Final report marketing plan of phu nhuan jewelry phu nhuan jewelry joint stock company

BỘ GIÁO DỤC VÀ ĐẠO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN FINAL REPORT MARKETING PLAN OF PHU NHUAN JEWELRY Hà Nội, 2024... This is especially true for companies in the jewelry industry lik

BỘ GIÁO DỤC VÀ ĐẠO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

FINAL REPORT MARKETING PLAN OF PHU NHUAN JEWELRY

Hà Nội, 2024

Table of contents

Table of contents 2

Introduction 3

1 About PNJ 4

1.1 PNJ’s information 4

1.2 PNJ’s milestones 4

2 PNJ’s marketing environment 5

2.1 Macro environment 5

2.2 Five forces analysis 8

2.3 SWOT 10

3 Segmentation, targeting and postioning 11

3.1 Target customer 11

3.2 Targeting and Postioning 12

4 Marketing mix 12

4.1 Product: 12

4.2 Price 13

4.3 Place 13

4.4 Promotion 14

5 2 succesful marketing campaign by PNJ in 2023 15

5.1 Campaign 1: Lucky Shake Challenge 15

5.2 Campaign 2: I do 15

Conclusion 17

Introduction

In the fast-paced world of business, having a solid marketing plan is crucial for success This is especially true for companies in the jewelry industry like Phu Nhuan Jewelry In this essay, we'll outline a practical marketing

strategy specifically tailored to help Phu Nhuan Jewelry stand out and thrive

Phu Nhuan Jewelry stands as an emblem of craftsmanship, elegance, and tradition in the jewelry market, renowned for its exquisite designs and superior quality However, in an era marked by evolving consumer behaviors,

technological advancements, and shifting market dynamics, sustaining

relevance and fostering growth necessitates an astute and adaptive marketing approach But in today's ever-changing market, it's essential for them to have a marketing plan that keeps them ahead of the competition and resonates with their customers

We'll explore how Phu Nhuan Jewelry can use both traditional and digital marketing methods to reach their audience, build brand loyalty, and ultimately grow their business By breaking down each step of the marketing plan, we'll show how Phu Nhuan Jewelry can adapt and succeed in today's dynamic

marketplace

So, let's dive in and discover how a well-crafted marketing plan can help Phu Nhuan Jewelry shine brighter than ever before For the limitations in time and research information, the essay unavoidably contains errors I hope to

receive your assessment to improve my work further

1 About PNJ

1.1 PNJ’s information

Name of company: PHU NHUAN JEWELRY JOINT STOCK

COMPANY

Main business fields:

• Producing and trading jewelry of gold, silver, precious stones, fashion accessories, souvenirs Trading watches and buying gold bars

• Diamond, precious stones and precious metal inspection services

• Trading in real estate

Vision: Become the leading jewelry fashion brand, with core attributes being Creativity, Fineness, and Reliability

Mission: “Our mission is always to enhance customers’ satisfaction, by diversifying products and services at highest quality and reasonable price, by advancing management and manufacturing system, and improving craftsmen’s skills.”

Business philosophy: “Customer benefits is our commitment.”

1.2 PNJ’s milestones

On 28/04/1988, Phu Nhuan Jewelry Trading Store was founded under the People’s Committee of Phu Nhuan District The prematureness of Vietnam jewelry industry and the limitations of the market are the major challenges that the first 20 people founded the PNJ have to pass

In 1994, PNJ Hanoi branch establishment, which is the start of the

strategy to expand branches around Vietnam later such as Da Nang branch opened in 1998, Can Tho branch opened in 1999 PNJ’s distribution system is constantly expanding

In 2001, The brand PNJSilver officially launches to meet the needs of young people Besides, PNJ continues to develop PNJ gold jewelry with really big marketing campaigns sponsored by the World Gold Council

On 03/04/2008, PNJ officially changed the new logo to celebrate the 20th anniversary of the establishment and development The new brand identity is more professional image, more modern to meet the challenge in the next

journey

In 2010, PNJ is recognized as the national brand by the Government and awarded the golden prize of National Quality In addition, PNJ is one of three Vietnamese companies awarded the prize of Asia Pacific Quality Plimsoll

announces that PNJ is ranked 16th among the top 500 largest jewelry companies

in the world PNJ is the only Vietnamese company included in this chart

On 03/2011, PNJ start the construction of the most modern jewelry

factory in Vietnam Simultaneously, PNJ constantly upgrades the scale of

distribution system and inaugurates headquarters as well as jewelry centers in Kien Giang, Binh Duong, Bien Hoa, Hanoi…

On 02/01/2014, PNJ changed into a new type of business: Joint Stock Company, under the full name Phu Nhuan Jewelry Joint Stock Company At that time, PNJ is awarded Top 500 Retailer Asia Pacific and First Labor Medal

2 PNJ’s marketing environment

2.1 Macro environment

2.1.1 Political environment

The Global Peace Index is determined based on three major themes: the level of safety and security in society, the level of domestic and international conflict, and the degree of militarization This index takes into account internal factors such as domestic violence and crime rates, as well as external factors such as military spending and warfare According to reports, Vietnam has risen

4 places to rank 41st globally and 7th in the Asia-Pacific region in the Global Peace Index 2023 released by the Institute for Economics and Peace (IEP) Overall, Vietnam enjoys political stability, which is a significant advantage that will help Co.opmart establish a stable and thriving business environment

2.1.2 Economic environment

According to Mr Nguyen Minh Tien, Director of the Price Management Department under the Ministry of Finance, in 2022, the economy experienced a rapid recovery across most sectors Production demand for consumer goods and exports, coupled with the impact of global commodity prices, has driven up the prices of essential goods and services However, overall, the basic price level has been well controlled The average Consumer Price Index (CPI) in 2022 increased by 3.15% compared to the same period last year, with core inflation rising by 2.59% Price management and inflation control efforts have met the targets set by the Government and the National Assembly (below 4%)

The growth in GDP and income per capita income over the years

demonstrates that Vietnam's economy is experiencing stable development In

2023, Vietnam's GDP grew by 5.05% in 2023 and the average income per capita is 100 million dong/year The increasing income of the population

implies that their standard of living will improve, and they will have greater purchasing power and demand for luxury items such as jewelry

2.1.3 Demographic environment

Vietnam is the third most populous country in the Southeast Asia region (after Indonesia and the Philippines) and ranks 15th in the world Despite the aging population trend approaching, Vietnam currently maintains a youthful population structure, and this advantage may persist for over the next 10 years (based on projections by the United Nations Population Fund - UNFPA)

Although the average population growth rate in 2022 has decreased, the total population continues to increase significantly, leading to a high demand for consumption, especially in food, household items, and fashion products

Urbanization in Vietnam continues to accelerate due to rural-to-urban migration and the expansion of administrative boundaries in urban areas People

in urban areas account for 37.7 percent of the total Vietnam population Women aged 20-35 account for approximately 12% of the total population This is the customer group that PNJ focuses on A large number implies significant

purchasing power

2.1.4 Cultural environment

Vietnamese people value jewelry and they tend to purchase jewelry as an investment Consumer trend: Young people are increasingly interested in

fashion and personal style They desire to own beautiful, fashionable jewelry products that align with current trends

2.2 Five forces analysis

2.2.1 Rivalry

Competitors of PNJ could include other large jewelry retail chains such

as DOJI and SJC These are the only two major competitors with enough

financial resources, infrastructure, and reputation to compete with PNJ and dominate the market

There is not too much difference between the qualities of jewelry

between companies, however, the fashion designs are different According to

Ho Chi Minh City Securities Corporation (HSC), PNJ does not have a big

competitor in branded jewelry retail in Vietnam In terms of the number of retail stores, exquisite design, ingenious processing, new collections and the

popularity of the brand, HSC believes that PNJ beats all other competitors in Vietnam like SJC and Doji Those factors make PNJ different from other

organizations in the market

Therefore, PNJ is facing with a medium level of competitive rivalry 2.2.2 Threats of entry

The threat of new entrants can be evaluated through a several of entry barriers and advantages as follows:

• Expertise and Capabilities: It takes billions VND to open a gold, silver and gemstone store Therefore, new firms may find it very difficult to join to jewels industry as it requires a lot of investment, capabilities, assets and experiences to compete with other

businesses

• Access to Supply or Distribution Channels: Government

regulations are still tightening the import of gold into the country,

so finding a stable gold supply is difficult for new businesses to enter this industry

• Legislation: According to Enterprise Law 2014, when opening a gold store, organizations must pay attention to some conditions of government laws such as:

o Have charter capital from 100 billion VND or more

o Experience in gold trading for 2 years or more

Furthermore, gold and gold-related business are under the management of the State Bank so that new firms, who want to join to jewelry industry must be controlled by the State Bank, leading to the problem that they cannot raise their product’s price

Therefore, the threat of new entrants that PNJ may face is quite low 2.2.3 Threats of substitutes

The silver, gold and diamond jewels are affordable to upper class and middle class, while lower class tends to wear classic accessories, which are handmade

or made by metals, fabric or Feng Shui stone According to research, the

middle-rich class, whom can afford valueable accessories only accounts for 1/3

of Vietnam's population, which means the rest 2/3 population have a tendency to buy inexpensive fixtures and fittings Moreover, there is one reason they do not have a habit of wearing valueable items because they are afraid of being stolen

In short, the threat of substitutes that PNJ is facing now is very high

2.2.4 Power of buyers

PNJ occupies nearly 40% market share in the gold, silver and gem

jewelry making and retail market in Vietnam with a production capacity of over

4 million products per year Jewelry products crafted by PNJ have been

distributed directly to millions of customers through nearly 400 retail stores, e-commerce channels and indirectly through more than 3,000 wholesale

customers nationwide as well as has been exported to 13 countries and regions Through that, PNJ has clear policies for easy supervision and business

Specifically, PNJ has a clear exchange policy and warranty policy for their products For example, for all kinds of jewelry, the repurchase rate is between 50% and 80% and the exchange rate is from 60% to 90% Therefore, customers must comply with PNJ's policy and have no right to deal prices

According to the Association of High Quality Vietnamese Goods in 2019, PNJ won the title of high quality Vietnamese goods for 22 consecutive years From there, it can be seen that the quality of PNJ's products has been recognized

by consumers, and PNJ has brought itself a large number of loyal customers

This means that PNJ’s buyers are less price sensitive, making buyers' bargaining power low

2.2.5 Power of suppliers

Due to not being limited in legal terms, PNJ mainly imports raw silver through a number of suppliers in Belgium Regarding gemstones, PNJ imports mainly from Thailand and Hong Kong In addition, PNJ imports diamonds from many different sources and is closely tested

The raw materials supplied by the suppliers are fairly standardized, less differentiated and have low switching costs This helps PNJ to switch suppliers more easily, making the bargaining power of suppliers weak

Moreover, the industry that PNJ does business is an important customer

of suppliers This means that industry profits are tied to the margins of the

suppliers

Therefore, the bargaining of suppliers in the jewelry industry are low

2.3 SWOT

Strengths:

• Strong brand reputation and

credibility trusted by many

consumers

• Strong financial resources, with

significant investment capacity

for R&D and marketing

activities

• Modern production lines,

including large-scale facilities

• Strong distribution system with

high coverage

• Diverse, refined, and

high-quality product offerings

Weaknesses:

• Intense competition from various other brands

• Many people perceive PNJ as a luxury jewelry brand,

overlooking lower-priced options

• Stringent standards imposed by the younger demographic

Opportunities:

• Increasing consumer demand

• Younger generation with

higher disposable income and

entrepreneurial spirit

Threats:

• Counterfeiting and counterfeit products

• Price competition with numerous retailers in the market

• Development of social media

channels facilitating effective

communication with the

younger demographic

• Advancements in jewelry

crafting technology

• Established positions of many silver jewelry brands in the younger demographic's preferences

3 Segmentation, targeting and postioning

3.1 Target customer

Customer potrait:

• Gender: Primarily targeting females

• Age: Aimed at young woman aged 20 to 35 Adolescents - Young adults who appreciate uniqueness and individuality, using a lot of jewelry to express their self-image

• Urban areas: Residents here have a high standard of living, are

interested in aesthetic jewelry, and are willing to spend money on high needs in life

• Psychology: These are primarily single customers who care about beauty, modern, enjoy life, and want to appear more beautiful in the eyes of everyone

• Media behavior: Internet users: Wake up, lunch, dinner, before bed anytime they have free time Using Facebook, TikTok, Instagram are the most popular

• Promotion through Key Opinion Leaders (KOLs): Jun Vu, Hoa Minzy Customer insight:

• Customers who purchase PNJ jewelry not only wear it but also use it

to express their style, personality, confidence, and success

• PNJ jewelry buyers are typically individuals with high incomes, high-end shopping needs, who prioritize quality, reputation, and brand service

• PNJ jewelry buyers often seek information on the website, social media, brand communication channels, or seek advice from relatives, friends, and celebrities