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…...................................................................................................................

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