VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

PRINCIPLE OF MARKETING

A MARKETING PLAN FOR DIEN MAY XANH

Submitted by:

 Luong Thi Thanh Huong-BABANS18183

 Tran Le Minh Hanh-BABAWE18097

 Phan Nhat Khoa-BAFNIU18049

Submitted to lecturer Zafar U. Ahmed

Ho Chi Minh city, Viet Nam

Dec 6th

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 TABLE OF CONTENTS

1. Executive summary

2. Current market situation

2.1 Market analysis

2.2 Product review

2.3 Competitor analysis

2.4 Channels and logistics analysis

3. SWOT analysis

4. Objectives and issues

5. Marketing strategy

5.1 Positioning

5.2 Product strategy

5.3 Pricing

5.4 Distribution strategy

5.5 Marketing communication strategy

5.6 Marketing research

6. Action program

7. Budget

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8. Control

9. Marketing campaign proposal and taglines

Reference

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 1. Executive summary

Dien May Xanh, a recently founded brand, has effectively made due in the dynamic market

for electrical items retailers and in fact become a national brand within a short time. In the

many first years since established, this company earn profits but blur in customer's mind. The

customers mainly from locals who live near Dien May Xanh stores. Actually, there are not any

distinctive differences between any retail chain especially in electrical field. 9 years prior, in

December 2010, Dien May Xanh was first acquainted with people in general and from that

opportunity to around 2017, it was moderately another name to clients that hadn't increased a

lot of impacts. Confronting the negative circumstance, Dien May Xanh's directors immediately

perceived the requirement for brand situating lastly concocted a broad showcasing effort

propelled toward the end of 2016. In the wake of leading exhaustive examination about the

present circumstance and the SWOT investigation, they built up a 4Ps technique, in which the

advancement part is unequivocally engaged. The organization's advancement technique

incorporates running notices by means of TV channels and web-based life; propelling in-store

advancements and in conclusion, supporting TV shows or occasions. Thus, its activity program

was painstakingly done. To wrap things up, the general end and a few proposals were likewise

expressed to give a few recommendations to the organization to keep up and upgrade its image

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an incentive later on. All in all, this remarkable promoting effort has rewardingly accomplished

Dien May Xanh's objective of turning into the pioneer of gadgets retailers in Vietnam.

2. Current market situation.

Dien May Xanh supermarket is belongs to The Gioi Di Dong (MWG). The first supermarket

is launched at Binh Thanh District, Ho Chi Minh City in December 2010. With the endless

growth, Dien May Xanh has expanded with 991 supermarkets which located in 63 big cities

and provinces with more than 10,000 employees. This branch also committed that 100% of the

products are genuine. terms of goods, there is a diversity of electrical products such as TVs,

fridges, washing machines, refrigerators, and so on. Their providing products comes from

worldwide branch including LG, Samsung, Sony and so on. At the beginning, the company

named Dien May but starting with the supermarket in Dong Thap province in 2015, the name

changed to Diet May Xanh till now.

As a retail market, starting to increase sharply since 2013, the industry's growth rate still

maintained around 24%. In particular, the communication product group still accounts for the

largest proportion and growth rate. In addition, the other three main product groups, namely

information technology products, electronics (refrigeration and household appliances) and

electronics, which contribute more than 50% of total sales, also prospered than previous years.

There are many competitors including small-scale and large-scale. To dominate this market,

Dien May Xanh must carefully target segments.

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 2.1 Market analysis

The newspaper, Finance Times, released news on November of 2019 indicates that the retail

market in Vietnam is potential to attract investors. In this news, Mr. Sasamori Hiroaki-

corporate vice president of Aeon Vietnam Co. clarified that Vietnam has political stability,

large-scale population (more than 97 million people in 2019) and a young growing population.

Since joining the World Trade Organization (WTO) in 2007, Vietnam's macroeconomics has

always had a stable growth, specifically the country had a capita income that is steadily

increasing. Therefore, many Vietnamese people has a high living standard. In recent years, the

investment in this area tend to have a significant increase including domestic and foreign

investors. On the other hand, the Brands Vietnam newspaper showed that there was a massive

competition in this era. For example, Auchan-retailing cooperation of France was out. It means

that to survive and maintain, Dien May Xanh faces with various difficulties. Although this era

is not easy to develop, there are a majority of promising returns.

Some people buy technological products based on the store where ensure the brand reliability,

others depend on the experiences they have when they visit stores. It is also an exception that

people purchase choose store to purchase electrical devices where near their house, working

place and somewhere suits for their way to home.

Although these retail companies seem to be the same about the selling products, they are

different in the store arrangement and customer exposure. In addition, the retail chain of each

company is also distinguished themselves.

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 2.2 Product review.

Dien May Xanh provides a variety of products including electrical household appliances, office

equipment, accessories, sim number. More importantly, the company also shows used

products. With deeply understanding about the customers' needs, used products are offered a

lower price. The reason for that selling price because most of produce is not full of package or

scratch. For instance, the Iphone 5 which does not have power cord will discount of 20% to

30% depending on sellers. The official merch such as phones, tablets that store showcases via

the merch shelf will be used when customers have a try on it. After these products are out of

date, the company will sell it with an affordable price for people especially students who do

not have enough money to purchase a new one. About the quality of products, Dien May Xanh

cooperates with many big partners all over the world namely Samsung, Panasonic, Sony,

Hitachi, Daikin, Sanyo, LG, Mitsubishi Electrics, Toshiba to ensure the best experiences on

the real products. Therefore, purchasing in Dien May Xanh is safer than other small retailers

because of the credibility.

2.3 Competitor analysis

Due to the flexibility in product selection, it is not easy for the new brand to stand firm in

today’s market. To stand firmly and proudly like today, Dien May Xanh has faced many

challenges and competitors over years for the same purpose of satisfying the same targeting

customers. Although Vinpro and Vinpro+ are still quite new, it can say that the company has a

huge impact on the market due to the previous business which can become a formidable

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 opponent with Dien May Xanh. In terms of others rivals, it is impossible not to mention big

brands such as Nguyen Kim, Dien May Cho Lon- long-standing companies in retail market.

Here are a few more details about Dien May Xanh’s rivals in recent years.

Name of General information The Product review Revenue

companies distribution of

retail chain

Vinpro - Addressed in The Specializing in Retail sales

Vincom malls and company Electronics, reached VND

Vinpro+-located
has 242 Refrigeration, 7,860 billion

in chain stores in
stores Mobile, Computers, in the third
all cities and
which are Household, quarter of
provinces in
belonged Telecommunications, 2019.
Vietnam.
to Vinpro Furniture. They also
- This system was
and provided VinMart
launched in 2015.

integrated Home cosmetic

- It is a part of

Vingroup-one of a into products, VinMart

largest Vienthong Care and VinMart

multidisciplinary A. Good.

company in Asia.

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Nguyen Kim One of the largest The company Specializing in In 2014-

retailers in Vietnam has expanded Electronics, 2016,

which was established in 70 stores over Refrigeration, Nguyen

1992. Vietnam. Mobile, Computers, Kim's

Household, revenue was

Telecommunications, around VND

Furniture 9,000 billion.

Meanwhile,

The Gioi Di

Dong

revenue

increased

from VND

15,800 billion

in 2014 to

VND 45,600

billion in

2016, and in

2017 reached

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 VND 67,700

billion.

Dien May A pioneer in the field of There are 65 Specializing in Revenue in

Cho Lon retail of electrical stores Electronics, 2016

appliances in Vietnam including 21 Refrigeration, increased by

which was appeared in stores in Ho Mobile, Computers, 54% from

2001. Chi Minh city Household, VND 8,100

and locals, 15 Telecommunications, billion to

stores in the Furniture VND 12,500

south, 29 billion and

stores in the continued to

middle of increase by

Vietnam. 26% in 2017

to VND

15,800

billion.

Table 1: 3 competitors of Dien May Xanh

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Figure 1: A store of Vinpro in Dong Thap province.

Figure 2: Nguyen Kim in Ho Chi Minh city.

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Figure 3: A store of Dien May Cho Lon in Binh Duong city.

Although Dien May Xanh has a lot of competitors, Dien May Xanh always improves its

chain stores, train staffs to be more professional and learns from competitors. In addition, Dien

May Xanh recognises the importance of marketing to promote their branch. Therefore, this

branch can catch the eyes of customers.

2.4 Channels and logistics analysis.

Dien May Xanh plays a role as a retailer who operates their business either through a brick

and mortar store or over an online ecommerce platform to earn profits by reselling products. A

retail transaction is usually complete once the buyer pays for the goods received. Big retailers

such as Amazon, Walmart’s are designed to display goods from manufacturers or wholesalers.

They are later sold to the consumers in line with the mark-up pricing technique. As a

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consequence, Dien May Xanh has to sign contracts with companies to import electrical goods.

About used products, the source is mainly from the showcase goods or exchanged products.

Additionally, there is 25 stores which was recently launched in the middle of November. In the

near future, Dien May Xanh will open 4 more stores in the December in following cities Da

Nang, Quang Ngai, Ho Chi Minh and Bac Lieu.

3. SWOT analysis.

Strengths:

1. Like The Gioi Di Dong, this brand is also supported by Mobile World Corp, Dien May

Xanh has abundant fund. The Gioi Di Dong store has an initial investment cost of VND

1.5-2 billion, while the average investment cost of Dien May Xanh is triple or fifth

times higher, depending on the status of construction and position.

2. The Gioi Di Dong-electrical company specializd in mobile phones, laptop was

established early, thus MWC has more experiences in this era.

3. Dien May Xanh is recognized commonly due to the broad chain system, especially in

remote areas. There are 159 stores around Vietnam.

4. Many viral videos made by people wearing blue tight-fitting clothes are addictive to

viewers. Thanks to such videos, people decide to purchase increasingly.

5. Each item is provided by diverse brands. For instance, if you want to buy a television,

Dien May Xanh offers products from Sony, Samsung, LG, TCL or you can choose

based on the inches such as 32-43 inches, 44-54 inches.

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Weaknesses

1. Many stores in mountianous areas can not provide a majority of products and brands.

Because the demand for uses in these areas is different, the company just estimate to

offers some basic items of each categories

2. Stores located in promote areas are often small which cannot bring a memorable

experience. These stores are usually located in the rural are where center land is small

or suburb land is large but not reached the objective of company.

3. High investment in advertising may lead to lose money if the company do not have a

right startegy.

Opportunities

1. Internet and social networks help to promote brand name and increase brand awareness.

2. Thanks to the Vietnam econommy, clients tend to take care of themselve. The demand

for electrical products is high compared with previous years.

3. The company offers many promotion events and organize minigames for customers

especially in special occasions (Tet Holiday, Christmas day,…)

4. Having chances to update a newest owning to the field of technology.

Challenges

1. There are various retail brand name which released earlier.

2. Increasing investment of foreign corporations in this area.

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 3. The large differences between income of citizens and people in the countryside lead to

the difference in buying behaviors.

Strengths Weaknesses

1. Abundant fund 1. Lack of diverse brands of products in

2. Many experiences remote areas

3. A common brand 2. Small stores

4. Addictive viral videos 3. Excessive advertising money

5. Each item is provided by diverse brands.

Opportunities Threats

1. A development of Internet 1. Many competitors

2. Vietnam economy 2. High investment of foreign corporation

3. Promotion 3. Income differentiation

4. Many chances

Table 2: SWOT analysis

4. Objectives and issues

- In the first 5 years, Dien May Xanh focused on expanding the network by "exponential".

It means that in the end of 2011, the number of supermarkets is 8 compared with 1 in

2011 in order to serve national customers. This objective remains till now and Dien

May Xanh reaches nearly hundred stores over Vietnam.

- In 2016, stores were covered almost Vietnam. Thus, the second objectives is to promote

the brand awareness and encourage the purchase by concentrating on the marketing

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 campaign. The company want customers thinking about Dien May Xanh when they

plan to buy electrical products.

- The main issues is to raise customer’s awareness and have a meaningful image of brand

in customer’s mind.

5. Marketing strategy

A viral video is chosen by Dien May Xanh to promote the brand name. There are manifold

reasons why the company select a viral video as an optimal choice. Devoting much effort to

keeping it going places is not necessary because if the video is funny, people will show it off

repeatedly to everyone. Viral video is incredibly cost effective. It is targeted at viewers by

hilarious factor, thus they will be addicted to it. Additionally, it can change awareness and start

purchasing when needed.

- According to World population review, Vietnam population in 2019 at 96.46 million. Vietnam

has 5 cities with populations over one million, the largest city is Ho Chi Minh City, the second

one is Ha Noi and the remaining 3 cities with substantial populations are Hai Phong, Da Nang,

and Can Tho. Based on the population density, Dien May Xanh has established 109, 80, 18, 16

and 13 stores in these cities respectively.

- Employed people in Vietnam averaged 43.05 million from 1982 until 2019.

Specifically, the number of Vietnamese employed people was over the half of

population (54.56 Million) in the third quarter of 2019 (Trading Economics).

- 37.0 % of the population is urban (35,686,730 people in 2019)

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 - The median age in Vietnam is 30.9 years in the year of 2019.

Through analysis, the company indicate the target user for this market is employed people

especially in big cities. Household appliances are essential to family. Smart devices are also

important latter-days. As we can observe that this purchasing is crucial to all generations.

However, the price of electrical products is quite expensive, students and unemployed people

can not afford. Dien May Xanh targets at customers who are working especially family.

5.1 Positioning.

With the targeting analysis, we have a brief information about target users of Dien May Xanh.

The company must raise brand awareness of customers who are in all 63 provinces of Vietnam

know about Dien May Xanh. In addition, Dien May Xanh create a unique experiences in

customer's mind about Dien May Xanh as a low price electronics retailer.

5.2 Product strategy

Bases on product review, Dien May Xanh include more items data on its official site, permits

clients to trade or return items with mechanical blunders caused by the producers in a period

of up to 12 months and increase retail availability.

5.3 Pricing

Rebates occasions and campaigns are utilized to advance itself as a moo - cost electronic

retail store. Some items that are broadly utilized by commonplace families with distinctive pay

levels. The company must keep up great commerce relationships with around the world

accomplices to induce engaging cost approaches. Customers have experienced a number of

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discount events with great benefits: “Grand TV Party 100% Gift offered when purchasing”,

"Buy 1 get 3 - Samsung" or “with any bills from 300.000 VND to 5.000.000 VND buyers will

receive 0% installation interest and a trading stamp”.

5.4 Distribution strategy

Retail chain expands to wider regions by launching stores in almost every towns or provinces

throughout the country. Dien May Xanh offers at-home delivery and installation services, along

with fast and efficient further assistance. The detailed information on products was added on

the "Dienmayxanh.com" website, from the prices, time of delivery, guarantee periods, extra

gifts for the trade. By accessing this website, Dien May Xanh's staff could also provide

customers with the best advice.

5.5 Marketing communication strategy

- Social media: TVC and related images are widely distributed on social media sites such

as Facebook, Youtube, Instagram, Newspapers, forums and, in particular, on pages

such as Haivl, Em Plus, IEA, GIOITRENGAYNAY, etc.

- Television: TVC is advertised repeatedly on VTV1, VTV3 or VTC9 at peak hours.

- Offline marketing: Flash mob made by blue dancers in the most central locations, such

as Nguyen Hue Pedestrian Street, AEON Mall, NOWZONE, Cresent Mall, BITEXCO

FINANCIAL TOWER, has attracted a large number of audiences and has raised brand

awareness among the people.

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 - Sponsorship: sponsoring major events or TV shows such as: “Year end day”, “Táo

Quân”, “Gala Tế t Việt”, etc. has brought the brand name to a large number of viewers.

5.6 Marketing research

Research is important to understand customer’s behavior. The company can do a survey in

social media such as Youtube or in traditional way interviewing locals. Dien May Xanh also

update feedbacks of customers in the official website.

My group conducted a survey by the customer experience at Dien May Xanh. There are 43

people aswered. In this survey, the respondents are in the range of 18 to 25 years old who

currently study in International University (IU).

Advertising videos which released in 2007

Annoying
26%
Addictive
34%

Unconcern
13%

Interested
27%

Addictive Interested Unconcern Annoying

Figure 3: The responders responded to the advertising video of Dien May Xanh

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 People know Dien May Xanh

No
15%

Yes
85%

Yes No

Figure 4: The proportion of people who know about Dien May Xanh

People buy products in Dien May Xanh

Yes
27%

No
73%

Yes No

Figure 5: People buys products in Dien May Xanh

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 Customer experience at Dien May Xanh

Return and exchange

policy
10%
Warranty policy
8% High-quality products
32%

Diverse choices
27%

Best service
23%

High-quality products Best service Diverse choices Warranty policy Return and exchange policy

Figure 6: Customer experience at Dien May Xanh

6. Action plan

Dien May Xanh has carried out several marketing campaigns throughout the years to achieve

the success of promoting brand image. The campaigns are listed in the table below:

Date Category Campaign

1st November Promotion Promote the hit TVC "Dien May Xanh" on TV at peak time.

2016

16th Promotion Promote the TVC on social media: Facebook, forums,

November Youtube, Instagram, Newspapers,...

2016

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21st December Promotion Run online minigames “Leading Santa Claus to Dien May

2016 Xanh”, “Finding Slogan of Dien May Xanh”, “Sharing videos

to receive iPhone”.

29th December Price Cooperate with other brands to create discounts events.

2016 “Grand TV Party 100% Gift offered when purchasing”, "Buy

1 get 3 - Samsung" or “with any bills from 300.000 VND to

5.000.000 VND buyers will receive 0% installation interest

and a trading stamp”.

24th and 25th Promotion Do offline campaigns: Dancers wearing the signature blue

December outfit dancing flash mobs along the “Dien May Xanh” song at

2016 famous locations.

25th December Place Stores expansion: open 359 stores in 63 provinces in Vietnam

2016

30th December Promotion Sponsor various events or TV shows

2016 “Year end day”, “Táo Quân”, “Gala Tế t Việt”, etc.

- Novemer 2016: The corporate made a TVC called "Dien May Xanh" with a

straightforward and amazingly infectious ensemble: "If you need to purchase TV, air

conditioners or washing machines, let's go to Dien May Xanh..." and featured numerous

individuals wearing fascinating blue bodysuit and a TV-formed cap to act in the video.

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 The TVC was believed to be the most obsessive advertisement that year and everybody

knows about their service. Dien May Xanh started promoting this TVC on traditional

TV channels on mainstream channels such as VTV1, VTV3 or Let's Viet VTC9 at

golden hours (12.00 a.m. or 7.00 p.m.) on 1 November 2016. In special occasions such

as Tet holiday or other national anniversaries, the advertisement is also repeated. Dien

May Xanh promoted the TVC and related images on social media sites Facebook,

Youtube, Instagram, Newspapers, forums, and so on from 16 December 2016 to 16

January 2017. The campaign is spread especially on pages like Goc Thu Gian,

BEATVN JSC, Truyen Cuoi, EM+, etc. As it earned 204,740 discussions, 232,369

comments, 2,891,601 likes and 148,222 shares, the findings turned out to be

surprisingly amazing.

- December 2016: They created numerous online mini games or gifts from 21 December

2016, such as "Leading Santa Claus to Dien May Xanh," "Finding Dien May Xanh

Slogan," "Sharing iPhone videos." Dien May Xanh has cooperated with many famous

brands on 29 December 2016 in creating discounts, such as “Grand TV Party 100%

Gift offered when purchasing”, "Buy 1 get 3 - Samsung" or “1 to 1 exchange program”.

Thousands of dancers wearing the signature blue outfit were hired to dance flash mobs

along the "Dien May Xanh" song on December 24 and 25, 2016. These activities are

taken place in the most famous places of interest, namely: Nguyen Hue Pedestrian

Street, Bitexco Financial Tower, Guom Lake, etc. Since 25 December 2016, Dien May

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 Xanh has made an enormous improvement in its retail store network since 30 outlets to

359 stores in all 63 provinces in Vietnam (Marketing Strategy number 1, 2016). Starting

on 30 December 2016, Dien May Xanh began sponsoring various popular events or TV

shows that regularly receive high ratings, such as: “Year end day”, “Táo Quân”, “Gala

Tế t Việt”, etc.

7. Budget

For the first marketing objective, Dien May Xanh achieved outstanding figures. In 2012, the

revenue increased by 151%. In the next year, despite the gloomy electronics market, the

revenue still increased by 29% and continued to increase to 50% in 2014. Compared to an

objective of 60% increase in revenue, the first quarter increased by 91% in 2014 which higher

than expectation. Mr Nguyễn Đức Tài-president of The Gioi Di Dong shared that the

advertising expense in 2016 is up to 100 billion VND ($4323603).

8. Control

Dien May Xanh is planning tight control measures to closely monitor product quality, brand

awareness, brand image, and customer satisfaction. This will enable the company to react

quickly if customers change their buying behaviours. Contingency plans are also needed to

handle any expected issues such as competitors.

9. Marketing campaign proposal and taglines

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NEW YEAR IS COMING
LET'S DECORATE YOUR HOUSE
Washing machine - TV - Fridge - Air Conditioner
All are discount up to 50%
all are discount up to
50%

Taglines: Let us customize your house

We make it your home

To bring you a convenient world

Your home - your space

our future - our face

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