marketing of vietnam airlines

7/23/2019 Marketing of Vietnam Airlines

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1. Product Strategy

Product is the most crucial element, if not want to say it is the first and foremost “P”

that VNA must care about setting up its mareting strategy because other Ps has to fit

the Product. Air ser!ice is a special industry that produces both products and ser!ices.

"hen people buy a ticet to any place in the world #a product, they also purchase

other ser!ices that accompanied with that ticet. $n the conte%t of fierce competition

from other nations VNA has to offer right products which are typical and best satisfy

its customers.

$n general, the ma&or product of VNA is passenger. 'he core products inclue fight

routes, a!aible seats, etc. 'he secondary products include ground ser!ice and in(flight

ser!ice in which the ground ser!ice is ticets re!er!ations, chec(in, etc and in(flight

is the pro!ision of be!erage, meals and entertainment facilities, children(tra!el(alone

care during the flight. VNA has been upgrading and di!ersifying the ser!ices such as

pro!iding traditional food which is highly appreciated by foreigners. VNA is building

a standardi)ed ser!ice system to impro!e the ser!ice *uality from booing to

pro!iding special meal on demand.

Before the flight:

Booking: VNA has been &oining the global booing system +abriel $$ since

11. $n No!ember, -/ VNA will launch its new ser!ice of issuing e(ticets

for the air route from 0anoi to 02 ity. 'hat means passengers only need to

pro!ide their $3s or passports to chec in after they mae electronic booings

with the airlines. redit card holders can mae the payment for their air ticets

through the $nternet. 'hen they will recei!e an email which confirms the

booing and payment aswell as includes necessary information about the

flight. 'he accuracy, promptness and con!enience of booing system will

always mae the passengers in domestic and foreign nations as well satisfy.

Booking office

• 4uses5 VNA has the buses to tae the customers directly from the enter to

the Airport



• ontrol and automatic chec(in system5 'his system has been installed in

almost all airports in Vietnam. 'his will sa!e much time for passengers and

ensure security re*uirements.

In-flight

$n recent years, VNA incessantly impro!e its ser!ice *uality to meet the higher andhigher passengers6 demand. Passengers are well ser!ed by all the Stewards.

• Stewards

Stewards play a ey role remainging regular customers and attracting potential

customers. VNA female flight for business class wear yellow ao dai, whereas their

colleagues for economy class wear the blue one. And male attendants wear white

shirts with a lotus motif. 'hey spea Vietnamese, 7nglish, and at least one other Asian

language, depending on the flight. A traditional of hospitality and professional among

VNA airport staff, particulary VNA flight attendants, has continued to mae a stellar

impression on !alued customers. Along with time, e!erything change, but only thetradition of hospitality will remain the same( a constant trademar of VNA, and the

guideline to all VNA business interactions

Vietnam Airline Airhostesses

• 7ntertainment5

VNA pro!ides passengers with newspaper, maga)ines which are a!aible in 7nglish

and Vietnamese on all flights. 0eritage and 0eritage 8ashion are the airlines6 two in(

flight maga)ines, and are issued monthly. 'hese two publications present the latest

information on national culture, tourism, society, and entertainment. 2oreo!er on

long(haul flights in the 4oeing 999 and the 4oeing 9/9, all seats are e*uipped with in(

flight entertainment. 'he 4oeing 999 is e*uipped with Audio: Video on 3emand

;AV<3=. AV<3 allows passengers to select from a wide range of multilingual

entertainment options, including feature films, music, news and games. 'he 4oeing



9/9 is also e*uipped with an o!erhead 'V with >(/ film channels, and music

channels according to a fi%ed calendar.

• 2eal5

8ood *uality has impro!in clearly from time to time. VNA ser!es meals and be!eages

on board its international and domestic flights. Passengers with special dietary

re*uirements should re*uest special meals when booing the flight, or at least -?

hours before departure.

Vietnam Airline @s 2eal

• Seat5 'he passenger @s seat number is shown on their boarding card. VNA pro!ides

three classes of tra!el5 4ussiness lass ;=, (3elu%e;$=, and 7conomy lass ;=.

Seats are numbered from the front to the bac of the aircraft. 'he passenger6s preferred seat can be reser!ed at the chec(in counter when a!aible.

-. Price Strategy

3ifferent pricing strategies are suggested to suit the maret positioning for different

segments.

"ith respect the company @s current competences, “good !alue” pricing strategy

deems to be appropriate for the targeted “ international leisure and economy”

segment. 'he rationable behind this strategy is that the pleasure tra!elers are often

price conscious and stronger airlines such as 'hai Airways, Borean AirC. 0a!e used

price as form of competition.

8or the 3omestic Deisure and 7conomy segment, an “economy” pricing stragety issuggesested to capture the huge potential of the domestic transport maret. 4y



focusing on the minimum re*uired ser!ices and deploying technology such as online

booing, e(ticeting, the airline can lower operating costs and then reduce prices to

mae air tra!el more affordable. 'his also hepls VNA to fulfill its obligation as an

frastructure ser!ice. 'he current duopoly system will pre!ent the airline from any

price war.

3espite being a secondary target, business segments ;domestic and international= are

often big spender and not price(conscious as their tra!els are reimbursed by their

companies. 'hus medium price, together with medium *uality as dicussed in ser!ice

product tacties, will offer the basis “medium !alue” pricing strategy. 2any world

class carriers such as athay Pacific, Singapore Airlines, Air 8rance, etc which is

widely nown for differentiation ad!antage, howe!er pursue a focused differentiation

strategy in their “Vietnam niche” by offerig limites differentiated ser!ice on routes

from or to Vietnam. A ey ad!antage of VNA !ersus its competitors on the

international segment is the lin with domestic networ.

urrently VNA follows its competitors6 pricing practice of !aryig prices on

international routes according to seasonality. 0owe!er, one(tier pricing strategy isused in the domestic maret regardless of seasons, time of tra!elC $t is suggested that

VNA introduces pricing fle%ibility in the domestic maret in order to better manage

demand and supply an optimi)e the total yield. Dow price may be offered in periods

or times of low demand to encourage passengers to tra!el, while higher margin can be

carned during pea season. Ender the fle%ible pricing system, the airline needs to

de!elop appropriate restrictions such as ad!anced booing,re(scheduling,and

e%tended stayC this would help to discourage the business tra!elers to tra!el on

cheaply fares so that the airline can ensure that as much capacity as possible is used

by the most profitable segments. 'he company can communicate fare information !ia

its website. 2areting di!ision needs to wor with <perations di!ision to introduceyield managament which is to obtain the best possible yeild o!er tiem from each

a!ailable unit of capacity and return from some perishable capacity units.

8urthermore, holiday pacages that VNA de!elops in cooperation with partners can

use a bundling pricing strategy to promote both VNA ser!ices and Vietnam tourism.

marketing of vietnam airlines

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