The retail company Co-op Mart

A. Marketing plan
I. Excutive summary

With seven consecutive years of achieving the title of leading retailer in Vietnam and in the top 500
leading retailers in Asia - Pacific, Co.op Mart currently holds the leading position in the retail
industry in Vietnam, in terms of retail value. both revenue and number of points of sale.

Co.opmart is considered to have an advantage over other competitors since it is a 100 percent
Vietnamese firm with a marketing team that knows Vietnamese consumer psychology, is educated
about the Vietnamese retail market, as well as shopping patterns and customer tastes. With the
objective of maintaining its position as Vietnam's leading retailer through the rapid and sustainable
growth of the Co.opmart supermarket chain, as well as attempts to diversify civilized and modern
retail formats. Simultaneously, continue to enhance your intimate contact with customers and the
community. The objective of Co.opmart is to address the daily consumption demands of target
clients. Always provide convenience, safety, and extra value to customers. Contributing to the
improvement of people's living standards and the development of the retail business in Vietnam. In
the next five years, Co.opmart aims to become the number one retail firm in Vietnam, with over
2,000 places of sale spanning all provinces and cities and serving over 5 million people. The
company's goal in the future is to serve every Vietnamese consumer with nutritious, ecologically
friendly, and healthful products. The corporation offers an organic product line in this marketing
approach, which ensures food hygiene and safety without the use of preservatives or hazardous
elements to consumers' health. This marketing plan serves as a launching pad for a new product line
as well as a stepping stone for the company's future environmental product development.

II. Current marketing situation analysis

2.1. Background information
The Co.opmart brand is a pure Vietnamese supermarket under the Ho Chi Minh City Union of
Commercial Cooperatives (Saigon Co.op) operated according to the cooperative collective economic
model. Co.opmart Cong Quynh is the first supermarket that was opened and put into operation in
1996 in District 1, Ho Chi Minh City and is considered an important initial foundation to help shape
the development of pure Vietnamese modern retail until nowadays.
After nearly 3 decades of many fluctuations of the retail market in Vietnam, although many domestic
and international supermarket brands are operating in moderation, or in turn disappear due to
inefficient operation, the supermarket system Co.opmart is still growing steadily.

Saigon Co.op has raised the number of Co.opmart supermarkets in operation to 128 times the
original after 25 years. The distribution scope of Co.opmart has also been expanded from Ho Chi
Minh City to 45 provinces and cities across Vietnam. Currently, the Co.opmart supermarket chain,
along with other modern Saigon Co.op retail models, is regarded as the backbone of the Vietnamese
distribution system in general, and price-stabilizing necessities in particular, with its scale country,
contributing significantly to market price stabilization and social security stabilization. (Co.opmart,
2021)

2.2. The macroenviroment

 Politics environment
The expansion of the sector is directly related to politics. The political stability of our country creates
a favorable economic climate for retailers, attracting many significant multinational companies to set
up shop in Vietnam.
Despite the fact that Vietnam is a potential market, foreign businesses remain concerned since we
continue to use tariffs to safeguard and manage the market.
 Economic environment
In 2020, in the context of many developed economies in the world, the growth is negative due to the
adverse impact of the COVID-19 pandemic, Vietnam still achieves a GDP growth rate of 2.91%.
(Vietnam Industry and Trade Information Center, 2020).
  Social environment
With more than 20 years of actively accepting accept globalization, actively join market economic
institutions and be ready to integrate into international life, the social environment in Vietnam has
never been rich, complex and as much potential as it is today. It is a system of phenomena and socio-
cultural relations diverse, multidimensional and dynamic, enough to nurture all good ideas,
encourage all advantages in innovation, creativity, but also enough challenges and temptations to
make any individual, family. Vietnam's population is huge and young, with the majority of the
population being of working age.
 Technology environment
The report's findings show that technological change is the key to productivity growth. Therefore,
the Vietnamese government has focused on investing and encouraging technology development.
Vietnam is considered as one of the developing countries with the fastest growth in science and
technology in the world.
 Law environment
Soon after becoming a full member of the World Trade Organization (WTO), Vietnam's distribution
market was opened (January 2007).

The legal environment, according to the survey results, has a significant impact on the operation of
businesses at the port, as evidenced by the average score of 4.57/5 points. Over time, ministries and
branches have made constant radical adjustments to tighten state control in a number of areas where
urgent requirements have arisen, based on a deep understanding of the Party's principles and
policies, as well as the State's laws.

 Environmental environment
The tropical climate transition zone in Vietnam stretches from north to south. In Vietnam and the
surrounding region, the hydrological system is diversified and unique. The place where the fauna and
plants of the Northern and Southern systems converge and mingle.
Furthermore, the amount of biodiversity is considerably increased by different topographical
situations. The natural environment fluctuates with the seasons, causing weather variations, and
many diseases, including Covid-19, are born in the environment.
2.3. Market analysis
The consumer category (female, married, 25-49 years old, with a secure employment) has a high
level of devotion to Co.opmart, according to a Nielsen Vietnam survey (a supermarket system under
the Union of Cooperatives). When compared to other grocery brands, Ho Chi Minh City - Saigon
Co.op) is the most expensive. The claimed reason is because the system provides dedicated customer
support; it is located in a handy shopping area; and there are several offers for clients of all levels
and organizations.

According to the above report, 2020 will witness the flourishing of modern shopping channels with
more than 1,000 new stores opening, especially the model of personal care stores and minimarts.
Despite facing competition from minimart, supermarket model is still the main shopping place for
consumer goods. In addition, the online shopping channel developed very quickly during the
epidemic period because it was suitable for contactless shopping. Average spending on consumer
goods in 2020 increased to 6 million/month (an increase of nearly 10% compared to 2019).
(Co.opmart, 2021)

The COVID-19 epidemic has had a significant impact on the economy, as consumers have become
more price sensitive in common commodity groups such as fresh food, home/personal care, and
everyday consumption. They look for attractive promotions and low-priced products through flyers
and information from acquaintances, but still focus on quality and convenience. Therefore,
Co.opmart has won the trust of consumers with the familiar motto "Friend of everyone".

2.4. Competitor analysis

Co.opmart had previously been in a race with Big C and Metro to gain a foothold in the retail
business. Big C's posture in the retail market is as the cheapest commodity, and its target market is
the low-middle-income customer market and above. Thousands of things in Big C are priced 1-5
percent lower than comparable items in other supermarkets. Meanwhile, Co.opmart's positioning is
to become a close friend of consumers, and the target market category is married clients, with the
slogan "Quality items, affordable pricing, thoughtful service.

The price war between Co.opmart and Big C is fierce and tug-of-war in nature. Metro, BigC,
Vinmart, and other direct competitors of Co.opmart might be noted.
2.5. About Co.opmart
Co.opmart's products have their own labels that are carefully researched, selected and tested, giving
customers peace of mind in terms of quality and price.

Co.opmart 's BCG Matrix

Star: Question mark:
- Drinks: - Canned food and dry food:
+ Carbonated drinks + Dry food
+ Non-carbonated drinks + Vietnamese specialties
+ Drinks - Prepared in powder form + Canned food
+ Beer and fermented fruit juice + Other food
+ Wine + Prepared food
+ Other alcoholic beverages
 + Other drinks
Cash cow: Dog:
- Fresh Food Meat - Home care:
+ Butter & Eggs + House cleaning
+ Seafood + Cleaning the kitchen
+ Vegetables + Sanitize the bathroom
+ Fruits + Paper towels
+ Other Frozen Food + Laundry & Clothes Care
+ Processed Food
+ Ice cream
+ Tofu
+ Types of Sauce
Savings line: concentrating on developing goods with fundamental and vital features for families,
ensuring quality at the best price to assist consumers save as much as possible.

Ordinary product line: is the major line of goods, with a broad and extensive range of products; high-
quality products that are comparable to leading brands but at lower prices.

High-level product line: items are handcrafted or made from selected, high-quality raw materials,
giving customers the best at a fair price.
III. SWOT analysis
SWOT Weaknesses (W) Strengths (S)
1. Network management is not 1. Good marketing and service
good. activities
2. Few fresh goods. 2. Promote the advantage of
3. The price is not really cheap. Private Label
4. Lack of good staff when 3. Focused purchasing
developing new supermarkets promotion with a good
5. The management team has sourcing strategy
not met high-level strategic 4. More than 80% of the staff
management activities. are young, well-trained
6. Limited financial potential workers
5. Trusted by many consumers
6. There are several prospects
for collaboration and business
growth.
7. The supermarket's products
are assured to be of great
quality.
8. As the world's largest
supermarket chain
 T1,3,4,5 + W1,2,3 T1,2,3,5 + S1,2,3,5,6,7,10
Threats(T) → Backward integration → Market penetration strategy
1. Big C, Lotte, and Maximark strategy
are among the major T2 + W4,5,6 → Forward
competitors. integration strategy
2. The economic recession
caused many people to save
and spend.
3. Competition from many
other alternatives (markets,
grocery stores, convenience
stores, etc.).
4. Not yet adapted to the online
sales model.
5. The merger of large
supermarkets
Oportunities (O) O1,2,3,4 + W1,3,4,6 O1,2,5,6 + S2,3,5,6,7,10
1. Government stimulus policy → Competitive pricing → Market development
affects people's purchasing strategy strategy
power. O5,6 + W5 → Talent search
2. Developed society => and retention strategy
Increased shopping demand.
3. People are more and more
inclined to shop at
supermarkets.
4. Increase revenue by
increasing the number of
supermarkets.
5. Known by many people due
to long-standing operation.
6. The provinces are interested,
creating conditions to support
 development.

IV. Marketing objectives

The long-term goal of Co.opmart is to become the leading provider of high-quality, healthful, and
environmentally responsible retail products to all Vietnamese customers, as well as to promote
consumer awareness. consumers on the importance of a healthy food culture When it comes to
establishing a new product line, Co.opmart has two main objectives. The initial target is to sell the
new product line to 40% of existing consumers by May 2022, in order to encourage customers to
adopt green consumption habits. This aim satisfies the requirements (selling new products to
customers). present items), Measurable (40 percent of customers), Achievable (organic products sell
well, with high customer satisfaction), Relevance (the company strives to provide environmentally
friendly products), Deadline (May 2022). The second target is to increase market share by 1% by
the end of May 2022, bringing brand awareness to 22%. This goal satisfies the following criteria:
Specific (increase market share), Measurable (22%, 1%), Attainable (the firm is expanding),
Relevance (increase brand recognition), and Time-limited (End of May 2022).

V. Marketing strategy
A corporation can pick between four market segments. Customers in the demographic sector are
young individuals from all walks of life in the city, as well as visitors and passers-by. Have a middle-
class or higher-class income. Young couples have solid employment and earnings, and they do not
have much time to spend shopping and cooking for their families as men and women, in which
women are prioritized in taking on the position of housewife in the home, meals on a daily basis.
They are between the ages of 18 and 49, with an annual salary of more than 10 million VND and a
strong desire to safeguard the environment (Vietnamplus, 2021). Customers in geographical
segmentation include residents of Vietnam's districts and major cities, such as Hanoi, Ho Chi Minh
City, Hai Phong, and Da Nang. The people who live in these cities are well-educated and aware of
the necessity of environmental preservation. Due to the high prevalence of pollution in these large
cities, environmental protection items will be prioritized (IQAir, 2021). Customers in this sector who
prefer to use new items with high practical applicability, gorgeous designs, and high quality are
being targeted. If the product fits the above conditions, they are willing to spend the full purchasing
price. Customers are more likely to repurchase products that provide them with excellent satisfaction
when they are segmented based on their behavior (Create Loyalty). Furthermore, by purchasing
these items, consumers are indirectly protecting the environment (Create desired benefits). As a
result, this marketing strategy focuses on demographic and geographic segmentation as a prospective
market.

The organization employs an ad hoc marketing strategy for the two target markets mentioned above.
Companies employ this marketing strategy for three reasons. To begin with, the company's target
demographic is fairly broad, thus the number of clients will swiftly expand. Second, this marketing
technique helps the Co.opmart brand become more well-known, which opens up prospects for the
company to grow. Thirdly, the cost of this strategy is not excessive; if the strategy is effective, the
firm will generate substantial profits because the cost is modest; if the strategy is unsuccessful, the
business will incur minimal losses.

Customers should be aware that environmental pollution is a growing concern, and Co.opmart is the
first food retail chain to introduce a new product line that contributes to environmental conservation
while also providing customer happiness.

The marketing mix of Co.opmart's new product line

Product Promote products that are the company's strong point, improve
high sales of items that bring in high revenue.
For products with low sales or sales
insignificant but cost equivalent to other products
The company has two directions:
- Continuing to maintain production to create markets for products
new and unfamiliar consumers.
- For traditional products but with a good number of orders
Few goods, low turnover, the company can replace other products with
other products higher competitiveness.
To complete the product policy, register the label
certification mark for a group of products and logos, registered
production process according to VietGAP or GlobalGAP standards.
About customer service: regular updates on products and create
relationships with customers who are the distribution channels.
The company builds "Product News Board".
In which, good packaging design enhances the attractiveness of products,
Attractive printing on the package, on the label full of information about
 the product.

Price The selling price for each type of product will be calculated as follows:
Selling price = Production cost + Loss value + Shipping cost
Transfer + Administration cost
In there:
+ Production costs: Includes all production inputs,
interest, packing fees and amortization.
+ Value of loss: Total value of main product/harvested output.
+ Administration cost: 5%/total cost.
+ Shipping costs are calculated per unit in kilograms with
2,000 - 5,000 VND/kg depending on the market.
To encourage groups of customers to consume items
company, it is necessary to have a reasonable sales discount policy on raw
materials
The more the rule of consumption, the higher the discount rate.
Place Developing a one-level indirect distribution channel for markets
To implement this distribution policy, the company needs to
deployment: Staff in charge of each area. Using distribution channels
1 level distribution.
Stores at the company to meet the needs of tourists,
Customers are restaurants and hotels in the area.
Promotion To achieve this goal, the company needs to coordinate the use of flexible
communication tools includes Advertising, direct marketing, promotion,
direct selling.
Advertising to convey the best advertising message to customers. The
product is a screen system that has been installed in stores and
supermarkets and uses communication tools to promote the company's
image, products, movies about clean agricultural practices, and how to
produce turn products. Printing and use catalogs, leaflets sent to
customers, distribution systems or through the form email every time there
is a new product or price change.
Promotions and discounts are forms of demand stimulation ,purchase and
 develop new products.
Participating in fair activities agricultural products to introduce the
production process of clean products, quality of products.
This form applies at the company's store company, with the goal of
promoting the company's products through number of tourists to the
locality.
People The crew has been well trained and informed on the new product, and they
are eager for customers to test it out. Employees must be able to
communicate the environmental message of "green consumerism" that
Co.opmart sends to customers with this new product.
Process Organic products are produced and packaged using a sophisticated process
that is regularly tested to assure the highest quality standards and a
positive consumer experience.
Physical Customers are encouraged to submit product reviews and comments on
evidence the company's website and Facebook page, and the company performs
user experience surveys.

VI. Action program and Budget

Activities Timeline Implementing Cost (VND) Responsibility
agencies
Product 1/02/2022 – Research and 50 million Examining the features,
research and 13/02/2022 development benefits, and drawbacks
development department of new products, and
make adjustments to
meet client demands.
Product 13/02/2022 Design department 100 million Completing new product
packaging – packaging, with an eye-
design 20/02/2022 catching design and an
emphasis on
 environmental
sustainability.
Work, 20/02/2022– Bussiness 600 million Collaborate with partners
negotiate 20/03/2022 Department to provide fair
with promotions. Complete
partners the contract signing
process.
Marketing 20/03/2022- Marketing 100 million Complete a well-
strategy 20/04/2022 Department thought-out marketing
strategy.
Training 20/04/2022 Human resources 150 million Employees receive
employees – Department updates about new items.
26/04/2022
Advertising 26/04/2022 Marketing Phase 1: 150 Phase 1.
activities – Department million - A long, high-quality
30/05/2022 Phase 2: product introduction
450 million video was put on
Total: Facebook to help
600 million disseminate the
environmental message -
KPI: 20,000 views and
3,000 interactions
Phase 2.
- Celebrities promoted
the message to reach a
wider audience.
- KPI: 15 percent
increase in new
customers
+ 45 percent increase in
sales
+ 80 percent increase in
 Facebook website traffic
Packaging 20/02/2022– Business 1 billion Manage the warehouse
and 20/03/2022 Department and make sure there are
distribution enough supplies to
distribute to the stores.
Customer 30/04/2022 Customer service 10 million Obtain client feedback
feedback – Department and support.
30/05/2022

VII. Controls
The company must sell 30% of the product in Phase 1. If not, the corporation will boost the
frequency with which it posts about new items and will run Facebook advertisements to enhance
customer reach. The corporation must sell at least half of the remaining product in Phase 2. If this
target is not accomplished, the company will provide organic items at a 10% discount (the same
price as the previous product) in attempt to increase sales. The company will evaluate brand
awareness, market share based on revenue (which must increase by 70% over the same period), web
and Facebook traffic (which must increase by 80%), and the number of existing customers who
purchase new products based on their purchase history on the company system at the end of January
2022. (which must increase by 40%).
B. Media plan
1. Objectives
The goal of the communication strategy is to get 40% of existing customers to try out the new
product and raise brand recognition by 22%. Customers are aware of organic items and the
Co.opmart retail brand.

2. Target audience
Existing and new clients are the target customers. Young couples have solid employment and
earnings, and they do not have much time to spend shopping and cooking for their families as men
and women, in which women are prioritized in taking on the position of housewife in the home,
meals on a daily basis. They are between the ages of 18 and 49, with an annual salary of more than
10 million VND and a strong desire to safeguard the environment (Vietnamplus, 2021).

3. Communication channels
The corporation uses Facebook, its main website, to post product information on owned digital
media. This channel's benefit is that it's simple to change informational content and it's free, but it's
exclusively for current customers. The company employs a sponsored channel to advertise on
Facebook and Google to attract new customers. The algorithm will aid in the propagation of the
organic products post to a large number of new customers; they will click to learn more, and the
intriguing content will pique customers' interest in trying the product. This application is designed
for young individuals who use social media on a daily basis and have free time. Web traffic and
followers are used to evaluate online channels.
For offline communication, the corporation will deploy in-store billboards, which have the advantage
of huge stores on all ways to reach but are difficult to measure. This form is for consumers aged 18
to 49 who are busy with work, do not frequently use social media, or are on the move. This form is
targeted at clients aged 18 to 49 who are busy with work, do not frequently use social media, or are
on the go. The corporation will employ in-store billboards to reach out to them.
4. Contents
The corporation grabs attention with the article's trending terms, piques curiosity with the
environmental message, and satisfies the desire for clean food to make the appropriate purchase
decision. The company launched a new product, MV, in the first two weeks. The video content
discusses product features as well as the environmental message that Co.opmart wants to promote.
Billboards with organic design are installed in front of each business at the same time. In the next
two weeks, the corporation will rely on celebrities' significant impact to build customer trust and
distribute the product to a wider audience.
5. Timeline and action plans
Phase 1- Attracting Phase 2- Creating a sense of
attention trust
Time 1/02/2022-15/02/20222 15/02/2022-30/05/2022
Objective Organic salmon's salient Customers' green
features and environmental consumption habits should be
advantages are well- encouraged.
known.
Supporting tactics Use of social media Social media
Celebrities

Budgets

Meeting 100 million/press conference

Press Release 1 million/newsletter

Official opening 500 million/time

Editing/designing quarterly 10 million/post

internal magazine

News article 10 million/post

Interview instead of radio show 200 million/show

Provision (10%)

Estimated document cost:

Post an announcement

Print annual report 300 million/ project

Internal magazine printing

Postage stamps, stationery

Interview tape

New product opening ceremony 500 million / ceremony in which the cost of renting
KOL is 100 million VND
6. Quantitative and qualitative criteria
The number of website visitors, interactions, Facebook tracking, and orders are all quantitative
criteria. The quality of the evaluation, as well as the customer's understanding and sentiments about
the product, are used to determine qualitative criteria.

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