OVERVIEW OF PNJ
About Phu Nhuan Jewelry Joint Stock Company
Vietnamese name: PHU NHUAN GOLD SILVER JOINT STOCK COMPANY
English name: Phu Nhuan Jewelry Joint Stock Company
PNJ logo – the number 1 jewelry brand in Vietnam (Source: PNJ)
- Head office: 170E Phan Dang Luu, Ward 3, Phu Nhuan District, City Ho Chi Minh, Vietnam
− Email: pnj@pnj.com.vn − Website: www.pnj.com.vn
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Producing and trading in gold, silver, precious stones, fashion accessories, and souvenirs.
Trading in watches and buying and selling gold bars.
Diamond, gemstone, and precious metal inspection services
The process of formation and development
On April 28, 1988, Phu Nhuan Jewelry Store was born.
In 1994 and 1998, PNJ established branches in two key economic centers, Hanoi and Da Nang.
In 1999, opening a branch in Can Tho, PNJ completed the presence of 3 major economic centers.
In 2001, the brand PNJSilver was born, and in 2005 it re-launched a new image.
In 2004, PNJ became Phu Nhuan Jewelry Joint Stock Company PNJ won the title of Top 500 Leading Retail Enterprises in Asia - Pacific, received the First Class Labor Medal.
In 2005, the high-end jewelry brand CAO Fine Jewelry was born.
In 2008, PNJ was the jeweler and crown sponsor of the Miss Universe pageant, held in Vietnam.
In 2008, PNJ celebrated its 20th anniversary by unveiling a new logo, marking a significant milestone in its journey That same year, PNJ was recognized as one of the 200 largest enterprises in Vietnam by UNDP and was awarded the Third Class Independence Medal for its contributions to the industry.
In 2009, PNJ stock was officially listed on HOSE, PNJ is the first and only jeweler listed on the stock exchange so far.
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In August 2009, CAO Fashion One Member Limited Liability Company was established.
In 2012, PNJ launched one of Asia's premier jewelry manufacturing factories, marking the opening of the largest jewelry, diamond, and watch center in its network, located at 52A-52B Nguyen Van Troi, Phu Nhuan, HCMC.
In 2013 - 25 years of establishment, the PNJSilver brand was repositioned PNJ gold jewelry brand announced a new message "Honor true value".
In 2016, PNJ introduced the "I Love Vietnam" collection, showcasing national pride at Vietnam Fashion Week 2017 The brand proudly supported the APEC 2017 high-level week, enhancing Vietnam's image with the APEC VIETNAM 2017 badges, which contributed to PNJ's recognition and success.
“ASIA’S BEST REPORT ON THE SDGS”, Outstanding Enterprise of the Year – ASEAN and Top 3 Asian Retailers voted by JNA, …
In 2018, PNJ marked the 30-year milestone with the largest jewelry fashion show in Vietnam, set up a set of Gold Trust medals for the U23 Vietnam team, entered the Top
50 most effective business companies in Vietnam, received the award JNA for the 4th time, 3 times in a row, reached the Top 10 in the 100 Sustainable Development Enterprises, becoming a billion-dollar enterprise.
In 2019, we achieved recognition as the Best Retailer in the Asian jewelry industry by JNA, ranking among the Top 50 Leading Brands and the Top 10 Sustainable Development Enterprises Our collaboration with Walt Disney marked a significant step in expanding international cooperation and solidifying our brand's global reputation.
In 2020, PNJ was recognized as the leading enterprise in the jewelry industry across the Asia-Pacific region, with its brand value reaching $93.1 million, reflecting an 18% increase from 2019, according to Forbes The company's timely and effective strategies in the F5-fresh process garnered significant praise, earning PNJ an honor from Talentnet for its outstanding HR policies during the Covid-19 pandemic Additionally, 2020 saw the launch of PNJ's new brand, Style by PNJ.
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Business philosophy
As the leading jewelry manufacturing and retailing company in Asia, holding the No 1 position in the mid-and high-end segments in Vietnam.
PNJ brings pride to customers with exquisite jewelry products of outstanding quality.
Integrity - Responsibility - Quality Innovation - Engagement
Putting customer interests and social benefits in the interests of the business.
Company position
PNJ currently manages and operates PNJ Jewelry Factory with a total investment of 120 billion VND and a production capacity of over 4 million products/year.
As of late 2019, PNJ has established a robust distribution network comprising 346 retail stores and e-commerce platforms, alongside over 3,000 wholesale partners across the nation Additionally, PNJ's products are exported to 13 countries and regions, showcasing the brand's extensive reach and global presence.
PNJ is ranked 16th by Plimsoll World, a leading global organization specializing in providing industry reports.
SWOT Matrix
1 High technology and technique in jewelry making
2 Experience more than 20 years in the jewelry industry
3 Strong brand, trusted by consumers
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6 Stores and agents widely for distribution and product introduction.
8 Professional and efficient management system.
9 Dong A Bank's incentives in capital financing activities.
1 Difficult to forecast and overcome (jewelry production bears many risks).
2 Gold bar market is not high
3 Raw materials are mostly imported from abroad
4 The price for the product is high.
5 Profit margin from gas and seafood business is not high.
6 Financial activities have not yet brought significant profits, although investment capital accounts for a high proportion of assets.
7 The gold jewelry market is concentrated in the South.
8 Products to serve customers' needs are still concentrated in the domestic market.
9 PNJ has a temporary imbalance because a part of PNJ's long-term assets is being financed by short-term capital.
10 The indicators of short-term solvency as well as ability to pay interest on loans tend to decrease.
1 The higher the trend of jewelry consumption (the concept of "saving, dowry"), is indispensable for Vietnamese women.
2 Modern machinery and technology create many designs and promote competition with foreign enterprises.
3 Gold trading market is developing to promote gold trading activities.
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4 The ability to expand and dominate the market is very large.
5 Real estate market recovers, joint venture company is likely to contribute a lot of profit to PNJ in the future
6 The growth potential of the jewelry industry in Vietnam is still very large.
7 The number of competitors in the industry is relatively small.
10 Our country has a stable political system.
1 Fierce competition with domestic and foreign enterprises in the same industry.
2 Being affected by factors such as: natural disasters, epidemics, fires and explosions, etc., affecting traditional customers and potential markets.
3 Gold price fluctuates in the country and in the world.
4 The world economy is always unstable.
5 Long-term investment capital is quite large, PNJ will face the risk when this investment is not effective.
6 More competitors appear when Vietnam joins world economic organizations (WTO, TPP, )
7 Gold testing in Vietnam is not really effective.
8 Changes in terms of political and legal policies are always possible and when they occur, they also affect the management, production and business activities of PNJ.
9 The source of raw materials is relatively small, so the ability to negotiate with the supplier is not high.
10 The import of gold materials is subject to strict state control.
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STP: SEGMENTATION, TARGET, POSITIONING
S - Segmentation
2.1.1 Segmentation by region/geographic region
In recent years, consumers increasingly prefer purchasing products from well-known brands rather than retail stores, leading to the rapid expansion of PNJ's nationwide presence.
PNJ's stores are strategically located in urban areas with dense populations, where residents typically enjoy a higher-than-average income This demographic's elevated purchasing power drives a greater demand for products, making these locations ideal for PNJ's retail strategy.
In 2022, PNJ aims to expand its retail presence across Vietnam, particularly in major cities with favorable locations and affluent populations With the rising middle class in the provinces, the PNJ team is conducting research to determine the feasibility and optimal number of new store openings Geographically, PNJ is primarily focused on the South and Southeast regions as its main markets, while also working to enhance business growth in the Western region compared to the previous year.
In the highly competitive jewelry market, PNJ has emerged as one of Vietnam's leading gold and silver jewelry manufacturers, renowned for its commitment to quality and trustworthiness The brand is recognized for its sophisticated, high-class designs, catering to an increasing number of high-income customers Additionally, the growing middle-income segment is becoming more financially capable and willing to invest in the jewelry they desire, further solidifying PNJ's position in the industry.
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PNJ has strategically shifted its focus towards the young and creative jewelry market, targeting office workers and individuals with mid-range to higher incomes who seek elegant and fashionable pieces With an emphasis on youthfulness and enthusiasm, PNJ has recently concentrated on women aged 30-45, offering luxury jewelry with unique and delicate designs However, recognizing the evolving preferences of modern youth, PNJ aims to refresh its collections to cater to young individuals who desire to shine at office events, festivals, and weddings, including students looking to enhance their confidence The new collection features sophisticated yet modern designs that embody elegance, lightness, and freshness, while also incorporating vibrant colors and diverse materials, empowering young women to wear jewelry with confidence.
Young customers aged 18 to 25, typically with limited disposable income, primarily shop at PNJ Silver stores This demographic places a high value on their appearance, particularly in fashion accessories, and seeks to express their individuality, leading them to gravitate towards jewelry from renowned and prestigious brands.
Targeting customers aged 25 to 30, this demographic features individuals with stable jobs and a strong income, prioritizing their self-care and appearance They seek out high-quality products that align with their lifestyle and values.
Especially the jewelry accessories show the value and luxury as the jewelry lines at PNJ Gold stores.
Customers aged 30 to 45, particularly high-income individuals, overseas Vietnamese, and foreign tourists, are increasingly drawn to Cao Fine Jewelry stores due to their preference for luxurious and expensive jewelry This demographic represents a significant market for high-end jewelry brands.
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In the competitive wedding and couple jewelry market, PNJ stands out as a leader, targeting an ever-expanding customer base The brand emphasizes traditional oriental elements in its couples' jewelry collections while showcasing unique designs crafted by skilled artisans PNJ's sophisticated and stylized pieces not only reflect the essence of eternal love but also maintain the high-quality standards associated with wedding jewelry.
Modern wedding jewelry reflects contemporary love trends, featuring unique designs crafted by artisans for couples PNJ couple jewelry symbolizes love, unity, and fidelity through matching or nearly identical pieces Men's designs emphasize strength and simplicity, while women's pieces showcase softness, elegance, and intricate details, creating a harmonious balance between the two.
T – Targeting
To strengthen its position in the jewelry market and boost sales, PNJ strategically targets a specific demographic segment, focusing primarily on women aged 25 to 30 years This group is characterized by stable employment and above-average income and spending levels, allowing PNJ to tailor its offerings to meet their needs effectively.
In Vietnam, the female population aged 25-30, totaling approximately 4.2 million, represents a demographic of mature women with stable incomes who prioritize self-care and beauty This group seeks jewelry that features trendy and unique designs, reflecting a youthful and dynamic style while also embodying elegance and sophistication.
Individuals aged 25 to 30 experience a peak period in life, where maintaining an attractive appearance becomes a priority This age group often seeks to enhance their social relationships, leading to an increased desire for jewelry that boosts confidence during important meetings and formal events At diplomatic gatherings or encounters with influential figures, it's essential to assert one's status, where elegance is achieved not only through refined clothing but also through carefully chosen jewelry The selection and coordination of these jewelry pieces reflect a person's sophistication and intelligence, ultimately showcasing the radiant and mature beauty of women Therefore, elegant and sophisticated jewelry remains the ideal choice for highlighting their brilliance and charm.
P – Positioning
With over 30 years in the jewelry market, PNJ has established itself as a leading brand, showcasing remarkable revenue growth and increasing brand value The company has successfully captured the attention of customers across Vietnam's North, Central, and South regions, making PNJ synonymous with quality jewelry Today, PNJ stands as a prominent player in the jewelry industry, not only in Vietnam but also across Asia.
PNJ's designs feature contemporary fashion colors and cutting-edge styles that enhance the elegance and individuality of the wearer Committed to excellence, PNJ utilizes only the finest materials, ensuring that women are not only captivated by the designs but also eager to make them their own.
In a highly competitive market featuring brands like Doji, SJC, and Bao Tin Minh Chau, many companies emphasize quality materials and competitive pricing However, their designs are failing to captivate the younger audience as they once did In contrast, PNJ, Vietnam's leading jewelry retail brand, goes beyond merely offering high-quality products that meet stringent international standards; it also focuses on providing customers with the assurance of quality through modern and innovative designs that appeal to contemporary tastes.
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4PS
Product
PNJ is dedicated to continuous innovation and creativity, striving to meet customer needs while celebrating individuality The brand's unique product line offers fresh experiences through entirely new designs that utilize modern production technology Each collection embodies contemporary elements, reflecting the diverse lifestyles and preferences of various customer groups At PNJ, we believe that everyone can express their own unique style.
PNJ initially focused on offering gold, silver, and high-end gemstones for affluent individuals, but has identified a growing market among women aged 25 to 30 with middle to high incomes seeking elegant and unique luxury jewelry Recognizing the lack of collections that resonate with dynamic young people full of dreams and ambitions, PNJ has decided to develop a new product line tailored to meet the needs of this emerging customer base.
PNJ has launched its new product line, "Shine," designed to capture the multi-dimensional beauty of women through delicate and energetic designs that enhance any look This collection reflects a trendy design aesthetic that has gained popularity among many celebrities With a diverse range of offerings, including rings, necklaces, bracelets, earrings, brooches, and pendants, "Shine" caters to the varied tastes of fashion enthusiasts PNJ continues to innovate by regularly introducing new models that align with modern fashion trends, making "Shine" a must-have collection for 2022.
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The "Shine" collection, crafted from 10k white gold, beautifully embodies the essence of youth, dreams, and ambition This unique line, designed for women aged 25 to 30, features a delicate blend of artisanal craftsmanship and trendy aesthetics, offering a range of elegant bracelets, rings, necklaces, and earrings Each piece showcases a graceful and dynamic style, making it a perfect choice for the modern woman.
PNJ's latest product line, the "Shine" collection, is designed to captivate customers, particularly women aged 25 to 30 who seek to express their confidence and dynamic personalities Over the years, PNJ has established itself as a leading brand in high-quality, high-end jewelry, earning consumer trust through its commitment to excellence The "Shine" collection not only highlights the beauty of its wearers but also conveys a powerful message of self-assertion and empowerment, making it a must-have for those who appreciate luxury and sophistication.
Price
PNJ's new collection, “Shine,” is designed specifically for women aged 25-30 who have a stable income and seek unique, sophisticated, yet elegant jewelry This collection aims to cater to the beauty needs of this demographic, raising the question of what pricing strategies are employed to meet the demands of this market segment.
PNJ prioritizes quality over low pricing, ensuring that customers receive meticulously crafted products designed by skilled artisans While the company aims to match consumer income levels, it recognizes that customers desire the best quality items PNJ consistently delivers beautiful and sophisticated products that uphold exceptional standards As a result, the pricing for its new product line will remain comparable to previous offerings, reflecting its commitment to quality rather than competing solely on price, especially in the face of rival Doji.
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In 2022, the "Shine" jewelry collection is priced between 1 million to 4 million, reflecting fluctuating gold prices and targeting financially stable women aged 25 to 30 This brand-based pricing strategy aligns with PNJ's understanding of customer psychology, as it positions their products at a premium level despite being higher than competitors The quality of PNJ's jewelry fosters customer trust, encouraging purchases regardless of price Confident in its competitive edge, PNJ leverages the perception that higher prices equate to superior quality, reinforcing its market position.
Place
Place in the marketing mix refers to the fact that the product will be distributed in locations where customers can use the company's products According to statistics, by
2021 PNJ has developed a distribution system from north to south with 341 stores nationwide So, what has PNJ planned for its product distribution strategy in 2022?
PNJ should conduct thorough research on its target market to determine optimal store locations by analyzing customer characteristics such as age, occupation, education level, and income Additionally, assessing population density and shopping convenience is crucial to ensure effective product display and sales strategies that attract potential customers.
Repair and upgrade the infrastructure of existing stores to be spacious, clean, and beautiful, arrange reasonable and eye-catching signs, highlighting the company's image.
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When choosing to open a new store, it is necessary to pay attention and consider the location where they will arrange the store, the ability to compete with other brands.
In 2022, PNJ aims to enhance product distribution by targeting large cities with high education levels and developed economies, particularly in areas with trade centers and high-end stores like Vincom These locations serve as prime environments for PNJ to connect with potential customers, especially during weekends and holidays when shoppers seek necessary items By strategically promoting its products in these bustling shopping malls, PNJ can encourage customers to visit stores and experience new offerings firsthand Therefore, establishing partnerships with numerous shopping centers is a crucial distribution strategy for PNJ to effectively reach and engage a broader audience in the upcoming year.
In the digital era, PNJ must enhance its product distribution by leveraging major e-commerce platforms like Shopee, Tiki, Lazada, and Sendo to effectively showcase its new products and brand image With the growing trend of online shopping, particularly among busy young professionals, it's essential for PNJ to reach customers who prefer the convenience of shopping from home Additionally, PNJ should strengthen its presence on social media platforms such as Facebook, Instagram, and Twitter to further promote new products and attract potential customers.
Promotion
In the realm of the 4Ps of marketing strategy, communication serves as a crucial policy designed to achieve or sustain a competitive edge in the marketplace A notable strength of PNJ's marketing approach lies in its emphasis on large-scale campaigns that effectively resonate with customer insights This ability to align communication campaigns with market needs is a hallmark of PNJ's strategy.
To effectively explore customer psychology, PNJ consistently delivers meaningful and relatable messages in its collections The company employs a variety of promotional strategies to engage its audience, including media advertising through TV, magazines, and newspapers, as well as direct response advertising online Additionally, PNJ utilizes place advertising methods such as billboards, posters, and cinema ads To further enhance customer interaction, the brand also implements trade and consumer-oriented promotions, including display allowances, trade shows, samples, and coupons.
Media advertising has become one of the most popular communication methods, and PNJ is effectively leveraging this strategy by collaborating with renowned artists to produce a variety of media products, including photo sets and TV commercials featured on television, in magazines, and across social media platforms A notable recent collaboration is with artist Chau Bui on the music video "You are a jewel," which has successfully brought the "Style by PNJ" brand closer to its customers.
"Shine" collection, PNJ will continue to cooperate with famous artists, influencers, KOLs to create communication products and reach customers.
PNJ employs a multifaceted marketing strategy that includes direct response advertising to enhance customer engagement and feedback By creating product introduction websites, customers can interact with sales staff, allowing PNJ to refine its products and service quality based on customer insights The brand also utilizes direct mail and telephone outreach to inform loyal customers about new collections, exemplified by the subtle introduction of the “Shine” collection Additionally, PNJ's advertising strategy prominently features posters and billboards in high-traffic areas such as major streets, bus stops, cinemas, and vehicles, ensuring that the “Shine” collection remains accessible and recognizable to a broad audience.
Trade and Consumer-Oriented Promotions is a method that is no longer strange to marketers PNJ is no exception, PNJ once organized the campaign "Priceless gift", With a
The article discusses the successful marketing campaign by PNJ, which engaged 221,595 participants through a microsite offering discount vouchers for sharing why "You are a priceless gift." With only 30% of the media budget, the accompanying video garnered over 2.5 million views, 18,533 shares, and more than 33,000 interactions, significantly boosting PNJ's presence on social media, particularly among younger consumers Launched during a period of increased shopping demand post-social distancing, PNJ's "Shine" campaign included promotions such as 50% off various jewelry items during holidays, a 10% discount for loyal customers, and 0% interest installment plans, alongside sweepstakes for jewelry purchases.
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BUDGET AND TIMELINE
Budget
Take photos and print for new products
Hire event organization services (package service)
Invite brand ambassadors Invite celebrities, journalists.
Design and print publications are needed in the launching ceremony.
Run advertising, PR before the event Construction, design, and review before the program Give gifts to guests
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Ads through social networking sites
Hire KOL Hire a Crew to shoot ads
Hire actor/singer to make a short video for Youtube
Run ads on social networking platforms, Youtube, Facebook Advertising contracts with TV channels
Hire a newspaper to write articles about the product
New product launch events: 2.000.000.000 VNĐ
Ads through social networking sites: 1.500.000.000 VNĐ
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In their investigation of the development strategies employed by the jewelry company in Phu Nhuan district, the team discovered that PNJ has established itself as a leading player in the gold, silver, and gems industry The company has built a strong and reputable brand, both in the Vietnamese market and internationally, effectively competing with other businesses in the sector The strategies PNJ has adopted are well-aligned with the current market economy in Vietnam, contributing to its success and prominence.
PNJ's innovative marketing strategy has positioned the company as a leader in its industry, compelling competitors to adapt This success has led to the development of a new strategic plan and the introduction of a new product line, further enhancing PNJ's competitive edge.
PNJ aims to expand its presence in the international market by planning a new product line that enhances its competitive position Key strategies include store expansion and the introduction of new brands targeting specific customer segments A long-term approach involves creating and crafting jewelry tailored to the unique styles of these segments Shine By PNJ will lead this initiative, paving the way for future brand launches that align with this strategy.
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