THEORETICAL BACKGROUND
Marketing strategy definition
Until now, there are many term that defined “marketing” in the world (about
2000 definitions) However, these definition basically are not different and the interesting fact that none of them are exactly true, each of them has a good point to observe.
Marketing is the management process that facilitates the transition of goods and services from concept to consumer It fundamentally revolves around understanding and addressing customer needs and ensuring their satisfaction.
The American Marketing Association (AMA) defines marketing as a comprehensive activity that encompasses various institutions and processes aimed at creating, communicating, delivering, and exchanging valuable offerings for customers, clients, partners, and society as a whole.
Dr Philip Kotler defines marketing as both a science and an art focused on exploring, creating, and delivering value to meet the needs of a target market profitably It involves identifying unmet needs and desires, measuring the size and profit potential of the market, and determining which segments the company can serve most effectively Additionally, marketing is responsible for designing and promoting suitable products and services to fulfill these identified needs.
In "Marketing - Essential Techniques and Strategies Geared Toward Results," Alexander Hiam emphasizes that effective marketing hinges on understanding consumer behavior and motivations He asserts that successful marketers must empathize with customers, adopting their perspective to comprehend their buying decisions (Hiam & Rastelli, 2007, p.2).
Marketing in business encompasses branding, naming, pricing, and the connection between paid and earned media, as emphasized by Gini Dietrich, CEO of Arment Dietrich It is important to note that marketing is distinct from sales.
In conclusion, basically, Marketing is business’s operation aiming to satisfy the customer’s needs in the market to earn profit. download by : skknchat@gmail.com
A well-defined marketing strategy is crucial for any company's overall marketing efforts, as it helps to create customer value and establish profitable relationships To achieve these objectives, companies must focus on identifying and implementing effective marketing strategies that resonate with their target audience.
A marketing strategy outlines the approach a business takes to deliver customer value and foster profitable relationships This involves identifying the overall market, segmenting it into smaller, more manageable parts, and selecting the most promising segments to target By focusing on these chosen segments, the company aims to effectively serve and satisfy its customers.
In business ventures, companies first identify customer needs and wants before determining their marketing offerings They recognize that it is impossible to serve all customers uniformly, leading to the segmentation of the market into smaller groups of consumers who respond similarly to specific marketing strategies By evaluating these segments, companies can select one or more to target, allowing them to better meet the needs and wants of their chosen customers This strategic approach enhances the effectiveness of their marketing efforts.
Companies must assess their market position and identify how they stand out from competitors Once this evaluation is complete, the overall marketing strategy is established Guided by this strategy, companies then develop a tailored marketing mix To meet their objectives, the elements of the marketing mix are combined into a cohesive marketing program.
After deciding on its overall marketing strategy, the company is ready to begin planning the details of the marketing mix, one of the major concepts in modern marketing.
Marketing Mix (7Ps)
The marketing mix encompasses the strategic combination of controllable marketing tools that a company utilizes to elicit the desired response from its target audience This mix includes all actions a firm can take to shape and influence the demand for its products.
According to Kotler and Armstrong (2014), marketing is a fundamental concept in contemporary marketing practices They define the marketing mix as the combination of tactical marketing tools that a company utilizes to elicit the desired response from its target market.
The marketing mix has evolved significantly, becoming essential in assessing the growth of marketing theory and practice In response to the changing commercial landscape, marketing scholars have introduced new theoretical approaches, expanding the traditional 4Ps to include additional elements This evolution has led to the emergence of the 7Ps marketing mix, which provides firms with a competitive edge in today's dynamic market.
The product marketing mix is comprised of the four essential elements known as the 4 P's: Product, Pricing, Promotions, and Placement Additionally, the extended service marketing mix incorporates three more components: People, Process, and Physical Evidence Each of these factors plays a crucial role in ensuring optimal service delivery.
(Source: http://www.professionalacademy.com – the extended 7Ps) download by : skknchat@gmail.com
The product is the fundamental component of market offerings and plays a crucial role in the marketing mix According to Kotler and Armstrong (2014), a product encompasses anything presented to the market for attention, acquisition, use, or consumption that fulfills a want or need.
Products encompass tangible items like cars, shampoo, lipstick, and mobile phones, as well as intangible offerings such as services, events, and ideas Among these, services hold particular significance in the global economy, as they involve activities and benefits sold to consumers without resulting in ownership of physical goods.
Decision-making for products or services occurs at three levels: individual product decisions, product line decisions, and product mix decisions Individual product decisions focus on the unique attributes and features of a specific product, influencing its market positioning and consumer appeal.
Product quality refers to a product's ability to meet customer needs and requirements, encompassing both relative and absolute dimensions This concept is inherently subjective, as it influences customer value and satisfaction based on the performance of products and services Within product quality, there are two key dimensions: level and consistency Companies must select an appropriate quality level that aligns with the needs of their target market and the quality of competing products, ensuring that the desired performance is delivered accurately and consistently.
To achieve success, a product must adhere to established quality standards, and reputable manufacturing or sourcing companies implement quality control procedures to maintain these standards The extent and nature of these procedures can differ significantly based on the potential risks associated with subpar quality.
Branding download by : skknchat@gmail.com
A brand encompasses a name, term, sign, symbol, or design that distinguishes the creator or vendor of a product or service (Kotler and Armstrong, 2014) This includes brand names, trademarks, and various forms of product identification, all of which contribute to the branding process (Perreault and McCarthy, 2002).
In today's market, branding is essential for the success of new products, as it aids both consumers and sellers Strong brand names enable consumers to easily identify products that meet their needs, while trademarks provide legal protection against competitors' copying Additionally, branding allows sellers to effectively segment their markets, enhancing their marketing strategies and overall success.
Building and managing brands effectively can be challenging, as several key characteristics define a good brand name According to Perreault and McCarthy (2002), an ideal brand name should be short, simple, and easy to spell, read, and pronounce It should have a single pronunciation across all languages, suggest product benefits, and be adaptable for various packaging and advertising needs Additionally, it must avoid undesirable imagery and be legally available for use, ensuring it is not already in use by another company.
Packaging encompasses the design and production of a product's container or wrapper, serving not only to protect and hold the product but also to attract buyers and foster brand recognition (Kotler and Armstrong, 2014) Additionally, effective packaging facilitates distribution by minimizing damage during shipment and enhancing handling and display (Perreault and McCarthy, 2002) With the rise of green marketing, environmental considerations have increasingly influenced packaging choices.
Labeling is essential for enhancing product appearance and attracting consumer attention while providing crucial information such as manufacturer details, production and expiration dates, and usage instructions Products featuring innovative packaging and labeling aligned with green marketing principles can offer companies a significant competitive advantage.
Customer service is a crucial aspect of product decisions, as effective interaction with customers is vital for any business Prioritizing customer satisfaction can set companies apart from competitors and foster loyalty post-purchase With advancements in technology, businesses now have various channels to engage with customers, including phone, email, and online platforms (Kotler and Armstrong, 2014) Additionally, making informed decisions about product lines and product mixes is essential for maximizing market impact.
AN OVERVIEW ABOUT VIETJET AIR JOINT STOCK AND
Vietnam Aviation marketplace
Vietnam, with a rapidly growing GDP and a population exceeding 90 million, is set to become one of Southeast Asia's fastest-growing aviation markets over the next 10-20 years The implementation of the ASEAN Open Skies policy since January 2015, which facilitates unrestricted airline operations among member states, coupled with Vietnam's participation in various free trade agreements, including the upcoming TPP, will enhance opportunities for passenger and cargo air transport growth This robust market expansion presents significant prospects for U.S companies as Vietnam invests heavily in airport construction, fleet expansion, air traffic service improvements, and aircraft maintenance capabilities.
Figure 2.1: Vietnam aviation development compared to other countries
(Source: World Bank Data in 2015) download by : skknchat@gmail.com
The Vietnamese government prioritizes the aviation sector as a key driver of economic growth, with oversight provided by the Civil Aviation Administration of Vietnam (CAAV), which operates under the Ministry of Transport.
Between 2010 and 2015, the Civil Aviation Authority of Vietnam (CAAV) reported an impressive annual passenger growth rate of 14.9 percent, culminating in 63 million passengers in 2015, which included 18 million international and 45 million domestic travelers The CAAV anticipates that passenger traffic through airports will soar to 122 million by 2020, maintaining an average growth rate of 14.2 percent per year from 2015 to 2020 Looking ahead, the forecast for passenger air traffic by 2030 remains optimistic.
322 million per year, a 10.2 percent annual growth rate.
The freight market grew at 10.7 percent between 2010 and 2015, with 0.96 million tons of cargo (0.62 million international, 0.34 million domestic) through airports in
Freight traffic is projected to rise significantly, reaching 1.8 million tons by 2020, with an annual growth rate of 12.8 percent from 2015 to 2020 Furthermore, by 2030, it is anticipated that freight traffic will soar to 7.3 million tons, reflecting a robust growth rate of 15.3 percent per year during the 2020-2030 period.
Vietnam's air transport sector is projected to grow at an annual rate of 14.2% from 2015 to 2020, necessitating significant investments in new terminals, longer runways, and upgraded equipment The Airports Corporation of Vietnam (ACV), established in February 2012, manages 21 airports, including eight international and 13 domestic To enhance safety and operational efficiency, ACV plans to equip these airports with advanced technologies such as instrument landing systems, lighting systems, and X-ray machines Furthermore, ACV aims to expand the number of airports to 23 by 2020 and 25 by 2030, seeking investments through various channels, including the equalization of state assets.
In November 2015, ACV transitioned to a stock company by launching an IPO to sell a five percent stake to the public The company plans to establish a strategic partnership with Aéroports de Paris (ADP) in 2016, with ADP acquiring a 7.4 percent share Shifting away from official development assistance (ODA), ACV is now utilizing the Public-Private Partnership (PPP) model to secure investment for airport development This strategy will enable ACV to leverage advanced technologies and services from various countries, creating enhanced opportunities for U.S aviation companies to supply airport-related technologies and services.
There are some main projects of maintenance and development
Tan Son Nhat Airport (Ho Chi Minh City)
Chu Lai Airport (Quang Ngai)
There are three main carrier in Vietnam market share which are VJA, Vietnam airlines and Jetstar Pacific. download by : skknchat@gmail.com
Figure 2.2: Vietnam domestic capacities share (% of seats) in 2016
(Source: CAPA – Centre for aviation)For the first four months from Jan-2016 to Apr – 2016, Vietnam Airline hold44%, VJA took 41% and Jetstar Pacific accounted for 15%.
History of development
VJA Joint Stock Corporation, known as VietJet, is Vietnam's first private airline, established in 2007 with a charter capital of $37.5 million VJA has significantly contributed to the growth of low-cost air travel, earning a reputation for its quality and reliability, making it the preferred choice for passengers seeking air transportation.
25 December 2011, the first flight from Ho Chi Minh City to Ha Noi was operated
June 2013, VJA opened the first flight to Bangkok,, Thailand and cooperated with Thailand airline to open international flight. download by : skknchat@gmail.com
September 2013, VJA signed to order 100 airplane of Airbus production In November and December 2014, VJA received 2 of 100 on the contract, upgrading to 20 airplanes in total
23 October 2014, VJA was honored in top 10 of best low – cost carriers in Asia in Smart Travel Asia Magazine
31 January 2015, VJA marked the 10 million guests.
VJA is expanding its extensive flight network in Vietnam to cater to the growing travel demands of both domestic and international travelers across the Asia-Pacific region With a mission to enhance the quality of service and ensure punctual flights, VJA aims to lead Vietnam's aviation industry into a new era Renowned in Southeast Asia, the airline offers a diverse selection of routes along with its signature fun and friendly service, complemented by user-friendly online booking and purchasing systems.
VJA has received esteemed awards both in Vietnam and internationally Notably, at the “Budgies & Travel Awards” in London, VJA was recognized alongside SpiceJet, EasyJet, Southwest, and AirAsia X as one of the “Top 5 Best New Route Launches.” Additionally, VJA has been honored with other significant accolades.
The airline has been recognized for its innovative in-flight cultural and entertainment programs by the Asian Record Organization and has received the prestigious "Golden Star Award for Quality" from Business Initiative Directions (B.I.D) in Switzerland Additionally, it has been honored with the Merit of Distinction from the Ministry of Transport of Vietnam for two consecutive years and was named "the most friendly transportation and best promotion airline in Vietnam" by Spend & Use Advisory Magazine.
In 2016, VJA experienced significant growth compared to the previous year, serving 9.3 million passengers with a fleet of 29 aircraft and operating a total of 58,355 flights.
Expense on km (exclude fuel) 2.34 -14%
(Source: Vietjet air performance report in October 2016)
Until October 2016, VJA contributed on national budget directly and indirectly
In 2023, VJA achieved a remarkable total profit of 2,000 billion VND, marking a 155% increase since 2015 The airline saw a 61% rise in the number of aircraft crew and a 66% growth in passenger numbers Additionally, total flying hours surged by 84%, while expenses decreased by 14%, reflecting a positive trend for this low-cost carrier.
(Source: Vietjet air performance report in October 2016)
The rising number of passengers has led to a significant 50% increase in total sales profits compared to 2015, indicating positive growth for VJA Additionally, the overall profit from flights has surged by 59% since 2015.
Vietnam is a rapidly growing market, and VJA is strategically leveraging its potential by making significant investments to enhance net profits While the growth of low-cost carriers in Vietnam lags behind countries like the Philippines and Malaysia, industry experts believe that Vietnam and Myanmar are poised for substantial growth in the low-cost aviation sector VJA prioritizes building fame and popularity over immediate financial gains, which helps them earn customer trust and attention Despite some skepticism regarding this approach, VJA remains committed to continuously improving its image and reputation.
Investors should prioritize increasing their fund capacity, especially considering the significant costs associated with the first two or three years of a model This approach is particularly relevant for VJA as it prepares for its upcoming IPO, aiming to attract international investors.
VJA effectively manages its financial flow by ensuring high-quality service while collecting ticket fees in advance, typically 3 to 9 months before departure In contrast, other expenses like fuel, aircraft rental, and ground services can be settled within a month, allowing the company to maintain a balanced budget between incoming and outgoing funds.
With domestic flight, VJA continuously open more flights with the frequency of
500 flight per week “Domestic segment of VJA increases from15% to 40% in 2016” – Mr Brendan Sobie –analyst said Moreover, Vietnam is a potential market In
In 2016, Vietnam experienced a GDP growth rate of 6.7%, the highest in six years, while fuel prices were projected to decrease by 11% The country welcomed 45 million tourists, marking a 19% increase from 2015 As part of its development strategy, Vietnam aimed to establish over 26 airports by 2020 and was actively expanding Noi Bai International Airport and Tan Son Nhat International Airport The Vietnam Jetstar Airlines (VJA) capitalized on this growth, building trust with domestic customers and focusing on stable development and profitability.
VJA is strategically leveraging its domestic segment as a foundation to expand into larger international markets The airline aims to collaborate with other carriers to enhance benefits and increase flight options By 2016, VJA successfully launched connections to various destinations, including Thailand, Singapore, Korea, Taiwan, Malaysia, China, and Myanmar, solidifying its presence in the competitive aviation landscape.
VJA operates as a low-cost carrier while maintaining high-quality services, aiming to provide affordable flying opportunities for both Vietnamese citizens and international travelers To cater to diverse customer needs, VJA offers a variety of ticket pricing options, including 12 different fare types such as Promo, Eco, and Flexi.
VJA recognizes the importance of travel and has introduced a discount strategy offering one-way tickets to various domestic destinations for just 0 dong Passengers are only responsible for fuel, service fees, and taxes To take advantage of these offers, customers are encouraged to book their tickets early on the VJA website and select the appropriate payment method.
To have low – cost strategy, VJA cut down some expenses that customers might not need during the flight:
Reduce the printing price of ticket check in
Use only 1 kind of plane
Eliminate meal plan services and magazines
Reduce costs at the airport
Diversified extra services such as luggage transportation services
Vietjet offers a non-meal service on domestic flights, allowing customers to save on ticket prices if they do not require in-flight meals However, for those who wish to eat during their flight, Vietjet provides a selection of affordable meal options.
Figure 2.3: Meal plans of VJA
Company structure
Competitor in Vietnam marketplace
In the competitive landscape of the domestic market, VJA faces significant challenges from two major players: Vietnam Airlines and Jetstar Pacific Airline Notably, Jetstar Pacific Airline serves as VJA's direct competitor in the low-cost segment of the Vietnamese aviation market.
In April 1993, Vietnam Airlines was established as the national flag carrier of Vietnam By May 27, 1995, the Vietnam Airlines Corporation was formed, bringing together 20 aviation enterprises with the airline serving as its central business.
Vietnam Airlines, a prominent player in the aviation sector since its inception, dominated the domestic market with a 44% share as of June 2016 The airline's fleet includes a variety of wide-body aircraft, such as the Boeing 777-200, Boeing 777-300, Airbus A330-200, and Airbus A330-300, as well as narrow-body models like the Airbus A320 and A321 Between 2015 and 2020, Vietnam Airlines plans to expand its fleet by adding 33 Airbus A320 aircraft, leasing long-range Boeing 777 and Airbus A330 models, and incorporating modern aircraft like the Boeing 787-9 Dreamliner and Airbus A350-XWB With a solid reputation and the capability to operate numerous flights with high frequency, Vietnam Airlines continues to be a leading carrier in the industry.
With the advantages of the large aircraft crew and the popularity, VNA always keep its place in Vietnam market In the report of profit and revenue, until November
2016, VNA has said it earned more than US $1.6 billion as revenue and US $71.6 million as pre – tax profit which rising 32.5% compared to the same period as last year.
Vietnam Airlines (VNA) continues to dominate the Vietnamese market, holding the largest market share with significant profits and revenue The airline has reported that it has successfully achieved most of its targets for the year Additionally, VNA's strong operational advantages reinforce its position as the leading carrier in the domestic market.
The ticket prices of Vietnam Airlines (VNA) remain relatively high, making it difficult for individuals with medium to low incomes and students to afford them, leading to hesitation in booking This presents a significant opportunity for VietJet Air (VJA) to capture the low-cost travel market segment that VNA is unable to serve effectively.
Jetstar Pacific Airlines, formerly known as Pacific Airlines, has struggled with efficiency in recent years, capturing only 15% of the domestic market share, which is lower than the younger carrier VJA In response, JPA has undertaken significant changes, including replacing its fleet of five Boeing 737-700 aircraft with Airbus A320s and restructuring the company Additionally, JPA has partnered with Vietnam Airlines (VNA) to offer more competitively priced domestic flights, enhancing its popularity and posing a challenge to VJA As of November 2016, JPA reported a remarkable 38% growth in passenger traffic.
In 2015, JPA generated a revenue of 3.6 million VND in 2016 The company has ambitious plans for expansion, aiming to acquire additional aircraft in 2017 and 2018, with a target of approximately six deliveries over these two years.
JPA is committed to enhancing its brand image while developing its aircraft crew, with recent initiatives including support for flood victims in the affected regions of Nghe An and Ha Tinh.
JPA and VNA have partnered to offer free tickets and complimentary delivery services to charity organizations and agencies on their daily flights from Hanoi to Ho Chi Minh City This collaboration aims to enhance both carriers' profitability and public image.
Rank Airport Jetstar pacific VJA return VNA return return frequency frequency frequency
Table 2.3: Jetstar Pacific domestic destination from Ho Chi Minh by weekly capacity in 2016
(Source: CAPA- Centre for Aviation & OAG)
Among the three major carriers, JPA operates the fewest flights per week Despite its collaboration with VNA, JPA's growth remains sluggish in comparison to both VNA and VJA.
Customer feedback indicates that JPA's services are perceived as unprofessional and inadequate In light of this, VJA should analyze its competitors' weaknesses to develop an effective strategy that addresses these concerns and enhances service quality.
Applying marketing mix (7Ps) in VJA’s business activities
VJA has made a wise move in product They offer a wide range ticket for customers choose In a flight, it depends on the seat, price, services a Promo Ticket
Promo tickets are discounted tickets offered by VJA, available during various promotional periods VJA frequently runs daily discounts, such as tickets priced at just 9,000 VND from 12 PM to 4 PM, making it an excellent opportunity for budget-conscious travelers to enjoy affordable fares.
Advange of this kind of ticket is very cheap which includes tax and other fee Promo ticket includes 7 kg carry – on baggage
Customer can select seat with reasonable fee
The changing of day and time is required two days before the departure day Customers are not allowed to change the journey or change customer name
The new ticket price must be equal to or greater than the previous fare If the new fee is lower, the difference will not be refunded to customers Conversely, if the new fee is higher, customers are required to pay the additional amount before altering their journey status.
Difference price is applied for each customer/one flight/one time changing The first online ticket can be adjustable on the website.
Ticket fees are non-refundable if customers cancel their tickets or fail to arrive at the airport at least 30 minutes prior to a domestic flight or 45 minutes before an international flight.
This ticket option does not cover checked baggage; however, a discounted rate is available for the first 15kg of checked bags Customers must pay the fee prior to checking in their luggage.
Promo tickets cannot be returned or refunded in any condition. b Eco ticket
Eco ticket is the type of ticket that more flexible than Promo ticket download by : skknchat@gmail.com
Eco ticket aim at customers having medium income with more flexible services
The changing of day and time is required two days before the departure day Customers are not allowed to change the journey.
The new ticket has to be equal class as Eco or Flex ticket Customers have to pay the difference fee before changing the ticket
Eco ticket includes 7 kg carry – on baggage
Difference price is applied for each customer/one flight/one time changing The first online ticket can be adjustable on the website
Ticket booking from ticket room or call center are often more expensive than booking direct from the website.
Ticket fees are non-refundable if customers cancel their tickets or fail to arrive at the airport at least 30 minutes prior to a domestic flight or 45 minutes before an international flight.
This ticket option does not cover checked baggage; however, customers can enjoy a discounted rate for the first 15kg of checked bags It is essential for customers to pay the applicable fee prior to checking in their luggage.
Eco tickets cannot be returned or refunded in any condition
If customer can’t join the flight, he can save for another flight or change to other people name with extra money c Sky boss ticket
Sky Boss is an exclusive ticket option from VJA, designed for luxury travelers seeking a premium experience This service is tailored for business professionals, artists, and frequent travelers who value privacy and comfort With Sky Boss, passengers enjoy a range of privileges that enhance their journey, making it a superior choice compared to the Lotus class of Vietnam Airlines.
To change your departure date and time, it is necessary to do so one day in advance This adjustment must be made at the VJA customer service center or ticket office.
The new ticket price has to equal or higher than the previous one Customers have to pay the difference price before changing download by : skknchat@gmail.com
Skyboss ticket can be adjusted online or on the ticket room or through Call Center without any extra fee.
All the ticket fee would not be refunded if customers cancel or change late less than 2 days prior the planned flight
Ticket fee cannot be refunded but can reserve and save for another flight
Customers can enjoy private waiting room in the airport with free Internet, free wifi and luxury furniture
A free drink and snack is provided during the flight.
Customer can choose the seat without any extra cost.
Skyboss includes 10 kg carry – on baggage and free 30 kg checked bags
This class also consists of private and priority check – in, private security entrance.
Private car is provided if customers have to travel to the plane.
VJA emphasizes its identity as a vibrant and youthful airline, distinguishing itself with a modern uniform of shirts and shorts for its crew, in contrast to the traditional ao dai or formal attire of other airlines This choice reflects the airline's energetic spirit and commitment to a fresh, dynamic image.
VJA has selected red and yellow as its theme colors, reflecting the hues of the Vietnam national flag This choice symbolizes a deep love for the country while also representing the energetic spirit and strength of the airline's crew.
In the travel industry, exceptional service is crucial for a company's success VJA prioritizes enhancing and developing its services to ensure customer satisfaction, particularly in its in-flight offerings.
VietJet, a modern airline dedicated to innovation and customer satisfaction, ensures that its flight crews are expertly trained to meet passengers' needs In addition to standard in-flight services, VietJet provides extra amenities to enhance the travel experience Passengers can enjoy luxurious leather-covered seats and choose from a selection of nine delicious hot meals or purchase souvenirs from the in-flight shop, making each flight a memorable experience.
VJA offers a diverse range of souvenirs featuring vibrant and youthful designs that appeal to all age groups These items serve as a memorable symbol of the VJA experience, allowing customers to cherish their flights with us For inquiries, please contact us at skknchat@gmail.com.
(Source: VietJet Air services) download by : skknchat@gmail.com
VJA offers a diverse in-flight menu for customers seeking meals, featuring a variety of Vietnamese dishes that represent different regions of the country Alongside meals, passengers can enjoy a selection of drinks and fruits at reasonable prices For those preferring lighter options, VJA also provides snacks and soft drinks throughout the flight.
(Source: VietJet Air services) download by : skknchat@gmail.com
Figure 2.8: VJA Food and soft drink
Vietjet has launched a duty-free shopping promotion on its international flights, allowing passengers to browse a diverse catalogue featuring hundreds of luxury items, including perfumes, cosmetics, and renowned wines All products are guaranteed to be genuine, high-quality, and tax-exempt, enabling customers to save more compared to shopping at traditional centers Mr Desmond Lin, Business Development Manager of VietJet, expressed excitement about being the first Vietnamese airline to offer this in-flight duty-free service, emphasizing the airline's commitment to enhancing the flying experience by providing a selection of top-notch products for passengers to enjoy.
Customers can pay by many kinds of currency such as the US dollar, Vietnamese dong, Singapore dollar, Thai baht, Taiwanese dollar and Malayian ringgit. download by : skknchat@gmail.com
Figure 2.10: VJA duty free catalog
(Source: VJA Services) download by : skknchat@gmail.com
Figure 2.11: VJA Duty free catalog
(Source: VJA Service) b Special services download by : skknchat@gmail.com
+ Wheelchair service is a service which is an offer for disabled or medical passengers with incapable of moving, including:
- Passengers requiring wheelchair for ramp (WCHR) are passengers who can make steps and walk to/from cabin seat, but need an assistance for distance to/from aircraft across ramp
VietJet Air’ SWOT Analysis
In Vietnam marketplace, VJA has many strengths that help it grow and develop
VJA demonstrates significant financial potential and the ability to manage financial risks and regulations effectively In early 2016, the company reported a remarkable 205% increase in revenue, reaching 10.9 trillion VND, alongside a net profit of 1 trillion VND With an upcoming IPO, VJA plans to offer 30% of its capital to foreign investors, which is expected to enhance its financial strength considerably.
New flight crew with rapidly development and modern aircraft: VJA constantly add more new modern aircraft into the crew in order to meet market’s demand.
VJA boasts a team of young, dynamic, and professional staff who embody the company's vibrant image Committed to excellence, they are proactive and efficient in addressing any challenges that arise Additionally, the flight crews undergo rigorous monthly training, ensuring they continually enhance their skills and provide exceptional service.
Despite strength, there are some weakness still existing in VJA system
Since its entry into the aviation industry in 2007, VJA remains a relatively young carrier that lacks extensive experience As a result, VJA must continue to learn and adapt to effectively navigate the domestic market.
Managing program still meets some difficult The organization have difficulty in operation There are still mistakes existing in the system causing the slow development of the firm.
Many discount programs fail to operate effectively, as certain offers are not available for booking by customers Additionally, the complexity of some discount programs can lead to confusion, resulting in misunderstandings and customers purchasing incorrect sections.
VJA has placed an order for 100 Airbus aircraft, but the production process is lengthy As a result, the airline is expanding its flight offerings, leading to a demand that exceeds the available supply Consequently, flights are experiencing delays as they await the arrival of new aircraft, along with the necessary time required for cleaning and refueling.
As Vietnam is a potential market for low – cost aviation industry, there are many opportunities opening to VJA
Vietnam is an emerging market with a growing demand for air travel, particularly among low-cost carriers As individuals increasingly prioritize time efficiency and cost savings, the opportunities for Vietnam's aviation sector, especially for VJA, continue to expand.
Technology development With the development of technology, the services during the flight are more changing and more convenient.
VJA has recently signed a contract to acquire 100 Boeing B737 MAX 200 aircraft, which are the latest models designed for enhanced safety and modern features These aircraft offer a significant advantage with a 20% reduction in fuel consumption compared to previous models, making them a cost-effective choice for the airline industry.
There are also a lot of threats that VJA has to face:
More competitors As the market is potential, more and more foreign low – cost carrier want to enter to the market The competition becomes more strict
Customers have more choices which lead to losing segment to another competitors. download by : skknchat@gmail.com
Increasingly fuel expense The fuel expense rises day by day, which cause a problem for low – cost carrier.
Customer demand Customer’s trends are changing every day, higher and higher This requires VJA to improve and develop for better system and better services
Unpredictable weather conditions, exacerbated by climate change, are increasingly impacting the flight industry Frequent storms and heavy rain can lead to delays and cancellations, making air travel more uncertain than ever.