marketing plan for vinfast lux a2 0

With the mission "To create a better life for the Vietnamese people", Vingroup has developed a diversified portfolio across several business segments: Technology Heavy industry Consumer

INTERNATIONAL SCHOOL - VIETNAM NATIONAL UNIVERSITY

1 Executive Summary

Vingroup, previously Technocom Corporation, was established in Ukraine in 1993 Technocom had a thriving instant noodle and fast food business from 1993 through the 2000s Vingroup began operations in Vietnam in the early 2000s with two important brands: Vincom and Vinpearl Vinpearl JSC and Vincom JSC amalgamated in January 2012 to establish Vingroup Joint Stock Company

With the mission "To create a better life for the Vietnamese people", Vingroup has developed a diversified portfolio across several business segments:

Technology Heavy industry Consumer Retail Property

Hospitality and Entertainment Healthcare

Education Agriculture

In each of its sectors, Vingroup continues to set and lead consumer trends, presenting Vietnamese consumers to a totally new, modern lifestyle with international-standard products and services Vingroup has established a well- known and respected Vietnamese brand and is pleased to be one of the country's leading private businesses

VISION

With pioneering aspirations and a long-term investment strategy, Vingroup positions itself as the property developer and retailer in Vietnam, with growing reputation and position on the global economic map and a portfolio of quality products and services

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Vingroup is completely prepared to carry out its plans and makes every effort to satisfy its obligations, even going above and beyond what customers and partners anticipate, notably in terms of product quality, services, and implementation progress

INTEGRITY

Integrity is a key component of Vingroup's business strategy We follow the law to the letter and uphold the highest standards of professional and social ethics

Vingroup has a customer-centric strategy, prioritizing the interests and desires of its consumers before its own Vingroup endeavors to give the greatest products and services to its consumers, and success is measured by customer happiness

Vingroup adheres to a customer-service philosophy, taking on projects only when it is sure in its capacity to complete them

CREATIVITY

In each of Vingroup's goods and services, creativity is seen as a source of energy and innovation Creativity enables the Group to carry out its idea of "Dare to Think, Dare to Do," which aims to create a learning organization that incorporates new scientific and technical advances into its manufacturing and administration The Group constantly working increase is to its efficiency and

improve the quality of its products and services

Vingroup encourages a "Learning enterprise" development attitude in which employees are not afraid to learn, self-study, and push above their limits

SPEED

Their guiding idea is "Speed and efficiency in all activities," and their fundamental value is "Fast Decision Fast Investment Fast Deployment Fast – – –Sales Fast Change and Quick Adaptation." –

According to Vingroup, "glory belongs to those who meet deadlines." Vingroup recognizes the need of speed while maintaining a high level of quality

QUALITY

Vingroup's mission is to bring together the greatest people to deliver the finest products and services while also contributing to the development of a better society

Vingroup aspires to build a human capital force that is competent and efficient, with strong ethics and knowledge, and where each member is an expert in his specialty

Vingroup believes that the Group should resemble a healthy, well-shaped body free of excess fat We hire and keep the best people for each job, allowing each employee to advance in their position or risk being fired if they aren't

HUMANITY

With kindness, compassion, and a humanistic attitude, Vingroup cultivates deep ties with our customers, business partners, colleagues, investors, and society

We consider our employees to be our most valuable resource, so we create a professional, dynamic, creative, and caring work atmosphere for them, as well as a competitive compensation package and equal development possibilities for all.

Vingroup promotes "Harmony" via honesty, integrity, and compassion Teamwork, solidarity, discipline, and loyalty are valued by the Group, and it practices corporate social responsibility by balancing company aims with community contributions

VINFAST

- VinFast, a subsidiary of Vingroup, is Vietnam's first large-scale automotive manufacturer and will be the country's first to compete at an international car show The company is currently designing and producing world-class innovative automobiles

- VinFast, as a Vietnamese company with a global vision, collaborates with leading European design, engineering, and component firms to develop products that match international standards and customer expectations in terms of design, quality, capability, automobile features, and driver experience

2 Situation Analysis 2.1 Market Summary

Before Vinfast, there was no local car brand in the Vietnamese market, making Vinfast the first and most well-known Vietnamese automobile brand Vinfast has good information about the Vietnamese market, such as the average income, policy, and citizen demand, because it is operated by Vingroup, a local corporation As a result, Vinfast will be able to launch new goods based on this knowledge

2.2 MACRO ENVIRONMENT

2.2.1 Demographic

Here are some results of the demographic survey 2020

- The total population of Vietnam is 96,208,984 people, of which the male population is 47,881,061 people, accounting for 49.8% and the female population is 48,327,923 people, accounting for 50.2% After 10 years, the population of Vietnam increased by 10.4 million people On average, there are 3.6 people per household, 0.2 people per household lower than in 2009 The Southeast is the most attractive destination for people, followed by the Red River Delta.

- As many as 1.3 million people immigrated to the Southeast region, employing more than two-thirds of the total number of inter-regional residents across the country The urban population is 33,122,548 people, accounting for 34.4% of the total population of the country

- As a result, we can observe that as the country's population grows, so does the number of households, raising the need for cars ownership to enable family travel In addition, as the population of metropolitan areas grows, so does the desire for car ownership The influx of immigrants, in particular, has increased the client base for Vinfast's products

2.2.2 Economics

2020 is considered to be a difficult and challenging year for the global economy, particularly Vietnam The world economy is expected to enter its deepest recession in history, with major nations' growth rates all plummeting as a result of the Covid-19 epidemic's detrimental effects However, with an expected GDP growth rate of 2.91 percent, Vietnam's economy has maintained its expansion.

Here are some results announced by the Government Statistics Office:

In the general expansion of the total economy, the industrial and construction sector

recorded the greatest growth rate with 3.98 percent, adding 1.62 percentage points to the entire growth With a 5.82 percent gain and a 1.25 percentage point contribution, the processing and manufacturing industry continues to play a vital role in driving the economy's development In the service sector, total retail sales of consumer goods and services fell by 1.2 percent in the first half of 2020 compared to the same time the previous year, but subsequently rebounded a rapid pace at It increased by6.2 percent in the last six months, putting the domestic trade sector up by 2.6 percent for the year

Thus, we can see that the Vietnamese economy has been severely affected by the

COVID-19 epidemic, but for the auto market, the Vietnamese government has also introduced a lot of supportive policies For example, at the end of June 2020, the Government allows a 50% reduction in registration fees for domestically assembled cars to support people and businesses As a result, the registration fee for "domestic" cars is reduced from 15 million to nearly 300 million, depending on the model and brand

It is this 50% reduction of the registration fee for "domestic" cars that makes

"foreign" car importers forced to reduce the corresponding price to compete, even with a model that reduces the registration fee up to 100%, equivalent to a decrease from a few hundred million to nearly 900 million dongs helping the Vietnamese auto market in the second half of the year, car sales next month are higher than last month

Specifically, in September 2020, the Vietnamese auto market achieved sales of

27,252 vehicles, up 32%; October reached 33,254 vehicles, up 22% and November reached a record number of the year with 36,359 vehicles sold, up 9% from the previous month Generally, in the first 11 months of 2020, VAMA member units sold a total of 248,768 vehicles of all kinds, down 14% compared to the same period last year, average monthly consumption of 22,615 vehicles

2.2.3 Natural

Global issues that strongly affect the company's business activities such as Pollution environment: The amount of gas and industrial waste discharged by companies into the outside environment is a matter of great concern The current environmentally friendly car products that reduce emissions are becoming more and more popular and are favored and supported by many people Scarcity of raw materials: Raw materials are increasingly scarce, so for automobile products, the development of new cars running on environmentally friendly fuels is becoming more and more necessary The amount of energy is increasing day by day: so companies in the industry need to find alternative energy sources, operate efficiently, save production costs

2.2.4 Technology environment

Overview of VinFast Lux A2.0

VinFast Lux A2.0 is a 4-door sedan manufactured by VinFast of Vingroup, Lux A2.0 is developed based on the system of the 6th generation BMW 5 Series (2010-2016) This is Vinfast's first sedan, along with the Vinfast Lux Sa2.0 Suv that was first introduced at the Paris Motor Show 2018

Not only that, this is not an official commercial vehicle, but this model has more or less created a pervasive media effect with the positive feedback of millions of Vietnamese hearts about the pride of the car The first was produced by Vietnamese people

Vinfast Lux A2.0 car exterior

Lux A2.0 is considered as one of the cars with luxurious design lines from the experienced engineers of Pininfarina Company

The image of the letter "V" a symbol of Vinfast placed in the middle of the grille is complemented by 2 "V" LED strips on both sides connected to the front turn signals In terms of dimensions, VinFast LUX A2.0 has a length x width x height of 4,973 x 1,900 x 1500 mm and a wheelbase of 2,968 mm Ground clearance 150mm Lazang design makes a lot of impression with images that are associated with the 5 ways of flowers or the image of a star to create an eye-catching look with meticulous and meticulous lines

Overall, the Vinfast Lux A2.0 car is luxuriously designed with a luxurious exterior from the famous Italian design firm Pininfarina Vinfast Lux A2.0 is also the pride of Vietnamese- branded cars

Vinfast Lux A2.0 car interior

The cockpit is designed with a high-class dashboard made of carbon plastic, metal cladding details and a high-quality leather interior The driver's seat and the passenger seat are 12- way electric on the Premium version, 4-way electric and 2-way mechanical with 2 Standard and Plus versions The interior used orange tones as the main color with a 7-inch color screen in the middle More than half, with the following utilities:

• 10.4-inch touch screen • Location function, map • Radio, AM/FM

• Wifi connection, 4 USB ports, Bluetooth • Wireless phone charger

• Sound system with 8 speakers or 13 speakers with amplifier • 12V power socket, 230V AC outlet

• Smart key and push-button start Engine, operating car Vinfast Lux A 2.0

Vinfast Lux A2.0 uses a copyrighted engine from BMW On the two Lux A2.0 Standard and Plus versions, the 2.0L turbocharged petrol engine, direct fuel injection, delivers a maximum capacity of 174Hp/4500- 6000rpm, maximum torque of 300Nm/1750- 4000rpm Operation and safety technologies such as Cruise Control, tire pressure sensor, electronic handbrake, Auto Hold, support for downhill departure, lane departure warning, etc are all very smart technologies used on modern luxury car models

Safety assessment of Vinfast Lux A2.0

The safety system of the announced VinFast Lux A2.0 has many modern features equipped such as:

• 6 airbags

• Reversing camera or 360 Camera • 7-inch color driver information display • Quick Tire Repair Kit

• Emergency belt tension system, force limiter, front seats• ISOFIX child seat fixing hook (2nd row, outer seat)• Electronic balance (ESC)

• Blind spot warning

• Front and rear parking sensors• Hill Start Assist (HSA) • Anti-lock brakes (ABS)

• Electronic/automatic handbrake, emergency brake assists (BA) • Electronic brake force distribution (EBD)

• Blind spot warning •Assist to begin across the hill • Collision warning

• Anti-slip function (TCS) • Downhill assist (HDC) function

• Anti-roll function (ROM)

• Automatic door lock function when the vehicle is moving and when leaving the vehicle • The security of VinFast Lux A2.0 is also enhanced with an anti-theft alarm system and encryption key

2.2.5 Political environment

The legal system affecting businesses is increasing: Antitrust law, intellectual property rights, patents will create opportunities for healthy competition among companies in the industry With the current development of consumer protection groups will be a threat to companies as this will increase the position of consumers, forcing companies to take more responsibility for safety products, advertising honestly and with culture political stability is a prerequisite for economic development When formulating a business strategy, it is necessary to consider political factors that are the ruling party's views, goals and social development orientation The degree of socio-political stability is reflected in the people's reaction to the perfection of the legal system, the effectiveness of law enforcement in social life

2.2.6 Cultural environment Communication on all fronts

Vingroup has "blocked" users on all media forums Vinfast's marketing strategy is to hit the media on social networks, where Vietnamese users are mostly using The company has understood the psychology of Vietnamese people too well and so it is understandable that Social Media and word of mouth communication are the two methods targeted by the company The amount of Seeding on social networks is very positive when receiving up to 90% of the positive feedback Moreover, when asked about Vinfast, up to 80% of respondents know and look forward to its launch in the domestic market Vinfast's marketing strategy is to understand the media, understand consumer psychology and know how to apply and take advantage of many strong media sources to increase their reputation The debut at the Paris Motor Show was one of them

VinFast does not put too much emphasis on launching this model to the market, they have had 10 years in research and development of their model VinGroup already has a large enough customer database in many fields, so that they can sell all products to these customers and be sure to sell well They sold travel services, sold houses, apartments, sold

supermarkets, and now it was their turn to sell cars They have too understood the buying psychology of Vietnamese people and the communication strategies that hit the customer's psychology are too easy for them economic and social life

Core behaviors: Tapping into the mentality of "national pride"

It is impossible not to have a little bit of "national pride" when the first car branded in Vietnam, owned by Vietnamese people, will be made in Vietnam, launched in Vietnam an international auto show of the caliber of the Paris Motor Show

Vinfast does not disclose external information but focuses on "national pride", which is a product of the Vietnamese brand Currently, through the information that Vinfast actively shares with the domestic press, there is no information about the R&D department - maybe VinFast has prepared and will also announce it as a surprise they have been working on this automotive project Vinfast's marketing strategy is currently very successful and hits the "small small" mentality of Vietnamese people

Secondary belief : Use the best Influencers in the world

This is the key point in Vinfast's marketing strategy, the company not only wants this to be a domestic product, but it can compete with major brands in the world as well Vinfast revealed that the company took the effort to invite a famous international star to attend this ceremony, this information makes fans excited because there is a famous person to represent a popular car brand in Vietnam Male

David Beckham is one of the most expensive stars in the world, he used to represent top brands such as Rolex, Adidas, Armani, Gillette, Pepsi Of course, the amount of money that firms have to spend to get David Beckham is not cheap The fact that VINFAST invited David Beckham shows the company's ambition and "playability" The fact that David Beckham side by side with Miss Tieu Vy, Tran Quang Dai and Vietnamese stars is definitely the focus of the launch ceremony Of course, the number of followers of Vinfast's launch in Vietnam and internationally is very impressive, proving that the attraction from these Influencers is not small

2.3 Competition Toyota

In Vietnam, this is a well-known brand High-quality, easy- -repair to

The device is straightforward

Satisfy a wide range of customer categories Hyundai

Long-lasting: use it for a long time

Safety features include adaptive cruise control, a camera system, and gas savings Comfortable: spacious, air conditioning, odorous, radio, etc.

There are numerous features Design

Northern: Small, luxurious, and portable Large size in the south

The vehicle market is brimming with world-famous brands like BMW, Mercedes, Toyota, and Ford Experts describe Vingroup's cars as "high-end, European technology," but the price is "chestnut."

The distinctive feature of "amphibious automobiles" is ideal for Vietnamese settings, but the price of electric motorbikes is considerably more contentious In the first phase, phones ranging from 2.5 to 6.3 million were deemed to be quite nice

The aforesaid price is due to Vingroup's "3 no" pricing policy, which includes no depreciation, financial costs, or interest, but a commercial loss

THE MARKET TREND Of VINFAST IS FOLLOWING THE WORLD TREND

VinFast's brand is upheld via this communication approach 1 Develop a well-known international brand image

With the goal of producing products of international renown, VinFast picked the Paris Motor Show, the most famous exhibition, to launch its brand

2 Promote a sense of national pride

Vietnamese firms have always used the media that has attacked "national pride," and users have been very receptive When the Vietnamese auto business VinFast entered the battle to compete with "big guys" from the West, national pride was also one of its greatest competitive advantages

3 Communication with high-priced influencers for coverage

Miss Tran Tieu Vy, Queen Hoang Thuy, and model Quang Dai were among the invited guests at the ceremony that debuted VinFast The appearance of David Beckham, which drew 15,837 comments, was very beneficial to VinFast's brand

VinFast is expected to have more initiatives in the future to improve brand identification in both social media and real life Being a brand may be powerful enough to compete with multinational brands and give Vietnamese people a sense of pride in the worldwide arena

Market Growth

VinFast is the "offspring" of billionaire businessman Pham Nhat Vuong, who developed a Vingroup with an estimated worth of $10 billion USD from a 40,000 USD loan many years ago Vingroup operates in several industries like manufacturing, trade centers, complex housing, resort, education, health, and so on At the Paris Motor Show in October 2018, VinFast unveiled the first two versions of its new automobiles to the globe This will be the new automaker's first significant obstacle Vietnamese customers will be able to purchase a VinFast vehicle within a year

In 2017, more than 200,000 automobiles were sold in Vietnam, with a growth rate of roughly 25% per year over the previous several years Vietnam is seen as a developing prospective market by most experts both at home and abroad However, the advancement in technology will put VinFast ahead of many obstacles, especially because the VinFast engine is based on BMW engines Years of study have shown that Vietnamese clients are loyal