GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Vu Thi Khanh Dieu Student ID number: 31211023659

Student name: Tran Phat Huy Student ID number: 31211026531

Student name: Phan Nguyen Tam Khanh Student ID number: 31211024120

Student name: Dang Truc Linh Student ID number: 31211026378

Student name: Nguyen Nhu Quynh Student ID number: 31211024595

Student name: Phan Le Quang Vinh Student ID number: 31211025701

UNIT AND TUTORIAL DETAILS

Unit name: Enterprise Innovation and Markets Unit number: EIM-DH47ISB-01

Tutorial/Lecture: Class day and time: Tues & Wed
Lecturer or Tutor name: Dr. Huynh Quang Minh
ASSIGNMENT DETAILS

Title: Entrepreneurship Report

Length: 4565 words Due date: 21/03/2023 Date submitted: 21/03/2023

DECLARATION
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I hereby certify that no part of this assignment or product has been copied from any other student’s work
or from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another
(previous or current) assessment, except where appropriately referenced, and with prior permission
from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except
where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
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for the purpose of detecting possible plagiarism (which may retain a copy on its database for future
plagiarism checking).

Student’s signature: Dieu

Student’s signature: Huy
Student’s signature: Khanh
Student’s signature: Linh
Student’s signature: Quynh
Student’s signature: Vinh
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has
not been signed.

I. Company Introduction:
VinFast LLC is a Vietnamese-founded, Singaporean-based private automotive
company. Established in 2017, it is a member of Vingroup, one of the largest private
conglomerates in Vietnam that was founded by Mr. Pham Nhat Vuong.
With the philosophy of "Putting customers first", VinFast is constantly innovating
to create high-class products and excellent experiences for everyone.
VinFast has quickly established a global presence, attracting the best talent
mechanic from around the world and partnering with some of the most iconic brands
in the Automotive industry. About their vision, to become a smart electric vehicle
brand that strongly promotes the global electric vehicle revolution.
About their mission, for a green future for everyone. About brand philosophy,
Putting customers at the center, VinFast is constantly innovating to create high-class
products and excellent experiences for everyone. About their core values, High-class
products, good prices, outstanding after-sales service.

II. Innovations:
2.1 Literature Review
For ages, innovation has served the only goal of making human beings' lives more
comfortable. Throughout history, supporting, producing, and implementing innovation
has been critical not just for the well-being but also for the survival of individuals,
entities, and, in some cases, whole civilizations and nations (Meissner and Kotsemir,
2015).

2.2 VinFast Innovations

Before launching electric cars, VinFast was very successful in selling gasoline-
powered cars. However, on July 15, VinFast announced it would stop selling
gasoline-powered cars. With the official cessation of production of these vehicles,
VinFast will become the pioneer pure electric car company in the Vietnamese
market, participating in strongly promoting the electric vehicle revolution globally
(VinFast, 2022)

In this report, the research team focuses on analysing VinFast's innovations in two
product segments: Electric cars and Batteries. Both of these product lines are
analysed along the Product dimensions (see Appendix A)
II. Current marketing analysis:
1. 7PS (product, price, place, promotion, people, process, physical environment)
1.1 Place (distribution channel)
1.1.1 Direct marketing channel
In nearly 2 years, VinFast has built more than 76 showrooms in over 30 provinces
of VietNam. Besides, it also opens 10 showrooms around the world, especially
America with 6 showrooms (AutoPro, 2022). A representative of VinFast said that
the VinFast Store system includes 1S, 2S and 3S store models. To be specific,
VinFast 1S stores are mostly located in commercial centres to display products and
sell cars. VinFast 2S is located on convenient roads with the objective of providing
spare parts, repairing services, and supporting nearby 1S stores or areas that do not
have 1S and 3S stores but often have VinFast customers driving through there.
About VinFast 3S which is located in strategic locations is known as the store for
integrating product display, car sales and spare parts supply and repair services. By
distributing products directly via those showrooms, VinFast has reduced the
intermediate consumption a lot because the company does not have to pay any fee
for agents. For customers, they would have a deep observation about the products
at the store and in case they have any problem or comment, they could immediately
contact the staff there to be solved as soon as possible.
Online website is the other direct channel of VinFast. Via this official website,
customers could easily get detailed information about each type of car, battery and
charging stations or register for the test drive. Moreover, this website allows
customers to book or pay a deposit without coming to the store. This is such a
wonderful advantage for VinFast clients who are always busy with their work.
1.1.2 Indirect marketing channel
Along with those showrooms above, 20 Chevrolet 3S dealers have been upgraded
by VinFast, converted to a VinFast - Chevrolet two-brand dealer model, providing
VinFast car sales, repair, maintenance and genuine spare parts services to
customers following VinFast’s standards of 3S agents to enhance coverage and
convenience for consumers (VinFast New way).

1.2. Price (Appendix B)

VinFast uses the penetration pricing strategy which means creating an
impression of a high quality but low cost product. The “Three Zero” price
policy includes “zero depreciation, zero financial expense and zero interest
rates” (Minh Quan, 2021). In the initial stages, VinFast will not include
depreciation costs, financial expenses (interest payable on loans for
investment in plant construction) or interest rates in the products’ prices. The
 selling price will be the same as the production cost calculated plus the selling
cost (Vietnam news, 2018).

VinFast targets customers who want high quality cars but affordable ones. So that it
positions its price a pretty higher price compared to Korean - Japanese brands but
lower than European brands like Mercedes or BMW (VietNamNet News, 2018).

Generally, EVs price of VinFast especially VF e34 is a quite low price for an electric
car compared to 1.3->3 billion dongs of Tesla one.Moreover, there are a lot of
promotions and battery policies for customers buying electric cars, they can receive
direct benefits of tax incentives for electric cars such as registration fee exemption,
special consumption tax reduction (VinFast, 2023).

1.3. Promotion
1.3.1 Advertisement:
In 2018, VinFast in the first stage of market penetration, the brand created a
communication boom by using Kol David Beckham, Miss Tran Tieu Vy at the Paris
Motor Show to introduce their Sedan and SUV product line (Riley, 2018).
1.3.2 Discount Promotion:
Price policy 3 Without the first day of launch, VinFast will not charge depreciation
expenses, not counting financial expenses (interest payable of loans to invest in
building factories, working capital) and no interest . The selling price of VinFast cars
and electric motorbikes will be equal to the right production cost of the product plus
the cost of selling.
1.4. People (See appendix C)

VinFast is operating under a human resource structure including leading foreign

experts from more than 22 countries around the world and Vietnamese engineers,
but the leadership structure has the presence of many Vietnamese people. VinFast
is always on the right track to create a car with the Vietnamese spirit.
VinFast's success is strongly influenced by the human resources division. For the
human resources strategy of VinFast, researchers divide it into three categories. To
begin with, the recruitment and hiring process attracts and retains top talent.
VinFast has always advocated the deployment of initiatives to draw top talent to the
sectors of mechanics and autos, along with unique incentives for compensation and
bonus policies (Tram Ho, 2021 ). Second, employee discipline is an important
component of VinFast's HR strategy. Each worker is responsible for their own work (
Bravo, 2021 ). As a result, they bear the most responsibility for their own work and
strive to complete the tasks assigned to them. Employees who do not perform well
may be fined, disciplined, or even fired. Finally, benefits and compensation for
employees during the working process. VinFast creates a unique compensation plan
for each role, skill level, and degree of employee in order to recognize the
appropriate capability and inspire individuals to reach their full potential. Positive
actions and groundbreaking successes are quickly recognized and rewarded with
money, a promotion, and a pay raise… ( Bravo, 2021 ). VinFast considers its
employees to be a resource rather than a commodity. VinFast uses an innovative
method of strategic human resource management that places a strong emphasis
on the need of letting people follow their own interests and career goals.

1.5. Process
The entire production process of automotive components and assembly is
completely synchronised and self-contained. The application of automation lines in
production and business is an inevitable trend in the 4.0 technology era. VinFast has
quickly applied modern technology of international standards to the production and
manufacturing process of cars to create safe car models with outstanding quality.
Fully equipped with a 1200 ABB robots system, VinFast’s product line seems to be
the most modern one in VietNam and South Asia (VNS, 2018).

With an outstanding process and highly qualified personnel, the VinFast automobile
assembly has shortened the production time (38 hours/ car and 250,000 cars/ year)
and quickly brought to the market models with diverse segments (Vir, 2019).

With the methodical investment from the car assembly plant, VinFast has produced
high-class, safe cars that are well received by consumers, creating a solid foundation
for the process of self-production automobile export in Vietnam (ATTS, 2021).

1.6. Physical Environment

VinFast has built itself a strong foothold in the automotive industry market not only by
the name of Vietnamese goods but also by the outstanding points it brings to the
users after 2 years joining the race.
Recently, it entered the U.S which is one of the most competitive markets in the
world with the first 45 cars in March, 2023. These steps affirm the position of
Vietnamese enterprises by putting Vietnam's car industry on the world automobile
map.
Moreover, VinFast also proves itself through ASEAN NCAP reward, The Grand Prix
Asian Awards 2020 and will be in top of the most favourite cars in 2021. This is such
an impressive achievement for a newcomer as VinFast.
The launch event of VF e34 is announced on the online platform and allows
customers to make a deposit through the online shopping system. Immediately after
opening for sale, VinFast's latest electric car model has received positive support
from customers and achieved impressive results. After only 12 hours of opening,
there were more than 3000 orders and more than 25,000 orders, of which 10,000
were ordered online after only 3 months.
It can be said that this is an unprecedented achievement in VinFast's new car launch
precedent, creating an important turning point for the development of VinFast in
particular and the domestic auto market in general.

1.7. Product
VinFast's product strategy focuses on the variety of products that are continuously
launched, allowing the company to quickly become the market leader. Each VinFast
product launched to the market is equipped with leading factors such as: Leading
manufacturing technology, leading manufacturing technology and leading design,
etc. VinFast cooperates with famous automobile engineering and manufacturing
companies in the world such as: Magna Steyr and Bosch, AVL,..., which is the
highlight of VinFast's marketing strategy ( Viet Hung, 2018 )
The design of VinFast cars has been done by the European team Pininfarina, the
engine is also selected from BMW ( KhoaNX, 2021 ) . This is because a new
brand like VinFast will have disadvantages compared to brands that have existed for
a long time, but the quality needs time to verify. So only the reasonable price factor
can attract consumers. Thus, it is reasonable to choose an engine from a luxury car
company like BMW, a machine worthy of VinFast's high-end product positioning.
2. SWOT Analysis:
The research uses SWOT analysis to assess internal and external factors that might
affect VinFast. (See Appendix B)
As a result of the analysis, it's clear that VinFast's main strengths lie in its strong
financial resources and famous suppliers that encourage it to lead the EVs market in
Vietnam.
The company has just entered the market as well as the marketing and PRs are not
so strong that it needs to focus more on advertising its products and building
customers' beliefs.
There are opportunities in the dependable supply chain, rising demand for EVs and
the awareness of “made-in-Vietnam” cars. The company is one of the first to market
with this field, given that its competitors are slow adopters.
The threats require VinFast to cut back on expensive manufacturing-related carbon
emissions and concentrate on testing carefully before launching an EV product.
3. Segmentation:
3.1 Demographic
Vinfast Electric Cars aim at middle- high income customers who are aged from 25-
55. The family life cycle is focused on the group of Young singles; Young married
without children , Young married with children, Middle-aged married with children.
Most of them live in urban areas and the education is University and above.

3.2 Geographic
Products are often found in big cities like Ho Chi Minh City, Ha Noi, Hai Phong, Binh
Duong, etc (Vingroup, 2022. that have wide streets and numerous populations.
Because electric vehicle items are challenging to transport to rural regions, where
the majority of vehicles are gasoline-powered, we hardly ever see electric charging
stations there.
3.3 Psychographic
People who have a modern lifestyle would probably prefer a VinFast car due to its
dynamic design like the Vinfast Fadil, VinFast Lux A2.0. Besides, this brand also
launches some luxurious and elegant models such as VinFast Lux SA2.0. It is
designed based on the foundation of BMW X5 and is certainly suitable for those men
who want to show off to support their work. Moreover, for men who want to take
care of their families, Vinfast car is certainly one of their best choices because it
also has a 7- seat car for large families which is very comfortable with all the
amenities.

3.4 Behavioural
According to the latest Deloitte poll, 64% of Vietnamese respondents perceived
decreased gasoline prices to be the most important factor influencing their choice to
purchase an electric vehicle (EV). Furthermore, personal health concerns influence
Vietnamese customers' decision to purchase electric vehicles (54% of respondents)
(Business Forum Magazine, 2022). Up to 33% of Vietnamese customers are
interested in purchasing an electric vehicle (EV) as their next vehicle, highlighting the
country's tremendous potential to accelerate automobile electrification (VietNamNet
News, 2018). If the price of electricity becomes as high as the price of fossil fuels,
which the number of Vietnamese respondents accounts for the highest percentage
(71%) in Southeast Asia (where the average proportion is 53%), regional consumers
will reconsider buying electric cars (Hanoi Times, 2022).Lowering the cost of electric
vehicles might encourage more people to consider them (KIS, 2018). According to a
new survey of a reputable cars, motorcycle forum, 99.4% of consumers over the age
of 25 have ever heard of electric cars, while 82% care about and have discovered
this green aspect, and more than 46% plan to buy electric cars in the next 12 months
(European Climate Pact, 2021). Travel lengths and the absence of public charging
infrastructure continue to be obstacles for Vietnamese and Southeast Asian
customers to utilise electric automobiles (Business Forum Magazine, 2022).
*Market share:
VinFast falls 2 spots into 9th position with 358 (-83.0%) (Carlo, 2023). The birth of a
local manufacturer – VinFast – fully dedicated to the electric vehicles (both 4 and 2
wheelers) is a stimulus for the traditional manufacturers controlling the market
(Japanese and Koreans) and the incentives for EVs from the government will help to
boost the electrification process, which is seen faster in Vietnam than in the rest of
the region (Carlo, 2023)

4. Positioning
The research team conducted a survey of 100 people to measure customers'
recognition with 3 brands and their purchase intention with electric vehicle products
of those three car brands. Thereby, the research team has produced the below
perceptual map.

Through the above perceptual map, it can be seen that VinFast is gaining a lot of
competitive advantage in both axes, Brand awareness and Purchase Intention.
VinFast is highly appreciated. Besides VinFast, the other two competitors are
somewhat weaker when both Brand awareness and Purchase Intention variables are
quite low.

2. Competitors Analysis:
The research team analyses two competitors to determine Vinfast company's
advantages and disadvantages compared to each competitor. ( see Appendix D )
Despite capturing the attention of Vietnamese automakers, VinFast’s market share is
still lower than that of Toyota. Regarding the EV segment, the number of EVs sold by
Toyota is still relatively small because the design of Toyota has not been appreciated
by customers. Therefore, VinFast still has a competitive advantage over Toyota in
the EV segment. While Toyota and Honda are facing frequent encounters of design
and engineering problems with a shortage of innovation, VinFast's product strategy
is highly appreciated on the variety of products with leading factors.
After analysing the current automobiles industry market, it is clearly pointed out that
the target market which VinFast is aiming at is mostly the Vietnamese. Specifically,
customers VinFast Electric Cars aim at middle- high income customers who are
aged from 25-55 and most of them live in urban areas and the education is
University and above. Besides, people who have a modern lifestyle, pursue luxurious
and elegant models as well as want to take care of their family are also the target
customers of this brand.

III. Microeconomic
Suppliers:
VinFast:
To achieve the goal of producing high-quality cars that meet international standards,
VinFast has focused on finding qualified parts and components suppliers.

Presently, VinFast is working with a number of well-known suppliers in the

production and trading of cars and motorcycles, including: Bosch, the largest
provider of automotive parts and technology worldwide, uses cutting-edge
technologies in the auto sector. putting the most cutting-edge technologies into
production; Schuler AG, a stamping line manufacturer; Eisenmann, an assembly line
manufacturer; Durr AG, a paint line supplier; LG Chem, a member of the LG Group,
a battery manufacturer and supplier; and so on. Moreover, VinFast acquired the
intellectual property rights of BMW, a well-known maker of engines from Germany, a
nation well-known for its mechanical engineering and technology (Vietnamnews,
2017).

At least five Korean businesses are negotiating contracts with VinFast for the
provision of machinery for the production of battery cells in 2021. According to
Thelec, a significant contract has been awarded to Korean producers of battery
manufacturing equipment to provide production machinery to VinFast's 2.5 GWh
battery factory in Vietnam. In order to develop and produce cylinder battery cells,
VinFast is now constructing two 200 PPM production lines in Hai Phong City.

Toyota:
Toyota has aggressively sought out and worked with numerous recognized parts and
accessory suppliers around the world, particularly in the United States, to achieve
the aim of delivering high-quality cars that match international standards.
Currently, the brand is working with a number of well-known manufacturers and
traders in the automotive sector, such as: Tesla, a supplier of automobile powertrain
systems; Bridgestone; Cypress Semiconductor; Fuel Total Systems Kentucky
Corporation; OPTICS USA; and tires from Toyota's Avalon WinFast series and so on
(LIOUDIS, 2021). Thanks to the enthusiastic support from the above companies,
Toyota's ability to produce and supply products has increased significantly.

Honda:
Honda recognized 54 North American suppliers in 2021 for their exceptional work in
providing the company with parts and materials. For helping Honda with its mass-
produced components and materials as well as service parts that meet consumers'
demands after they buy a Honda or Acura product, suppliers have been recognized
with honours (Hondanews, 2022). ACM Georgia LLC, a company that deals in car
parts and components, and East Penn Manufacturing of Lyons Station are a few
well-known companies that might be highlighted.
For this reason, Honda's capacity to create and supply goods has greatly increased
as a result of the fervent support from the aforementioned businesses.

Substitution:
There are many pieces of evidence showing that the Vietnamese still enjoy using
motorbikes more than cars. According to the report of the Vietnam Automobile
Manufacturers Association (VAMA), the number of sold passenger automobiles
decreased 14.25% from the same time the previous year in the fourth quarter of
2022 in Vietnam. December 2022 had the lowest sales volume due to a decline in
income and unfavourable export and import conditions. It is predicted that the total
number of cars sold this year will drop by 17.5%, compared to 2022 (Đình, 2023).
While sales of VAMM members after 12 months of 2022 reached more than 3 million
vehicles, an increase of 20.49% compared to sales figures in the same period a year
earlier. This is the fifth time within 7 years that the Vietnamese motorcycle market
has surpassed the sales milestone of 3 million vehicles (Lâm, 2023). Vietnamese
people have chosen motorbikes since ancient times since they prefer to live in
individual homes rather than apartments, making it difficult to have space for a car.
Also, it is rather expensive to park a car in a city area, and Vietnam is regarded as
having subpar urban planning and infrastructure in general (VnExpress, 2020). With
these examples, cars, specifically, electric cars are proven to be substituted by
motorbikes.
Moreover, an electric car can be substituted by a diesel car for many reasons. IHS
Market estimates that 47% of new car sales in the Old Continent in 2019 were diesel
vehicles. Electric vehicles are only truly clean when the production of electricity
switches to cutting-edge technologies like solar power, wind power, or natural gas.
Despite manufacturers' efforts to cover the network of power stations and other
supporting infrastructure, there is a dearth of charging infrastructure for electric
vehicles (Linh, 2020). Additionally, The majority of contemporary electric automobiles
can travel the same distance from a full tank to empty on a single charge. A typical
gasoline vehicle can travel 482 km on a full tank, whereas an electric vehicle may
travel 200–490 km on a single charge. However, an electric automobile takes far
longer to fully charge than a standard car to refuel (THAI HUNG, 2022). Overall, a
diesel car could substitute an electric car with some of its outstanding aspects.

Criterias affect demand and supply curve:

Gas price: The increase in gasoline, the increase in the price of gasoline cars has
had a great impact on consumer psychology, along with that, many electric car
models are also eye-catching and equipped with many advanced technologies, so
consumers are tending to The shift towards electric motorbikes makes the electric
motorbike market more bustling (Nam, 2022).

Government subsidy (tax) policy: Changes in the economy also affect the use of
electric vehicles in different ways. To stimulate demand for electric car production, a
number of preferential tax policies were approved by the National Assembly,
including reducing the excise tax on electric cars.
Accordingly, with battery electric cars with 9 seats or less, the special consumption
tax rate of 3% will be applied from March 1, 2022 to the end of February 28, 2027;
from 1 March 2027 is 11%. In addition, for other electric cars, which carry 9 seats or
less, the excise tax rate is 15%, from 10 to under 16 seats is 10%, from 16 to 24
seats is 5%, the type that both carries people and goods is 10% (Tra, 2023).
Not only that, battery-powered electric cars have the first registration fee of 0% within
3 years, applied from March 1, 2023. In the next 2 years, this fee will be equal to
50% of that of petrol and diesel cars with the same number of seats (Anh, 2023).
The government's active tax support for electric vehicles mentioned above is a
positive signal for the strong growth of demand for this product line.

GDP: The analysis demonstrates that consumer uptake of electric cars is directly
linked to a country’s GDP per capita, indicating that affordability remains a major
issue. For example, a market share of more than 15% for electric cars is only found
in richer countries in Northern Europe with an average GDP of over €46,000
(VCCorp.vn, 2021). Specifically, in Vietnam, GDP per capita is still too low for people
to own four-wheeled vehicles, not to mention electric cars which explain that
presently, only VinFast is engaged in the manufacturing and assembling of electric
vehicles in Vietnam. Nowadays, electrified vehicles are not particularly common in
Vietnam (ACEA, 2021). In conclusion, the income of the citizens has a huge impact
on the demand and supply of the electric car industry.

IV. Problem identification

VinFast has been handing over electric cars using Lithium - ion batteries and LFP
(Lithium Ferrous Phosphate) batteries. These are two common types of batteries
that are applied on most popular electric cars thanks to their advantages of durable
life, advanced technology, and strong performance. VinFast has applied Lithium-ion
and LFP batteries on VF of Vietnam's first smart electric cars, bringing outstanding
advantages such as: For a distance of about 285 km after a full NEDC charge,
charging time fluctuates about 8 hours; the fast charging feature at VinFast's
charging stations allows the car to travel about 180km with only about 18 minutes of
charging; IP67 waterproof standard makes the car capable of wading in water up to
1m for 30 minutes; stable operation under various temperature conditions. As a
result, the VinFast electric car is researched to be suitable for all conditions of
moving and charging outdoor batteries in Vietnam. Lithium batteries have a long life.
Based on the frequency and distance travelled, the average life of the battery is
usually over 8 years, even lasting 10 - 12 years (VinFast, 2021)

However, after researching, the research team found that besides the outstanding
advantages of the Lithium battery line, it currently still has certain limitations.
Because of those limitations, it has created problems for VinFast electric cars. The
most prominent issue here we want to mention is that the VinFast battery line affects
the range of human movement.

The research team gave a specific example with the VinFast e34 line. The fully
designed charging capacity of the 100% new car is 42kWh and the advertising
vehicle has travelled 285 km. In fact, with this 42kWh fully charged capacity, the
Autobikes Vietnam channel on Youtube has tested the VF e34 car with only 241 km
(although the car has not used heating or air conditioning when the difference in
outdoor temperature and comfortable temperature in a big car). So when the fully
charged capacity of the battery drops to 29.5kWh, equivalent to 70% of the original
42kWh, the car will actually only go 169 km. It is easy to see that customers have to
accept this without complaining when they have to spend money to buy a car that
claims to have travelled 285 km but in fact the car has only run 169 km and they still
have to consider it. is a normal thing. It can be seen that the lower the battery, the
more the vehicle's range will be affected.

V. The new Innovation & Target market profile

1. About the LABs
The successful development of an air battery (Lithium Air) by IBM (USA) in 2012 was
regarded as a significant turning point for the battery manufacturing industry (Caleb
Garling, 2012).
With the help of a carbon nanostructure known as the Catot, lithium air batteries
capture oxygen from the air and store it in an angstrom-sized space (equal to
0.00000000001m) (Harry Hoster, 2015).
While weighing only a fifth as much as a Li-ion battery, the air battery can deliver
enough electricity to keep the vehicle at an 800 km range. The Lithium Air air
battery's battery can withstand up to 500 charges, or 320,000 kilometres. On
conventional batteries, this quantity is only up to 25 charges. 10,000 mAh per gram
of cathode material is also a capability of the Li-air battery.

1.1 Outstanding points:

Compared to the Lithium ion battery, LABs are strongly dominant based on these
advantages. Firstly, during the process of charging and discharging, Lithium ions and
oxygen combine to form the inorganic molecule lithium peroxide (Li2O2), which is
what produces electricity when the battery is drained. When plugged in to charge,
lithium ions return to the negative electrode and oxygen is released back into the
atmosphere. This process helps to save energy and be eco-friendly compared to the
Lithium ion technology (VinFast, 2021). Besides, it is possible to optimise the
battery's size and weight in order to lessen the environmental impact of battery
waste.
Secondly, due to the fact that much of the Lithium ion battery's volume and bulk are
devoted to components that do not help transfer charges between the electrodes,
the types of energy densities that these technologies may achieve are limited.
However, a lithium-air battery with a lithium metal electrode on one and a lithium air
electrode on the other which is based on Li2O production has the potential to
produce energy density that is on par with that of gasoline. Beyond lithium-ion, it is
predicted to have the highest energy density of any battery technology under
consideration ((John Timmer, 2023)
Last but not least, the life of a Li-air battery is five times longer than that of a Li-ion
battery. Moreover, according to some metrics, the battery performs admirably for
more than 1,000 charge/discharge cycles (Song Li, 2020).

1.2 How does it work and its possibility to apply:

1.2.1 How does it work:
The main new component is a solid electrolyte instead of the usual liquid
variety being used in the past that would prevent from overheating and
 catching fire. Lithium moves from air-based Cathode (+) that consists of O2
through the solid ceramic polymer electrolyte (CPE) to lithium metal Anode (-)
where storing CO2 when charging and vice versa (see appendix E).
This new solid electrolyte is composed of a ceramic polymer material made
from relatively inexpensive elements in nanoparticle form (Maisch, 2023). The
new composite electrolyte is based on Li10GeP2S12 nanoparticles
embedded in a modified polyethylene oxide polymer matrix (Maisch, 2023).
This enables chemical reactions that produce lithium oxide (Li2O) on
discharge. In the new design, the four-electron reaction is enabled by a mixed
ion-electron-conducting discharge product and its interface with the air
(Science News, 2023). It also operates with oxygen supplied by air from the
surrounding environment (Science News, 2023). The capability to run with air
avoids the need for oxygen tanks to operate a problem with earlier battery
designs (Science News, 2023) -> rather than using oxygen tanks, this battery
simply uses that air.
The key technique here is transmission electron microscopy (TEM) of the
discharge products on the Cathode surface(Kondori et al., 2023, p. 34). In a
glove box filled with argon, the cells were dismantled. The cathode electrodes
were then thoroughly dried under vacuum and promptly cleaned with dimethyl
carbonate (DMC). Following that, the sample was removed from the electrode
and spread out on the TEM grid. Using an Argonne chromatic aberration-
corrected TEM (a FEI Titan 80-300 ST with an image aberration corrector to
correct both spherical and chromatic aberrations) at an accelerating voltage of
200 kV, low-dose high-resolution transmission electron microscopy (HR-TEM)
characterizations were carried out.
1.2.2 Possibility:
The battery architecture has the ability to store one kilowatt-hour per kilogram
or more, which is four times the energy density of lithium ion technology. At
such a rate, it would be appropriate for converting heavy-duty vehicles, such
as airplanes, trains, and submarines, to electric (Harmon, 2023). Over 1,000
charge and discharge cycles, the test cell proved stability (Maisch, 2023). The
chemical processes for lithium superoxide (LiO2) or peroxide (Li2O2) utilize
just 1/2 of the electrons stored per oxygen molecule, whereas lithium oxide
(Li2O) involves 4 electrons (Green Car Congress, 2023). More electrons
trapped, according to Argonne scientist Rachid Amine, equals higher energy
density. At ambient temperature, this is the first lithium battery to achieve a
four electron reaction.
Theoretically, a lithium-air battery based on Li2O production is capable of
producing an energy density similar to that of gasoline (Hanley, 2023).
Additionally, as solid-state electrolyte accounts for around 75% of the overall
energy density, there is a chance to reduce thickness without losing
performance, resulting in a greater energy density (Cuthrell, 2023). By 2025,
several analysts predict that the world's lithium supply will be strained due to a
projected tripling of battery demand (Redactoramexico, 2023).

2. One specific target market

For this new technological battery, the target customers that VinFast aims to achieve
are the same as the old ones. However, the segmentation is somewhat different in
the demographic. Due to the lower price of the battery, VinFast wants to enlarge its
market to low and middle-income consumers rather than the higher ones.
VI. The new marketing mix strategy: Develop a marketing mix strategy to launch
your allocated brand’s new innovation in the Vietnamese marketplace.
Hints: Apply theoretical/conceptual understanding from chapters 4 & 5.
Analyse and justify your application of the marketing mix elements and tactics
used to create the desired positioning (a revised perceptual map would be
very useful) for your new innovation and for its one (1) target market (see
Task 5). Remember, marketing is about focusing on the target market and not
only on your innovation - your marketing strategy should highlight this.
4Ps cho PIN
● Product: (Linh)
Services:

- Customer service 24/7 : Based on VinFast's current 24/7, mobile charging

policy: 15 minutes of charging: 50,000 VND/time, allowing customers to
continue travelling distances up to 40 km for VF e34 and 30 km for VF e34.
VF car 8. The policy of “3 without” which includes no depreciation costs, no
financial costs, no profit, in order to provide maximum support to the pioneer
customers using electric cars in Vietnam. For Mobile Service, the cost for
repair and replacement parts is equivalent to the fee at VinFast's service
workshops nationwide. Customers do not have to pay any additional fees.
(Additional: for new batteries used within 1-2 months, if damaged, they will be
renewed for free. This is followed by the warranty policy). Thus, customers
using VinFast electric vehicles in Vietnam can now be completely assured
that they will always be served with the utmost care wherever they are.``

- Exchanging old battery for the new one: Whenever the battery runs out of

its life, customers could exchange it for the new one. By doing so, customers

will own a totally new battery at a fraction of the cost compared to buying a

new one. Besides, customers can be completely secure during using process

because the rental battery will be replaced/repaired/maintained free of charge

 in the case of a damaged battery/manufacturer's fault. Moreover, customers

who intend to buy new batteries will get an attractive deal based on the

current status of the batteries they exchange.

● Price: (Khánh)
Our price strategy for this new battery will be developed based on some of the most
successful strategies that VinFast has done in the past.

We begin by employing the skimming-price approach. It is conceivable to establish a

high price during the first few months of the new battery's release as many tech
companies do. Customers have little choice but to use VinFast's battery because
there are currently few, if any, competitors who can make and deliver this
revolutionary battery. Later, when some rival businesses began manufacturing this
battery, VinFast would reduce the price to compete with them and boost sales by
going for middle-class clients.

Then, in product mix pricing strategies, we based on some existing pricing policies of
VinFast to apply for this new product launch. We will apply product bundle pricing
and captive product pricing. Early VinFast vehicles were successful in part due to the
product bundle pricing strategy (Vy, 2021). So, we shall implement the
corresponding policy for this new battery. Modifications from the previous policy:
When you shop at Winmart, you'll get a discount coupon for your bill when you
purchase a new kind of battery. The requirement for a battery while purchasing an
electric vehicle is only a normal, captive product pricing strategy. Hence, based on
VinFast's current stance. In order for customers to try and select the battery they
believe is best and most appropriate, we continue to apply a policy of buying or
renting batteries based on their needs.

Next, we choose promotional pricing during price adjustment, which entails offering
clients longer warranties and free maintenance. This policy addresses damage that
may be repaired or replaced and that results from software, materials, or production-
process errors. Owners of vehicles must confirm that they have complied with
VinFast's usage guidelines and suggestions. All VinFast electric vehicle models are
covered by this battery warranty coverage at all Service Workshops and officially
recognized distributors.

● Promotion:
The research team proposes ways to promote the recognition of new innovations in
batteries through the 2 following ways: First, in advertising: The brand can install
large billboards to propagate the new benefits of this type of battery such as this
battery has helped the car travel longer distances, faster speeds, etc. Second, in
public relations: The brand can organise events and exhibitions to introduce the
outstanding features of the new battery product line in motor shows and participate
in sponsoring events such as Technological and Environmental Events to increase
brand awareness.
● Place:
In place, we choose both direct and indirect distribution channels. First, about
the direct channel, customers come directly to the showroom to experience
the product and make purchase decisions. Or they can call the hotline to
order: customers call the hotline for consulting and choose to buy online or
can go straight-forward to the showroom. About indirect channels, VinFast will
distribute products to retailers, then the products will be provided to customers
by the retailers. This will work when VinFast can’t open the showroom at that
place, for instance in a remote area.

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Appendix
Appendix A

Innovation Product Incremental: Do what we do Radical: Do something

type line but better different

Products Electric - Electric cars use - Auto contact feature

cars electric motors, when having problems
transmission systems (ECCall). This
with simple structures, application can
fewer components automatically contact
than cars using the nearest emergency
internal combustion services when the
engines. Therefore, vehicle has a problem,
with the same size, shortening the search
some electric cars and rescue time, and
have more spacious minimising the risk of
and airy space than unintended
traditional petrol cars consequences
(VinFast, 2022) (VinFast, 2022)
- Electric cars have an - The search and
operating efficiency of navigation feature on
nearly 90%, greater the car service
than gasoline cars workshop helps users
(VinFast, 2022) find the nearest
VinFast car repair and

Batteries For electric cars, the range
depends on battery power.
The time to fully charge the
battery is usually slower than
the refuelling time. The travel
range of petrol and diesel
cars is less affected because
users can refuel at any time
thanks to a dense system of
gas stations. To improve the
range of travel for electric
vehicles, in Vietnam, VinFast
has researched and applied
advanced battery
manufacturing technology,
helping to travel longer
distances to optimise the
user experience. In
particular, VinFast also built
a system of charging
stations covering the whole
country, including a fast
charging pole that allows the
car to charge the battery in a
short time over a long
distance, meeting the needs
of long-distance travel
customers (VinFast, 2022)
care center. This
feature is displayed on
the central display or
through the phone app.
Users only need to
enter the area they
want to find the service
workshop (city, district,
district ...) directly, the
system will process the
information and provide
the fastest location
(VinFast, 2022)
VinFast has signed a
memorandum of
understanding on strategic
cooperation with ProLogium to
establish a joint venture to
manufacture solid-state
batteries and is allowed to use
its patents to produce solid-
state batteries. In Vietnam.
This is considered one of the
technologies VinFast invests
strategically to independently
produce batteries for electric
vehicles, and develop VinFast
technology in general, aiming
to become a global smart
electric car company in the
future (Vietnamnews, 2022)
Appendix B

Source: VinFast

Appendix C
Appendix B

Strength Weakness
- Cooperating with famous - Warranty and maintenance
automobile engineering and costs/services are not
manufacturing companies in satisfied customers: Since the
the world company has just entered the
- Financial resources: market, the number of
Vingroup itself is a strong dealers, as well as the
financial group, as a member popularity of VinFast's repair
of this group, VinFast has parts, is a weakness
great financial support. compared to other
- VinFast's product strategy competitors.
focuses on the variety of - Marketing and PR capabilities
products that are continuously for products are not a strong
launched ability of VinFast.
- Each VinFast product
launched to the market is
 equipped with leading factors
such as: Leading
manufacturing technology,
leading manufacturing
technology and leading design

Opportunities
- Creating conditions enabling
VinFast to maintain
dependable supply chain while
enhancing circulation and
manufacturing procedures.
- Encouraging consumer
demand for purchases, which
will aid the business in
boosting both sales and
revenue. Provide prerequisites
for the business to bring in
foreign raw resources.
- Because of their awareness of
social segregation, consumers
are more likely to use private
vehicles than public
transportation like buses and
trams. VinFast will be able to
increase both car sales and
profit as a result. VinFast's
"made in Vietnam" car has
given the company legitimacy in
the eyes of Vietnamese
consumers. Develop a sizable
pool of top-notch human
resources for VinFast.
- Establishing conditions that will
allow VinFast to expand its in-
person and online sales
strategies, making it simpler for
clients to contact them and
boosting revenue. It presents a
chance to promote goods more
simply in order to raise
consumer knowledge of the
brand. Also, it is an opportunity
Threats
- Businesses must spend a lot of
a money on the manufacturing
process. Not only does this
result in fewer customers, but it
also lowers revenue for the
business.
- Modern equipment must be
imported from abroad in order
to make cars, making it difficult
for VinFast to do so and
necessitating a substantial
financial expenditure.
- VinFast needs to concentrate
on cutting back on expensive
manufacturing-related carbon
emissions.
- Before launching, VinFast must
invest a significant amount of
time and money in testing.
VinFast's sales will decrease
as fewer people buy gas-
powered cars.
 to purchase and implement new
technology in the company's
products to keep up with rivals.
- In particular, VinFast has to
diversify its electric car range.
- Making it simpler for VinFast to
import components, which will
lower production costs and
boost revenue. There is a
chance to introduce an electric
vehicle.

Appendix D

Toyota Honda

Target Middle income category Middle-income group

audience/market

Segmentation 1. Younger-to-older middle 1. Both men and women aged from

1. Demographic
2. Geographic age consumers, in the 30 18-34.
3. Behavioural to 50 years bracket 2. U.S is the most ambitious
4. Psychographic (Start.io, 2022). market that Honda aims to gain.
2. Global, with Japan and Besides, there are some
North America being the countries where this brand has
strongest markets. built the whole production such
3. The Toyota audience is as: Canada, Mexico, Brazil,
more influenced by the China, Thailand, India and
product attributes. Vietnam.
4. Toyota customers place a 3. people who are searching for a
high value on efficiency, car that suits their budget and
reliability, quality and offers them value for their
the Japanese innovation money (Hitech Bhasin, 2018).
the brand is famous for.
In the EV segment, fuel
economy and high resale
value appeal to the Toyota
target market. Comfort,
safety and utility are top
priorities, while style and
luxury are less important.
Market share - Toyota at 3,023 (-52.5%),
stands at the second place
Vietnamese Vehicle
Market in January 2023
(Carlo, 2023).
- By October, Toyota had
only sold around 14,000
EVs globally in 2022.
- An annualised production
rate of less than 20,000.
This means EVs make up
just 0.2% of Toyota’s total
production. A staggeringly
low proportion considering
the rapid growth in EV
market share globally
(Bleakley, 2023).
SWOT 1. - Stable selling price in the
face of the unstable
1. Strength
economic situation and
2. Weakness
rising inflation, which are
3. Opportunities
important factors that help
4. Threats
The most recent data from Honda
Vietnam (HVN) show that the
company's motorbikes held
approximately 80% of the local
market share in 2021.
- Honda City sold 9,745 units, an
increase of 74.4 percent on-
year, accounting for 44.9% of
HVN's total vehicle sales
reported in 2020. HVN saw a
shift in its automotive business
results of 11.1% year over year
with 21,698 units.
1. - Various products with
competitive prices (Honda,
2023).
- High brand awareness due to
its strong market share in Asia
 Toyota create a (Special Feature, 2010).
competitive advantage. - One of the biggest automobile
- A strong brand in terms of manufacturers in the world
quality, quantity of (Global data, 2021).
products, environmentally 2. -A successive decline in R&D
friendly products and a investment resulted in shortage
large customer base in of innovation (Macrotrend,
many developing 2022).
countries.
- Most of the revenue comes
from the North America market
2. - Many experts consider which makes Honda sensitive to
the design of Toyota car any changes in this area (Trefis
products a bit rough, not Team, 2018).
as fashionable as other 3. - Low fuel price is predicted
competitors. which would increase the
- Although Toyota sets demand of automobiles (Fitri
standards for quality Wulandari, 2023).
control, it frequently - Asia Pacific and North America
encounters design and are the most potential markets
engineering problems. for automobiles in the later years
(DUBLIN, 2020).
3. - Faced with the escalating 4. - The core manufacturer is at
world gasoline price, risk of being damaged due to
customers have a need to natural disaster (BLOMBERG,
use fuel-saving products 2022).
or clean energy sources → - Japanese currency is facing a
Toyota is pursuing the significant decline which is much
project of building gas and difficult for Honda because it
hydrogen powered car by generates more than 88% of its
applying advanced revenue from outside of Japan,
achievements and thus in order to compute its
techniques and the results revenues and bring the earnings
of R&D home, the corporation must
convert foreign currencies to
Japanese Yen (Eric Margolis,
4. - Improving product
2022).
quality, keeping prices
stable to compete with
major car manufacturers in
the world.
 - The competition between car
brands is increasing due to
many new car models
launched and the price
policy accompanied by
changes from the exterior
appearance to the interior
of the car manufacturers.

Appendix E

Source: (Shidong, 2020)