A proper approach to mom pop shops market for metro cash carry master project in business and marketing management

1 Chapter 1: Introduction 1.1 Background: Metro Cash & Carry (MCC) Vietnam is a subsidiary of Metro Cash & Carry group originated in Germany This is a typical supermarket specializing in wholesales business MCC Vietnam classifies customers into three groups: HoReCa (HotelRestaurant-Caterer), trader (retailers and wholesalers), and CBU (Corporate Business Units including Services Providers, Companies and Offices), in which the trader accounts for 44% of the total business (with subgroup, food trader: 31%, and non-food trader: 13%), while HoReCa’s and CBU occupy 15% and 51%, respectively To trader, there are many types of customer, such as a big grocery, Mom & Pop (M&P) shop1, Minimart, supermarket, fruit grocery, etc The main function of MCC has played a distributor to distribute products of manufacturers to wholesalers, and retailers MCC was held in Vietnam since 2002, and has been popular then Evidently, the turnover of the M&P shops conquered by MCC annually grows about 30% on average from 2005 to 2009, with its share of 13% in total, and of 39% in trader group Accordingly the sole sale of M&P shops in 2007 is 733 billion VND As a result, M&P shops are really worthy of taking into account, they are quite potential market for MCC 1.2 Problem statement Due to being a wholesale company, MCC Vietnam concentrates on customers who buy a big amount per visiting, e.g wholesalers and big retailers In order to attract customers, MCC usually gives promotions, e.g discounts to customers and particularly put them on a top priority to get a big quantity whenever attractive trade promotions run Besides, MCC is expected to attract customers to come to MCC’s stores rather than MCC must go to them directly to ask the purchasing contract Although MCC already set up the delivery department, it only serves for the selected HoReCa and traders while the M&P shop is not included It means that MCC has not yet derived any See its definition in section 3.3 strategy to approach M&P shops, while other suppliers Based on the internal report of MCC, the visiting frequency and average sales per visit of the M&P shops are not interesting enough The initially preliminary rationale behind is that the M&P shops are normally quite busy for their business, so it is not easy for them to manage time to visit MCC This is also a disadvantage for the M&P shop to get sale promotion programs of MCC Besides, MCC has not concerned delivery services from its business place to M&P shops, while its competitors, such as wholesalers and monopoly suppliers it As a result, MCC itself loses opportunities to pick up its share of wallet of M&P shops Based on problems just mentioned, objectives of thesis are shown as follows Findings of thesis will be helpful for MCC toward appropriate business strategies to explore the M&P shop market 1.3 Objectives − To find out perception of M&P shops on MCC − To identify M&P shops’ need and expectation to be a partner − To suggest strategies with respect to the main supplier of M&P shops, pulling M&P shop more frequently visiting, and pushing M&P shops taking account of purchasing more products when visiting MCC 1.4 Research issues and questions Based on problem statements already mentioned and objectives concerned, some questions are as follows 1.5 - Why is the M&P shop important for MCC? - How does MCC attract the M&P shop? - What disadvantages and advantages MCC have? - What are MCC’s competitors doing to approach the M&P shops? - What kind of services does the M&P shop expect from MCC? - What is the best solution to improve the business performance of MCC? Data collection In order to meet objectives, secondary and primary data are concerned Secondary data is sourced by the internal reports, website Additionally, journals are also searched to look for relevant researches done and then select appropriate approaches consistent with the objectives of thesis To primary data, in depth interview was conducted on five persons who are specialized in the sector, e.g some ones involved in marketing department, operational department, and big and representative M&P shop owners Questions engaged in this term pay attention to discussing with those five persons about their business, together with disadvantages, advantages that they got from MCC In general, the purpose of the in-depth interview is basic to develop the questionnaire for directly interviewing Yet, based on the in-depth interview, the questionnaire is produced after that The pilot survey was then conducted on ten M&P shop owners, which to look for the final and complete questionnaire Respondents who are interviewed must be M&P shop owners, must have their business time at least one year already started The survey is conducted in Ho Chi Minh city, where District 2, District 6, and District 12 are mainly concerned and respondents are randomly selected The sample size expected is 100 observations Because most of M&P shop owners are quite busy, not easy to contact 100 hard copies of questionnaire were directly sent to them There are 80 samples returned, completely filled, and sufficient 1.6 Scope of research The research conducted in Ho Chi Minh City, respondents interviewed are mainly responsible for their business, e.g owners, managers, who have engaged in business above one year Because of time limitation and unwillingness of M&P owners and managers to accept the questionnaire for interviewing, the number of samples is not so big, just 80 samples Hopefully the result is partly a representative voice for the project 1.7 Methodology Descriptive analysis is used to analyze the raw data collected, together with secondary data Additionally, SWOT analysis is also applied Chapter 2: Literature Review 2.1 Introduction As we know, the business function of MCC plays a business store with self service as a supermarket So literature reviews in this section will discuss issues relevant to supermarket Supermarkets are generally viewed as providing outputs superior to those of traditional formats (Goldman, 1981) However, some consumers may view supermarkets as providing similar or inferior outputs than traditional stores (e.g higher prices) Currently, there are positive changes in consumers Consumers think that shopping in supermarkets is quite helpful to save their time At the same place as the same time consumers can buy a lot of items or product categories Also they partly accept reasonably high price because they are compensated by an attractive internal environment, such as cool air, free looking and selecting, etc Evidently, during study how different between supermarket buyers and retail store buyers, Goldman (2005) argued that a higher opportunity cost of time is making multi-stop shopping in many small stores more costly than the one-stop shopping associated with the supermarket 2.2 Distribution definition According to (Stern and El-Ansary, 1982), a distribution system is a network of organizations liking a supplier to its various customer segments Distribution decisions are subject to the challenge of dealing with a concurrent pressure to promote distribution efficiency and at the same time ensuring that the corporate identity is communicated properly (Parment, 2008) To manufacturer, the distributor provides physical distribution services as one of the four P elements (e.g product, price, place, and promotion) of marketing mix, and support the manufacturer to transfer goods to consumer directly or indirectly A good distributive system must be combined the manufacturer’s support services, retail outlet, advices, location, etc Services are consisting of tangible and intangible actions (i) Tangible actions directed at people bodies such as transportation services, delivery services, repairmen and maintenance, etc; (ii) Intangible actions are mental stimulus processing that are services directed at people’s mind or information processing To retailing distributor, the distribution is based on information gathered through marketing intelligence The retailing distributor plays an important role to transfer product information message to consumers If the retailers can get the client to perceive the establishment and its offer as superior to the competition, it will be probable that satisfaction is increased when making the purchase The retail distributor offers variety in product categories can improve the convenience of purchase, in this way increasing consumer’s satisfaction (Dellaert et al., 1998) Albrecht and Zemke (1985) argued that the distribution services are based on three components combined, e.g strategy, system, and people Strategy means how the company positions itself in the customer’s mind System means the way of deploying sources, and people present the manpower force of the company interact its services to customers 2.3 Service quality management The concept of perceived service quality has been developed in the services marketing literature during the past decade In order to keep a strong position in the market place, the service quality has played an important role for retailing and wholesale companies In an attempt to analyze the aspects of service quality perceived those companies can meet customers’ expectation There are various approaches as to the concept of quality, which are summarized in figure 2.1 According to Vazquez, et al (2001), the service quality is based on the demand approach, recognizing that quality of a service depends on its evaluation by the consumer Figure 2.1: Approaches to the concept of quality Objective quality Subjective quality + Internal view of quality + External view of quality + Production/Supply approach + Marketing/demand approach + Adapting to pre-established + Customer real judge of quality specification + Error-free service transaction, lowing + Company’s ability to determine costs and avoiding deviations from the customer needs and expectations set standard + Appropriate for standardized activities + High customer contact activities Source: Garvin (1988) The concept of service quality is linked to the concepts of perceptions and expectations Service quality perceived by the customer is the result of comparing the expectations about the service they are going to receive and their perceptions of wholesale and retailing companies’ actions (Parasuramand et al., 1988) If perceptions exceed expectations, the service provided by those companies will be considered excellent; if it only equals the expectations it will be regarded as good or adequate; if it does not meet them, the service will be classed as bad, poor or deficient Therefore, perceived service quality is frequently referred to as the comparison between the customer's expectations and his/her perceptions of the service provider's performance Parasuraman et al (1988) have also suggested that service quality consists of five generic dimensions: tangibles, reliability, responsiveness, assurance, and empathy Customer satisfaction, which according to the dominating expectancy-disconfirmation paradigm is defined as a function of the customer's expectations and perceptions of performance (Tse and Wilton, 1988; Anderson and Sullivan, 1993), is a phenomenon closely related to perceived service quality According to Anderson et al (1994), two major conceptualizations of customer satisfaction can be identified: transaction-specific and cumulative satisfaction The causal link between perceived service quality and customer satisfaction, and which of the constructs has a direct impact on customer loyalty, has been debated in the literature (Cronin and Taylor, 1992, 1994; Teas, 1993; Parasuraman, 1994) This debate emanates largely from differences in how the two constructs are defined The viewpoint taken here is that perceived service quality, which is defined as the consumer's perception of a firm's offering, or performance, is an antecedent of customer satisfaction, which in turn is positively related to customer loyalty As Cronin and Taylor (1992) argue, it seems reasonable that customer satisfaction is affected not only by the quality of what the customer receives, but also by price and convenience We also agree with Anderson et al (1994) that from a firm performance perspective, cumulative satisfaction is the more adequate study object 2.4 Attributes characteristic to the grocery store identified In a traditional way, price has been considered as an important element at the moment for determining the perception that the consumers have on a store (Ruiz, et al., 2010) Thus, frequently, retail distributors use price as a key aspect to their commercial policy with the purpose of obtaining a certain image in the markets For this reason, they design and carry out strategies oriented generally to obtain a positioning of discount prices With the purpose of achieving this objective, sometimes fixed prices are specially reduced on those products and product categories (loss leaders) that are important to the consumers For a large arrange and assortment, understood as the variety of products and the number of different items that are offered by a retail distributor (Levy and Weitz, 1995) Certainly, a greater variety not only helps the retail distributors attract more consumers, but can also stimulate them to make more purchases while they are in the establishment Additionally, a retail distributor who offers greater variety in product categories can improve the convenience of purchase, in this way increasing consumer satisfaction (Dellaert et al., 1998) To analyze supermarket buyer decisions, Montgomery (1975) conducted a survey on one hundred twenty four new products with 18 variables: (1) Promotion; (2) company reputation; (3) Quality; (4) Newness; (5) Introductory allowances; (6) Competition; (7) Packaging; (8) Gross margin; (9) Advertising; (10) Private label; (11) Guarantee; (12) Distribution; (13) Broker; (14) Sales presentation; (15) Category volume; (16) Category growth potential; (17) (Shelf space; (18) Cost 2.5 Study approach Based on the literature review argued, together with internal report, and in depth interview, some information is selected to be designed in the questionnaire We can see that information depicted in figure 2.2 Accordingly, the M&P shop is interviewed through the questionnaire available Besides what the M&P presents its consideration when buying product categories, it also expresses its mind of how attractive to think of MCC Figure 2.2: Consideration and evaluation of M&P shop for MCC Consideration How attractive Product Assurance of product quality Well-known brands/products Availability of products Wide variety of product categories High hygienic standards on all items Fresh products Price Competitive Pricing Consistent Pricing Customer Specific Pricing (Based on volume/quantity of operation or other factors) Fixed Pricing Everyday low prices Promotion Regular Specials and Discounts Promotion gifts or gifts from manufactures Value added offers (trips, show, etc ,,,) Delivery Free home delivery Quick and on time delivery Payment Late payment Rolling payment Customer services Friendly, helpful, understanding and informative staff Offer salesman to support the business Knowledgeable salesman Good after sales services Strong personal relationship Ease of return guarantee Ease of return products Order by telephone/fax Service Clean Floors Large displays Friendly Sales Associates Regular visits by Customer Consultants Fast check-outs 100% in stock conditions Ease of parking Product Assurance of product quality Range of/diversity of categories Range of well known local brands Range of well known international brands Exceptionally hygienic fresh departments Communication Regular communication of promotions via Metro Post Regular communications of promotions via staff Price Pricing clearly marked on shelves and displays Promotion Promotion campaigns We need information just mentioned, because it is helpful for this project meeting objectives The study approach framework presented in figure 2.2 is applied to find out how the M&P shop perceives MCC’s services, as well as to evaluate the M&P shop’s thinking In parallel, a customer service quality measurement is also concerned, together with looking for what the M&P shop wants from MCC giving them a perfect service Figure 2.3: The study approach framework Product Price Metro supermarket (MCC) Promotion Consideration Delivery service Evaluation and expectation Mom & Pop shop (M&P) Payment Quality customer service What MCC provides What M&P shop thinks of 10 Chapter 3: Market and Performance of Metro Cash & Carry Vietnam 3.1 Introduction MCC Vietnam is a subsidiary of Metro Cash & Carry Group with more than 670 stores in 31 countries, being the internationally leading self-service wholesaler It was found in 2002, which Ho Chi Minh City is the first place concerned by MCC for its business MCC is one of the largest trading companies in Vietnam, pioneering the concept in Vietnamese market MCC offers an assortment of over 15,000 products, with over 300 staffs per store and over 90,000 registered customers Currently, MCC has a sales force of over 100 staffs to canvass businesses and to maintain customer relationships across Vietnam MCC is a leading model of wholesale business in Vietnam Year by year, then, it expands through the whole country e.g Hanoi in 2003, Cantho in 2004, Hai Phong in 2005Hai Phong, and so on, (see figure 3.1) Figure 3.1: Revolution of MCC in Vietnam March, 2002 Found in Ho Chi Minh city, the south of Vietnam December, 2002 Second MCC found in Ho Chi Minh city, the south of Vietnam July, 2003 Found in Ha Noi, the north of Vietnam Found in Can Tho, the Mekong Delta in the south of Vietnam December, 2004 October, 2005 Found in Hai Phong, the north of Vietnam December, 2005 Found in Da Nang, the middle of Vietnam December, 2006 Third MCC found in Ho Chi Minh city September, 2007 Second MCC found in Ha Noi July, 2009 Found in Bien Hoa, in the south of Vietnam September, 2010 Found in Long Xuyen city, An Giang Province in the Mekong 22 Consideration on price Similarly, five variables, e.g competitive pricing, consistent pricing, customer specific pricing, fixed pricing, everyday low price, shown in figure 4.8 mostly have mean values less than This means that the M&P shop does not have much of worries when buying product categories from suppliers, in which MCC is thought as reliability to present its competitive pricing and its fixed pricing Consideration on promotion According to the M&P shop, MCC presents good regular specials and discounts, and promotion gifts for them, so the M&P shop does not need to suspect the promotion program under MCC However, monopoly suppliers are better than for promotion programs relating to value added offers, e.g trips, shows, etc., said by the M&P shop (figure 4.9) Figure 4.9: M&P shop’s consideration on promotion Wholesale mark et Regular specials and discounts 3.0 Wholesalers Monopoly supplier MCC 2.0 1.0 Value added offers (trips, show, etc.) Promotion gifts from manufacture Source: Own survey Consideration on delivery and payment As shown in appendix 8, most of the M&P shop is not worried what wholesale market, wholesalers, and monopoly suppliers offer delivery service and payment, due to the 23 fact that they are supported a lot In contrast, the M&P shop wants to have a support of those services from MCC Consideration on customer services Although MCC has reliable services with respect to personal communication of staffs, such as friendly, helpful, and dynamic, together with knowledgeable salesman (figure 4.10), the M&P shop have so much of worries from others services of MCC, such as, good services after sales, strong personal relationship, ease or return guarantee, ease of product return, order by telephone Unlike MCC, the other three suppliers so well for taking care of customers, keeping in strong tough, accepting products or guarantee that the M&P shop wants to return, willing to take order by telephone or fax In sum, customer services of MCC are less dynamic than that of wholesale market, wholesalers, and monopoly suppliers Figure 4.10: M&P’s consideration on customer services Wholesale market Wholesalers Monopoly supplier Friendly, helpful, dynamic staff MCC 4.0 Order by telephone/fax 3.0 Offer salesman to support the business 2.0 1.0 Ease of return products Ease of return guarantee Knowledegeable salesman Good service after sales Strong personal relationship Source: Own survey b M&P shop’s evaluation on MCC Mostly the M&P shop has a quite positive evaluation on MCC, in which the services are seemly good, except to fast check-outs due to a small value of 3.4 (appendix 9) This can be caused by a lot of customer online, so waiting time for the M&P shop is too long 24 In general, elements mentioned in appendix are attractive for the M&P shop, because their value scores are larger than c M&P shop’s expectation Based on the question asking the M&P shop’s expectation, the answer is resulted in appendix 10, in which the supply price is ahead concerned This means that the M&P shop wants MCC’s offering a reasonable, due to acceptable profit margin This is not big surprising because any actor in the market channel always wants to get high profit margin An increase in enough investment is also concerned in the M&P shop’s expectation d M&P shop’s ranking for elements in future As depicted in appendix 11, the product quality is always the best of other elements The second one is competitive price This ranking is consistent with the M&P shop’s expectation The third one is free home delivery service, which MCC has not so well to attract the M&P shop As a result, three above elements should be kept in mind for the business strategy of MCC 4.4 SWOT analysis The SWOT is a combination of four elements: Strengths, Weaknesses, Opportunities and Threats The SWOT analysis is a tool for auditing an organization and its environment It is the first stage of planning and helps marketers to focus on key issues Strengths and weaknesses are internal factors Opportunities and threats are external factors Based on analysis results of the research, together with secondary data and, SWOT analysis is summarized in figure 4.11 as below 25 Figure 4.11: SWOT analysis Strengths Weaknesses - - - MCC Group's expertise and traders - Uncovered by on-field sales force ( Key approach Account Executives) Wide range of products including - No delivery and credit popular and international brands Feel - - Regularly run sales - promotion prioritized particularly on fast-moving items - Reliability: promotion, price, product Opportunities - - since wholesalers Metro just before whenever big promotions taking place - Taking time to pay online - Bad service after sales Threats Avoid taking risk as dependent on - M & P shop number will decrease due wholesalers to the development of Modern Trade M&P shops’ margin is ranging 10-15% and consolidation of trader business against that of wholesalers 1-2% - distrustful - An increase in competitive services of Accounting for a large part of universe other suppliers retailers in Vietnam (approximately - An increase in Consumer Price Index 300,000) - Increase in M&P shop’s investment - Increase in market demand 26 Chapter 5: Findings, Conclusions and Recommendations 5.1 Findings and discussions An increase in number of the M&P shop in the market place, plus with a rise in the retailing demand, the M&P shop is really a potential market for MCC, due to its annual increasing share is bigger in total revenue, and holding an important procurement from MCC with 26% of the distribution share The M&P shop is dynamic for how to combine between its business scale and the speculative concepts, and has a good enough experience due to a long time doing business MCC occupies a positive thinking in the M&P shop’s mind Product quality, price, promotion, customer service through personal communication presented by MCC is reliable for the M&P shop Although MCC is a leading and big distributor, it must face constraints from the market place The competitive distributors (e.g wholesale market, wholesaler, monopoly supplier) are doing very well for services of free home carrying; ordered-product categories by telephone and salesman together with other services of late payment and rolling payment As a result, tangible actions (Stern and El-Ansary, 1982) under MCC are not so well, and could negatively impact on a good distributive system There are many product groceries concerned by the M&P shop, in which the five leading items almost supplied by MCC Although the M&P shop has a buying frequency once a month, it normally gets a big mount, due to higher opportunity cost of time is making multi-stop shopping in many stores more costly than the one-stop shopping (Goldman, 2005) One more finding is consistent with the argument of Ruiz, et al (2010) The M&P shop pays very much attention to the price and thinks of it as an important element to get a big profit margin In addition, the M&P shop has a reliable thinking about promotion 27 programs, quality product categories under MCC, and expects good post-services and tangible actions such as free home delivery, payment installment 5.2 Conclusions In order meet the objectives as well as the research issues, secondary and primary data are concerned in the thesis Accordingly, descriptive analysis and SWOT analysis are two main tools used to track the results With a significant growth of the M&P shop market share in total turnover of the MCC during 2002-2009, partly proves that the M&P shop plays an important market for MCC Additionally, MCC get a higher margin from the M&P shop than that of the wholesaler (big trader) Shortly, the M&P shop market is necessary to be exploited, because the average cost of home delivery service accounts for 1% Comparing with competitive suppliers, e.g wholesale market, wholesaler, monopoly suppliers, MCC had a full advantage with respect to quality product supply, reasonable price based on discount, reliably various program However, MCC is not evaluated so well for services of ordering product categories by telephone, by fax, e-mail and through salesman, while competitive suppliers are doing great and very dynamic for other services, such as free home delivery, late payment, rolling payment Wholesaler and monopoly suppliers offer up to ¾ total purchased goods delivery which currently Metro has not offered Personal relationship does play a key role For monopoly suppliers, salesmen play a very active role in visiting the shops frequently, keeping up on their stock status, and “feeds” when the stock’s nearly finished Telephone-via order is also another kind of strength of these suppliers Wholesalers and monopoly suppliers also offer quite good discount when order by large quantity Together with free home delivery service, these suppliers surpass MCC Although MCC has much of advantages, such as good services consiting of clean place, large display and easy parking, and product categories including hygienic and quality 28 product assurance, well-known brands, etc., MCC still has more things to to compete with other suppliers In order to that, we can follow up recommendations 5.3 Recommendations In order to compete with wholesalers and monopoly suppliers, besides maintaining the reputation of providing highly assured quality products, MCC should be concerned in as follows − Delivery service: First of all, identify the key M&P shops, which purchase at MCC’s stores with high frequency and average sales per visit, based on the internal analysis through Metro Data Warehouse, then set up a frame of purchase amount for free home delivery (2 million VND within the 10kilometer-radius would be a reasonable start) It is certain that this service should be communicated to the selective the M&P shops − Personal relationship counts: make the M&P shop thinks that MCC is a part of its business, not just one “wholesale supermarket” o Identify key clients with frequent large quantity purchase/ bulky purchase, providing them with frequent buyer membership/ special discount and free home delivery/delivery assistance o Set up a group of salesmen who will pay frequent visits to these key clients and gradually update them with new products/ promotion and these salesmen must be friendly and attentive At the same time maximize the established role of Metro Post o Telephone order service should also be taken into consideration and just applied for the selective M&P shops if any − Product o Consistently available products which are “fresher” and have longer expiry date o Assurance of hygienic and quality product plus a careful selection of famous brands (this is important since it’s key strength of MCC) 29 o Ease of product return (in case of damaged or expired) − Pricing: with the similar importance as product focus o Consistent and competitive pricing but must meet the M&P shop’s expectation on a good enough profit margin o Concerning flexible pricing negotiation This may be a bit difficult for MCC to apply, but again, it is the key strength of monopoly suppliers that all customers recognize Thus, it might be tackled by targeting certain key clients and offer them with special discount policy in replacement 5.4 Limitation and further research The methodology approach uses mostly descriptive analysis, due to statistical methodology limitation during master program In addition, time limitation doing survey and not easy to be by communicated by respondents, so the sample selected is not quite big This leads difficulties to test how statistically different perceptions of the M&P shop on MCC and other competitive suppliers Based on that, results found are limited in a sample size However, they can be good information that the MCC can use it as an important channel to promote its business strategy It is good for further research if the project is expanded to increase a sample, together with using statistical tools, e.g regression model, to find out how the relationships between the M&P shop’s buying and its characteristics are 30 Reference Albrecht, K., and Zemke, R (1985) Service America! Home-wood, IL: Dow JonesIrwin Anderson, E W and Sullivan, M W (1993) “The antecedents and consequences of customer satisfaction for firms” Marketing Science, Vol 12, No 2, pp 125-143 Anderson, E W, Fornell, C and Lehman, D R (1994) “Customer satisfaction, market share and profitability: findings from Sweden” Journal of Marketing, Vol 58, No.3, pp 53-66 Cronin, J J and Taylor, S A (1992) “Measuring service quality: a reexamination and extension” Journal of Marketing, Vol 56, No 3, pp 55- 68 Cronin, J J and Taylor, S A (1994) “SERVPERF versus SERVQUAL: reconciling performance-based and perceptionsminus expectations measurement of service quality” Journal of Marketing Vol 58, No 1, pp 55-68 Dellaert, B., Arentze, T., Bierlaire, M Borgers, A., and Timmermans, H (1998), “Investigating consumers’ tendency to combine multiple shopping purposes and destination,” Journal of Marketing Research, Vol 35, No.2, pp 177-188 Dellaert, B., Arentze, T., Bierlaire, M., Borgers, A., and Timmermans, H (1998) Garvin, D.A (1988), “Managing Quality” Free Press, New York Goldman, A (1981), “Transfer of a retailing technology into less developed countries: the supermarket case” Journal of Retailing, Vol 57, No 2, pp 5–29 Goldman, A and Hino, H (2005), “Supermarket vs traditional retail stores: Diagnosing the barriers to supermarkets’ market share growth in an ethnic minority community” Journal of Retailing and Consumer Services, Vol 12, pp 273–284 James, P.T., 1997 GestioH n de la Calidad Total Un texto Introductorio Prentice-Hall International, UK Levy, M and Weitz, B (1995), “Retailing Mangement”, Irwin, Chicago 31 Parasuraman, A, Zeithaml, V A and Berry, L L (1985) “A conceptual model of service quality and its implications for future research” Journal of Marketing, Vol.49, pp.41-50 Parasuraman, A, Zeithaml, V A and Berry, L L (1994) “Reassessment of expectations as a comparison standard in measuring service quality: implications for further research” Journal of Marketing, Vol.58, No.1, pp 111-124 Parasuraman, A., Zeithaml, V.A., Berry, L.L., (1988), “SERVQUAL: a multiple-item scale for measuring consumer perceptions of service qualitative” Journal of Retailing Vol 64, pp 12-40 Parment, A (2008), “Distribution Strategies for Volume and Premium Brands in Highly Competitive Consumer Markets,” Journal of Retailing and Consumer Services, Vol 15, pp 250-265 Ruiz, M P M., Zarco, A I J., and Yusta, A I (2010), “Customer satisfaction’s key factors in Spanish grocery stores: Evidence form hypermarkets and supermarkets”, Journal of Retailing and Consumer Services, Vol 17, pp 278-285 Stern, L W and El-Ansary, A I (1982), “Marketing Channels,” 2nd ed., Printice-Hall, Englewood Cliffs, NJ, pp 3-38 Tse, D K and Wilton, P C (1988) “Models of consumer satisfaction formation: an extension” Journal of Marketing Research, Vol 25, No 2, pp 204-212 Vazquez, R Rodrí, A I., Díaz, A M., and Ruiz, A V (2001), “Service quality in supermarket retailing: Identifying critical service experiences”, Journal of Retailing and Consumer Services, Volume 8, pp 1-14 32 Appendix Appendix 1: Items concerned by M&P shops (multiple answers) No Items Percent Frequency Packed tea/ packed coffee/ dissolved flour (Tang/ Milo) 23.65 19 Soft Drinks/Fruit Juices 24.79 20 Beer/Alcoholic Drinks 21.65 17 Powder milk/ sugared liquid milk 24.79 20 Fresh milk/ yogurt 25.07 20 Cakes/Sweets/Chewies 26.50 21 Snacks 25.07 20 Instant noodles/ vermicelli 27.07 22 Table oil 25.93 21 10 Soaps & Gels 25.93 21 11 Shampoo/ Conditioner/ Hair lotion 26.78 21 Household Care Products (Powder/ washing12 up liquid/ floor detergent…) 27.07 22 13 Spices/Seasonings 26.50 21 14 Batteries 20.23 16 15 Stationary 20.80 17 16 Tissues/ Napkins/ Wet tissues 25.93 21 Rank 13 11 14 11 9 6 16 15 Source: Own survey Appendix 2: Average percentage buying from each supplier of each category Items Wholesale Wholesaler Monopol Metro/MC Total markets y C (%) suppliers Tea/coffee 43 18 25 14 100 Soft drink 15 53 24 100 Beer 10 55 30 100 Powdered milk 23 25 35 17 100 Fresh milk 20 33 27 20 100 Biscuit/Sweets 26 28 24 22 100 Snack 33 27 15 25 100 Pastal/Noodle 23 39 17 21 100 Cooking oil 22 34 26 18 100 Soap/shower cream 24 22 18 100 36 Shampoo 17 22 21 100 40 Washing up liquid 16 22 21 100 41 33 Spices Batteries Stationary Roll paper/tissue 25 26 39 26 29 17 25 23 16 39 10 16 30 18 26 35 100 100 100 100 Source: Own survey Appendix 3: Ordering method of M&P shop by suppliers Wholesale Wholesaler Monopoly Ordering method market (%) (%) supplier (%) By telephone 34 42 36 By fax 1 By E-mail 1 Direct contact with supplier 58 46 22 Through salesman 10 41 Total (%) 100 100 100 MCC(%) 0 92 100 Source: Own survey Appendix 4: Buying frequency of M&P shops Wholesale market Wholesal Monopoly (%) er (%) supplier (%) Frequency twice a week or more 50 44 29 once a week 31 35 53 once of two weeks 12 16 14 once of three weeks 3 once a moth 2 less than once a moth Total percent 100 100 100 MCC (%) 10 26 15 35 100 Source: Own survey Appendix 5: Buying amount of M&P shops by suppliers Wholesale Monopoly market supplier Buying amount Wholesaler Less than million VND 63 61 54 > million to million 32 32 31 VND > million to million VND MCC 26 50 21 34 > million to 10 million VND > 10 million VND Total Percent 1 100 1 100 100 100 Source: Own survey Appendix 6: Delivery of M&P shop when buying products from suppliers Wholesale Monopoly Delivery method market Wholesaler supplier MCC Free home delivery 39 53 75 Carry by myself/staff 59 45 21 95 Suppliers responsible for 2 Total (%) 100 100 100 100 Source: Own survey Appendix M&P shop’s payment to suppliers Wholesale market Payment method Wholesaler Late payment 14 14 Rolling payment 15 Immediate payment/cash 79 71 Total (%) 100 100 Monopoly supplier 24 14 62 100 MCC 5 89 100 Source: Own survey Appendix 8: M&P shop’s consideration on delivery and payment Wholesale Monopoly market Program Wholesalers supplier Delivery - Free home delivery 2.9 2.1 3.1 - Quick and on time 2.9 2.8 2.5 Payment - Late payment 2.2 2.1 2.3 - Rolling payment 2.3 2.4 2.1 MCC 3.4 3.6 4.1 4.2 Source: Own survey Note: Mean value derived by a five point scale, = not worried at all, = not worried, = neutral, = somewhat worried, = extremely worried 35 Appendix 9: How attractive the M&P shop thinks of metro supermarket Service Clean Floors Large displays Friendly Sales Associates Regular visits by Customer Consultants Fast check-outs 100% in stock conditions Ease of parking Product Assurance of product quality Range of/diversity of categories Range of well known local brands Range of well known international brands Exceptionally hygienic fresh departments Communication Regular communication of promotions via Metro Post Regular communications of promotions via staff Price Pricing clearly marked on shelves and displays Promotion Promotion campaigns Mean value 4.3 4.2 4.0 4.1 3.9 4.3 4.1 4.5 4.4 4.3 4.2 4.4 4.1 4.1 4.3 4.4 Source: Own survey Mean value derived by a five point scale, with = Not important at all, = Not important, = Neither important nor important, = Important, = Very important Appendix 10: M&P shop’s expectation for the future Description Overall Supply prices Achieving acceptable profit margins Grasping Customers' needs Competition from other stores like you Transporting stock Larger retailers entering the mkt (i.e mod trade, supermarkets) Not enough investment Mean value 3.8 4.1 3.9 3.5 3.6 3.2 3.6 3.8 36 Source: Own survey Mean value derived by a five point scale, with = Not worried at all, = Somewhat not worried, = Neutral, = Somewhat worried, = Extremely worried Appendix 11: Elements ranked by the M&P for the next few years Description Ranking Product quality Competitive price Late payment/Debt Free home delivery Post service (services after sale) Improving ambience of shop (shop décor, etc…) Source: Own survey ... Currently, MCC has a sales force of over 100 staffs to canvass businesses and to maintain customer relationships across Vietnam MCC is a leading model of wholesale business in Vietnam Year by year, then,... What M&P shop thinks of 10 Chapter 3: Market and Performance of Metro Cash & Carry Vietnam 3.1 Introduction MCC Vietnam is a subsidiary of Metro Cash & Carry Group with more than 670 stores in. .. literature during the past decade In order to keep a strong position in the market place, the service quality has played an important role for retailing and wholesale companies In an attempt to analyze