(TIỂU LUẬN) group assignment SITUATION ANALYSIS AND MARKETING STRATEGY FOR NEW PNJ SILVER JEWELRY COLLECTION

Group Assignment

SITUATION ANALYSIS AND MARKETING
STRATEGY FOR NEW PNJ SILVER JEWELRY
COLLECTION

Class: MKT1705
Teacher in charge: Le Minh Viet
GROUP 3
Nguyen Ngoc Thuy Tien
Le Hoai Phong
Nguyen Anh Duy

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Table of Contents
Executive Summary:........................................................................................................................................
I.

Introduction:.............................................................................................................................

1.Company Background:.............................................................................................................

2.Introduction about the Product/Service:...................................................................................
II.

Situation Analysis:......................................................................................................................

1.Company analysis:...................................................................................................................
1.1.

Competitive Advantage:....................................

1.2.

Market Share:....................................................

1.3.

Company Issues:...............................................

2.Current Customer Analysis:.....................................................................................................

3.Competitor Analysis:................................................................................................................
3.1.

Doji Gold & Gems Group (Doji):.....................

3.2.

Sai Gon Jewelry Company Limited (SJC)........

3.3.

SBJ Gold Company:..........................................

4.Markting Environment Analysis:.............................................................................................
4.1.

Demographic forces:.........................................

4.2.

Economic forces:...............................................

4.3.

Technological forces:........................................

4.4.

Political forces:.................................................

4.5.

Cultural forces:..................................................

5.SWOT Analysis:.......................................................................................................................

III.

5.1.

Strengths:..........................................................

5.2.

Weakness:..........................................................

5.3.

Opportunities:....................................................

5.4.

Threats:..............................................................

Marketing Strategy for the new product / Service....................................................................

1.Segmentation / Target market:..................................................................................................

2.Positioning / Value proposition:...............................................................................................

3.Marketing Mix (4Ps)................................................................................................................
3.1.1

Product:.............................................................

Main products: “Luminary – Tinh Tú”: Sterling Silver Jewelry Collection .............................
˗
Details: Luminary Sterling Silver PNJSilver Pendant, Luminary Sterling Silver PNJSilver
Earrings, Sterling Silver PNJSilver Bangles.............................................................................................. 15
3.2

Price:................................................................................................................................................ 16

3.3

Place:............................................................................................................................................... 17

3.4

Promotion:....................................................................................................................................... 17

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IV.

Appedix:.................................................................................................................................................. 18

V.

References:.................................................................................................................................................. 18

Executive Summary:
The main aim of this research report is to carry out a comprehensive analysis of the Phu Nhuan Jewelry
Joint Stock Company’s situation and represent a marketing plan for new collection. In so doing, the work
would go through the company background and it product lines, and most importantly, formulating a
company situation of the company along with the market share, competitive advantage, current customer,
competitor, marketing environment and SWOT analysis.
Finally, the paper will show the marketing plan for the new products based on current company and market
situation.
I. Introduction:
1. Company Background:
Phu Nhuan Jewelry Joint Stock Company, abbreviated as PNJ, is one of Vietnam's most well- known and
recognized jewelry retailers. PNJ is not only successful in Vietnam but it was also named one of the top 500
retailers in the Asia Pacific by Retail Asia magazine (Singapore) between 2004 and 2016. PNJ was founded on
April 28, 1988, in Phu Nhuan District, Ho Chi Minh City, Viet Nam by twenty progressive like-minded persons.
Since then, it has affirmed its position in the Vietnamese jewelry market with strong and steady growth and

performance, combining its position as the largest player in the Vietnamese jewelry business.

By the end of January 2022, PNJ has 329 stored around Vietnam with 310 PNJ Gold stores, 10 PNJSilver
stores, and 9 other stores (CAO, Watch, Art, and Style), nearly 2,500 employees, and the distinction of being
the only Vietnamese company capable of exporting gold and jewelry to the international market, PNJ has not
only set up a dominant presence in the country but has also advanced to do business internationally.
The company always assures customer pleasure by diversifying products and services of the best quality at
a fair price, developing management and manufacturing systems, and enhancing the skills of artisans as
given to the company mission statement. PNJ also furthers its business by supplying the sponsorship to
many beauty competitions, such as the Elegant Talented Student Danang University 2019, Vietnam Young
Lions 2019, 6th Vietnam Startup Wheel 2019, Business Journey 2019 of Miss Universe, and Miss Earth
2010, Nevertheless, in 2012, the claimed Asian biggest jewelry manufacturing factory was built to
accelerate the firm’s productivity to the next level.
PNJ has earned many commendable successes and is well on its way to approaching its vision, with the
aim of being the leader in the jewelry fashion sector in the Asia market, including the suggested philosophy
“Customer benefits is our commitment.” Net revenue reached more than 17,510 billion VND and net profit
exceeded 1,069 billion VND, exceeding 20.9 percent and 28.5 percent of the goal, respectively. There is a
profit margin of 19.6%. Forbes Vietnam values the PNJ brand at 93.1 million USD, up 18 percent from
2019. Talent.net praised and commended PNJ's prompt and effective F5-fresh practices as an Excellent
Human Resources Policy Responding to Covid-19. Not content with that, PNJ's fruitful gold season was
capped off with a slew of awards, including Top Vietnam 100 Best Places to Work, Top 10 out of 100
Sustainable Development Businesses in Vietnam, Vietnam's 50 Best-Performing Companies, and a slew of
other prestigious domestic and international honors and awards.

2.

Introduction about the Product/Service:

PNJ Gold: PNJ Gold Jewelry has been developing since its start in 1988, launching hundreds of collections with
a variety of gold materials and rich gemstones. Wedding jewelry lines such as Hanh Phuc Vang, Hoang Gia,

Phuong Hoang, Mystery, Ngoc Bien, Ngu Hanh, and others are introduced one by one. PNJ enhances the value
of each piece of jewelry, not only to enhance the external attractiveness of the wearer but also to honor the actual
values and noble traits of the wearer. PNJ elevates the worth of each jewelry product, not

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only to embellish the exterior beauty but also to celebrate the actual values, and noble traits of the
owners, with the slogan "Seeing the Quality in You."
PNJSilver: PNJSilver, like a modern young lady, has always led the trend with broad and creative
collections of silver jewelry and accessories since its debut on the Vietnamese jewelry market in 2001.
PNJSilver is happy to be a jewelry brand that is easily recognized in many shopping malls around
Vietnam's provinces and cities, meeting the need for trendy jewelry of young individuals and groups.
CAO Fine Jewelry: Set up in 2005 with two “Unique” and “Creative” values as a guideline, each CAO
Fine Jewelry product is a masterpiece of jewelry with elevation, luxuriousness, and exquisiteness that is
strongly believed in outstanding Vietnamese talents in both generations of contemporary creative designers
and exquisitely skilled craftsmen to be able to bring Vietnamese jewelry and brands to the world. CAO Fine
Jewelry, with independent storefronts mixed with the ShopIn-Shop (SiS) model, is placed in the classiest
shopping districts in important cities, helping to enhance the brand experience and serve high-class clients,
keeping up with the world's leading jewelry brands in Vietnam.
PNJ Art: The advantages of design level, crafting technology, and a team of highly-skilled craftsmen and
goldsmiths have enabled PNJ to build a Gift line to offer corporate clients diverse and superior quality
models, in addition to its masterpieces respecting beauty. These corporate gift gifts are divided into six
categories to provide businesses with a variety of alternatives for expressing appreciation, honor, or
marks during the brand's history. PNJ supplies Fashion presents, Gift masterpieces, Honor gifts, Gift
envelopes, Jewelry gifts
PNJ Watch: In 2012, PNJ launched its first foray into the watch industry, targeting the midrange and highend categories, in keeping with the company's jewelry market-conquering strategy. PNJ Watch has made
consistent success with well-known brands like as Longines, Michael Kors, Movado, and Tissot... Against
the backdrop of a fragmented industry, this company aspires to be a market leader in authentic watch
distribution in Vietnam.

STYLE by PNJ: STYLE by PNJ, which will debut at the end of 2020, is a personality statement and an
inspiration for the younger generation to discover their unique personalities and egos and create unique
jewelry and fashion accessories that help them express and reflect those traits to the outside world, resulting
in your own personal style. Style by PNJ offers novel shopping experiences through independent store
formats integrated with Shop- In-Shop (SiS) to use the system's potential, with a concentration on large
cities and plans to expand coverage soon.
PNJ Lab: Inspection One Member Co., Ltd. PNJ (Inspection One Member Co., Ltd. PNJ), was founded by
PNJ with a team of experienced professionals and regularly updated knowledge and advanced technical
equipment after 25 years of activity in the field of inspection services ( PNJLab) confirms reputable
customers at home and abroad. PNJ Lab is currently the leading inspection company in the Vietnam market
and one of the few inspection companies in Vietnam that have been successfully set up and used under ISO /
IEC 17025 international standards. All PNJ Lab certificates are based on the strictest international grading
standards, including diamond grading based on the GIA Gemological Institute of America standards.
PNJLab is also one of the few companies licensed by the General Department of Standards, Measurement,
and Quality (Ministry of Technology) to measure the gold content of jewelry and works of art ... Depending
on the company or individual. When there is a dispute. Services available from PNJ Lab: Evaluation and
advice on diamonds, Precious and semi-precious stone labeling and advice, Inspection and advice on gold,
silver, precious metals, and non-ferrous metals, Diamond engraving on request.
II.

Situation Analysis:

1.

Company analysis:
1.1. Competitive Advantage:

Because of the rapid growth of PNJ, the company has become the largest segment in this field that almost no
competitors would compare to it, not even Bao Tin Minh Chau, which has always been great. A competitor to not
PNJ but all the jewelry companies. One of the biggest reasons is that PNJ had successfully earned the trust of

customers. Moreover, the company has been producing high-quality products and services for years such as
combining a comprehensive value chain with exclusive resources, human competence, and technology
application, ... Thus, they have been continuously stepping up and expanding increased branches in the market
whilst others are getting stuck at one place with serious problems such as faith. All these

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factors have strengthened the advantages of PNJ and its success. Moreover, PNJ has an impressive move
that they have successfully access to the younger generation like gen Z with Disney collections, STYLE X
CHOUCHOU collection… but PNJ still always holds a special position in the hearts of potential customers.
1.2. Market Share:
In 2017, PNJ had 28% of the market share in the jewelry segment with branches in 43/63 provinces. In
2Q20, the company increased its market share to 34,7% and 35,8% in 3Q20. Since the shares are still
accelerating, it was predicted to grow and strengthen increasingly in the next several years. And it did, until
the very first quarter of 2022, the company has already taken more than 50% of the market share. This
number is believed to be growing and seems like there is no point in stopping. Mr. Le Tri Thong, Vice
Chairman of the Board of Directors of PNJ said that the high potentiality in the future is still there because
of the economic growth in Viet Nam and the intermediate and advanced segments which are still expanding
year over year. Therefore, the company had already had plans to exploit the chances.

Figure 1.2.1: Market share and number of PNJ’s stores in Vietnam (Photo: Cafebiz)

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Figure 1.2.2: Jewelry Industry and Business
overview 1.3. Company Issues:
At the general meeting of shareholders, when assessing risks for business development work in 2022, Mr.
Thong announced that the biggest issues are development and monetary policy. In fact, the detection sign

appeared from the third and fourth quarter of last year, especially in some European countries and in March
2022, the Russian-Ukrainian conflict also had an impact on the world, the supply chain broke. However,
the Government's financial support packages will have a positive impact on the school's purchasing power.
Another issue that is no less important is about the negative equity and arrears of wages which has
been leading to massive employees quitting the job.
By the end of 2020, the company's inventory amounted to more than 5,500 billion VND, the main factor
being goods. When large inventory became a burden of capital costs, it somehow dragged down the
company's profits. In addition, the company also handed out assets of nearly 48 billion VND at the bank to
mortgage; The rights to u main cause of the problem were the money account for the inventory increased
to more than 905 billion VND.
At the end of 2021, PNJ maintains an abundant human resources, up to 6,473 people. However, in the
same year, 1,035 people quit their jobs.
Entering 2022, PNJ has supported its growth momentum and continued to conquer new heights. Sales and
service provision in the first quarter of 2022 reached VND 10,229 billion, an increase of VND 2,994 billion,
and profit after tax increased by VND 208 billion. The business prospered, so PNJ strongly increased for
the high-level leaders. However, the problem is that PNJ still must pay employees and taxes of more than
500 billion VND.
2. Current Customer Analysis:
Country region

Density
Age
Gender
Family life cycle

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Income
Occupation

Generation
Nationality
Social class
Lifestyle
Personality
Occasions
Benefits sought
User status
User rates
Loyalty status
Attitude toward product
˗

About Geographic Segmentation:

With the focus on developing the domestic market, PNJ symbolizes its influence by operating 310 outlets across
every major city and suburban area nationwide, and the figure is ever increasing. The business does not only aim
to have a significant presence in the two biggest cities, namely Hanoi and Ho Chi Minh but also has imprinted the
prestigious brand image to residents in emerging economic cities, such as Binh Duong, Can Tho, and Hai Phong.
Overall, PNJ focuses more on the market in the South of Vietnam, resulting in
85% and 70% of total revenue, for PNJ gold and PNJ silver respectively, that come from the region alone.
˗

About Demographic segmentation

Overall, virtually all PNJ jewelry products are dedicated to female customers, with only a few
exceptions such as some men’s watch collections and some exclusively designed CAO Fine Jewelry
ordered by executives.
PNJ offers four differentiated brand products to target four distinct groups of customers. To begin with, PNJ
silver aims to cater to the needs of 15 to 25 years old girls, who love fashion and are always looking for ego

expression, by offering graceful and elegant bracelets and necklaces. Next, is JEMMA, a brand option
designated for young female office workers, who are interested in looking good and renewing themselves.
Thirdly, PNJ gold segments 25 to 45 years old, prizing wealthier and medium to upper-medium class of
females who are less price-conscious. Finally, the renowned CAO Fine Jewelry includes luxury and high-end
collections, which are crafted specifically to serve high-income customers and Vietnamese overseas
˗

About Psychographic segmentation:

Here we use the 4Cs lifestyle classification, which is short for Cross-Cultural-ConsumerCharacterization proposed by (Young & Rubican, 2015).
Customers for the luxury product line of PNJ are often top managers, senior executives, affluent
businesspersons, and politicians. They are the succeeders who have work-centric, high social
status, confidence, and brand choices often toward prestigious brands.

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Aspirers are people who pay attention to appearance, tend to be younger and acquisitive. They are
concerned with their image in the eyes of other people and can be materialistic. These unflinching customers
contribute the largest sales proportion of PNJ.
Mainstreamers make up the largest category of customers who visit PNJ and are the latent consumers. They are,
however, most of society, ordinary, sentimental, and more familiar with consuming “family” brands.
˗
About Behavioral segmentation:
Without question, PNJ has the most interest in the occasions that consumers spend their disposable income
on jewelry products, considering that the general features of jewelry are only optional items, are expensive,
and are used in only particular events. Some are the predictable times of the year when the demand is high,
such as the wedding season starting in September annually. . Others events are unpredictable but happen all
year round such as prom, partner meetings, company formal parties and gala dinners.
Customers who visit a PNJ store usually already have some reasons to buy jewelry in their minds. For

whatever the reason may be, they are potential users of PNJ, and a proportion of them who have the
willingness and the ability to buy will become first-time users. The increasing level of satisfaction that PNJ
has delivered is bringing many customers back to the brand and they are occasional customers. However,
the jewelry market in Vietnam is highly competitive, with plenty of substitutes provided by competitors that
affect loyalty and drag buyers away from PNJ.
3. Competitor Analysis:

3.1. Doji Gold & Gems Group (Doji):
+

Company profile:

Vietnam's DOJI Gold & Gems Group was originally known as TTD Technology and Trading Development
Company. The DOJI brand has dominated the domestic market with a system of gold bars trading and diamond
and jewellery distribution across Vietnam. Its core cultural values are Integrity, Innovation, Synergy, Knowledge,
Benevolence and Knowledge. With a clear strategic vision, a sustainable development vision and enormous
potential, the DOJI Group has affirmed its role as Vietnam's national brand.

+

Product lines:

DOJI has various famous line of jewelry such asDiamond House - Diamond Jewelry, Color Stone Jewelry,
Wedding Land - Wedding Jewelry, 24K Gold Jewelry with 3D technology with lightweight, gold products
such as Phuc Long Au gold, blister pressed products, Linh Armor… are well received by customers and have
strong consumption power in the market.
+

Marketing stategy:

The strategy with an open mind has brought DOJI from a small company in the field of gold, silver
and gems to a multi-industry "giant". Do Minh Phu is the Chairman of the Founding Board of DOJI
Jewelry Group. He and his associates have built and developed a famous brand in the fields of gold, silver,
and gems. In 2012, the group invested in the financial sector, taking part in the restructuring of Tien Phong
Bank (TPBank). Two years later, DOJI "encroached" into the real estate sector, establishing DOJI Land. The
group owns many valuable land plots in Hanoi and Ho Chi Minh City, such as DOJI Tower, which is the
largest center for jewelry. DOJI's goal is to become one of the leading multi-industry corporations in
Vietnam in the next 5 years. The Group has set out many new strategies to overcome the limitations of a
traditional gold and silver business, increase market share in the domestic market and boost exports to many
markets. According to the Chairman of the DOJI Founders Council, the company does not invest in multisectors following the movement but takes cautious steps.
Distinct multidisciplinary strategy. According to the Chairman of the DOJI Founders Council, the company
does not invest in multi-sectors following the movement, but takes cautious steps: "The three areas DOJI
participates in have close relationships, all of which are difficult and risky areas. DOJI believed that the risk is
high, but they are confident because they had taken time to prepare carefully before making the right decision. To
implement a multi-industry strategy, enterprises must have strong financial potential. Currently, DOJI has equity
of VND 4,500 billion and total assets of VND 12,000 billion. Revenue in 2009 reached 11,000 billion VND, in
2019 it is expected to be more than 8 times higher at 90,000 billion VND. In

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the overview, DOJI’s development strategy is very thorough, there is a continuous process. The company
seizes the opportunity, and chooses sometimes to take explosive and breakthrough steps if it sees
opportunities from the market. For example, when building DOJI Tower with a location near Ho Guom
streets, the Group wants to create a unique cultural and tourist destination of the capital, where
international tourists can admire and shop for products. Gold, silver, high-class gems made by Vietnamese
people. DOJI cooperates with travel agencies, putting the building in the list of tourism products,
increasing the choice of places to visit for visitors.

3.2. Sai Gon Jewelry Company Limited (SJC)

+

Company profile:

SJC is a corporation that buys and sells gold and silver, as well as processes, creates, imports, and exports
jewels, gems, and semi-precious stones. Producing gold bullion... Saigon Jewelry Company (SJC) is
Vietnam's leading producer and distributor of gold and gold jewelry. Saigon Jewelry Company Limited
(SJC) is a unit directly under the HCM City Party Committee and controls 90% of the local gold bullion
market. The SBV selected Saigon Jewelry Company (SJC) as the sole business allowed to make gold bars in
Vietnam in May 2011. SJC is the national gold bar brand and was a monopoly manufacturer. The company
model includes the parent company, 23 branches, 6 subsidiaries and 6 associate companies, 13 invested
enterprises. Distribution network includes more than 200 stores, 43 official agents, over 3,000 retail stores
nationwide. Besides, SJC also has a concentrated jewelry production factory, which produces more than
500,000 products a year. Distribution network includes more than 200 stores, 43 official agents, over 3,000
retail stores nationwide. Besides, SJC also has a concentrated jewelry production factory, which produces
more than 500,000 products a year. The main company, 23 branches, 6 subsidiaries and 6 associate firms,
and 13 invested enterprises comprise the corporate model. More than 200 outlets, 43 official agents, and over
3,000 retail retailers are part of the distribution network. SJC also has a focused jewelry production plant that
generates over 500,000 goods every year. DOJI now owns more than 200 outlets, 43 official agents, and over
3,000 retail retailers are part of the distribution network. SJC also has a focused jewelry production plant that
generates over 500,000 goods every year.
+

Product lines:

SJC launched the first gold bar product branded with Golden Dragon SJC 999.9, including 1 piece, 2
thread, 5 piece, 1 tael and 2 tael, which changed the payment method. with gold rings, old gold leaf in the
domestic market. In 1992, SJC was the first organization to organize the Vietnam Jewelry Expo (the only
fair on the jewelry industry in Vietnam) and has been continuously organized by SJC every year until now.
March/ 1993, Changed its name to City Jewelry Company - SJC, the name is Saigon Jewelry

Company.Now, SJC a lso provide mid-priced and luxury jewelry.
+

Marketing strategy:

SJC with a long-term strategic vision, becoming a leading economic group in Vietnam, is a brand that is not
only national but also international. Currently, the company has 23 major branches, 6 subsidiaries and 6
associate companies, 13 more invested enterprises, proving that SJC's development resources are very
strong.
More than 200 main stores, 43 big agents and over 3000 retail stores nationwide. SJC has covered
almost every area in the country. In addition, currently SJC is considered the unit of gold price in
Vietnam, it directly reflects the domestic gold price and future trends.
SJC does not focus mostly on the high- end customer segment, the company's products are divided into
reasonable niches for everyone to own. Whether it's popular or high-class jewelry, it is focused on quality,
form and value. This is put on the forefront of SJC during its operation.
In addition, the company offers attractive after-sales policies for customers. For that reason, SJC
is considered the second most prestigious when customers want to trade gold.

3.3. SBJ Gold Company:
+

Company profile:

Saigon Thuong Tin Bank (Sacombank-SBJ) Gold Silver Jewelry One Member Limited Liability Company
(Sacombank-SBJ), a subsidiary of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), began

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operations on November 28, 2008. Sacombank-SBJ actively expands on the idea of a multi-product

center, integrating exhibition, sale, and purchase, with the criterion of "rapid, efficient, yet safe, and
sustainable growth."
+

Product lines:

SBJ diver they jewelry product lines with feng shui gifts, high-class jewelry gifts for individuals, units...
+

Marketing strategy:

Sacombank-Branches SBJ's and Stores benefit from being Sacombank members in terms of location, as
they are located in Sacombank's Branches or Transaction Offices: Congested location, close to various
business hubs and recreation places, providing the finest convenience for customers to visit and shop.
The demand for quality inspection of gemstone items is increasing in tandem with the expansion of
Vietnam's jewelry business. As a result, Sacombank-SBJ formally launched the Jewelery Inspection &
Service Center in accordance with worldwide standards on September 29, 2009.
4.

Markting Environment Analysis:
4.1. Demographic forces:

In October 2021, Vietnam had an estimated population of 97.338.579, and the number of people whose age
is between 15 and 54 accounts for the greatest proportion of 60,92% with 15.22% of age between 15-24
years and 45.7% of age between 25-54 (CIA World Factbook, 2020). This is a big market and, as a result,
PNJ can take this young, large, and rapidly growing population to its advantage. Moreover, the number of
city dwellers is 37,70% of the total population with 36.727.248.
According to the analysis of experts from Vietcombank Securities Company (VBCS), PNJ benefits greatly
from the long-term growth potential from Vietnam's population of more than 97 million people with 69.3%
of the population in the 15-64 age group, in the working and consuming age group. 51% of the population is

female, which is the group with high demand for jewelry consumption. Along with that, the income of the
middle class is growing rapidly, contributing to the demand for branded jewelry. Besides, the market also has
opportunities to increase market share for retailers with big brands, these opportunities come from small
businesses/small brands who can't resist after the pandemic. COVID-19. About the traits of the jewelry
industry, the emerging middle-class brings prosperity and opportunities to PNJ.
World Gold Council has pointed out that 2021 demand for jewelry in Vietnam increased 11% higher than the
2020. But the jewelry market was hit hard by COVID-19. Jewlery outlets were allowed to reopen in
October, but the severe effects of the pandemic in Vietnam have left consumers cautious about making high
value purchases. Despite this, sales picked up in November, reflected in strong q-o-q growth, with
promotional campaigns and the wedding season in Vietnam contributing to the recovery. Demand is likely to
continue to pick up as Vietnam’s economic recovery boosts consumer confidence. Q4 GDP grew 5.2%, and
a major government stimulus package is likely to further support a recovery.
4.2. Economic forces:
To cope with the market turmoil after the COVID-19 pandemic from 2019 to 2022, PNJ has actively
restructured its retail outlets. In 2020, the company opened 29 new outlets but closed 36 to have better
rental and locations. This year, PNJ plans to open 40-45 new outlets and invest more in production
technologies and product design.
According to General Statistic (GSO), per capita monthly income of Vietnamese people was averaged at 4.2
million VND (182.7 USD) in 2020, down 1 percent year-on-year. Deputy head Nguyen Trung Tien attributed
the decrease to the impact of the COVID-19 pandemic. Besides that, based on the global data and research
house ECA International, the annual Salary Trends Report recently released by U.K also pointed out that the
average real salary rise for workers in Vietnam in 2020 is projected to be 5.1 percent, up from 4 percent
which means the development of middle-class and lower-middle-class.
4.3. Technological forces:
Back in 2013, Circular 22 was imposed to tighten the gold jewelry business, causing many small units to stop
running temporarily. When other businesses were still confused by the change and some of them had just
started to return to promoting the jewelry manufacturing segment. At this time, PNJ owned the largest

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jewelry manufacturing factory in Vietnam using modern technology from Europe, specifically Italy and
Germany, these are the two “big men” in the industry. All of this was what PNJ had accumulated over the
years and then widened the gap significantly so that competitors would never be able to even get close. With
modern technologies, whenever a new designed product had been approved, it was then transferred to the
factory, in just one morning, there would be an immediate production process, time for each stage, loss
costs, labor costs. and total cost. Outstanding production ability ensures the supply of PNJ brand stores
nationwide.
Later, with the advent of modern technology which was so called information technology (IT), at that time
this type of technology was dominating the market and bringing countless benefits. During the outbreak of
the Covid epidemic, to keep revenue and profit from customers, PNJ applied innovative technologies such as
AWS's cloud computing to help flexibility in business, promote online service provision and improve service
quality. After realizing that technology is the key of this period, especially Information Technology, PNJ
continues to focus on building a specific omni-channel (multi-channel sales) system in the 2021-2022 period
exclusively for businesses. In addition, technologies such as blockchain technology, AR, VR help PNJ's
stores become smarter.
4.4. Political forces:
Decree No.24/2012/NĐ-CP is a regulation that was in some mean flattering large jewelers like PNJ and SJC.
However, the circular was mainly to tighten controls on the gold and jewelry industry, allowing only a small
number of highly qualified firms to run in the market. Individuals interested in running this type of business
will need to apply for a business license (Nguyễn Thị Cúc, 2015).
Circular 22/2013/TT-BKHCN was the most effective circular back then, which severely deteriorated all the
enterprises. According to the circular, all jewelry companies must explicitly declare the amount of gold in
each of their products. This helps to increase the market's clarity of jewelry qualities, which had been
allowed to float freely for a long time, and efficiently cuts gold age fraud (FPT Securities, 2014) (From the
PNJ's 2014 Annual Report)
Decree No.36/2015/TT–BTC, which went into force on 07/05/2015, was a blow against PNJ. On all "gold
jewelry product, craft, and other gold products having a gold content of 95% and above," the exportation
tax was raised from 0% to 2%. (PNJ News, 2015). The entity's gold exportation was halted because of this
devastating setback.

4.5. Cultural forces:
Gold has long been associated with Vietnamese culture, and the desire for gold continues to rise. Gold can be
used as presents at wedding ceremonies in the form of wedding rings, bracelets, and wedding bands in
everyday life. Gold can also be used as a form of savings, "an idea of guarantee," a hedge against currency
depreciation, and for investment, according to the paper "Analyzes on Gold and US Dollar in Vietnam's
Transitional Economy" by (Vuong Quan Hoang, 2004).
In addition, the development of Vietnam's economy in recent years also marks changes in people's lives as the
demand for gold and silver jewelry increases. They become popular; the process of buying does not require
people to be prosperous but to have demand for buying jewelry. Additionally, as Vietnam further integrates itself
into the global fashion industry, not only the middle-aged but also the younger generation are choosing to wear
jewelry made by well-known and prestigious brands. Associated with this demand of consumers, increased
companies are appearing to manufacture and supply jewelry products made of gold, silver or alloys of gold - a
rare metal. This might be seen as a good opportunity for PNJ to grow its business, as the demand and value of
gold and jewelry for special occasions is high, and the industry is still developing
5.
SWOT Analysis:
5.1. Strengths:
˗
˗
˗
˗
˗
˗

Over 33 years of experience in the jewelry industry, including manufacturing, retailing, and service.
R&D department with a lot of potential.
PNJ has issued a customer service policy that is both appealing and beneficial.
Retailers in strategic areas and a big, unified retail network across the country.
Strong brand identity and a good reputation are essential.
A large network of retail outlets.

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˗
Many new collections and designs have been introduced.
˗
PNJ is always willing to equip innovative technology to boost overall productivity and beat
competitors in terms of mass production and product sophistication thanks to its strong financial
capabilities.
5.2. Weakness:
˗
Not focusing on the massive demand for gold bars as a source of profit.
˗
In the North of Vietnam, the PNJ is not as beneficial as it is in Vietnam’s South. The number one
position in the Northern market, particularly in Hanoi, is still held by Bao Tin Minh Chau (BTMC).
˗
Most raw materials are imported.
˗
Gaining traction in high-end markets is difficult.
˗
Silver jewelry from PNJ is not comparable with high-end jewelry.
˗
The sale of gold bars has a minimal profit margin.
5.3. Opportunities:
˗
˗
˗
˗
˗

Vietnam's middle and upper-middle classes are growing.
Finding consumer segments with significant demographic growth potential.
The extension of the brand to gain greater market share is realistic given its current reputation.
A sizable part of the market is still dominated by mom-and-pop shops.
PNJ's main competitors are significantly behind it and are fighting to keep up.
5.4. Threats:

˗
A sudden downturn in the economy such as Covid-19 and/or a rise in gold prices could decrease
demand.
˗
As set up competitors like Doji and SJC focus more on jewelry, and new rivals backed by
investment funds enter the market, competition could heat up.
˗
As e-commerce allows clients to access foreign premium brands, disruption may increase.
˗
The gold-jewelry market in Vietnam, on the other hand, is a wonderful pie for international
investors.
˗
Unstable, if not unprecedented, gold prices over the world.
˗
Internal threat of losing experienced and skilled artisans to competitors' hands.
˗
Massive long-term investment and management of several different businesses.
III. Marketing Strategy for the new product / Service
1.

Segmentation / Target market:

Country region

Density
Age
Gender
Family life cycle
Income
Occupation
Generation
Nationality
Social class
Lifestyle


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Personality

Confidence, materialistic, acquisitive, selfexpression Behavioral

Occasions
Benefits sought
User status
User rates
Loyalty status
Attitude toward product
About Geographic Segmentation:

˗

With the focus on developing the domestic market, PNJ symbolizes its influence by operating 310 outlets across

every major city and suburban area nationwide, and the figure is ever increasing. The business does not only aim
to have a significant presence in the two biggest cities, namely Hanoi and Ho Chi Minh but also has imprinted the
prestigious brand image to residents in emerging economic cities, such as Binh Duong, Can Tho, and Hai Phong.
Overall, PNJ focuses more on the market in the South of Vietnam, resulting in
85% and 70% of total revenue, for PNJ gold and PNJ silver respectively, that come from the region alone.

About Demographic segmentation

˗

PNJ offers four differentiated brand products to target four distinct groups of customers. To begin with and
focus on PNJSilver that aims to cater to the needs of 15 to 35 years old girls, who love fashion and are
always looking for ego expression, by offering graceful and elegant bracelets and necklaces.
About Psychographic segmentation:

˗

Here we use the 4Cs lifestyle classification, which is short for Cross-Cultural-ConsumerCharacterization proposed by (Young & Rubican, 2015).
Aspirers are people who pay attention to appearance, tend to be younger and acquisitive. They are
concerned with their image in the eyes of other people and can be materialistic. These unflinching customers
contribute the largest sales proportion of PNJ.
Mainstreamers make up the largest category of customers who visit PNJ and are the latent consumers. They are,
however, most of society, ordinary, sentimental, and more familiar with consuming “family” brands.
˗

About Behavioral segmentation:

Without question, PNJ has the most interest in the occasions that consumers spend their disposable income
on jewelry products, considering that the general features of jewelry are only optional items, are
expensive, and are used in only particular events. At this time, we choose the events are unpredictable but

happen all year round such as prom, partner meetings, company formal parties and gala dinners.
Customers who visit a PNJ store usually already have some reasons to buy jewelry in their minds. For
whatever the reason may be, they are potential users of PNJ, and a proportion of them who have the
willingness and the ability to buy will become first-time users. The increasing level of satisfaction that PNJ
has delivered is bringing many customers back to the brand and they are occasional customers. However, the
jewelry market in Vietnam is highly competitive, with plenty of substitutes provided by competitors that
affect loyalty and drag buyers away from PNJ.
2.

Positioning / Value proposition:

2.1. Positioning maps:
With the upper edge technology and the dominant number of artisans employed, PNJ is indisputably producing
the highest quality jewelry products in the domestic market. Higher quality comes with a higher price, and
customers who are willing to spend large sums will possess more sophisticated items affixed with materials that
are more precious. DOJI follows, selling at a high price but lower quality products. SJC and

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BTMC have the advantage in gold and gold bar trading but in terms of the jewelry business, they fall short
in the competition.

2.2. Positioning strategy:

Table 2: Possible PNJ's value proposition
PNJ's “more for more” positioning strategy involves providing upscale quality jewelry products and
delivering superior services by charging prices accordingly. The higher e price that customers are willing and
able to purchase, the more worthy their products will be. A higher price comes with increasing benefits and a
more sophisticated design.

3. Marketing Mix (4Ps)
3.1.1 Product:
Main products: “Luminary – Tinh Tú”: Sterling Silver Jewelry Collection
˗
˗
˗

Key massage: Every lady is a star – Mỗi cô gái đều là một vì tinh tú
Slogan: Lấp lánh trên từng nấc da – Tôn vinh từng đường nét
Purpose:

There are 2 motivations for us to create this collection that is target customer’s need and their psychology forces.
First and foremost, PNJSilver's target clients are females who wish to improve their image in order to stand out,
be more appealing, and shine brighter. At the same time, they want to assert themselves in a classy and
fashionable manner. Secondly, when it comes to jewelry, girls tend to accumulate a new set of bracelets,

14


necklaces, rings, and earrings. When purchasing the entire set, the pricey gold material always makes
the females wonder, therefore the silver material is increasingly becoming more popular and desired.
With the motto: "Customer is the inspiration of all creativity", PNJSilver aims to build the image of a girl
"Different, New", "Youth, Dynamic", "Sturdy, Steady - " Sweet, Tender.", we decided to established a
PNJSilver range of high-quality “Luminary – Tinh Tú” Sterling Silver Jewelry Collection with a full set of a
pendant, earrings, a bangle which providing customers with a one- of-a-kind, charming, and powerful
beauty. This product range will assist them in maturing into mature young ladies who are active and unique
while remaining lovely and appealing. Ladies are vibrant and vivacious, yet they are also sweet and alluring.
They want to make a classy and fashionable statement. Recognizing this, PNJSilver created a range of highquality silver jewelry goods that provide clients a soft and beautiful beauty.
˗ Details: Luminary Sterling Silver PNJSilver Pendant, Luminary Sterling Silver
PNJSilver Earrings, Sterling Silver PNJSilver Bangles

˗
˗

Material: Silver 925, Swarovski Zirconia stones
Photos of Collection:

˗

Photos of packaging:

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3.2 Price:

3.3 Place:
3.3.1 Stores:
We decide to directly distribute this “Luminary – Tinh Tú” Sterling Silver Jewelry Collection in all
PNJSilver locations countrywide in order to make it convenient for people to come and decide to buy.
Customers are attracted to the businesses by two things They need more attentive care and consultation
from the personnel in addition to trying on the jewelry to see how it affects their appearance. We will also
give it to dealers or distributors in order to sell it indirectly and increase our revenues. This is because there
is a small part of customers has no intention to go to PNJ or others famous brands stores to buy jewelry,
they usually randomly choose the most convenient stores to find their desire.
3.3.2 Channels:
The majority of customers like shopping online, while some customers prefer to physically visit the store to
inspect the items before making a purchase. They appreciate having the option to select a product and
seeing all of its details conveniently presented next to the image. They also select the delivery option since it
is more convenient because they are busy females who do not have time to visit the store. We will sell it
directly on the PNJ official website, Lazada mall, and Shopee mall were some of the sales platforms we

chose to use to display and sell our items. Moreover, we will also give it to dealers or distributors in order to
indirectly sell our collection and increase our revenues. This is because there is a small part of customers
has no intention to buy PNJ or others famous brands jewelry, they usually randomly choose the shops that
they see and find it interested with their desire to buy jewelry.
3.4 Promotion:
˗

Sale promotions:

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First week after launching day: Place a banner or standee (up to store size) in front of the stores about
cusomer will receive 10% discount voucher for the next time after finish their purchase that has a full set
of “Luminary – Tinh Tú” Sterling Silver Jewelry Collection.
Next 2 weeks: Every purchase has a product from “Luminary – Tinh Tú” Sterling Silver Jewelry Collection
will be discount for 5%
Next 2 weeks: Customer buy a product from “Luminary – Tinh Tú” Sterling Silver Jewelry Collection with
be albe to buy other silver products at a 5% to 10% discount price.
When cusomer purchase a full set of “Luminary – Tinh Tú” Sterling Silver Jewelry Collection, their will
have free Jewelry Engraving Service on their own jewelry. Engraving Service is no longer strange to us such
as Lipstick Engraving of YSL, Handbag Engraving of Dior but it never stops being hot. This is adies always
have a desire to have their unique, their identity stamp that affirms their ownership.
Run promotion FLASH SALE – FLASH DEAL (discount for 10%) twice a week on e-commerce
platform such as Lazada, and Shopee.
˗

Advertisement and Public Relations

Media cooporation with KOLs: First, we give them their collab promotion code and our products. KOLs

upload video they unboxing a full set of “Luminary – Tinh Tú” Sterling Silver Jewelry Collection and style it
by mix&match it with clothes on their channel such as Tiktok, Youtube, Facebook, Instagram… and then
give their followers their code to get the discount.
Run ads about Luminary – Tinh Tú” Sterling Silver Jewelry Collection storyline on social media such as
Tiktok, Facebook, Instagram which attractive customers. ˗ Key massage: Every lady is a star – Mỗi cô
gái đều là một vì tinh tú. Slogan: Lấp lánh trên từng nấc da – Tôn vinh từng đường nét
Sponsor maximum 3 set of “Luminary – Tinh Tú” Sterling Silver Jewelry Collection, for each upcoming
fashion show, MV, short film… which have content about Feminist. ˗ Key massage: Every lady is a star –
Mỗi cơ gái đều là một vì tinh tú. Slogan: Lấp lánh trên từng nấc da – Tôn vinh từng đường nét
Pay for megazines to public the work about of “Luminary – Tinh Tú” Sterling Silver Jewelry Collection and
story to honor woman/girl… ˗ Key massage: Every lady is a star – Mỗi cơ gái đều là một vì tinh tú. Slogan:
Lấp lánh trên từng nấc da – Tôn vinh từng đường nét
˗

Direct Marketing:

Sales staff will call for potential, loyal customer to promote about of “Luminary – Tinh Tú” Sterling Silver
Jewelry Collection and give them the discount voucher or free gift.
IV. Appedix:
Question in Survey:
[1].
[2].
[3].
[4].
[5].
[6].
[7].
[8].
[9].
[10].

[11].
[12].
[13].
[14].
[15].
[16].
[17].
[18].

What is your name?
What is your sex?
How old are you?
Where do you live?
What do you do?
Where does your income come from?
What is your average monthly income?
Do you wear jewelry?
Which type of jewelry you often wear?
Do you buy jewelry as a gift?
Which type of jewelry you often buy as a gift?
How much are you willing to spend for each item?
What is material you look for when buying jewelry?
What do you looj for when buying them?
Where do you buy them?
How often you wear jewelry?
How often you buy jewelry?
How do you buy jewelry?

17

[19].

Which promotion gives you motivation to buy?

V. References:
1.
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2.
World Gold Council. 2021. Jewellery. [online] Available at:
< />%20hit%20hard%20by%20COVID> [Accessed 3 July 2022].
3.
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< />fbclid=IwAR2bNUuXDuBWY53POpde0GQUDz8nfKaASlwywlE6z1_oXcmoI_8nT2qOfKc>
[Accessed 3 July 2022].
4.
Cia.gov. 2022. [online] Available at: < fbclid=IwAR1uz_B-ezfdqhdAzHLmblkizMYua3SqonJ949EqUZWRwTzsIF3NH-vDxo> [Accessed 4 July 2022].
5.
Quang, V., 2019. PHU NHUAN JEWELRY JSC (PNJ VN EQUITY). PNJ VN EQUITY.
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2022].
6.
CFA Society Vietnam, 2022. CFA Institute Research Challenge. Retail Sector, Consumer
Discretionary Industry Ho Chi Minh Stock Exchange (HOSE). [online] Available at:
< [Accessed 8
July 2022].
7.
Minh Thien, 2018. Bước mới tại PNJ. [online] Brandsvietnam.com. Available at:
< [Accessed 8 July 2022].

8.
Cam Van, 2019. PNJ – lãi nghìn tỉ nhưng vẫn nợ lương, nợ thuế. [online] Ngày mới
Online. Available at: < [Accessed 9 July 2022].
9.
Anh Nhi, 2021. Báo cáo tài chính q II/2021: PNJ có lãi 224 tỷ đồng nhưng dòng tiền kinh
doanh âm hơn 250 tỷ. [online] Vietnam Daily | Tin tức Việt Nam Daily, cập nhật mới nóng 24/7.
Available at: < [Accessed 8 July 2022].
10.
TH, 2022. PNJ: Lãnh đạo lương cao kỷ lục, 'phải trả' người lao động và thuế 500 tỷ đồng.
[online]
Sohuutritue.net.vn. Available at: < [Accessed 10 July 2022].
11.
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Available at: < />[Accessed 11 July 2022].
12.
Thu Ha, 2021. Vượt bão Covid, PNJ tăng trưởng bứt phá nhờ chuyển đổi số. [online] Nhịp
sống kinh tế Việt Nam & Thế giới. Available at: < [Accessed 11 July 2022].
13.
Hai Yen, 2021. “Se duyên” với AWS, PNJ không để lỡ “chuyến tàu” chuyển đổi số. [online] Đầu
Tư Online. Available at: < />%C3%ACa%20kh%C3%B3a%E2%80%9D%20c%C3%B4ng,tr%E1%BB%9F%20n%C3%AAn %20th
%C3%B4ng%20minh%20h%C6%A1n> [Accessed 11 July 2022].
14.
Thinh, P., Kien, H., Nhung, N., Thai, L. and Quang, N., 2015. Situation Analysis Report Phu
Nhuan Jewelry Joint Stock Company. [online] Available at:
< situation-analysis-report-phu-nhuan-jewelryjoint-stock-company/13147302> [Accessed 11 July 2022].

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15. Thuy Quynh, 2021. PHÂN TÍCH THỊ TRƯỜNG TRANG SỨC TẠI VIỆT NAM NHỮNGNĂM

GẦN ĐÂY. [online] Available at: < [Accessed 11 July 2022].
16. Bach, P., 2022. PHU NHUAN JEWELRY JSC (PNJ) ─ UPDATE. VNDIRECT
RESEARCH. [online] VNDIRECT Securities Corporation. Available at:
< [Accessed 14 July
2022].
17. Thao, T., 2022. Chiếm lĩnh trên 50% thị phần trang sức, PNJ chưa dừng lại. [online] Người
Đưa Tin. Available at: < [Accessed 13 July 2022].
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[online] iSEO1.com. Available at: < />[Accessed 14 July 2022].
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20. 2020. [online] Available at: < [Accessed 11 July 2022].

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