segmentation

Geographic Segmentation
Characteristics: Divides the market based on geographic location, such as

country, region, city, or rural areas.

●​ Examples:

Major Cities: Companies like Toyota, Honda, and VinFast may focus on

compact, fuel-efficient vehicle models for major urban areas like Hanoi and

Ho Chi Minh City, which have high traffic density.

Rural Areas: Companies might offer SUV or pickup models, such as the Ford

Ranger, which cater to the need for transportation on rugged terrain and

goods transportation.

​Toyota:

Strategy: In major cities like Hanoi and Ho Chi Minh City, Toyota focuses on

compact models such as the Toyota Vios and Toyota Yaris, which are

suitable for urban commuting. Conversely, in rural areas, they offer SUV

models like the Toyota Fortuner, which are more appropriate for the

terrain and the need for transporting goods.

​Ford:
Strategy: The Ford Ranger is heavily promoted in rural and mountainous

areas, where the demand for pickup trucks is higher due to the need for

goods transportation and navigating rugged terrain.

Demographic Segmentation
Characteristics: Divides the market based on demographic factors such as

age, gender, income, occupation, and family status.

●​ Examples:

Age: Sports car models like the Mazda MX-5 might target young consumers

aged 20-35, whereas family vehicles like the Toyota Innova focus on families

with young children.

Income: Brands like Mercedes-Benz and BMW target high-income customers,

while brands like Kia and Hyundai cater to middle-income consumers.

​VinFast:

Strategy: VinFast has developed models such as the VinFast Fadil aimed at

young, middle-income customers, while the VinFast Lux A2.0 is designed for

higher-income customers, targeting families and business professionals.

​Honda:

Strategy: The Honda CR-V is marketed towards young families, while the

Honda Civic targets young adults and professionals looking for a sporty and

modern vehicle.

Psychographic Segmentation
Characteristics: Divides the market based on consumers' lifestyles, values,

preferences, and attitudes.

●​ Examples:

-​ Lifestyle: Companies like Tesla aim at consumers who care about the

environment and technology, while brands like Jeep target adventure

enthusiasts and outdoor activity lovers.

 -​ Values: Brands like Volvo may emphasize safety and family protection,

while brands like Ferrari highlight luxury and performance.

​Tesla:

-​ Strategy: Tesla targets environmentally and technology-conscious

consumers seeking sustainable transportation solutions. They focus on

promoting electric vehicles' advanced technological features and

energy-saving capabilities.

​Jeep:

Strategy: Jeep targets individuals who enjoy exploration and outdoor

activities. They emphasize off-road capabilities and a lifestyle of freedom,

appealing to those who enjoy travel and adventure.

Behavioral Segmentation
Characteristics: Divides the market based on consumer behavior, such as

usage frequency, brand loyalty, and product responses.

●​ Examples:

-​ Usage Frequency: Companies may segment customers into those who

use vehicles daily (like taxis or ride-sharing) and those who use them

for weekend trips.

-​ Brand Loyalty: Companies like Toyota might target loyal customers by

offering loyalty programs or discounts for repeat customers.

​Mercedes-Benz:

Strategy: Mercedes-Benz targets brand-loyal customers by offering loyalty

programs, special discounts for previous car buyers, and exclusive events for

VIP customers.

​Hyundai:

Strategy: Hyundai segments customers based on usage frequency, providing

models like the Hyundai Accent for those who use cars daily and the Hyundai

Santa Fe for families needing spacious vehicles for weekend trips.

1. Differences in Market Segmentation Between
Men and Women
●​ Men: prefer products that emphasize performance, durability, and advanced
technology. For example, in the automotive sector, they may prioritize
horsepower, fuel efficiency, and innovative features like advanced
driver-assistance systems. They seek convenience and efficiency in product
usage.
➔​ Buying Behavior: Men are generally more decisive in their purchasing
decisions and may conduct extensive research before buying. They
often rely on expert reviews and technical specifications.

●​ Women: tend to focus on aesthetics, brand reputation, and an emotional

connection to products. In the automotive sector, they may prioritize safety
features, interior design, and overall comfort.
➔​ Buying Behavior: Women often take a more collaborative approach to
purchasing decisions, seeking input from family and friends. They may
also be more influenced by advertising that emphasizes lifestyle and
emotional appeal.

2. Income Ranges of Vietnamese People

●​ Group A: High income (over 20 million VND/month): This group typically

includes executives, business owners, and professionals in high-demand
fields.
➔​ Spending Habits: They are likely to invest in luxury goods, high-end
services, and premium brands
●​ Group B: Upper-middle income (10-20 million VND/month): This group
includes mid-level managers, skilled professionals, and entrepreneurs.
➔​ Spending Habits: They tend to spend on quality products, travel, and
experiences, often seeking a balance between quality and price.
●​ Group C: Middle-income (5-10 million VND/month): This group includes
teachers, healthcare workers, and other professionals.
➔​ Spending Habits: They are more price-sensitive and often look for
value-for-money products, focusing on essential goods and services.
●​ Group D: Low income (under 5 million VND/month): This group includes
laborers and those in low-paying jobs.
➔​ Spending Habits: They prioritize basic needs and essential goods,
often limiting discretionary spending.
3. Consumer Characteristics of Each Group
●​ Age:
​18 - 35:
-Lifestyle: Tech-savvy, adventurous, and open to trying new products. They often
follow trends and are influenced by social media.
-Consumer Behavior: They are likely to shop online and are attracted to brands that
resonate with their values, such as sustainability and innovation.
​ 35 < 55:
-Lifestyle: Family-oriented, career-focused, and value-driven. They often seek
products that enhance their quality of life and that of their families.
-Consumer Behavior: They tend to research products thoroughly and are influenced
by brand reputation and quality.
​55 < 65:
-Lifestyle: More traditional, often valuing stability and reliability. They may be less
inclined to change brands or products frequently.
-Consumer Behavior: They prefer products that are easy to use and have proven
benefits, often relying on recommendations from trusted sources.
​65 and above:
-Lifestyle: Focused on health, safety, and comfort. They may prioritize products that
enhance their well-being and simplify their lives.
-Consumer Behavior: They often prefer in-person shopping experiences and may
require more assistance in understanding new technologies.

●​ Gender:

Men: More likely to engage in competitive shopping and may be less

influenced by emotional advertising.

Women: More likely to respond to emotional storytelling and brand loyalty,

often seeking products that reflect their identity and values.

●​ Lifestyle:
-Younger Consumers: Often prioritize experiences over material goods,
seeking brands that align with their lifestyle choices.
-Older Consumers: May prioritize practicality and reliability, often sticking to
brands they trust.
 ●​ Consumer Behavior:
-Younger Groups: Tend to shop based on trends, social media influence, and
peer recommendations. They may be more impulsive in their purchases.
-Older Groups: Typically make more calculated purchasing decisions,
focusing on necessity and long-term value.

4. Chosen Car Brand and Target Marketing

-​ Focus: Providing high-quality electric vehicles that are

environmentally friendly, targeting young and modern
customers.
-​ Target Marketing: Emphasizes building a strong
brand, highlighting advanced technology and
sustainability, while creating attractive promotional
programs to draw in customers.
➔​ VinFast employs a multi-faceted targeting strategy that
includes demographic, geographic, psychographic, and
behavioral segmentation.
A.​ Geographic Segmentation
-​ Domestic Market: VinFast focuses on major cities such as Hanoi, Ho Chi Minh
City, and Da Nang, where there is a high population density and significant
demand for vehicles. They also pay attention to developing areas with growth
potential in vehicle demand.
-​ International Market: VinFast has expanded into international markets,
particularly in countries like the United States, Canada, and some European
nations. They participate in international auto shows to showcase their
products and seek partnership opportunities.
B.​ Demographic Segmentation
-​ Younger Consumers: The VinFast Fadil is a compact, affordable model aimed
at younger consumers, students, or young professionals who need a
convenient means of transportation in urban areas
-​ Families: Models like the VinFast Lux and VinFast President are designed
with spacious interiors and high safety features, making them suitable for
families with children or those needing to transport multiple passengers.
-​ Premium Customers: The VinFast Lux A2.0 and President target high-income
customers looking for luxury and prestige in their vehicles
C.​ Psychographic Segmentation
-​ Environmentally Conscious Customers: With options like the VinFast VF e34,
the company appeals to environmentally conscious consumers who wish to
reduce their carbon footprint through electric vehicles.
-​ Tech-Savvy Consumers: By incorporating advanced technology into their
vehicles, including smart entertainment systems and automation features,
VinFast attracts tech-savvy customers interested in innovation and
connectivity
D.​ Behavioral Segmentation
-​ Usage Frequency: VinFast designs models for varied uses; for instance, the
VinFast Fadil is suited for daily urban commuting, while SUVs are available
for family outings and longer trips
-​ Purchase Motivation: The brand targets customers prioritizing convenience,
safety, and fuel efficiency, while also appealing to those seeking modern
features and appealing designs in their vehicles