topic to analyze and promote sustainable marketing strategy for specified green product for a sme in hcm

The purpose of this report is to present a comprehensive marketing strategy aimed at promoting TNGO''''s bike sharing service as not just a convenient means of transportation, but -also a c

UNIVERSITY OF ECONOMICS HO CHI MINH CITY SCHOOL OF INTERNATIONAL BUSINESS - MARKETING

MARKETING ESSAY

Topic: TO ANALYZE AND PROMOTE SUSTAINABLE MARKETING STRATEGY FOR SPECIFIED GREEN

PRODUCT FOR A SME IN HCM

Ho Chi Minh City, September 30 , 2023 thInstructor: Associate Prof Dr Tran Mai Dong Group : 8

Class : MR001 K48 –

2

TEAM MEMBERS

1 Nguyễn Ngọc Thảo Vân

3.1 Market research and insights 4

3.1.1 Comprehensive Market Overview 4

3.4 Challenges and solutions: 9

4 SUSTAINABLE MARKETING STRATEGY 10

4.1 Sustainability And Social Impacts 10

4.1.1 Product 10

4.1.2 Strategy 11

4.2 Strategic Big Idea and Key Message 13

4.3 IMC Plan & Execution 14

1 1 INTRODUCTION

In the rapidly urbanizing landscape of Ho Chi Minh City, sustainable transportation is more than a trend—it is a necessity As the city grapples with increasing levels of air pollution, traffic congestion, and a growing population, the quest for alternative and eco friendly modes -of transportation has never been more critical Among the various solutions, bike sharing -services have emerged as a promising avenue TNGO, a Small and Medium sized Enterprise -(SME), has made significant strides in this direction by offering a bike sharing service that -aligns with the city's vision for a greener future

The purpose of this report is to present a comprehensive marketing strategy aimed at promoting TNGO's bike sharing service as not just a convenient means of transportation, but -also a cornerstone for sustainable living in Ho Chi Minh City This marketing strategy is designed to resonate with diverse stakeholders—ranging from potential users and local businesses to governmental bodies—all the while emphasizing the ecological benefits and practicality of bike-sharing

The report is organized as follows: First, we will delve into the current market conditions, exploring the consumer behavior trends and existing competitors in the landscape Next, we will present an in depth SWOT analysis to identify the strengths, weaknesses, opportunities, -and threats related to TNGO’s bike sharing service Following this, we will unveil our -strategic recommendations, segmented into short term and long term initiatives Finally, we - -will conclude with an implementation roadmap, outlining the steps TNGO should take to make this vision a reality

In crafting this strategy, we have employed a multi faceted approach that includes primary research, data analysis, ensuring a robust and actionable plan for TNGO Through this report, we aim to pave the way for a more sustainable, efficient, and community oriented future for -urban transportation in Ho Chi Minh City

-2 BUSINESS AND PRODUCT PROFILE

• Mission: The cornerstone of Tri Nam Corporation is to offer innovative, efficient, and sustainable solutions across its business verticals By focusing on these core areas, the company aims to address evolving consumer needs while adhering to ethical business practices

2 • Creativity: The company prides itself on fostering a culture of creativity, constantly seeking new and innovative solutions that cater to the dynamic demands of its customer base

• Quality: The pursuit of quality is non negotiable for Tri Nam Corporation From the initial concept to the final product or service, the company is committed to delivering unparalleled quality

-• Innovation: Continual investment in research and development ensures that innovation is at the forefront of all company initiatives

• Corporate Social Responsibility: Beyond its business objectives, Tri Nam Corporation is committed to contributing positively to society through various social initiatives and community programs

2.1.2 TNGO • Vision: In alignment with its parent company, TNGO aims to become a

frontrunner in the public bicycle sharing industry in Vietnam The company is dedicated to reducing environmental pollution and facilitating sustainable urban transportation

-• Mission: TNGO is committed to offering convenient, safe, and affordable public bicycle sharing services that are accessible to the Vietnamese -populace

• Core Values: • Creativity: TNGO continually seeks innovative solutions to improve its

services, from the user interface of its mobile app to the design and features of its bikes

• Quality: A focus on customer experience drives the company to provide well-maintained, high quality bikes and supporting infrastructure.-• Corporate Culture: TNGO believes in fostering a friendly and inclusive

work environment, which it considers critical for both employee satisfaction and customer service excellence

2.2 Product

Unique Selling Proposition (USP) of the bike sharing service offered by TNGOTNGO's bike sharing service is unique in a number of ways, which makes it a popular -choice for users in Vietnam

-3

• Convenience

TNGO's bikes can be rented and returned at any TNGO bike station, using the TNGO mobile app This makes it very convenient for users to find and use bikes, regardless of where they are in the city TNGO also offers a variety of pricing plans, including a pay-per-use plan and a monthly subscription plan This makes TNGO accessible to a wide range of users, regardless of their budget

• Affordability

TNGO's pricing plans are very affordable, making it a great option for people who are looking for a budget friendly way to get around the city TNGO also -offers a number of discounts and promotions, such as reduced rates for students and seniors

• Accessibility

TNGO has a large network of bike stations throughout Vietnam's major cities This makes it easy for users to find a bike to rent, no matter where they are TNGO is also expanding its network of bike stations to smaller cities and towns

• Safety

TNGO's bikes are high quality and well maintained TNGO also offers a number - of safety features, such as helmets and lights TNGO also has a dedicated safety team that works to ensure the safety of its users

-TNGO offers a number of safety features to help users stay safe while riding their bikes These features include:

• Helmets: TNGO provides helmets to all users, free of charge • Lights: TNGO bikes are equipped with front and rear lights, so that users can be

seen by other motorists and pedestrians, even at night • Bells: TNGO bikes are also equipped with bells, so that users can alert other road

users to their presence • Insurance: TNGO provides all users with insurance coverage, in case of accidents

• Sustainability: TNGO is a sustainable transportation option By using TNGO,

users can help to reduce air pollution and traffic congestion TNGO is also committed to using renewable energy and sustainable materials in its operations TNGO is committed to sustainability, and offers a number of features to help users reduce their environmental impact These features include:

• Electric bikes: TNGO offers electric bikes, which are a more sustainable and environmentally friendly way to get around

• Solar charging stations: TNGO bike stations are equipped with solar charging stations, so that users can charge their electric bikes without using fossil fuels

• Recycling programs: TNGO also offers recycling programs for used bikes and bike parts

4 In addition to the above, TNGO also offers a number of other features that make it a unique and attractive choice for bike sharing users:-

• A variety of bikes to choose from: TNGO offers a variety of bikes to choose from, including standard bikes, electric bikes, and cargo bikes This allows users to choose the bike that best suits their needs

• A user friendly mobile app: TNGO's mobile app is easy to use and allows users to easily find and rent bikes The app also provides users with information on the location of bike stations and the availability of bikes • Excellent customer service: TNGO has a dedicated customer service team that

-is available to help users with any questions or problems they may have Overall, TNGO's bike sharing service is a unique and attractive option for users who are -looking for a convenient, affordable, accessible, safe, and sustainable way to get around the city 3 SITUATION ANALYSIS

3.1 Market research and insights

3.1.1 Comprehensive Market Overview 3.1.1.1 Market Trends

• Projected Revenue for 2023: $69.75 million • CAGR 2023-2027: 12.84%

• Projected Market Volume by 2027: $113.10 million • User Base by 2027: 5.43 million

• User Penetration: Expected to be 4.5% in 2023 and increase to 5.4% by 2027

5 • Average Revenue Per User (ARPU): $15.68

• Online Sales: 93% of total revenue is expected to be generated online by 2027

Source: Statista Bike Sharing Market in Vietnam- 3.1.1.2 Market Size

-• Base Year (2020) Market Size: $89.9 Million • Market Size Forecast for 2030: $10,227.2 Million • Rapid Market Growth: Expected CAGR of 66.0% from 2021 to 2030

Source: Vietnam Micromobility Market Analysis Report, 2030 P&S Intelligence

-3.1.1.3 Customer Demand • Survey’s results from the study of Possibility to Develop a Bike Sharing -

System in Ho Chi Minh City show that 72% people want to change their

vehicles to a different kind, 23% want to use public transport instead of private vehicles, and 74% people agree to use the public bike service if this system operates effectively Therefore, bicycles and public bike very suitable to solve the traffic problem in District 1

6 3.1.1.4 Sustainability Trends

Government Initiatives and Consumer Attitudes • Green Energy Transition: Vietnam aims for all transport to run on green

energy sources by 2050 • Government Incentives: Active encouragement for the production and

adoption of electric vehicles • Private Sector Collaboration: Openness to partnerships for sustainable

development • Consumer Attitudes: Growing concern over sustainability among consumers

in urban areas like Ho Chi Minh City

Source: Vietnam Briefing 3.1.2 Competitor Analysis

In the burgeoning bike sharing and bike rental market in Vietnam, various companies offer a range of services targeting different consumer segments Understanding the competitive landscape is crucial for positioning TNGO effectively This section aims to analyze key competitors in terms of their pricing strategies

-Competitors and Their Pricing Models: 3.1.2.1 Toàn Thắng Cycles • Business Overview: Toàn Thắng Cycles is known for its diverse range of bicycle options that cater

to different consumer needs, from casual riders to sports enthusiasts and companies

• Pricing Strategy: • Popular bicycles: Retail, tour/company bicycles: Priced at 90,000 VND per

day • Sports bicycles: Available at a daily rate of 120,000 VND • Sightseeing/Company rental bicycles: Priced at 150,000 VND per day • High-end Exercise Bikes: Available for 180,000 VND per day • Bicycle tour/company rental: Premium option priced at 250,000 VND per

day 3.1.2.2 Vietnam Backroads • Business Overview: Vietnam Backroads focuses on flexible rental durations, allowing consumers

to rent bicycles for varying lengths of time • Pricing Strategy:

7 • Short-term rentals (1 6 hours):Priced at 100,000 VND.-

• Medium-term rentals (7 8 hours):Available for 150,000 VND.• Long-term rentals (9 12 hours):Priced at 200,000 VND.-3.1.2.3 Vietnam By Bike Travel Co

-• Business Overview: Vietnam By Bike Travel Co offers a simplified pricing model, catering to

consumers who prefer straightforward rental terms without multiple pricing tiers

• Pricing Strategy: Hourly or daily rentals: Flat rate of 220,000 VND, irrespective of the rental duration

3.2 SWOT Analysis

The SWOT Analysis provides a comprehensive view of TNGO's internal and external environment, offering insights into the company's Strengths, Weaknesses, Opportunities, and Threats This evaluation aids in aligning TNGO's resources and capabilities with the competitive environment in which it operates

3.2.1 Strengths• Favorable Pricing

Details: TNGO offers a very competitive pricing strategy, particularly when compared to average public bicycle rental services The cost for a 30 minute rental is only -5,000 VND, making it highly accessible for a broad range of users

Impact: This pricing model not only attracts budget conscious customers but also encourages frequent usage, thereby increasing customer lifetime value

-• User-Friendly Mobile Application Details: TNGO's mobile application is designed for ease of use Users can effortlessly unlock bikes, make payments, and monitor the status of their rented vehicle through the app

Impact: The user friendly nature of the app enhances the overall customer experience, thereby driving user engagement and retention

-• Extensive Rental Network Details: TNGO has strategically positioned its bicycle rental stations throughout the inner city, making it highly convenient for users to find and rent bikes

Impact: The extensive network increases the service's accessibility, thereby attracting a larger customer base and encouraging frequent use

3.2.2 Weaknesses• Competition with Other Transportation Options Details: Customers in HCMC have a plethora of transportation options available, including motorbikes, buses, and cars

Impact: The wide range of alternatives could dilute TNGO's market share and pose a significant challenge in attracting and retaining customers

• Maintenance and Loss Management

8 Details: Managing the upkeep and recovery of bicycles in the network is challenging Bicycles may be damaged or lost, incurring substantial costs

Impact: These operational challenges can escalate costs and may adversely affect service quality and customer satisfaction

3.2.3 Opportunities• Government Support Details: TNGO is the only bike sharing service with projects supported by the -Government and ministries at all levels

Impact: This unique position enhances brand credibility and trust, potentially attracting a larger customer base

• Network Expansion Details: There is an opportunity to expand the bicycle rental locations to other areas of HCMC

Impact: Expanding the network will not only serve a broader audience but also capitalize on unserved or underserved markets, thus increasing market share

3.2.4 Threats• Emergence of Competitors Details: The entry of new competitors into the bike sharing market poses a threat to -TNGO's current market share

Impact: New entrants could offer similar or better services at competitive prices, thereby challenging TNGO's dominance

• Extreme Weather Conditions Details: Extreme weather events like heavy rain, floods, or high temperatures can have an adverse effect on bike usage

Impact: Such conditions may deter potential users from opting for bike sharing services, thus affecting revenue and overall business performance

-3.3 Target Audience Analysis

Understanding the target audience is crucial for the effective positioning and marketing of TNGO’s bike sharing services This section delves into the demographics, psychographics, and -behavioral traits of the intended customer base

3.3.1 Demographics

Gender: Both Male and Female Age Range: 16-25 years old Geographic Focus: Inner city areas of Ho Chi Minh City (HCMC) Occupation: The service mainly targets students in high school and college, as well as

young professionals in the early stages of their careers