Ineffective marketing strategy at ABC WATCH – x company limited

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Huynh Nhu

INEFFECTIVE MARKETING
STRATEGY AT ABC WATCH
– X COMPANY LIMITED

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2020


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Huynh Nhu

INEFFECTIVE MARKETING STRATEGY
AT ABC WATCH
- X COMPANY LIMITED
MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR. NGUYEN PHONG NGUYEN

Ho Chi Minh City – Year 2020

TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................................ 1
PART 1 - BACKGROUND INFORMATION ............................................................................... 1
1.1 Company background ........................................................................................................... 1
1.1.1 History of establishment and development .................................................................... 1
1.1.2 The mission of the company........................................................................................... 1
1.1.3 Internal structure ............................................................................................................. 2
1.1.4 Distribution ..................................................................................................................... 3
1.1.5 Stakeholders.................................................................................................................... 3
1.1.6 Current development and market analysis ...................................................................... 3
1.1.7 Company positioning & Target customers ..................................................................... 4
1.2 Symptoms .............................................................................................................................. 6
1.2.1 Sales revenue in 2019 did not reach the target ............................................................... 6
1.2.2 Low brand awareness & market share ............................................................................ 7
1.2.3 High days of inventory ................................................................................................. 10
1.3 Initial cause-effect map ....................................................................................................... 11
1.4 Updated cause-effect map ................................................................................................... 19
1.5 Problem Validation ............................................................................................................. 22
PART 2 - PROBLEM JUSTIFICATION ..................................................................................... 25
2.1 Problem definition ............................................................................................................... 25
2.1.1 Definition of marketing mix strategy ........................................................................... 25
2.1.2 Method to measure the effectiveness of marketing mix strategy ................................. 27
2.1.3 Current marketing mix strategy at ABC WATCH ....................................................... 27


2.2 Problem existence ............................................................................................................... 30
2.3 Problem importance ............................................................................................................ 34
PART 3 - CAUSES VALIDATION AND SOLUTIONS ............................................................ 35
3.1 Causes validation................................................................................................................. 35

3.1.1 List of real causes from literature reviews .................................................................... 35
3.1.2 List of real causes via company interview.................................................................... 40
3.1.3 Causes validation .......................................................................................................... 42
3.2 The set of solution ............................................................................................................... 44
3.2.1 Design requirements ..................................................................................................... 44
3.2.2 The Designed inputs ..................................................................................................... 45
3.2.3 Potential Solution ......................................................................................................... 45
3.2.4 Solution validation........................................................................................................ 55
3.2.5 Organization of action .................................................................................................. 57
CONCLUSION ............................................................................................................................. 61
REFERENCES ............................................................................................................................. 62
APPENDIX ................................................................................................................................... 65


LIST OF TABLES
Table 1.1 : Sale revenue in 2019 of ABC WATCH ...................................................................... 6
Table 1.2 KPI rating system of ABC Corporation ......................................................................... 7
Table 1.3 Number of ABC WATCH customers in 2018 – 2019 ................................................... 9
Table 1.4 Interviewees for initial cause-effect map ..................................................................... 11
Table 1.5 Revenue from online and offline in 2019 .................................................................... 15
Table 1.6 Participant in the second in-depth interview in 2019 .................................................. 21
Table 1.7 The achievement in customer relationship management in 2019 ................................ 23
Table 2.1 ABC WATCH's digital marketing activities in 2019 .................................................. 29
Table 2.2 Trade promotion in 2019 of ABC WATCH ................................................................ 30
Table 2.3 Marketing budget allocation in 2019 ........................................................................... 31
Table 2.4 Trading promotion costs in 2019 ................................................................................. 32
Table 3.1 List of real causes from literature ................................................................................ 39
Table 3.2 Interviewee for a possible cause .................................................................................. 40
Table 3.3 Group of real causes from the literature review .......................................................... 42
Table 3.4 Interviewee for causes validation ................................................................................ 42

Table 3.5 Causes Evaluate from interviewees ............................................................................. 42
Table 3.6 . Interviewee for solution validation ............................................................................ 55
Table 3.7 Solution Evaluate from interviewees ........................................................................... 56


LIST OF FIGURES
Figure 1.1 The internal structure of ABC WATCH ....................................................................... 2
Figure 1.2 The percentage of customer buying watch in 2019 ...................................................... 8
Figure 1.3 Market share of ABC WATCH in 2019 ....................................................................... 9
Figure 1.4 Inventory days in 2019 of ABC WATCH .................................................................. 10
Figure 1.5 Detail inventory days more than 220 days at ABC WATCH .................................... 10
Figure 1.6 Initial cause-effect map .............................................................................................. 12
Figure 1.6 Contribution by brands at ABC WATCH in 2019 ..................................................... 16
Figure 1.7 The average ticket size of ABC WATCH in 2019 ..................................................... 16
Figure 1.8 Price of watches counting by items sold in 2019 ....................................................... 17
Figure 1.9 Updated cause-effect map .......................................................................................... 21
Figure 1.10 NPS Benchmark in the retail industry ...................................................................... 23
Figure 1.11 The expansion plan of ABC WATCH in 2020 ...................................................... 24
Figure 2.2 Marketing Budget by Industry in 2016 ...................................................................... 30
Figure 2.3 The behavior of users about watch retail in 2019...................................................... 32
Figure 2.4 Revenue by promotion in 2019 .................................................................................. 33
Figure 2.5 Revenue by detail each promotion ............................................................................. 33
Figure 2.6 Revenue report in 2019 .............................................................................................. 35
Figure 3.1 Final causes-effect map ............................................................................................. 44
Figure 3.2 Potential Solution Map ............................................................................................... 45


APPENDIX
1.First interview: Initial cause-effect map .................................................................................. 64
2.Second interview: Updated caused-effect map ......................................................................... 68

3.Third interview: Possible Causes and Solution ........................................................................ 70
4.Fourth interview: Solution Validation ...................................................................................... 74


EXECUTIVE SUMMARY

ABC WATCH has been officially established and entered the watch-retailer industry
with a high potential of consumption for more than one year. ABC WATCH chose a strategy to
compete directly with large businesses, with leading market share and expanded on a large scale.
However, the annual achievement was bitterly disappointed in 2019. Typically,
unexpected revenue did not reach the initial target, brand awareness and market share remained
relatively low. A research was carried out to identify current market nature as well as internal
senior employees’s experiences. According to collected and available data, the Ineffective
Marketing Mix Strategy is analyzed as the main problem leading to the unsuccessful
performance of ABC WATCH. After some direct interviews with employees combined with
academic research, Promotional Mix, a tool in Marketing Mix, has been concluded that it was
implemented in the wrong direction in comparison to the business strategy.
Some solutions have already been proposed to cope with this problem; simultaneously,
analysis of cost and subsequent advantages are in process. The ultimate solution is Display
Offline Media Advertisements at all stores of ABC company to gain awareness and promote
sales of watches.
Besides, an execution plan including detailed tasks, timeline, cost, and personnel is
presented, contributing to deal with the company’s problem at present.


ACKNOWLEDGMENT

First of all, I would like to convey my deep gratitude as well as my sincere thanks to my
lecture Dr. Nguyen Phong Nguyen. With the enthusiastic guidance, dedication, and
responsibility of the teacher, I have successfully completed my thesis. I am also grateful to ISB

institutes and all teachers throughout the learning process. It is the knowledge and new methods
gained from the learning process at the school that is important luggage to help me complete this
research.
Moreover, I would like to send my special thanks to my colleagues, friends, family for
helping and making valuable contributions during the completion of this thesis.
Yours sincerely!


PART 1 - BACKGROUND INFORMATION
1.1 Company background
1.1.1 History of establishment and development
ABC WATCH is the brand of X Company Limited (X Company), which is a subsidiary of ABC
Jewelry Joint Stock Company (ABC).
Over 30 years of establishment and development in Vietnam market, ABC has become the
leading company within manufacturing and retailing Jewelry industry, with products made from
Jewelry, silver, and gemstones. ABC products are increasingly favored by countries in Asian and
European markets. Currently, ABC Company has nearly 6000 employees with a wholesale
system, and more than 300 retailing stores spreading across the country. In 2010, ABC Jewelry
Company became the official distributor of many famous watch brands in the world, such as
Longines, Tissot, Citizen, Michael Kors... Recognizing the potential for development and
outreach of the watch market, in April 2018, X Company Limited was officially established with
the operation of the ABC Watch store chain the Omni Channel business model.
After more than a year in operation, ABC WATCH has been presented nationwide with 25
stores, distributing big brands such as Longines, Tissot, Citizen, Casio Gucci, Fossil, Michael
Kors, Kate Spade ... In which, the company is the exclusive distributor of 4 popular brands in the
watch industry: Anonimo, Silvana, Jowissa, and Lancaster.
To bring the best experience to customers, X Company has applied the Omni Channel sales
model. More specifically, the sales system both in stores and on e-commerce platform is a
unified block, firmly and closely related. Despite using any distribution channel, ranging from
stores to online platform on the computer or phone customers are always properly consulted and

have the best shopping experience. This is also a platform to help X Company create solid and
intimate relationships with its customers.
1.1.2 The mission of the company
ABC WATCH prioritizes customer satisfaction as the core value and also the guideline of the
future. As such a purpose, ABC WATCH’s team always tries to complete with the desire to
bring the best experience for customers. Interacting with customers and building sustainable

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values are also the necessary foundations that X Company built in the harsh race of the watch
market.
Our 2023 vision is that ABC WATCH (X Company) has successfully become an OMNI retail
operator of watches & accessories with 100+ stores across nationwide, achieving annual sales of
200 billion VNĐ.
1.1.3 Internal structure

Figure 1.1 The internal structure of ABC WATCH
ABC WATCH's organizational structure is divided into six main departments:
1. Merchandizing and branding which are in charge of purchasing, displaying goods at the
store and brand image of watch’s brands as well as ABC WATCH brand.
2. Omni Channel Sale responsible for sales, site searching, store opening, sales, and aftersales activities throughout the business system.
3. Omni Channel Solution which is in charge of developing and supporting business
activities, including digital marketing, partnership, creative and technology departments
to implement activities to increase traffic and boost sales.
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4. Operation Direct which is in charge of managing the operation of the company,
transporting goods among stores and deploying and in charge of internal processes,

helping all departments operate effectively.
5. Human Resource which is responsible for recruiting and internal policies for employees
6. Finance which is responsible for financing activities.
Each department is divided into specialized levels, ensuring the productivity for all employees.
The total number of employees, including in-store sales staffs, currently, is more than 100
employees, which demonstrates strong internal personnel resources to help the company grow
and compete with previous competitors.
1.1.4 Distribution
Currently, ABC WATCH has 25 stores in 10 provinces and cities across the country, mainly
concentrated in Ho Chi Minh City. ABC WATCH follows three store concepts: Independent
store: only watches (1); Shop in the shop: a watches area in ABC Jewelry store (23); Shop in
Mall: watches are in ABC Jewelry store in the mall (1).
1.1.5 Stakeholders
Supplier: Supplier is the most critical factor at ABC WATCH to ensure a sufficient and diverse
source of goods for long-term development plan.


Exclusive: Direct watch manufacturing companies



Non-Exclusive: Suppliers in Vietnam

Partner: ABC Jewelry Company (ABC): coordinates closely with ABC Jewelry in the fields as
finance capital, shops opening, team management, information cooperation between the two
parties.
1.1.6 Current development and market analysis
Vietnam watch market has a tremendous potential growth (nearly 750 million USD according to
ABC research published in 2018), and it is very fragmented as there is no store chain reaching a
portion of more than 20% in market share. The available demand for genuine watches at

reasonable prices is very high. Taking advantage of this opportunity, ABC has entered this
potential market. In 2018, this business segment of ABC earned revenue of nearly VND27
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billion, gaining 18% YoY. Although ABC has started to sell watches since 2012, the revenue of
watch segment still accounts for a tiny proportion of the total revenue, with integrated watch
counters inside some ABC Jewelry stores. In 2019, ABC started to focus more on watch segment
with the establishment of the X subsidiary and launched the first specialized watch shop. ABC
WATCH also works step by step with existing brands to distribute products directly to
consumers, instead of through agents. ABC WATCH’s price range from over VND2 million to
VND84 million,providing many choices for customers from mid-end to high-end products.
1.1.7 Company positioning & Target customers
Current brand
ABC watch currently distributes 21 brands:
1. Exclusive brands which are exclusively distributed in the Vietnam market, only at ABC
WATCH: Anonimo, Jowissa, Lancaster, Silvana.
2. The non-exclusive brands which are imported from suppliers in Vietnam: Casio, Citizen, CK,
Daniel Wellington, Emporio, Armani, Fossil, Gucci, Hamilton, Kate Spade, Longines,
Michael Kors, MVMT, Orient, Skagen, Tissot, Titoni
Target Customers
General segmentation for ABC WATCH:
- 70% females, 30% males
- Have interest in fashion, Jewelry, beauty, building their own image, which associated with the
parent company's customer file.
- Middle to high income level
The specific target customers for Exclusive Brand:
- Customers are looking for high quality, Swiss-made watches made entirely of Swiss-made
design, assembly, and movement.
- Hit the middle and high-end customer segment

4


Positioning
Building successful positioning strategy of ABC WATCH: “The most diverse options, the
easiest and most convenient Omni experience.”
Direct competitors: Đồng Hồ Hải Triều - businesses have the largest market share in the market
with similar target customer files and other watch retailers such as Đăng Quang, Thế giới di
động, Galle Watch…
In-direct competitors: individuals who sell watch online, and hand-carried goods.
Competitive advantage
⁻

The trademark is protected by the parent company

⁻

Take advantage of the parent company from customers database to the store distribution.

⁻

Differentiated merchandising.

⁻

Innovative technology: Omni-channel business model with customer centricity mindset.

⁻

Employee centricity: Having a customer-centric culture, we understand that we need to
start with a culture of employee centricity. Our philosophy is that a happy employee will
make customers happy, and an unsatisfied employee will make customers dissatisfied.

Core value
Wide range of choice:
21 brands: Exclusive and Non-exclusive
Ready to meet many customer segments: adults, teenager, children
Wide price segment: 1.5mil – 200mil
Best customer experience:
The most accessible and most convenient Omni experience
Rightly consulting according to customers' needs
Best warranty-maintenance
Different added service
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1.2 Symptoms
1.2.1 Sales revenue in 2019 did not reach the target
The most considerable concern of ABC WATCH in 2019 is the revenue of the whole company
did not reach the sale target, which was set by ABC Group at the beginning of the year.
Among the KPI factors that ABC Group brings down to its member companies, the ratio of
revenue and profit occupies a significant proportion. Specifically, in 2019, ABC WATCH's
revenue reached VND80,726,028,815 in comparison with the targeted revenue at
VND120,000,000,000, reaching 67% of the KPI (Key Performance Indicators).
Actual Revenue (VND)

Sale Target (VND)

KPI achievement

Exclusive

9,189,134,897

15,000,000,000

61%

Non- exclusive

71,536,893,918

105,000,000,000

68%

Total

80,726,028,815

120,000,000,000

67%

Table 1.1: Sale revenue in 2019 of ABC WATCH
KPI criteria are set based on the suggestion of each department based on SMART criteria. After
that, the board management will make the appropriate adjustments and give the final KPI.
S - Specific: Specific goals
M - Measurable: Measurable goals

A - Attainable: The goal is achievable
R - Relevant: Realistic target
T - Timebound: Target with specific deadline
 Symptoms importance:
The KPI rating system of ABC Corporation was designed for ABC WATCH. The financial
index accounts for the most significant weight of 50%; in detail, the revenue indicator accounts
for 35%. The assessment scale consists of 5 levels: Incomplete, Need to put more effort,
Complete, Successfully completed, Excellent. In 2019, ABC WATCH's revenue made up 67%.
This led to the evaluation results of the entire ABC WATCH in 2019, only achieving the
performance "Need to put more effort.”

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Table 1.2 KPI rating system of ABC Corporation
Aspects

Finance

Customer

Operation

List of KPI

Proportion

Company revenue in 2019

30%

Gross profit

10%

Inventory days

10%

Customer experiences SCORE: ONLINE & STORES

10%

Product differentiation

5%

New customers

5%

Complete

business

processes/policies

related

to

20%

department
Human

Recruitment and staff development

5%

Company culture and policy

5%

resource
development

Failure to achieve the KPI leads to many difficulties in considering the budget for the next year,
as well as all expansion and development plan that must be reconsidered. Besides, the
remuneration for employees of the entire ABC WATCH depends heavily on this revenue target.
1.2.2 Low brand awareness & market share
Most ABC WATCH stores are in the form of Shop in Shop (SIS), located inside ABC Jewelry
stores. The most accessible customers are Jewelry’s buyers. However, this target group has not
been developed well.
At the ABC store that has sold watches, the number of customers who buy watches only
accounts for 5% of the total ABC Jewelry customers. Besides, when calculating the whole
system (including stores not yet sold watches), the number of watches purchased is still lower,
only 1%. This shows that, in order to improve market share, ABC WATCH needs to exploit this
potential group better.

7


Figure 1.2 The percentage of customer buying watch in 2019

Last but not least, a company survey was done in 6/2019 about brand awareness of customers
about ABC WATCH. There are 70% of participants who do not know about the ABC WATCH
brand and its selling product service. Most of them think that “Does ABC sell watches?” or
“ABC watches are made by ABC themselves and made of Gold and Silver?” The sales model
creates favorable conditions for approaching customers but also makes it challenging to build a
distinctive brand identity.
 Symptoms importance
According to a study published by ABC Jewelry Joint Stock Company (ABC) in 2018, the
market for wristwatches in Vietnam was worth nearly 750 million USD, equivalent to about
17,000 billion VND. In the "cake" of more than 17,000 billion, currently, there is no particular
distributor identified as "giants" with a proportion of market share excessing 20%. ABC after
testing and entering this market by established a subsidiary and introduced ABC WATCH to the
watch market.

8


Market share
3%
Thế giới di động
Hải Triều

17%

Galle Watch

36%

PNJ Watch
ABC
14%

Đồng hồ Duy Anh
Tân Tân Watch

9%
7%

10%

Đồng hồ Thành Phát

4%

Khác

Figure 1.3 Market share of ABC WATCH in 2019
According to the market research of company in 2018, almost 75 percent of the market share was
dominated by seven brands (Thế giới di động, Hải Triều, Galle Watch, ABC WATCH, Đồng hồ
Duy Anh, Tân Tân Watch, Đồng hồ Thành Phát) and over 36 percent of the market share was
held by small individual retailers and other groups. Hải Triều and Galle Watch have been
considered as two brands holding the most significant proportion in 2018. In comparison, when
ABC WATCH was established, it solely possessed 4 percent of market share, which is an
insignificant proportion and only owned more than Thế giới di động 1 percent of market share.
According to O'Shannassy (1), the strategic theory of the organization efficiency is

fundamentally evaluated basing on strategic targets (e.g., ‘market share, product quality, growth
of sales, sales proportion of new products’) and financial efficacy (e.g., ‘return on properties,
return on revenue, company’s shares’). Thus, market share also has a more significant impact on
the growth of revenue of ABC WATCH.

Number of ABC WATCH customers

2018

2019

% growth

8,145

13,573

60%

Table 1.3 Number of ABC WATCH customers in 2018 - 2019
Base on the statistics about the annual number of ABC WATCH customers, it can be seen that
the number of customers in a year of development is not superior, only increases 60% comparing
9


to of 2018. This creates a problem with the effectiveness of marketing campaigns to build brand
awareness to attract new customers and gain market share.
1.2.3 High days of inventory
According to KPI, the average days of stock for ABC WATCH were 120 days. However, the
average number of total goods in 2019 reached 180 days.

Inventory days in 2019
35%
30%
25%
20%
15%
10%
5%
0%
<= 30 days

31 - 60
days

61 - 90
days

91 - 120
days

120 - 180 180 - 220 > 220 days
days
days

Figure 1.4 Inventory days in 2019 of ABC WATCH
Throughout the General report of the company in 11/2019, the duration of inventory goods in the
180-220-day category accounted for the most substantial proportion at 32 percent in the whole
company. In addition, 24 percent of models over 220 days have fallen out of fashion for a long
time, so customers lost favor with them, which became hard to sell.

lnventory day more than 220 days

Figure 1.5 Detail inventory days more than 220 days at ABC WATCH
As a breakdown of data for separate brands, the number of inventory goods over 220 days
mainly belongs to some exclusive brands as Lancaster, Jowissa, and Silvana. The reason for this
may be due to price or product issues as well as proprietary labels.
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 Symptoms importance
On the whole, these inventory goods caused a profound impact on business performance.
Firstly, the high inventory days led to the fact that ABC WATCH often had to run a discount
promotion to clear stock, which significantly affects the brand image.
Secondly, inventory is equivalent to the high cost but not generating revenue, leading to a lack of
budget to buy new goods. This reason leads directly to the unexpected 2019 revenue, which did
not reach the expected KPI.
Nallusamy (2) indicated that it requires a significant attempt to track and clear up non-moving
and very-slow moving products to condensed inventory and therefore cut the inventory
embracing costs. Firms have to encounter with impermanent but discontinuous financial shortage
because of redundancy stock and poor cash to cash exchange (2). Businesses succeed or fail on
their capability to recognize, explain, follow and exploit ‘upon inventory and finance-related Key
Performance Indicators (KPI) such as KPI’s considered are total average revenue, average
inventory carrying cost, forecast accuracy, inventory turns, inventory days of supply, products
with more than a specified number of days of inventory, non-moving stock valuation and
purchase from other sources’ (2).
1.3 Initial cause-effect map
To find out the causes-effect of these phenomena, the author conducted in-depth interviews with
the related employees of relevant departments. It includes:
No

Full name

1

Mr. Pham Phu Thinh

2

Ms. Vo Hong Nhung

3
4

Position

Department

Omni Channel Sale Director
Head

of

Branding

Omni Channel Sale
& Branding

&

Merchandising

Merchandising

Ms. Do Nguyen Hoang Thu

Data Analysis Specialist

Customer Experience

Mr. Le Quang Hung

Investment Manager

Board of Director

Table 1.4 Interviewees for initial cause-effect map

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Since then, the initial cause-effect map has been developed as following:

ABC

Figure 1.6 Initial cause-effect map

Potential central problems:
Based on interviews with staff from the relevant departments, there are two potential problems
which are Do not well utilize firm’s resources and ineffective marketing mix strategy. Moreover,

the possible causes of this problem are clarified as follows.
Store-opening does not meet target plan
As mentioned above, ABC WATCH operates in the three store concept. The most popular model
is still combined with ABC Jewerly stores in the form of Shop in the shop. In 2019, ABC
Jewerly opened more than 20 stores nationwide, together with over 300 existing stores, creating
a huge competitive advantage for ABC WATCH in expanding distribution channels and
increasing sales. With the system of ABC Jewerly stores already built, it creates a lot of
favorable conditions to minimize construction costs and investment for ABC WATCH.
However, according to the target plan, in 2019, ABC WATCH would open from 30 to 40 stores,
12


but in fact, ABC WATCH only opened 15 new stores in 2019, increasing the number of stores to
25 by Jan-2020.
Based on Mr. Pham’s interview: “Specifically, in 2019, basing on KPI, we would have to open
30-40 new stores to achieve the target revenue of 120 billion. But in fact, only 15 stores were
opened. This is the main reason leading to the unachieving revenue.”
Incomplete technology system - ABC WATCH website is not fully functional
With the initial positioning strategy of developing ABC WATCH in the form of Omni Channel,
X Company has invested strongly in technology development, building a brand-new and separate
website, , and existing management system - SAP ERP (Enterprise
Resource Planning) to control warehouse and sales operation. However, until now, the features
of the ABC WATCH website are still incomplete.
Mr. Le: “I think the biggest problem leading to not achieving 2019 revenue mainly because our
technology system is not complete. We have spent a lot of resources creating and running ABC
WATCH website but have not optimized it to bring the best experience for customers. For
example, features such as installments, see similar products to stimulate customers' needs.”
Features that are not available on the ABC WATCH website:

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1. OmniInventory:

2. Omni promotion:

3. Omni eCommerce:

+ Sync 100% in terms of
goods from ERP to POS by
product, by the warehouse.

- Product details and product view
+ Create discount campaigns by

360 -product images have not been
fully updated, eye-catching

code, apply online and offline.

-frequently upload wrong product
+ Connect product status by
store
-Inventory
status

-

follows
Currently,

order
this

feature is not complete, on
the website still have stock
but

there

have

customers ordered

been

images
+ Bulk upload products via Mass

+ Markdown the products

upload function

-Promotion by collection Buy X
give/reduce Y; - Gift with purchase
promotion has not been integrated + Tracking online, offline orders
yet.

Temporarily

can

only

be

discounted promotion.
- Promotion online payment by
bank, my partner
(The installment payment feature + Pay online via VNpay
has not yet been applied to the
website )
-Cross-selling feature You may also
like; ( this feature is not available
yet )
+ Create a landing page of promotion
programs
- Pre-orders are allowed even when
the stock is out of stock -( this
feature is not available yet )
+ Link chat applications and receive
feedback KH

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ABC WATCH has significantly invested in the website system with outstanding features but has
not taken full advantage of this resource to generate revenue.
Accordingly, in 2019, online revenue accounted for only 11% of total revenue.
Revenue (VND)

Percentage

Online

8,594,334,000

11%

Offline

72,131,694,815

89%

Total

80,726,028,815

100%

Table 1.5 Revenue from online and offline in 2019
Products do not meet customer’s demand
ABC WATCH currently has 21 brands in 4 categories as shown below:

TRAFFIC
DRIVER

VALUE BUILDER

HOT
CATEGORY

EXCLUSIVE

Citizen, Emporio

Brand

Tissot, Longines,

Armani, Fossil, Kate

Casio, Daniel

CK, Hamilton,

Spade, MVMT,

Wellington,

Gucci

Orient, Seiko, Skagen,

Michael Kors

Anonimo, Jowissa,
Lancaster, Silvana

Titoni
Price-Range

10 - 100mil

5 - 12 mil

3 - 7mil

8 - 50mil

Segment

High-end

Mid-range

Low-end

Mid-High End

Popular brand
Positioning

reputation with

Quality guaranteed

Swiss-made

with reasonable prices

standard

Fashion
models with
low prices

Swiss brand, Swissmade quality
assurance only
available at ABC
WATCH

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However, according to the company report in 12/2019, only more than ten brands generate
revenue for ABC WATCH, such as Tissot, Citizen, Longines, Jowissa, Michael Kors… ABC
WATCH is focusing on too many different brands resulting in no diversification of products for
each label, reducing the opportunity to generate more sales. In addition, that will lead to high
inventory of unsold models.

Figure 1.6 Contribution by brands at ABC WATCH in 2019
Ms. Vo suggested that “We have only been in operation for more than a year, so we tried many
different brands, but not all the brands brought in revenue. In my opinion, the 2019 revenue did
not meet the target mainly because of our products that do not meet customer demand.”
Additionally, Ms. Vo also said that “Currently, we still lack products that suit the needs of
customers in the low price segment from 3 to 5 million.”

Figure 1.7 The average ticket size of ABC WATCH in 2019

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