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Topic: Analyze The Market Segmentation of Rang Dong

Rang Dong is a lighting company in Vietnam that segments its market in several ways: 1. Geographically between urban and rural areas in Vietnam and 40 other countries. 2. Demographically based on age, occupation, and income level to target people ages 14-60 across different jobs and incomes. 3. Based on psychographic and behavioral factors like lifestyle, benefits sought, and personality. The company identifies attractive segments in the profitable and accessible northern Vietnam market. It employs a concentrated targeting strategy, focusing on a small segment to gain a strong position. Rang Dong combines market understanding with its strengths in brand, price, and research to differentiate its LED lighting against competitors.

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Nguyễn Thùy Linh
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328 views8 pages

Topic: Analyze The Market Segmentation of Rang Dong

Rang Dong is a lighting company in Vietnam that segments its market in several ways: 1. Geographically between urban and rural areas in Vietnam and 40 other countries. 2. Demographically based on age, occupation, and income level to target people ages 14-60 across different jobs and incomes. 3. Based on psychographic and behavioral factors like lifestyle, benefits sought, and personality. The company identifies attractive segments in the profitable and accessible northern Vietnam market. It employs a concentrated targeting strategy, focusing on a small segment to gain a strong position. Rang Dong combines market understanding with its strengths in brand, price, and research to differentiate its LED lighting against competitors.

Uploaded by

Nguyễn Thùy Linh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Topic: Analyze the market segmentation of Rang Dong

Group 9:
Nguyễn Lan Anh
Nguyễn Hiền Trang
Đinh Thanh Tùng
Hoàng Thị Thúy Hằng
Nguyễn Việt Hoàng

I: Introduction of the company

Rang Dong has its own Lighting Research and development Center (LRDC)

▸ Established in April, 2011

▸ Breakthrough in science and technology orientation, aiming the company towards


sustainable development

▸ First Vietnam’s dedicated and interdisciplinary research facility of lighting devices

Business lines:

▸ Producing, trading in lights, electrical appliance and materials, lighting equipment,


glass products and vacuum flasks.

▸ Services of technical science and technology transfer

▸ Direct export and import

▸ Consulting and designing civil and industrial lighting systems (excluding word design)

▸ Repairing and installing civil and industrial lighting systems

▸ Commercial advertising services


▸ Goods transport services

▸ Slogan: DON’T SAVE LIGHT, SAVE ENERGY

Vision: Rang Dong JSC always strives to be the local leading manufacturer of light sources
and lighting equipments

Mission: Rang Dong JSC is committed to offer diversified products with high quality and
effective lighting solutions for the people livings and the society

II. Explain how the company segment its markets

1.Geographic
Region: through Viet Nam
Both Urban and Rural
- LED bulb, LED tube, LED luminaire: suitable for urban citzen
- Fluorescent bulb: mainly used by rural people
- CNC Agriculture Lighting: this product is becoming more and
more popular with farmers
- Smartlighting: new products, compatible with new and high
class constructions such as luxury apartments, hotels,
restaurants, etc.
- Vacuum flask: low capacity vacuum is suitable for urban
consumer
2. Demographic
Suitable for people in all ages and all jobs, with different income. 
- Age: about 14-60
- Occupation: Deversified such as Farmers, Business, Doctors, Teachers…
3.Psychographics segmentation
Lifestyle:
• Pupil & students: desk lamp
• Office worker: bulb, vacuum flask
• Rich people: smartlighting system
• Farmers/ rural consumers: CNC Agriculture Lighting, Fluorescent bulb
4. Behavioral:
Benefits: Most of them expect benefits such as: Simple appearance,new and updated feature,
energy-saving and reasonably priced
Personality: Rang Dong products is not bound to any personality because they serves daily
use
III.Explain how the company segment international markets:
Geographic: 40 countries in the world included rurals and urbans of each country such as
Australia, India…
Each of country: Rural and Urban
Other variables:
- Age: about 14 – 60
- Reasons to buy
School lighting, Office buildings, Healthcare premises, Industrial
buildings, Retail and supermarkets Home, Lighting for hi tech agriculture

IV. Discuss the effective segmentation of Rang Dong

- Measurable:
In 2017, the Aurora's sales reached 11.3%, the increase rate 3,270 in comparison to the year
2016. Budget reached 300.7 billion increase 6.9% compared to 2016. Profits made reaching
270.7 billion, an increase of 43.3% compared to 2016. The average income of thousands of
workers each, reaching 12.9 million, up 8% compared to 2016.

- Accessible
Since Rang Dong have more than 7000 agent and retail shops in 63 provinces and cities
nationwide. It is easy for the firm to access to the customers with this thick density stores
- Differentiable:

For the domestic market Rang Dong concentrates on traditional products such as: lightning
bulb, Glass refill, Compact lamp and so on

-Actionable:
According to financial report of 2017, during the first 9-month, Rang Dong reach 176 billion
VND of profit before taxes, which is 35% more than the last year. And 85% of the revenue
comes from domestic market while 15% left is fromexport

V. Explain how the company identify attractive market segments and choose a
market-targeting strategy. Which strategy (undifferentiated, differentiated,
concentrated and micromarketing targeting strategies) is the best for the
company?

1, How the company identify attractive market segments?


Attractive market segments:  when companies indentify attractive market segments they
should consider the following factors.
 Offers solid current or long-term profit potential for your business.
 Companies typically consider the various segment options they have to market to and
may target one or multiple markets depending on how much money they have
available to invest in marketing.
As a result, Rang Dong chooses the Northern Viet Nam as their main market segment thanks
to:
 Northern Viet Nam is the market segment can mobilize the company capability
 Northern Viet Nam is the market segment which are profitable to the company
2,  Which strategy is the best for the company?
Best strategy: Concentrated
Rang Dong, with its strengths in quality and price, is one of the leading manufacturers in
Vietnam of LED lighting, system consulting and green lighting solutions and thermos. Rang
Dong should follow the strategy of concentration. Since, this marketing strategy chooses to
pursue a large part of one or several small markets instead of a small portion of the big
market. Through centralized marketing, businesses will gain a solid position in the small
market by understanding the needs - wants - demand of the customer group in that market. In
addition, companies will benefit from the specialization of production and distribution of
products (high return on investment). However, this form of marketing is also potentially
risky, as potential customers may change their minds or other businesses may enter and
compete in small market segments.
VI. Explain how the company combine its understanding of the market with its
internal capabilities.
SWOT

STRENGTHS

-Good brand trusted by users

-national consumption system

-research and development

-Competitive price WITH INTERNATIONAL BRANDS

WEAKNESSES

-The central and southern markets have developed slowly

-Sales and customer care are weak in some regions

-The research and analysis of the market is weak and subjective

-not mastered the LED technology


OPPORTUNITIES

-suitable price for Vietnamese people

-Campaign from 2010 Vietnamese people prefer to use vietnamese products

-Research and development of LEDs

THREATS

-LED technology is expensive compared to traditional lighting technology

-Low-priced, low-quality LED lighting products from China undermine consumer


confidence

VII. Discuss how the company differentiate and position its product for
maximum competitive advantage in the marketplace.
a.Choose product: LED Light
And the market: Viet Nam
-we choose to analyse LED light in Domestic market since LED lighting in recent years has
becomes a very potential segment due to the demand of the market, Rang Dong is believed to
position its product LED as national product when LED lighting is using to replace normal
lighting bulbs since it economizes energy

b. Market Where we analyze Led Light is National Procduct


c.Positioning map
-In Vietnamese’s light bulb market, there are three segments of competitors: Chinesse
products, Vietnamese products have Rang Dong and Dien Quang and Phillips represents for
imported products. But we only analyze Rang Dong and Dien Quang because they are also
Vietnamese Product.
-Compared Dien Quang product, Rang Dong’s LED bulb have better quality, much better
like Brighter and have longer lifespan. This is because Rang Dong applied high technology
to produce their products and
- About Distribution, Both Dien Quang product and Rang Dong wilely distribute through
Viet Nam

 Rang Dong is determined to continue with human resource and scientific and
technologicalevelopment for better application in production and business
 Rang Dong strives for the No.1 unit of Vietnam in manufacturing LED, system
consulting and green lighting solutions

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