Topic: Analyze the market segmentation of Rang Dong Group 9: Nguyễn Lan Anh Nguyễn Hiền Trang Đinh Thanh Tùng Hoàng Thị Thúy Hằng Nguyễn Việt Hoàng I: Introduction of the company Rang Dong has its own Lighting Research and development Center (LRDC) ▸ Established in April, 2011 ▸ Breakthrough in science and technology orientation, aiming the company towards sustainable development ▸ First Vietnam’s dedicated and interdisciplinary research facility of lighting devices Business lines: ▸ Producing, trading in lights, electrical appliance and materials, lighting equipment, glass products and vacuum flasks ▸ Services of technical science and technology transfer ▸ Direct export and import ▸ Consulting and designing civil and industrial lighting systems (excluding word design) ▸ Repairing and installing civil and industrial lighting systems ▸ Commercial advertising services ▸ Goods transport services ▸ Slogan: DON’T SAVE LIGHT, SAVE ENERGY Vision: Rang Dong JSC always strives to be the local leading manufacturer of light sources and lighting equipments Mission: Rang Dong JSC is committed to offer diversified products with high quality and effective lighting solutions for the people livings and the society II Explain how the company segment its markets 1.Geographic Region: through Viet Nam Both Urban and Rural - LED bulb, LED tube, LED luminaire: suitable for urban citzen - Fluorescent bulb: mainly used by rural people - CNC Agriculture Lighting: this product is becoming more and more popular with farmers - Smartlighting: new products, compatible with new and high class constructions such as luxury apartments, hotels, restaurants, etc - Vacuum flask: low capacity vacuum is suitable for urban consumer Demographic Suitable for people in all ages and all jobs, with different income - Age: about 14-60 - Occupation: Deversified such as Farmers, Business, Doctors, Teachers… 3.Psychographics segmentation Lifestyle: • • • • Pupil & students: desk lamp Office worker: bulb, vacuum flask Rich people: smartlighting system Farmers/ rural consumers: CNC Agriculture Lighting, Fluorescent bulb Behavioral: Benefits: Most of them expect benefits such as: Simple appearance,new and updated feature, energy-saving and reasonably priced Personality: Rang Dong products is not bound to any personality because they serves daily use III.Explain how the company segment international markets: Geographic: 40 countries in the world included rurals and urbans of each country such as Australia, India… Each of country: Rural and Urban Other variables: - Age: about 14 – 60 - Reasons to buy School lighting, Office buildings, Healthcare premises, Industrial buildings, Retail and supermarkets Home, Lighting for hi tech agriculture IV Discuss the effective segmentation of Rang Dong - Measurable: In 2017, the Aurora's sales reached 11.3%, the increase rate 3,270 in comparison to the year 2016 Budget reached 300.7 billion increase 6.9% compared to 2016 Profits made reaching 270.7 billion, an increase of 43.3% compared to 2016 The average income of thousands of workers each, reaching 12.9 million, up 8% compared to 2016 - Accessible Since Rang Dong have more than 7000 agent and retail shops in 63 provinces and cities nationwide It is easy for the firm to access to the customers with this thick density stores - Differentiable: For the domestic market Rang Dong concentrates on traditional products such as: lightning bulb, Glass refill, Compact lamp and so on -Actionable: According to financial report of 2017, during the first 9-month, Rang Dong reach 176 billion VND of profit before taxes, which is 35% more than the last year And 85% of the revenue comes from domestic market while 15% left is fromexport V Explain how the company identify attractive market segments and choose a market-targeting strategy Which strategy (undifferentiated, differentiated, concentrated and micromarketing targeting strategies) is the best for the company? 1, How the company identify attractive market segments? Attractive market segments: when companies indentify attractive market segments they should consider the following factors Offers solid current or long-term profit potential for your business Companies typically consider the various segment options they have to market to and may target one or multiple markets depending on how much money they have available to invest in marketing As a result, Rang Dong chooses the Northern Viet Nam as their main market segment thanks to: Northern Viet Nam is the market segment can mobilize the company capability Northern Viet Nam is the market segment which are profitable to the company 2, Which strategy is the best for the company? Best strategy: Concentrated Rang Dong, with its strengths in quality and price, is one of the leading manufacturers in Vietnam of LED lighting, system consulting and green lighting solutions and thermos Rang Dong should follow the strategy of concentration Since, this marketing strategy chooses to pursue a large part of one or several small markets instead of a small portion of the big market Through centralized marketing, businesses will gain a solid position in the small market by understanding the needs - wants - demand of the customer group in that market In addition, companies will benefit from the specialization of production and distribution of products (high return on investment) However, this form of marketing is also potentially risky, as potential customers may change their minds or other businesses may enter and compete in small market segments VI Explain how the company combine its understanding of the market with its internal capabilities SWOT STRENGTHS -Good brand trusted by users -national consumption system -research and development -Competitive price WITH INTERNATIONAL BRANDS WEAKNESSES -The central and southern markets have developed slowly -Sales and customer care are weak in some regions -The research and analysis of the market is weak and subjective -not mastered the LED technology OPPORTUNITIES -suitable price for Vietnamese people -Campaign from 2010 Vietnamese people prefer to use vietnamese products -Research and development of LEDs THREATS -LED technology is expensive compared to traditional lighting technology -Low-priced, low-quality LED lighting products from China undermine consumer confidence VII Discuss how the company differentiate and position its product for maximum competitive advantage in the marketplace a.Choose product: LED Light And the market: Viet Nam -we choose to analyse LED light in Domestic market since LED lighting in recent years has becomes a very potential segment due to the demand of the market, Rang Dong is believed to position its product LED as national product when LED lighting is using to replace normal lighting bulbs since it economizes energy b Market Where we analyze Led Light is National Procduct c.Positioning map -In Vietnamese’s light bulb market, there are three segments of competitors: Chinesse products, Vietnamese products have Rang Dong and Dien Quang and Phillips represents for imported products But we only analyze Rang Dong and Dien Quang because they are also Vietnamese Product -Compared Dien Quang product, Rang Dong’s LED bulb have better quality, much better like Brighter and have longer lifespan This is because Rang Dong applied high technology to produce their products and - About Distribution, Both Dien Quang product and Rang Dong wilely distribute through Viet Nam Rang Dong is determined to continue with human resource and scientific and technologicalevelopment for better application in production and business Rang Dong strives for the No.1 unit of Vietnam in manufacturing LED, system consulting and green lighting solutions