MIS assignment about Prudential VietNam

INTRODUCTION Prudential creates a PVA’s e-Gift shop in order to serve Prudential’s agents and internal departments.With years of providing e-gift solution for B2B and B2C businesses and corporation, we are here to help you on having a leading e-gift platform that matter This proposal includes price, production, order fulfillment, gift return, quality control, reporting, monitoring process and delivery cost structure for Prudential To improve these things, Prudential will achieve several goals: ➢ Improve brand image by having a variety of quality and on-trend products with Prudential branding ➢ Increase users (agents and internal divisions)’ satisfaction through an easy to use front-end system, simplified process, quality and reasonably-priced products ➢ Reduce the workload for the Customer Care team Our proposal consists of parts to help Prudential on having a good leading e-gift platform: ● A new product list that are suitable for insurance industry and the target customer ● Price setting process ● Production process ● Order fulfillment process and turnaround time ● Delivery cost structure and time ● Gift return/ refund process ● Complaint handling process ● Quality control process ● Reporting and monitoring process for Prudential I PRODUCTS LIST Products list that are appropriate for insurance industry and specially for Prudential ‘s target customer ● Bag ● T - shirt ● Umbrella ● Raincoat ● Shoe ● Stationery ● Cap ● Clothes ● Accessories ● Water bottle, drinkware ● Home and decor ● Toys ● Health care machine Gifts should be attached with Prudential’s logo so that the company’s brand will promote indirectly.On the other hand, with each product the company should create variety models in order to provide customer more choices such as color, motifs The gifts are also based on customer segment and other factors: Financial dependent (Age 60) Clothes, shoes, health care machine, blankets, hats Home and decor Drape, blanket, bed, clock,wall art, curtain, pillow, wardrobe, bed and bath, flower vase Stationery Gift card, notebook, pen, calendar, postcard, Drinkware Water bottle, glasses, cup, mugs, Occasion Halloween, gift center, birthday, wedding, anniversary, thanksgiving, christmas, new baby gift, graduation II PRICE SETTING PROCESS When setting the price of a new product, the company must consider the competition’s prices, estimated consumer demand, costs, and expenses, as well as the firm’s pricing objectives and strategies Here are the steps on how to set price products: Step 1: Selecting the price objective The company first decides where it wants to position its market offering The clearer a firm’s objectives, the easier it is to set price Five major objectives are: ● Survival ● Maximum current profit ● Maximum market share ● Maximum market skimming ● Product-quality leadership About Prudential, their objective is focusing on product quality so they can decided the material, the design of product or control quality Step 2: Determining demand Each price will lead to a different level of demand and have a different impact on a company’s marketing objectives The normally inverse relationship between price and demand is captured in a demand curve The higher the price, the lower the demand.Knowing the objective, Prudential should determine the demand for each price They can use some methods to measure the demand such as: surveys, statistic analysis, price experiments Step 3: Estimating costs For determination the price of product, the cost of product should be estimated Variable and fixed cost The vendor has to estimate the cost at different production levels And the price must cover variable & fixed costs and as production increases costs may decrease Differential Cost in Differential Market The vendor must also analyze activity-based cost accounting (ABC) instead of standard cost accounting ABC takes into account the costs of serving different retailers as the needs of differ from retailer to retailer Target Costing The vendor can estimate a new product’s desired functions & determines the price that it could be sold at From this price, they know how much they can spend on production whether it be engineering, design, or sales but the costs now have a target range Then Prudential will be the final approver to decide whether the price is suitable or not Step 4: Analyzing competitor’s price In this step, Prudential should benchmark its price against competitors such as: AIA Group, MetLife, Manulife Financial, …learn about the quality of competitors offering, & learn about competitor’s costs If the company’s product or service is similar to a major competitor’s product or service, then they will have to price close to the competitor or lose sales Otherwise, Prudential will not be able to charge as much as the competitor Step 5: Selecting pricing method Various pricing methods are available to give various alternatives for pricing: ● Markup Pricing: a 20% markup ● Target Return Pricing: help in achieving the required rate of return on investment done for a product ● Perceived-Value Pricing: the valuation of good or service according to how much consumers are willing to pay for it ● Value Pricing: charge low prices for their high-quality products by improving its research and development process ● Going Rate Pricing: set the price of a product according to the prevailing price trends in the market Step 6: Selecting the final price Having arrived at a preliminary price point through the analytics in five steps above, the final step is to communicate new prices to the market Pricing methods narrow the range from which the company must select its final price In selecting that price, Prudential must consider additional factors ● Impact of other marketing activities ● Company pricing policies ● Gain-and-risk-sharing pricing ● Impact of price on other parties III PRODUCTION PROCESS The order: Prudential will make a list of products to be ordered then send them to the vendor The plan production: Set the price, plan of production, choose material Approve: CEO of vendor approve the plan and production schedule Material requirement: Sending requests to the Warehouse keepers to ensure material for production Input materials: Warehouse keepers input material to produce Checking materials: Check input materials and raw materials which not guarantee the quality of processing Handle unsuitable material: Workers fix or remove unsuitable materials Designing: Design shapes, colors, sizes, materials of products Send the sample product to Prudential for checking Producing: Produce products according to standard procedures 10 Checking the output: Checking the quality of outputs 11 Warehousing: Warehouse keepers warehouse standard products 12 Deliver: Shippers deliver products to Prudential IV ORDER FULFILLMENT PROCESS AND TURNAROUND TIME For Prudential Vietnam e-gift shop, this following flowchart are suitable to manage orders for agents quickly and effectively Receive and check the order The first step of this process is receiving and checking the orders (that vendor has to handle the orders from customers) Customers create accounts or login on Prudential Vietnam’s egiftshop platform and order gifts via it following guidance These orders will be sent to check information which they are valid or not If they are not valid, they will be cancelled and vendor notifies to customers to again Meeting requirements of valid orders, they are accepted and go into next step This process takes only a few seconds, which is convenient for customers and shortens the time of each orders Checking stock In this step, vendor has to check products’ quantity in stock to meet the numbers of products customers order Depending on the number of orders, it takes from 30 minutes to one hour to check If products are available, the orders will be checked delivery information However, in case of insufficient number of quantity, vendor will inform to production department to produce products as required This orders can take longer time because of waiting for producing and warehousing (maybe from one day to two days) Delivery information and shipping After checking stock, vendor handles information to delivery and sends confirmation e-mails to customers including all information filled out by customers, status of orders and delivery time Similar to first steps, customers have to wait very few time The orders will be prepared to ship unless customers have any changes.In shipping step, the orders are shipped to customers Time depends on types of delivery and position chosen by customers before, approximately from 24 hours to one week.Customers receive orders successfully finishes the process In case of unsuccessful shipment (customers not receive orders), orders will be turned back to vendor They have responsibility to check order information to customers and deliver again Because of this miss, the time can increase more one day than before The order fulfillment process ends only when orders are sent to customers’ hand If the process does not emerge any problems (insufficient quantity, failed shipment, invalid orders), it will take total from 24 hours to days depending on chosen types of delivery The process of fulfillment orders from agents has some differences from ones of internal departments and GADs After shipping step, vendor will send monthly report, invoice to Prudential and receive payment, which is not similar to payments of agents’ orders The remain steps are the same in two processes V DELIVERY COST AND TIME There are three types of deliveries about different cost and time for customers to choose Each delivery types has their own benefits and drawbacks - Fast delivery inside Hanoi - Fast delivery to other provinces - Standard delivery The delivery time does not include other steps of order fulfillment process It is calculated from order confirmation to taking orders to customers’ hand Fast delivery inside Hanoi Areas Cost Time Center 20.000 VND < 12 hours Suburb 30.000 VND < 24 hours Fast delivery to other provinces Areas Cost Time Center District Area 60.000 VND 70.000 VND 24 hours Area 70.000 VND 80.000 VND - days Area 80.000 VND 90.000 VND - days ● Area 1: Bac Can, Bac Giang, Bac Ninh, Cao Bang, Dien Bien, Ha Giang, Ha Nam, Ha Tinh, Hai Duong, Hung Yen, Hai Phong, Hoa Binh, Lao Cai, Lang Son, Lai Chau, Nam Dinh, Nghe An, Ninh Binh, Phu Tho, Quang Ninh, Quang Binh, Son La, Thai Binh, Thai Nguyen, Thanh Hoa, Tuyen Quang, Vinh Phuc, Yen Bai ● Area 2: Binh Dinh, Dac Lac, Dac Nong, Gia Lai, Hue, Kon Tum, Phu Yen, Quang Nam, Quang Ngai, Quang Tri, Da Nang ● Area 3: An Giang, Binh Duong, Binh Phuoc, Ba Ria - Vung Tau, Bac Lieu, Ben Tre, Binh Thuan, Ca Mau, Can Tho, Dong Nai, Dong Thap, Hau Giang, Kien Giang, Khanh Hoa, Long An, Lam Dong, Ninh Thuan, Soc Trang, Tay Ninh, Tien Giang, Tra Vinh, Vinh Long,Ho Chi Minh Standard delivery Areas Cost Time Center District Area 20.000 VND 30.000 VND - days Area 30.000 VND 40.000 VND - days Area 40.000 VND 50.000 VND - days VI GIFT RETURN/ REFUND PROCESS Return process Customers can return any item purchased on Prudential’s Web within 30 days of the delivery date The vendor allows Prudential’s members to have some benefits which are actually convenient Just by following simple steps, customers can return their E-gift: ● Login to customer’s account ● Find and click on the order items that they would like to return ● Provide some reasons why customers are returning the Items ● Receive email notification associated with their account that return request has been received ● Receive email notification when return request has been processed Once customer’s package reaches the warehouse, it takes to business days (depending on peak times) for return to be processed If that return does not meet the conditions listed, the package will be sent back to them.Specially, the customers need to make sure the gift returned is in its original condition, tags and packaging included, otherwise suppliers will be unable to accept return and issue a refund Exchange process If customers wish to change the size and/or color of an item that they purchased, they can so at no additional cost within 30 days of delivery date.They should the following steps: ● Login to customer’s account ● Fill out the return form, choose the “Exchange” option ● Select a replacement size and/or color from those available ● Receive email notification that exchange request has accepted Prudential’s Care Team will then hold the item for them and as soon as receiving the return, they will ship it to the address from that original order Immediately, clients will receive a Shipping Confirmation email when the package has been dispatched They can exchange the size and/or color of an item one time only, but they can always return it by following the instructions in Pru’s Return Policy Gift refund process The time needed to process refund may vary based on the payment method used They can choose one of the following methods: ● Credit Card: Bank will reimburse customer within business days of the Return Acceptance Confirmation email The time it takes to restore the credit back to their account depends on the Credit Card Issuer ● Electronic wallet: Customer can receive refund within days from the return acceptance confirmation email Money in e-wallet can be used for next purchase but cannot be withdrawn VII COMPLAINT HANDLING PROCESS Customer can put complaint , feedback in online redressal, feedback page or through the company’s hotline in case of any issue to receive support from Prudential’s customer care team All clients need to is to enter their folio number, mobile number, email ID and the complaint itself in respective columns Click on submit and an official will get in touch with customers in 24 hours All complaints are processed based on the unification and signed contract between both of two side: Vendor and Prudential Responsibilities of Prudential ● PRUVIP + members are given priority when presented at the counter at the Customer Service Center It saves approximately 30 percent time for handling complaints ● Prudential is not a provider of products or services used as a reward for the program ● Prudential will only deal with complaints regarding the promotion within 60 days of the end of the program ● Prudential does not have responsibility to solve inquiries or complaints which relate to the quality of E-gift and these services Responsibilities of the Vendors ● After receiving the products, the customer will directly contact the supplier of the product or service with any questions or complaints related to the quality of the product or service ● The vendor has responsibility to solve inquiries or complaints which relate to the quality of E-gift and these services ● The vendor has to guarantee that these client’s complaints are handled on time according to the contract VIII QUALITY CONTROL PROCESS The quality control process is divided into three separate processes, which are IQC (incoming quality control), IPQC (in-process quality control) and OQC (outgoing quality control) IQC - Incoming Quality Control Incoming quality control is the process of inspecting the raw and component materials from suppliers upon arrival When you found the defective parts, you need to negotiate with the supplier for return or exchange, and the ultimate purpose is to make sure your product quality will not be affected Below is a sample flowchart of the IQC process IPQC - In-process Quality Control IPQC refers to quality control during the assembly process It is crucial because you can detect and handle the problem that occurs ahead of time 10 OQC - Outgoing Quality Control OQA is the inspection of products before shipping It's a crucial step in ensuring the shipment is defect-free 11 IX a b c REPORTING AND MONITORING PROCESS Reporting Customer acquisition report The Customer Acquisition report offers a simple but crucial perspective for any online business This report will show Prudential's clients how their customers are landing on-site and what gifts are contributing the most revenue to their business Ecommerce data for each acquisition channel is broken down to total revenue,average order value, and conversion rate That way, Prudential Co can identify what specific gifts they should increase (or decrease) their marketing efforts on Email assessment report If Prudential's client plans to use email marketing to drive return traffic to their store, the Email Assessment report will help them understand the role their campaigns play in sales By understanding which campaigns lead to the greatest amount of transactions or revenue, their client has additional data — aside from open and click-through rates — to optimize their email marketing efforts Time of day / day of week transaction report The Time of Day / Day of Week Transaction report offers Prudential's clients a detailed view of their past week of sales The report helps identify which hours of 12 the day, days of the week, and combination of both lead to their highest levels of sales What’s great about this report is that it will allow their client to isolate particular days or hours that are performing poorly in terms of revenue This information presents an opportunity for them to run special marketing promotions during these periods to increase traffic, as well as sales Monitoring What Prudential need to monitor: Level in Objective Hierarchy What to Monitor and Evaluate Activities Have planned activities been completed on time and within budget? What unplanned activities have been completed Outputs What direct tangible gifts have the project delivered as a result of activities Outcomes What changes have occurred as a result of the outputs and to what extent are these likely to contribute towards the project propose and desired impact Impacts To what extant has the project contributed towards its longer terms goals? Why or why not? What unanticipated positive or negative consequences did the project have? Why did they arise ? 13 ... standard products 12 Deliver: Shippers deliver products to Prudential IV ORDER FULFILLMENT PROCESS AND TURNAROUND TIME For Prudential Vietnam e-gift shop, this following flowchart are suitable... now have a target range Then Prudential will be the final approver to decide whether the price is suitable or not Step 4: Analyzing competitor’s price In this step, Prudential should benchmark... against competitors such as: AIA Group, MetLife, Manulife Financial, …learn about the quality of competitors offering, & learn about competitor’s costs If the company’s product or service is similar