Rehau In Vietnam

REHAU IN VIETMAN

Strategies for an International Market Entry

P a p e r

University of Applied Sciences

Hochschule Hof

Faculty Economy

Studies of International Management

Submitted to:

Submitted by:

R. Escandón

Professor S. Wengler

Alfons-Goppel-Platz 1

D-95028 Hof

Hof, December 19th 2012

Table of Content

1 Introduction .................................................................................................................. 1

2 REHAU and its Product................................................................................................ 3

2.1 About REHAU............................................................................................... 3

2.2 Product Description........................................................................................ 3

3 The Economic Overview – The Macroeconomic Environment in Vietnam................. 8

3.1 Vietnam Market Treaties.................................................................................8

3.2 GDP and economic development................................................................... 8

3.3 Export and Import..........................................................................................10

3.4 Labour market ...............................................................................................11

3.5 Trade with Germany......................................................................................12

3.6 Infrastructure..................................................................................................13

3.7 Trade Barriers and Restrictions.....................................................................14

3.8 Corruption and Bribery .................................................................................16

3.9 Inflation and Exchange Rate......................................................................... 17

3.10 Conclusion ..................................................................................................18

4 The Microeconomic environment in Vietnam..............................................................20

4.1 Analysis of the Vietnamese market and the industry................................... 20

4.1.1 Growth Potential of the polymers market….................................. 20

4.1.2 Market for polymerized products in Vietnam................................ 21

4.2 Technical Standards in Vietnam – current and broadcast............................. 22

4.3 Buying Behaviour......................................................................................... 25

4.3.1 Growth Potential ........................................................................... 25

4.3.2 Dispersion of the Population.......................................................... 26

4.3.3 Purchasing power and economic importance of the different region………………………………………………………………….. 27

4.3.4 Characterization of the Buying Behavior in Vietnam ....................32

4.3.5 Attitude towards polymerized products in Vietnam.......................33

III

4.4 Distribution channels................................................................................................ 35

4.5 Cultural Aspects ...................................................................................................... 40

4.5.1 General Information ............................................................................................. 40

4.5.2 Differences to the German Business Culture….................................................... 41

4.6 Competitors ............................................................................................................. 42

4.6.1 Samsung................................................................................................................. 43

4.6.2 Sony ...................................................................................................................... 44

4.6.3 LG… ..................................................................................................................... 46

4.6.4 Philips ................................................................................................................... 46

4.6.5 Bang & Olufsen .....................................................................................................47

4.6.6 Miele ......................................................................................................................48

4.6.7 Conclusion ............................................................................................................ 49

4.7 Opportunities for Rehau in Vietnam........................................................................ 51

4.7.1 Airports…....................................................................................................................... 51

4.7.2 Hotels….......................................................................................................................... 51

4.8 SWOT Analysis........................................................................................................ 54

5 The Marketing Plan to enter the Brazilian market...................................................... 55

5.1 Strategies ..................................................................................................................55

5.1.1 Porter’s Generic Strategies….................................................................................55

5.1.2 Differentiation and positioning….......................................................................... 59

5.2 Target groups ........................................................................................................... 62

5.3 The Marketing Plan ................................................................................................. 65

5.3.1 Product................................................................................................................... 65

5.3.2 Placement............................................................................................................... 68

5.3.3 Price…................................................................................................................... 71

5.3.4 Promotion….......................................................................................................... 73

6 Final Recommendation.............................................................................................. 79

7 Bibliography ............................................................................................................... 81

1 Introduction

2 REHAU and its Product

2.1 About REHAU

Rehau is a german enterprise founded in 1948 by Helmut Wagner in the Bavarian town Rehau. The company is present in several European, American, African and Asian countries but is trying to keep on spreading; nevertheless this paper work will focus on the Vietnamese market entry.

Rehau started its activities since the beginning of the 50´s; manufacturing various polymerized products, developing gently its products range as well as expanding its presence around the world. In 1951 started manufacturing arm straps and sideboards for the automobile industry; then its first company expansion was in North America in 1959, opening a sales office in New York City. Nowadays REHAU is a leader provider for polymer-based solutions in construction, automotive and industry.

Since its founding, REHAU has grown through its own initiative to a worldwide operation. During the first decade, has established its business in Germany and Austria. This was followed by expansion throughout Europe, North America, South America, Africa, Asia and Australia. During the past 10 years, Rehau has developed a strong presence in Eastern Europe. Today, approximately 15,000 employees around the globe ensure the growth and success of REHAU. In more than 170 locations on six continents, the independent, privately held business builds close relationships with the market and its customers.

The enterprise´s philosophy is focused on attending long-term objectives through smart solutions to challenges such as energy efficiency, renewable energy, water management, mobility and future living.

2.2 PRODUCT DESCRIPTION

One of the most important steps in this work is to make a deeper analysis of the enterprise products at first, in order to predict if the Rehau´s ambition to enter the Vietnamese market is convenient.

Rehau splits its activities in four major industrial areas, these are the following:

-Construction -Industrial

-Forniture -Automotive & Mobility

In these areas, Rehau has made huge efforts since the beginning of its inception, attending to specific customer’s needs, taking advantage of the materials such as polymers properties. With the use of new technology and innovative ideas, Rehau always tries

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