NATIONAL UNIVERSITY – HO CHI MINH CITY
INTERNATIONAL UNIVERSITY Marketing Strategy GROUP PROJECT
Company name: VinWonders
Class: Marketing Strategy - Dr. Le Tran Phuoc Mai Hoang - Friday Morning
Submission Date: May 19th, 2023 Group members: Student ID Full name Contribution BABAIU20047 Hoàng Gia Hân 100% BABAIU20577 Nguyễn Phan Khánh Nguyên 100% BABAIU20040 Trần Ngọc Châu Giang 100% BABAIU20068 Lê Thị Phương Linh 100% BABAIU20173 Lê Nguyễn Phương Uyên 100% BABAIU20552 Phan Thị Thu Hiền 100% BABAIU20573 Đặng Bảo Ngọc 100% TABLE OF CONTENTS I. Executive
summary… .................................................................................................. 4 1.1 VinWonders
Overview… ......................................................................................... 4
1.2 Products and services…...........................................................................................4
1.3 Management team summary… ................................................................................ 4
1.4 Market opportunity overview… .............................................................................. 4
1.5 Basic financial findings… ....................................................................................... 5 II. Marketing plan
objectives….......................................................................................5 III. Situation
analysis… ..................................................................................................... 6
3.1 PESTLE Analysis… ................................................................................................ 6
3.2 SWOT Analysis… ................................................................................................... 7 IV. Competitive
Analysis… ............................................................................................... 8
4.1 Competitors’ strengths….........................................................................................8
4.2 Competitors’ weaknesses….....................................................................................9
4.3 Organization’s competitive advantage….................................................................9 V. Financial
Analysis… .................................................................................................. 10
5.1 Starting capital… ................................................................................................... 10
5.2 Budget/cash flow for purchases & vendor list… ................................................... 10
5.3 Break-even analysis… ............................................................................................ 11
5.4 Projected income & profit… .................................................................................. 11
5.5 Overall financial concerns/implication…..............................................................12 VI.
Challenges/ Contingency Plan… .............................................................................. 12
6.1 Internal risks… ...................................................................................................... 12
6.2 External risks… ..................................................................................................... 15
6.3 How risks can be avoided… .................................................................................. 16 2 VII. Target market
analysis… ........................................................................................... 18 VIII. Marketing
mix… ........................................................................................................ 18
8.1 Product Strategy… ................................................................................................. 18
8.2 Pricing strategy… ................................................................................................... 19
8.3 Distribution plan….................................................................................................19
8.4 Promotional message…..........................................................................................20
8.5 Promotional plan… ................................................................................................ 20
8.6 Personal selling strategy….....................................................................................23
APPENDIX… ......................................................................................................................... 24 3 I. Executive Summary
1.1 VinWonders overview
VinWonders established in 2018 which is a theme park network owned and operated by
Vinpearl, a Vietnamese hospitality company. It may be found in various cities throughout
Vietnam, including Hanoi, Phu Quoc, and Nha Trang. Built on the idea of a theme park chain,
with a minimum area of 50 hectares or more in each zone, focused on major towns and tourist destinations.
1.2 Products and service
The parks offer a range of attractions such as thrill coasters, water slides, performances, and
themed zones, with highlights including the Dragon's Run roller coaster, the Sky Drop freefall
attraction, and the Pirate Ship water ride. In addition to the rides and activities, VinWonders
parks also offer a range of food and beverage options, retail areas, and other entertainment
choices. This makes them a popular destination for families, couples, and groups seeking a fun and thrilling day out.
1.3 Management team summary
VinWonders established an excellent team of high-quality human resources in terms of
knowledge, professionalism, foreign language competence, communication skills, behavior,
and managing situations. The company achieves this through an advanced and compassionate
human resource management model that emphasizes training and usage. This approach is
critical to the company’s aspiration of three times more income in 2021 than they did in 2020.
1.4 Market opportunity overview
Vietnam's tourism industry has seen tremendous growth in recent years, with the country
ranking fourth in growth and experiencing over 75% growth to date. Recognizing this potential
of tourism to become one of the most important economic sectors, the government has
approved a project for tourism to contribute over 10% of GDP. Vietnam's stable geopolitical
factors, rich culture, cuisine, and tourist attractions make it an attractive destination for visitors,
and the country's development of the tourism sector is expected to continue in the long run.
According to the Vietnam National Administration of Tourism, the country's tourism sector has
set a target of receiving 110 million visitors by 2023, of which 8 million will be foreign tourists
and 102 million will be locals.
Overall, with Vingroup's strong financial backing and expertise in the hotel and entertainment
industries, Vinwonders is well-positioned to become a major player in the Vietnamese
amusement park sector as demand for leisure activities continues to rise.
1.5 Basic financial findings
Vinpearl's hotel, tourism, and entertainment operations brought in 5,600 billion VND and are
still recovering in line with the market's overall growth. Additionally, in 2022, these two sectors
have also contributed 9% of Vingroup's revenue. (See Appendix A-1)
Revenue for Quarter 4 of 2022 is 303 billion VND. Revenue of VinWonders reaches peak
mostly at Quarter 2 and Quarter 3. Perhaps it is because these 2 quarters receive the highest
number of domestic travelers in 2022. (See Appendix A-2) II.
Marketing Plan Objective Interaction Awareness Sales Profits Customer loyalty - Increase the interaction - Increase brand - Increase ticket - Increase total - Increase repeat rate on social media awareness to 30% sales revenue by revenue by 15%. visit rate by 15%. platforms to 25%. among the target 20 %. - Achieve a - Obtain a t least - Generate at least 10,000 audience in Vietnam. - Achieve a
minimum of 10% 1 ,000 positive user-generated content
- Achieve a minimum of minimum of 10,000 revenue growth online reviews and ( UGC) related to 500,000 reach and ticket sales during from ancillary testimonials from VinWonders on social the campaign. services, such as media platforms
200,000 impressions on - Drive at least 20% hotel stays, food visitors during the showcasing positive social media platforms of total ticket sales and beverage campaign. experiences from
- Secure media coverage revenue through sales, as well as customers. in prominent promotional merchandise. - Achieve a minimum of
Vietnamese newspapers packages and 20 ,000 social media with a total discounts provided. interactions (likes, readership/viewership of comments, shares). over 5 million. III. Situation Analysis 3.1 PES TLE Analysis Political Economic Social - Tightly controlled by the
- GDP in 2022 increased sharply - Traditional Vietnamese Communist Party to 8.02% compared to the architecture, cultural - Implementing several previous year. performances, and food that policies to promote tourism
- The service sector increased reflects the local culture. - So many changes in
by 9.99%, contributing 56.65%. - Cultur al emphasis on family government policies (VAT - VN D weakens and community. reduction to 8% in 2022) - Economi c recovery after the becoming more urbanized.
=> Stable political situation pandemic (see Appendix B-1)
=> Increasing significantly in
so save a lot of money.
=> Increase in disposable
entertainment demands among
income and spending power for the middle class. Vietnamese consumers Technology Legal Environment
- Internet usage rate in - Ensure fire safety - Strive to cut methane Vietnam is 70 %.
( see - Guarantee the safety of emissions by 30% in 2023. Appendix B-3)
ỉnfrastrucutre and equipment - Stop deforestation by 2030 - More likely to buy tickets - Comply with regulations - Reach net carbon online related to food safety emission-free status by 2050. - 95% Vietnamese travelers - Employees must fully be - Environmental pollution in
read online reviews before insured. Vietnam still occurs making a booking decision.
=> Must ensure the benefits of => Prove to be a sustainable ( see Appendix B -2)
customers and employees.
company to attract customers.
=> Tourists impacted by Internet 3.2 SWOT Analysis Strengths Weaknesses
Facilities: ecosystem of tourist - entertainment resort Low-effective marketing strategy: Although complex of Vin Group.
VinWonders has achieved high reputation, their
Scale investment, increase competitiveness: with digital marketing strategies often lag behind
strong financial potential, VinWonders's projects are compared to their rivalries.
built on a large scale, reaching international standards. Production and Operating Risk: Maintaining and
Integrate a variety of experiences: The undisputed constantly generating stable income to partially meet
high-class utility chain with a wide range of
the capital needs for its ongoing projects also pose a activities.
Professional personnel: Professional and convenient
Human resources: the shortage of management service system for customers.
personnel is a matter of concern
State-of-the-art technologies and advanced practices
huge burden on the financial need, leaving the
corporation with chances of failure in investment. Opportunities Threats
A growing economy: GDP in 2022 increased sharply Unusual movements of natural disasters and at 8.02%
compared to the previous year, which is the epidemics: affecting the stable development of highest increase in
years in the period 2011-2022. businesses operating in the tourism sector.
Government policy: to develop tourism into a Green tourism: In recent years, young generation Z spearhead
economic sector. today highly appreciate local travel experiences and
Politics - law: Vietnam's legal system is increasingly backpacking. Thus, visitors are inclined to explore
improved to attract tourists and focuses on long-term nature more and participate in activities in life with and
stable cooperation relationships for development. locals.
Tourism Industry: The "boom" of the domestic Inclement Weather conditions: Inclement weather tourism
market aims to welcome 65 million visitors, and tropical storms remain hazardous to VinWonders including 5
million international visitors. business. IV. Competitive Analysis
The biggest direct competitor of VinWonder in Vietnam is Sun World. Sun World is a series
of amusement parks and entertainment complexes located throughout Vietnam, with locations
in popular tourist destinations such as Da Nang, Ha Long Bay, and Ba Na Hills.
3.1 Competitor’ strengths: -
Differentiation strategy: Each SunWorld location in Vietnam has a distinct character that
cannot be replicated. Meanwhile, Sun World Ba Na Hills in Da Nang has a reputation as a
miniature Disneyland, with a pleasant climate and interesting natural landscapes combined
with high-quality entertainment options. -
Variety of attractions: Sun World offers a wide range of attractions, including
amusement parks, water parks, cable cars, and cultural parks. This means that visitors can
choose from a diverse range of experiences, which can cater to different interests and age groups. -
Competitive pricing: Sun World's attractions are priced competitively compared to other
similar attractions in Vietnam, making them accessible to a wider range of visitors. Sun
World also offers a range of ticket options, such as single entry tickets or combo tickets.
3.2 Competitor' weaknesses: -
Has not had a strong impression: Sunworld Halong Complex's biggest weakness is its
limited reach in marketing communication, which prevents it from reaching many potential visitors. -
Has not yet attracted customers of most ages: The audience participating in the game
here are mainly young people between the ages of 15 and 30. The audience in the middle-aged
children group is still very limited because the water park here has a lot of risky games. -
Crowds: Its attractions can become crowded, particularly during peak season. This can lead to
long waits for rides and attractions, which can detract from the overall experience. -
Accessibility: Some of Sun World's attractions may not be accessible for visitors with mobility
issues or disabilities, due to steep inclines, staircases, or other obstacles. This can be a potential
weakness for visitors who have mobility issues.
3.3 Organization’s competitive advantages:
Diversified offerings: VinWonders provides a variety of attractions and entertainment options
for visitors of all ages. From thrilling roller coasters and water slides to family-friendly rides and shows.
Strong brand reputation: Vinwonder's competitive edge lies in its strong brand reputation, built
on trust and credibility with customers. The company's emphasis on customer service ensures
that customers receive timely and effective assistance when needed.
High-quality customer service: The company has highly trained representatives who are
knowledgeable about their products and services. Vinwonder offers multiple channels for
customer support, such as a user-friendly website.
Competitive pricing: VinWonders' aggressive pricing approach has increased its market share
and brand recognition while maintaining its market position against strong competitors.
Vinwonder's efficient cost management and supply chain optimization have enabled it to
continue its competitive pricing approach without compromising product or service quality. V. Financial Analysis 5.1 Starting capital
According to Vinpearl financial statement 2020, the total of Short-term assets (end of 2020)
was 13,623,271 (billion VND) which is 2,438,905 (billion VND) higher than at the beginning
of 2020 (11,184,366 billion VND).
Long-term Assets that were 42.974.686 (billion VND). This will also be seen much higher than
at the beginning of 2020 (29.655.742).
We see that VinPearl invests more in long-term assets than short-term assets. VinPearl really
has its future vision since investing in long term assets is a good choice compared to short term assets.
5.2 Budget/cash flow for purchases & vendor list
According to the annual report 2020, 2019 recorded operating results with VND 4,900 billion
in net revenue, of which revenue from hotel operation and entertainment accounted for the
majority, reaching VND 4,858 billion. (see Appendix C-1)
In addition, the company no longer has revenue from real estate trading and construction
activities. A loss after tax was recorded at VND 9,576 billion mainly due to large fixed costs
(including depreciation and other fixed costs), which did not decrease correspondingly when
revenue decreased. For hotel operation and entertainment segment alone (excluding
condotel/sea villa commitment program), net revenue reached VND 3,793 billion and segment
EBITDA loss was VND 1,839 billion in 2020.
Vendor List: Klook, HVC Group, Dong Tay Land Joint Stock Company, Phu Quoc Xanh. In
conclusion, budgeting and maintaining a vendor list are important aspects of procurement and
supply chain management of Vinwonders, as they help organizations effectively manage their
financial resources and establish reliable partnerships with vendors to meet their purchasing needs. 5.3 Br eak-even analysis Total Revenue VND 11,506 billion Fixed Costs VND 4,831 billion Total Variable Costs VND 3,891 billion Break-even point VND 7,296 billion Contribution Margin Ratio 66.2 %
=> Vinpearl must sell at least VND 7,296 billion to cover fixed and variable costs and profit.
5.4 Projected income & profit
Due to the COVID-19 pandemic's impact on tourism, Vinwonders' 2020 revenue fell 49% to
VND 11,506 billion. The corporation made money from hotel, dining, and entertainment enterprises.
Vinwonders made VND 7,615 billion in 2020 with a cost of products sold of VND 3,891 billion.
Gross profit margin fell to 66.1% from 72.7% the year before.
After subtracting operating costs of VND 4,831 billion, Vinwonders' operational profit was
VND 2,784 billion, down from VND 7,090 billion the year before. 2020 operational profit
margin was 24.2%, down from 45.6% in 2019.
Vinwonders' net income fell 80% to VND 1,228 billion. In 2020, the net profit margin dropped from 30.8% to 10.7%.
Due to the COVID-19 pandemic's impact on tourism, Vinwonders' revenue and profitability
fell in 2020. The company's operational and net profit margins fell significantly from the
previous year, but its gross profit margin remained around 60%. The global vaccination rollout
and travel restrictions reduction are expected to improve the company's financial performance in the future years.
5.5 Overall financial concerns/implications
Vinwonders' 2020 annual report shows that the COVID-19 outbreak hurt the company's
finances. Vinwonders' earnings suffered from pandemic-related travel restrictions and reduced
domestic travel. Gross profit margin declined from 72.7% in 2019 to 66.6% in 2020 due to revenue decline.
Another concern is the drop in operating profit margin from 45.6% in 2019 to 24.4% in 2020.
Vinwonders' fixed operating expenses caused this drop. Operating expenses accounted for
VND 4,831 billion of the company's revenue in 2020.
Vinwonders' financial performance will depend on the tourism industry's revival and its ability
to adjust to market changes. The company's financial performance might increase in the next
years due to vaccination distribution and travel limitations. The pandemic's future and tourism
sector influence are still unknown. VI.
Challenges/ Contingency Plan 6.1 Internal risks - Human resource risk
- Lack of Workforce Planning and Succession: The COVID-19 pandemic has
resulted in a decrease in demand for entertainment and hospitality services, making it
even more important for VinWonders to have the right talent in place to adapt to
changing market conditions. Without proper workforce planning, Vinwonders may
struggle to recruit the right talent and fill potential skill gaps, while a lack of succession
planning may leave the company vulnerable to disruptions in leadership and a loss of institutional knowledge.
- Lack of a retention and replacement strategy: Vietnam's economy is rapidly
expanding, resulting in increased competition for talented labor. Vinwonders may
struggle to maintain its most brilliant staff, who may seek better opportunities elsewhere,
resulting in a loss of institutional knowledge and diminished production in the absence of a retention strategy.
- Risk of Inadequate Training and Development: Employees may lack the skills and
knowledge required to function well in their professions if they get insufficient training
and development. This can result in decreased productivity and morale, which can increase staff turnover. - Financial risk
- Asset and investment management risks: Vinwonders is likely to find investment
opportunities as the Vietnamese economy grows fast, but also risks associated with
asset and investment management. Furthermore, asset deterioration or destruction
could result in considerable financial losses.
- Asset management: Neglecting assets such as the amusement park rides and facilities
could lead to costly repairs, safety concerns, and unsatisfied customers. Inadequate
asset management also means missing out on opportunities for cost savings, improved
efficiency, and revenue growth. Furthermore, the unstable regulatory environment in
Vietnam adds another layer of complexity.
- Risks related to financial statements: Inaccurate financial accounts may result in
erroneous asset assessments, making informed investment decisions difficult.
Furthermore, VinWonders' rapid expansion and acquisition of new assets complicates
its financial reporting, making it more difficult to assure regulatory compliance. - Operational risk
- Process Failure: VinWonders is responsible for managing numerous processes,
including ride maintenance, food preparation, and customer service, all of which are
critical to ensuring the safety and satisfaction of its guests. Additionally, process failures
can lead to inefficiencies, delays, and increased costs, which can negatively impact the
company's profitability and competitiveness.
- Supply Chain and Vendor Threats: Vinwonders relies on a vast network of
suppliers and vendors for its amusement parks, but any disruptions to the supply chain
could lead to delays, quality issues, and increased costs. Moreover, a limited number of
vendors could create a dependency, leaving Vinwonders vulnerable to sudden price
fluctuations or changes in supplier policies.
- Change Management risks: To stay ahead of the game in Vietnam's amusement park
market, Vinwonders must embrace change and take risks. However, if no solid change
management strategy is in place, it may face opposition and failure. Because the market
is fast-paced and continually evolving, even minor errors can have a significant impact. - Physical risk
- Equipment failure: Vinwonders faces a significant risk from equipment failure, which
can lead to lost revenue and damage to its reputation. The hot and humid climate of
Vietnam, combined with high usage, makes equipment failure a constant threat.
- Fire and Explosion: Vinwonders faces a formidable foe in the form of fire and
explosion risks, especially with the park's bustling crowds. The steamy climate in
Vietnam only adds fuel to the fire, so to speak. 6.2 External risks - Economic
● Currency fluctuations: VinWonders may be subject to risks brought on by fluctuations
in currency exchange rates, which could affect both the prices of inputs like labor and
materials as well as international visitor revenues.
● Disruptions brought on by the pandemic: The COVID-19 epidemic has significantly
affected the travel and entertainment sectors all over the world. Like other theme parks
and entertainment locations in Vietnam, VinWonders might have experienced closures,
decreased capacity restrictions, and other pandemic-related interruptions that could
have an effect on earnings and operations.
● Weather: The tropical climate of Vietnam is occasionally unreliable. Additionally,
since VinWonders is typically found on islands that are susceptible to typhoons and
other natural disasters, it might be necessary to take extra precautions or even
temporarily cease operations during these events. ● Competitor
○ Price competition: The theme park VinWonders may suffer from price competition in
a number of ways. First, VinWonders may lose customers who are seeking a less
expensive option if it is unable to match the low costs of its rivals. Second,
VinWonders may have to compromise on the quality of its services or attractions if
it tries to lower its prices to compete with other parks, which could lower consumer happiness and loyalty.
○ Innovation and differentiation: Innovative rivals who provide distinctive experiences
have the potential to sway customers away from VinWonders. This can be difficult
for VinWonders because creating fresh and distinctive attractions might involve a sizable expenditure. - Political
● Shortcomings in tourism polities: Shortcomings of transportation, lodging, and
infrastructure may result in visitors being unable to reach specific locations or having
trouble getting about, which may discourage them from traveling. The pressing problem
is, more crucially, inadequate marketing and promotion. The reach and efficacy of
promotion activities may be hampered by a lack of investment in marketing initiatives
and sparse use of digital channels.
● Corruption: Businesses that use unethical tactics like bribery might cause VinWonders
to miss out on contracts or other business opportunities, which would have an effect on
company revenue and possibilities for growth. Next, corruption may incur extra
expenses for VinWonders and contribute to a poor business climate, which makes it
more challenging for VinWonders to draw in funding and clients.
● Environmental changing: Due to climate change, Vietnam is seeing more frequent and
intense typhoons, floods, and extended droughts. Such catastrophes might hinder
transportation, harm VinWonders' infrastructure and tourist sites, and reduce the number of visitors.
6.3 How risks can be avoided
Depending on the type of internal risk, here are some actions:
● Human resource risk: The organization should teach personnel to prepare them for
leadership jobs. They should also implement a legal safety and health management
system and instill a safety culture. To keep top employees, the organization should offer
competitive pay and benefits and explore employee engagement programmes.
● Financial risk: Vinwonders should adopt effective investment and asset management
rules, a clear and practical debt payment plan, accurate and thorough financial reporting,
and a contingency plan to mitigate financial risks. The organization should also
regularly analyze and examine its finances to identify dangers and take action.
● Operational risk: Vinwonders should standardize workflows, processes, and
procedures to reduce operational risks. To reduce risks and interruptions, the
organization should monitor and evaluate its suppliers and vendors. For unanticipated
disruptions, the corporation should create a business continuity strategy.
When external risks occur, there are several actions that can be taken to minimize their impact
on VinWonders. Some of these actions include:
● Diversification: Diversifying the company's offerings reduces external risks.
VinWonders could offer attractions and experiences for different customer categories.
● Flexible pricing: VinWonders should modify its prices to attract budget-conscious
clients in reaction to price rivalry from competitors. The corporation could discount
tickets during off-peak seasons or for early bookings.
● Robust marketing and promotions: VinWonders might boost its marketing and
promotions to compete with rivals. This could mean growing its digital reach or
producing more engaging and innovative marketing initiatives that resonate with its target demographic.
● Risk management: VinWonders should have a detailed risk management plan to
identify and reduce hazards. This strategy may include regular risk assessments,
contingency planning, and disaster recovery. VII. Target Market Analysis
● Demographic characteristics of market
+ Target customers: families with children, teenagers and young adults
+ Age: between 5 and 40 years old
+ Gender: both male and female
+ Income: middle income to high income
+ Geographic location: type 1 and type 2 cities such as Ho Chi Minh, Ha Noi, etc.
● Psychographic characteristics of market
+ Family-oriented: who enjoy spending time together and creating shared memories,
interested in family-friendly attractions and activities.
+ Adventurous: enjoy trying new things and seeking thrilling experiences, willing to take
risks, and enjoy some adventurous games or activities.
+ Fun-seeking: enjoy having fun and experiencing joy activities offering happiness. +
Tech-savvy: comfortable with technology, enjoy incorporating it into their experiences,
interested in VR or AR, interactive games, or other high-tech features.
● Behaviors of target market
+ Safe entertainment: looking for entertainment and relaxation accompanied by safety.
+ Price comparison: tendency of comparing pricing before making a purchase. VIII. Marketing Mix 8.1 Product strategy
Differentiated amenities: promote Vinpearl Submarine and Night Safari
Cultural experience: building and creating many multicultural museums from Vietnamese
culture to Asian and European culture. These experiences can be reproduced through museums,
plays, performing arts, as well as published publications.
Personalization Event: provides services and venues for personal events such as marriage
proposals, birthday parties, family parties, meetings or team building activities. 8.2 Pricing strategy
Product line pricing: Offer different ticket types at three price levels: basic, standard, and
premium, based on the level of access or amenities provided.
+ Basic: Ranges from VND 200,000 to VND 300,000 including basic games and
entertainment activities but can pay for additional fee if customers want to join offerings
outside this package with corresponding price for each of them.
+ Standard: Ranges from VND 400,000 to VND 500,000 including advanced games and
entertainment activities, as well as access to some utility services such as sunbathing,
swimming in the designated area.
+ Premium: Ranges from VND 700,000 to VND 1,000,000 including the most
advanced games and entertainment activities, as well as access to all utility services in
the designated area, such as swimming pool, sauna, hot spring bath, buffet... In addition,
customers are also given priority to participate in games and use services, avoiding queuing and waiting.
8.3 Distribution plan Direct Distribution Strategy:
- VinWonders' Website: Visitors can purchase tickets online through VinWonders' website
offering daily tickets, annual passes, and VIP packages.
- Ticket Booths: Visitors can purchase tickets at ticket booths located outside VinWonders' theme parks.
Indirect Distribution Strategy: Through travel agents or tour operators that offer packages
that include VinWonders' theme parks such as Traveloka, Klook, Agoda, Expedia, Viator.
8.4 Promotional message
Big idea: Wonder Unleashed
Insight: Welcome to Wonder Unleashed at Vinwonder, where your imagination knows no
bounds! Join us on a journey of excitement, adventure, and endless possibilities. Discover our
innovative attractions, thrilling rides, and immersive entertainment experiences that will