Established in 2005, CAO Fine Jewelry has gradually conquered class customers through the unique difference of being a high-end brand CAO Fine Jewelry's products are crafted from 18K gold

8 | P a g e

with diamonds, precious stones, and semi-precious stones with vivid colors - all guaranteed in terms of illumination and delicate sharpening from leading names in the field of gemstone grinding or in the field of inspection in the world CAO's high-end jewelry centers are always located in the most luxurious shopping district in Saigon, Hanoi, which has shown the right strategic vision of CAO Fine Jewelry on the way to conquer high-class customers as well as in direct competition with international jewelry brands present in Vietnam.

3 JEWELRY STYLE BY PNJ

Officially launched in 11/2020, Style by PNJ is an entirely different brand in both style and fashion trends, not only different from PNJ's existing brands but also completely different from the product lines of other brands present in the Vietnamese market today Style by PNJ's designs are aimed at young, dynamic customers, always requiring constant innovation and transformation to exude contemporary breath, celebrate personality, express aesthetic views and personal fashion style.

This product line was born from the cooperation between PNJ and Walt Disney with designs created from images revolving around iconic Disney characters such as Ice Queen Elsa, Princess Cinderella, Mermaid Ariel, Snow White, Pooh Bear and friends, Alice in Wonderland, Mickey Mouse, bringing extremely new experiences, not only awakening and celebrating the beauty of the individual from the love of each 9 character, but also transmitting the message of youth, optimism, desire to live, desire to act and clear childhood in each person.

(Source: Cinderella Jewelry set image)

9 | P a g e

5 FASHION WATCHES

Starting to enter the watch market in 2012, PNJ focuses on the middle and high-end market segment, in line with its strategy of dominating the market for jewelry PNJ Watch brand has been making sure strides with product lines favored by a large number of consumers such as Longines, Movado, Michael Kors, Tissot, In the context that the market is still very fragmented, the company promises to become a leader in the field of distributing genuine watches in Vietnam.

(Source: Photos of PNJ’s Swiss Made watches for women)

6 DIAMOND, GEMSTONE AND PRECIOUS METALS INSPECTION SERVICES

PNJ Inspection Co., Ltd established by PNJ is the leading diamond, gemstone, and precious metal inspection units in Vietnam today and is one of the few domestic inspection companies to successfully build and operate according to international standards ISO 17025 Over 20 years of operation, besides a team of experienced experts, regularly updated with knowledge, modern technology equipment, responsibility, honesty, transparency, neutral attitude, and high accuracy have helped PNJ Lab affirm its solid reputation for customers.

IV ACHIEVEMENTS

Independence Medal 3rd class: This is a noble award recognizing the contribution of PNJ's employees in the activities of 2008 (Unit: President – Year: 2008) - First-class Labor Medal: With outstanding achievements in taking care of workers' lives and charitable activities, taking care of the poor (Awarding unit: President – Year: 2003).

Certificate of high-quality Vietnamese goods for 12 consecutive years (1998 –2009): With this certification, PNJ in its reputation building journey has created its own position for its products with a strong brand during the past 21 years (Awarding unit: Voted by consumers and published by SGTT newspaper - Year: 2010).

Certificate of high-quality Vietnamese goods voted by consumers and published by SGTT newspaper: The above title is a testament to PNJ's outstanding and continuous efforts in the journey of building reputation and creating its own position with a strong brand during the past 21 years (Unit awarded: Voted by consumers and published by SGTT newspaper - Year: 2007).

10 |P a g e

Vietnamese Gold Star Award: An award for PNJ brand – a typical brand of Vietnam on the path of international integration (Awarding unit: Central Vietnam Youth Union - Year: 2010).

Vietnam Quality Award: Awarded by the Ministry of Science and Technology, the Vietnam Quality Award is an award honoring the quality of PNJ brand – the quality of Vietnamese goods (Awarding unit: Ministry of Science and Technology and General Department of Standards and Quality Measurement - Year: 2008).

Strong Brand Award: A fierce testament to the quality of PNJ brand (Awarding unit: Vietnam Economic Times and Trade Promotion Agency (under the Ministry of Trade) – Year: 2006 – 2009).

Asia Pacific Top 500 Retailers Award: One of the awards that creates a great motivation for PNJ's business expansion orientation and distribution system (Awarder: Retail Asia Singapore – Year: 2004 – 2009).

Setting a Vietnamese record of "The first enterprise to invest in the most modern and large-scale jewelry production technology in Vietnam": With this record, PNJ jewelry has received the popularity of customers both at home and abroad, helping to ensure the quality and prestige of PNJ products (Unit awarded: Vietnam Digital Book Center published - Year: 2007).

Excellent Brand Identity Award 2008: The above award has helped affirm the professionalism and consistency in PNJ's Brand Identity (Awarding Unit: Vietnam Advertising Association – Year: 2008).

National brand: Has positive significance in further strengthening PNJ's reputation and quality to consumers as well as PNJ's position and development in the Vietnamese business community (Awarding Unit: Government - Year: 2010).

Asia Pacific Quality Award: PNJ Class has received high praise and high awards not only domestically but also internationally (Awarding Unit: Asia Pacific Quality Organization – Year: 2010).

(Source: PNJ has been honored as “Best Jewelry Manufacturer and Craftsman of the Year” at the Jewelry World Awards (JWA) 2021)

11 | P a g e

V COMPANY ORGANIZATION CHART

12 |P a g e

BOARD OF DIRECTORS

the company Nguyen Vu Phan Vice President Master of Business Administration

-Machine Building Engineer

10 years working at the company

Nguyen Thi Cuc Member Master of Business Administration 20 years working at the company Nguyen Thi Ngo Member Bachelor of Banking and Finance

Dang Phuoc Dua Member Bachelor of Hanoi National University

EXECUTIVE BOARD

Cao Thi Ngoc Dung General Director B.A in economics 20 years working at the company Nguyen Vu Phan Deputy General

Master of Business Administration -Machine Building Engineer Gas - Saigon Petro; 3 years work at the company

13 |P a g e

Dang Thi Loi Chief Accountant Bachelor of Business Administration More than 10 years as chief accountant at the company BOARD OF SUPERVISORS

Truong Nguyen Thien Kim

Master of Finance - Ho Chi Minh City University of Economics

B SITUATION ANALYSIS I PESTEL

1 POLITICAL

Currently Vietnam is a developed country with a stable political situation, this directly affects economic development as well as employment issues, increasing income for workers, increasing consumption levels This is also considered as an opportunity to help businesses in Vietnam in general and PNJ in particular increase their development level No matter where a business operates, it is affected by the laws and policies of that country's government Currently, the Vietnamese government has a policy to reduce export tax password there is a jewelry industry based on a number of products, for example: tax rate on parts of jewelry, of precious metal or metal clad with precious metal (code 71.13) tax rate of 25%; 30% will be adjusted down to 0% and 1% This shows that the government is supporting and encouraging the jewelry industry to have more opportunities to expand overseas, and this also contributes to the growth of the jewelry industry part for open opportunity wide market PNJ is school to India In addition to a number of tax-reduced items, the government also applies many preferential policies to attract investors' capital in foreign companies, which indirectly affects the competitiveness of domestic enterprises Most of the items belonging to Most of PNJ are high-end jewelry products that are imported directly in Italy, so import tax is always a dilemma for typical businesses in 2019, PNJ used to pay import tax of over VND 100 billion (import tax) exports of gold, silver and jewelry about 35%, including 20% and 10% VAT) Thanks to the efforts and relentless efforts, PNJ has solved this problem very well even though all business activities were forced by the government to operate due to the covid-19 epidemic.

According to the forecast of the National Center for Socio-Economic Information and Forecast (NCIF), Ministry of Planning and Investment, on the basis of the assessment of Vietnam's economy after the 2016-2020 period, considering the following factors: Domestic and foreign factors are likely to affect Vietnam's economy in the coming period, NCIF forecasts that in the period of 2021 - 2025, Vietnam's GDP growth rate will reach about 7% per year, Vietnam's GDP trend increasing, forecast 7.2% growth in 2023 Inflation is expected to increase by around 6% in 2023, this is due to the influence of the global economy and poses a number of challenges for some import and export products of PNJ According to Mr TimLeela Phan, Economist in charge of Thailand and Vietnam said that “Vietnam's economy in the first half of 2023 still faces some macro risks such as inflation, public debt and confidence recovery, but the prospect of recovery is positive in the second half of the year Vietnam's medium-term outlook remains positive Vietnam will continue to be an important link in the global supply chain and a destination chosen by many businesses.” This shows that Vietnam is controlling very well in terms of economic potential but still has a lot of influence on businesses in Vietnam in general and PNJ in particular.

15 |P a g e

And In general, people's lives in soy sauce relative to the future have improved and increased The upward trend of average income will not only create higher purchasing power in the market but also lead to different needs and wants of consumers especially in fashion, jewelry and cosmetics They are not only willing to pay for purchases, but also constantly innovate and have high requirements for diversity, richness, variation in designs, materials, and product categories.

3 SOCIO-CULTURAL

According to the Vietnam Census 2022, the total population of Vietnam reached 99,059,944 people According to page Population of Vietnam, the population as of 2020 of Vietnam has 97,338,579People, in which the rural area is 60,611,331 people, accounting for 62.3%, the urban area has 36,772,248 people, accounting for 37.70%, still has an increasing trend This is a great opportunity for the jewelry industry because of the high density of urban residents, so it is easy to distribute products The collection of urban dwellers is also higher so they will have more demand for jewelry use Grasping this sentiment, PNJ is actively opening wide retail locations in major provinces and cities, especially HCMC.

Population data by age (estimated) 2022: - 23,942,527 adolescents under 15 years old (12,536,210 boys / 11,406,317 girls) - 65,823,656 people aged 15 to 64 (32,850,534 men / 32,974,072 women) - 5,262,699 people over 64 years old (2,016,513 men / 3,245,236 women).

Considering that the most dominant age is still 15 - 64 years old, this shows that PNJ's jewelry industry is dominating because PNJ's target customers are mainly people aged 25 -35 years old accounted for the highest proportion compared to the remaining groups Most of this age group have more stable jobs, can pay for their own hobbies and have also started or married People in this group love to explore and choose reputable, innovative, and highly aesthetic brands Understanding the factors of development and increasing demand for beauty products, PNJ has come up with extremely good sales policies such as: onion products for up to 2 years, polishing and checking products for free during the warranty period, etc It shows that PNJ is making good use of social factors and is having strong development.

Science - technology factors create many opportunities and also exist many challenges, forcing businesses to learn carefully to come up with marketing strategies As one of the input factors of the production process, this is an important factor determining whether the enterprise's production activities are effective or not So this is one very important factor and it directly affects the marketing strategy of PNJ.

The CEO of PNJ said that the needs of customers change, the mindset of marketers must be different, and they must take advantage of technology to reach the right customer group Currently, PNJ has carried out the entire digital transformation, and built an omni-channel system (multi-channel sales), blockchain technology, AR, VR to help PNJ's stores become smarter PNJ's customer care department has used Conversational Marketing to solve problems with customers as quickly as possible In addition to applying technology in sales, PNJ also uses ERP system technology - SAP 4HANA to manage and maximize the potential

16 |P a g e

of resources With the outstanding development of the 4.0 era, it has helped PNJ to be agile, flexible, and easily turn the situation in business.

Nowadays, more and more consumers are paying more attention to social issues and they want their brands to also deliver and manufacture products in a way that is environmentally and socially responsible PNJ needs to be aware of this to make products that satisfy customers This means that PNJ needs to ensure a suitable working environment and salary for their employees.

Legally, PNJ always complies with all documents related to the process of importing goods as well as trading jewelry products in a transparent manner, in addition, PNJ's products have a clear certificate of authenticity origin as well as product quality assurance Because this is the jewelry and gem industry, all information documents must be checked and verified in many different steps to ensure the reliability of each item This is also a difficulty for PNJ because There are many different tax rates based on each type of product with different amounts of gold or quality that must be made separately for each different commodity group based on the government's policy of issuing resolutions.

II FIVE FORCE

The Porter's Five Forces focuses on analyzing five major factors that have an influence upon the organization, which are: competitive rivalry, the threat of entry, threat of substitutes, power of buyers, and power of suppliers.

1 COMPETITIVE RIVALRY

The competitive rivalry in the jewelry industry can be assessed by different aspects as follows:

Competitors: Based on interview responses of Mr Le Tri Thong, the general manager of PNJ, there are three companies with the largest scale in the gold sector are PNJ, DOJI and SJC, all of which are over 20 years old DOJI and SJC are two big competitors, but each side finds its own strengths to develop But in the jewelry segment, PNJ's notable competitor is the new one-year-old brand Precita, which has nearly 20 stores In addition, there are still other firms participating in this industry such as: BTMC; SBJ; and small organizations This will make the competition more diverse.

Industry Growth Rate: According to the Ministry of Industry and Commerce Vietnam, with a compound growth rate of 10% per year and the need to accumulate gold bars gradually giving way to gold jewelry, many forecasts suggest that in the future, the Vietnamese gold jewelry market will have a large room for growth Evaluation of Vietnam's jewelry market, the representative of Rong Viet Securities Joint Stock Company said that the growth room of the Vietnamese gold jewelry market is still very 18 large when the demand for gold bullion is gradually giving way to jewelry In addition, the middle-rich class is growing rapidly in Vietnam (estimated to account for 1/3 of the population by 2020), who are modern-minded consumers who need to express a high body and target customers of fashion jewelry retail chains In fact, in the past few years, realizing that the

17 |P a g e

gold jewelry market has grown well, the businesses in this industry have continuously expanded their business networks For example, Phu Nhuan Jewelry Joint Stock Company (PNJ) has continuously opened more than 30 stores in 2019 By the end of 2019, this business has 353 stores, covering all over the country.

Fixed Costs: According to gold price list updated daily of Dantri, Agency of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, the fixed price of PNJ compared to all competitors are listed below:

Table 1: Fixed Costs and Price of PNJ and Competitors In general, the fixed costs are high, resulting in the exit barriers being high.

Differentiation: There is not too much difference between the qualities of jewelry between companies, however, the fashion designs are different According to Ho Chi Minh City Securities Corporation (HSC), PNJ does not have a big competitor in branded jewelry retail in Vietnam In terms of the number of retail stores, exquisite design, ingenious processing, new collections and the popularity of the brand, HSC believes that PNJ beats all other competitors in Vietnam like SJC and DOJI Those factors make PNJ different from other organizations in the market Therefore, PNJ is facing a medium level of competitive rivalry.

2 THREAT OF ENTRY

The threat of new entrants can be evaluated through a several of entry barriers and advantages as follows:

- Expertise and Capabilities: It takes billions VND to open a gold, silver and gemstone store Therefore, new firms may find it very difficult to join to jewels industry as it requires a lot of investment, capabilities, assets and experiences to compete with other businesses.

- Access to Supply or Distribution Channels: Government regulations are still tightening the import of gold into the country, so finding a stable gold supply is difficult for new businesses to enter this industry.

- Legislation: According to Enterprise Law 2014, when opening a gold store, organizations must pay attention to some conditions of government laws such as: Have charter capital from 100 billion VND or more Experience in gold trading for 2 years or more.

- Furthermore, gold and gold-related businesses are under the management of the State Bank, so that new firms, who want to join the jewelry industry must be controlled by the State Bank, leading to the problem that they cannot raise their product's price Therefore, the threat of new entrants that PNJ may face is quite low.

18 |P a g e

3 THREAT OF SUBSTITUTES

The silver, gold and diamond jewels are affordable to upper class and middle class, while lower class tend to wear classic accessories, which are handmade or made by metals, fabric or Feng Shui stone According to research, the middle-rich class, who can afford valuable accessories only accounts for 1/3 of Vietnam's population, which means the rest 2/3 population have a tendency to buy inexpensive fixtures and fittings Moreover, there is one reason they do not have a habit of wearing valuable items because they are afraid of being stolen In short, the threat of substitutes that PNJ is facing now is very high.

4 POWER OF BUYERS

PNJ occupies nearly 40% market share in the gold, silver and gem jewelry making and retail market in Vietnam with a production capacity of over 4 million products per year Jewelry products crafted by PNJ have been distributed directly to millions of customers through nearly 400 retail stores, e-commerce channels and indirectly through more than 3,000 wholesale customers nationwide as well as have been exported to 13 countries and regions Through that, PNJ has clear policies for easy supervision and business Specifically, PNJ has a clear exchange policy and warranty policy for their products For example, for all kinds of jewelry, the repurchase rate is between 50% and 80% and the exchange rate is from 60% to 90% Therefore, customers must comply with PNJ's policy and have no right to deal prices According to the Association of High Quality Vietnamese Goods in 2019, PNJ won the title of high quality Vietnamese goods for 22 consecutive years From there, it can be seen that the quality of PNJ's products has been recognized by consumers, and PNJ has brought itself a large number of loyal customers This means that PNJ's buyers are less price sensitive, making buyers' bargaining power low.

5 POWER OF SUPPLIERS

The input materials of PNJ are raw gold, raw silver, gold bars, gemstones and diamonds, imported from domestic and foreign sources Due to regulations restricting import of gold bars from the State Bank, PNJ's main source of gold is purchased in the domestic market for recycling and jewelry production Gold is influenced by the law of supply and demand in the market as well as by the domestic and foreign currencies that buy it, which are mainly USD Therefore, the suppliers cannot determine the price of gold in the market Due to not being limited in legal terms, PNJ mainly imports raw silver through a number of suppliers in Belgium Regarding gemstones, PNJ imports mainly from Thailand and Hong Kong In addition, PNJ imports diamonds from many different sources and is closely tested The raw materials supplied by the suppliers are fairly standardized, less differentiated and have low switching costs This helps PNJ to switch suppliers more easily, making the bargaining power of suppliers weak Moreover, the industry that PNJ does business in is an important customer of suppliers This means that industry profits are tied to the margins of the suppliers Therefore, the bargaining of suppliers in the jewelry industry is low.

In the jewelry industry, PNJ has to deal with the medium competitive rivalry, low threat of entry, high threat of substitutes, low power of customers, and low power of suppliers Therefore, that is an attractive industry for PNJ to compete in.

19 |P a g e

III 5M

PNJ's input materials are mainly raw gold, raw silver, gold bars, precious stones, and diamonds The peculiarity of this group of materials is the constant volatility of prices, creating significant risks for businesses that do not have an effective method of raw material price management In order to limit the negative effects from fluctuations in input material prices, PNJ applies the following policies to manage:

- For raw gold: PNJ's main source of raw gold comes from direct purchases of current customers or from other domestic gold sources.

- For raw silver: Due to not being subject to legal restrictions, PNJ mainly imports raw silver through a number of supply partners such as MétauxPrécieux SA Métalor -For gems: Through our partner, Netis Gems in Vietnam This company imports raw materials and PNJ reprocesses them.

- Diamonds: PNJ imported from Forte, bought from local people and had a PNJ Lap room to evaluate product quality.

All production machinery of PNJ uses technology from Italy and Germany, two powerhouses in the jewelry manufacturing industry A newly designed product is approved, transferred to the factory, in just one morning, there will be the production process, time for each stage, loss cost, labor cost and total cost Outstanding production capacity ensures supply for the nationwide PNJ brand store system, which by 2020 will reach 500 stores, especially with enough capacity to serve ambitious goals such as: bringing PNJ's products to 12,000 gold shops across the country.

During 33 years of establishment and development, PNJ's leaders and employees have always thought that people are the decisive asset for the success of the business Besides, PNJ also owns an "asset" that helps ensure the sophistication and aesthetics of jewelry, which is people An exquisite piece of jewelry is formed thanks to the sophistication of the designer and the ingenuity of the jeweler who crafted it PNJ's design team currently has a team of more than 50 professional, well-trained designers in which PNJ's current creative director Ms Vo Ngoc Thuy Anh is a famous name in the fashion design world, Top 3 style designers of 2017 voted by Elle In PNJ, there are more than 1000 jewelers who PNJ has accumulated to recruit and many who have been trained and selected by PNJ itself for many years As of 2014 PNJ owned 70% of the Jewelry group nationwide.

In addition to the growth of business results, PNJ's financial structure also recorded an improvement in the first half of this year thanks to a good operating cash flow of VND 1,909 billion, mainly due to high profits and reduced inventory value Although the initial investment cost is for machinery, equipment, manpower, design very high, but the jewelry segment helps PNJ expand its profit margin and will occupy a pioneering position in this business in Vietnam.

20 |P a g e

5 METHOD

In terms of product production, PNJ uses technologies such as laser technology, CADCAM technology, casting technology with stone granules, cutting technology with diamond knives, 3D printing technology to make the products more diverse and tend to be highly specialized Currently, PNJ factory in Ho Chi Minh City HCM focuses on high-end products with high technology content to replace imported products.

For production, PNJ's water input is always saved because PNJ uses leading Italian machines and technologies, so the demand and consumption when using water is low and PNJ determines the most important measure is to build an appropriate wastewater treatment system and the quality of treated water meets the standards of discharge into the receiving source The wastewater treatment system applies according to physicochemical technology combined with microbiology This is modern technology, large investment costs.

21 |P a g e

paying with a bank card ABC products Brand partner: •Swarovski Gemstones Group (Austria)

•The Walt Disney Company South East Asia

KEY ACTIVITIES • Focus on product design • Sponsor programs and game shows for guests jewelry collections with a variety of eye-catching and trendy designs PNJ's products also have diverse prices suitable for each customer segment.

CUSTOMER RELATIONSHIPS •Online Policy •Exchange warranty policy •User information protection

Up to now, the enterprise has owned a human resource of more than

Offline Distribution Channel: PNJ's head office is located at 170E Phan Dang Luu, Ward 3, Phu Nhuan District, Ho Chi Minh City With 353 stores nationwide, the PNJ system is divided as follows: 22 |P a g e

and rich creativity is

PNJ's revenue is mainly from retail and gold bars Reco business results in the first 7 months of 2022, with high above the low base of the same period in 2021, but the of Phu Nhuan Jewelry - Gems Joint Stock Company (P Jewelry - PNJ) mainly comes from retail and gold bar b

2 MODEL CANVASS OF DOJI

+ BIDV:(comprehensive cooperation 2022 – 2027) financing medium-term, long-term and short-long-term for investment activities and production and business activities of the DOJI + Vietcom Bank: Project finance credit contract and retail credit cooperation agreement - Mining partner + close cooperation on equipment and machinery Vietnam Coal and Minerals

owned by the company - Producing new jewelry designs and designs - Increase the level of distribution to become a leading position in the distribution of gold bars and gems in the North and Central regions - Build and create brand image with impressive media campaigns.

basic values are Integrity - Creativity - Knowledge - Collaboration - Kindness, thereby raising the ethical factor, coordinating to keep human and intellectual resources to bring the best high performance.

policies - There is a gift policy

for loyal customers when buying DOJI

Group, Japan's Imacbc Company, Thailand's Beauty Gems Company, Taiwan's Hatta Gems DOJI has nearly 2000 staff core employees across the country Possessive Gemstone quarries in Yen Bai, Nghe An provinces…, which are considered to have a lot of potential for high quality Ruby, Sao Ruby, Sapphire, Spinel…in Viet centers, stores spread across the country along with more than 400 agents, points of sale , creating a product distribution system covering most regions of Vietnam

Core product lines such as High Jewelry, Diam Group still maintain revenue growth of about 25 - 3 9 months of 2021.

UhIt is estimated that the DOJI will increase from compared to last year.

25 |P a g e

V COMPANY ANALYSIS

In the context of the retail market recovering in the third quarter, it is gradually catching up with the growth rate in the same period before the epidemic In particular, the commodity retail group achieved good growth, PNJ recorded net revenue in the third quarter of 2022 reached VND 7,364 billion (up 739% over the same period) and profit after tax reached VND 252 billion, compared to -160 billion VND in the same period in 2021 due to the closure of 241/332 stores to comply with COVID-19 prevention regulations.

In particular, accumulated in 9 months, PNJ's net revenue and profit after tax reached VND 25,574 billion (up 104.4% over the same period) and VND 1,340 billion (up 132.7% over the same period), respectively.

PNJ representative said that the company's revenue mainly came from the retail channel and accumulated in 9 months, PNJ revenue increased by 113.3% over the same period thanks to good growth in brands and regions; highly efficient customer exploitation activities; Marketing programs in the third quarter are flexibly implemented in accordance with the market context and customer tastes.

At the same time, revenue also comes from the wholesale channel, with the recovery of the jewelry market in 2022 and an effective wholesale customer development strategy.

On revenue growth by channel:

- Cumulative retail channel revenue increased 15.9% you In February, PNJ had many customer-oriented products and marketing activities dedicated to Valentine's Day and Fortune Day In February, PNJ's jewelry sales achieved a growth of 39.3% for jewelry on The God of Fortune (8th-10th lunar day) 26 compared to the god of fortune ceremony in 2020 The proportion of retail channel revenue reached 52.0% with a change over the same period in 2020.

- Accumulated wholesale revenue increased by 17.1% yoy, the proportion of wholesale channel revenue accounted for 12.9% in the revenue structure - Gold bullion revenue increased by 94.2% yoy in the first 2 months of 2021,

particularly during the Shen Tai holiday 2021, gold bullion revenue achieved a growth of 72.8% compared to the God of Fortune holiday 2020 The share of gold bullion revenue increased to 31.5% in the company's revenue structure.

- Accumulated gross profit margin reached 18.4% compared to 22.1% in the same period of 2020 due to the shift in PNJ's revenue structure when the proportion of gold

26 |P a g e

bars increased in the first 2 months of the year due to shopping demand for traditional holidays such as traditional New Year and Fortune Day.

- Total operating expenses in the first 2 months of 2021 increased by 21.7% over the same period in 2020 when marketing programs and sales were promoted In February, PNJ upgraded several PNJ Silver stores to PNJ Gold PNJ's number of stores at the end of February was 341 including: 307 CH PNJ Gold, 27 CH PNJ Silver, 3 CH CAO, 3 CH PNJ Art, 1 CH Style and 69 PNJ Watch under the S-i-S model.

VI SWOT OF PNJ

HIGH TECHNOLOGY AND TECHNIQUES IN JEWELRY MAKING

Currently, PNJ owns a modern production line and is constantly being invested and developed PNJ has nearly 100 members of a team of design, creative and well-trained experts at home and abroad The force of artisans and skilled jewelers is more 27 than 1,000 people, along with a team of seasoned and long-time technical experts in the industry in the fields of gemstones, precious metals and manufacturing technique.

At the same time, PNJ has also put the 2nd factory in Long An into operation, "dividing the fire" for the factory in Ho Chi Minh City HCM, aiming at high-end products with high technology content, minimizing imported products, best meeting the needs of the domestic market and export.

PNJ's production, supply capacity and supply chain autonomy have become a huge advantage, helping PNJ overcome the obstacles caused by the pandemic, best meet customer needs, in the context of global supply chain disruption.

Thereby, these are certain achievements that help PNJ continuously set historical milestones for Vietnam's jewelry industry when it was officially honored as the Best Retailer in the Asian jewelry industry in 2019, and became the Best Retailer in Asia Pacific in 2020.

EXPERIENCE IN THE JEWELRY INDUSTRY

Since 1988, PNJ has more than 20 years of experience in the jewelry industry Along with PNJ's unique achievements such as becoming the No 1 retailer in Asia's jewelry industry and shaking hands with Walt Disney in 2018, becoming the best enterprise in the Asia-Pacific jewelry industry and being recognized by Forbes Vietnam valuation of 93.1 million USD, up 18% compared to the 2019 assessment period and some other typical components.

27 |P a g e

With extensive experience and achieved many successes during 20 years in the profession, PNJ has also created a reputation for quality and trust in this brand.

STRONG BRAND, TRUSTED BY CONSUMERS

According to Forbes Vietnam, PNJ's brand value in 2020 reached 94.1 million USD, up 15.5 million USD compared to the 2019 assessment period, promoted 3 places to 21st place and continued to hold the No.1 position in the personal consumer goods industry PNJ is also the only jewelry brand in Vietnam to appear on the ranking This is a strong point to pay attention to when analyzing PNJ's SWOT model.

EXTENSIVE STORES AND AGENTS FOR DISTRIBUTION AND PRODUCT INTRODUCTION

PNJ distributes nationwide with a system of 353 stores nationwide Among them: 286 PNJ Gold stores, 63 PNL Silver stores, 4 CAO Stores, 24 PNJ Watch stores.

PNJ's stores are concentrated in relatively large cities, with people with decent average incomes PNJ's market share and distribution channels grow steadily year by year, so PNJ focuses mainly on distribution channels to make an impact because distribution channels will become the perfect tool to connect the company with customers.

PNJ currently has 4 warehouses in Ho Chi Minh City, Can Tho, Da Nang and Hanoi with a strict level of security due to the characteristics of high-value stored goods For 28 transportation to branches as far away as Da Nang, Hanoi, PNJ has specialized air transport specialists and specialized cars in the presence of authorities PNJ's distribution activities on a nationwide scale are carried out periodically on a weekly basis.

INVEST IN R&D A LOTSs

R&D is a research process that aims to create positive innovation and innovation for businesses Most companies now spend their budgets and resources on R&D activities to develop new products or enhance existing processes and products - Recognizing the primary importance of R&D in the jewelry business, PNJ has invested heavily in this department both in terms of human resources and technology As expected, PNJ's new collections and innovative products were highly appreciated by the public and critics Jewelry produced by PNJ is distinct and specific to specifically targeted segments What makes PNJ's R&D department stand out is the presence of a team of four jewelry specialists among twenty artisans who work closely together on each product.

THE SHARE OF EXPORTS IN PNJ'S TOTAL REVENUE IS VERY SMALL PNJ goes international step by step, first PNJ’'s products to the market Currently, PNJ's products have gone to about 10 countries around the world (through export) but are not strong because they have not opened a retail system in foreign markets.

28 |P a g e

The proportion of exports in PNJ's total revenue is also very small because the characteristics of the Vietnamese market are higher than international gold prices, so it is not conducive to exports, moreover, it is related to policies.

RAW MATERIALS ARE MOSTLY IMPORTED FROM ABROAD

PNJ's input materials are mainly raw gold, silver raw materials, gold bars, precious stones, diamonds The peculiarity of this group of raw materials is the constant volatility of prices, creating significant risks for businesses that do not have effective methods of managing raw material prices.

For gems: Through netis gems in Vietnam It imports raw materials and PNJ reprocesses them.

Diamonds: PNJ imported from Forte, bought in the population and has PNJ Lap room to evaluate product quality.

GOLD BULLION BUSINESS AND WHOLESALE GOLD JEWELRY ARE WEAK Trading in gold bars does not bring significant profits to PNJ due to very low profit margins (selling 01 amount of gold 55.25 million VND only profit 450,000 VND, rate of 0.03%) However, PNJ still maintains this segment of activity because this is the basic 29 needs of Vietnamese consumers and also the basis for customers to generate demand for other PNJ categories such as jewelry, accessories, and watches - Wholesale gold jewelry: PNJ's customers are enterprises trading gold, silver and gemstones across the country that do not have the conditions and facilities to be able to produce jewelry in large quantities These product lines mostly do not coincide with PNJ's product portfolio and have lower outsourcing quality as well as design, design and market segment positioning than PNJ branded products.

THE PRODUCT COST IS EVEN HIGHER THAN THE GENERAL GROUND Currently, PNJ belongs to the chain of stores dealing in the golden industry with high prices compared to small stores, which also makes customers consider choosing other stores instead of PNJ because price is also an important factor in purchasing decisions.

PRODUCTS ARE STILL FOCUSING ON SERVING DOMESTIC DEMAND, NOT FOCUSING ON DEVELOPING FOR THE EXPORT MARKET

Although PNJ has had the opportunity to cooperate with many famous brands in the world such as Walt Disney, Pandora, but those products are not focused on foreign markets, PNJ only focuses on advertising for the domestic market via needs of Vietnamese people Compared to modern machinery technology and having its own laboratory to verify the quality of gemstones, PNJ is not completely inferior when it can unleash itself, confidently go to foreign markets and export products However, up to now, PNJ has not really excelled in foreign markets.

3 OPPORTUNITIES

HIGH GOLD JEWERLY CONSUMPTION TREND 29 |P a g e

Global demand for gold has rebounded after plummeting under the impacts of the Covid-19 pandemic since 2020 The demand for gold jewelry in Vietnam has increased by 11% in 2021 The demand for gold bars and gold coins for the whole of 2021 in Vietnam reached 31 tons, up slightly from 29 tons in 2020.

In particular, the global demand for gold bars and gold coins in the whole year 2021 reached 1,180 tons, up 31% over the same period in 2020 in the context of individual investors looking for investment channels to protect assets when inflation increases and economic instability caused by the Covid-19 pandemic.

GOLD MARKET DEVELOPMENT

According to the latest gold demand trends report of the World Gold Council (WGC), the total gold demand for the whole year 2021 in Vietnam is at 43 tons, achieving a growth rate of about 8% The gold demand trend report for the first quarter of 2022 30 from WGC said that the total gold demand in this quarter of Vietnamese consumers reached 19.6 tons, up 6% over the same period last year.

Specifically, along with the recovery of global gold demand, consumer gold demand in Vietnam increased from 18.6 tons in the fourth quarter of 2021 to 19.6 tons in the first quarter of 2022, up 6% over the same period last year This growth was driven by a 4% increase in total demand for gold bullion and gold coins, from 13.5 tons in the first quarter of 2021 to 14 tons in the first quarter of 2022, and a 10% increase in demand for gold jewelry during the same time period, from 5.1 tons to 5.6 tons.

In fact, gold is a high-value asset, present in many Vietnamese families in particular and Asia in general, with the concept that gold brings good luck and long-term peace of mind to life The demand for jewelry of Vietnamese consumers gradually increases as life is improving In big cities, jewelry purchasing power continues to increase, while in rural areas, people are starting to change their shopping habits Specifically, instead of buying gold for the purpose of hoarding, they have a need to buy jewelry in the middle and high-end segments.

CONSUMER TRENDS IN THE GEMSTONE MARKET

Consumer demand is expanding: this can be an opportunity or a challenge for brands if they don't have the right growth strategies Improving outdated products or developing new products in accordance with customer trends and weaknesses or simply implementing incentives with prices to be able to reach many customer segments are issues that business in the industry need to pay attention to.

Customers expect to receive personalized products at sales agents: When customers have a need for personalized products, if the store or agent can provide such products to customers, it will help the brand to serve more customer groups, increase business and competitiveness for businesses.

The gemstone industry can focus on supporting initiatives that contribute to ensuring the origin of gemstones and diamonds; Proper warranty and return programs along with

30 |P a g e

traceability enhance customers' trust and peace of mind Modern technological machinery promotes model development and competes with the market.

With the strength of high technology and professional production techniques, PNJ can completely compete with other competitors in the same industry In addition, technology is more and more developed and advanced, giving birth to modern machines, suitable for producing more models that need to be produced more carefully and advanced.

THE ABILITY TO EXPAND AND DOMINATE THE MARKET IS HUGE PNJ has been branded for more than 20 years, has a strong foothold in the industry, so if PNJ expands the market, it is possible.

Besides, PNJ is one of the few enterprises with its own machine technology and laboratory to test products, bringing trust and prestige to customers when buying at PNJ, so PNJ can dominate the market, win the trust and loyalty of customers.

4 THREATS

FIERCE COMPETITION WITH BUSINESSES IN THE SAME INDUSTRY The world jewelry industry is already familiar with famous brands such as Tiffany, Swarovski or Jacobs & Co In Vietnam, the market is "oversized" by "emerging" brands such as Shimmer or Floral Punk.

Currently, the jewelry industry is divided into 3 different segments with low-end, mid-end and high-end With thousands of large and small brands, the market is "saturated" with names like PNJ, DOJI, SJC, Bao Tin Minh Chau, Phu Quy and smaller brands like Shimmer and Floral Punk Brands began to compete fiercely in this segment, as shown by the fact that jewelry stores "grew" quickly.

With 200 retail stores, Bao Tin Minh Chau is the most potential competitor that can threaten PNJ right now However, the market situation is quite clear with BTMC only having a distribution system from Quang Tri, while PNJ has more than 80% of stores in the South Furthermore, when jewelry demand in Vietnam reaches the Asian average, this will be a big room for both giants to increase market share through strong supply and distribution chains PNJ and Diamond World are both focused on innovation and promoting retail The concentration of this market is still low, because more than 70% of the market belongs to small stores A big piece of cake for two businesses to exploit, the opportunities will be divided equally if the business goes in the right direction.

If PNJ has a strong system advantage, small jewelry companies are more competitive on price because price is the most important factor in making purchasing decisions.

HEAVILY INFLUENCED BY EXTERNAL FACTORS: EPIDEMICS, NATURAL DISASTERS, ETC V TO PRODUCTION PROCESSES AND BUSINESS OPERATIONS.

In July 2021, it was a special month due to the complicated and serious situation of the Covid-19 epidemic nationwide and seriously in Ho Chi Minh City, so PNJ temporarily

31 |P a g e

closed 274 stores across the system to strictly implement social distancing In July, PNJ only reached VND 489 billion in net revenue, down 62.6% over the same period The company recorded a loss after tax of VND 32 billion while in the same period of July 2020, profit of more than VND 55 billion in just one month of social distancing.

The COVID epidemic caused global business to freeze and severely affected, so PNJ's supply of goods and materials was also seriously affected 32 Gold price fluctuations in the country and the world.

The price difference between SJC exclusive brand gold bars and world gold is widening, putting buyers at risk Meanwhile, the demand for gold jewelry has increased, but gold jewelry manufacturing and trading enterprises often lack raw materials due to lack of import and export.

The world gold price has increased in recent years, sometimes exceeding 2,000 USD / ounce, but the price of SJC brand gold bars in the country has an increasingly large difference with the international gold price, at one time up to 19 million VND / amount and now about 18 million VND / amount The reason is that the domestic gold market is closed to internationals, so the price is difficult to connect, putting gold buyers in the domestic market at risk, many people want to convert to copper or other investment channels However, the demand for gold has always been large, even increasing for Asians in general, Vietnam in particular Gold is considered as a savings and dowry of Vietnamese people, and is considered a safe haven when the economic situation is difficult, the Covid-19 epidemic is complicated, especially high inflation.

STATE MANAGEMENT OF THE GOLD MARKET IS INCREASINGLY STRICT Circular 22/2013/TT-BKHCN stipulates that gold jewelry and fine arts must be in accordance with and in accordance with standards of quality and measurement The product must have a symbol code, gold content on each product to be circulated on the market The allowable error level is also only from 0.1 – 0.3% In addition, measuring instruments must also be inspected by the Department of Metrology Standards and Stamps to meet the standards and lead seals to be put into use in business.

In the gold jewelry market, consumers often use 24k and 18k, 14K gold products But, in fact, not many stores guarantee that their products are old enough For example, gold circulating on the market is mainly 18K gold, equivalent to 7.5 years old but "cheated" to 7 years old, even 6.8 years old; 14K gold, or 5.85 years old, was also reduced to 5.5 years old.

WORLD ECONOMIC INSTABILITY

The global economy is sending warning signals, amid high inflation, a campaign to raise interest rates, and the Russia-Ukraine war at the same time putting pressure on the economy At the moment, the likelihood of the global economy falling into a recession is 98.1% As central banks around the globe step up efforts to bring inflation under control, economists and investors are increasingly worried.

32 |P a g e

33 |P a g e

5 SWOT TABLE

OPPORTUNITIES (O) 1 High gold and gold jewelry consumption trend 2 The gold market is on the rise

3 Rising consumer trends in the gemstone market 4 Modern technological machinery promotes model development and competition with domestic and foreign markets 5 The ability to expand and dominate the market is huge

THREATS (T) 1 Fierce competition from domestic and foreign enterprises in the 3 Gold price fluctuations at home and abroad

1 High technology and techniques in jewelry making 2 More than 20 years of experience in the jewelry industry

3 Strong Vietnamese brand, trusted by many people 4 Spacious stores and agents for product distribution and introduction

5 Invest in R&D a lot

SO STRATEGY 1 Domestic market entry strategy (S3+O1, S3+O2, S3+O3, S4+O1, S4+O2, 1 The share of exports in PNJ's total revenue is very small.

2 Raw materials are mainly imported from abroad 3 Trading in gold bars and retail gold jewelry is still weak.

4 The cost of products is higher than the general level 5 Products are still focused on serving domestic needs, not focusing on developing for export markets

VII.STRATEGIES PROPOSAL 1 SO STRATEGY

Domestic market entry strategy: Effectively using available financial and brand strength, capturing the needs and trends of people, this strategy is likely to bring high profits to PNJ International market development strategy: Investing in production technology, the company actively creates long-term relationships with foreign partners, thereby approaching new production technologies, current fashion trends, advanced management methods to meet the strict criteria of foreign enterprises.

2 ST STRATEGY

Product differentiation strategy: Combined with high technology capabilities and fierce competition of the industry, PNJ can meet the needs of customers differently 35 and better than other competitors In addition, combining R&D and creative team helps PNJ develop more models suitable for consumer tastes in the pepper market.

Product development strategy: Focus on promoting investment in model research and development with PNJ's technologies such as laser & UV prototyping machine, CNC machine - specialized machine for processing jewelry, etc v to design product designs in line with current trends.

3 WO STRATEGY

Horizontal integration strategy: Increasingly diversifying items to gradually be more proactive in providing gold jewelry to target customers while reducing the pressure of suppliers (the quality of goods is not inferior to imports but has cheaper prices).

Horizontal integration strategy: Enterprises focus on opportunities when holding standard product quality, thereby expanding market share more.

35 |P a g e

C MARKETING STRATEGY I S-SEGMENTATION

SEGMENT BY REGION/GEOGRAPHY

Currently, the retail stores of PNJ are expanding more and more in the provinces of Vietnam In 2022, the PNJ system opened 33 new stores and upgraded 31 PNJ Gold stores; By the end of 2022, the PNJ system had 364 independent stores including 343 PNJ Gold stores, 7 PNJ Silver stores, 3 CAO Fine Jewelry stores, 5 Style by PNJ stores, 3 PNJ Watch and 3 PNJ Watch stores 3 PNJ Art stores The PNJ team is constantly looking into whether the middle class has enough income to open stores and how many stores should open At the same time, PNJ also has a vision of reaching out to the world to become the leading jewelry retailer in Asia.

SEGMENTATION BY AGE

Vietnam's population structure is considered to be in the ideal stage with 69.3% of the total population in the working age (15 to 64 years old) In addition to the young population structure with women making up the majority (50.1%), working age people with increasing income sources will tend to spend more strongly than other population groups.

PNJ Silver Store: Targets young customers aged 15-25 The customers of this group are often those who love fashion accessories and like to assert themselves.

PNJ Gold store is aimed at female customers aged 25-45 These customers usually have a good average income and spending.

CAO Fine Jewelry Store: The customer group that PNJ wants to target is successful businessmen aged from 30-45 years old, providing luxury brands with unique and sophisticated designs Are overseas Vietnamese customers, or foreign tourists… who are willing to pay for expensive jewelry products.

SEGMENTATION BY INCOME

In today's jewelry market, more and more competitive competitors are born, PNJ has become one of the most successful gold and silver jewelry manufacturers in Vietnam, famous for its product quality and reputation reliable prices As a successful jewelry brand in Vietnam, PNJ is not known for its sophisticated and high-end designs With 37 an increasing number of high-income customers in the market, PNJ decided to target many different market segments, including the high-end segment, as well as overseas Vietnamese and tourists Foreigners are willing to pay high prices for luxury jewelry with originality and sophistication design This demonstrates PNJ's commitment to diversifying products and expanding its customer base to achieve its goal of becoming Asia's leading jewelry retailer Below is the general summary:

36 |P a g e

Country region Northern Vietnam-Red River delta, North central coastal; Southern Vietnam – Central Highlands, South central coastal, South Eastern, Mekong river delta

Density Urban, Suburban

Married with children

Income Middle income (B+ 6 to 13 million VND/month) to high income (class A 13 to20 million VND/month)

Occupation Professionals, white collars; celebrities, affluent businessmen, business women, senior executives.

37 |P a g e

Generation Generation X, Generation Y

Nationality Vietnamese, foreigners occasionally.

Social class Middle class to upper class

Lifestyle Succeeders, aspirers, mainstreamers

Personality Confidence, materialistic, acquisitive, self-expression

Occasions Special occasions: Wedding, engagement, prom, formal meeting, diner gala party and celebration.

Benefits sought

Aesthetically pleasing, symbolize wealth and social status, express personality, increase self-esteem and boost confidence.

User status Potential user, first-time user, occasional users and ex-users.

User rates Occasional, light to medium

Loyalty status Somewhat loyal

Attitude toward product

Positive, increasing level of customers’ satisfaction.

38 |P a g e

II T-TARGET CUSTOMERS

PNJ targets a broad range of customer profiles, offering different products and services that cater to their preferences, lifestyle, and financial capacity The company has been conducting extensive research to better understand customers' needs and deliver high-quality jewelry products that meet their expectations.

The four brand items are created to specifically address the needs of various customer demographics Furthermore, PNJ operates in a market with high segment structural attractiveness and more than 62% of the population due to the emergence of the middle class and the favorable economic outlook As a result, PNJ is employing differentiated marketing as its marketing strategy.

III P-POSITIONING

In the jewelry market with too many competitors and high competition, PNJ has become one of the most successful gold and silver jewelry manufacturers in Vietnam, 40 famous for its reputation for product quality and price trust However, the number of high-income customers is increasing in the market, PNJ has orientations and decides to expand the segments from mid-end to high-end market.

As a leading enterprise in the jewelry industry, always standing firm in the face of storms At the Annual General Meeting of Shareholders in recent years, the leadership has come up with a new vision to turn PNJ into a leading company in Asia in the field of jewelry manufacturing and retailing Help customers celebrate beauty and bring products to the world To orient the development for each brand, the company has invested a lot of effort The market research and the study of consumer attitudes have been carried out on a large scale by PNJ in Ho Chi Minh City and Hanoi to make appropriate planning for marketing and business in the immediate and long-term years The more than 100,000 USD that PNJ Company has spent on building a high-end jewelry brand CAO is an example.

PNJ's goal is to build a high-end Vietnamese jewelry brand that can compete with world famous brands PNJ also proposes to build a sponsored brand relationship between the Parent Brand PNJ and its sub-brands, through which customers can realize that PNJ is behind supporting the sub-brands, helping customers to feel trust in PNJ's sub-brands.

39 |P a g e

POSITONING MAP

With advanced technology and a dominant number of highly skilled technicians, PNJ is creating the highest quality jewelry products for the domestic market Higher quality comes with a higher price tag, and customers willing to spend a lot of money will have jewelry of higher value and finer craftsmanship, crafted with precious and concentrated materials for the South with gold jewelry that has a more fashionable design DOJI follows, it has a high value mainly covering premium prices for diamond and gem products SJC and BTMC have advantages in the gold bar business, but they are inferior in the jewelry business as well as BTMC targeting customers in the North with gold jewelry designed in traditional style PNJ is a leader in the gold jewelry segment- the biggest and most potential segment of the industry Its biggest rivals, enormous traditional retailers, are seeing a serious decline in trust, which is their primary competitive edge In almost every area, including store count, brand recognition, product quality, trendiness, customer service, and supply control, PNJ significantly outperformed small vendors and even BTMC This has increased the likelihood that PNJ will succeed in taking market share away from the discredited tiny businesses.

IV POP&POD 1 POP

Product quality is good and reliable.

Diversity of designs, models, and types of products The price is in line with the quality of the product.

Wide network of stores and points of sale, easy to access and purchase Professional and dedicated customer service.

A reputable brand with a long history in the Vietnamese market.

Products are made from precious materials, unique, beautiful, and designed, manufactured by experienced and skilled professionals and artisans, customized and exclusive.

40 |P a g e