CHAPTER 2: PRACTICAL CONTACT OF VINFAST . COMPANY 2.1. About the company VINFAST VinFasts full name is VinFast Manufacturing and Trading Company Limited (VinFast LLC). This is a Vietnamese car manufacturer established in 2017. The head office of this company is located in Hai Phong. The CEO of VinFast Manufacturing and Trading Co., Ltd. is Mr. James Benjamin DeLuca. This company is a member of VinGroup, founded by billionaire Pham Nhat Vuong. The car factory complex with an area of 335 hectares is located in Dinh Vu industrial zone, Cat Hai, Hai Phong. After just over 1 year of construction, the factory complex has been formed, most of the factories have been completed and are assembling production lines. The factory complex will include: operator, when producing electric motorcycles, ancillary industrial park, training center, RD research and development institute. The factory produces electric cars and motorbikes with a designed capacity of 38 vehicleshour. In phase 1, the factory will produce 250,000 cars a year and 500,000 electric motorbikes a year. At VinFast, there is a 50,000 m2 engine factory. This area is where the BMW N20 engine is manufactured, equipped on Lux A2.0 and Lux SA2.0. In addition, the 5 factory complex also has an auxiliary workshop and an auxiliary industrial park for its partners. Since its establishment until now, VinFast LLC first published the financial statements of the business. Accordingly, in terms of financial scale, in 2019 this brand owns VND 19,459 billion. By the end of 2019, VF had a total capital of over 90,873 billion VND.Through the report, it is possible to know the business profit of this brand after 2 years of product launch. Specifically, last year VinFast had a net loss of VND5,702 billion in aftertax profit, resulting in a negative profitafterequity (ROE) ratio of more than 29%. 2.2. Design communication strategy to launch new products for the company VINFAST company is about to launch a new product in early 2022: a new electric car called VINFAST FURE with many new features. Therefore, I set out a communication strategy to launch new products for the company, including 7 steps as follows: Step 1: Analyze the situation SWOT STRATEGY Strengths : Vinfast has stable human resources: Former vice president James B.DeLuca of the largest US corporation in driving Vinfast. Previously, Vo Quang Hue held the position of deputy general director, overseeing the vinfast project with 40 years of experience in the auto industry. Ms. Le Thi Thu Thuy, former vice president and general director of VIC, used to be in charge. Vice President of Lehman Brothers Japan, Thailand and Singapore Financial resources: Vingroup itself is also a strong financial group, as a member of the group, Vinfast has great financial backing. Positive brand image: Vingoup has created a great buzz in tourism and real estate, so Vinfast also inherits many of that positive brand image and reputation. High degree of conformity – quality management : Investing in technology and with a vision to the future, Vin has more advantages when not having to bear the burden of the current system 6 Dense dealer network: Vinfast quickly acquired the entire dealer network of GM Vietnam right before the launch of new models (including 22 dealers, 1.5 times larger than BMW). There are many shopping centers to display new products Weaknesses Vinfast is not yet a wellknown brand in the market: if customers want to find a luxury car that shows their status, Vinfast is not an option, due to many barriers in the age of the brand. and has not yet resonated in the industry The cost, warranty and maintenance services have not satisfied customers: although dealers are being spread, the source of components is being produced at affordable prices, but the popularity of components is weak compared to previous brands. The ability to market and PR for Vinfast products is not an advantage: Vins success comes more from thinking above the range, heat resistance, product and service quality surpassing those of other suppliers. domestic other than from their marketing ability Opportunities Vinfast has the opportunity to create products suitable for the masses by inheriting and leveraging technology from partners: cooperating with strategic partners such as Italian car design companies or BMW Group With high support from Vietnamese users in the context of the strongest increase in domestic consumption in Southeast Asia: vinfast is the first company to turn the ambition of Vietnamese automobile production into reality, with a young population and stable income. Definitely, the need to own a car at an affordable price is extremely high There is great potential when meeting the mentality of Vietnamese people who want to own a car as soon as the infrastructure is increasingly improved: urbanization trends and peoples living standards improve, creating The demand, the tendency to want to own a car is high Threats The automobile manufacturing industry is an extremely complicated industry: Companies with many years of age still have technical errors and have to 7 recall cars regularly, will a 2yearold immature company like vinfast bear the responsibility? hot and do well or not – this is the question that remains unanswered The supporting industry in Vietnam is still in its infancy: the localization rate is only 710% while the target set since 2010 is 60%. Extremely fierce competition: In Vietnam, cars are not only a vehicle but also a valuable asset in the family, while the price keeping and durability of vinfast cars have not been tested much, as well as the age. Being quite young makes it difficult to compete with the big boys in the industry PEST MODEL Political Factors Realizing the importance of the auto industry, the government has announced many policies to facilitate and support Vietnamese businesses to participate in this field. As the first Vietnamese car brand, Vinfast also receives a lot of favor from the government Economic Factors Economic factors play a leading role and affect Vinfasts business activities. Economic growth, inflation, average income, etc. have a great influence on purchasing power and consumer structure Especially during the complicated development of covid 19, the escalating economic situation in the country and the world also significantly affected domestic businesses, including Vinfast. Social Factors Society has many different forms and colors, creating different standard views. These standard views have a profound influence on corporate governance of the company The progress of construction of public transport works in Vietnam is still quite slow, the shortage has a significant impact on the daily circulation, thus directly affecting Vinfasts car consumption. 8 Technological Factors The 4.0 technology revolution has a very important role for the automobile manufacturing industry in particular and other fields in general. Vinffast has applied high technologies, received the elite of world intellectuals into its vehicle production system. Applying many modern electronic and computing technologies in operation, production and consumption of products. Products Step 2: Define communication goals Set goals for your communication strategy: Shortterm goal: will reach 1,000,000 people after launching the first 5 hour advertising strategy Longterm goal: improve the position of the product in the market, reach 1 million USD in revenue after 3 months of selling products, exporting to foreign markets Outcome goal: Sell all the products produced in the first batch, gain many benefits in many aspects, gain consumer confidence in the product as well as the company Process objective : Access to fastidious markets through the results of consumption in the domestic market and the results of analysis of the world market Communicating products in all aspects: word of mouth, magazines, television, etc. Build target towers for better performance: o Level 1: Raise awareness Learn deeply about the companys newly launched product electric car VINFAST FURE Promote the search, learn about product promotion of the employees in the company, through training strategies Improve knowledge about product promotion as well as communication and marketing o Level 2: Change of attitude Cultivate the attitude of each employee in the company in all aspects: patience, smile, hard work, progress, ... creating satisfaction in service for each customer. Eliminate stereotypes about customer discrimination 9 o Level 3: Change behavior Each employees behavior in the process of promoting and selling products affects sales, so there must be strict training. Always act according to the organization, have a plan in place Step 3: Identify the target audience Learn about market segments, customer segments, search for potential customers Coordinate with mass media, journalists and reporters in promoting products Create a positive public opinion, build a prestigious image of vinfast Step 4: Define the content of the message Prepare a script for promotional communication so that you can practice Define a clear message: “Towards the future” – an image that illustrates the new product, the message of the product Voice: The tone and tone of the voice must convey all the content and messages about the product Time: Choose the golden time of the day to promote the product most effectively Repetition: Always repeat the message through TV advertising channels, internet, posters, ..... increase consumer awareness. Step 5: Design strategy and tactics Purpose : o Establish business as market leader for new electric vehicle product in public perception. o Reach out to the international market. Objective: Inform customers about the features of electric cars, incentives during promotional events, accompanying customer care services (such as giving discount vouchers, warranty). free car maintenance within 12 months,...)
FINAL EXAM ACADEMY OF FINANCE INTERNATIONAL TRAINING PROGRAM Subject: Communication Exam code : 01 Class: K104 Duration: 24h Open book BANKING - INSURANCE Question 1: What is communication? How does the communication take place? Design a communication strategy to launch a new product of Company X Company X of your choice First and last name : Dang Thi Tra My Student code: 1873403013006 Key/Grade: K104 Yearly: K10 STT: 05 Exam room ID: 103 Test day: 7/9/2021 Exam time: 24h TEST: COMMUNICATION COMMUNICATIONS Exam format: Large assignment/essay Exam paper code: 01 Exam time: 14pm PREAMBLE Today, with the outstanding development of science and technology, as well as the development of the international integration economy, we have learned a lot of experience and absorbed many new knowledge and technologies, especially is in the auto industry Since then, the development of businesses is increasing, the demand for product promotion is increasing On the path of integration and development, enterprises, besides acquiring a lot of experience in the business field, in order to survive and develop, have a strong position in the market, must also accept a competition not only in price, quality but also in brand competition.The building of a strong brand, position and trust in the hearts of customers is huge Since then, building a new product promotion strategy is not simply an increase in product sales but also an important strategy in building a brand To learn more about how to promote an effective product, I chose this topic as my research topic In order to find effective methods of product promotion, as well as ways to improve brand, I have chosen Vinfast as an experimental company for this essay CONTENT CHAPTER 1: THEORETICAL BASIS OF COMMUNICATION 1.1 What is communication? Communication is a process of exchanging information between a speaker and a listener in order to achieve a certain purpose Typically, communication goes through three states: Information exchange, psychological contact; Mutual understanding; Interact and influence each other How does the communication take place? Source/sender When communicating a message, you need to know why you are communicating, and what you want to communicate about or about You also need to be confident that the information you are saying is useful and accurate Message It is an effective and important communication process in your life that you need to follow The message is the information that you want to convey Coding: communication principles in the communication process This is the process of converting the information to be communicated into a form, which can be presented orally or in writing, which can be successfully decoded by the receiver Your success in coding depends on your ability to communicate clearly and simply, and eliminate potential distractions such as: cultural issues, misinformation, false assumption Equally important is understanding your audience: Failure to understand who you want to communicate with will lead to confusion in the delivery of the message Transmission channel: Messages are transmitted mainly through 02 channels: face-to-face including telephone, face-to-face, video chat and written channels such as emails, letters, memos and reports Different channels will have different strengths and weaknesses For example, you should not be verbal when giving a series of lengthy examples while using a written letter or responding to a negative opinion Decryption: Encryption or decryption both require communication skills in life (including skills such as: listening attentively or reading messages carefully), but confusion in the encoding process will create many errors in the decoding process code This is an effective communication process in life Receiver: When a message is delivered to the recipient, you visualize how that person will react or act upon receiving your message However, it should be remembered that each individual involved in the communication process will interpret those messages and feelings with different attitudes And if you want to be successful, you need to consider those factors to convey your message and act in the most appropriate way Feedback: When receiving a communication message, surely the listener will respond in some way And you need to pay special attention to those responses because that will be the only evidence that tells you that the recipient understands your message or not In case you find out that the person has misunderstood your message, you will at least have a chance to re-send the message a second time CHAPTER 2: PRACTICAL CONTACT OF VINFAST COMPANY 2.1 About the company VINFAST VinFast's full name is VinFast Manufacturing and Trading Company Limited (VinFast LLC) This is a Vietnamese car manufacturer established in 2017 The head office of this company is located in Hai Phong The CEO of VinFast Manufacturing and Trading Co., Ltd is Mr James Benjamin DeLuca This company is a member of VinGroup, founded by billionaire Pham Nhat Vuong The car factory complex with an area of 335 hectares is located in Dinh Vu industrial zone, Cat Hai, Hai Phong After just over year of construction, the factory complex has been formed, most of the factories have been completed and are assembling production lines The factory complex will include: operator, when producing electric motorcycles, ancillary industrial park, training center, R&D research and development institute The factory produces electric cars and motorbikes with a designed capacity of 38 vehicles/hour In phase 1, the factory will produce 250,000 cars a year and 500,000 electric motorbikes a year At VinFast, there is a 50,000 m2 engine factory This area is where the BMW N20 engine is manufactured, equipped on Lux A2.0 and Lux SA2.0 In addition, the factory complex also has an auxiliary workshop and an auxiliary industrial park for its partners Since its establishment until now, VinFast LLC first published the financial statements of the business Accordingly, in terms of financial scale, in 2019 this brand owns VND 19,459 billion By the end of 2019, VF had a total capital of over 90,873 billion VND.Through the report, it is possible to know the business profit of this brand after years of product launch Specifically, last year VinFast had a net loss of VND5,702 billion in after-tax profit, resulting in a negative profit-afterequity (ROE) ratio of more than 29% 2.2 Design communication strategy to launch new products for the company VINFAST company is about to launch a new product in early 2022: a new electric car called VINFAST FURE with many new features Therefore, I set out a communication strategy to launch new products for the company, including steps as follows: Step 1: Analyze the situation SWOT STRATEGY Strengths : - Vinfast has stable human resources: Former vice president James B.DeLuca of the largest US corporation in driving Vinfast Previously, Vo Quang Hue held the position of deputy general director, overseeing the vinfast project with 40 years of experience in the auto industry Ms Le Thi Thu Thuy, former vice president and general director of VIC, used to be in charge Vice President of Lehman Brothers Japan, Thailand and Singapore - Financial resources: Vingroup itself is also a strong financial group, as a member of the group, Vinfast has great financial backing - Positive brand image: Vingoup has created a great buzz in tourism and real estate, so Vinfast also inherits many of that positive brand image and reputation - High degree of conformity – quality management : Investing in technology and with a vision to the future, Vin has more advantages when not having to bear the burden of the current system - Dense dealer network: Vinfast quickly acquired the entire dealer network of GM Vietnam right before the launch of new models (including 22 dealers, 1.5 times larger than BMW) There are many shopping centers to display new products Weaknesses - Vinfast is not yet a well-known brand in the market: if customers want to find a luxury car that shows their status, Vinfast is not an option, due to many barriers in the age of the brand and has not yet resonated in the industry - The cost, warranty and maintenance services have not satisfied customers: although dealers are being spread, the source of components is being produced at affordable prices, but the popularity of components is weak compared to previous brands - The ability to market and PR for Vinfast products is not an advantage: Vin's success comes more from thinking above the range, heat resistance, product and service quality surpassing those of other suppliers domestic other than from their marketing ability Opportunities - Vinfast has the opportunity to create products suitable for the masses by inheriting and leveraging technology from partners: cooperating with strategic partners such as Italian car design companies or BMW Group - With high support from Vietnamese users in the context of the strongest increase in domestic consumption in Southeast Asia: vinfast is the first company to turn the ambition of Vietnamese automobile production into reality, with a young population and stable income Definitely, the need to own a car at an affordable price is extremely high - There is great potential when meeting the mentality of Vietnamese people who want to own a car as soon as the infrastructure is increasingly improved: urbanization trends and people's living standards improve, creating The demand, the tendency to want to own a car is high Threats - The automobile manufacturing industry is an extremely complicated industry: Companies with many years of age still have technical errors and have to recall cars regularly, will a 2-year-old immature company like vinfast bear the responsibility? hot and well or not – this is the question that remains unanswered - The supporting industry in Vietnam is still in its infancy: the localization rate is only 7-10% while the target set since 2010 is 60% - Extremely fierce competition: In Vietnam, cars are not only a vehicle but also a valuable asset in the family, while the price keeping and durability of vinfast cars have not been tested much, as well as the age Being quite young makes it difficult to compete with the big boys in the industry PEST MODEL Political Factors - Realizing the importance of the auto industry, the government has announced many policies to facilitate and support Vietnamese businesses to participate in this field - As the first Vietnamese car brand, Vinfast also receives a lot of favor from the government Economic Factors - Economic factors play a leading role and affect Vinfast's business activities Economic growth, inflation, average income, etc have a great influence on purchasing power and consumer structure - Especially during the complicated development of covid 19, the escalating economic situation in the country and the world also significantly affected domestic businesses, including Vinfast Social Factors - Society has many different forms and colors, creating different standard views These standard views have a profound influence on corporate governance of the company - The progress of construction of public transport works in Vietnam is still quite slow, the shortage has a significant impact on the daily circulation, thus directly affecting Vinfast's car consumption Technological Factors - The 4.0 technology revolution has a very important role for the automobile manufacturing industry in particular and other fields in general - Vinffast has applied high technologies, received the elite of world intellectuals into its vehicle production system Applying many modern electronic and computing technologies in operation, production and consumption of products Products Step 2: Define communication goals Set goals for your communication strategy: - Short-term goal: will reach 1,000,000 people after launching the first hour advertising strategy - Long-term goal: improve the position of the product in the market, reach million USD in revenue after months of selling products, exporting to foreign markets - Outcome goal: Sell all the products produced in the first batch, gain many benefits in many aspects, gain consumer confidence in the product as well as the company - Process objective : Access to fastidious markets through the results of consumption in the domestic market and the results of analysis of the world market - Communicating products in all aspects: word of mouth, magazines, television, etc - Build target towers for better performance: o Level 1: Raise awareness - Learn deeply about the company's newly launched product - electric car VINFAST FURE - Promote the search, learn about product promotion of the employees in the company, through training strategies - Improve knowledge about product promotion as well as communication and marketing o Level 2: Change of attitude - Cultivate the attitude of each employee in the company in all aspects: patience, smile, hard work, progress, creating satisfaction in service for each customer - Eliminate stereotypes about customer discrimination o Level 3: Change behavior - Each employee's behavior in the process of promoting and selling products affects sales, so there must be strict training - Always act according to the organization, have a plan in place Step 3: Identify the target audience - Learn about market segments, customer segments, search for potential customers - Coordinate with mass media, journalists and reporters in promoting products - Create a positive public opinion, build a prestigious image of vinfast Step 4: Define the content of the message - Prepare a script for promotional communication so that you can practice - Define a clear message: “Towards the future” – an image that illustrates the new product, the message of the product - Voice: The tone and tone of the voice must convey all the content and messages about the product - Time: Choose the golden time of the day to promote the product most effectively - Repetition: Always repeat the message through TV advertising channels, internet, posters, increase consumer awareness Step 5: Design strategy and tactics - Purpose : o Establish business as market leader for new electric vehicle product in public perception o Reach out to the international market - Objective: Inform customers about the features of electric cars, incentives during promotional events, accompanying customer care services (such as giving discount vouchers, warranty) free car maintenance within 12 months, ) - Strategy : o Launch a product promotion campaign o Organizing scientific forums, information associated with new products and company image vinfast - Tactic : o o Press conference, interview, advertisement Research reports, documents, information exchange forums, incentives, Step 6: Determine time frame and resources - Divide the product promotion strategy into phases: o o o Phase 1: Market exploration through the release of signals Stage 2: Implement product promotion program Stage 3: Continuous communication and promotion, making the most of customers - Allocate human resources to each stage of product promotion in accordance with the scale, location and requirements of the program - Operating costs: Pay attention to efficiency and use the most economical and reasonable costs, avoiding unnecessary waste - Using auxiliary equipment for product promotion must be appropriate and highly effective - Focus on promoting products on electronic advertising channels Step 7: Evaluate and test - Create electronic survey and hand survey to be able to survey in many aspects about customer satisfaction about products as well as promotional campaigns of vinfast company - Create channels, customer feedback forms for the new electric car line of vinfast - Synthesize and statistical data during and after the end of the product promotion campaign to find out the weaknesses and take remedial measures, in order to create the best preparation for the product as well as the strategies future product promotion 10 CHAPTER 3: SOLUTIONS Product promotion is always a job that requires a high level of expertise, positive attitude and hard work to be able to complete it well However, mistakes cannot be avoided In order to reduce or prevent errors, there must be more effective solutions In order to improve the promotion quality of vinfast's products now and in the future , some proposed solutions are as follows: - Changing people's awareness and thinking in promoting products in each region, separate places will have separate methods of promoting products - There needs to be a close connection and mutual support between businesses and agents, between agents - Create buzz in the industry through new features, as well as proactively update information, improve product promotion capacity - Learn and analyze the market, customer tastes in detail, specific data - Always receive customer feedback to learn from experience - Thoroughly and effectively apply the incentives that the Government creates for businesses CONCLUDE Taking full advantage of the opportunities of international integration of knowledge and technology, Vinfast has boldly taken the lead in the field of automobile manufacturing and achieved many remarkable achievements.To that, the product promotion strategy and vinfast's employees worked very smartly and effectively “Whatever you say, the appearance of VinFast brings many positive factors to the market The competition for market share, gaining the trust of consumers has become more intense and this is certainly beneficial for the market.” Vinfast is a new name in the international car market, but for the domestic market, it is the most anticipated name since it has not been officially launched It can be seen that Vinfast's marketing strategy is positioned not only in the domestic Vietnamese market but also internationally with much larger ambitions in the future As Vingroup's products have proven to be of great quality in the past, Vinfast's marketing strategy is expected to make a big difference for Vingroup and bring Vietnam to a new level comparable to popular brands 11 REFERENCES LIST Electronic Encyclopedia Vinfast's website homepage News magazine: What is VinFast – The journey to develop the Vietnamese brand car industry, issue of July 27, 2021 SAGA Magazine: Strategic Management of Product Promotion, Issue 11/28/2017 Some other related documents 12