MKT1007 Fundamentals of Marketing - Assignment 2 Assessment Task - Semester 1,

2022

Assignment 4: Brand Extension Report

Name: HENRY VO (VO QUY)

Student Number: 104207928
Course: BA-BUS10
Tutor: Zulik Nguyen
Tutorial: Zulik Nguyen
Due Date: 27/11/2022
Date of Submission: 27/11/2022
Word Count: 1800 words

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MKT1007 Fundamentals of Marketing - Assignment 2 Assessment Task - Semester 1,
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Table of Contents
INTRODUCTION.............................................................................................................3
Part 1: Target Market Analysis..........................................................................................4
Personas......................................................................................................................... 4
Assessment and comparison of persona attractiveness...................................................5
Determined personas......................................................................................................6
Part 2. Brand Extension and Product Strategy....................................................................6
2.1. Brand Extension Strategy........................................................................................7
2.2. Product.................................................................................................................... 7
Part 3. Competitor and Positioning Analysis......................................................................9
3.1. Positioning map.......................................................................................................9
3.2. Positioning Strategy..............................................................................................10
3.3. Positioning Statement............................................................................................10
Part 4: Marketing Mix......................................................................................................11
4.1. Place...................................................................................................................... 11
4.2. Promotion..............................................................................................................11
4.3. Price......................................................................................................................11
4.4. Product.................................................................................................................. 11
CONCLUSION................................................................................................................ 12
REFERENCE................................................................................................................... 13

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MKT1007 Fundamentals of Marketing - Assignment 2 Assessment Task - Semester 1,
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INTRODUCTION
By analyzing the characteristics of customer groups based on life goals, daily behaviors,
frustrations and scores, the paper investigates the segmentation basis of those selected in
Assignment 1. The article. This project aims to identify the ideal market for the growth of the
Ford brand and its merchandise. It also discusses the strengths and weaknesses of the
competition. Research outlines brand extension plans, then identify market competitors to
describe the product's value positioning and provide details on the new product's marketing mix.
The Ford brand, which I examined in Assignment 2, is the subject of the entire article. From this
brand, I have an innovative idea that brings users access to a vehicle with autonomous
technology, Quality facilities ensure absolute safety when traveling long distances.

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Part 1: Target Market Analysis

Personas

Persona/Segmentation Demographics Psychographics Behavioral

- Name: Puneet - Age and Gender: 20 and - Social class: Middle and - Benefit sought:
Male lower class Enhanced function,
- Residence: Ho Chi Minh - Life Cycle Stage: Studying positive energy, affordable
City, Viet Nam full-time and working as a price, closeness to Gen Z,
- Education: Second-year tutor in the evening. and emotional benefits like
Bachelor of International - Goal: Find a work that pays fun
Business Student well and is steady, grow in - Frustration: Set aside
- Occupation: Tutor your profession, and do well time for work and study,
- Marriage status: Single in school. and spend plenty of time
- Income: Middle and Low - Motivation: New items, on facebook and twitter.
income many attractive models,
reasonable pricing, and high-
quality goods.
- Name: Flora - Age and Gender: 25 and - Social class: Upper and - Benefit sought: Long-
Male middle class term use products, with
- Residence: Ho Chi Minh - Life Cycle Stage: Working many good functions, safe.
City, Viet Nam at the company full-time. - Frustration: Time
- Education: Bachelor’s - Goal: Possess a job with a management while
degree in Accounting from high wage that is steady, as learning more foreign
Ton Duc Thang University well as several career languages while working,
- Occupation: Finance and progression chances. balance a lot of work, get
control - Motivation: Good things at married.
- Marriage status: Single fair pricing that meet your
- Income: Middle and demands in life are available.
High income
- Name: David Nguyen - Age and Gender: 36 and Social class: Upper and - Benefit sought: High
Male middle class. quality products, good
- Residence: Ho Chi Minh - Life Cycle Stage: Operating prices, full of useful
City, Viet Nam and leading the company. functions, beautiful
- Education: Master of - Goal: Have a reliable job, designs, attracting people
Business, Ho Chi Minh look out for your family, be to look.
City University of mobile, and purchase high- - Frustration: Organize
Economics quality goods. your workday, brainstorm
- Occupation: CEO of - Motivation: Absolutely safe, solutions that will satisfy
Tropic Farm Co., Ltd high-quality, and practical; your customers, and make
- Marriage status: Married price is irrelevant. corporate-wide choices.
- Income: Middle and

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High income

Assessment and comparison of persona attractiveness

Persona/ The fit of the segment with the Size and growth Structural attractiveness
Segmentatio brand’s identity/positioning
n
Puneet Because of this particular brand of 97% of Generation Z users get their Even if this group
automobiles, choosing a mode of product information from social engages heavily on
transportation such a vehicle is a media. (Ypulse & Kastenholz, C social media and a
luxury, not appropriate, and not 2022) Numerous published surveys growing portion of the
really required for those between predict that 30% of Vietnam's population belongs to
the ages of 18 and 22 who are still workforce will be members of Generation Z, it is
enrolled in school and have an Generation Z by 2025. (Giang, N challenging to reach
unpredictable income. In reality, 2022), Gen Z in Vietnam spends them since the brand
relatively few individuals in this about $250 a month on out-of-home equity is not appropriate
age group still own their own consumption on average. As a result, for them. However, in
vehicles for transportation, which the market is lucrative over the long order to spend money,
will have an impact on the and short terms. you don't necessarily
company's income if the product's need to become older
sales volume falls short of the and get a vehicle.
criteria set forth in the plan for the
product's return on investment.
Flora For the customer segment aged The General Statistics Office reports Due to fierce
from 25 to 35 years old, owning a that between 2015 and 2019, there competition, anticipated
car for yourself is a very was a steady annual decline in the profits, a variety of car
appropriate and convenient thing population of young people. models, and a still-
to do when you want to move 22,898,886 individuals, or 23.8% of limited willingness to
anywhere. . Currently, cars have the total population, were projected spend a lot of money on
many diverse models, suitable for to exist in 2019.( Nguyen TA, 2020) a car, entering the
any customer segment depending This is one of the challenges in this Vietnamese market for
on the requirements of that person. market's vehicle usage. However, the car consumption still
Ensuring the facilities and quality share of young individuals between presents some
of the vehicle is always a top the ages of 25 and 30 has difficulties despite its
concern when making a car consistently been the greatest and has potential.
purchase decision. grown the quickest (from 41.4% in
2015 to 45.0% in 2018). This may
provide a fresh opportunity for the
brand's long-term success.
David Subjects between the ages of 30 People of this age would purchase Since there aren't many
Nguyen and 45 are often people with automobiles for convenience in rivals in this market, it's
families, making this the most traveling as well as to transport easier to break into it.
appropriate age group for family members to travel, meeting According to the present
automobile consumption. As a the essential necessities, making demand for vehicles in
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result, it is vital to have a car when them a possible target market for Vietnam, individuals
relocating. can transport the entire investment. The number of people who purchase cars are
family and serves as a practical aged 31 to 59 tends to rise as the able to travel
mode of transportation for trips to youth population falls, accounting conveniently when the
and from work. High quality, for 36.7% of the population in 2018. weather is bad and can
environmentally friendly nature, (Nguyen TA, 2020) which suggests also transport their
user safety, and cutting-edge that automobile use in modern times families without the need
technology all characterize good has room to grow. to hire a vehicle. This
Ford goods. All Ford products are enables Ford to introduce
regionalized and produced with an a new line of vehicles
emphasis on longevity and low with self-driving
maintenance costs, taking into technology and grow its
account regional driving market in Vietnam.
conditions.

Determined personas

According to the data above, seniors between the ages of 30 and 45 represent the most logical
and likely target for exploitation. They are not only a growing segment of the Vietnamese
population, but the product also fits their consumption preferences and needs. Potential investors
include young individuals like Flora, but because there isn't much of a market for automobiles in
this demographic, Ford won't be able to fulfill its revenue goals when it introduces new products.
Additionally, as more major manufacturers invest in vehicles for this self-driving technology,
there are more options available, not to mention new vehicles, which is increasing competition in
the Vietnamese auto industry. These brands are of high quality and are well-established in
customers' thoughts. For Ford to increase its market share, seniors like David Nguyen are an
excellent choice.

Part 2. Brand Extension and Product Strategy

2.1. Brand Extension Strategy

The market that Ford targets is made up of guys between the ages of 30 and 45 who have high
average incomes and enjoy trying out new, high-tech items that meet their wants. their. They
want a product that is both safe and has absolute excellent interior amenities at an inexpensive
price because they were born in the period of technological growth and the frenetic pace of
youth. Therefore, brand extension is the best method out of the four. the best course of action to
create the product and market it to the targeted group. Brand extension is a marketing strategy in

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which a company promotes a new product or product category using its already established,
well-known brand name.
Ford is a company that has established itself in Vietnam's car sector. The new model will include
an autopilot system and won't just be a regular automobile. According to study, drivers are
primarily at blame for auto accidents. Driving a self-driving car will not be impacted by fatigue
or intoxication since the computer will handle it. A crucial truth is that, despite rising car
ownership in Vietnam, only people with valid driving licenses are permitted to operate these
vehicles. People who are too young, too elderly, crippled, or mentally ill cannot have this
experience. However, once self-driving cars are produced, everyone in society will have access
to personal transportation. Modern mobile devices will be accessible to everyone (Nguyen N,
2015). Ford has the capacity to create new goods and has developed a reputation for offering
trustworthy, dependable, high-quality automobile products at reasonable rates that are simple to
get. Buyers want a car that maintains the positive brand attributes while also being able to
incorporate new, cutting-edge technology to satisfy the demands of modern living. This is
because they have confidence in the brand and are aware of the market trend of increasing
automobile consumption. Self-driving automobiles will be included into a new category of the
company's products in order to satisfy this need.

2.2. Product

3 levels of product Explanation

Core With meticulously planned technology, the product's primary goal is
to make customers' lives easier.
Actual Using AI technology, mix a lot of data from neural networks,
machine learning, and image recognition systems. In the data
provided to the machine learning algorithm, the neural network will
find patterns. Images taken by self-driving cars are generally included
in this data so that the neural network may learn to recognize traffic
signals, curbs, people, trees, signs, and other elements of the driving
environment.(Duy L, 2021) From there, it can support automatic
driving, control the uncertainties that occur when people participate

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in traffic.
Augmented - Autonomous cars must have the ability to recognize objects that are
in motion.
- Self-driving cars, which function similarly to mobile homes, are the
answer to today's congested urban environment.
- Control software must protect users and mitigate network security
threats.
- The car's interior will be created with the user's entertainment and
lifestyle demands in mind. As long as the automobile is moving, you
may eat, sleep, rest, and even have fun.

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Part 3. Competitor and Positioning Analysis

3.1. Positioning map

These are well-known car brands and will probably in the future work towards producing cars
with autonomous driving technology. While BMW, Porsche, Audi have high prices from 1
billion to tens of billions of dong, Ford and Toyota cost less than 700 million to 3 billion dong,
depending on the type of car. However, the high price also goes hand in hand with the quality
and design as well as the brand value of the car. In Vietnam today, the percentage of people who
are willing to pay to buy a car at a high price is not much, so choosing an affordable car that
satisfies all the requirements of customers. The proposal is extremely difficult, to understand
that, the Ford brand in the famous car manufacturers has constantly added and discovered new
innovations based on the needs of consumers.(Dieu A, 2022)

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3.2. Positioning Strategy

Brand Equity: Southeast Asia has seen an overall rise in vehicle sales in recent years.
Particularly, the Philippines' and Vietnam's ongoing economic development has encouraged an
increase in vehicle sales (Research and Markets 2022). Ford is now attempting to increase its
market share in Vietnam by focusing on middle-aged individuals between the ages of 30 and 45.
Ford's objective is to dominate this market since doing so might boost Ford's market value due to
the excellence the product could provide.

- The value proposition is the idea that for the same money, you can get greater advantages. Ford
introduces two more distinctions:

+ Product: Because no Vietnamese brand offers a product that can effectively meet the demands
of numerous individuals, the product's function is appropriately geared toward the needs of
customers. The product features good facilities, autonomous driving technology—a novel feature
that is anticipated to be improved in the future—and assures traveler safety.

+ Image: Fresh hues and a young, lively picture. As a result, even when the design of the car
changes, the brand image will still convey the mood of Ford goods.

3.3. Positioning Statement

Ford combines product values with cutting-edge technology and exceptional perks to win over
customers. There isn't a car manufacturer for automated driving technology in Vietnam at the
moment. A joint company between Google and Ford will be established to create self-driving
vehicles utilizing Google technology. This is a significant milestone for both businesses as they
transition to the emerging market of self-driving car sharing (Phuong L, 2022). Ford introduces a
new product which will offer clients a novel experience. Not only that, but Ford is renowned for
its stunning and robust automobiles, which are sold in shops all over the world and inspire
confidence in a high-quality product. Additionally, it has integrated social media channels for
marketing and engaging with customers, and it has run successful advertising campaigns for
earlier product lines. Ford have every element necessary to compete in Vietnam's sizable auto
market.

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Part 4: Marketing Mix

4.1. Place

The product will be concentrated in places where the main means of transportation are cars such
as the UK, Malaysia, Singapore, Australia, etc. Since this is a car product, buyers will come to
the car sales point instead of ordering. buy online. Therefore, it will be prioritized over the
development of many Ford car sales facilities in many countries to serve the procurement.

4.2. Promotion

Ford's product positioning should be used fully to all promotional channels since it is a high-
quality product with cutting-edge self-driving technology, a stylish interior, and a reliable, safe
automobile at an affordable price. On social media sites like Facebook, Instagram, Tiktok, and
Twitter, products will be pushed. Ford's website will be appealing, drawing visitors who are
interested in learning more about this self-driving automobile. The product will also be
advertised through newspapers, TV, radio, and posters across the major cities. This may assist
draw in clients who are looking for reasonably priced, high-quality vehicles. Additionally, Ford
may collaborate with well-known individuals to produce music events, and special pre-order
pricing will assist build customer confidence in the brand and the product.

4.3. Price

The price of Ford's self-driving vehicle product uses the penetration pricing approach. This item
will be offered at a reasonable price and of excellent quality. The objective of this approach is to
target high-purchasing-power segments of the market and concentrate on product quality. A
automobile with cutting-edge technology and durability may be yours for the price of $1 billion;
this is seen as a fair asking price that is neither too low nor too high to allow for a return on
investment while yet ensuring a high percentage of consumer confidence and car purchases.

4.4. Product

This item combines Google's self-driving technology with Ford's vehicle production
technologies. The self-driving system will support this driving with the use of this self-driving
vehicle product, which will be able to help clients who are unable to drive in dangerous
situations. At this point, the user will activate the auto-drive mode in situations like after a date,
when the customer becomes intoxicated, or when the user passes out on a lengthy trip. However,
if it is not absolutely essential, it is still not wise to rely too heavily on this method. Google is
confident that, in the future, its technology will contribute to the abolition of the 33,000 fatalities
caused by traffic accidents on US highways each year.

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CONCLUSION

Ford sought to keep a pleasant and rewarding sense for its brand while functionally making the
product more relevant to its middle-aged target demographic. Ford will take its first worldwide
step and solidify the company's position by adjusting its expansion plan in key auto-movement
nations. Ford can quickly join the market thanks to its marketing prowess by increasing sales of
its goods and establishing connections with car dealers in other nations using a market-skimming
price approach.

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REFERENCE
Giang, N., 2022, “"Gen Z" - thế hệ lao động hiệu quả mới”. NGƯỜI LAO ĐỘNG, viewed 26
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Ypulse., 2021, “Gen Z & Millennials Use Social Media Differently—Here’s 3 Charts That Show
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Kastenholz, C., 2021, “Gen Z And The Rise Of Social Commerce”. FORBES AGENCY
COUNCIL, viewed 26 November 2022,
<https://www.forbes.com/sites/forbesagencycouncil/2021/05/17/gen-z-and-the-rise-of-social-
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Nguyễn, TA., 2020, “ Dân số trong độ tuổi thanh niên ở Việt Nam – Những vấn đề đặt ra”.
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<https://www.quanlynhanuoc.vn/2020/12/22/dan-so-trong-do-tuoi-thanh-nien-o-viet-nam-
nhung-van-de-dat-ra/>

Duy, L., 2021, “Công nghệ ô tô tự lái - Triển vọng của ngành tự động hóa trong tương lai”.
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trien-vong-cua-nganh-tu-dong-hoa-trong-tuong-lai>

Nguyễn, N., 2015, “[Xu hướng] Xe tự lái thông minh: Tương lai của ngành công nghệ ôtô là
đây!”. THEGIOIDIDONG, viewed 26 November 2022, <https://www.thegioididong.com/tin-
tuc/xu-huong-xe-tu-lai-thong-minh-tuong-lai-cua-nganh-cong-nghe-oto-la-day--667481>

Diệu, A., 2022, “56 Thương Hiệu Và Logo Của Các Hãng Xe Ô Tô Nổi Tiếng Trên Thế Giới”.
ANYCAR.VN – XE THẬT- GIÁ THẬT, viewed 26 November 2022, <https://anycar.vn/56-
hang-xe-o-to-noi-tieng-tren-the-gioi-va-logo-cua-cac-hang-t101019.html/#Ford>

Research and Markets., 2022, “Research Report on the Automobile Industry in Southeast
Asia, 2022-2031”. RESEARCH AND MARKETS – THE WORLD’S LARGEST
MARKET RESEARCH STORE, viewed 26 November 2022,
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industry-in?utm>

Phương, L., 2022, “Google sẽ bắt tay hợp tác với Ford để chế tạo xe ôtô tự lái”.
VIETNAMPLUS, viewed 27 November 2022, <https://link.gov.vn/YsSOOIWw>

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