UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ TRAN NGOC ANH LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING CENTER MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. LE THI THANH XUAN Ho Chi Minh City – Year 2019. 1 123doc UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ TRAN NGOC ANH LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING CENTER MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. LE THI THANH XUAN Ho Chi Minh City – Year 2019.
2 123doc LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING CENTER Table of Contents Chapter 1: Company overview .3 Aeon Celadon Shopping Center:. 12 Chapter 2: Symptom: Customers decreasing 98.8% compare with last year (2018 Vs 2017). 13 Chapter 3: Problems identification .1 Far from home of customers and inconvenient location .3 Worse assortment of products: .4 Cashier check out slowly and staff’s bad attitude of services: .3 The importance of main problem. 25 Chapter 4: Cause validation .2 Few famous brands: .3 Poor color, sizes and volume displays:.4 Very crowded customers at weekend and holiday: .5 Bad attitudes of services employees: .6 Employees lack of products knowledge:.
34 Chapter 5: Alternative solutions .1 Solution 1: For worse assortment of products .2 Solution 2: Worse of customer services. 42 Chapter 6: Action plan. 46 Chapter 7: Supporting information. 48 3 123doc Table of Figures Figure 1: Finacial review of Aeon group 2018 (Unit: Thousand USD).
7 Figure 2: Aeon Vietnam annual report 2018 (Unit: Billion VND). 11 Figure 3: Aeon Vietnam annual report 2018 (Unit: Billion VND). 11 Figure 4: Aeon Vietnam annual report 2018 (Unit: G.rate and Volume sales). 14 Figure 5: Aeon Vietnam annual report 2018 (Unit: No.
Of competitors - Stores). 15 Figure 6: Aeon Vietnam annual report 2018 (Unit: No. 16 Figure 7: Aeon Vietnam annual report 2018 (Unit: VND). 16 Figure 8: Customer survey report of Dec,2018 (Unit: Ratio%).
18 Figure 9: Customer survey report of Dec,2018 Ele. 20 Figure 10: Customer survey report of Dec,2018 Mul. 20 Figure 11: Customer survey report Cust. Purchases in food line (Unit: Ratio%).
27 Figure 12: Customer survey report Cust. Purchases in soft line (Unit: Ratio%). 28 Figure 13: Customer survey report Cust. Purchases in hard line (Unit: Ratio%).
28 Figure 14: Hard line annual report 2018 sales and GP (Unit: billion VND). 30 Figure 15: Number customers at weekday (No. 31 Figure 16: Number customers at weekend (No. 31 Figure 17: Annual report 2018 No.
of customers complaints (Unit: No. 33 Figure 18: Annual report 2018 No. of cases (Unit: No. 33 Figure 19: Annual report 2018 No.
of cases (Unit: No. 34 Figure 20: Estimated costs first solution and second solution (Unit:VND). 41 Figure 21: Estimated costs first solution (Unit: VND). 44 Figure 22: KPI Revised update (Unit: Weight).
44 List of Diagrams Diagram 1: Aeon group global expansion. 8 Diagram 2: Aeon Vietnam organizational structure. 9 Diagram 3: Aeon Vietnam philosophy. 10 Diagram 4: Aeon Celadon organizational structure.
12 Diagram 5: Initial cause effect map of Symptom. 26 Diagram 6: Final cause effect map of Aeon Celadon. 36 4 123doc Executive summary: Customers experience is one of the most significant factors in retail industry and it will enhance customers’ engagement that can be interpreted as customers’ interaction in terms of perception, emotion and behavior toward a store. Thus, the high customer engagement is able to improve customer satisfaction, strengthen customer loyalty and encourage oral behavior, which helps to keep a sustainable competitive advantage and allow them to charge higher prices and higher profit margins than competitors.
However, at Aeon Celadon Shopping Center face is Customers decreasing 98.8% compare with last year (2018 Vs 2017). Using different literature reviews and concluding in-depth interviews, survey among customers and employees at Aeon Celadon Shopping Center, this research aims to define what the main problem is, why it is the main problem, how important it is and how it affect to the business performance at Aeon Celadon. Thus, the findings show that has some potential problems are listed as: Far from home of customers and inconvenient location; Unreasonable prices; Worse assortment of products; Cashier check out slowly and staff’s bad attitude of services. And main problems are Worse assortment of products, Worse of customer services.
Main causes are Few famous brands and bad attitudes of services employees. And solutions for these issues are hire Merchandiser expert from outside to make new strategies for Electrical and Multimedia department and Training for service employees. In conclusion, the thesis points out the central problem at Aeon Celadon Shopping Center, what main causes of the problem and how to make outstanding decision of the solutions to solve the problems, to increase customer engagement as well as business performance at Aeon Celadon Shopping Center. 5 123doc Chapter 1: Company overview 1.1 AEON group: Aeon group is one of the biggest retailers in the world with over 250 years of establishment and development.
It’s headquarters is located in Chiba, Japan. During the long-term history of operations, Aeon group always keep the solid commitment to customers that is “Customer First”. Towards a prosperous, stable and happy society is the basic principle in the operation of Aeon group. Its high accountability to customers has helped Aeon group have important achievements in gaining customers’ trust and expanding business scale as well in both Japan and other Asian countries.
Below is the milestone of Aeon group • 1758: first established the Shinoharaya shop at Yokkaichi • 1887: moved Shinoharaya store to Yokkaichitsuji city and changed its name to Okadaya • 1926: rebuilt Okadaya into a joint stock company • 1959: Okadaya kimono fabric store changed its name to Okadaya with a capital of up to 15 million USD. • 1969: merged three companies including Okadaya, Futagi and Shiro to establish Jusco company • 1984: Jusco expanded its business in Malaysia and Thailand • 1989: Jusco changes its name to Aeon Group And net sales revenue of Aeon group in 2018 archived 68. 6 123doc Figure 1: Finacial review of Aeon group 2018 (Unit: Thousand USD) In recent years, the average age of Japanese population has been increasing and the market tends to be saturated, so one of Aeon's new strategies is to invest in other developing countries, especially those the country has a high economic growth rate in the ASEAN region. Vietnam is the first Southeast Asian country selected by Aeon to invest in development after 30 years of development in Malaysia and Thailand, and Aeon group strategies is making Aeon Vietnam by next second Aeon Japan.
7 123doc Diagram 1: Aeon group global expansion 1.2 AEON Vietnam: Aeon Hochiminh Representative Office was established in 2009. Since 2011, Aeon Vietnam has operated as trade centers, department stores and supermarkets which are the main business activities of Aeon group. Besides, Aeon Vietnam implements other business activities relevant import and export, commerce and market research. There are four shopping centers in Vietnam, 8 123doc three in the South and one in the North.
They are Aeon Tan Phu Celadon, Aeon Binh Tan in Hochiminh City, Aeon Canary in Binh Duong and Aeon Long Bien in Hanoi. Diagram 2: Aeon Vietnam organizational structure 9 123doc AEON Vietnam Vision statement: Aeon Vietnam wants to become a firm that will reach the soul of five billion people over Asia. AEON Vietnam Mission and Philosophy statement: AEON Vietnam mission and philosophy is encapsulated in three words, they are “peace”, “humanity” and “community”, following the commitment of Aeon group “Customer First”. These values are always maintained at anywhere Aeon do its business, which positions Aeon as a human-to-human enterprise, a member contributing to the development of local communities.
Diagram 3: Aeon Vietnam philosophy AEON Vietnam focus on shopping center and supermarket chain. The chain of shopping centers and supermarkets in AEON is currently being successfully operated in Japan and many other countries in Asia. The AEON department store and shopping mall provides customers with comprehensive day-to-day support for a wide range of industries, from clothing to food items and household items. These items are carefully selected and inspected, perfectly meeting the taste and tastes of the local people, as well as providing the necessary services.
10 123doc In Vietnam, when visiting the AEON Shopping Center and Supermarket, customers can easily find their own variety of products and meet of food safety hygiene standards and there are more choices for food with hundreds of dishes suitable for Vietnamese people. And sales revenue and operating profit of Aeon Vietnam was growing significantly until 2018 sales revenue was achieved 5,517 billion VND and operating income achieved 356 billion VND. Figure 2: Aeon Vietnam annual report 2018 (Unit: Billion VND) Figure 3: Aeon Vietnam annual report 2018 (Unit: Billion VND) 11 123doc 1.3 Aeon Celadon Shopping Center: Aeon Celadon Tan Phu was opened in January 2014. The outstanding design has a modern and luxurious style.
Inside the center are main stalls including supermarkets and Aeon department stores. Aeon Celadon shopping center spreads over 3 floors with a large scale and creates an attractive shopping paradise enchanting all customers. Aeon Celadon offers its customers an “Integrated Shopping Point”, a place where they can enjoy shopping experiences with relaxed moments together with their loved people with a series of recreational activities and rich cuisine. Sales revenue and gross profit of Aeon Celadon in year 2018 sales revenue was achieved 1,453 billion VND and gross profit was achieved 326 billion VND.
Diagram 4: Aeon Celadon organizational structure 12 123doc Chapter 2: Symptom: Customers decreasing 98.8% compare with last year (2018 Vs 2017) Vietnam retail market: Vietnam has become more and more attractive for international investors in retail industry right after this country joined WTO. Foreign investors' participation in Vietnam's retail market not only has created more choices for consumers but also created fierce competition for domestic companies. The favorable macroeconomic situation such as stable economic growth and abundant population with 93 million people has created the ideal conditions for the development of the retail industry in Vietnam. Young population, increasing annual income, increasing rate of rural urbanization, government support for foreign investment such as reducing trade barriers, reducing taxes, etc.
has pushed Vietnam to be the destination for international investors. According to Peter Christou (1) today, all foreign investments in Vietnam's retail network are proved by more positive signs of growth. Vietnam's GDP has continuously increased by 6.5% in average since the year of 2016. It is estimated that people who live in urban areas will increase from 33.1% in 2014 to around 50% by 2040.
More and more in the future, rural shoppers will be more easily accessible to Modern Trade retail. At present, nearly one-third of rural households shop at least once in a Modern Trade store and they tend to spend about 2-3 times the amount they usually spend spending when shopping in traditional shop. And exciting battle that will take place in the coming years is the battle between domestic and foreign companies in the retail sector. 13 123doc Figure 4: Aeon Vietnam annual report 2018 (Unit: G.rate and Volume sales) Acoording to Mr.
Yasuo Nishitohge General Director of AEON Viet Nam “As you know, in 2018, AEON Vietnam has been in operation for 5 years. Until now, we have been developing year by year and always catching new challenges during the past 5 years. As a result, we have achieved great success thanks to your efforts. Besides, we have learned from mistakes.
I think the most important point of the retail industry is to gain experience as an opportunity to learn and improve. Nothing is better than lessons learned from business. I want to remind with you that the biggest risk is when we never take risks. That is, all businesses must evolve into new markets because the times will change, customers' shopping needs also change and the competition situation changes rapidly each year.