analyze marketing mix 7ps strategy of vietnam airlines

Instructor: Ths Nguyễn Thị Minh NgọcWordcount: 5000 words

Nguyễn Thị Cẩm Hương2021008452 CLC_20DMA08

Ho Chi Minh City, 2022

CHAPTER 3: CUSTOMER ANALYSIS AND POSITIONING STRATEGY 9

3.1 Target customer analysis 9

3.2 Positioning strategy 9

CHAPTER 4: ANALYZING THE MARKETING MIX STRATEGIES 11

4.1 Service product strategy 11

4.1.1 Core product 11

4.1.2 Supplementary service 11

4.1.3 Branding service products and experiences 12

4.1.4 New service development 12

4.5 Service Processes management 23

4.5.1.Vietnam Airlines Flowchart 24

4.5.2 Vietnam Airlines Blueprint chart 26

4.6 Physical evidence management 28

4.6.1 Ambient conditions 28

4.6.2 Spatial layout and functionality 29

4.6.3 Signs, symbols, and artifacts 29

LIST OF FIGURES

Figure 1.1: Vietnam Airlines route map worldwide 4

Figure 2.1: Market share of Vietnamese airlines 7

Figure 3.1: Vietnam Airline’s positioning map 10

Figure 4.1: Images extracted from Vietnam Airlines’ TVC advertising Tet 2022 16

Figure 4.2: Vietnam Airlines’ print ads 17

Figure 4.3: VNA’s flight attendants taking care of passengers' children 18

Figure 4.4: Vietnam Airlines press conference 19

Figure 4.5: Experience area "Kids try to be a flight attendant" 19

Figure 4.6: : Hanoi Dragon Boat Swimming Festival 20

Figure 4.7: The flight carried 300 medical soldiers to aid Ho Chi Minh City 21

Figure 4.8: Official website Vietnam Airlines 21

Figure 4.9: Vietnam Airlines fanpage interface on Phone app 22

Figure 4.10: Vietnam Airlines fanpage interface on Facebook 22

Figure 4.11: Vietnam Airlines flowchart 24

Figure 4.12: Vietnam Airline’s blueprint 26

Figure 4.13: Vietnam Airlines’ logo 30

Figure 4.14: Vietnam Airlines’s staff uniforms 30

Figure 4.15: Vietnam Airlines staff 31

CHAPTER 1: INTRODUCTION

1.1 History

The nation's flag carrier Vietnam Airlines is one of the most prominent and high-quality airlinesin Vietnam During more than 20 years of development with a double-digit growth rate, VietnamAirlines has been leading the way As a modern airline with a brand widely known for its distinctcultural identity, Vietnam Airlines is aiming to become the leading 5-star international airline inAsia.

Moreover, with 31 branches and representative offices in 20 countries and territories of Europe,Asia, Australia, and North America, Vietnam Airlines is well-positioned to meet the needs ofconsumers all over the world.

Figure 1.0.1: Vietnam Airlines route map worldwideSource: VIAGS

1.2 Vision and core-value

Vietnam Airlines is constructing and developing a brand with the goal of becoming the nationalleading airline, and the most trusted and preferred airline in Asia Provide high-quality aviationservices that are tailored to the needs of a wide range of customers Developing an internationalairline firm with a large network of routes in the region and around the world Furthermore,Vietnam Airlines aspires with great service, elegance, and pleasant smiles, bring delight andsatisfaction to their consumers.

1.3 Achievement

2010: Officially the 10th member of Skyteam Aviation Alliance 2016: Top 3 most progressive airlines in the world (SKYTRAX).

2017: “Airline of the Year in the Asia-Pacific region” by CAPA- Center for Aviation.

2018: Global 4-star airline awarded by APEX (The Airline Passenger Experience Association)organization.

2021: Vietnam Airlines receives the VNPR Awards 2021 for the US route communicationcampaign.

CHAPTER 2: SITUATION, MARKET & COMPETITOR ANALYSIS

2.1 Market summary

Despite the continuing influence of the covid - 19 epidemic, the aviation sector began to recordsigns of recovery from the end of 2021 thanks to the expanded immunization program across thecountry, along with anti-epidemic regulations, to ensure the safety of the passengers and crew.

According to the assessment of the Vietnam aviation administration, the government hasdecided to reopen international commercial routes from 15 Feb to restore trade, tourism, andopen tourism from 15/3/2022.

Market share of Vietnam Airlines: continuously increasing since its establishment, VietnamAirlines has always held a dominant market share in Vietnam's aviation market.

As the first enterprise established in the civil aviation industry, over 20 years of establishmentand 49% 34% 16% 1% Aviation market share in the first 4 months of 2021 VNA Vietjet AirBamboo Airways Viet Travel 4 development, Vietnam Airlines has always held the No.

2.2 Competitor analysis

2.2.1 Current competitors

With the development of society and the increasing travel demand of the people, after theestablishment of Vietnam Airlines, there were many airlines that were gradually put into use Thefierce competition between airlines makes Vietnam's aviation market more exciting than ever.Leading among them, having a great influence on Vietnam Airlines' market share are Vietjet Airand Bamboo Airways.

Figure 2.2: Market share of Vietnamese airlinesVietjet Air

Vietjet Air has been licensed to operate since 2007 This is the first airline in Vietnam to operateunder the new generation airline model, low cost, and provides a variety of services for customersto choose from The airline not only transports air but also provides the consumer needs of goodsand services to customers through advanced e-commerce technology applications

With the slogan "Save more, fly more", after 15 years of construction and development, VietjetAir has increasingly affirmed its position in the domestic, regional and international markets

CHAPTER 3: CUSTOMER ANALYSIS AND POSITIONING STRATEGY

3.1 Target customer analysis

Vietnam Airlines chooses a focused strategy, focusing on segments with good to high income,regardless of age, but mainly focusing on the age group from 25-30, the age that already haspersonal income stable kernel This is considered a niche market, which has not been exploitedmuch in Vietnam's aviation industry

This particular group of customers will prioritize the quality of services From form to content,there needs to be sophistication and class They are willing to pay for services that can satisfytheir own needs, and increase productivity and work results

3.2 Positioning strategy

Established by the Government in January 1956, Vietnam Airlines marked the birth ofVietnam's aviation industry and served only domestic flights After the end of the Vietnam War,in 1976, Vietnam Airlines started to operate international flights, including Southeast Asiancountries and China In 1993, Vietnam Airlines was chosen to become the national airline ofVietnam On October 20, 2002, Vietnam Airlines introduced the new Golden Lotus logo andcorporate identity, along with significant improvements in infrastructure, operations, and fleet.This launch represents a complete rebranding and repositioning strategy, symbolizing theremarkable growth and goal of becoming a world-class airline

Positioning map

Figure 3.3: Vietnam Airline’s positioning map

CHAPTER 4: ANALYZING THE MARKETING MIX STRATEGIES

4.1 Service product strategy

Vietnam Airlines provides a full range of services including ground service; in-flight services; after-flight service.

4.1.1 Core product

The two services that supply the principal, problem-solving benefits customers seek

are Air passenger transport: Air transportation for passengers, Airfreight: Transport of luggage,goods, parcels, parcels, letters,

4.1.2 Supplementary service

Information about services, flights, prices, promotions, and related activities are regularlyupdated on the official website of Vietnam Airlines (http://spirit.vietnamairlines.com/) and(https://www.vietnamairlines.com/vn/en/Home ) In addition, information is also updated directlyat the airport, agents, and modern ticketing points of Vietnam Airlines

Order-Taking:

Check-in: Vietnam Airlines is currently the airline that offers the most forms of checking suchas automatic check-in on mobile applications; online check-in via the website, mobileapplications, airport kiosks; check-in outside the airport (in-town check-in) in Hanoi, Da Nang

Seat upgrade: If seats are available in Business class/Premium Economy, the upgrade servicewill be definitely confirmed With this service, passengers have a chance to experience ourpremium in-flight services and enjoy more space for working or relaxation

Parking: at airports, parking lots are arranged for both motorbikes and cars

Lotus Lounge: Lotus lounge is a place where passengers can rest in a completely relaxingspace, separate from the bustle of the airport.

Vietnam Airlines provides some special services at the request of customers such as Specialmeals, Services For Children, Unaccompanied Minor services, Passenger With Disabilities, …

4.1.3 Branding service products and experiences

Vietnamese Airlines operates 3 main service classes: Business class, Premium Economy Class,and Economy class Different services at ground service, seating facilities, meals and drinks,entertainment facilities, communication, and personal amenities And the higher the service class,the more priority the customer enjoys.

4.1.4 New service development

Disease prevention and safety for passengers and staff are considered key tasks throughout theservice work from ground service to air service Vietnam Airlines is constantly innovatingproducts, adding new products to ensure cost-effectiveness, increase customer experience andincrease revenue - its staff.

Key points in-ground service work

Along with epidemic prevention and control, the quality of ground services has beencontinuously improved by Vietnam Airlines to meet the needs of customers

Key points in air service work

New menu sets are of good quality, updating culinary trends, and passengers' preferences Thefocus is to bring Vietnamese local specialties to promote and introduce traditional and specialty

dishes from Vietnam's regions Food is one of the important factors contributing to thepositioning of the national airline's brand.

E-reader offers a wide-open reading space with a wide range of topics ranging from travel,fashion, culture, and society to current affairs, finance, and business Passengers can enjoydozens of diverse and attractive magazines right on the screen Personal entertainment at eachseat.

About passenger supplies: Supplies and items are focused on investment to prevent epidemics,such as antibacterial towels and cleaning and disinfecting aircraft.

The products and services of Vietnam Airlines have been constantly innovating day by day toadapt to changes in the market Although still lacking and facing the impact of the epidemic andfierce competition, Vietnam Airlines is still trying to show its position through its main serviceand supplementary services.

4.2 Pricing strategy

Vietnamese Airlines has had appropriate pricing policies and is divided into many differentprice segments to reach as many customers as possible that Vietnam Airlines targets For 1 year,Vietnam Airlines always has promotional packages with great discounts so that many people canfly at a low cost.

Cost-Based Pricing

Vietnamese Airlines has applied a pricing strategy in the form of plus cost pricing, which is amethod of pricing based on costs and adding a percentage of the airline's desired profit on eachair ticket But in the current stressful epidemic situation, the airline has applied Break-evenpricing.

Value-Based Pricing

Value-based pricing is the method used by Vietnam Airlines from the beginning to the presenttime The airline cares about the value that customers receive from using 19 Vietnam Airlinesservices Customers are willing to pay that amount, but in return for the value Vietnam Airlinesprovides them.

Competition-Based Pricing

For example, Vietjet Air's airfare only includes airfare and does not exceed 7kg of handluggage, but with Vietnam Airlines' ticket price, all baggage costs are included weighing up to27kg/person, the accompanying food service, as well as the seat service, is better than that ofVietjet Air WVietjet Air's strategy of cutting all unnecessary costs is both a strength and aweakness of low-cost airlines Vietnam Airlines can enhance its accompanying products andservices so customers can easily recognize that despite the price difference, going with VietnamAir will have tangible and intangible values.

Pricing Policy

Building a product system in sync with package tourism products is the main feature thatensures competitive advantages of Vietnam airlines compared to competitors In the aviationmarket, the price of passenger and freight transport is always changing due to factors such ascompetition with other means of transport, war, and changing fuel prices.

Currently, Vietnam Airlines is applying the form of multi-channel distribution: VIETNAM AIRLINE ➡ DISTRIBUTION INTERMEDIARIES ➡ CUSTOMER

Specific information of some box offices

Ticket Office of the Republic of Tan Binh

Address: 63 Cong Hoa, Ward 4, Tan Binh District, Ho Chi Minh City Call Center: 19004742

Hotline: 0933499669

Sao Mai ticket office in Hanoi

Address: No 2 Lane 26 Nguyen Van Huyen, Quan Hoa Ward, Cau Giay District, Hanoi CityTel: 09887001

Flow in the canal

The company will carry out promotions, and provide and implement advertising andpromotional programs to attract customers

Figure 4.4: Images extracted from Vietnam Airlines’ TVC advertising Tet 2022

Print ads of Vietnam Airlines J Walter Thompson Vietnam, part of a global campaign called"Reach Further" to improve the quality of tourism The lotus flower, the symbol of Vietnam, isthe central image, thereby introducing the destinations of Laos, Myanmar, Cambodia, andVietnam These print adshave brought a clearersense of the brand andinspired viewers,demonstrating the role ofVietnam's bridge in therelationship betweencountries in the region.

The number of Internet users in Vietnam in 2021 has reached 70 million, which has spurredmarketing campaigns on social networks, making it a fertile land that brands want racing toexploit Vietnam Airlines is also not out of that race.

Vietnam Airlines' media articles and images on the Internet always focus on conveying positivemessages, conveying the airline's dedication to providing services, and bringing good experiencesto customers.

Figure 4.5: Vietnam Airlines’ print ads (Photo source: VNA)

Figure 4.6: VNA’s flight attendants taking care of passengers' children (Photo source: Spirit Vietnam Airlines)

In addition, in order to avoid unorthodox information, wrong guesses, and distort publicopinion, Vietnam Airlines regularly opens annual reports and press conferences publicly toprovide customers with accurate information real At the same time, through the view of publicopinion to evaluate and give timely measures and reforms for service quality.