THE 7Ps MARKETING MIX OF VIETJET AIR PDF

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THE FINANCIALUNIVERSITY OF FINANCE – MARKETING------oOo------THE 7Ps MARKETING MIX OF VIETJET AIRBranch of learning : MarketingClass: CLC_19DMACourse code : 2021702052712Student’s name:Nguyễn Duy Tân – 1921002948 Trương Minh Mẫn – 1921000917 Phan Gia Cát Tường – 1921003892 Nguyễn Nhựt Hải Long – 192...

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THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING ------oOo------

THE 7Ps MARKETING MIX OF VIETJET AIR Branch of learning: Marketing Class: CLC_19DMA12 Course code: 2021702052712

Student’s name: Nguyễn Duy Tân – 1921002948 Trương Minh Mẫn – 1921000917 Phan Gia Cát Tường – 1921003892 Nguyễn Nhựt Hải Long – 1921004477 Nguyễn Thành Được - 1921005399

Hồ Chí Minh City, 15 July, 2021

TABLE OF CONTENT LIST OF TABLES ................................................................................................................... 5 LIST OF PICTURES ............................................................................................................... 6 CHAPTER 1: INTRODUCTION ........................................................................................... 1 1.1.

OVERVIEW .............................................................................................................. 1

1.1.1. Reasons for choosing the topic .............................................................................. 1 1.1.2.

Objectives of the study....................................................................................... 1

1.1.3.

Research subjects ............................................................................................... 2

1.1.4.

Research scope ................................................................................................... 2

1.1.5.

Research Methods .............................................................................................. 2

1.1.6

Structure of topic ............................................................................................... 2

1.2.

OVERVIEW OF VIETJET AIRLINES JOINT STOCK COMPANY ............... 2

1.2.1

About VJA .......................................................................................................... 2

1.2.2

Vision and mission ............................................................................................. 3

1.2.3 Goals and Core values ............................................................................................ 3 1.2.4 Operational scale.................................................................................................... 4 CHAPTER 2: MARKET ANALYSIS OF AVIATION INDUSTRY AND COMPETITORS: .................................................................................................................... 5 Overview of the world Aviation Industry and the Domestic Aviation market: ................. 5 2.1

MACRO ENVIRONMENT : ................................................................................... 5

2.1.1

Economic environment ...................................................................................... 5

2.2.2

Technology environment ................................................................................... 6

2.2.3

Political - legal environment ............................................................................. 7

2.2.4

Socio-cultural environment ............................................................................... 7

2.2.5

Natural environment ......................................................................................... 8 1

2.2

MICRO ENVIRONMENT: ..................................................................................... 8

2.2.1

Finance ................................................................................................................ 8

2.2.3

Customers ......................................................................................................... 10

2.2.4

Media................................................................................................................. 11

2.2.5

Employees ......................................................................................................... 11

2.2.6

Shareholders ..................................................................................................... 12

2.3

COMPETITOR ....................................................................................................... 13

2.3.1

Direct Competitors: ......................................................................................... 13

2.3.2

Potential Competitors ...................................................................................... 13

CHAPTER 3: TARGET CUSTOMERS AND POSITIONING STRATEGIES ............. 15 3.1

TARGET CUSTOMERS AND POSITIONING STRATEGIES ....................... 15

3.1.1

Target customers.............................................................................................. 15

3.1.2.1. Customers' perception of using Vietjet Air's services: .................................. 15 3.1.2.2. Customers searching for information about Vietjet Air's services: ............. 16 3.1.2.3. Customer reviews of other options or alternatives: ....................................... 16 3.1.2.4 . Customers' experiences when using Vietjet Air's services: ......................... 16 3.1.2.5. Feedback from customers after using Vietjet Air's services: ....................... 17 3.2

POSITIONING STRATEGY OF VIETJET AIR: .............................................. 17

3.2.1

Positioning distinguishes a brand from its competitors: .............................. 17

3.2.2

Developing an effective positioning strategy: ................................................ 18

3.2.2.1

Market analysis: ........................................................................................... 18

3.2.2.2 Internal corporate analysis: .............................................................................. 18 3.2.2.3 Competitor analysis: .......................................................................................... 20 3.2.3

Using positioning maps to plot competitive strategy: ................................... 21

3.2.3.1

Marketing Strategy Evaluation: ................................................................. 21

3.2.3.2

Customers' perceptions: .............................................................................. 22 2

CHAPTER 4:

MARKETING MIX STRATEGIES ....................................................... 23

4.1. PRODUCT STRATEGY ............................................................................................ 23 4.1.1. What is product strategy? ................................................................................... 23 4.1.2. Product portfolio .................................................................................................. 23 4.1.3. Product strategy analysis .................................................................................... 24 4.1.3.1. Core product...................................................................................................... 24 4.1.3.2. Supplementary services. ................................................................................... 24 4.1.4. Evaluate VJA's product strategy........................................................................ 25 4.1.5. Solution to complete the company's product strategy ...................................... 26 4.2. PRICING STRATEGY .............................................................................................. 27 4.2.1. Definiton of price.................................................................................................. 27 4.2.2. VJA’s Pricing Strategies...................................................................................... 27 4.2.2.1. Cost-Based Pricing ............................................................................................ 27 4.2.2.2. Value-Based Pricing.......................................................................................... 32 4.2.2.3. Competition-Based Pricing .............................................................................. 33 4.2.4. The solution to complete the company's pricing strategy ................................ 33 4.3.1

Definition .......................................................................................................... 34

4.3.2. VJA’s Distribution of Supplementary and Core Services................................ 34 4.3.3. VJA’s Distribution Strategies ............................................................................. 36 4.3.2.1. Indirect Distribution ......................................................................................... 36 4.3.2.2. Direct Distribution ............................................................................................ 36 4.3.3. VJA’s Place Decisions of Service Delivery......................................................... 37 4.3.3. VJA’s Delivering Services in Cyberspace .......................................................... 37 4.3.3. Đánh giá Distribution strategy của VJA (Ưu, nhược điểm) ............................ 37 4.3.4. Giải pháp hoàn thiện Distribution strategy của công ty .................................. 38 4.4.1

What is a Promotion Strategy? ....................................................................... 38 3

4.4.2

Actual situation of promotion strategy activities of VJA ............................. 39

4.4.2.1. Advertisement ................................................................................................... 39 4.4.2.2. Promotions ......................................................................................................... 40 4.4.2.3. Public relations .................................................................................................. 41 4.4.2.4

Personal selling ............................................................................................. 42

4.4.2.5

Direct Marketing .......................................................................................... 43

4.4.3

Evaluate VJA's promotion activities .............................................................. 43

4.4.4. Complete solution for promotion activities ....................................................... 44 4.5.1 4.5.1.1

Definition: ......................................................................................................... 44 Processes: ...................................................................................................... 44

4.5.1.2 Flowcharting customer processes:.................................................................... 45 4.5.2 Processes in Vietjet: .............................................................................................. 45 4.5.2.1 Vietjet’s booking and payment process: .......................................................... 45 4.5.2.2 Vietjet’s air ticket refund process: ................................................................... 46 4.5.2.3 Vietjet's complaint and compensation process: .............................................. 46 4.5.2.4 Vietjet’s maintenance process: ........................................................................ 47 4.5.3.2 Propose solutions for Vietjet:............................................................................ 48 4.6 PHYSICAL EVIDENCE MANAGEMENT ............................................................. 49 4.6.1 Definition of evidence ........................................................................................... 49 4.6.3 Physical evidence assessment of Vietjet Air ....................................................... 52 4.6.4 Solutions and proposals for Vietjet Air company .............................................. 53 4.7 PEOPLE........................................................................................................................ 55 4.7.1 Service employees.................................................................................................. 55 4.7.1.1 Service employees are crucially important ...................................................... 55 4.7.1.2 Service employees as a source of Customer Loyalty and Competitive Advantage ....................................................................................................................... 55 4

4.7.2. Human Resource .................................................................................................. 56 4.7.3. Customer services ................................................................................................ 57 4.7.4. Problems and suggestions for future .................................................................. 58 4.7.5 Pros and Cons of People’s Strategy..................................................................... 59 4.7.6. Solutions and proposals for Vietjet Air company ............................................. 60 CHAPTER 5:

SUMMARY ............................................................................................... 61

DOCUMENTATION ............................................................................................................. 63

LIST OF TABLES Table 1: Structure of the company's shareholders as of January 4th, 2021 ...........................9 Table 2: List of Board of Directors ........................................................................................12 Table 3: The service of each levels of price ..........................................................................28 Table 4: table of ticket prices of VietJet Air compared to Vietnam Airlines, Pacific Airlines from Ho Chi Minh city to some provinces ............................................................................30

5

LIST OF PICTURES Picture 1: Life of cycle cost analysis .....................................................................................19 Picture 2: Scale and the level flight route coverage ...............................................................20 Picture 3: Staff and aircraft of VJA .......................................................................................21 Picture 4: Positioning map 1 ..................................................................................................21 Picture 5: Positioning map 2 ..................................................................................................22 Picture 6: “Hunting 0-VND tickets to fly around VietNam Campaign” ...............................31 Picture 7: 77% discount program forr passengers .................................................................32 Picture 8: Minh Tu and Celine Farach in VJA’s calenndar in 2018 ......................................41 Picture 9: VJA’s promotion on VietNam Teacher’s day .......................................................42 Picture 10: VJA for bikini model to welcome U23 VietNam caused a lot of controversy....43

6

CHAPTER 1: INTRODUCTION 1.1. OVERVIEW 1.1.1. Reasons for choosing the topic The aviation market is now more interested than ever. Because life is more and more modern, people's needs are increasing. From old bicycles, to motorbikes, to cars. People's means of transportation are getting more modern over the years. Moving between faraway places is no longer something that makes us think twice. No need to say much or discuss deeply, there is one thing that everyone must admit that traveling by air will be much more convenient than other types of means. Although the cost is much higher, flying gives us commensurate benefits. First of all, the issue of time, traveling by "birds of flight" helps us save a lot of time. And thanks to that, our time will be longer, longer, and we can do more of our plans. Besides, health issues are also very important, instead of having to sit for hours on end tired in cars and trains, we can sit comfortably on airplanes in a much shorter time. Along with the growth rate of the economy, the aviation market also develops in a proportional manner. According to IATA data, Vietnam's aviation market has the third fastest growth rate in the world with an average rate of 16.6% per year in the period 2001-2014. IATA also forecasts that Vietnam will be the fifth fastest growing aviation market in the world, reaching 150 million passengers by 2035. Vietnam's aviation industry is also the fastest growing industry in Southeast Asia. It can be said that the success of the aviation market that Vietnam has cannot fail to mention the names Vietjet Air, Vietnam Airlines, Bamboo, etc. Among them, Vietjet is the name that is making waves when it was born. but both growth and revenue are outstanding. According to the announcement of the 2020 financial report, Vietjet announced a profit of 70 billion dong, while Vietnam Airlines lost more than 11,000 billion dong. Realize the resounding success of VJA and the importance that the Marketing Mix strategy contributes to that success. We decided to choose the topic: "Marketing Mix Strategy of Vietjet Aviation Joint Stock Company" as our research topic.

1.1.2. Objectives of the study -

Learn about Marketing Mix activities of Vietjet Aviation Joint Stock Company

-

Analyzing the current situation of VJA's Marketing Mix

-

Analyze the business environment of VJA to see strengths, weaknesses, opportunities and threats. And from there, propose measures to improve VJA's Marketing Mix strategy..

1.1.3. Research subjects Marketing Mix Strategy of Vietjet Aviation Joint Stock Company

1.1.4. Research scope -

Time range: 2017 – 2021

-

Scope of space: in Vietnam

1.1.5. Research Methods -

Collect secondary data and business results of VJA in recent years.

-

Collect data and information from newspapers, TV, Internet, ...

-

Using analytical methods, comparing data between years to come up with VJA's performance results.

1.1.6 Structure of topic CHAPTER 1: INTRODUCTION CHAPTER 2: MARKET ANALYSIS OF AVIATION INDUSTRY AND COMPETITORS: CHAPTER 3: TARGET CUSTOMERS AND POSITIONING STRATEGIES CHAPTER 4: MARKETING MIX STRATEGIES CHAPTER 5: SUMMARY 1.2.

OVERVIEW OF VIETJET AIRLINES JOINT STOCK COMPANY

1.2.1 About VJA VietJet's full name is VietJet Aviation Joint Stock Company. 2

This is Vietnam's first private airline. Not only air transportation, Vietjet also provides consumer demand for goods and services through e-commerce technology applications. Currently, Vietjet Air is an official member of the International Air Transport Association (IATA) with the Operational Safety Certificate (IOSA). Currently, Vietjet is operating 80 A320 and A321 aircraft, carrying out more than 385 flights per day, transporting more than 65 million passengers. This airline currently has 105 routes covering destinations in Vietnam and a number of international routes such as Japan, Hong Kong, Singapore, Korea, Taiwan, etc. In the future, Vietjet Air will open more routes. flies throughout the Asia-Pacific region. Vietjet's headquarters in Hanoi, address: Van Phuc Diplomatic Corps, Ngoc Khanh ward, Ba Dinh district. In Ho Chi Minh City, the head office is at 260 Ung Van Khiem, Binh Thanh District. In addition, the company's hotline number is 1900.1796 (support 24/7)..

1.2.2 Vision and mission Vision: To become a multinational airline corporation, with a wide network of flights throughout the region and the w...