4.2. Sales and Market Analysis
4.2.2. Market segmentation and targeted market
Vietnam Schreùder does not use many sophisticated criteria to segment the market. Only two broadest attributes used are functionality and geography.
Specialized originally in the exterior public lighting sector in which it has acquired a solid expertise and built a strong nationwide reputation, Vietnam Schreùder’s activities has considerably extended the range of lighting apparatus.
Today the Vietnam Schreùder concentrates predominantly on the development, assembly and distribution of an extensive assortment of lighting equipments and systems for projects in seven different lighting sectors in terms of functionality, namely:
• Public functional lighting;
• Urban lighting;
• Floodlighting;
• TunnelLighting;
• Industrial lighting; and
• Special applications.
Public functional lighting. Historically speaking, the public lighting represented the first sector the Vietnam Schreùder was active in and constituted the main expertise area of the Vietnam Schreùder. The main applications in the field of public functional lighting consist essentially of the highways, roads and street lighting. The technological and mechanical characteristics of the Vietnam Schreùder’s public lighting products (i.e., Sealsafe® locking mechanism, optimised photometry, high energy efficiency, reduced maintenance) contributed significantly to the notoriety and the international renown of the Vietnam Schreùder’s products.
The key products range currently commercialized by the Vietnam Schreùder is Opalo, Saphire, Sintra, Onyx, and Z.
Urban lighting. Using its worldwide notoriety acquired in the field of public lighting sector, the Vietnam Schreùder launched a range of lighting fixtures for urban lighting equipments that are no longer merely functional, but also aesthetic. The urban lighting exterior decoration concept aims at integrating the light sources in different urban sites (e.g., streets, squares, buildings, and bridges) to perfect the architectural harmony and balance of the urban development. The Urban lighting applications include not only the lighting fixture, but also the brackets and the mast. During the conception and the design stage, the Vietnam Schreùder works closely with renowned independent designers (e.g., Tedi South and North, many provincial designers).
The urban lighting sector includes also the architectural lighting applications that are dedicated for prestigious and symbolic sites or/and monuments. To
satisfy both tightness and photometric requirement, Vietnam Schreùder has integrated the Sealsafe® locking system andR® micro-reflectors in some of its luminaires for urban lighting.
The most important models developed and commercialized by the Vietnam Schreùder are Maya, Nemo, Hestia, Albany,. The urban lighting has promised an exceptional success amongst cities and localities.
Tunnel lighting. The tunnel lighting sector represents a very technical “niche”
sector that requires products that meet the most severe constraints in the field of photometric and mechanical performance (e.g., corrosion, tightness…). Vietnam Schreùder is a leading specialist with the Schredeùr Group support and technical assistant in tunnel lighting with prestigious references nationwide (e.g., Hai Van and Ca tunnels). The tunnel lighting equipments assembled and sold by the Vietnam Schreùder include AF, FR, FV, LV.
Flood lighting.A wide range of flood lighting has been designed for a variety of applications, ranging from lighting of large areas to sport facilities areas (e.g., football stadium, local tennis court) and lighting game.
The Vietnam Schreder’s flood lighting products include Alisios, Corus, Focal, Olympia,Radial, Terra.
Road signs. The Vietnam Schreùder currently has not entered this market as this market belong to some local competitors like HAPULICO and LUGIACO and the market share is not much developed like public lighting.
Industrial lighting.In the field of industrial lighting, Vietnam Schreùder offers a range of lighting equipments that present mechanical and technical properties (e.g., Sealsafe®) that withstand aggressive industrial environment. The
commercialization includes the models Domino, PZ.
Special applications. A range of products has been marketed from the Group’s products’ list to meet the specific needs of various lighting applications designed for illuminating railway/metro station platforms, underground stations, car parks, large open areas, shopping arcades, greenhouse, interior lighting, luminotherapy, foundry, urban furniture, etc. Vietnam Schreder’s main lighting fixtures are Limpet, and SY. However the market share for this segment is still low and it is expected to develop in 2-3 years as the construction booming will create demands.
The public lighting sector constitutes the backbone of the Vietnam Schreùder.
Indeed, as illustrated in Table 4.3 above, the public lighting sector remains the largest outlet for the Vietnam Schreùder with almost over 65 percent of its total sales in 2006. This demand, which depends greatly on the economic condition, emanates essentially from the local communities (i.e., municipalities, regions, states). However, based on the sales figures of 2005 and 2006, the relative part taken by the public lighting market in the total sales has slightly decreased for the benefit of the urban lighting. The urban lighting sector, a booming and highly profitable business in which the Vietnam Schreùder works in partnership with designers, conceptors, and architect, represented the second most important market with 10 percent of the sales in 2006. The industrial and flood lighting areas, in which the Vietnam Schreùder has gained an indisputable reputation, are another niches that have generated important revenue since 2000. The other sectors remain relatively marginal.
Geographically, the Vietnam market has been divided by The North, the South the Central and Mekong Delta region. Some geographic areas will be covered by each sales representative where they have most experiences and relationships
with the local authorities. Laos and Cambodia are also the markets that Vietnam Schreùder is entering.
Figure 4.4: Markets map for Vietnam Schreùder.
In addition, the market has been also divided by the nature of the projects like residential, industrial parks (domestic or foreign direct investment) or national and international projects funded by international organisations (JBIC, WB, ADB, etc...) These markets are also mixed to each sales representative based on the professional skills and experiences.
The list of quantity of fittings sold by regions will help Vietnam Schreùder to locate the targeted markets in the future is illustrated in the Table 4.5 as below:
SALES BY
PROVINCE 2000 2001 2002 2003 2004 2005 2006
Total South
7,325 6,940 8,809 12,861 9,026 14,061 13,726 Total Central 2,925 3,298 4,627 6,226 6,120 6,229 5,170 Total North
1,351 1,351 1,951 3,665 5,413 3,641 2,567 Total fittings sold
11,601 11,589 15,387 22,752 20,599 23,931 21,463 Components 785 1,740 3,024 1,928 1,763 1,895 1,678
Cambodia 24 40 49 1,132
Laos 52 29
Pole 2 644
Grand total
11,601 11,589 15,411 24,680 22,404 24,032 24,946
Table 4.5: Quantity of fittings sold by regions from 2000-2006 < source Sales Department>
From the above statistics there are market potentials for the Northern and Central regions. The Cambodian andLaos markets are also identified as potential.