Final report b2b marketing for vinfast car products

Vinfast's goal is that by the end of 2022, VinFast will become a 100% electric car company, the Vietnamese car company will become one of the pioneer car manufacturers in the world to st

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCE

Ho Chi Minh City, April 2022

JOB ALTERNATIVE TABLE

Name of

members Student ID Tasks

% of contributio

VINFAST

4 Vinfast's marketing strategy

Il EXCUTIVE SUMMARY

IV MARKETING STRATEGY

1 Objectives

2 Target Segment/ Positioning

3 POPs & PODs

4

5

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8 Marketing Mix Financial Summary

Trịnh Quang Huy

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VIL TCE

1 Leverage digital models

2 Personalize the customer experience

3 Delivering full, consistent experiences

4 Four TCE based Positions 100 %

TABLE OF CONTENTS

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I COMPANY INTRODUCTION OF VINFAST

1 Mission Of Vinfast:

Vinfast Chevrolet Newway's mission is to commit to providing top quality and prestigious automotive products and services with its own dedication, professionalism and high responsibility to customers

Vinfast's goal is that by the end of 2022, VinFast will become a 100% electric car company, the Vietnamese car company will become one of the pioneer car manufacturers

in the world to stop producing gasoline cars to switch to pure electric car production However, Vinfast will continue to produce and supply gasoline-powered vehicles until the end of 2022 Engines and spare parts for these vehicles will also be ramped up for old customers

The specific goal is to increase revenue, sell all gasoline cars produced in 2022 and models in stock

2 Vision:

Vinfast dealer Chevrolet Newway has been and 1s the No | dealer in Vietnam, the leading dealer in Southeast Asia & always strives to maintain that highest position in the following years

3 Goals — From volume to creating value of Vinfast :

- Core values

Pham Nhat Vuong wants his car line to have world-class quality: converging the elite of world companies to create cars of international standards Optimizing Value:

© Delivering high levels of features to serve customers

© Make the right decisions based on the core values that vinfast has outlined

© Connect employees with businesses

© Engrave the brand image of Vinfast in the mind of customers

© Build sustainable relationships with customers

© Helping customers gain more confidence in Vinfast as well as Pham Nhat Vuong's brand

© Build consistency in vingroup's brand

© Promote customer loyalty to the brand of Chairman Pham Nhat Vuong

- With passion I can :

Mission served: Pham Nhat Vuong always feels happy and proud to serve customers & is always committed to bringing the most prestigious and quality products and services to customers

Effort and Dedication: we all understand that in order to build a sustainable and professional company, each member must respect all regulations and common culture of the company , respect each other in daily communication and behavior with a spirit of discipline, serious self-discipline Besides, in order to create value to contribute to the overall efficiency of the Company, we must always strive and dedicate ourselves wholeheartedly

Cooperation and sharing : Solidarity and development: we always actively cooperate and share with colleagues and managers to find the most effective and optimal solution for the common benefit of the company We always make every effort to build internal solidarity, unite all members of the company to develop together and achieve common goals We focus on cooperation and always think of solutions instead of compromise, or finding excuses We are always responsible for successfully completing our tasks and are always willing to share and help members in the company when needed Commitment to excellence: we are committed to doimg our best, always being self- sufficient with the highest responsibility until successfully completing the assigned task

We completely focus our thoughts, energy on achieving the results of everything that we

are doing We are committed to staying committed to Newway's vision, mission, culture and success

Active communication: we always communicate actively with colleagues, with management, leaders in the company, with customers and partners in public and in private We communicate with good intentions through positive and respectful dialogue

We never speak or listen to ridicule, slander, disparagement, criticism or gossip We acknowledge that what we say is true at the time of speaking and I am responsible for the responses of others We always apologize for any mistakes first and then look for a solution We only discuss personal matters with relevant people in a spirit of cooperation and good intentions

Integrity and consistency: We always tell the truth We always deliver on what we promise We only commit to ourselves and to others that which I am ready and intend to

do We notify you as soon as we become aware of commitments that may not be fulfilled and provide immediate solutions to the problem We are consistent in our actions so that clients and colleagues can feel comfortable working with me We adhere to discipline in our work to consistently achieve, grow and succeed +Responsibility: Every employee, regardless of functional position, when doing any job, needs to be done with all his mind, spirit, and enthusiasm, wholeheartedly ensuring to fulfill his responsibilities assigned duties and tasks Absolutely do not make excuses for their own mistakes, push responsibility, but need to actively find ways to overcome them in the spirit of construction and cooperation for the overall effectiveness of the Company Newway's employees do not work casually, irresponsibly, but need to be responsible for what they have committed to customers and the Company, responsible for the tasks assigned by the Company, and responsible Join hands to build and develop the company, ensure the prestige and raise the Newway brand name

4 Vinfast's marketing strategy

Directly attack domestic and foreign media channels and social networking channels Thanks to the accurate customer positioning factor and the understanding of 3

Vietnamese users' psychology, Vinfast quickly blocked Social Media, combined with word of mouth to increase the viral effect

Developed based on more than 10 years of research, then developed its own model The long-term orientation in marketing is "listening to the voice of the market and taking advantage of the love at the nght time”

Arousing the ideal of "national self-respect" - in fact, Vinfast ignored the external information to focus on national pride, affirming that Vinfast cars are of Vietnamese brands & Vietnam is the master

They hit straight and hit the nght mentality of the Vietnamese people

Positioning not only in the domestic market but also internationally The company has taken the launch pad from the quality of the previous products to raise the bar for the next product lines to self-manufacture and develop automobile technology

Affirming the position of the first car company in Vietnam.Building the market strategy of Vinfast :

IL EXCUTIVE SUMMARY

VinFast (or VinFast LLC; abbreviated: VF, full name: VinFast Manufacturing and Trading Company Limited) is a Vietnamese manufacturer of electric cars and motorcycles established in 2017, with headquarters Headquarter is located in Hai Phong city, led by Mr James Benjamin DeLuca and Le Thanh Hai as CEO This company is a member of Vingroup, founded by Mr Pham Nhat Vuong

The company's name is abbreviated from the phrase "Vietnam - Style - Safety - Innovation - Pioneer”

The company introduced its first design prototypes specifically for the Vietnamese market at the 2018 Paris Motor Show in France, including a sport utility vehicle (SUV) and a sedan These models were expected to be launched in September 2019 but were actually handed over on July 28 of the same year After cars, VinFast began to produce and sell electric motorcycles and cars to the market Electricity

VinFast has a main assembly and production factory located in Hai Phong city, Northern Vietnam The factory covers an area of 335 hectares with a total investment capital of 3.5 billion USD and is one of the public projects largest industry in the country The company cooperates in technology, engineering, strategic consulting support, human resource training with the largest global manufacturers of automobiles, spare parts and heavy industrial equipment such as: BMW, Siemens AG, ThyssenKrupp,

ZF, SAP, Schuler, Dirr AG, Eisenmann SE, Grob Aircraft and Robert Bosch GmbH of Germany, EDAG and ABB of Switzerland, Magna Steyr and AVL of Austria, LG Chemical of Korea, design firms ItalDesign Giugiaro, Zagato, Torino Design and Pininfarina of Italy, corporations BCG, Lear and General Motors of the US, Aapico Hitech of Thailand, Foxconn of Taiwan and many other famous brands

VinFast's future goal is to gradually increase the localization rate of components, move towards technological and technical autonomy, besides, the company will continue

to invest in development and expand domestic market share at the same time go to international markets

1 Scale production

The company's infrastructure includes a product research and development center,

a car factory (gasoline cars and electric cars), a stamping factory with Schuler's monitoring system, a welding plant bodywork designed by Flexible Fertigungstechnik (FFT Group), EBZ, and 1200 robots supplied by ABB, a paint factory with Dir's EcoSmart VEC air management system, an electric motorcycle factory, and an engine plant with BMW's technological background.Line design and supply is sampled from the companies GROB (Grob-Werke), ThyssenKrupp, AVL List GmbH (AVL List) and MAG Assembly and finishing lines are owned by the company Designed by Eisenmann (Eisenmann SE) and Atlas Copco (Atlas Copco) In addition, VinFast also owns a training center and localization area for parts and accessories suppliers Vingroup's Vsmart smartphones are manufactured at the VinSmart factory located in the VinFast factory complex in the first phase

A production line of kisenmann AG

2 Production process

Steps in the process of building a car model:

Clay samples (English "clay modeling") and commercial finished products System prototype: the model is made according to the clay model but only the exterior, while the engine and chassis can be from another vehicle

Prototype vehicle: facility for mounting and testing equipment of production vehicles

The car was built according to the concept car to test the design and basic features

Vinfast Lux SA2.0 car

Vinfast Lux SA2.0 car belongs to the SUV segment, this model is very popular in the Vietnamese market thanks to its elegant appearance, strong performance and full cabin with moder technology Including versions:

o VinFast LUX SA2.0 (SUV - Base)

o VinFast LUX SA2.0 (SUV - Plus)

o VinFast LUX SA2.0 (SUV- Premium)

- Vinfast Lux A2.0 car

Vinfast Lux A2.0 car is a companion car with SA2.0 to Paris to attend the international car show here The Lux A2.0 Sedan model is also very popular with its elegant, light and sophisticated design Included car models:

o VinFast LUX A2.0 (Sedan - Base)

o VinFast LUX A2.0 (Sedan - Plus)

o VinFast LUX A2.0 (Sedan- Premium)

VINFAS AY =a

LE BAN GIAO XE

- Vinfast Fadil car

Vinfast Fadil car is a small urban model launched in Vietnam After its launch, Vinfast Fadil received a lot of attention and rose to the top of the best-selling car chart just one month later Vinfast Fadil car models are as follows:

© VinFast Fadil (Base)

© VinFast Fadil (Plus)

© VinFast Fadil (Premium)

- Vinfast President car

Vinfast President cars belong to the SUV segment but are more advanced than Lux SA2.0 This model possesses elegant and luxurious details For this model, Vinfast only launched one model to the market

Tax policy is constantly changing

The State promulgates many policies to support electric vehicles as well as domestically produced cars

Economic

Vietnam's development rate is accelerating

Fuel prices have risen (Due to the Ukaine war situation)

This year, inflation is expected to rise

High maintenance, accessory, and hardware costs

Social

People have become more concerned about environmental issues

Nowadays, Vietnamese people prefer to buy domestic brands

Although per capita income is low, the proportion of wealthy people remains low The number of people who own their own cars has rapidly increased

14 Technological

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Supporting industries are not yet fully covered

Most businesses simply import components and then assemble them using the parent company's technological lines

The number of enterprises producing components 1s very limit

Quality of products vinfast fadil and vinfast lux are highly appreciated

Experience in cooperation and product development with BMW

Environmental

Vietnam has a favorable geographical location

However, the infrastructure is still outdated

Natural environment that is stable and less affected by weather Sunny weather and

a lot of rain increase demand for automo

16 Legal

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Traffic laws (B1 driver's license, vehicle registration certificate, traffic laws, etc.) Cars originating in the EU will be subject to an import tax rate of 60.5 percent - 63.8 percent beginning January 1, 2021 The registration fee 1s 12%, and the value-added fee is 10%

Pay additional fees (for example, road user fees, personal transportation fees, and car charges for entering the city center during peak hours)

According to Decree 10/2022, electric cars in the first 3 years when rolling are subject to a 0% registration fee

From the current 15%, starting from Ist March onwards, the excise tax on electric cars will be reduced to 3% for the first 5 years In the next 2 years, SCT increased

to 11%

2 Market Analysis:

2.1 Market Share

Top 10 car brands with the top sales in Vietnam in the first half of 2021

10 THƯƠNG HIỆU Ô TÔ BÁN NHIỀU XE NHẤT VIỆT NAM NỬA ĐẦU NĂM 2021

In Q3 sales started dropping quickly, losing 43.9% with 54,372 units, and in Q4 sales kept falling 7.5% with 143,564 units

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Indeed, Full-Year sales for 2021 have been 383,259, reporting a 0.4% decrease compared

The market has set an impressive string of all-time highs, with more than doubling since 2012 However, the market suffered its first setback in years in 2017, falling 12.6

The Vietnamese market began the year positively in 2021, with 88,950 units sold

in the first quarter, representing a 40% increase

Nhóm tham khảo Quan niệm về

thông tin văn hoá - xã hội

The auto market in 2021 and the future tends to increase rapidly due to economic recovery as well as the growth of the middle class Cars are luxury goods, so when they buy them, they do a lot of research Information based on the above factors to make a buying decision they will be redundant on many factors

Factors that influence a customer's buying decision:

- Finance: car prices, loan policies, installment payments, prices, operating costs, repair, after-sales, consumption of raw materials, lubricants,

- Characteristics of the car: size, design, engine, chassis, smoothness,

- Needs and shopping motivation: go to work, take family to travel, return to hometown, take children to school, run long distance service, run near road service, express yourself, affirm class, give employee ,

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Car companies greatly influence purchasing decisions, each car company will have

a reputation, products suitable for different customer needs

Groups for information reference: friends, relatives, family, colleagues, social networks facebook, tiktok, television, traditional newspapers,

The concept of culture - society: different customers will have different views such

as Vietnamese people using Vietnamese goods, using German cars is a luxury class, Japanese cars are durable, economical, Korean cars show youthfulness, active

3 Porter’s Five Forces

Threat of New Entrants — Low: The large investment required to establish a car brand: manufacturing facilities, distribution network, and hiring skilled staff; the level of competition from existing brands is intense Small players have a difficult time achieving economies of scale Brand image and reputation can also be significant challenges for

Threat of Substitutes — Moderate: Railways, airlines, public transportation, bicycles, and motorcycles are all alternatives to driving The future trend of using electric cars 1s dependent on the customer's vehicle usage habits

Buyer's bargaining power - High: This industry has a large number of buyers The majority of them pay for an expensive product in installments Buyers can conduct their own research on products from a variety of sources and tend to purchase what fits their budget There are numerous products on the market from which to choose Buyers have little faith in the company's products’ quality

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Using BMW engine, chassis, Italian design

Developed in accordance with the habits and tastes of Vietnamese consumers

Beautiful, eye-catching design Get many tax incentives Economical maintenance and _ repair

costs

Material saving Distribution system, showroom, repair and maintenance nationwide

WEEKNESS

Not yet able to control r the product, technolog design processes Haven't got the cus! satisfaction, prestige 1 market

Depends heavily on 1 policy of the state Too few products, produ:

Effective marketing strategy, high brand awareness

rapidly (~3% in 2021), the} Take advantage of the available | Using government polici middle class has an increasing

demand for buying cars

Fast-growing infrastructure

creates favorable conditions for

automobiles to develop

Vietnamese people have more

and more national pride and want

to use and support Vietnamese

goods

Supported by the state, many tax

policies are supported

The trend of shifting from petrol

to electric cars creates favorable advantages in the real estate industry to

expand distribution channels, promote

of products, increase the number charging points, after-sales service, maintenance

Developing products suitable to the habits, needs, and designs of Vietnamese people

Focusing on communication Vinfast is

a product of Vietnamese people, a Vietnamese brand

Take advantage of government policies

production costs and customers competitive pi Based on market underst

to develop more produc

segments

Use the reputation and available in the real este retail industries to w customer recognition anc

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conditions for Vinfast to take

shortcuts

The EVFTA Agreement with the

European Union removes tax

barriers to penetrate new markets

THREATST

Too many competitors with

scale, technology, prestige,

resources in the market

Customers still have doubts and

do not trust the company

The charging system for electric

vehicles has not been widely

covered

Electric cars are a new market

with many potential risks in

terms of development potential,

S+T Confront strategy:

Take advantage of state incentives, understand customers to beat foreign competitors

Developing electric vehicles to close the technology gap with major competitors

Use the existing real estate system to increase the number of charging stations and distribution channels

international intellectual capital to invest in electric vehicle technology to increase potential and reduce risks

W+T

Avoid strategy Avoid market segment have been exploited by players for a long time Focus on exploring markets, designing developing products s for Vietnamese people Avoid media crises to m brand reputation Avoid developing old, o1 technologies that are d

to compete with and | bring high value

5 5M (Money, Masterial, Machine, Method, Manpower)

The total capital for investment m Vinfast's main assembly and production

plant in Vietnam reached 3.5 billion USD and is one of the largest industrial

projects in this country By the end of 2018, the amount of money used by this

Money

project was VND 27,473 billion After that, in the following years until now,

Vinfast has been supported with money from the parent company up to tens of

thousands of billion VND

Masterial | VinFast directly manufactures the most important components of a car product, the bodywork; chassis and engine Currently, all the most important

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stages of the formation of VinFast cars are contributed by the number one names in the industry: Italian design ItalDesign and Pininfarina; technical background, quality: Magna Steyr (Austria) and Bosch (Germany); engines: BMW (Germany) and AVL (Austria); gearbox ZF (Germany); chassis from the BMW platform; APPICO shell (Thailand)

Machine

All of its service workshops are fully equipped with machinery and technical equipment according to European standards The equipment available at the factory includes 3D wheel alignment, body and chassis towing equipment with electronic gauges, fault diagnosis machine in the electrical system, exhaust gas analyzer, angle meter The factory has 6 workshops including: stamping workshop, painting workshop, body welding workshop, engine workshop, assembly and workshop supporting the efficient operation capacity with an output of 500,000 vehicles/year, production speed of 38 vehicles/hour

Method

Car models need to go through the stages from sketching the design, modeling with clay, choosing the mght materials and colors, conducting testing, screening and finally approving the umbrella model bowl After the design is completed, businesses will conduct promotion to listen to feedback from the market and make changes before deciding to mass production To be widely commercialized, each car also has to go through a process of manufacturing components and assembling meticulously and accurately car parts such as chassis, body, car paint, interior ,

Manpowe VinFast technicians are well-trained, have high technical skills, dedicated and

enthusiastic attitude at work, ensuring the highest satisfaction to customers

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IV MARKETING STRATEGY:

The specific goal is to increase revenue, sell all gasoline cars produced in 2022 and models in stock

2 Target Segment/ Positioning

2.1 Target customers of Vinfast:

Vinfast's target customers are considered to be very diverse due to the characteristics of Vinfast's market segments spanning all customer segments from low to high Vinfast's strategy is to target customers who are owners of automobile production and distribution that are sold not only domestically but also abroad

For high-class cars, their target customers are people with high incomes, national spirit, and tend to favor using high-quality Vietnamese goods

For mid-range models, Vin approaches customers with low or moderate income or just need to use cars as a means of transportation Shape and design features are optional

- Characteristics of Vietnamese customers

The majority of Vietnamese people's income 1s in the middle and low level, so Vinfast has launched 7 models with different customer segments from AD In addition, the ability to pay 100% of the customer's car value is low Therefore, VinFast cooperates with banks to have attractive loan policies

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