TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH TP HỒ CHÍ

MINH
KHOA KINH TẾ

PRODUCT MANAGEMENT
Topic: Analyzing Industry and Competitors
of Household

Lecturer: Nguyễn Đức Công

Class: A17

Name’s Group: Nicetry

Full name and Student ID:
1. Nguyễn Ngọc Quỳnh Như - 205045006
2. Nguyễn Hoàng Anh - 205016689
3. Nguyễn Thị Ngọc Ngân - 215018858
4. Phạm Hùng Thuận - 215019076

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 Table of Contents
I. ABOUT SUNHOUSE..........................................................................................

1. GENERAL INFORMATION.......................................................................................................4
2. SUNHOUSE'S FIELDS AND OPERATIONAL CHARACTERISTICS ACTIVITIES:.............................................6
2.1 FIELD OF ACTIVITY CHARACTERISTICS:............................................................................................6
2.2 OPERATIONAL CHARACTERISTICS.................................................................................................6
2.3 MAIN PRODUCT LINE............................................................................................................... 7

II. MARKET SHARE...........................................................................................

1.MARKET SHARE OF HOME APPLIANCES INDUSTRY IN VIETNAM.....................................................10

2. MARKET POSITION..........................................................................................................13
3. DEVELOPMENT POTENTIAL OF ELECTRIC GRILLS IN VIETNAM...................................................14

III. COMPETITORS............................................................................................

1. COMPETITOR ENVIRONMENT...............................................................................................15
1.1 MACRO ENVIRONMENT: PESTLE.............................................................................................15
1.2 MICRO ENVIRONMENT: FIVE FORCES ANALYZE................................................................17
2.DIRECT COMPETITOR OF SUNHOUSE GROUP............................................................................20
3. SWOT ANALYZE...............................................................................................................23

IV. SUNHOUSE’S POSITION.............................................................................

1. COMPETITIVE ADVANTAGE...................................................................................................25
2. TARGET CUSTOMER......................................................................................................25
2.1. CUSTOMER'S MOTIVATION TO PURCHASE ELECTRIC HOUSEHOLD...................................................25
2.2 AMS (ATTAINABLE MARKET SHARE).........................................................................................26
2.3 THE POTENTIAL GROUPS OF CUSTOMERS....................................................................................27
3. CASH FLOW.....................................................................................................................30

V BUSINESS STRATEGY...................................................................................

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1. PRICING STRATEGY............................................................................................................31
2. PRODUCT STRATEGY...........................................................................................................32
3. DISTRIBUTION STRATEGY.....................................................................................................33

VI. MARKETING STRATEGY..........................................................................

1. SUNHOUSE'S MARKETING STRATEGY FOR PRODUCTS..................................................................33

2. SUNHOUSE'S MARKETING STRATEGY ON PRICE (PRICE)...............................................................34
3. SUNHOUSE'S MARKETING STRATEGY ON DISTRIBUTION (PLACE)...................................................34
4. SUNHOUSE'S MARKETING STRATEGY ON PROMOTION................................................................34

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 SUNHOUSE GROUP JOINT STOCK COMPANY

I. About Sunhouse
SUNHOUSE Group Joint Stock Company, formerly known as Phu Thang Co., Ltd.,
was established on May 22, 2000. In 2004, SUNHOUSE entered into a joint venture
with SUNHOUSE Co., Ltd. Korea, established SUNHOUSE Vietnam Co., Ltd. and
built a joint venture factory to produce household appliances, applying advanced
cold Anodized technology in ASEAN region. In 2010, SUNHOUSE was officially
named SUNHOUSE Group Gate Company, investing in many diverse fields
(household goods, electrical appliances, kitchen equipment, electrical equipment.
After 20 years of establishment and development, SUNHOUSE Group has joined the
trillion-dollar enterprise group with an average annual growth of 25-
30%.SUNHOUSE currently owns a cluster of 8 production factories on a total area of
100,000m2 with more than 2,500 employees. employees, providing essential
household items and kitchen equipment, and becoming a familiar brand in the minds
of Vietnamese consumers.
With a network of more than 60,000 points of sale nationwide, SUNHOUSE is
currently manufacturing and trading more than 600 groups of household products,
household electrical appliances, kitchen equipment, water purifiers, civil electricity,
industrial electricity... weak, convenient for life. Products of SUNHOUSE Group have
been present and are a close friend to every Vietnamese family and have been
present in foreign markets such as Cambodia, Laos, Myanmar, Egypt, Turkey, Hong
Kong, Brazil and Vietnam. Canada….
Products of SunHouse company are manufactured on modern lines and technology
of Korea, meeting the maximum demand for aesthetics and convenience compared
to existing household products on the market. With breakthrough products in
technology such as: Non-stick pan, stainless steel pot set, aluminum pot set, Anod
pot set... SunHouse brand has received the trust of Vietnamese consumers. In
particular, thanks to the business motto of "success and development with
customers" through providing genuine quality products, implementing the best
consulting services, warranty and after-sales services, has brought Sunhoue
becoming a leading brand in the field of manufacturing and distributing high-end
home appliances and kitchens in Vietnam.

1. General information
Company name: SUNHOUSE Group Joint Stock Company
Short name: Sunhouse Group JSC
Charter capital: 390 billion VND
Tax code: 0101976905

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Scope activities: Producing and trading in household appliances, electrical
appliances, gas stoves, electric cables and electrical equipment
Head office: 12th floor, Vinaconex 9 building, Pham Hung, Nam Tu Liem, Hanoi
Director (Representative): Mr. Nguyen Xuan Phu
Phone: 043 7366696Email: info@sunhouse.com.vn
Website: http://sunhouse.com.vn/

Organizational structure

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2. Sunhouse's fields and operational characteristics activities:

2.1 Field of activity characteristics:

Sunhouse is a pioneer enterprise in the field of manufacturing and trading household
appliances, electrical appliances, gas stoves, electric cables and electrical
equipment with breakthrough products in production technology such as:
+ Non-stick pan
+ High quality stainless steel pot set
+ Aluminum pot set
+ Rice cooker
+ High-class rice cooker
+ Infrared stove + Bathroom heating light
+ New generation RO water purifier
+ Mist fan
+ Blender
+ Hot and cold water plant
+ Electric fan
+ Fan heater
+ Electric heating
+ Especially now the company is producing a high-class product, which is an
anodized pot set with the most advanced cold Anodized technology in the world and
the Anodized line is currently leading in Southeast Asia.

2.2 Operational characteristics

With a team of skilled workers who have been trained by Korean experts and a team
of office staff and more than 900 skilled workers, Sunhouse branded home
appliances and electrical appliances have affirmed their position. leading its industry
and is trusted by many domestic and foreign customers for the quality as well as the
richness and variety of products.

2.3 Main product line

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Houseware
SUNHOUSE pot is a typical household product of this brand and is used cold
Anodized technology to bring many outstanding advantages such as: High durability,
good scratch resistance, resistance to force, especially non-reflective react with
chemicals. In addition, the SUNHOUSE pot also helps to shorten the cooking time by
its fast heat transfer.
- Electric Appliances
+ Rice cooker: The SUNHOUSE rice cooker impresses users not only with
a delicious bowl of rice with three-dimensional warming technology, but also with the
ability to cook many different modes and functions ̣(such as cooking rice, stewing
soup, boiling meat,...). In particular, due to it has the large heat tray, the
power consumption is minimized, helping the rice to cook faster.

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+ Air fryer: SUNHOUSE oil-free fryer with the most durable, high-grade materials
that are heat-resistant, resistant to scratches, and with an extremely luxurious and
modern design, the oil-free fryer from the SUNHOUSE brand is trusted by many
people.
At the same time, the SUNHOUSE oil-free fryer can also reduce up to 80% of grease
and fat in food , saving cooking time, the ability to automatically shut off when
overheating,... and has been recognized. is safe for the health of consumers.

+ Infrared cooker: work by heating the electric cores inside, thereby generating
heat, transmitting it to the stovetop, heating the bottom of the pot and cooking food.
Possessing a super-durable, heat-resistant glass surface design and a convenient,
youthful appearance with a modern touch panel, there are 5 different cooking modes
such as: Bone stew, soup, BBQ, fried, hot pot and many other useful features.
+ Blender: is made of high-quality PC plastic material, ensuring safety when using,
without worrying about abrasion after use. In addition to the multi-function ability to
grind many foods with strong performance, the SUNHOUSE blender is also
equipped with a super sharp stainless steel blade, serving to puree food without

worrying about rust.

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+ Other household products: In addition to the above products, SUNHOUSE also
produces many other household products and has achieved many successes such
as: electric pressure cooker, induction cooker, electric hot pot, oven, iron,…
- Electronic refrigeration
+ RO water purifier: SUNHOUSE water purifier owns a 10- stage filtration system,
with RO membrane to help remove impurities, bacteria and ensure completely pure
output water. In addition, SUNHOUSE water purifiers meet extremely strict quality
control procedures and obtain certification from the NSF organization.

+ One/two - way air conditioner: Attracting users by elegant and sophisticated

design suitable for all interior spaces, SUNHOUSE air conditioner can also meet all
needs of use in all conditions. climate thanks to 2 modes of cooling and heating. This
is a product that helps to take care of the family atmosphere, bringing a cool and

comfortable living space.

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- Kitchen equipment
Kitchen appliances from SUNHOUSE are always leading the Vietnamese market
with a wide range of products such as: Gas stoves, electric stoves, hoods,... These
are products that SUNHOUSE has integrated into many industries. Modern,
advanced technology and meet strict standards according to the production line from
Korea. Therefore, you can rest assured to use to help everyone both save costs and
ensure safety

II. Market share

1.Market share of home appliances industry in Vietnam
According to data from the Ministry of Industry and Trade, currently consumption in
household goods accounts for 9% of the total personal consumption package, among
11 main product groups, the household goods group ranks fourth in terms of
consumption. The market size of the domestic household goods industry is estimated
at 12.5 - 13 billion USD, growing by more than 10% per year

Specifically, consumption for household appliances aged 18-45 accounted for 57-60%
of total market spending. At the same time, people's income is currently increasing
(over 2,000 USD/person/year), leading to changes in demand for more quality and
designs.

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Besides, the percentage of consumers interested in Made in Vietnam products is
increasing. According to statistics, in the supermarket system of Vietnam, 85-95% are
Vietnamese brands such as Happy cook, Sunhouse, Son Ha, Tan A, Dien Quang,
which are increasingly dominating the market thanks to technology and prices. city,
wide distribution system.

In addition, the rural market has shifted from using homemade household items to
using familiar Vietnamese brands. Nielsen's research results show that in the first
quarter of 2017, the growth rate of shopping in rural areas reached 12.4%, while in
urban areas only reached 6.5%.
In which, the purchase rate of common products increased by 40% and high-end
products increased by 38.5%. This shows that rural consumers will no longer be loyal
to popular and cheap products.

Topping the list of "big guys" in the home appliance market is Kangaroo, with
revenue in 2016 amounting to about VND 2,000 billion, mainly coming from high-
end water purifiers.

Following is Sunhouse with revenue of about 1,800 billion VND. However, if only
sales of household products are counted, Sunhouse still holds the largest market share,
with about 10% of the market in the period 2010 - 2016. This is also an enterprise
with a stable growth rate at a high level. average at 30% per year.

A little-known enterprise like Elmich (a household appliance group from the Czech
Republic that started to penetrate the Vietnamese market in 2011) also announced an
annual revenue growth of 25 - 30%.

Currently, domestic brands of household goods are accounting for 80% of the
household goods market share, 20% of which belong to foreign brands. However,
80% of the market share of enterprises in Vietnam, mainly products of Chinese origin
through "shaking hands" with domestic enterprises such as Sunhouse, Kangaroo ...

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With such a potential market, of course, there will be fierce competition between
firms in the industry. In the past 2 years, large and traditional enterprises in the
country are also having to compete fiercely with a series of "small but powerful"
enterprises such as VnTech, Asanzo, and Korihome.
Total revenue
● Revenue in the Household Appliances segment is projected to reach
US$632.50m in 2022.
● Revenue is expected to show an annual growth rate (CAGR 2022-2025) of
23.66%, resulting in a projected market volume of US$1,196.00m by 2025.
● With a projected market volume of US$102,300.00m in 2022, most revenue is
generated in China.
● In the Household Appliances segment, the number of users is expected to
amount to 36.4m users by 2025.
● User penetration will be 28.2% in 2022 and is expected to hit 36.0% by 2025.
● The average revenue per user (ARPU) is expected to amount to US$22.64.

History of development in Vietnam

Current status, trends and development potential of electric grills in Vietnam. Most
housewives in Vietnam do not have much time to cook and clean, although they
always want to cook nutritious food for their family by themselves. Young,
educated and tech-savvy consumers tend to be open to new technology, and
investing in a modern, long-lasting, family-friendly cooktop is a natural choice
Pursue a green lifestyle, live healthy, load healthy nutrients for the body but still
want to eat delicious.
Technology development
The main reasons for choosing to eat barbecue: "Variety", "Ease of eating", "Taste"
and "Enjoyment"
High-income customers care more about product variety and convenience

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2. Market position

There are 4 Genres of Market Position:

The first one is Market leader. All of them represent high quality and high price.
Bosch has the highest market share in the US with more than 50%. In Vietnam,
Samsung, Sony and LGs have brand awareness of about 70%.

Market leader: LGs, Bosch, Electrolux, Samsung, Elmich, Hafele,...

Currently, household appliances brands account for 80% of domestic products,

20% of which belong to foreign brands. They are in the group of challengers &
followers.

Market Challengers: Sunhouse group, Kangaroo, Goldsun, Philips, VnTech,

Asanzo, Korihome,...

Market Followers: Benny, Gowell, Beko and Galanz...

Market Nichers: Fable, Quince & Cook, Pangea Home,...

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3. Development potential of electric grills in Vietnam

Evaluation of the development potential of electric grills based on Maslow's

hierarchy of needs

The first one is Basic needs: The electric grill can cook delicious baked goods to
meet the needs of energy supply.

The second one is Safety needs: Gas stoves often produce toxic gasses that affect
users' health, are not good for physical health when breathing a lot of smoke, not
only that, using a coal or gas stove is not safe to use. With an electric grill, you do
not have to worry about unsafe issues such as fire and explosion, in addition, it also
limits the generation of smoke from materials such as charcoal => very safe to use.

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 The third one is Social needs: Helping you enter the party faster when you don't
have to wait too long to be able to enjoy delicious food with high heat capacity as
well as many convenient cooking modes and functions.

The last one is Aesthetic needs: Most electric grills are an integral part of a modern
home which is not only something that makes cooking easier but is also seen as a
decoration that makes the whole house eye-catching. Think about it, a modern
house will never have to buy firewood to cook in the house.
⇒ A product that meets 3-4 levels of the demand pyramid can be considered a
potential product with few competitors.

III. Competitors
1. Competitor Environment

1.1 Macro Environment: PESTLE

Policy:

 Household electrical appliances with VAT reduced to 8%.

 Government import tax may affect Sunhouse's production cost and selling
price The Vietnamese government is pursuing a green and inclusive recovery
process
 Economic and financial policies of the Government may affect the production,
business and investment activities of the company.

Economic:

85-95% of consumers interested in “Made in Vietnam” products is increasing, such

as: Happy cook, Kangaroo, Sunhouse,…Besides, some agreements (TPP, FTA)
have opened up opportunities and challenges for the Vietnamese manufacturing
industry, including the household industry for exporting with tax incentives, credit
incentives, insurance....The survey results show that, compared to the global
average, Vietnamese consumers have a stronger preference for domestic products,
with 17% of consumers stating that they only buy consumer goods. domestic
consumption, and 59% said they mostly buy domestic consumer goods (compared
to global averages of 11% and 54%). Even before the pandemic, nearly two-thirds of

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Vietnamese consumers (69%) were willing to pay more for quality and safe products,
far exceeding the global average of 49%. This trend is expected to grow even
stronger, as consumers increasingly seek reassurance in the wake of the pandemic.

Sociocultural:

Vietnamese people tend to live in groups, gathering and eating seems to be a

culture. After the Covid 19 pandemic, people need to eat clean together and
especially at home, the electric grill became an indispensable tool at meals.
According to the research, the group of 18 - 45 years old consumers is the largest
target group accounting for 60% of the total consumption of household electrical
goods.
Trends in the use of smart and energy-saving devices can affect the company's
product consumption.
Technology:

 In the period of digital transformation, AI technology is pre-programmed in

devices and technologies. advanced 3D hot air circulation technology or
Sunhouse applied cold Anodized, most of Vietnam's leading companies
Asanzo, Sunhouse, Kangaroo take source equipment from the OEM company
(Dat Quang Company).
 Technological improvements in production and design can help Sunhouse
better compete in the market.
 The development of information technology and the Internet may affect
Sunhouse's sales and advertising channels

Environmental:

Because of the pollution, Limiting the use of coal or gas while cooking also
contributes to environmental protection. Modern household appliances are
following the trend of using batteries and electricity, green energy. Besides,
After the Covid-19 pandemic, according to a survey of the newspaper
"Doanhnhansaigon.com", in 2021, 48% of Vietnamese people care about their
health. So, Electric Grill can help for minimizing toxicity by traditional ways of
grilling food directly with charcoal. The possibility of carcinogenicity is due to
the fact that when grilling with charcoal or wood, the fat melts, then falls and
reacts with oxygen and some substances in the smoke (due to oxidation with

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 high temperature conditions) to produce PAHs. (Polycyclic aromatic
hydrocarbons (PAHs - Polycyclic Aromatic Hydrocarbons) this is a carcinogen.

Legal:

All household brands in VN Must strictly execute all the rules of Vietnamese
technical regulations announced by the Ministry of Science and Technology:
Vietnamese standards TCVN 5699-1:2010 National - Household and similar electrical
appliances – Safety. There were 19 types of electrical and electronic products
managed for electromagnetic compatibility in Vietnamese technical regulations.

Regulations on consumer protection and product quality may affect Sunhouse's

production process and product quality control.

Food safety regulations can also affect the company's production process.

Patent and copyright may affect Sunhouse's development of new or innovative

products in the culinary field.

International trade regulations and free trade agreements can affect a company's
export and business plans.

1.2 Micro Environment: Five forces analyze

Pressure from Customer:   

Sunhouse’s customers are divided into 2 main groups:
 Consumer market: Buying goods for personal consumption
Households (In main provinces and cities)
Officials at work (In main provinces and cities)
 Dealer market: Buy goods and resell for profit
Industrial customers, factories & offices, supermarkets, agents

Consumers today are very interested in using high technology to not only be
convenient but also protect family health and save time. In addition, customers also

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consider other factors such as durability, usage, aesthetics, breakthrough, and after-
sales service. Of course, reputable brands will always be placed as the first choice.

People who play a role in purchasing decisions: Women

Consult from: Husband, colleagues, friends, sellers, internet, advertising

Here is some feature for making decisions and choosing to buy Sunhouse products of
customers:
The product group of:
 + Water purification equipment: Technology
 + Kitchen equipment: Product durability
 + Electronic device: : Energy saving and safety

Customer’s monthly income: over $7 million

Marital status: recently married, planning to marry, married with a child, ...
Demand: Desire for products for family activities

Competitive strength in the industry:

There are many competitors in the home appliance manufacturing and trading industry
such as LG, Samsung, Electrolux, etc. However, Sunhouse has a competitive
advantage because its product prices are lower than its competitors. .

Supplier negotiating power:

Sunhouse can be affected by the prices of input materials, especially the prices of
electronic components and metals. These suppliers have high bargaining power and
can increase the price of input materials. However, in addition to the influence of raw
material costs, Sunhouse is not under too much pressure on supply because they are
their own manufacturer, they can completely control all development issues born

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Client's negotiating power:
Customers have high negotiating power for Sunhouse because the company's products
have many competitors. Customers may switch to a competitor's product if Sunhouse
does not provide the product with sufficient quality or the product cost is high.

Strength of substitutes:
Substitute products, such as those of competitors, can be a risk for Sunhouse. If the
company's products do not meet customer needs or the product costs are higher than
competitors, customers may switch to competitors' products.

Strengths of potential competitors:

There are many potential competitors that can set foot in the home appliance
manufacturing and trading industry. Sunhouse needs to be careful in positioning its
brand to deal with the emergence of potential competitors.
Sunhouse substitutes depend on the specific product category, however, here are some
typical substitutes:
Replacement products for washing machines: LG, Samsung, Panasonic, Toshiba,
Electrolux,...
Replacement products for refrigerators: LG, Samsung, Panasonic, Toshiba,
Electrolux,...
Replacement products for water purifiers: Kangaroo, Karofi, Coway, Nano, Vietnam
Tien, ..
Replacement products for water heaters: Ariston, Ferroli, Bosch, Centon, Malloca, ..
These substitute products may be equivalent or similar product brands in terms of
features, quality and price. However, customers can choose to buy these products if
Sunhouse does not meet their needs or the price of Sunhouse's products is higher than
that of alternatives.

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2.Direct Competitor of Sunhouse Group
KANGAROO INTERNATIONAL JOINT VENTURE COMPANY
Kangaroo (Viet Australia Refrigeration Equipment Joint Stock Company) was
established in 2003 with the participation of:
 Shareholders: Nguyen Thanh Phuong - Chairman of the Board of Directors of
Kangaroo (5.88%), Le Xuan Hoan - General Director of Kangaroo (4.9%), Mai
Thi Sen and other shareholders (remaining)
 More than 2,000 employees across Vietnam with nearly 40,000 business
locations, 8 domestic and foreign branches
 2 factories in Vietnam, 2 research and application centers
 Headquarter: No. 1 Dao Duy Anh Street, Phuong Mai Ward, Dong Da District,
Hanoi City, Vietnam
 Web URL: https://kangaroo.vn/
 The working apparatus of the Kangaroo company is depicted below:

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 Figure 8: Kangaroo company’s working apparatus

Criteria are put on top: “Không đối đầu mà luôn đi trước đón đầu”
Kangaroo always wants each member, partner, and customer to receive the
corresponding values when contributing to the prosperity of Kangaroo including
existing values, social status as well as other human values.
KANGAROO INTERNATIONAL JOINT VENTURE COMPANY is a part of the
Manufacture of domestic appliances industry. Headquartered in Hanoi with more than
2,000 employees nationwide, Kangaroo maintains a system of nearly 40,000 business
points, 8 domestic and foreign branches, 2 factories in Vietnam and 2 research and
application centers, providing the market with nearly 700 product models.

Kangaroo’s aim is to become a high-ranking international corporation in the region

that creates high-quality products which will bring great use to the society.

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Slogen: “Kangaroo - Bringing happiness to all families”

Kangaroo electric grill

Kangaroo electric grill is a product with a high reputation, popular in the market.
Consumers can easily find products at many famous household stores or
supermarkets.

Material of the grill

Most of Kangaroo’s electric grill products are made of durable materials, safe to use
and non-toxic to health. Besides, the tray that comes into contact with food is made of
super durable alloy and covered with a high-quality non-stick coating on top.
Therefore, during the cooking process, this material is not denatured and does not
release toxins into the food. Furthermore, they are resistant to heat, making cooking
convenient and cleaning easy.

Price
On the market, Kangaroo has a lot of different grill products with different prices.
Depending on the purpose of use as well as economic conditions. Usually, a Kangaroo
electric grill costs about 400,000 – 1,200,000 VND.

Currently, owning one Kangaroo electric grill is not too difficult. However, you
should choose places with good warranties and incentives. You can buy electric grills
at electronics supermarkets, websites, or e-commerce sites like Shopee, Lazada, Tiki,
etc.

Top 3 most trusted Kangaroo electric grills

- Kangaroo grill KG198H
- Kangaroo electric grill KG699G 2000W
- Kangaroo electric grill KG95

Market segmentation

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Target Customer: Households, Officials in Major Cities
Country: Vietnam
Gender: All
Age: 25 - 40
Income: From 7.000.000 VND/month
Psychology of Target Customer:
Love the convenience, modernity & time saving of products
Household products are no longer just for use, but also show
responsibility, qualifications, class, taste, quality of life…
Paying attention to the ease of use & after-sales service

3. SWOT Analyze

STRENGTHS:

Rich and diverse products: Sunhouse provides more than 1000 product codes
in areas such as:
+ Household appliances: Anodized pot set, non-stick pan, aluminum pot,
pressure cooker...
+ Household electrical appliances: Rice cookers, electric pressure cookers,
oil-free fryers...
+ Electronics – Refrigeration: Air conditioners, air filters, home water purifiers
+ Kitchen equipment: range hood, double induction cooker, infrared induction
cooker...
+ Kitchen utensils: Food storage box, cooking utensils, cleaning kit
+ Industrial equipment: Electrical cables, medium voltage cabinets, low
voltage cabinets...
+ Power cable

Wide distribution network

A distribution network with more than 60,000 points of sale in 63 provinces
and cities helps Sunhouse reach most people across the country, including
remote areas.
Modern machinery, access to high technology in production
In 2000, when the production of non-stick pans was still limited, especially with
unstable quality and unsafe health for consumers, Sunhouse entered into a
joint venture and applied advanced technology. Korea to launch thousands of

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non-stick pans that are safe, durable and suitable for the needs of Vietnamese
consumers. In 2005, Sunhouse continued to bring the most advanced cold
anodizing technology in Southeast Asia to Vietnam and launched durable
aluminum pots with more beautiful designs than traditional aluminum pots.
After that, Sunhouse factory continued to develop and produce many other
products such as rice cookers, electric stoves, super kettles, water purifiers...

WEAKNESSES:

- Internal information shows that a technology company has not yet

applied technology to the organization and management in a
reasonable and logical manner. And about the product, there is no
difference and exclusivity in the product. For example: Heating
technology with 5-level heat bar and automatic shutdown when
overheating.
- Despite having good quality, Sunhouse's products are quite expensive
compared to the income of Vietnamese people. This has become a big
obstacle for Sunhouse when entering markets in poor mountainous and
rural areas. The preference for cheap prices makes consumers prone to
buying poor quality and counterfeit products of Sunhouse in the market.
- Sunhouse's products are diverse, rich and target a wide range of
customers from housewives, male householders who prefer technology
equipment or units with demand for civil electricity...

OPPORTUNITIES:

From all the detailed analysis above, we see that: there are many
opportunities for the electric grill industry in general as well as Sunhouse
group: Few major competitors in the same market position. In addition,
Products suitable for the Green Life or Modern Life that is a need of today's
society. According to the general trend, people like having meals together but
they also want to save time in cooking. As you know, technology is constantly
evolving, the home appliances industry is growing. Finally, the government

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signs trade agreements to easily exchange goods with countries around the
world (tax free, expand import and export opportunities).

THREATS:

Every industry has an alternative and because of the impact of external

factors, challenges arise: Products with limited distribution systems. Strong
and large competitor brands, there are few big guys, but the big guys hold
a lot of market share and always come up with new products, creating
trends for customers so customers change attitudes easily about
competitor brands. Then, trends in the industry are constantly changing.

IV. Sunhouse’s position

1. Competitive advantage
Sunhouse with more than 20 years of operation has had a certain foothold in
the Vietnamese market. With the consumer trend of Vietnamese people
increasingly preferring "Vietnamese goods, high quality", Sunhouse has more
and more opportunities to compete with foreign electronics firms. For domestic
electrical appliances, there is almost no competitor that can compare with
Sunhouse, because they already have a certain reputation, moreover, their
scale and advanced technologies confirm their position. position in this
industry. In addition, they have a wide distribution system along with their own
production capacity, they can completely timely supply to their distributors
nationwide.

2. TARGET CUSTOMER

2.1. Customer's Motivation to purchase electric household.

Most of the time, they want to own a convenient, compact, and easy-to-
clean cooking tool. Save time: A survey from Made.com found that during
the two previous years of the pandemic, 64% of consumers have decided
to invest in new home appliances in terms of the design and quality.

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According to a market survey by The Conference Board® and Nielsen
(2018), their own health, along with the well-being and happiness of
parents and children, are in the Top 5 biggest concerns of Vietnamese
people:

88% of Vietnamese carefully read the health information related to the

products they use.

74% carefully researched the health information provided.

This trend is also evident in the food and household goods industry, with
factors that directly affect users' heath.

Coal grilling and gas stoves will produce gases (CO gas and Methanol
gas) that are harmful to the environment and respiratory system,
especially in an enclosed space. On the contrary, the electric grill is very
environmentally friendly because it does not emit harmful gases, only
produces "organic smoke" when baking food.

Moreover, the safety is also guaranteed, food safety (food is cooked to a

moderate degree and can be adjusted, limiting uncontrollable blackening),
life safety (limiting burns due to burning coal blisters on people when
grilling, or gas leakage and explosion problems when using gas stoves,
coal stoves, alcohol stoves).

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2.2 AMS (Attainable market share)

Figure 11: Household Market Share

The household industry in Vietnam is being considered as a potential
industry to develop as every family is interested in. In which, according to
the survey and report of the household industry in Vietnam market,
Kangaroo ranked first in the industry with a revenue of 2000 billion, most of
which came from water purifiers. However, if considering only home
appliances, the top is still Sunhouse with a revenue of 1,800 billion,
equivalent to 11% of the total piece of cake in Vietnam's household
industry. The rest come from other firms from abroad.

2.3 The potential groups of customers

 “Partier”:
A group of partiers who love barbecue, engrossed in meeting friends and
gathering with relatives. They have a tendency to catch up with the latest
trends and want to own modern technology devices with appealing designs.
 “Delicious - convenient - affordable"
Their requirements about the taste, convenience, and price of the product are
at the most basic level due to their limited budget. 

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  “Quality comes first”
This is a group of customers who prioritize the product quality: safety,
durability, convenience, affordability.
 “Standard Group”
This is the group that converges the needs of all mentioned customer groups
above. Partiers who care about the safety, durability, convenience, and
environmentally friendly equipment.

Figure 9: Target customer

Describe:
 Age: 25-35 years old. According to a research at Quora.com source, at this
age, people tend to prefer to gather with family, friends, especially on
weekends and holidays, etc. The idea that “building a family is more important
than being successful in a career” by age accounted for 79%. (according to
survey britishcouncil.vn).

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  Income: 10-19 million is the average income of Vietnamese people who are
25-35 years old, quite good so that it is affordable for everyone to buy
themselves a grill that is both compact in terms of area and convenient for
cooking.
 Characteristic: affectionate, sociable, dynamic, extroverted, enthusiastic.
 Lifestyle: Those people lead a dynamic lifestyle, are likely to gather with their
family and friends to do a lot of collective and entertaining activities. They also
enjoy every meal at home with their dearest and nearest eating. Besides, the
trend of "Green" life is one of their concerns in daily activities.
 Location: Major cities in Viet Nam such as Ho Chi Minh, Da Nang, Ha Noi, Hai
Phong,... Those are densely populated areas where the needs of meeting, dining
and partying are much higher than the rest.

Table 1: Buying journey of that group

Awareness Consideration Intention Acquisition

Although
Acquiring Consumer considers intending to
a Modern They are aware that the idea or partial or acquire, there Consumer acquires
Energy cooking with modern total replacement of may be factors the relevant devices
Cooking energy is a possibility existing cooking that delay or based on their choices
Product regime. prevent the
acquisition

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 Initial skepticism? Will it be too Are there any I need it
Do I trust of the source expensive to legal issues? I can wait for it
of the information? purchase How long might Is this a priority?
Is the awareness from Do I have the it last? Is the decision maker
more than one source? upfront money? What guarantees agreed?
Prejudice about fuel Can I get credit does it come Is the household
Consumers’ thoughts and feelings

Knowledge of others Will it be expensive with? agreeing with this

use of similar to run? Where might I get purchase?
Will it be safe? What will my friends it repairs? Can I live with the
Will the food taste and family think of Will homehelp be community reaction?
alright? us? able to use it? (Is the purchase legal)
Worth looking at it What will the
further community think of
us?
Experience Service/ Advocacy End of Life/
enhancement renewal/upgrade
Acquiring Consumer tells
The device has to be
a Modern Consumer may their friends and
Consumer experiences disposed of, or
Energy require after sales family of their
the device(s) upgraded, or a new
Cooking support experiences
device purchased.
Product (good or bad)

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 I am pleased by its I have to stick to the I want to tell Wanting to get rid of
performance warranty others to get it when not broken
I get praise for how I can just get it prestige Wanting to upgrade
Consumers’ thoughts and feelings

quickly repaired anywhere to better version

I cook I don’t need to do I don’t care about
I am pleased with the service of the eWaste
cleanliness appliance I care about recycling
I am disappointed with Would like to and eWaste
performance upgrade pots and
I am disappointed with pans
functionality Would like to
I will not use it much. upgrade utensils
Would like a newer
model

3. Cash flow
1. Revenue: According to the financial statement for 2021, Sunhouse's total net
revenue reached VND 4.831 billion, up 10% compared to the previous year.
2. Profit: Sunhouse's profit after tax reached VND 341 billion in 2021, up 17%
compared to the previous year.
3. Profit margin: Sunhouse's net profit margin in 2021 reached 7.1%, up from
the previous year (6.6%). This is an important indicator to evaluate the
company's business performance.
4. Assets: Sunhouse's total assets in 2021 are VND 2,713 billion, an increase of
18% compared to the previous year.
5. Liabilities: Sunhouse's liabilities increased by 23% over the previous year, to
VND1,304 billion. However, the ratio of liabilities to total assets of the
company remains at 48%, relatively stable.
6. P/E ratio: Sunhouse's P/E (Price-to-Earnings) ratio is around 13.6. This is a
popular metric used to gauge the value of a stock, often compared with

31
 companies in the same industry or with the average P/E of the market as a
whole.

V Business strategy
1. Pricing strategy
Sunhouse's pricing strategy focuses on providing high quality products at a more
competitive price than competitors. Sunhouse often applies promotions, discounts and
discounts to regular customers to attract and retain customers. At the same time,
Sunhouse also focuses on improving the quality of products and services to increase
value for customers. With the popularization strategy, Sunhouse has achieved certain
achievements today, so how do they do it?
In order to reduce product costs, Sunhouse focuses on mastering technology and
production lines. In 2010, Sunhouse established the first water purifier line to serve
the research of product features and feasibility when investing in new products. By
2019, Sunhouse's factory has completed its production process and can reach a
capacity of 200,000 products a year. Enterprises also have plans to improve
productivity and expand production scale. Only production autonomy can manage the
cost problem and meet the needs of the majority of customers.
In the first stage, Sunhouse approached users with a pricing strategy. They minimize
the functions, focus on the important core features a water purifier product needs;
enterprises penetrate the market with a price level suitable for the majority of
customers, from urban to rural areas. Of course, this strategy is only suitable for the
first stage.
Currently, Sunhouse has become one of the leading brands in the market, so it is
eligible to invest in research and production. Sunhouse has stepped out of the comfort
zone and has made many more innovations to meet the diverse needs of consumers.
Compared to developed countries in the household electrical industry such as Korea
and the US, Vietnam is really still in the late stage, so Sunhouse's team is constantly
learning from countries that are ahead in communication programs. save on

32
technology. This is the goal and important task of the Research and Development
Center for Water Purification at Sunhouse in the next 5 years.

They also determined that the investment budget for R&D in the next period would be
many times higher because Sunhouse was able to be proactive in producing almost
90% of product components, so the conditions for research and product improvement
would be higher. Simpler. Thanks to the investment in the previous years as well as
the clear direction for the future, we can confidently develop a different new
technology, mastering the trend.

2. Product strategy
Because of being able to master production technology, Sunhouse has aimed to
diversify products. The proof is that now, they have more than 12 types of product
items. With each type, they develop more sub-types with different functions. For
example, a household pot with an ultra titanium sunhouse non-stick pot, a 1-layer
stainless steel pot with a bottom, etc. Of course, all of their products apply the most
advanced technology. Typically anodized technology. SunHouse's Anod pot set is the
most modern typical product in Asean, certified for industrial design protection in the
US, Japan, Korea, China, Laos, Myanmar, Cambodia and Vietnam. This is a proof of
production and business capacity and is the basis for SunHouse to build trust with
domestic and international partners and customers. Besides, in order to meet the
maximum demand for high-end household electrical products at a reasonable cost to
Vietnamese consumers, SunHouse also imports components and assembles as well as
imports CBU items. Household electrical appliances originating from Korea and
Japan…

3. Distribution strategy
Currently, Sunhouse has more than 2,000 distribution points across the country, plus
being self-sufficient in supply, they can completely adjust the price, source of raw
materials as well as production technology to have a suitable price for each object.
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specific customers they want to target. Therefore, it will be easier for them to build a
wide distribution network, thereby making it easier for them to reach their target
customers. The following is the distribution model of Sunhouse

VI. Marketing strategy

1. Sunhouse's marketing strategy for products
 Firstly, Sunhouse focuses on the production and distribution of high-
quality household products with a variety of models and features.
Sunhouse not only focuses on basic products such as gas stoves,
electric stoves, microwave ovens, rice cookers, but also expands to
produce a variety of other household products such as air purifiers,
vacuum cleaners, hair dryer, washing machine, etc. The diversification
of products helps Sunhouse to meet the needs of many different
customers, from ordinary consumers to customers who have high
demand for products. more level.
 Secondly, Sunhouse continuously updates new products and improves
existing products. Sunhouse always puts the needs of customers first
and continuously researches and develops new products to meet the
increasingly diverse and complex needs of customers. This helps
Sunhouse make a difference and increase competitiveness in the
market
 Third, Sunhouse also creates special products, aimed at special
customer groups and has unique needs. For example, Sunhouse has
launched products such as negative gas stoves, induction cookers,
ovens, .. with many preeminent features and luxurious designs aimed at
customers who have demand for high-end products. than.

2. Sunhouse's marketing strategy on price (Price)

 Firstly, Sunhouse focuses on providing good quality products at
reasonable prices. Sunhouse offers products with average prices but
still ensures quality, features, durability and safety for users. This helps

34
 Sunhouse attract a large customer base, especially those who want to
buy household products at affordable prices.
 Second, Sunhouse has a flexible pricing strategy, adjusting prices in
different phases at different times. This helps Sunhouse meet the needs
of the market, in order to maintain and improve its market share. For
example, during the holidays, Sunhouse often has discounts,
promotions, and gifts to attract consumers.
 Third, Sunhouse also applies a product diversification strategy to
increase value and compete in the market. Sunhouse constantly
updates new models and designs for its products and launches more
advanced product lines with higher prices to meet the needs of
customers with better economic conditions. This helps Sunhouse
increase revenue and increase brand value.

3. Sunhouse's marketing strategy on distribution (Place)

Sunhouse has a direct distribution system including official stores and
warranty centers. As a result, Sunhouse can control the quality of its products
from start to finish, from production to distribution and warranty, helping to
ensure product quality and customer confidence. At the same time, Sunhouse
also provides customer support services such as product consulting and
maintenance, enhancing customer satisfaction and trust in the brand.

4. Sunhouse's marketing strategy on promotion

Sunhouse's promotion strategy is one of the important factors to help this
brand gain recognition and growth in the market. Sunhouse has built an
overall promotion strategy including many advertising, promotion,
communication and customer interaction activities, helping to promote
recognition and increase customers' trust in the brand.
In addition, Sunhouse also focuses on organizing promotions to attract
customers. These programs include price incentives, gifts and other attractive
rewards. This helps Sunhouse attract the attention and interest of customers,
thereby increasing sales and increasing access to potential customers.
Sunhouse also pays special attention to interacting with customers through
social media channels and other online activities. Sunhouse creates useful
content, product information, answers customers' questions and interacts with
them through these channels. This helps Sunhouse create closeness and
strengthen relationships with customers, thereby creating loyalty and
increasing repurchase ability.

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In addition, Sunhouse also needs to pay special attention to improving the
quality of customer support services, to enhance customer satisfaction and
loyalty to the brand. Sunhouse needs to offer attractive promotions, provide
quality customer support services and respond quickly to customer requests
to build customer trust and loyalty to the brand.

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