lOMoARcPSD|39474592 THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING FINAL EXAM INTERNATIONAL MARKETING BUILDING INTERNATIONAL MARKETING PLAN BRINGING IKEA TO VIETNAM MARKET Class: International Marketing Class code Section: 2221702031210 HO CHI MINH CITY – 2021 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 TABLE OF CONTENTS EXECUTIVE SUMMARY.1 PART 1: IKEA OVERVIEW. COMPANY’S MISSION STATEMENT.2 PART 2: VIETNAM COUNTRY. COUNTRY’S RELEVANT HISTORICAL DEVELOPMENTS. Vietnam’s relevant historical developments.The evolution of furniture.
THE NATIONAL BUSINESS ENVIRONMENT. MARKET AND SIZE POTENCIAL. ENTRY MODE SELECTION. Describe the target segment in Vietnam.
How Ikea's strategies in Vietnam differ from Europe's.24 Downloaded by nhim nhim (nhimbien3@gmail.33 PART 3: FINAL RECOMMENDATIONS. Measurement and Control. 38 LIST OF REFERENCES.41 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 LIST OF PICTURE Picture 1.1: IKEA Home furnishings.1: Age’s distribution in Vietnam.3: The GDP distribution across economic sectors of Vietnam.5: The impact of packaging on the supply chain.7: Gifted IKEA’s bag on opening day.31 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 LIST OF TABLE Table 2.1: Information about major cities in Vietnam (2019).2: Gross domestic product in Vietnam.3: The State Bank of Vietnam quoted the central rate of VND versus USD on 08/31/2022.4: IKEA's customer target segments.5: The differences of IKEA’ strategies between Vietnam and Europe.6: Element of Creative Brief.1: Measurement and Control of IKEA’s marketing plan.35 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 EXECUTIVE SUMMARY IKEA is the world's largest international retailer of furniture, assemblies, appliances and accessories. IKEA was born in 1943 in Sweden with his father, Ingvar Kamprad, a businessman who started his business at the age of 17.
Through many stages of development, until today IKEA has quickly dominated the world with 458 stores in 60 countries across continents. Currently, our student group is developing a new marketing strategy with the desire to bring IKEA products to Vietnam, more specifically, to build an IKEA retail store in District 2 in Ho Chi Minh City. Combined with the 4Ps marketing mix, our team has new directions to market the company's products in Vietnam. The IKEA enterprise considers the geographical advantages of the market it will enter - Vietnam, as well as economic, legal, technological, and material supply factors, especially about wood - a primary raw material that IKEA needs in its production process.
The team came up with a marketing strategy to implement in the first 2 years of operation. Using the knowledge gained in the International Marketing course as well as their own experience, the team develops innovative strategies. The research team hopes that these strategies and research will be useful, creative and practical for IKEA business, allowing the brand to successfully penetrate and develop in the Vietnamese market. 1 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 PART 1: IKEA OVERVIEW 1.
COMPANY’S MISSION STATEMENT IKEA's mission is: To create a better everyday life for the many people. To do that, IKEA provides customers with a wide range of useful, beautifully designed furniture products at affordable prices.1: IKEA Home furnishings IKEA is an international company specializing in the design of semi-assembled furniture, home appliances and accessories, it is the largest furniture retailer in the world. IKEA was founded in 1943 by a 17-year-old Swedish man named Ingvar Kamprad. IKEA has quickly become a global leader with 392 stores in 48 countries, scattered across all continents.
IKEA products are designed in a simple way, in line with the spirit of the world's No. 1 furniture company: Design for everyone. IKEA has both high-end products but still focuses on designs that can reach all consumers, whether people with middle income or rich can choose to buy their favorite items at the store. Ikea designed each interior part separately and provided instructions for customers to assemble and complete the item in the simplest and fastest way.
However, depending on the needs of customers who need help, Ikea company will also offer installation service packages to help customers save time and effort. 2 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 PART 2: VIETNAM COUNTRY 2. COUNTRY’S RELEVANT HISTORICAL DEVELOPMENTS 2. Vietnam’s relevant historical developments Scale of the economy is growing rapidly During the past 35 years, Vietnam's economy has achieved an impressive growth rate.
People's living standards both materially and spiritually improved markedly, in 1985 the average income per capita was only 159 USD/year, by 2020 it will reach about 2,750 USD/year. In 2020, in the context of the Covid-19 pandemic, Vietnam remains a reliable destination for investors with a total FDI capital of 28. With impressive import and export turnover, Vietnam ranked 22nd in the world in terms of turnover and export capacity, 26th in terms of international trade. Develop in harmony with socio-cultural development Vietnam's poverty reduction has made impressive achievements.
The poverty rate nationwide has decreased from 58% in 1993 to 22% in 2005; 9.45% in 2010, 7% in 2015 and less than 3% in 2020 (according to the multidimensional poverty line). The position of Vietnamese universities has been raised in the Asia and world rankings, in 2019 ranked 68 out of 196 countries in the world, up 12 places compared to 2018. For the first time, Vietnam There are 4 higher education institutions in the top 1,000 best universities in the world. Deep international integration, increasingly enhanced position Vietnam has established many strategic economic partnerships; actively build the ASEAN Community in 2015 and complete the domestic market more fully according to WTO commitments.
Up to now, 71 countries have recognized Vietnam's economy as a market economy, including Vietnam's major trading partners. Since joining the WTO up to now, Vietnam has signed 15 regional and bilateral FTAs and is negotiating two FTAs with other partners. The FTAs that Vietnam participates in cover most of the continents with nearly 60 economies with a total GDP accounting for nearly 90% of the world's GDP, including 15 G20 members and 9 out of 10 economic partners - Vietnam's largest trade belongs to the three largest economic centers in the world, namely North America, Western Europe and East Asia. Therefore, the participation and implementation of FTAswill bring great opportunities for Vietnam, positively impact economic development, improve national competitiveness, businesses and products.
Vietnam is also an active, active and responsible member of international organizations. Vietnam has participated in the Association of Southeast Asian Nations 3 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 (ASEAN), the Asia-Pacific Economic Cooperation (APEC), and the United Nations' organizations, making active and ongoing contributions. becoming a country with an increasing position and role in the region, respected by the international community. In addition, Vietnam has been trusted to be elected to important UN bodies, such as the Human Rights Council for the 2014-2016 term, the UNESCO World Heritage Committee for the 2013-2017 term, and the Council for the 2013-2017 term.
United Nations (ECOSOC) for the 2016-2018 term.The evolution of furniture According to statistics of the Vietnam Chamber of Commerce and Industry (VCCI), the average annual consumption of high-end furniture in the country reaches more than 2. In which, 80% are interior products imported from European countries, 20% are products of Vietnam. Along with the average economic growth rate of more than 6%/year, the consumption in the field of interior design of Vietnamese people in the coming time is estimated to increase even more. Therefore, European businesses coming to Vietnam this time also come from the assessment that the interior design market in Vietnam is very potential.
In the past 10 years, the growth rate of Vietnam's wood processing industry is among the most dynamic in the world; become the 7th largest wood and furniture producer, the 2nd largest exporter in the world. Vietnam's wood and furniture processing industry has had a remarkable growth in the past 10 years, but in the process of development, it also revealed many limitations such as the ability to control raw materials, the quality of machinery and equipment. need to be overcome soon to ensure sustainable development. Domestically, wood exports are also in the group of 10 items with the largest export turnover, the trade surplus ranks third among items, creating jobs for more than half a million workers.
Currently, Vietnam also has large artificial wood factories of foreign corporations such as Sumitomo (Japan) in Long An or a joint venture between Vietnam Rubber Industry Group and Dongwha Group (Korea) in Binh Dinh. Vietnam's wooden furniture export turnover in 2018 reached 9. ranked second in Asia and fifth in the world. The domestic wood processing market is extremely vibrant with the presence of nearly 4,500 enterprises.
Bringing jobs to nearly half a million workers. Also according to EVBN's analysis. Currently, Vietnam's furniture market is mainly focused on export and leaving the home field open. Much of the domestic market is a playground for imported goods.
originated mainly from China, Malaysia, Thailand. According to information from the Handicraft and Woodworking Association of Ho Chi Minh City (Hawa). In 2018, the total value of furniture consumption of the 4 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 Vietnamese market reached about 4 billion USD. And according to the statistics of the Italian Trade Office in Vietnam, it also shows.
Vietnam's average demand for wooden furniture is currently more than 21 USD/person/year. Calculating, the scale of domestic furniture consumption in 2018 has reached about 4 billion USD. In 2018, Vietnam spent nearly 500 million USD to import furniture. It is expected to continue to increase in the coming years.2 THE NATIONAL BUSINESS ENVIRONMENT 2.
People a) Language Vietnamese, also known as Vietnamese or Vietnamese language, is the language of the Vietnamese people and the official language in Vietnam. This is the mother tongue of about 85% of the Vietnamese population along with more than 4 million overseas Vietnamese. According to Ethnologue, Vietnam has 110 languages listed, including Vietnamese and two marginal languages, Mandarin and French. Of the living languages, 93 are native languages and 16 are not.
Besides the national language, we have 15 hours of development, 45 hours of health, 42 hours of difficulty and 6 hours of dying. Currently dying languages have between 20 and 300 speakers. b) Culture A culture that upholds traditional family cultural values The family is the cell of society. Traditional family culture: respecting the elderly, loving children, upholding marital love, respecting mother's rights.
Children must be filial to their parents. Brothers and sisters must stick together and help each other in times of trouble and difficulty. Traditional family cultural values are expressed in social relations such as calling the elderly grandpa, grandma, uncle, aunt, etc., while the younger ones are brothers, grandchildren, and children. A culture that emphasizes the role of women In Vietnamese culture, the image of women is highly valued and holds a worthy position in traditional cultural activities, especially in places of worship.
Open culture, adapting to world cultures. Vietnam is located in the western Pacific Ocean, east of the Southeast Asian peninsula, south of China, north of the Southeast Asian archipelago. Shown through the diversity in home decoration in the style of the East, the West,. c) Religion 5 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 According to the government's 2019 National Population and Housing Census report, there are about 13 million religious adherents, accounting for 14% of the population.
In which, Roman Catholics account for 45% of the total number of religious followers in the country, Buddhism accounts for 35% of the total number of religious followers in the country, Protestantism accounts for 7% of the total number of religious followers in the country. d) Population As of December 31, 2021, the population of Vietnam is estimated at 98,564,407 people. In 2021, the natural population growth rate is positive because the number of births exceeds the number of deaths by 912,801 people. The sex ratio in the total population of 0.997 (997 men per 1,000 women) is lower than the global sex ratio.