Analysis for increasing the competitive ability of kinh văn hoa bookstore on hcmcs market

MINISTRY OF EDUCATION AND TRAINING HCM CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY DEPARMENT OF INTERNATIONAL BUSINESS ADMINISTRATION GRADUATION PAPER • ANALYSIS FOR INCREASING THE COMPETITIVE ABILITY OF KINH VAN HOA BOOKSTORE ON HeMe's MARKET Student's name : TRAN TUYET MY Student's code : I1DH490389 Advisor : NGUYEN DUe HOAI ANH, Ph.D - JUNE, 2015 ACKNOWLEDGEMENT Firstly, I am very grateful to my parents and my elder brother for always standing by my sides and encouraging me during the process of research implement Whenever I was in troubles, they were the ones to listen and gave me the best advices Without their support, it is impossible for to finish my graduate education seamlessly I would like to send my gratitude Information to the Ho Chi Minh City University Technology and the Intemational of Foreign Languages Business Administration Depatiment and for giving me the chance to experience and conduct my desired thesis Secondly, I am deeply indebted to my advisor, Ms Nguyen Duc Hoai Anh, Ph.D., who spent time to read and provided the useful suggestions thesis She also instructed and evaluations about this me how to write a paper professionally, literature and how to collect data She was a hard-working how to search lecturer and I believe her academic achievement will continue to increase Thirdly, special thanks are given to Kinh Van Hoa bookstore for supporting and facilitating me to collect the data and helpful information to understand clearly the business activities I am also grateful to the writer Nguyen Nhat Anh, for his valuable infom1ation as the guidance of my research Last but not least, during the time of writing this research, my friends for always being there when I need and giving assistances in many aspects that I cannot list them all because of limited space Especially, I would like to acknowledge my special friend for spending his time to help me collecting the surveys and stimulating me whenever I was in pressure Best regards, Tran Tuyet My • ADVISOR'S ASSESSMENT Student's Name Trim Tuyft My Class KMl103 Again, I have this oppOltunity to work and study with excellent students of the Department of Intemational Business Administration as an advisor on the preparation of their graduation papers Therefore, I would like to say thanks for all the chances that the , board of management gave me to palticipate in this event • I have been appointed to give instmction to Trim Tuyft My in researching and completing her graduation paper with the title: "Analysis for increasing the competitive ability of Kinh Van Hoa bookstore on HeMe's Market " As we know, Vietnam now is the 150th member of World Trade Organization, more difficulties and challenges are ahead for domestic firms as well as foreign companies Moreover, Vietnam now becomes one of the fastest - growing economies in the world, it also leads to the growth of the education framed experiences, framework Knowledge is a fluid mix of values, contextual infOlmation, and expert insight that provides a for evaluating and incorporating new experience and infOlmation It originates and is applied in the minds of knowes So, we can get knowledge from various ways that we can And reading books for getting knowledge is one of familiar ways that we usually use every day Kinh Van Hoa Bookstore is not a known brand like FAHASA or Nguy~n Van ell" in HCMC, however, it was established by a very famous writer - writer Nguyen Nhat Anh who wrote the most interesting detective series of his literary career "Kinh Van Hoa" about 15 years ago for teenagers Therefore, a research on competitive ability is quite important for small business that are coming to upgrade to the professional firms in order to compete and survive in HCMC market ii The graduation paper is divided into three parts, and each of them undertakes its content to provide this research competition Chapter and market segmentation, I provided the generalization especially about brand, focused on the product and product strategy concepts Chapter 2, the writer introduced the Kinh Van Hoa bookstore and its current situations, establishment, development, and business activities in the competitive situation in HCMC market The same time, in this part, she tried her best to collect and manage necessary data via survey for highest achievement Lastly, analyzed data and information with purpose to increase the competitive bookstore In my opinion, the outstanding she provided, ability of KVH point of the paper that the writer used her knowledge to analyze, compare, and give her opinion of the company's marketing mix strategy, especially in products aspect with the methods that she studied in the university In brief, the paper is good and worth getting a good mark ADVISOR'S SIGNATURE AND NAME DBA Nguylll Dft'c Hoai Allh •• iii ABSTRACT Nowadays, in the market economy, the competition is one of the motivations for developing almost businesses, especially book trading occupation Nowadays, this sector is developed with two main types of book business: the traditional paper book business (dividing into two forms of trading: the traditional bookstores and the online book selling websites) and E-book Cun.ently, in HCMC, there are more than 60 bookstores in which averagely there are bookstores in each districts In addition, more than years ago, the form of on-line purchases and E-books appeared, but lately, it became the welcomed and popular book trading method Besides, the other competitive forces are the customers, suppliers, new entrepreneur and the substitutes which would also have the seriously affection toward the bookstores Therefore, the competition in price, distribution, quality, etc between bookstores and also book selling websites was more and more fierce Three year ago, establishing in the center of District 1, besides the advantages, Kinh Van Hoa bookstore (KVHB) also faced with the difficulties in competing with others This research would help KVHB increases its competitive ability on HCMC's market by the comparisons of diversifies bookstore's business, especially the marketing activities and the analysis of KVHB's marketing activities Moreover, besides the activities of bookstores, this research also mentions the customers' awareness, demand and opinions in selecting books and evaluation about these bookstores, especially KVHB iv TABLE OF CONTENTS ACKN WLED GEMENT i ADVISO R' S ASSESSMENT ii ABSTRACT iv TABLE OF CONTENTS v LIS T F FIGURES vii LIS T F PICTURES ix INTR DUCTI ON 1 THE RESEARCH OBJECTIVE SCOPE OF THE RESEARCH RESEARCH ME TH D STRUCTURE OF THE RESEARCH CHAPTER 1: GENERALIZATION ABOUT BRAND, COMPETITION AND MARKET SEGMENTATION 1.1 BRAND 1.1.1 Definitio n about brand 1.1.2 Roles f brand 1.1.3 Brand eq uity 1.2 CONCEPT OF MARKET COMPETITION 1.2.1 Market concept 1.2.2 Co mp etition concept 1.3 10 THE MARKET SEGMENTATION 1.3.1 Segment marketin g 11 1.3.2 Local mar ketin g 12 1.3.3 Custo mized marketing 12 CHAPTER 2: AN OVERVIEW OF THE COMPETITIVE SITUATION OF THE BOOK MARKET IN HCMC AND THE POSITIONING •• OF THE KINH VAN HOA BOOKSTORE 2.1 GENERAL INTRODUCTION 14 ABOUT BOOK MARKET IN HO CHI MINH CITy 14 2.1.1 The paper book market G 14 v 2.1.2 The online selling book luarket 15 2.2 19 VER VIEW OF KVHB 2.2.1 History and development of KVHB 20 2.2.2 The business field of KVHB 21 2.3 RESEA RCHIN G PROCESS 23 2.3.1 Me th od 23 2.3.2 Surv ey 23 2.4 THE RESULT OF SURVEY 25 2.4.1 The segmentation and target customers 25 2.4.2 The KVHB's competition base on forces of Michael Porter 27 2.4.3 The KVHB's brand value and business operational status 38 2.4.4 The evaluation toward the products and service of KVHB 43 CHAPTER 3: SUGGESTION FOR INCREASING THE COMPETITIVE ABILITY OF KINH VAN HOA BOOKSTORE ON HCMC'S MARKE T •• 47 3.1 PRODUCT 47 3.2 PRIC E 49 3.3 P LA C E 50 3.4 PRO MOTI 0N 50 CON CL USION 53 REFERENCES APPENDIX vi LIST OF FIGURES Page Figures Figure 2.1: Sex of respondents 25 The job of respondent 25 Figure 2.3: The age of respondents 26 Figure 2.4: The income of respondents 26 Figure 2.5: The frequency of going to bookstore or 26 surfing the book selling websites Figure 2.6: The rate in books selections Figure 2.7: The frequency 26 of using channels in purchasi 27 books Figure 2.8: The frequent selection of bookstores 28 Figure 2.9: The information source of traditional bookstores 29 10 Figure 2.10: The popular book selling websites 29 11 Figure 2.11: The infonnation 30 source of book selling websites 12 Figure 2.12: The 0pllllOn about bookstores (Unit: 33 respondents) 13 Figure 2.13: The opinion about book selling web sites (Unit: respondents) 34 14 Figure 2.14: The brand awareness 39 15 Figure 2.15: The information source of traditional bookstore 39 o vii • 16 Figure 2.16: The coming turns ofKVHB's customers 40 17 Figure 2.17: The rate of payment per bill 41 18 Figure 2.18: The popular books of KVHB 42 19 Figure 2.19: The impressive factors of customers towa 42 KVHB 20 Figure 2.20: The evaluation of customers about KVHB (Un 43 respondents) 21 Figure 2.21: The buying turns in HCMC 46 22 Figure 2.22: The evaluation of customers about online selli 46 business of KVHB viii o LIST OF PICTURES • ' Pictures Page Picture 2.1: The rate of book selling off in Vinabooks.vn 16 Picture 2.2: The The rate of book selling off in Tiki.vn 17 Picture 2.3: The location ofKVHB 19 Picture 2.4: Inside of KVHB 21 Picture 2.5: Other products ofKVHB 22 Picture 2.6: The Tiki's fan-page 30 Picture 2.7: The "children day" promotion ofCa Chep 32 bookstore Picture 2.8: The shipping charge table of Tiki 34 Picture 2.9: The 2014 book fair ofTre publishing house 36 10 Picture 2.10: The 2014 book fair ofNha Nam publishing 36 house 11 Picture 2.11: The infonnation of opening second Ca Chep 37 bookstore 12 Picture 2.12: Comparison about the amount of 39 followers between Ca Chep and KVHB' fan page 13 Picture 2.13: KVHB in Hai Chau book fair, 2015 40 14 Picture 2.14: Promotional gift program in KVHB 41 15 Picture 2.15: The List of product on KVHB's website 45 G ix with its rival The suggestion is that this bookstore should focus this competitive point by advertisement or creating a impressing slogan relating to this amazing feature -'i- Segment by behavior In this factor, the customers' behavior was concerned by the purchasing occasion and the loyal level which were the major affections for KVHB Besides owning books, the customers often purchase them as gifts for their beloved ones Nowadays, this trend is more well-liked by readers who are young, since the meaning of books would be the interesting presents ever as "The only impOliant thing in a book is the meaning that it has for you", Somerset Maugham said KVHB is one of the few bookstores that have the useful service - free book wrapping for any customers who have demand With this interesting activity, KVHB could launch this service with large quantity of books For instance, KVHB could go to advetiise its books with free wrapping to some educated centers or schools where may have the demand of educational presents for students in some occasions as closing ceremony In this service, KVHB would directly select the most suitable books and wrap them for customers Besides that, the displaying space for products seasonally is the other idea to attract the customers For example, in the Christmas season, KVHB should has a comer to lay books and KVHB's products which relate to that season with beautiful decoration and sale promotions as buying Christmas books receiving Christmas gifts, so that KVHB would become an amazing and impressive place by adding these activities Furthermore, besides always updating new titles of books, the membership card is the second factor for retaining customers As mentioning above, although the membership card was already applied in KVHB, up to now, it did not effective at all The first reason is the obsolete presents which had not sold out previously The second one is the omission of cashiers in asking the ID of customers' card whenever handling payment and receipt Therefore, the customers would tend to less use that card to collect points At the result, many customers did not concern the point collection at all The customer loyalty was also affected slightly The first solution is that KVHB should pay more attention to the members' gifts The value from them could get much impression from customers, so that they might have the motivation in buying books for point collection in the next time The second solution 48 c is that KVHB's cashiers need to memorize their job responsibility and encourage the customers to get membership card as well In addition, the customers come to KVHB because of the nice place, selected books and especially the active staff However, the knowledge of cashiers toward books is one of the requirement whenever working in a special bookstore as KVHB In some cases, the customers would like to be introduced the suitable books for them or giving some briefs about some specific titles This could be the amazing point if KVHB's cashiers could adapt these customers' requirements For solving this issue, the human resource department should be recommended to recruit the cashiers who had the experience about book, especially the literature type Furthermore, the hobby of reading books is also the important requirement that the interviewer should notice whenever selecting cashiers 3.2 PRICE As the rival - Ca Chep bookstore, KVHB normally sells books with the cover prize However, Ca Chep also had more sale promoting days than KVHB By the pleasing price as that, the amount of customers comes to Ca Chep bookstore increasing day by day As the result, this disadvantage of KVH could be improved by creating some discounting programs as previous years (picture 3.1) to compete with Ca Chep bookstore which late opened - December, 2013 Picture 3.1: The discounting programs ofKVHB in the year 2012,2013 GifJ'm gift 25% sach tu6i mCli ICIn tV 25/6 d~n 1/7 ~ (Source: https://www.facebook.com/tiemsachkvh) 49 Besides that, in the online selling field, KVHB also charged the shipping fees even though inside of the city With this method, KVHB hardly competed with the others The suggestion is that besides having the signature of NNA inside of his books, KVHB should add free bookmarks, book cover, etc for satisfying the customers 3.3 PLACE The area of KVHB is quite smaller than the normal bookstores Additionally, the front side of KVHB is not refurbished, so that it was not seemed to be attractive than before Moreover, the location of it is inside of an alley which created the difficulty for customers in looking for the bookstore These all disadvantages were complaint by many customers The suggestion for the location of KVHB is that it should create the directional board at the entrance of the alley so that the customers could seek for it conveniently Besides that, the parking lot should be provided the parking guard as well In addition, Since KVHB has the disadvantageous location, it should have more activities in advertising itself for getting more customers awareness The "Book street" which was organized in the April, 2015 was the oppOlwnity for KVHB to get more attention of customers However, after participating in the "Le Van Tam book fair 2012", KVHB did not take part in any book events in HCMe Moreover, by attending in book fair events which were organized near KVHB, the people who live near KVHB would be easy to recognize it 3.4 PROMOTION The last but not least to raise the competitive ability of KVHB is the promotional activities Firstly, to increase the customer awareness and loyalty, KVHB had established some interesting events at bookstore for alluring readers to come, so that KVHB not only might impress them by these special activities but also gain the relationship between customers and bookstore In the first two years, events as the Christmas, birthday party with well-prepared plans had been posted on Face-book only (Picture 3.2) However, there were few customers came and enjoined these days Since, at that time, KVHB had low amount of customers, so that the effectiveness of these events' adveliisement was not as expected o 50 The solution is that up to now, with higher amount of customers, KVHB should send the invitation by letters or phone messages to the customers who have already registered membership cards instead of only using Face-book With this solution, KVHB could calculate the amount of customers who could attend the events by the replied message from them Picture 3.2: The Christmas event at KVHB a, tr cOIoi ~ ,\'Ia '*" b9n gl •••• IaollU.o thorn L1Q ~ G4nc SrillQl oem ~ ~ w et ? 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