Limited display of root vegetable organic product in co opmart cong quynh

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE THI MY CHAU LIMITED DISPLAY OF ROOT VEGETABLE ORGANIC PRODUCT IN CO.OPMART CONG QUYNH MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2021 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE THI MY CHAU LIMITED DISPLAY OF ROOT VEGETABLE ORGANIC PRODUCT IN CO.OPMART CONG QUYNH MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Assoc Prof NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2021 TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES ACKNOWLEDGEMENTS EXECUTIVE SUMMARY INTRODUCTION 1.1 Introduction about Ho Chi Minh City of trading Cooperatives (Saigon Co.op)1 1.1.1 Saigon Co.op history and development 1.1.2 Saigon Co.op vision, mission, core value 1.1.3 Organization chart 1.2 Introduction about Co.opmart supermarket chain 1.2.1 Co.opmart background 1.2.2 Co.opmart’s vision, mission, core values 1.3 Co.opmart Cong Quynh, Agricultural Project Team and Co.op Organic product 1.3.1 Co.opmart Cong Quynh 1.3.2 Agricultural Project Team 1.3.3 Co.op Organic product and root vegetable category 1.4 Competitor’s analysis 11 SYMPTOMS 12 PROBLEM 15 3.1 Potential problems 16 3.1.1 Potential problem 1: Limited display root vegetable 19 3.1.2 Potential problem 2: High price root vegetable 22 3.1.3 Potential problem 3: Poor root vegetable product identification 24 3.2 Problem validation 27 3.2.1 Problem validation: Limited display root vegetable 28 3.2.2 Problem validation 2: High price root vegetable 29 3.2.3 Problem validation 3: Poor root vegetable product identification 31 3.3 Main problem 33 CAUSE VALIDATION 33 4.1 Potential causes 33 4.1.1 Potential causes 1: Root vegetable is displayed in hidden corner 35 4.1.2 Potential causes 2: Root vegetable organic is displayed small area 36 4.1.3 Potential causes 3: Components of Visual Merchandising are not attractive 37 4.2 Cause validation 38 4.2.1 Cause validation 1: Root vegetable is displayed in hidden corner 38 4.2.2 Cause validation 2: Root vegetable organic is displayed small area 42 4.2.3 Cause validation 3: Components of Visual Merchandising are not attractive 43 4.3 Root cause 45 ALTERNATIVE SOLUTION 47 5.1 Alternative Solution 1: Adjust layout root vegetable category 47 5.2 Alternative Solution 2: Display combination root vegetable category 48 5.2.1 Signage and educational materials 48 5.2.2 Product sampling 50 5.3 Justification of alternative solutions 51 ACTION PLAN 52 SURPPORTING INFORMATION 53 7.1 Secondary data 53 7.1.1 Organic market trend 53 7.1.2 Potential driving forces for Vietnam 54 7.1.3 Major barriers for developing Vietnam organic market 54 7.2 Primary data 54 APENDIX A: Transcript of questionnaire 57 APPENDIX 2: Glossary 66 10 APPENDIX 3: Booming specialist organic stores in urban key cities 68 11 REFERENCES 69 LIST OF FIGURES Figure 1: Saigon Co.op’s history and development Figure 2: Saigon Co.op's business model and point-of-sale network Figure 3: Saigon Co.op’s organization chart Figure 4: Co.opmart Cong Quynh’s organization structure Figure 5: The structure of Agricultural Project Team 2020 Figure 6: Saigon Co.op Private label hierarchy with sub-brand and Co.op Organic Figure 7: Portfolio of Co.op Organic by sub-category 10 Figure 8: Appraisal of the strategic management practices Co.opmart competitors 11 Figure 9: The revenue Co.op Organic of Co.opmart Cong Quynh 2017-2020 ($VND) 12 Figure 10: The revenue Root vegetable of Co.opmart Cong Quynh 2017-2020 ($VND) 13 Figure 11: Average bill value when customer buy root vegetable Co.op Organic ($VND) 13 Figure 12: What are top things you concern currently? 14 Figure 13: Global organic sales 2000-2025 ($bn) 17 Figure 14: Revenue from 2017 to 2020 of Co.op Organic ($mil) 17 Figure 15: Revenue from 2017 to 2020 of Co.op Organic divide by category ($mil) 18 Figure 16: Display root vegetable product in Co.opmart Cong Quynh 20 Figure 17: Organic Food displayed in Co.opmart 22 Figure 18: Revenue fresh food of Co.op Organic period 2017 - 2020 ($mil) 22 Figure 19: Customer perception about food certification 25 Figure 20: The Maslow’s pyramid demand 26 Figure 21: Preliminary cause and effect tree 27 Figure 22: Lifestyle of today’s Vietnamese consumers about healthy life 30 Figure 23: Stages in the Buying process 34 Figure 24: Updated Map 35 Figure 25: Four different category roles in retail store 38 Figure 26: Classify customers buying Co.op Organic products by age 39 Figure 27: Layout Co.opmart Cong Quynh April 2021 41 Figure 28: Using selling tool to display root vegetable with other fruits 43 Figure 29: Point of sales material are not attractive 44 Figure 30: Bill value of customer buy Co.op Organic 45 Figure 31: The number of Co.op Organic product/ Bill value 45 Figure 32: Example display root vegetable 50 LIST OF TABLES Table 1: The number of SKUs Co.op Organic Table 2: Investment by types of ownership 2013-Prel.2019 (At current prices Bill VND) 15 Table 3: Classify food according to the language of the consumer 21 Table 4: Compare with normal product and organic product 31 Table 5: Basket structure of Customer in 2020 46 Table 6: Combined others solution 51 Table 7: Implementation plan for alternative solution 52 Table 8: Qualitative Phase – Initial Realization 55 Table 9: Qualitative Phase – Problems Identification 56 Table 10: Qualitative Phase – Causes analysis 56 Table 11: Qualitative Phase – Solution proposes 57 ACKNOWLEDGEMENTS The International School of Business (ISB) was founded as part of University of Economics Ho Chi Minh City (UEH) to provide a world-class, modern, and dynamic educational environment Participating in the MBA course in ISB was the time when I had the opportunity to approach a professional education with learning methods and a close-tothe-point perspective of business operations This is a valuable time to help me apply the knowledge and skills which I have learned from the university, work experience applied to situations, hypothesize, and more discuss with teachers I had the opportunity to learn a lot of knowledge, improve communication skills, teamwork, critical thinking, and most especially problem solving First, I would like to express my most sincere thanks to lecturers of the ISB, who have wholeheartedly imparted a lot of useful knowledge and lessons to me throughout the year learning process at school And it is also impossible not to express my sincere thanks to Assoc Prof Nguyen Thi Mai Trang, she took the time to guide and help me a lot in the process of completing this project I would like to wish her family and her colleagues good health as well as much success in your teaching and your future career During the period of doing this project, I received a lot of concern and guidance from my colleagues at Saigon Co.op, Co.opmart Cong Quynh I would like to send a heartfelt thank you to them for helping me access knowledge, processes as well as related documents and data about retail industry, Co.op Organic products, root vegetable in specific and related information I would also like to thank my family and friends who have always supported, encouraged me during completion of the project Besides, due to certain limitations in knowledge and not much actual contact time, the final project cannot avoid errors Therefore, I look forward to receiving your comments and suggestions to make this project more complete Once again, I am much obliged to lectures, colleagues working at Saigon Co.op, my family and friends for enthusiastic supporting EXECUTIVE SUMMARY This project “Limited display of root Vegetable Organic product in Co.opmart Cong Quynh” is the in-depth research into the root vegetable Organic of Co.opmart Cong Quynh In terms of space: due to time constraints, the topic is limited in the scope of display activities of Co.opmart supermarkets in Ho Chi Minh City emphasize Co.opmart Cong Quynh with root vegetable case In terms of time: the topic is conducted in the period from January to May 2021, statistics always give priority to using the latest data, updated in the end of 2020 For data that needs a comparison over the years, the oldest data from 2017 will be obtained Based on the findings previous sections and symptom of decrease revenue root vegetable is caused by three potential problems: (1) Limited display root vegetable, (2) High price root vegetable, (3) Poor root vegetable products identification Following the validation procedure, the third element was identified as the primary issue Following that, more investigation was carried out to identify three potential causes of the problem which are: (1) Root vegetable organic is displayed in hidden corner, (2) Root vegetable organic is displayed small area (3) Components of Visual Merchandising are not attractive To resolve this cause, solutions were proposed and develop a detailed implementation plan ... root Vegetable Organic product in Co. opmart Cong Quynh? ?? is the in- depth research into the root vegetable Organic of Co. opmart Cong Quynh In terms of space: due to time constraints, the topic is limited. .. OF ECONOMICS HO CHI MINH CITY International School of Business LE THI MY CHAU LIMITED DISPLAY OF ROOT VEGETABLE ORGANIC PRODUCT IN CO. OPMART CONG QUYNH MASTER OF BUSINESS ADMINISTRATION... limited in the scope of display activities of Co. opmart supermarkets in Ho Chi Minh City emphasize Co. opmart Cong Quynh with root vegetable case In terms of time: the topic is conducted in the