please analyze the current marketing mix strategy of this product of honda vietnam

According to product life cycle theory, in the Vietnam market, Which product life cycle stage is the Honda Wave Alpha 110cc motorbike in?. According to the product life cycle theory, det

MINISTRY OE EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS

HO CHI MINH CITY UEH UNIVERSITY

FINAL EXAM SUBJECT: MARKETING

STUDENT?’S ID: 31231026403 CLASS: IBF001

INSTRUCTOR: MR NGUYEN THANH MINH

TP Hồ Chí Minh - 2023

Prompts:

Question 1 (5 points):

1 According to product life cycle theory, in the Vietnam market, Which product life cycle stage is the

Honda Wave Alpha 110cc motorbike in? Explain

2 Please analyze the current Marketing Mix strategy of this product of Honda Vietnam

3 Please evaluate the effectiveness of this product's Marketing Mix strategy and propose your

solutions to improve the Marketing Mix strategy

Question 2 (5 points):

1 You please analyze the factors of the microenvironment that impact the marketing strategy of the

VinFast VF8 electric car in Vietnam

2 What are your suggestions for Marketing strategy of this product when recognizing the impact of

these factors?

Answers:

Question 1:

1

According to the product life cycle theory, determining the stage of the Honda Wave Alpha 110cc motorbike in the Vietnam market requires analyzing various factors, including sales data, market trends, and the level of competition By evaluating these aspects, we can gain insights into the current position of the product in its life cycle

To provide an accurate assessment, there is a need for additional information such as historical sales

data, market share, and the introduction of any new competitors or technological advancements in the industry The following data are some possibly-collected details from online platforms:

+ Historical sales data: In the Vietnamese market, the 110cc Honda Wave Alpha has proven to be a

popular option’ In 2021, the overall sales volume was 2,492,372 units, which is an 8.12% decline

from 2020.?

+ Market share: As of 2021, Honda accounted for about 80% of the Vietnamese motorcycle market’

The best-selling model for the company was the 110cc Honda Wave Alpha‘

+ New competitors: The search results do not specifically include the Honda Wave Alpha 110cc's main rivals in Vietnam Nonetheless, the Lifan Eagle 110 might be a contender’

+ Technological Advancements: The Honda Wave Alpha 110cc has seen several updates over the

years Honda introduced new color options for this product, such as black, blue, red and white The

2023 model features a fuel-injected 110cc engine with superior performance while still ensuring optimal fuel efficiency® This upgrade has improved the bike’s fuel efficiency’

> Based on the information provided, it appears that the Honda Wave Alpha 110cc motorbike is in the maturity stage of its product life cycle in the Vietnam market

The historical sales data indicates that the Honda Wave Alpha 110cc has been a popular choice among consumers in Vietnam Despite a slight decrease in sales compared to the previous year, the product continues to maintain significant sales volume

Moreover, the Honda Wave Alpha 110cc holds a substantial market share of nearly 80 percent within the motorcycle sector in Vietnam This indicates a strong presence and wide acceptance of the product among consumers

While specific competitors are not explicitly mentioned, the presence of potential competitors like the Lifan Eagle 110 suggests a competitive market environment To maintain market share and profitability during the maturity stage, companies often focus on product differentiation and diversification strategies They may introduce new features, variations, or upgrades to appeal to different customer segments or address changing market needs The same goes for Honda, it did introduce new color options, improved fuel efficiency, or enhanced safety features for the Wave Alpha 110cc motorbike

' global.honda.com, “Vietnam | Factories, Models & Users from Around the World | Super Cub Anniversary” (2023)

? vamm.vn, “VAMM jointly announces its sales of 4th quarter and whole year 2021 in Vietnam” (2022)

3 statista.com, “Honda: Motorcycle market share In Vietnam 2021”, (2023)

* en.vietnamplus.vn, “Honda Vietnam sees slight increase in motorbike sales” (2023)

5 zigwheels.vn, “Honda Wave Alpha Specs and Features in Vietnam | Zigwheels”

° honda.com.vn, “Honda Wave Alpha 110cc”

7 advrider.com, “Practical Motorcycling: Updated Honda Wave Alpha Launches In Asia” (2023)

Considering these factors, it can be inferred that the Honda Wave Alpha 110cc motorbike has already passed the introduction and growth stages and has entered the maturity stage of its product life cycle During this stage, companies focus on maintaining market share, differentiating their product, and sustaining profitability through effective marketing strategies and product enhancements

To further confirm the stage, additional information such as the introduction of new product variations,

pricing strategies, and promotional activities would be beneficial Nonetheless, the available data suggests that the Honda Wave Alpha 110cc motorbike is in the maturity stage within the Vietnam market

2 The current Marketing Mix strategy of Honda Wave Alpha 110cc motorbike of Honda Vietnam consists of 4Ps:

Product:

- The Honda Wave Alpha 110cc motorbike is a popular model in Vietnam, Known for its fuel efficiency, reliability, and affordability

- The bike is designed to cater to the needs of urban commuters, with features such as a

stylish design, comfortable seating, and easy maneuverability®

- Honda Vietnam has been continuously updating the Wave Alpha model with new features, designs and technologies to meet the evolving needs of its target market

+ Customers would be impressed with the youthful, unique new matte black color, which gives them a dynamic image

+ The decal design on the body harmonizes with the stylized ‘Wave Alpha’ logo and youthful background patterns, with different colors on each bike The entire design is dynamic and powerful, helping users confidently show their personality

8 manua.ls, “Honda Wave Alpha (2019) manual”

+ All operating parameters are fully displayed, making it easy and convenient for the driver to observe The light display system on the speedometer is prominent, easy to observe while moving

+ The Wave Alpha is equipped with a durable 110cc engine, superior performance while still ensuring optimal fuel efficiency, thereby providing an exciting driving experience and saving operating costs

+ The always-on light mode ensures the best visibility for users In addition, the vehicle’s recognition capability when moving on the streets is also enhanced, even in daylight conditions, helping the driver to move with peace of mind

Price:

- The price of the Honda Wave Alpha 110cc motorbike in Vietnam is relatively affordable, ranging from 18,000,000 VND to 24,000,000 VND (approximately $750 to $1000 USD) depending on the trim level and features, and the area at which customers buy it, as well’

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- Honda Vietnam has implemented a pricing strategy that takes into account the competitive landscape, target market, and product features to ensure that the Wave Alpha 110cc is competitively priced in the market

+ Pricing strategy of Honda Vietnam Co has been aiming mainly forward to middle class

customers

+ Honda Vietnam offers competitive pricing for the Wave Alpha 110cc to appeal to its target market, balancing quality and affordability”®

+ Some low pricing policies, price support and discount programs are regularly applied to the Wave Alpha 110cc product line to increase sales volume For example: the program “Tung

? vnexpress.net, “Honda Wave Alpha 110 2024” (2023)

' academia.edu, “Các chiến lược marketing ma Honda áp dung cho Wave Alpha vào giai đoạn 2 Chu kì sống

sản phẩm”

bừng hè xuân — Rện ràng ưu đãi” from July 15" 2023 to September 30" 2023 offered installment payments with 0% interest rate and many attractive gifts”

Place:

- The Honda Wave Alpha 110cc motorbike is available at Honda dealerships across Vietnam According to motosaigon.vn, Honda Vietnam has about 801 Authorized Dealers and Services (HEAD), 117 Maintenance and Service Centers (WSS) and 3 Big Displacement Motorbike Stores nationwide”

- Honda Vietnam has also made the bike available on its website, allowing customers to book a

test ride or purchase the products online, including the Honda Wave Alpha 110cc

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Winner X 2024 Vision Phiên Bản Cổ Wave Alpha 110cc SH160i/128i

Tứ 48.180.000 VNĐ Tứ 36.612.000 VNĐ Tử 17.859.273 VND Tử 73.921.081 VND

- The company has also established a strong distribution network to ensure that the bike is easily available across the country

+ Honda builds a short and extensive vertical distribution system Honda only uses one level

of distribution but invests in developing the quantity to cover the market Honda’s distribution strategy for motorcycles is to focus on developing authorized Honda stores (commonly known

as Head), which are usually concentrated in large cities

+ Honda Head usually locates in prime, central, and high-population-density areas The facade is relatively wide Especially, Honda requires strictness on the duration of using the premises, at least 5 years to ensure stability All Heads follow a design, equipment according

to standards to unify the brand identity *

Promotion:

11 Honda.com.vn, “NGAP TRAN UU DAI “KHUNG” CUNG CHU'ONG TRINH KHUYEN MAI “TUNG BU'NG HE SANG

- RON RANG UU DAI” (2023)

” motosaigon.vn, “Honda Viét Nam tổng kết hoạt động năm tài chính 2022 và Kế hoạch phát triển năm tài

chính 2023” (2022)

1 amis.misa.vn, “Chiến lược phân phối của Honda - phân tích lí do thành công” (2022)

- Honda Vietnam has been promoting the Wave Alpha 110cc motorbike through various

channels, including television commercials, print ads, social media, and events For example:

The clip “Quang cao Honda Wave Alpha 110” posted by Advertising Vietnam on Youtube or the short video introducing Honda Wave Alpha 110 broadcasted on TV, etc

- The company has also collaborated with popular Vietnamese celebrities to endorse the product and increase brand awareness

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- Honda Vietnam has also been offering promotions, discounts or accompanying gifts to attract new customers and retain existing ones For example: During the validity period, customers

who buy Wave Alpha, Blade, Wave RSX will receive a phone card voucher worth 500,000

VND

3

Evaluation of the effectiveness of the Marketing Mix strategy:

- Product: The Honda Wave Alpha 110cc motorbike has been well-received in the Vietnamese market due to its fuel efficiency, reliability, and affordability However, with the increasing competition

in the market, Honda Vietnam could consider expanding its product line to cater to different customer segments, such as a higher-end model with more advanced features or a lower-end model with a more affordable price point

- Price: Honda Vietnam has implemented a competitive pricing strategy for the Wave Alpha 110cc,

with prices ranging from 18,000,000 VND to 24,000,000 VND In addition, the company could

consider offering more flexible pricing options as they have been doing, such as installment plans or discounts for loyal customers, to make the product more accessible to a wider range of customers

- Place: The Wave Alpha is available at Honda dealerships across Vietnam, with a wide network of over 800 stores covering major cities and rural areas However, Honda Vietnam could consider expanding its distribution channels by partnering with other retailers or online marketplaces to reach a wider audience

- Promotion: Honda Vietnam has been promoting the Wave Alpha 110cc through various channels,

including television commercials, print ads, social media, and events However, the company could

consider allocating more resources to digital marketing, as more and more Vietnamese consumers are turning to online platforms to research and purchase products

Proposed solutions to improve the Marketing Mix strategy:

- Product:

+ Expand the product line to cater to different customer segments, such as a higher-end model with more advanced features or a lower-end model with a more affordable price point + Offer customization options to allow customers to personalize their bikes and make them more appealing to their preferences

- Price:

+ Offer more flexible pricing options, such as installment plans or discounts for loyal customers, to make the product more accessible to a wider range of customers

+ Implement a dynamic pricing strategy that takes into account the competitive landscape and customer demand to maximize profitability

- Place:

+ Expand distribution channels by partnering with other retailers or online marketplaces to reach a wider audience

+ Improve the customer experience at dealerships by providing a welcoming and modern environment, as well as knowledgeable and friendly sales staff

- Promotion:

+ Allocate more resources to digital marketing, such as social media, online advertising, and

influencer marketing, to reach a younger and more tech-savvy audience

+ Offer promotions and discounts to first-time buyers or loyal customers to encourage repeat purchases and build brand loyalty

> By implementing these proposed solutions, Honda Vietnam can improve the effectiveness of its Marketing Mix strategy and maintain its position as a leading motorcycle manufacturer in the country

Question 2:

1 There are 6 factors that impact the marketing strategy of Vinfast VF8 electric car in Vietnam, including the company, suppliers, marketing intermediaries, competitors, publics and customers

- The Company: VinFast is a relatively new company in Vietnam, established in 2017" It is a subsidiary of the Vietnamese conglomerate VinGroup, which has a strong presence in various industries including real estate, retail, and hospitality VinFast's mission is to become a leading electric vehicle manufacturer in Vietnam and other emerging markets The company’s marketing

4 cleantechnica.com, “First Drive: The VinFast VF8 in Vietnam” (2022)

strategy for the VF8 electric car should focus on building brand awareness and establishing itself as a reliable and innovative player in the market

The internal environment is made up of all the interrelated departments To create higher customer value and relationships, all groups should collaborate Therefore, typical departments such as Finance, HR, Sales, Marketing, R&D or Distribution Department play a very important role in influencing the marketing strategy of VinFast VF8 electric car

+ Finance Department helps with budgeting which limits the budget for promoting the VF8 electric car, cost control which ensures that the marketing budget is used efficiently; financial analysis which provides useful information such as data on profitability of different product lines or customer segments to identify optimizing-effort areas; risk management which helps identify potential risks associated with launching VF8 electric car and develop strategies to mitigate those risks; funding which supports marketing initiatives such as product launches, sponsorships or grants and partnerships

+ HR Department helps with employee engagement which ensures that motivated and engaged employees are more likely to provide excellent customer service, building brand loyalty and increase sales; training and development including training on the features and benefits of the VinFast VF8 electric car, as well as training on customer service and sales techniques for employees, maximizing both employee’s and customer’s experience; employee retention which ensures that the marketing strategies is consistent and effective over the long term; brand ambassadors that encourages employees to become brand ambassadors for VinFast VF8 electric car, increasing awareness and promote the car to potential customers

+ Sales Department provides customer feedback which helps VinFast to understand customer preferences, particularly when customers are expressing interest in a certain feature or benefit of the VF8 electric car, then the marketing strategy will focus on highlighting that feature in their marketing messages.; sales data which helps identify trends and opportunities in the market for electric car; competitor analysis which provides insights into VF8 electric cars competitor activity and pricing strategies, for example, if a competitor is launching a similar electric car at a lower price, the marketing strategy of VF8 model can focus on highlighting the unique features and benefits of it to differentiate it from the competition; product placement which helps to place the VF8 electric car in key locations such as dealerships, showrooms and trade shows to increase visibility and awareness

of the car, driving sales

+ Marketing Department helps with target audience for VF8 electric car, which provides customer's information such as demographic data, lifestyle habits, and purchasing behaviors; market research

which identifies trends and chances in the electric car market in Vietnam, this can be used to inform

the marketing strategy and tailor marketing messages and campaigns to specific segments of the market; branding which creates strong brand identity for VinFast, differentiating the VF8 model from competitors and increase the brand recognition; advertising which create and execute advertising campaigns to promote the VF8 electric car, such as TV commercials, print ads, digital advertising and social media campaigns, increasing the awareness of the car in the market; public relations because it can work directly with media outlets and influencers to generate positive publicity for the VF8 electric

car, such as reviews and test drives, increasing awareness and credibility of the car

+ R&D Department provides technological innovation which focus on incorporating cutting-edge technology into the VF8 electric car, such as advanced battery technology, autonomous driving features, and smart connectivity, differentiating the car from competitors and increasing its appeal to tech-savvy consumers; quality control which conduct rigorous testing and quality control measures to ensure that the VF8 meets the highest standards of quality and reliability, building trust and credibility with potential customers; cost reduction which aims to reduce the cost of production and make VF8 electric car more affordable for users, capturing more in the market share; sustainability which is also very important as it would focus on developing sustainable and environmentally friendly technologies