Abstracts No 57   12/2/2015 2:49:24 PM
 1. Selecting Supply Value to Strategic Market – a Decisive Factor to the Success of Small and Medium Retailers in Vietnam

Dr. Tran Thi Hoang Ha – Vietnam University of Commerce

In the present context, companies cannot be successful if they fail to select the right strategic market, they cannot be successful either if they spread their investment in various market segments, instead, they have to avoid some segments to focus resources on others. A segment can be considered a strategic one when it satisfies the following requirements: the segment is not creating profits or a small profit (if any) for the company; the segment fits the market development strategy of the company in the future; products to be offered in this segment can anticipate the future demand; the segment has mid-term and long-term vision.

The article consists of 4 parts:

1.      Introduction

2.      Research model and methodology

3.      Research findings and conclusions

4.      Some policy implications to help Vietnam small and medium retailers choose the right value to supply for their strategic market.

After an overview on strategic markets, the author presents the reseach model and methodology. She stresses that managing the strategic market of a company is the whole strategic management process which starts from analyzing, identifying, planning, selecting, positioning values in strategic markets and marketing tools for meeting the strategic demand to implementing, checking and controling the market so as to reach the strategic marketing goals in the strategic markets. Then the second step is to select and position the supply value for the strategic market. Selecting the right value to supply for the strategic market and having the right positioning strategy are the decisive factors to the success of the company in the strategic segments. The value that the company chooses to supply for the strategic segment should not only satisfy the present demand of customers but also anticipate their future needs. To select the supply value for strategic segments, companies need to approach the market from two aspects. First, each company should supply certain values to customers (the capacity of the company). Second, customers have certain desires on the values they can receive from the companies.

Research methods: questionnaire survey conducted on customers in the strategic markets of retailers. The questionnaires include 7 variables developed into 28 items (each variable consists of 3-5 items) and apply the 5-point scale (1 point: absoluately dissatisfied à 5 points: absolutely satisfied)

Research participants: 2 fashion retailers, 2 electronic retailers, 2 minimarts in Hanoi. The total number of questionnaires delivered: 180. The number of collected: 81 (45%). Method of sampling: convenient sampling. Time of survey: October 2012 to January 2013.

Research findings and conclusions: the supply value of surveyed small and medium retailers is evaluated at the average level; variales 1, 3, 4, 5 and 7, which are the comparative advantages of small and medium retailers against large-scale ones, reach non-different value, or even lower. The values that small and medium retailers can bring to customers include: customers have satisfaction of choice when shopping in the retail stores, they can choose the right products to their demand, which means the retailers have supplied some certain values to customers. When shopping in retail shops, customers have 2 common behaviors: (1) they have shaped their demand before hand, thus coming to buying decision very quickly. (2) they have not yet shaped their demand, hence prefering to compare between products of the same service before deciding on the specific one.

In the final part, some policy implications are suggested to help small and medium retailers in Vietnam choose the right supply value, including: regularly collecting and processing information about customer demand; providing extra services such as consultancy, installation, maintenance, etc.; strengthening the training work for sales and technical staff; approaching modern retailing models besides the traditional methods to raise customer satisfaction; exploiting place utility of being near redisential areas.

2. Value Chain in Vietnam Garment Industry – Models, Situation and Solutions

Dr. Nguyen Hoang Viet – Vietnam University of Commerce

As the consequence of the global economic crisis and national macroeconomic instability, most Vietnam enterprises are facing a paradox that the more business they do, the more loss they incur. There are various approaches to identify the reasons, one of which stems from enterprise value chain. The article analyses the business situation of Vietnam garment enterprises, applies the value chain model proposed by the author, evaluates the capacity and quality of value chain operation in enterprises to come up with two solution groups: reducing basic operational costs and stimulating the value chain in Vietnam garment enterprises in the coming time.

The article consists of 4 parts:

1.         Introduction

2.         Research model and methodology

3.         Research findings and evaluation of value chain in Vietnam garment enterprises

4.         Implied solutions to restructure Vietnam garment’s value chain

The author uses the methods of questionnaire survey with suitable scales to evaluate the capacity of fundamental activities and quality of supporting activities in the value chain of Vietnam garment enterprises, from which suggests some implied solutions to reduce costs, restructure activities in the value chain so as to enhance the capacity of the chain in the coming time.

In the second part of the article, the author presents the value chain of Vietnam garment enterprises, in which he analyzes and evaluates the capacity of the chain in the two specific aspects: researching the capacity of the fundamental chain to evaluate each activity and the whole fundamental chain (Value actually delivered) and researching the capacity of the supporting chain via the perceived satisfaction with each activity and the whole supporting chain.

In the third part, the author presents 6 findings of the value chain in Vietnam garment enterprises and identifies the objective and subjective reasons for the limited efficiency of the chain, such as: the effects of economic crisis, the negative fluctuations of the macro economy; the business management knowledge in enterprises; the limitations and weaknesses in the enterprise resources, etc. However in the scope of this research, the author points out 2 main sources which lead to the above problems: Vietnam garment enterprises do not pay enough attention to and effectively deal with cost management of the fundamental chain and they do not have measures to identify and stimulate their own value chain properly.

In the final part, from the findings and conclusion, the author comes up with some implied solutions to restructure the activities in the value chain of garment enterprises in the coming time to help them overcome the challenges of the economic crisis and best prepare for the post-crisis recovery and growth. The principles for these solutions lie in the fact that to reach a value advantage, the accumulative delivered value to customers of the company, that has experienced its value chain, has to be higher or definitely different from that of the rivals. There are 2 ways to achieve this: Do better than what rivals do with a higher efficiency of inside activities effectively and manage factors reducing value chain costs; improve the value chain to avoid some costly operations and low value activities in general. From these principles, 2 solutions groups have been suggested: controlling cost efforts drivers and improving and restructuring the enterprises’ value chain

3. Applying CRM in Vietnam Hotels: Situation and Solutions

Duong Thi Hong Nhung, Vietnam University of Commerce

In the modern competitive environment, all activities of the enterprises are taken towards the aims of satisfying customer demand as customers are the guarantee for enterprises’ survival. Customers are the asset, the vital factor to enterprises no matter what business areas they are in. Customer Relationship Management (CRM) is quite popular in the world but not yet received adequate attention in Vietnam, especially in the hotel service. Some hotels have not been aware of the importance of customer relationships. Many have not yet identified its CRM structures nor built up strategies for CRM. The application of CRM remains limited. It is therefore necessary to do research on the situation and solutions to the application of CRM in Vietnam hotels.

The paper includes 2 parts:

1.      The situation of CRM application in Vietnam hotels

2.      The solutions to CRM application in Vietnam hotels

In the first part, the author presents the situation of applying CRM in Vietnam hotels. CRM application in Vietnam hotels has the following strengths: most of the hotel staff have been aware of the role of CRM in the hotel business activities; hotels have paid attention to identifying customer demand in an attempt to raise their satisfaction with the services; understanding the demand, psychology and preferences of customers represents an important factors to build up customer relationships; hotels have invested in their infrastructure to enhance the convenience and comfort for customers. Via market research and customer surveys, hotels have invested in necessary infrastructure in their business activities and CRM in particular.

However, besides these strengths, CRM application also witnesses some limitations such as: although CRM has been attended to by hotels, research reveals that the attention of hotels to building, implementing, controlling and evaluating this activity is not high enough. Many hotels have only built up and implemented it but failed to control and evaluate the activity; hotels have not yet cared about collecting and managing customer information nor got to know their competitors and suppliers.

From the situation, in the second part, the author suggests some solutions to applying CRM in Vietnam hotels: (1) identifying customer demand as understanding the demand is the first step determining the effectiveness of the CRM programs; (2) paying attention to the differentiation in customer strategies as differentiation is a crucial factor affecting customer’s choice of the products; (3) building up appropriate and specific strategy for each customer group; (4) building customer-oriented culture in the hotels. This is a must if the hotels want to apply CRM system; (5) improving the qualifications of the staff; (6) regularly evaluating and adapting CRM to ensure long-term effectiveness; (7) investing in and applying appropriate software; (8) building up good budget and saving costs and diversifying customer attraction methods.

 

4. Domestic Market Penetration Strategy for Domestically-Made Electric Storage Products – Nguyen Thi Uyen M.A., Vietnam University of Commerce.

The study aims to explore the market situation and competitive features of domestically-made electric storage products, then orient the market penetration strategy for Vietnamese electric storage products. The research combines qualitative and quantitative methods based on both primary and secondary data sources. Moreover, primary data collected from customer survey will clearly explain the domestic demand for the electric storage and objective assessments on the competitiveness of domestically-made products in comparison with imported ones in the market. From the analysis of collected data, the article gives some important solutions on analyzing the situation, competitiveness and orienting market penetration strategy in terms of selecting target market segment, positioning and implementing to increase the share of domestically-made electric storage products in the home market.

The article consists of 4 parts:

1. Introduction

2. Theoretical background and research model

3. Methodology and research results

4. Recommendations

From the collection and analysis of secondary data, information from interviews and qualitative analysis tools, the research reached the results as follows: in the survey on 200 households with income in A and B group (medium and high) on the stability of power source with 164 responses, 64.6% of the respondents rated the power sources as “highly unstable” and “unstable”. Therefore, it can be seen that power source for households use now has not yet met the demand in terms of the stability and continuity, highlighting the need for power supporting devices.

Mean analysis shows that domestically-made electric storage products currently have such advantages as quality, functions and sales services. However, there also exist some limitations such as small and medium size of most companies, limited investment budget, lack of professional workforce and lack of strong brands in the market. Furthermore, many companies have not researched customers demand before accessing the market. As a result, the information database of domestic electric storage producers and suppliers is limited and unreliable.

From the context, the article suggests two solutions including TOWS analysis to orient the market penetration strategy and market penetration strategy content orientation for domestic electric storage products. Domestic market penetration is actually the strategic task for Vietnamese electric storage companies. With the huge potential of online market for high capacity electric storage for households with the existing advantages, Vietnamese companies need to solve the market puzzle to set the significant foothold in the home market. They should focus on determining households as the potential target market segment and exploiting this segment in parallel with businesses market segment. It is also advisable to improve product types, models and invest in developing distribution network as well as promotion activities to clearly position domestic brand in the context of highly potential but puzzled market currently. With effective positioning strategy on delivered values, domestic electric storage products will gradually strengthen their brands, competitiveness and become the ground for success of domestic market penetration strategy.

 

5. Features of Notebook Buying Behaviour of High School Students and Application in Marketing Solution of Stationery Companies – A/Prof. Dr. Nguyen Hoang Long and Nguyen Thi Kim Oanh, M.A., Vietnam University of Commerce.

The research shows that each stage in the notebook buying decision of high school students in Hanoi has specific buying behavior characteristics on need recognition time, information type and information sources facilitating buying decision, criteria and the importance of the criteria for evaluating the selection of alternatives, point of purchase and accompanied people. From these features, stationery companies should improve product quality based on criteria with high importance, competitive pricing, distribution points nearby schools and trade promotion focusing on the start of school year or semester in correspondence with the activities of the schools and students.

The article contains 4 parts:

1. Introduction

2. Theoretical background

3. Methodology

4. The situation of notebook buying decision process of high school students in Hanoi.

In the study, the authors conducted a survey on the behavior features of school students in Hanoi in each stage of notebook buying decision process. The sample is mainly high school students in Hanoi inner districts with random sampling technique at a specific time in April and May 2012. Of the total 200 questionnaires delivered to high school students in Hanoi, 145 are collected back. The collected data was analyzed by descriptive statistics, frequencies of subgroups, variables, mean of variables to recognize the features in each stage of the notebook buying decision process.

The results of the survey show that the behavior features of high school students in each stage of notebook buying decision process include Stage 1, needs recognition; Stage 2, information search; Stage 3, evaluation of alternatives; Stage 4, purchase decision; Stage 5, post-purchase evaluation.

Applying to marketing strategy of stationery companies, the authors suggest some practical recommendations as follows:

-          Recommendations on products

-          Recommendations on prices

-          Recommendations on distribution

-          Recommendations on promotion.

 

6. A Study on Factors Affecting Buying Behavior at Convenience Retail Stores in Vietnam – Luu Thi Minh Ngoc, Hanoi University of Industry.

The study aims to explore factors affecting buying behavior of Vietnamese consumers at convenience retail stores by survey questionnaires conducted on consumers in Hanoi and Hochiminh City. The respondents stated that their decisions to buy at convenience retail stores or grocery stores were affected by such factors as reliable goods quality, diversified goods types, food hygiene, reasonable prices, friendly shop assistants, beautiful shop displays, customer consultation, convenient opening hours, favourable deals, relevant distance to homes, suitability to personal income and family size.

There are two parts in the article including:

1.      Buying trends of Vietnamese consumers

2.      Factors affecting buying behavior of Vietnamese consumers

In the first part of the article, the author indicates the buying trend of Vietnamese consumers. According to 2008 Gain report of the US Department of Agriculture (USDA), spending on grocery accounted for 42 - 45% of total, consisting of essential products such as salt, sugar, cooking oil, sauces and fresh food. There was only little spending on processed food with high value. Nowadays, the consumption habit of the Vietnamese has had positive influence on convenience stores. As the essential goods can be found easily in any convenience stores, this model has become popular with consumers in urban areas. According to 2011 Gain report of USDA, the Vietnamese concerned more about nutrition, quality, food hygiene which are ensured in any products in convenience stores.

In the second part, the author presents factors affecting buying behavior of Vietnamese consumers. The consumers have different evaluation on factors affecting buying decision in convenience stores. Some preferred factors include suitable opening hours, distance to home, consumer income, and quick payment with mean of over 2.8 and variance lower than 1. Another group of factors consists of goods quality, reasonable prices, diversified product types, beautiful shop displays, professional services, attitudes of shop assistants, good customer consultation. Nevertheless, consumers have not yet appreciated food hygiene and product types. The factor most consumers prefer is distance to home with highest mean of 3.491 and highest standard deviation.

The study shows that the factors of store quality, consumer income and store conditions mainly affect buying behavior of consumers at convenience stores in which consumer income, distance to home, opening hours and quick payment are of the most importance. Food hygiene receives the least attention of consumers whereas it is the advantage of convenience stores over traditional retail ones. In the long run, in order to help consumers recognize their difference from traditional retail stores, convenience stores need to access consumers to further develop this retail model in Vietnam.

 

7. Non – Performing Loan Management at Vietinbank: Situation and Solutions – Vu Ngoc Diep, Vietnam University of COmmerce.

Non – performing loans are liabilities that are irrecoverable or no longer profitable. Management to prevent non-performing loans from deriving and to bring forward methods to treat them is becoming more and more of an outstanding issue in the operation of commercial banks. Vietinbank is one of the leading Finance-Banking groups acting as the backbone of Vietnam finance and banking system. However, crediting remains the main activity of banks, so non-performing loans are inevitable. In this paper, the researcher will analyze and evaluate the real situation of non-performing loan management at Vietinbank, thus suggesting several solutions to perfect non-performing loan management at Vietinbank in particular and Vietnam commercial banks in general.

The paper consists of 4 parts:

1. An overview of non-performing loans at Vietinbank

2. The real situation of non-performing loan management at Vietinbank

3. The limitations in non-performing loan management of Vietinbank

4. Solutions to perfect non-performing loan management of Vietinbank

In the first part, the author provides an overview of non-performing loan at Vietinbank in particular and banks in Vietnam in general. Next, in the second part, she analyzes further the real situation of non-performing loan management at Vietinbank, specifically: non-performing loan management is conducted in a given order including identifying and classifying non-performing loans; non-performing loan prevention; and non-performing loan treatment. On the basis of the real situation of non-performing loan management at Vietinbank the author draws 3 limitations in non-performing loan management of Vietinbank including: Limitation in the procedures of non-performing loan management; Limitation in the organization of non-performing loan management system; Limitation due to inadequate use of non-performing loan treatment measures.

To repair the above limitations, the author suggests the following solutions to perfect non-performing loan  management of Vietinbank:

First, enhancing the financial ability of the bank: financial ability is the necessary and adequate condition for banks to operate, so the most urgent question at present is gradually enhancing the financial ability of banks in the context of integration. Vietinbank also needs to take the initiative in attracting investment of international financial bodies, encouraging foreign banks to form joint-ventures to raise working capital and conduct technology transfer, moving forward to a modern commercial bank with a comprehensive competitiveness in the financial market.

Second, improving the efficiency of direct liability collection: the bank needs to create an attractive reward policy in non-performing loan collection applied to all beneficiaries who make contribution to loan collection including bank staff as well as other individuals and organizations on the principle of percentage of the value of the loan collected. Besides, it is necessary for the bank to be decisive in making the loan tellers who make mistakes recover the loans or compensate them with their own money.

Third, preventing new non-performing loans from arising: Vietinbank needs to have active and appropriate measures to prevent new non-performing loans from arising. This should be a regular and important measure in every phase of the bank operation.

Fourth, setting up and using risk contingency funds more reasonably and effectively: account outstanding is classified and deducted to set up risk contingency funds; there are two types of risk contingency funds including specific contingency and general contingency which are used to treat the entire loan in case the guaranty asset is slow asset. This solution helps to create the legal corridor for Vietinbank to fund non-performing loan treatment which is carried out annually, thus non-performing loans will decrease.

Fifth, developing banking technology: computerization in loan management helps banks to change from dispersed tracking of risk and problematic loans in branches into centralized tracking in the head quarter. Through applying technology, the bank has built a software which can co-ordinate with the whole system in giving grades and internal credit ranking in order to accurately, transparently and objectively assess the real situation of loan happenings on each client, to suggest feasible credit policy, etc. Together with internal credit ranking, Vietinbank has developed a software to classify loans and set up risk contingency funds which automatically combines between internal credit ranking results with the real situation of loans, etc.

Sixth, training and developing human resources: it is necessary to enhance managing and training high quality human resources. Vietinbank needs to add and modify regulations on recruiting, placement and firing employees, apply a suitable reward and punishment policy pursuant to new management requirements in order to upgrade work quality. Parallel with human resources training and development, it is important to have the right policy to attract and retain competent and experienced banking staff, etc.

 

TIN KHÁC
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