TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3

MAJOR FINDINGS........................................................................................................................4

I. MARKETING CONCEPT......................................................................................................4

1. The definition of marketing.................................................................................................4

2. The general marketing in Sakuko Vietnam..........................................................................4

3. The influences of external environment on the sakuko Vietnam.........................................4

a. Opportunities and challenges of the external environment..................................................5

4. The roles and responsibilities of the marketing department in Sakuko Vietnam................7

5. The influences and interrelates of marketing department with other departments in the
Sakuko........................................................................................................................................8

II. BENCHMARKING ANALYSIS............................................................................................9

1. New product of Sakuko Vietnam.........................................................................................9

2. Evaluate marketing mix are used by BigC and Aeon..........................................................9

3. Evaluate the success of marketing strategy of BigC and Aeon.........................................12

4. Approach and apply Marketing mix on new product of Sakuko.......................................12

REFERENCES LIST....................................................................................................................15

APPENDIX....................................................................................................................................18

2
 INTRODUCTION
Sakuko Vietnam., JSC is a member of Sakura Corporation. Sakura Vietnam was first introduced
to the market in September 2011. In 2017, Sakura Vietnam officially changed and launched the
new brand identity of the company, Sakuko Vietnam and Sakuko Japanese Store. Over 10 years,
from a store providing Japanese domestic products for mothers and babies, the Sakuko Vietnam
has constantly affirmed its leading position in the retail of domestic Japanese products in Vietnam
market with more than 30 stores located in Hanoi and provinces nationwide (Sakuko,.vn)

The assignment will describe the concepts of marketing, including the definition, the roles and
responsibilities of marketing and the relationship between the marketing department and other
departments in Sakuko. Besides, analyzing some of benchmarking will be mentioned in this
assignment.

3
 MAJOR FINDINGS
I. MARKETING CONCEPT
1. The definition of marketing
Marketing is the chain of activity, set of mechanisms and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, partners, and society at large.
(Definition of Marketing, 2013)

2. The general marketing in Sakuko Vietnam.

 Creating: Sakuko Vietnam always strives to develop the market and adjust the structure of
goods to suit the needs of Vietnamese consumers. Sakuko trades up to more than 10,000
products with 07 categories such as Mother and baby, Cosmetics, Food, Health care,
Fashion, Stationery, Home and life-serving for every Vietnamese family. (Sakuko, 2020)
 Communication: Communication is the core of commerce and also an important factor
effect on decision to purchase goods of an individual. (Whitman, 2005). To achieve
success, Sakuko develops online shopping, sales staff at the supermarket chain regularly
Livestream twice a week during the Covid-19 outbreak. (Thach, 2021).
 Delivery: Sakuko Vietnam has expanded to 10 stores in Hanoi, 6 franchise agents and
more than 500 distribution agents include supermarkets and convenience stores in Hanoi
and other provinces in Vietnam (as of December 2017). Besides, Sakuko also has a COD
delivery policy and express orders of 100.000 VND to all provinces. (Sakuko, n.d)
 Exchange: The e-commerce Sakuko website allows customers to buy goods, evaluate
quality and give opinions. Supermarket systems will get feedback from them (Baodansinh,
2021)

3. The influences of external environment on the sakuko Vietnam.

The external environment includes all external factors that affect the operation of the business.
Businesses must act or react to keep up with the flow of their activities. The external environment
can be divided into two types: Microenvironment and Macroenvironment. (Cena, 2021).

4
Microenvironment: consist of the actors close to the company that affects its ability to serve its
customers — the company, suppliers, marketing intermediaries, competitors, the customer and the
public combined to create the company's value delivery system. (Kotler et al., 2005)

Macroenvironment: consists of the social factors that affect the entire microenvironment —
demographic, economic, natural, technological, political, and cultural environments. (Kotler et al.,
2005)

a. Opportunities and challenges of the external environment.

The application of digital technology in shopping is an inevitable trend of young consumers in the
period of social development Therefore, retail stores will have to change their business models or
marketing methods to suit customers. Sakuko's perception is to identify competitors and
customers to set long-term and profitable goals.

- Competitors.
Market-oriented companies not only track and understand their customers, but also research
their competitors and brands to understand their strengths, weaknesses, strategies, and response
patterns. (Jobber et al., 2019).
Sakuko has been present for 10 years in Vietnam but has to compete with rivals such as Fuji
Mart, Konnichiwa Shop or JE mart who are occupying a large market share with breakthrough
marketing campaigns in Vietnam. (Blogsosanh, 2021). According to Ms. Cao Thi Dung - CEO
of Sakuko Vietnam, Sakuko has been positioned as an essential Japanese shopping address for
families. Products of Sakuko Vietnam are imported directly from the manufacturer or a trading
company authorized by the manufacturer. It is this advantage that makes Sakuko's preferential
price better than many businesses of the same type and creates trust for users (VnMedia, 2021).
With the development of technology, e-commerce platforms are attracting more and more
customers through a series of promotions and discount codes. Competitors like Shopee or
Lazada are constantly innovating, they are moving from B2B to MarketPlace to ensure product
reliability (Anonymous, 2020). From there, Sakuko may be weak in terms of online sales, but
they can constantly innovate their methods of online promotion and traditional sales (Sakuko,
2021).
- Customers
5
The customer is at the center of marketing and efforts, and it is the job of the marketing manager
to meet their needs and expectations better than the competition. The starting point is
understanding the customer market share (Jobber et al., 2019).
Vietnam's population is aging at an unprecedented rate. The whole country has 11.4 million
elderly people, accounting for 11.86% of the total population and the aging index increased
from 35.9% in 2009 to 48.8% in 2019 (An, 2020). That's why at first Sakuko only sold items for
mothers and babies, later added 6 more sources to expand market share, serve the needs of
customers. Moreover, Vietnamese people are used to "Made in Japan" goods. Products from
Japan have been capturing the hearts of Vietnamese people with the impression of "Durable
Japanese goods". (Hung, 2016). When customers are really satisfied with the products of the
store, they not only buy regularly but also introduce to their relatives to buy product quality
(Vietnam Logistics Review, 2020).
According to Sharman et al. (2006), Asians are easily influenced by the price of a product.
Consumers are always comparing prices and alternatives. For young people, they are always
update trends, in the era of emerging KOLs review, they often access the referred link and most
are Shopee or Lazada (Anonymous, 2020). It is easy to see that Sakuko can only develop 2
platforms, offline and online at the same time to reach more customers. Nevertheless, Sakuko still
targets the audience with gender, age accounts for the largest number in large in the area.

b. The effect of Covid-19 on Sakuko process.

During the Covid-19 pandemic, customers could not go directly to the store to shopping, the
number of customers decreased significantly for weekdays (Sakuko, 2020). With foresight,
Sakuko quickly solved the logistics problem early on, working with many shipping lines to
book ships early, accepting prepayment of fees to ensure an uninterrupted supply of goods for
customers. Second, Sakuko can promote online shopping. Ms. Cao Thi Dung – CEO of Sakuko
Vietnam said: “The epidemic is also an opportunity for Sakuko to realize that the business itself
has received a lot of love from customers. Customers have actively asked, bought goods,
actively posted on groups, participated to support Sakuko's marketing.” Sakuko always strives
to satisfy diversified product industries, well meeting the needs of the epidemic season for
consumers. In particular, despite the increase in import costs, Sakuko did not increase retail

6
prices and implemented many promotional programs to join hands with consumers during
difficult times (Sakuko, 2021).
4. The roles and responsibilities of the marketing department in Sakuko Vietnam.
a. Branding
Brand is defined as the face and characteristics of the company that the marketing department
creates through images, ideas and activities. (Luenendonk, 2019).

In a large commercial market, Sakuko had to create a brand with its own identity and character.
This is the first supermarket chain in Vietnam specializing in supplying Japanese domestic goods,
meet the increasing needs of Vietnamese consumers. After 10 years in the Vietnamese market, it
has increased scale more than 30 stores. It can be said that Sakuko has successfully built a brand
when customers can easily recognize Sakuko through 15 signs such as Logo (with a square
symbol, Japanese text, cherry blossom petals), store decoration with two main colors are pink and
blue, invoices, bags, etc… (Sakuko, 2020)

b. Creating advertisement

Advertising is a series of actions or slogans that promote interaction to persuade customers to buy
a product (Terkan, nd). According to Kotler (2002, cited in Forlova 2014), advertising is purely
concerned with marketing functions whose ultimate aim is to satisfy consumers' expectations for
products and services.

Sakuko has two form of advertising: online on the website and offline in the market. Sakuko often
runs advertising on website or social media sites monthly during Grand Openings or discounts.
Besides, openings will have roadshows or sidewalk advertisements to attract many customers, or
messages are accompanied through product images for consumers can see the variety of goods.

7
 Figure 1: Advertisement activities of Sakuko. Figure was adopted from Sakuko
(2020)/ in Oct 2019.

c. Development sales promotion.

Promotions are measures to encourage consumers to buy goods. Promotions are used as a short-
term tactical tool to garner a response from customers and influence their purchasing behavior.
They can also be effective when launching new products in competitive markets and serve as an
incentive to promote trial (Hooley et al., 2005).

Sakuko has had 10 years of "standing" in the Vietnamese market, so they also want to create a
position in the hearts of customers. Due to understanding the personality of customers, Sakuko
has created many promotions in the year such as Promotion Month, Birthday Party, and Grand
Opening. These promotions have helped Sakuko attract a lot of customers and make them decide
to buy or not to buy a product faster. (Anonymous, 2020).

Figure 2: The sale promotions. Figure was adopted from Sakuko (2021)/ in Oct 2021

5. The influences and interrelates of marketing department with other departments in the
Sakuko.
a. Finance and Marketing Department.

Marketing strategy must contain crucial financial elements such as costs and profits of the brand,
product line, and marketing strategy expenditure budget (Daraban et al, 2012). Besides, the
marketing department works to boost the sale of company through marketing activities (Kotler et
al., 2006). Furthermore, there was some disagreement between the Finance and Marketing

8
departments since the Finance department want to decrease the price to make a profit, whilst the
Marketing department required more finances to create advertising. (Kotler & Armstrong, 2018).

Nevertheless, in Sakuko's case, to boost the company's revenue, the Marketing department
stepped up online marketing campaigns and traditional advertising (Brands Vietnam, n.d.). It
helped the Sakuko reach over 100.000 people, average monthly customers range from 30.000 to
40.000 people. (SakukoVietnam, 2019)

b. Marketing and Sales Department

After the marketing department provides for the customer the knowledge of the company through
advertising, the sales department responds to the specific request of the customer and offer
solutions specific to their needs (Atif, 2019).

In Sakuko's case, the company created many activities to make relationships between sales and
marketing. Sakuko staff will be trained and guided by marketing experts. During the working
process, the Marketing Department and Sales department will unite and contribute to increasing
the total revenue. (Sakuko, 2017).

II. BENCHMARKING ANALYSIS

1. New product of Sakuko Vietnam
In the current environmental situation, to reduce using of plastic or other wastes that can affect the
environment and health problems of people, Sakuko has launched a new food is "edible
mushrooms" (shiitake, mushroom straw, Ganoderma, ...) are packed in paper bags. Sakuko choose
mushrooms because they play an important role in the ecosystem, environmentally friendly; They
decompose organic matter and are indispensable in the metabolism and metabolism of substances
(Sinhhoc, 2018). According to Tuoitre Newspaper (2021) has an article: "Did you know:
Mushrooms can change the world?" In this article, the author shared the uses of mushrooms
including filtering dirty water, healing antibacterial, making biodegradable porous materials or
improving the environment by biological treatment, helping to break down bacteria, absorb
petroleum, pollutants, toxins, dyes and heavy metals. (Le, 2021).

9
 2. Evaluate marketing mix are used by BigC and Aeon
Because Sakuko Vietnam, Big C and Aeon are all operate in the retail sector, provide products for
customers. However, each supermarket has different core consumer-oriented values and
marketing strategies. Therefore, the analysis and comparison of the "reusable bags" – products are
environmentally friendly through Marketing mix strategy of Big C and Aeon.

a. Product

To support environmental protection, Big C supermarket system has launched a reusable bag
called "LOHAS" in March of 2009, The bag has a convenient design for transporting goods, blue
color, biodegradable, sturdy pineapple fabric and 2 size (large and small bags). The lifespan of a
Lohas bag is up to 1-2 years. (Binh, 2009).

Meanwhile, in 2019, Aeon launched the "AEON ECO environmental bag" made from PP fabric.
This bag has many advantages such as durable, thick material, good waterproof, can be reused
many times, environmentally friendly (Quang, 2019). AEON ECO Environmental Bag is
designed in big and small bag. It is more convenient for many customers with different quantities
of goods.

a. Price

The price of each type of bag is different because “Lohas bags” are made from pineapple fabric,
“AEON ECO bags” are woven from PP fabric. To be able to reach all types of customers, as well
as for all consumers to experience and join hands to protect the environment. The price of this bag
is very low, generally less than 10.000 VND. Specifically, "Lohas bags” are widely available at
all Big C supermarkets nationwide with prices: 4.500 VND for small bags and 6.100 VND for
large bags. (Big C, 2018). “AEON ECO bags” is a bit higher than “Lohas bag” at 6.900
VND/small bag and 8.900 VND/big bag. (AeonVietnam, 2019)

b. Place

Both supermarkets use a direct distribution channel that sells directly and online selling via
Shopee for "Lohas bags" and Lazada for " AEON ECO bags". For direct purchase, the “Lohas
bag” on display at the cashier counter and stalls. The " AEON ECO bag" is sold at General
Department Stores and the entire Aeon Vietnam system. Both bags carry the brand name and print
10
the supermarket's logo. It is easy to encounter fake goods with materials that pollute the
environment, so these bags are only sold in the supermarket system to ensure reputation and prove
that the business is making great efforts to support environmental protection.

c. Promotion

Advertisement:

Both use ways to advertise and promote sales such as using the most popular online advertising on
social networking platforms, websites and organize events to attract customers.

For example: In the event "choose your bag – choose to live healthy", AEON Vietnam donates
20.000 bags to all customers at 05 General Department Stores and Supermarkets of AEON
Vietnam from 21/12/2019 - 19/1/2020 to introduce the new environmental bag model AEON
ECO, encourage customers to use their bags to reduce plastic bags when shopping (Vu, 2019).

Promotion:

Both supermarkets carry out promotions to attract customers and fully reach customers. To
respond to Earth day, Big C selling with the original price, or give a new version of the Lohas bag
with a purchase bill from 800.000 VND and give a Lohas bag to protect the environment when
buying Big C on Now. (Kam.vn, n.d). For Aeon Mall, a bag design contest in collaboration with
Ho Chi Minh City University of Architecture attracted many students; or bring AEON ECO bags
to the event accompanying the Hanoi Department of Industry and Trade (19/12/2019), etc…
(Aeon, 2020)

d. Physical evidence

AEON Vietnam and Big C has become one of the enterprises implementing a total solution,
implemented synchronously from employees to customers, towards the goal of improving
everyone's health and protecting the living environment by building get in the habit of using your
bag when shopping. More than 500 environmental bags were also given to all staff at AEON - Hai
Phong, bags with eye-catching and smart designs, bringing convenience to consumers (Quang,
2019)

e. People
11
Employees at 2 supermarket chains are the pioneers of the campaign to use reusable bags. They
are used and widely promoted on social networking sites, giving experiences and feedback on the
convenience and friendliness of this bag with the environment. (Vu, 2019). Besides, there is also
a design department that offers diverse and changes over time to attract customers.

f. Process

According to Doi song Newspaper, "Lohas Bag" has been launched and given away for free to
users since 2007, but it was officially sold in 2009. (Minh, 2009). Nowadays, a green lifestyle and
environmental protection are quite popular, the application of Lohas bags - reusable,
environmentally friendly bags have received a positive response from consumers.
(Tainguyenvamoitruong, 2019).

Emerging from the competition in collaboration with the University of Architecture of Ho Chi
Minh City, it was completely inspired and developed from the work that won the first prize in the
design competition "Multipurpose design, community Attachment". "AEON ECO bag" has just
been introduced to the market in the last 2 years but has also received support from customers.
Maintaining quality and ensuring prestige up to now, the "AEON ECO bag" is still the most
useful solution for "AEON people" (Aeon, 2021).

3. Evaluate the success of marketing strategy of BigC and Aeon

For BigC, this is not considered successful marketing for a new product because they has tested
the consumer experience through giving it away for free, then opening it for sale. Leading to the
situation: friendly bags are not yet "friendly". The price of each Lohas bag is much lower than
original cost, but it is still not accepted because they think that plastic bags are free and
convenient (Minh,2009). Meanwhile, after 9 months, there have been more than 80.000 shopping
transactions using private bags at AEON supermarkets, increasing by 32% per month. These
numbers are the result of both AEON Vietnam's efforts and the cooperation of customers across
the country. (May, 2020). According to a representative of AEON Vietnam, after 8 months of
implementation, the project initially reduced the number of biodegradable bags in the whole
system by 21% thanks to the improvement of the packaging process (Ha, 2020).

12
 4. Approach and apply Marketing mix on new product of Sakuko.
Back to edible mushrooms of Sakuko - a new and eco-friendly food. To achieve revenue as well
as contribute to environmental protection, Sakuko needs clear marketing plans. Based on the
marketing strategies of Big C and Aeon when launching new products to the market. First,
Sakuko should not give it away free to customers to experience, so sales will be reduced and
customers will find alternative products if the selling price of Mushrooms is high. Second, Sakuko
should adapt to the market to change new ways of marketing such as slogans, packaging design or
price to target any customers. Finally, put products in places where customers can see them like
doors, cashier counters, etc… And employees need to practice skills to advise customers on new
products in the most optimal way.

13
 CONCLUSION

According to the AMA (2007, as cited in Marketing Principles N.d.), marketing is the process of
creating, communicating, delivering, and exchanging services of value to customers, partners, and
society as a whole. In Sakuko’s case, the company has carried out 4 activities to reach customers
and become the largest domestic Japanese supplier in Vietnam.

Meanwhile, the three main roles and responsibilities of Sakuko's Marketing Department are
Branding, Advertising and Sales Promotion. There are three regulations and responsibilities with
each specific task, but they all work towards the common goal of attracting customers and
creating a trust to serve them.

Besides, in the relationship with other departments in the company, Marketing Department is
especially linked with Finance department and sales department. In addition, Sakuko approached
BigC and Aeon's marketing strategy and applied several marketing methods when launching new
eco-friendly food.

14
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 APPENDIX

Figure 1: Advertisement activities of Sakuko. Figure was adopted from Sakuko

(2020)/ on Oct, 2019.

Figure 2: one of the sale promotions. Figure was adopted from Sakuko (2021)/ on Oct, 2021

18