TRƯỜNG ðẠI HỌC MỞ TP.HCM

UNIVERSITÉ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY

SOLVAY BRUSSELS SCHOOL

MBMM4

VUONG BAO AN

MARKETING PLAN FOR MICHELIN TYRE
IN TRUCK & CONTAINER SEGMENT
IN SOUTHERN VIET NAM
IN 2011 – 2013

MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s name: Dr. Nguyen Van Son

Ho Chi Minh City
(2010)


ACKNOWLEDGEMENT OF COMMITMENT
I, Vuong Bao An, have prepared and conducted this “ Marketing Plan for
Michelin tyres in Truck & Container segment in Southern Vietnam in 2011 – 2013” as
the final project of MBMM4 program.

I trust the legality of all references, information sources, and materials using to
complete the project. And I confident to submit it to Professors and MBMM Faculty
members.


ACKNOWLEDGEMENT OF APPRECIATION
I wish to express my deep gratitude to my tutor Dr. Nguyen Van Son for his
useful guidance, suggestions and encouragement through out the project.
I also would like to express my sincere appreciation to Mr. Hoang Trong Hai –
Marketing Manger of Michelin Vietnam, for his sharing information, opinion and market
insights to create an useful and applicable marketing plan for Michelin Vietnam.
I also grateful to all my colleagues in Michelin company for the great support and
sharing to my research activities.
I also would like to present my grateful heart to all professors, lecturers and
tutors from Open University of Ho Chi Minh City and the Solvay Brussels School, also
the genuine thanks to Ms. Thuy and Mr. Serge for all your kind support during the
whole course.
And the most wholehearted gratitude I wish to express to my parents for their
endless love, cares, encouragement and supporting to me during the course of my study.


ABBREVIATIONS
OEM

: Original Equipment Manufacturer.

CPK

: Cost Per Kilometre.


DRC

: Danang Rubber Company.

SRC

: Sao Vang Rubber Company.

PC

: Passenger Car.

TB

: Truck & Bus.

R& D

: Research and Development.

MVP

: Marketing Value Proposal.

ISO

: International Organization of Standardization.


TABLE OF CONTENTS

Page
1. Executive Summary …………………………………………………………………. 1
2. Situation Analysis
2.1. Introduction
a) Purpose of study………………………………………………… 2
b) Scope of study…………………………………………………… 2
c) Methodology & source of information………………………….. 2
2.2. External analysis :
a) Market analysis ………………………………………………… 3
b) Customer analysis …………………………………………….... 5
c) Competitors analysis …………………………………………… 7
d) Environments analysis …………………………………………. 7
2.3. Internal analysis :
a) Company introduction ………………………………………… 8
b) Strategy ……………………………………………………….. 9
c) Products ………………………………………………………. 10
d) Resources ……………………………………………………
10
e) KSFs …………………………………………………………. 11
2.4. SWOT Analysis ……..……………………………………………………… 12
3. Marketing Strategy
3.1. Vision ……………………………………………………………….. 16
3.2 Value Customer …………………………………………………….. 16
3.3 Value Proposition …………………………………………………… 18
3.4 Value Network ……………………………………………………… 19
4. Marketing Action Plan
4.1 Product Offer ……………………………………………………….
20
4.2.Pricing ………………………………………………………………
21

4.3 Promotion …………………………………………………………..
21
4.4 Distribution …………………………………………………………
22
4.4.Service ……………………………………………………………… 24
4.5 Implementation Schedule ………………………………………….
25
5. Forecast & Control
5.1 Sales Forecast ………………………………………………………
26
5.2 Expense Forecast …………………………………………………..
26
5.3 Controls …………………………………………………………….
27
CONCLUSION ………………………………………………………………… 28
REFERENCE …………………………………………………………………… 29
APPENDIX ……………………………………………………………………… 30


1

CHAPTER 1 : EXECUTIVE SUMMARY
Vietnam tyre market in general or truck and bus tyre market in particular is not only a
merging market but also very competitive for the new technology tyre. It’s so easy to
find many tyre brands when coming to any tyre shop such as : Michelin, Goodyear,
Bridgestone, Kumho, Hankook ….for the famous foreign tyre manufacturer, DRC, SRC,
Casumina …for the local brands and more than 20 Chinese tyre brands playing in the
market. With the enormous potentiality of market growth, Michelin has a great ambition
to become a leader in Vietnam tyre market. This project is contributed to above longterm vision by create a 03 years marketing plan for truck & bus tyre segment in the
Southern of Vietnam where is the key market of all players to compete. The objectives

of this marketing plan is create customer’s brand awareness in this potential segment,
and following with the result of 5% market share of Michelin tyre in the first year and
forecast 20% growth rate for Michelin brand. Furthermore, this plan is also expected to
all Michelin Vietnam staffs realize and focus to develop the company goal in order to
create a team power, a passion which helps company easily overcome any trouble on its
way to grow up.
Details for this project as below :
- Overall of truck and bus tyre market in Vietnam – and in the South.
- Michelin company introduction and vision.
- Marketing strategy for this plan.
- Marketing implementation and sales & expense forecast.
- Control items.


2

CHAPTER 2 : SITUATION ANALYSIS
2.1 INTRODUCTION
A. Purpose of study :
Michelin Vietnam has two main business divisions : Passenger Car tyre and Truck – Bus
tyre. In the truck – bus segment, Michelin gets a rapid growth from 2005 to now with the
sales increasing more 200% in 2008. At the first business stage, Michelin put the priority
to approach on kind of coach & bus vehicles which require the safe and comfort feeling
from the passengers. Mileage is also Michelin’s competitive advantage in this segment
and makes the big difference from other competitors. As the result, Michelin becomes
leader in this category for the radial tyre in Vietnam market. The remaining category is
also a very potential one and is the target for this project. This study’s purpose is aimed
to help Michelin to become a leader in this category as well.
B. Scope of study :
This marketing plan is applied to the Southern market of Vietnam where can cover 80%

of target customers and make highest profit.
C. Methodology & Source of information :
i. Desk research ( Secondary data ) :
- With the references to internal data from Michelin Vietnam on its history, products,
human resource, ..etc..
- The research also use the data from other sources like customs department, economic
newspaper, customer database from yellowpages,…etc..
ii. Market research ( Primary data ) :
- Quantitative survey was conducted by in-depth interview method with 100 users who
are the big transport companies in logistic industry in the South. The objective of this
survey is to collect information of users in terms of buying attitude, usage condition and
customer expectation on tyre performance.


3

2.2 EXTERNAL ANALYSIS :
A. Market :
Vietnam Market size 2008

Other
17%

No
1
2
3
4
5
6

7
8
9
10
11

DRC
23%

MRF
2%
Maxxis
2%
Michelin
2%
Hihero
4%
Siam
4%

SRC
19%

Birla
6%
BS
7%
Casumina
14%


Brand
DRC
SRC
Casumina
Bridgestone
Birla
Siam
Hihero
Michelin
Maxxis
MRF
Other
Total

Quantity
348000
297000
219000
100000
85000
67000
58000
36000
26000
24000
264000
1524000

Truck & Bus Radial tyre market in 2008
Linglong

1%

Other
10%

Double Coin
3%
DRC
4%
Hankook
5%

Bridgestone
42%

Kumho
5%

Casumina
5%

No
1
2
3
4
5
6
7
8

9

Brand
Bridgestone
Michelin
Casumina
Kumho
Hankook
DRC
Double Coin
Linglong
Other
Total

Quantity
60000
36000
8000
8000
8000
6000
4000
2000
14000
146000

Michelin
25%

Michelin tyre business in Vietnam in 2008 is not strong when looking at the whole tyre

market, Michelin contributes to Vietnam truck and bus tyre division is only 2% with the
whole new technology tyre : radial tyre. But in radial tyre market, Michelin is proud of
great market share covered 26% and this division is the future market with rapid growth
every year.


4

Vietnam Market size 2009
MRF
1%

Other
15%

DRC
23%

Maxxis
1%
Michelin
2%
Hihero
4%
Siam
5%

SRC
17%


Birla
6%

BS
8%

No
1
2
3
4
5
6
7
8
9
10
11

Casumina
18%

Brand
DRC
SRC
Casumina
Bridgestone
Birla
Siam
Hihero

Michelin
Maxxis
MRF
Other
Total

Quantity
403098
297942
315468
140208
105156
97182
70104
43500
17526
17526
262890
1770600

Truck & Bus Radial tyre market in 2009
Other
15%

Goodride
Firestone
1%
West1%
lake
2%

Roadshine
2%
Chaoyang
2%
Triangle
2%

Bridgestone
36%

DRC
2%
Casumina
2%
Unglong
2%
GT
3%
Kumho
3%

Hankook
6%
Double Coin
7%

M i chelin
14 %

No

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Brand
Bridgestone
Michelin
Double Coin
Hankook
Kumho
GT
Unglong
Casumina
DRC
Triangle
Chaoyang
Roadshine

Westlake
Firestone
Goodride
Other
Total

Quantity
111857
43500
21750
18643
9321
9010
6214
5901
5800
6800
6295
6214
5191
3800
3107
46607
310011

Year 2009 is a year of rapid growth for radial tyre with more than 200% in total market.
Michelin has also an increase 20% comparing with 2008 but this growth does not catch
up with fast growing of the market. Beside, in this year is noted also the contribution of
many players coming from China offering to the market very competitive price strategy.



5

Truck & Bus vehicle Population

300,000
250,000
200,000
150,000

294,905
251,354
209,437

100,000
147,381

163,463

178,511

148,587

2003

2004

2005

2006


50,000
-

Year
TB Population
% increasing YOY

2004
147,381
-1%

2005
163,463
11%

2006
178,511
9%

2007

2007
209,437
17%

2008

2008
251,354

20%

2009

2009
294,905
17%

Source : Michelin Marketing Dept.
In terms of the growth of new truck and bus vehicle, from 2005 onwards we can see the
stable increase of new vehicle in Vietnam which is very potential factor for radial tyre
market. As the same period of time, we can also expect the fast growth of radial tyre due
to the support of OEM car maker for radial tyre, almost the truck and bus vehicle
registered in 2005 fit with radial tyre in stead of bias tyre.
B. Customers :
There are three types of customer in this Truck & Bus tyre segment :
+ Coach vehicle which mainly carry passenger to province or tourist companies :
This customer require the safety tyre with comfortable feeling bringing to their
passenger as well as the long mileage.
+ Truck and container haulage vehicle carrying goods in logistic company :
The highest concern feature of this customer in terms of tyre offering is the capacity of
carrying the load as much as possible. Almost these vehicles are overload from two or
three times more.
+ Construction truck or heavy truck : The required tyre for this vehicle need to
cover the harsh road condition with careless usage of driver.


6

According to the quantitative survey conducted by Michelin internal resource : sales

department in Oct 2010 for 100 big transport companies in logistic industry in the
Southern Vietnam, these users are typical customers in term of business status, vehicle
volume, and potential growth chosen in each zone of four Michelin sales men, it’s come
out with some key factors of the attitudes and usage application as following :

Tyre fitment
by own
technician
41%

Buying
follow
dealer’s
advice
51%
Michelin
brand
is good and
high price
57%

Buy from
authorized
Dealers
45%

The buying
attitudes
of
end-users


Tyre caring
by
professional
people
71%

Standard
speed
running
73%

1 or 2 months
of credit
87%

Tyre
maintenance
frequently
32%

Regional road
condition
41%

The tyre
usage
of enduser

Tyre

retreading
activities
18%

Standard load
carrying
81%

Source : Michelin customer survey 2010
With the survey result above, they are some interesting factors found which will be the
core points to approach to end-user such as :
- Usage condition : almost customers in this segment are running on the standard road
condition which is a positive factor influencing to tyre performance.
- Tyre service activities : customers are aware of the importance of this activities to
make a tyre life longer.
- Customer’s expectation on tyre : they require the complete tyre service and rely on the
service quality of authorized dealer offering.


7

C. Competitors :
There are more than 20 tyre brands in Vietnam Truck & Bus tyre market and this
market currently is of bias tyre which covered more than 58% market share (in 2009) by
local manufacturers such as : Casumina, DRC, SRC, and Chinese brands.
In the radial tyre market which is the main market for all foreign tyre makers like :
Michelin, Bridgestone, Goodyear, Kumho, Hankook, and Chinese brands. There are
three levels in terms of quality and user price is set as follows :
+ Premium quality tyre : Bridgestone and Michelin
+ Economic & acceptable quality tyre : Kumho, Hankook, Goodyear and some

Chinese tyre : Double Coin, Chao Yang, West Lake,…
+ Low quality tyre with cheap price : almost is Chinese brands.
In the competition of premium tyre quality in Vietnam, Bridgestone takes the big
advantage of OEM ( Original Equipment Manufacturer ) tyre support in Asia from
Huyndai, Hino and many Japanese truck makers. Moreover, with the earlier presence in
Vietnam market, they own a strong brand’s perception of customers.
In terms of business strategy between two strong brands : Michelin and Bridgestone,
they are quite difference on approach where Michelin focus almost on the replacement
market and pull marketing strategy. For Bridgestone, they concentrate to OEM market
and push marketing strategy which is more suitable for Asian culture and business way.
D. Environments :
+ Political environment : the regulation of transport department for tyre is need to
meet the ISO standard for quality as well as must match with OEM tyre size
recommendation.
+ Geographic environment : It takes a big advantage for Vietnam where is long
shape country with over 2,000 km national way from Ho Chi Minh to Ha Noi, and the
government strategy is focus to support more on transportation of the country by a lot of
highway projects such as : Lang - Hoa Lac in the North and HCM – Trung Luong in the
Mekong area.


8

+ Social environment : Vietnam is also the country for tourist activities with
many beautiful sea places as : Ha Long bay, Nha Trang, Da nang,….along with national
road as well as 86 millions population that people traveling mainly by vehicles is the big
potential for transporting.
2.3 INTERNAL ANALYSIS :
A. Company :
Michelin started the business in Vietnam as the representative office in 2000 with two

main divisions : Passenger Car Tyre and Truck & Bus Tyre.. Since Michelin divided
Vietnam market into two main regions : Southern Vietnam ( from Da Nang city to the
South ), Northern Vietnam ( from Hue city to the North ) and established 03 authorized
distributors for supplying PC & TB Michelin tyres to Vietnam market. The key task of
this office is to support three distributors on marketing activities and create good image
of Michelin tyre in customer’s mind. Starting approach Radial tyre to end-user from 2005,
Michelin had a rapid growth in sales from the year 2006 onwards with the figure below :
Michelin sales :
35,000
28,794

30,000
23,779

25,000

21,175

20,000
14,477

15,000

-

14,732

12,543

7,520


10,000
5,000

12,560

4,991
1,534
2006

2007

2008

2009

2010

South

4,991

14,477

23,779

28,794

21,175


North

1,534

7,520

12,560

14,732

12,543

(2010 Sales : from Jan to Oct)
Source : Michelin Sales Dept.
With the rapid growth of tyre market as well as the government’s permit to allow the
100% invested foreign company to become a trading company, in November 2009,
Michelin Vietnam trading company is established with the ambition to be leader in
Vietnam tyre market. This action is considered as the pioneer among foreign tyre
makers presenting in Vietnam at that time and receive the great support from all local


9

tyre dealers. Following that is the action from Goodyear and Bridgestone brands in
middle of 2010.
Michelin Vietnam organization has almost complete functional departments such as :
Sales, Marketing, Finance, Customer Support, Admin & HR, Logistic,.. as the
organization chart in Figure :
General Director


Sales Dept

HR Dept

Marketing Dept

Finance Dept

Passenger tyre

Distribution

Truck & Bus tyre

Communication

GC tyre

Product

2W tyre

Pricing

Logistic Dept

Source : Michelin HR dept.
B. Strategy :
Michelin Vietnam align and develop with the strategic orientation of Corporate Group :
- Focus our passion to improve mobility. Grow as the most innovative company for tires,

suspension systems and related services.
- Offer our customers the best quality products and services at the best price in each
market we decide to serve.
- Provide growth and fulfilment for our people as they carry out their responsibilities,
especially by making full use of the Company’s diversity and by developing our
people’s talents.
- Durably grow the value of our Company by maximizing the profitability of our
operations and our return on investment.
- Recognize and fulfil our Company’s role as a responsible member of society, by
practicing our values.


10

C. Product :
Michelin product strategy is to be a leader of product innovation :
+ 4,000 people working in R&D with 4.5% of World Turnover for Brand invested
in Innovation.
+ Since 1952 launched the major innovation in Truck tyres : Radial technology,
Low profile tyres, Energy range,
+ Since 2007 : launched of MICHELIN Durable Technologies.
Michelin Vietnam offers product to end-users base on the usage segmentation to cover
and satisfy all kinds of customer in the market as the below chart :

D. Resources :
In tyre markets all over the world, Michelin teams are fully focusing on strengthening
the leadership over the long term by providing lasting solutions to the challenges of
mobility. By delivering superior performance at the lowest possible cost, managing
environmental footprint, enhancing safety,


Michelin is combining performance and

responsibility to emerge from the crisis stronger than ever.
Coherently, Michelin Vietnam has built very strong teams in general and sales team to
approach the market in particular. With the concept of Full Marketing Approach, sales
people in Michelin Vietnam with the well-trained and experienced on tyre market is
deploying the Michelin Selling Way which called : End-user Approach effectively and
control the distribution channel as model follows :


11

Michelin Vietnam

Retailers

OEMs

End-users

Wholesalers

Sub-dealers

The core success factor in Michelin is product, Michelin Vietnam regularly receives the
support from Central in Asia in terms of Marketing, Product activities by giving on field
training by experts to sales team, dealers’ people, and product launch or product
innovative event in overseas.
E. Key Success Factor :
+ Innovative Product more than 100 years :

- in 1952 launch Radial technology in Truck tyres, low profile tyres and energy
range.
- in 2007 launch of Michelin Durable Technologies
- Leader in fuel saving thanks to Michelin Energy tyres : 2.3 litres fuel / 100km
and reduce 6.12 kg CO2/100km ( obtained during the Challenge competition)
- Leader in casing engineered for life
- Leader in environmental protection : Regrooving and Retreading : 5.3%
reduction in CO2.
- Leader in multi-life for substantial savings : Michelin casings are conceived
with durability which provides client the lowest cost per kilometre and significant
reduction of tyre budget.
+ Customer oriented strategy via focusing on End-user approach with full service offer
to customers.
+ Well – trained & experienced people in team work with aggressive characteristic and
passion with tyre business development.


12

2.4 SWOT ANALYSIS :

A. Strengths and Weakness analysis :

Performance
Factor

Fundamental Marginal Fundamental Marginal
Strength

Marketing factors


Relative market share
Reputation
Previous performance
Competitive stance
Customer loyalty
Breadth of product range
Deep of product range
Product quality
Product modification
New product programme
Distribution Cost
Dealer network
Dealer loyalty
Sales Force
After sales service
Manufacturing cost
Manufacturing flexibility
Raw material advantage
Advertising
Pricing

Importance

Strength

Weakness

Weakness


High Med Low


13

Performance
Factor

Importance

Fundamental Marginal Fundamental Marginal
Strength

Strength

Weakness

Weakness

High Med Low

Financial Cost
Profitability
Financial stability
Margin
Cost of capital
Manufacturing factors
Flexibility
Delivery capacities
Supply sourcing flexibility

Organizational factors
Culture
Leadership
Managerial Capacities
Workforce
Flexibility & adaptability

To analyse the strength and weakness factors of the company, the author uses the model of
performance and importance model which can evaluate almost complete key factors in
difference division such as Marketing factors, Organizational factors, Financial Cost…
The matrix is come out below from the analysed table to show four zones of the company status
in summary that will support to marketer in strategic proposal making.


14

Performance
Low

High
I
m
p
o
r
t
a
n
c
e


High

- Pricing

- Reputation

- After sales service

- Product quality

- Structure of competition

- Product modification

- Flexibility & Adaptability

- Sales force

- Dealer loyalty

- Unique selling proposition

- Managerial Capacities

- Profitability

- Culture

- Financial stability


- Breadth of product range
- New product programme
Low

- Advertising

The performance – importance matrix

B. Opportunities :
- With the rapid growth in recent years in Radial tyre market, Vietnam is considered as
the key emerging & developing market for Asian Zone in Michelin, therefore Michelin
Vietnam will get the great support from the central to develop the tyre business.
- Vietnam’s infrastructure is building up today with many project to widen or open new
highway, national way all over the country.
- Consumer was approached to Radial tyre technology and started to change the trend
of usage to Radial tyre in stead of Bias tyre.
- Transport regulation is applied strictly and people care more to the safe feature.
- Government start some projects to protect environment against with pollution such as :
Euro 2 emission standard,..


15

C. Threats :
- Many Chinese tyre makers join to tyre market with very low cost strategy.
- Main competitor : Bridgestone start their own business in 2011 with aggressive,
flexible and adaptable strategy to Asian culture and business way.
- Dealer loyalty & retention is not focused and Michelin lost manpower in the market.
- Michelin turnover in resource is so high due to managerial competence.


Finding Summary :
There are some core factors come out from the above analyses which will influent
strongly to marketer decision to create the strategic for this segment as followings :
a) Market : the rapid growth in radial tyre in recent years to show the extremely
potential market for Michelin tyre business developing.
b) Environment : radial tyre business receives the great support from
government’s infrastructure improvement plan as better road condition, it is a positive
signal for the radial tyre to have the best tyre performance.
c) Competition : Michelin will compete with two kinds of competition : main
competitor Bridgestone regarding OEM strategy and lower level competitors regarding
the low cost strategy.
d) Customers in studying segment : a survey for target customer come out the
some key points shown in page 06 is the useful data to create the action plan in order to
satisfy the customer needs.
e) Distribution : Create a flexible and adaptable distribution policy and full
service offering to users in order to make the highest profit for authorized dealers to
expand Michelin tyre. This will lead to the loyal objective.
d) Other factors : managerial capacities, cultural adaptability in internal analysis
is also concerned for the improvement.


16

CHAPTER 3 : MARKETING STRATEGY
In this project, the author apply the 4V model to create marketing strategy for Michelin
Vietnam in Container & Truck segment :
VISION

VALUE CUSTOMER


VALUE NETWORK

VALUE PROPOSITION

3.1 VISION :
Michelin Vietnam aims to become the leader tyre maker not only in Truck and Bus tyre
segment but also in the tyre industry in Vietnam.
Objectives in 2011 – 2013 for Truck and Bus tyre segment :
- In 2011 : create the Michelin tyre’s brand awareness for this segment and archive 5%
market share.
- In 2012 – 2013 : Extend the Michelin tyre share in end-user accounts and make the
average market growth of 20% yearly.
3.2 VALUE CUSTOMER :
Base on the usage application of customer, Michelin Vietnam segments this market into
three kinds of users as following :
No.

Segment

Characteristic

Focus level

- Passenger carrying and tourist
Coach & Bus
vehicle
1

application.


High focus on

- Using new tyre technology – radial customer
tyre - which require safety, comfort loyalty and
and mileage.

market

- Highest market share for Michelin growth
tyre, stable market growth.


17

- All kind of normal goods carrying
Container &

in logistic business

Normal truck

- Using old technology tyre – bias Highest
tyre – currently with the trend focus on new

2

changing to radial tyre shapely.

customer


- Require cost saving and mileage approach.
with new technology tyre using.
- Rapid growth for radial tyre.
Construction &

- Extreme overload application &

Heavy Truck

without tyre care from end-user.

3

- Market for bias tyre which require Low focus at
cheapest price and heavy load this period.
carrying.

- In segment No.1 : Coach and Bus vehicle where is a strength of Michelin tyre by
covered more than 40% market share in 2009. Therefore the strategy for this segment in
this period time is create a high percentage of loyal customers and increase the share of
account for Michelin tyre in each customer account.
- With segment No.3 : Construction & Heavy truck : This is the market of cheap price
and low quality product currently where customer’s usage is extreme overload and
careless.
- Container & normal truck segment : this is s big potential market where customer start
realize the cost saving coming from new technology tyre and tyre maintenance activities.
It therefore creates a trend of changing from old technology tyre ( bias tyre ) to new one
( radial tyre ). Moreover, this trend is also support by the regulation from government.



18

So, with high potential & value brought from the container & normal truck
segment, this project is targeting to approach and extend the market share in this
interesting segment.
3.3 VALUE PROPOSITION :
Marketing Value Proposal Model :
IMAGE
MVP
PRODUCT

PRICE
Source : Prof.Jean-Pierre Baeyens’ lecture

To match with the target market and positioning model on Marketing Value Proposal
above, three core proposal items is made for positioning :
a) Create a premium quality brand of Michelin tyre in customer perception. The
survey result indicates that customer has positive perception over quality of company’s
product and usage application in advantage range of Michelin product offer.
b) Michelin positions its products as high quality level in comparing with other
foreign tyre makers.
c) Apply the highest market price but lowest usage cost strategy.
Differentiation strategy :
With the competitive advantage in terms of offering the innovative product and full
service to customer which is creating a huge differentiation for Michelin tyre all over
the world, Michelin Vietnam will apply this strategy to differentiate in this studied
segment in particular and all Michelin tyre in general.
a) Innovative product :
Michelin Vietnam deploys the lowest CPK ( cost per kilometer ) concept to the end-user

by offering the high technology products to satisfy to the road condition and customer ‘s
usage attitudes. Moreover, basic tyre knowledge & maintenance activities training
program will also be carried out at customer’s area to improve tyre usage performance.


19

CPK concept present to customer

Source : Michelin Technical Data in Product Marketing Dept.
b) Full service to customer :
Michelin Vietnam use pull marketing strategy to approach directly to users with will
create a high effective :
Michelin VN

Wholesaler

Retailers

End-users

Personnel differentiation will be applied to satisfy customer needs. A well-trained sales
force in Michelin Vietnam and experts or experienced technician in dealers will offer a
complete service to users over three stages :
i. Tyre recommendation : to advise and suggest the highest proper tyre for the
road and usage application of each user to have a lowest CPK.
ii. Tyre performance : offer a right tyre fitment manner by professional
technician and air pressure using recommendation.
iii. Tyre maintenance : regular tyre maintenance activities offering to clients to
extend tyre’s lifetime. Technical support on time for every tyre concern.

3.4 VALUE NETWORK :
Value network is designed to fixed with the pull marketing strategy set up with the one
level of distribution channel from the retailer to end-user. Additionally, some objectives
in terms of targeted service output level also will be set to create a good value to
customer such as : lot size, waiting and delivery time, service backup.


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CHAPTER 4 : MARKETING ACTION PLAN
4.1 PRODUCT OFFER :
Michelin segments tyre market by usage condition, so with the existing road condition
and developing on infrastructure in Vietnam, two tyre segments are chosen to offer to
container & normal truck tyre market :
Segment apply for : LONG DISTANCE & REGIONAL ROAD
Feature : Vehicle traveling long distance predominantly using national
road with frequent acceleration and brake.

Segment apply for : ON / OFF ROAD
Feature : Mix application, on/off road, aggressive surface, construction
site access.
In addition, in each usage segment, Michelin Vietnam offer more specific fitment
application on different axles in order to optimize the tyre performance and increase tyre
life time.
LONG DISTANCE &
REGIONAL ROAD

For all position

For drive axle application

( resist torque moment impact)

ON / OFF ROAD

For all position

For drive axle application
( resist torque moment impact)