THE 7ps MARKETING MIX OF VIETJET AIR

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
1.2.

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


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
3.2.3.1

Using positioning maps to plot competitive strategy:....................................21
Marketing Strategy Evaluation.....................................................................21

3


3.2.3.2
Customers' perceptions:.................................................................................22
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 hồn thiện Distribution strategy của cơng ty....................................38
4


4.4.1
4.4.2

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

5


4.7.1.2 Service employees as a source of Customer Loyalty and Competitive
Advantage...............................................................................................................55
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

6


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


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.

9


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 world, developing not only aviation services but also providing
consumer goods on an e-commerce platform, a brand that is loved by customers. love and
trust.
Mission:
-

Exploiting and strongly developing domestic, regional and international routes

-

Bringing a breakthrough in aviation services

-

Make air service a popular means of transportation in Vietnam and internationally

-

Bringing joy and satisfaction to customers with outstanding, luxurious service and
friendly smiles.

1.2.3 Goals and Core values
Goals:


Creating a new historical milestone for the aviation industry, making Vietjet a "made in
Vietnam" global airline.


Core Values: Safe – Fun – Cheap – On time

1.2.4 Operational scale
VJA operates more than 385 flights per day and has carried more than 65 million passengers,
with 105 routes covering destinations in Vietnam and international routes to Japan, Hong
Kong, Singapore, Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia, etc.
Vietjet plans to develop a wide flight network throughout the Asia-Pacific region, is studying
to continue expanding routes in the region and has signed contracts to purchase new and
modern aircraft with major aircraft manufacturers in the world.


CHAPTER 2: MARKET ANALYSIS OF AVIATION
INDUSTRY AND COMPETITORS:

Overview of the world Aviation Industry and the Domestic Aviation
market:
Currently, airlines are still struggling to maintain operations, partly thanks to the
resources of businesses, partly thanks to financial support from the government. However,
according to the assessment of organizations, with strong vaccine programs in countries and
gradually loosening policies to open up internationally, it is expected that aviation activities
will gradually become bustling and recover from the beginning of 2022. The number of
passengers transported dropped sharply due to flight restrictions and social distancing,

causing international and domestic routes to be suspended. The airline market also faces
difficulties when tourism demand is low, leading to a decline in passenger arrivals. After
recording a sharp decline of 86.5% and 87.7% in April and May respectively due to the
outbreak of the disease, the market recorded a gradual recovery in the following months
thanks to the stimulus policies. during the tourist season, which mainly serves domestic
tourists. For the whole year 2020, the number of passengers transported reached 34.8 million
passengers, down 61%; in which international visitors reached more than 3 million visitors,
down 79% and domestic tourists reached 31.7 million visitors, down 25%, a decrease much
less than the world average.
In Vietnam, with the best anti-epidemic record in the region and a country with the
advantage of 22 airports, it is expected that Vietnamese airlines will gradually recover, and
are expected to open international routes in the fourth quarter of 2021 and start to recover
gradually in 2022.

2.1

MACRO ENVIRONMENT :

2.1.1 Economic environment
Vietnam's economy in recent years has made great progress, with an annual growth rate
of 7% to 8.6%, per capita income has increased significantly. Vietnam's economy is changing


its face, infrastructure is being upgraded, investment is increasing. With the rapid
development


of the economy, human needs also increase, including the need for travel. People with high
incomes have an increasing need for air travel.
Vietnam's economy has achieved quite high growth. Besides, GDP per capita also

increased by more than 40%, from 1,532 USD/person in 2017 to 2,171 USD/person in 2020.
Socio-economic situation Our society has made positive changes in the right direction, and
the macro-economy has become more and more stable. These issues will create favorable
conditions for the development of aviation transport.
In the coming years, it is forecast that the world economy will continue to grow at an
average rate of 3.5% in the period 2015-2020; The world tourism market will increase by an
average of 3.6%/year. In 2015, there are nearly 1.18 billion foreign tourists, up 4.4% over the
previous year. This is a very important premise for international and regional aviation to have
strong growth and development conditions, including the aviation market.

2.2.2 Technology environment
The change in technology has had the most direct and strongest impact on the business of
the aviation industry. It not only ensures safe flights, but also involves many other activities
in the air transport business. The first is aircraft manufacturing technology. This is the most
important factor in the success of airlines. The production of safe, good quality, fuel efficient,
business efficient aircraft of medium and large sizes ensures flights requiring high
technology. These aircraft were born, making the previous aircraft lines obsolete, reducing
the competitiveness of less innovative airlines and modernizing the fleet - creating a pressure
on airlines.
For the management of mining operations, the Company uses Geneva software. This
software helps the company to optimize its resources in terms of flight schedules, crew
schedules, simplify flight handling and flight time control. The company uses SunSystems to
manage procurement, finance and accounting processes. In addition, the company also
applies AMOS to manage materials and aircraft spare parts.
Orienting investment in information technology on the Internet, the Company will build
an expanded e-commerce technology platform to facilitate customers in buying tickets and
goods and services from the website. VietJetair.com. Besides, the Company will continue to
invest in ERP solutions for business operation management under the model "E-Company -

The company is currently working with PriceWaterhouseCoopers Company (PWC) to
implement a private investment project. Question.

2.2.3 Political - legal environment
Vietnam is considered to have the most stable and peaceful political environment. With a
stable political background leading to unoccupied airports, free skies, unregulated, favorable
conditions for airlines to do business.
In parallel with the process of international integration, the State continues to adopt
policies to improve the investment environment, increase the attractiveness of foreign
investment, and focus on investment of multinational companies; Encourage and promote
tourism development, shift from exploring tourism business to building a real tourism
industry, considering tourism as a spearhead economic sector; Foreign investment (FDI)
achieved a growth rate of about 5-7%/year; the source of tourists from abroad to Vietnam will
grow at 10 12%/year, domestic tourists 10-11%/year.
The Vietnamese government's removal of the 15% tax on imported fuel and investment
in infrastructure to meet future demand is considered an important step. Vietnam has well
implemented the conversion of paper tickets to electronic tickets, next needs to promote
freight transport through electronic transactions to serve exports.

2.2.4 Socio-cultural environment
Currently, Vietnam is in the period of "Golden population structure" because the
population structure by age changes rapidly. This is a period that brings many opportunities
thanks to an abundant working-age population. However, it is also a challenge in the process
of improving the quality of human resources, creating jobs and jobs with high productivity,
quality and income. Vietnam is recording the highest proportion of young population in
history. The population aged 10-24 in our country currently accounts for nearly 40% of the
population
- With the current population situation in our country, Vietjet Air - a low-cost airline, focuses

on the young customer segment, active and first-time flyers, middle-income people.

Customers who are proficient in using technology and the Internet such as smartphones,
email, social networks, online payment methods: visa, master card, ... and have a hobby
of exploring, traveling often at the right cost. Most of Vietjet's customers are those who
like innovation, creativity and love to connect,...


Since its establishment, Vietjet has not looked at how much the aviation market share has
been "captured", but only focused on how much more can be exploited. VietJet Deputy
General Director vindicated: If we keep looking at the water that has been poured into the
capital, VietJet will not see the opportunity of the city to be poured more. Thanks to that
"strange" thinking, VietJet saw a great opportunity: "With 100 million people, only 1% of
Vietnamese people use air transport, 99% of the chances are Vietjet". VietJet also does not
target customers who have already flown. With the same mindset as a glass of water with
half, Vietjet has made a decision to target customers who have never been on a plane. The
breakthrough in thinking is to consider traveling by plane as simple as taking a bus, not as
luxurious as riding a limousine.

2.2.5 Natural environment
The geographical position of Vietnam is quite favorable for the development of the
aviation industry with a location on the edge of Southeast Asia, in the middle of the
international air route connecting from east to west, from north to south is suitable for
building the flight network between the US and Australia with short flights within Southeast
Asia and inlandVietnam. With the characteristics of Vietjet Air's route network built
according to the "shaft-spoke" model with high operating frequency, good transshipment
service in Hanoi. Inner city and Ho Chi Minh City, creating competitive advantages with
transportation flows international cargo to/from Indochina, Southeast Asia; Vietnam step by
step become a regional air hub, competing directly with airlines major transit centers such as
Hong Kong, Bangkok, Singapore. Vietjet Air will actively cooperate in bilateral trade with
international airlines, expand routes, overcome subjective limitations, and gradually select
partners to join the global alliance in line with current trends. the general development

position of the world and the actual capacity of the company, if it makes good use of the
position of Vietnam's natural factors, it will significantly increase the production of its goods
in these markets. However, Vietjet Air has not yet fully exploited this advantage.
2.2

MICRO ENVIRONMENT:

2.2.1 Finance
Total assets by book value in 2020 compared to 2019 decreased by VND3,662 billion,
down 7% mainly because the Company transferred an investment project to support air
transport.


In 2020, the market recorded great fluctuations when the Covid epidemic broke out
and complicated movements throughout the year resulted in a 64% decrease in net revenue in
2020 compared to 2019 net revenue. When the load is low, the airlines are forced to reduce
the number of seats available, the number of flights and the frequency on a large scale in
order to increase the efficiency of seat utilization and revenue. The competition for market
share and for each flight takes place fiercely on every day, every flight, Business aircraft
rental prices down to very low levels; a series of promotions and stimulus programs are
launched to attract customers and sales channels. In the international market, Vietjet mainly
conducts a number of humanitarian flights to rescue and repatriate Vietnamese people under
the coordination of authorities.
During the year, Vietjet made transfer transactions of investment projects and made a
profit of 1,773 billion VND to compensate for losses in aviation activities. As a result,
consolidated profit after tax reached VND 69 billion, making Vietjet one of the rare airlines
with a profit in 2020.
Table 1: Structure of the company's shareholders as of January 4th, 2021

No

A

Shareholder

Domestic
shareholders

1

Organization

2

Personal

B

Foreign
shareholders

1

Organization

2

Personal

C

Treasury shares
Total

Number of

Number of

Value

Proportion

shareholder

Stocks

(VND)

(%)

6.373

422.615.111 4.226.151.110.000

78%

74 272.297.893 2.722.978.930.000

50%

6.299 150.317.218 1.503.172.180.000

28%

1.080 101.223.483 1.012.234.830.000

19%

81 100.669.696 1.006.696.960.000

19%

999

553.787

5.537.870.000

0%

1

17.772.740

177.727.400.000

3%

7.454 541.611.334 5.416.113.340.000

100%


(Source: List of shareholders, provided by VSD on January 4, 2021)

2.2.2 Suppliers
• Aircraft leasing company: Alafco Aviation
• With about 300 flights per day, the purchase of products by Vietnam Airlines Dung Quat Oil
Refinery will help businesses save on transportation costs moving, warehousing and not be
under pressure of foreign currency in the context of the economy as the current. At the same
time, contributing to reducing the trade deficit for the country. From August 2010 to now,
Binh Son Refining and Petrochemical Company has sold to domestic and foreign partners
more than 28,600 tons of Jet A1 jet fuel. It is estimated that each year Dung Quat Refinery
will produce about 400,000 tons of Jet A1 gasoline, meeting about 35% - 40% of the current
fuel demand for Vietnam Airlines.
• Marketing service establishments: market research companies, advertising consultants
• Product distribution: resellers, ticketing websites
• Financial intermediaries: 3 major shareholders and ACE Insurance Co…
• In addition, some familiar partners of Vietjet Air in SLB deals are GE Capital Aviation
Services Limited, Awas Aviation Trading Limited; Awas 7170 Ireland Limited; Avation PLC;
Goshawk Aviation Limited; Goshawk Management (Ireland) Limited; Jackson Square
Aviation, LLC…

2.2.3 Customers
• Consumers: individuals and households who have a need to fly
• Producer: charities, entertainment companies, media events
• Distribution intermediaries: ticket agents
• International customers: tourists, foreign businessmen, overseas Vietnamese, public officials
coming to Vietnam to work

2.2.4 Media
• Vietjet Company operating under the name Vietjet Air, certified on December 20, 2007
. However, after many delays, it was officially put into operation in 2011 and quickly
received the support of domestic customers because the ticket price is very cheap.
• The main office is at Tan Son Nhat International Airport in Ho Chi Minh City and a branch at
Noi Bai International Airport in Hanoi with a registered capital of 600 billion VND, Vietjet
Air is a 100% Vietnamese owned company with 3 main shareholders: T&C Group, Sovico
Holdings and Ho Chi Minh City Joint Stock Commercial Bank and Housing Development.
• Owning 100 aircraft of all kinds: 62 ordered, 30 more purchased and 8 leased with the time
until 2022 with a total transaction value of about $9.1 billion from the manufacturer.
• Vietjet is the first airline in Vietnam and a few in the region to own the latest and most modern
Sharklet A320 aircraft from Airbus.
• The modern fleet is an international, professional crew. With experienced and friendly flight
attendants, providing quality aviation services, serving customers, Vietjet Air is a young and
dynamic airline trusted by many passengers and has become a leading airline in Vietnam.
domestic and regional favorite airline. The area is known for the brand "Fly is like right
away"
• Vietjet has developed a wide domestic flight network and plans to develop a network of routes
in the Asia-Pacific region. Meeting the increasing travel needs of domestic as well as
international people with the rate of on-time flights and service quality that is always at the
forefront of the industry. The highlight of the airline is that it always offers many choices of
flights, not just a means of transport, Viejet is always creative, bringing customers many
interesting tricks and fun on flights.

2.2.5 Employees
In 2020, while many airlines around the world simultaneously cut staff in order to
maintain business operations during the ongoing Covid-19 pandemic, Vietjet took advantage
of the opportunity to recruit qualified personnel. from the domestic and international labor
market.

During the year, Vietjet recruited 792 new employees including 13 pilots, 125 flight
attendants and 654 other employees.


2.2.6 Shareholders
The Board of Directors of the Company includes 01 General Director, 01 Chief
Executive Director (CEO), 08 Vice Directors and Chief Accountant. The General Director is
the legal representative of the Company, manages all day-to-day activities of the Company
and is responsible to the Board of Directors for the implementation of the assigned rights and
duties. The CEO, Vice Directors and Chief Accountant directly manage production and
business activities, and advise the General Director to make strategic decisions for the
Company.
Table 2: List of Board of Directors
No.

Full name

Position

1

Nguyen Thi Phuong Thao

General Director

2

Dinh Viet Phuong

CEO

3

Ho Ngoc Yen Phuong

Vice Director & CFO

4

To Viet Thang

5

Nguyen Thi Thuy Binh

Vice Director

6

Nguyen Thanh Son

Vice Director

7

Nguyen Duc Thinh

Vice Director

8

Do Xuan Quang

Vice Director

9

Luong The Phuc

Vice Director

10

Tran Hoai Nam

Vice Director

11

Hoang Manh Ha

Chief Accountant

Vice Director of Exploitation
And Safety, Quality, Security


2.3

COMPETITOR

2.3.1 Direct Competitors:
In recent years, Vietnam's air transport market has really exploded as private and
state- owned airlines vie for market share in a price war. Vietjet Air is highly competitive with
domestic airlines such as Vietnam Airlines, JetStar Pacific, Bamboo Airways,..In the future,
low-cost airline services will continue to expand and the level of competition will increase.
Along with competition in the domestic market, Vietjet Air also has to compete with
airlines from countries inside and outside the region. In 2017, fares for flights from Europe to
Vietnam decreased significantly. If in the past, these routes VNA competed mainly with
French and German airlines, now, when German airlines have to give way to airlines from the
Middle East, VNA is forced to compete with very strong opponents, difficult to balance.
While VNA has only 4 routes to Western Europe (Paris, Frankfurt, London, Moscow),
Middle Eastern airlines have routes to all cities in Europe.

2.3.2 Potential Competitors
We can divide potential competitors into two main groups: the group of small and
medium-sized airlines in the region, the group of major airlines in the world.
• Small and medium airlines: These are mainly newly established domestic airlines or small
regional airlines that have just opened routes in Vietnam, this group of airlines often take
advantage of the following advantages to compete:
-

Small and medium scale, compact management systems lead to low cost.

-

Advanced technical technology helps reduce costs (take advantage of the Internet for
ticketing, use new generation aircraft more flexible). For example, Air Mekong uses
Bombardier CRJ 900 series of jets, thereby doing unprecedented things such as direct
flights from Hanoi to Phu Quoc, Pleiku, Con Dao. Choose short routes, actively

build new routes not yet exploited by Vietjet Air.

-

Dividing a long flight into reasonably short segments (For example, with the route
HCM-Bangkok, a Cambodian airline can open a route HCM-Siem Reap-Bangkok to
take advantage of a group of customers who like to travel with the wish one trip can
go to 2 places).


-

There are many ways such as: homogenizing seats, using only one type of plane,
eliminating food services, free newspapers, if you want to be served, you have to pay
extra) For example, an airline has been established: Air Mekong.

• Major airlines in the world: Because the Vietnamese aviation market is quite small, this group
of large airlines often does not build direct routes as well as domestic flights in Vietnam.
However, these airlines can compete with Vietjet Air in the following ways:
-

Building a route to Vietnam that connects to another country with a more stable
market (e.g. Thailand or Singapore). So with the reverse flight from Vietnam, they
will be
able to lower the price a lot to promote the brand, destroy the opponent, but the profit
will not affect too much.

-

Use strong financial resources to conduct strong discounts to build a name, build

trust in customers, causing small competitors a lot of difficulties, even bankruptcy.

-

Link with a domestic airline through the form of capital contribution. Currently, the
government's new policy is very open, not only encouraging the establishment of
private airlines, Vietnam will also be calling for foreign investors to join the
association with the condition that the legal representative is a Vietnamese citizen
and the charter capital of the foreign airline does not exceed 49%.). For example:
Qantas Airways used to be bought 30% of shares and became a strategic shareholder
of Jetstar, thanks to its very strong potential, Qantas Airways helped Jetstar offer
almost unbelievable prices.


CHAPTER 3: TARGET CUSTOMERS AND POSITIONING
STRATEGIES
3.1

TARGET CUSTOMERS AND POSITIONING STRATEGIES

3.1.1 Target customers
VJA's customers are those who need to travel by air.
VietJet Air is a low-cost airline, because of this, it has attracted many young people
and middle-income people. VJA focuses on segmenting target customers who are young and
dynamic people. VietJet Air had the idea to attract this group of customers, so the brand
personality was built on three personality traits "Playful", "Creative" and "Inspiring". In
addition, VJA also targets customers who are proficient in using technology and the Internet
such as smartphones, email, social networks, online payment methods: visa, master card, etc.
and have a hobby of exploring, traveling often at a reasonable cost. Most of Vietjet's
customers are those who like innovation, creativity, connection, etc.

For high-income customers, VJA has high-class services suitable for these customers.
Customers can enjoy personalized services when using Vietjet's premium services (lounge,
food, private shuttle...).

3.1.2 Behaviors related to target customers:
3.1.2.1. Customers' perception of using Vietjet Air's services:
Nowadays, people's travel needs are increasing, especially by air. Recognizing the needs
of customers, VJA has struck into the minds and perceptions of customers about its services.
Therefore, to stimulate customer demand, VJA has divided into 3 triggers of need:
•

Unconscious mind: the customer's personal need for air travel.

•

Physical conditions: Because the need to use aviation services is suitable to the
customer's conditions, the customer has decided to choose VJA.

•

External sources: the customer's decision to buy services is affected by marketing
activities that VJA has launched such as advertising, service quality, brand,...


3.1.2.2. Customers searching for information about Vietjet Air's services:
Because the demand for air travel has sparked an effort to find information related to
air services. Through searching, customers have received many sources of information about
this service. This information has suggested to customers many different services and brands.
Before the customer makes a decision, the client considers factors gained from past
experience or external factors. From there, offer alternative solutions and consider, evaluate

and make a final choice. Realizing that, VJA has launched extensive marketing strategies to
create stimulation and access to demand so that customers can choose to use VJA's services.

3.1.2.3. Customer reviews of other options or alternatives:
Besides Vietjet Air, customers also have other options such as Vietnam Airlines,
Bamboo Airlines. Jetstar,... And customers will base on the following attributes to make the
final decision:
•

The search attribute helps customers evaluate a service before choosing to use that
service: after searching for information, customers begin to compare and evaluate the
service quality of airlines such as ticket prices, food, brand value,...

•

Experience attributes: After experiencing the aviation services of different airlines,
they can assess attributes such as reliability, ease of use, and customer support.

•

Reliability attribute: show customers that the value and quality that VJA brings is
exactly what the company has committed to. An example of the airline's slogan "Bay
là thích ngay" not only offers cheap fares but also gives customers a great experience.
Besides, the airline also has attractive events such as giving small souvenirs to
customers on special holidays. These things have affected the trust of customers who
have never experienced VJA's services through the media, creating advertising TVCs,
taking photos of events and posting them on the company's newspapers and websites.

3.1.2.4 . Customers' experiences when using Vietjet Air's services:
During the experience of Vietjet Air's services, the airline has shown customers the true

quality of service. This thing is doing from the customer check-in before the fly to when the
machine fly to the world. Flight options match the criteria selected by the customer, some
customers will choose domestic flights, others will choose flights outside the country, should
work with long or short service contact belongs to the row of the options.