(Luận văn) low customers engagement at aeon celadon shopping center

t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business hi ep w n lo ad ju y th yi pl TRAN NGOC ANH n ua al n va ll fu LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING CENTER oi m at nh z z jm ht vb k MASTER OF BUSINESS ADMINISTRATION om l.c gm SUPERVISOR: DR LE THI THANH XUAN n a Lu n va te re Ho Chi Minh City – Year 2019 y th t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad ju y th yi pl n ua al TRAN NGOC ANH n va ll fu m oi LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING CENTER at nh z z k jm ht vb n a Lu SUPERVISOR: DR LE THI THANH XUAN om l.c gm MASTER OF BUSINESS ADMINISTRATION n va te re y Ho Chi Minh City – Year 2019 th t to LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING CENTER ng hi ep Table of Contents Chapter 1: Company overview w AEON group: 1.2 AEON Vietnam: n 1.1 lo ad 1.3 Aeon Celadon Shopping Center: 12 y th Symptom: Customers decreasing 98.8% compare with last year (2018 Vs 2017) 13 Chapter 3: Problems identification 18 ju Chapter 2: yi Potential problems: 18 pl 3.1 Far from home of customers and inconvenient location 18 ua al 3.1.1 3.1.2 Unreasonable prices: 19 n Worse assortment of products: 19 va 3.1.3 n 3.1.4 Cashier check out slowly and staff’s bad attitude of services: 21 fu Validating problems: 22 ll 3.2 Manager’s perspectives: 23 3.2.2 Customer’s perspectives: 24 nh at The importance of main problem 25 Cause validation 26 z Chapter 4: z Potential causes: 26 vb 4.1 oi 3.3 m 3.2.1 Unreasonable prices: 27 4.1.2 Few famous brands: 29 4.1.3 Poor color, sizes and volume displays: 29 4.1.4 Very crowded customers at weekend and holiday: 30 4.1.5 Bad attitudes of services employees: 32 4.1.6 Employees lack of products knowledge: 33 k jm om l.c gm Validating cause: 34 Alternative solutions 37 n Chapter 5: a Lu 4.2 ht 4.1.1 Solution 1: For worse assortment of products 38 5.2 Solution 2: Worse of customer services 42 Supporting information 48 th Chapter 7: y Action plan 46 te re Chapter 6: n va 5.1 t to ng Table of Figures hi Figure 1: Finacial review of Aeon group 2018 (Unit: Thousand USD) ep Figure 2: Aeon Vietnam annual report 2018 (Unit: Billion VND) 11 Figure 3: Aeon Vietnam annual report 2018 (Unit: Billion VND) 11 w n Figure 4: Aeon Vietnam annual report 2018 (Unit: G.rate and Volume sales) 14 lo ad Figure 5: Aeon Vietnam annual report 2018 (Unit: No Of competitors - Stores) 15 y th Figure 6: Aeon Vietnam annual report 2018 (Unit: No of customers) 16 ju Figure 7: Aeon Vietnam annual report 2018 (Unit: VND) 16 yi Figure 8: Customer survey report of Dec,2018 (Unit: Ratio%) 18 pl Figure 9: Customer survey report of Dec,2018 Ele (Unit: No of customers) 20 al ua Figure 10: Customer survey report of Dec,2018 Mul (Unit: No of customers) 20 n Figure 11: Customer survey report Cust Purchases in food line (Unit: Ratio%) 27 va Figure 12: Customer survey report Cust Purchases in soft line (Unit: Ratio%) 28 n ll fu Figure 13: Customer survey report Cust Purchases in hard line (Unit: Ratio%) 28 m Figure 14: Hard line annual report 2018 sales and GP (Unit: billion VND) 30 oi Figure 15: Number customers at weekday (No of Customers) 31 nh Figure 16: Number customers at weekend (No of Customers) 31 at z Figure 17: Annual report 2018 No of customers complaints (Unit: No cust) 33 z Figure 18: Annual report 2018 No of cases (Unit: No cases) 33 vb ht Figure 19: Annual report 2018 No of cases (Unit: No cases) 34 jm Figure 20: Estimated costs first solution and second solution (Unit:VND) 41 k Figure 21: Estimated costs first solution (Unit: VND) 44 gm Figure 22: KPI Revised update (Unit: Weight) 44 om l.c List of Diagrams a Lu Diagram 1: Aeon group global expansion n Diagram 3: Aeon Vietnam philosophy 10 th Diagram 6: Final cause effect map of Aeon Celadon 36 y Diagram 5: Initial cause effect map of Symptom 26 te re Diagram 4: Aeon Celadon organizational structure 12 n va Diagram 2: Aeon Vietnam organizational structure Executive summary: t to ng Customers experience is one of the most significant factors in retail industry hi ep and it will enhance customers’ engagement that can be interpreted as customers’ interaction in terms of perception, emotion and behavior toward a store Thus, the w n high customer engagement is able to improve customer satisfaction, strengthen lo ad customer loyalty and encourage oral behavior, which helps to keep a sustainable ju y th competitive advantage and allow them to charge higher prices and higher profit margins than competitors yi pl However, at Aeon Celadon Shopping Center face is Customers decreasing al ua 98.8% compare with last year (2018 Vs 2017) Using different literature reviews n and concluding in-depth interviews, survey among customers and employees at va n Aeon Celadon Shopping Center, this research aims to define what the main problem fu ll is, why it is the main problem, how important it is and how it affect to the business m oi performance at Aeon Celadon Thus, the findings show that has some potential nh problems are listed as: Far from home of customers and inconvenient location; at z Unreasonable prices; Worse assortment of products; Cashier check out slowly and z ht vb staff’s bad attitude of services And main problems are Worse assortment of jm products, Worse of customer services Main causes are Few famous brands and bad k attitudes of services employees And solutions for these issues are hire gm Merchandiser expert from outside to make new strategies for Electrical and om l.c Multimedia department and Training for service employees In conclusion, the thesis points out the central problem at Aeon Celadon a Lu Shopping Center, what main causes of the problem and how to make outstanding n n well as business performance at Aeon Celadon Shopping Center va decision of the solutions to solve the problems, to increase customer engagement as y te re th Chapter 1: Company overview t to ng AEON group: hi 1.1 ep Aeon group is one of the biggest retailers in the world with over 250 years of w establishment and development It’s headquarters is located in Chiba, Japan During n lo the long-term history of operations, Aeon group always keep the solid commitment ad to customers that is “Customer First” Towards a prosperous, stable and happy y th ju society is the basic principle in the operation of Aeon group Its high accountability yi to customers has helped Aeon group have important achievements in gaining pl ua al customers’ trust and expanding business scale as well in both Japan and other Asian countries n va Below is the milestone of Aeon group n ll fu • 1758: first established the Shinoharaya shop at Yokkaichi nh name to Okadaya oi m • 1887: moved Shinoharaya store to Yokkaichitsuji city and changed its at • 1926: rebuilt Okadaya into a joint stock company z z • 1959: Okadaya kimono fabric store changed its name to Okadaya with jm ht vb a capital of up to 15 million USD • 1969: merged three companies including Okadaya, Futagi and Shiro k gm to establish Jusco company om • 1989: Jusco changes its name to Aeon Group l.c • 1984: Jusco expanded its business in Malaysia and Thailand a Lu And net sales revenue of Aeon group in 2018 archived 68.977 billion U.S n n va dollars y te re th t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb gm om l.c Figure 1: Finacial review of Aeon group 2018 (Unit: Thousand USD) In recent years, the average age of Japanese population has been increasing a Lu and the market tends to be saturated, so one of Aeon's new strategies is to invest n growth rate in the ASEAN region Vietnam is the first Southeast Asian country y te re selected by Aeon to invest in development after 30 years of development in n va in other developing countries, especially those the country has a high economic next second Aeon Japan th Malaysia and Thailand, and Aeon group strategies is making Aeon Vietnam by t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n AEON Vietnam: supermarkets which are the main business activities of Aeon group Besides, Aeon Vietnam implements other business activities relevant import and export, commerce and market research There are four shopping centers in Vietnam, th Aeon Vietnam has operated as trade centers, department stores and y Aeon Hochiminh Representative Office was established in 2009 Since 2011, te re 1.2 va Diagram 1: Aeon group global expansion three in the South and one in the North They are Aeon Tan Phu Celadon, Aeon t to ng Binh Tan in Hochiminh City, Aeon Canary in Binh Duong and Aeon Long Bien hi in Hanoi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Diagram 2: Aeon Vietnam organizational structure AEON Vietnam Vision statement: t to ng Aeon Vietnam wants to become a firm that will reach the soul of five billion hi people over Asia ep AEON Vietnam Mission and Philosophy statement: w AEON Vietnam mission and philosophy is encapsulated in three words, n lo they are “peace”, “humanity” and “community”, following the commitment of ad y th Aeon group “Customer First” These values are always maintained at anywhere ju Aeon its business, which positions Aeon as a human-to-human enterprise, a yi pl member contributing to the development of local communities n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm Diagram 3: Aeon Vietnam philosophy a Lu AEON Vietnam focus on shopping center and supermarket chain The n chain of shopping centers and supermarkets in AEON is currently being meeting the taste and tastes of the local people, as well as providing the necessary services 10 th and household items These items are carefully selected and inspected, perfectly y day-to-day support for a wide range of industries, from clothing to food items te re department store and shopping mall provides customers with comprehensive n va successfully operated in Japan and many other countries in Asia The AEON As a basis for evaluation somes key benefits and costs for t to ng first solution and second as follows: hi ❖ Benefits: ep ✓ Motivation and participation of higher employees w ✓ Improved customer service skills n lo ✓ Increase customer satisfaction ad ✓ Increase organization profits y th ju ✓ For individual employee incentives yi ✓ Employee engagement pl ua al ❖ Costs: The estimated cost for first solution outlined above is specified in detail as follows: n n va ll fu oi m at nh z z k jm ht vb om l.c gm Figure 20: Estimated costs first solution (Unit: VND) n a Lu n va y te re th Figure 21: KPI Revised update (Unit: Weight) 44 After analyzing and comparing the estimated benefits and costs between two t to ng potential solutions above, the first solution focuses on training for service hi employees for improving customers services sactisfaction at Aeon Celadon with ep costs VND 110 million should be choose w In fact, since the KPI system is only used once a year at the end of the year, n lo managers are hard to keep tracking of the advantages and disadvantages of regular ad employees to evaluate them accurately y th ju Specifically, the first solution training for service employees that can make yi the department little bit costs However, training for service employees make the pl ua al business of the company are greater is because of the loyalty they command from their customers This loyalty ensures that customers stay with the company over the n n va years ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 45 Chapter 6: Action plan t to ng Based on literature reviews, actual finding and two solutions presented hi ep above, the Aeon Celadon needs to perform actions with four steps for each solution as following: w n • Solution1: Hire MD expert from outside lo ad Step1: Candidate sourcing ju y th Step2: Application tracking yi Step3: Interview and job selection process in recruitment pl Step4: Handing over the employment offer al n ua Thus, a detailed six-months action plan from January 2020 to June n va 2020 will be planned as follows: ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 46 • Solution2: Training for service employees t to ng Step1: Create Objectives and Outcomes hi Step2: Develop Targeted Content ep Step3: Track Training Effectiveness w Step4: Continuous Training n lo Thus, a detailed six-months action plan from January 2020 to June ad 2020 will be planned as follow ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 47 t to ng Chapter 7: Supporting information hi ep Interviewee’s Demographic: w n lo Name 1Ms Miyata ad No y th ju 2Mr Nguyen Thanh Trieu 3Ms Phan Thi Hao yi pl ua al n 4Mr Nguyen Ba Tien n fu Customer ll oi m 6Ms Ngoc Thuy va 5Ms Ngoc Tuyen Position Head of MD Hardline Hardline Manager Softline Manager Foodline Manager Customer at nh z z 7Ms Nguyen Thuy Customer Hang 8Mr.Yasuo Nishitohge General Director Working Time of Experience interview years 2, Mar,2019 years 2, Mar,2019 years 2, Mar,2019 years 2, Mar,2019 Customer 2, Mar,2019 Customer 2, Mar,2019 Customer 2, Mar,2019 years 2, Mar,2019 Place of interview Aeon Celadon Aeon Celadon Aeon Celadon Aeon Celadon Aeon Celadon Aeon Celadon Aeon Celadon Aeon Celadon k jm ht vb om l.c gm n a Lu n va y te re th 48 t to ng Transcript from interview: hi ep Theme w Coding Category + Internal + Internal working working situation situation + Teamwork 1.What are the key factors that you n lo consider most in your department? ad y th Ms Miyata head of MD: I’m strategies ju yi that focus on imported products to make pl store difference with the competitor, but al ua unfortunately after two years I found was is n + Recognition + Recognition n va wrongs because almost of famous brand fu have a manufacturing in Vietnam so ll assortments and price very competitive oi m compare with imported products at nh z Manager at Celadon store: Almost of + Internal product in hand manage are aging stock and working z Mr Nguyen Thanh Trieu Hardline vb jm ht situation k model is not updated, even store have strong situation gm promotion but can not sold out, so that very + Internal working + Recognition + Teamwork l.c difficult for me to make Visual Merchandis om + Recognition Display to attrack customers + Internal working working situation situation + Teamwork y te re th develop valuable work-skills and received + Internal n team where I have been guided to support to va Aeon Celadon: I love working in good n a Lu Ms Phan Thi Hao Softline Manager at + Recognition + Recognition some encouragement to contribute In general, I love to work with my team as well as Celadon store 49 t to ng Mr Nguyen Ba Tien Foodline Manager hi at Aeon Celadon: I am working at Aeon ep almost years, I got a lot of support from w my boss my team and all of department n lo related and that make me happy to work at ad here y th ju 2.What are department you will focus on yi for improvement? pl al n ua Ms Miyata head of MD: I’m will focus on va famous brand has manufacturing in Vietnam +Merchandising +Categories management n +Brands fu at Electrical and Multimedia department ll management oi m And that is my strategies for this year +Sales, GP management l.c +Ordering management System +Merchandising n te re management y +Inventory th days especially kids’ department +Area selling floor va inventory in Softline from 90 days to 60 +Sales, GP n with high inventory so my focus to reduce a Lu profit quite good however my line facing om Aeon Celadon: My line sales and gross +Merchandising gm System k +Ordering strategies to attract more customers Ms Phan Thi Hao Softline Manager at management jm meet with Merchandising Department ht Electrical and multimedia department to +Area selling floor vb area manage selling floor especially z enough ordering to full fill products in my z Manager at Celadon store: I will make at nh Mr Nguyen Thanh Trieu Hardline management 50 t to ng hi Mr Nguyen Ba Tien Foodline Manager +Training +Training and at Aeon Celadon: Last year I have training +Coaching development staffs in Japan, so this year I will focus on how skills ep training to my staffs the same skills with w Aeon Japan for all department in my line n lo Do you have ever shopping in Aeon ad and it is satisfaction for you? ju y th yi Ms Ngoc Tuyen customer: I’m waiting for pl ua al more than 20 minutes to get past the cash register at Aeon Tan Phu, my house in +Shopping +Customer behavior services n +Satisfaction n va District - Ho Chi Minh "Guests are too ll fu crowded, I am afraid to squeeze so I only oi m buy a few exotic fruits and vegetables and have trouble because the system is faulty, at nh come back Go to the checkout counter and z z not receiving payment by card n n va products, I’m very anxious about a Lu without checking again and took the bill or services om message, the cashier returned her money +Customer l.c counter every time, I’m always had to check behavior again and was wrong, when I sent the wrong +Satisfaction gm +Shopping k jm and was mistaken for the money at cashier ht vb Ms Ngoc Thuy: I’m often went to Aeon te re calculating the wrong and getting the money y back, and she ask where Aeon's reputation th is, and always make the wrong money, so she have to take precautions and simply refund the money and this is make she 51 dissatisfied t to ng hi Ms Nguyen Thuy Hang customer: I ep usually shopping in Aeon in general Aeon w quite good and however some need to n lo improve, one-time I have a payment at the ad counter the cashier staff has an +Shopping +Customer behavior services +Satisfaction y th ju inappropriate attitude when among the items yi I pay, there is product without code pl ua al Should not be able to display the payment amount It is thought that the staff should n n va guide them enthusiastically and warmly, ll fu explain to me rather than expressing an oi m uncomfortable attitude and saying, "this unacceptable Attitude should be reviewed at nh product is not paid out" I find such service k jm ht vb first floor and the second floor in this z Have you ever purchased goods on the z and revised l.c gm department store? management category category floor management y satisfaction th Ms Ngoc Thuy: I always purchase apparel +Selling te re +Purchase by n not attract me behavior va second floor because the goods so boring +Categories n first floor and I has never purchase in +Purchase a Lu purchase apparel for my Kids and myself in om Ms Ngoc Tuyen customer: I always for my Kids and myself in first floor and in second floor I has purchase some goods of +Purchase +Categories behavior 52 household only category by management t to ng category hi ep Ms Nguyen Thuy Hang customer: I +Purchase always purchase for food in ground floor satisfaction +Selling floor management w only n lo ad What are products did you purchase ju y th and how much prices? yi pl Ms Ngoc Tuyen customer: I purchase al ua food and apparel for my family management n behavior va category n Ms Ngoc Thuy: I purchase food and ll fu apparel for my family +Categories +Purchase oi m category management +Purchase +Prices satisfaction management jm ht vb For Electrical and Multimedia z only z always purchase for food in ground floor floor at nh Ms Nguyen Thuy Hang customer: I by +Selling k products, where you usually gm purchase? The reason you choose to om l.c purchase at those places? a Lu Ms Ngoc Tuyen customer: I always n va purchase in Dien May Xanh and The Gioi n Di Dong, because there are a lot of products te re to choose and their very good services like y I'm very satisfaction about that Ms Ngoc Thuy: I always purchase in th testing, installation software, delivery … +Purchase behavior +Categories category by management 53 t to ng hi Nguyen Kim, because my have good category relationship with their very long time, every +Purchase purchase I choose Nguyen Kim and more satisfaction ep over I have the silver member card, so they w have special promotion for me n lo ad Ms Nguyen Thuy Hang customer: I y th ju always purchase in Dien May Xanh and The yi Gioi Di Dong, because nearby my house pl ua al How you think customers services n ll fu improvement n va at Aeon Celadon? and any suggestion for oi m there are some cashiers who are no longer +Customer new because I have seen uniforms but services professional not yet stable, dealing with the +Satisfaction situation is not fast, if at the time of and crowded, it will take a long time and guests suggestion at +Shopping z nh Ms Ngoc Tuyen customer: Today I see z behavior vb k jm ht management l.c gm waiting I think Aeon should regularly om check skills qualifications a Lu n Ms Ngoc Thuy: I sincerely comment on n va the working attitude of cashier on how to +Customer cashier instead of gently handling, glare- behavior services collecting revenues patted the table to +Satisfaction management challenge customers to inform customer and th +Shopping y transaction process Customers wonder, te re deal with customers during the direct 54 service department I hope, and other suggestion t to ng customers will not have to encounter this hi unhappiness during the next shopping ep w Ms Nguyen Thuy Hang customer: I am +Customer n lo very interested in services in Aeon Celadon, ad but I have contributed some issues about +Shopping services behavior management y th +Satisfaction Myself I have joined Coop mart every time and ju customer care service in Aeon Celadon yi pl suggestion ua al Tet comes to Coop mart, I take good care of the staff, they all give gifts to all Coop mart n n va members who have a lot of accumulated ll fu points will be given gifts while in Aeon Tet oi m holiday see nothing Because I am near nh Aeon, so I shop here more than Coop mart at But when I went to Tet I still got gifts from k jm ht vb business situation at Aeon and facing z Dear Sir, could you let us know about z Coop mart gm with the problem? Mr Yasuo Nishitohge General Director l.c om of AEON Viet Nam: “As you know, in a Lu 2018, AEON Vietnam has been in operation n for years Until now, we have been years As a result, we have achieved great situations development strategies th success thanks to your efforts Besides, we Business y Business te re catching new challenges during the past n va developing year by year and always have learned from mistakes I think the most important point of the retail industry is to 55 gain experience as an opportunity to learn t to ng and improve Nothing is better than lessons hi learned from business I want to remind ep with you that the biggest risk is when we w never take risks That is, all businesses must n lo evolve into new markets because the times ad will change, customers' shopping needs also y th ju change and the competition situation yi changes rapidly each year The key point is pl ua al that we have been expanding the size of the Company in the last years On this n n va momentum, we are also facing new ll fu problems with customers decreasing 98.8% k om l.c gm opportunities in the future.” jm capture and take advantage of great ht strategies On the other hand, we need to vb important role to predict future business z issues more carefully because this has an z focus look to the future and consider the at developing business and always need to nh plans, new rules, new systems, etc to oi m at AEON Celadon so we have to make new n a Lu n va y te re th 56 t to ng References Christou P Vietnam's retail market: Future growth hi ep https://wwwkantarworldpanelcom/vn/news/Vietnams-retail-market-Future-growth2018 Salahuddin ABEA, Mohammad Muzahid Antecedents of Retail Store Image in the Context of a w n Leading Retail Superstore in Bangladesh Scholarly Journals 2014;7(7):90-109 lo Velayudhan SK Outshopping in rural periodic markets: a retailing opportunity Scholarly Journals ad Chang S-HW, Kai-Yu INVESTIGATING THE ANTECEDENTS AND CONSEQUENCES OF AN OVERALL ju y th 2014;42(2):151-67 yi Gil-Saura IRM, M Eugenia; 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