In Vietnam market, international handy mechanical equipment of Chervon Group in China, exclusively distributed by Song Ma company in 2018.
The big problem for Devon is facing fierce competition from many big brands like Bosch, Makita, other Chinese brands…
Devon is manufactured with advanced technology, is quality tested and meets the technical requirements in the field of construction. However, with quality comes a price. Devon is considered to have a high price compared to other drills of the same line imported from China. Besides, outsourcing from Chinese factories is also an obstacle because of Vietnamese people’s habit of buying and using products. Most customers are not interested in choosing Chinese brands.
Understanding that mentality, Clover planned a detailed Marketing plan for Devon to cover the building materials market in Vietnam. Clover also refrains from mentioning that Devon is outsourced and manufactured in China. On the other hand, it strongly hit the Vietnamese’s preference for foreign goods, referring to another German-based factory of Chervon.
Results: After 6 months, Devon has built a nationwide network of wholesalers and suppliers with more than 20 suppliers in each province. Revenue is mainly from online advertising with a growth rate of 30% and revenue of VND 17 billion/year.