Sunhouse – one of the brands in the kitchen appliance industry with thousands of product codes has brought Vietnamese consumers many high quality products at affordable prices. Behind Sunhouse’s success must be the right business and marketing strategies. Let’s analyze and learn about Sunhouse’s marketing strategy in the article below.
1. Overview of Sunhouse
Sunhouse Group Joint Stock Company – formerly Phu Thang Company Limited, was established in 2000. After 20 years of establishment and development, Sunhouse currently owns 8 factories with a total area of 100,000m2, accompanied by That is a network of 60,000 points of sale across 63 provinces and cities with 1,000 product codes from household goods, household electrical appliances, refrigeration electronics, lighting equipment, industrial electricity… to meet consumer needs.
In addition to the Vietnamese market, Sunhouse also made a big impression on foreign markets such as Myanmar, Egypt, Indonesia, Turkey, North America, Mexico…
Some major milestones of Sunhouse Group Joint Stock Company:
+ 2003 : A Korean joint venture factory producing household appliances was established with the main product lines being non-stick pans and stainless steel pots.
+ 2005: Sunhouse applied the most advanced Cold Anodized technology in Southeast Asia to produce products.
+ 2019: Sunhouse marked the milestone of becoming the first home appliance manufacturing enterprise to privately own an electronic circuit factory in Vietnam.
Each year, Sunhouse has an average revenue growth of 25-35%, and has been in the Top 50 largest private enterprises in Vietnam for many years. With the right business strategy and the efforts of its staff, Sunhouse aims to become a 10,000 billion corporation by 2025.
2. Analyze Sunhouse’s SWOT model
2.1. Analysis of S (Strengths) – Sunhouse’s strengths
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Rich and diverse products
Sunhouse provides more than 1,000 product codes in areas such as:
+ Household appliances: Anodized pot sets, non-stick pans, aluminum pots, pressure cookers…
+ Household electrical appliances: Rice cooker, electric pressure cooker, oil-free fryer…
+ Electronics – Refrigeration: Air conditioner, air filter, home water purifier
+ Kitchen equipment: Range hood, double induction cooker, infrared induction cooker…
+ Kitchen utensils: Food storage boxes, cooking utensils, cleaning set
+ Industrial equipment: Electric cables, medium voltage cabinets, low voltage cabinets…
+ Electric cable
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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.
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Modern machinery, access to high technology in production
In 2000, when the production of non-stick pans still had many limitations, especially unstable quality and did not ensure health safety for consumers, Sunhouse entered into a joint venture and applied advanced technology. Korea’s innovation to launch thousands of non-stick pans that are safe, durable and suitable for the needs of Vietnamese consumers.
In 2005, Sunhouse continued to bring Southeast Asia’s most advanced cold anodizing technology 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, electric kettles, water purifiers…
2.2. W Analysis (Weaknesses) – Weaknesses of Sunhouse
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Prices are still quite high compared to Vietnam’s economy
Despite good quality, Sunhouse products are priced quite high compared to the income of Vietnamese people. Most of the items are for people with a good income level or higher.
This has become a significant obstacle for Sunhouse when penetrating markets in poor rural and mountainous areas. The preference for low prices makes consumers susceptible to buying poor quality and counterfeit products from Sunhouse on the market.
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The target customer group is too broad
With a large target customer base, Sunhouse faces many difficulties in implementing effective business and sales strategies.
Sunhouse’s products are diverse and rich and target many customers from housewives, male family heads who favor technological equipment or units with needs for household electricity…
Therefore, Sunhouse encounters many obstacles when implementing marketing and business campaigns to gain coverage and get the best results.
2.3. O Analysis (Opportunities) – Opportunities of Sunhouse
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Consumer trends focus on products with clear brands, originating in Vietnam
In recent years, the trend of using consumer goods among Vietnamese people has changed markedly. Domestic branded products are increasingly supported by consumers because of high product quality, reasonable prices and widespread distribution systems.
Besides, the campaign “Vietnamese people prioritize using Vietnamese products” also contributes to gradually changing the shopping perception of Vietnamese people. The proportion of consumers who trust and favor Vietnamese products over foreign products is increasing.
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The proportion of shoppers on e-commerce platforms is increasing due to the impact of the Covid 19 pandemic
The outbreak of the Covid 19 pandemic brings many challenges and difficulties for businesses. Faced with the situation of having to both ensure good epidemic prevention and maintain production activities, Sunhouse has made adjustments to short-term business plans to quickly adapt to the epidemic context.
Sunhouse is promoting activities on e-commerce platforms. This is considered an opportunity for Sunhouse as well as many other businesses to distribute products effectively, in accordance with people’s needs to limit contact while the epidemic still has many unpredictable risks.
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The economy is increasingly developing, people’s living standards are increasingly improving
With a long-standing reputation in the eyes of consumers, a stable customer base and a large distribution system, Sunhouse has many conditions to develop and expand production and business.
In addition, as the economy grows and people’s living standards are increasingly improved, the demand for high-quality kitchen equipment is increasing. This has helped Sunhouse realize its mission of “popularizing” kitchen products, helping Vietnamese consumers have a more comfortable life.
2.4. T Analysis (Threats) – Sunhouse’s challenge
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Fierce competition with domestic and imported brands from abroad
Sunhouse faces fierce competition from longtime kitchen brands imported from abroad such as Bosch, Faster, Tefal, Malloca… and domestic brands. Therefore, in addition to improving product quality and service, Sunhouse’s business plans and marketing strategies are also continuously adjusted to suit the market and consumer tastes.
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Plagiarism of products on the market
Not only being plagiarized, many Sunhouse products are counterfeited and branded with sophisticated brands. It is not difficult to come across Sunhouse branded products but the selling price is much cheaper than the company’s price. Products are counterfeit from the box, warranty paper to details, making it very difficult for consumers to detect with just a cursory look and review.
This is considered a big challenge for Sunhouse when customers buy products with the correct labels and logos but are not genuine products manufactured by Sunhouse. This not only affects reputation, money, and time but also affects consumers’ health.
SUNHOUSE SWOT ANALYSIS SUMMARY TABLE
SStrength |
INWeaknesses |
OOpportunities |
TThreats |
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3. Analyze Sunhouse’s marketing strategy
Behind Sunhouse’s success must be the right business and marketing strategies. Let’s analyze and learn about Sunhouse’s marketing strategy in the article below.
3.1. New market penetration strategy
Before Sunhouse was born, Mr. Nguyen Xuan Phu – Chairman of the Board of Directors of Sunhouse Group Joint Stock Company only imported and distributed for sale and enjoyed the price difference.
When entering the kitchen equipment manufacturing and distribution market, Sunhouse started with non-stick pan products. By “importing” Korean technology, Sunhouse pioneers and produces high-quality, safe and durable non-stick pans, suitable to the needs of Vietnamese consumers.
Or like Sunhouse’s water purifier product, after 7 years since its launch, it has quickly become one of the 3 best-selling water purifier brands in Vietnam. Focusing on the core need of ensuring clean, pure output water and an available production ecosystem allows Sunhouse’s water purifiers to have better prices than the average. This has helped Sunhouse occupy 20% of the national market share.
Approaching customers with a pricing strategy, minimizing functions and focusing on important product features, Sunhouse penetrates markets from urban to rural areas easily.
3.2. Key product launch strategy
With key products such as non-stick pans and aluminum pots, Sunhouse water purifiers have quickly captured market share.
In the long-term communication campaign in 2020 “The desire to conquer the peak – pride in Vietnamese household appliances”, Sunhouse takes the main product as the air conditioner product group with the goal of capturing 10% of the industry market share.
Brand representative, player Tien Linh is the face chosen by Sunhouse to strongly convey the message “The desire to conquer” with passionate, enthusiastic youth and their best efforts to bring glory to the team. Country.
3.3. Sunhouse’s strategy to retain loyal customers
Many businesses often focus on distributing products to agents rather than interacting directly with consumers. However, with Sunhouse, in addition to implementing cooperation programs with distribution agents, this business also builds marketing programs to interact directly with users to retain loyal customers.
Mr. Le Tung – Marketing Director of Sunhouse revealed: “Our marketing strategy recently is how to interact directly with customers. The most important task is not how many products to sell directly, but to interact directly with them to bring them to the point of sale, while creating the best experience and helping the brand gain engagement with customers. Surname. Only then will sales be sustainable.”
On average, Sunhouse sells 10 million products to the market each year. According to Mr. Tung, if the interaction and connection with customers cannot be maintained, next year the business will still sell 10 million products but to new customers. Thus, if you maintain a loyal and accumulated old customer file within 3 years, the growth number will be huge.
However, to do that, Mr. Tung pointed out: “When selling to a customer, businesses must find a way to know when they will need them again. How many times has that customer purchased? How to bring them back and when will they return?
To retain old customer files is not simple. You must not only increase interaction but also take care of customers regularly and analyze their behavior and habits.
“For Sunhouse, we will still sell to distributors and agents. If we say we only sell to consumers and not to agents, the agents will immediately leave Sunhouse.”
The main purpose of the direct customer interaction strategy is to help customers and brands connect with each other and understand each other better, not for the purpose of direct sales.
Sunhouse’s CMO shared that the business will not “steal” the dealer’s customers, but how the distributor can sell better. One of the measures that Sunhouse is taking to balance the interests between businesses and distributors is to let customers pick up goods from the nearest distributor. That means, when a customer contacts and wants to buy directly, Sunhouse will direct them to the nearest distributor to pick up the goods. At this time, the distributor does not sell products but still enjoys profits and of course the business also enjoys profits .
Summary
Hopefully you have learned useful knowledge from Sunhouse’s marketing strategy, thereby helping to implement effective marketing strategies for your business!
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