Contents

Introduction...............................................................................................................................2
Target Audience (Segmentation).............................................................................................2
 Introduction
Vietnam Airlines is Vietnam's national airline and was established in April 1993. As
for Vietjet Air, this is the first low-cost private airline in Vietnam and officially went
into operation at the end of 2011. Vietjet Air and Vietnam Airlines are Vietnam's two
leading airlines. However, there is a price difference between the two airlines: Vietjet
Air is cheaper than Vietnam Airlines. This makes a difference in the targeting
strategy of the marketing mix between Vietjet Air and Vietnam Airlines. This article
will analyze the targeting strategies and marketing policies of each company. At the
same time, this article will give the reason why these policies were chosen. From
there, provide the most comprehensive overview of the differences in policies and
actions in cases where two companies have different target audiences.

1. Target Audience (Segmentation)

1.1. Identify the key routes the two airlines operated to

Vietjet Air and Vietnam Airlines both operate major domestic and international
routes. In particular, the main routes are often the main corridors between large or
central cities. However, Vietnam Airlines has more international flight networks,
aiming to promote international tourism and trade. Currently, this airline has flights to
Southeast Asia, East Asia, Europe, and Oceania. With 49 routes being exploited to
21 domestic destinations and 28 international destinations, in total, there are more
than 360 flights per day. In contrast, Vietjet Air continuously opens many new
domestic routes, connecting regions and provinces in Vietnam for tourists to travel
conveniently. Vietjet Air uses four routes to connect Hanoi, Da Nang, Ho Chi Minh
City, and Nha Trang, with 500 flights per week.

1.2. Segment the target audience

2.2.1. Vietnam Airlines

As analyzed in Section 2.1, Vietnam Airlines has many international flight networks.
Therefore, this company targets a group of people between the ages of 30 and 50
who live in urban areas, have high income levels, and work in business, project
investment, or politics. Besides, these people can be male or female, and most are
married. They want to enjoy many luxurious and modern services without worrying
about price. They also like to be respected by others and treated as someone of a
higher level. They are often serious, concerned about rituals, and prefer quiet spaces
to avoid disturbances.

2.2.2. Vietjet Air

Vietjet Air targets young people from 20 to 35 years old with lower economic
conditions. They can be urban or rural, with a low to moderate income. These people
are usually students or office workers. They often care more about price and do not
care much about service quality. They just need to achieve their goal of boarding
and completing the flight at the cheapest price. They often have an open, sociable
personality and like to chat on equal terms with flight attendants.

2.3. Compare and contrast the segmentation approaches used by Vietjet Air
and Vietnam Airlines

When compared, both airlines have completely different approaches to

segmentation. VietJet Air targets young, low-income people who often like to chat
peer-to-peer. Therefore, this airline has implemented many new and generous
communication strategies. They offered cheap prices along with the slogan "Like it,
fly it." In contrast, Vietnam Airlines targets middle-aged, high-income people who like
to speak like their superiors. This difference is understandable because young
people rarely have high-paying jobs but like to explore more, so they will often
consider price to save costs. At that time, they will naturally consider VietJet Air as
the most optimal choice. Middle-aged people often have a stable income and value
health and life more. With this mentality, they will choose airlines with high costs to
ensure safety, like Vietnam Airlines. To reach this target group, this airline has
implemented many traditional communication strategies and, at the same time,
constantly encourages its employees to have polite conversations and treat
customers as their superiors.

1. Product

Vietjet Air, from the beginning, has positioned itself as a "low-cost airline." In
contrast, Vietnam Airlines has positioned itself as "a large airline for people with high
incomes." Compared to VietNam Airlines, VietJet has been very successful in
positioning its brand in the eyes of potential Vietnamese customers to become the
airline that many Vietnamese people consider first when they need to travel by air.
With the proposed positioning strategy, Vietjet Air uses a popular aircraft line, Airbus,
to match the scale of customers it operates.

Although Vietnam Airlines' ticket prices are higher, the airline has the advantage of
spacious and comfortable aircraft space, high-quality services, luggage advantages,
and services for people with disabilities. disabled, people with limited mobility, etc.
While with VietJet Air, passengers will have to buy additional checked baggage and
meals. Some special services, such as oxygen tanks and taking pets on flights, are
not available.

On the other hand, Vietnam Airlines also invests in using three different aircraft lines:
ATR, Airbus, and Boeing, to meet more customer needs. ATR aircraft have 80 seats
and are the most compact size in the fleet. They are often used for short flights to
small airports such as Dien Bien, Quang Ngai, etc. The new Boeing 787-9
Dreamliner aircraft that the airline uses is a wide-body model with a luxurious interior
and outstanding performance that only Vietnam Airlines can operate.

In general, VietNam Airlines positions itself as a high-quality airline, and VietJet

positions itself as a low-cost airline. Because of this difference, VietNam Airlines'
product portfolio is larger than VietJet Air's. This is consistent with the different target
segments that these two airlines are aiming for.

2. Price

4.1. Vietjet Air

4.1.1. Price strategy

VietJet Air offers very cheap ticket prices compared to competitors in the
Vietnamese market, with domestic flight prices only ranging from 2 USD to 50 USD
depending on the length of the flight. With such low prices, this airline applies many
measures to optimize costs. Vietjet Air only operates one aircraft line, Airbus. At the
same time, for passengers on the flight, free accompanying luggage must not
exceed 7kg, removing free meals on the plane and converting them into services,
and passengers can pay separately depending on their needs. In addition, the airline
also applies a cheaper price strategy when flying a lot or registering for early flights
to retain and attract customers. This company also reduces airfare prices by selling
tickets online to minimize operating costs.
4.1.2. Analyze the reasons for applying the pricing strategy.

In its pricing strategy, Vietjet has used many cost-saving measures. This is
necessary to be able to offer cheap prices for one flight. Vietjet Air only operates one
type of aircraft, which is a fuselage line that can rotate many flights back and forth in
a day, thus helping to reduce operating costs and accommodation costs for the flight
crew, maximizing savings. cost of gasoline. Without the above measures, Vietjet
probably could not exist until now. The above actions are to ensure costs are
balanced, ensuring harmonious benefits for both Vietjet and customers.

4.2. Vietnam Airlines

4.2.1. Pricing strategy

With Vietnam Airlines, this airline applies a pricing strategy called "price skimming."
In this strategy, the airline charges the highest initial product price the customer will
pay and then lowers it over time. In addition, this airline will also regularly reduce
ticket prices so that customers feel like they are using high-priced services at a lower
cost.

4.2.2. Analyze the reasons for applying the pricing strategy.

The reason why Vietnam Airlines applies the above pricing strategy comes from
many reasons. Firstly, Vietnam Airlines wants the target audience to perceive this
airline as a high-end brand with high prices but good quality. Secondly, this company
wants to tap into the psychology of customers who want to use quality services at
cheaper prices than usual. In addition, implementing such a price reduction strategy
helps Vietnam Airlines compete better with low-cost airlines such as Vietjet Air. It
makes customers confused when choosing between a low-cost airline with lower
quality and a high-quality airline with reduced ticket prices.

3. Promotion

5.1. Vietjet AIr

Because Vietjet Air's target audience is young people, the airline's style of
implementing its promotion strategy is as fresh and liberal as the personalities of its
target audience. This company caused a stir among young people when performing
bikinis on sewing machines to mark its brand in Vietnam. Despite conflicting
opinions, the company's director affirmed that the VietJet Air brand represents
"creativity, modernity, and energy" and targets Vietnamese youth, so this is suitable.
Along with low ticket prices, the airline's brand recognition level sometimes reached
98%.

5.2. Vietnam AIrlines

Because Vietnam Airlines is a high-end airline, focusing on development in the

international market, it also implements an international promotion strategy. The
airline has participated in sponsoring many major events, such as the APEC summit,
the Miss Universe show, the Social Support Fund, etc. This helps create resonance
in the global community so this airline can reach further. There is a clear difference
in the promotion strategies of Vietjet Air and Vietnam Airlines. For customers who
are young people who love freedom, Vietjet Air does PR and advertising liberally. On
the contrary, Vietnam Airlines' target group is often difficult and older, so this airline
creates a more "serious" image. This is similar to the interests and profiles of their
target audiences.

4. Conclusion

Overall, there were significant differences in targeting between Vietnam Airlines and
Vietjet Air. This has also made their action strategies different. Vietjet Air targets
young audiences, so their marketing policies are also adjusted to suit the low prices
they offer, such as reducing services to compensate for ticket costs and operating a
single aircraft. This company also uses a liberal and dynamic promotion strategy. On
the contrary, Vietnam Airlines is in the high-end segment, so this airline belongs to
those with higher incomes. These days, people are often middle-aged. They are
often more serious and need to be approached in a more formal manner. Therefore,
the airline has continuously upgraded many different types of aircraft, developed
luxury services, and promoted media in a methodical way, focusing on culture and
dignity.

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