VinFast's 4Ps Marketing Strategy Analysis | Nguyên Lý Marketing | Đại học Tôn Đức Thắng
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Abstract
One of the main challenges for retailers is to find the right balance between product and price to
create a customer-centric purchasing experience. With the right promotion and place, customers will
be attracted to a store or site – but if they don’t have a good product at a competitive price, they’ll go
elsewhere. These four components best describe The 4Ps Marketing Model, also known as the
marketing mix or marketing program, consists of the product itself, pricing, promotion, and place.
These four elements combine to create a complete marketing strategy for a business. For those
important insights, our team decided to solve this case of Vinfast based on the 4Ps marketing
principle. According to the listed objectives in the case of Vinfast, we categorized them into internal
problems and external problem as below:
● Price (Product Positioning)
● Place (Distribution & Logistics)
● Promotion (Partnership, Promotion & Sale)
● Product (Branding, Customer Experience)
1. Price – Product Positioning
The two Vinfast EV models being considered for the U.S. market include the midsize sports utility
vehicle (SUV) VF e35 and full-size SUV VF e36. According to our team research, we found out that
these two models could be compared with several EV models from other manufacturers as below.
One of the advantages of the two models introduced to the US market is the distance range up to 310
miles in VF e35 and 340 miles in VF e36. Therefore, this is such a competitive selling point besides
the highlights of the interior and exterior towards the characteristics of other models in the markets
at different segments of price. [bang so sanh gia va range
https://www.caranddriver.com/shopping-advice/g32463239/new-ev-models-us/ ]
With the ambition of entry into the US market, VinFast VF e35 has to face many competitors, most
specifically Tesla Model Y. Unlike Tesla Model Y, VF e35 focuses more on the design that brings
SUV style with graceful curves and signature lighting that all lines radiate from the logo.
Additionally, instead of the dashboard behind the steering wheel, VF e35 has a wide and symmetric
instrument panel integrated AI Personal Voice Assistant and creates a competitive advantage with
the heads-up display on the HUD. Overall, the car driver's compartment is considered to be closer to
customers, especially those who change from internal combustion engine vehicles, than the rival 1
model. In addition to outstanding features like VF e35, VF e36 has the most spacious and
comfortable interior as well as a unique combination of the masculine and sleek exterior, which is a
necessary condition for American customers.
Through customer experience of the EV market, there are several questions related to safety and
maintenance. The battery is located on the floor to limit the risk of rollover accidents. Apart from
that, thanks to the smart in-car operating system, new car models have higher safety than gasoline
engine vehicles on the market. Maintenance costs are equivalent to 25%-30% compared to models that attract customers.
Based on opinions and reviews from customers, long-term battery life is considered a major barrier
in deciding to buy an electric vehicle. Therefore, through an announcement, we know that Vin
Group will offer a battery leasing scheme that can reduce around 30% of the production costs of the
business, lower the vehicle purchase price for consumers, and diminish the risk of an expensive battery replacement.
The America EVs market size was estimated at USD 12.80 billion in 2020 and is expected to reach
USD 16.13 billion in 2021. Furthermore, the estimate of EV production in 2025 is 1.18 million
units. VinFast has set an aggressive sales goal of capturing at least 1% of the U.S. automotive
market by 2025, so based on these statistics, let’s say Vinfast is aiming for roughly USD 161.30
million. Breaking it down in units, Vinfast is basically aiming for the goal of 11,800 units sold in
order to reach their goal of 1%. This means that the sales KPI for Vinfast from 2022 to 2025 is 2950
units for each year. This KPI is totally achievable if Vinfast has the right marketing strategy for the right target customer. 2
Figure 1.1. Expected BEV production in the U.S (2021-2030)
By locating the first showroom of Vinfast in California, our team suggest Vinfast to set their eyes
on the Vietnamese American as a target consumer. The brand could definitely using our
Vietnamese famous quote “Vietnamese people support Vietnamese product” for the marketing
campaign. The community of Asian American in general and Vietnamese American is specific is
the potential market segment Vinfast should aim for since they can share the same background and story.
Figure 1.2. Split of PEV buyers based on ethnicity 3
Based on our research, demand for electric vehicles (EVs) is driven by two key factors:
● Cost of fossil fuels (gasoline): half of US adults consider gas prices to be ‘too
high’ when it reaches $3.44 per gallon. 90% believe gas is too high when the
price reaches $4.00 per gallon.
● Desire to lower carbon footprint: Eco-friendly consumers may purchase pure
electric or hybrid gas/electric automobiles. This type of demand is less elastic,
meaning it does not change with the cost of fuel.
It is said that Vinfast will allow customers to lease batteries, which could reduce the upfront price
of an EV, reduce 30% of EV production costs and we believe that this could also be a unique
selling point of this brand. Hence, Vinfast should emphasize this point in their marketing campaign.
2. Place - Distribution & Logistics
For the manufacturing plan, we believe that Vinfast will follow the Just-In-Time Manufacturing
method just like other players in the market. This method is an efficient way of making sure that
any car that has been ordered is delivered to the customer as soon as possible; the car is built in
the shortest period of time that’s feasible. The way that this is achieved is by taking care to follow
the guidelines of the Just-In-Time process. There are specific characteristics that identify the Just-
In-Time process, these include:
● Flow manufacturing – ensuring that machines are used efficiently and making sure that
there is continuity in the production process makes the end output possible
● Uninterrupted stream of goods – making sure that there is no delay in the supply of goods
and that there are no delays in the process are important
● Collaboration with suppliers – all suppliers have an influence on production and process
quality. The success of the process is dependent upon all parties working well together
● Involvement of employees – explaining the process and its importance to employees is
vital. Without their buy-in the process will not work properly or efficiently
● Continuous process and quality improvement – JIT can only work successfully if the
process is continuously evaluated and all problems managed effectively. Continual
monitoring benefits quality and effectiveness. 4
Figure 2.1. Just In Time manufacturing process
We found out that the storing issue Vinfast might have to face is that cars are very low margin
products and if they are found to be in a manufacturer inventory for a period of time, they will
depreciate in value because customers will not be willing to pay as much. Hence, car
manufacturers always try to match the demand of their vehicles to the levels of production. That
doesn’t always work in practice (the 2008 recession saw a big collapse in the sales of cars), but it
is an example. In order to avoid over-capacity and overproduction for fear of having unsold
inventory, we believe that Vinfast should also pay high attention to demand forecasting.
As the production capacity is limited in the automobile factories, and the sales of cars are not
stable during the year, it is important to have forecasts spread over a given period. Stocks are then
built up when there is a strong demand for cars, and a minimization of the quantity of stock is
undertaken during periods of downturn. This allows good control of the cost of inventory management in this period:
● Active demand forecasting: suitable demand forecasting method for sectors such as the
automotive industry with significant growth plans in terms of products portfolio,
marketing activities and expansion. It takes also into consideration of competitors and the overall economic environment:
o Short-term demand forecasting: covers generally a period from 3 - 12 months,
it focuses on the seasonal pattern of demand to make necessary adjustments to the 5 internal production system.
o Medium and long-term demand forecasting: concerns periods longer than 12
months, it drives the business strategy in terms of budgeting, planning, sales, marketing, finance etc.
Vinfast has already set their eyes on placing their first showroom in California, which now has
roughly 22,000 charging stations. This summer, Environment California launched a new
campaign to convince California to commit to reaching 1 million installed EV charging stations
across the state by 2030. California is such an ideal place for Vinfast to kick start their project.
The reason is that the political environment of Cali in terms of ease and level of taxation for EV
is an ideal one. However, the point we would like to highlight over here is that we concentrate
California at the first focus location to test and try our model and plan. We ultimately utilize the
community advancement: Vietnamese American, Asian community that could share a similar
story and value so that we can approach our customers easier in comparison with other states in
the U.S. And also the impact of California in creating our brand awareness.
After opening a first showroom in California, Michelle’s team’s biggest challenge in distribution
& logistics is to decide where next to open showrooms and what other logistical support they will
need in order to ensure U.S. customers that their car will be delivered and supported. We
recommend New York/ Boston as these cities are having rising numbers in public charging
stations. In NYC, there are currently about 6,500 charging plugs across the state. NYC is
planning to install 120 more of Level 2 charging ports at curbside locations across the five
boroughs. The chargers will be in place for four years as part of a demonstration project, which
will include an evaluation period. Installation of the Level 2 chargers began in June 2021. As of
22nd October 2021, 50 Curbside Level 2 Chargers are installed and available for use. Additional
locations will be installed in coming weeks. The city of Boston-Cambridge-Newton in
Massachusetts has 2,162 public charging stations, 193 of which are free EV charging stations.
Besides, the Vietnamese community in these cities is roughly 25,500 people in 2020 (13,864 in
NYC and 11,614 in Boston). If the marketing campaign succeeds in California, we believe it will
go the same for these locations. In addition, choosing California and Boston not only because of
the increasing charging station coverage but also gives customers a sense of psychological
understanding when strengthening areas with a dense population of Vietnamese Americans in
particular and Asian Americans in general.
[After-sale service and support] In terms of after-sales service and support, we understand that 6
VinFast wants to develop the brand image of thoughtfulness through deciding to sell online
directly and exhibit products in main showrooms instead of conventional retailers. Therefore,
apart from creating a customer relationship management (CRM) software that we will deeply
discuss in Customer experience (page …), we suggest that VinFast should consider building a
vehicle inspection system and creating a car exchange program when the increasing demand in
used cars market has many fluctuations. After verifying based on the digital valuation, used cars
are assessed so customers can decide whether to sell the car for the VinFast system. These cars
could be sold to customers with a lower budget or reused components to serve the production of
new cars. Although this work is sporadic and requires a number of costs for technologies as well
as labor forces, customers can be impressed and improve their belief in the policies of
understanding and protecting customers. This act, additionally, could help retain loyal customers
and stimulate their decision to purchase state-of-the-art models of Vinfast in the future. Plus, the
suggestion ensures not only that all the products of Vinfast in the market still maintain superior
quality but also meet many kinds of customer segments with different budgets.
3. Promotion - Partnership, Promotion & Sale
Promotion and advertisement can be done through various channels. But with a partnership, a site
can reach out to its customers more easily and promote its products or services to them in a more
genuine way. Beside these marketing strategies: social media post, print, broadcast, direct mail,
phone, and outdoor advertising like billboards, we recommend Vinfast doing their campaign
through partnership & sponsorship. We believe cooperating with other local showrooms, garages,
traditional & modern dealers could help Vinfast to gain a market share and awareness of their brand:
● Partnerships help Vinfast promote their products and services to a wider audience.
● It is also an opportunity to get new customers and build the network of Vinfast.
● It can bring Vinfast more profits by working with different companies or exchanging resources.
There are four ways for Vinast to engage in promotion by business cooperation: advertising,
events, public relations and word of mouth.
In India, leading vehicle manufacturers are collaborating with banks and non-banking financial
companies to offer attractive financing schemes to customers and boost retail sales. A prospective
customer may choose to pay significantly low installments for the initial few months and then 7
subsequently increase the payable amount at a predefined rate. Customers will also have the
option to start paying the first instalment after a period of 90 days or in some cases even next
year. The Delhi-based car maker has also collaborated with banks to fund 100% of the onroad
amount for vehicles. Recently, the company partnered with the Cholamandalam Investment and
Finance Company Ltd, a non-banking finance company, to offer schemes wherein customers
would not have to pay installments for the first two months. Vinfast could completely refer to this
solution to apply in their market expansion campaign to boost their retail sales.
To ensure business continuity during times of extreme change and help position Vinfast’s
organization for long-term growth, here are three ways they can increase the resilience of their
supply chain and B2B networks:
● Automate supplier onboarding: One major reason companies can’t adapt adequately
enough is because they can’t find and integrate the right suppliers in a timely manner.
Vinfast needs to ensure that suppliers and partners can be well-vetted, integrated, and
quickly onboarded to the network. Solutions that automate vetting and onboarding can
get suppliers online up to 75% faster. Those weeks and months saved, across hundreds of
relationships, can be used for other innovative, value-driven work.
● Increase flexibility and efficiency of B2B collaboration: Auto manufacturers manage
an increasingly complex, multi-enterprise ecosystem, but it’s typically overwhelmed by
disparate systems and disconnected processes. To compete in today’s hyper-connected
global economy, Vinfast needs to digitize and automate connectivity as much as
technology will permit. In the process, they’ll streamline and simplify complex processes.
Having real-time, digitally-connected relationships with the suppliers that matter most to
their business is essential to remain competitive. Modern business networks, whether on
cloud, hybrid-cloud or even on premises, can provide those fast, real-time, digital
connections and communications required to optimize the value Vinfast gets out of their
supplier base. The supplier base can help Vinfast break down walls and silos between
organizations, streamline processes, and enable the bi-directional flow of data and
information. Clear and quick communication and data exchange are the lifeblood of
collaborative supplier relationships.
● Modernize technology: Most automakers have a patchwork of supply chain and B2B
network technologies that were never designed for today’s dynamic environment. That’s
why focusing on modernizing Vinfast’s B2B network offers so much upside, like gaining
the scalability and agility to keep pace with changing business and technology needs. 8
4. Product - Branding, Customer Experience
Draft: Asian-inspired high-touch customer service, tangible and intangible elements of the
showroom and after-sales service, How can they consistently deliver an experience that is beyond
what customers expect when buying and servicing a vehicle? (he thong hoa thong tin khach hang), CRM.
Both Vingroup and VinFast are lesser known names in the U.S. market and most of the rest of the
world. Therefore, a branding activities we propose to Vinfast is roaming test drives. Any
customer in the U.S can now try out a Vinfast EV from wherever they are. When the car arrives,
they can choose to ride solo or in the company of our sales representative. This activity could
satisfy both branding & customer experience challenges. In the automotive market, Volkswagen
has already done this and in fact, they’ve already received a plethora of positive reactions from
the customers. Another branding idea we would like to propose is that Vinfast could do a roadtrip
show across the U.S. with their EVs and at each stop of the journey, Vinfast could let people
register for their short dive experience. In order to make this roadtrip program succeed, Vinfast
needs to make sure they work well on other marketing strategies such as social media and broadcasts.
Battery replacement is one of the concerning problems in this topic, hence, as other car
manufacturers that also have the EV production in the US market, they could have developed the
car options and design, speed, distance. However, what would it be after the battery is outdated
and expired. Sustainability is also one of the rising problems and Vinfast could pick up this point
to think about developing the unique selling point of their EV - the rental service for their battery.
It is suggested that Vinfast could multiply this model and cooperate with other car manufacturers
in the EV industry. This could highlight the reputation, position and sustainability credibility of Vinfast in the US market.
2022: INTRO TERM - Gain marketing 9 ● Branding: -
Customer segmentation: Vietnamese American - Asian American =>
potential leading customer (share the same story, have same background,
“VNese support VN product”) -
Survey brand awareness ( phỏng vấn độ nhận diện thương hiệu của ng dân
Cali- 50 người [20 - 65t] ở 10 thành phố trong tiêu bang Cali) -> đánh giá
đc tình hình sơ bộ + đánh giá bản tin quảng cáo trên CNN +
Top 10 cities có nhiều ng Việt (theo Wiki): San Jose, Garden Grove, San
Diego, Westminster, Santa Ana, Los Angeles, Anaheim, San Francisco, Fountain Valley, Milpitas +
Channel: YouTube Survey as advertisement + interview survey (đầu năm) +
Khảo sát thị trường cụ thể (cuối năm) -> đánh giá tính hiệu quả của các chiến dịch -
Road trip series - 15 eps (đi vòng quanh nước mỹ ~3 states/1 eps) - quay 4 tháng +
Channel: Youtube + Netflix (evidence về độ phủ) +
aim: độ bền pin xe, thực tế 1 lần sạc đi đc bao xa, độ phủ các trạm sạc,
promo ở các trạm sạc (free coffee, %dis motel/hotel,...) -
Sử dụng KOL để quảng bá sp (vd: Johnny Dang, Khoa Pug, Vương Phạm,
Chipu, Jenny Huynh, Hoyer family vlog, RiceGum,...) - rental program for
battery(USP), reduce 30% of EV production costs. It is suggested that
Vinfast could multiply this model and cooperate with other car
manufacturers in the EV industry.
+ aim: tiếp cận KH ở 20-65t - Virtual Showroom -
On-site Showroom (design mang tính châu á, suggested locations: San
Jose, Orange, San Diego,Sacramento| Asian-inspired high-touch customer
service - detailed and caring, Asian featured drinks & snacks, smelling - mùi gì đó rất châu á) -
After-sale service: solution cho after-sale service or support locations
+ tangible/intangible elements of after-sale service ● Supply chains - logistics: -
Key logistics ports and channels -
Book chạy thử xe thông qua Lazada/ virtual showroom (customer experience)
+ (https://www.lazada.sg/volkswagen/?q=All-
Products&langFlag=en&from=wangpu&lang=en&pageTypeId=2) 10
+ các hãng xe khác cũng có account ecommerce lazada, khi khách
hàng click xem xe của các hãng khác, trang thương mại điện tử sẽ
suggest những sản phẩm tương tự - Vinfast sẽ tăng cơ hội tiếp cận
khách hàng thông qua đối thủ. -
Vinfast already built a good network in manufacturing partners
(https://www.reuters.com/article/us-foxconn-vinfast-electric-exclusive- idUSKBN2BB0JH)
______________________________________________ 2023: GROWTH - ● Sales + Promotion: -
Set KPI plan: (chưa tìm đc số liệu) -
Phai tiep can bao nhieu khach hang de dat duoc KPI -
HR : tuyển bao nhiêu nhân sự cho bộ phận sale ở mỗi showroom -
Showroom ở Boston, Massachusetts/ New York City (định hình phong
thái làm việc theo chuẩn thống nhất ở tất cả các showroom)
+ Quy trình: bảo vệ - parking - người hướng dẫn - thủ tục mua xe, 11
hợp đồng - phong thái phục vụ - nghiệp vụ sale - Promotion:
+ Partnership: In India, leading vehicle manufacturers are
collaborating with banks and non-banking financial companies to
offer attractive financing schemes to customers and boost retail sales + Customer Experience: -
Roaming showroom through California, Boston, New York
City, Seattle, Oregon (portland) -
After-sale service: Chính sách miễn phí bảo dưỡng
xe ...km/3 years + chú trọng đến độ an toàn của xe - issue
recall + cooperating with other local garages (partnership)
+ các dịch vụ collab với hotel/reststop đi kèm tại các trạm
sạc khi KH sạc (partnership)
___________________________________________________ 2024: GROWTH - ● Sales: - Set KPI → HR: development? -
Chính sách khuyến khích nhân viên sử dụng xe vinfast trong tgian làm
việc (đi gặp khách hàng, đi công tác, etc,...). Sau 1 năm làm việc, vinfast
khuyến khích nhân viên mua xe với giá ưu đãi leading customer ⇒ - ● Branding: - Battery replacement
+ launch chiến dịch - pin đc tái chế -> tạo tác phẩm nghệ thuật, cuộc
thi sáng tạo làm từ pin,...) lan tỏa tinh thần tái chế
+ It is suggested that vinfast should cooperate with other players to
develop the battery technology -
Marketing strategy: “Just keep driving” - đoạn quảng cáo về việc khuyến
khích người dùng sử dụng xe đi xa (https://www.youtube.com/watch?
v=0Hkn-LSh7es) → nhu cầu đi lại nhiều sau dịch + để sử dụng đc các
dịch vụ tại các trạm + làm nổi bật lên phần range của xe. ⇒ giới thiệu
after-sale support: đội ngũ hỗ trợ các trường hợp khẩn cấp (xe hư, hết pin 12 ở cung đường vắng,...)
_______________________________________________ 2025: MATURITY
● Branding: Exchange car ( building a vehicle inspection system and creating a car
exchange program) → After verifying based on the digital valuation, used cars are
assessed so customers can decide whether to sell the car for the VinFast system. These
cars could be sold to customers with a lower budget or reused components to serve the production of new cars.
● Sale: HR - Đội ngũ bán hàng còn cần thêm những trang bị/ phát triển gì khác? BRIEFING One of the main challenges for retailers is to find the right balance between product and price to create a customer-centric purchasing experience. With the right promotion and place,
customers will be attracted to a store or site – but if they don’t have a good product at a
competitive price, they’ll go elsewhere. These four components best describe The 4Ps
Marketing Model, also known as the marketing mix or marketing program, consists of
the product itself, pricing, promotion, and place. These four elements combine to create a
complete marketing strategy for a business. For those important insights, our team
decided to solve this case of Vinfast based on the 4Ps marketing principle. According to
the listed objectives in the case of Vinfast, we categorized them into internal problems and external problems:
● Internal Problems: Branding, Product Positioning, Sale & Promotions 13
● External Problems: Distribution and Logistics, Customer Experience, Partnerships BACKGROUND
VinFast has quickly grown in popularity in Vietnam, and this new venture would
be the company's first push into a large international market. VinFast has the
capacity and capability to produce very well-made, well-designed cars thanks to
considerable investments in manufacturing facilities in Vietnam. VinFast's
leadership team has already made a big investment in the company's expansion
goals by locating its headquarters in Los Angeles, California. They also intend to
open additional showrooms across California in early 2022. By 20251, VinFast
has set an aggressive sales goal of capturing at least 1% of the US car market.
Entering a highly competitive U.S EV field, on the other hand, will be difficult for
a Vietnamese automaker, and the newness and high-tech nature of electric
vehicles adds to the complexity. METHODOLOGY 14
This research paper explains the market, proposes the detailed plan toward the
business case study of Vinfast. Our team has done demographic research of the
U.S in general and of California in specific. The result of these researches is used
to evaluate the potential market in the U.S, thus, to find the potential customer
segmentation. We found through our research that in order to succeed and claim
their name in the U.S market, Vinfast should concentrate on branding their name
and working on their customer experience.
PLAN OF 2022 : INTRO TERM – MARKET ENTRY – GAIN MARKETING
Branding and Product Positioning
The VinFast name quickly gained prominence in Vietnam since it was associated
with the other well-respected Vingroup brands, but both Vingroup and VinFast
are lesser known names in the U.S. market and most of the rest of the world.
Therefore, planning an effective branding strategy in the market entry stage is very crucial for the company.
According to the demographic charts above, it is noticeable that Asian took up
21% of the EV purchasers in California. By locating the first showrooms of 15
here. Vinfast could sponsor these KOLs a ticket to VINFAST EV GLOBAL
PREMIERE 2022 with an experience of test drives and ask them to post this on
their social media platforms, or even ask them to make Vlogs about this on
Youtube. For this campaign, we suggest these KOLs:
1. Jenny Huynh - has 1.72 million subscribers on Youtube, mainly from the age
range of 16 – 25. She has made a plethora of videos sharing her experience of
learning how to drive and this series has gone viral for months, Vinfast should
take this opportunity to offer her a test drive.
2. The triplet Johnny Dang - Khoa Pug - Vuong Pham – they have the combined
subscribers of roughly 5.3 million on Youtube. They have made videos sharing
about their lives and experiences in the U.S. They have a wide age range audience
from 19 – 60 and mostly Vietnamese American.
3. Hoyer Family cuộc sống Mỹ - she has more than 1.1 million subscribers on
Youtube, the background of this family and viewers are similar to the potential
segment of Vinfast that we have described.
For this campaign, we would like to remind Vinfast to ask the KOLs to stress on
our unique selling point – the battery rental program which could reduce the price
of products as well as concerns about battery life. Also in this year, we offer an idea that Vinfast should do a road trip show through 50 states of America with their EVs and this will be shown in Youtube &
Netflix platform. The road trip show is suggested to have 15 episodes and Vinfast
will go through 3 states/1 episode. It is estimated that Vinfast will need about 5
months to work on this project. This campaign aims to give customers the realest 17