group assignment marketing principles mkt101 fpt digital retail joint stock company fpt retail

Executive summary - FPT Digital Retail Joint Stock Company FPT Retail was established in 2012 in Vietnam, is a member of FPT Group, owns 3 retail chains: FPT Shop, F.Studio By FPT and Lo

Group Assignment Marketing Principles - MKT101

Group 2

Members of group: Nguyễn Thị Thanh Thảo

Đỗ Thị Thanh Hoa Hoàng Phương Anh Nguyễn Phương Dung

Vũ Thị Phương Thảo Class: MKT1602

Semester: Spring 2021

Lecturer: Đoàn Thị Thanh Hương Submission

Tables of content

I Introduction

1 Executive summary

2 Company description, misson, focus, structure

II Situation analysis

1 Company SWOT analysis

2 Product/service SWOT analysis

3 Competitive analysis

4 Customer analysis

III Marketing analysis

1 Market & target customer

2 Differential/competitive advantage

3 Marketing objectives

4 Overall marketing strategy (the sales plan)

5 Product & strategy & description

6 Pricing strategy

7 Promotion strategy

8 Place/distribution strategy

IV Recommendation

I Introduction

1 Executive summary

- FPT Digital Retail Joint Stock Company (FPT Retail) was established in 2012

in Vietnam, is a member of FPT Group, owns 3 retail chains: FPT Shop, F.Studio By FPT and Long Chau pharmacy system

- FPT Shop retail system: is a retail chain of digital mobile products including mobile phones, tablets, laptops, accessories and technology services FPT Shop is the first retail system In Vietnam, ISO 9001: 2000 certified in quality management according to international standards Currently, FPT Shop is the second largest retail chain in the technology retail market

- F.Studio By FPT system: is an officially authorized Apple store chain in Vietnam at the highest level, specializing in selling genuine Apple products FPT Retail is the first company to have a retail chain with the standard Apple store model, including: AAR (Apple Authorized Reseller) and iCorner, providing customers with a great space to experience unique technology products sophisticated and sophisticated Apple sales service and quality of customer care for the highest quality and friendliness

- Long Chau pharmacy system: is a chain of pharmacies that specializes in trading in genuine pharmaceuticals, medical devices and functional foods under FPT Retail System With the advantage of competitive price, standard product quality and a team of highly qualified, well-trained pharmacists, Long Chau pharmacy is a reputable and reliable address for your health customer for customers' health

- In the context of the mobile phone and laptop retail market approaching the saturation point, FPT Retail has chosen the pharmaceutical retail industry as the next card to maintain growth Therefore, in the third quarter of 2018, FPT Retail established a subsidiary, FPT Long Chau Pharmaceutical, with a charter capital of 100 billion VND, of which FPT Retail contributed 75% of the charter capital Long Chau pharmacy system is a chain of pharmacies specializing in trading pharmaceuticals, medical equipment, genuine functional foods With the advantage of competitive prices, standard product quality and a team of

pharmacists have high professional qualifications, are well trained; Long Chau pharmacy is a reputable and reliable address for the health of customers By the end of 2019, Long Chau Pharmacy System has 70 stores Plan 2020 will open

150 more drugstores and expand coverage to other provinces and cities outside

Ho Chi Minh City

2 Company description, mission, focus, structure

2.1 Company description

- After 6 years of operation, with tireless efforts, FPT Retail has developed a nationwide chain of stores in 63 provinces, building trust among customers as the ranked retailer 1 in the laptop market share in Vietnam, ranked 2nd in the mobile phone market share and the leading genuine Apple retailer in Vietnam with a full range of store standards from the highest level of APR, in the top 4 For many years, with tireless efforts, loyal to the policy of "dedicated to customer service", FPT Retail is determined to operate and build a style of customer service products for all business segments whether new or old, taking it as the foundation for sustainable growth, perfecting the image of a close, friendly brand and aiming to serve customers is the top priority Always putting customers at the center of every thought and action, FPT Retail has built a team of employees with a professional, enthusiastic and dedicated working style to customers In addition, we have been and will continue to build the most modern online business center so that customers can find FPT Retail stores in the fastest and easiest way

- FPT Retail's serious investment and relentless efforts have been recognized by the community through the strong and steady increase in the number of customers visiting and shopping for many years After 8 years of operation, FPT Retail has built up the confidence of customers as a retailer:

- Ranked 1st in laptop market share in Vietnam (from 2015 to present)

- Ranked No 2 in mobile phone market share and is the leading genuine Apple retailer in Vietnam with a full range of store standards

- Honored as Vietnam Strong Brand for 6 consecutive years from 2013 to 2018 (Organized by Vietnam Economic Times)

- The most favorite retailer in 2016, Top 10 products - services Believe and Used

in 2 years 2018, 2019 voted by Vietnam Economic Times

- Top 10 consecutive reputable retailers for 3 years 2017, 2018, 2019

- Top 500 largest enterprises in Vietnam in 2018, 2019 Top 500 most profitable enterprises in 2019 surveyed by Vietnam Report Joint Stock Company (Vietnam Report) and Vietnamnet online newspaper

- As of July 2018, FPT Retail was ranked among the Top 5 retailers in Vietnam

- Top 500 retailers in Asia - Pacific (Retail Asia)

- In June 2019, FPT Retail was honored in the Top 50 most efficient companies

in Vietnam in 2019 announced by Investment Bridge Magazine Forbes Vietnam also honored FPT Retail in the Top 50 best listed companies in 2019

in August 2019 and Top 100 largest public companies in December 2019

2.2 Mission

- With the goal of expanding its store coverage nationwide, FPT Digital Retail Joint Stock Company aims to become the leading retail system of digital telecommunications products in Vietnam Along with its growing scale, FPT Shop will bring to all classes of customers positive shopping experiences through high quality genuine digital products, competitive prices and care services Friendly customer care service, guaranteed by the reputation of the business

2.3 Focus

● Quality: Always at the forefront in building prestige and responsibility to ensure product quality, FPT Retail gives customers absolute peace of mind when shopping for technology products

● Trust: The word "trust" is what FPT Retail always focuses on in branding

activities, is a solid foundation of trust for customers, a reliable partner with technology firms

● Friendly: The image of FPT Retail being friendly with customers and active in community activities is the long-term direction

● Care: With the goal of serving customers as the number one priority, FPT Retail is increasingly improving service quality, training staff to be

enthusiastic, honest, sincere, and satisfy any customer any goods to go shopping

II Situation analysis

1 Company SWOT analysis

- As a member of FPT Corporation, FPT Retail always receives timely and regular support from the Group, especially in the application of new technology in the transportation process

- Has strong financial potential, stable stocks, easy to raise capital

- Having an available customer base of other FPT products

- Have experience in market penetration for new products, can take advantage of the marketing support of existing electronic and telecommunications products

- Possessing a team of nearly 10 years of experience working with Apple, a team of experienced personnel in the industry has also supported the Company a lot in the context of short product life cycle and high competitiveness

1.2 Weaknesses

- It entered the market quite late

+ Another unit entered the ICT (Information & Communication Technologies) market

12 years ago, so they have time to build the system, and until the saturation of ICT quickly moves to another industry, resulting in growth head pillow

+ FRT (FPT Retail) is different, just entering the ICT market for 8 years, accelerating its growth, and completing the system right at the time of market saturation As a result, there was not enough time to develop a new segment, but only just to start investing

Participating in import and export activities should bear the risk of exchange rate differences (exchange rate difference loss was more than 402 billion VND in 2008)

1.3 Opportunities

- The support from the Vietnamese government in the fields of science and

technology, technology, intellectual development: low-interest loans, tax incentives, rental space

- The recent GDP growth shows that Vietnam's economy is gradually recovering, purchasing power is improving, increasing income, and consumer sentiment is improving

-> production and business activities in most fields will have positive changes

- Large capital resources, opportunities to expand cooperation with foreign countries.1.4 Threats

- The inflation rate of the Vietnamese economy is forecast to grow rapidly again For businesses operating in the FPT Retail industry, high inflation will affect the company's business through the increase in purchased goods prices and prices freight from the distribution center to the stores etc reduces consumer purchasing power

- In addition to competing with large enterprises such as Mobile World Investment Joint Stock Company (MWG), Nguyen Kim Trading Joint Stock Company, FPT Retail is also under pressure to compete with small private enterprises retail with the selling price of the product is usually cheaper than the products distributed by the Company

- In addition, the competition comes from online retail channels with the influx of foreign buyers such as Lazada, Shopee, Tiki, etc The appearance of these online sales channels requires retailers to strengthen their online sales channels to become more professional with better services to meet the needs of consumers

- The process of joining WTO in the coming time will open the door to foreign investors in the fields of distribution, training, and software

2 Product / Service SWOT analysis

2.1 Strengths:

- New products are updated regularly

- Price and discount rate FPT Retail is always stable and maintains the best level in the market compared to its competitors The company also supports flexible payment terms such as discount payment for immediate payment, 30-day delay payment, or even consignment of goods

- The company provides customers with the best pre-sales consulting services, sales, and warranty services in Vietnam

after-+ F.Friends: Special Financial Service Package for individual customers who are employees of FPT Retail affiliated businesses

About 30% of FPT Retail's revenue comes from products sponsored by consumer finance companies

F.Friend is a sponsorship program of FPT Retail for installment purchases with main employees of companies

FPT Retail will sign contracts with companies so that their employees can buy products directly by installments with a monthly salary, no prepayment, no interest Service development goals

In 2017, F.Friends service brought 10% of total revenue for FPT Retail

+ Subsidy Phones: This is a phone package service that comes with the carrier package, in order to bring a new form of buying a new phone to the Vietnamese market FPT Retail cooperates with leading Vietnamese carriers to subsidize phone prices from 800,000 VND to 8 million VND / product, in order to help customers easily own smartphones at attractive prices In addition, customers also enjoy special preferences for network services such as listening, calling, and large data capacity to optimize customer communication needs

- FPT Shop is the first retail system in Vietnam to be granted ISO 9001: 2000 certification (an international standard is built to help organizations of all types and sizes in building and applying use and operate valid quality management systems) quality management according to international standards The FPT Shop chain stores a wide range of products from different brands such as Samsung, Oppo, Sony, Nokia, Dell, HP, Lenovo, etc

- FPT Retail is the first company to have an officially authorized Apple retail chain (F.Studio) in Vietnam, specializing in selling genuine Apple products such as iPhone, Ipad tablet, Macbook, Apple Watch

-> Providing customers with great space to experience unique and sophisticated Apple technology products, preferential sales service, and the most friendly and premium quality of customer care

- Products are diversified apart from main products such as phones, laptops, the shop also sells accessories such as phone cases, headsets, computer mice but not diversified brands (cases back, earphones are only sold by some brands such as Samsung, iPhone, ) or limited designs make buyers have little choic e

2.3 Opportunities

- Since entering the market late, FPT Retail does not take time to advertise products because it has already been introduced to consumers by the retail companies So FPT Retail just needs to focus on advertising the product's features

Most Vietnamese consumers prefer Apple-branded products such as iPhone mobile phones, iPads, and Macbook computers This is seen as an opportunity for the company to develop this segment Because FRT is a chain base that specializes in selling Apple products in Vietnam, it will meet the consumption and procurement needs of genuine products with the highest quality services according to global Apple standards

With outstanding features and affordable prices, smartphone products are gradually developing, affirming their dominant position in the market, with a market share of more than 84% of the total number of consumer phones

consumption in Vietnam in 2017 (according to Nielsen Vietnam)

-> promote large retail chains to quickly increase their accessibility to consumers 2.4 Threats

- When technology is developing rapidly, mobile phone / personal computer products with new features and continuously improved models are born to meet consumer demand

use by customers changing day by day Therefore, the product life cycle is often quite short, which makes the retail company more exposed to risks when old products cannot be sold and it costs more to continuously buy back products new technology

- Products in stock of enterprises in the retail industry will increase interest expenses, causing retail businesses to reduce prices to handle inventory, affecting results

3 Competitive Analysis

In the eyes of customers, The Gioi Di Dong (MWG) and FPT Retail are the two largest retailers in Vietnam Therefore, it is easy to know that FPT Retail's direct competitor is Mobile World Investment Joint Stock Company

* Some information about thegioididong company:

- Business products: Phones, laptops, tablets, cameras, music players, digital accessories, watches

- Products and services:

+ Free consulting service for customers

+ Flexible cash payment service when receiving goods, bank transfer, or swipe card with POS machine at home

+ Distribution, installation, and repair service

- Sales channels: Web sites of the company, TVC, E-commerce floors, Facebook Ads,

- Customer segment:

+ Customers from 15 to 22 years old are students from middle school, high school, and students, the need to exchange mobile phones, accessories, and digital equipment are very high

+ For customers aged over 22 to 35 years old, these are working customers with income sources, so spending on digital devices and mobile phones tends to be very high affordability