MINISTRY OF FINANCE

UNIVERSITY OF FINANCE – MARKETING

MARKETNG FALCUTY

GROUP REPORT
SUBJECT: MARKETING MANAGEMENT
ID CLASS: 2431910020201

VIETNAM AIRLINES’ MARKETING STRATEGY IN

2025

N.O Student Name Student ID

1 Khưu Ngọc Huệ 2221001932

2 Nguyễn Thị Thu Thảo

3 Nguyễn Ngọc Mỹ Trâm

4 Dương Thị Phương Anh 2221001918

5 Đặng Thanh Hằng 2221001931

1
Ho Chi Minh City – Semester 3, 2024

2
 GROUP CONTRIBUTION
Student Name Student Percentage of
ID Contribution

1. Khưu Ngọc Huệ 2221001 100%

932

2. Nguyễn Thị Thu Thảo 100%

3. Nguyễn Ngọc Mỹ Trâm 100%

4. Dương Thị Phương Anh 2221001 100%

918

5. Đặng Thanh Hằng 2221001 100%

931

1
LIST OF FIGURE

i
LIST OF TABLE

ii
TABLE OF CONTENTS

iii
EXECUTIVE SUMMARY

1
CHAPTER 1. OVERVIEW OF VIETNAM AIRLINES

1.1. Situation Analysis

1.1.1. Introduction of Vietnam Airlines

Vietnam Airlines - known worldwide as a national airline of the Socialist Republic
of Vietnam. Currently, it has two main headquarters at the two largest airports in the
country: Noi Bai International Airport and Tan Son Nhat International Airport.
Currently, Vietnam Airlines connects more than 20 destinations in Vietnam and
around 30 international locations with more than 120 routes. The airline boasts a modern
fleet of over 100 aircraft, including the latest types like the Boeing 787 and Airbus A350.
Vietnam Airlines is renowned for its dedication to customer pleasure; they integrate
Vietnamese culture into the trip while placing a high value on safety, timeliness, and
excellent service (History, 2019). It's important to keep in mind that the airline has been
giving itself a 4-star rating by Skytrax for the past four years, and it is actively trying to
get that rating up to a 5-star rating.
The State owns a substantial 86.34% of Vietnam Airlines, while All Nippon
Airways is a strategic partner and owns 5.62% of the airline (Hai Yen, 2022).
Furthermore, with 98% of Pacific Airlines' shares, Vietnam Airlines is the airline's largest
shareholder. It also controls the Vietnam Air Services Company (VASCO), which
specializes in short-haul domestic flights.

1.1.2. Milestones of Vietnam Airlines

1995: Establishment of Vietnam Aviation Corporation consisting of the Vietnam
Airlines and 20 air service entities.
2002: Introducing the new logo- the Golden Lotus presenting outstanding service
quality improvements, flight network expansion, and fleet upgrades.
2006: Becoming an official member of IATA.
2010: Officially becoming the 10th member of the SkyTeam Alliance.
July 2016: Officially certified as a 4-star international airline according to Skytrax
standards.
July 2018: Awarded the Skytrax certificate for the 3rd consecutive time as a 4-star
international airline (2016, 2017, 2018).
July 2020: Awarded the highest level, 5-Star, for COVID-19 Airline Safety Rating
from Skytrax.
September 2023: The leading MICE airline in the world was awarded the World
Travel Award.

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1.1.3. Mission - vision and core values that Vietnam Airlines aims to achieve.

1.1.3.1. Mission - vision

Vietnam Airlines aims to become the leading airline in Asia that customers
trust and choose. As the national airline, we are committed to becoming the main
transport force, providing diverse and high-quality services to meet the needs of
customers. We also create a friendly, professional working environment, with many
opportunities for development and success for employees. At the same time, we
strive to operate effectively to ensure sustainable benefits for shareholders.

1.1.3.2. Core values

Safety is always the top priority, the foundation for all activities of the
airline. Customers are at the center, and VNA understands that the development of
the organization is closely linked to the trust of customers. Employees are
considered the most valuable asset, so all remuneration policies are built on fairness
and worthy benefits to maintain cohesion and create solidarity within the
organization. We are also committed to continuous innovation, with the motto that
innovation is the driving force for change, VNA is constantly innovating in all areas
with breakthrough thinking to achieve great success.

1.1.4. Towards the future

Vietnam Airlines aspires to become an international airline with a dynamic,
modern image and reflecting the rich cultural identity of the Vietnamese people. With
more than 20 years of continuous development and impressive growth, the airline has
affirmed its position as the leading airline in the Vietnamese aviation market, one of the
fastest growing domestic markets in the world (History, 2019).
As a widely recognized modern airline brand with a unique cultural identity,
Vietnam Airlines is committed to developing with the goal of becoming the leading 5-star
international airline in Asia. With the airline's vision: to be in the top 10 most popular
airlines in the region, ranked in the top 3 in terms of scale in Southeast Asia and fully
embracing digital transformation.
Moreover, Vietnam Airlines always strives for a 4-star service image and
constantly improves with the goal of achieving 5-star aviation standards in the near future.
With a long-term vision, the airline always prioritizes finding good labor sources,
attracting talents with the most attractive remuneration in the Vietnamese labor market,
ensuring that the airline is always at the forefront of providing special services and
experiences for passengers.

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1.2. Environment Analysis

1.2.1. Microenvironment

1.2.1.1. Suppliers
Airbus is one of the leading aircraft manufacturers in the world. Boeing is
one of the leading civil and military aerospace companies in the world. Collaborate
with Safran Seats for the supply of aircraft spare parts, reconfiguring aircraft seating,
and installing in-flight internet connectivity systems (baochinhphu.vn, 2024).

1.2.1.2. Customers
The demand for air transportation for tourism, business trips, conferences,
and seminars is enormous, creating a customer base from both domestic and
international sources for Vietnam Airlines. The airline meets the needs of all
customer segments from different social classes and income levels. At the same
time, it clearly identifies its target customer segment as middle and high income
customers, those with good financial status who seek excellent and impeccable
service when using Vietnam Airlines' services.

1.2.1.3. Competitors
In the current civil aviation sector, the competition is fierce with the
emergence of low-cost private airlines. In the domestic market, Vietjet Air is a
major competitor to Vietnam Airlines. Compared to this company, VNA targets
middle and high income customers, leading to intense price competition.
In terms of pricing, VNA does not have an advantage over the
aforementioned airline. However, VNA offers the best quality service and class in
the aviation industry. Vietjet Air has many advantages in ticket prices and attractive
promotions, with lower costs. Still, in the newly stabilized post-pandemic period,
Vietjet's passenger volume is not stable, often leading to flight delays, causing
difficulties for customers.

1.2.2. Macroenvironment

1.2.2.1. Demographic
The average population of Vietnam in 2023 reached 100.3 million people,
with a fairly balanced gender ratio (49.9% male, 50.1% female). Vietnam is the third
most populous country in Southeast Asia (after Indonesia and the Philippines) and
ranks 15th in the world.(General Statistics Office, 2024). This leads to a higher
demand for travel and cargo transportation, creating favorable conditions for
development.

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1.2.2.2. Political factors
The stability of the political system is one of the major factors affecting the
development of businesses. Due to the nature of the aviation industry, international
flights depend on the political situation of countries other than Vietnam. Therefore,
the current global political instability also negatively impacts Vietnam's aviation
industry. For example, the Russia-Ukraine war, the Israel-Hamas conflict, or the
border conflicts in Myanmar also affect Vietnam Airlines (Dung, 2024).
Vietnam Airlines is a state-owned company of Vietnam, thus it heavily
depends on the government and political decisions. The government can have a
significant impact on the aviation industry through licensing management, tax
policies, and state management.
Additionally, as a national airline, Vietnam Airlines receives support in terms
of capital, enterprise protection, and financial policies, especially during difficult
times such as economic crises, wars, pandemics, and fuel price hikes. For instance,
during the Covid-19 pandemic, the government lent Vietnam Airlines 4,000 billion
VND at 0% interest for three years (General Statistics Office, 2021).

1.2.2.3. Economic factors

After the Covid-19 pandemic ended, the global economy still struggled to
recover amidst the prolonged Russia-Ukraine conflict, leading to high inflation and
central banks continuously raising interest rates. According to IMF forecasts, after
reaching a growth rate of 3.5% in 2022, global economic growth in 2023 and 2024
is expected to be 3.0% and 2.9%, respectively. The conflict in the Middle East poses
risks to the global economy and the demand for air travel. Vietnam's economy also
faces many challenges during this period. (Vietnam Airlines, 2023). However,
stepping into 2024, the GDP for the first nine months is estimated to increase by
6.82% compared to the same period last year. The service sector, which grew by
6.95% (contributing 48.41%), has maintained its growth momentum, positively
contributing to the overall economic growth (General Statistics Office, 2024b).

Figure: Nine-month GDP growth rate compared to the same period

of the previous year from 2011 to 2024 (%)
5
 Figure: Overview of KTXH for Q3 and 9 months of 2024
Vibrant commercial activities and a strong tourism recovery are driving
Vietnam's economic growth, creating opportunities for the expansion of the aviation
industry.

1.2.2.4. Social-cultural environment

Vietnam's diverse and advanced cultural heritage contributes to the
development of tourism, expanding Vietnam Airlines' market to international
visitors coming to Vietnam (Phong, 2024).

6
 Figure: Vietnam boosting efforts to entice international tourists
Cultural differences between regions affect travel preferences, with people in
the Northern region being more frugal and less likely to choose air travel compared
to those in the Southern region or in more developed countries with higher incomes.
Changes in passenger preferences and needs, for example: the increase in
international travel, passengers preferring high safety standards and premium
services, or the trend of seeking unique cultural values and pristine ecotourism, are
also becoming popular (Ho Chi Minh City Party Committee, 2019). The younger
generation can influence how Vietnam Airlines approaches and advertises to its
target audience (VTC News, 2023).

Figure: Vietnam Airlines ký kết hợp đồng tín dụng với SeABank, MSB và SHB với
tổng số tiền 4.000 tỷ đồng. Ảnh: VGP/Phan Trang

1.2.2.5. Technological
Developments in aviation technology, such as high-performance aircraft,
online booking systems, and internet access, can provide competitive advantages
(SEO, 2023).
Technology can also influence operations, maintenance, and offer substantial
potential for businesses to operate efficiently and enhance customer experiences.
Notably, leveraging Data Analytics to collect and analyze customer data, promoting
the application of AI in aviation to improve flight experiences, and applying
Biometrics technology for identification and authentication (Media Lab, 2024).

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 1.2.2.6. Environment
Environmental issues are becoming increasingly important for the aviation
industry, including the impact of greenhouse gasses and fuel consumption
management. The sustainability race in aviation will accelerate. More aircraft
participating in cargo transportation means stricter global emission controls are
needed (thitruongtaichinhtiente.vn, 2024). Vietnam Airlines may face strengthened
environmental protection regulations and energy efficiency requirements.

1.2.2.7. Legal
Aviation safety regulations and competition behavior regulations can affect
the operations of Vietnam Airlines (Civil Aviation Authority of Vietnam, 2017).
International agreements and trade agreements can define the rights and
responsibilities of Vietnam Airlines when operating abroad.

1.3. SWOT Analysis

Strength Weakness

 National airline with a high  Fleet size is still smaller compared to

reputation. international competitors (Singapore
 Member of SkyTeam - one of the Airlines, Thai Airways, Malaysia
world's three major airline Airlines).
alliances.  4-star service quality, which is lower
 The first airline in Vietnam to use than Garuda Indonesia, Singapore
sustainable fuel for commercial Airlines, All Nippon Airways, etc. (5-
passenger flights. star).

 Extensive flight network (both  Low rate of customers using connecting

domestic and international). flights.

 Modern fleet (A350, B787,  Low percentage of business-class

A321Neo). passengers and high-revenue customers
compared to the IATA average.
 Experienced management team.
 Limited IT infrastructure and
 Well-structured organization. technological skills among the
 Focus on training and human workforce.2
resource development.

Opportunities Threats

 Geographical location at the  Surrounded by major full-service

gateway of Southeast Asia. carriers and large low-cost carriers.
 Stable and safe domestic political  Global political instability.
environment.  Domestic market is highly price-

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  Population of nearly 100 million, sensitive.
with rising income levels.  Shortage of pilots and technicians.
 GDP growth of 6% per year.  Uneven technological proficiency
 Increasing number of tourists among customers.
coming to Vietnam.
 Opportunity to enter new markets
like North America.
 Potential for collaboration with
SkyTeam members and other
international airlines.
 Opportunities to partner with non-
aviation businesses to diversify
and enhance service quality.
 Limited alternatives (trains, road
transport, etc.).

CHAPTER 2. MARKETING OBJECTIVES

Based on our environmental and SWOT analysis, we've identified a shift in the
consumption behavior of the younger generation, coupled with the rapid growth in
tourism, creating substantial opportunities for Vietnam Airlines to expand its younger
customer segment. Specifically, Gen Y (under 35 years old) and Gen Z are increasingly
seeking modern, youthful, and personalized travel experiences. Therefore, Vietnam
Airlines needs to set a goal of rejuvenating the brand, building a more modern, youthful
and dynamic image.
Specific: Focus on expanding brand knowledge and loyalty within the Gen Z and
Gen Y segments (ages 18-35).
Measurable: Increase brand awareness among Gen Z and Gen Y (ages 18-35) by
20%, measured through improvements in brand recall and recognition rates, as well as
growth in social media engagement and digital interactions, by the end of 2025.
Achievable: Through brand modernization, digital engagement, and the
integration of high-tech, convenient, and experience-focused services that align with
younger travelers’ expectations.
Relevant: Matches the demand of younger generations for technology-driven
convenience and experience-rich travel, addressing market trends and positioning
Vietnam Airlines as a competitive choice.
Time-bound: To be achieved by the end of 2025.

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CHAPTER 3. MARKETING STRATEGY - STP

3.1. Targeting

Target 1 Target 2

Domestic customers: This group usually travels within the

country for work, visiting family, or leisure. They are interested in
Geographic
reasonable ticket prices and convenience. They live in urban areas,
concentrated in big cities.

Demographic Age:
 Young Adulthood (18-35  Early Middle Age (35-45
years old): this group of years old): They prioritize
customers can be students and comfort, service quality,
office workers, they care more and travel convenience.
about prices and promotions This segment of the market
than service quality. They travels for both business
often have higher demands and entertainment and is in
during holidays and vacations. search of reliable and
Often go for vacations and comfortable services rather
work. They pay attention to than seeking cheap prices.
pricing and promotional The key benefits they enjoy
programs. This group prefers are frequent flier programs,
convenience, reasonable ticket lounge access, and
prices. They are skeptical of personalized services.
advertisements, relying more Established brand loyalty
on blog reviews and social and good reputations play
media for authentic an important role in their
information choice, as they would like
to see exclusive offers and
receive quality assurance.

Income:
 From 10 to 30 million:  From 30 million VND and
This group tends to be more: This group usually
seeking a balance between has high income and is
price and service quality. willing to spend more for
So promotional offers on excellent service. added
economy tickets or combo benefits, like convenient
packages have a great travel options, loyalty
10
 appeal to this category of rewards, and premium
customers. They are also experiences, are much
willing to pay for services favored by them. They
that provide good value for value reliability and are
money, but without much drawn to offers that make
fuss over the level of their journeys easier and
service quality. more enjoyable. They
prioritize reliability and
efficiency, often booking
services that ensure
convenience and superior
quality.

Gender:
 Male: They usually want to book tickets as early as possible for
convenience and rarely care about the details.
 Female: These customers usually care about the total
experience, starting from comfort to in-flight services. They can
spend more time searching and comparing offers. The interest of
female customers in promotional programs is very big.

Psychology Social class:

 Middle class: Middle class:  Upper Middle Class and
Individuals in this group are Above: They have a high
either students, fresh income. They seek
graduates, or early to mid- premium experiences and
level office workers. They aim are willing to invest in
to optimize their spending by comfort and high-quality
seeking out opportunities that services. They tend to
provide the best value for their spend more money for
money. While they are price- loyalty rewards, exclusive
sensitive, they still invest in travel benefits, and reliable
experiences and products that service that make their trips
have good value, especially convenient and enjoyable.
when promotional offers or
convenient deals are involved.
They want to balance quality
with affordability.

11
 Personality:
 Dynamic and Creative:
People seek new  Trust-Oriented: This
experiences while enjoying segment places a high value
services. They prefer on safety and
trendy services that bring a trustworthiness. They are
fresh and youthful vibe. attracted to brands with a
 Modern: Today's youth solid reputation and proven
use all advanced reliability.
technologies in all walks of  Brand-Loyal: The people
life, even in traveling in this group generally stay
 Thinking for Community: with one brand. Once they
A feeling of community find something that meets
and young friends means a their expectations, they are
lot to the youth of today. most likely to use it and
They usually want to also recommend the brand.
participate in activities that They will be loyal to the
are charitable and meant brands because of their
for society. exclusive benefits or
personalized offers.
Value:
 Value of Experience:
Memorable experiences
outshine material  Value of Quality: This
possessions in value for group emphasizes belief in
most young people of the importance of high-
today. They look at quality service. Attention
meaning and new will be given more to
adventures in life.. memorable travel
experiences, comfort, and
 Value of Sustainability: importance.
Young customers often
emphasize sustainability,
transparency, and social
responsibility. They are
drawn to brands that
demonstrate a commitment
to environmental and
community efforts.

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Behavior Occasions:
 Holiday Travel: Customers in this group tend to travel during
holiday seasons, often with family, looking for affordable
packages, convenience, and entertainment options.
 Weekend getaway: The consumers are seen traveling during
weekends, especially in the case of couples or groups of friends
who like taking short trips.
 Business Travel: Customers in this group usually travel for
work, often looking for flexibility, loyalty programs, and
comfort.

Benefits
 Cost-efficiency: Price-
sensitive customers looking  Comfort and
for the best deals, Convenience: They enjoy
promotions, and premium features such as
competitive pricing. spacious seating, priority
 Convenience: Travelers boarding, and access to
who prioritize easy exclusive lounges. These
booking, flexibility in flight benefits make their travel
schedules, and efficient more relaxing and
customer service. enjoyable.

 Experience Seekers:  Personalized Customer

Customers interested in the Services: Special touches
overall travel experience, like special travel
such as special in-flight arrangements or
meals, entertainment, or remembering certain
unique travel packages. preferences will make them
feel special and wanted.
 Premium customer
service: They receive
quality customer service.
They can be rest assured
that they are taken care of
during the journey.

User Status
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  First-time user: Passengers flying with Vietnam Airlines for the
first time. They may be attracted by a special promotion, positive
reviews, or recommendations from friends or family.
 Re-user: Regular customer in Vietnam Airline

 Loyalty:
 Split loyalty: Customers loyal to two or three airlines, including
Vietnam Airlines.

 Shifting loyalty:  Hard-core: Passengers

Passengers shifting loyalty who exclusively fly with
between airlines, including Vietnam Airlines.
Vietnam Airlines.

Target Strategy
In targeting two customer segments for Vietnam Airlines, there are three aspects
showing marked differences in the Demographic, Psychographic, and Behavior profiles of
each segment. The first potential segment would comprise young customers aged between
18 and 35 years, who are looking for economical prices and speed-of-service experiences.
The second potential segment between 35 and 45 years-old 35 and 45 years-old, generally
those with a more stable income, looking for a comfortable and stable flying experience,
and business endeavors. These differences provide the basis for developing two specific
marketing strategies for each of the segments: a high-service-value strategy in one, and
convenience and flexibility with reasonable price and easily accessible for the younger
segment.
Because of the distinct preferences and purchasing behaviors between the two
segments, Vietnam Airlines needs to apply a Mix Strategy focused on Pricing Strategy to
optimize marketing effectiveness to optimize marketing effectiveness, helping to expand
and sustain its market share. This strategy enables the airline to fully capitalize on the
potential market of both customer groups. This strategy creates more reasonable and more
attractive options for both segments. Besides, it provides Vietnam Airlines with a
competitive advantage that is higher in revenue and further grows the business in a more
sustained manner given the high competition faced within an aviation market. This could
be achieved when Vietnam Airlines would strategically alter the prices to be those best-
fitted to different financial abilities.

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3.2. Positioning

3.2.1. Competitor
Competitive frame of reference: 2 main types competitor:

3.2.1.1. Indirect Competitors:

Railway companies and train services: Companies like Vietnam Railways
provide long-distance domestic travel, especially for domestic journeys that
passengers can choose instead of flying.
High-quality bus services: Some inter-provincial bus services like Phuong
Trang, Mai Linh, serve long-distance journeys at cheaper prices, attracting
customers on a budget.
High-speed ferry services: The access to islands like Phu Quoc and Con
Dao, or Ha Long from the mainland, is contributed by the high-speed ferry
companies besides flying. Travel
Companies and tour services: Companies like Saigontourist, Vietravel sell
not only air tickets but also sell a package of travels by bus, train, or boat; therefore,
the use of aircraft will be reduced.
Online conferencing platforms: With the development of technology and,
respectively, remote work, online conferencing service platforms such as Zoom and
Microsoft Teams are taking business travel's place, especially in the corporate
environment.

3.2.1.2. Direct Competitors:

Vietnam Airlines Vietjet Air Pacific Airlines

Higher prices but
Low-cost pricing with
Price offers premium Low-cost pricing
frequent promotions.
services.

Mixed customer service Good onboard meal

Excellent customer reviews; significant services and simple
Customer service with a complaints about delayed boarding procedures but
Service reputation for or canceled flights. Rated criticized for poor
professionalism. poorly on platforms like customer support and
TripAdvisor. call center delays.

15
 Youthful and energetic
Strong brand image Youthful and budget-
brand image, using vibrant
associated with friendly brand image,
colors and marketing
Brand Image luxury, reliability, focusing on
aimed at millennials and
and traditional affordability and
Gen Z. Heavy use of social
Vietnamese values. accessibility.
media.
Highly punctual,
Lowest punctuality rate
known for being Moderately punctual but
among domestic airlines,
Punctuality one of the most has a reputation for
with frequent delays
reliable airlines in some delays.
reported.
Vietnam.
57 routes (22
125 routes (45 domestic 39 domestic and
domestic and 35
Route and 80 international international routes
international
routes)
destinations)

3.2.2. POP
Domestic and International Route Network: Both Vietnam Airlines and their
competitors offer domestic and international flight routes
Service Offering: Compared to its competitors, Vietnam Airlines offers a range of
services, including in-flight meals, entertainment, and baggage handling.
Safety Standard: Similarly to other airlines, Vietnam Airlines adheres to international
safety regulations and standards.

3.2.3. POD
Price: The price is higher because the airline wants to offer premium service. It is
considerably higher compared to its competitors, VietJet and Pacific Airlines. Hence, it
attracts fewer budget-conscious passengers.
Customer Service: Vietnam Airlines provides excellent customer service, which
justifies its premium pricing.
Punctuality: According to the Civil Aviation Authority of Vietnam, Vietnam
Airlines was named the most punctual airline in Vietnam in the first half, achieving an on-
time performance (OTP) rate of 84.1%.
Brand Image: Vietnam Airlines is known for its luxury image, associated with
traditional values and high-quality services, which sets it apart from the youthful and
dynamic image of VietJet Air and Pacific Airline.
Less Diverse Route Network: This is one of the weaknesses of Vietnam Airlines.
This limitation can be a disadvantage in attracting travelers who prefer options with more
diversity over routes (this factor also allows VietJet air maximizing revenue)

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3.2.4. Positioning Map

Vietnam Airlines is positioning itself as a premium full-service carrier and

committed to excellence in service delivery and showcasing Vietnamese culture. The core
components of the brand that this carrier is focused on include luxury, comfort, and
dependability.
Within this core position, we aim to present a more youthful and friendly brand
image with the younger generation while still maintaining the high service quality that is a
key advantage and core value of Vietnam Airlines.

3.3. Marketing Strategies

3.3.1. Product Strategy

Flexible
Ticket
Services Baggage Refund/Change
Class
Policy

Economic - Flexible check in - Cabin baggage: Up to Refundable with a fee

Class (online/ offline) 12kg (1 bag up to 10kg +
1 accessory up to 2kg)
- Checked baggage: 1
piece, max 23kg

Premium - Ground Services - Cabin baggage: 12kg (1 More flexible options

Economy • Priority at the main bag up to 10kg + 1 for ticket refund or
Class Merchant check-in accessory up to 2kg) change
counter; - Checked baggage: 1
• Priority baggage drop- piece, max 32kg
off;
• Priority boarding;
• Priority
disembarkation;
• Priority baggage pick-

17
 up.

Business - Using the Lotusmiles - Cabin baggage: 18kg Most flexible options
Class Lounge/Business (2 main bags, up to 10kg for ticket refund or
Lounge service each + 1 accessory) change
- Priority Ground - Checked: 1 piece, max
Services: 32kg
• Priority check-in at the
Merchant counter;
• Priority baggage drop-
off;
• Priority entry
procedures and security
checks;
• Use of the Business
lounge;
• Priority boarding;
• Priority
disembarkation;
• Priority for transit and
connecting procedures;
• Priority baggage pick-
up.

From the above product portfolio of VNA, it can be seen that VNA provides
comprehensive service experiences and effectively meets the needs of various customer
segments. Furthermore, based on VNA's core value of bringing safety and the best service
quality to customers, we will maintain the fare classes and accompanying services to
ensure consistency in service quality.

3.3.2. Pricing Strategy

3.3.2.1. Value based - Pricing

Since its inception, Vietnam Airlines has implemented value-based pricing.
The airline is concerned about the value that consumers derive from utilizing 19
Vietnam Airlines services. Customers are prepared to pay that price in exchange for
the value that Vietnam Airlines delivers them. Realize that these pricing strategies
are still effective and bring many positive values to businesses, partners and
customers. Pricing is based on the value the service provides to customers, such as
comfort, uniqueness, and the luxury experience. Vietnam Airlines with its high-
end brand positioning corresponding to the quality of service, the airline's customers
expect quality to always go hand in hand with price. In some cases, the high price
for the product is because of the brand image, giving customers a sense of luxury
when using the service.

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3.3.2.2. Tiered Pricing
Service packages are divided into three ticket classes (Economic Class,
Premium Economy Class, and Business Class) to fulfill the needs and consumption
habits of various consumer groups.

3.3.2.3. Dynamic Pricing

Prices can be modified flexibly based on demand and Vietnam Airlines 's
service capability for major events with strong demand or special requirements. This
pricing campaign is considered the most famous of airlines in general, and
Vietnam Airlines in particular, because it satisfies customer needs for each
individual time period, such as peak and off-peak booking times during the day,
days, off-peak and peak flight hours.
Off-peak flight hours include:
 Early morning (before 6 a.m.) with fewer passengers, which results in
lower ticket prices.
 Midday to early afternoon (11 a.m. - 2 p.m.): Less travel means lower
ticket prices.
 Late Night (after 9 p.m.): Because late flights are inconvenient, they
are often cheaper.
Off-peak booking hours include:
 Early morning (12 AM - 3 AM), when airlines offer reduced fares
owing to low traffic.
 Working hours (9 a.m.-11 a.m. and 2 p.m.-4 p.m.): Promotions and
discounts are frequently advertised on the airline's website during
these times.
 Tuesdays and Wednesdays: Midweek travel demand has fallen,
resulting in lower ticket options.

3.3.2.4. Competition-based pricing

Vietnam Airlines has been successfully applying the core pricing strategy of
Competition-based pricing. For example, Vietjet Air's rate only covers airfare and a
maximum of 7kg of hand luggage, but Vietnam Airlines' ticket price includes all
baggage fees. The accompanying meal and seat service, weighing up to 27
kg/person, is superior to that of Vietjet Air. Vietnam Airlines can improve its
associated products and services so that clients understand that, despite the price
difference, flying with Vietnam Airlines would provide concrete and intangible
benefits.

19
 3.3.2.5. Product Mix Pricing Strategy
In addition, the Product Mix Pricing Strategy also helps VNairline meet the
specific needs of each customer segment.
Optional Product Pricing: Vietnam Airlines offers additional services
such as extra checked baggage, gourmet meals, and entertainment and relaxation
options during the flight. These services frequently require additional fees, which
customers can choose to include or exclude.
Captive Product Pricing: Premium class passengers and Vietnam Airlines
card holders receive VIP lounge service, priority check-in, and other benefits. These
services are included in the base ticket and can be upgraded at an additional cost.
Expanding the customer experience with optional costs, giving customers more
control over their experience.
Product Line Pricing: Vietnam Airlines offers several ticket classes,
including Economy, Premium Economy, Business, and First Class. Each class has a
different price depending on the services and amenities offered. This enables clients
to select the type of service that best suits their needs and budget.
Promotional Pricing: Vietnam Airlines routinely provide promotions,
discounts, and low-cost flight tickets during the off-season. This allows you to
attract more clients during low-demand seasons while maintaining a competitive
market share.

3.3.3. Place Strategy

3.3.3.1. Brick-and-click model

Vietnam Airlines utilize a brick-and-click model as we can leverage both
offline and online distribution channels to provide customers with a convenient and
flexible shopping experience. With this strategy, Vietnam Airlines can cater to the
diverse needs of customers, from those who prefer in-person shopping to tech-savvy
customers who are inclined to shop online. This approach helps Vietnam Airlines
not only expand its customer reach but also strengthen the connection and
interaction between the brand and its customers.

3.3.3.2. Selective Distribution

Vietnam Airlines has adopted a selective distribution strategy to ensure that
the quality of service provided by all intermediaries is synchronized and consistent.
This approach allows the company to easily manage distribution partners while
expanding its coverage to various customer groups, both domestically and
internationally. It enables Vietnam Airlines to better meet the needs of customers

20
across different regions, while maintaining and enhancing the brand image in the
eyes of global consumers.

3.3.3.3. Agents
Vietnam Airlines has expanded its distribution system to multiple locations
across the country and internationally to maximize customer convenience when
booking flights. Currently, Vietnam Airlines has a rapidly growing distribution
network with nearly 10 branches and offices in more than 20 countries and regions.
The airline covers the market across four continents. In Vietnam, it has nearly 30
branches across more than 20 major provinces and cities. Most of these transaction
points provide quick solutions for booking, ticket issuance, and ticket changes.
Agents act as representatives of the airline, ensuring that the brand's values, actions,
and culture are effectively conveyed from the headquarters to the distribution
channels.
Vietnam Airlines provides marketing materials and clearly communicates the
brand's rejuvenation goals to its agents to ensure alignment in the implementation of
promotional campaigns. The airline also partners with tourism companies like
Saigontourist, Du Lich Viet, and Viettourist, offering ticket booking services
through their websites.

3.3.3.4. Facilitators
Vietnam Airlines ensures a seamless user experience across OTAs (Online
Travel Agencies) like Booking.com and Agoda. Vietnam Airlines ensure:
 The real-time updates with flight information, ticket prices, and schedule
changes are continuously updated across all platforms.
 Integrated services that customers can book flights, hotels, and other
services on a single platform with synchronized information.
 OTAs offer 24/7 customer support, ensuring efficient assistance with
bookings, itinerary changes, and refund requests at any time of day or
night.
 OTAs are linked to Vietnam Airlines' loyalty program (such as Bong Sen
Vang), allowing customers to earn points and receive benefits even when
booking through third-party platforms.
 Customers can start booking on one device (e.g., a computer) and
complete it on another (e.g., a mobile phone) while maintaining
synchronized information. Vietnam Airlines and OTAs ensure a smooth
experience across all devices.
The Vietnam Airlines mobile application, but now Its average rating in app
stores is 3.9-star; therefore, acts as a very important distribution channel, but there
21
 will always be room to make it even more customer-centric. Enhancements in
UX/UI and addition of features can improve UX manifold. Accordingly, Vietnam
Airlines needs to optimize the booking process in a simple and user-friendly way,
integrate features that provide convenience for customers, such as flight
notifications, Bong Sen Vang loyalty program, and fast payment methods.
Vietnam Airlines’s website remains a key distribution channel, with the
ability to integrate online payment and customer support through live assistance
tools.

3.3.4. Promotion Strategy

Vietnam Airlines has implemented a push-and-pull promotion strategy to cater to
the preferences of its two main customer segments: ages 18 to 25 and ages 25 to 35. Apart
from enhancing brand awareness, this strategy aims to build a close relationship with
customers and create a youthful, modern, and personal brand image for each consumer
group. By combining a variety of advertising methods, the airline not only attracts
customers' attention but also creates memorable experiences for them. This also
contributes to encouraging customers to choose Vietnam Airlines for their next trips .

3.3.4.1. Advertising
POP Displays: Place point-of-purchase displays in prominent locations,
including airports, shopping malls, universities and bus stations.
Billboards and posters: Choose advertising locations with good traffic to
effectively attract target customers.
Advertise in newspapers and major publications to reach business customers
- maintain a good brand image with customers.
Air ads on popular TV channels to increase brand recognition.

3.3.4.2. Interactive Marketing

Influencer Collaboration: Implement a plan to collaborate with influencers to
share flight experiences and explore destinations through the "Make your tour"
feature.
Social Media: Use platforms such as Facebook, Instagram, TikTok, YouTube
and Threads to refresh the brand image, drive engagement and share travel tips.
Banner ads and Google Ads.

3.3.4.3. Direct Marketing

Official website: Show Vietnam Airlines' current products and services and
general customer reviews, including flight procedures and certifications,
commitments to quality standards that the airline has achieved.
22
 Send emails about loyalty programs and special offers.

3.3.4.4. Public relations and publicity

Sponsoring reality TV shows and programs - promoting the youthful, modern
and energetic image that the airline is rejuvenating.
Combining sponsorship of national, cultural, social, educational and sporting
events, and contributing to community support activities.

3.3.4.5. Sales promotion

Contests: Organizing contests to encourage young travelers to record their
journeys with Vietnam Airlines, awarding attractive prizes.
Share a Story: Encourage young customers to share funny and memorable
stories about their return for a chance to win a discount airfare voucher.
Flexible Pricing: Offer flexible fare options that allow customers to change
their itinerary without incurring a fee.

23
3.4. Implementation

3.5. Financial projection

According to Vietnam Airlines' 2023 financial report, the revenue generated solely
from passenger and luggage transport services amounted to 65,444,120,557,354 VND.
Additionally, as reported by Vietnam Finance, Vietnam Airlines successfully restored its
entire domestic flight network and resumed most international routes, with new routes
added in the first nine months of 2024. These developments contributed to a 17.34%
increase in service revenue compared to the same period in the previous year. Based on
these figures, we estimate that the total revenue for passenger and luggage transport for
the entire year of 2024 will reach approximately 76,792,131,061,999 VND.

3.5.1. Projected Revenue

From these estimates, we have calculated the projected revenue and profit forecasts as
follows:
 Revenue for the year 2023: 65,444,120,557,354 VND
 Expected Revenue for the year 2024: 76,792,131,061,999 VND (17.34%
increase)
 Expected Growth Rate for 2025: 5%
Thus, the expected revenue for 2025 can be calculated as:
24
Expected Revenue for 2025=76,792,131,061,999×(1+0.05)=80,631,737,615,099

3.5.2. Projected Profit

The profit forecast is calculated based on the following:

 Estimated Operating Costs: 65,000,000,000,000 VND

 Expected Revenue: 80,631,737,615,099 VND
 Marketing Expenses: 6,500,000,000,000 VND

The projected profit is determined by subtracting the estimated marketing expenses and
operating costs from the expected revenue:

Projected Profit = Expected Revenue − Marketing Expenses − Operating Costs

= 80,631,737,615,099 − 6,500,000,000,000− 65,000,000,000,000
= 9,131,737,615,099 VND

3.5.3. Expense Forecast

The allocated budget for this marketing campaign is included within the overall
6,500,000,000,000 VND in projected marketing expenses for 2025

No. Name Quantity Budget

For operation Vietnam Airlines

Operating cost 65.000.000.000.000 VND

(VND)

For marketing campaign

1 Newspaper Ads For 12 months 20.000.000.000

2 Television Ads For 12 months 20.000.000.000

2 Competition 50 10.000.000.000

3 POP displays 630 300.000.000.000

4 OOH 1000 1.200.000.000.000

5 Influencers 1000 500.000.000.000

6 Vouchers 20.000 500.000.000.000

7 Facebook Ads For 12 months 800.000.000.000

25
 No. Name Quantity Budget

8 Threads Ads 300.000.000.000

9 Google Ads 1.000.000.000.000

10 Youtube Ads 850.000.000.000

11 Tik Tok Ads 500.000.000.000

12 Instagram Ads 300.000.000.000

1500
13 Banners 150.000.000.000

20
14 Sponsors 50.000.000.000

Total Marketing Cost (VND) 6.500.000.000.000

3.6. Implementation Controls

3.6.1. Profit Margin

Profit Margin= ( Expected

Expected Profit
Revenue )∗100=(
80.631.737 .615 .099 )
9.131.737 .615 .099
∗100=11 ,33 %

3.6.2. Marketing Cost-to-Revenue Ratio

Marketing Cost ¿ Revenue Ratio= ( Marketing

Expected Revenue )
Expenses
∗100

¿(
80.631 .737 .615 .099 )
6.500 .000 .000 .000
∗100=8.06 %

3.6.3. Return on Marketing Investment (ROMI)

ROMI =( Net Profit ¿ Marketing¿¿ Marketing Expenses )∗100= ( 6.500 .000 .000 .000 )
9.131.737 .615 .099
∗100=140 , 5 %

26
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