tiểu luận marketing plananklet for children from pnj jewelry brand

Gold jewelrybrand PNJ announced a new message "Honoring true values".- In 2016, PNJ launched the I love Vietnam collection imbued with national spirit atVietnam Fashion Week 2017 - PNJ w

UNIVERSITY OF ECONOMICS - DA NANG UNIVERSITY

— -MARKETING PLAN Anklet for children from PNJ jewelry brand

Lecturer: Truong Tran Tram Anh

Class: 47K28.1Members: Le Que Lam Tran Thi Thuy Ngan Pham Luu Luyen Pham Thi Thanh Ngan Luu Thi Hau

Tran Nu Nhu Mai

Da Nang, October 25, 2023

1 SITUATION ANALYSIS

1.1 Company Analysis

1.1.1 History of PNJ

1.1.2 Culture of PNJ

1.1.3 PNJ resources

1.1.4 PNJ products

1.1.5 PNJ Partner

1.1.6 Strengths and weaknesses of PNJ

1.2 Market Analysis

1.2.1 Market segmentation

1.2.2 Select target market

1.3 Competitor Assessment

1.3.1 Industry environment analysis

1.3.2 Analyze competitors

2 MARKETING OBJECTIVES

1 SITUATION ANALYSIS

1.1 Company Analysis

Company's name:

- Vietnamese name: CONG TY CO PHAN VANG BAC DA QUY PHU NHUAN

- English name: Phu Nhuan Jewelry Joint Stock Company

- Abbreviated name: PNJ, JSC

Company logo:

1.1.1 History of PNJ

- On April 28, 1988, Phu Nhuan Gold and Silver Trading store was born

- In 1994 and 1998, PNJ established branches in two key economic centers, Hanoiand Da Nang

- In 1999, opening a branch in Can Tho, PNJ completed the presence of 3 majoreconomic centers

- In 2001, the PNJSilver brand was born, and in 2005 it re-launched a new image In

2004, PNJ became Phu Nhuan Gold, Silver and Gemstone Joint Stock Company.PNJ achieved the title of Top 500 Leading Retail Enterprises in Asia - Pacific andreceived the First Class Labor Medal In 2005, the high-end jewelry brand CAOFine Jewelery was born

- In 2008, PNJ was the jewelry and crown sponsor of the Miss Universe contest, held

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in Vietnam In 2008 - 20 years of establishment, PNJ announced a new logochange PNJ became one of the 200 largest enterprises in Vietnam as announced byUNDP and was honored to receive the Third Class Independence Medal.

- In 2009, PNJ shares were officially listed on HOSE PNJ is the first and onlyjewelry enterprise listed on the stock exchange to date In August 2009, CAOFashion Company Limited was established

- In 2012, PNJ NT Factory was inaugurated - one of Asia's leading jewelrymanufacturing enterprises Inauguration of the largest jewelry, diamond and watchcenter in the entire system at 52A-52B Nguyen Van Troi, Phu Nhuan, Ho Chi MinhCity

- In 2013 - 25 years of establishment, the PNJSilver brand repositioned Gold jewelrybrand PNJ announced a new message "Honoring true values"

- In 2016, PNJ launched the I love Vietnam collection imbued with national spirit atVietnam Fashion Week 2017 - PNJ was honored to accompany the APEC 2017summit week, promoting Vietnam's image through the APEC VIETNAM 2017badge; PNJ won "ASIA'S BEST REPORT ON THE SDGS", OutstandingEnterprise of the Year - ASEAN and Top 3 Asian Retailers voted by JNA

- In 2018, PNJ marked a 30-year milestone with the largest jewelry fashion show inVietnam, won a set of Gold Trust medals for the U23 Vietnam team, reached theTop 50 most effective business companies in Vietnam, and received awards JNAfor the 4th time, 3 times in a row, reached the Top 10 of 100 SustainableDevelopment Enterprises, becoming a billion-dollar enterprise with capitalization

- In 2020, PNJ officially became the Best Enterprise in Asia-Pacific in the Asianjewelry industry, bringing Vietnam's jewelry industry to the top of the continent

1.1.2 Culture of PNJ

PNJ President, Ms Cao Thi Ngoc Dung said that "Corporate culture is the strengththat helps businesses overcome crises and is the foundation of sustainable development."Sharing the story of how PNJ has managed the crisis during the Covid 19 pandemic, Ms.Dung - President of PNJ emphasized: "Over time, some things will be lost, but culture iswhat remains." forever At PNJ, with a solid corporate culture foundation, we have unitedand innovated to overcome the crisis in the strongest way." Since the early days ofestablishing the company, Ms Cao Thi Ngoc Dung has directed the construction of PNJ asbuilding "a cultured family" with its own working conventions, with its own missionvision and value systems Value is shaped, developed and fostered through eachdevelopment milestone For Ms Dung, corporate culture must start from the founder and it

is something that cannot be preached, it is something that must be taken from one's heart.PNJ Chairman is proud to share that during the recent pandemic, PNJ's strongest culturalvalues have been clearly promoted, which are Integrity - Responsibility - Quality -Innovation and especially is the Mount value

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Culture is always available in every business Corporate culture is not immutableand must be reviewed and refreshed to suit each development milestone of the business.

Ms Cao Thi Ngoc Dung commented, "Culture is always available in every business Theimportant thing is that at each stage, we must determine whether the existing values aresuitable and need to choose the most excellent value systems, adjust and transform themaccordingly PNJ leaders also emphasized that corporate culture is not immutable and foreach stage of development, we must clarify the core values that are most suitable for thebusiness, how to communicate, and enforce them regularly throughout and consistently inevery word and action so that that culture is instilled in every member of the organization.Sharing the story of building corporate culture in the 4.0 technology era, Ms Dungrevealed that PNJ is building a corporate culture so that people are provided with the mostcomplete knowledge and are ready and confident to step forward into the digital age WithPNJ, every 5 years, Ms Dung invites a consulting company to advise and re-evaluatehuman resources to understand where the human resources market is and what needs to bedone to develop stronger

In building corporate culture, inspiration is very important Ms Cao Thi NgocDung believes that when building corporate culture, inspiring the staff is extremelyimportant Every business that wants to have a sustainable cultural foundation must create

a healthy environment for people to treat each other as relatives with trust and love foreach other But trust must be based on integrity, believe in the leader, believe in yourselfand believe in the future, there must be inspirational stories guided by the vision andmission that the business has outlined go out PNJ Chairman concluded that the leadermust be the strongest representative for the cultural values of the business It is also aneffective way for leaders to inspire their staff to build and develop the most unique culturalfoundation for the business

1.1.3 PNJ Resources

Currently, PNJ Group has nearly 7,000 employees with a wholesale system, andnearly 400 retail stores spread across the country; PNJP Company has a productioncapacity of over 4 million products/year, and is considered one of the largest jewelryfactories in Asia with a team of nearly 1,500 employees

With the core values that PNJ has pursued, PNJ has possessed human resources withprofessional working style, high labor efficiency and, above all, a strong bond betweenemployees and the organization Modern equipped facilities ensure employees work in thebest conditions In addition, the company also equips a GYM and Yoga room to helpworkers regenerate their labor strength after a day of work

The PNJ team has joined hands to build a culture of sympathy and sharing throughcommunity support activities, establishing the PNJ charity fund and the "PNJ shelter"program to bring a good life to the people poverty, nurturing talent development Tocontinue affirming PNJ's position in Vietnam and the world, we are expanding our

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business development system and need to add talented candidates to our professional staff.

1.1.4 PNJ products

PNJ's products mainly provide jewelry product lines such as rings, earrings, ankletsand bracelets, necklaces, pendants, necklaces, charms, etc Products dedicated to weddingjewelry are suitable for the purposes of proposal, wedding and anniversary with theproduct line These are rings, couple rings, earrings, bracelets, bracelets, necklaces,bracelets, Watch products with a full range of brands from Switzerland such as Jowissa,Silvana, Tisot,

1.1.5 PNJ Partner

PNJ associates with Finance, Health - Beauty, Events, and Services partners with many special discounts throughout the territory to bring PNJ's loyal customers the most practical benefits

1.1.6 Strengths and weaknesses of PNJ

Besides, PNJ also owns a creative marketing strategy and invests heavily

research and development to improve products, packaging, create new products along with investment

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addition, sustainable relationships with partners also help PNJ improve its competitive positionpainting At the end of 2020, PNJ launched a jewelry and accessories brand for women

new youth group Style by PNJ and officially cooperated with the Pandora brand last Maythrough to diversify customer experience Compare with competitors in the same industryare SJC and Doji, PNJ's product designs are also considered more diverse

The retail segment plays the most important role in PNJ's sales channels, accounting for

up to 55% of total revenue and 80%-85% of PNJ's gross profit In the context of an epidemic,This enterprise became a bright spot in the market with positive business results

thanks to promoting online business channels and implementing PNJ4H fast delivery service

to meet home shopping needs PNJ has excellently entered the Top 3 prestigious Retail Companies

2021 according to Vietnam Report's research results, second only to one enterprise

in the same industry is Doji Gold, Silver and Gemstone Group Joint Stock Company

- Weakness

PNJ's raw materials are mostly imported from abroad, causing product prices

high while the jewelry market is full of competition with many products with similar designsequivalent but lower price from other brands thanks to using cheap materials

or the amount of gold or silver in the product is lower

PNJ's Board of Directors has admitted that its operating system is not optimal WithAccordingly, investment capital accounts for a high proportion of assets but investment activities from other sectors are poor

efficiency also causes the overall business results of the enterprise to be significantly delayed

1.2 Market Analysis

1.2.1 Market segmentation

- Demographic:

The year 2023 has seen a significant increase in the young population and the development

of the mother and baby market in Vietnam With more than 1.5 million children born eachyear, the demand for baby products is increasing rapidly

According to the General Statistics Office, Vietnam has about 24.7 million children,accounting for 25.75% of the country's total population, and about 24.2 million women ofchildbearing age (from 15 - 49 years old) (link)

Gender: Mainly customers are young mothers (female), there are also customers who arefathers (male)

- Age:

From ages 18-22: This age group accounts for about 22.3% of the country's population and

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most people in this age group have unstable income Beautiful, unique, and affordableproducts will attract more of this group.

From 23 - 30 years old: This age group accounts for the highest proportion of about 35%

of the population This age group has more stable jobs, can pay for personal hobbies andalso start a family People in this group like to explore and choose prestigious, innovative,and highly aesthetic brands This is a group of people with great purchasing power and theability to create trends in Vietnam

From 31-50 years old: This age group accounts for about 30.7% of the population Thisage group has plenty of savings and a lot of shopping, but at the same time, they are alsovery careful and fastidious, choosing products based on the criteria of simplicity,sophistication, quality and product brand…

From 50 years old and above: This age group accounts for about 12% of the population,the age of preparation for retirement They will pay less attention to their shoppingbehavior and tend to save money for retirement, so they are less interested in luxuryjewelry products

Education level: There are diverse levels of education, from high school to university

- Income: There are a variety of income levels, from medium to high

Source: Calculated from data of the Residential Living Standards Survey, average income of 1 person/1 month

Average income is gradually increasing each year Among the 6 regions, the Southeast isthe region with the highest average income per person per month (6.33 million VND) Theregion with the lowest average income per person per month is the Northern Midlands andMountains (3.17 million VND)

Personality: Usually parents who love their children, care about their children's health anddevelopment, and are willing to spend to buy good products for their children

- Geographic:

Rural: Jewelry consumption in rural areas does not account for a high proportion becausepeople's living standards are still low Therefore, they rarely choose to buy expensive goldand silver jewelry products The population density in rural areas is also very low, making

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it difficult for suppliers to distribute goods.

- City:

The urban population accounts for 29.6% of the country's population and is still on therise The density of urban people is high so it is very easy to distribute products Urbanpeople's income is also higher, so they will have more demand for jewelry Takingadvantage of that, most businesses producing and manipulating gold, silver and jewelrywill concentrate in two big cities, Hanoi and Ho Chi Minh City In addition, many foreigngold jewelry companies have entered Vietnam to target wealthy and "connoisseurs" ofjewelry consumers, to introduce their products to the Vietnamese market Usuallycustomers live in big cities and want to buy quality and safe products for their children

- Psychology and behavior:

During the two years of the COVID-19 epidemic, consumer behavior has changedmarkedly Many customers are mothers born in 1995-2000 This new customer grouprequires youthfulness, better customer experience, and more complete care

1.2.2 Target market selection

+ Education level: Various from high school to university

+ Income: Stable, from medium to high (from 5.6 million VND/month or more)+ Location: Nationwide

- Estimated number of target customers:

Currently, Vietnam's population is approximately 100 million people Of which womenaged 23-30 account for 35% of the population From there, it can be estimated that thisgroup is about 35 million people Of these 35 million people, about % are married

So the number of target customers of PNJ company for silver anklet products for babies isabout _ people

- Price segment and purchasing power

In the past 12 months, the customer segment of the silver anklet market for babies oftenbought mainly at a price of about 200,000 VND - 500,000 VND Popular price segments

of baby anklets are 200,000 VND - 500,000 VND and 500,000 VND - 1,000,000 VND (inthe entire market) For PNJ's high-end positioning, the group chose the average pricesegment of 500,000 VND/silver anklet product for babies

Normally, on average, each family gives birth to 1 baby/year Inferred, the number ofanklet products that an average person buys/1 year = Average number of babies born in afamily/1 year = 1 (because silver anklet products are often bought for newborn babies/

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under 1 year old).

Based on the above information, calculate:

Number of target customers:

Number of products that the average person buys in a year: 1

Average retail price of a product: 500,000 VND

=> Market size = Number of target customers × Number of products that the averageperson buys in a year x Average retail price of a product

- Market growth forecast for 2023 and beyond:

Year 2023:

According to estimates, there will be about 3,887 children born on average every day in

2023 It follows that there will be about 1,418,755 children born in 2023

Suppose the average family buys 1 anklet for their child/year Inferring demand, there will

be about 1.4 million baby anklets purchased by 2023

=> Market forecast in 2023 = Number of anklets purchased in 2023 x Average price ofeach silver anklet for babies = 1.4 million x 500,000 VND = 700 billion VND

- Unsatisfied needs:

According to Associate Professor - Dr Bui Thi An (President of Hanoi ChemicalAssociation), said: "According to ancient tradition, children and adults still wear silver forbeauty and some people think it is to avoid toxic wind." Scientific studies have alsoshown that silver has antibacterial and antibacterial properties, helping to increase baby'sresistance Therefore, wearing silver anklets for children not only increases aesthetics, but

is also very good for health Babies with poor immunity and who easily get sick shouldwear silver bracelets for newborn babies Silver is like a protective shield, preventingbacteria and toxic substances from entering the body

- Needs that are not well satisfied by current products:

The trend of wearing silver bracelets for newborn babies is increasing, causing manyparties to sell poor quality jewelry for profit The market is full of cheap jewelry ofunknown origin, but newborn children's skin is very sensitive, so it can damage the skinand greatly affect the child's development If you buy fake silver, the ring will quicklybecome dark and cannot be shined again

- Trends in the macro environment reinforce the urgent needs and demands of thesegments

+ Economic trends and unemployment rate:

2021: The unemployment rate among the working age is 3.22%, an increase of 0.54percentage points compared to the previous year

2022: The unemployment rate among the working age population is 2.32%, down 0.88percentage points compared to the previous year

First quarter of 2023: Unemployment and underemployment rates in the working agepopulation decreased compared to the previous quarter and decreased compared to thesame period last year

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Second quarter of 2023: The unemployment rate among the working age is 2.30%, anincrease of 0.05 percentage points compared to the previous quarter and a decrease of 0.02percentage points compared to the same period last year.

-> It can be seen that the unemployment rate is gradually decreasing Low unemploymentrates lead to many people having jobs, thereby having more income to spend on theirchildren

+ Increasing middle class: The middle class in Vietnam is growing stronger anddeveloping quite diversely According to the General Statistics Office (Ministry ofPlanning and Investment), in the period 2011-2019, the middle class in Vietnam hasincreased significantly, from 7.8% of the population in 2011 (equivalent to morethan 6 8 million people) to 20.2% in 2019 (equivalent to 19.5 million people).Joining the middle class means consumers have more disposable income aftercovering all essential expenses, they aim for a better quality of life, therebyincreasing their need for protection, saving and investing

+ Increase in small-sized families: Small families, often called nuclear families, arebecoming popular in Vietnam According to the General Statistics Office, the size

of Vietnamese families is increasingly shrinking This is shown by the averagenumber of people per household decreasing over the years For example, in 2019,each household had an average of 3.5 people, 0.3 people less than in 2009 Smallfamilies often focus on meeting the individual needs of each family member.family This may lead to higher demand for silver anklets, as this is a personalproduct

+ Trend of concern for children's health: There is a clear trend in Vietnam that parentsare increasingly concerned about the health and development of their children This

is demonstrated by the fact that parents spend a lot of time and resources to learnabout how to care for and educate their children, and how to promote theirchildren's comprehensive development Silver products have long been known fortheir antibacterial roles, both as decorative jewelry and for their significance inprotecting children's health Therefore, when parents tend to care about theirchildren's health and development, this is the factor that motivates customers to buyand use the product

- Trends that have negative effects:

+ Economic trends: Slow economic growth leads to people's income not increasing,thereby reducing their ability to spend on products and services, including babyanklets Economic growth has stagnated Vietnam's economic growth has sloweddue to global difficulties and internal constraints Vietnam's economic growth ratehas slowed from 8% in 2022 to 3.7% in the first half of 20231 The report forecastsgrowth of 4.7% in 2023, then gradually increasing to 5 5% in 2024 and 6.0% in2025

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1.3.1 Industry environment analysis

- Jewelry industry

The jewelry industry has many companies and brands that offer different jewelry products.Top most famous jewelry brands in Vietnam: PNJ Brand, DOJI Brand, LiLi Brand, Tierra Diamond - Natural Diamond Skymond Luxury Brand Huy Thanh Jewelry Brand , , , Bao Tin Minh Chau, Consumers can choose to purchase jewelry from many different brands, depending

on their personal preferences and needs This has promoted competition, diversity and creativity

in the jewelry business

PNJ is the leading brand in Vietnam in the field of manufacturing and retailing jewelry made of gold, silver, and precious stones Therefore, PNJ products are increasingly favored by countries in the Asian and European markets

- Analyze the 5 competitive forces of the industry

According to Michael Porter, there are five competitive forces that need to be analyzed to evaluatethe long-term attractiveness of a market

+ Market barriers and potential competitors:

The field of jewelry business from gold, silver, and gemstones will have few barriers for newbusinesses to participate These businesses only participate in normal trading activities, import andexport of jewelry and are subject to competition among businesses in the industry

The field of jewelry production from gold, silver, and gemstones will create more barriers forbusinesses wanting to join the industry Those barriers include technology barriers, capitalbarriers, brand barriers and distribution system barriers

The field of gold bar production and trading is under state management, so there will be largelegal barriers for businesses wanting to participate

+ Supplier:

● Impact from the supply side:

The jewelry industry in Vietnam is a unique industry, from raw materials to machinery andequipment for production, most of which must be imported from abroad Therefore, the pressure

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