HANOI UNIVERSITY

FACULTY OF MANAGEMENT & TOURISM

MARKETING RESEARCH

VINFAST

TUTORIAL 4: MR. NGUYEN LONG AN

Kim Dieu Linh 2004010058
Le Thien Giang 2004010024
Tran Thi Thuy Hang 2004010036
Duong Dao Thanh Hoa 2004010042
TABLE OF CONTENTS
1. Summary Executive

2. Company Introduction

3. Current Marketing Situation

3.1. Internal Environment
3.2. Micro Environment
3.3. Macro Environment

4. SWOT Analysis

5. Main Issues

6. Marketing Objectives

7. Marketing Strategies

8. Marketing Proposal

9. Action Plan

VINFAST - PRINCIPLE OF MARKETING

 1. Summary
EXECUTIVE

Established in 2017, Vinfast became the In the second part, we perform a SWOT
first Vietnamese brand to pioneer in the analysis to look at the company's situation
field of car manufacturing. In recent and from there make an assessment of
years, Vinfast has also shown their efforts the progress of the campaign, overcoming
when once again becoming a pioneer in the obstacles and achieving its success.
Vietnam to expand production of electric Weaknesses create challenges for Vinfast,
cars and electric motorcycles. For the as a completely new Vietnamese car
purpose of deepening the marketing brand, directly confronting competing
strategy of Vinfast, we decided to analyze units that are imported car brands such
the marketing strategy of the Vinfast as Mercedes, BMW, Hyundai, Porsche,
launch campaign in Vietnam from 2017 to Mazda,... The main problem is the
2019. challenge of brand barriers and the
pressure to expand the market.
The beginning of the report will provide
basic and useful information about With the above issues in mind, our report
Vinfast including history of formation and provides a marketing strategy based on
development, scale, current product 4Ps (Product, price, place, promotion.
lines, target customers, micro Finally, based on the analysis, the report
environment and macro environment. will make an assessment of effectiveness
of the strategy and propose some possible
solutions to solve outstanding problems.
 2. INTRO

INTRODUCTION

HISTORY OF FORMATION
AND DEVELOPMENT

Full name: VinFast Manufacturing and Trading Co., Ltd

Established in 2017
The company is a member of Vingroup construction and real estate
group, founded by Mr. Pham Nhat Vuong.
Vinfast has its headquarter in Hai Phong, branch in Hanoi and has 3
subsidiaries: VinFast Business and Service Joint Stock Company, VinFast
Business and Service Company Limited, and VinFast Escooter
Manufacturing and Trading Company.
VinFast's CEOs are Mr. James Benjamin DeLuc and Mr. Le Thanh Hai.
HISTORY OF FORMATION
AND DEVELOPMENT

VINFAST is connected from a series of abbreviations of the

words: Vietnam - Style - Safety - Creativity - Pioneer with
the meaning of honoring Vietnamese brand cars. The
meaning of the name represents the desire for
industrialization and modernization, the desire to pioneer the
development of the automobile manufacturing industry in
Vietnam.
VinFast also wants to affirm the national pride, bringing the
Vietnamese car brand to the world with the slogan "Intensity
of the Vietnamese spirit" ("Mãnh liệt tinh thần Việt Nam")
VinFast logo is inspired by the letter "V" symbol. The letter “V”
represents Vietnam, Vingroup, VinFast, the letter “V” also
stands for Victory – Victory

VINFAST - PRINCIPLE OF MARKETING

MARKET SEGMENTATION
OF PRODUCTS

Gasoline and electric cars are the two product lines that VinFast is
developing
VinFast spans all segments from mid-range to high-end, from small cars to
family cars

Gasoline Products Electric Products

VinFast Fadil: The car line developed from Electric motorbike: Announced with 7
the Karl Rocks model of Open (Germany) different models including 3 electric
VinFast LUX: Including SUV – VinFast LUX bicycles, 1 mid-range car, 2 high-end
SA2.0 and Sedan – VinFast LUXA2.0. LUX cars and 1 high-class VinFast eScooter
stands for Luxury Electric bus: VinBus
VinFast LUX V8 – VinFast President Electric car: According to the design
VinFast Pre: This is a car that is positioned model IDG EV A of Ital Design
in the popular segment than VinFast LUX
- VinFast Pre A: 1 Hatchback/1 CUV
- VinFast Pre B: 1 Hatchback/1 CUV
- VinFast Pre C: 1 Sedan, 1 CUV
- VinFast Pre D: 1 Sedan, 1 SUV, 1 MPV family
car. In this D SUV segment, there is a choice
of 1 pickup model, 1 Cross Coupé model
3. CURRENT
MARKETING
SITUATION

VINFAST - PRINCIPLE OF MARKETING

 3.1 INTERNAL
ENVIRONMENT

Finance: Vingroup is a strong financial group. As a member of the group,

Vinfast also enjoys great financial support. According to Vingroup's own
financial report, by the end of September 2019, the company has invested
12,847 billion VND in this car and electric vehicle manufacturer. Through this
investment, Vingroup directly owns 51.15% of VinFast's capital. The remaining
capital is also held by individual shareholders related to Vingroup.
Strengths: Strong financial resources

Human resources: In order to have good quality human resources according to

the standards to participate in the manufacturing field, Vinfast has established
a vocational school with two main disciplines, industrial mechanical
engineering and mechatronics according to 100% German standards. . This is
the preparation of human resources to serve the automotive industry.
Strengths: Have quality human resources

VINFAST - PRINCIPLE OF MARKETING

Infrastructure: VinFast automobile factory was built on an area of ​more than
500 thousand m2 out of a total of 335 hectares of the whole complex, meeting
the 4.0 technology trend - VinFast car factory meets the standard of the world's
leading scale and modernity. Design capacity of phase 1 is 250,000
vehicles/year, phase 2 is 500,000 vehicles/year, production speed is 38
vehicles/hour.

VinFast car network: After setting a record of simultaneously opening 27

showrooms in one day, VinFast now owns a system of 70 showrooms and
genuine dealers in 44 provinces and cities, and after only 1 year of launching
commercial vehicles, Vinfast has become the car company with the second
largest network in the market in Vietnam.
Strengths: Has a dense distribution network

Marketing resources: With a comprehensive communication strategy, Vinfast's

marketing strategy directly targets domestic and foreign communication
channels and social media channels. Thanks to the accurate customer
positioning factor plus the understanding of Vietnamese users' psychology
combined with the invitation of famous people to promote its products, Vinfast
gradually becomes a more known brand.

VINFAST - PRINCIPLE OF MARKETING

 3.1.1 CURRENT BUSSINESS
PERFORMANCE

In 2021, VinFast has a 21% increase in car sales during the pandemic. By the end of 2021,
VinFast has supplied to the market a total of 35,723 cars, an increase of 21.2% compared
to 2020.
One of the breakthrough activities implemented by VinFast in the past year is the first
comprehensive online business model in the Vietnamese market. Customers only need
to visit the website vinfastauto.com to find out, compare, make a deposit, get a loan
when buying a car, or book a car maintenance and repair schedule. This solution helps
customers minimize contact during the epidemic period, and at the same time can buy
a car or use VinFast's services easily.
VinFast's online business model has proven effective through its pre-order program for
the electric car model VF e34, when 40% of orders are made online. With 25,000 pre-
orders after only 3 months of implementation and delivered the first VF e34 cars at the
end of December 2021, opening a new era for Vietnam's electric car industry.
 3.1.2 MAKETING MIX
EXISTING 4Ps
Product
VinFast's product strategy in the 4P model is
heavily invested and developed. This is also
the basic element to develop other things
and is also the center of the overall
strategy. VinFast's products are extremely
diverse with the motto "The market leader",
striving to bring the most satisfactory
choices to consumers. With the market
positioning strategy as "The first automobile
manufacturer in Vietnam", so the product
strategies offered by the company must
always show the leading things. The
company has hired two famous designers
ItalDesign and Pininfarina, of which
ItalDesign is the name associated with two
major automakers in the world: Ferrari and
Lamborghini
VinFast has a dense network of distribution
agents, even though it has just been
launched not long ago. But in its distribution
strategy, VinFast also built for itself a
wholesale system with level 1 distribution
channels with the following operating
process: VinFast - Distributor - Customer. In
addition, the company also cooperates with
individuals and units that are selling other
models for distribution. Instead of designing
a direct distribution and management
system by itself, VinFast cooperated with
General Motors - GM to promote its trade.
With these strategies, VinFast has a very
powerful distribution system for itself.
Place
Price
VinFast's target audience is the customer
segment who wants to own a high-quality
car at an affordable price. This is
completely difficult for automobile product
lines in our country when completely
imported from foreign firms, even though
there are joint ventures such as taxes, it is
enough to make many people afraid.
Therefore, VinFast's price strategy has been
assessed at the mid-range level, which is
higher than Korean and Japanese
automakers but lower than European car
manufacturers when distributed in the
Vietnamese market. This unit does not use a
low price strategy or a high price strategy to
penetrate the market. Instead, they will
regularly organize discounts and
promotions to attract customers.
VinFast has focused on very strong
development campaigns. The first is to
promote social media, to increase their
awareness and "coverage". Implement
attractive promotions and incentives to
attract the attention of the market. Invest in
quality advertising TVC, typically TVC
broadcast right on CNN and by AKQA, which
is also the world's top TOP media company.
In particular, in the mixed promotion
strategy, VinFast's 3-no strategy also
creates a uniqueness: No investment
depreciation costs - No financial costs - No
profit.
Promotion
 Action
Unique marketing strategies from VinFast

Strategy "Collect old - Renew": The unique point of VinFast's strategy is

to collect used cars from other manufacturers. Thus, they not only
attract their old customers but also attract a lot of new customers, even
before they were regular customers of another company. Any brand
that needs to be used for less than 7 years can participate.

VINFAST - PRINCIPLE OF MARKETING

 3.2 MICRO
ENVIRONMENT
The company
- Top management:
Chairman of VinFast: Le Thi Thu Thuy
Global CEO: Michael Lohscheller
CEO of VinFast: James Deluca
Mr. Vo Quang Hue is the Deputy General Director of
Vingroup, in charge of the VinFast segment. Mr. Hue is
the person who connected VinFast with companies in
the European auto industry
CEO of VinFast Business and Service Joint Stock
Company: Ms. Le Thanh Hai
Design Director: David Lyon
Shaun Calvert, vice president of manufacturing and
engineering, moves from General Motors
Kevin Fisher: Head of Vehicle Engineering
Deputy General Directors: Nguyen Thi Van Anh (HR),
Sam Casabene (purchases), Roy Flecknell (programs
and product portfolio)
- Finance: Specifically, VinFast said that by the end of
2019, the company's total equity reached VND 19,459
billion. With a debt/equity ratio of 3.67 times, the
enterprise's liabilities are estimated at VND71,414 billion.
Thus, the total assets to balance the total capital of this
car and electric vehicle manufacturer by the end of 2019
is nearly VND 91,000 billion.

VINFAST - PRINCIPLE OF MARKETING

 - Purchasing:
Price: The listed prices of
VinFast cars are generally
at a high level compared
to other brands in the
- R&D: VinFast also invests heavily in same segment and the
R&D. cars are sold below cost.
Technology: It focuses on the R&D Channel: VinFast has
of new products with high chosen the form of
technology content that will wholesale and the number
shorten the time and even quickly of distribution channel
go on par with developed levels is 1 level - the
countries in several areas such as product will be distributed
electric vehicles, electronics, directly to customers only
smart technology... through a single distributor
Products: Less than 2 years after without a smaller
its establishment, VinFast has 3 distributor.
car models and 1 electric
motorbike product in hand and - Operations:
will launch more products such VinFast manufactures
as electric buses shortly. motor vehicle bodies,
In addition, VinFast Product trailers, and semi-trailers,
Research and Development spare parts, and
Institute also persuaded accessories for motor
international partners to join, vehicles and motor
such as the recent establishment vehicles.
of a battery packaging and VinFast has more than 40
manufacturing joint venture with dealership addresses,
South Korea's LG Chem showrooms put into
Company." operation all over the
country.
VinFast’s vision is to try to
be self-sufficient until the
domestic supporting
industry production is
large enough to become
the cooperation increasing
Vietnam’s economy.

VINFAST - PRINCIPLE OF MARKETING



SUPPLIERS

- VinGroup currently has 37 partners, including 35

foreign partners—BMW (Germany, cars), AVL (Italy,
engines), IRC (Japan)—that are famous cars and
spare parts companies in the world.
- Nearly 50 car dealers nationwide.
- 7 major partners of VinFast:
Magna Steyr - an Austrian parts supplier
Siemens - joint plant construction and research
and development center
Pininfarina
Zagato
Turin
ItalDesign
German Chamber of Commerce and Industry in
Vietnam

VINFAST - PRINCIPLE OF MARKETING



- Marketing Intermediaries: Customers can search

for VinFast products on the company's website, at
car shows, or in authorized distribution places. As
VinFast develops an electric vehicle system that is
not yet popular in Vietnam, the company has faced
many difficulties in arranging for charging stations
and meeting consumers' needs; however, it has
made progress in overcoming these difficulties.

- Competitors: VinFast has to face two types of

competitors:
Direct competitors: Major car brands in the
world are popular in Vietnam such as Nissan,
Hyundai, Toyota, etc. In addition to having good
reviews, VinFast has received reviews that were
inferior in some aspects to its competitors'
products, which already have a foothold in the
Vietnamese market. VinFast needs to improve
its products more so it can satisfy customers.
Indirect competitors: For Vietnamese people,
traveling using small and convenient vehicles
such as motorbikes, bicycles, or electric
bicycles is a big part of their culture. VinFast will
need to find a way to appeal to this market in
order to succeed.

VINFAST - PRINCIPLE OF MARKETING

- Customers: Vinfast
targets the consumer market,
with a desire for cars that are designed and built by
Vietnamese people. Vinfast's cars have a modern
and youthful design, consistent with current trends
but still bringing the colors and lines of Vietnamese
culture. In addition, Vinfast has many programs
aimed at putting customers first. Gifts such as luxury
resort packages after buying a car for a year show
Vinfast's respect for its customers. If in the past you
had to spend a lot of money to get a car, but now
with Vinfast's customer support policy, you can
easily own a VinFast car that only pays 150 million
VND upfront.

- Publics: VinFast utilizes multiple media platforms,

including TV, newspapers and social networking
sites like Facebook and Youtube, to reach potential
customers. VinFast also uses popular figures such as
David Beckham and Ngo Thanh Van to promote its
brand. These methods enable VinFast to receive a
great deal of support from the Vietnamese
government as well as positive feedback from
consumers regarding the reasonable prices,
luxurious designs and smooth running of its cars.

VINFAST - PRINCIPLE OF MARKETING

3.3 MACRO
ENVIRONMENT
VINFAST - PRINCIPLE OF MARKETING
 DEMOGRAPHIC
In 2019, the total population of
Vietnam is about 96.484 million, of
which the percentage of men
accounts for 49.8%, making it the
third-most populous country in
Southeast Asia. The employed
population aged 15+ is about 49.9
million, the services account for the
highest rate with 39% and the lowest
is agriculture with 28%. The two
cities of Vietnam, Ha Noi and Ho Chi
Minh City have a population density 10 times higher than the whole country at 2.39
people/km2 and 4.363 people/km2.
The data above shows that car ownership demand in Vietnam is very high at the
present, and will continue to increase in the future because of population growth
and increasing labor resources. VinFast, a Vietnamese automobile manufacturing
company, has many advantages in the domestic market; one example is when they
successfully tested their first model – Lux SA 2.0 on September 6, 2017. This test
created a fever throughout media outlets and among car lovers in particular and
Vietnamese people in general.

Natural factors in Viet Nam are exploited by

VinFast such as terrain, rain, climate, weather,
NATURAL etc. Besides that, climate change is
increasing, which becomes a problem for the
car industry. According to the Tuoi Tre
newspaper, VinFast has produced 15.000
Klara electric motorcycles that consumers
can move freely and still reduce emissions
into the air. In addition, they also have
environmental protection campaigns such as
‘Vi tuong lai xanh’, ’15.000 nguoi chung tay
cung VinFast giam o nhiem moi truong’, etc.
VinFast has policies to help businesses create
products that are not only quality but also
adaptable to natural conditions. This inspires
their customers, especially young people to
be environmentally conscious and also
contributes to raising their brand.

VINFAST - PRINCIPLE OF MARKETING

 ECONOMICS

For luxury goods such as cars,

customers' s income has a
great influence on product
consumption, especially in the
upper class and middle class.
Vietnam's economy in 2018
prospered in all three
production areas, supply-
demand of the economy
together with development.
Economic growth in 2018
reached 7.08% compared to
2017 - the highest increase in 11
years. GDP of the first 6 months
of 2019 increased by 6.76%. The
income of Vietnamese people is
still growing quite well, which
creates favorable conditions for
people to have the opportunity
to access luxury products such
as cars, electric vehicles, etc.

POLITICALS

In general, Vietnam’s political environment is stable. Riots are rare and the
problem of corruption is gradually being overcome. However, VinFast has
encountered difficulties importing components from China due to political
tensions between Vietnam and China. In addition, before Decree 57/2020 of the
Government, car assembly enterprises paid taxes on imported components for
domestic assembly. The average tax rate is 30% to 45% depending on the type
of car components or assemblies imported to Vietnam, which also limits
VinFast's car production.

VINFAST - PRINCIPLE OF MARKETING

 TECHNOLOGIGAL

The science and technology used in the VinFast car

brand, the first Vietnamese car brand, help it to
compete with other famous brands in the domestic
market and reach out to the world in the future.

Most of the components of VinFast's automobiles

are imported, but the company has applied
modern science and technology in its
manufacturing processes to increase efficiency,
reduce errors, and protect human workers.

VINFAST - PRINCIPLE OF MARKETING

 CULTURAL

In Vietnam, automobiles used to be

considered a product of great value and
therefore inappropriate in the context of
agriculture being the majority. However, the
usage trend is shifting as Vietnamese people
gradually become accustomed to cars and
begin to use them as a popular means of
communication in urban areas and also
gradually appear in rural areas.

VINFAST - PRINCIPLE OF MARKETING

 4. SWOT
ANALYSIS
STRENGTHS WEAKNESSES
The company: Strong top management, Marketing Intermediaries: Because VinFast
focuses on R&D, has advanced technology, a develops an electric vehicle system that is not
wide variety of products, and many yet popular in Vietnam, the distribution and
operations. arrangement of charging stations face many
Suppliers: has 37 partners, including 35 difficulties.
foreign partners, which are famous car and Competitors: Competing with direct
spare parts companies in the world and competitors such as Nissan, Hyundai,.. and
nearly 50 car dealers nationwide. indirect competitors such as motorcycles,
Customers: VinFast has brought a product electric bicycles,...
that can meet the needs of customers.
Publics: The rapid development of social
networks. Influencers participate to increase
brand awareness. VinFast also has some
activities such as giveaways, discounts…

OPPORTUNITIES THREATS
Demographics: The demand for car Competitors: Brand barriers, market
ownership in Vietnam is very high at the expansion pressure.
present and will continue to increase in the Natural: Natural factors in Viet Nam are
future. exploited by VinFast. Climate change is
Technological: Science and technology help a increasing, which becomes a problem for the
first VinFast compete with other famous car industry.
brands in the market and can reach out to the Political: VinFast encountered certain
world in the future. difficulties in importing components from
Economics: The income of Vietnamese people China. For domestically assembled cars, car
are growing quite well, which creates assembly enterprises still had to pay tax on
favorable conditions for people to access imported components for domestic assembly,
cars. which also limits VinFast’s car production.
Cultural: Cars are gradually becoming a
popular means of communication.

VINFAST - PRINCIPLE OF MARKETING

 5. MAIN ISSUES
CRITICAL SUCCESS
FACTOR

Product quality, attractive policies, and dedicated

service are the biggest contributing factors to
VinFast's success in the market after 2 years of
officially selling cars. And every element has certain
main problems.

Customer feedback: Seeding volume on Vinfast's

social network is very positive when receiving 90%
positive feedback. Moreover, when asked about
Vinfast, up to 80% of respondents know and expect it
to launch in the domestic market.

VINFAST - PRINCIPLE OF MARKETING

Improving marketing strategy: Vinfast's marketing strategy is to
thoroughly understand the media, understand consumer
psychology, and know how to apply and take advantage of
many strong media sources to increase its reputation.
Vietnamese car manufacturer Vinfast is making its debut at the
Paris Motor Show. The company has invited famous international
stars like David Beckham, Miss Tieu Vy, and Miss Tranh Nguyen to
attend this ceremony. This information makes fans extremely
excited because there is a famous person representing a brand.

Vinfast's investments have brought in a certain

amount of revenue for the company, but that also
has some main issues, such as the amount of
money that firms have to spend to get the services
of David Beckham, which is not cheap. The fact that
VINFAST invited David Beckham shows the
company's ambition and "playability."

VINFAST - PRINCIPLE OF MARKETING

 OTHER MAIN
ISSUES

For the marketing strategy of VinFast's distribution

system, VinFast has chosen for itself the form of
distribution, which is wholesale through single-level
distribution channels. Therefore, the distributors pose
a number of problems: they are difficult to control with
remote geographical location and not really qualified
human resources; it is difficult to coordinate goods
due to wide and different distribution locations; limited
client association; can cause discredit to the general
brand from cases of occupational accidents;...

Because Vietnam is a small market, production

technology is still limited, so domestic enterprises
have hardly met the strict requirements for
supplying parts and accessories to global
automobile manufacturers based in Vietnam.
Therefore, in the future, it is necessary to innovate
and perfect technology, in addition to attracting
more companies specializing in the production of
spare parts to invest and build factories in Vietnam.

Because it is a new brand, it is still young, so it is

inevitable that mistakes will be made. Cars are not
only a means of transportation but also a valuable
asset in the family. Therefore, the immaturity can
cause customers to doubt the quality and durability
of the product. Therefore, keeping the price and
durability is always the top concern of users.
VinFast's challenge is not only to create perfect
products, but also to build customer trust and affirm
its position in the hearts of customers.

VINFAST - PRINCIPLE OF MARKETING

 6. MARKETING
OBJECTIVES
Vinfast is the first electric car
company in Vietnam, so it is highly
anticipated by everyone, from
quality to price. Placed under
everyone's expectations, Vinfast
has released many models, from
popular cars to more luxurious and
high-end models, to serve the
needs of the people. In just a few
years, Vinfast has achieved
unexpected results, and Vinfast's
goals will also change from year to
year.

In the nearly three decades since Vietnam legalized international

trade, foreign car brands have held 100 percent of the market share.
That was until two years ago, when Vietnamese car brand VinFast
unveiled its first models and took a considerable bite out of the
previously foreign brand-dominated market. Wanting to build on this
success and with the ambition of creating a better future for all,
VinFast endeavored to design and release Vietnam's first electric car —
the VF e34.

VinFast is implementing and

accelerating the process of going
global. VinFast will officially open a
sales network in France, Germany,
and the Netherlands in 2022 and
quickly expand to other countries in
the coming years. VinFast CEO said:
"The UK is one of the two largest
car markets in Europe and this is
also a destination that we are
targeting.  We will review our
expansion plans in the years to
come."

VINFAST - PRINCIPLE OF MARKETING

7. MARKETING
STRATEGIES

VINFAST - PRINCIPLE OF MARKETING

 It is ambitious to make the Vinfast brand become the
most popular brand in Vietnam. Therefore, Vinfast has
invested in a production complex with a very large
capacity (phase 1 is 250,000 vehicles/year and phase 2 is
500,000 vehicles/year) and is positioning Vinfast's brand
as "The First Automobile Manufacturer in Vietnam".
Because of the market leader strategy and brand
positioning as the leader, the product must have the
following elements:

PRODUCT +First, leading production capacity.

+The second is leading manufacturing technology:

VINFAST has cooperated in technology and engineering
with major European auto and spare parts manufacturers
such as BMW, Siemens AG and Robert Bosch GmbH of
Germany, as well as Magna Steyr of Austria.

+The third is the leading design.  Vinfast has hired famous

Italian designers ItalDesign and Italian design firm
Pininfarina (ItalDesign is a famous designer associated
with the names of Ferrari and Lamborghini).

-Lower price but higher quality.

-The pricing strategy that VinFast uses is a market segmentation

strategy (Low - Mid - High):

+VinFast cannot use the market penetration pricing strategy

(cheaper price makes it easier for cars to enter the market).
VinFast also does not use the skimming price strategy (high price)
because Vin is a new member entering the industry without a
name or experience. Along with the price strategy by market
segment, VinFast also makes full use of VinFast's parking price
adjustment factors that are easier to receive such as: Gift voucher
up to 70 million VND when buying Fadil car, gift voucher 150 million
PRICE
VND when buying car LuxA and give a voucher of 200 million VND
when buying LuxSA forcustomers who already own Vin's houses
under 2 billion VND, from 2-3 billion VND and over 3 billion VND.

+Vingroup's car company made the audience admire when offering

a "3-no" price policy to support consumers (no depreciation, no
financial costsand no interest".

=>With this price, VinFast affirms its desire to bring world-class

productsto a large number of consumers, in order to join hands in
building a Vietnamese brand.

VINFAST - PRINCIPLE OF MARKETING

 Direct marketing channel
-VinFast has opened 70 showrooms in morethan 30 provinces in
Vietnam to directly sell its genuine car lines to customers.
Moreover,customers canalso order and pay directly on VinFast's
website and then receive their goods atthe showroom of their
choice.
- Even in the midst of the covid-19 pandemic, VinFast continues
to provide various types of direct service to the customer site.
=>This direct marketing channel helps VinFast in reducing
intermediary costs, contacting customers directly and receiving
direct input from customers in order to improve the product and
PLACE suit the needs of customers

Indirect marketing channel

-VinFast also cleverly applies the indirect distribution method,
which is selective distribution by a 1-level distribution channel
(VinFast -> distributors ->customers)
-VinFast acquired Chevrolet's entire car distribution system in
Vietnam
=>More than 100 authorized distributors and VinFast-Chevrolet
showrooms have been established to now, covering and greeting
all consumers in across Vietnam.

-Marketing Management by Philip Kotler mentioned 4

main groups of communication tools: Advertising,
events, direct marketing and public relations.

-In the first phase of market penetration, Vinfast

created a media boom by using KOL "David Beckham"
at the Paris Motor Show.

PROMOTION
-Vinfast implements bold sales policies such as: 3-
zero price policy on the first day of launch, offer
"Registration 0 VND", 10% discount when paying
directly, interest free for the first 2 years for
installment customers,...  At the same time, the 5-
year installment policy and after-sales service also
help Vinfast retain old customers and even turn them
into "brand ambassadors".

VINFAST - PRINCIPLE OF MARKETING

 CUSTOMER
PERSONA

To understand more about the target market, you

need to analyze customer personas:

+Quality and safety are the most highly appreciated

plus points of Vinfast cars.

+Plus, Vinfast was born with 3 models: Fadil, Lux A2.0

and SA2.0, respectively equivalent to the A-segment
segment, outstanding sedans and SUVs, attracting
many users to choose. Luxury car design combined
with high-class interior equipment makes users fall in
love at first sight.

+Vinfast cars are popular at the third point, which is

the reasonable price. With a luxurious interior, a
classy design, and safety features, the high-end SA2.0
car is only priced at the same price as Toyota's D-
class car.

+After-sales policy, customer care with a nationwide

showroom system. The replacement of accessories is
simple, easy, and cheap in Vietnam.

VINFAST - PRINCIPLE OF MARKETING

 MARKETING
PROPOSAL
8

Introducing New Product

After years of waiting, for the first time in the Vietnamese car market, the
VinFast brand has launched a class A car, which is VinFast Fadil. However,
VinFast Fadil does not stop there. Automotive engineers of VinFast Group are
constantly researching, testing, adjusting and improving this car to a whole
new level. In addition, VinFast Fadil is also designed to suit the weather, travel
conditions as well as the habits and aesthetics of Vietnamese customers. In
addition, the company also wants to compete with other giants such as Tesla,
Hyundai and catch up with the trend of the car manufacturing industry. This
marketing proposal includes the objectives, 7P marketing mix, action plan,
budget allocation, control and monitoring measures, detailed
communication plan, and more. This marketing plan is implemented in 1 year
time frame from 1/9/2019-31/3/2020 with 27 029 048 000 VND.

VINFAST - PRINCIPLE OF MARKETING

Selling 6,000 electric cars in
VietNam from 1/9/2019 to
31/03/2020
Raise awareness of VinFast
Fadil as a high-quality model
8.1
and average price by 55% by
March 31, 2020 Marketing
Objectives
Completing the construction
of 500 charging stations in 64
provinces of Vietnam by
March 31, 2020

VINFAST - PRINCIPLE OF MARKETING

 Segmentation
and target

Segmentation and target:

Psychological segmentation:
Individuals live an eco-friendly
lifestyle. Because this car focuses
towards eco-environmental
character, it is appropriate for this
kind of psychologycal segmentation.
Behavioural segmentation:
Customers with the purchasing
habit "Vietnamese people use

8.2 Vietnamese goods" are segmented

based on their behavior. This is

STP
because some customers are loyal
customers of Vietnamese products,
and they want to support native

Strategy
products as much as possible.
Demographic segmentation: The
average auto buyer must have a
salary of around 40-50 million VND
per month to be able to buy a car in
one year, according to the price of a
Vinfast car, which is believed to be
500 million VND.

VINFAST - PRINCIPLE OF MARKETING

 8.3.
PRODUCT
VinFast Fadil owns the compact, dynamic design of a multi-
purpose vehicle and has many youthful color options.
Although developed on the basis of Opel Karl Rock franchised
from General Motors, VinFast Fadil still has its own identity
and an irresistible attraction. With what Vinfast Fadil owns,
Vinfast should use it in the future to comply with
environmental requirements. Vinfast is also a subsidiary of
Vingroup, therefore it has the necessary financial resources
and means to carry out this plan.
Personal mobility and an eco-friendly product are the
primary advantages.
Generic product: electric car
Potential product: In nearly 2 years of being on the market,
Vinfast always offers attractive preferential policies for
customers who order Fadil . In addition, branded and directly
locally assembled cars will be easier to maintain and
upgrade vehicles with low cost of used components and
spare parts, helping customers save costs when using Vinfast
cars.

VINFAST - PRINCIPLE OF MARKETING

 Target Audience: Focus on the psychology of
Vietnamese people who want to purchase
Vietnamese goods while also protecting the
environment.
Advertising:
Using digital marketing: by working with third
party influencers, promoting electric cars on
social media like Instagram, Facebook, Youtube.
Cooperating with Son Tung MTP to reach Gen Z,
inspiring young people to think enterprising
Using print marketing : Such as VietNamplus,
Baotintuc.vn, Tien Phong, VN express
Using TV marketing : News, Interview
Outdoor: Advertisement at bus stop in Hanoi and
Ho Chi Minh city
Sale Promotion:
10% discount on car price at payment, installment 8.4.
Support with 0% interest rate for 2 years
Support 100% valid before you…. Promotion
In addition, customers enjoy the following rights:
"Renew old collection" for vehicles used for more
than 6 months, free parking every 6 hours at
Vincom and Vinhomes
Warranty policy of 3 years / 100,000km (subject
to pre-conditions)
24/7 support service during the warranty period
or receive gifts of great value and surprise
Direct Marketing: Using email marketing using user
data obtained through banking or cloud computing
to obtain it readily via social media.
Public Relation: Open auto shows so that Vietnamese
people may know the brand image as authentically
as possible.
 Price
Fadil from Vinfast will use a penetration pricing strategy to
give the perception of a high-quality low-cost product
from a new entrant in order to increase the brand's impact
and market share. The price will then be raised to a
competitive level in order to maximize profit.
Vinfast can give free auto charging service during one
year in order to raise prices without alienating users

Place
Vinfast should use a mixed distribution system, which includes
not just showrooms and a website, but also a dealer, similar to
what the business is doing with gas cars.
With the impact of the Covid epidemic and technological
advancements, internet buying is now a feasible option in this
setting. As a result, Vinfast should have its own system to
service online sales.

8.5.
Price
&
Place
Making a commitment to what must and
must not be done in the service of the
workers
Employees create and write website
content: Because the firm is developing its
online sales, it must address the
expectations of customers who purchase

8.6.
products online. At the same time, entice
clients by providing respectable,
compassionate, and appealing articles.

People
Training corporate customer service
personnel: Because being able to provide
exceptional customer service to clients
may be regarded a differentiating factor
from the competition. As a result, firms
invest in training their customer service
staff. This indicates that they should be
knowledgeable about the specifics of their
products and services. At the same time,
they must be personable and genuinely
concerned about their customers.

VINFAST - PRINCIPLE OF MARKETING

 8.7. Process Strategy

OFFLINE Ensure that clients have access

to things whenever they need
them
Using an electronic point of sale
that scans phones throughout
the checkout process
To guarantee safety throughout
the purchasing process, use
sterilizing equipment and
measure body temperature.

ONLINE Has a delivery service system

in place where orders are
received in a computer system
and the relevant product from
inventory is sent to the
delivery service provider
based on these orders.
Customers can also use a
number of credit cards and e-
wallets to pay.
Hotline to support opens 24/7

VINFAST - PRINCIPLE OF MARKETING

3
9. ACTION PLAN
Timeline Marketing Plan

VINFAST - PRINCIPLE OF MARKETING

 Budget location

Measures for monitoring and controlling

VINFAST - PRINCIPLE OF MARKETING

 REFERENCES
https://vi.wikipedia.org/wiki/VinFast
https://vtc.vn/vinfast-lan-dau-cong-bo-so-lieu-tai-
chinh-ar537737.html
https://vietnambiz.vn/7-doi-tac-cua-vinfast-thuc-
su-la-nhung-ai-33618.htm
https://vinfastauto.com/vn_vi/vinfast-tang-100-ty-
dong-cho-15000-khach-hang-chung-tay-giam-o-
nhiem-moi-truong
https://en.nhandan.vn/highlights/item/7001602-
vietnam%E2%80%99s-economy-grows-by-7-08-in-
2018-highest-in-11-years.html
https://sage.edu.vn/blog/chien-luoc-marketing-mix-
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https://tienphong.vn/vinfast-tren-con-duong-tien-
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vinfast-new15679.html
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customers-like-vinfast-electric-cars/
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uu-diem-va-nhuoc-diem-cua-kenh-phan-phoi-
vinfast.htm
https://www.studocu.com/vn/document/dai-hoc-
kinh-te-quoc-dan/international-business/thesis-
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selecting-green-suppliers/25151013
https://marketingai.vn/chien-luoc-marketing-cua-
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vi-the/
https://tuha.vn/bai-viet/chien-luoc-marketing-cua-
vinfast
https://bnews.vn/nam-2021-vinfast-co-doanh-so-
ban-o-to-tang-hon-21-trong-dai-dich/228247.html
https://vinfastnhatrang.org/uu-diem-giup-vinfast-
fadil-danh-bat-cac-doi-thu-cung-phan-khuc.html

VINFAST - PRINCIPLE OF MARKETING