International SEPT Program, University of Leipzig

THE MARKETING PLAN OF VINFAST LUX A2.0 SEDAN IN VIETNAM

FROM MAY 2019 TO APRIL 2020

Name of student: Doan Thi Kim Anh

Nguyen Anh Tuan
Do Anh Dung
Tran Thi Dinh
Doan Cong Thanh
Course ID: EM6050e
Supervisor: Dr. Nguyen Tien Dung
Date of submission: 20th May, 2019

1
TABLE OF CONTENT
List of Figures ........................................................................................................................... 3
List of Tables ............................................................................................................................ 3
Executive Summary .................................................................................................................. 4
SECTION 1: SITUATIONAL ANALYSIS ............................................................................. 4
1.1. Marketing Summary .................................................................................................. 4
1.2. SWOT Analysis .......................................................................................................... 7
1.3. Competition Situation ................................................................................................ 8
1.4. Product Offerings ....................................................................................................... 9
1.5. Distribution Channels .............................................................................................. 10
SECTION 2: MARKETING STRATEGY ............................................................................ 10
2.1. Marketing and Financial Objectives ....................................................................... 10
2.2. Target Markets ......................................................................................................... 11
2.3. Positioning ................................................................................................................ 12
2.4. Marketing-Mix Strategies ........................................................................................ 13
2.5. Marketing Research ................................................................................................. 17
SECTION 3: MARKETING PROGRAM............................................................................. 18
3.1. Target Audience ....................................................................................................... 18
3.2. Objectives ................................................................................................................. 18
3.3. USP............................................................................................................................ 19
3.4. Marketing Schedule.................................................................................................. 22
3.5. Budget ....................................................................................................................... 24
SECTION 4: FINANCIALS .................................................................................................. 24
4.1. Sales Forecast ........................................................................................................... 24
4.2. Expense Forecast ...................................................................................................... 25
4.3. Profit Analysis .......................................................................................................... 25
SECTION 5: ORGANIZATION AND CONTROL .............................................................. 26
5.1. Marketing Organization........................................................................................... 26
5.2. Monitoring and Controlling ..................................................................................... 27
5.3. Contingency Plan ...................................................................................................... 28

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List of Figures
Figure 1. Inter-relation between GDP and car ownership ........................................................ 5
Figure 2. Positioning Map ................................................................................................. 13
Figure 3. Product’s characteristics ...................................................................................... 13
Figure 4. Target Audiences ............................................................................................... 19
Figure 5. Pre-launch Marketing Program ............................................................................ 22
Figure 6. Post-Launch Marketing Program .......................................................................... 23
Figure 7: The marketing Organization ................................................................................ 26
Figure 8. Google trends of key words “Vinfast Lux A2.0 ..................................................... 28

List of Tables
Table 1. Customers’ needs .................................................................................................. 6
Table 2. The Business Objectives....................................................................................... 10
Table 3. Expense Distribution for Marketing Program .......................................................... 24
Table 4. Sales Forecast ..................................................................................................... 24
Table 5. Expense Forecast ................................................................................................. 25
Table 6. Profit Forecast ..................................................................................................... 25

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 Executive Summary
Vingroup is one of the biggest private conglomerate in Asia with a market capitalization value of
around US $16 billion. As a multi-sector corporation, Vingroup focuses on three main
areas: Technology, Industrials and Property- Services. (Sources: Vingroup)
As a subsidiary of Vin group, a leading VinFast is the first volume automotive manufacturer
from Vietnam, is developing and manufacturing – in Vietnam – its own range of innovative,
world-class vehicles and one of them is the LUX A2.0 sedan. The existence of the car will
satisfy the thirst of Vietnamese people for a car brand for themselves that is stylist, premium and
embodies the Vietnamese spirit of which they can be proud of. Therefore, we will have
advantage when targeting the domestic consumer and business market in 2019 and then to
worldwide market from 2020.

The primary marketing objective is to achieve the 65% of the domestic market share (6,350
units) and sales revenue of VND 8,494 billion in 2021.

SECTION 1: SITUATIONAL ANALYSIS

Established in 2017, VinFast has worked with specialists and senior executives from a number of
leading automotive companies to ensure it can build an automotive business from scratch within
an amazingly short timescale.
VinFast products will meet international standards and customer expectations in terms of
premium design, dynamics, in-car features and ownership experience.
The company has achieved the attention and participation of the domestic public through voting
campaign for the designs of the first two cars which were later developed by legendary car
designer from Italy giving the cars design flair and sophistication.

In the market with more than 20 automotive companies who have come and found their position
for a long time where the customers have multiple choices, the competition is expected to be
intense. Vinfast is going to carefully target specific segments and stick to its the company’s
philosophy of ‘Vietnamese – Style – Safety – Creativity – Pioneering’

1.1. Marketing Summary

Vietnam’s economy is growing rapidly. Annual GDP per capita has accelerated in recent years to
over 6.8% and is forecast to continue at 6.5% p.a. in the coming years. This positive economic
outlook creates significantly higher potential for growth in passenger car ownership. Currently, it

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stands at around 23 cars per 1,000 inhabitants, but estimates suggest that ownership in Vietnam
will soon rise to 50 cars per 1,000 inhabitants. The current car sales volume in Vietnam is
300,000 units per annum. That is forecast to triple to 900,000 units by 2025.

Inter- relation between GDP and car ownership

Car consumption per head

Source: OICA/GTS

Figure 1. Inter-relation between GDP and car ownership

Besides, the increase in car consumption of Vietnamese people is high with 55% in 2015 and
27.1% in 2016

ASEAN Auto Purchase index of Financial times shows that in the past 5 year there is an
increasing trend of Vietnamese people who want to own a car when their incomes are proven to
be increasing since 2012.

In parallel with the boom in car sales, Vietnam is also investing in significant roadbuilding
programmes. Major development works are currently underway, many due for completion by
2020, by which time 21 highways are expected to have been built with a total length of nearly
6,500 km.
Market segment for Vinfast Lux A 2.0 accounting for around 3% of total market (sedan cars
sales is estimated at 8000 unit in 2018) includes women and men in the age of 28 to 44 years old
of which women customers have the potentiality of buying cars earlier than men about 5 years.
They are successful professionals and entrepreneurs, most of them are married or have family to
take care of. They love travelling and leisure and have the tendency of enjoying life. The
customers also are corporates and government offices who need cars for business travelling.

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 Table 1. Customers’ needs

Targeted segment Customer needs Corresponding features and

benefits
Stylist design Design undertaken by legendary
Pininfarina
Professionals Interior supply by Faurecia
(Consumer market) Sophisticated interiors Dual front, side and curtain airbags,
Safety Active Rollover Mitigation
technology

Stylist design Interior supply by Faurecia

Sophisticated interiors Interior supply by Faurecia

Entrepreneurs High tech in car feature 10.4-inch touchscreen dominating

(Consumer market) the centre console

Dual front, side and curtain airbags,
Safety Active Rollover Mitigation
technology
Dramatic use of color in the
Vietnamese culture and nature.
Vietnamese identity Three different themes each based on
an iconic Vietnamese landscape for
choices
Corporates
(Business market) Stylist design Design undertaken by legendary
Pininfarina
New 2.0-litre turbocharged gasoline
Engine performance engine manufactured and licensed
by GROB, Thyssenkrupp, AVL and
MAG
Dramatic use of color in the
Vietnamese identity
Vietnamese culture and nature. Three
Government offices
different themes each based on an
(Business market)
iconic Vietnamese landscape for
choices

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 Engine performance New 2.0-litre turbocharged gasoline
engine manufactured and licensed
by GROB, Thyssenkrupp, AVL and
MAG
Environmental ASEAN NCAP safety testing
considerations Meet Euro 5 emissions standards

Car users can choose standard car or they can select features and interiors designs for their own
cars when they make car booking.

1.2. SWOT Analysis

As the first car brand of Vietnam, Vinfast has a number of strengths besides other weaknesses
such as the lack of brand awareness which need to be tackled. Vinfast has opportunities to
develop in the domestic market with the obvious support from the local government but also
faces major threat which is the fierce competition from other car brands.

 Vinfast Lux A2.0 - strengths:

- Luxurious style: Vinfast Lux A2.0 has incorporated of most famous car designers from
Italy embedded with Vietnamese aesthetic
- Sophisticated interiors and hi tech in car features: Vinfast Lux A2.0 takes the customers
to a nice surprise when getting inside the spacious car equipped with Italy supplied
interiors, control system with few buttons, the hierarchy of functions prioritized logically
and a simple color palette that is easy to read

- Impressive engine power comparative to BMW: The LUX A2.0 targets acceleration from
0-100 km/h in 8.9 seconds with the 130 kW engine

 Vinfast Lux A2.0 - weaknesses:

- Lack of brand awareness. We can build the brand with the participation of the public
along the way and consolidate the customer’s perception by intensive promotion and
advertisements.

- Lack of customers’ experience. We can make the ownership of the car more than just
“pay it and take it”. We give the chance for the customers step by step to get used to the
cars, try it and love it.

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 - Pricing is rather high with 900m VND in promotion period and 1.366b VND in full (not
inclusive VAT). We will communicate in our marketing plan to help the customers know
that it costs for a reason and they have got value for money when they choose Lux A2.0.

 Vinfast Lux A2.0 - Opportunities:

- Government supports. Vietnamese government has provided Vinfast privileges when
making cars by reducing and exempting and reducing taxes, land rent, sea rent, import
and export procedures.

- Infrastructure improvement: Vietnam is one of the leading infrastructure spender in Asia

with thousands km of roads, bridges are being built and repaired annually

- Government tax exemption on car spare-parts made in country: Vinfast and its cars can
enjoy the benefit from the government protection policies (i.e Decree 116) or the being
drafted policies on tax privilege for automobile equipment and spare parts localized.

 Vinfast Lux A2.0 - Threats:

- Free trade agreement (WTO, AFTA, EVFTA) are coming into effect and tax for imported
cars will go down to 0% . With import tax going down tremendously, all kinds of cars
including cheaper cars (400m VND to 600m VND) from ASEAN will flow into Vietnam
naturally. Vinfast Lux A2.0 need to emphasize on its differentiation to stand out as a
value for money national car.
- Traffic and infrastructure problems in Vietnam. Despite the recognized efforts from the
corporates and government on improving the infrastructure, traffic jams, traffic blocks,
traffic accidents are still the killing pain that make the car potential customers to think
twice before making the deal. With technology in the car, Vinfast Lux A2.0 will make
the user utilize the communication to alarm and forecast the traffic status for drivers.

- Fees and expenses for car use increase (registration fee, gas, parking, insurance,
penalties…). Although most of the customers when they decide to buy a car have already
calculated the expense that they have to pay for car use but this cost is increasing with
government new policies and the current infrastructure has not met the demand of car
users. Although we can consider this fee is acceptable for customers who will buy Infast
Lux A2.0 but we can run a number of programs to give free insurance fee or parking fees
to customers.

1.3. Competition Situation

Lux A2.0 is classified in D category and it will compete with other car brands including Toyota
Camry, Mazda6 and Kia Optima (K5).

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 Toyota Camry:
Toyota Camry is the flagship car model leading the D category with stable sales revenue and
crowds of loyal customers. The economical and durable car is equipped with 2 engine
options including 2.0, 6AR-FSE version and 2AR-FE. In 2019, there will be two models
sold in Vietnam 2.0G and 2.5Q at the prices of 1,029b VND and 1,235b VND.

 Mazda 6:
Taking the second position in sedan car market in Vietnam, Mazda 6 is the module planned
to be sold in Vietnam in 2019 at expected prices of 819m VND to 1,019b VND. Mazda 6 is
equipped with world class modern features such as 8inch touch screen

 Kia Optima:
Kia Optima 2019 is a new breed of Korean car which draws big number of car fans thanks
to their cooling equipment like automatic wind hollow from behind, automatic gear, electric
brakes…And is placed to the market at competitive prices of 789m VND to 969m VND.

Despite the competition, Vinfast Lux A2.0 is believed to thrive in the market thanks to its
appealing features and benefits that are honed to Vietnamese style to meet the need of the chosen
market segment. After Vinfast Lux A2.0, there will be another more reasonably priced sedan car
to be introduced.

1.4. Product Offerings

The Vinfast Lux A2.0 offer the following features:

 Lux A2.0 premium model epitomizes the company’s philosophy of ‘Vietnamese – Style –
Safety – Creativity – Pioneering’
 The features

Length x Width x Height: 4,973 x 1,900x 1,464 (mm)

Dimensions
Wheelbase: 2,968 mm

Engine 2.0L, I4, DI, DOHC, twin-scroll turbo charger, VVT

Displacement 1997

130kW (176 PS) @ 4,500 – 6,000rpm/

Max. output
170kW (231 PS) @ 5,000 – 6,000rpm

Max. torque 300Nm @ 1,750 – 4,000rpm/ 350Nm @ 1,750 – 4,500rpm

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 The engine is shut down and restarted automatically to reduce
Automatic start stop
the amount of time the engine spends idling, thereby reducing
function
fuel consumption and emissions

Transmission ZF 8-speed Automatic Transmission

Drivetrain RWD

Fuel Gasoline

Emission standard EURO V

1.5. Distribution Channels

 Vingroup auto showrooms in and outside Vingroup’s properties

 Authorized car dealer(s)

SECTION 2: MARKETING STRATEGY

2.1. Marketing and Financial Objectives

 Business objectives: Deliver 7,290 units in 2019 & 2020 and 6,530 cars in 2021 and will get
65% segment share in 2021

Table 2. The Business Objectives

Time Expected Amount

Pre-sale bookings Apr/19 – Aug/2019 300 cars

Post launch Sep/19 – Dec/19 1,050 cars

FY 2021 FY 2021 6,530 cars – 65% segment share

 Marketing objectives:
- To make VinFast Lux A 2.0 the most sensorial – stimulating brand in D – segment,
generate and amplify consumer advocacy.
- To take VinFast Lux A 2.0 to a whole new level of sophistication and leadership by
clearly displaying how it is a cut above as it’s the debut of signature VinFast
Technologies.

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 - To drive booking enquiries on the New VinFast Lux A 2.0 at the Motor Show.
 Communications objectives:
- To attract public attention and increase brand awareness and improve customer buying
consideration for VinFast Lux A 2.0
- Elevate VinFast Lux A 2.0 brand in customer perception as BIC smart and fuel efficient
D-car
- To support dealer engagement with lead generation of hand raisers and prospect buyers.
 Financial Objectives: Get profit in 2020 with net income will be about VND 135 billion
2.2. Target Markets
a) Market Segmentation
The market segment is categorized by age, academic level, income, marital status and job
position of customers:

 There are 3 groups of age:

- Below 27 years old: young people not get married yet, or just young married couple
- Age from 28 to 40: they are more matured, majority of them have family and stable
career
- Above 40 years old: almost of them are full-nest (couple with older children); they have
good position in their career as well as subsistence income.
 Academic level:
- General education
- University/College
- Post-graduate

 Marital status:
- Single
- Married without kid
- Married with kid(s)
- Others

 Job position:
- Professionals
- Entrepreneurs
- Government officers

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 - Others

b) Target Market
Actually, the car is a high value product so it towards to the people that have good income.
VinFast Lux A 2.0 is the mid-end range car then it focus on the people who have gained certain
success in life and career. Based on the survey results, the age range from 28 to 44 years old
occupied 50% of respondents. The survey results also show that the highest percentage of
respondents are in high-income, managerial position. Customers can be single or have family
already. Moreover, the percentage of female and male that interested in VinFast Lux A 2.0, are
the almost the same.

Briefly, we can target out market to male or female, 28 to 44. They are successful professionals
and entrepreneurs, most of them are married or have family to take care of. They love travelling
and leisure and have the tendency of enjoying life. The customers also are corporates and
government offices/officers who need cars for business travelling.

 They take advantage, seize opportunities, take risks and stay ahead.

 They are tech-guru and have a passion for the pleasure of driving, and want to express their
personal style and individuality through their cars.

 They care about images and have strong national honor

2.3. Positioning
The market positioning of the product must focus on target market. Regarding to VinFast Lux A
2.0 we will offer a car for customers that have big enough spirit to match their personality,
reflect their style and passion: modern design, comfort to drive, smart technology and safety.

Focus makes customers feel more energized, savvy and ahead of the curve. This is delivered by
the luxury driving dynamics VinFast Lux A 2.0 which will be famous for, beautiful design
compatible to BMW and enhanced state-of-the–art driver assist tech.

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 Figure 2. Positioning Map

2.4. Marketing-Mix Strategies

a) Product
Lux A2.0 premium model epitomizes the company’s philosophy of ‘Vietnamese – Style – Safety
– Creativity – Pioneering’. These features will make Vinfast Lux A2.0 different with other
competitors which are in the same D-class segment.

Vietnamese Style Safety

Creativity Pioneering

Figure 3. Product’s characteristics

The first two cars from new Vietnamese car company, VinFast, display its philosophy of
‘Vietnamese – Style – Safety – Creativity – Pioneering’ through a world-class design language

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developed with the world-renowned Pininfarina design team in Italy to create the premium
model of sedan.

From a starting point of exceptional proportions, designers from VinFast and Pininfarina created
timeless cars that each feature a long wheelbase and elegant, truly inspiring styling. A long
bonnet, classic trunk and horizontal body lines create a symmetrical, sophisticated and elegant
beauty for the premium sedan.

One specific highlight of the debutant’s design language is prominent at the front of the new car.
The chrome V emblem at the centre of the grille is confidently and distinctively symmetric. To
the right is a horizontal chrome splint that combines with the LED daytime running lights to
create an italicised F-motif, representing the second syllable of VinFast, and a unique
asymmetric flourish. From the central V emblem radiates the bold and lean crease lines that run
over the bonnet, creating a fresh and modern look, reflecting the pride of Vietnam’s first car
manufacturer to reach for the world.

The strong, distinguishable design, enhanced by elegant lines and refined details, gives the cars
several distinctive highlights. First and foremost, these emanate around the V logo in the grille
which references the country of Vietnam, as well as the Vingroup and VinFast brands. In
conjunction with Pininfarina, each body line is carefully sculptured to express the natural beauty
of Vietnam and the warm-hearted and dynamic characteristics of its people through a modern
and world-class design language.

The proud and energetic styling of the VinFast sedan are also heavily influenced by the new
company’s progressive approach to design. Breaking all traditional car development rules,
VinFast gave the people of Vietnam the opportunity to determine the styling direction at the very
start of the design process. More than 62,000 people voted when presented with 20 design
sketches from four world-renowned Italian car design houses. Starting with ItalDesign’s winning
concepts, the cars’ designs have since been developed and completed by Pininfarina. Designed
for the Vietnamese people based on a selection made by the Vietnamese people, these debut
VinFast models can truly be regarded as national products of Vietnam, embracing the pride and
ambition of its citizens.

With its debut in Paris, VinFast will become Vietnam’s first automotive manufacturer to
participate in a major international motor show, signalling the confidence, pioneering approach
and global outlook of a new and energetic brand.

b) Price

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With Lux A2.0 products, VinFast uses the market-oriented pricing strategy. Its goal is to set
prices that are appropriate to market conditions, with consideration for competition, demand,
consumer perception, and other variables.
Quality of German, Design from Italia, Price for Vietnamese
Wholesales: 1.300.000.000 VND
Retails:

 Pre-book price : 990.000.000 VND

 Launch Price : 1.502.600.000 VND
c) Place
The primary way to purchase the Lux A2.0 is through local VinFast dealerships. These
dealerships should be placed in areas that are easily accessible and recognizable to interested
customers.
For customers that are loyal to Vingroup but are not aware of the VinFast, the car should be
strategically placed and displayed on-top of a stand inside and/or outside with special signs
surrounding it in order to extenuate its presence and draw customers to it.

d) Promotion
We use the absolute amount of VND 150 billion for marketing program every year in which we
will focus on some tools to promote the sales:

 Television:
- Television is the largest mass media vehicle used today all over the world. It would be in
our best interest to partner with the VTV (Vietnam Television) to broadcast our
advertisements. VTV has 9 channels, 80 billion viewers and is the major television
broadcaster in Vietnam.
- To utilize this mass media, we will broadcast different commercials in different regions
(markets) but the message will remain consistent as mentioned in the “active park assist”
technology. The advertisement on TV can broadcast in 15-20 seconds because the cost
for television advertising is extremely expensive. The content will show the group of men
parking the car while watching the football game. The steering gear is automatically turn,
one of them, a good looking man only presse an accelerated pedal then brakes the car
when the sensor alarms. The parking will be implemented smoothly and precisely.
 Print:
Although print is a dying industry, we would like to put some of our budget towards it to
capture the most of our target market as possible. Magazines like Forbes, VN Economy
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 and Motor-Trend are the issues of choice. These titles will bring in the most Gross Rating
Points when it comes to reach and frequency. Our strategy is to make sure that our
advertisements are 4 colored full page ads that are found on the back cover of the
magazines, this is the most viewed page besides the cover. We will implement a diverse
set of messages that will directly reflect the lifestyle that our target market personifies.

 Radio:
There are over 75 radio channels in Vietnam that broadcast above 95% signal coverage
over Vietnam territory. We believe that a 30 seconds pre-recorded commercial that is put
on a rotator is a viable option for this specific media vehicle. The most recently favorite
radio channel is VOV Traffic, and the best time to broadcast our advertisement is on rush
hour when most of driver are hearing this channel.

 Events:
- Sponsorship of events is a great way to really get customers to see the real personality of
VinFast and what they are all about. These sponsorships will reveal to our target market
that we believe in the same values as them. These events can really solidify the potential
customers purchase. A very different yet interesting idea that we feel will work well is
opening our manufacturing doors for all potential buyers to walk in and see how the
vehicles are made and tested to industry and more importantly VinFast’s standards.
Having this option would really make the customer feel warm and confident about how
their vehicle has been made. Sponsorship of certain sporting events such as the V-league
would provide a good return on investment because this football league attract a number
of men, it can be broadcasted on TV also.
- Another way we can encourage interested customers to try the VinFast LUX A 2.0 is to
provide “trial cars” in VinFast Roadshow. Tourists or anyone in need of a car can easily
go to a local Dealership and rent a VinFast LUX A 2.0 for a maximum of 7 days. By
allowing rentals of the car, customers who rent the car will gain familiarity and comfort
with the VinFast LUX A 2.0. In turn, this familiarity will propel customer’s to purchase
the VinFast LUX A 2.0 after experiencing the various benefits the car has to offer. In this
Roadshow, the participants also can join a lucky draw to win many valuable gifts like
TV, discount coupon for new motor model.
 Outdoors:

- Billboards and Transit advertisements would be useful in big city such as Hanoi or Ho
Chi Minh. Both of the two big cities have a high population density, this is a very large

GROUP 1 – EM6050E 16
 frequency base that we can capture to really generate awareness and interest of the new
VinFast LUX A2.0. These print advertisements will be watered down screenshots of our
commercials that explain the most impressive technology of the car.
- The billboards also can place at the two sides of highway, especially the way that connect
to airport.

 Online Advertisement (OLA):

We will launch a new website of Lux A2.0 advertisement from Google Adwords to climb
on top of searching results. Some technical articles can be produced and post onto famous
online newspaper like VnExpress or Dan Tri, can attract a number of readers who are
interested in automobiles.

 Sale Promotion: Is an effective sale tool to increase purchase in short-term, that we can
apply with premeditation. Sale promotion can be the direct reduction of price, or support
loaning with zero interest, or extra years of after-service package with free changing oil or
fully maintenance.
2.5. Marketing Research
a) Method and Research Design
Follow VinFast strategy to launch Lux A2.0 in Vietnam, the main customers’ data collection is
collected by VinFast’s Agency, for example Wunderman Company (Wunderman, [online],
Available at:< http://www.wunderman.com/>). Vin’s Agency uses multiple methods to collect
data including questionnaires survey, observation, social network data analysis, internal and
external data analysis. In this study’s scope, the data collecting is conducted independently by
research team by sending out questionnaire survey. Also, the results of this survey are compared
with VinFast’s agency’s research results to assess the reliability of data collected. Base on that,
the marketing plan will focus more on target customers and customers’ expectations.
b) Data collection process
Firstly, the main data source that VinFast focuses are: Customer survey and External data
statistics. Thus, the survey questions are defined and organized by research team to collect
customer’s information in multiple directions. The second, target audience for answering survey
is zoned in small scope. They are VinFast car’s potential owners, from 28 to 44 years old and
they are using emails. This customers’ contact list is obtained from Vingroup’s internal source.
The third, the survey be conducted via online form to get responses quickly and data analysis
automatically. As a result, the online survey form is sent out to 500 email contacts and responded
rate is 6% equal 30 respondents.

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c) Sample profiles
They are male or female, 28 to 44. They are successful professionals and entrepreneurs, most of
them are married or have family to take care of. They love travelling and leisure and have the
tendency of enjoying life. The customers also are corporates and government offices/officers
who need cars for business travelling.

 They take advantage, seize opportunities, take risks and stay ahead.

 They are tech-guru and have a passion for the pleasure of driving, and want to express their
personal style and individuality through their cars.

 They care about images and have strong national honor

SECTION 3: MARKETING PROGRAM

3.1. Target Audience
Intelligent driven modern self-starter with an ambition to be at the top

B2C

- High-achiever men and women, 28 to 44 years old, urban areas

- Entrepreneurs who are married, family oriented

- High educated, professionals, government officers

- Be interested in using Vietnam’s first national car brand

B2B

- State companies

- Individual business household with the proud of supporting Vietnamese product

3.2. Objectives
To reach the number of cars sales of 6,530 units and accounting for 65% market share in
domestic market by 2021, we have set ambitious yet achievable objectives for the marketing plan
to be run during 2019 – 2020 described as in Figure 4 below.

During and after the execution of the plan, we aim to have:

 60% of the chosen target market to search for information of Vinfast Lux 2.0 or Vinfast
cars
 20% of the chosen target market to examine the information of the product
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  10% of the chosen target market to compare the products with other brands or share what
they have researched with others
 0.5% of the chosen target market to decide to buy the cars or ask for product demo
 0.1% of the chosen target market to get the contract proposal
 0.03% of the chosen target market to get the car purchase completed

60%

20%

10%

0.5%

0.1%

0.03%

Figure 4. Target Audiences

3.3. USP
We should for focus on the UPS with slogan with Car for Vietnamese with high Quality

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GROUP 1 – EM6050E 20
3.4. Marketing Schedule

3.4.1. Pre-launch Marketing Program

Figure 5. Pre-launch Marketing Program

22
3.4.2. Post-Launch Marketing Program

Figure 6. Post-Launch Marketing Program

23
3.5. Budget
Total budget for marketing program is estimated about VND 150,000 million from May 2019 to
April 2019

Table 3. Expense Distribution for Marketing Program

Unit: Million dong

Percentage Amount
TV Communication/Print/OOH 35% 52,500
Social Media (FB, News, Magezine) 25% 37,500
Roadshow 10% 15,000
Workshop 10% 15,000
Test Driven Event 5% 7,500
Media Event 5% 7,500
Incentive 3% 4,500
Promotion 7% 10,500
Total 100% 150,000

SECTION 4: FINANCIALS
4.1. Sales Forecast
The expected volume for Lux A2.0 in 2019 are 1,350 cars in which 300 cars during the Pre-
Launch period and 1,050 cars in the first launching quarter (from October 2019 to December
2019) is 1350 cars and the growth rate of car sales is 10%/year.

The price for the customers buying in the first year for wholesales is VND 1,300 million (USD
56,277) and will be remained during 03 next years.

Table 4. Sales Forecast

Q4/2019 2020 2021 2022

Volume 1,350 5,940 6,530 7,180

Price (million dong) 1,300 1,300 1,300 1,300

Revenue (million 1,755,000 7,722,000 8,494,200 9,343,620

dong)

24
4.2. Expense Forecast
Cost of Goods sales accounts 70% of the revenue

Selling expenses includes Promotion, Product display expenses and sale support expenses,
advertising and marketing research expenses, transportation expenses, selling staff costs and
others. In which the marketing expenses will be remained with the value of VND 150,000
million every year and other expenses will account about 5% of total revenue during 03 years

General and administration expenses include some main expenses such as staff costs, outside
service expenses, depreciation expenses, per-diem allowances, transportation expenses and
others. General and administration expenses accounts (but depreciation expenses) will be VND
800,000 million in 2019 and the growth rate is about 5% during 3 years

Initial invest was factory for Lux A 2.0 with the value of VND 24,150,000 million which would
be classified as 30 years property and depreciated using the straight-line method with no salvage
value. So depreciation expense is VND 805,000 million every year.

Table 5. Expense Forecast

Unit: million dong

Q4/2019 2020 2021 2022

COGS 1,228,500 5,405,400 5,945,940 6,540,534

Selling expenses 237,750 536,100 574,710 617,181

General and Admin 1,605,500 1,645,500 1,687,500 1,731,600

expense

EBT -1,316,750 135,000 286,050 454,305

Tax (10%) - - - -

4.3. Profit Analysis

We estimate a first-year loss of VND 1,316,750 million and will become profitable in 2020 with
the value of VND 135,000 million and get VND 454,305 million in 2022

Table 6. Profit Forecast

Unit: million dong

Q4/2019 2020 2021 2022

GROUP 1 – EM6050E 25
Net Income -1,316,750 135,000 286,050 454,305

SECTION 5: ORGANIZATION AND CONTROL

5.1. Marketing Organization

CHIEF
MARKETING
MANAGER

Marketing Adversing & Maketing

Research Sales Promotion Administraion Sales Manager
Manager Manager Manager

Global Sales VietNam Sales

Manager Manager

Figure 7: The marketing Organization

 Chief Marketing Manager:

The responsibilities of Chief Marketing Manager lie in the decision making within the
process of the development of the major marketing strategies, as well as running the
marketing department. Chief Marketing Manager is also answerable to the Board of
Directors or the Management about the results of the marketing strategies.
 Advertising & Sales Promotion Manager: Prepares budgets and submits different estimates
for the costs of marketing campaign development to upper level executives for approval.
Also assist with the annual budget planning, prepare advertising contracts, and coordinate
activities within all departments.
 Sale Manager: plays a key role in the success of organization. Responsible for achieving the
sales targets and eventually generates revenue, through effective planning and budgeting.
 Marketing Research Manager: Responsible for research and analysis that drives the
marketing process and guides its marketing strategies by finding out about the target
customers and the competition of the business

GROUP 1 – EM6050E 26
 Marketing Administration Manager: Assists and reports to the marketing manager to run the
day to day business of a marketing department. Carries out administrative work required for
the smooth running of the department.

5.2. Monitoring and Controlling

In order to assess the effects of our marketing activities and programs, we regularly evaluate
base on an amount of criteria and methods:

 Cumulatively website visited:

- The quantity of time people visiting our website and search for Vinfast Lux A2.0 could
illustrate how many people interest in our brand. From that, we can assess the effects of
our advertising campaign.
- Our goal for this criteria is 2,860,000 visits before Pre-launch
 Survey:
- As we want to learn how our marketing campaign has impacted customer perception, we
frequently send out surveys to a random sampling of our target audience to see how
familiar they are with our company and how well they know about VINFAST LUX A2.0.
Beside we may ask new customers where they heard about us to see which of our
marketing strategies is the most persuasive.
- Our goal for this criteria is 77% familiarity.
 Google trends:
- We use google trends as a tool to asses our marketing campaign. Base on the change of
the number people searched the key word “Vinfast Lux A2.0” in google, we can evaluate
the effectiveness of our campaign.
- For example, the below graph show google trend of key words “Vinfast Lux A2.0” and
“Toyota camry” in the period from May 2018 to May 2019. We can see that, from
October 2018 to November 2019, the trend of “Vinfast lux A2.0” underwent a significant
increase. It shows the highly effect of our campaign “The Paris Motor Show”

GROUP 1 – EM6050E 27
 (Source: trends.google.com)

Figure 8. Google trends of key words “Vinfast Lux A2.0

 Showroom traffic:
- The other method is based on statistics of showroom traffic. From the number of people
visit our show room, we can see how many Leads customer, our marketing process had
made, so we could evaluate our process.
- Our goal for this criteria is 7.500 customer visit our showroom in September 2019
 Sales:
- Because the end goal of marketing efforts is to raise sales and profits, so we use the
numbers to measure how our campaigns are affecting customer behavior and evaluate the
effectiveness of our campaign.
- Our goal for this criteria is selling 300 units in pre-launch period and after launch we will
sell 1,050 units from September 2019 to December 2019
5.3. Contingency Plan
There is a myriad of reason could make the results are not as expected. Therefore, we have made
marketing contingency plans to respond quickly and get the expected result.

 When the familiarity rate is lower than expected. We will invest more money on
advertising, especial on social media. For example, we will make an advertise video. In
this video, a well-known football or singer will use our Vinfast Lux A2.0, and we will
upload this in our website and some automotive fanpages.
 When customer do not have a fully known about our product. We organize motor show,
in this event, customer could try to drive and test the Vinfast Lux A2.0. Through those
event, customer will have real experience about our product.
 When we could not achieve our sales targets. We concern about some promotion
activities such as reduce cost for special day.

GROUP 1 – EM6050E 28