Final Report Vinfast Klara 1 - Nguyên lý Marketing | Trường Đại học Kinh tế, Đại học Quốc gia Hà Nội

lOMoARcPSD|45316467 lOMoARcPSD|45316467 1 lOMoARcPSD|45316467 Contents
PART 1. MARKETING RESEARCH......................................................................................3
A. BUSINESS ANALYSIS...................................................................................................3
I. Company Information.....................................................................................................3
II. Product Information.......................................................................................................6
III. Marketing Environment................................................................................................6
Covid-19 business impact...............................................................................................8
B. GROWTH STRATEGY AND LONG-TERM TARGETS...............................................9
I. Growth strategy...............................................................................................................9
II. Long-term targets.........................................................................................................10
C. SWOT ANALYSIS.........................................................................................................10
PART 2. STRATEGY.............................................................................................................13
A. MARKETING STRATEGY...........................................................................................13
B. MARKETING COMMUNICATION.............................................................................14
C. DISTRIBUTION STRATEGY.......................................................................................15
I. Direct Selling.................................................................................................................15
II. Indirect Selling.............................................................................................................18
D. COMPETITION STRATEGY........................................................................................20
I. Inevitable Trend............................................................................................................20
II. Competitors..................................................................................................................21
E. MARKETING MIX (4Ps)...............................................................................................23
F. ACTION PROGRAM MARKETING.............................................................................27
I. Communication Design.................................................................................................27
II. Program Details...........................................................................................................27
G. PROJECTED MARKETING BUDGET.........................................................................31
I. Expense Details.............................................................................................................31
II. Break-even Point..........................................................................................................32
PART 3. CONCLUSION.........................................................................................................32
PART 4. BIBLIOGRAPHY.....................................................................................................33 2 lOMoARcPSD|45316467 PART 1. MARKETING RESEARCH A. BUSINESS ANALYSIS I. Company Information I.1. General information T
able 1 . V
inFa st’s information Brand name VinFast Full name
VinFast Trading and Production Limited Liability Company Industry Automotive Founded June, 2017 Founder Pham Nhat Vuong Headquarter Hanoi, Vietnam Products
Automobiles, Motorcycles, Commercial vehicles Parent Vingroup Website https://vinfast.vn/
Brand Vision To be the leading vehicle brand in Southeast Asia - the best of the global
vehicle industry brought together to create world-class products Brand
Represent the Vietnamese identity on the world map of the vehicle Mission
industry , strive 'for a better life for the Vietnamese people'.
I.2. Company’s characteristics
I.2.1. Vietnam’s first car maker
Founded in 2017 by Vingroup, VinFast is Vietnam’s first high-volume automotive manufacturer.
VINFAST stands for Vietnam - Style - Safety - Innovation - Pioneer and aspires
to be the brand for Vietnamese cars.
VinFast represents a desire to establish a modern, high-tech automaker in
Vietnam. As automobile and motorcycle production is in itself an important and
impactful industry, Vingroup also hopes to promote the development of the industrial and
manufacturing sector in Vietnam, contributing to the industrialization and modernization of the country.
I.2.2. The design chosen by its people 3 lOMoARcPSD|45316467
To find a car that reflected the desire of the Vietnamese drivers, VinFast did
something no car brand has ever done before.
By inviting the Vietnamese people - our first future customers - to be directly
involved in our designs right at the start. We turned the traditional design process on its head.
This completely fresh and innovative approach breaks all the rules when it comes
to creating a new car model. VinFast is creating a product not only by the people of
Vietnam but for the people of Vietnam.
All VinFast cars will be manufactured at a purpose-built, 335-hectare plant in
Haiphong city, northern Vietnam, which represents an initial $1.5 billion investment.
This facility will produce a wide range of electric scooters as well as passenger cars.
I.2.3. Built by the auto World’s finest
By enlisting the very best specialists in the automotive industry - including Italian
car design firm Pininfarina, vehicle engineering specialist Magna Steyr and powertrain
engineers AVL, VinFast has been able to create truly world-class cars from the outset.
VinFast cars are also built using world-class equipment. A servo press from
Schuler is at the heart of the facility’s press shop, and a fully automated body shop that
uses high-quality Dürr paint equipment ensure a world-class finish. The facility is not
only world-class, but it is also the best in class.
I.2.4. VinFast looks to the future
A Vietnamese business with a truly global outlook, VinFast is proud to have
launched the first cars in its Global Car portfolio.
VinFast aims to become Southeast Asia’s leading vehicle manufacturer, as well as
a significant new player in the global automotive industry.
In VinFast, Vingroup has created a car brand that Vietnamese people can be truly
proud of. It meets domestic drivers’ automotive needs and ideals - and it also answers the
demand from a growing domestic market, one of the fastest-growing economies in South
East Asia. It is innovative car brand for the world, a dynamic company that is happy to
take an unconventional approach to make great things happen. Delivering highly original
styling in world-class cars, it is an exciting new contender with the potential to shake up the global car industry. 4 lOMoARcPSD|45316467 I.3. Executive team Le Thi Thu Thuy James Deluca Chairwomen of VinFast cum CEO VinFast Vice Chairwomen of Vingroup Trading and Production LLC Le Thanh Hai David Lyon
CEO – VinFast Trading and Service Director of Design I.4. Business portfolio T
able 2 . V
inFast product s Category Product line
Klara: a smart electric scooter with high quality and unique modern design VinFast electric +Klara A2 +Ludo motorbike +Klara S +Impes +Klara A1
Fadil: a city car with sporty, energetic design and suitable price VinFast car +Lux SA2.0 +Lux V8 +Lux A2.0 +Fadil
In this report, our group will design a marketing strategy for product: VinFast Klara . 5 lOMoARcPSD|45316467 II. Product Information II.1 Product description
Table 3. VinFast Klara Product name Klara Manufacturer VinFast Production 11/2018 Assembly Vietnam Designer Torino Design Type Lead acid and lithium ion batteries
Price From 30 to 50 million VND II.2. Business statistic
- VinFast Klara started selling to Vietnam market on November 20, 2018.
- At the first quarter of 2020, VinFast, more specifically Klara electric motorbike have
fairly stable business parameters:
+ Revenue: 400 billion VND.
+ Profit: There is currently no interest.
+ Market share: 5% of domestic E-motorbike.
+ Growth rate of revenue: 1.75%/ month.
III. Marketing Environment
Electric two-wheelers, which include vehicles ranging from bicycles to scooters,
are becoming increasingly popular and important forms of urban transport in Asian cities,
particularly in China. The potential environmental benefits to Asian cities of electric two-
wheelers could be significant, especially if they replace gasoline scooters and
motorcycles, according to an Asian Development Bank report on electric two-wheelers in
India and Vietnam. Electric scooters and motorcycles have been categorized into 48 volts
(V), 24V, 36V, and are available in even more voltages like 60V and 72V. Speeds range
from 30 to 70 kilometers per hour. All electric scooters and motorcycles can be recharged
by plugging them into ordinary wall outlets, usually taking about eight hours to charge fully.
The increasing global release of carbon by burning fuel on roads has been a great
concern for environmentalists and governments from the past decade. This concern has
led to an increase in further demand for electric vehicles and their adoption worldwide.
Electric scooters and motorcycles, while reducing the carbon footprint on the
environment, have gained significant interest from various governments as an efficient
and reliable type of light motor vehicle. 6 lOMoARcPSD|45316467
To encourage the use of environmentally friendly vehicles with low emissions,
benefits such as reduction in registration tax and other liabilities have been offered by
governments of different countries. This factor is significantly responsible for the rise in
the development and adoption of electric scooters and motorcycles in various countries.
As per the findings of the research by Vietnamese-German Transportation
Research Centre, electric scooters were in higher demand than electric motorcycles.
Sealed lead acid battery vehicles have been the largest revenue contributor in the global market.
However, lithium-ion battery-based scooters and motorcycles are expected to
witness the highest growth in the demand during the forecast period. China has been the
largest market on the globe for these electric vehicles, while the Indian market is
expected to witness the highest growth. Geographically, the Asia-Pacific region
accounted for more than 90 per cent of global electric scooter and motorcycle shipments
in 2016. The highest growth in shipments is expected in Europe during the forecast
period. However, shipments in North America are also expected to grow at nearly the same rate.
The growth of the electric scooter and motorcycle market in the Asia-Pacific is
due to rapid urbanization and increase in household incomes, which is encouraging
consumers to replace their fuel-driven two-wheelers with electric variants. China, India,
Indonesia, Japan, and South Korea are the major electric two-wheeler markets in the
Asia-Pacific. Other major markets in the region include Australia and Vietnam.
The launch of VinFast’s electric motorbike models of its manufacturing factory is
expected to create bigger competition in Vietnam’s lucrative motorbike market currently
dominated by Honda, Yamaha, and Piaggio’s gasoline two-wheelers. Vietnam has been
slower than other countries in terms of electric vehicle development, and while the
potential of the market is huge, Vietnamese enterprises have not paid sufficient attention to investment in recent years
Research on the role of motorbikes in Vietnam conducted by Vietnamese-German
Transportation Research Centre shows that motorbikes currently occupy the most
significant position in transportation in the country. Moreover, beyond 2030 they will still
be commonly used in spite of people’s increasing income. Currently, the Vietnamese
motorbike market is dominated by foreign players. Five members of the Vietnam
Association of Motorcycle Manufacturers (VAMM) – namely Piaggio, Suzuki, SYM,
Yamaha, and Honda – have reported sales this year higher than those of the previous
year. The total number of motorbikes sold by these companies rose from over 2.8 million
in 2015 to over 3.1 million in 2016, and to nearly 3.3 million in 2017. According to a
recent VAMM report, its members sold 783,940 motorbikes of all kinds in the second
quarter of 2018, up 6.1 per cent on-year, raising the total number in the first half of this year to nearly 1.6 million.
There are currently motorbikes with three types of engines: gasoline internal
combustion engines, pure electric motors and a hybrid engine. In internal combustion
engine-equipped motorcycle segmentation, Honda-brand bikes had 72 per cent of the
market share during 2017, and 74 per cent during the nine first months of 2018.
Following that are four other members of the Vietnam Association of Motorcycle 7 lOMoARcPSD|45316467
Manufacturers: Yamaha, Suzuki, Piaggio and SYM. Recently, Honda has launched its
own hybrid bike with the PCX Hybrid model. Over the past years, imported Chinese-
produced products have also been marketed in Vietnam.
The biggest advantage of the bikes is the reduction in environmental pollution and
the removal of the gasoline smell when vehicles are stored in the home. Disadvantages
include limited travel distances after one charging, long charging times of five or seven
hours, and very high costs for end-of-life batteries. In line with the current regulations,
the manufacturers are responsible for the retrieval and treatment of end-of-life batteries.
The policy on the personal means-of-transport limitation in big cities such as
Hanoi and Ho Chi Minh, affecting automobiles and motorcycles, are aimed to reduce
traffic jams in major cities. Jams are caused by four main reasons: Dis-obeying of traffic
laws, organization of traffic, road infrastructure and the number of vehicles on the road.
When public transport services in large cities are both efficiently organized and
convenient to people, the personal means-of-transport will be automatically reduced. In
other words, the domination of pure electric motorcycles will not conflict with the policy
on the personal means-of-transport limitation.
Covid-19 business impact
The outbreak of the Coronavirus (COVID-19), which originated in Wuhan, China in
end-December 2019, is fast spreading its tentacles across the world and is having a major
impact on all aspects of society, including the automotive industry. All through January
and February, automakers and their suppliers have been scrambling to keep vehicle
assembly lines humming but March has seen the industry take concerted action, in sync
with government advisories, to keep its personnel safe.
With the World Health Organisation declaring the COVID-19 outbreak a pandemic,
an unprecedented global disruption is at hand. Automobile and component manufacturing
plants are being shuttered around the world, consumer footfalls in showrooms have fallen
sharply, vehicle sales are dropping dramatically and almost every major industry event is
either being cancelled or going the digital way. All of March has been packed with
coronavirus-related news and it all started with the cancellation of the 2020 Geneva
Motor Show, which was to open on March 5. -
Government policies to support the automotive industry during COVID-19 pandemic.
+ The Government has issued Decree No. 57/2020/ND-CP stipulating the
preferential import tax rate of 0% for domestically unavailable raw materials, supplies
and components for production and processing (installation). Assembling products to
support development priority for the automobile manufacturing and assembly industry (automobile supporting products).
+ Resolution 48, the reduction of registration fee to 50% of registration of
domestically manufactured and assembled is under the Government's deciding authority.
+ Allow the extension of the time limit for paying special consumption tax on
domestically manufactured or assembled, for amounts payable from March 2020. 8 lOMoARcPSD|45316467
B. GROWTH STRATEGYAND LONG-TERM TARGETS I. Growth strategy
The Vietnamese electric vehicle (EV) market is full of energy. Rapid economic
growth is increasing disposable income levels and major infrastructure projects are
improving connectivity. Motorcycles are still the vehicle of preference.
Accordingly, BMO research expect the Vietnamese market to grow with 11.1%
per year over 2017- 2021 (BMO research 2018). In 2016, Vietnam reportedly spent
nearly US$500,000 on purchasing EVs from overseas markets, including Japan, China
and the US (Vietnamnet 2017). The Ministry of Industry and Trade expects new auto
sales to more than double to 600,000 units annually in 2025 (NIA 2018).
Experts envision an especially promising future for electric vehicles given a number of local conditions.
+ First of all, EVs meet the healthy and high mobility criteria associated with the
smart city concept. Vietnam’s cities are attracting more and more people each year
amounting to an accelerating urbanization rate of around 3% per annum. The already
highly congested roads, which serve 94% of all transportation, are being expanded quickly (Granthorton 2017).
+ The young and increasingly wealthy middle-class is open to change and
attaches more importance to personal and environmental health. Hanoi and Ho Chi Minh
City suffer from – at times extreme - pollution and a chronically underperforming public transport system.
Rising global fuel prices and low Vietnamese electricity prices work in favor of
EV. In a recent study by Nissan, Vietnam’s consumers showed to possess one of the
strongest latest demands for electric vehicles in ASEAN.
VinFast directs Klara to those who have real needs for a smart electric car for
everyday use. Contrary to the fact that electric scooters are considered as a temporary
vehicle before consumers buy gasoline-powered motorcycles. 9 lOMoARcPSD|45316467
VinFast positions its customers at a young age, living in urban areas, with the
need to travel frequently in the city and like to catch up with new technology trends.
VinFast aims to produce 250,000 electric scooters / year in phase 1, increase to
500,000 cars in phase 2 and can expand to 1 million electric scooters / year.
Especially, with the electric motorcycles, VinFast is willing to take losses up to
40 per cent in the first phase so that many consumers can reach the products, contributing
to build habits of using vehicles safely, eliminating emissions and minimising noise, as
well as protecting the environment of the community.
Vingroup and Vietnam Petroleum Group (Petrolimex) have signed a
comprehensive cooperation agreement to build a chain of service complexes for all
VinFast products. After cooperation, the scale of exploitation of VinFast's service points
will increase to more than 10,000 points, reaching 30,000 - 50,000 points nationwide by
2020. According to the agreement, at Petrolimex's petrol stations, VinFast Company will
survey to build a service system for vehicles including: charging station and battery rental
for electric vehicles; inspection, maintenance and repair stations for cars and electric motorcycles.
With VinFast's ambition, it is feasible to replace internal gasoline motorbikes for
those who regularly move in urban areas because of lower cost of use, higher technology
content, in addition to VinFast, solving the inconveniences that have been left in electric cars for a long time. II. Long-term targets
VinFast products are not only aimed at meeting the needs of Vietnamese
consumers but also conquering the world market.
Vehicle electrification is an inevitable trend of the industry as well as society, so
VinFast chooses electric motorbikes as the main product line and that's why electric
buses and electric cars are also. is the focus of VinFast's future product strategy. All
VinFast products are designed and developed with the aim of keeping up with the technology trend.
According to the MoU, Bosch Vietnam will supply parts and components to
Vinfast’s automobiles. Besides, it will advise and support Vinfast to implement software
for motorcycles and automobiles as well as business management.
Currently, VinFast is in the process of negotiating to bring our electric scooters
and cars to distribution in Southeast Asian and European markets. C. SWOT ANALYSIS I. Strengths
- Vinfast Klara are environmentally friendly
With the implemented plans and the people's awareness of the environment,
VinFast is expected to contribute to increasing the market share of electric motorcycles in
Vietnam, aiming to protect the green, clean and beautiful ecosystem.
- Vinfast Klara's European-designed appearance. 10 lOMoARcPSD|45316467
This electric motorbike has a very elegant design and gives people a sense of
lightness and courtesy. The details are designed and assembled in a very complete,
harmonious way with the modern emulsion paint color commonly seen on high-end cars.
- Vinfast Klara’s modern and trendy accessories.
Full LED lights, LCD clock, front and rear disc brake rim are the points that make
Klara A2 become preeminent. From the use of large shock absorbers to Nissin brakes
from Japan have somewhat reassured users. Klara is also designed many convenient
positions such as a slot to thread the charging cord from the trunk to the outside, this
helps the users still plug the charger and close the trunk to protect the property inside.
- The safety of electric motorbikes, solving problem when batteries run out of electricity.
VinFast knows that the key to creating consumer confidence in its products is in
revolving the safety and reliability issues. The company announced that it will join with
PV Oil and Petrolimex to implement a plan to set up 30,000 ~ 50,000 battery charge systems nationwide by 2020.
Once consumers know that they can get a fast recharge for their motorbikes
VinFast expects purchases of its bikes to increase dramatically. They also believe that
given time, that consumers will find that electric motorbikes are as safe as gas motorbikes
and that Vietnam’s younger generation, which is very environmentally conscious will fall in love with their products. II. Weaknesses
- Vinfast Klara doesn’t really complete.
Currently, Vinfast's electric vehicle ecosystem is in the development process in
both the application and the charging stations, battery exchange stations for this vehicle.
Thus, at this time, the Vinfast Klara electric motorbikes do not have a prominent
difference in accordance with the selling price as well as compared with other competitors.
- New players in consumer market
Vinfast Klara is hard to build customer’s loyalty because the electric motobike
has not been widely covered. Vinfast Klara is not the best choice for customers generally.
- More expensive than others
The selling price is relatively high compared to its competitors despite being domestically produced.
- The battery version does not stand out from the competition.
At the same structure, people tend to choose the one that have lower cost and more common. III. Opportunities
- VinFast is facing the opportunity to anticipate the future of the world, change
user habits.: Vehicles using clean energy to replace internal combustion engines are a
global trend. With the advantage of environmental protection, regardless of resources, 11 lOMoARcPSD|45316467
electric motors are widely applied, even becoming a mandatory requirement in some countries.
- High quality of Technology is applied.: What makes Klara the most confident is
that the smart technologies will be applied by VinFast on this model.
- Klara easily penetrates the Vietnamese market by the exclusive Vietnamese
brand: Vinfast has an impact on psychology: Vietnamese people use Vietnamese
products to develop a market for Klara. With the advantages of Klara, consumers will consider using it.
- Customers with young age, catch up with new trends.: With beautiful design,
good performance, high quality, users gradually change their habits and use products that benefit the environment IV. Threats
- The first challenge of VinFast is to locate the eScooter segment in the heart of
the traditional scooter segment, thereby catching the shift of demand from a popular
vehicle, and creating a direct competition with the gas engine scooter segment.
- Not only that, the Vietnamese automaker also has to deal with challenges from
two major competitors, Honda and Yamaha. With a long-standing technological
background and manufacturing experience, Honda and Yamaha easily enter the electric
motorcycle game without any barriers.
- Distribution channels and service systems are also significant challenges for
VinFast. VinFast is able to attract the agents of the two competitors is also a great
advantage, but it is not easy because these two companies are reacting to restrict their
agents from joining the VinFast system.
- The same price as traditional motorcycles of the same size and the consumption
habits and perception of Vietnamese customers. Not only facing competition from
traditional motorcycles, Klara also has to fight with flooded cheap electric cars. The
Vietnamese car brand wants to create products that exceed electric models sold in the
market, so it is necessary to change the user's mindset.
V.Strategies based on factors of SWOT
- To seize development opportunities in the market, VinFast has taken calculated
steps. They study customer psychology, dealing with problems that users often encounter
when traveling every day such as flooding and the inconvenience of charging electric cars.
- During the launch, Klara successfully performed a 30-minute immersion test of
50 cm water level. VinFast also solves the inconvenience problem when charging the car,
by arranging 30,000-50,000 charging points at sup.markets or public parking spots. This
approach is quite similar to developed countries but particularly Europe. PART 2. STRATEGY A. MARKETING STRATEGY Overview 12 lOMoARcPSD|45316467
As far as we feel, Vinfast has a very successful debut with enthusiastic reception.
With strong campaigns and strong communication on all fronts, like what VinGroup
makes for all its products, Vinfast is expected to "draw" the road to reach the world,
realizing people's dreams. Vietnam. Let's see how Vinfast's Social Media strategy has
exploded so that it can have a dream start in the market.
How VinFast has caught attention from the public?
- Create Pre-event effect for their first products line
The explosive communication effect made by Vinfast until the company
"chewed" goods in many different forms. The company's videos garnered huge attention
on the social media front with 18,959 comments. On September 30 - October 1, a series
of information about the close-up VinFast launch date was posted on social networks
attracting 41,346 discussions, this is a very large number with a communication strategy.
Information on Vinfast's Social Media strategy before launching has attracted a
lot of special attention from public opinion. Information such as Vinfast invites an
international cult star to be "spoiled" very slowly and unobtrusively, making netizens close to the launch date.
- Promote when launching the event
With its impressive presence at 2018 Paris Motor Show, the launching event of
VinFast in Paris attracted great attention with 117,913 comments on October 2. This
discussion is 3 times higher than the launch of Bphone 3 after 1 week on October 10.
Along with a Vietnamese brand, the same product is welcomed and communicated,
dubbed the pride of Vietnam. Yet the diligence and undueness made Vinfast create a
focal point and promote its strategy on the Social front.
In addition, the company also plans to launch 3 electric motorcycle models
specialized for school age children in Vietnam.
VinFast Impes and VinFast Ludo VinFast Klara
- Maintain buoyancy after launch
During the opening ceremony of its Hai Phong manufacturing plant on November
3, Vingroup's automotive branch VinFast announced the launch of its first-ever electronic 13 lOMoARcPSD|45316467
motorcycle model, named Klara. VinFast will offer the Klara in two versions: one that
runs on a lithium-ion battery, and one that runs on a conventional lead-acid battery.
The positive feedback on the terms related to
Vinfast - Vingroup and Vinfast
Buzz Volume on Vinfast brand surged significantly during the launch at the Paris
Motor Show. The company recorded 54,718 interactions on that day in a total of
1,633,815 interactions. Vingroup also soared to 9,537 interactions over the pre-launch
period of 2,410 interactions. The amount of brand feedback for this launch event
increased by 346% compared to the pre-launch, which proves a great attraction from this
strategy of "Vin's mother and daughter". - Vinfast products
The most actively discussed topics are the interior and exterior design of vehicles,
accounting for 46.94%. In addition, its products are compared with other automakers as
well as videos of social interest with 12.34%. Vietnamese goods factor is also a big plus,
users said they would support Vietnamese products (32.54%) if possible. And finally,
they said they believe in products from Vingroup (9.33%).
However, Vinfast also encountered many negative feedbacks from customers
when it had to question the quality, or "Vietnamese foreign goods", could not even
compete. But the positive rate is still the majority because this is a product that received a
lot of sympathy from Vietnamese customers.
B. MARKETING COMMUNICATION
- Identity is international
Vinfast's Social Media strategy clearly stated its ambition to join the Paris Motor
Show, which is considered the most prestigious exhibition in the world. The Paris Motor
Show keyword is the hottest keyword when referring to VinFast with 283,013 discussions.
Inviting Vietnamese cult stars to attract attention, David Beckham appeared with
Vinfast's products, making Vinfast increase its brand compared to other products in
thebmarket. The post communication campaign helps VinFast to initially build its brand
identity quite successfully when it is now known that VinFast is known as the brand of
made-in Vietnam car belonging to Vingroup. International famous event and world star is
the highlight and spread effect to promote the name of a new car company. This also
helped to lay the foundation for VinFast cars to appear in the international arena, which
proved not to be inferior to other competitors.
- Bring ethnic elements attached to products
Vinfast is very smart when the campaign reaches "touch point" of Vietnamese
customers when "national pride" is pushed to the highest. Before attacking the
international market, "taking heart" of Vietnamese customers will always be a great
advantage of domestic brands. Vinfast's Social Media did very well and evoked the pride
of Vietnamese people before entering the race to compete with the "big" from the West.
The peak is the keyword "proud", which accounts for 33,984 comments on the social 14 lOMoARcPSD|45316467
networking forum. However, "national pride" is still not enough, so that the brand has a
true foothold in the market, the key is still quality and price. If VinFast meets consumer
expectations, it will be a "big blow" for the brand. These will be optimistic first steps for
the development of the automobile manufacturing industry in Vietnam.
- Influencers is the expensive point.
If the product or the normal event is not enough to turn on this competitive market.
Vinfast really played big when inviting a series of A-list stars in Vietnam such as Miss Tieu
Vy, runner-up Hoang Thuy, model Quang Dai…. join the event. But the climax
must include the appearance of David Beckham - a world-class A-star. A variety of
communication methods and covering social media channels make VinFast a good premise for product launches. Conclusion
2018 is the year of Vingroup with the launch of a series of small brands later,
proving the potential of this group is "not just what type". Vinfast's Social media strategy
has many bright spots, and one of them is the launch event to successfully utilize utilities
from the social platform. Therefore, although it has not yet officially delivered the car to
customers, Vinfast has received a great brand coverage to customers in the domestic market at the moment. C. DISTRIBUTION STRATEGY I. Direct Selling I.1. Showroom (3S)
- Business establishments will be investing in accordance with the company's 5-
star brand identity standards, aiming to bring a synchronous and high-class experience to
customers with 3S model including: 15 lOMoARcPSD|45316467 + 1S (Sales)
+ 2S (Service and Parts provision)
+ 3S (Sales and provision of Services and Parts).
- In which, the Agent model is applied at VinFast dealers in Hanoi and Ho Chi Minh City:
+ 1S has a minimum ground area of 280m2 of frontage from 14m
+ 2S has a total area of 1,800m2 of frontage from 25m
+ 3S has a total area of agent premises from 2,000m2 or more of 25m2 frontage.
- Particularly, the 3S Agency model is applied in all provinces to bring high-class,
synchronous and consistent experiences across the country.
- 3S in the province has a frontage of 35m, an area of 2,500m2 or more.
- With more than 70 showrooms and the main agency in the country, Vinfast is
accelerating toward the goal of becoming a network that has extensive networks across Vietnam.
- In addition to opening new showrooms, VinFast will also renovate the entire
existing showroom system to give customers the same experience at all facilities. I.2. Authorized Dealer
- VinFast's dealership system is invested by VinFast's 5-star identification
standard with 3S model. The area of each agent should be at least 200 m2, and the front is 10 meters wide or more.
- The process of recruiting an authorized dealer to sell electric scooters is part of
VinFast's plan to build a nationwide distribution channel.
- Agents must be located on roads, streets that are the main traffic axis and be part
of the company's distribution system development strategy.
- List of documents to provide:
+ Portrait photo of the representative (taken in CMT style, size 9cm x 12cm).
+ Certified copy of ID card or passport of the representative.
+ Resumes of the individual and shareholders (if any) contributed capital in the business license.
+ Notarized copies of business licenses of the company & its branches (if any).
+ Audited financial statements of the company for the last 2 years.
+ Detailed report on sales, service, spare parts, or after-sales activities for the most recent year.
+ 21cm x 29.7cm (A4) photos of current business locations.
+ Information about the land plot intended to be VinFast Electric Motorcycle Authorized
Agent (Area, plan, land use right certificate or land lease contract, etc.). 16 lOMoARcPSD|45316467
+ Proposal for the total investment capital to be VinFast Electric Motorcycle Authorized
Agent (enclosed with proof of capital source).
+ Valid documents are sent by post to the following address:
System Development Department - VinFast Service and Business Joint Stock Company .
Floor 3, Building 1, Times City, 458 Minh Khai, Hai Ba Trung, Hanoi, Vietnam. E-mail: ptht@vinfast.vn.
- VinFast is expected to cooperate with capable enterprises in the motorcycle
business in Vietnam, as well as open more doors for businesses to develop and expand. In
particular, joining VinFast's network, partners will also contribute to the development of
Vietnamese brands, providing people with high quality, safe, reliable, and
environmentally friendly products. and especially in accordance with the market and customer tastes.
- Vinfast's authorized distributors built on the foundation of 3 core values "Speed
- Dedication - Responsibility". All of the Vinfast customers will be supported with the
fastest speed, 3-year home maintenance, flexible multi-channel sales with a payment
method, on-time delivery at home, 24/7 rescue on time whole city ...
- In addition, Vinfast also creates an advantage by deploying multiple charging
stations everywhere and saves costs because there are stations for free charging. In 2019,
VinFast has set up more than 400 battery changing stations in Hanoi, 450 stations in Ho
Chi Minh City and nearly 50 stations in Khanh Hoa, and is continuing to develop in other
provinces. It is expected that by the end of 2020, a total of more than 10000 battery
exchange stations will be set up nationwide.
Fig.1 : List of authorized dealer systems. II. Indirect Selling II.1 Online Website
- Customers can order online via Vinfast website: Vinfast.vn 17 lOMoARcPSD|45316467
- With dedicated and thoughtful 24/7 customer care service, Vinfast always brings the best experience to consumers.
Fig.2 : Vinfast Klara on Website
Fig.3. : Registration form to order Vinfast Klara II.2. Warranty Policy
II.2.1. Warranty content
- Warranty refers to repair, part replacement or firmware update for defects
caused by defects in materials or assembly under the condition that the product is used and properly maintained.
- Replacement details in warranty are the smallest details and components that
VinFast provides genuine spare parts at distributors.
- Warranty work is free for customers. VinFast or the Distributor is not
responsible for recalling and replacing the new product for the consumer if the 18 lOMoARcPSD|45316467
warranty can remedy the quality defects, defects of materials or manufacturers' assembly defects. II.2.2. Warranty period
- The standard warranty period for VinFast electric motorbikes is 03 years and
there is no limit to the number of kilometers from the date of retail to the customer indicated on the invoice.
- Particularly for lead acid batteries, the warranty period is 01 year and unlimited number of kilometers.
- Parts replaced under the new vehicle warranty will have the warranty period for
the remainder of the vehicle's warranty period.
II.2.3. Extended warranty
- VinFast may extend the warranty period in some special cases. Extended
warranty period will be clearly indicated on the cover page of the Warranty Book for
specific products. This type of warranty applies specifically as part of a sales promotion.
II.2.4. Summoner program
- The recall program is applied for free handling of quality and safety-related
errors for vehicles circulating on the market in accordance with the law. Recall and repair
program is applied for vehicles whose warranty period has expired.
II.2.5. Spare parts warranty
- Spare parts during repair at a VinFast Distributor at the expense of the customer
will be warranted for 01 year from the date of replacement for the customer.
- Parts purchased but not replaced at a VinFast Distributor will not be covered under the warranty policy
- To receive the spare part warranty, the customer is responsible for keeping
records such as repair orders, invoices, receipts proving that the spare parts have been
replaced by VinFast or the Distributor of VinFast Company.
II.2.6. How to get warranty repaired
- To receive free warranty repair, customer is responsible for bringing the car to
the nearest VinFast Distributor, not required to be the Distributor that the customer
purchased. For information about distributors' addresses, available products and services,
please visit website: https://xemaydien.vinfast.vn/
II.2.7. Damage caused by the following reasons is not covered by the warranty
- Damage caused by unauthorized repair / modification, alteration or
modification from original design such as change of capacity or structure, welding of
details etc, not by Distributor of VinFast proceeds. 19