Comprehensive Marketing Plan: VinFast Electric Vehicle Strategy

This report provides a comprehensive marketing plan analysis for VinFast, Vietnam's first car brand, focusing on its electric vehicle strategy, particularly the VFe34 model. It begins with an executive summary outlining VinFast's mission and market position, followed by a PESTEL analysis of the Vietnamese market, assessing political, economic, social, technological, environmental, and legal factors influencing the company. Porter's Five Forces analysis evaluates competitive dynamics, while an internal analysis examines VinFast's strengths, weaknesses, opportunities, and threats (SWOT). The report then details VinFast's current marketing mix, including product, price, promotion, place, people, process, and physical evidence. The report concludes with a detailed SWOT analysis, offering insights into VinFast's market position and strategic recommendations for future growth.

1. Executive Summary
VinFast belongs to VinFast Manufacturing and Trading Company Limited (VinFast LLC) is the
first car brand in Vietnam invested by Mr. Pham Nhat Vuong. VinFast offers the opportunity to own
the right cars and motorbikes in each price segment to easily reach customers, and always tries to
build a Vietnamese brand known in the market. international micro. Vingroup has also contributed to
making Vietnam's auto industry stronger and more developed.
The products that VinFast is distributing are mainly cars and electric motorbikes, the famous
Vinfast models can be mentioned as Fadil, VFe34, Lux A2.0, Lux SA2.0. Vinfast continuously
develops and researches new car models, especially electric cars. Vfe34 is VinFast's first electric car
model with more than 3000 orders within 24 hours of opening for sale.
The entire world is now coping with a series of environmental challenges, including sea ice
melting and sea level rise, as well as a spate of extreme weather occurrences such as storms, droughts,
and high heat waves. Yes, dealing with the horrors of this weather is challenging. The global
temperature is anticipated to climb by 2 degrees Celsius, meaning that humanity will confront a
plethora of new issues in the future.
According to the Intergovernmental Panel on Climate Change (IPCC), vehicles accounted for
14% of CO2 emissions into the atmosphere in 2010. Despite the fact that this is a substantial amount,
the consequences of doing so CO2 emissions from production to vehicle use are still ignored. , or is
taken into account. Cars account for 72% of CO2 emissions, so the development of electric vehicles is
very important and the Vinsfat VFe 34 model has been researched and manufactured by Vinfat.
This marketing plan's goal and structure are as follows: marketing audit, objectives, 7P
marketing mix, action plan, money allocation, control and monitoring techniques, and comprehensive
communication strategy. Reduces the risks connected with new product releases and promotes the
most effective customer-reach marketing tactics.
2. Marketing audit
Pestel analysis
Factor In Vietnam market Implication The Vinsfat
political Insercurity -Vietnamese politics is stable,
there are few armed conflicts
-There are frequent traffic
jams, especially in 2 big cities.
(S) No economic influence from
terrorist elements
(O) Vinsfat can grow well in
Vietnam
(T) The tendency of buyers to
choose products that are
convenient for commuting such as
bicycles or motorbikes to
facilitate commuting causes the
number of Vinsfat buyers to
decrease.
Emission
regulation
- Automotive product lines
imported after January 1, 2021
must fully meet environmental
protection criteria (emission
requirements EURO 5).
(O) Reduced market
competitiveness (competitors are
unqualified)
(T) Additional assembly expenses
must be incurred to achieve
standards
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Taxes - The Vietnamese government
always has a slew of measures
in place to help the vehicle
industry.
(O) helps Vinsfat develop further
in the automotive field
Economic stability - Per capita income has
increased significantly
(US$3000/person).
(O) Make it easier for people to
get into autos.
inflaction -Inflation declined
-GDP fell dramatically as a
result of the pandemic
(T) Consumer demand falls
SocialCultura
l
Income - Vietnamese individuals have
high and middle-class
incomes.
(O) Vinsfat is easily accessible to
Vietnamese in a variety of pricing
ranges
(T) There is a lot of competition
in each sector.
Diving trend - Buyers prefer to purchase
new automobiles at cheap
rates that are also ecologically
beneficial.
(O) Facilitating the production of
eco-friendly electric vehicles
Technological Identification
technology
- The vehicle uses a highly
secure digital security system
(O): Help customers easily
manage the vehicle and ensure the
safety of the driver
AI Machine learning, deep
learning, and computer vision
are examples of artificial
intelligence technologies that
have applications in robotic
automation in the automobile
sector.
(O): Self-driving car
recommendations, fleet
management, helping drivers
improve safety and improving
services such as vehicle checks or
insurance are newly introduced
features that strongly stimulate
customer decisions row.
Enviromental Sustalnability
concern
Vietnamese people are
gradually shifting to a more
environmentally friendly way
of living. As a result of
automotive pollution, they are
concerned about the working
environment.
(O) Investment opportunity to
develop electric vehicles
(O) attracted a lot of Vietnamese
customers
2

Legal tax Electric car purchasers in
Vietnam must pay the
following taxes and fees:
VAT is 10% of the vehicle's
worth.
10% to 12% advance premium
340,000 Vnd for key
registration
The cost of civil liability
insurance is 440,000VND.
1.5 million VND per year for
road upkeep
(T) Because the total tax charges
are so high, purchasers are more
hesitant to possess an electric
vehicle.
Regulation - To be able to drive an
electric car on the road, the
driver must have a driver's
license that allows him or her
to utilize a conventional
driver's license without a
specific license for electric
vehicles.
(O) Making it easier to utilize
electric automobiles without
requiring new driver's licenses.
The development of electric vehicles in Vietnam is very reasonable because the Vietnamese
government always supports the development of the automobile industry and moreover,
environmental safety.
Poter’s Five Forces Analysis
ComPetive
Rivalry
High (T) Facing long-standing car manufacturers is a big problem for
Vinfast when they use the affection of a variety of users from high
income to super high income, but the brand and product quality are still
appreciated by many people, more reliable.
Buyer-
Power
Hi.gh
(T) Because Vingroup is engaged in a variety of businesses, investors
can select alternative career dates.
(T) When there are numerous automobile manufacturers in the
Vietnamese market, buyers may select the firm that best suits their
demands to purchase or the company's potential to invest in.
3

Supplier
Power
High
(T) Because VinFast demands a huge number of chains, components,
and tools, the cost of switching suppliers is prohibitively expensive.
(T) Changing suppliers leads to inconsistencies in product quality.
(O) On the market, there are several suppliers of materials
for vehicle manufacturing.
Threat of
Substitution
High - (T) Cycling is a way to conserve the environment while also
exercising people's health.
- (T) Vietnam's high-speed railway plant is now complete.
Threatoof
New Entry
Lo.w - (O) Expensive Foundation
- (O) A high information barrier in the auto industry
- (O) Complicated legal criteria for establishing a car
manufacturing firm
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Internal factors
Strategy - The synchronous development policy is divided
into three components. The first is research and
development and training, the second is
automobile manufacturing, and the third is the
building of an auxiliary industrial park in
VinFast's industrial park.
- Vinfast organizations will concentrate
on Vietnamese people, with the goal of
instilling public pride in its customers.
(S) As a consequence of this
strategy, Vinfast is able to
respond to the demands and
desires of its clients as well as
the market in a timely manner
-> grows market and client base
(S) Vinfast's corporate strategy is
distinct from that of other
automobile companies in that it
is centered on the Vietnamese
people. As a result, the company
has extensive support.
Pro.ductivity - In September 2021, VinFast sold 2,565 Fadil
devices, 486 Lux A2.0 units, and 446 Lux SA2.0
units, according to sales numbers. This result
demonstrates VinFast's stunning return in various
regions after a lengthy period of social
estrangement.
- Vinfast's manufacturing activities are
expanding to Australia, as well as into electric
automobiles in the United States.
(S) Vinfast's businesses have
begun to recover from social
isolation, and earnings have
climbed significantly.
(S) Attracting a large number of
customers helps Vinfast's
revenue increase sharply.
System - Car assembly steps are mainly done via robot
lines
- Vinfast's components are mostly sourced from
abroad -> very dependant on foreign firms
(S) The items are consistently of
high quality
(W) being price passive in terms
of source cost more
Tangi.ble value - VinFast's first electric car, the VF e34, is
positioned in the C-class SUV/crossover
segment. The smart electric vehicle has a one-of-
a-kind battery rental policy as well as a statewide
charging station network. The category D and E
VF e35 and VF e36 SUVs are the first two
Vietnamese-branded electric cars to "reach the
globe." These are two SUV models featuring
top-tier safety, comfort, and entertainment
features. These vehicles are highly competitive
in the market, from on-board features to
experience and price, manufacturer, labor, and
showroom.
(S) High product quality
Diversify product segments
(S) Widespread global coverage.
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Intangible bring confidence to users and guaranteed
safety with these types of services
(S) Advantage of the
product in the market
(W) the competitive
advantage of the product is
determined by the parent
company.
Current marketing mix
product - V.Fadil, V.Lux A, V.LuxSA,
V.President,... are among the five
medium to high quality automobiles.
- An A-segment car with a 1.4L engine
that satisfies 4-star NCAP safety
standards and comes with significant
incentives.
- Includes a variety of safety features
such as an electronic balancing system
(ESC), horizontal departure support
(HAS), traction control system (TCS),
and so on.
- (S) Vietnamese-branded automobiles
were the first to arrive on the worldwide
market.
- (S) Providing the user with comfort
and safety
Price - Low to high price range:
382,500,000-3,800,000,000 VND
-Promotional pricing
-Pricing depending on competition
(S) provide substantial incentives in order to
attract a big number of customers (W) spend
a lot of money and even lose money on
marketing initiatives
(S) charge a premium relative to other
brands, even if the product is of comparable
quality but less expensive than a force car.
promotion - Targets the population with a high
middle income.
- Make use of key opinion leaders
(KOLs) to promote your product or
service.
- Uses aggressive sales tactics
- Make use of the direct channel.
- Made use of integrated
communication
- (S) Effectively employ internet
advertisements to achieve positive
results at the lowest possible cost.
- (S) Capable of influencing purchasing
habits at certain times and marketplaces
- Motivate clients to purchase more
Place - Adding a new distribution channel
- Expanding distribution with a
stringent set of requirements
- Products may be purchased
directly from websites - Products
have appeared and are being
promoted via a variety of online
channels.
- (S) Diversified distribution
- (S) Good link with other car
manufacturers
- (W) It is difficult to control personal
selling and improve customer service in
the event of unlicensed distributors.
People - Senior executives from General
Motors, Tesla, Toyota, and
Volkswagen, among others, wish to
join Vingroup in fulfilling the dream of
(S) Skilled personnel and management
assure product quality.
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producing Vietnamese-branded
vehicles of world-class quality,
therefore revolutionizing the
automotive industry. Vietnam is
become a reality.
- Labor usage: Vinfast clearly
groups departments depending
on the functions they execute.
As a result, every employee in
the company gets a position that
is tailored to their skills.
(S) This contributes to Vinfast's increased
seriousness and productivity on the job.
Process Vinfast adopts a German
automaker's car production cycle
and innovation.
- (S) Reduce the company's
testing and production time and
expenses while also assisting the
organization in learning new
developments.
- (W) Vinfast's ability to progress and
transform will be hampered as a
result of the new change introduced
from outside the country.
Physical
evidence
Because Vinfast's cars drive well,
maintenance and repair costs are cheap.
Moreover, the design is rich and
sophisticated, and when used, the
stable power source leads to the vast
majority of Vinfast customers being
satisfied with the company's products
and services.
(S) If they are delighted with the items, they
will leave a positive review for it, which
other buyers will see and feel at peace with
when purchasing and using it.
SWOT Analysis
Strengs Weakness
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1. Famous brand in Vietnam
2. Abundant financial resources
3. Owning a large number of Vietnamese customers
and always increasing
4. The marketing strategy is quite successful.
1. hefty marketing costs
2. As a result of the covid outbreak, Vinfast has
experienced significant losses both at home and
abroad.
3. The procedure to buy a car has a lot of paperwork,
and the waiting time to receive the car is long
Opportunities Threats
1. Capable of attracting a large number of tech-savvy
clients
2. The state has several favourable tax schemes that
help it compete with foreign-imported vehicle
producers.
3. Marketing and product development provide
several investment options.
4. There are several opportunities to attract a huge
number of domestic investors and customers.
5. There are several opportunities for international
partnership with reputable providers.
1. Customers may simply select other automobile
manufacturers.
2. A protracted outbreak diminishes purchasing
demand
3. The currency rate has a significant impact on the
price of Vinfast.
4. Mandatory expenditures are prohibitively
expensive.
3. MARKETING PROPOSAL
1. Marketing objiectives
- Increase Facebook fan page followers to 1 million by December 30th, 2022.
- Increase revenue by 15% in the following six months.
- Obtaining brand awareness of 80 percent of Vietnamese customers for Vinfast electric
vehicles by the end of the third quarter of 2022 for electric autos.
2. STP strategy
Segmentation:
Psychological segmentation: touch the thoughts of individuals concerned with
environmental protection
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Vinfast's target market is consumers who wish to acquire high-quality European-style
automobiles at a low price.
Demographic: Moreover, this group of people live in cities, have middle to high income,
they are willing to pay for electric vehicles to reduce pollution to have a cleaner environment
because smog is a problem large in urban areas.
Behavior segment: Customers who buy automobiles with designs choose vehicles that are
current, of high quality, stylish, and come in a variety of colors. Furthermore, they are the
ones that value Vietnamese items produced by Vietnamese people. This is in reaction to the
ad "Vietnamese people prefer utilizing Vietnamese goods."
Targeting
Company goal: To create automobiles that would become the emblematic image of Vietnam.
Furthermore, Vinfast aspires to be the sole owner of both automobile manufacturing and
distribution, selling not only locally but also internationally. As a result, Vinfast aspires to
dominate the domestic market while also exporting its vehicle lines to other important
markets such as Asia, Europe, and so on.
Vinfast's target clients range from low to high income levels.
- People with a high wealth, a strong national spirit, and a tendency to support and use high-
quality Vietnamese products are their target clientele for high-end autos.
- Vinfast addresses low- or middle-income consumers for mid-range models, or merely needs
to utilize automobiles as a medium of transportation, without demanding form and design
qualities.
- When it comes to electric autos, Vinfast reaches out to individuals who live green and use
electric energy to protect the environment.
Positioning strategy:
The first automobile company produced and distributed by Vietnam
3. Product
• Vinfast is implementing the Diversification strategy. • Describe the new product.
• Use your smartphone to interact with and manage the VF e34.
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• The VF e34 supports remote software updates.
• The VF e34 has a schedule suggestion tool.
• VF e34 self-study, memorize, and recommend based on usage habits
• Automatically generates an emergency signal eCall
• Ingenious anti-theft technology that sends phone warnings
• General products
• Expected product
• Augmented product
• Potential product
4. Price
The VF e34 costs between 590 and 656 million VND, depending on the interior and exterior
equipment.
Different incentives for various payment methods aid in the creation of speed and
convenience for both customers and enterprises. The phases in the automobile purchasing and
selling process between businesses and customers occur swiftly, assisting in the acceleration
of sales and, as a result, the achievement of the marketing target outlined above.
5. Place of Vinsfast
- Vinfast owns 242 distributors and 83 agents across the country. The centers are usually
located in convenient locations crowded with customers
In addition to hundreds of showrooms spread across the country, Vinfast should add an
online sales strategy.
6. Promotion
- Vinfast's target customers range from the low-end to the high-end. Recognize the
importance of social media and use it to promote businesses and attract clients.
Detailed planned communication plan:
Tool Media/Content
Advertising - Social Media (According to statistics, Vietnam will have 68.17 million
internet users (representing 70% of the population) by January 2020
- Time square in Hanoi in major cities registration stations in Hanoi (bus
station)
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