Marketing communication strategy for co opmart supermarket

TRƯỜNG ĐẠI HỌC MỞ TP.HCM
UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL
HO CHI MINH CITY OPEN UNIVERSITY
Ho Chi Minh CityECONOMICS & MANAGEMENT
(2013)

MMA6

NGUYỄN NGỌC THẮNG - NGUYỄN LÊ THANH HÀ

MARKETING & COMMUNICATION STRATEGY
FOR CO.OPMART SUPERMARKET

MASTER PROJECT
MASTER IN MARKETING & ADVERTISING

Tutor’s name: SERGE BYWALSKI

asd………………
Ho Chi Minh City
(2013)


STATEMENT OF AUTHORSHIP
We undertake that
 We have spent time and made the best effort to work with information and
materials from Marketing department of SaiGon Co.op and our knownledge
gained from MMA course to finish this final project
 We hold a photocopy of this final project which can be produced if the original
is lost or damaged

 This final project is our origin work and no part of it has been copied from any
other student’s work or from any other source except where due
acknowledgement is made
 We have not previously submitted this work for any other course/ unit
 We give permission for our work to be scanned for electronic checking of
plagiarism


ACKNOWLEDGEMENT
We would like to express our great appreciation to organizations, companies, people
who have supported us during last periods in order to finish our final project.

Firstly, we would like to send our special thanks to Prof. Serge Bywalski, our tutor,
who had given us clear instructions on final project’s structure, constructive
feedbacks and comments for all phases in our final project. Therefore, we could
well comprehend our road map to conquer the destination. We also would like to
say thanks to Prof. Alain who has given us critical comments and motivation so that
we can improve the quality of our project.

Secondly, we are also thankful to Solvay - ULB, Economics and Management for
always supporting us with in-depth information, prompt feedback and
encouragement during the course.

Besides, I would also like to express our deep gratitude to Marketing department of
SaiGon Co.op company, especially Director, Vice Director who have spent time
and effort to discuss about the topics and equipped us with invaluable insights and
information to enrich the project’s content.

Thanks to this final project, we have had chance to apply knowledge gained from
MMA course into real life’s case; by which we could elevate our mindset and

execution in Marketing & Communication implementation. Therefore, this
accomplishment is not only the perfect end for an insightful MMA course but also a
brilliant start for our application into real working life. We really appreciate this
“An end that starts”!
Ho Chi Minh City, March, 2013
Nguyen Ngoc Thang (Mr.) - Nguyen Le Thanh Ha (Ms.)


CONTENTS
Contents

Pages
CHAPTER I

OVERVIEW OF CO.OPMART AND NEW BRAND LAUNCHING

I. CO.OPMART PORTFOLIO

1

II. OVERVIEW OF VIETNAMESE RETAIL INDUSTRY

2

III. CO.OPMART TIME FOR CHANGE – LAUNCHING
NEW BRAND

5

IV. CO.OPMART MARKETING & COMMUNICATION

STRATEGY

6

4.1. INTERNALLY

7

4.2. EXTERNALLY

7

CHAPTER II
INDEPTH ANALYSIS OF THE CAMPAIGN
“LAUNCHING CO.OPMART’S NEW BRAND”

I. INTERNALLY

9

1.1.

EVENTS

9

1.2.

COMMUNICATION TOOLS

11

1.3.

TRAINING, COACHING

11

1.4.

EMPLOYEE MOTIVATION

12

II. EXTERNALLY

13

2.1.

EVENTS

13

2.2.

COMMUNICATIONS

15

CHAPTER III
RECOMMENDATIONS FOR MARKETING & COMMUNICATION
STRATEGY FOR CO.OPMART BRAND

I. INTERNAL AND EXTERNAL AUDIENCE

22

1.1.

INTERNAL AUDIENCE

22

1.2.

EXTERNAL AUDIENCE

25

II. ONLINE AND OFFLINE TOOLS

27

III. IDENTITY-RELATED CONTENTS AND
VALUES/CULTURE-RELATED CONTENTS

28

3.1.

IDENTITY – RELATED CONTENTS

28

3.2.

VALUES/CULTURE-RELATED CONTENTS

28


LIST OF ABBREVIATION

SaiGon Co.op

: Saigon Union of Trading Cooperatives

GDP

: Gross Domestic Product

YOY

: Year of Years

HCM city

: Ho Chi Minh city

WTO

: World Trade Organization

PR

: Public Relations

POSM

: Point of Sales Material

TVC

: Television Commercial

LCD

: Liquid Crystal Display

CPD

: Cost per Duration

KPI

: Key Performance Indicative

CTR

: Click through Rate

PPC

: Pay per Click

CPC

: Cost per Click

HR

: Human Resource

CSR

: Corporate social responsibility


Page 1 of 29

CHAPTER I
OVERVIEW OF CO.OPMART AND NEW BRAND LAUNCHING
I. CO.OPMART’S PORTFOLIO
1.1 Key milestones of Saigon Co.op & Co.opmart
 Saigon Union of Trading Cooperatives (Saigon Co.op) – the governing body of
Co.opmart supermarket chain - was established on May 12, 1989
 In 1996, Saigon Co.op officially launched the first supermarket named
Co.opmart Cong Quynh in District 1, HCM City. In 1998, the retail business,

namely Co.opmart supermarket chain, has been defined to become key business
of Saigon Co.op
 After more than 16-year development, Co.opmart has become leading retailer in
Vietnam with 60 supermarkets nationwide
 Co.opmart has conquered many notable prizes/certificates in retail industry, both
internationally and domestically, including Top retailer in Vietnam & Top 500
Asia-Pacific Retailers during 9 consecutive years (2004 – 2012).
1.2 Vision
 Be the leading retail group in Vietnam by specializing in supermarket business
format and heading to other retailing ones based on market’s needs & wants
1.3 Mission
 Meet the target customers’ daily needs
 Strong commitment to deliver convenience, safety and additional values to
customer
 Contribute to enhance the quality of Vietnamese retail industry and Vietnamese
community & society as well
1.4 Business activities
1.4.1 Retail

50 Stores

125 Stores

125 Stores

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1.4.2 Some supporting activities for retail business
1.4.2.1 Private Brands
 Plentiful category
 Competitive price, always cheaper 3-20% than the price of leading
product in the same category
 In line with high manufacturing quality standards, both internationally
and domestically
1.4.2.2Logistics
 Two Distribution centers: 50.000m2
 Modern equipment
 Storing and distributing goods for the whole Co.opmart and Co.op Food
 Fresh production warehouse: 6.000 m2
1.4.2.3 Manufacturing: NAM DUONG SOYA SAUCE
COMPANY

1.4.2.4 Import
–
Export:
DISTRIBUTOR (SCD)

SAIGON

CO.OP

1.4.2.5 Investment & real estate: SAIGON CO.OP
INVESTMENT DEVELOPMENT
II. OVERVIEW OF VIETNAMESE RETAIL INDUSTRY
Vietnam is a developing country with over 80 million population in which
traditional market has accounted for over 80% market share in retail industry. In
2010 – 2012 period, Vietnamese economy in general and retail industry in

particular has been burdened by global economic crisis in which high inflation rate,
shrinking purchasing power, high inventory rate have been regarded as biggest
concerns towards retailers.

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Global economic crisis is coming back to Vietnam on top of a continuous inflation
burden
2010 vs 2009

2011 vs 2010

GDP Growth YOY

+6.8%

+5.9%

Inflation (Average YOY)

9.2%

18.6%

(Government Report)
Under these grey circumstances, industry leaders have been adjusted their
expectation and objectives accordingly. Consumers are expected to reduce purchase

of non-essentials and buy more on promotions.
Not buy some
'non-essentials'
Purchase more on
promotion
Trade down to
cheaper products
Buy bigger packs
to save money
Change channel to
save money
Purchase more
local/ Vietnamese
brands
Buy less / smaller
packs of the same
products
Trade up to more
premium/indulgent
products

71
53
41
35
29
24
18
12

Anticipation of retailers in terms
of
customers’
purchasing
behaviors in 2012
Source:
Nielsen
Barometer

Business

Despite of economic challenges, the untapped Modern Trade channel shows
one of the highest potential in Asia market. Vietnam, especially HCM city has been
still regarded as a vast opportunity for Modern trade channel development with just
717 modern trade stores in comparison with 8600 traditional wet markets.
To explore this potential market, some big global retailers has penetrated to
Vietnam in order to set up premises and seize future chances. Besides existing
international moguls like Big C, Metro, Lottemart and Vietnamese retailers such as
Citimart, Marximark; etc.; Vietnam are about to welcome new wave of strong
investment from other big retailers. E-Mart will start building the first store in 2012
and plan to open
at
least
52
supermarkets by
2020. Aeon will
establish JV with
Trung
Nguyen
Corporation

to
develop the chain
of
500
G7Ministop stores in

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the next 5 years. Dairy Farm has opened the 1st Giant supermarket and the 1st
Guardian store and plan for nationwide coverage in the next 5 years.

(Source: AC Nielsen Retail Census in 2011)
Besides, higher favor of consumer’s trends towards modern trade shopping
places compared to wet market is also a positive shift for retail industry in Vietnam.
Customers nowadays shop more frequently and spend more money per visit to
supermarkets.

(Source: AC Nielsen Retail Census in 2011)
Burdened by turbulent economic situation, encountered with tough competition
among big prestigious retailers, driven by advantageous trends toward modern trade
in retail industry and most importantly accelerated by changing customer’s
purchasing behaviors, Co.opmart supermarket chain has decided it’s high time to
upgrade itself , both in formality and contents, in order to overcome challenges and
to grab big opportunities ahead.

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III. CO.OPMART TIME FOR CHANGE - LAUNCHING NEW BRAND
3.1 Why change for now?
 Change to upgrade to new excellence level and contribute to accelerate the
whole Vietnamese retail industry
 Change to cope with new situation while Vietnamese retail industry has been
opened to big global players following WTO agreement, which result in fierce
competition in its homeland.
 Change to satisfy new needs & wants of changing customer generation
Co.opmart has always been faithful to its originally defined target customers –
family women from 20-50 years old with an aim to build strong, healthy
relationship with them. However, so far Co.opmart has perceived that 20-years old
customers in 2012 had change significantly compared with 20-years old customers
16 years ago. They have already grabbed with new desires, habits, interests,
purchasing & consuming behaviors. They no longer select a shopping place merely
because of “convinience/accesibility” or no longer go shopping just for family’s
needs. Now beside basic above needs, young customers also head for individual
desires, looking for innovation, breakthrough in products/services as well as
exciting shopping experiences. That’s why Co.opmart have to improve itself to stay
in strong touch with its target and potential customers.
3.2 Which changes?
Co.opmart has proceeded 3 year Change Plan, including renewal in apppearance
and improvement in operation content. Change plan will start with launching new
identity system (logo, slogan, supergraphic) throughout the chain nationwide; then
offer more product & added-value services to give customer WOW shopping
experience with Co.opmart.
Change Plan would focus on 2 sides: formality and content
3.2.1 Content - Brand drivers: Radiated from the belief that Co.opmart have to

deliver wholehearted service that bring satisfaction, benefits and meaningful
rewards,…
The brand drivers include following components:


Brand driver: Rewarding relationships driven by dedication



Brand promises: With dedication and a deep understanding of our
customers, we deliver wholehearted service that brings them satisfaction,
benefits and meaningful rewards. Through that we foster long-lasting and
rewarding relationships with our customers and stakeholders as we
continuously reinvent and enhance our service offerings oriented to the
needs of the community and its people



Brand personality: Confident | Positive | Lively | Engaging | Loyal

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

Brand beliefs: Passionate dedication
Progressiveness | Community oriented

|

Continuous

reinvention

|

3.2.2 Formality - Visual identity components: A new logo that symbolizes the
refreshing idea driven by Co.opmart’s passionate dedication; which include Brand
identity | Colours | Typeface | Supergraphic | Photography style

Supergraphics with a refreshing look and feel that represents a symbol of
growth – a business with a growing momentum, a growing passion to reinvent, and
a growing relationship between Co.opmart and the customers.
IV. CO.OPMART MARKETING & COMMUNICATION STRATEGY
Co.opmart new brand has been officially introduced to the market in June
2012 – which just the very first beginning of a long journey to conquer mind, soul
and heart of more demanding customer generation. In order to pursue the utmost

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mission which is to build and sustain “Rewarding relationships driven by
dedication” with customer & community, Co.opmart have to build an indepth
marketing communication strategy for successful long-term Brand innovation in
terms of formality and contents, namely:
 Formality: develop strong Brand awareness of new Corporate Identity System

 Contents: creating excellent customer experience & satisfaction
This plan need to cultivate both internal & external resources so as to
successfully convey the big message to customers and community.
4.1 Internally, we have perceived that long term sustainable competitive advantage
comes form brand and the people who work for it; that’s why we have to carry out
“Brand Engagement” marketing & communication plan to make the most of our
11,000 staffs’ strength to get them deliver and drive our brand experience; namely
we aim to turn each employee into our excellent Brand Ambassador.
 Events: organize events to inspire the Board and all staff with the new Brand
 Communication tools: compose/design a lot of interesting messenger to convey
new message to the whole employee
 Training, coaching: regarded as key engine to drive organization forward
sustainably
 training about new Brand values, spirit for the whole staff
 training about new Brand concept in relation with customer care services for
marketing leaders team
 training about concept Brand Champion for supermarket directors
 Employee motivation: a crucial tool to turn each staff into a strong Brand
Ambassadors
 To conduct Secret Customer program to self-reflect employee attitude in the
context of new brand values
 “Lets Co.op” program is to coordinate leaders, directors to experience
working at every daily jobs in supermarket nationwide; which has been
accelerating great excitement among staff
 Organize many interesting contests to give chances for creative applications
of new Brand into real working life, including launching “Co.opmart Smile”
movement, New brand decoration contest or funny cheering contest
4.2 Externally, we shall proceed long term marketing communication plan to
assure that our target and potential customers to “know, get interested, burn desire
and take action” towards our brand in terms of online & offline interaction; which

aim to create satisfaction and excellent experience for customer to shop with us.

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 Events: to officially announce new brand to the pubic
 Communications
 Press conference and PR activities
 Launching of new website with many relevant, exciting contents,
applications for users www.co-opmart.com.vn
 Digital marketing with high coverage and conversion rate all over online
channel such as web banners, Google adwords, Facebook ads/cover booking;
Influencers; Forum seeding; Clip viral; etc.
Build Facebook Fanpage Co.opmart to become House of Modern Eva with
various contents, contest, applications to invite and engage Fan in interacting
with the brand www.facebook.com/hethongcoopmartvn
 Make the most of POSM at supermarket to impress customer with new brand
applications: logo symbol photo corner, balloon, wrapping paper, uniform, etc.
 Products
 Build brand positioning strategy for Co.opmart’s label brand – potential
brand messenger in the near future
 Promotional events: beside 4 key annual promotional events, Co.opmart has
introduced a big Promotion event for New Brand Launching

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CHAPTER II
INDEPTH ANALYSIS OF THE CAMPAIGN
“LAUNCHING CO.OPMART’S NEW BRAND”
The key drivers of this Brand Repositioning Plan is Change Management and
Culture Rebuilding; in which Change initiatives must be seeded consistently from
internal to external.
I. Internally, with an aim to get people to deliver the brand experience in “Brand
engagement” approach, we have to inspire them, not just declare, passionate belief
in the brand promise so that they can align these values to their decision making and
behaviors. In the first 6 months, Co.opmart has deployed some key activities to step
by step get our people accustomed to new brand components.
1.1 Events: Co.opmart organized a series of launching events to announce new
brand to all corporate levels
1.1.1 We organized 6 New Brand conferences for whole level of Co.opmart’s
employee ranging from Executive Board, store directors/managers; department
managers; officers to shop floor staffs.
In each conference, we create many conversations about how to make the brand
live for ourselves and for the customers. Robust dialogues have been circled
throughout the whole organization to inject new brand vaccine to the staff.
Everybody has been got involved in defining existing problems; imagining
“Co.opmart in your dreams” and committing themselves to Brand implementation
at all levels.

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1.1.2 When each store manager has comprehended new brand; they would come

back to their own store and organize an Internal Introduction Ceremony to their
floor shop staff; who played the most crucial role in conveying brand messages
because of their close and direct contact with customers.

1.1.3 On 21 June, we organized an official Internal launching event witnessed by
300 key members including Executive Board, directors/managers of all stores and
departments; who are defined as key engines to drive the whole Brand plan forward.
They have been rewarded with “Brand Champion” flag at the start line with an
aim to encourage them to proactively lead their team, their store to conquer Brand
laurel wreath.

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1.2 Communication tools: compose/design a lot of interesting messenger to
convey new message to the whole employee
 Composing a new Co.opmart song – apply this new song into every
communication sound channel such as mobile phone ringtone, cheering song,
internal radio system, corporate TVC airing on LCD system in supermarkets
 Shooting an emotional short film to viral internally named “Co.opmart –
Voyage of Dream”
 Design 2 types of inspiring Brand handbooks for leaders and employee named
“Passionate dedication”

 Respectfully hand each staff a passionate letter from Chairman to inspire
everybody with new message. The key driver of these Change management and
Culture rebuilding is the whole staff’s commitment and performance; therefore to
make them know, love and act is one of the most challenging and decisive missions.

 Equipped each staff with whole new appearance including uniform, helmet,
raincoat, name card – the most visible changes to create excitement among the
whole staff from the beginning
1.3 Training, coaching: regarded as a key engine to drive organization forward
sustainably
 Training about new Brand values, spirit for the whole staff

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 Training about new Brand concept in relation with customer care services for
marketing leaders team
 Training about concept Brand Champion for supermarket directors
1.4 Employee motivation: a crucial tool to turn each staff into a strong Brand
Ambassadors
1.4.1 To conduct Secret Customer program at every stores to examine employee
attitude as well as to assess customer satisfaction. All the results have been
collected, analyzed to orient people strategy according to new brand values
1.4.2 “Lets Co.op” program is to coordinate leaders, directors to experience
working at every daily job in stores throughout the system; which not only has been
accelerating great excitement among staff but also helped senior leaders
comprehend constantly changing real working environment and conditions of
employee; from which design appropriate strategic policies.

1.4.3 Organize many interesting internal activation activities/movements to give
chances for creative applications of new brand into real working life, including
launching “Co.opmart Smile” movement to encourage floor shop to express brand

value of “passionate dedication” in a very simple way of “wholehearted smile”
when serving customers.
1.4.4 Office decoration contest with brand materials was also an interesting
activity in which every staff/department had chances to get accustomed to new
images and freely fly with their immense imagination and borderless creativity.

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II. Externally, we shall proceed long term marketing communication plan to assure
that our target and potential customers to “know, get interested, burn desire and take
action” towards our brand in terms of online & offline interaction; which aim to
create satisfaction and excellent experience for customer to shop with us.
2.1 Events: to officially announce new brand to the pubic
2.1.1 On 27 June, Co.opmart organized official Launching Ceremony to the public,
which marked a great milestone after 16 years of establishment and development.

2.1.2 Opening 3 new supermarkets in Hochiminh, Camau and Haiphong in
accordance with new Corporate identity system.

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2.1.3 New brand’s colors and supergraphic has covered throughout new stores
with shelves decoration, staff uniform, product and services and most importantly
with excitement in store’s spirit.

2.1.4 Make the most of in-store POSM to impress customer with new brand
concept and applications: logo symbol photo corner, balloon, wrapping paper,
uniform,…

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2.1.5 New brand image has been also consistently applied to promotional
campaigns’ design concept; for example in “Proud of Vietnamese Goods” and
“Vietnamese Tet: Connecting people” promotion campaigns.

2.2 Communications
2.2.1 Press conference and PR activities: In coherence with Launching
Ceremony, Co.opmart had covered information about new brand many print and
online newspaper, magazines such as Thanhnien, Tuoitre, Nguoilaodong, Saigon
Times, Vnexpress, 24h, Saigon Giaiphong, etc. Each column explored different
angels about new brand from image to content; from internal effects to external
improvement.

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2.2.2 Launching of new website www.co-opmart.com.vn

In accordance with Launching Ceremony, Co.opmart officially launch new

website www.co-opmart.com.vn on June 27 with various features to serve online
customers in searching information about the company, looking for nearest store,
catching latest discount information, keeping track on promotional campaign,
control personal account online; etc. Both interface and functionality of new
website are structured in a friendly-user, effective manner.
2.2.3 Digital marketing initiative
Externally, one of the most Co.opmart’s remarkable breakthrough during the 6
first months is to apply Digital marketing into our marketing tool kit. This
movement has been regarded as a crucial progress in terms of both strategic mindset
and marketing execution of Co.opmart; which is a typical Vietnamese state-owned
corporation with some ordinarily negative traits such as “rigid”, “old-fashioned”,
“out-dated”; etc. That’s why Co.opmart’s penetration into cyber world has
expressed a strong commitment to bring new Brand values to real business life.

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In line with the external launching ceremony on June 27, Co.opmart has
accordingly deployed a digital marketing campaign to spread out loud words about
the new corporate images and values of Co.opmart in the online community. The
campaign had exploited key online channels with favorable results such as:
2.2.3.1Banner ads on some most crowded websites: Co.opmart has experienced
booking banner slots by CPD (Cost Per Duration approaches) on both mass and
female-oriented websites.
With mass top websites like mp3.zing.vn; tuoitre.com.vn; dantri.com.vn;…
Co.opmart ads had earned a more considerable Impressions (the number of times
your banner has been shown by the websites) compared with the same KPI of
female-oriented websites like eva.vn; phununet.com; afamily.vn; phunutoday.vn;…

However; these female-oriented websites’ CTR (Click Through Rate – what
percentage of Impression result on Clicks) were much more higher; which has
expressed that Co.opmart’s message had effectively attracted attention from its
target customers.

2.2.3.2Google search engine ads: Selected key words were divided into 3 groups
including Industry (retail); Brand (Co.opmart) and Rivals (Big C, Metro,…)
According to the campaign’s PPC (Google Pay Per Click) result, Co.opmart’s
Google ads had collected more than 30,000 clicks during 1 month; in which most
came from searches related to Industry and Brand (more than 12,000 click/group).
Especially, CTR of Brand searches were high (26.45% for Brand) while CPC were
comparatively low; which expressed that Co.opmart has gained quite positive Brand
awareness in customers’ mind.

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2.2.3.3 Forum seeding: seed information about the new brand all over big forums
in 2 approaches

- Seed deeply: focus on 2 Vietnamese biggest female forums including
webtretho and lamchame; in which we create various topics about Co.opmart
such as “why & what changes”, brand image, brand values, product and
services quality, etc. Especially, these forums have the same target users with
Co.opmart’s target customers, who are female, 18 – 45 years old, middle class,
interested in taking good care of their families.
Furthermore, Co.opmart had worked closely with about 20 key influencers
on these forums, who have high credibility and affection towards online

community, to spread reliable words about our new brand.
By these controlled “natural” conversations, Co.opmart has gradually
injected key messages into their target customers’ mind. Various topics about
Co.opmart have withdrawn over 115,000 views and created about 500
interesting comments. At the same time, forum seeding also facilitate longterm online storage when users acquire references later on.
- Seed massively: scatter information on more than 60 forums ranging all over
content categories and users’ profile in order to declare broadly about
“launching” message.
2.2.3.4 Facebook sponsored stories: Co.opmart had implemented Facebooks ads
to target Facebookers at 3 big cities where 3 Co.opmart new brand conceptual stores
had been launched including Hochiminh, Haiphong and Camau City. At the end of
advertising campaign, Co.opmart gained over 20 million Impressions, 15,000
Clicks with a quite low CPC (Cost Per Click). Both index had significantly
exceeded initial KPI as shown in below charts:

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2.2.3.5 Build Co.opmart Facebook Fanpage
Besides Digital Marketing & Communication implementation in line with new
brand values, one of the Co.opmart’s biggest online improvement is to build up
Co.opmart Facebook Fanpage with an aim to accelerate Brand engagement with
social community and online citizens, who are now have been acting as
Co.opmart’s both potential and target customers.
Co.opmart Fanpage has earned positive results that is nearly 40,000 fans after 5
month of operation with “Talking about this” rate accounted more than 60%
the total number of fan; in which more than 80% fans are female with 47% in 18-24
years old and 21% in 25-34 years old; which is matching target audience of

Co.opmart shopping customers.

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