ARISTON LAUNCHING WATER HEATER PRODUCT IN VIETNAM

Table of Contents
EXECUTIVE SUMMARY: 3
Introduction: 3
Purpose: 3
COMPANY BRIEF INTRODUCTION: 4
COMPANY INTERNATIONALIZATION POLICY: 4
TARGET MARKET AND ITS FEATURES: 4
Situational Analysis: 4
Market Challenges: 5
Market Opportunity: 5
BUSINESS MODEL: 6
PRODUCT AND TECHNOLOGY: 7
Product: 7
Promotion: 8
Place: 8
Price: 9
Technology Used: 9
MARKETING AND SALES: 10
Market Analysis: 10
Need For Market: 12
SWOT ANALYSIS: 12
Strengths: 12
Weakness: 12
Opportunities: 12
Threats 13
EXTERNAL ENVIRONMENT AND COMPETITION: 13
External Factors: 13
Customers: 13
Employees: 13
Competitor analysis: 14
MANAGEMENT TEAM: 14
Domain knowledge: 14
Growth: 14
Ambition: 15
FINANCIAL PROJECTIONS: 15
Financial Considerations: 15
Key metrics: 15
USES OF PROCEEDS: 16
Entry mode and Strategy: 16
SOCIAL PRACTITIONED: 17
ADVANTAGES AND DISADVANTAGES OF NEW VENTURE: 17
Advantages: 17
DISADVANTAGES: 17
RECOMMENDATIONS: 18
REFERENCES: 19

EXECUTIVE SUMMARY: Introduction:
Having accomplished the perception of “prominent trademark” will enable Ariston to protest a more reputable place both in terms of image and customer reaction, but, above all, to firmly sustain legal protection. The holder of a prominent trademark can compete themselves against pretenders of goods and services certified in different categories. Moreover, by virtue of the concluded recognition, the possibility of proceeding advantage of the easier and significantly less lavish administrative safeguard considerably increases, as the several signs usually acquired in such actions are no more needed and as the safeguard assumed to a “prominent trademark” is accurate organizing level, too.
Purpose:
The Next SFT Water Heater is a room closed, fanned flue, multipoint water heater. The appliance has been described for domestic use only and to be combined to a mains cold water surplus with a minimum Pressure of 0.5 bars. A permanent electrical connection is maintained and should be yielded by use of a fused spur. The electrical surplus should be via a double pole isolating switch with 3mm contact operation in both poles. If the appliance is equipped in a bathroom the fused spur must be situated externally to the bathroom.
Ariston has launched a new fan fluid gas-fired spontaneous water heater – NEXT SFT. An ideal for retrofitting in functions which have elevated need meant for hot water, the latest addition to Ariston’s portfolio has a gained a profit of 25000W and an extraordinary hot water flow rate of 10.2 liters per minute ΔT 35oC – its a sequence that is set to make NEXT SFT a new standard for others to follow.

COMPANY BRIEF INTRODUCTION:
Ariston Thermo is a worldwide group and an international innovator in thermic ease for domestic, commercial, and industrial applications. Our world-class fabricating capacity, together with excellent preferred and after-sales act, offers our customers an accurate sequence of comfort, energy efficiency and respect for the environment. Ariston has launched a new fan fluid gas-fired spontaneous water heater. To enlighten the leading place in Vietnam market, last 23 of August Ariston Vietnam held in Ho Chi Minh City the official casting event for its new storage and instant water heater product value. The occasion was organized by the Italian Ambassador to Hanoi Lorenzo Angeloni, the Italian creator of the new products Umberto Palermo, and Stefano Caroni, Asia Pacific Commercial Director for Ariston Thermo. Also many local celebrities – performers, models and singers – organized the event. ( Ariston Thermo SPA, 2015)
COMPANY INTERNATIONALIZATION POLICY:
The values that continue to qualify our growth have not improved. They are strong and long-standing values, with which the whole group can notify. Ethics, People, Excellence, Customer and capacity are the cornerstones of Ariston Thermos universe-the propositions we believe in, and draw on, every day in our quest for excellence. Ariston Thermo has made power efficiency the pillar of its long-term policy for capable growth, aware of the impact that its own industry focuses in terms of energy consumption and the confronting radiations into the atmosphere. ( Ariston Thermo SPA, 2015)
TARGET MARKET AND ITS FEATURES:
Situational Analysis:
The corporation holds the subsequent analysis to recognize its advantages and disadvantages in formation of its new business operation. In Vietnam the consumption of gas water heaters are hastily growing as a result it will be a precise note for the organization to set up its business.
Market Challenges:
Ariston Thermo confidently faces the challenges posed by conflict, ever-changing markets, technologies, and the new boundaries of energy efficiency and innovative energy sources. Ariston and Chaffoteaux offer their partners to organize Professional Development programme to improve not only their understanding of the products, but also the steps to best use them in cutting-edge installation configurations. A leading manufacturer of heating elements and thermostats.
For 50 years now, Thermowatt has been developing, manufacturing and selling throughout the world over 30 million components per year. (S. Tamer Cavusgil, Gary Knight, John R. Riesenberger, Hussain G. Rammal, Elizabeth L. Rose, 2014 )
Market Opportunity:
Appliances that provide different energy sources to heat water above its starting temperature in order to provide water in the different variations of temperatures are called water heaters. Water heaters are widely consumed in many domestic applications such as cooking, bathing, cleaning, and space warming. Water heaters also noticed wide applications in the manufacturing industries such as chemicals, food and beverages managing, and thermal power plants. Water heaters provide various energy sources, known as gas, electric, solar, and geothermal, to heat and give hot water.
The global water heater market report begins with an outline of different types of water heaters and fuel types used in water heaters. This portion also holds PMR’s analysis of key concepts, drivers, and constraints, which are influencing the water heater market currently. (O. C. Ferrell, Michael Hartline, 2007 )

BUSINESS MODEL:

• Ariston Velis is an electric water heater focused to heat, in the shortest possible time, the ideal amount of water for the first shower and then remember the user’s habits, computing consumption.
• Andris and Artes are Ariston’s ranges of brief, low and medium capacity water heaters. The new Artes products are programmed horizontally, for greater installation flexibility, and feature an electronic control connect with, fast water heating capacity and maximum thermic shield.
• Ariston Next Evo gas-fired water heater sounds for the “Smart Memory” organization, which remembers the habits of each user to provide water at the accurate temperature. The “Ultra Silent” device lessens noise, while the carbon monoxide alarm fortifies maximum security. The Next Evo scale of gas water heaters has been enlarged with a number of closed versions, which are the best suspensions in terms of safety and hygiene.
PRODUCT AND TECHNOLOGY:
There are four P’s in which an organization have to concentrate on the victorious incorporation of its business. They are as follows. (Product, promotion, place, and price). (Douglas Bowman, Hubert Gatignon, 2010)
Product:
The purpose of the report is to analyze the market for setting up a new gas water heaters company in Vietnam. The company has to make a vast analysis on the entry level risk and threats. In the last few years the country is planning to bring in other gas water heaters companies to invest in their place. Now a day the demand for gas heaters is increasing. The most considerable group is the group of gas-powered boilers that are mechanized by natural or propane gas, all combined in three categories; combo boilers used in both water and room heating, system boilers that are shielded for direct room heating and indirect domestic water when connected with the cylinders, also heat only boilers for home based hot water production only.
All groups of gas boilers are wall-hang, have small facet and maximum weight of up to 36 kg, allowing easy lifting and fitting. The main features include the long-lasting stainless steel heat converter and auto function, which guarantees the accurate and magnify temperature control, providing great energy savings, improved production and better comfort level. All the Ariston boilers are friendly due to the low NOX gas combustion and are very secure due to the several built-in safety sensors and devices.

Promotion:
Since it is electronic sector the promotional activity is complex for the entity to acquire more consumers. They have to concentrate on the quality of the product prepared and the safeguard factor and related issues to be disclosed. They have to promote how their product gas heater is different from that of the other competitors. It will be best for the company if its focuses on the young group sector.
Place:
The company has to locate a place which will help the company in various areas like easy reachable point with better transportation facility. The manufacturing setup has to be in a place where it is free from legal constraints. The design for the company has to be made in order that it doesn’t affect the natural environment of the area.
Price:
The organization has to find out the alternative ways to procure the components in such a way it will be able to deliver the product at a reasonable rate than its competitors. The organization has to look up on its tariff rate and other duties in order to that it doesn’t affect the pricing structure of the product.
Technology Used:
Constant temperature setting thanks to thermostatic technology. A thermostat is a component of which feels the temperature of a system so that the system temperature is retained near a desired set point. The thermostat does this by converting heating or cooling devices on or off, or balancing the flow of a heat transfer fluid as needed, to maintain the accurate temperature. Thermostats are used in any device or system that hot cools to a set point temperature, examples include building air conditioner and central heating, kitchen impediment including ovens and refrigerators and medical and scientific incubator. ARISTON WATER HEATER USING THERMOSTAT TECHNOLOGY

Thermostats can also be assembled in various ways and can be used in a mixture of sensors to evaluate the temperature, habitually a thermostat or bimetallic strip. The production of the sensor then controls the heating and cooling equipment. A thermostat is a sample of a "bang-bang controller" as the heating or cooling devices output is often not comparable to the difference between definite temperature and the set temperature.
MARKETING AND SALES:
Market Analysis:
Vietnam is in the eastern part and southern part of the Indochinese peninsula in the Southeast Asia, within South China Sea apart its complete coast. China is faced towards the north and the Laos and Cambodia faced towards the west. Melinh Hypermarket JSC pursued to lead heating apparatus with a 34% volume share in 2014, followed by Phu Thai Group and Saiko Vietnam JSC individually. Melinh Hypermarket JSC has a wide dispersal network and affordable value, which not only strengthened its leadership at the end of the outline period but also helped it to enjoy fast volume growth within the category in 2014. (Ariston Thermo, 2015)

OVERALL MARKET ANALYSIS IN VIETNAM ABOUT GAS WATER HEATERS UPTO 2030

Need For Market:
It not an easy job to setup a business, establishing a company in a new place can be done successfully only with the help of the proper and efficient market analysis. This will help the company to focus on the important trade criteria and also on the needs of the customers.
SWOT ANALYSIS:
This SWOT Analysis of Ariston Thermo Group promotes a planned SWOT analysis of the organization’s business and its operations. It illustrates the strengths, weaknesses, opportunities and threats. The SWOT analysis of this Ariston Thermo Group can present us an aggressive improvement. (Ariston Thermo SpA, 2015)
Strengths:
• Occurring distribution and sales systems.
• Predilection for brand name with elevated excellence and enhanced hygiene standards.
• Development of areas - Urbanization
• Amplified level of returns and individual purchasing power.
Weakness:
The company faces a tough completion from its competitors, being deficient in product diversification, change in taste and preferences of existing and new customers, unforeseen deficiency of raw material availability, speculations seen in research and development, tax structure, high loan rates are achievable, expect debt ranking, efficiency.

Opportunities:
• Income level is at a standard increase
• New procurement
• Project capital
• Growth rates and opportunity.
Threats
Maturing rate of interest and obtainable, increase in labor cost, change in tax structure, increase in the cost of raw material acquisition are some major threats faced by the organization. EXTERNAL ENVIRONMENT AND COMPETITION:
External Factors:
Below the external factors that recognizes the key successes maneuver of the business. (Charles Lamb, Joe Hair, Carl McDaniel, 2008) Customers:
Customers are the major key players in any business. Customers are called as the king of all business, they determine the accomplishment of the business. The company should formulate a plan or strategy in order to evaluate the taste as well as the preference of the customers, evaluate of the quality and price of the consumers. Appropriate targeted mock-up has to be chosen, so they are the ones who assist to analyze the potential of the business. The marketing team will have to determine the potential target market to strength its operations in the new country.
Employees:
Employees are called as the backbone of any organization. The Human resource management team has to deliberate on its recruitment method for processing its the business operations. The company has to recruit the people as right people for the right job. Before assigning their roles and responsibilities job description of the role has to be clearly drafted and communicated. Plan out for a better reward system which eliminates the conflict within the individuals. This major factor to be analyzed carefully while setting up a business. If the employees are motivated the company yield more profits will lead to further expansion of business. This leads to the better living style of the people.
Competitor analysis:
This is the most vital area to be analyzed carefully by the team. Competitors are the person who determines the success or failure of the business. Before setting up the business the company has to identify their sectorial competitors in the market, their product range etc., based on this they have to formulate a plan to bring in products which was not concentrated by the competitors and provide quality products than their competitors.
The company has to identify proper demographic segmentation of the market, different ways of sales promotion, proper and better distribution channels etc. These are the variables which help the team to identify the current business situation in the country.
MANAGEMENT TEAM:
Domain knowledge:
Efficient creations in heating and water heating for daily practice. Ariston combines quality and high-efficiency technologies. Its products stand out for their Italian design and simple, intuitive use. Millions of families throughout the world have trusted the Ariston brand for more than 50 years now. (Ariston Thermo, 2015)
Growth:
The attention for people translates into activities designed to promote the continuing professional
Development of internal staff, constantly refine the recruitment and training of new hires, and
Ensure the integration of the ethical and cultural values adopted by the Group at all levels. (Ariston Thermo, 2015)
Ambition:
By 2020, the Group aims to carry out 80% of its business with high-efficiency or renewable energy solutions. Ariston Thermo’s ability to combine energy efficiency, innovation and design, is contributing to shape the future of thermic comfort. (Ariston Thermo, 2015)
FINANCIAL PROJECTIONS:
Financial Considerations:
The financial market survey has to be brings out like the financial sources for setting up the, business, cost involved in equipment buying etc. The company has to formulate a proper and regular cash flow system which will sustain the continuous business operation. (Ariston Thermo, 2015)
Key metrics:
Ariston Thermo’s industrial strength relies on the work of motivated and competent people from several countries.
Business Essentials
• Broaden your view
Developing the understanding of the business to act effectively in the organization
Personal Essentials Professional Essentials • Make a responsible impact
Providing the skills Invest in your growth
Developing the skills to plan your professional development.
USES OF PROCEEDS:
Entry mode and Strategy:
Ariston Thermo is devoted to building applications for the connectivity of thermo amenity systems, both for customers and for its network of service centers. Ariston Thermo offers its consumers and its professional after-sales partner’s creative solutions to ensure a new method of organizing thermo amenity. The new remote control operations for heating and hot water production systems guarantee the possibility of always coming back to a warm home and an advanced and efficient support service. (Juan Fernando Velez-Ocampo, 2013)
Ariston Thermo is a leader in the hot water and heating sector and strives to provide
The quality of ease by contributing high-technology, quality and efficiency products,
With a reduced environmental impact.

The robust design and the architecture of the whole range ensure complete reliability.
■ Advanced power controls, variable geometry flame, and stability in the use of liquid, gas or biomass-derived fuels make the burners easy to adapt to any application.
■ We constantly create our products to reduce energy consumption, NOX emissions and noise levels.
■ Our sales and support network is always ready to provide planners, installers and end users with rapid and effective pre- and after-sales support.
■ Original spare parts are available at short notice allover in the world.
SOCIAL PRACTITIONED:
AID TO THE POPULATION STRICKEN BY NATURAL DISASTERS
Last winter, in Northern Vietnam an exceptionally cold weather severely disrupted the life of local communities. As a contribution to relief efforts, Ariston Vietnam provided nurseries.
SUPPORT TO CENTRES FOR DISABLED CHILDREN
Ariston Vietnam committed itself to supporting two centres for the physically challenged children in Ho Chi Mihn City and a hospital in the province of LamDong to provide them with the adequate services. The Group supplied 55 Ariston water heaters.
ADVANTAGES AND DISADVANTAGES OF NEW VENTURE:
Advantages:
The main advantages Ariston Thermo:
• Customers accept a high-quality product and service shielding immediate feedback.
• Operators accept better training and work in a more pleasant and the protective environment.
• Significant depletion of the environmental clash of the plants.
• Energy efficiency is systematically screened.
• Optimized obtaining of raw materials, rotation of inventories and work shifts.
• More effective internal holding of raw materials and more magnificent external transportation.
DISADVANTAGES:
• The biggest disadvantage of tankless gas water heaters starts with the direct costs. Tankless water heaters will cost you twice as much as traditional storage tanks. A constant traditional tank-type water heater starts with about $800. Constant tankless water heaters prices about $1,600.
• There are also costs that come with fitting. Necessary piping can be expensive. Keep in mind that tankless gas water heating units need good discharge which can be costly. However with an expert plumber you can save more on these prices.
• In areas where there is warm water, there has got to be a water softener located so you won’t ruin the tankless gas water heater.
• Another flaw is how difficult some unites are. Unlike traditional storage tanks, retrofitting household with a tankless unit which can be totally difficult and valuable. You will need a skilled plumber to do the job excellent.

RECOMMENDATIONS:
First and for most the company has to identify its success criteria for setting up its business. The mode and type of manufacturing setup to cater the various needs of the customers. Now the political environment of the county is inviting more investment in this sector, so it is a good sign for the organization to set up a business in the country.
The inflation rates in the country are strong so the company has to concentrate on the significant establishment of the company. The purchasing power of the employee is increased, so the customers will focus on the quality factors of the product to be manufactured.
The entry to the company is more favorable to the organization in various aspects, based on this they have to identify the correct setup area which will benefit both the organization and the public.
References
Ariston Thermo SPA. (2015). group. Retrieved Jan 06, 2016, from http://www.ariston.com/corporate/en/group
Ariston Thermo SPA. (2015). worldwide. Retrieved Jan 06, 2016, from http://www.ariston.com/corporate/en/worldwide
Ariston Thermo. (2015). Ariston_Thermo_Company_Profile.
Ariston Thermo SpA. (2015). Ariston Thermo SpA : Company Profile and SWOT Analysis.
Charles Lamb, Joe Hair, Carl McDaniel. (2008). Essentials of Marketing. Cengage Learning.
Douglas Bowman, Hubert Gatignon. (2010). Market Response and Marketing Mix Models. Now Publishers Inc.
Juan Fernando Velez-Ocampo. (2013). Global Market Entry Strategies. Retrieved Jan 06, 2016, from https://prezi.com/bnhdrw1rielu/global-market-entry-strategies/
O. C. Ferrell, Michael Hartline. (2007 ). Marketing Strategy. Cengage Learning.
S. Tamer Cavusgil, Gary Knight, John R. Riesenberger, Hussain G. Rammal, Elizabeth L. Rose. (2014 ). International Business. Pearson .