IV.

The Market 
A. Describe the market
1. Geographical region
California is a state in the west coast region of the United States. It is the most
populous and third-largest state in the US, with 39 million residents living within a
410,000-square-kilometer region. We want to concentrate on the Los Angeles
market here. Households in the Los Angeles region spend 15.7 percent of their
income on transportation, which is similar to the national average of 16.5 percent. In
contrast to the national average of 94.9 percent, 94.7 percent of the $10,681 in
yearly transportation expenses in Los Angeles were spent on purchasing and
keeping
personal cars.

Sources: Western Information Office of U.S Bureau of labor statistics

2. Forms of transportation and comunication available in Los Angeles 
a. Transportation
California's transportation system is complicated and dynamic. Even though the
state is recognized for its automotive culture and huge network of highways and
roads, it also has a diverse assortment of rail, sea, and air transportation. Several of
the biggest population centers in the state have extensive subway, light rail, and
commuter rail networks. Furthermore, due to the state's location on the West Coast
of the United States, several key ports in California handle freight exports from the
Pacific Rim and beyond. A variety of airports are also scattered across the state,
ranging from small general aviation airports to large international hubs like Los
Angeles International Airport and San Francisco International Airport. Nevertheless,
in a state with a population over 39 million, increasing population growth, various
topography, and unpredictable weather, that system
b. Communications
- In-person communication
- Phone communication techniques
- Communication methods
- Utilizing social media
- Email is a way to communicate.

3. Consumer buying habits

California consumers spending out spaces the nation 

Source: Burau of Economic analysis
a. Product-use patterns
Despite Californians having a higher per capita wealth than the national average,
they are less concerned with product design as long as it meets their needs. In 2019–
20, households in the metro areas of California (Los Angeles, San Diego, and San
Francisco) spent an average of, which was much more than the $62,188 per year
that American households spent on average.
b. Product feature preferences 
Households are most interested in investing in the following industries: housing,
transportation, food, personal insurance and pensions, entertainment, healthcare,
apparel and services, and cash contributions. Furthermore, stunning designs and
quality are significant factors that customers seek, and exceptional customer service
is another component that makes a difference and ensures the business's success.
c. Shopping habits
Beautiful, high-quality products are prioritized by LA customers, and product
packaging must reassure them. People frequently purchase products that are inside
their price range. For instance, if a product has a retail price of between 29 and 100
dollars, people typically pay between 50 and 60 dollars to purchase it. Show that
consumers are not overly concerned with the product's price.
In the US, customer service is unique in that, as long as you maintain the receipt,
you can swap or return the goods if you're unhappy with them or discover damage
after purchasing them. The sales team will inspect, analyze, and provide you with a
coupon if you damage it.
4. Distribution of the product 
a. Typical retail outlets 
Currently, all of VinFast's showrooms are listed in Vietnamese territory.
Additionally, VinFast is eagerly planning methods to enter the Asian market starting
in March 2022. Markets in North America and Europe.
5. Advertising and promotion 
a. Advertising media 
Electric car advertising that are frequently broadcast have precise, 
understandable, and clear content. Marketers specialize in the numerous advantages
and applications of electric vehicles. In order to provide a product that is simple to
understand, they frequently exclude convoluted or confusing jargon and instead
focus on vital features. Because of this, prospective customers become more curious
and transparent.
Electric vehicle marketers have also listed their advantages and sustainable future
trends due to the limitation that not everyone appears to be interested in them.
assisting customers in developing a clearer, more favorable perception of the goods.
Potential customers may also be generated as a result of social media or traditional
marketing activities. When the first curiosity has been piqued, you should satisfy it
by providing
b. Sales promotions customarily used 
When opening a car dealership where customers can test drive the vehicle.
When it comes to the test drive and if someone buys the car, marketers will share
information on social media.
For the first two years and every 50,000 kilometers, the vehicle would be
maintained for the customer. Additionally, be eligible for a 5% discount if paid in
full in cash.
6. Pricing strategy
0. Customary markups
Regarding VinFast's pricing approach, VinFast's target consumers are individuals
who desire high-quality cars at a reasonable price. VinFast has priced its goods
more than Korean and Japanese manufacturers, but lower than European
automobiles, based on this demand.
Depending on type of car, the price of a car would range from $40,000 to $70,000.
Until the automobile gains a positive reputation in the market, Alset will be sold for
 a shockingly low price, just about the value, with a gradual increase in price as the
model is upgraded.
b.  Types of discount available
American customers would receive free delivery along with cash discounts, service
discounts, free insurance, and other discounts.
If the battery is defective owing to the manufacturer, is damaged, or is less than 70%
charged, VinFast will also replace, repair, or maintain it at no cost to the customer.
The initial 12 months of battery life are free for all 25,000 Pioneer customers.
C. Market size
1. Overview the market
The North American electric vehicles market size was valued at USD 12.80 billion
in 2020, at USD 16.13 billion in 2021 and is expected to expand at a compound
annual growth rate (CAGR) of 37.2% from 2021 to 2028. In addition, some
advantages of electric vehicles over conventional vehicles in terms of cost will also
drive market growth during the forecast period. The drop in battery prices is also
another factor that is expected to create significant growth opportunities for
companies doing business in the market. The U.S. accounted for the largest revenue
share of over 70% in 2020 and is anticipated to continue its dominance over the
forecast period. The increasing demand from the logistics sector is expected to lead
to regional growth. In June 2020, the California Air Resources Board set electric
truck sales targets for manufacturers beginning in 2024. The rule is expected to
bring around 0.3 million electric trucks to California’s roads by 2035. Electric
vehicle sales in the U.S. had declined in 2019 and 2020 as the federal tax credit was
decreased for General Motors Company and Tesla.
2. Estimated industry sales for the planning year

Attribute Details

Market size value in 2021 USD 16.13 billion

Revenue forecast in 2026 USD 18.16 billion

 Growth Rate CAGR of ~2.4% from 2021 to 2026

Forecast period 2021 – 2026

Regional scope North America

Country scope U.S., Canada

3. Estimated sales for your company for the planning year

Based on product, the market has been segmented into:
Battery Electric Vehicles (BEV):
● The largest revenue share of over 75% in 2020
● The high revenue share is mainly attributable to the increasing environmental
awareness and benefits of BEV among end users.
● The average driving range of BEVs was about 350 km in 2020, up from 200
km in 2015.
Plug-in Hybrid Electric Vehicles (PHEV):
● The PHEV segment is estimated to expand at the highest CAGR of over 40%
in terms of revenue from 2021 to 2028.
● PHEVs are generally offered in larger vehicle segments such as electric
trucks and buses. ∙ The growing transportation and logistics industry is
expected to witness segmental growth over the forecast period.
● Moreover, companies such as Volkswagen Group are focusing on increasing
their plug-in electric car sales.
D. Positioning
1. Creative and technical
2. Driving range & max speed

∙VinFast driving range: Up to 500 km per repeat.

∙ Maximum speed: 150km/h. Some of the prominent players operating in the North
America electric vehicles market are:
∙ BYD Company Ltd.
∙ Daimler AG
∙ Ford Motor Company
∙ General Motors Company
∙ Lucid
∙ Mitsubishi Motors Corporation
⮚ Nissan Motor Company
∙ Tesla
 ∙ TOYOTA MOTOR CORPORATION
∙ Volkswagen AG
E. Government participation in the marketplace
1. Agencies that can help you
The U.S. Department of Transportation (DOT) is responsible for planning and
implementing HOV programs, including the low-emission and energy-efficient
vehicle criteria EPA established.
Details:
U.S. DEPARTMENT OF TRANSPORTATION
1200 New Jersey Avenue, SE
Washington, DC 20590
855-368-4200
DOT Customer Service Center: 202-366-4000
Website: https://www.transportation.gov/
2. Regulations you must follow
Most items being imported from Vietnam to the US are subject to a 0-25% import
tariff, depending on their category. However, certain items cannot be exported from
Vietnam or require special export permissions. For example, one cannot import
petroleum and oil products from Vietnam to the US. The Vietnamese government
bans their export. Vietnam is a country whose economy is growing by leaps and
bounds. They owe this growth in large part to investors who see the rise in the
consumer market and the increase in manufacturing because many businesses are
relocating to Vietnam to take advantage of cheaper labor and fewer regulations
regarding industry and commerce.

V. SOURCES OF INFORMATION
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⮚ How Much Does A Tesla Cost? (2022). Retrieved 11 January 2022, from
https://www.motor1.com/features/313677/how-much-is-a-tesla/
⮚ Rojas, F. (2022). Council Post: Eight Digital Marketing Lessons We Can
Learn From Tesla. Retrieved 11 January 2022, from
https://www.forbes.com/sites/forbesagencycouncil/2020/12/10/eight-digital-
marketing-lessons-we-can-learn-from-tesla/?sh=2164dbbf48c8
⮚ Tesla Motors Company's Distribution Channels | Free Essay Example. (2021).
Retrieved 11 January 2022, from https://studycorgi.com/tesla-motors-companys-
distribution-channels/
⮚ Tesla’s Marketing Strategies: How The Company Becomes Successful.
(2021). Retrieved 11 January 2022, from https://blog.avada.io/resources/tesla-
marketing-strategies.html
⮚ Tesla Internal Quality Checks 'Routinely' Reveal Defects In Model S And
Model X Cars: Report. (2022). Retrieved 11 January 2022, from
https://jalopnik.com/tesla-internal-quality-checks-routinely-reveal-defects-
1820842222#:~:text=Internal%20quality%20checks%20at%20Tesla%20have
%20%E2%80%9Croutinely%20revealed%E2%80%9D,All%20The%20Questions
%20Tesla%20Has%20To%20Answer%20Now