Bát Tự Vi Sư.pdf

However, within the framework of this project, our team only focuses on retail and distribution of FPT's technology equipment/products.FPT Retail is a chain of stores that has more than

RETAIL FINAL PROJECT

Retailing management

Class: 211.MGT1149.B04 Lecturer: Dang Truong Thuy Anh Member:

1 Nguyen Thanh Danh

2 Ngo Ngoc Han

3 Pham Nhat Hung

2.2 Merchandising, types of product 5

2.4 Advertising at the specific location 6

1 Retailer introduction

FPT is a leading technology corporation in Vietnam, established inSeptember 1988 The company operates in four business sectors:

technology, telecom, retail, and education (L ĩnh Vực Kinh Doanh, n.d.).

However, within the framework of this project, our team only focuses

on retail and distribution of FPT's technology equipment/products.FPT Retail is a chain of stores that has more than 30 partners, includingworld-renowned technology companies like Asus, Acer, Apple, Dell, HP,

Lenovo, Microsoft, and more than 700 locations countrywide (L ĩnh Vực Kinh Doanh, n.d.) After The Gioi Di Dong, FPT is Vietnam's largest

electronics retailer, and in October of this year, Vietnam Report namedFPT one of the top ten most prestigious retail enterprises in the countryfor durable products (Vietnam Report, 2021)

In terms of distribution, FPT has partnered with over 1500 agencies to

help sell FPT play box devices (L ĩnh Vực Kinh Doanh, n.d.) With many

seller support policies and many accompanying benefits

FPT rapidly struck a contract with Apple in 2012 to become theirVietnamese distributor FPT says that these stores are called F.Studioand that they have a comprehensive Apple store model, which includesLevel 1 APR (Apple Premium Reseller), Level 2 AAR (Apple Authorized

Reseller), and CES (Consumer Electronic) Stores (L ĩnh Vực Kinh Doanh,

n.d.)

2 Activities of the retailer

2.1 Location, area space

FPT Shop and F.Studio are managed by FPT Digital Retail Joint StockCompany (FPT Retail) FPT Retail, established in 2012 (Chuẩn, 2021), areoperating 2 retail chains: FPT Shop and F.Studio As of January 2021,FPT Shop has 593 stores (FPT Retail, 2021) Entering 2017, F.Studio byFPT is a chain of stores specializing in providing genuine Appleproducts and services under FPT Retail with 15 stores nationwide.FPT Retail's stores have an average area of 75-100 m2 (ICT News, 2019)and are leased with long-term contracts to ensure stable businessoperations of the Company during the rental period and providecustomers with a comfortable space roof for shopping

2.2 Merchandising, types of product

FPT Shop is the leading distributor and retailer of technologyproducts/equipment in Vietnam with:

● More than 30 partners are world-famous technology brands such

as Asus, Acer, Apple, Dell, HP, IBM, Lenovo, Cisco, Microsoft,Oracle, …

● Owning its brand named FPT for phones, computers, and tablets.The main products provided by FPT Shop include:

● Phone

● Tablet

● Laptop

● Desktop

● Mobile phone accessories

2.3 Layout, design, decor

Layout

The writers believe FPT Shop and F.Studio are designing their store in amixed layout after considering nine different layout designs Becauseall six stores we visited, four of FPT Shop in Nguyen Thi Minh Khai andCMT8, District 3; Hoang Van Thu, Phu Nhuan District, and Tan BinhDistrict; two of F.Studio in Le Loi, District 1 and Hoang Van Thu, TanBinh District, display their products on shelves that are lined up straightand parallel, and on shelves at the end of the row as in a grid layout.And as in the spine layout, they also have a broad straight line

In general, such a design is practical, because some products, such asthose from big brands, need to be exhibited very specifically indifferent areas to draw shoppers' attention and show theexpensiveness Other smartphone products are stored in glass cabinets

at the end of the row to make them more visible and to keep them safefrom theft To save room, laptops and other products such as printers,air purifiers, and so on are left on multi-tier shelves.

● It oozes modernism and sophistication with three main tones ofblue, orange, and green Demonstrate passion and encourageinnovation, leaving a positive impression on young people

● "Energizing Life" is the slogan (FPT - Energizing Life) FPT's mainphilosophy is to energize customers, partners, organizations, andconsumers through intelligent IT service solutions This brandstrategy outlines the corporation's development path in pursuit

of the "For e-citizen" strategy (Nguyên, 2013)

FPT's brand identity indicates that they are aiming for customers whoare youthful, enthusiastic, and interested in technology Furthermore,they emphasize their modernism and originality

As a result, FPT Shop uses black tones with red accents, whereasF.Studio uses all black These are wise decisions because, as MichelleReynolds points out in her article "Color Meanings in Retail Design,"black is a striking and dramatic color that attracts young buyers lookingfor fashionable things Although red is a powerful and passionate hue,too much of it can make people feel tense and violent Red can beutilized to draw clients' attention if used carefully

Decor

To inform customers about new products, FPT shop outlets utilizedecals and banners as window displays

2.4 Advertising at the specific location

FPT Shop store advertising is very standard to any aspect as it usesbanners on the front and there is a long banner across the store roof forshowing to anyone who runs past the store Step in the entrance,posters are sticking right into the entrance doors as furthermore, there

are advertisements on the wall, the table, which is usually promoting anew product, a new discount or an event.

2.5 Pricing strategy (past)

FPT Retail as one of the biggest retailers in the field of digital devicesand technological services is using a combination of three differentstrategies which are competitive pricing, value-based pricing, andcost-based pricing As competitive pricing, FPT Shop needs to competeagainst other competitors, especially, The Gioi Di Dong so they areadjusting their prices by those of their enemies or with cost-basedpricing the price is being fluctuated differently depending on thecurrent situation but it is certainly are almost lower than those ofcompetitors at the same time except for those newly released products.For cost-based pricing, FPT shop is like any other digital devices retailer

on the market, which is set their price by the original cost of goods plusthe additional charges or a fixed percentage for the final retail price but

it will usually end up at least 2 times of the original cost of goods.Finally, using value-based pricing is very common throughout the retailindustry so FPT shops are no exception, and they are adjusting theirprice based on the consumer’s view of the point that they think howmuch the product should be worth, and usually, it can be veryfluctuating depending on the brand awareness, loyalty, love

2.6 IMC plan (past)

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The Vietnamese consumer has expressed a desire for better purchasingexperiences, even prioritizing this need above their desire for steepdiscounts or promotions Also, Quality and Brand attributes areconsidered in their purchasing decisions (see Figure 3) This does notmean that Price considerations do not play a role, but that consumersare seeking the best value possible 3 a behavior that can perhaps bebest illustrated by the Vietnamese idiom Đắt xắt ra miếng (roughlytranslated as <to get one’s money’s worth=) (Deloitte SEA, 2021).

Purchase

1 Channel preference

In the pre-pandemic period, online & Digital channels have notyet completely taken off in Vietnam This is in contrast to otherchannels, such as In-Store Promotions, which are preferred overOnline & Digital channels because they enable the consumer tosee, touch, and feel a product before deciding to make thepurchase At the same time, these channels also offerprofessional sales staff, who can provide advice on the latesttechnology trends to suit the consumer’s needs, and in turnenhance the shopping experience and lead to higher salesconversion Furthermore, the in-store experience can help toaddress some of the concerns consumers may have aboutquality, and enable them to benefit from promotional discountsand loyalty programs (Deloitte SEA, 2020)

Convenience, product range, and delivery were factors cited byDeloitte’s survey respondents as the main drivers for onlineshopping For many consumers, online platforms enable them tomake purchases without the need to visit crowded stores, wait inlong queues, or travel to physical stores, while allowing them toeasily browse and compare options across multiple productranges (Deloitte SEA, 2020).

On the other hand, several risks, including trust, unclear returnpolicies, and lack of security continue to deter Deloitte's surveyrespondents from online shopping For instance, nearly 30% ofsurvey respondents expressed a low degree of trust in onlinemerchants To encourage greater e-commerce adoption, onlineretailers will need to consider how they can overcome some ofthese issues as the inability to physically examine a productremains a key barrier for the consumer (Deloitte SEA, 2020)

On the other hand, during 2020-2021, while there are no clearindications that the COVID-19 pandemic has resulted in a shift inpreferences from Traditional Trade to Modern Trade channels,there have been clearer signs of a shift from Traditional Trade toe-Commerce/Online channels in several specific productcategories (Deloitte SEA, 2021)

And as consumers spend a greater amount of time at home, theirdemand for connectivity has increased with new remoteworking and online entertainment consumption habits Thesepurchases are now predominantly made online, rather thanthrough the Traditional Trade channels that consumers used tofrequent to purchase top-up cards for their mobile services(Deloitte SEA, 2021)

Although e-Commerce/Online channels promise to offerconsumers greater convenience and more competitive prices,the lack of a comprehensive logistics ecosystem continues toremain an impediment in driving greater consumer uptake ofe-Commerce/Online channels Specifically, more than 40% of oursurvey respondents cited delivery-related factors as the mainreason for not making online purchases (see Figure 4) Consumercompanies are therefore confronted with the conundrum ofproviding delivery services that are not only quick but alsocheap 3 if not free (Deloitte SEA, 2021)

2 Ways to payment

While cash transactions remain the norm, Vietnam is embarking

on an ambitious plan towards becoming a cashless economy 3

and early adopters can already be identified amongst itsconsumers (Deloitte SEA, 2020).

On an aggregate level, however, the growth of digital payments

in Vietnam appears to be promising: in the first quarter of 2019,digital payment transactions grew by 68.8% and 13.4% in terms

of the number of transactions and value respectively, whencompared to the same period in 2018 (Deloitte SEA, 2020)

During the pandemic, amongst Deloitte’s survey respondents, theuptake of digital payment methods is currently about 70% Aswith the uptake of e-Commerce/Online channels, the uptake ofdigital payment is also closely correlated with monthlyhousehold income level (see Figure 5) (Deloitte SEA, 2021)

Post-purchase

While Television, and word-of-mouth recommendations from Relatives,

as well as Friends & Colleagues, remain important, other channels, such

as In-Store Promotions and Holiday Discounts also have significantroles to play in the purchasing decisions of our survey respondents (seeFigure 6) (Deloitte SEA, 2020), this also works on e-Commerce/Onlinestores to drive repeat purchases, about 9% of overall surveyrespondents have cited price discounts for return customers as drivingtheir decision for repeat purchase (see Figure 7) (Deloitte SEA, 2021).Moreover, loyalty programs remain a valuable way for companies toreinforce brand value, as well as retain customers, and push referralsand sales In addition, well-designed loyalty programs can help enhance

a company’s knowledge of its customer behaviors and preferences,which in turn inform targeted marketing activities to drive sales(Deloitte SEA, 2020)

However, price discounts are by no means the most important Rather,the survey results suggest that providing a high-quality, end-to-endcustomer journey could be more pivotal: overall, survey respondentscited satisfaction with their prior purchase (19%), convenience andspeed of delivery (17%), and a pleasant customer service experience(15%) as the main drivers for their decision to make a repeat purchase.Ideally, this experience should also be reinforced with a smoothtransaction process (15%), and a clear returns/refunds policy andprocess (11%) (Deloitte SEA, 2021)

In-depth interview

To measure FPT Shop and F.Studio’s brand love

As FPT Shop and F.Studio have been in business since 2012 and FPTShop is the second-best retailer in the mobile device market, theauthors believe that now is the appropriate time to increase brand love

To prove that statement, we polled 88 people through Google form toevaluate the popularity and royalty level of FPT Shop

Firstly, 48.9% of the 88 persons interviewed have purchased somethingfrom FPT Shop, 18.2% have never heard of the merchant, and only afew have heard of F.Studio, see figure 8 Moreover, there was noresponse to F.Studio's other question, hence, in this study, we only focus

on FPT Shop's brand love

After a few filter questions, we asked if they wanted to tell their friendsand relatives about FPT Shop to check the customers’ loyalty, and 76,3%

of the 59 people replied yes (figure 9) But when being asked whichretailers they would choose if they wanted to purchase an iPhone 13pro max, only 22.2% of 45 respondents said FPT Shop (figure 10) Inaddition, when asked how they would feel if they couldn't shop at FPTShop, over 76,47% answered they would feel normal (figure 11),implying that the brand isn't loved

In conclusion, after conducting this in-depth interview, the authorsdiscovered that a significant number of people are familiar with FPTShop, indicating that they are doing an excellent job of raising brandawareness However, in this digital world, where there are so manysubstitutes, businesses must battle even harder

Customer insight

The customer insight of FPT Shop can be summarized as follows, based

on customer behavior, in-depth interview, and author's perspective:

● Although the pandemic is gradually fading, the economy willrequire time to resilience As a result, demand for mobile devicesmay shrink in the coming year

● Customers used to be wary of transacting through onlinechannels, but thanks to the lockdown, digital adoption hasaccelerated Customers, including the Boomer Generation, nowspend a significant amount of time surfing and purchasing onthe internet So, FPT Shop should integrate online and offlinechannels to improve the consumer experience

● Although Vietnamese people use the terms "discounts" and

"coupons," they place a greater emphasis on the shopping

experience Some of the main elements that a store should have

to generate repeat purchases include exceptional customerservice, convenience, rapidity of delivery, high-quality products,

a quick transaction procedure, and a clear returns/refunds policyand process

● The in-depth interview with FPT reveals that they are fallingbehind by refusing to develop brand loyalty There is some clearevidence that shows consumers do not appear to have anemotional attachment to FPT Shop, thus they will not opt to shopthere if another merchant offers them a better deal or service As

a result, our campaign aims to boost FPT Shop's brand love andcustomer loyalty (like the iFan and SamFan)

Campaign

FPT Shop can do things like when a customer buys a phone or laptop,the buyer can donate 5% of the product price to the "For distant kids"fund with the help of FPT Shop When it reaches the goal of providingsmartphones and laptops to 1.5 million rural children and families withmultiple children, FPT Shop will hold an event titled "Handing outLove," in which it will visit each child's home and hand over the device.Key message

"For distant kids"