Vietnam Airlines International Strategy Analysis

This assignment requires an in-depth analysis of Vietnam Airlines' international strategy. It involves conducting market research on the airline's competitors, such as Vietjet Air, analyzing their strengths and weaknesses, and comparing them to Vietnam Airlines' own strategies. The report should also include an evaluation of the airline's financial performance, customer reviews, and industry trends. Additionally, it is recommended to include a comparison of the 7Ps of marketing for Vietnam Airlines with those of its competitors.

Assignment Marketing
Table of Contents
Part A: Compare how Vietnam Airlines and VietjJet Air use the various elements of the 7Ps
marketing mix....................................................................................................................4
SERVICES or PRODUCTION:.............................................................................................4
PRICE:.............................................................................................................................5
PROMOTIONS/COMMUNICATION:.................................................................................5
DISTRIBUTION or PLACE:.................................................................................................6
PHYSICAL EVIDENCES:.....................................................................................................8
PROCESS:........................................................................................................................8
PEOPLE:..........................................................................................................................8
Part B: Produce a marketing plan to meet marketing goals and objectives. The marketing
plan should include all elements of 7Ps marketing mix, with an action plan and measures
for monitoring and evaluating progress and meeting of goals and objectives.....................9
EXECUTIVE SUMMARY:...................................................................................................9
SITUATION ANALYSIS:...................................................................................................10
1. Marketing Analysis...........................................................................................................10
MARKETING OBJECTIVE:...............................................................................................20
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MARKETING STRATEGY:................................................................................................20
1. Marketing Segmentation and targeting........................................................................20
2. Marketing Proportioning and Differentiation..............................................................21
MARKETING MIX:..........................................................................................................22
1. Product...............................................................................................................................22
2. Price....................................................................................................................................22
3. Place...................................................................................................................................23
4. Promotion..........................................................................................................................24
BUDGETING:.................................................................................................................24
1. Flight Operating Budget..................................................................................................24
2. Marketing Budget.............................................................................................................26
3. Training Budget.................................................................................................................27
4. In-flight and airport services...........................................................................................28
IMPLEMENTATION AND CONTROL:...............................................................................29
Reference.........................................................................................................................30
Part A: Compare how Vietnam Airlines and VietjJet Air use the various elements of the 7Ps
marketing mix.
Marketing mix is the process of designing and integrating different marketing elements to
ensure the achievement of business goals (Chand, n.d.). According to Friesner (2013), the
marketing mix is also called 4Ps (prices, place, products and promotions) and 7Ps (process,
people and physical evidence). This part will be comparing the marketing mix between two
Vietnamese airlines, namely Vietnam Airlines and VietJet Air.
SERVICES or PRODUCTION:
Understanding the important role of products in the field of air transport business,
especially in the context of global competition, Vietnam Airlines and VietJet Air have
constantly improved the quality of their services. Both airlines offer services such as seat
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selection, in-flight meal, disability assistance, and many other services. The staff of both
Vietnam Airlines and VietJet AIr are well-trained and professional (Travelus.vn, n.d.).
However, VJA is a low cost airline so they will focus on souvenir items such as cool flying
models, handbags, toys, etc., as a way to increase revenue as well as show that VJA is
responsible to customers. VietJet Air is a low-cost carrier, therefore food and beverage
catering (canned snacks) on planes such as noodles, pho, porridge for VND 30,000 / bowl.
VJA’s late flight situation is also quite good when the rate of on-time flights reaches 67% (VE
MÁY BAY TRUNG THIÊN, n.d.).
About Vietnam Airline, they do not provide any physical products that link customers to
them. In addition to providing fights for passengers, they also have service called “Freight
Vietnam Airlines Cargo”, which provides freight services. For example, if someone wants to
buy something from another, Vietnam Airlines can also act as a carrier, transporting goods
to that customers. Food served on Vietnam Airlines are more diversified with full
sandwiches (such as tuna, mixed, sausage rolls for VND 35,000 / piece) and canned foods.
The rate of on-time flights of VNA is larger than that of VJA, with 90%.
PRICE:
For prices, VNA charges customer higher than VJA. For example, VNA’s fare from Hanoi to
Ho Chi Minh City is VND 3,320,000 while VJA’s fare is VND 2,726,000 (Google.com, n.d.).
This reflects that Vietnam Airlines is a more advanced airline than VietJet Air, targeting a
higher income group while VietJet targets a lower income, most Vietnamese. In addition to
VietJet Air’s low price, Vietjet also offers promotional prices, in which tickets are cheaper in
a short period of time. Vietjet Air’s price strategy, has achieved business goals.
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Although Vietnam Airline has such a high price, it focuses on secondary products (including
all services provided before the fight, on the plane, after landing), collecting feedback from
customers to make the perfect product they provide.
PROMOTIONS/COMMUNICATION:
Both Vietnam Airlines and VietJet Air use some common promotion methods such as
advertising on TV, Internet, fairs, etc. Along with that are promotions for customers for
customers on special occasions such as Tet holiday, combined with direct marketing to
promote brands, products and services to customers.
However, the first difference between VNA and VJA is PR. As an official carrier, Vietnam
Airlines sponsors national, cultural, social, educational, sports events and community
supports. With national events, VNA participates in sponsoring most major national events
such as the APEC Summit, Women’s Summit, etc., support the overseas Vietnamese
community. In addition, VNA also strengthened coordination in promoting tourism in
collaboration with the Vietnam National Administration of Tourism to build a TV show
“Hidden Beauty”, “SVietnam” to introduce cultural features and highlights, Vietnamese
society, country and people (Xemtailieu.com, 2015).
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About VietJet Air, it has many impressive PR skills. In 2013, VJA invited Ngoc Trinh with a hot
model group and bikini to pose on the plane, making it famous. With the new 2018
calendar, VietJet Air still pursues the images of bikini models. Latest, VJA shocked the
community in bringing models to Vietnam flight. (Wattpad.com, n.d.).
DISTRIBUTION or PLACE:
Currently, Vietnam Airline and VietJet Air are applying the distribution method through: the
traditional channel is the box office of the company and its agents, new online channels.
However, Vietnam Airline expanded its network more than VietJet Air. Vietnam Airline can
take its passengers around the world like America, Asia, Europe, Africa, etc. In addition, the
wide network of accessible locations worldwide provided by Vietnam Airline has fulfilled
their business goals, to make VNA more accessible to people and bring them to more places.
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However, because VietJet Air is still a young infant company of an airline company and
because of its low cost core, VJA is only open to Asian and domestic (Vietjetair.com, 2018).
Therefore, the only option to fly to places other than Asia is through Vietnam Airline
PHYSICAL EVIDENCES:
When flying Vietnam Airlines or VietJet Air, their customers are presented with something
that can represent the physical evidence of the service, for example, spacious seating with
comfortable foot room, flight magazine, flight scent, in flight blankets and meals are
provided. Furthermore, both airlines have luxurious lounges for VIP passengers, which offer
a variety of different foods and drinks, free WIFI, a wide variety of newspaper and
magazines, beautifully decorated TVs and a wide screen.
PROCESS:
Vietnam Airlines and VietJet Air bring value to their customers through many different ways,
called process in 7Ps. Both airlines have common processes such as booking process, check-
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in process, etc. However, Vietnam Airlines is a high-end airline, so they provide in-flight
entertainment systems such as movies, games, etc. For VietJet Air, although an economic
airline, does not provide any of these.
PEOPLE:
The people factor in these two airlines has some common things that all airlines need to
have are: aerial parts (pilots and flight attendants) and underground parts. The aerial parts
must ensure safe and professional flight operation to meet customer requirements. All
pilots and flight attendants are trained to meet international standards and safety.
As for the underground team, it is necessary to promote its services to customer likes
buying air tickets etc. This team recruit people having good languages and good skills to
promote brands to customers.
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Part B: Produce a marketing plan to meet marketing goals and objectives. The marketing
plan should include all elements of 7Ps marketing mix, with an action plan and measures
for monitoring and evaluating progress and meeting of goals and objectives.
EXECUTIVE SUMMARY:
Vietnam Airlines is a civilian airline first established in 1956 by Vietnamese government,
with the name Vietnam Civil Aviation. This is a young and creative airline with Vietnamese
cultural brand. Despite many fluctuations, Vietnam Airlines (VNA) has reached out to the
world market and become a well-known, trusted and chosen brand (Vietnamairlines.com,
2018).
According to (Vietnamairlines.com, 2018), VNA has successfully implemented over 141
thousand flights with nearly 22 million passengers safely transported. The consolidated
revenue of the Corporation reached a record high of VND 98,950 billion, an increase of 1.9%
compared to the plan. On the basis of adjusting and balancing resources effectively,
Vietnam Airlines achieved pre-tax profit of VND 3,312 billion, exceeding the plan by 36.8%;
in which the parent company contributed VND 73,227 billion in revenue and VND 2,418
billion in pre-tax profit, exceeding 23.4% of the target set by the General Meeting of
Shareholders.
The airline’s feet continued to be expanded with the addition of 2 large-size Airbus A350-
900 and 3 new generation narrow-size Airbus A321NEO aircraft – superior aircraft with fuel-
saving engines, helping reduce environmental emissions and increase exploitation
efficiency. VNA has cooperated with many domestic and international airlines such as Delta
Airlines, Aeroflot, Air France, etc. In addition, they have many subsidiaries and affiliates such
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as Vietnam Air Mechanical Company (VAECO) and Tan Son Nhat Cargo Services and
Forwarding Company. (Vietnamairlines.com, 2018).
Vietnam Airlines will deploy many main marketing strategies to increase brand awareness
and overall market share. Even these marketing strategies will help them gain competitive
advantages over their competitors, especially using 7Ps to achieve business goals.
SITUATION ANALYSIS:
1. Marketing Analysis.
1.1. Market Analysis.
Marketing Analysis Vietnam Airlines
Market Demographics Population size: Any passengers want to fly.
Age: Any.
Income: from $400 to over $2000.
Sex: Male or Female
Social Class: Most are middle class and upper class.
Special Passengers: Politician.
Market Needs 1. Ticket prices decrease slightly.
2. Some customer incentive programs.
3. More discount programs.
4. Improve the quality of online ticket sales channels.
Market Trends 1. Ensure many passengers use VNA’s products and services (Nguyen,
2018).
2. Expand flight routes to different countries (Blueswandaily.com,
2018), and also promote Vietnam to the world.
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3. There are appropriate strategies to compete with other airlines
such as VietJet Air, Jestar, etc. (Travelus.vn, n.d.).
Market Growth Higher demands for flight.
The number of products – services advertised increased.
Macro Environment (Vu, 2015)
Economic
Vietnam Airlines’ cargo transport business is inevitably affected by
fluctuations in the economy, such as GDP growth rate, inflation rate,
level of control and reform. In addition, the situation of scarcity of fuel
sources, the Government fulfilling the commitments of AFTA and the
commitment of joining WTO, will directly affect the source of goods
traded in the market, which means that it will impact to Vietnam
Airlines’ freight transport.
Technology
Vietnam Airlines’ feet is always upgraded with new aviation
technology, mainly using the technology of famous aircraft
manufacturers such as AIRBUS, BOEING, etc., combined with structural
improvements, fuselage, engines, control systems to improve the
operational efficiency and range of aircraft.
The development of science and technology has created new
generations of aircraft with better specifications to meet the
requirements of civil air transport capacity is larger, noise level is
lower, fuel economy is more, etc. That is the generation of Boeing 777,
Boeing 767, etc., which VNA is operating. This is one of the important
factors determining the quality, economic efficiency as well as the
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competitive advantage of air transport products.
Environment
The geographical position of Vietnam is quite favorable for the
development of the aviation industry, with its position at the edge of
Southeast Asia, located between the international air route from east
to west, from North to South suitable for to build a network of routes
between the US and Australia with short flights in Southeast Asia and
the interior of Vietnam.
With features on VNA’ route network built on the “axis – nan” model
with high exploitation frequency, good transit service in Hanoi and Ho
Chi Minh city, creating competitive advantages with the channels
transport international goods to / from Indochina, Southeast Asia; step
by step bringing Vietnam into a regional air hub, directly competing
with major transit centers such as Hong Kong, Bangkok and Singapore.
Political - Social
The stability of the political system is one of the factors that greatly
affect the development of a country’s economy as well as the business
strategy of businesses, which is often taken into consideration before
businesses investment decision to expand special markets in the
direction of developing air routes of air transport enterprises.
Vietnam Airlines is one of the companies under the management of the
Government, this is the advantage of being backed by capital, business
protection, special financial policies during difficult periods due to the
effects of terrorism, war and epidemics and fuel prices, etc., currently
hold a monopoly position in Vietnam.
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However, the domestic legal system has been gradually improved,
more transparent and in line with the integration trend (ASEAN, APEC,
WTO, etc.), especially international aviation law to participate in
business. In Vietnam, this will limit the protection of the State for
Vietnam Airlines, but it is also an opportunity for Vietnam Airlines to
re-affirm its position to competitors in the air transport market.
1.2. Competitor Analysis.
1.2.1. Direct and Indirect competitor.
For flight service, if passengers want to fly inland or neighboring Asian
countries, apart from Vietnam Airlines, they can choose VietJet Air,
Jetstar, Bamboo Airway, etc. However, airlines such as VietJet or Bamboo
cannot compete with Vietnam Airline if passengers want to fly to other
countries likes the United States, Europe or Australia. Those with lower
incomes can fly at airlines such as VietJet Air or Jetstar Pacific without
having to fly Vietnam Airlines or Bamboo Airways, to save costs.
In addition, if passengers want to free shipping from one location to
another, in Vietnam there is no alternative airline, and the only and best
option is still to use Vietnam Airline services.
1.2.2. Strengths and Weaknesses of selected competitors.
There are some strengths and weaknesses of VietJet Air, based on (CAPA -
Centre for Aviation, 2017).
Strengths Weaknesses
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- Vietnam has emerged as one of the fastest
growing markets in the world.
- VietJet has quickly gained a significant
market share.
- Low unit cost (cheap prices).
- Strong local brand and distribution.
- Low fare and poor productivity management.
- Weak brand and distribution outside
Vietnam.
- Sell and rent again.
- JV’s strategy.
According to (MBA Skool-Study.Learn.Share., n.d.), Jetstar Pacific has
some strengths and weaknesses.
Strengths Weaknesses
- Widely local and regional presence because
this is one of the top three service
providers.
- Customer guarantee program and price
guarantee.
- Loyal customers due to low prices and
brand reputation.
- Qantas Card of Carrier the safest carrier in
the world.
- High cost in maintenance due to unused
resources and staff.
- Unstable staff – easy to strike due to low
wages.
1.2.3. Positioning.
a. Positioning.
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Vietnam Airlines is positioned as a high quality company and high
price. VietJet Air locates itself as a low-quality airline with very low
prices. Bamboo Airways, a hybrid airline company with have a high
and medium quality company. Jetstar Pacific also has a similar
position in the field of price and low quality.
b. Position mapping.
1.3. Company Analysis.
1.3.1. Mission Statement.
Vietnam Airlines combine the implementation of travel flights and
transporting goods from one place to another. According to (VOV - ĐÀI
TIẾNG NÓI VIỆT NAM, 2018), VNA is constantly changing to capture
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Vietnam Airline
Bamboo Airways
VietJet Air
Jetstar Pacific

passenger demand and change itself to serve passengers, bringing it
closer to the international 5-star standard.
1.3.2. Company Objectives.
a. Survival.
Survival factor is the most important criteria that only Vietnam
Airlines but also other airlines need to ensure for their passengers.
Specifically, VNA has succeeded in building and operating safety
management systems based on safety data for forecasting, identifying
risks, thereby handling and preventing risks in a timely manner (Thời
Báo Ngân Hàng, 2018). Safety management has been continuously
improved, meeting the standards of aviation authorities, associations,
alliances that VNA participates.
According to (Thời Báo Ngân Hàng, 2018), the highlight of the safety
culture of VNA is to promote honesty and transparency, create a
working environment where all employees are always ready to report
errors; no disciplinary measures shall be taken against any employee
when proactively reporting honestly about incidents affecting safety,
errors of negligence.
b. Profit maximization.
Profit maximization is the ability of the company to achieve maximum
profit with low operating costs (BusinessDictionary.com, n.d.). Airline
companies are trying to achieve profit maximization through their
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market share and price strategy. In addition of these factors, these
companies must also minimize costs to achieve maximization.
This is demonstrated when the company surpassed the plan itself,
specifically, VNA’s consolidated revenue exceeded for the first time
more than VND 100,000 billion, estimated at VND 102,000 billion,
consolidated pre-tax profit was estimated at nearly VND 2,800 billion,
up 15% compared (Caa.gov.vn, 2019).
c. Market share leadership.
From the chart, it is clear that Vietnam Airlines has lost its place in
front of VietJet Air since 2011 and no longer leaded the market share.
However, VNA’s domestic market share of download capacity was
59% in 2017, up by 1.2 points compared to 2016, although Jetstar
Pacific directly competes with other low-cost airlines and aims to
increase market share for low-income customers
(Vietnamairlines.com, 2017).
At the present time, VNA needs to be careful with competitors
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namely VietJet Air and most recently is the birth of Bamboo Airway.
Having a large market share is the key to VNA to continue to lead the
Vietnamese market and to make profit, which is consistent with VNA’s
goal of maximization profits.
d. Product quality leadership.
The product quality leadership of Vietnam airline can be achieved
because it is only airline that is considered a high-class airline
company in Vietnam. They have the most modern aircraft fleet in
Vietnam, equipping themselves with the best aircraft in the world.
The overall airport experience is also better than most other airlines
because Vietnam Airlines has a lot of ticketing counters at airports,
good waiting areas for economy class and high quality luxury lounges
for VIPs.
On the flight, their passengers are greeted with a smooth and high
quality experience, if passenger are cold, they are given warm
blankets, in addition, meals and water are always available on every
flight. Passengers are also given headphones to watch movies, or
listen to music, with a variety of movies and music stores. The overall
light and heating on the plane is also very comfortable, there are few
cases of lack of professionalism occurring by the airline or crew on the
flight.
1.4. SWOT analysis. (Bsc.com.vn, n.d.)
Strengths Weaknesses
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- As a national airline, has compassion strong
brand in domestic and CLMV region.
- The only traditional airline in Vietnam;
differentiated domestic products (Grade C,
GLP program).
- The service system is synchronous, diverse,
limited to depend on supply partners.
- Leading market share on direct flight
between Vietnam and Europe; Vietnam –
CLM and inland Vietnam.
- The fleet continues to be renewed with the
addition of A350-900 and B787-9 since
2015 increasing the competitiveness of
resources, leading the development trend
of aircraft technology compared to regional
firms.
- Average revenue at international routes is
not high due to low proportion of high-
income customers.
- Quality of service is still lower than that of
large firms in the region.
- Fixed operating costs remain high.
- Financial capacity, capital is limited.
Opportunities
- Geographical location: located between
Northeast Asia, Southeast Asia, Europe,
South Pacific and China should be the
gateway of the region.
- The rapid growth of the tourism industry,
Vietnam is an attractive investment
destination (in 2012 ranked 11th in the
Threats
- The political and economic situation in the
countries is a volatile Vietnam Airlines
destination.
- Macroeconomic risks still exist: high inflation,
devaluation of the domestic currency, high
fuel prices.
- Intense competition from traditional airlines
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world).
- Population is over 88.7 million and income
is improving. Vietnam GDP is forecasted to
continue to growth with an increase of over
5% / year.
- Vietnam travel / arrival continues to grow
at an average rate of 10% per year
(according to IATA’s forecast).
- Cooperation opportunities for SkyTeam
alliance members.
and large LCCs around the world, especially in
domestic, regional and European markets.
- Airport infrastructure has not kept pace with
the aviation industry’s development
requirements, the number of aircraft parking
at airports based on HAN and SGN is limited.
- Specialized labor Aviation is scarce, especially
pilots, technicians.
MARKETING OBJECTIVE:
Marketing objectives are the goals that businesses set when promoting their products or
services to potential consumers that need to be achieved within a certain time frame
(Mckinney, 2018).
In 2018, Vietnam Airlines has many goals, one of them is to develop and modernize their
fleet in the 2021-2025 timeframe and vision to 2030, based on (Vietnamairlines.com, 2018).
Along with that, on the basis of thorough evaluation of the business environment and
efficient balance of resources, VNA has developed an operational plan with innovations to
improve the quality of 4-star services, aiming at the highest 5-star standard of the world
aviation industry, at the same time meeting the expectations of shareholders. These should
be specific, measurable, achievable, realistic and time framed.
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MARKETING STRATEGY:
1. Marketing Segmentation and targeting.
Marketing Segmentation of Vietnam Airline.
Medium-income customers High class
Describe People with income from $500 to
about $2,000 (Salaryexplorer.com,
n.d.).
People with income over $2,300
(Salaryexplorer.com, n.d.).
Customers’ needs - Good quality flight services.
- Limit any risks or errors from boarding the plane – in flight – at
landing.
- Good customer preference policy.
How they use
services – products?
Customers use products that are
affordable, such as buying goods
at duty-shops or buying cheap or
affordable food and drinks. In
addition, they also book flights
early to save costs. Products on-
flight also do not be luxurious but
comfortable and meet their
requirements.
Customers are not worried about
prices, so they use expensive
products and services, eat at luxury
restaurants. Moreover, they like to
use the flight room as a luxurious
lounge, duty-free shop, etc. The
products on-flight must also be
luxurious, comfortable with high-
class service to meet their
requirements.
How to reach them? Discount programs or cheap
airfare.
Safe and luxurious flight programs.
Price Sensitivity Medium - high Low
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Seat on plane Economy Premium
On-flight service. Normal Luxurious
2. Marketing Proportioning and Differentiation.
Product attributes: high quality, better airport experience and high price.
Benefits: High-end and regular rankings all meet the customer’s requirements,
provide safe and trouble-free flights, and a higher quality flight experience.
Time of use: can be used at any time.
Competitor: Vietnam Airline is currently the only airline in Vietnam to open routes to
Europe, the US and Australia, but in the future, Bamboo Airway will be a competitor
when it will soon open to these areas.
MARKETING MIX:
1. Product.
Vietnam Airline is a service company, not only providing passenger transport services
and transporting goods from one place to another. However, Vietnam Airlines has
partners who produce goods such as making food sets such as forks, plates, straws,
etc (Vietnamairlines.com, 2017). Food in the plane is also invested in a quality way
for customers to be satisfied. The partner has done that is Aviation High-class Plastic
Joint Stock.
2. Price.
Vietnam Airline has the highest fare in Vietnam. In December 2008, the State
abolished the service price framework and the air freight tariff frame changed to
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comply with the market mechanism. This is beneficial for customers on the choice of
services to ensure quality and reasonable prices, when airlines compete on price.
Surely customers will benefit with many cheaper rates (Vu, 2015). Based on the State
ceiling price framework, VNA has built flexible and diversified.
Vietnam airlines’ price policy for domestic market:
Vietnam airlines’ price policy for international market:
3. Place.
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Currently, VNA is applying the distribution method through: the traditional selling
channel is its box office and agency; new channels online. Depending on the market
and customer characteristics, VNA develops a system of selling channels
(Xemtailieu.com, 2015).
In the domestic market, VNA is using mainly channels through agents (traditional
and online) with 445 agents nationwide spread across 3 regions, along with the
ticket network in VNA branch system located in the city centers and the last ticket
offices at airport to ensure passenger service is timely.
In the international market, VNA places its branches in the city centers around the
world, where there are commercial routes that VNA operates in / out, branches to
implement VNA’s business operations, with a network of 30 ticket offices and
hundreds of appointed agents around the world.
4. Promotion.
Vietnam Airline ADS sometimes appear on television and often appear on websites,
especially on travel related websites. VNA also strengthened coordination in
promoting tourism in collaboration with the Vietnam National Administration of
Tourism to build a TV show “Hidden Beauty”, “SVietnam” to introduce cultural
features and highlights, Vietnamese society, country and people. VNA also often
promotes its brand through major events, such as the APEC conference in 2018.
BUDGETING:
1. Flight Operating Budget.
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Flight Operating Budget of Vietnam Airlines, 2019
Indicator Unit This year (2019) Expected Costs.
FLIGHT
Expected total flights
FlightsDomestic 7,988
International 4,897
Estimated fuel capacity Kg / Km 3.6
Average distance flew
KmDomestic 850
International 2,300
Estimated fuel prices VND / kg 6,000
Domestic:
VND 40,738,800,000
International:
VND 67,578,600,000
Total:
VND 108,317,400,000
MAINTENANCE OF AIRCRAFT
Estimated amount of
maintenance
Times 4 VND 240,000,000
Plane parts Tons 12 VND 720,000,000
Total: VND 960,000,000
WORKERS (pilots, flight attendants and other employees)
Pilots
1,100 Vietnamese VND/month 92,000,000 VND 101,200,000,000
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430 Foreign VND/month 120,000,000 VND 516,000,000,000
Flight attendants
2,100 Vietnamese VND/month 50,000,000 VND 105,000,000,000
Employees
2,010 Vietnamese VND/month 40,000,000 VND 80,400,000,000
350 Foreign VND/month 66,000,000 VND 23,100,000,000
Total: VND 825,700,000,000
Total Flight Operating Budget Total:
VND 1,894,017,400,000
2. Marketing Budget.
Marketing Budget of Vietnam Airlines, 2019
Indicators Unit Money/Amount This year Expected costs
ADVERTISEMENT
Internet VND/100 webs 120,000/100
webs
15,000 webs VND 18,000,000
TV VND/minute 6,000,000/
minute
1.3 minutes VND 7,800,000
Billboards VND / board 30,000,000/
board
40 boards VND 1,200,000,000
Total:
VND 1,225,800,000
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WORKERS (Employees)
Vietnamese VND / person(s) /
month
12,000,000
/person(s)/
month
290 people VND 3,480,000,000
Foreign VND / person(s) /
month
15,000,000/
person(s)/ month
63 people VND 945,000,000
Total:
VND 4,425,000,000
Total of Marketing Budget VND 5,650,800,000
3. Training Budget.
Training Budget of Vietnam Airlines, 2019
Indicators Unit Money/Amount This year Expected costs
TRAINING
New pilots VND/pilot 124,000,000/pilot 9 pilots VND 1,116,000,000
New flight
attendants
VND/attendant 40,000,000/
attendant
32 flight
attendants
VND 1,280,000,000
New office staffs VND/office staff 11,000,000/staff 42 office
staffs
VND 462,000,000
Flight simulation
training
VND/minute 960,000/minute 95 sessions
(1 session =
45 minutes)
VND 4,104,000,000
Real small aircraft VND/minute 1,120,000/minute 90 sessions (1 VND 6,048,000,000
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training session = 60
minutes)
Facility VND/facility 10,000,000/facility 4 VND 40,000,000
Total:
VND 13,050,000,000
TEACHERS FOR TRAINING
Vietnamese
Teachers
VND/
person(s)
/month
30,000,000/
person(s)/ month
4 people VND 120,000,000
Foreign Teachers VND/
person(s)
/month
60,000,000/
person(s)/ month
12 people VND 720,000,000
Total:
VND 890,000,000
Total Training Budget Total: VND 13,940,000,000
4. In-flight and airport services.
Flight Operating Budget of Vietnam Airlines, 2019
Indicators Unit Money/Amount This year Expected costs
IN-FLIGHT
Food and drinks VND/food and
drink set
52,000 / set 500,000 sets VND 26,000,000,000
Movie shows or Movie, song 35,000 / movie A library with VND 2,800,000
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songs and song 80 movies
and songs
Blankets and
headphones
43,000/blanket
and headphone
1,000,000
blankets and
headphones
VND 43,000,000,000
Total:
VND 69,002,800,000
AIRPORT
VIP lounge VND/lounge 6,000,000/lounge 56 VND 336,000,000
Food and drinks VND/food and
drink set
120,000/set 23,000 VND 2,760,000,000
Movies and
songs
VND/movie and
song
41,000/movie
and song
Library with
100 movies
and songs.
VND 4,100,000
Premium sets
and tables
VND/set of tables 5,000,000/set of
tables
1,600 set of
tables
VND 8,000,000,000
Total:
VND 11,100,100,000
Total In-flight and airport budget Total: VND 80,102,900,000
IMPLEMENTATION AND CONTROL:
In order to control my entire marketing plan, installing the most appropriate SMART criteria
system, means Specific, Measurable, Achievable, Realist and Time-bound.
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Reference
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BusinessDictionary.com. (n.d.). What is profit maximization? definition and meaning.
[online] Available at: http://www.businessdictionary.com/definition/profit-
maximization.html [Accessed 19 Jun. 2019].
29

Caa.gov.vn. (2019). Năm 2018, Vietnam Airlines đạt lợi nhuận gần 2.800 tỷ đồng. [online]
Available at: https://www.caa.gov.vn/doanh-nghiep/nam-2018-vietnam-airlines-dat-
loi-nhuan-gan-2800-ty-dong-20190102152136927.htm [Accessed 19 Jun. 2019].
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https://centreforaviation.com/analysis/reports/vietjet-air-pre-ipo-swot-rapid-
success-and-growth-in-booming-vietnam-but-future-challenges-324179 [Accessed
19 Jun. 2019].
Chand, S. (n.d.). Marketing Mix: Meaning, Definition and Characteristics of Marketing Mix
(with diagram). [online] Your Article Library. Available at:
http://www.yourarticlelibrary.com/marketing/marketing-mix-meaning-definition-
and-characteristics-of-marketing-mix-with-diagram/32321 [Accessed 19 Jun. 2019].
Friesner, T. (2013). Marketing Mix. [online] YouTube. Available at:
https://www.youtube.com/watch?v=BTsTMVXHz10 [Accessed 19 Jun. 2019].
Google.com. (n.d.). Chuyến bay. [online] Available at: https://www.google.com/flights?
hl=vi&lite=0#flt=HAN.SGN.2019-06-18*SGN.HAN.2019-06-
22;c:VND;e:1;a:VJ,VZ*VJ,VZ;sd:1;t:f [Accessed 2 Jun. 2019].
MBA Skool-Study.Learn.Share. (n.d.). Jetstar Airways SWOT Analysis | Competitors & USP |
BrandGuide | MBA Skool-Study.Learn.Share.. [online] Available at:
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