Management Information System Assignment Prudential E-Gift Shop Project.pdf

Cost-Plus Pricing Cost Oriented Pricing Markup Pricing Target Return Pricing Percevied Value Pricing Value Pricing Eg Oriented Pricing Going Rate Pricing Auct

NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL OF NATIONAL ECONOMICS

UNIVERSITY

MANAGEMENT INFORMATION SYSTEM ASSIGNMENT

PRUDENTIAL E-GIFT SHOP PROJECT

Instructor : Nguyen Tuan Minh Student : Nguyen Phuong Thao Student ID : 11184559

Class : EBBA 10.2

Table of contents

XE i9)>—¡- s0 )(0o::faaađầadiiŸẢ Price settiQ DFOC©SS LH» nn nàn HT HT KH ky ProductiOn DFOC©SS LH n HT HT HT TK KT kh nhà Order fulfillment process and turnaround time Delivery cost structure and tỉme nh HT hy GIft return/ refund DFOC©SS LH nh Hs nh nnn nh nh ky Complaint handling DFOC€SS HT HH Hs HH hen hy Quality control process

1 Suggested products

Product lists that are suitable for insurance industry and Prudential's

target customers:

* Helmet

* Raincoat

* Umbrella

« Clock

* Calendar

e Clothes

* Cap

se Towel

* Bag

* Backpack

* Cup

e Tea set

se U-shaped neck support pillow

Prudential’s logo should be printed directly on the gifts in order to promote brand image Moreover, the company can offer more choices to customer by extending product The company can sell several versions of the same product, perhaps by adding additional features or by offering the product in different colors For example, calendar can be offered in wall calendar and desk calendar Based on Prudential’s customer segmentation and other features, products are divided into below groups:

Clothes Accessories Gifts for women T-shirt Sun visor cap

Sport shirt Handbag Clothes Accessories

Backpack Gifts for men Polo shirt Travel bag

Sport shirt Camera bag

Gifts for journeys in

your life

Helmet Raincoat Umbrella U-shaped neck support pillow

Gifts for your house

Wall calendar Wall clock

Vase

Tea set Towel

Gifts for your office Notebook

Pen Cup Desk calendar Average thermostats

Besides tangible products, Prudential can cooperate with popular clothing brands, restaurants and cafeterias to offer promotions by issuing e-vouchers These promotions are applied only for

Prudential’s agents, staffs and customers

2 Price setting process

Research and Development team is mainly responsible for price setting process They do many researches about pricing objective of the firm, market demand, production cost, competitors’ cost and prices to set the right price for the products

Step 1: Identify pricing objective of the firm

Company can choose one of five major pricing objectives to set the right price for the products:

¢ Survival e Maximum market

* Maximum current profit skimming

¢ Maximum Market share ° Product-quality

Leadership Step 2: Demand analysis

Demand analysis is an essential step to set price for products Estimating the demand helps in understanding the price sensitivity of the market and the demand curve Demand analyses also help the company

to arrive at the price ceiling

Step 3: Estimate production cost

Production cost include fixed cost and variable cost Company can estimate production cost by one of four common approaches:

« Account analysis « Scattergraph method

« High-low method « Regression analysis Cost estimation give the price floor To set proper prices the management should know how different production level affects the total costs

Step 4: Compare competitor’ cost and price

In this step, Research and Development team does some researches about the cost and price of the competitors, such as AIA, Manulife, Chubb

Life, Studying competitors’ price strategy is an important step to position the product better in terms of price

Step 5: Fix pricing method

Company can apply different pricing methods for their products based

on the type of product and industry

Cost-Plus Pricing

Cost Oriented

Pricing

Markup Pricing

Target Return Pricing

Percevied Value Pricing

Value Pricing

Eg Oriented

Pricing

Going Rate Pricing

Auction Type Pricing Differential Pricing

Step 6: Finalize the price

Based on researches, company set price for their products

3 Production process

Sales

Generate

order

Development

production schedule Production

requirement

materials

Handle

materials

Handle non-standard materials

4 Order fulfillment process and turnaround time

To minimize turnaround time, data about all steps in order fulfillment

process should be recorded on common platforms There are two highly

recommended platform: selling platform and shipping platform

Selling platform is the platform connecting company with customers All tasks of Sales team and Accounting team, such as generating order,

submitting order, checking credit, generating invoice, are performed on

selling platform Selling platform help automate information transmission

process among teams so these steps just take few seconds to one minute Shipping platform is the platform connecting Logistics team with other

teams in the company All data about inventory, shipping process is

recorded on shipping platform This data is also shared to selling platform

so customer can check order status easily

Because all data about inventory is recorded on shipping platform, checking inventory takes few seconds to one minute If the goods are in stock, information about order will be sent to shippers to prepare and delivery goods as soon as possible If the goods are out of stock,

Manufacturing and Production team will receive information about order immediately to produce Production process may take from 1 day to 1 week depending on products After production process, goods are stocked

in warehouse to wait for shipping from 1 to 2 days

In shipping step, goods are deliveried to customers It takes

approximately from 6 hours to 1 week (depending on types of delivery and position chosen by customers before) to delivery goods to customers

In case of unsuccessful shipment (customers do not receive orders), orders will be turned back to company They have responsibility to check order information to customers and deliver again In this case, the time can increase more one day than before The order fulfillment process ends when orders are sent to customers’ hand

Generate

Reject order

Generate invoice

A

No

nventory

A

Manufacturing

Production Vv

goods

5 Delivery cost structure and time

10 Middle

27 North provinces and 22 provinces South

Ha Noi

provinces Standard | Express | Standard | Express delivery delivery delivery delivery

22.000 30.000 33.000 32.000 35.000 Center VND VND VND VND VND

3kg 0,5 kg 0,5 kg 0,5 kg 0,5kg

ae 35.000 37.000 44.000 40.000 50.000

District VND VND VND VND VND

The next | 45500 +5.000 | +10.000 | +5.000 | +10.000

VND VND VND VND VND

0,5kg

Time 6 hours 3-4days | 24hours | 3-5 days | 48 hours

6 Gift return/ refund process

With more than 30% of all products purchased online being returned, returns are part of e-commerce Unlike the physical returns process, where the shopper returns to the store and initiates the return or exchange, shipping is central to the online returns process

In this process, shipping platform and selling platform are used by Logistics team They use selling platform to contact with customers A shipping platform can help automate the return/refund process given that it’s the system of record for their shipments and it integrates directly with their shipping carriers for return-label generation

* Return and refund policy

« Customers can return any item purchased on Prudential’s Web within 30 days of the delivery date

* The customers need to make sure the merchandise returned is in its original condition, tags and packaging included, otherwise suppliers will be unable to accept return and issue a refund

¢ Due to merchandising restrictions, all returns must be shipped from the same country they were purchased from

« The time needed to process refund may vary based on the payment method used They can choose one of the following methods:

o Credit Card: Bank will reimburse customer within 7

business days of the Return Acceptance Confirmation email

The time it takes to restore the credit back to their account depends on the Credit Card Issuer

PayPal (available only for customers from South Korea, Hong Kong, Australia and Singapore): Clients will see the refund in their PayPal account within 24 hours of the Return

Confirmation email

Gift return/refund process is demonstrated by below flowchart:

7 Customer Update order _ Send customer request from customer returns product status Issue refund notification -

a»

Update inventory

A

Send RMA and

return label to

customer

Generate RMA

and return label

ỶỲ

7 Complaint handling process

Customer Care team is directly responsible for handling complaint Step 1: Receive customer complaint

Customer complaints may be received in various ways, such as by email, hotline, social medias, online complaint form, letter or in person Step 2: Record customer complaint

In this step, Customer Care team record customer complaint on

customer relationship management software (CRM software) Besides,

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Customer Care team have to ask for the complainant's contact details and information such as any additional support required The information about the complaint is also gathered, such as the issues raised, the outcome the complainant is seeking, and other relevant information All related information is recorded on CRM software

Step 3: Acknowledge customer complaint

Customer Care team prepare a contact point for the complainant, timeframe in which action will be taken, and the likely next steps

Moreover, agencies should consider the most appropriate medium (whether by hotline or email) for acknowledging the complaint

Step 4: Assess the complaint

When assess the complaint, Customer Care team have to consider the following factors:

* are the issues raised within your control?

e if more than one issue is raised, consider whether these will need to

be separately addressed

s the seriousness of the complaint and whether it should be resolved urgently or not

¢ whether the complaint involves a person's health and safety or not

« how is the complainant being affected by the issues raised?

* are there are any risks involved if resolution is delayed?

¢ do other organisations need to be involved?

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Case1: Complaint does not warrant an investigation

Customer Care team inform the complainant about the investigation and advise them of the outcome They also have to give reasons for the decision, remedies available, and options for review Then, Customer Care team close the complaint and keep comprehensive records about how the complaint was managed, the outcome, any recommendations, and any outstanding actions that need to be followed up

Case 2: Complaint warrants an investigation

Company move to the next step, which is investigation

Step 5: Investigate the complaint

To conduct an effective investigation, the company should follow the below steps:

* select the appropriate investigative approach by looking at any statutory requirements, the nature of the issue, and the likely outcome of the investigation

* develop an investigation plan

* ensure proper powers and authority

* obtain evidence

* report the findings

Step 6: Provide an update to the complainant

The complainant wants to Know what is happening, when they can expect to hear from the company next and who to contact if they want to

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provide further information Therefore, Prudential should implement complaint tracking feature on website or application Moreover, Customer Care team can send email directly to provide an update to the

complainant

Step 7: Provide the final outcome and options for redress

Customer Care team inform the complainant about the investigation and advise them of the outcome They also have to give reasons for the decision, remedies available, and options for review Then, Customer Care team can provide available options for redress, if possible

Step 8: Close the complaint

Customer Care team close the complaint and keep comprehensive records about how the complaint was managed, the outcome, any recommendations, and any outstanding actions that need to be followed

up It is also a good idea to make a record of any systemic issues

identified

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Provide an outcome

Provide an update to the complaint

ĐH TA Flo he oman

* Responsibility of Prudential

* PRUVIP + members are given priority when presented at the counter at the Customer Service Center It saves approximately

30 percent time for handling complaints

« Prudential is not a provider of products or services used as a reward for the Program

* Prudential will only deal with complaints regarding the promotion within 60 days of the end of the program

* Prudential does not have responsibility to solve inquiries or complaints which relate to the quality of E-gift and these services

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* Responsibility of the vendors

After collecting the prize, the customer will directly contact the supplier of the product or service with any questions or

complaints related to the quality of the product or service The vendor has responsibility to solve inquiries or complaints which relate to the quality of E-gift and these services

The vendor has to guarantee that these client’s complaints are handled on time according to the contract

8 Quality control process

Quality control is a process intended to ensure that product quality or performed service adheres to a defined set of criteria or meets the requirements of the client Through the quality control process, the product quality will be maintained, and the manufacturing defects will be examined and refined The quality control process is divided into three separate processes, which are IQC (incoming quality control), IPQC (in- process quality control) and OQC (outgoing quality control)

8.1 IQC - Incoming Quality Control

Specific tasks of IQC include:

Perform approved vendor list check

Evaluate supplier quality records

Perform sampling and inspection of incoming materials

Monitor Quality Control of inspected properties and alert

engineering staff of deviations

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