University of South Florida Marketing Plan Report Samsung Galaxy Chromebook in Vietnam Nick Boccuzi Sierra Earnhart Michael Kang Matthew McDuffie Brandon Sands Thomas Whiteman Professor Jeannette A. Mena 28 November 2022 Marketing objectives When it comes to our target market we are trying to focus on lower-income families and students that can not afford the more expensive laptops in the Vietnam community. Of course, we would want to sell to anyone willing to buy but our purpose for bringing the Chromebook to Vietnam is to support the ones who have trouble getting support. As we talked about in our last project Vietnam is on the rise in the economy but it is a relatively poor country in need of more affordable resources like the Chromebook. What we plan to achieve with this marketing plan is getting the point across that technology is advancing and it would be helpful that Vietnam jump aboard the train of technological advancement. We believe any company's main goal is to have total market coverage but in this case, we are trying to mainly target low-income housing. We can send mail and magazines to anybody, but with our target being people who can not afford much we need to have control over the smaller communities and get ads in their newspapers along with catalogs. The first step into the market, of course, will be the lower-income communities. Depending on how well sales go we can slowly work our way to implement more control in every community and market in Vietnam. If sales go as assumed we take bigger steps to advertise the Chromebook through billboards, emails, newsletters, and magazines. We would start with a payment plan as well to market to the lower class so that they have a cheap payment for a laptop that can help the parent or student excel in the technological world and the educational world as well. With a payment plan, you take the weight of buying an expensive computer all at once off of a family that needs it. We use that as another point of marketing this product so we can show that we are on their side and not trying to make our money and leave. Product adaptation Product adaptation is the process of transforming a specific product in order to meet the needs of consumers in a different market from the one that the product is originally made. It is imperative for companies to adhere to product adaptation and be willing to adjust in regions of the world where there are many factors that need to be considered such as culture, societal structure, government regulations, the economy, and many other variables. Samsung Chromebooks would offer a wide variety of opportunities under the realm of product adaptation and product adjustments. Samsung offers many different Chromebook options with prices ranging from $275 upward of $1000. One of their models, the Samsung Galaxy Chromebook Go, is one of their more affordable Chromebooks as it is priced at $299 MSRP. This Chromebook comes with a 14” screen, 4GB of memory, 32BG eMMC storage, two USB-Cs and one USB 3.0, a 720p HD camera, one headphone in/microphone out combo, internal mic, stereo speakers, and up to 12 hours of battery life (Samsung). We’ve collectively decided that we will sell each laptop for $621.93 each for its retail value, and $12,063.34 for 23 laptops for its wholesale value. With all of these factors in mind, this device would be a great purchase for Vietnamese students as it offers everything a student needs to be successful. The only issue is that Samsung currently doesn’t offer a product that can be easily consumed by the Vietnamese population. The official written language of Vietnam is Quoc-ngu, which is not the language that is printed on Samsung Chromebooks. Samsung offers users a way to change the keyboard and language settings digitally, but not physically on the keyboards. Without a physical keyboard with their native language on it, Vietnamese students may have a difficult time using the Chromebook. This could deter them from even buying it in the first place. Quoc-ngu consists of 29 letters, including seven letters using four diacritics (Omniglot). This amount of letters is very similar to the amount of letters in the English alphabet, which is 26. There are 74 keys on the keyboard of the Chromebook Go. If we make a laptop using the Quoc-ngu written language, 29 keys would be used for typing and the other 45 would be numeric, control, function, and navigation keys. This is very feasible as the design of the keyboard would not have to be changed, just the letters that are printed on it. The Samsung Galaxy Chromebook is also equipped with an Intel Celeron Processor N4500. The Intel plant in Saigon Hi-Tech Park, Ho Chi Minh City is Intel’s largest facility assembly and test sites worldwide (Yu). Because Intel is so well known and employs several thousand Vietnamese, emphasizing that the Chromebook is made with Intel parts could encourage sales. Not only would this be displayed on the packaging, but it would be printed on the stickers on the inside of the laptop. These stickers would reinstate the fact that the Chromebook is equipped with a Vietnamese made processor. We would also make the laptop available in four different colors: red, blue, yellow, and silver. These colors in Vietnam have strong ties to their culture. Red is used in most Vietnamese celebrations as it’s a color of luck, and blue is symbolic of growth and hope. Yellow strongly represents the free people of Vietnam and appeals to their sense of freedom and patriotism. Silver is just a good basic color opposed to black and white. Black is symbolic of evil and white is symbolic of death (Baohouse). With this thought in mind, it would be a good move to have multiple colored laptops up for sale. Promotion mix With the face of the world being technology, it is important that every person has the best resources possible to learn or advance in their work. Marketing an American technological product across seas is harder said than done but can be tailored to Vietnamese culture and beneficial for them in the long run. There are many more ways to get your product out there, although strategies are different and need to be appropriate to how their country operates. Advertising would be my first and best tactic to promote our product. Any form of mass media advertising through newspapers, television, magazines, posters, web pages, etc.., is the first step that we would take. This is the best way to get your product known throughout an area and is completely non personal (Theseus). This will most likely be people's first impression so it would be important to make our posters and advertisements stand out with a sale in order to catch people's attention. This is known as sales promotion and plays and gives people an incentive to why they should buy our product. We would also include a raffle that allows people to have the potential to win a free samsung chromebook if they sign up for our newsletter. While advertising and having good promotional deals is important, it is just as important to create connections. Personal selling is the perfect way to do this, even if it is through phone calls or email. Our company would have a 24/7 customer service chat, as well as an FAQ page (frequently asked questions) so people feel more comfortable and trust our product. As well as an about page that describes what we stand for and our mission to help vietnamese parents and schools around the world afford basic technology. This goes along with another tactic we would use known as direct marketing. This is so important to make the customer feel at home and willing to spend money that people want to last. We do this by targeting certain groups of people such as people with children in schools or low income areas that cannot afford expensive technology. By sending letters, text, and emails is the best way to stay personal and create relationships with them. Hosting events and pop up shops in highly populated areas is the best way to improve public relations and to make the most sales. Channels of Distribution Among the focus of students in Vietnam as our target, it is important to point out that the Vietnamese Government has initiated a program to start in the 2022-2023 period called “Internet Connection and Computers for Students” (Dharmaraj). With this program we can gain the help of the government in relation to delivery of these laptops at affordable prices to the cities all around Vietnam. Outside of the Government's help, the big shipping company we all know and love is UPS and they help cover the intricacies that must be followed when shipping to Vietnam. Including all the dimensions realized for the Samsung Galaxy Chromebook, and how to properly package it for approval of their government regulations. Previously mentioned was Intel’s Largest facility already being in Vietnam which is a help, and this is because the Vietnamese government will be familiar with what is coming through the borders. When the final product of the Samsung Galaxy Chromebook arrives, probably through airport, or shipping yard, they will take a count of total products on the shipment and make sure it matches with the records, and then do a sample test through customs and make sure everything is included such as instructions and test the weight of the shipment to make sure it matches the description, then it will be cleared for entry into the country and released for distribution.(VNGOV). The biggest electronics store chain in Vietnam is a store named “Dien May Xanh”, with the help of this store and the product already being made from a very reputable source in that of Samsung, it is definitely feasible for the product to do well at the price point in this market.(Nguyen). Price Determination Global supply chains are still in the process of recovery after the pandemic. This poses a challenge for our team. With the high rates of inflation and supply chain issues that continue to plague our economies today, our team must find innovative solutions to ship our product. We want to ensure safety of our goods, and timely delivery. After conducting research on international freight distribution channels, we chose to use the services of Fedex Freight. We would ship boxes of laptops out to vietnam for a rate of $987.31 per package. This includes the cost of handling, insurance, and transportation. ‘Vietnam does not apply any customs and duty taxes to imported laptops and computers. There is a 10% value-added tax after the package is processed through the Vietnamese customs’. (Examining Vietnam’s Import Duty and Taxes). Once customs procedures have been completed the package would be delivered to the appropriate local distributor. As for price, many factors of consideration must be weighed. Our company needs to have revenues outweigh expenses by a comfortable margin, and distributors need enough pricing room to earn profit as well. Retail items receive a higher markup than wholesale markups. With that in mind, we would seek 20% profit margins over our related expenses, and suggest retailers markup no more than 25% over their acquisition costs. The total retail price would be $621.93, making our chromebooks a competitive product in the existing laptop market in Vietnam. To accommodate for the wholesaling market we would have an option to purchase a box of laptops for a 10% markup over our related expenses, and suggest wholesalers markup no more than 15% over their subsequent acquisition costs. This would make the wholesale price for 23 laptops just under $12,100, or $525 per laptop, a 16% discount off of retail. Our pricing structure is catered to the average college student looking for more out of a higher quality laptop. 54% of the suggested retail price is from the manufacturing expenses, 33% is from profits markups, and 13% comes from the related distribution charges. (Fig 1). As for the suggested wholesale price, 64% of it comes from the manufacturing expenses, 21% is profit markups, and 15% is the related distribution charges (Fig 2). The packages to be shipped would contain 23 laptops each weighing 2.29 lbs, and 2.45lbs of packaging material for safety (Table 1). These specifications lie within FedEx’s weight constraints. Any more weight could increase shipping costs and decrease profit margins. Both our company and distribution partners such as Dien May Xanh would receive a sustainable profit by making affordable high quality laptops for low income vietnamese families and students. Sources of Information Product adaptation or modification Samsung. (n.d.). Galaxy Chromebook go 14", silver (WIFI) chromebooks - XE340XDAka1us: Samsung Us. Samsung Electronics America. Retrieved November 24, 2022, from https://www.samsung.com/us/computing/chromebooks/12-14/galaxy-chromebook-go-14--silver--wifi--xe340xda-ka1us/ Omniglot. (n.d.). Vietnamese (Tiếng Việt / 㗂越). Vietnamese language and alphabet. Retrieved November 24, 2022, from https://omniglot.com/writing/vietnamese.htm Yu, E. (2021). Intel invests $475M in a Vietnam facility to 'enhance' 5G, core manufacturing. ZDNET. Retrieved November 24, 2022, from https://www.zdnet.com/article/intel-invests-475m-in-vietnam-facility-to-enhance-5g-coremanufacturing/ Baohouse. (2012, January 25). Color connotations in Vietnamese culture. Tumblr. Retrieved November 25, 2022, from https://baohouse.net/post/16435862965/colorconnotations-in-the-vietnamese-culture Promotion mix Dang, T. (1970, January 1). The success of applying marketing mix 4PS in the Vietnamese dairy industry : Vinamilk – a typical case. Theseus. Retrieved November 25, 2022, from https://www.theseus.fi/handle/10024/85926 Vietnam (mekong delta). WSP. (n.d.). Retrieved November 25, 2022, from https://www.wsp.org/sites/wsp/files/Sanitation%20Marketing%20Toolkits/toolkit/vietnammekong.html Channels of Distribution Dharmaraj, S., Ocampo, Y., Sharon, A., & Ocampo, M. S. and Y. (2021, September 28). Vietnam launches 'internet connection and computers for students' programme opengov asia. OpenGov Asia -. Retrieved November 25, 2022, from https://opengovasia.com/vietnam-launches-internet-connection-and-computers-forstudents-programme/ UPS. (n.d.). How to ship A laptop. UPS. Retrieved November 25, 2022, from https://www.ups.com/vn/en/support/shipping-support/shipping-special-care-regulateditems/prohibited-items/laptop.page V. N. G. O. V. (2021). Vietnam - Customs Regulations. International Trade Administration | Trade.gov. Retrieved November 25, 2022, from https://www.trade.gov/country-commercial-guides/vietnam-customs-regulations Nguyen, M.-N. (2022, May 4). Vietnam: Leading Electronics Store Brands by number of stores 2022. Statista. Retrieved November 25, 2022, from https://www.statista.com/statistics/1014958/vietnam-leading-electronics-store-brands/ Price Determination DHL. (2022, September 20). Guide to vietnam import duty & taxes – DHL Express my. Guide to Vietnam Import Duty & Taxes – DHL Express MY. Retrieved November 28, 2022, from https://www.dhl.com/discover/en-my/business/getting-to-market/the-guide-tovietnam-import-duty-andtaxes#:~:text=Vietnam's%20VAT%20rates%20for%20imported,items%20are%20subject %20to%20SCT. Appendixes (Figure 1) (Figure 2) (Table 1)