MIS assignment about Prudential VietNam

INTRODUCTION
Prudential creates a PVA’s e-Gift shop in order to serve Prudential’s agents and internal
departments.With 3 years of providing e-gift solution for B2B and B2C businesses and
corporation, we are here to help you on having a leading e-gift platform that matter.
This proposal includes price, production, order fulfillment, gift return, quality control,
reporting, monitoring process and delivery cost structure for Prudential. To improve these
things, Prudential will achieve several goals:
➢ Improve brand image by having a variety of quality and on-trend products with
Prudential branding
➢ Increase users (agents and internal divisions)’ satisfaction through an easy to use
front-end system, simplified process, quality and reasonably-priced products
➢ Reduce the workload for the Customer Care team
Our proposal consists of 9 parts to help Prudential on having a good leading e-gift platform:
● A new product list that are suitable for insurance industry and the target customer
● Price setting process
● Production process
● Order fulfillment process and turnaround time
● Delivery cost structure and time
● Gift return/ refund process
● Complaint handling process
● Quality control process
● Reporting and monitoring process for Prudential

I.
PRODUCTS LIST
Products list that are appropriate for insurance industry and specially for Prudential ‘s target
customer.
● Bag
● T - shirt
● Umbrella
● Raincoat

● Shoe
● Stationery
● Cap
● Clothes
● Accessories
● Water bottle, drinkware
● Home and decor
● Toys
● Health care machine
Gifts should be attached with Prudential’s logo so that the company’s brand will promote
indirectly.On the other hand, with each product the company should create variety models in
order to provide customer more choices such as color, motifs. The gifts are also based on
customer segment and other factors:

1


Financial dependent
(Age <18)

T shirts, baby bodysuit, cap, trucker hat, stationery, toys, shoes,
baby blanket, baby bibs...

Adult and married
(18 < Age < 60)

T shirts, underwear, home and decor, shoes, raincoat, umbrella,
bag, jewelry, ties...

Retired

( Age > 60)

Clothes, shoes, health care machine, blankets, hats..

Home and decor

Drape, blanket, bed, clock,wall art, curtain, pillow, wardrobe,
bed and bath, flower vase...

Stationery

Gift card, notebook, pen, calendar, postcard, ...

Drinkware

Water bottle, glasses, cup, mugs,...

Occasion

Halloween, gift center, birthday, wedding, anniversary,
thanksgiving, christmas, new baby gift, graduation...

II.
PRICE SETTING PROCESS
When setting the price of a new product, the company must consider the competition’s
prices, estimated consumer demand, costs, and expenses, as well as the firm’s pricing
objectives and strategies.
Here are the steps on how to set price products:

Step 1: Selecting the price objective

The company first decides where it wants to position its market offering. The clearer a
firm’s objectives, the easier it is to set price. Five major objectives are:
● Survival
● Maximum current profit
● Maximum market share
● Maximum market skimming
● Product-quality leadership
About Prudential, their objective is focusing on product quality so they can decided the
material, the design of product or control quality
Step 2: Determining demand
Each price will lead to a different level of demand and have a different impact on a
company’s marketing objectives. The normally inverse relationship between price and
demand is captured in a demand curve. The higher the price, the lower the
2


demand.Knowing the objective, Prudential should determine the demand for each price.
They can use some methods to measure the demand such as: surveys, statistic
analysis, price experiments.
Step 3: Estimating costs
For determination the price of product, the cost of product should be estimated.
Variable and fixed cost
The vendor has to estimate the cost at different production levels. And the price must
cover variable & fixed costs and as production increases costs may decrease.
Differential Cost in Differential Market
The vendor must also analyze activity-based cost accounting (ABC) instead of standard
cost accounting. ABC takes into account the costs of serving different retailers as the
needs of differ from retailer to retailer.
Target Costing
The vendor can estimate a new product’s desired functions & determines the price that it

could be sold at. From this price, they know how much they can spend on production
whether it be engineering, design, or sales but the costs now have a target range.
Then Prudential will be the final approver to decide whether the price is suitable or not
Step 4: Analyzing competitor’s price
In this step, Prudential should benchmark its price against competitors such as: AIA
Group, MetLife, Manulife Financial, …learn about the quality of competitors offering, &
learn about competitor’s costs. If the company’s product or service is similar to a major
competitor’s product or service, then they will have to price close to the competitor or
lose sales. Otherwise, Prudential will not be able to charge as much as the competitor.
Step 5: Selecting pricing method
Various pricing methods are available to give various alternatives for pricing:
● Markup Pricing: a 20% markup
● Target Return Pricing: help in achieving the required rate of return on investment
done for a product
● Perceived-Value Pricing: the valuation of good or service according to how much
consumers are willing to pay for it
● Value Pricing: charge low prices for their high-quality products by improving its
research and development process
● Going Rate Pricing: set the price of a product according to the prevailing price
trends in the market
Step 6: Selecting the final price
Having arrived at a preliminary price point through the analytics in five steps above, the
final step is to communicate new prices to the market. Pricing methods narrow the range
from which the company must select its final price. In selecting that price, Prudential
must consider additional factors.
● Impact of other marketing activities
● Company pricing policies
● Gain-and-risk-sharing pricing
● Impact of price on other parties
III.

PRODUCTION PROCESS

3


1. The order: Prudential will make a list of products to be ordered then send them to
the vendor.
2. The plan production: Set the price, plan of production, choose material..
3. Approve: CEO of vendor approve the plan and production schedule.
4. Material requirement: Sending requests to the Warehouse keepers to ensure
material for production.
5. Input materials: Warehouse keepers input material to produce.
6. Checking materials: Check input materials and raw materials which do not
guarantee the quality of processing.
7. Handle unsuitable material: Workers fix or remove unsuitable materials.
8. Designing: Design shapes, colors, sizes, materials of products. Send the sample
product to Prudential for checking.
9. Producing: Produce products according to standard procedures.
10. Checking the output: Checking the quality of outputs .
11. Warehousing: Warehouse keepers warehouse standard products.
12. Deliver: Shippers deliver products to Prudential.
IV.
ORDER FULFILLMENT PROCESS AND TURNAROUND TIME
For Prudential Vietnam e-gift shop, this following flowchart are suitable to manage
orders for agents quickly and effectively.

4


1. Receive and check the order

The first step of this process is receiving and checking the orders (that vendor has to
handle the orders from customers).
Customers create accounts or login on Prudential Vietnam’s egiftshop platform and
order gifts via it following guidance. These orders will be sent to check information which
they are valid or not. If they are not valid, they will be cancelled and vendor notifies to
customers to do again. Meeting requirements of valid orders, they are accepted and go
into next step. This process takes only a few seconds, which is convenient for customers
and shortens the time of each orders.
2. Checking stock
In this step, vendor has to check products’ quantity in stock to meet the numbers of
products customers order. Depending on the number of orders, it takes from 30 minutes
to one hour to check. If products are available, the orders will be checked delivery
information. However, in case of insufficient number of quantity, vendor will inform to
production department to produce products as required. This orders can take longer time
because of waiting for producing and warehousing (maybe from one day to two days).
3. Delivery information and shipping
After checking stock, vendor handles information to delivery and sends confirmation

5


e-mails to customers including all information filled out by customers, status of orders
and delivery time. Similar to first steps, customers have to wait very few time. The orders
will be prepared to ship unless customers have any changes.In shipping step, the orders
are shipped to customers. Time depends on types of delivery and position chosen by
customers before, approximately from 24 hours to one week.Customers receive orders
successfully finishes the process. In case of unsuccessful shipment (customers do not
receive orders), orders will be turned back to vendor. They have responsibility to check
order information to customers and deliver again. Because of this miss, the time can
increase more one day than before. The order fulfillment process ends only when orders

are sent to customers’ hand. If the process does not emerge any problems (insufficient
quantity, failed shipment, invalid orders), it will take total from 24 hours to 7 days
depending on chosen types of delivery.
The process of fulfillment orders from agents has some differences from ones of
internal departments and GADs. After shipping step, vendor will send monthly report,
invoice to Prudential and receive payment, which is not similar to payments of agents’
orders. The remain steps are the same in two processes
V.
DELIVERY COST AND TIME
There are three types of deliveries about different cost and time for customers to
choose.
Each delivery types has their own benefits and drawbacks.
- Fast delivery inside Hanoi
- Fast delivery to other provinces
- Standard delivery
The delivery time does not include other steps of order fulfillment process. It is
calculated from order confirmation to taking orders to customers’ hand.
1. Fast delivery inside Hanoi
Areas

Cost

Time

Center

20.000 VND

< 12 hours

Suburb

30.000 VND

< 24 hours

2. Fast delivery to other provinces
Areas

Cost

Time

Center

District

Area 1

60.000 VND

70.000 VND

24 hours

Area 2

70.000 VND

80.000 VND

1 - 2 days

Area 3

80.000 VND

90.000 VND

2 - 3 days

6


● Area 1: Bac Can, Bac Giang, Bac Ninh, Cao Bang, Dien Bien, Ha Giang, Ha
Nam, Ha Tinh, Hai Duong, Hung Yen, Hai Phong, Hoa Binh, Lao Cai, Lang Son,
Lai Chau, Nam Dinh, Nghe An, Ninh Binh, Phu Tho, Quang Ninh, Quang Binh,
Son La, Thai Binh, Thai Nguyen, Thanh Hoa, Tuyen Quang, Vinh Phuc, Yen Bai.
● Area 2: Binh Dinh, Dac Lac, Dac Nong, Gia Lai, Hue, Kon Tum, Phu Yen, Quang
Nam, Quang Ngai, Quang Tri, Da Nang.
● Area 3: An Giang, Binh Duong, Binh Phuoc, Ba Ria - Vung Tau, Bac Lieu, Ben
Tre, Binh Thuan, Ca Mau, Can Tho, Dong Nai, Dong Thap, Hau Giang, Kien
Giang, Khanh Hoa, Long An, Lam Dong, Ninh Thuan, Soc Trang, Tay Ninh, Tien
Giang, Tra Vinh, Vinh Long,Ho Chi Minh.
3. Standard delivery
Areas

Cost

Time

Center

District

Area 1

20.000 VND

30.000 VND

4 - 5 days

Area 2

30.000 VND

40.000 VND

5 - 6 days

Area 3

40.000 VND

50.000 VND

6 - 7 days

VI.

GIFT RETURN/ REFUND PROCESS
1. Return process
Customers can return any item purchased on Prudential’s Web within 30 days of the
delivery date. The vendor allows Prudential’s members to have some benefits which are
actually convenient. Just by following simple steps, customers can return their E-gift:
● Login to customer’s account.
● Find and click on the order items that they would like to return.
● Provide some reasons why customers are returning the Items.
● Receive email notification associated with their account that return request has
been received.
● Receive email notification when return request has been processed.
Once customer’s package reaches the warehouse, it takes 3 to 7 business days
(depending on peak times) for return to be processed. If that return does not meet the
conditions listed, the package will be sent back to them.Specially, the customers need to
make sure the gift returned is in its original condition, tags and packaging included,
otherwise suppliers will be unable to accept return and issue a refund.
2. Exchange process
If customers wish to change the size and/or color of an item that they purchased, they
can do so at no additional cost within 30 days of delivery date.They should do the
following steps:

7


● Login to customer’s account.
● Fill out the return form, choose the “Exchange” option.
● Select a replacement size and/or color from those available.
● Receive email notification that exchange request has accepted
Prudential’s Care Team will then hold the item for them and as soon as receiving the

return, they will ship it to the address from that original order. Immediately, clients will
receive a Shipping Confirmation email when the package has been dispatched. They
can exchange the size and/or color of an item one time only, but they can always return
it by following the instructions in Pru’s Return Policy.
3. Gift refund process
The time needed to process refund may vary based on the payment method used. They
can choose one of the following methods:
● Credit Card: Bank will reimburse customer within 7 business days of the Return
Acceptance Confirmation email. The time it takes to restore the credit back to
their account depends on the Credit Card Issuer.
● Electronic wallet: Customer can receive refund within 3 days from the return
acceptance confirmation email. Money in e-wallet can be used for next purchase
but cannot be withdrawn.

VII.
COMPLAINT HANDLING PROCESS
Customer can put complaint , feedback in online redressal, feedback page or through
the company’s hotline in case of any issue to receive support from Prudential’s customer
care team.
All clients need to do is to enter their folio number, mobile number, email ID and the
complaint itself in respective columns. Click on submit and an official will get in touch
with customers in 24 hours. All complaints are processed based on the unification and
signed contract between both of two side: Vendor and Prudential.
1. Responsibilities of Prudential
● PRUVIP + members are given priority when presented at the counter at the
Customer Service Center. It saves approximately 30 percent time for handling
complaints.
● Prudential is not a provider of products or services used as a reward for the
program.
● Prudential will only deal with complaints regarding the promotion within 60 days

of the end of the program
● Prudential does not have responsibility to solve inquiries or complaints which
relate to the quality of E-gift and these services
2. Responsibilities of the Vendors
● After receiving the products, the customer will directly contact the supplier of the
product or service with any questions or complaints related to the quality of the
product or service.
● The vendor has responsibility to solve inquiries or complaints which relate to the
quality of E-gift and these services.

8


● The vendor has to guarantee that these client’s complaints are handled on time
according to the contract.
VIII.
QUALITY CONTROL PROCESS
The quality control process is divided into three separate processes, which are IQC
(incoming quality control), IPQC (in-process quality control) and OQC (outgoing quality
control).

1. IQC - Incoming Quality Control
Incoming quality control is the process of inspecting the raw and component materials
from suppliers upon arrival. When you found the defective parts, you need to negotiate
with the supplier for return or exchange, and the ultimate purpose is to make sure your
product quality will not be affected. Below is a sample flowchart of the IQC process.

9

2. IPQC - In-process Quality Control
IPQC refers to quality control during the assembly process. It is crucial because you can
detect and handle the problem that occurs ahead of time.

10


3. OQC - Outgoing Quality Control
OQA is the inspection of products before shipping. It's a crucial step in ensuring the
shipment is defect-free.

11


IX.
1.
a.

b.

c.

REPORTING AND MONITORING PROCESS
Reporting
Customer acquisition report
The Customer Acquisition report offers a simple but crucial perspective for any
online business. This report will show Prudential's clients how their customers are
landing on-site and what gifts are contributing the most revenue to their business.
Ecommerce data for each acquisition channel is broken down to total
revenue,average order value, and conversion rate.

That way, Prudential Co can identify what specific gifts they should increase (or
decrease) their marketing efforts on.
Email assessment report
If Prudential's client plans to use email marketing to drive return traffic to their
store, the Email Assessment report will help them understand the role their
campaigns play in sales. By understanding which campaigns lead to the greatest
amount of transactions or revenue, their client has additional data — aside from
open and click-through rates — to optimize their email marketing efforts.
Time of day / day of week transaction report
The Time of Day / Day of Week Transaction report offers Prudential's clients a
detailed view of their past week of sales. The report helps identify which hours of
12


the day, days of the week, and combination of both lead to their highest levels of
sales.
What’s great about this report is that it will allow their client to isolate particular
days or hours that are performing poorly in terms of revenue. This information
presents an opportunity for them to run special marketing promotions during
these periods to increase traffic, as well as sales.
2. Monitoring
What Prudential need to monitor:
Level in Objective Hierarchy

What to Monitor and Evaluate

Activities

Have planned activities been completed on
time and

within budget? What unplanned activities have
been
completed.

Outputs

What direct tangible gifts have the project
delivered
as a result of activities.

Outcomes

What changes have occurred as a result of the
outputs and to what extent are these likely to
contribute towards the project propose and
desired
impact

Impacts

To what extant has the project contributed
towards
its longer terms goals? Why or why not? What
unanticipated positive or negative
consequences did
the project have? Why did they arise ?

13