Since Hapro completed the equitization process, the analysis of the strategic market situation of Hapro in general and of the Hapromart chain in particular has changed in a more positive direction, when this chain has been more interest in the collection of business market data. However, the results of surveys and interviews with experts show that almost stores in chain do not have systematic research documents about the market situation, economic, social competition or customer variables. Mainly the information that the supermarket chain is getting is from the analysis of the general business environment of Hapro Trade Corporation.
This has resulted in Hapromart not being able to establish a target customer group, or further a strategic market. Hapromart still chooses to serve the mass market with the traditional way of providing products and services to customers.
Figure 1. Assessing the responsiveness of Hapromart chain's strategic market analysis
Source: Survey results
2.34 2.46 2.03
2.98 2.75
0 0.5 1 1.5 2 2.5 3 3.5
Practice strategic market analysis, strategic environment analysis
Conduct market research methodically, update information about customers and competitors in
strategic markets
Conduct segmentation and strategic market selection to ensure objectives and requirements The business environment data and information
collected is up-to-date and timely Fully identify environmental variables affecting
business operations
4.2. Status of strategic market planning
In general, the contents of strategic market planning are done quite well by Hapromart chain. This is shown by the survey results (Figure 2).
Figure 2. Assessing the responsiveness of Hapromart chain's strategic market planning
Source: Survey results Regarding the goal setting of the strategic market, interviews with managers at Hapromart showed that the business goals are built based on the long-term development orientation of the supermarket chain and of Hapro Trade Corporate. The process of proposing, selecting and evaluating targets is carefully carried out, ensuring the requirements of feasibility and challenges in the market.
Hapromart's development focus is on building a supermarket chain with strong competitiveness and sustainable development in the market. Accordingly, the long-term goals developed by Hapro are customer- and market-oriented, following three important points: (1) reducing supply costs through close connection with suppliers (2) building a distribution system that is convenient in supplying to the market, (3) reasonably diversifying new product models to add value to the product. However, the construction of objectives based on a one- way process of imposition has led many managers to lack of consideration and discussion of assumptions in the strategic market, therefore they couldn’t distinct customer values for each strategic market, as well as a lack of adaptation to market situations.
Regarding planning of market strategy and competitive strategy in the strategic market, the level of closeness and regulation in this activity is not really high and common in the Hapromart chain. The planning process usually stops at annual or short-term planning in the strategic market (2 years) and there is almost no direction and text of the market strategy.
The contents of Hapromart's strategic market planning are mostly drawn from the general plan and strategy documents, leading to low effectiveness of planning activities, affecting Hapromart's market position. This limitation also makes the process of providing customer
4.22 2.18
2.83 3.01
3.54
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Partnerships are maintained and developed sustainably in strategic markets Proposing appropriate, differentiated supply
value for strategic markets Market strategy and competitive strategy aligned
with strategic market objectives Have managers and/or departments for strategic
market planning
Develop clear and appropriate long-term orientations and goals for strategic markets
value to Hapromart's strategic market not highly appreciated by both businesses and consumers. Although, interviews show that most of Hapromart's managers make decisions based on customer needs and competitive pressures of the market. However, the value propositions offered to customers today are still simple, have no difference, and make a prominent impression on customers compared to other supermarket chains in the market. If Vinmart is "convenient", Circle-K is "24/24", K-mart is "Korean", the "specialty" of Hapromart is not really shaped. This is reflected in the relatively low evaluation score for this criterion, only 2.18.
In strategic planning for partnership development, Hapromart chain has been closely following in cooperation and keeping relationships closer. In recent years, Hapromart has made comments, analyzes and assessments to better understand the strengths, limitations as well as the needs and desires of suppliers, thereby planning appropriate methods of relationship management. This is clearly shown in the survey results, when the average rating of partnership development in the market reached a high level of 4.22. Currently, administrators have basically developed and implemented policies to evaluate suppliers regularly to ensure the stability, variety, and reasonable prices of products. According to Hapromart's reports, the company's current sources of goods all meet the delivery requirements in terms of quality, quantity, and time at a reasonable price.
4.3. Situation of business plan implementation in strategic market
Figure 3. Assessing the responsiveness of business plan implementation in strategic market at Hapromart chain
Source: Survey results
2.76
4.02 3.78 3.13
3.46 3.32
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
The R&D plan is evaluated effectively, appropriately, and ensures the ability to innovate and compete in the
strategic market
Reliable supply of goods with reasonable cost and quality policy, efficient storage
Planning financial budgets for the execution of business plans in the strategic market in accordance
with strict and effective processes and systems Executing human resources are recruited, trained and
trained, rotated in accordance with the business objectives of the strategic market
Marketing plan is designed and adjusted flexibly with the value provided and service quality for customers The short-term goals in the strategic market are specific, feasible and consistent with the long-term
orientation and goals
With the contents of strategic market planning, Hapromart has concretized into actionable contents in the market. First of all, in terms of setting short-term goals, this content is quite careful, with a focus on defining specific tasks for each short-term period in connection with the long-term overall. The breakdown of tasks helped bring more realism to the short-term goals implemented. Therefore, generally, the setting of short-term goals in the strategic market is assigned to each Hapromart store in the chain, thereby allowing the stores to develop their own achievable goals in business year, which be detailed and suitable to specific business conditions, with a focus on profit targets.
Regarding the implementation of the marketing plan to meet the strategic market, Hapro chain is having a marketing plan that is designed and flexibly adjusted with the supply value and service quality for customers in the market. The Hapromart supermarket chain always ensures a rich product portfolio, covering all kinds of goods and needs of customers.
In food field, there are the raw agricultural products (rice, pepper, cashews, cinnamon), processed foods (spring rolls, rolls, dried fruits), beverages.... In consumer goods, there are handicrafts, garments, etc. With the orientation of competition by price, Hapromart always tries to offer the best price to customers in the market. Pricing practices are adjusted based on the value provided and the quality of service to customers. Hapromart implements a synchronous price policy for items in the Hapromart chain of stores. This creates peace of mind and trust in customers when they always receive the same price for the same quality of products and services at any Hapromart supply point. The supermarket system also regularly has promotional events with many great incentives for consumers on special occasions of the year such as Tet and major holidays (such as Reunification Day April 30, Ancestral Anniversary March 10, National Day September 2, International Women's Day March 8, Noel, Valentine's Day February 14, etc.) to stimulate the market's consumption demand.
Long-term promotions with many forms such as 2% discount on invoices valued at over 250,000 VND or 3% discount on invoices valued at over 500,000 VND. At the supermarket system, Hapro has designed areas for items with the selling price of 10,000 VND, 20,000 VND (discounted goods), buy one get one free, and promotional items. This not only helps to improve the sales of supermarkets and convenience stores, but also increases the number of loyal customers.
Regarding the implementation of the human resource plan to meet the strategic market, Hapromart has always focused on personnel with a serious, focused and professional level. Human resources for the implementation of strategic market content are recruited, trained and trained, and rotated in accordance with the business objectives of the strategic market. Practical research shows that most people agree with the responsibilities assigned to work operations, and the level of commitment to fulfilling those responsibilities is quite high.
Hapromart's current human resource plan has created a close connection in work between different groups of employees in the enterprise, ensuring the reality of personnel and capacity of each member.
The contents of the financial plan have established more appropriate criteria and orientation, allowing better support and linkage of the activities of Hapromart stores in strategic markets. Management has conducted a clearer, more systematic and careful analysis of financial indicators to identify financial strengths and weaknesses of Hapromart, thereby forming judgments about the important financial plan contents. This helps Hapromart to secure financial resources for strategic market activities towards completing and exceeding set targets. The survey results also show that the majority of managers have a positive opinion about the planned financial budget (rated score of 3.78).
Regarding the source of goods, in the list of products being traded today, nearly half are products supplied by member enterprises of Hapro Trade Corporation, so quality, price and support services is always guaranteed at the most reasonable and competitive level. Along with that, Hapromart has also built closer links with external suppliers, allowing reliable sources of raw materials and finished products for the production process at reasonable costs.
The survey results showed that most of the managers assessed that the procurement and assurance of raw materials and finished products was effective, making a great contribution to the competitiveness in the market (average score of the survey reached 4.02).
Regarding the implementation of the R&D plan to meet the strategic market, Hapromart's managers are quite conservative about R&D activities. Although Hapro has a Research and Development Center, in reality this department does not have much support or contribution to the business activities of Hapromart supermarkets. Investigations at enterprises show that R&D activities only stop at developing packaging, designs, products or improving quality, but there have not been many breakthroughs in the market.
4.4. Status of strategic market assessment and adjustment
To ensure business operation, Hapromart regularly conducts evaluation activities with fairly strict implementation contents. The results of interviews with Hapromart's managers show that at present, strategic market assessment is carried out annually, and the market research department will undertake this activity. Based on basic indicators such as sales, profits from strategic markets, market share of the business compared to competitors, the rate of increase in the number of customers and the average increase in sales per year. For each customer, the managers will build evaluation, reconciliation and comparison reports every 6 months, to ensure financial transparency as well as consider problems arising in the implementation process. strategic market objectives. The survey results also clearly reflect this situation at Hapromart, when most of them believe that the objectives and strategic market orientations are periodically evaluated carefully with specific criteria, with an average score is 3.74.
Figure 4. Status of strategic market assessment of Hapromart
Source: Survey results From strategic market assessments, Hapromart's managers will make a number of adjustments at both division and entire Hapromart chain, with operational changes, and specific measures for each area in each stage of strategic market management. The strategic market targets are adjusted more reasonably, with low feasibility, or not guaranteed growth rate in the strategic market, will be changed with appropriate and relevant parameters.
5. Directions to improve strategic market management of Hapromart chain
According to many experts, the retail market and consumption trends of Vietnamese people from 2021 are changing the way retail businesses do business. Enterprises are innovating comprehensively such as cutting intermediaries, taking the initiative in all stages of research, market development, design, production (private label), marketing and distribution of goods. This model optimizes the cost and all the perks of direct access, including the opportunity to personalize your brand and engage with your customers. This change brings convenience not only to consumers, but also to producers and sellers who can control the goods from start to finish.
From 2021, online communication and advertising will grow at a much higher rate as a survey shows that 72% of consumers make purchasing decisions based on consultations from social networking sites (Facebook, Instagram or Tiktok). In addition, there is a tendency of buyers to demand delivery as quickly as possible, with 88% of consumers willing to pay an extra fee for express delivery. This has now been well done by retail businesses (such as Co.op Mart, Vinmart, etc.), especially in the field of fast-moving consumer goods (food, chemicals, cosmetics...). Along with that, the application of technology to retail is becoming popular and this trend is expected to explode from 2021, creating conditions for businesses to
3.45
3.67 3.38
3.74
3.2 3.3 3.4 3.5 3.6 3.7 3.8
The strategic market contents are adjusted periodically, in line with changes in the strategic
market
Strategic market assessment is an important activity in the strategic market management process Managers regularly evaluate the market strategy and
competitive strategy of the company The company's strategic market orientations and objectives are periodically evaluated with specific
criteria
have a breakthrough from diverse service standards, efficient and fast. Retailers also forecast that artificial intelligence in the industry will be fully utilized.
Retailers, mostly domestic enterprises, are also working to close the consumption gap between urban and rural areas. Currently, Vietnamese businesses have been able to simultaneously develop large shopping centers (Co.op Extra, Vinmart...) along with convenience stores. Therefore, from 2021 onwards, when the urban retail market is saturated, modern shopping will reach the rural market with more than 70% of the population and 80%
of the country's area. This is a potential consumption market for businesses to develop distribution channels, with shopping demand increasing exponentially due to the rapid improvement in income of rural consumers.
With such forecasts about the shift of the retail market, in order to better improve strategic market management, Hapromart chain can consider a number of solutions as follows:
Firstly, in order to build a complete and systematic database, closely follow the market competition situation, and avoid depending on the results of analysis of the general business environment of Hapro Corporation, Hapromart needs to obtain own a department dedicated to strategic market research. This group of staff needs to be trained and effectively apply scientific and modern strategic market analysis tools such as external factor evaluation (EFE) matrix and internal factors evaluation (IFE) matrix, SPACE, BCG, GS, TOWS. The implementation of this solution will allow Hapro chain managers to fully and accurately identify and evaluate developments and changes in the development trend of the competitive market and the environment, thereby obtaining a large amount of necessary data for planning and adjustment strategic market. A good strategic market situation analysis will help chain managers clearly identify the target customer group, thereby selecting strategic market segments. In the opinion of the authors, Hapromart should focus on the group of customers who are consumers in the age group of 40-60, with stable incomes and many characteristics of Hanoi's consumer culture, tending to favor the Hanoi brand.
Second, the supermarket chain needs to be based on the overall development strategy and goals of BRG Group, and Hapro Trade Corporation to get a long-term view, thereby establishing a system of long-term business goals. In the process of determining long-term goals, it is necessary for managers to take into account existing resources and advantages, as well as consult experts from higher-level managers, as well as collect solicit input from lower-level managers and business professionals of the chain.
Third, with the forecast that consumer goods and food groups will maintain high growth rates, Hapromart’s managers should plan a market development strategy and expand the business system through the form of M&A. The market development strategy should be based on customer orientation on the basis of determining the size and growth potential of the market. Based on data from demand analysis and customer decision-making, Hapromart should develop an optimal retail product plan according to product group classifications that
identify both alternatives that Hapromart expects to be attractive and excel in the strategic market. This strategic planning allows Hapromart to connect back to the defined function of the category and includes a high level of practicability to arrange product classification, merchandising display, price and promotion for goods, optimizing all retail activities in Hapromart's store chain. This will be a huge competitive advantage for Hapro in the market, besides the existing advantage of conveniant location, easy access to customers.
Fourth, Hapromart must choose and supply the values that match the wishes of customers in the market. This requires Hapromart to clearly identify the needs, motives, habits and buying behavior of customers. Accordingly, Hapromart needs to build a clear step- by-step plan, through each stage, what changes, upgrades, and renewals the customer value will need in the strategic market. Strategic market managers need to be able to answer questions such as “what defines customer value in different segments”, “how is customer value measured”, “how information technology is used to increase customer value”, “how current trends in customer value impact supply positioning”. Having these answers means that Hapromart has selected differentiated values for the strategic market segment, and devised an appropriate positioning strategy with its marketing efforts.
Fifth, Hapromart also needs to differentiate its product portfolio and arrange goods at each store in the retail chain. The goal of the store system is to maximize sales and profitability, by adjusting the technique of building product catalogs to suit the needs of local customers, the system of stores and the determination of specific requirements at each store in the system. To create a highlight in the market, Hapromart needs to pay attention to developing more private brands. This makes it possible for Hapro to deal with suppliers and have a good profit margin, when developing private labels that will provide customers with added value through the labeled product, while also creating more competitive advantages and profit margins for retailers thanks to an extensive product portfolio, good prices.
Sixth, continue to upgrade and standardize the entire supermarket chain system and create a close connection between the selling points in the BRGMart system in the direction of differentiating the retail market coverage, penetration and development. Hapromart should have a clear orientation in expanding and further developing its network of Hapromart supermarket chains at convenient locations and locations in developed cities and areas to facilitate easy access for people in shopping. At the same time, Hapromart needs to further develop online sales on the e-commerce platform, based on the BRGShopping application.
Seventh, Hapromart needs to implement an appropriate R&D plan and ensure its ability to innovate and compete in the strategic market. This requires managers to make decisions to develop the focus for this activity at the company. The company should consider adding more budget for R&D activities, as well as develop a clear strategy in R&D implementation. Hapromart can rely on the results obtained from R&D activities for export activities to obtain a diverse and high-quality source of goods for the domestic market. An important point for the R&D department is that they need to focus on studying the needs of