UNIVERSITY OF DA NANG

UNIVERSITY OF ECONOMICS

PRACTICE REPORT
COURSE: PRINCIPLES OF MARKETING

MARKETING ANALYSIS PROJECT OF HOA PHAT GROUP

Instructor: Dr.Trần Triệu Khải

Class: 49K01.1
Implementation group: Amethyst
Group members: Lê Nguyễn Hoàng Vy
Nguyễn Lê Châu An
Hà Thị Như Quỳnh
Phạm Thị Kiều Oanh

Da Nang, 2023-2024

CONTENT
INTRODUCTION...........................................................................................................................2
CONTENT SECTION....................................................................................................................2
1. Information about Hoa Phat Group Joint Stock Company......................................................3
1.1 Corporation..........................................................................................................................3
1.2 History of Formation.............................................................................................................3
1.3 Mission and Vision:..............................................................................................................3
1.4 Business Activities Portfolio.................................................................................................4
1.5 Information about the product (Hoa Phat HWBR3B1021T RO Hot and Cold Water
Purifier):......................................................................................................................................4
1.6 Information about the brand:................................................................................................5
2. Marketing environment...........................................................................................................6
2.1. Macro environment.............................................................................................................6
2.1.1 Economic environment..................................................................................................6
2.1.2 Political environment.....................................................................................................6
2.1.3 Cultural environment.....................................................................................................6
2.1.4 Technological environment:...........................................................................................6
2.1.5 Demographic:................................................................................................................7
2.1.6 Natural environment:.....................................................................................................7
2.2 Microenvironment.................................................................................................................7
2.2.1 Company.......................................................................................................................7
2.2.2 Competitors...................................................................................................................8
2.2.3 Bargaining power of suppliers.......................................................................................9
2.2.4 Bargaining power of buyers...........................................................................................9
2.3 SWOT analysis....................................................................................................................9
3. Customer analysis:..................................................................................................................11
3.1 Customer characteristics:...................................................................................................11
3.1.1 Cultural factors............................................................................................................11
3.1.2. Social factors..............................................................................................................11
3.1.3 Personal factors...........................................................................................................11
3.1.4. Psychological factors..................................................................................................12
3.2 Types of buying behaviors.................................................................................................12
3.3 Typical buying decision process of customers...................................................................13
4. Marketing strategy:..................................................................................................................14
4.1 Market segmentation..........................................................................................................14
 4.2Target market selection.......................................................................................................16
4.3 Positioning..........................................................................................................................17
5. Marketing Mix..........................................................................................................................18
5.1 Product...............................................................................................................................18
5.1.1 Product Type...................................................................................................................18
5.1.2 Product Level..................................................................................................................19
5.1.3 Product decisions............................................................................................................19
5.1.4 Product mix.....................................................................................................................20
5.1.5 Product life cycle.............................................................................................................21
5.2 Price...................................................................................................................................21
5.2.1 Current price................................................................................................................21
5.2.2 Factors influencing pricing...........................................................................................21
5.2.3 Pricing strategy / price change strategy employed by the brand.................................23
5.3 Place..................................................................................................................................24
5.4 Promotion...........................................................................................................................24
5.4.1 Specific communication campaigns that the company use as an illustration..............24
5.4.2 Promotional tools used by the company......................................................................25
5.4.3 Evaluation....................................................................................................................25
6. Marketing performance............................................................................................................26
6.1 Market performance...........................................................................................................26
6.2 Customer performance......................................................................................................26
6.3 Brand performance............................................................................................................27
7. Conclusion and reflection........................................................................................................27
7.1 Key issues..........................................................................................................................27
7.2 Recommendations.............................................................................................................28
7.3 Propose lessons.................................................................................................................28
References..................................................................................................................................28

INTRODUCTION
Clean water is an important factor to ensure human health. Drinking water and daily
broth, including cooking water, washing vegetables, and bathing, need to be safe and free
of harmful pollutants such as bacteria, heavy metals, and chemical compounds. However,
Vietnam is facing serious environmental pollution problems, especially in industrial,
urban and rural areas. Surface water and groundwater sources can be contaminated by
industrial waste, household waste, fertilizers, pesticides and other pollutants. Although
Vietnam has experienced significant development in its public water supply system, there
are still problems related to water quality. Therefore, the need for clean water is
extremely urgent.

Understanding that, Hoa Phat with the message "Hoa Phat water purifier –
Wholeheartedly for water, worthy of love", wishes to convey a spirit of enthusiasm,
striving to bring intensive domestic water purification solutions to all Vietnamese
families. Through Hoa Phat HWBR3B1021T RO Hot and Cold Water Purifier, Hoa Phat
brings consumers many interesting experiences, through development strategies, goals,
positioning of brands, products, market segments, competitors ... as well as
communication tools that bring products closer to consumers.

Below is an analysis report on Hoa Phat HWBR3B1021T RO Hot and Cold Water
Purifier products that the Amethyst team has researched. In the process of practicing the
report, mistakes will inevitably occur, hopefully you will give us reviews and suggestions
for improvement.

We sincerely thank Mr. Tran Trieu Khai for his dedicated assistance in helping us
successfully complete the practical report!
 CONTENT SECTION
1. Information about Hoa Phat Group Joint Stock Company
1.1 Corporation
Hoa Phat Corporation is a private conglomerate in Vietnam. It started as a trading
company for construction machinery and has now become a diversified business group.
With 13 subsidiary companies, Hoa Phat Corporation operates a production system with
dozens of factories and a distribution network of products throughout Vietnam.
1.2 History of Formation

Figure 1. Important milestones of Hoa Phat Group Joint Stock Company

1.3 Mission and Vision:

- With the business philosophy of "Harmony for Development," Hoa Phat aims to provide
leading products that contribute to improving the quality of life and earning the trust of
customers.
- Hoa Phat strives to align with the development of society, with products always focusing
on the benefits of customers.
- Hoa Phat aims to unleash the talent and intellect of its employees and provide them with
a better life.
- The company aims to establish sustainable cooperation, be a reliable partner, and create
long-term value for shareholders.
- The company envisions expanding its investments to significantly contribute to the
prosperity of Vietnam.
1.4 Business Activities Portfolio
Currently, the Corporation operates in five sectors: Steel (construction steel, hot-rolled
coil steel), Steel Products (including steel pipes, galvanized sheets, prestressed steel, and
tensioned steel), Agriculture, Real Estate, and Consumer Electronics. Steel production is
the core sector, accounting for 90% of the Corporation's total revenue and profit. With a
capacity of 8.5 million tons of crude steel per year, Hoa Phat is the largest steel producer
in the Southeast Asia region.
1.5 Information about the product (Hoa Phat HWBR3B1021T RO Hot and
Cold Water Purifier):

Figure 2. Hoa Phat HWBR3B1021T hot and cold RO water purifier

The Hoa Phat HWBR3B1021T is a hot and cold-water purifier that utilizes reverse
osmosis (RO) technology. Here is some information about this product:
● Design and Features:
 The HWBR3B1021T water purifier features a sleek and modern design, suitable and
convenient.
● Reverse Osmosis (RO) Technology:
This water purifier utilizes RO technology, which is a highly effective method for
removing impurities and contaminants from water. As a result, purified water is clean,
safe, and suitable for drinking.
● Hot and Cold Water Dispensing:
The HWBR3B1021T provides the convenience of both hot and cold water options.
● Filtration System:
In addition to the RO membrane, this water purifier is equipped with multiple filtration
stages to enhance water quality, help remove various contaminants, improve taste, and
provide clean and pure drinking water.
● Additional Features:
The HWBR3B1021T may come with additional features such as LED indicators for filter
replacement, child safety locks on the hot water faucet, and adjustable temperature
settings for the hot water function.
1.6 Information about the brand:
For many consecutive years, Hoa Phat has been recognized as the National Brand, Top
Strongest Brand in Vietnam; Vietnam Gold Star, Top 50 Best Performing Companies in
Vietnam; Top 30 largest CIT payers in Vietnam, 20 corporate brands with a value of over
100 million USD by Forbes Vietnam, Top 10 famous brands of Vietnam...

Figure 3. The logo of Hoa Phat Corporation

After more than 25 years of formation and development, Hoa Phat Corporation has
undergone a logo transformation that carries sustainable value and reinforces its brand
identity.

● The pattern of intersecting equilateral triangles has been replaced with parallel arrows,
symbolizing the commitment to development and global reach.
● Below the three arrows are stylized lines representing supportive hands, emphasizing the
dedication to producing high-quality products.
● The new logo is accompanied by a completely new slogan: "Harmony for Development."
The word "and" has been changed to "harmony" to enhance the cooperative relationship
between Hoa Phat and its partners, shifting from a "parallel" relationship to a "mutually
supportive" one, collectively striving for strong growth.

2. Marketing environment
2.1. Macro environment
2.1.1 Economic environment
The economic growth in Vietnam and the increasing income of the population have
created a demand for enhanced usage of household electrical appliances. This positive
economic environment provides opportunities for Hoa Phat to expand its market share
and increase sales volume.
2.1.2 Political environment
Motivation and awareness: Consumers consider using water filtration systems due to
concerns about the quality of their current water source and a desire to ensure the health
and safety of their family members.

Knowledge, beliefs, and attitudes: When purchasing a water filtration system, customers
are usually concerned about:
=> Price: The product must be affordable for customers.
=> Quality of the water filtration system: The product must have good quality and
provide value to the consumers.
=> Design of the product (attractive, modern, smart, etc.): The product should have
aesthetic appeal and fit well in the household space.
=> Convenience and simplicity: Customers tend to prefer products that are easy to install
and use on a daily basis.
=> Trusted brand: The perception of reliability and reputation of the Hoa Phat water
filtration system can influence the purchase decision.
=> After-sales service and warranty policies of the product.
=> Additionally, if the product is environmentally friendly and helps reduce waste and
energy consumption, it can attract customers, especially those who are concerned about
environmental issues.
2.1.3 Cultural environment
The development of society and the improvement of living standards have increased the
demand for household electrical appliances such as air conditioners, washing machines,
televisions, and other appliances. Additionally, there is an increasing awareness of using
energy-efficient devices and protecting the environment.
 This creates opportunities for Hoa Phat to develop advanced technology products that are
environmentally friendly.
However, Vietnamese consumers have a preference for foreign products. This poses a
challenge to the plan of gradually replacing foreign products with HPG's products.
2.1.4 Technological environment:
The emergence of automation applications in manufacturing and business operations has
led companies to adopt them in order to save labor costs, minimize material waste during
production, and improve product quality.
The expansion of the Internet network requires HPG to establish channels to promote its
products to domestic consumers, as well as provide effective information channels about
events and activities to investors, helping them feel more confident in the invested
company.
2.1.5 Demographic:
 Geography: overland and overseas
 Location: Target customers mainly live in major provinces and cities
 Gender: Both Male and Female
 Age: Young Adult group (18 – 24 years old), Adult group (25 – 35 years old), Middle-
aged group (35 – 45 years old), Middle-aged group (45 – 55 years old), Elder group (over
55 years old).
 Income: target customers are concentrated in the Group A Class income group (15 - 150
million VND or more).
2.1.6 Natural environment:
Natural conditions become an important factor forming competitive advantages of
products and services: Hoa Phat determine the responsibility of enterprises in protecting
environmental resources, by offering innovative solutions, energy-saving systems, water
protection at factories...
2.2 Microenvironment
2.2.1 Company
In 2021, Hoa Phat Group established Hoa Phat Home Appliances Joint Stock company,
investing heavily and methodically in the household electrical appliances industry based
on 20 years of development of the electrical refrigeration industry. Electrical appliances
have become one of 5 important fields of operation of Hoa Phat Group
The company has support platforms from the Hoa Phat Group which is now the leader in
the steel industry and has expanded into new fields such as real estate, agriculture,
container manufacturing. Hoa Phat Group will enhance the strength of capital investment,
raw materials, technology, human resources, brands... Once entering the household
electrical segment, Hoa Phat can produce professionally to achieve high quality
productivity and reduce production costs, lower finished product prices at the same time.
 Figure 4. Hoa Phat Home Appliances Joint Stock company
2.2.2 Competitors
Compete within the same industry: Hoa Phat's direct competitors such as Carofi, Sun
house, Son Ha, Kangaroo compete in both domestic and international markets. These
enterprises have all had export activities to the Chinese, Laos, and Indonesia market, ...
Moreover, the company also competes with the great companies present in the market for
a long time such as Daikin, LG, Panasonic, Toshiba, Sharp, Casper. Therefore, the
company will deal with many significant challenges and it’s hard to affirm the position in
the market

Figure 5. Hoa Phat's revenue compared to competitors in the home appliance industry

Competing with new competitors: household electricity is not an easy industry because
there are constantly new companies such as Casper, Ffalcon, Mobell, Hisense, Hafele,
Galanz, Beko, MDV ... For those who have established themselves before, the problem of
sustaining and developing is always a challenge. (Threat -> The company may accept
unprofitable business to compete with imported goods)
 Compete with substitute products: Some brands provide environmentally friendly and
energy-saving water purifiers like Brita and Berkey offer non-electric water filters that
use activated carbon or bacterial filtration to improve water quality.
-> Opportunities: Competitors can help the corporation realize their growth goals and
opportunities in the market. In addition, competitors can alter the company's processes to
create better products. Businesses will actively replace things that are old, outdated, no
longer suitable for customers' favorite
2.2.3 Bargaining power of suppliers
Marketing intermediaries: With the strategy of expanding distribution and trading, Hoa
Phat company's water purifier also officially appeared in large electronics supermarkets
across the country such as Dien May Xanh supermarket, Cho Lon electronics
supermarket, HC Electronics, PICO Electronics. Moreover, water purification by Hoa
Phat Company has been introduced and sold online at the website system of Dien May
Xanh, Cho Lon Supermarket, Lazada,... Details related to the product, and selling price,
are listed and easy to search. With more than 2000 points of sale belonging to electronics
supermarkets across the country, customers from all over the country can easily find
suitable products for their family's needs.
Logistics service providers: Important logistics service providers of Hoa Phat include
DHL, TNT, FedEx, Kerry logistics, and local service providers.
2.2.4 Bargaining power of buyers
Consumer Market: The primary focus of customers is households that prioritize health
and the convenience of water purifiers, as well as companies and organizations serving
large populations in an efficient and convenient manner.

 For household customers, Hoa Phat will provide compact and aesthetically pleasing water
purifiers that ensure clean water.
 For customers who are organizations, schools, and companies, Hoa Phat will provide
water purifiers with fast and efficient filtration capabilities, intelligent features, optimized
operational processes, and water-saving capabilities.

Publics: Hoa Phat also conducts sponsorship campaigns to provide free water purifiers to
schools. Through this, they earn goodwill in the market and gain trust. This trust and
goodwill come not only from consumers but also from the public, including charities, the
media, consumer protection activists, and the local community in their operating area...
2.3 SWOT analysis

STRENGTHS State-of-the-art production line: Production and assembly lines

and equipment are imported from famous brands in the world,
modern and fully automated.
⇨ Technology environment
Won many major awards: With 30 years of establishment and
development, Hoa Phat has repeatedly won prestigious awards
 that all competitors crave.
Extensive distribution system: Hoa Phat has invested in building a
distribution system covering 63 provinces and cities in Vietnam.
With a strong distribution system, Hoa Phat has cooperated with
agents and distributors and provided them with high discounts,
good warranty, effective advertising and marketing support... to
help Hoa Phat's products come closer to customers.
⇨ Bargaining of suppliers
WEAKNESSES Input raw material costs have not been optimized: Currently, Hoa
Phat is still unable to keep input raw material prices at the lowest
level.
⇨ Economic environment
The product does not have an outstanding and distinct image
⇨ Lack competitor
OPPORTUNITIES: Favorable geographical location: Hoa Phat deploys 3 production
centers in key economic regions of Vietnam: Ha Nam, Hung Yen,
Vung Tau with a warehouse system stretching across the country.
These production centers are near the country's main roads, near
major seaports, and are especially convenient for export activities
to countries worldwide.
⇨ Economic environment and Natural environment
Vietnamese people prioritize using Vietnamese products and are
willing to pay high prices for quality products
⇨ Cultural environment
Integrated economy: Since joining the WTO, the Vietnamese
government has always created conditions for domestic and
foreign businesses to cooperate and develop. Thereby opening up
many opportunities to help businesses attract capital from abroad.
⇨ Political environment
THREATS: Facing fierce competition: As the market expands, it is inevitable
that more competitors will join. Currently, Hoa Phat electronics is
facing fierce competition from many businesses such as
Kangaroo, Sunhouse, Karofi
⇨ Competitor (Microenvironment)
Constant changes in the prices of raw materials
 3. Customer analysis:
3.1 Customer characteristics:
3.1.1 Cultural factors
● Cultural background: In Vietnam, most households rely on water supplied by water
treatment plants or groundwater from wells. However, the water treatment system is not
well-developed, leading to water contamination and bacterial contamination.
Furthermore, Vietnam is currently undergoing industrialization and modernization,
alongside improving economic living standards. However, this process also has negative
impacts and puts significant pressure on the environment, particularly water resources,
especially in large cities and coastal areas. Therefore, using water filtration systems is an
effective solution to improve the quality of the water being consumed.
● Social class: Consumers choose to purchase water filtration systems if they perceive them
as reflecting social status or enhancing their quality of life.
3.1.2. Social factors
● The demand for food safety in Vietnam is increasingly stringent. The preference for
cleanliness and modern technology is a top priority.
=> Water filters are becoming essential household appliances.
=> More and more people are paying attention to water filter products.
● When customers choose to purchase water filters, they often seek advice from sellers,
family, friends, colleagues, and consider reviews from other customers...
=> The popularity and acceptance of Hòa Phát water filters within the community, or
positive reviews from people around them, are extremely important as they encourage
customers to buy the product.
3.1.3 Personal factors
● The target customer group interested in water filtration systems is typically within the age
range of 25-34 (over 60%). This group consists of individuals who are already married
and prioritize the health care of their families, or simply because they desire to use clean
and safe drinking water.
=> Customers are willing to purchase the product if it meets their needs and desires.
● The majority of target customers are progressive-minded individuals with relatively
stable average incomes (around 7 million VND per month or above).
=> If the price of Hoa Phat water filtration systems is suitable for their income and
financial resources, they may decide to purchase the product.
● Consumer preferences, lifestyles, habits, and shopping behaviors vary across different
regions.
=> The product must align with these characteristics in order to attract customer
purchases.
 3.1.4. Psychological factors
Motivation and awareness: Consumers consider using water filtration systems due to
concerns about the quality of their current water source and a desire to ensure the health
and safety of their family members.
Knowledge, beliefs, and attitudes: When purchasing a water filtration system, customers are
usually concerned about:
=> Price: The product must be affordable for customers.
=> Quality of the water filtration system: The product must have good quality and provide
value to the consumers.
=> Design of the product (attractive, modern, smart, etc.): The product should have aesthetic
appeal and fit well in the household space.
=> Convenience and simplicity: Customers tend to prefer products that are easy to install and
use on a daily basis.
=> Trusted brand: The perception of reliability and reputation of the Hoa Phat water
filtration system can influence the purchase decision.
=> After-sales service and warranty policies of the product.
=> Additionally, if the product is environmentally friendly and helps reduce waste and
energy consumption, it can attract customers, especially those who are concerned about
environmental issues.
3.2 Types of buying behaviors
Purchasing behavior can vary depending on each target audience and consumer culture.
For Hoa Phat water filtration systems, customers typically engage in complex buying
behavior.
 Beliefs about the product:
Customers often have a belief in using clean and safe water for their health. Therefore,
the main criterion for choosing a water filtration system is to ensure that the daily water
source is filtered, free from harmful pollutants.
1. Attitudes:
● Attitude towards the brand and quality: Customers tend to trust and prioritize purchasing
products from recognized and reputable brands.
=> They may choose Hoa Phat water filtration systems based on the reputation and
quality of this brand.
● Attitude towards the product: Customers usually conduct thorough research on the
product they intend to purchase.
=> They seek information from reviews, instructional videos, other users, or
acquaintances. They value real-life experiences with the product.
 => They are interested in product features: Customers care about the features and
performance of Hoa Phat water filtration systems, including the ability to remove
contaminants, durability, energy efficiency, and ease of use.
=> They inquire about warranty policies and after-sales services to ensure good support
and maintenance after purchase.
● Attitude towards environmental protection: Some customers are concerned about
reducing plastic waste and water conservation.
=> They consider Hoa Phat water filtration systems for their water-saving features and
the ability to reuse filter cartridges, which helps reduce plastic waste from water bottles.

2. Purchase decision:
● Customers make their purchasing decisions after:
=> Clearly identifying their personal needs: The product must be affordable and suitable
for their space and usage requirements.
=> Evaluating value: Customers often compare the value that Hoa Phat water filtration
systems provide in relation to their price and the quality of other products in the market.
They consider the worthiness and benefits that the product brings.
3.3 Typical buying decision process of customers
1. Emergence of needs: Customers recognize that the water supply in their homes may
not guarantee quality or safety, causing health issues or not meeting their daily usage
needs. This need may arise from using tap water that contains impurities, bacteria, or
concerns about potential contamination in well water.
2. Information search: Customers begin searching for information about Hoa Phat water
filtration systems. They may gather information from sources such as media
advertisements, Hoa Phat's website, user reviews, blog articles, or advice from experts.
During this stage, customers gather information about different Hoa Phat water filtration
models, features, performance, and pricing to gain an overall understanding of the
product and make an informed choice.
3. Evaluating options: Customers evaluate and compare Hoa Phat water filtration
products as well as products from other brands. They consider factors such as quality,
filtration performance, lifespan of the filters, the ability to remove impurities and
bacteria, convenience, features, and associated costs. This process helps customers
identify the most suitable Hoa Phat water filtration system that aligns with their needs
and preferences.
4. Purchase decision: Based on their research and comparisons, customers make the
decision to purchase a Hoa Phat water filtration system. This decision may be influenced
 by factors such as the reputation and reliability of the Hoa Phat brand, positive user
reviews, or the alignment with their specific needs.
5. Post-purchase: After purchasing a Hoa Phat water filtration system, customers
proceed to use and evaluate its effectiveness in providing clean and safe water. They
observe water quality indicators after filtration and compare them to their initial needs
and expectations. The results of this evaluation will impact satisfaction and the decision
to continue using the Hoa Phat water filtration system in the future.

4. Marketing strategy:
4.1 Market segmentation
 Geographic segmentation:
 Domain: In Vietnam, Hoa Phat water purifier segments the market into 3 regions (North,
Central, South).
- The North has a need for home water purification due to the cold climate and water
quality problems.
- The Central region has a need for water purification for rural areas and tourism.
- The South has a need for home and industrial water purification due to its high
population density and water quality problems.
 Scale: Hoa Phat water purifiers are segmented by urban and city scale into four main
segments.
- Large urban areas: focusing on big cities and developed urban centers (Hanoi, Ho Chi
Minh, Da Nang...).
- Small urban and suburban: includes smaller urban areas, suburbs, and residential areas
developed around large cities.
- Trade and industry: focus on commercial areas, industrial parks and export processing
zones.
- Tourism and resort: focusing on tourist areas, resorts and resorts.
 This product meets the water purification needs of families, offices, restaurants, hotels,
factories and accommodation service facilities in the respective areas.
 Density :
- Crowded urban area: For apartments, offices and commercial facilities in big cities
(Hanoi, Ho Chi Minh ...).
- Rural and sparsely populated: Serving families, small factories, clinics, and schools in
low-density residential areas.
- Seas and islands: Providing water purification solutions for tourist facilities, resorts,
restaurants and residents living in coastal areas and islands.
 Demographic segmentation:
 Family life cycle: The main market segments include small families, medium families,
and large families or businesses. Each segment has water purifier products suitable for
the scale and needs of use.
 Income:
- Water purifier (Hoa Phat HWBR3B1021T hot and cold RO water purifier) with current
price 12.360.000 VND
- The market segment by income consists of decent middle- and middle-income families.
Products in this segment meet the needs of clean and safe water for different families.
 Psychologic segmentation:
 Social class: The Hoa Phat water purifier meets the needs of families with stable incomes
in the middle class.
 Lifestyle: Sastify the demands of consumers interested in health, convenience,
environmental protection.
 Personality characteristics: Aimed at customers interested in advanced technology,
aesthetics and design, as well as saving and environmental protection.
 Behavioral segmentation:
 Occasions:
- New installation: Customers buy Hoa Phat water purifier for new installation at home,
office or public place.
- Shopping for goods: Customers buy Hoa Phat water purifier during shopping occasions
such as holidays, Tet, Black Friday to enjoy incentives and discounts.
- Repair/upgrade: Customers who own Hoa Phat water purifiers buy spare parts,
replacement parts or upgrades to maintain and improve the performance of the water
purifier.
 Benefits sought:
- Personal market: Includes families, students/singles and seniors who need to filter water
at home to ensure clean and safe drinking water.
- Business market: Including offices, organizations, restaurants, cafes, hotels, schools and
medical facilities that need to provide clean drinking water for employees, customers and
patients.
- Public markets: Including parks, resorts, amusement parks, fitness and sports centers that
need to provide clean drinking water for visitors and customers.
 Attitude toward product:
- Market interest and high trust: Including customers who have learned and believed in the
quality and efficiency of Hoa Phat water purifier. They consider Hoa Phat water purifier
as a reliable solution to provide clean and safe drinking water.
- The market is interested and needs more information: This group of customers is
interested in Hoa Phat water purifier but needs more information to better understand the
product. They want to be provided with detailed information about the features,
technologies and benefits of Hoa Phat water purifier before deciding to buy.
- Uninterested or distrustful market: Includes customers who do not have interest or trust in
Hoa Phat water purifier. They may not be interested in using the product or have doubts
about its effectiveness or value.
4.2Target market selection
 To determine the target market, Hoa Phat electronics has based on a number of criteria:
affordability, consumer psychology, development potential.
 The target market of Hoa Phat electronics is families with decent middle and middle
incomes. This customer segment accounts for a large proportion of the electronics market
in Vietnam. This is a group of customers wishing to use quality electrical products at
reasonable prices.
 This group of customers has the following common characteristics:
- Affordability: Middle- and middle-income families are more likely to afford middle-
priced electrical products.
- Consumer psychology: Middle- and middle-income families are quite often concerned
about product quality, price and after-sales service.
- Development potential: The electronics market in Vietnam is experiencing high growth,
especially among middle- and middle-income customers.
4.3 Positioning
 Brand positioning map

Figure 6.
 Hoa Phat's water purifier product is positioned as a product that offers superior quality
and service compared to its competitors.
 When it comes to Hoa Phat, consumers immediately think of a long-standing brand with
products that meet national standards in terms of quality and outstanding features.
 Product brand differentiators:
 This is a long-standing quality brand of Vietnam. Established in 1992, after more than 30
years of construction and development, Hoa Phat brand has increasingly a solid position
in the domestic and international markets. The brand also receives awards and quality
certificates, and is highly regarded by consumers for its efficiency and reliability.
 Although the field of home appliances has only started operating in 2021, it has
impressed and attracted many customers interested and choosing to buy. In particular,
Hoa Phat water purifier is one of the most outstanding product lines because of its ability
to produce clean water rich in minerals, possessing modern design, integrating many
smart features and reasonable price.
 Hoa Phat induction hot and cold RO water purifier has passed rigorous tests, ensuring the
quality of water and products to consumers.
- Meet national standards of drinking water directly at the tap according to QCVN 6-
1:2020/BYT
- In accordance with national technical regulation QCVN 4:2009/BKHCN and amended
1:2016
- Water-containing materials meet national standards on hygiene and safety QCVN 12-3-
2011/BYT
 The company's overall strategy: Create relative products and services at lower prices.
 In 07/2023, Hoa Phat activates an integrated communication campaign to launch the
Water Purifier industry with the message "Hoa Phat Water Purification, more gives
more".
 Hoa Phat Refrigeration Company has launched Hoa Phat HWBR3B1021T hot and cold
RO water purifier.
- Compared to competitors such as Sunhouse or Karofi, the price is lower, but Hoa Phat
has launched a wide communication campaign about the quality of the new water
purifier.
- Hoa Phat water purifier also received many praise reviews in the magazine and also
surveys showed that Hoa Phat dealer also serves customers with better sales and
customer service experience than competitors.
 5. Marketing Mix
5.1 Product
5.1.1 Product Type
 Classified by durability and tangibility: Hoa Phat water purifiers are durable goods that
are used for a long time and last a long time.
 Classification by market-based: Hoa Phat water purifier is a consumer product purchased
by the finak consumer for the purpose of serving family health -> Hoa Phat purifier
belongs to the category of shopping products because it is household items with less
frequent and planned purchases, many buying attempts, many comparisons between
brands
5.1.2 Product Level
 Core Customer Value: Customers expect clean and safe water, remove dirt and improve
taste when using water.
 Actual product:
 Brand name: When looking at the product, customers can clearly see the words and Hoa
Phat logo, helping them easily identify the brand they want to use.
 Features:
 Effective filtration: purifies 99.99% of bacteria
 Provide purified water: Hydrogen and Alkaline mineral supplements are good for health
 Advanced technology: cooling and energy-saving technology, modern touch control
 Quality Level:
 Fuzzy Logic Technology
 Multi-layered safety with smart alerts
 Modern touch controls
 Powerful 10-level filtration system
 Design: Hoa Phat HWBR3B1021T RO water purifier is designed to be compact, modern
and easy to install.
 Packaging:
 Hoa Phat RO water purifier is usually packaged in a container made from hard carton
material or high quality plastic to ensure product safety during transportation.
 On the packaging, there may be pictures and information about the product, printed with
the logo and trademark of Hoa Phat.
 Augmented product:
 Warranty: RO water purifiers usually come with a warranty policy from the
manufacturer, usually from 1 to 5 years. During the warranty period, the manufacturer
will be responsible for repairing or replacing defective components free of charge.
 After-sales service: In addition to the warranty policy, RO water purifier supplier can
provide after-sales service such as periodic maintenance, filter replacement and other
components, water quality inspection after RO filtration stage.
 Product support: RO water purifier suppliers often provide technical advice and support
to answer questions and technical issues related to the product. This ensures users can use
the water purifier efficiently and safely.
 Credit: Payment can be made in many forms. Current payment methods include cash
payment, bank transfer, international money transfer system, and online payment.
 Delivery: The provider uses a third-party shipping service or its own delivery service to
deliver goods to customers.
5.1.3 Product decisions
Product attributes:
 High filtration efficiency: Hoa Phat water purifiers often use Ro filtration technology
(reverse osmosis) or a filter system combining Ro and other technologies such as UF
(microfiltration), Carbon Block (activated carbon filtration) to remove contaminants,
bacteria ...
 Diverse filtration capacities and rates
 Additional features: water quality control system, electronic control panel, deodorizing
filter, automatic washing system and automatic notification of filter replacement ...
Branding: Hoa Phat is on of the leading industrial manufacturing group in Vietnam.
Established in 1992, Hoa Phat has now become a reputable brand with 31 years of
experience.
Packaging:
 Ensure safety during transportation and handling.
 Use the right brand imagery and messaging to create identity and engagement with
customers.
 Environmental protection
 Research and assess the needs of the market and customers to choose the right type of
packaging.
Labelling:
 Reflect the image and brand values of Hoa Phat.
 Provide full information about the product: product name, filtration technology, filtration
performance, capacity ...
 Product labels may include instructions for use and warranty and return policies.
 Depending on the market and target customer, product labels can provide information in
many different languages to cater to a variety of users and international markets.
Product support services:
 Installation and use instructions
 Maintenance and repair
 Friendly, fast and efficient customer service
 Clear and fair warranty policy
 Training and technical support
5.1.4 Product mix
 Hoa Phat:
 Home appliances:
 Air conditioning
 Refrigerator
 Washer
 Water Purifier
 Air freshener
 Dishwasher
 Induction cooker
 Hood
 Super Speed Kettle
 Mad Rice Cooker
 Building materials
 Types of cast iron and steel (coiled steel, steel bar, special steel, billet, hot rolled coil)
 Types of steel pipes (black steel pipe, hot dip galvanized steel pipe, galvanized steel
pipe, large steel pipe, galvanized rolled corrugated iron)
 Color coated roll sheet - galvanized
 Agriculture
 Food for pigs, cows, goats, chickens, ducks, quails
 Pork, beef, chicken eggs
5.1.5 Product life cycle
Currently, Hoa Phat water purifier is in the saturation stage:
 Products: Improve quality, design, brand.
 Price: In line with competitors
 Distribution: Develop stronger distribution channels.
 Revenue: stable, slow growth

5.2 Price
5.2.1 Current price
The current price of the brand

Type of water purifier of Hoa Phat Price

3-function water purifier (hot, cold, cold) 9.450.000 VND - 13.550.000 VND

2-function water purifier (hot, cold) 10.890.000đ

Standing cabinet RO water purifier 7.190.000 VND - 7.990.000 VND

RO water purifier for undercarriage 5.860.000 VND - 6.490.000 VND

The current price of Hoa Phat's hot and cold RO water purifier HWBR3B1021T
product is 12,360,000 VND
 5.2.2 Factors influencing pricing
5.2.2.1 Internal factors
1. Overall marketing strategy
The overall marketing strategy influencing the pricing of Hoa Phat water purifiers.
For example, if Hoa Phat aims to increase its domestic water purifier market share, the
company will need to price its products more competitively than other competitors. On
the contrary, if Hoa Phat has the goal of increasing profits, the company will need to
price its products higher.
2. Marketing objectives
Marketing goals include goals for sales, profits, market share, etc., influencing the pricing
of Hoa Phat water purifiers.
For example, if Hoa Phat has a high sales target, the company will need to price its
products lower to attract more customers. On the contrary, if Hoa Phat has a high profit
target, the company will need to price its products higher.
3. Marketing mix
Hoa Phat's marketing mix includes advertising, promotion, sales activities,... influencing
the pricing of Hoa Phat water purifiers.
For example, if Hoa Phat has a large marketing budget, the company can price its
products higher to offset marketing costs. On the contrary, if Hoa Phat has a small
marketing budget, the company needs to price its products lower to compete with other
competitors.
4. Cost
- Material cost: Material cost is the most important factor affecting the price of Hoa Phat
water purifier.
- Production costs: Includes labor costs, transportation costs, management costs and other
costs related to the water purifier production process.
- Marketing and advertising costs, promotional activities.
5. Organizational considerations
Organizational factors including business size, business resources,... influence the pricing
of Hoa Phat water purifiers.
For example, if Hoa Phat is a large enterprise with abundant resources, the company can
price its products higher than small businesses. On the contrary, if Hoa Phat is a small
business with limited resources, then the company needs to price its products lower to
compete with large businesses.
 5.2.2.2 External factors
1. Types of market
The economic situation has an impact on product pricing. In the context of rising
inflation, businesses often tend to increase product prices to offset costs.
2. Demand
If prices reflect true values and meet consumer demand, demand levels can be high.
Conversely, if the price is higher than the market average price and there is no special
benefit, the level of demand may decrease.
3. Competitor’s price and product
Competitive level The Vietnamese water purifier market is increasingly fiercely
competitive. Major brands of water purifiers such as Karofi, Kangaroo, Sunhouse ,... is
also constantly launching new products at competitive prices.
4. Other external factors
 Economy: The economic situation affects the affordability of consumers. The
developed economy can increase the acceptability of high prices for water
purifiers.
 Dealer and Retailer Reaction: The reaction of dealers and retailers to the price
determines the success of water purifiers in the market. Their satisfaction can
affect product support and promotion.
 Government: Government policies and regulations, as well as taxes and other
strategies, can affect the pricing of water purifiers.
 Social Preoccupations: Demand for environmental protection and health products
can enhance demand. Society's interest in issues such as environmental protection
can reduce the impact of price on buying decisions.
5.2.3 Pricing strategy / price change strategy employed by the brand
Hoa Phat uses a product line pricing strategy. This strategy divides products into different
product lines, each with a different price point. This helps Hoa Phat Household
Electricity to meet the needs of many different customers.

Specifically, Hoa Phat Household Electrical divides water purifier products into 3
main product lines:
 Basic product line: This product line has a low price, meeting the basic needs
of consumers.
 High-end product line: This product line has a high price, meeting the needs of
high-end use of consumers.
 Special product line: This product line has the highest price, meeting the
special needs of consumers.
For example, the RO Hoa Phat HWS1B 1022 water purifier priced at VND 4,990,000
is a product of the basic product line. Hoa Phat HWBS3A 1021 hot and cold RO
water purifier priced at VND 7,990,000 is a product of the high-end product line. RO
water purifier integrated with Hoa Phat HWBS5A 1021 freezer priced at VND
15,990,000 is a product of a special product line.

The pricing strategy according to the product line has helped Hoa Phat Household
Electricity expand the market, attracting many different customers.

In addition, Hoa Phat Household Electricity has also used the strategy of changing
prices according to seasonality. This strategy is often applied during promotions and
discounts,... to attract customers and increase sales.

For example, during the Lunar New Year 2023, Hoa Phat Household Electricity has
applied a 20% discount promotion for all water purifier products. This promotion has
attracted a large number of customers to shop, helping Hoa Phat Household
Electricity increase sales.

The strategy of seasonal price changes has helped Hoa Phat Household Electricity
increase sales and affirm its position in the market.
5.3 Place

Figure 7. Marketing channel chart of Hoa Phat

 5.4 Promotion
5.4.1 Specific communication campaigns that the company use as an
illustration
In 07/2023, Hoa Phat activates an integrated communication campaign to launch the
water purifier industry. With the message "Hoa Phat Water Purifier – Wholeheartedly for
water, worthy of love", Hoa Phat wishes to convey a spirit of enthusiasm, striving to
bring intensive domestic water purification solutions to every Vietnamese family. Hoa
Phat pays special attention to product research and development, in order to provide
leading products, improve the quality of life, and gain the trust of customers.
5.4.2 Promotional tools used by the company
Advertising:
 Invest in billboards such as panels, posters, banners, light box signs,... In crowded places
such as on major streets, bus shelters, on bus bodies, taxis, in elevators,... so that the
product constantly appears in front of customers' eyes, reminding the product in their
minds.
 Advertisements on tv stations vtv3, vtv6, ... : The ad is 30 seconds long. The first image
appeared that experts are researching and developing national standard water purifiers
with smart filters and features to help filter clean water and then clean glasses of water to
families with the message "for the future, for the source of life, for loving full health",
"Hoa Phat water purifier – Wholeheartedly for water, worthy of love", in addition, TVCs
often appear in prime time)
Public Relations (PR):
 Build a quality brand image that provides top products to gain the trust of the public,
influence potential customers.
 Press conference and new product launch ceremony.
 Charity activities, sponsoring water purifiers for schools, children in highland areas lack
clean water to drink.
Sales promotion:
 Discounts on newly launched products
 Organize mini games with the reward of water purifiers or filters
5.4.3 Evaluation
5.4.3.1 Communication objectives
 In this communication campaign, Hoa Phat builds a reliable image and promotes brand
recognition with good quality products and services. They want customers and
communities to trust their brand.
 Hoa Phat also conducts a communication campaign on the importance of clean water for
children's development and family health. The communication message here belongs to
Rational Appeals.
5.4.3.2 Promotion mix strategies
 The business is making efforts to develop, expand its distribution network and
branding. In this communication campaign, communication coordination is done quite
 well. Hoa Phat's communication strategy in this campaign focuses on 2 communication
tools: advertising (TVC) and Public Relations (PR). These are two communication tools
with high mass reach. The use of TVC on television is a suitable option to reach a large
number of consumers. However, the TVC content of Hoa Phat water purifier is still quite
simple, without many highlights.
 The use of direct marketing through social media platforms is also a suitable
option. Online communication channels such as Facebook, Tiktok,.. have the ability to
reach a group of young, dynamic customers. However, Hoa Phat has not yet taken
advantage of the power of these communication channels.
5.4.3.3 Integration and relevance of used communication tools
 In terms of content: Hoa Phat's communication content in this campaign is very
good. The message is good, powerful, creating an impression of commitment, reliability
and the importance of clean water. TVC content on television focuses on showing the
quality and features of Hoa Phat and Hoa Phat focuses on the health of each
household. Hoa Phat also creates educational content and useful messages about the
benefits of water purifiers such as instructional videos and TVCs talking about the health
benefits of clean water. This helps build trust and create value for customers, while
creating an expert position in the field of water purifiers.
 In terms of form: Hoa Phat's communication form in this campaign is quite good
compared to the brand's communication goals. TVC on television is made with good
quality, clear, vivid picture and sound. Press conferences, charity programs, improve
brand awareness and build a good long-term image for businesses. Discounts on products
also attract attention, accelerating the act of purchase.
 In terms of coordination: Hoa Phat's communication tools in this campaign are quite
well coordinated. TVC on television is broadcast on major TV channels and also
regularly broadcast in prime time combined with large billboards in crowded places has
helped Hoa Phat reach a large number of consumers.

6. Marketing performance
6.1 Market performance
- According to Hoa Phat Group's 2022 annual report, revenue and sales of Hoa Phat water
purifiers in 2022 will reach VND 2,200 billion and 1.8 million products, respectively, up
50% and 100% compared to 2021. By the end of 2022, Hoa Phat has accounted for about
10% of the water purifier market share in Vietnam, becoming one of the leading water
purifier brands in this market.

- After 1 year of launching water purifier products, in 2023, water purifiers of Hoa Phat
home appliance company have been widely available on the supermarket system of Cho
Lon Dien May Xanh electronics, HC electronics, PICO electronics... facilitating
consumers to easily experience and shop for products
 - The main image and advertising film about the product are also conveyed on multiple
media platforms: television, radio, large billboards, bus advertising, LED elevator frame,
digital, communication at the point of sale,..
6.2 Customer performance
- Hoa Phat water purifiers are highly appreciated by customers for their quality,
durability and price and quality of customer service.

- According to a survey by Nielsen Vietnam Market Research Company, customer

satisfaction with Hoa Phat water purifiers in 2022 will reach 85%, higher than the
industry average of 75%. The factors most appreciated by customers are the quality of the
output water (90%), the durability of the product (87%) and the reasonable price (86%).

- The level of customer loyalty to Hoa Phat water purifier is also very high. According to
the survey, up to 90% of customers intend to buy Hoa Phat products in the future.

- The customer lifetime value (LTV) of Hoa Phat water purifier is also very
large. According to Nielsen Vietnam's estimate, the average LTV of a customer using
Hoa Phat water purifier is 10 million VND.

6.3 Brand performance

- The brand equity of Hoa Phat water purifier in 2022 is evaluated as very
positive. According to a report by Nielsen Vietnam Market Research Company, the brand
value of Hoa Phat water purifier is valued at 328 million USD, up 25% compared to
2021.

- The brand love of Hoa Phat water purifier is also highly appreciated. According to a
survey by Nielsen Vietnam Market Research Company, up to 80% of customers using
Hoa Phat water purifiers have positive feelings towards this brand.

7. Conclusion and reflection

7.1 Key issues
Positive aspects:
 Providing quality products with stable and reasonable prices compared to the general
market
 With the motto of putting consumer health as the most important thing, Hoa Phat
Electrical Appliances uses materials that are friendly to the environment and health.
 Increase revenue and stability in the Vietnamese market and create healthy competition.
 Contribute to the economic growth of the whole country.
Negative aspects:
 Lack of brand positioning:Hoa Phat Electronics is a strong brand in the steel field, but
when moving to the electronics field, the business still does not have a clear brand
 positioning. This makes customers still not realize that Hoa Phat Electronics is a
reputable and quality electronics retailer.
 Lack of communication strategy:Hoa Phat Dien May's communication strategy is still
ineffective and cannot reach many potential customers. Enterprises mainly focus on
communication on traditional channels such as newspapers, television,... but have not
effectively taken advantage of new communication channels such as social networks,
digital marketing,...
 Investment and development are not enough: Although Hoa Phat has established Hoa
Phat Electrical Appliances Joint Stock Company and started construction of the
Household Goods Production Center, development in this field is still ongoing. . It is
possible that Hoa Phat needs more time and investment to build production infrastructure
and develop high-quality home appliance products.
7.2 Recommendations
 Hoa Phat Electronics needs to build a clear brand positioning, suitable for the market and
target customers. Brands need to focus on core values such as product quality, service,
price, shopping experience,... to create a good impression with customers.
 Hoa Phat Electronics needs to diversify communication channels, build attractive
communication content, suitable for each channel. Businesses also need to focus on
optimizing websites, social networking sites,... to increase accessibility to customers.
 Hoa Phat needs to invest more to build production infrastructure and develop high-quality
household electrical products.
7.3 Propose lessons
 Clear brand positioning is an important factor for successful brand building. A clear
brand positioning will help businesses create a good impression with customers, attract
potential customers and improve competitiveness in the market.
 Diversifying communication channels is an effective way to reach more potential
customers. Businesses need to effectively take advantage of new communication
channels such as social networks, digital marketing,... to reach target customers.
 Flexible sales strategy is a way to meet the diverse needs of customers. Businesses need
to build a flexible, multi-channel sales strategy that meets the needs of customers
anywhere, anytime.

References
- Product - Hoa Phat Group: https://www.hoaphat.com.vn/san-pham
- Introduction - Hoa Phat Group: https://www.hoaphat.com.vn/gioi-thieu
- Hoa Phat Home Appliances: https://dienmay.hoaphat.com.vn
- Aggregate news website: https://cafef.vn/
- Introduction - Hoa Phat Group:
https://file.hoaphat.com.vn/hoaphat-com-vn/2023/04/annual-report-2022-hpg.pdf
- Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing.
Pearson Australia.
- Sách giáo trình truyền thông Marketing tích hợp (IMC), PGS.TS Trương Đình
Chiến, Hà Nội, 2020.

- Điện máy Xanh phân phối máy lọc nước Hòa Phát. Báo Sài Gòn giải phóng:
https://www.sggp.org.vn/dien-may-xanh-phan-phoi-may-loc-nuoc-hoa-phat-
post694031.html
- Hòa Phát activates the Communication Campaign to Launch the Water Purifier
Product: https://dienmay.hoaphat.com.vn/tin-tuc/tin-cong-ty/hoa-phat-kich-hoat-
chien-dich-truyen-thong-ra-mat-san-pham-may-loc-nuoc.html
- Competitors: https://m.cafef.vn/sau-2-thap-ky-ban-dieu-hoa-va-tu-dong-hoa-phat-
co-vu-khi-gi-khi-muon-thanh-vua-thiet-bi-gia-dung-vao-nam-2030-
20220930181347786.chn
- Hòa Phát aspires to billion-dollar revenue in the household appliances sector, with
new sales accounting for 7% of Panasonic and Electrolux, surpassed by Casper:
https://cafef.vn/hoa-phat-tham-vong-ty-do-mang-dien-may-gia-dung-khi-doanh-
thu-moi-bang-7-cua-panasonic-va-electrolux-bi-casper-vuot-mat-
20221008073711718.chn