Marketing strategy for Vinfast VF3 in 2024 | Bài báo cáo kết thúc học phần Tiếng Anh trong kinh doanh | Trường Đại học Phenikaa

PHENIKAA UNIVERSITY
FACULTY OF ECONOMICS AND BUSINESS
THE FINAL REPORT OF THE ENGLISH BUSINESS
TOPIC: “ MARKETING STRATEGY FOR VINFAST VF3 IN 2024 .”
Instructor guides : Luong Hoang Phuong Thao Module class
: English in Business (N01) Student group : Nguy ễ n Minh Ng ọ c 22011483 ( Leader) Nguyễn Việt Hùng 22011461
Nguyễn Thị Ngọc Anh 22011242 Chu Thanh Tú 22011465 Ha Noi, June 2024
BÀI BÁO CÁO MÔN TIẾNG ANH TRONG KINH DOANH
Phiếu đánh giá mức độ tham gia làm việc nhóm
(Nhóm bàn bạc và đưa ra điểm đánh giá cho từng thành viên) Điểm nhóm ánh STT Họ tên Mã SV giá Ghi chú (Trên thang 10) 1 Nguyễn Minh Ngọc 22011483 10 2 Nguyễn Việt Hùng 22011461 10 3 Nguyễn Thị Ngọc Anh 22011242 10 4 Chu Thanh Tú 22011465 10
Điểm bài báo cáo và thuyết trình Bài báo Thuyết Tổng STT Họ tên Mã SV trình cáo (60%) (40%) iểm 1 Nguyễn Minh Ngọc 22011483 2 Nguyễn Việt Hùng 22011461 3
Nguyễn Thị Ngọc Anh 22011242 4 Chu Thanh Tú 22011465 CONTENTS
I. General Introduction About Vinfast ........................................................................ 1
1.1. Vinfast .................................................................................................................. 1
1.2. A Journey Through Time and Innovation ............................................................ 1
II. Introducing The VinFast VF3 ................................................................................. 3
2.1. Vinfast VF3 .......................................................................................................... 3
2.2. Targeted customer ................................................................................................ 4
2.3. Competitors .......................................................................................................... 5
III. Mixed Marketing Campaign (4Ps) of Vinfast VF3 ............................................... 9
3.1. Product ................................................................................................................. 9
3.2. Price ................................................................................................................... 10
3.3. Place ................................................................................................................... 11
3.4. Promotion ........................................................................................................... 12
IV. Conclusion ........................................................................................................... 13
REFERENCES ......................................................................................................... 14 LIST OF FIGURES
Figure 2. 1: Vinfast VF3 electric car model with 9 color versions ............................. 3
Figure 2. 2: Wuling Hongguang MiniEV model ......................................................... 5 LIST OF TABLES
Table 2. 1: Comparison of VinFast VF3 and Wuling Hongguang Mini EV ...............
6 Table 2. 2: Cost Comparison: VinFast VF3 Electric Car vs. Gasoline-Powered A/B
Segment Cars .............................................................................................................. 8
I. General Introduction About Vinfast 1.1. Vinfast
Established in 2017, Vinfast (Công ty Cổ phần Sản xuất và Kinh doanh
Vinfast) is a leading Vietnamese automotive and electric vehicle brand, proudly part
of Vingroup, a conglomerate founded by Mr. Phạm Nhật Vượng.
The name VINFAST is an acronym derived from the words: Việt Nam (Vietnam)
- Phong cách (Style) - An toàn (Safety) - Sáng tạo (Creativity) - Tiên phong
(Pioneering), embodying the essence of a Vietnamese automotive brand. It reflects
the company's aspiration to modernize Vietnam's manufacturing industry and pioneer
the development of automobiles. Vinfast, along with its parent company Vingroup, is
committed to driving economic growth and national pride, carrying the Vietnamese
spirit to the global automotive stage with its slogan, "Vinfast: Vietnamese Passion, Global Ambition."
The Vinfast logo is inspired by the letter "V," representing Vietnam, Vingroup,
and VinFast. It also symbolizes Victory.
Vinfast's vision is to become a global leader in smart electric vehicles, driving
the revolution towards a sustainable future.
VinFast's mission: For a greener future for everyone.
Our brand philosophy: Customer-centric, Vinfast continuously innovates to
create premium products and exceptional experiences for all.
1.2. A Journey Through Time and Innovation
VinFast, a Vietnamese automotive pioneer, has established itself as a global
player within a remarkable six-year span. Since its inception in 2017, VinFast has
consistently demonstrated its commitment to innovation, quality, and customer
satisfaction, rapidly ascending to the forefront of the automotive industry.
Key milestones in VinFast's remarkable journey include: •
2017: Groundbreaking of the VinFast manufacturing complex in Hai Phong, Vietnam. 1 •
2018: Unveiling of the Lux A2.0 and Lux SA2.0 sedan and SUV models at the Paris Motor Show. •
2019: Commencement of VinFast Fadil hatchback deliveries, with 561
units handed over to customers within just three days of launch. •
2019: Recognition of VinFast's dedication to safety with the ASEAN NCAP award. •
2020: Introduction of the limited-edition President luxury sedan,
exclusively for the Vietnamese market. •
2021: VinFast's automotive excellence further validated with the Grandprix
Asian Awards 2020 ASEAN NCAP Grandprix. •
2021: Launch of VinFast's first electric vehicle, the VF e34, marking a
pivotal step towards sustainable mobility. •
2021: VinFast Fadil hatchback secures the top spot among best-selling vehicles in Vietnam. •
2021: Inauguration of Vietnam's first smart electric bus route at Vinhomes
Ocean Park, paving the way for a greener future. •
2021: Unveiling of the VFe35 and VFe36 (VF 8 and VF 9) electric SUV
models at the VinFast Global EV Launch Event in the United States. •
2022: Bold transition to an all-electric vehicle portfolio, marking a
significant step towards a sustainable future. •
2022: Historic delivery of VinFast VF 8 electric SUVs to customers in the
US, Canada, and Europe, solidifying the company's global presence.
VinFast's remarkable achievements are a testament to its unwavering
commitment to innovation, quality, and customer satisfaction. The company's rapid
ascent to global prominence serves as an inspiration to aspiring businesses worldwide,
demonstrating the potential for Vietnamese brands to excel on the international stage. 2
II. Introducing The VinFast VF3
2.1. Vinfast VF3
The VinFast VF3 is an affordable yet stylish and practical car from VinFast, the
first electric vehicle brand in Vietnam and Southeast Asia. With its modern design and
powerful engine, the VF3 offers users an excellent and comfortable driving experience.
Figure 2. 1: Vinfast VF3 electric car model with 9 color versions (Source: Vinfast)
In terms of design, the VF3 boasts a sporty and stylish appearance, featuring
sharp and powerful lines. The vehicle's size is also well-proportioned, not too large
but not too small, creating a sense of balance and harmony. Inside, the cabin is
spacious and comfortable, equipped with modern amenities such as a touchscreen
display, a high-quality sound system, and advanced safety features.
The VF3's engine is another notable aspect. The car is equipped with a powerful
and fuel-efficient engine, enabling smooth and economical operation. The suspension 3
and powertrain have also been improved, providing stability and good handling on all terrains.
Additionally, the VF3 comes with a host of advanced safety features, including
ABS brakes, electronic balance control, hill start assist, collision warning, and
parking assist. These features enhance safety and confidence when using the vehicle.
The VinFast VF3 is an excellent choice for those who appreciate luxury, comfort,
and performance. With its sleek design, advanced technology, and excellent handling,
the VF3 promises to deliver exceptional and memorable driving experiences for its users.
2.2. Targeted customer
VinFast targets a diverse range of customers, encompassing individuals and
families who prioritize style, affordability, and practicality. The company's customer segments include:
Owners of premium motorcycles: These individuals and families typically own
high-end motorcycles like SH, Vespa, or even Lead and SH Mode. These vehicles
often serve as secondary or tertiary modes of transportation, reflecting a desire for
status or self-expression rather than daily necessity. The VF3 presents an attractive
option due to its competitive pricing, particularly for those with one or two regular
occupants and primarily city-based usage.
Young professionals aged 25-30: This demographic values fashion and a
youthful, energetic lifestyle. The VF3's stylish and modern design resonates with this
segment's preferences, making it an ideal choice for those seeking a vehicle that reflects their personality.
Office workers commuting daily: This segment requires a reliable and
presentable vehicle for daily commutes. The VF3 strikes the perfect balance between
functionality and style, catering to the needs of office workers seeking a comfortable
and stylish mode of transportation. 4
2.3. Competitors Direct competitors
Within the Vietnamese automotive market, the Wuling Hongguang MiniEV
emerges as a primary competitor to the VinFast VF3. Priced between VND 245
million and VND 306 million on-road, the MiniEV offers a more affordable option
compared to the VF3, which falls within a range approximately VND 20 million to VND 30 million higher.
Despite its lower price point, the MiniEV has not garnered the same level of
public acclaim as the VF3. The MiniEV's unconventional design and the growing
trend towards electric vehicles have primarily attracted a younger demographic to the Wuling brand.
Figure 2. 2: Wuling Hongguang MiniEV model
Table 2. 1:Comparison of VinFast VF3 and Wuling Hongguang Mini EV Wuling Hongguang Mini Feature VinFast VF3 EV 5 Price (excluding Starts at 240 million VND battery) 159 – 239 million VND (excluding battery) Dimensions (Length x Width x Height) 3.190 x 1.679 x 1.622 mm 2.917 x 1.493 x 1.621 mm Wheelbase 2.075 mm 1.940 mm Ground Clearance 180 mm 120 mm Seating Capacity 4 4 Motor Electric motor, torque 110
Electric motor, torque 110 – Nm 130 Nm Range per Charge 210 km (~130 miles) 170 km (~106 miles) LFP battery, 9,2 kWh – 13,5 Battery System LFP battery, 19,2 kWh kWh Charging Time 30 minutes (fast charging) 6 hours (slow charging) Electricity Consumption 9,6 kWh/100 km 16.1 kWh/100 km Safety Features
ABS, EBD, BA, ESC, HSA ABS, EBD Comfort Features 8-inch touchscreen, Bluetooth connectivity, Radio, AM/FM, Rearview Apple CarPlay/Android camera, Manual air Auto, Smart key, Automatic conditioning climate control
While the Wuling offers a lower upfront price point, approximately 20-30
million VND less than the VF3, a closer examination reveals that the VF3 presents a
more compelling overall value proposition. 6
Indirect Competitors: Used Petrol Vehicles
VinFast VF3 faces indirect competition from used petrol vehicles in the A/B
segment, particularly models from 2015 to 2017 such as Kia Morning, Hyundai i10,
Toyota Vios, Hyundai Accent, Honda City, and Nissan Almera. These vehicles offer
advantages in terms of cabin space and perceived reliability due to their proven track
record. Additionally, they boast high resale values in the used car market. However,
these advantages come at the cost of significantly higher operating expenses,
including fuel and maintenance costs, which can become a burden for low-income buyers.
The target audience for used petrol vehicles primarily comprises individuals
aged 45 and above. This demographic prioritizes traditional car designs and adheres
to conventional automotive perceptions. 7
Table 2. 2:Cost Comparison: VinFast VF3 Electric Car vs.
GasolinePowered A/B Segment Cars Feature VinFast VF3 Gasoline A/B Segment Cars
Price (excluding battery)
Starts at 240 million VND 300 - 600 million VND Battery Rental Fee (monthly) 990.000 VND (~$43) -
Price (including battery)
Starts at 322 million VND 300 - 600 million VND
Driving Range per Charge 210 km -
Electricity/Fuel Cost per km 1.470 VND (~$0.06) 6.000 – 8.000 VND
Regular Maintenance Cost 1-2 million VND per 1-2 million VN per service service Repair Cost Similar Similar Total Initial Cost 270 - 280 million VND 330 - 660 million VND
Total Operational Cost 2.000 – 3.000 VND per km 8.000 - 10.000 VND per km Total Ownership Cost for 5 Years (assuming 10,000 km/year) 470 - 530 million VND 730 - 930 million VND
The VF3 electric vehicle boasts significantly lower operating costs compared to
gasoline-powered A/B segment cars, with savings of approximately 500,000 VND
per month (equivalent to around 15%). This advantage stems from reduced fuel
expenses and maintenance costs. However, users should be aware of potential range
anxiety, as charging times may differ from refueling times for gasoline vehicles. To
optimize the driving experience, users are encouraged to adopt a charging pattern
similar to their smartphone usage: "drive during the day, charge at 8 night."
III. Mixed Marketing Campaign (4Ps) of Vinfast VF3 3.1. Product
Despite its Minicar classification, the VinFast VF3 is considered by industry
experts to encroach upon the A segment, earning it the title of a "slightly modest
Minicar." The Vietnamese mass market seeks affordability, functionality, and style,
and the VF3 delivers on all three fronts.
With a maximum range of 210 km per charge, the VF3 adequately caters to daily
commuting needs within city limits.
Design: The VF3 exudes a youthful and stylish persona, available in a variety of
colors and variants. While slightly smaller than the Morning and Fadil, its interior
space is comparable, positioning it as a potential replacement for the Fadil.
Features: Safety features include multiple airbags, blind spot warning, ABS
brakes, and essential sensors, matching those found in higher-segment vehicles.
Additionally, the VF3 boasts an 8-inch touchscreen, Bluetooth connectivity, Apple
CarPlay/Android Auto, smart key, automatic air conditioning, a sunroof, and 16inch
alloy wheels. These larger wheels enhance safety and reduce the risk of rollovers
during cornering compared to other Minicar rivals.
Furthermore, as a pioneer in promoting the electric vehicle industry, VinFast has
established a comprehensive network of charging stations spanning 63 provinces and
cities. This extensive network ensures convenient charging for customers anytime,
anywhere, eliminating range anxiety.
The VF3 emerges as a vehicle that delivers exceptional value for money,
particularly for those with regular one or two occupants and primarily city-based usage. 9 3.2. Price
As per official announcements, the 2024 VinFast VF3 is priced as follows:
• Battery rental option: VND 235 million
• Battery purchase option: VND 315 million
These prices are equivalent to approximately 2-3 high-end SH scooters, making
the VF3 accessible to middle-income and affluent households in Vietnam. The
widespread popularity of SH scooters indicates a substantial potential customer base
for the VF3. VinFast Chairman Phạm Nhật Vượng has expressed his ambition to make
the VF3 affordable for ordinary working people, an achievable goal with the
assistance of bank installment plans.
Customers purchasing the VF3 can choose from two attractive financing options:
• 8-year installment plan with preferential interest rates:
- 2-year initial interest rate: 5% per annum
- Subsequent 3-year interest rate: 8% per annum
- Final 3-year interest rate: 9.5% per annum
• Direct discount of 4% deducted from the selling price:
- VF3 battery rental option: VND 9.6 million discount
- VF3 battery purchase option: VND 12.88 million discount
Battery rental plans: The VF3 offers battery rental plans ranging from VND
900,000 to VND 2,000,000 per month, tailored to individual driving needs. These
rental fees are considered reasonable for car ownership.
Maintenance and repair costs: With an extensive network of service centers,
maintenance and repair costs for the VF3 are expected to be affordable.
Charging costs: While VinFast boasts a comprehensive charging station network,
it is anticipated that most VF3 users will primarily charge their vehicles at home. 10
Charging stations will likely be utilized in metropolitan areas where home charging
is impractical or during emergencies.
Warranty: The VF3 comes with a comprehensive warranty package:
• 7-year warranty for the electronic system
• 5-year warranty for the chassis
• 4-year warranty for the high-voltage battery 3.3. Place
VinFast's comprehensive distribution network ensures convenient access and
purchase of the VF3 for customers across the nation.
Expansive Showroom and Dealer Network: A robust network of dealerships
throughout Vietnam facilitates easy access for customers to experience and purchase the VF3.
Online Sales Channel: VinFast also offers an online sales channel for the VF3,
enabling customers to make purchases from the comfort of their homes.
Test Drive Experience: VinFast provides complimentary test drives for the VF3,
allowing potential buyers to experience the vehicle firsthand. Customers can register
for test drives on the company's website and visit their nearest showroom for a
practical and unbiased assessment before making a purchase decision.
Furthermore, VinFast stands out in terms of distribution with its unique advantages:
Extensive Service and Repair Network: VinFast boasts a comprehensive
24/7 Roadside Assistance and Mobile Repair Services: VinFast leads the
Vietnamese automotive industry with its 24/7 roadside assistance and mobile repair
services, providing peace of mind to vehicle owners. 11
Extended Service Hours: VinFast's service centers operate extended hours,
catering to the needs of customers who are unable to visit during regular business hours. 3.4. Promotion
Word-of-Mouth Marketing
Leveraging Social Media Buzz: Even before its official launch, the VF3
garnered significant public attention due to its alignment with the "delicious -
nutritious - affordable" concept. According to BuzzMetrics, a leading social media
and e-commerce data research firm, the VF3 ranked among the top 4 most discussed
topics on online platforms during May 9-15 (the period when Vinfast opened pre- orders for the VF3).
Events and Experiential Marketing •
Official Unveiling: VinFast formally introduced the VF3 to domestic
customers at the "Vinfast - For a Green Future" exhibition on July 7, 2023, in Hanoi.
Subsequently, Vinfast selected CES 2024 as the global launch platform for the VF3 electric vehicle line. •
Test Drive and Experience Events: These events provided participants with
opportunities to test drive the VF3, learn additional safe driving skills, receive
feedback from instructors, and earn rewards.
Communication and Advertising Campaigns •
Social Media Focus: VinFast prioritized social media marketing, increasing
seeding efforts on Facebook forums, Instagram, YouTube, and major news outlets like Brand Vietnam and VnExpress. 12 •
Influencer Marketing: VinFast collaborated with popular Instagram
influencers, TikTokers, and YouTubers to promote the brand and establish customer trust. •
National Pride Appeal: VinFast capitalized on national pride by
emphasizing that the VF3 is one of the first Vietnamese-made and -produced electric
vehicles to be launched on an international stage like CES, the world's largest
consumer technology event. This strategy resonated with customers, encouraging
them to prioritize a Vietnamese-branded product. Sales Promotions •
Aggressive Pricing Strategies: VinFast implemented bold sales policies,
allowing customers to place a deposit of only VND 15 million and enjoy special
pricing: VND 235 million for battery rental (VND 5 million lower than the official
price) and VND 315 million for battery purchase (VND 7 million lower than the
official price). In addition to these preferential prices, customers received free choices
of premium exterior colors (worth VND 8 million). •
E-commerce Platform Sales: VinFast listed the VF3 on the e-commerce
platform Tiktokshop, conducting livestream sales in collaboration with young and
popular KOCs and KOLs. This strategy proved highly effective, with over 50% of
VF3 orders originating from online platforms – a remarkable achievement for a high-
value product like an automobile. IV. Conclusion
The launch of the VinFast VF3 electric car has generated significant buzz in both
the domestic and international markets, reflecting VinFast's commitment and
determination to expand its global presence and pursue ambitious growth plans. This
achievement not only instills pride in Vietnamese consumers but also serves as a
testament to the nation's capability to produce world-class products. 13
Leveraging comprehensive market research, competitor analysis, and the VF3's
unique selling points, including its intelligent features, modern design, youthful
appeal, affordability, and diverse variants, VinFast developed and implemented an
effective marketing strategy. This strategy has proven instrumental in propelling the
VF3 to remarkable success in the Vietnamese market and contributing to the
advancement of Vietnam's electric vehicle industry.
The VF3's success is attributed to VinFast's effective implementation of the 4P
marketing mix – product, price, place, and promotion. This comprehensive approach
has not only driven a shift from motorbikes to electric cars among Vietnamese
consumers but also paved the way for a greener and cleaner transportation future.
VinFast's commitment to environmental protection and sustainable development is
evident in its dedication to promoting electric vehicles. REFERENCES
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