BỘ GIÁO DỤC VÀ ĐÀO TẠO
TRƯỜNG ĐẠI HỌC HOA SEN
KHOA KINH TẾ VÀ QUẢN TRỊ
INTRODUCTION TO MARKETING
Dien May Xanh Electronics Supermarket Chains
Group’s Member : La Thi Thanh Thao Student ID: 2182077 Pham Nhat Khanh 2173209 Nguyen Tran Thanh Truc 2185435 Nguyen Huu Quynh Nhu 2162283 Nguyen Ngoc Huynh An 2171420 Tutor’s Name : Ms. Tran Thi Thu Hien Tutorial Class : MK203DV01 Tp.HCM, August 2019
BỘ GIÁO DỤC VÀ ĐÀO TẠO
TRƯỜNG ĐẠI HỌC HOA SEN KHOA KINH TẾ VÀ QUẢN TRỊ
INTRODUCTION TO MARKETING
Dien May Xanh Electronics Supermarket Chains Group: 2 Tutor’s Name : Ms. Tran Thi Thu Hien Tutorial Class : MK203DV01 Student Num. Member Assignment of work Completed ID - Summary 1 Nhat Khanh 2173209 100 % - Word edit 2 Quynh Nhu 2162283 - Microenviroment Anlysis 100 % 3 Huynh An 2171420 - Macroenviroment Anlysis 100 % 4 Thanh Truc 2185435 - SWOT Analysis 100 % - COMMITMENT - THANKS TO 5 Thanh Thao 2182077 - ABTRACT 100 % - SALULATORY - 4 P’s Analysis COMMITMENT 2
“We read and understood about the violation of academic integrity. We
commit by our honors that the report is studied by us and perform so we ensure
not to the violation of academic integrity.” August, 2019 (Member’s Signatures) THANKS TO
This is the final report of the Introduction to Marketing course conducted by
5 members of our group and this is thanks to all of people. First of all, we
would like to thank the Mrs. Tran Thi Thu Hien has enthusiastic and
dedicated to guide our team to complete this final report. Secondly, we would
like to express our sincere thanks to those who participated and the members
of the group contributed their ideas and made great efforts to find information
so the report is complete. Besides, during the process we made the report,
mistakes and negligence are hard to avoid. We hope you to take some time to
give us suggestions for growing and having more knowledge to make our
future reports perfect than. We would like to accept everyone's opinions. Please send your thanks Thank you! ABSTRACT
With the report on Introduction to Marketing, our team learned and
survey of Dien May Xanh's business marketing strategy in the dosmetic
market from 2011 until now. We tried to find information, cite, select from
Dien May Xanh's marketing strategies. Through the process of making group
work, we hope foreign businesses can understand more about strategy as well
as understanding where they will invest to expand the market, High returns
on profits. With the enthusiasm and hard work of the members,we will
complete this report in the best wa TABLE OF CONTENTS
COMMITMENT...........................................................................i
THANKS TO.................................................................................ii
ABSTRACT.................................................................................iii
SALUTATORY.............................................................................5 I.
SUMMARY..............................................................................6
II. BODY....................................................................................7
2.1. Microenvironment Analysis.............................................................7
2.1.1. Company...........................................................................................7
2.1.2. Suppliers...........................................................................................8
2.1.3. Marketing Intermediaries...............................................................8
2.1.4. Customers.........................................................................................9
2.1.5. The competitors..............................................................................11
2.1.6. Publics.............................................................................................13
2.2. Macroenvironment Analysis..........................................................14
2.2.1. Demographic environment:...........................................................14
2.2.2. Economic........................................................................................15
2.2.3. Natural............................................................................................16
2.2.4. Technology......................................................................................16
2.2.5. Political...........................................................................................17
2.2.6. Culture............................................................................................18
III. SWOT ANALYSIS.............................................................19
IV. 4P’S ANALYSIS.................................................................21
4.1. Promotion...............................................................................22
4.2. Price.......................................................................................22
4.3. Product...................................................................................22
4.4. Place:......................................................................................23
V. CONCLUSION AND RECOMMENDATION...................24
5.1. Conclusion.............................................................................24
5.2. Recommendation....................................................................25
REFERENCES...........................................................................26 TABLE OF FIGURE
Table 1. The segmentation customer market of Dien May Xanh...............9
Table 2. Dien May Xanh's SWOT Analysis...............................................20
Table 3. Dien May xanh’s 4P’s Analysis....................................................21
Table 4 . Dien May Xanh’s Programs........................................................22 TABLE OF PICTURES
Picture 1: The System of Dien May Xanh Chain Store..............................6
Picture 2: The suppliers of Dien May Xanh ..................................................... 10
Picture 3: The revenue of chain stores ............................................................. 12
Picture 4: Competition 1 .................................................................................... 14
Picture 5: Competition 2 .................................................................................... 15
Picture 6: Competition 3.............................................................................13
Picture 7: Commercial Web........................................................................17 SALUTATORY
Barrack Obama once said: “If you go the right way and are always ready.
Next, sooner or later you will succeed. ” We all know the first step to one children
who know how to speak, walk, eat or crawl, adults must tell and have some proper
proper method. Applying in business as well, a business person success and exist a
long time since their names in the market or may be failed then business strategy is
the important factor that business need to have. However, all of company need to
push higher dosmetic position and especially this is the first step to hang out the
competition international area then business strategy can limit risks and lift high
competitiveness. For example, Dien May Xanh which is the electronics retailer
with the strategy of opening stores throughout 63 provinces in Vietnam. They
studied about the market, culture, psychology, behavior and demographic of
customers. Moreover, they connected to big reputation brands as Samsung, Apple
and so on. However, the difficult thing that they have to face with a lot of
competitions such as Tran Anh, Nguyen Kim, MediaMart, Vinpro,… but these
electronics retailer is not still catch up Dien May Xanh because of the smart marketing strategy.
For these reason, our members decided the topic of Dien May Xanh for the
final report. Through the report, we hope to help Vietnam company and
multinational company can understand about the marketing strategy and look for
the suitable strategy in order to apply for their business. I. SUMMARY
Dien May Xanh is a new brand which has succeeded in interior market for
selling electronics products. Also, it become a national brand and open chain
store in a short time. This report which study about the story of Dien May
Xanh’s marketing strategy and stand out from a lot of many electronics stores
in VietNam. Dien May Xanh was first notified to the community in December
2010, but it was just the new brand to customers and it hadn’t much influence.
Within 6 years, Dien May Xanh has developed rapidly and became the first
electronic retailer system of Vietnam.
Picture 1: The System of Dien May Xanh Chain Store
Up to now, Dien May Xanh had 119 supermarkets, in present at 63 provinces
around the nation, is throughout from south to north and from plain to highland.
When the customers shopping at Dien May Xanh, they will easily experience the
open supermarket, making the customer to find, compare and experience products
at supermarkets. Moreover, along wih a rich list of good products, focusing on 90%
of popular demands and with many reputation brand in the world.
Especially, the service after sales is upgraded, with policies focus on customers
such as price, commitment of the best price within 14 days, 100% refund for
customers if somewhere is cheaper, change the product within 30 days if the customers find product error.
Not only that, the online service makes it easier for customers to shop at the
supermarket than ever before with the website that is rebuilt scientifically with full
content, images, description and so on. The phone version is also easy to search,
and shop at anytime and anywhere. II. BODY 2.1.
Microenvironment Analysis 2.1.1. Company
Dien May Xanh was established in December 2010.
Firstly, it opended 12 stores where are located in 9 provinces until now there
are 887 supermarkets in 63 provinces and cities in Vietnam. Moreover, there are 10.000 employees.
Products at Dien May Xanh Supermarkets are extremely diverse, from
famous brand such as TVs, Refrigerators, Washing Machines, Air-conditioners…
to household appliances such as: Rice Cookers, Gas Cookers, Electromagnetic
Stoves,…Dien May Xanh also sells products such as phone, tablet, laptop, accessories…
The brand is well-known thanks to effective marketing strategy.Wide
distribution net work with 253 supermarkets nationwide, covering 63 provinces and cities.
Having a good financial position should be spent on MWG’s Green Electronics.
There is a creative strategy such as developing the form of supermarket Dien
May Xanh mini in coastal areas. Enjoying the absolute advantage of Mobile
telecommunications compared to other electronics retail chains due to the success of Mobile World. 2.1.2. Suppliers
Picture 2: The suppliers of Dien May Xanh
For Suppliers, there will be pressure on product prices, in addition to
distribute products to meet partners’standards and create advantages in negotiation
and transaction. There are lots of big suppliers from around the world such as
SamSung, Panasonic, Sony, Hitachi, Daikin, and so on.
2.1.3. Marketing Intermediaries
There are 886 supermarkets in 63 provinces and cities around Vietnam.
Every supermarkets offer almost identical items, variety, often have discount
promotion program on special occasions. Dien May Xanh system has spent a large
money to invest in facilities and staff for super sales, so customers can be better
served. Dien May Xanh employees are always trained to handle situations and serve
customer needs in the best way, by phoning or meeting at the supermarket.
Dien May Xanh is also affiliated with many major banks, allowing
customers to be paid by visa cards, master cards, credit cards,… without cash, and
supporting installment purchases. 2.1.4. Customers
Dien May Xanh want to have customer segmentation who are employed and
the higher income rather than teenagers.
The revenue of Dien May Xanh has increasing from 2011 to 2017 to catch
up The Gioi Di Dong. As a result, Nguyen Kim not only lost the leading position
but also lost the second place in the hands of another competition which is Dien
May Xanh. They are having impressive business results: Revenue in 2016
increased 54% from 8,100 billions to 12,500 billions and continued to increase by
26% in 2017. (Kiến Khang, 2018)
Picture 3: The revenue of chain stores
Table 1. The segmentation customer market of Dien May Xanh
Number Segmentation Criteria s 1 Geographic
- Area: nationwide, 63 provinces
- City: from provinces to center city
- Population density: 274 people/km2
( According to the General Department of
Population and Family Planning)
- Climate: located in the tropics with humid
subtropical climate in the North and
tropical monsoon climate in Central and South 2 Demographic - Age: 25-50 - Gender: Male or Female
- Family: 2 generation or more
- Income: 15 million/ month or more 2 Psychographic
- Social class: Medium or more
- Lifestyle: look for the suitable product which meet their needs.
- Personality: convenience, modernity 3 Behavioral
- Status: relax, balanced life, affirmed, confident, and so on.
- Occasion: on New Year and depend on the life cycle of the product
- Benefits: the customers can relax after a
whole working day, balance the life and
convenient through indoor furniture. 2.1.5. The competitors
There are some leading brand in the electronic market such as Nguyen Kim,
Tran Anh, Mediamart, and so on. + Nguyễn Kim:
There are 21 stores from Southern to Nothern of Vietnam. They use
marketing strategy “ shop-in-shop” which opened every electronic center in each supermarket.
Nguyen Kim is the first electronic center which received the International
Quality Management System Certification across the country.
Picture 4: Competition 1 + Trần Anh
Along with 14 stores in Hanoi and the rest for other provinces from Southern
to Middle of VietNam. For Tran Anh, they have Japanese quality service such as
large display spaces, parking, locations,…
Tran Anh has big difference thing when comparing with others company. (Tuan Thanh, 2017)
+ Firstly, they chose the center position at “ the gold place” of
provinces, cities in order to connect with potential customers.
+ Secondly, they are focusing on promoting the big store with the
large area in order to show the product on shelves to help the customers easily select and experience.
+ Thirdly, they are well exploiting his own advantages that are
Japanese partners supporting the same goal towards Japanese pality.
+ Finally, having more good warranty and maintenance of the company.
Picture 5: Competition 2 + VinPro
As a part of strategy to become the leading brand retailer in Vietnam so
Vingroup corporation officially announced the retail system of VinPro
Technology-Electronics-a new style of electric retailing on March 10, 2015.
Vinpro opened 4 electronics retail stores with the mission of serving
Vietnamese people’s technology product using demands.
The center system of technology-electronic has 2 business models:
• Vinpro: the system of technology-electronic at supermarkets and departments.
• Vinpro+: the chain stores are located in big provinces and cities.
Picture 6: Competition 3 2.1.6. Publics
The foreign investors with financial strength and experience have
overwhelmed domestic enterprises.
Typically, the Central Group of Thailan acquired 49% of Japanese electronics store
Nguyen Kim or Nojima, which also holds 31% of Tran Anh’s electricity.
The acquisition of foreign competitors has just taken place, but in fact, many
electronics businesses have had difficulties. Over the past 5 years, a series of brand
such as WonderBuy, Best Caring, HomeOne, Viet Long, and Topcare have gone
bankrupt because they can not stand in the fierce competition market.
Pressed from the development of advanced technology to products and
become more modern, making some manufacturers abandon old models and replace them with new models.
Pressure on outdated products, when the centers are not sold out, leading to inventory of products. 2.2.
Macroenvironment Analysis
2.2.1. Demographic environment:
Population of more than 90 million people, while the proportion of people in
working age is high, with increasing living standards and income is a strong support to speed up the demand.
Vietnam is the third most populous country in ASEAN and the 13th in the world.
According to the General Statistics Office, in 2024 the population will exceed 100 million people.
Scale of urban and rural population and regions:
- Urban residence 29.6%
- Rural population 70,4%
Urban population increased rapidly, increasing middle class boosted consumer demand in the market
People 's living standards and incomes are increasing, increasing the need to
learn and consume quality products
The population is concentrated mainly in two big cities: Ho Chi Minh City,
Hanoi and big cities, so enterprises can focus on market research and marketing
activities as well as product distribution in the cities. This area helps to reduce
research and advertising costs. Being a country with high population and stable
income, the consumption of electronic products and entertainment is very high.
Creating favorable conditions for Dienmayxanh to develop the electronics retail
market and potential customers segment where the Dienmayxanh is based on the following factors: • Age: from 25-50 year old • Gender: Male and Female
• Family size : family of two generations or more
• Income: about 15 million per month or more
• Social class: middle and up 2.2.2. Economic
Vietnam's electronics market in recent years has had strong developments in
sales as well as the number of retail businesses participating in the market.
According to Mr. Ngo Thanh Dat, Marketing Director Tran Anh, in 2015, Vietnam's
electronics market grew by about 20%, with this growth rate being estimated to
reach nearly 7 billion USD. Meanwhile forecast from research firm Statista
(Germany), estimated consumer electronics market is about 10 billion USD.
Having this growth rate is partly due to the strong increase in consumer demand.
According to GFK, the consumption of electronic and refrigeration products in
Vietnam will increase from 7.3% to 11.9% in the coming years. However, the
current reality shows that, although there are always countries with high growth
rate of consumer demand, in Vietnam in the past few years, many electronics
retailers cannot exist. . The once-big names of the electronics market went bankrupt
like BestCaring in 2012, Viet Long in 2014 or TopCare in 2015. In addition, many
electronics retailers must sell themselves or enter into joint ventures with other
partners. Foreign partners to continue competing like Tran Anh sold 31% market
share to Nojima Japan, Nguyen Kim sold 49% of the share to Central Group of Thailand ...
In recent years, this market segment is still in the middle of the battle of "big
men". Although Dienmayxanh has no a long-term operating experience, it is still
considered a formidable competitor with an ambition to expand the market and to
pay for effective marketing strategies. The market for electronics and electronics
business is still considered to be very fertile and has many potentials. 2.2.3. Natural
The natural environment include the natural sources that are needed as input
by marketers or that are affected by marketing activities. Nowadays, on the earth
air and water pollution are hot issue that are being mentioned very much.
Dienmayxanh have produced several program to increase those problems.
Company executed several program that allow customers recycle their
appliances and electronics. During this time, Dienmayxanh also introduced a
recycling program at 1,000 of its stores. That program accepts most televisions and
monitors, laptops, DVD players, cell phones, keyboards, and remotes. The
company stores also contain recycling kiosks which accept ink cartridges,
rechargeable batteries, cell phones, CDs, DVDs, PDAs / smart phones, and gift cards. 2.2.4. Technology
Dienmayxanh is a tech-based company. Today, with the widespread
adoption of information technology and telecommunications industries, many new
products, services and technologies have been created and gradually. Shopping
online is one of the best way to buy things. Thanks to the Internet, consumer can
buy anything they want at home. This way is very useful and comfortable. So, all
most store choose this way to sell their products. They sell their products in the
online store (Dienmayxanh.com).
The store allows for 24-hour access. Some deals are online-only, requiring
consumers to shop on the site for big or exclusive purchases.
Dienmayxanh continually improves and gives customers the most enjoyable
and satisfying experience based on cultural background and placing customers at the center.
Picture 7: Commercial Web 2.2.5. Political
Laws, state agencies and pressure groups affect and limit different
organizations and individuals in society. The change of political factors - laws
strongly affect economic entities, affecting production and business activities. • Law on antitrust • Tax law
• Economic policy - education • Labor policy - salary • Labor law
In recent years, Vietnam has issued many documents, laws as well as
circulars and decrees that have created a legal corridor for business activities,
especially the Competition Law and the Commercial Law. Vietnam is easing trade
protection policy through a schedule of tariff reductions in the ASEAN Free Trade
Area (AFTA), and joining the World Trade Organization. From January 1, 2006,
the import tax for electronic goods is only 0-5%, which helps Dienmayxanh have
the opportunity to directly access goods from ASEAN countries to better serve
customers. In summary, the political situation in Vietnam is considered quite stable,
as in the past, Vietnam has had legal reforms to improve the investment
environment, creating favorable conditions for Dienmayxanh. as well as other
businesses rest assured to invest in business activities.
Limitations: Unstable tax law, large tariff barriers, high taxes make prices
higher than other countries - making customers consider when buying products. 2.2.6. Culture
Vietnam is a multi-ethnic nation, consisting of 53 ethnic groups and 63
provinces. Located in the humid and tropical subtropical climate zone in the North
and tropical monsoon in Central and South