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VietJet Air - Marketting Management

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Uyen Tran

on 31 August 2013

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Transcript of VietJet Air - Marketting Management

Thanh NguyenTran Trong - s3372611
Uyen Tran Nguyen Khanh - s3394376
Xuan Bui Thi Thanh - s3357494
Duyen Nguyen Ngoc Huong - s3408685
Dinh To Hai - s3410277

About Viet Jet
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
Viet Jet Air Company is the first Vietnamese privated low cost airline headquatered in Ho Chi Minh City. •
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).
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).
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
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.
What is current 4P's of the company?
Customer usually spend more time to search, compare and decide to buy an airline ticket, Viet Jet Air service is classified as
Core Benefit
What is Actual Product of
Viet Jet
Augmented Product
Come to Viet Jet, passengers will have experience of fast and
convenient transportation with low cost purchase to every destination.
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
, and the main one is
colour which is represented as a nation flag - nation's loyalty (Vietjetair, 2013).
Consumer is freely to choose the luggage option for their trip instead of automaticly including into the flight as before.
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
Any confusing or complaination???
-> 24/24 Hotline number
1 900 1886
online operator always listen and answer to customer complain, question and reccomendation.
Initial Price
Penetration Pricing
Enter the market & gain market share quickly
Air traveling demand in market of landing transportation
E.g: car & train
Pros and Cons of
"Low-cost pricing"
Prices lower than production costs
Decrease overall future revenue
** economic crisis and recession

---> Example of Air Mekong
Huge success in domestic airline market
Second place with profit excess 20%
Promotion ticket
Economic ticket
Skyboss Ticket
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.
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).

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
Psychological Strategy

199,000VND # 200,000 VND

“Number 9” in Asian Social Culture
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
Product line pricing
Even VietJet is a new member, they still generate more options of 3 price levels to reach different demand of various customers.
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.
Optional product line pricing
> Increase the sales, revenues and brand equity
> A lot of advantages & competitiveness
> Reduce the distance with VNA
> Keep practicing & doing more research
Consider cost & profit
Marketing System and Distribution
Multichannel Distribution System
More customer segment
More sale
Expand brand equity
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.
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.
Serve as much as customers that they could.
Viet Jet only sell tickets through
selective distribution
as air ticket agents.
More operating cost
Corporate System
Franchise Organisation
-Reaching more customer segments
-More sale
-More brand equity
-Less cost for operating new outlets

-Harder to control
-Conflict between retailers.
-Negative reputation affected one of these franchises.

Viet Jet Air Company
Viet Jet sell directly to customer through their agents.
Authorised agencies
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,...
Cataloge, telephone, website...
Viet Jet welcome all agencies that want to cooperate with them to reach more customers and expand brand awareness.
segments of passenger
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.
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.
Advertisement Strategy

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

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

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.

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
Evaluating Advertising Effectiveness
--> By doing a lot of Advertising, Vietjet Air is trying to consolidate the image and characteristic.
Public Relation (PR)
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.
Product Publicity
Vietjet Air launched new flyting routes around Vietnam and our neighbor countries with a lot of promotion for customers.
Vietjet Air do a various of charity
building tight relationship to local people, gorvenment and affirming position in the aviation market
Two decisive colors:
Represent for Vietnam with a Vietnamese flag logo
Corporate identity materials
Social Network
Internet marketing on its web and some tourist Websites
VJ has online booking system and on-call booking system that allow users easily book a ticket without leaving their seat
Direct Marketing
Increase market share to 30% hence increase the sale

-> Improve marketing strategy
-> Minimize the delay time issue
Bring into Focus on Aviation Management
---> 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
•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.
==> 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>
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>

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.
PLC Diagram
Promotion ticket
Economic ticket
Skyboss Ticket
Product line Extensions
Other Strategies
> Sell the number of meals and merchandises during the flights.
> E.g: Business man - food&drink
Toys - Advertising specialties
Using personality symbol to impress customer’s awareness
Full transcript