Marketing communication strategy for co opmart supermarket

In 1998, the retail business, namely Co.opmart supermarket chain, has been defined to become key business 1.2 Vision  Be the leading retail group in Vietnam by specializing in supermar

asd………

Ho Chi Minh City (2013)

ECONOMICS & MANAGEMENT

NGUYỄN NGỌC THẮNG - NGUYỄN LÊ THANH HÀ

MMA6

MARKETING & COMMUNICATION STRATEGY

FOR CO.OPMART SUPERMARKET

MASTER PROJECT MASTER IN MARKETING & ADVERTISING

Tutor’s name: SERGE BYWALSKI

STATEMENT OF AUTHORSHIP

We undertake that

 We have spent time and made the best effort to work with information and materials from Marketing department of SaiGon Co.op and our knownledge gained from MMA course to finish this final project

 We hold a photocopy of this final project which can be produced if the original

is lost or damaged

 This final project is our origin work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made

 We have not previously submitted this work for any other course/ unit

 We give permission for our work to be scanned for electronic checking of plagiarism

we can improve the quality of our project

Secondly, we are also thankful to Solvay - ULB, Economics and Management for always supporting us with in-depth information, prompt feedback and encouragement during the course

Besides, I would also like to express our deep gratitude to Marketing department of SaiGon Co.op company, especially Director, Vice Director who have spent time and effort to discuss about the topics and equipped us with invaluable insights and information to enrich the project’s content

Thanks to this final project, we have had chance to apply knowledge gained from MMA course into real life’s case; by which we could elevate our mindset and execution in Marketing & Communication implementation Therefore, this accomplishment is not only the perfect end for an insightful MMA course but also a brilliant start for our application into real working life We really appreciate this

“An end that starts”!

Ho Chi Minh City, March, 2013 Nguyen Ngoc Thang (Mr.) - Nguyen Le Thanh Ha (Ms.)

INDEPTH ANALYSIS OF THE CAMPAIGN

“LAUNCHING CO.OPMART’S NEW BRAND”

CHAPTER III

RECOMMENDATIONS FOR MARKETING & COMMUNICATION

STRATEGY FOR CO.OPMART BRAND

III IDENTITY-RELATED CONTENTS AND

LIST OF ABBREVIATION

SaiGon Co.op : Saigon Union of Trading Cooperatives

HCM city : Ho Chi Minh city

WTO : World Trade Organization

POSM : Point of Sales Material

LCD : Liquid Crystal Display

CSR : Corporate social responsibility

CHAPTER I OVERVIEW OF CO.OPMART AND NEW BRAND LAUNCHING

I CO.OPMART’S PORTFOLIO 1.1 Key milestones of Saigon Co.op & Co.opmart

 Saigon Union of Trading Cooperatives (Saigon Co.op) – the governing body of Co.opmart supermarket chain - was established on May 12, 1989

 In 1996, Saigon Co.op officially launched the first supermarket named Co.opmart Cong Quynh in District 1, HCM City In 1998, the retail business, namely Co.opmart supermarket chain, has been defined to become key business

1.2 Vision

 Be the leading retail group in Vietnam by specializing in supermarket business format and heading to other retailing ones based on market’s needs & wants

1.3 Mission

 Meet the target customers’ daily needs

 Strong commitment to deliver convenience, safety and additional values to customer

 Contribute to enhance the quality of Vietnamese retail industry and Vietnamese community & society as well

1.4 Business activities 1.4.1 Retail

59 Supermarket 50 Stores

125 Stores

125 Stores

50 Stores

1.4.2 Some supporting activities for retail business

 Storing and distributing goods for the whole Co.opmart and Co.op Food

 Fresh production warehouse: 6.000 m2

1.4.2.3 Manufacturing: NAM DUONG SOYA SAUCE

II OVERVIEW OF VIETNAMESE RETAIL INDUSTRY

Vietnam is a developing country with over 80 million population in which traditional market has accounted for over 80% market share in retail industry In

2010 – 2012 period, Vietnamese economy in general and retail industry in particular has been burdened by global economic crisis in which high inflation rate, shrinking purchasing power, high inventory rate have been regarded as biggest concerns towards retailers

Global economic crisis is coming back to Vietnam on top of a continuous inflation burden

2010 vs 2009 2011 vs 2010 GDP Growth YOY +6.8% +5.9%

Inflation (Average YOY) 9.2% 18.6%

(Government Report)

Under these grey circumstances, industry leaders have been adjusted their expectation and objectives accordingly Consumers are expected to reduce purchase

of non-essentials and buy more on promotions

Despite of economic challenges, the untapped Modern Trade channel shows one of the highest potential in Asia market Vietnam, especially HCM city has been still regarded as a vast opportunity for Modern trade channel development with just

717 modern trade stores in comparison with 8600 traditional wet markets

To explore this potential market, some big global retailers has penetrated to Vietnam in order to set up premises and seize future chances Besides existing international moguls like Big C, Metro, Lottemart and Vietnamese retailers such as Citimart, Marximark; etc.; Vietnam are about to welcome new wave of strong investment from other big retailers E-Mart will start building the first store in 2012 and plan to open

53 71 41

Trade up to more

premium/indulgent

products

Buy less / smaller

packs of the same

the next 5 years Dairy Farm has opened the 1st Giant supermarket and the 1stGuardian store and plan for nationwide coverage in the next 5 years

(Source: AC Nielsen Retail Census in 2011)

Besides, higher favor of consumer’s trends towards modern trade shopping places compared to wet market is also a positive shift for retail industry in Vietnam Customers nowadays shop more frequently and spend more money per visit to supermarkets

(Source: AC Nielsen Retail Census in 2011)

Burdened by turbulent economic situation, encountered with tough competition among big prestigious retailers, driven by advantageous trends toward modern trade

in retail industry and most importantly accelerated by changing customer’s purchasing behaviors, Co.opmart supermarket chain has decided it’s high time to upgrade itself , both in formality and contents, in order to overcome challenges and

to grab big opportunities ahead

III CO.OPMART TIME FOR CHANGE - LAUNCHING NEW BRAND

3.1 Why change for now?

 Change to upgrade to new excellence level and contribute to accelerate the

whole Vietnamese retail industry

 Change to cope with new situation while Vietnamese retail industry has been

opened to big global players following WTO agreement, which result in fierce

competition in its homeland

 Change to satisfy new needs & wants of changing customer generation

Co.opmart has always been faithful to its originally defined target customers – family women from 20-50 years old with an aim to build strong, healthy relationship with them However, so far Co.opmart has perceived that 20-years old customers in 2012 had change significantly compared with 20-years old customers

16 years ago They have already grabbed with new desires, habits, interests, purchasing & consuming behaviors They no longer select a shopping place merely because of “convinience/accesibility” or no longer go shopping just for family’s needs Now beside basic above needs, young customers also head for individual desires, looking for innovation, breakthrough in products/services as well as exciting shopping experiences That’s why Co.opmart have to improve itself to stay

in strong touch with its target and potential customers

3.2 Which changes?

Co.opmart has proceeded 3 year Change Plan, including renewal in apppearance and improvement in operation content Change plan will start with launching new identity system (logo, slogan, supergraphic) throughout the chain nationwide; then offer more product & added-value services to give customer WOW shopping experience with Co.opmart

Change Plan would focus on 2 sides: formality and content

3.2.1 Content - Brand drivers: Radiated from the belief that Co.opmart have to

deliver wholehearted service that bring satisfaction, benefits and meaningful rewards,…

The brand drivers include following components:

 Brand driver: Rewarding relationships driven by dedication

 Brand promises: With dedication and a deep understanding of our

customers, we deliver wholehearted service that brings them satisfaction, benefits and meaningful rewards Through that we foster long-lasting and rewarding relationships with our customers and stakeholders as we continuously reinvent and enhance our service offerings oriented to the needs of the community and its people

 Brand personality: Confident | Positive | Lively | Engaging | Loyal

 Brand beliefs: Passionate dedication | Continuous reinvention |

Progressiveness | Community oriented

3.2.2 Formality - Visual identity components: A new logo that symbolizes the

refreshing idea driven by Co.opmart’s passionate dedication; which include Brand

identity | Colours | Typeface | Supergraphic | Photography style

Supergraphics with a refreshing look and feel that represents a symbol of

growth – a business with a growing momentum, a growing passion to reinvent, and

a growing relationship between Co.opmart and the customers

IV CO.OPMART MARKETING & COMMUNICATION STRATEGY

Co.opmart new brand has been officially introduced to the market in June

2012 – which just the very first beginning of a long journey to conquer mind, soul and heart of more demanding customer generation In order to pursue the utmost

mission which is to build and sustain “Rewarding relationships driven by

dedication” with customer & community, Co.opmart have to build an indepth

marketing communication strategy for successful long-term Brand innovation in terms of formality and contents, namely:

 Formality: develop strong Brand awareness of new Corporate Identity System

 Contents: creating excellent customer experience & satisfaction

This plan need to cultivate both internal & external resources so as to successfully convey the big message to customers and community

4.1 Internally, we have perceived that long term sustainable competitive advantage

comes form brand and the people who work for it; that’s why we have to carry out

“Brand Engagement” marketing & communication plan to make the most of our

11,000 staffs’ strength to get them deliver and drive our brand experience; namely

we aim to turn each employee into our excellent Brand Ambassador

 Events: organize events to inspire the Board and all staff with the new Brand

 Communication tools: compose/design a lot of interesting messenger to convey

new message to the whole employee

 Training, coaching: regarded as key engine to drive organization forward

sustainably

 training about new Brand values, spirit for the whole staff

 training about new Brand concept in relation with customer care services for marketing leaders team

 training about concept Brand Champion for supermarket directors

 Employee motivation: a crucial tool to turn each staff into a strong Brand

 Organize many interesting contests to give chances for creative applications

of new Brand into real working life, including launching “Co.opmart Smile” movement, New brand decoration contest or funny cheering contest

4.2 Externally, we shall proceed long term marketing communication plan to

assure that our target and potential customers to “know, get interested, burn desire and take action” towards our brand in terms of online & offline interaction; which

aim to create satisfaction and excellent experience for customer to shop with us

 Events: to officially announce new brand to the pubic

 Communications

 Press conference and PR activities

 Launching of new website with many relevant, exciting contents,

applications for users www.co-opmart.com.vn

 Digital marketing with high coverage and conversion rate all over online channel such as web banners, Google adwords, Facebook ads/cover booking;

Influencers; Forum seeding; Clip viral; etc

Build Facebook Fanpage Co.opmart to become House of Modern Eva with various contents, contest, applications to invite and engage Fan in interacting with the brand www.facebook.com/hethongcoopmartvn

 Make the most of POSM at supermarket to impress customer with new brand

applications: logo symbol photo corner, balloon, wrapping paper, uniform, etc

 Products

 Build brand positioning strategy for Co.opmart’s label brand – potential

brand messenger in the near future

 Promotional events: beside 4 key annual promotional events, Co.opmart has

introduced a big Promotion event for New Brand Launching

CHAPTER II INDEPTH ANALYSIS OF THE CAMPAIGN

“LAUNCHING CO.OPMART’S NEW BRAND”

The key drivers of this Brand Repositioning Plan is Change Management and Culture Rebuilding; in which Change initiatives must be seeded consistently from internal to external

I Internally, with an aim to get people to deliver the brand experience in “Brand

engagement” approach, we have to inspire them, not just declare, passionate belief

in the brand promise so that they can align these values to their decision making and behaviors In the first 6 months, Co.opmart has deployed some key activities to step

by step get our people accustomed to new brand components

1.1 Events: Co.opmart organized a series of launching events to announce new

brand to all corporate levels

1.1.1 We organized 6 New Brand conferences for whole level of Co.opmart’s

employee ranging from Executive Board, store directors/managers; department managers; officers to shop floor staffs

In each conference, we create many conversations about how to make the brand live for ourselves and for the customers Robust dialogues have been circled throughout the whole organization to inject new brand vaccine to the staff Everybody has been got involved in defining existing problems; imagining

“Co.opmart in your dreams” and committing themselves to Brand implementation

at all levels

1.1.2 When each store manager has comprehended new brand; they would come

back to their own store and organize an Internal Introduction Ceremony to their

floor shop staff; who played the most crucial role in conveying brand messages

because of their close and direct contact with customers

1.1.3 On 21 June, we organized an official Internal launching event witnessed by

300 key members including Executive Board, directors/managers of all stores and departments; who are defined as key engines to drive the whole Brand plan forward

They have been rewarded with “Brand Champion” flag at the start line with an

aim to encourage them to proactively lead their team, their store to conquer Brand laurel wreath

1.2 Communication tools: compose/design a lot of interesting messenger to

convey new message to the whole employee

 Composing a new Co.opmart song – apply this new song into every communication sound channel such as mobile phone ringtone, cheering song, internal radio system, corporate TVC airing on LCD system in supermarkets

 Shooting an emotional short film to viral internally named “Co.opmart – Voyage of Dream”

 Design 2 types of inspiring Brand handbooks for leaders and employee named

“Passionate dedication”

 Respectfully hand each staff a passionate letter from Chairman to inspire everybody with new message The key driver of these Change management and Culture rebuilding is the whole staff’s commitment and performance; therefore to make them know, love and act is one of the most challenging and decisive missions

 Equipped each staff with whole new appearance including uniform, helmet, raincoat, name card – the most visible changes to create excitement among the whole staff from the beginning

1.3 Training, coaching: regarded as a key engine to drive organization forward

sustainably

 Training about new Brand values, spirit for the whole staff

 Training about new Brand concept in relation with customer care services for marketing leaders team

 Training about concept Brand Champion for supermarket directors

1.4 Employee motivation: a crucial tool to turn each staff into a strong Brand

Ambassadors

1.4.1 To conduct Secret Customer program at every stores to examine employee

attitude as well as to assess customer satisfaction All the results have been collected, analyzed to orient people strategy according to new brand values

1.4.2 “Lets Co.op” program is to coordinate leaders, directors to experience

working at every daily job in stores throughout the system; which not only has been accelerating great excitement among staff but also helped senior leaders comprehend constantly changing real working environment and conditions of employee; from which design appropriate strategic policies

1.4.3 Organize many interesting internal activation activities/movements to give

chances for creative applications of new brand into real working life, including

launching “Co.opmart Smile” movement to encourage floor shop to express brand

value of “passionate dedication” in a very simple way of “wholehearted smile” when serving customers

1.4.4 Office decoration contest with brand materials was also an interesting

activity in which every staff/department had chances to get accustomed to new images and freely fly with their immense imagination and borderless creativity