strategic questions for daewoo bus (3)

STRATEGIC DIRECTIONS FOR DAEWOO BUS IN VIETNAM

How aboutMarket Potential

How do we want to positioning

How can Daewoo Bus Increase market-share

• Which market are potential for Bus industry in Vietnam?• Which Bus types are driving in this market? (capacity, function, product trend…)• Which channel will be develop in Vietnam (Public bus, tourism, staff bus….) • What is our strategic direction? (market-share driving or brand-driving?)• Which USPs are we better than these competitors?• Where Daewoo Bus prefer to brand positioning?

• Who is our main competitors ? (Truong Hai, Huyndai or others?) • How to allocate resources effectively (trade-term, product-mix…)• How differentiated actions should be offered by account segments?

Key Questions

Initiatives1

2

3

Strategic Question

Prepared by: Nguyen Duc Minh

No Province Total Car Car Bus Truck

1 Bà Rịa-Vũng Tàu 27,719 15,035 1,800 9,9312 Bình Dương 55,142 28,427 2,248 22,1773 Cần Thơ 16,809 7,725 1,263 7,3184 Đà Nẵng 33,333 16,374 2,303 12,6245 Đồng Nai 65,832 26,741 4,227 32,7036 Hà Nội 343,982 234,586 18,234 84,4187 Hải Dương 27,590 10,375 1,811 14,6938 Hải Phòng 55,437 23,427 2,735 21,5209 Khánh Hòa 21,530 9,092 1,693 10,02210 Nam Định 13,011 4,774 1,422 6,61911 Nghệ An 45,269 22,310 1,666 20,17112 Quảng Ninh 41,287 18,247 2,557 19,54113 Thanh Hóa 32,078 12,572 2,036 16,96914 TP. Hồ Chí Minh 318,551 164,752 24,584 109,01915 Other Provinces 572,639 216,989 38,395 300,218

TOTAL 1,670,209 811,426 106,974 687,943

Total Market Size upto 01/2014

Industry & Market Analysis

Total Market size of Bus in HN & HCMC cover 28% of total market size nationwide

Market Demand of Bus is growing fast in big cities such as Dong Nai, Hai Phong, Binh Duong, Thanh Hoa

Implication


No Content Total 2013

1 Dosmestic Automobile 1 Total of Domestic Automobile 128,090 1.1 - Civil Cars 65,800 1.2 - Buses 5,780 1.2.1 + Bus < 15 seats 10

1.2.2 + Bus from 16 seats upto 25 seats 2,450

1.2.3 + Bus from 26 seats upto 46 seats 2,790

1.2.4 + Bus > 46 seats 530

1.3 - Trucks 48,100 1.4 - Semi-Lorry 1,550 1.5 - Other Type 6,860 2 Imported Automobile - 2.1 Total of Imported Cars 39,040 - By Brand-new Cars 30,540

- By Second-hand Cars 8,500

2.1.1 - Civil Car 16,760 2.1.2 - Bus 650 + Bus < 15 seats 30

+ Bus from 16 seats upto 25 seats 450

+ Bus from 26 seats upto 46 seats 70

+ Bus > 46 seats 110

2.1.3 - Trucks 12,600 2.1.4 - Other Type 8,950


Implication The Imported Automobile has just cover 11% compared to 89% of domestic assembly line automobile

The Demand for Buses still focus on from 16 seats upto 46 seats (nearly 90% of total)

The portion of second-hand imported automobile will reach nearly 9K cars per year



46.0%

44.0%

10.0%

<25 seats 25-46 seats > 46 seats

Bus Market Portion by Capacity52.0%

32.0%13.0%3.0%

Tourism Bus Inter City Bus City BusCommute Bus

Bus Market Portion by Type

14.0%

81.0%

5.0%

Bed Coach Seat CoachStand Coach

Market Portion by Seat Type Implication The Market Demand for < 46 seats cover 90% of total, in the meantime, the Demand for Bus > 46 seats has reached 10% of total demand

Seat Type is still occupy over 80% of total

Tourism Bus now develop and cover the main demand for Bus market demand


Competitors Analysis

Product

Price

Place

Promotion

fdfsafsdfs fdfsafsdfs Strong line-up in tourism bus

fdfsafsdfs Competitive price policy in projects

fdfsafsdfs

fdfsafsdfs fdfsafsdfs Focus on tourism bus & inter-city bus

Famous brand Image with KIA brand

fdfsafsdfs Famous Brand Image Good Quality Service


Customer Analysis

Inter City Bus Tourism Bus City Bus

Cheap Price Oriented

THE IMPORTANCE FACTORS

Energy Saving

Brake System

Audio/Video System

Seat Angle

Bed Type Demand

Shock Absorbers


S W

O T

Famous Korean Brand in Vietnam

Factory located in Vietnam

Strong brand in City Bus (Hanoi)

Good quality product line-up

The model line-up is not various compared to

competitors

The design is not attractive

Inflexible policy for projects

The project sales manpower is not strong

Lack of USP Sales materials

Public transportation now developing in the big

cities such as Hanoi, HCM, Da nang, Hai Phong…

Vietnam is considered as the tourism destination,

therefore, the demand for tourism bus will be booming

up in the near future

Economy is still facing the difficulty so the

transportation enterprises still considers about finance

issues and investment

The overwhelming of local bus enterprises such as

Thaco, Truong Hai…

Company Analysis

Utilize the strong brand awareness into the current & potential partner Focus on the tourism bus business Cultivate the market into the potential cities

Need more TDR activities to re-design & develop the products line-up Focus on training about sales & marketing Market-oriented policy


Enabling partners to createSustainable value with market-oriented

solutions

• Energy Savings & Functional products

• Consultative Sales• Manpower Strenghthening

• Solution Development• Customer Communication• Partner Relationship

Management

Energy Savings Products

Market-orientedSolutions

SynergisticPartnerships

CoreCapabilities

KeyEnablers

VisionStatement

Strategic Vision


Strategic Direction

Key Factor for Success Flag-ship model to

communicate Volume model availability Develop line up with 02 floor-bus

Strategic Direction

Product

Price

Place

Promotion

People

Price competitiveness for entry model Flexible Price Policy Potential Customer Database Relationship with key accounts

More communication with key accounts Premium VIP Package

Sales & MKTG Manpower training Project relationship manpower

• Build up the unique-sales-point (USP) presentation materials (consultative sales)• Recruit the experienced manpower with strong project relationship

• Build up the database of potential projects• Strengthen relationship with key accounts through Key Account Management (KAM ) programs

• A flagship model with full options & energy savings • Develop with each segment with 01 volume model with price competitiveness s• Balance price with key competitors by key model• Price policy for potential & volume projects

• Dealer Convention & factory tour to introduce new products line-up• Develop a premium VIP care program• Showroom Renovation for Hanoi & HCMC


To be CONTINUED…

strategic questions for daewoo bus (3)

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