Business Entrepreneurship Vietnamese Eyeglass Industry

Question: Describe about the Business Entrepreneurship for Vietnamese Eyeglass Industry. Answer: Marketing segment Market niche and market share The brand is targeting small niche segment in Vietnamese eyeglass industry (Chaffey and Smith, 2013). It has been inferred that less than 5% of the eyeglass market in Vietnam consists of readymade reading glasses. However, the prospect in the specific segment is considerably high. Per year, the brand can expect sales of 7 million. Thus, the market with readymade reading spectacles would be its niche market. The customers are looking for the eyeglasses that are available in the domestic markets and at an affordable range (Eroglu et al. 2012). Moreover, besides the above aspects the customers are looking for the products that are comfortable at eyes. The above three aspects tend to influence customers decisions. Hong Cao of 49 years had been interested to purchase PROV Ltds products due to its affordable price and high quality range. Quynh-Anh Lam of 53 years has purchased the products due to its availability in the domestic retail shops, easy to wear and has been used specifically for the house hold activities (Red River Optical, 2016). Competitive analysis The present brands operating in the Vietnam market have become the primary retail manufacturer and distributors in the reading glass segment. However, 85% to 95% of the manufactures have focussed on the sunglass and prescriptive glass business (Red River Optical, 2016). Therefore, the businesses are competition with the products that are already available in the market and losing out its scope from capturing the market with its readymade glasses (Fuentes, 2013). The Vietnam market is fragmented with sunglass and prescribed glass products. All the manufacturers are competing in the similar segment, where the possibility of high growth is very less. However, PROV Ltd has find out a niche segment where it would offer readymade glasses to the customers. The competition of the brand would very comparatively less. Vietnamese manufacturing brands lack satisfactory technology and therefore the qualities of current products are relatively less than RROV Ltds proposed standards (Red River Optical, 2016). The rival brands are unable to understand that the market of traditional sunglasses and prescribed glasses has gone into saturation. Marketing strategy In the urban areas, the brand strategized to use the sales agents to sell readymade glasses to the non optical retail stores (Ketchen and Hult, 2011). It would use its mobile units and vans stocked with glasses to distribute in the local factories. The profit generated from urban sales will subsidise distribution in the rural places where the demand of reading glasses are greater. The population residing in the urban and pre urban areas would be targeted initially. The government employees would be targeted latter. Initially, with the support of the sales agent team, the brand would distribute its products in the urban localities. Secondly, the brand would create relationships with eye clinics and NGOs to distribute its products in the rural areas. Thirdly, PROV Ltd will sell glass to Government and then the products would be re-sold to the government employee suffering out of presbyopia (Red River Optical, 2016). The products would be produced out of wooden veneer, metal injected plastic frame in Gold, black and silver. It would be scratch resistant, slim and have a recyclable carrying case and spring-action hinge on glass. The brand would create a relationship with Ho Chi Minh City Eye Institute to achieve credibility in the eyes of its prospects. Pricing policy The competitors offer product to the no optical retailer at 54,000, where as PROV Ltd can reduce the rage up to 36,000 (Red River Optical, 2016). The price for factory workers would be same. Significant incentives would be provided to Vision angels. The brand can earn $180 per glass if it managed to sell 15 glasses per month. The competitors place its products at $3 and PROV Ltd places its products at $2.50. Advertising plan Promotions Price ($) Year 1 Year 2 Year 3 Point of Purchase Display 175 7098 24,537 Other marketing activities 6,816 28,701 37,830 Local Newspaper Ads Billboards Radio Ads Painted Mobile Units In-factory posters Posters in public places T-shirts and Bags Village Meetings Village Bank Group Meetings Posters in workplace References: Chaffey, D. and Smith, Pr. (2013) Emarketing excellence: Planning and optimizing your digital marketing. 4th edn. London, United Kingdom: Taylor and Francis. Eroglu, C., Williams, B.D. and Waller, M.A. (2012) The backroom effect in retail operations, Production and Operations Management, 22(4), pp. 915923. Fuentes, C. (2013) Green Materialities: Marketing and the Socio-material construction of green products, Business Strategy and the Environment, 23(2), pp. 105116. Ketchen, D.J. and Hult, G.T.M. (2011) Marketing and organization theory: Opportunities for synergy, Journal of the Academy of Marketing Science, 39(4), pp. 481483. Red River Optical (2016) Red River Optical: Affordable reading glasses for Vietnam. Available at: file:///C:/Users/User/Downloads/Red_River_Optical_Business_Plan_1117.pdf (Accessed: 5 December 2016).