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VietJet Air - Marketting Management

UT

Uyen Tran

Transcript
  • INSIST
  • PREFER
  • ACCEPT
  • UNAWARE
  • REJECT

Conclusion

After a year, through the campaing, Viet jet should

  • raise up its market share to 30% and get closer to Maturity Stage.
  • Positive impact on sales, market share and brand awareness in customer's perception.

Bring into Focus on Aviation Management

•Poor customer service and delay issue due to poor management in the company in relation with other VietJet’s agencies and travel agencies

BIG event for the year - PARACHUTE JUMPING

Instead of shocking price as 0vnd or 10,000vnd, Viet Jet should do AMAZING and ADVENTURED event in Viet Nam, which is never happened before.

Express Viet Jet slogan by event " BAY LA THICH NGAY" - "ENJOY FLIGHTING".

-->ATTRACT customer attention and feeling excitement, also Vietjet's image in customer's mind that is active, young, and modern but NO affection to traditional image.

---> To reduce the delay issue and increase the quality of customer service are the main goal which directly affect the brand’s image and brand equity

==> GAIN customer's belief and usage more.

P.O.P Display for 2 months (March and April)

  • at big Shopping Malls, Hochiminh City University of Sport, Sport & Physical Gymnastics University II in Thu Duc District.
  • In May: 100 attendants sign up, do Physical and Health Check-up with VietJet's Doctor Team. Re-size down to 50 people, half in Sai Gon and Half in Ha Noi.
  • Be trained with individual expert in 1 week about landing on the sea (Nha Trang and Ha Long).
  • A small souvenir from VietJet for those who join the event.

Evaluate from event? Based on how much active from customer, get feedback after the jump and quickly express and improve brand awareness.

References List

1.Abstravel 2013, “VietJetAir sponsors transportation and training equipment for Vietnamese Paralympics delegation”, Abstract Travel, HCM city, viewed 10th August 2013 <http://www.abstravel.asia/vietjet-air-launch-shock-pr-advertisement.html>

2.Fedec, A 2011, “Vietnam gdp per capita”, Trading Economics, viewed 7th August 2013. <http://www.tradingeconomics.com/vietnam/gdp-per-capita>

3.<http://centreforaviation.com/analysis/vietjet-overtakes-jetstar-pacific-as-largest-vietnamese-low-cost-carrier-84614>

4.Jetstar 2013, “About us”, Jetstar Pacific Airlines Join Stock Aviation Company, HCM city, viewed 2nd July 2013.<http://www.jetstar.com/au/en/about-us/our-company>

5.NhanDan Online News 2013, “VietJetAir opens HCM City-Bangkok route”, NhanDan Online, 10 February, viewed 12th August 2013.<http://en.nhandan.org.vn/en/business/companies/item/963902-.html>

6.NLD 2013, “Air carriers fighting over domestic market share”, Ha Noi Times, HCM city, 13 Febuary, viewed 15th August 2013.<http://en.baomoi.com/Home/travel/hanoitimes.com.vn/Air-carriers-fighting-over-domestic-market-share/336456.epi>

7.Travel chinhaguide 2013, “Lucky numer”, Travel China Guide, HCM city, viewed 10th August 2013 <http://www.travelchinaguide.com/intro/lucky-number9.htm>

8.Tuoi Tre, “Air Mekong to shut down as of month’s end”, Tuoi Tre News, HCM city, 20 Feb, viewed 16th Aug 2013.<http://tuoitrenews.vn/business/7241/air-mekong-to-shut-down-as-of-month%E2%80%99s-end>

9.VietJet Air 2013, “About VietJet Air”, VietJet Air, HCM city, viewed 10th August 2013.<http://www.vietjetair.com/Sites/Web/en-US/NewsDetail/our-company/%20336/about-vietjet-air>

10.VietJet Air 2013, “Bay den Bankok 0 dong”, VietJet Air, HCM city, viewed 10th August 2013.<http://www.vietjetair.com/Sites/Web/vi-VN/NewsDetail/tin-khuyen-mai/780/bay-den-bangkok-gia-ve-0-dong>

11.VietJet Air 2013, “Bay la thich ngay voi tau bay moi”, VietJet Air, HCM city, viewed 10th August 2013.<http://www.vietjetair.com/Sites/Web/vi-VN/NewsDetail/tin-tuc/856/bay-la-thich-ngay-voi-tau-bay-moi-cua-vietjetair>

12.VietJet Air 2013, “Giam ve cho nguoi cao tuoi”, VietJet Air, HCM city, viewed 10th August 2013.<http://www.vietjetair.com/Sites/Web/vi-VN/NewsDetail/tin-tuc/842/vietjetair-giam-15-gia-ve-cho-nguoi-cao-tuoi> .

13.VietJet Air 2013, “VietJetAir sponsors transportation and training equipment for Vietnamese Paralympics delegation”, VietJet Air, HCM city, viewed 10th August 2013.<http://www.vietjetair.com/Sites/Web/en-Us/NewsDetail/news/541/vietjetair-sponsors-transportation-and-training-equipment-for-vietnamese-paralympics-delegation>

14.VietJet Air 2013, “VietJetAir sponsors transportation for miss vietnam 2012 contest”, VietJet Air, HCM city, viewed 10th August 2013<http://www.vietjetair.com/Sites/Web/en-Us/NewsDetail/news/517/vietjetair-sponsors-transportation-for-miss-vietnam-2012-contest>

15.Vietnam Airlines 2013, “Our Background”, Vietnam Airlines, HaNoi, viewed 16th August 2013.<http://www.vietnamairlines.com/wps/portal/en/site/about_us/our_background/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3hnd0cPE3MfAwN_M1MzAyM3F0tvd2MXQ4MgE6B8JJK8u6-vm4GReaiFeZCrn6GBgSkB3eEg-3CrcDJHk8diPkjeAAdwNND388jPTdUvyI0wyAxIVwQA9o0oOQ!!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/>

16.Vietnam National Administration Of Tourism (Vnat) 2012, “International visitors to Vietnam in June and 6 months of 2013”,Viet Nam Tourism News, Government, viewed 2nd August 2013.<http://www.vietnamtourism.gov.vn/english/index.php?cat=012042&itemid=6867>

17.Vietnam National Administration Of Tourism (Vnat) 2012, “International visitors to Vietnam in June and 6 months of 2012”, Viet Nam Tourism News, Government, viewed 10th August 2013.<http://www.vietnamtourism.gov.vn/english/index.php?cat=012041&itemid=5753>

Mission

  • Increase market share to 30% hence increase the sale

-> Improve marketing strategy

-> Minimize the delay time issue

Current Analysis

•Working and Business class age 22 to 40

•Enjoy to flight with high desire in time saving, service quality and price conscious.

•Active, modernized and frequent flyer.

•Female and Male customers with single or married status

•Wide range of disposable income from 1 to 5 mil VND (Price ticket from 400 to 2.1 mil VND)

•Live in major cities of Vietnam including Ho Chi Minh, DN, HN and Nha Trang with great purchasing power and high willingness to become the first time users of new services

Who is TARGET CUSTOMER?

Public Relation (PR)

Product Publicity

Vietjet Air launched new flyting routes around Vietnam and our neighbor countries with a lot of promotion for customers.

Promotion

News

Vietjet Air do a various of charity

  • corporated with “Uoc mo cua Thuy – Thuy’s dreams” program to organize trips to charitable giving gifts for young children at some hospital in Ho Chi Minh City.
  • VietJetAir sponsors transportation for Miss Vietnam 2012 Contest
  • VietJetAir sponsors transportation and training equipment for Vietnamese Paralympics delegation.

building tight relationship to local people, gorvenment and affirming position in the aviation market

Optional product line pricing

Other Strategies

> Sell the number of meals and merchandises during the flights.

> E.g: Business man - food&drink

Toys - Advertising specialties

  • Two decisive colors: Red and Yellow
  • Represent for Vietnam with a Vietnamese flag logo

Not only promotion, SkyBoss had its own promotion. By paying a little more, passenger will be served with luxury leather seat and have more room for their flight. Guest may also select their choice of seating, from the front row seats, to aisle and window seats for their own expediency and comfortable (Vietjetair 2013).

Corporate identity materials

Product line pricing

Social Network

Skyboss Ticket

Internet marketing on its web and some tourist Websites

Economic ticket

Psychological Strategy

199,000VND # 200,000 VND

“Number 9” in Asian Social Culture

Everyday and every week, Viet Jet is continuing to expose their attractive budget strategies to consumers by Promotion ticket, passengers can always flight with their optional decisions.

Economic Ticket is a higher level for middle to upper class. It is not attractive as much as promotion one, but it would offer some more including options in a ticket.

Even VietJet is a new member, they still generate more options of 3 price levels to reach different demand of various customers.

Promotion ticket

(Product form)

Location pricing: 10,000 tickets 0 VND to Thailand by online booking

> Increasing productivity

Time pricing: tickets on Sunday and Holidays more expensive

Bonus discount: World Cup Season 2012

> Balance VietJet’s budget in special times of a year

> Uses human resources effectively

Customer segment: adults children ,pregnant women, elderly.

> All Airlines

> Attract all generations in 1 family

Price Adjustment

> The most effective in VN

But can not affect long term finance

Pros and Cons of

"Low-cost pricing"

Pricing

Prices lower than production costs

Decrease overall future revenue

** economic crisis and recession

---> Example of Air Mekong Bankcrupcy

One of the brand-new Airbus aircrafts comes emblazoned with the image of former Miss Vietnam Mai Phuong Thuy and movie star Johnny Tri Nguyen with the airline's signature SkyBoss.

Advertisement Strategy

  • Huge success in domestic airline market
  • Second place with profit excess 20%

Recently, VietJet is at the growing stage so its advertisement is mainly for comparative and persuasive

Using personality symbol to impress customer’s awareness

What is current 4P's of the company?

NgOc Quyên disguised Lady Gaga in a black-and-white suite suddenly appeared in one of the Vietjet Aircraft

Evaluating Advertising Effectiveness

Initial Price

Penetration Pricing

--> By doing a lot of Advertising, Vietjet Air is trying to consolidate the image and characteristic.

Air traveling demand in market of landing transportation

E.g: car & train

Enter the market & gain market share quickly

Achievements

Comparison

  • Bikini Show of teenage contestants of a beauty contest  on a flight of an airline Vietjet Air.

  • Very strong advertising strategies that easily spread around the society. Thus more people aware about VJ

> Increase the sales, revenues and brand equity

> A lot of advantages & competitiveness

> Reduce the distance with VNA

> Keep practicing & doing more research

Direct Marketing

VJ has online booking system and on-call booking system that allow users easily book a ticket without leaving their seat

Consider cost & profit

Multichannel Distribution System

  • Increase sales and easy to cover the whole market by allocating many marketing channels nation-wide.
  • VJ has many new opportunities to tailor its services to specific needs of diverse customer segments.

Viet Jet Air Company

  • Hard to control the distribution flow. VJ headquarter cannot control the selling and the direct interaction between agencies and customers.
  • Create the conflicts among channels. The more intermediaries, the more conflicts VJ has
  • to face with such as profits competition.

B2B Marketing

Viet Jet also has special promotion for tourism agents book their ticlets as a tour.

For example: Sai Gon Tourist, Ben Thanh Tourist,...

Authorised agencies

Viet Jet welcome all agencies that want to cooperate with them to reach more customers and expand brand awareness.

All

Customer

Viet Jet sell directly to customer through their agents.

Cataloge, telephone, website...

segments of passenger

Product

Marketing System and Distribution

Franchise Organisation

Advantages:

-Reaching more customer segments

-More sale

-More brand equity

-Less cost for operating new outlets

Corporate System

Advantages:

  • More customer segment
  • More sale
  • Expand brand equity

Disadvantages:

-Harder to control

-Conflict between retailers.

-Negative reputation affected one of these franchises.

Disadvantages:

  • More operating cost

Corporate Vertical System

VietJet operates main office in Tan Son Nhat International Airport in Ho Chi Minh City. Beside that, Viet Jet also has some more branch in various main cities along Viet Nam such as Da Nang, Hue, Ha Noi, Nha Trang, etc.

Serve as much as customers that they could.

Franchise Organisation

In order to expand brand awareness, VietJet also sign contract with many air ticket agents and travel agents to sell their flights. The number expand to aroung more than 100 agents over the country. Ex: Hanoi tourism, ATAT, Travelling and Hopeful service company-Esperantotur, ThienHa ESY company.

Viet Jet only sell tickets through selective distribution as air ticket agents.

Customer usually spend more time to search, compare and decide to buy an airline ticket, Viet Jet Air service is classified as

PLACE

Skyboss Ticket

SH PPING PRODUCT

Economic ticket

What is Actual Product of Viet Jet???

Consumer is freely to choose the luggage option for their trip instead of automaticly including into the flight as before.

Core Benefit

Passenger will be flighted by 180 comfortable leather seat of Airbus 320-200. Both airplane and the modern professional air crew uniform of Viet Jet are recognized by triple colour combination of RED - YELLOW and WHITE, and the main one is RED colour which is represented as a nation flag - nation's loyalty (Vietjetair, 2013).

Come to Viet Jet, passengers will have experience of fast and

convenient transportation with low cost purchase to every destination.

DELAY PROBLEM

  • Any confusing or complaination???

-> 24/24 Hotline number 1 900 1886, online operator always listen and answer to customer complain, question and reccomendation.

Augmented Product

Promotion ticket

  • Any WHERE - any TIME!!!

Either MIDNIGHT or at half of the world, with 24/24 online service website, customer can easily do the booking or canceling ticket with just a

click

Product line Extensions

By:

Thanh NguyenTran Trong - s3372611

Uyen Tran Nguyen Khanh - s3394376

Xuan Bui Thi Thanh - s3357494

Duyen Nguyen Ngoc Huong - s3408685

Dinh To Hai - s3410277

Viet Jet Air Company is the first Vietnamese privated low cost airline headquatered in Ho Chi Minh City. •

About Viet Jet

  • 8 airplanes in total with the A320-200 model which can carry 180 passengers with its narrow-body aircraft at low operating costs.
  • 100% foreign pilots with intensive experience and receiving international training standard.

•Viet Jet Company operates scheduled domestic flights to 11 big cities with round-trip tickets or one-way tickets, specially to 3 main economic centers of VietNam including Ha Noi, Ho Chi Minh City and Da Nang. Recently, The company also schedule international flight to ThaiLand (Vietjetair, 2013).

Achievement

  • In Product Life-Cycle (PLC) Strategy,Viet Jet is now in Growth Stage after 2 year operation with positive sign.
  • By professional service, Viet Jet is getting closer and gaining more trust in brand awareness from Vietnamese people in short time.
  • Understand what is lack of to enhance in quality product - service levels and embracing technology.

PLC Diagram

Market Share

•Profit exceeded the planned sales 20%

•In 2013, after 2 years from the first flight on 2011,Viet Jet contributes 300 billion VND to the Government’s budget

Vision

Viet Jet wants to be the strongest first privated low cost airline and generating a chace for people who are underserved with poor connectivity and high fares (Vietjet, 2013).