33 Opportunities Potential customers According to TradingEconomics nd it

33 opportunities potential customers according to

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3.3 Opportunities: _Potential customers: According to TradingEconomics (n.d.), it reported that the number of residents in urban areas such as Ho Chi Minh City has gone up nearly 34.000. Besides, Vietnamese income is continually climbing, with 33 million of the middle class in 2020 (VOV Online Newspaper, 2018). The boom of urban Vietnamese and their higher income really helps
Dior extend its target market. When people’s income is greater, they will not decline the expensive cost of Dior lip balm. __Increasing sales: Vietnamese females have been adapting modern life so that they are able to graphs of current trend of beauty products in global market (Jennifer 2016). There is also a study by Nielsen shows that 56% of Vietnamese said that these big brands are more reliable than those small’s (Vietnam Economic Times 2017). The sudden growth of Vietnamese’s awareness of international brands is an golden opportunity for Dior to ensure its robust brand to customers and competitors, and then increase sales and profit in future. 3.4 Threats: _Inflation: The higher demand for consuming international brands in cosmetic sector leads to the inflation in Vietnam market. Theoretically, inflation happens means that companies will increase their product cost. Currently, Dior Lip Glow price is already costly in Vietnam market. Under any circumstance, Dior would not able to compete with other exclusive brands, but their prices are lower. Otherwise, if Dior applies the more affordable price, its revenue could be lost. Overall, inflation is a threat for Dior and the company should plan some strategies and take immediate actions. _Counterfeit products: Due to the power of technology, on Vietnamese market, duplicate products have been introduced with the lower price to attract customers ( Nguyen 2018). Some companies may adopt high technologies to design products completely resembling with others from renowned brands, such as Secret Key. Consequently, this is a risk which has affected directly to the reputation of Dior in terms of the high-quality product and the long-term customer relationships as well as the operation of company. Dior should observe all competitors and technology industry to make its products differentiated. PART 4 MARKETING STRATEGIES: 4.1 Market Segmentation: a. Geographic segmentation: Dior’s lip balm is designed for exclusive Vietnam people due to the highly-expensive cost. Dior focuses on selling in urban cities like HCMC and Ha Noi as the income there is relatively high. According to the survey, the monthly salary in Ho Chi Minh city is the highest one comparing to other city and 38 percent higher than the whole country’s salary. Besides, Hanoi is on the fifth line in the list of the highest monthly salary in Viet Nam (VietNamNews, 2018). b. Demographic segmentation : *Gender: Fundamentally, Dior’s products are made for both men and women, yet Dior Lip Balm is concentrating on woman. Following the survey, “44% of Vietnamese women usually wearing makeup in which 24% women wear makeup every day.” (Jennipher 2016). Modern females need to be confident in appearance and Dior understands its customers.

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