The dissertation aims to build theoretical and practical grounds on developing marketing strategies in the new market conditions which are adaptable to changes in the environment and market (customers, competition) in order to bring about orientations, views, goals and solutions with strong theoretical and practical foundations to develop marketing strategies for Vietnam’s retail supermarket chains located in Hanoi by 2023, vision 2030.
Trang 11. Rationale
Retail market in general and business activities in supermarket systems in Vietnam in particular have witnessed considerable changes in recent years At present the ratio of ultimate spending in GDP in Vietnam is over 70% higher than the rate of regional countries with 55.9% in Singapore, 58.2% in Malaysia and 67.7% in Thailand. Growth potential and attractiveness of Vietnam retail market, especially in big cities like Hanoi or Hochiminh city, have drawn lots of research on business opportunities; accordingly enterprises, retail organizations, supermarkets are supposed to change their management modes, renovate procedures and approaches of serving, invest in technology
to meet the demand of customers. Besides, as competition has become more fierce and severe in the context of trade liberalization, that domestic enterprises can come up with new operation modes with appropriate marketing strategies so as to effectively exploit competitive advantages becomes urgent.
As there will be lots of unexpected fluctuations in the retail market in the future, a study on theories and reality to build up a research model and plan strategic development solutions for retail businesses
in general and retail supermarket chains in particular is very necessary. Especially for Vietnam retail supermarket chains – a newlydeveloped business model, scientific analysis of which marketing strategic structures are general for the chains, which structures are particular for each chain member and how retail supermarket chains should build their marketing strategic competency becomes ever more essential. Under the pressure of modern retail styles in the same distribution system with the presence of foreign enterprises (such as the supermarket of the worldfamous retail groups); in face of challenges resulting from the impacts of macroeconomic environment, it is becoming imperative to research marketing strategies of Vietnam retail supermarket chains
With these approaches, the dissertation titled “Developing Marketing Strategies for Vietnam Retail Supermarket Chains in Hanoi” was chosen as the subject for her PhD dissertation with a view to further developing their business activities and enhancing effectivenes of supermarket chains in the national distribution system
2. Research objectives and tasks
2.1. Research objectives
The dissertation aims to build theoretical and practical grounds on developing marketing strategies in the new market conditions which are adaptable to changes in the environment and market (customers, competition) in order to bring about orientations, views, goals and solutions with strong theoretical and practical foundations to develop marketing strategies for Vietnam’s retail supermarket chains located in Hanoi by 2023, vision 2030
2.2. Research tasks
Generalizing fundamental theoretical subject matters to establish the content, build theoretical hypotheses and models to develop marketing strategies for Vietnam’s retail supermarket chains located in big cities
Testing and establishing models and measurements of the development of marketing
Trang 2 Proposing views and solutions to develop marketing strategies for Vietnam’s retail supermarket chains located in Hanoi to ensure the adaptability, balance, enhance strategic capacity and sustainable marketing competitiveness of retail supermarket chains in the market
Comparative method is used to compare independent retail supermarket chains, other retail store chains, Saigon Coop Mart
In terms of participants: Vietnam’s retail supermarket chains located in Hanoi with necessary and possible comparison and contrasts
In terms of time: researching the situation since 2009 (when Vietnam opened its retail market) and suggesting solutions for the period to 2023, vision 2030
In terms of space: researching some Vietnam’s retail supermarket chains in operation in Hanoi market
5. Scientific and practical significance of the dissertation
In terms of theory: establishing some fundamental theories on strategies and marketing strategy development in general and their applications for retail supermarket chains in particular.
In terms of practice: testing theoretical models via collected primary data and establishing practical models for the development of marketing strategies for Vietnam’s retail supermarket chains that are suitable for the environment and market of Hanoi; analyzing the development of marketing strategic structures and the overall marketing strategic capacity of Vietnam’s retail supermarket chains located in Hanoi, identifying the strengths and weaknesses as well as issues arising from situation analysis
Trang 3 In terms of research objectives: Basing on research findings to propose views, orientations and solutions to develop marketing strategies for Vietnam’s retail supermarket chains located in Hanoi, present proposals for Vietnam’s retail supermarket chains to improve their competitiveness and business performance by 2023, vision 2030.
Trang 46.1. Foreign studies
Related to marketing and retailing in general, there are numerous books and research
papers. Related to the research of this dissertation include: Principle of Marketing P.Kotler, G. Amstrong(2012), Market Segmentation and Competitive Analysis for Supermarket Retailing
(Madhav N. Segal and Ralph W. Giacobbe Southern Illinois University at Edwardsville, Illinois,
USA), Marketing strategy of the supermarket((Ica maxi, Coum Forum, Netto, Lidl, Rafael Lucena Matamalas iguel Santandreu Ramos, May2009), Reinventing marketing strategy by recasting supplier/customer roles(Evert Gummesson School of Business, Stockholm University, Stockholm,
Sweden, and Hannu Kuusela and Elina Na ¨rva ¨nen School of Management, University of Tampere,Tampere, Finland) These are specialized materials in marketing management and retailing, but none of the research works have ever focused on the development of marketing strategies for retail supermarket chains
6.2. Domestic studies
In the past 10 years, there have been many research works and publications related to retailing, retail supermarket chains and marketing strategies of enterprises. Some distinctive works include: research by Nguy n Hoàng Vi tễ ệ titled “Scientific Grounds to Develop Business Strategies for Stateowned Garment jointstock Enterprises of Vietnam after WTO entry”; research by Nguy nễ Hoàng Long, Nguy n Đ c Nhu n titled “ễ ứ ậ Developing Export Marketing Strategies for Vietnam Garment Enterprises to Export Products to the US Market”; research by Nguy n Bách Khoa titledễ
A thorough investigation into previous studies reveals that no published research work so far has studied the development of marketing strategies of Vietnam’s retail supermarket chains located in Hanoi
7. Organization of the dissertation: In addition to Introduction, Conclusion, Reference, Appendix, the dissertation consists of 3 chapters:
Chapter 1: Theoretical Issues and Practical Experience on Marketing Strategy Development
of Retail Supermarket Chains
Chapter 2: Situation of Marketing Strategy Development in Vietnam’s Retail Supermarket Chains in Hanoi
Chapter 3: Views and Solutions to Develop Marketing Strategies for Vietnam’s Retail Supermarket Chains in Hanoi by 2023 and Following Years
Trang 6OF RETAIL SUPERMARKET CHAINS1.1. Concept and advantages of retail supermarket chains
1.1.1. Retail supermarket chains
From the concept of supermarket and distinctive features to distinguish a supermarket system
organized in chain model, the concept of supermarket chains in retail can be built up as follows: Retail supermarket chains refer to a system of at least 2 retail supermarkets which have the same view and business models, the same name and operational procedures which are managed under the same orientations and centralized administrative agency. About products, these supermarkets often sell the same products with the same price levels but they can add products suitable for local market Purchasing and distribution activities of the supermarket chains are centrally organized in big scale for the whole chains.
Developing marketing strategies: “Developing marketing strategies of a retail business in general and retail supermarket chains in particular represent an important content in marketing strategic management, that is the process of ‘implementing’ structure components and contents of strategies and managing the ‘compatibility’ of strategies with strategic changes from marketing environment of retail supermarket chains so as to ensure the capacity growth of marketing strategies and create development on the quality of marketing system of retail supermarket chains along the time” [64]
1.2.2. Contents of marketing strategy development for retail supermarket chains
1.2.2.1 Developing information management and analyzing marketing strategy situation. This
structure consists of the following contents:
Conducting research and marketing surveys to review marketing environment and identify opportunities and threats to strategies
Trang 7 Developing selection of market segments that retail supermarket chains wish to pursue
Developing value proposals and establishing goals for each selected target segment
Developing value positioning in the strategic market, including: (1) Developing value proposals of market offering; (2) Building competitive positioning at industry level (retail); (3) Communicating the values to target customers via customer relationship management; partner relationship management; competition and cooperation management with rivals, practicing green ocean strategies; (4) Practicing retail positioning diagrams by combining different levels of retail services
1.2.2.3. Developing strategies for retail market offering, including:
Developing product strategies
+ Developing strategies for structuring retail products
+ Developing strategies for retail product quality+ Developing strategies for retail product innovations
Developing retail distribution service strategies
+ Developing strategies for structures of quality of mix retailing services+ Developing strategies for retail service brands of retail supermarket chains Developing retail pricing strategies
+ Developing strategies for product line pricing+ Developing strategies for retail pricing practice+ Developing strategies for flexible and competitive pricing
Adapting and modernizing channels in line with changes in marketing system and retail market
Implementing and reestablishing core distribution processes including: managing the process of order – payment; managing sales capacity and costs; managing service quality; managing service supply capacity; managing distribution risks.
Trang 8 Implementing and adapting retail strategies which flexibly combine between “pull strategies” and “push strategies”; practicing relationship marketing and creating positive features and differentiations; establishing and developing retail uniqueness of each retail supermarket chain.
Implementing and modernizing sales technology of “supermarketstyled selfservice”, shifting from selling “products” to selling “customer solutions”
Developing and enhancing the quality of sales representatives and sales staff, practicing sales
staff management according to “teamwork” principle
Implementing and adapting customer services before, during and after sales and additional services, practicing the management of “reverse feedback” from customers – consumers to constantly improve the quality and values of customer services of retail supermarket chains.
Implementing plans and operating components in retail infrastructure, enhancing the quality
of customerscontact staff to create reliable “physical evidence”, ensuring safety and hygiene of the retail environment
1.2.2.6. Developing the organization, resources and core competencies of marketing strategies to ensure the development of marketing strategies, including:
Developing appropriate marketing organization and ensuring the capacity to implement and adapt marketing strategies
Developing resources of core competencies of marketing strategies to ensure the development of marketing strategies
Developing differential competencies to ensure the effective development of marketing strategies.
Developing competencies to create friendly, favorable, civilized, modern image of retail supermarket chains in customer mind
Developing creativity and flexible responses to raise the moving competitiveness in comparison and/or peer competition with FDI retail supermarket chains.
Developing management capacity and implementing marketing strategies based on intellectual and values of CMOs and midlevel marketing managers in retail supermarket chains
On the basis of these contents, a theoretical research model on marketing strategy development for retail supermarket chains can be built as shown in Figure 1.1
Trang 9(Source: generalized and developed by the PhD learner) Figure 1.1: Theoretical research model on marketing strategy development
for retail supermarket chains
Qualitative research conducted via indepth interviews with 16 marketing strategy managers and marketing experts to adjust variables, measurement scales and generalization of observation variables helps to produce the following model and measurement scales:
Independent variables:
+ Information management and marketing strategy situation analysis has 5 observation variables of MIA1, MIA2, MIA3, MIA4, MIA5
+ Strategies for value choosing and positioning has 6 observation variables of VCP1, VCP2, VCP3, VCP4, VCP5, VCP6
+ Strategies for retail market offering has 9 observation variables of TMO1, TMO2, TNO3, TMO4, TMO5, TMO6, TMO7, TMO8, TMO9
+ Strategies for marketing channels has 7 observation variables of SMC1, SMC2, SMC3, SMC4, SMC5, SMC6, SMC7
+ Strategies for promotion and retail mix has 7 observation variables of PRM1, PRM2, PRM3, PRM4, PRM5, PRM6, PRM7
+ Organization, resources and core competencies of marketing strategies has 5 observation variables of CMC1, CMC2, CMC3, CMC4, CMC5
Group of criteria to evaluate the performance of developed marketing strategies in components and general
Group of criteria to evaluate the level of marketing practice quality
1.2.4. Factors affecting marketing strategy development of retail supermarket chains
1.2.4.1. Macroenvironmental factors, including:
Economic – inhabitant and socio – cultural environment
Trang 10The dissertation generalizes the experience of marketing strategy development of some distinctive retail supermarket chains such as SevenEleven (711) of Thailand, WalMart Chains, SaigonCoop mart and draw some lessons for Vietnam’s retail supermarket chains located in Hanoi:
Retail supermarket chains attach great importance to marketing strategy development and have official marketing strategies
It is necessary to attend to and realize customer philosophy in marketing strategies
Enterprises need to come up with strategies for developing the chains in both scale and quality, develop modern retail system beyond the geographical border of big cities
Supermarket chains should pay more attention to customer care services to expand customer base and enhance business performance
It is necessary to meet market demand rapidly: innovating and enhancing product quality are strategies to provide new and different products from those existing in the market
Trang 11IN VIETNAM’S RETAIL SUPERMARKET CHAINS IN HANOI2.1. Overview of retail sector and retail supermarket business in Hanoi
2.1.1. Socioeconomic and business features of Hanoi
A political, cultural and economic centre of the country with favorable geographical location, high density of production plants, organizations, universities, high level of living standards, visiting residents, tourists so business activities develop strongly with quite advanced business and technical infrastructure
A national centre of political – administrative, cultural, scientific, educational, economic activities and international transactions
An area of 3,328.89 km2 with 30 districts, towns and 584 communes, wards (with 18 districts and 386 wards), a population of 7.2 million, excluding around 2 million working citizens who are temporarily living in the city without living registration. The city is the hub of road, rail, waterway and airway traffic, making it very convenient for external transactions
The most longlasting business centre in the Northern region which gathers investors with enormous experience, capital and customers, a place which gathers many enterprises, international and domestic partners, a giant consumption market with developed service sector and extensive distribution network which can closely connect with sources of supply in the region
The leading centre in science and technology with modern economic and trade infrastructure, good conditions to attract domestic and international scientists
A venue of diverse ecological and tourism resources to develop trade and tourism services
An abundant population as favorable conditions for trade development. Labor structure transitions appropriate with economic structure transitions Population movements create higher attraction to trade. Most people move to Hanoi from neighboring provinces and involve in manual work
2.1.2. Overview on retail business development in Hanoi since the open of retail distribution service market (1 st January 2009)
The total value of commodity retail increases from VND 90,756 in 2009 to VND 236,079 billion in 2015. Annually, the added value of Hanoi trade sector gain an average growth rate of 20.52% in the 20082015 period. Gross domestic product in 2015 increased by 2.9 times from that of 2009
Trade infrastructure of the city has always been cared of
Trade network and relationships take place in 2 routes, both independent and integrated between retail and wholesale, between traditional and modern channels
2.1.3. Overview on the development of supermarkets and retail supermarket chains in Hanoi
Trang 12As of 1st July 2015, there were 187 supermarkets in operation, including 118 general supermarkets and 69 specialist ones (electronics: 25, fashion: 15, others: 29), accounting for 19% of the country’s total number, on average 1 district had 6.2 supermarkets Of the total 159 graded supermarkets, 20 were rated at grade I, 57 at grade II, 72 at grade III, the 28 remaining were not yet graded. Of the 159 graded supermarkets, 103 were subsidiaries of 37 retail supermarket chains, 56 were independent retail supermarkets.
2.2. Establishing the real model for marketing strategy development of Vietnam’s supermarket chains located in Hanoi via testing research model
Secondly, research sample was constructed under multiple choice method. As this research is
conducted at strategic management level, in order to have accurate and appropriate evaluation of marketing strategy components, there should be the involvement of CEOs of supermarket chains, marketing and business managers of subsidiary supermarkets in the chains as well as of opponent enterprises, state administration staff of trade, CEOs of suppliers. In accordance with the rule of multiple, each observation variable needs 4 – 6 questionnaires, so for Questionnaire 1 with 39 observation variables, there should be at least 39x5=195 questionnaires. The number of delivered questionnaires was 350, the number of collected was 233, 18 were rejected for invalidity, so the sample scale was 215 (the rate of collection was 64.4%); For Questionnaire 2 with 5 observation variables as customers to retail supermarket chains, state administration staff of trade, the number of delivered questionnaires was 150, the number of collected was 98, 7 were rejected for invalidity, so the sample scale was 91 (the rate of collection was 60.8%). The structure of respondent classification
Trang 13EFA analysis for measurement scales of components of marketing strategy development in retail supermarket chains show that 6 components were extracted at Eigen value of 1.849 and average variance extracted is 72.936% which means that conditions for variance extracted meet the requirement (>50.0%). 2 observation variables VCP3 and PRM4 were rejected as their factors loading were <0.50. 35 remaining observation variables were continued with second EFA and produced KMO
= 0.877 (> 0.5), Bartlett test had statistical significance of 0.000 with 5 components extracted at Eigen
= 1.849 with AVE of 72.963%. Measurement with observation variables rejected by EFA analysis, Cronbach’s alpha of components “Strategies for values choosing and positioning” and “Strategies for promotion and retailing mix” were recalculated at 0.8016 and 0.8247 respectively (see Table 2.5 – full report of the dissertation and Table 2.4 full report of the dissertation)
CFA analysis of 6 components with 35 observation variables of the model extracted by AMOS shows that the model has chisquare (X = 385.23 with 215 degrees of freedom, p = 0,000, chi square adjusted to degree of freedom (CMIN/dt) is 1.79 (< 2.0). CFI = 0.936, TL= 0.923 (> 0.90); RMSEA = 0.052 (< 0.08). So it can be concluded that the model was standardized in accordance with collected data set
The concept of developed marketing strategy capacity was assumed as a unidirectional concept. 5 observation variables were used to evaluate the developed marketing strategy performance. Table 2.5 – full report of the dissertation presents the results of EFA analysis for the developed marketing strategy performance Cronbach’s alpha was 0.8406; Eigen was 1.849; KMO = 0.836, Bartlett test had statistical significance at 0.000, AVE was 72.963%. All factors loading were higher than 0.70 EFA analysis suggests that 05 measurements/observation variables of the developed
Trang 14marketing strategy performance and 35 measurements/observation variables of 6 components of marketing strategy development gained convergence validity. Observation variables can represent the research concepts that need to be measured.
2.2.2.3.Correlation analysis
Correlation coefficient between dependent variables and independent variables components
of marketing strategy development – was high enough with statistical significance p<0.01, which means independent variables could be used in the model to explain the developed marketing strategy performance of Vietnam retail supermarket chains located in Hanoi (See Table 2.6 – full report of the dissertation) All absolute correlation coefficients ranged between [0.2870.587], not exceeding condition coefficient of 0.85 – which illustrates that discriminant validity was gained. In other words, measurement scales in this research can measure the research concepts
Independent variables/components of marketing strategy development in retail supermarket chains have considerable correlations with each other
2.2.2.4. Testing the relations between components of marketing strategy development and developed marketing strategy capacity in Vietnam’s retail supermarket chains in Hanoi
i. Multiple regression model is as follows
SDP = 1 MIA + 2 VCP + 3 TMO + 4 SMC + 5 PRM + 6 CMC + e 1
ii. Testing the multicollinearity of variables in the model.
The testing results indicate that all variance values were higher than 0.53, VIF ranged from 1.31 to 1.93, illustrating that multicollinearity was not a problem to variables used to forecast regression model of this research (See table 2.7, 2.8 – full report of the dissertation)
iii. Testing the appropriateness of the model and research hypotheses
The model has statistical significance at p < 0.001 with F = 70.624, statistical significance p
< 0.001 indicates that the multiple regression model is appropriate with the collected data set (See Table 2.9 – full report of the dissertation)
Adjusted R2 shows the compatibility of the model as 72.2%, in other words about 72% of variations of dependent variables “Developed marketing strategy performance” can be explained by 6 independent variables / components of marketing strategy development
Standardized beta coefficient ranged from 0.087 to 0.299 with p < 0.05 indicating that these
6 components are good forecast indicators to the developed marketing strategy performance
Multiple regression model demonstrating the developed marketing strategy performance is built on the basis of the research findings is as follows:
SDP=0.094MIA+0.087VCP+0.299TMO+0.198SMC+0.143PRM+0.267CMC
This regression equation reveals that there are 3 groups of components with different influences on the developed marketing strategy performance: Group 1, including strategies for market offering and Organization, resources and core competencies of marketing strategies, have the most important impacts (the most and second most important) on the developed marketing strategy performance; Group 2, including Strategies for promotion and retail mix and marketing channel, has very important impacts (the third and the fourth important) on the developed marketing strategy performance; Group 3, including the remaining components of Strategies for value choosing and positioning and Information management and marketing strategy situation analysis, has the smallest but important impacts on the developed marketing strategy performance