New Product Development of Vin BBC | Product Management Report

lOMoAR cPSD| 47206071
MINISTRY OF EDUCATION & TRAINING HOA SEN UNIVERSITY
FACULTY OF MARKETING – COMMUNICATION GROUP REPORT
NEW PRODUCT DEVELOPMENT: THE VIN BBC Course: Product Management Semester: 2431 Class: 1241 Group: 1 Instructor: MBA. Phan Minh Tuan
Ho Chi Minh City, December 9th 2024 GROUP MEMBERS Full Name Student ID % Contribution 100 100 100 lOMoAR cPSD| 47206071 100 100 100 100 lOMoAR cPSD| 47206071 EXECUTIVE SUMMARY … lOMoAR cPSD| 47206071 TABLE OF CONTENTS 1. New Product Creation 1.1. Idea Generation 1.2. Idea Evaluation 1.3. Product Type
2. Product Innovation Charter (PIC) 2.1. Background 2.2. Focus 2.3. Goals and Objectives 2.4. Guidelines 3. New Product Process
3.1. Phase 1: Opportunity Identification and Selection
3.2. Phase 2: Concept Generation
3.3. Phase 3: Concept Evaluation 3.4. Phase 4: Development 3.5. Phase 5: Product Launch
4. Intellectual Property Registration
5. Conclusion and Recommendations 6. References TABLE OF FIGURES lOMoAR cPSD| 47206071 CONTENTS 1. New Product Creation: 1.1. Idea Generation
● Idea 1: Magic Box (Food Storage Box)
With the ability to keep hot and cold for up to 3 - 5 days, this lunch box is the ideal choice for
office lunches, picnics, or long trips. The lunch box is designed with advanced insulation
technology, ensuring food is always at the ideal temperature without using electricity. High quality
materials, safe for health, help protect the flavor and nutrients of food. ● Idea 2: SafeTrack (Pet Locator)
This product is not only a regular collar but also a smart positioning device that helps track the
exact location and send an emergency signal when your pet goes beyond the allowed radius. With
technology Advanced GPS, this collar allows you to locate your pet within a safe radius. When
that limit is exceeded, the ring will automatically send a notification to your phone, and also
integrates an emergency calling feature immediately. ● Idea 3: Vin BBC (Battery Backup Charger)
Backup battery chargers were created to solve the worry of traveling long distances but running
out of energy in a deserted place without a charging station. With compact design, environmentally
friendly components and automatic heat dissipation system, this product will bring users a more
convenient and safer experience than ever. 1.2. Idea Evaluation
To evaluate ideas effectively and accurately, we use the VRIN model to analyze our new products.
This model will include the following key elements:
● Valuable: A business's resources can only create a competitive advantage or sustainable
competitive advantage for the business when they are valuable.
● Rare: Resources must be scarce and difficult to find among competitors, otherwise the
advantage created from that resource will quickly be imitated by competitors.
● Inimitable: Resources must be difficult to imitate perfectly to ensure sustainable competitive advantage.
● Non-substitutable: Only when the characteristic of being difficult to replace can be
proven, can a resource ensure a sustainable competitive advantage for an enterprise. Idea Valuable Rare Inimitable Non-substitutable 1 lOMoAR cPSD| 47206071 Magic Box X SafeTrack X X X Vin BBC X X X X
The table above shows that "SafeTrack" and "Vin BBC" are the two ideas that achieve the highest
total when evaluating the overall factors through the VRIN model. From there, it can be concluded
that both of these new products are practical and will have more development potential than the other products.
Choosing and ranking factors ● Meet demand (25%)
The power of a new product lies in its ability to meet market needs and create exceptional value
for customers. This not only helps optimize customer value but also increases business profits.
Customers will be willing to spend money on products or services that they feel meet their needs
(NextX, 2024). This is also one of the factors that we highly appreciate at 25%. ● Differences (25%)
Product differentiation is a factor that helps distinguish the products and services of one business
from another. A differentiated product can increase brand loyalty and bring sustainability to the
brand even at a higher price. If a product is considered better in some way than its competitors,
consumers will consider it worthy of a higher price (We Win, 2023). Therefore, we evaluate this factor to account for 25%.
● Size of market (20%)
Market size determines the existence and development of brands, products, and services, especially
for businesses selling new products. The larger the market size, the higher the opportunity and
profit potential for the business (VietMoz, 2022). We evaluate this factor to account for 20%. ● Price (15%)
Product price is considered one of the factors that determine the success or failure of businesses.
Because in a competitive environment, customers can compare and choose products with suitable
prices. So product pricing is not an easy task for businesses whenever they launch a new product
or are about to launch it on the market. Pricing must meet the customer's budget while ensuring
the business's profit (Open End, 2024). Through the reasons mentioned above, we evaluate this factor to account for 15%. ● Convenience (15%)
Consumers are always looking for products that are accessible, easy to use and help save time.
Convenience not only enhances user experience but also creates a clear difference between a 2 lOMoAR cPSD| 47206071
business's products and those of its competitors. If the product meets a need quickly and simply, it
can dominate the market, even when there is fierce competition on price or quality. Therefore, we
evaluate this factor to account for 15%. SafeTrack Vin BBC Ratio Rank Mark Rank Mark Meet demand 25 4 100 4 100 Difference 15 3 45 4 60 Size of market 25 5 125 5 125 Price 15 3 45 4 60 Convenience 20 5 100 5 100 TOTAL 100 415 445 1.3. Product Type ● Opportunity
Growth of the electric car industry - The significant increase in the use of electric cars, especially
in the context of countries implementing policies to promote reduction of CO2 emissions and
transition to clean energy. This creates great opportunities for auxiliary products such as power banks. 3 lOMoAR cPSD| 47206071
Need for convenience and safety - One of the main problems that electric car drivers face is the
"worry of running out of battery" when traveling long distances. Backup chargers will help solve
this problem, bringing peace of mind to users. Especially on long trips or in areas with undeveloped
charging infrastructure, a backup charger is a very useful solution. ● Challenge
High initial investment costs - Developing a high-quality power bank product can require large
investment costs, from research and development, production, to building a distribution network and customer care.
Compatibility and technology standards - Current electric cars have different charging standards
and vehicle manufacturers may use separate charging systems. This creates complexity in
developing a backup charger product that can be compatible with many different car models. REFERENCES:
https://docs.google.com/document/d/1a62tiqbZE7qXJql6dKNY7mRy6SUfyMSdIXVhiAucx1g/ edit?tab=t.0 2.
Product Innovation Charter (PIC) 2.1. Background
a. Present the EV market trends globally and in Vietnam.
b. Highlight challenges in EV adoption, such as limited charging infrastructure.
a.Global EV Adoption Speed
The world is witnessing a quiet but powerful revolution with the explosion of electric vehicles.
According to forecasts, by 2025, about 10% of global passenger car sales wil be electric
vehicles. By 2030, this figure is expected to increase significantly to 28% of total sales, affirming
the strong trend of shifting to green transportation. Along with the market's rapid growth, the
demand for electric vehicle batteries is also skyrocketing, expected to increase by 163% from
2023 to 2027. The "giants" in the pure electric vehicle industry such as Tesla, BYD and Li Auto
are increasingly asserting their position, as their market share increased from 1% in 2020 to 7%
in just 3 years. These impressive numbers not only demonstrate the rapid growth of the electric
vehicle market but also signal a profound reform in the global auto industry.
The situation of electric vehicle adoption in Vietnam
The electric vehicle market in Vietnam is witnessing explosive growth. With an expected annual
growth rate of 22.9% in the period 2020-2025, this industry is becoming a bright spot in the
country's economic picture. The clearest evidence is that electric vehicle sales in the first 4 lOMoAR cPSD| 47206071
quarter of 2024 exceeded 10% of total car sales, which is truly an impressive figure compared to only 2.2% in 2022.
Behind this success is the Government's decisive participation. Incentive policies such as 0%
registration fee exemption from March 2022, reducing special consumption tax to 15% and
expected subsidies have created a new wave, encouraging consumers to switch to using
electric vehicles. In addition, the participation of industry giants such as VinFast and BYD has
further strengthened Vietnam's position on the world electric vehicle map. VinFast has achieved
a significant milestone with 32,000 vehicles sold in 2023 while BYD aims to expand its network
to 100 dealers by 2026. The perfect combination of supportive policies, business efforts and
increasing market demand is making Vietnam one of the most dynamical y developing electric
vehicle markets in the region.
b.A limited number of charging stations
Currently, Vietnam has about 3,000 charging stations with 150,000 charging ports, mainly
invested by VinFast and not shared with other car manufacturers. According to the
recommendation of the International Energy Agency (IEA), to meet the demand, Vietnam needs
from 100,000 to 350,000 charging stations in the next 15 years. The lack of charging stations
makes it difficult for electric vehicle users, affecting the decision to switch from gasoline vehicles to electric vehicles.
Environmental Impacts of Battery Manufacturing and Recycling
Although electric vehicles do not emit CO during use, the production and recycling of lithium-₂
ion batteries have negative environmental impacts. The mining of metals such as cobalt and
lithium is energy-intensive and poses risks to the environment and surrounding communities. In
addition, the recycling of lithium-ion batteries poses chal enges, as they are bulky and prone to
explosions if not properly disposed of. These challenges require collaboration between
governments, businesses and communities to develop charging infrastructure and address
environmental issues related to electric vehicles to accelerate the transition to sustainable transport. References: (VŨ, 23/08/2024)
https://laodong.vn/xu-huong-xe/su-phat-trien-nhanh-chong-cua-viec-ap-dung-xe-dien-o-
chauau-1383538.ldo (LAM, 02/05/2024) https://vneconomy.vn/automotive/du-bao-tang-
truong-xe-dien-toan-cau-nam-2024.htm (NGUYEN, 08/12/2023)
https://vneconomy.vn/automotive/su-thuc-ve-tinh-trang-phat-trien-xe-dien-toan-cau-dang- thenao.htm 5 lOMoAR cPSD| 47206071 (ANH, 25/05/2024)
https://tieudung.kinhtedothi.vn/xe-cong-nghe/viet-nam-dan-dau-khu-vuc-ve-tang-truong-o-
todien-79332.html (SAM, 27/05/2024)
https://giaothonghanoi.kinhtedothi.vn/thi-truong/tang-truong-o-to-dien-tai-viet-nam-o-muc- cao101296.html (QUYNH, 13-08-2024 )
https://cafef.vn/nha-nuoc-ho-tro-de-nguoi-dan-mua-xe-dien-voi-chi-phi-it-
hon188240813084445459.chn (REUTERS, 18/07/ 2024)
https://www.reuters.com/business/autos-transportation/byd-introduce-three-more-car-
modelsvietnam-market-2024-07-18/ (THƯƠNG, 06/11/2024)
https://www.erav.vn/tin-tuc/t57667/o-to-dien-o-at-ra-mat-go-nut-that-quy-hoach-tram-sac-
taiviet-nam-ra-sao-.html (NAM, 06/07/2024) https://kinhtevadubao.vn/cac-yeu-to-anh-
huong-toi-moi-truong-tu-xe-dien-29111.html
(BINH, 07/11/2023) https://daidoanket.vn/xe-dien-doi-dien-voi-bai-toan-moi-truong- 10265937.html 2.2. Focus
a. Product Name: Vin BBC (Battery Backup Charger).
b. Description of Technology: Specifically designed to meet the power needs of
modern electric vehicles, this product not only provides backup power
but also provides peace of mind for every action. With large capacity and
fast charging technology, the Backup Battery helps you easily restore power
to your vehicle in emergency situations, when you can't find the nearest charging tank. i.
EV owners, environmentally conscious consumers, and frequent travelers. Demographic: 6 lOMoAR cPSD| 47206071
● Gender: Vinfast primarily targets male customers.
● Age: The age group ranges from 25 to 50 years old.
● Income: Vinfast's customers belong to the A class income group,
with a monthly income ranging from 15 million to 150 million VND.
● Geographic Location: The focus is mainly on two major cities, Ho Chi Minh City and Hanoi. ii.
Specify age group, lifestyle, and geographic locations.
Psychographic: Vinfast's target market consists of customers who are
knowledgeable about technology, care about environmental
protection, and prefer sustainable products. Additionally, Vinfast's
target customers are individuals interested in business, enjoy
modernity, and like products that reflect status. Behavior:
Shopping Locations: Vinfast's target customers typically make
purchases directly at showrooms and often research information online beforehand.
Shopping Occasions: The target audience tends to buy products on special occasions.
Purpose of Shopping: Vinfast's customers fall under the Problem Solving group. Reference:
https://brademar.com/khach-hang-muc-tieu-cua-vinfast/#2-khach-hang-muc-tieu-cua-vinfast 2.3. Goals and Objectives
a. Define measurable objectives such as market share, sales volume, or customer satisfaction rates.
b. Link goals to VinFast’s sustainability mission.
Our goal is to become one of the leading enterprises in the field of manufacturing
and supplying backup batteries, not only to meet the growing needs of consumers 7 lOMoAR cPSD| 47206071
but also to aim for sustainable development. We are committed to providing
highquality products, integrating modern and environmentally friendly technology,
while contributing to promoting the trend of using clean energy. To realize this
vision, we have set two specific goals: First, in the first year, to achieve 10% market
share in the backup battery market in Vietnam. Second, to contribute to VinFast's
sustainable development mission by minimizing the environmental impact of
technology products. These goals will be the basis for us to build a reputable brand and develop long-term. 2.4. Guidelines
a. Highlight innovative features like portability and compatibility with various EV models. -
Flexibility and Convenience: The Vin BBC is designed for dual
use,serving as a Level 2 charger for home use and as a portable solution for
travel. This is a key advantage over traditional fixed chargers, giving users
peace of mind when traveling to areas with limited charging infrastructure. -
Support for Sustainable Living: The product not only meets
chargingneeds but also contributes to promoting clean energy use, helping
to reduce CO2 emissions and protect the environment. -
High Compatibility: The Vin BBC is compatible with a variety of
EVmodels, not limited to VinFast vehicles, making it a flexible choice for many EV users.
b. Acknowledge potential challenges (e.g., cost barriers, infrastructure requirements).
- High Initial Investment: Compared to traditional chargers, a backup
batterycharger may require a higher initial investment. This could make
users consider the balance between upfront costs and long-term benefits.
- Electrical Infrastructure Requirements: To use the Vin BBC at fullcapacity,
the home’s electrical infrastructure needs to support the necessary voltage
and amperage, especially for fast-charging functionality. This may require
electrical upgrades, adding to potential costs.
- Maintenance Needs: High-tech products like the Vin BBC may
requireregular maintenance and checks to ensure performance and safety.
Users need to be aware of maintenance requirements and may need to
contact VinFast for support if issues arise. Reference: 8 lOMoAR cPSD| 47206071 Thời điểm mua xe . 3. New Product Process 3.1.
Phase 1: Opportunity Identification and Selection
a. Analyze EV adoption trends and consumer preferences for green, tech-based products.
b. Identify gaps in the market for portable EV chargers and justify the product's relevance. 3.2.
Phase 2: Concept Generation
a. Develop 3-5 product concepts, each with distinct features (e.g., capacity, design, technology).
Table 3. Concept Generation
Concept 1: Concept: Integrated Backup Battery for VinFast Electric Vehicles Technology Form Benefit
● Lithium-ion Battery: ● Dimensions:
● Supplemental Power Utilizes a high-capacity Comparable to a Supply: Provides 9 lOMoAR cPSD| 47206071 lithium-ion battery of up to rooftop cargo box for additional power to extend 35 kWh, allowing for VinFast vehicles, the vehicle's range by 300 - multiple recharges of mobile approximately 175 x 350 km during long trips devices with 20kW charging 82 x 40 cm. without available charging power.
● Weight: Around 5 kg, stations.
● Smart Charging Circuit: ensuring minimal
● Supports Electronics: Features an intelligent impact on the vehicle's Maintains the operation of charging management overall weight and electronic devices in the system that monitors the performance. vehicle, such as lights and charging process to optimize ● Materials: displays, when no external performance and protect the Constructed from power is available. battery from overload and water-resistant and ● Ensures Safety and excessive discharge. impact-resistant
Continuity: Guarantees a
● Cooling System: Equipped composite materials, reliable power source for with an effective cooling providing safety for uninterrupted travel. system, including ventilation internal components. ● Battery Exchange fans, to maintain optimal
● Design: Streamlined
Capability: Allows for the operating temperature and design that fits snugly exchange of fully charged prevent overheating during against the vehicle's backup batteries at VinFast use, overtemperature roof, optimizing charging stations. cutoff. aerodynamics and
● High Capacity: Large
● Charging from VinFast complementing the battery capacity sufficient
Stations: Designed to charge vehicle’s overall to provide supplemental directly from dedicated aesthetics power for extended VinFast electric vehicle distances. charging stations.
● Fast and Safe Charging: Incorporates advanced charging management technology along with an effective cooling system.
Concept 2: Concept: Integrated Backup Battery for VinFast Electric Vehicles with more powerfull battery
Modified factor: Technology and Benefit Technology Form Benefit 10 lOMoAR cPSD| 47206071 The same as concept 1 but The same as concept Similar to functions with a concept 1 ● Utilizes a 45 kWh ● Optimized exterior ● Provides higher-capacity lithiumion battery, design to be backup power to extend increasing the capacity compatible with the the driving range by up compared to Concept 1. styling of VinFast to 400 km. ● Incorporates 25W fast electric vehicles. ● Fast charging capability charging technology to ● Adds a USB-C port reduces the time reduce charging time. to enable charging required to recharge the ● Adds a USB-C port to of a wider range of backup battery. enable charging of a wider devices. ● USB-C port enhances range of devices. the convenience of charging various electronic devices.
Concept : Concept: Integrated Backup Battery for VinFast Electric Vehicles with a led bar
that shows the remaining battery capacity
Modified factor: Technology and Benefit Technology Form Benefit
Same as concept 1, but integrated
The same concept 1 but has Similar to functions with a circuit board a led bar. concept 1 but the led bar can
RGB LED light shows the battery help you know how much capacity of the device battery is left. New technology:
● Control circuit board with voltage from 5 - 24v to adjust the light to suit the purpose of use.
Prior to evaluating the concept, we conducted research to identify which product
attributes are deemed most important by our target customers when purchasing
travel or camping lights. Based on the findings, we will pair the most highly rated
attributes to create a perceptual map. Following this analysis, we will select the
concept that occupies the most favorable position, which is expected to offer the
strongest competitive advantage, for further development. 11 lOMoAR cPSD| 47206071 Market Research:
Evaluate the factors by choosing one of these following levels: 1: Very unimportant 2: Not very important 3: Normal 4: Important 5: Very important
Market research result and average point Factor (1) (2) (3) (4) (5) Average point Fuel efficiency calculation 1 3 4 9 33 4.40 Fast charging feature 1 2 5 7 35 4.46 Battery durability 0 0 3 7 40 4.74 Battery capacity 2 1 4 6 37 4.50 Charging speed 2 1 4 8 35 4.46 Battery size and weight 1 1 6 6 36 4.50 Battery overcharge and 1 1 5 5 38 4.56
overheating protection features Ability to charge multiple 1 1 6 5 37 4.52 devices simultaneously Battery warranty 1 1 5 5 38 4.56 Battery shape 1 1 5 6 37 4.54 Reputable brand 1 1 5 5 38 4.56 12 lOMoAR cPSD| 47206071
From the research result "Battery durability”, “Battery overcharge and
overheating protection features”, “Battery warranty” and “Reputable
brand”are the factors that our target customers perceive the most important when
choosing a battery backup for a car. Perceptual map:
To make a perceptual map, firstly, we compare the competitive capabilities of our
three concepts to our main competitors on four factors from the research( "Battery
durability, “Battery overcharge and overheating protection features”, “Battery
warranty” and “Reputable brand”) . These brands are our strong competitors in the battery backup car. Product Image Battery Battery Reputable durability
Battery overcharge warranty brand and overheating protection features ZipCharge 500 charge Overcharge 2 years ZipCharge Go cycles protection, overtemperature cutoff BLUETIE 300 charge Limited protection, 1 year BLUETIE EB3A cycles no overtemperature cutoff Concept 1 500 charge The device has a 3 years Vinfast cycles cooling system with fans to prevent overheating overtemperature cutoff Concept 2 300 charge The fan cooling 3 years Vinfast cycles system will not be enough but will still keep the power cut off 13 lOMoAR cPSD| 47206071 Concept 3 300 charge Only stops at a 3 Years Vinfast cycles moderate level, because it has to operate in parallel between the heat of the battery and the heat of the led bar. Battery Battery Reputable brand Battery overcharge durability warranty and overheating protection features ZipCharge Go 4.8 5 1.2 3.5 BLUETIE EB3A 2.8 -1.8 -3.7 2.6 Concept 1 4.8 4.4 2.4 4 Concept 2 2.8 3.1 2.4 4 Concept 3 2.8 -1 2.4 4 14 lOMoAR cPSD| 47206071 15 lOMoAR cPSD| 47206071 Jugdment:
After analyzing all six perceptual maps, we concluded that Battery warranty and
Reputable brand features are our most competitive advantages. Specifically, our
product has the highest level of Battery warranty at 3 years, while ZipCharge Go's
is 2 years and BLUETIE EB3A's is 1 year. Our Reputable brand, the Vinfast name, 16