THE 7Ps MARKETING MIX OF VIETJET AIR (PHÂN TÍCH CHIẾN LƯỢC 7Ps MARKETING MIX CHO CÔNG TY CỔ PHẦN HÀNG KHÔNG 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

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

1.2.

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
1

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

Using positioning maps to plot competitive strategy: ................................... 21

3.2.3.1

Marketing Strategy Evaluation: ................................................................. 21

3.2.3.2

Customers' perceptions: .............................................................................. 22
2


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
4.4.1

What is a Promotion Strategy? ....................................................................... 38
3

4.4.2

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
4.7.1.2 Service employees as a source of Customer Loyalty and Competitive
Advantage ....................................................................................................................... 55
4


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

5


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

6


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.
2


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.
3

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.

4


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

5


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 6


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,...
7


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.

8


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

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%

9


Total

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
10


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.
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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

12


2.3

COMPETITOR

2.3.1 Direct Competitors:
In recent years, Vietnam's air transport market has really exploded as private and stateowned 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).
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-

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.

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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,...

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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.
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High-contact service: Vietjet Air is a high-contact service. Because throughout the service
delivery process, there must be cooperation between the customer and the service provider.
VJA focuses on “processing” people rather than inanimate items because an airplane is a flying
transportation “factory.” The marketing challenge is to make the experience engaging for
customers in terms of both the physical environment and their interactions with service
employees.

3.1.2.5. Feedback from customers after using Vietjet Air's services:
Customers analyze the service performance they have encountered and compare it to their
prior expectations in the post-encounter stage of service consumption. Customers evaluate the
qualities and hazards associated with a service offering during the decision-making process.
They establish expectations about how the service they select will perform during this process.
The zone of tolerance can be narrow and firm if they are related to attributes that were important
in the choice process. The majority of customers feel that Vietjet meets their expectations in
terms of service and customers feel very satisfied. Vietjet Air has received very good feedback
from customers, which has become the driving force for Vietjet Air to grow stronger and
stronger.

3.2

POSITIONING STRATEGY OF VIETJET AIR:

3.2.1 Positioning distinguishes a brand from its competitors:
Once we have segmented the market, and understood determinant attributes and related
service levels, we need to see how we can best position our service in a competitive mar ket.
Competitive positioning strategy is based on establishing and maintaining a distinc tive place
in the market for an organization and/or its individual product offerings. Jack Trout distilled
the essence of positioning into the following four principles:
1. A company must establish a position in the minds of its targeted customers.
2. The position should be singular, providing one simple and consistent message.

3. The position must set a company apart from its competitors.
4. A company cannot be all things to all people-it must focus its efforts.
These principles apply to any type of organization that competes for customers. Understanding
the principles of positioning is key to developing an effective competitive posture. The concept
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of positioning is certainly not limited to services-indeed, it had its origins in packaged-goods
marketing-but it offers valuable insights by forcing service managers to analyze their firm's
existing offerings and to provide specific answers to the following six questions:
1. What does our firm currently stand for in the minds of current and prospective customers?
2. What customers do we serve now, and which ones would we like to target in the future?
3. What is the value proposition for each of our current service offerings and whatmarket
segments is each one targeted at?
4. How does each of our service products differ from those of our competitors?
5. How well do customers in the chosen target segments perceive our service offer ings as
meeting their needs?
6. What changes do we need to make to our service offerings in order to strengthen our
competitive position within our target segment(s)

3.2.2 Developing an effective positioning strategy:
Positioning links market analysis and competitor analysis to internal corporate analy-sis. From
these three, a position statement can be developed that allows the service organization to
answer sis questions for developing an effective positioning strategy.

3.2.2.1

Market analysis:

Market analysis addresses such factors as the overall level and trend of demand and the

geographic location of this demand. So following to this theory, Vietjet Air focuses much on
young, dynamic customer segments and first-time flyers, middle-income people, they have a
hobby of exploring, traveling often at a reasonable cost. Most of vietjet air's customers are
those who like to innovate, create, like to connect to others,…

3.2.2.2 Internal corporate analysis:


Capabilities:
Vietjet Air has abundant and large human resources, which include a total of about

5092 qualified, outstanding, experienced young, active, and enthusiastic employees. Vietjet
has also been continuously honoured with many prestigious internationalawards such as "Asia's
Best Employer Brand", top 500 "Asia's Leading Brand", and the world’s 50 best airlines for
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