A study on factors affecting customer’s loyalty in phu thanh investment joint stock company = nghiên cứu các nhân tố Ảnh hưởng Đến lòng trung thành của khách hàng tại công ty cổ phần Đầu tư phú thành

A study on factors affecting customer’s loyalty in Phu Thanh investment joint stock company = Nghiên cứu các nhân tố ảnh hưởng đến lòng trung thành của khách hàng tại Công ty cổ phần đầu tư Phú Thành

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THỊ PHÚC

A STUDY ON FACTORS AFFECTING THE CUSTOMER

LOYALTY IN PHU THANH INVESTMENT JOINT STOCK

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Người hướng dẫn khoa học: PGS.TS Hoàng Đình Phi

HÀ NỘI – 2023

DECLARATION

The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published

in other’s research and article

The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration

ACKNOWLEDGEMENT

To complete this research, I would like to express my endless gratitude to the scientists inside and outside the school and my family and friends First of all, I would like to sincerely thank Assoc Prof Dr Hoang Dinh Phi, enthusiastically advised me on the selection of topics, models, and other problems encountered by the author

I sincerely thank my family for helping me, facilitating me to go to school, and encouraging me in the process of writing my thesis Thanks to my family’s support, I continued steadily in the process of studying, coming through pregnancy and going to this stage

I sincerely thank the teachers at Hanoi School of Business & Management for allowing me to access new knowledge and learning methods by the school's requirements

Sincerely thank my colleagues for helping me in the process of both studying and working and solving related tasks together

TABLES OF CONTENTS

LIST OF TABLES i

LIST OF FIGURE ii

INTRODUCTION 1

1 Rationale 1

2 Literature review 2

2.1 The novel theory on customer’s loyalty 2

2.2 Empirical studies on customer’s loyalty 5

3 Research objective 7

4 Research subject and research scope 8

5 Research methodology 8

5.1 Theoretical research method 8

5.2 Data sources 8

5.3 Data collection methods 9

5.4 Data processing methods 11

6 Thesis structure 13

CHAPTER 1: THEORETICAL FRAMEWORK OF CUSTOMER’S LOYATY 14

1.1 Overview of customer’s loyalty 14

1.1.1 The concept of customer’s loyalty 14

1.1.2 Benefits of customer’s loyalty 16

1.2 Factors influencing customer’s loyalty 18

1.2.1 Product 19

1.2.2 Staff 20

1.2.3 Outlet imagine 21

1.2.4 After-sales service (including handling complaints after purchase) 22

1.3 Experience of some companies and implications for Phu Thanh Investment Joint Stock Company 23

1.3.1 Experience of some companies 23

1.3.2 Implications for Phu Thanh Investment Joint Stock Company 25

CHAPTER 2: THE CONTEXT STATUS OF CUSTOMERS’ LOYALTY AT PHU

THANH INVESTMENT JOINT STOCK COMPANY 26

2.1 Overview about Phu Thanh Investment Joint Stock Company 26

2.1.1 History and development of Phu Thanh Investment Joint Stock Company 26

2.1.2 The main performance of the company 31

2.2 Customers loyalty at Phu Thanh Investment Joint Stock Company 34

2.2.1 Overview of the company's customer base 34

2.2.2 General evaluation of customer’s loyalty at Phu Thanh Investment Joint Stock Company 35

2.3 Factors affecting the custormerss loyalty In Phu Thanh Investment Joint Stock Company 42

2.3.1 Analyze the reliability of the scale 42

2.3.2 Exploratory factor analysis and research model adjustment 44

2.3.3 Linear regression analysis and hypothesis testing 47

CHAPTER 3 SOLUTIONS FOR DEVELOPING CUSTOMERS’ LOYALTY AT PHU THANH INVESTMENT JOINT STOCK COMPANY 51

3.1 Development orientation and requirements for increasing customer’s loyalty at Phu Thanh Investment Joint Stock Company 51

3.1.1 Development orientation of Phu Thanh Investment Joint Stock Company 51

3.1.2 Requirements for increasing customer’s loyalty at Phu Thanh Investment Joint Stock Company 52

3.2 Solutions for developing customers’ loyalty at Phu Thanh Investment Joint Stock Company 53

3.2.1 Appreciate after-sales support services 53

3.2.2 Diversify products to create more choices for customers 56

3.2.3 Change company and outlets image 58

3.2.4 Improve the image of outlet staff 61

CONCLUSION, LIMITATION, AND IMPLICATION 65

1 Conclusions 65

2 Limitations 65

3 Implications 66

REFERENCES 67

APPENDIX 1

Appendix 1: In-depth interview guidelines 1

Appendix 2 Results of in-depth interview 5

Appendix 3 Questionnaire 15

Appendix 4 Survey results 19

Appendix 5: Cronbach’s Alpha 20

LIST OF TABLES

Table 2.1: Asset structure of the Company 31

Table 2.2: Capital structure of the Company 32

Table 2.3: Annual report of the company 33

Table 2.4 Total customers of the company 34

Table 2.5: Average score of 4 aspects of analysis 35

Table 2.6: Customers' expectations about products of the company 36

Table 2.7: Customer’s loyalty to products 37

Table 2.8: Customers' expectations about the company's staff 38

Table 2.9: Customer’s loyalty in terms of the company's staff 39

Table 2.10: Expectations about the company's image aspect 39

Table 2.11 Customer’s loyalty in terms of company image 40

Table 2.12 Customer expectations about after-sales support service 41

Table 2.13 Customer’s loyalty about after-sales support service 41

Table 2.14: Calculation results of correlation 43

Table 2.15: KMO & Bartlett’s Test result (for independence variables) 44

Table 2.16: Summary of regression results of Enter/Remove 47

LIST OF FIGURE

Figure 1 SERVQUAL model – proposed by Parasuraman et al (1988) 5 Figure 2.1: Structure of the Company 28

INTRODUCTION

1 Rationale

Theoretically, customer’s loyalty results from an accumulation of positive experiences combined with the quality a business provides to their customers In the context of deepening integration and strong development today, the race for market share, especially to attract loyal customers, is getting more and more exciting

Survey results of Ernst & Young (2021), with more than 32,000 retail customers

in the Asia Pacific region, show that Vietnamese customers have the highest rate of changing service providers (re-cited by Tran, Nguyen, and Tran (2020)) However, the loyalty of Vietnamese people is at the lowest level - demonstrating the willingness to change suppliers of goods or services For example, in Australia or Japan, this rate is only 10-20%; in other countries in Southeast Asia, about 50%, 65%-77% of Vietnamese customers are willing to switch to other businesses that are providing similar products

“In the position of customers, they expect the company to provide more than the usual demand As a result, many companies focus on acquiring new customers to increase their revenue, but the reality is that the most predictable source of revenue comes from existing customers A study shows that 20% of a company's existing customers can generate 80% of the profits (Cuong, 2020) Therefore, the key to any business growth is not on attracting new customers, but more importantly, building revenue with existing customers.”

To achieve business performance as expected, the company must have customer’s loyalty resulting from a long-term relationship-building process The cost

of maintaining old customers is only 1/ 5 or 1/7 compared to finding new ones With increasingly harsh business conditions, the cost of finding new customers becomes more expensive, so maintaining loyalty becomes one of the necessary conditions if the company wants to grow in the future

“Phu Thanh Investment Joint Stock Company was established in 2008 with the main field of activity being the distribution, purchase and sale of confectionery beverages of all kinds Starting from 2015, as Vietnam's economy warms up, the needs

of the company's customers also gradually changed: customers switched from traditional confectionery products to high-end confectionery products, also used goods related to foreign goods (such as foreign wine) The company has strongly developed the market in Hanoi and neighbouring provinces and expanded to the central and southern regions.”

Although it has met the needs of customers for products and services; but, at present, competition in the field of supplying cake (or confectionery), beverages and luxury consumer goods (such as foreign alcohol) is increasing This is reflected in the survey report of small and medium-sized enterprises of the General Statistics Office Every year, enterprises in the same field as Phu Thanh Investment Joint Stock Company increase by 5% on average and try to attract new customers and meet the needs of existing customers Phu Thanh’s performance was also strongly affected by the Covid-19 epidemic: customers' incomes decreased, the cash flow of partners was delayed, unable to import goods from other countries Therefore, ensuring customer’s loyalty plays an essential role in the operation strategy to ensure stable operation in times of crisis and to compete with other competitors in the market.”

Therefore, the topic: "A study on factors affecting the customer’s loyalty In Phu

Thanh Investment Joint Stock Company" was selected for research

2 Literature review

2.1 The novel theory on customer’s loyalty

The novel theory of customer’s loyalty is best known in the research of Parasuraman, Zeithaml, and Berry (1988) However, the issue of loyalty is divided into two distinct schools: the North American and the Scandinavian Each school has different ideas for assessing customer’s loyalty, specifically as follows:

Firstly, the Scandinavian

This school was developed by Grönroos (1984), this school was developed by (Chase, 2010; Glynn & Lehtinen, 1995; Gronroos, 1990; Grönroos, 2017) The Scandinavian school principle has always been that the customer is the focus, so it is necessary to study customer’s loyalty Only when customers are satisfied will they be loyal, thereby saving businesses the cost of finding new customers

The school's principal says it should focus on customers because providing goods and services without them is impossible Moreover, customers are satisfied, and they will be loyal, helping businesses save money on finding new ones

One of the significant contributions of this school is the definition of loyalty Repeat purchases or referrals demonstrate loyalty and satisfaction about products and services (Glynn & Lehtinen, 1995) Satisfaction is determined by the gap between consumers' perceptions and their expectations This branch of research focuses on assessing the factors affecting customers' loyalty, including the external and the internal factors

For the external factors, such as the service environment, the influence of the surrounding people can affect consumers' wants (or needs), thereby affecting their satisfaction and loyalty Therefore, this research branch is very suitable for the hopitality, because only this industry is interested in context issues (Baskerville & Wood-Harper, 1996; Gummesson, 1995)

For the internal factors, this school focuses on relationship management issues with customers, in which price and image of the business are concentrated Gronroos (1990) argues that the price of a product or service has the greatest impact on customer’s loyalty and satisfaction He found that, in the previous period (about 1985-1989), the service that customers received was scarce, pushing up prices rapidly, so customers feel less satisfied and have more options (to choose another) In addition, service consumption also makes customers feel appreciated, so the organisation's image is more noticeable Thus, this branch of research raises two issues: how the service delivery process is organized (provisioning before and after the service is performed), and the business employee's image positively impacts customer’s loyalty (Chase, 2010) In other studies, Grönroos (2017) focuses especially on the image of the organization, because the effects (both positive and negative) of social networks can be an urgent problem to solve

Thus, this research branch's success has been defined as customer’s loyalty associated with customer satisfaction and influencing factors The opposite side of this school is: price can affect customers, but with high-class services, customers do not

care about one (Zeithaml, Berry, & Parasuraman, 1996); or some fields (or industries) that do not use a lot of externalities (e.g., common consumer goods), the external factors have no impact (or insignificant) on customers as mentioned later by other researchers However, the results of this branch of research cannot be denied, as they have indirectly contributed to the formation of modern marketing For example, some later authors such as Kotler (2003) or Keller and Brexendorf (2019) have developed an organization's brand image, pricing policy, and product policy to create a marketing mix in different fields

Secondary, the North American

This is the most studied school, emerged by models such as the SERVQUAL model (Parasuraman et al., 1988), SERVPERF (Cronin Jr & Taylor, 1992) and a lot of other models developed later (Lewis & Mitchell, 1990; Zeithaml et al., 1996) The main content of these studies is that in addition to being customer-centric, measuring customer satisfaction and loyalty by the gap between expectations and the actual value perceived by consumers This school focuses directly on the issue: what problems the business has done for customers The impact factors has included: tangibles, reliability, responsiveness, assurance, and empathy Thus, the tangible element is inherited by this branch of research from the Scandinavian, the rest is developed from other ideas

Zeithaml et al (1996) emphasise reliability and assurance in North American school These authors argue that ensuring services are delivered as required, and medically safe for customers should be noted when businesses pursue profit goals

In addition, the SERVQUAL model also suggests that with customer-centric issues, service providers must also care about how customers feel (in this model, the factor is empathy) Not all the services offered can be accepted by customers, and there are also questions about what businesses can meet, and how to listen Empathy is also reflected in listening to customers' opinions, fixing problems raised instead of just focusing on selling the company's products or services The empathy is quite close to the Scandinavian after-sales services (Yol, Serenko, & Turel, 2006) After using the service, there is bound to be a breakdown or the customer may want to buy it again

Therefore, empathy is also reflected in the user manual, warranty or sale price reduction if the customer introduces a new person or buys the product next time

Figure 1 SERVQUAL model – proposed by Parasuraman et al (1988)

Source: Parasuraman et al (1988)

Of the two schools, the North American school is the most studied and the most widely applied Because this school focuses on the internal environment, with little mention of the external contexts, so it is possible to provide higher levels of accuracy

in finding the factors affecting customer satisfaction., thereby explaining why they are loyal to the products Empirical studies also often apply this research to assess a business's customer’s loyalty

2.2 Empirical studies on customer’s loyalty

Research on customer’s loyalty with some products and services in Vietnam, including:

Tran, Nguyen, and Tran (2020) assess customers' loyalty to the hotel service group The authors analyse the business's image to see the difference between domestic and international customer groups With 618 observations obtained in

Customer satisfaction

Vietnam, the authors used SEM linear structural model to evaluate The results show that the business's image is essential for choosing a hotel and re-introducing it next time Thus, in this study, the authors focused on the Scandinavian school However, for some other services, such as movie services, Cuong (2020) has combined both Scandinavian and North American schools with seeing that in addition to images, prices and commitments are also factors affecting customer’s loyalty

In the retail services - like the case that the thesis pursues - some studies can be mentioned such as:

Gomez, McLaughlin, and Wittink (2004) used the SERVQUAL model to assess customer’s loyalty in the retail sector, thereby further providing policy implications on how loyalty affects enterprise profits The results show that customers are often satisfied with price, empathy, promotion commitments from the beginning, and ultimately convenience This is one of the examples of extending the combination of the North American school's SERVQUAL model with the Scandinavian model - which has the idea of focusing on the price of goods Similarity result is the study of Burns and Neisner (2006) They assessed the level of loyalty with the feelings about the goods and services that they were provided The results show that customers will

be more loyal if businesses care about their feelings (through) empathy, commitment and responsiveness Thus, in this study, only SERVQUAL model is used to assess customer satisfaction and loyalty, without mentioning Scandinavian factors

In the studies the author found in the past 5 years, the most are studies on customer’s loyalty to banking services, and almost all use the SERVQUAL model to evaluate Because the scope of these studies (banking services) is very different from the services provided by Phu Thanh Investment Joint Stock Company (consumer goods - including affordable to luxury goods) The author did not research these works Biscaia, Rosa, Moura, and Sarrico (2017) used a European satisfaction model

to assess customer’s loyalty to non-traditional retail services (deliverable online) of customers (in the European region) The results show that these customers are more satisfied with consumer-friendly websites (part of a business image or tangible element) Another idea that is also raised is that customers are still very interested in

commitments and serviceability, whether the goods are delivered in a traditional or modern way Vakulenko, Shams, Hellström, and Hjort (2019) also produce similar results in a new context: using online services more than offline services They also used a combination of the SERVQUAL model with the price factor in the North American school

Other studies, such as Ying, Sindakis, Aggarwal, Chen, and Su (2021) have focused on traditional channels, which refer to meeting the increasing demands of customers for luxury goods The research results show that, although the price also has

an impact, but not much on customer’s loyalty, the attention of the business to new customers increases loyalty Marín-García, Gil-Saura, and Ruiz-Molina (2022) study differences between men and women in terms of satisfaction The results show that women pay more attention to corporate image issues, empathy, and price, while men prefer responsiveness and security As such, these studies have focused heavily on the problem of using the SERVQUAL model, but with additional pricing issues or may point to the Scandinavian school with after-sales problems or corporate image issues Beside, some other studies focus on customer’s loyalty in the area of buying and selling high-quality imitation products or making random and repeat purchases However, to the extent of the author's knowledge, there has been no research related to the confectionery and alcohol sectors (including popular and luxury goods) Therefore,

the topic "A study on factors affecting the customer’s loyalty In Phu Thanh

Investment Joint Stock Company" does not coincide with any previous studies that

the author knows

3 Research objective

General objective: Evaluate which factors affect customer’s loyalty at Phu Thanh

Investment Joint Stock Company

From the model results (run by SPSS22 and AMOS 20), the thesis makes policy implications to reinforce customer’s loyalty with Phu Thanh Investment Joint Stock Company

4 Research subject and research scope

Research subject: customer’s loyalty at company/enterprise

Research scope

Focus on researching individual customers who have been buying goods and services of Phu Thanh Investment Joint Stock Company The author conducts direct interviews with buyers

Research period: from August 2021 to March 2022

5 Research methodology

5.1 Theoretical research method

By searching methods (through books, textbooks, the internet with the support

of instructors), read, researching and analyze by actual conditions, and synthesising theoretical consultation documents from the supervisor to choose the basic theory applied to research this thesis The thesis will use the theoretical basis of customer’s loyalty:

- The concept and importance of customer’s loyalty

- Research models of customer’s loyalty at retail outlets or retail companies

5.2 Data sources

The thesis uses both secondary data source and primary data source

Secondary data sources: The thesis uses data sources collected from internal

information documents: Management regulations, financial reports, accounting, statistics, market reports, analysis reports of business operations of the sales department, the financial accounting department; technical articles, consumer magazines, magazines about small and medium enterprises Secondary data sources are collected to evaluate the current business situation of Phu Thanh Investment Joint Stock Company At the same time, the secondary data helps analyze the main factors that influence customer’s loyalty

Primary data source: Through in-depth interviews, the investigation of

customers who buy goods from the outlet (through questionnaires) of 180 customers

Research results obtained after conducting customer survey interviews are the main information bases for the author to make recommendations to improve customer’s loyalty at the retail outlets of Phu Thanh Investment Joint Stock Company Thus, the

findings, conclusions and proposals are made to meet the needs of satisfied customers

5.3 Data collection methods

The author uses qualitative and quantitative methods to research the topic to collect primary data

5.3.1 Qualitative method

Through interviews, the author captures customers' wishes, expectations, and loyalty when buying at the outlets of Phu Thanh Investment Joint Stock Company After that, the author also grasped the missing and weaker problems of the outlets of Phu Thanh Investment Joint Stock Company compared to other businesses in the area, leading to the shift of customers to buying products at outlets outside the system of Phu Thanh Investment Joint Stock Company At the same time, through the interview results, the author can supplement or adjust the questionnaire of the survey questionnaire for quantitative research Interviews were fully recorded Time for each interview is about 15 minutes to 30 minutes The list of customers participating in the interview is presented in the appendix

The results of in-depth interviews show that, for a confectionery, beverage, and alcohol business (including both affordable and high-end goods), the combined use of the SERVQUAL model of the North American and Scandinavian school is appropriate The interviews revealed the following problem:

- The interviewee (customer) is interested in the company's products because the product is the core issue consumers aim for Quality assurance products, and beautiful designs will increase consumer loyalty The company's goods ensure the quality of food hygiene and safety and have a sample stamp that does not cause reactions after use The company's products are diverse and can be purchased in large quantities Thus, compared with the SERVQUAL model, the product corresponds to responsiveness, reliability and assurance

- The interviewee is interested in whether the company pays attention to their needs Firstly, it is the attitude of the staff in the outlets Most customers who want to

shop come to the outlet to choose confectionery, beverages or alcohol, so the outlet's staff is the main communicator and responds to all customers' wishes throughout the sales process Therefore, outlet employees have a direct impact on customer’s loyalty Second, because products are related to food and gifts, beside the factors such as reliability, responsiveness and assurance, customers are more interested in after-sales services Customers think after-sales problems are reflected in the price they receive, for example, they will receive a discount on their next purchase or are interested in support when returning goods Third, compared with the SERVQUAL model and the Scandinavian school, empathy is reflected in the outlet staff, and after-sales services

- Customers also pay attention to the location of the outlet, the decoration in the outlet The outlet location can be close to the customers, and at the same time, the decoration in the outlet shows convenience and luxury Therefore, the physical manifestations of the outlet (in the SERVQUAL model) are also shown

Thus, the qualitative study results show that the SERVQUAL model of Parasuraman

et al (1988) meets the requirements set forth in customer’s loyalty assessment

5.3.2 Quatitative method

Through the questionnaire, the author surveys to assess the loyalty of customers

at Phu Thanh Investment Joint Stock Company According to Hair, Hult, Ringle, and Sarstedt (2016), only the number of people answering more than 5 times the number of items is enough to meet the requirement Thus, with the total items asked by the author

in the article is 15, so, the total number of observations is:

Some other studies such as Nguyễn Văn Thắng (2014) said that the number of observations over 100 can meet the set requirements With the company's total number of regular customers (buying more than 3 times a year) about 500 people, the author selects

180 people to ensure that the sample is larger than the minimum observed sample

Thus, the author uses the questionnaire to interview the customers A questionnaire is a popular tool for collecting information in surveys In the questionnaire, the author used both open-ended and closed-ended questions

Closed question is a type of question that includes answer options, and customers only need to choose one of the answers Loyalty is measured on a Likert scale from 1

to 5: 1 is very dissatisfied, 2 is dissatisfied, 3 is neutral/normal, 4 is satisfied, 5 is very satisfied At the same time, the author also learns more about customer expectations according to 5 levels that are: 1 is very unimportant, 2 is not important, 3 is not interested, 4 is important, 5 is very important The criteria for evaluation based on the aspects of the research model given by the author in accordance with the content of the topic include:

- Loyalty on the product

- Loyalty on outlet employees

- Loyalty on outlet image

- Loyalty on after-sales service, including about handling complaints

Open-ended questions: here customers can answer themselves according to their thoughts and evaluations with suggestions

After completing the preliminary questions, the author consulted experts and conducted direct test interviews (trial testing) with 10 customers to determine if the questions were easy to understand and if any adjustments were needed The author will send customers directly through the outlet staff of Phu Thanh Investment Joint Stock Company The questionnaire was sent to 180 people who are customers who buy goods at the outlets of Phu Thanh Investment Joint Stock Company The author sends all 180 questionnaires directly to customers who buy at the company's outlets (excluding customers who buy goods at the consignment outlet) The author received 180 answers, 11 votes were rejected due to completing 1 answer The total remaining votes

is 169, as handled in chapter 2

5.4 Data processing methods

Secondary data is processed by methods such as: classification, analysis, synthesis, chart diagram, comparison and evaluation

Primary data: The author synthesizes the data obtained from the interview, based

on which the author analyzes according to the topics designed in the interview guide Statistical analysis will be conducted for the data collected from the survey through questionnaires

Data analysis techniques

Reliability of the scale

To test the scale's reliability, the author calculated the Cronbach's Alpha coefficient and the overall variable correlation coefficient

Cronbach's Alpha coefficient: Many researchers agree that Cronbach's Alpha coefficient from 0.8 or more to close to 1, the scale is good, from 0.7 to nearly 0.8 is usable Some researchers suggest that Cronbach's Alpha of 0.6 or higher can be used

in cases where the concept under study is new or new to respondents in the research context (Hair et al., 2016) Therefore, the Cronbach's Alpha coefficient of 0.6 and above can be used for this study

Total variable correlation coefficient is a measure of the correlation of a variable with other variables in the same scale, so the higher this coefficient, the higher the correlation of this variable with other variables in the group According to, Nunnally (1994), the correlation coefficient of variables will have the following classification levels:

± 0.01 to ± 0.1: The correlation is too low, not significant

± 0.2 to ± 0.3: Low correlation

± 0.4 to ± 0.5: Mean correlation

± 0.6 to ± 0.7: High correlation

± 0.8 or more: Very high correlation

Variables with a total correlation coefficient of less than 0.3 are considered acceptable variables” and will be removed from the scale

“un-Exploratory Factor Analysis

Exploratory Factor Analysis (EFA) is a quantitative analysis method used to reduce a set of many interdependent measurable variables into a smaller set of variables (called factors) so that they are more significant but still contains most of the information content of the original set of variables (Hair et al 2009) Through EFA analysis, the author tests whether the number of factors (explanatory variables) and dependent variables included in the model are suitable or not and the relationship between them

The EFA analysis of the research concepts is considered to provide evidence of the discriminant and convergent validity of the scale The relevance of the internal

correlation of observed variables in the research concept is expressed by the KMO coefficient (Kaiser - Mever - Olkin) A significant KMO value (between 0.5 and 1) is a sufficient condition for factor analysis to be appropriate, and if this value is less than 0.5, factor analysis is likely to be inappropriate for the data

Measure the relevance of the sample and the significance level of the Bartletts Test of Sphericity in the exploratory analysis used to consider the appropriateness of factor analysis Extracting representative factors by observed variables is done with Varimax rotation and Principle components factor extraction method Components with an Eigenvalue greater than 1 and total variance extracted equal to or greater than 50% are considered as representative variables Factor loading coefficient represents single correlations between variables and factors equal to or greater than 0.5 are significant

From the results of exploratory factor analysis, the author will review the hypothetical research model, considering whether to adjust the model or not?

Linear regression analysis and hypothesis testing

Multiple linear regression is often used to test and explain causal theory (Hair et al., 2016) In addition to being a descriptive tool, multiple linear regression is used as a conclusion tool to test hypotheses and predict the values of the study population

Next, multivariable linear regression analysis using ordinary least squares (OLS) was also performed, in which the dependent variable is customer’s loyalty Again, independent variables are expected to affect customer’s loyalty (products, outlet staff, outlet image, and after-sales support services)

The method of selecting the Enter/Remove variable is carried out

CHAPTER 3: SOLUTIONS FOR DEVELOPING CUSTOMERS’ LOYALTY

AT PHU THANH INVESTMENT JOINT STOCK COMPANY

CHAPTER 1: THEORETICAL FRAMEWORK OF CUSTOMER’S LOYATY

1.1 Overview of customer’s loyalty

1.1.1 The concept of customer’s loyalty

Customer’s loyalty has been recognized as a valuable asset to competitive markets (Cook, 2010) Keller (1993), Keller and Brexendorf (2019), long-term customer retention in a competitive market requires suppliers that will go beyond basic satisfaction to create loyalty to protect and combat competitors' attacks

Tran et al (2020) argues that customer’s loyalty is the fact that customers continue to use the products and services of that business in the future, and use other services at the same time However, this author also argues that in some cases, loyalty behavior does not necessarily reflect loyalty, when other factors prevent customers from leaving the company Failure to calculate loyalty can lead to fake loyalty (Ying et al., 2021) Another way, customer’s loyalty is the tendency to favor a brand in the marketplace, whether other brands offer it or simply familiarity and comfort with that brand Customer’s loyalty encourages consumers to shop more consistently and positively perceive the shopping experience, helping attract consumers to familiar brands in a competitive environment

To conclusion, it can be understood that customer’s loyalty is the fact that customers will continue to use the products and services of the business; at the same

time have positive feedback to overcome limitations and will continue to recommend products and services of the business to others Loyalty includes both attitudes and behaviours Customers who behave loyal to a company show a more favorable attitude towards the company than competitors Therefore, to achieve true loyalty, companies should simultaneously focus on behavior and attitude of loyalty (Cook, 2010)

Behavioral loyalty is often expressed in a behavioral approach based on future repurchase behavior, the number and frequency of repurchases, and the change in brand per time (Bandyopadhyay and Martel (2007); Liang et al (2009)) The idea of behavioral loyalty is how customers will use goods and services in the future Unlike attitudinal loyalty, which focuses on past purchases, behavioral loyalty often gives an idea of how much a customer can use in the future

For enterprises, customer’s loyalty is both one of the top goals and an essential tool (Verhoef, Van Doorn, & Dorotic, 2007) When a nterprise is customer-centric and tries to create high customer’s loyalty, it encounters the obstacle that it is difficult to maximize customer’s loyalty (Jasek, Vrana, Sperkova, Smutny, & Kobulsky, 2018)

Increasing customer’s loyalty by reducing the price of products or increasing the service will reduce the profit of the business

Relationship between satisfaction and loyalty

Customer satisfaction leads to loyalty When customers are satisfied, it will lead

to loyal customers both in attitude and behaviour, because customers are familiar with the brand and the service ability of the enterprise At that time, customers will gradually become loyal to the brand and form a habit of buying goods associated with the enterprise

Another relationship of satisfaction and loyalty is that customers are satisfied with the products and services the enterprise provides; they will recommend the product to other people – usually relatives or colleagues This will affect the ability of potential customers to make new purchases – a manifestation of behavioral loyalty Finally, when customers feel satisfied, they will be willing to share their views

on how to service old items, service attitude of staff, location and how to provide customer service for the most convenience This is an expression of loyalty attitude The sharing of customers will help enterprise improve themselves

1.1.2 Benefits of customer’s loyalty

Loyalty is important for both customers and enterprisees This is a concept in both general retail marketing and customer research (Phạm Thị Huyền & Nguyễn Hoài Long, 2018) Customer’s loyalty in retail is associated with several important outcomes, including sales results, customer retention, and loyalty (Burns & Neisner, 2006; Cuong, 2020; Jahan, Ali, & Al Asheq, 2020) Therefore, retail enterprisees must know the factors that determine customer’s loyalty Customer’s loyalty is the key to the success of enterprises Customer’s loyalty is the degree of their satisfaction when purchasing and consuming a product Consumer loyalty depends on comparing consumption values - the benefits they receive when using products and services In other words, loyalty is tied to customer value – the difference between customers' total value and their total costs Moreover, consumer loyalty also depends on comparing their actual consumption value with the expected value If enterprises make consumers expect too much, but the reality is not so, they will be disappointed Thus, to assess

customer’s loyalty about a product, people compare the results obtained from the product with his or her expectations One of three loyalties can occur: the customer is not satisfied if the actual results are less than what they expected; Customers are satisfied if the results are commensurate with expectations and customers are very satisfied if the results are beyond expectations Customers' expectations are often formed from their previous buying experiences, the opinions of friends and colleagues, and the information and promises of sellers and competitors

Otherwise, loyalty has some other effects on businesses as follows:

Loyal customers help reduce costs for enterprises

Vakulenko et al (2019) showed that the cost to maintain and take care of an old customer is only 1/5 to 1/10 of the cost of acquiring a new customer To find and acquire new customers, enterprises need to advertise, encourage potential customers with discounts, and promotions, give gifts, introduce different products and convince new customers about corporate brand value It is generally quite an expensive process for an enterprise before this new customer can generate revenue

By building customer’s loyalty and strengthening your brand, loyal customers can have a powerful influence on your prospects for growing your business and encouraging more people to try out their product or service Thus, increasing the pool of loyal customers leads to a significant reduction in the cost of acquiring new customers

Loyal customers help increase business revenue

According to research by Marín-García et al (2022), 20% of an enterprise's existing customers can generate 80% of its profits Therefore, the key for any enterprise to grow is not solely on attracting new, but more importantly, building revenue from old customers Providing products and services to existing customers completely differs from exploiting a new customer Once customers fully trust you, you don't need to build a reputation, or demonstrate product features or quality

Old customers will be more open to hearing about how complementary products and services can help them improve or extend the utility of existing products In addition, most people tend to trust and refer to the reviews and opinions from people they know who share the same lifestyle and characteristics as us This is why word-of-

mouth advertising is one of the most powerful marketing channels that the enterprise needs to exploit Loyal customers can spread their reputation to other potential customers More likely, they will also share positive experiences and make brand recommendations of the business with others their friends and partners

Loyal customers help enterprises stand out from the price competition compared

to competitors

Price competition occurs in most markets and industries, but you may not need to worry about a few competitors if you have a loyal customer base Instead, reduce product costs to attract and entice customers It is the loyalty of customers that creates

a solid resistance to the lure of competitors

In conclusion, owning a loyal customer base is a precious asset to an enterprise Therefore, investing in customer’s loyalty management is necessary Loyal customers provide the most unbiased and quality information and feedback People and customer needs are constantly evolving, so technology and everything related to the quality of enterprise operations also need changes to adapt Therefore, to exploit and maximize benefits from loyal customers, enterprises need to focus on using and constantly developing products and areas of activity, taking loyal customers as the centre

1.2 Factors influencing customer’s loyalty

With the current rapid and extensive integration process, any enterprise wants its customers to be satisfied with the products and services it has provided, thus, enhancing customer’s loyalty at Phu Thanh Investment Joint Stock Company is necessary

Rely on the novel theory of customer’s loyalty in the Scandinavian and North

American schools (the SERVQUAL model – proposed by Parasuraman et al 1988),

the interview results through qualitative methods and characteristics business of Phu

Thanh Investment Joint Stock Company (customers buy confectionery, beverage, and foreign alcohol) is a rather specific business (retail of consumer products), so the author builds the research model based on the SERVQUAL model combines the Scandinavian (taking the customer as the focus) because only when customers are satisfied will they be loyal to the business, and grouped into 4 main factors according

to the results In-depth interviews include: products, staff, outlet image and after-sales care This is also quite consistent with the marketing mix in customer retention – pointed out by Kotler (2003) The author's model proposes the following research:

1.2.1 Product

Products are always the main customer interest factors and influence the buying process When considering the supermarket outlet environment, it can be seen that the retailer mainly focuses on the concept of "product" Research literature has shown that the “mixed product” elements capture their quality, evaluation, and performance (Prasad Kotni & Karumuri, 2018) A good product review will impact the outlet and outlet loyalty (Baskerville & Wood-Harper, 1996) Burns and Neisner (2006), who studied customer satisfaction in five European countries – France, Denmark, Finland, Portugal and Switzerland – found that product quality is the main is the basic, core and most important element in building the brand of a business A study on the grocery retail industry (Hunneman, Verhoef, & Sloot, 2021) has shown that product grouping

is the most influential factor influencing the choice of a discount outlet type of retail, hypermarket or traditional supermarket Often the customer's perception of the product

is positively related to their loyalty to the outlet and its perceived value (Parasuraman

et al., 1988; Sasono et al., 2021; Tran et al., 2020)

Nowadays, with the increasing requirements for customer satisfaction, in addition to the factors of quality, quantity and price, the proximity to the environment

Products

Staff Outlet image

After-sales services

Customer loyalty

or technical features when used, the information related to the product always keep the customer's attention in the buying process So, the hypothesis is proposed:

H1: Enterprise products have a positive impact on customer’s loyalty

1.2.2 Staff

For retail enterprisees, the staff (at the outlet) are the enterprise representatives who directly interact with customers to bring products and services to customers The behavior of service staff who come into direct contact with the customer is very important to the customer evaluation in the related transaction (Ying et al., 2021) Unsurprisingly, organizations can create a distinct and sustainable competitive advantage by providing excellent service delivery (Gronroos, 1990; Grönroos, 2017) Typically, a service involves frequent or prolonged direct contact between employees and consumers In this case, the service is provided in connection with employees who come into direct contact with the customer; Therefore, employees who are in direct contact with customers play an important role in providing quality service as well as customer satisfaction In contrast, loyalty will influence customer behavioral responses

as demonstrated by customer’s loyalty, word of mouth, or behavior conversion (Glynn

& Lehtinen, 1995; Phạm Thị Huyền & Nguyễn Hoài Long, 2018)

Staff at the outlet of enterprise should always be the ones who create positive emotions for customers because the role of emotions is to gain attention as a central element

in service quality management (Oliver, 1997) Stauss and Neuhaus (1997) argue that most research on loyalty focuses mainly on the cognitive element of emotion, while the seemingly important emotional factor is mostly ignored Furthermore, Liljander and Strandvik (1997) argue that customer’s loyalty includes both affective (and emotional) and cognitive factors Wrong (2004) found that negative emotions influence loyalty more than positive emotions Emotions play an important role in employee interactions with customers Furthermore, Czepiel and Gilmore (1987) show that the interaction of the company's employees with customers will attract more customers Furthermore, Sherman et

al (1997) suggested that a customer shopping for a particular product in a outlet may purchase additional products if his or her emotional state is being positively motivated by the display or expression of creation

In enterprises, especially retail enterprises, staff are like the fulcrum of leverage – they can hugely impact sales and profitability, both positively and negatively One good staff can attract 100 customers Conversely, the bad one can drive 100 customers away If that happens, it can be replaced with 10 good staff or found lost customers

To illustrate, imagine we received bad service from a salesman Not only won't you go back to that outlet yourself, but you'll tell others about the bad story, and they may not buy anything from that seller either It's an example of how a bad employee can lose a customer However, when the enterprise get good service, the custormers will come back and continue to shop there They also tell their friends and may also come to shop there That is the effect of leverage in action In addition, customers who are in the outlet see other people buying, they themselves feel like buying

So, the hypothesis is proposed:

H2: The staff (at outlet of enterprise) have a positive impact on customer’s loyalty

1.2.3 Outlet imagine

An important element of the outlet's image is the outlet space This element refers to a space created from the organic visual elements of the outlet space (brand identity, outlet area, convenient transportation ) Outlets with a well-loved space are likely to enhance customer experience and satisfaction (Babin & Darden, 1996) and also impact the amount of time and money that customers spend at the outlet (Babin & Darden, 1996; Babin et al., 2003; Donovan & Rossiter, 1982; Bellizzi et al., 1983; Eroglu & Machleit, 1990) Moreover, the convenience of the outlets also plays an important role in building the stimulation of the outlet space This convenience refers

to the outlet's layout and design, helping customers plan their shopping They will also have experience in understanding signs or labels, thereby controlling their purchases (Bitner, 1990; Spies et al., 1997) A successful outlet layout depends on whether the outlet has a clear and understandable idea; For example, a person can easily find the product they need in their shopping trips Labels, informational posters and signs also play a role in formulating the idea of how the outlet should be designed to create an attractive space for customers (Spies et al., 1997)

A customer may choose to shop at a particular outlet because he or she likes the atmosphere of that outlet Then, they can spend more money because of a positive emotional atmosphere in that outlet Up to this limit, even if a customer has been in a negative emotional state before, that person's emotions can still change while in a outlet where the atmosphere in the outlet is emotional positive like happiness or enjoyment The author proposed:

H3: Outlet image of the enterprise positively impacts customer’s loyalty

1.2.4 After-sales service (including handling complaints after purchase)

The pre- and in-sales support services are the attraction of customers, and the after-sales support services, in addition to attracting customers, are also an important factor in retaining customers for customers to buy in the next time (Phạm Thị Huyền

& Nguyễn Hoài Long, 2018) After-sales support service, also known as after-sales service, is understood as after-sales activities When it comes to after-sales service, it refers to various promotions and discounts to attract repeat purchases, thereby ensuring customer’s loyalty (Zeithaml et al., 1996)

After-sales services are important to the enterprise activities of the enterprise in addition to generating a profit that contributes to the company's total revenue; help the company build its brand, and create customer’s loyalty, thereby helping the sustainable development of the enterprise (Tran et al., 2020) After-sales service activities help the company build a good image for customers, especially potential customers, attracting them At the same time, through old customers to promote and attract new customers

to the company

Complaint resolution addresses potential defects in products and services, and customer complaints are a reminder of a customer's real need Enterprises need to understand that customer complaint are not the end of a problem but the beginning Because when handling the situation skillfully, of course it becomes a enterprise opportunity of the enterprise If a enterprise listens and responds to complaints by correcting what went wrong and sending customers a sincere thank you, customers will tell others about their experience That's called the value of word-of-mouth advertising and is also one of the most effective forms of popular advertising today

By doing so, the enterprise is unharmed and has the opportunity to have more customers and more successful sales

Complaint handling is customer retention: If enterprises invest time and effort in other things and ignore understanding the cause of customer frustration, we will surely lock the door of our enterprise Thus, invisibly, the enterprise has lost customers while they are the fastest source of profit To prevent this, enterprises must look at customer complaints with the motto: "We look forward to hearing all customer complaints" Because the more you listen, the more chance the enterprises will have to prove that what your customers want is important This will make customers feel comfortable, secure and confident when using their products Handling customer complaints can be difficult, but successful handling results in satisfied customers Customers are increasingly demanding the best, fastest, most convenient Therefore, having the ability to listen, respond, and handle customer complaints actively will be an important step in creating long-term customer’s loyalty So, the hypothesis is:

H4: After-sales service of enterprises has a positive impact on customer’s loyalty

Thus, using the SERVQUAL model of Parasuraman et al (1988) and following the specifics of the company's business, the author combined the Scandinavian school's idea of taking the customer as the focus, which is suitable for research

Chapter 1 has focused on analyzing the concept of loyalty and its manifestations (attitude loyalty, behavioral loyalty) Also in chapter 1, the author has based on qualitative research results to provide a research model of factors affecting customer’s loyalty at Phu Thanh Investment Joint Stock Company This content will serve as the foundation for the author to analyze the situation in chapter 2

1.3 Experience of some companies and implications for Phu Thanh Investment Joint Stock Company

1.3.1 Experience of some companies

Experience of Bien Hoa Confectionery Joint Stock Company (Bibica)

Bibica is a Vietnamese confectionery brand of the southern region The distinctive feature of this company is that it has created a loyal customer base, including both individual

and corporate customers The company has created a number of customers who have a habit

of buying for themselves, including the following measures

First, always create more products for customers to use These types of products are aimed at high-end customers, or ordinary customers Bibica creates products with beautiful designs for customers to buy - give away This has given customers more choices

Secondly, Bibica has had a great relationship with supermarkets and businesses in the area to be able to better distribute the products that the company produces A series of supermarkets connected with Bibica, such as BigC, Win-mart have accepted the company's products When sold in supermarkets, Bibica's products can reach more customer groups in the market

Third, focus on the wholesale market This is one of the differences compared to other businesses Although the number of retail customers of Bibica is high, the profit of this group

of customers is much lower than that of the wholesale group Therefore, Bibica has taken care

of customer groups that are businesses or supermarkets (through price discounts, increasing brand recognition) to be able to better connect with customers

Experience of Hai Chau Confectionery Joint Stock Company

Hai Chau Confectionery Joint Stock Company is one of the famous enterprises in the market – but not about confectionery but about auxiliary products To be able to survive and retain customers, some measures that the company has taken are as follows

Firstly, to increase into the group of high-end products, such as confectionery and foreign wine, to better serve the different needs of customers in the market The issue of products related to gifts on special occasions such as Tet, mid-autumn are also decorated to suit the needs of customers in the market

Second, after-sales service is focused Hai Chau Confectionery Joint Stock Company also has a professional team that both researches the market and takes care of customers All customer needs are solved on the basis of customer satisfaction with the business

Third, the issue of food safety and hygiene At present, the products of Hai Chau candy company also have many counterfeiters, so the company has registered for exclusive protection to ensure healthy competition Some stores have also been launched to ensure product supply to customers and create product highlights to attract customers

1.3.2 Implications for Phu Thanh Investment Joint Stock Company

From the experience of some enterprises in the market, some lessons can be given to Phu Thanh Investment Joint Stock Company as follows:

Firstly, besides traditional products, it is necessary to introduce imported products to better meet the needs of customers These products can often be imported beer and wine, used

in major Vietnamese holidays such as Tet, mid-autumn festival

Second, develop the customer care apparatus through the hot line to better meet the requirements of customers This apparatus usually answers the needs of purchasing, sales, after-sales service That way, customers will have more choices

Third, combine with businesses to better distribute products to customers Phu Thanh Investment Joint Stock Company can combine with supermarkets in the market to be able to distribute confectionery; at the same time, distribute at retail stores in rural areas to better serve customers

Finally, the issue of food hygiene and safety needs to be focused The company's products are related to consumers' health quite a lot, so the company needs to ensure the medical requirements In addition, the company needs to pay attention to the issue of trademark protection to avoid counterfeit goods

CHAPTER 2: THE CONTEXT STATUS OF CUSTOMERS’ LOYALTY AT

PHU THANH INVESTMENT JOINT STOCK COMPANY

2.1 Overview about Phu Thanh Investment Joint Stock Company

2.1.1 History and development of Phu Thanh Investment Joint Stock Company

Business name: Phu Thanh Investment Joint Stock Company

English name: Phu Thanh JSC company

Type: Joint Stock Company

Address: Lot 3, N4 street, Hoa Xa industrial park - Nam Dinh

Phone number: 0350 3846134 Fax: 03503670366

Registration number: 0702000628

Date of establishment: 08/01/2004

Representative: Tran Ngoc Hai

Activities: Producing and trading in confectionery and beverages of all kinds Buying, selling and processing food, food and importing all sorts of foreign goods and confectionery in the country for distribution

Established in early 2004, the company has legal status, has civil rights and obligations according to the law, is self-responsible for all its business activities in the amount of contributed capital, has its seal, has assets and concentrated funds, and may open accounts at banks following the State's regulations

From 2004 to early 2008: The period when the company was established, began

to form fixed assets, recruited employees and initially had products out to the market The period 2008 to 2009: this is the most challenging period, because of the new entry into the market, plus the economic downturn, the company's goal is not profit but exploration and find a new market, so yields are very low

From 2009 to 2018: this is the period when the company promotes business, sells initial products for several enterprises in Hoa Xa industrial park and some companies

in Nam Dinh province, then pushes strongly to the Hanoi area, where there is a lot of demand for goods and products, especially foreign confectionery and alcohol

The period from 2019 to present is when the company accelerates its growth rate and maintains a stable development momentum With the initial charter capital of 3 billion VND, the company has enough capital to develop in business To expand its scale, the company uses many methods such as borrowing from banks and customers… Therefore, it can meet all capital needs at different times

Mission and target

The company's mission is to do wholesale and retail business of related items to meet the needs of people in Hanoi and provinces such as Nam Dinh, Thai Binh, Hai Duong, Ha Nam… Trying from 2021 to 2025 can open markets in the inner areas such as Thanh Hoa, Nghe An and the southern market Capture the needs and tastes of customers to have the right business directions and build credibility and trust with customers, reducing risks in business The company conducts transactions, negotiates, and signs contracts by introducing products and goods All departments, divisions, and departments are responsible to the company for the assigned production and business fields

confectionery-Target: (1) organize the implementation of the business plan following the law and the company's content; (2) Exploiting and effectively using the company's capital, and at the same time mobilizing other sources to ensure the expansion and growth of business activities, financial expenditures, and profits and meet social needs; (3) constantly improving the company's benefits, ensuring high employee income, improved working environment; (4) increase accumulation, develop the company's the production and business activities, and expand its reputation in the market

Organization of company

Selling high profit is the primary goal of every company entering the market Therefore, all company activities aim to sell goods based on mutual benefits between the parties At the company, each department has a direct or indirect role in the consumption of goods In which, the sales department is the department that plays the leading role in operating and managing, inspecting and urging, directly implementing sales activities

The organizational model of the company consists of the following divisions:

Director is the person who directly manages and supervises all general activities and sales The director makes the management decisions, the direction of operation in general and the decisions on the business method and consumption of goods in particular

Deputy director: 1 deputy director in charge of technical, 1 deputy director in charge of business The Vice President of Sales, under the command of the Executive Director, directly operates the sales department, deciding all forms of marketing

Figure 2.1: Structure of the Company

Sales Department is responsible for sourcing goods from suppliers, building strategies - business plans, developing customer systems and developing markets

Director

Deputy director

in charge of technical

Technical Dep

Storage and production Dep

Deputy director

in charge of business

Sale Dep

Import and Export Dep

Adiministration and HRM Dep

Accouting Dep

Outlets

Import-Export Department: responsible for carrying out the procedures for importing goods and materials from abroad to Vietnam, mainly related to high-class confectionery and foreign wine for the company

Administration - Human Resources Department: is responsible for organizing administrative and human resource management, monitoring labor and implementing employee-related regimes such as leave, salary and bonus

Accounting Department: is responsible for financial management, accounting, collecting and providing financial and economic information, strictly observing the state's regimes and policies on accounting management of the company

Technical Department has main task is to ensure the formula, production techniques, complete technology for the items; responsible for product quality; management, inspection and maintenance of workshop machinery, oven temperature Outlets: have the task of introducing products and selling goods; daily accounting system of revenue, quantity of goods Each outlet has outlet managers, sales-people who carry out retail operations

Staff: In the beginning, the company was just a private confectionery outlet with

5 employees; after nearly 20 years of operation, the company has grown tremendously The number of employees in the company has increased rapidly; currently, there are nearly 200 employees who are regular workers at the enterprise Especially on the Tet holiday, the number of seasonal workers can be up to 300 people Most of the workforce is 20-35, so there are many advantages in human resource training, creating dynamism and creativity in business Especially the sales team is enthusiastic and responsible for the assigned work - due to the contract However, one problem encountered is that this team has not been trained intensively, especially for foreign wine knowledge The company stipulates that there will be an outlet manager for every 8 or more employees Out of the current 8 outlets, there are 3 outlets with a manager, 2 outlet managers manage the remaining 5 (because the sum of 2 or 3 new outlets is larger than 8 people)

The main goods, services of the company

Product requirements of the company: ensure food hygiene and safety and are

diverse in types and models

Confectionery products

The company currently has 2 fundamental product lines which are:

Cake: including soft chocolate covered cake, bear cake, chocolate coin cake, biscuit, and savory cake

Candy: Includes chocolate-covered almond candies, chocolate popsicles, flavoured chocolate candies, and marshmallows

fruit-Each type of product has many different packaging methods and different levels

of luxury, suitable for customers: giving to the Buddhist temple (and the same place), kids snacking…

The imported alcohol products

The company mainly imports wines such as: Macallan, Glenfiddich, Chivas Regal, Johnnie Walker, Hennessy Cognac XO, Remy Martin, red and white wines from Italy and France

Included products

Among the accompanying products, the company has imported dried fruits from Korea, China, and Japan In addition, several other products for Tet such as calves and lamb thighs of Western countries, are also focused items

Company-supplier

The company's business activities are the same as other food businesses, it needs input products such as eggs, butter, milk… Therefore, the company immediately receives items purchased from the above farms in the northern and central provinces towards convenient transportation and cost savings In addition, some flour products are imported through pre-orders Some of the main suppliers:

Suppliers of dairy, flour and additives: Ba Vi Dairy Company, Maifarm Dairy Joint Stock Company, Tien Thuy Dairy Farm, Vietnam Dairy Cow One Member Company Limited Thanh Hoa Dairy Farm; An Nam Company Limited, Hoang Dong Food Company, Gfoods Vietnam Joint Stock Company…

Imported confectionery distribution company: Bao Minh Joint Stock Company, Barilla, Danone, Resident, Haribo

Liquor suppliers: Pernod Ricard Vietnam, Diageo Vietnam, Moet Hennessy Vietnam Joint Stock Company…

Customers of the company

Customers are organizations, enterprises and individuals in large numbers, diverse in consumer needs and tastes Some of the main customers:

Companies and groups in industrial zones of Dong Van I, II, Chau Son, Hoa Mac, Thanh Liem, Pho Noi Textile, Yen My, Gian Khau such as Hoa Sen Group, Ninh Binh Nitrogenous Fertilizer Factory, Tan Hiep Phat Group, Cement curing system, Tan A Dai Thanh Group…;

Hotels, restaurants, agency shops: Melia Hotel – Ba Vi, Hotel Hoang Son, Chill Bakery, Los Fuegos, Oregano Deli, Vana – Taurus…;

Wine shops and agents: Wine Plaza Vietnam, Gourmet Wine Warehouse, Press Club…

2.1.2 The main performance of the company

Assets are the external face of an enterprise, a reasonable asset allocation will help the company easily promote efficiency and stability in production and business, creating a good face for the business Stabilizing assets is always a problem of every business

Table 2.1: Asset structure of the Company

(Source: The Company's balance sheet for 2019, 2020, 2021)

The company's total assets increase over time However, in 2020 and 2021, the epidemic situation will affect the company's development, but because the typical business item is confectionery and related products (such as foreign beer, alcohol, tobacco) so at the end of the financial year, the company continues to borrow money