Weaknesses that CRVanguard current CRM system:

A. Inefficient “FUN FUN card” system

“FUN FUN card”: The original idea of giving a card to customers for storing the bonus
points returned by the purchases is feasible. It is similar to be a customer loyalty
program. When customers spend HK$2, it will be given 1 bonus point in return.
Stored bonus points can be used to exchange for some gifts or coupons before the
expiry date (usually 1 year).

The minimum bonus points level used to exchange the gifts are 2500 points, which is
equal to HK$5000. However, those 2500 bonus points (that is about HK$5000) can
only get HK$20 Vanguard coupons. In fact, it doesn’t make sense that using HK$5000
to exchange HK$20 coupons. It is believed that that may lead customers not to feel
interested in purchasing. Moreover, the bonus points may only valid within 1 year.
When it will be expired, CRV will delete the bonus points stored without prior notice.
 Vanguard “FUN FUN
Apps”

Include:
-Bonus points earned
-Bonus points used
-Items recommended
to receive
-Sunday/Special day
offers

Recommendation: It is recommended that the concept of “FUN FUN card” should be

retained. However, the rule can be set based on Human-kindness and technological
aspect. For example, we can use the card in a tailor-made way and implement it as a
mobile application—“FUN FUN apps”. Customers need not to bring the card later but
with the ‘Everyday carry’- mobile phone. After registering from CRV website and
downloading CRV’s FUN FUN apps, customers can simpily check for the latest prices
of products, weekly meal menu for those households and, bonus points they earned
through mobile ($1=1 point) with the aid of CRV website (later in the 2 nd section).
Whenever their points stored are enough to give other coupons or gifts, CRV can
help remind and recommend them which could be the best way to use the points
within 1 year. Moreover, whenever there are special offer in special occasions
(especially every Sunday, Days before Lunar New Year to prepare for the festivals,
etc)or expired date of the bonus points, CRV may kindly remind them through the
“FUN FUN apps”, rather than deleting it without prior notice. Not only the apps can
really build up a communication channel for customer to ‘interact’ with CRV (it is
convenient for them to check how many points they stored, used, can receive which
products), but also they can check CRV’s latest discount/ special offer in special days
by mixing the use of technology and usage-situation segmentation.

Limitation: Some of the customers, especially the elderly who do not have smart
phones may not enjoy such convenience. On the other hand, it may be an
opportunity for them to have a supermarket- shopping every Sunday with their
children so that to have a family day, and so with their family members to prepare for
every meal.

Moreover, security problem may be customers’ one of the most important concern
when using the “FUN FUN Apps”.

B. Low sensitivity to market change

Low sensitivity to market changes is another reason why CRV cannot grow its market
share and keep its market position in this industry.

In such an information age, doing everything online has been becoming much
possible than before, including grasping the most updated and suitable information,
booking, and also shopping online. It may not be “must”. However, it is necessary for
a large product- variety selling company, especially in the commodity industry, to
provide a convenient and efficient way for customers to experience online shopping
and retaining their relationship with the aid of technology. On one hand customers can
enjoy lots of the advantages such as efficiency and recommendation provided by the
website. On the other hand, company can collect their purchasing history in order to
implement certain kinds of promotional campaigns, and categorizing the products and
services that aimed at retaining those loyal customers. That’s why CRM is much more
important in the recent years.

Comparing with PARKnSHOP and Wellcome, CRV provides relatively less extra
services to customers such as home delivery service. Moreover, online shopping is the
trend so that every large-scale retail stores or supermarket must provide in their
websites. However, CRV‘s website does not provide any shopping cart and does not
show the latest information and hence bring inconvenience to customers. Even worse,
its website does not update for a long time. Furthermore, it only contains two of the
brands’ products in the website.

Recommendation: CRV may firstly, provide a “Must buy” for customers to know
which items are much cheaper by comparing with other competitors within this
period in website. It is the benefit segmentation: show what CRV products provide to
customers is ‘the cheapest’. And that’s what CRV want to promote its image to its
customers.

In addition, the website should categorize products according to different customer

segments’ needs. For instance, child or young teenagers may usually purchase snacks
or confectionery. On the other hand, households may want to purchase fresh foods
and delicatessen as they always concern about what they would have in their coming
meal. For the elderly, the health and care products are essential for them. Not only
the categorization can facilitate different segments of customers to choose their
specific needs of items, but also it enhances CRV to gather customer information in
order to analyze their purchasing behavior. According their purchasing history, CRV
can know how often they go to that supermarket, which products they frequently
buy, which time slot they usually visit, whether they are loyal customers or just one-
time transaction customers, which gifts or bonus they prefer to receive, etc. After
that, CRV can customize campaigns to specific customers by reminding them through
“FUN FUN Apps”. For example, if Mrs. Chan is known to visit supermarket at 5:30pm
every day to buy fresh food for cooking, once she use CRV apps to explore the
website, she can easily view the most fresh items transported to current CRV, or CRV
may even have helped her plan the dinner set A, B, C since she is hurry in time. Mrs.
Chan may simply follow the set based on her preference (e.g. the total cost of the
set, the healthiest one, or the much suitable set) to choose. It is based on customers’
lifestyle to segment to create value for them.

The website’s Login name and passwords can show their uniqueness to CRV. Once
they have logged in, the webpage will show the weekly special offer, their next best
product by collaborative filtering. For example, after analyzing same kind of
customers, CRV may know that most of them may purchase similar products.
Therefore, they may suggest like “you may also like…” or “customers like you also
buy” so that to satisfy the purpose- “next best product”. It may also build customer
retention since they may believe CRV want to tailor- make products to them.

Live agent should be established in CRV’s website as customers who have difficulties
in using shopping cart to purchase products. The shopping cart can simultaneously
count the total of the bill. If the amount is greater than $500 or those customers who
live in the area without CRV in near, CRV may provide free delivery service for them.

A suggestion box should be established in CRV’s website. It is because CRV should

look for ways to improve customers shopping experience. Therefore, if customers
have any suggestions, CRV may provide a form for them to share their opinion with
us.

Limitation: Again, some parts of customers are households or elderly, which they
seldom explore website or go online- shopping. However, it is a good communication
channel with their sons to interact in order to know the special offer provided by CRV.

Besides, the security problem, including the exposure of personal information, may be
customers’ concern. Therefore, I recommend CRV to outsource the application,
website and shopping cart built-up to some professional IT company so that to have
secured digital delivery such as selling and delivering digital content easily and
securely. Moreover, to have automatic digital content mirroring insures always-available
delivery of customers’ digital content and, allow customer quick & easy access to their
digital content purchases.