XÂY DỰNG KẾ HOẠCH MARKETING CHO SẢN PHẨM MỚI VINFAST

UNIVERSITY OF FINANCE - MARKETING FACULTY OF MARKETING CLASS: CLC_17DMA2 MARKETING PLAN FOR VINFAST LUX A2.0 Lecturers: MBA Ngo Minh Trang Group: HCMC – March 2019 UNIVERSITY OF FINANCE - MARKETING FACULTY OF MARKETING CLASS: CLC_17DMA2 MARKETING PLAN FOR VINFAST LUX A2.0 Lecturers: MBA Ngo Minh Trang Group: No Member Student’s code Pham Quang Thuy 1721001634 Do Thanh Ngan 1721000602 Trinh Quoc Bao 1721000655 Phan Hoang Bao 1721000654 Thai Ngoc Minh Uyen 1521002504 HCMC – March 2019 Contents Executive Summary .1 Situation Analysis 2.1 Market Summary 2.1.1 Market Demographics 2.1.2 Market Needs 2.1.3 Market Trends 2.1.4 Market Growth 2.2 SWOT Analysis .9 2.2.1 Strengths 2.2.2 Weaknesses .9 2.2.3 Opportunities 10 2.2.4 Threats 10 2.3 Competition 10 2.4 Product Offering 10 2.5 Keys to Success 11 2.6 Critical Issues 12 Marketing Strategy 13 3.1 Mission 13 3.2 Marketing Objectives 13 3.3 Financial Objectives 13 3.4 Target Market 13 3.5 Positioning 14 3.6 Strategies .15 3.7 Marketing Program 16 3.8 Marketing Research .18 Financials 18 4.1 Break-Even Analysis 18 4.2 Sales Forecast (Not Available) 19 4.3 Expense Forecast 19 Controls 20 5.1 Implementation 20 5.2 Marketing Organization .20 5.3 Contingency Planning 20 Executive Summary Vingroup, formerly known as Technocom Corporation, was founded in 1993 in Ukraine From 1993-2000s, Technocom had successful trade in instant noodle, fast food In the early 2000s, Vingroup started in Vietnam with two key brands: Vincom and Vinpearl In January 2012, Vinpearl JSC merged with Vincom JSC to form Vingroup Joint Stock Company With the mission "To create a better life for the Vietnamese people", Vingroup has developed a diversified portfolio across several business segments: ✓ Technology ✓ Heavy industry ✓ Consumer Retail ✓ Property ✓ Hospitality and Entertainment ✓ Healthcare ✓ Education ✓ Agriculture Vingroup continues to pioneer and lead consumer trends in each of its businesses introducing Vietnamese consumers to a brand new, modern life-style with international-standard products and services Vingroup has created a respected, wellrecognized Vietnamese brand and is proud to be one of the nation’s leading private enterprises VISION With pioneering aspirations and a long-term investment strategy, Vingroup positions itself as the property developer and retailer in Vietnam, with growing reputation and position on the global economic map and a portfolio of quality products and services MISSION To create a better life for the Vietnamese people CORE VALUES "CREDIBILITY - INTEGRITY - CREATIVITY - SPEED – QUALITY – HUMANITY” CREDIBILITY • Vingroup places utmost importance on building its Credibility The Group believes Credibility is a competitive advantage and vigorously protects its Credibility as one would protect one’s honor • Vingroup is fully prepared to execute its plans and spares no effort in meeting its commitments, even going beyond the expectations of customers and partners, particularly on those related to product quality – services and implementation progress INTEGRITY • Vingroup considers Integrity an important foundation of its business We comply fully with the law and maintain the highest level of professional and social ethics • Vingroup adopts a customer-centered approach, in which the Group places the interests and wishes of the customers above its own Vingroup strives to provide its customers with the best products and services, and considers customer satisfaction as the measure of success • Vingroup upholds a customer-service approach, and only takes on a task when the Group is confident of its execution capability CREATIVITY • Vingroup considers Creativity as the source of vitality and innovation in each of its products and services Creativity enables the Group to deliver on its philosophy of “Dare To Think, Dare to Do” aimed at building an organization eager to learn and to apply modern scientific and technical technologies into its production and management The Group always looks into improving its efficiency and enhancing the quality of its products and services • Vingroup promotes the development philosophy of a "Learning enterprise" in which its employees are not afraid to learn, to self-study and to overcome their limits SPEED • Vingroup considers “Speed and efficiency in every activity” as our guiding principle and “Fast Decision – Fast Investment – Fast Deployment – Fast Sales – Fast change and Quick Adaptation” as our core value • Vingroup believes that “Glory goes to those who meets deadline” Vingroup understands the importance of speed whilst upholding its commitment to quality QUALITY • Vingroup aims to gather the best people to deliver the best products and services and to contribute to building the best society • Vingroup strives to develop a force of effective and efficient human capital with sound Ethics and Knowledge, where each member is an expert in his field • Vingroup believes that: The Group must be like a healthy and well-shaped body without redundant fat We attract and retain the right person for each position, allowing each employee to grow in their role or face elimination if unsuited HUMANITY • Vingroup fosters close relationships with our customers, business partners, colleagues, investors and society with goodwill, compassion and a humane spirit • We value employees as our most important resource; we build a professional, dynamic, creative and compassionate work environment, and provide a superior compensation package and fair development opportunities to all employees • Vingroup fosters “Harmony” based on fairness, integrity and compassion The Group values teamwork, solidarity, discipline and loyalty, and demonstrates corporate social responsibility that harmonizes corporate goals with community contributions VINFAST As a subsidiary of Vingroup, VinFast is the first large-scale automobile manufacturer in Vietnam and will be the first company to participate in the international auto exhibition The company is currently developing and manufacturing innovative cars of world-class level As a Vietnamese enterprise with international vision, VinFast is cooperating with leading European design, engineering and component companies to create products that meet international standards and customer expectations in terms of design, quality, ability, features in the car and driver experience Situation Analysis 2.1 Market Summary Vietnamese market has none local car brand before Vinfast which makes Vinfast being the first Vietnamese car brand and known by almost all the Vietnamese people Because of being controlled by Vingroup, a local company, Vinfast has good information about Vietnamese market such as the average income, policy and citizens demand Therefore Vinfast can launch their new products which are based these information Target Markets: Low-cost 2.1.1 Market Demographics The customer of Vinfast consists of the following geographics, demographics and behavioral factors: Geographics: Focus on big cities in Vietnam Demographics: • Age: From 30 to 50 yrs • Family size : Available to every family size • Income: High Class (Over 50m/month) • Psychographic: The vehicle of vinfast is suitable for the personal lifestyle of favoring luxurious, world-class cars but still bearing the pride of Vietnamese brand with competitive starting price Behaviorals: Vinfast products are suitable for users who use car usually because its low cost and easy to maintain Volume usage: suitable for people who use car regularly Brand loyalty: loyalty customers of Vingroup are Vinfast potential 2.1.2 Market Needs Quality • Durable: use it in long-term • Safety: Adaptive Cruise Control, Camera System, saved gasoline • Comfortable: wide space, air-conditioner, odorous, radio,… • Many features Design • Northern: Small size, luxurious, easy to move • South: Big size Customer Service • Guarantee in long-term • Organize many event about maintenance, repair • Sales off in next time or customer’ friend 2.1.3 Market Trends In 2018 there is a name not to be missed: VinFast, the car brand of VinGroup, will be produced in Vietnam, competing in urban and mid-range car groups VinFast was born in late 2017, and in 10/2018 officially launched the world, when attending the Paris Motor Show 2018 took place in France The ambitious project with a long-term vision, VinFast's goal is to become the leading automobile manufacturer in Southeast Asia with a capacity of 500,000 cars / year and million electric motorbikes by 2025 The automobile market is full of top names in the world such as BMW, Mercedes, Toyota, Ford Vingroup offers cars that are evaluated by experts as high-end, European technology but the price is "chestnut" Electric motorbikes are advertised as designed for Vietnamese people and the special feature of "amphibious cars" is suitable for Vietnamese conditions, but the price of electric motorbikes is much more controversial Phones from 2.5 to 6.3 million in the first phase are also said to be quite pleasant The above price is thanks to Vingroup applying a "3 no" price policy, including no depreciation, no financial costs and no interest but loss on the business side VINFAST'S MARKET TREND IS FOLLOWING THE WORLD TREND Communication method upholds the brand of VinFast Build a high-profile international brand image VinFast with the ambition of products of international stature, so when it started building a brand that chose Paris Motor Show - the most prestigious exhibition Encourage national pride The media that has hit the "national pride" has always been exploited by Vietnamese brands and the users have been very supportive National pride is also one of the great competitive advantages of VinFast when Vietnamese car company entered the race to compete with "big men" from the West Coverage communication with expensive Influencers Invited guests to the event launched VinFast: Miss Tran Tieu Vy, Queen Hoang Thuy and model Quang Dai partly caused attention for users Especially, the appearance of David Beckham with 15,837 discussions helped VinFast improve its brand In the future, it is hoped that VinFast will have further strategies to enhance brand identity both in social media and in real life Being a brand can be strong enough to compete with foreign brands and really create a pride for Vietnamese people in the international arena 2.1.4 Market Growth VinFast is the "offspring" of billionaire businessman Pham Nhat Vuong - who from a 40,000 USD loan many years ago built a Vingroup with an estimated value of 10 billion USD operating in many fields including manufacturing cars, trade centers, complex housing, resort, education, health, In 10/2018, VinFast announced the first two models of new cars to the world at the Paris Motor Show This will be the first major challenge of this young automaker Within a year, Vietnamese consumers will have the opportunity to own a VinFast vehicle More than 200,000 vehicles are sold in Vietnam market in 2017 and the growth rate is about 25% / year in the past few years Most observers, at home and abroad, see Vietnam as a growing potential market However, the technology change will put VinFast ahead of many challenges, especially when VinFast engine is developed on the basis of BMW engines Many years of research show that Vietnamese customers are reluctant to buy high-value products made in Vietnam, they are afraid of quality It's okay to buy Vietnamese food and drinks, or furniture But for things that are as complicated and expensive as cars, they may be shy, "said market researcher VinFast's original plan is to focus on the domestic market With a forecast of GDP growth of about 6-7% per year, automobile sales are expected to increase strongly in the coming years Even the new production line of VinFast has enough capacity to meet domestic demand and its leaders are looking for export opportunities, mainly to Southeast Asian countries VinFast factory is being constructed at an amazingly fast speed Even when the rain is torrential, workers still work hard to keep the retail production of the first VinFast products: two small cars and one electric vehicle before the second quarter of 2019, which is not yet full years since the project was started According to VinFast data, Vietnam's economy is growing very fast, but per capita income is only about 2,000 USD / year Consumers who are still struggling to save can buy motorbikes very popular in big cities like Hanoi and Ho Chi Minh City According to Ms Le Thi Thu Thuy - Chairman of VinFast, the income of people in urban areas is much higher than in rural areas With this significant difference, Ms Thuy said that VinFast's plan to produce and consume 250,000 cars is feasible In fact, the calculation of 250,000 vehicles / year is equivalent to 38 cars / hour - a figure that is quite modest compared to the general standard of the world VinFast leader said when needed, the company can push capacity to 60 vehicles / hour, approaching the industry's practice Thus, the value system that VinFast has created from its aspirations clearly does not stop at a specific car It is the value of the belief that Vietnamese enterprises are capable of being able to lead the production chain with the links of big names in the world It is also the value of the desire to contribute to promoting the development of domestic enterprises, thereby creating momentum for the rise of the country's economy According to BMI Research, Vietnam and the Philippines will be the two fastestgrowing automobile production markets in Southeast Asia from 2017 to 2021 Economic growth of both the Philippines and Vietnam is expected to exceed 6%, among the fastest growing countries in the world In the past four years, the average rate of urban consumers in ASEAN economies that intend to buy cars is 25% In Vietnam, the average proportion in 2016 and 2017 is over 15%, up from 11.9% in 2013 and the highest among five ASEAN countries including Philippines, Indonesia, Thailand, Malaysia and Vietnam Official figures show that car sales in Vietnam increased sharply from 2013-2016, although it slowed down from the beginning of 2017 to the end of 2017 According to FTCR, the reason for this slowdown is that Vietnamese consumers delay the decision to buy cars until 2018 to wait for the Government to cut import tax from other ASEAN countries from 30% currently to 0% FTCR forecast sales of cars in Vietnam will increase from 2018 2.2 SWOT Analysis 2.2.1 Strengths • Awareness: Having an amount of awareness which comes from Vingroup • Strong finance: make sure that the marketing mix strategies flow goes smoothly as planned • Vingroup Ecosystem: Using VinID and Adayroi as tools to help the marketing strategies 2.2.2 Weaknesses • Reputation: Vingroup is always known as a leader in real estate market, which will make the customers beware of the quality of Vinfast • Limited product line: Recently entered the car market last year so not be diverse in product line • Weak brand: Vinfast can’t charge the same prices for goods and services as their competitors, because consumers don’t value the brand (new car brand) 2.2.3 Opportunities • Metro: base on the new infrastructure, the traffic problems will be solved Therefore the demand of using car increase strongly • Average income of the citizens increase ( 20%) • The first Vietnamese Car: this is the advantage of Vinfast because we need no money in advertising for the first step of introducing new products 2.2.4 Threats • Tax free for the asean imported cars => 2019, low-cost imported cars increase • Metro: an alternative transportation which competes directly to traditional transportation • Pollution: Vinfast new products have no environment solving solution 2.3 Competition Toyota − Long-standing brand in VN − Quality- easy to repair − Device is simple − Satisfy many consumer segments Hyundai − Low-cost − Be designed very attractive Other: Honda/Ford/BMW… − The reputed brand in VN 2.4 Product Offering 10 Vinfast Lux A2.0 is a complex car for a sophisticated audience From the aircraftlike hood, classic cab rearward to large wheels and tires, the sense of harmony and balance is unrivaled DESIGN CHOSEN BY ITS PEOPLE A car specifically designed and voted by Vietnamese users MUSCULAR YET ELEGANT A combination of muscular shape and taut forms give Lux A2.0 a very contemporary and timeless look DISTINCTIVELY VIETNAMESE A design that is dramatic and world-class but also surprisingly fluid, typical of the Vietnamese landscape and culture 2.5 Keys to Success According to Vietnambiz (https://vietnambiz.vn/doanh-nghiep-ban-le-o-to-datang-truong-se-tro-lai-trong-2019-115720.htm), VDSC expects that the automotive retail industry in 2019 will get better but at the same time the market is expected to be more competitive 2017 witnessed a decline in automobile purchasing power due to the expectation of reducing import tax from consumers of ASEAN Through 2018, the industry continues to face a shortage of supply due to strict requirements from Decree 116 According to the latest analysis report of Viet Rong Securities Joint Stock Company (VDSC), despite high demand, the total sales of the whole market in the first 10 months of 2018 are still equivalent to the same period last year However, in the last months of 2018, most importers can meet government regulations on quality, technical safety and emission standards VDSC expects that the automotive retail industry in 2019 will get better but at the same time the market is expected to be more competitive 11 Automotive supply is expected to rebound strongly in 2019 The constraint on type certificate of quality (VTA) from Decree 116 made it difficult to import cars in the first months of 2018 The supply of imported cars in 11 months of 2018 decreased by about 16% However, considering the final months of 2018, supply started to show signs of growth again when the Government of most exporting countries met the requirements of this decree Therefore, VDSC assesses that the recovery will continue in the coming months, while the CBU supply in 2019 will increase sharply from the relatively low level of 2018 However, growth will stop on a reasonable level through government regulation Automobile purchasing power remained high The import of cars seems to be temporarily interrupted in the early months of 2018, so for the whole year, the supply cannot meet the high demand of the market Therefore, customers have to wait another two to three months to be able to own the car Many customers agreed to deposit early in 2018 and wait until early next year to receive the car Besides, Vietnam's automobile retail industry still has a lot of room for growth 2.6 Critical Issues − Because Vinfast is the first Vietnamese Car brand, Vinfast has to be very careful to protect its image which is also represent for Vietnam − Basing on the tax advantage, Vinfast products price need to be fixed as equal as global cars which have the same quality 12 − Ensuring the first experience by the consumers are exellence to enhance Vinfast reputation Marketing Strategy 3.1 Mission VinFast is a member of VinGroup (Vietnam’s leading private corporation), but VinFast’s mission is not only business and trade The Ministry of Industry and Trade has studied that a country with more than 50 million people must have a car brand of that country The leaders of Vietnam also expressed many times, Vietnam must have a national car brand Therefore, the birth of VinFast is the desire of both a political system and a series of support policies not only for VinFast but also for VinGroup 3.2 Marketing Objectives Take a market share in global market Increasing recognition for Vinfast but not yet needing a sales strategy 3.3 Financial Objectives Increase profit margin to 1, to 2% per quarter Maintaining product research and development budgets, keeping at 10% of quarterly profit, promoting products in the quarter by the media because it is the first product line about Vietnamese cars Economic growth will double in the first years, and will produce new products 3.4 Target Market Vinfast’s aim is concentrating on group of customers whose age about 30-50 with more than 50 millions per month of income in both genders This group has a stable life and income therefore they would be able to buy car At this age, they will care more about their life and their family 13 SEGMENTATION Segment Demographic Geographic Segment Gender: All Gender: All Age: From 30 to 50 yrs Age: Over 50 yrs Income: Over 50m/month Income: Over 50m/month big cities in Vietnam big cities in Vietnam • Their life is stable • They buy product for their life or their children • They use Vinfast products for personal, family • They spend many their time on finding high quality • They want to improve the product and it make them quality of their life feeling safely Psychographic • They want to buy expensive • Their family have many product people • They want to show their asset • Their family doesn’t have many people Behavioral Enhance their position & life Enhance their position & life Usually update in news Often read news 3.5 Positioning Vigor of Vietnamese spirit, Vinfast chose to locate itself as Vietnamese car line and produced by Vietnamese people for the first time Vinfast creates world-class cars with Vietnamese identity 14 “By inviting the people of Vietnam - our first future customer - to be directly involved in the car design process from the very beginning, we have changed the way of traditional design."- Quote Vinfast Vinfast will position Lux A2.0 as a luxury product but relevant This positioning will define the value of Vinfast products and the segment that Vinfast is concentrating on Moreover, Vinfast positions itself as a Car brand for Vietnameses which makes people feel that Lux A2.0 is also a car for Vietnameses with suitable price and high quality 3.6 Strategies Both Vinfast and Lux A2.0 are new to not only Vietnamese Market but also the world Therefore the very first step of the marketing strategy will seek for awareness Firstly, Vinfast will release the reservation’s prices which are much more lower than the original price This will offer the attention for our targeting customers and also develop the customer base At the same time, Vinfast release the official website with rich of information about Lux A2.0 It will be designed for customer seeking informations as quickly and easily as possible This combination will serve the immediate demand of seeking information by customers to increase the awarenes Then Vinfast will use the social media such as social networks, online magazine, online newspaper,… to update the complition of the commercial version Once again, the awareness goes up The second marketing method will be advertisements After having enough famous, Lux A2.0 will be released as the commercial version with official price Advertising at this time is the most suitable strategy because Vinfast need to update the price again and emphasize that the Lux A2.0 is available Lastly, Vinfast will combine three strategies, which are sale promotions, direct marketing and public relations The reason is the life cycle of Lux A2.0 At this time, Lux A2.0 has entered the Growth, which is the time for Vinfast taking money back 15 Using three strategies at once will push the sale up as mush as possible and directly because this period of time is short 3.7 Marketing Program Focus on promoting advertising to increase awareness by tools such as PR, digital marketing, direct marketing Pricing The first time buy (pre-order) is 900 millions VND, after March 2019 back to the basic price 1.366 billions VND, lower price when buying on Adayroi.com Vingroup's carmaker makes the auditorium admiring the "3 no" price policy to support consumers (no depreciation, no financial costs and no interest) Distribution Currently, VinFast is building a nationwide distribution channel with 15 showrooms displaying products, 400 selling points and 22 authorized dealers selling electric motorbikes nationwide At the same time, VinFast is also establishing a special service ecosystem, including service complexes, charging stations, customer care center systems and warranty and repair points for products Electric motorbike products when going into circulation Advertising and promotion Tools: Digital marketing (Website, Facebook and Google Ads, SEO, ) from January to December in 2019 has budget : 100 billion VND − First quarter: from January to March in 2019 ✓ We need to show at book arcticals over famous new papers , online news and new papers for trades and economic => budget: 300 billions VND 16 − Second quarter: from April to June in 2019 ✓ Event launched at Vinhomes Hai Phong (April 6th - April 7th) and Landmark HCMC for days (April 13th - April 14th), invited KOLS: Vinh Thuy, Noo Phuoc Thinh, Thuy Tien - Cong Vinh, Cong Phuong, Tran Thanh, Quang Dai, Miss Vy Vy=> budget: 10.5 billion VND ✓ Make posters, billboards in residential areas, rich houses, commercial centers, luxury apartments like Vincom area, shopping mall => budget: 10 billions VND ✓ Need to make some advertise on the TV and Youtube => budget: 50 billion VND − Third quarter: from July to September in 2019 ✓ Direct marketing targets customers with VIN ID=> budget: 500 million VND ✓ Advertising on aircraft, television, newspapers => budget: 100 billion VND − Fourth quarter: from October to December in 2019 ✓ Set up customer appreciation event to invite customers of Vin ecosystem to attend Use email to invite guests to attend based on financial ability KOLs: Quang Dai, Miss Tieu Vy, => budget: 40 billion Total budget: 311.3 billions VND Customer Service: ✓ Call for vehicle maintenance after months of purchase ✓ Integrated Voucher in VinID 17 ✓ Send congratulatory messages, gifts on birthday, March 8th, October 20th, 3.8 Marketing Research After a period of launching products to the market, Vinfast began to conduct surveys of customers who have used the product, as well as learn about the wishes of new customers to be able to renew designs and increase product quality Financials ✓ Demand for buying cars ✓ The amounts of people who buy Vinfast Automobile production costs account for 30-40% of the total selling price 500,000 cars sales to 2025 (Urban Environment) 4.1 Break-Even Analysis − The fee (include marketing fee) is 1000 billions VND The word of a car is 300 million => Breakeven point = fixed fee / profit per vehicle = 33,333 units => Except for the deposit, from the second quarter - the fourth quarter, Vinfast have to sell 30,000 cars − In the second and third quarters, the car price is 900mil VND (sold 24,000) => month sold 6000 units, turnover = 6000 x 900 million: 3600 billions VND − In the fourth quarter, the car price is billion 300 million (must sell 6,000) => month sold 2000 units, turnover = 2000 x billion 300 million: 2600 billions VND − Assumption: average 1-item sales: ✓ at the price of 900 million VND => variable fee: 300 million 18 ✓ when the price is 1.3 billion VND => variable fee: 300 million ✓ fee: 1000 billion / 12 months 4.2 Sales Forecast (Not Available) 4.3 Expense Forecast Milestones Plan Milestones Start Date End Date Budget Manager Department Marketing plan completion 02/01/2019 03/01/2019 VND Vo Quang Hue Marketing Digital Marketing 04/01/2019 31/12/2019 100 billions VND Vo Quang Hue manage outsource Marketing News paper and online news 04/01/2019 31/03/2019 300 billions VND Vo Quang Hue Marketing Event 01/04/2019 30/06/2019 70.5 Marketing Offline billions Advertise on the TV VND and Youtube Vo Quang Hue Marketing Direct Marketing Advertising on aircraft, television, newspapers 01/07/2019 31/09/2019 100.5 billions VND Vo Quang Hue Marketing Customer appreciation event 1/10/2019 31/12/2019 40 billions Vo Quang VND Hue Marketing Total 311.3 billions VND 19 Controls − Installation fee − Communication − Operating costs − Project control, control human resources and implementation schedule project, control results of each stage, control feelings feedback from customers through communication channels 5.1 Implementation − The following milestones odentify the key marketing programs It’s important to accomplish each on time and on budget 5.2 Marketing Organization − Mr Vo Quang Hue will be responsible for the marketing activities 5.3 Contingency Planning Difficulties and Risks The event did not achieve the expected effect, few customers attended, did not create resonance Worst-Case Risks Already fake customers, book more news and boost SEO Reference http://vingroup.net/ https://vinfast.vn/vi/homepage http://vingroup.net/Uploads/6_An%20pham%20tai%20lieu/Vingroup%20Cor porate%20Profile%20(ENG).pdf http://ndh.vn/Pages/News/PrintPage.aspx?Cat_ID=95&News_ID=201707061 25917898 https://autodaily.vn/2017/09/rat-nhieu-nguoi-viet-dang-co-nhu-cau-mua-oto https://tuoitre.vn/nhu-cau-mua-oto-tai-viet-nam-dang-bat-kip-cac-nuoc-asean20170925145938339.htm 20 21