MINISTRY OF EDUCATION AND TRAINING
THUONGMAI UNIVERSITY
DAO DUY KIEN
ENHANCING MARKETING COMPETITIVENESS OF DEPARTMENT
STORES AND ELECTRONICS CHAIN STORES IN HANOI MARKET
Specialized: Trade Business
Code: 62340121
SUMMARY OF ECONOMIC DOCTORAL THESIS
Hanoi, 2021
The research was finished at Thuongmai University ………………………….…………….
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Scientific instructor ………………………………….………………………….
Professor Ph.D., NGUYEN BACH KHOA
Associate Professor Ph.D., NGUYEN HOANG
Reviewer 1: …………………………………………………………………………
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Reviewer 2: …………………………………………………………………………
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Reviewer 3: …………………………………………………………………………
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The thesis will be defended at the Thesis Assessment Council at University level
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At……….. hour ………… date………. month ………. year ………….
Search for the thesis available at: National Library
Thuongmai University’s library
LIST OF PUBLISHED SCIENTIFIC ARTICLE
Title of research works
Serial Number
Name of journals, research projects
Participation as
1
Author
Journal of Trade Science – vol. 64+65
Experiences to improve the competitive advantage of some foreign retail groups and lessons for supermarkets in Vietnam
2
Coauthor
Marketing competitiveness of Hanoi based Electronics Supermarkets
Journal of Trade Science – vol. 101
3
Author
Solutions to build core marketing capabilities for electronics retailers operating in Hanoi
Vietnam Trade and Industry Reviews Research in scientific and technological applications Publication vol. 11 8/2018
4
Coauthor
The competitiveness of electronics supermarket in Hanoi: An experimental research
Vietnam Trade and Industry Reviews Research in scientific and technological applications Publication vol. 7 4/2019
INTRODUCTION
1. Rationale
In the present, by many reform efforts and economic integration, Vietnamese
economy has experienced a dramatic development on quality and quantity. The
construction of occupation has changed towards the reduction of employees in
agricultural sector and the growth of labors in various fields of industry, service and
high technology science. Simultaneously, the openness of market appealed to the
investment of some international businesses. The legal framework is also reformed
regarding overseas trade regulation. The Vietnamese political environment is
considered as a substantial and peace workplace in the world. The economic
environment and the shape of market of 90 million citizens (2013) could attract
significantly for many international and domestic companies.
On November 7th 2006, Vietnam officially became the official 150th the World
Trade Organization (WTO) member marking comprehensive milestone in its nonstop
global integration efforts as well as the economic development in whole nation. WTO
provides many opportunities and challenges on the Vietnamese economy increasing
the ruthless competition of domestic businesses.
Its great renovation efforts and achievements in economic development, the
citizen’s income and living standards would increase, especially the urban areas. The
Vietnamese retail market of 100 million residents leads to the increase of
consumptions and the tremendous growth of market. Thus, the retail market is the
most attractive environment in the present. The organization of promotion to end users
suits for the shopping demand of citizens appropriately. It is such necessary problem.
The traditional distribution by manufacturing to intermediate stages, the retail store
and consumers shows many negative problems as: high price, the slow circulation of
goods, spontaneity, the slightly professional service, no demand of shopping trend in
the modernization period…Thus, the tendency of organizing distribution with the new
style of modern and convenient sale systems is a necessary demand for the Vietnamese
retail market, especially urban area. The international companies are the pioneers
when the retail market in the developed nation would promote in the past. Some
organizations established the method of distribution proficiency and modern as the
department stores named Big C, Metro…. It is the place for manufacturer and
customer to exchange goods through no variety of intermediate systems. In reality,
some system made a success of business and became a strong competitor of any
companies in the domestic market. The Vietnamese retail market, especially urban
area is developing rapidly toward that tendency, so It has created not only
opportunities but also challenges of competition for Vietnamese companies to
dominate, penetrate, organize the distribution systems effectively. Thus, It could make
a strong competitiveness with the international companies that have a strong financial
resource and experience in managing and organizing at the global WTO environment.
Department store type of modern store; general or specialized business; the types of
diversified goods, high quality; demand on business acreage, technical equipment and
qualifications in management and business; some convenient service modes to meet the
customers’standards – one of the most progressive tendency of retail commerce in the
period. Especially the modern tendency of technology, the electronic department stores
become an attractive retail niche in some urban areas. It combines the specialized retail
methods and technology self service retail to make advantages of competitiveness in this
sector. However, over that time, this method showed many limitations of improving the
competitiveness and marketing such as specifying the value of customer’s supply in the
market, adjusting the mixed retail promotion, using marketing tools, lack of justifying and
focusing key marketing performance, the identity of department store service had many
disadvantages of quality and value based on customers.
This limitation of the economic context on January 1th 2009 according to WTO
commitment for Vietnam, the Vietnamese retail market would encourage international to
invest. This is a good time for retail business having a strong finance, extensive
experience and the performance of marketing management with the global brand to enter
the Vietnamese retail market and create the threat and ruthless competitiveness for the
domestic companies.
Thus, the author would decide the research topic: “Enhancing marketing
competitiveness of department stores and electronics chain stores in Hanoi market”.
2. History of previous studies
Recently, there are many previous international and domestic research related to
competitiveness, marketing managements, tools and methods of satisfying marketing,
retail stores and managing the retail department store. There are some below researchs:
2.1. Some retail companies, department store and electronics chain stores
Nguyen Thi Nhieu (2006), Department store the modern retail trade method in
Viet Nam, Labour Pulishing House.
Nguyen Thi Nhieu (2007), A study on wholesale and retail services of some
nations and its application in Vietnam.
Nguyen Thanh Hai (2011), Improving the business efficiency of modern retail
trade businesses in Hanoi, Thesis in Economics.
Pham Huy Giang (2011), Development of modern distribution system by retail
chains stores in Hanoi, Thesis in Economics.
Le Quan (2007), Completing the utility retail system in urban areas in Hanoi,
Ministrylevel scientific research.
2.2. Competitiveness
Nguyen Bach Khoa (2004), Methodology for determining the enterprise's
competitiveness and intergrating international economy, Jounal of Trade Science No
4+5.
Nguyen Hoang Viet and Chu Dinh Dong (2013), Research on the core
performance of Vietnamese businesses in the present, Jounal of Trade Science No
62+63.
2.3. Retail commerce marketing
Tu Thanh Thuy (2009), Complement of business environment to develop
wholesale and retail services in Vietnam, Ministrylevel scientific research.
Phan Thi Thu Hoai (2008), The tendency of choosing the retail stores of
customers according to marketing approach of some commercial companies in Hanoi,
Ministrylevel scientific research.
Nguyen Thu Ha (2015), The quality of retail service of department stores and
convenient stores in Ha Noi, Thesis in Economics.
2.4. Policies of governmental management in competitiveness
Tran Hung (2006), Solution of developing modern distribution in Hanoi in the
period of 2006 2010, Ministrylevel scientific research.
Le Van Hoa (2008), Research on solutions to develop commerce through
penetrating into multinational distribution system, Ministrylevel scientific research.
2.5. Marketing competitiveness
Le Trinh Minh Chau and partners (2002), Development of distribution systems in
Vietnam in the global economic intergration. Ministrylevel scientific research.
Phung Thi Thuy (2013), Marketing competitiveness of various commercial banks in
Vietnam, Thesis in Economics, Thuong Mai University
Nguyen Hoang Viet and Nguyen Thi Thanh Nhan (2016), Research on
developing marketing strategy of retail chains stores in urban area in Vietnam, Jounal
of Trade Science No 89+90.
Apart from many above domestic researchs, there are many studies about
management of department store supply chains, the connection of members to improve
the competitiveness of department stores, criteria of assessing the competitiveness,
application of logical strategies to develop the competitiveness; experience of
management and competitiveness in global chain stores. There are some international
studies as below:
A.Rowe et Al (1993), Strategic Management: Methodological Approach, P.
Addison Weslay.
Ph. Kotler (2000), Marketing Management, Pr. Hall.
Andrew Cox, Paul Ireland, Chris Lonsdale, Joe Sanderson and Glyn Watson
(2002), Supply Chain, Markets anh Power: Mapping buyer and Supperlier power
regimer, Routledge, London.
A. Thompson, A. Strickland (2001), Strategic Management: Concepts and
Cases McGraw Hill, Newyork.
M. Porter (1980), Competitive Strategy, Free Press, New York.
Dr Gerd Wolfram (2004), Metro group: Future store initiative, RFID Journal.
David SimchiLevi, Philip Kaminsky and Edith SimchiLevi (2004), Managing
the Supply Chain, McGraw Hill Professional.
S. Hollander (1990), The Wheel of Retailing, Journal of Marketing.
R. Davies, D. Rogers (1984), Store Location and Store Assessment Research,
John Wiley, New York.
P.Reed (1997), Marketing: Planning and Strategy, Harcourt Brace, Sydney.
L. Stern, A. El Ansary (1996), Marketing Channels, Pr. Hall, New York.
Allan Fels (2009), The regulation of retailing lessons for developing countries,
Asia Pacific Business Review.
AT Kearney (2009), Windows of Hope for Global Retailers, A.T.Kearney
Global Retail Development Index.
Kotler and Armstrong (2004), Principples of Marketing, United States of
America: Pearson Education.
Ph. Kotler, K.Keller (2014), Marketing Management, Mac Millan, Newyork.
These are specialized documents of marketing and retail competitiveness,
especially retail competitiveness in some department stores; however, there is no study
to investigate the specialized marketing competitiveness in department store and
electronic chains stores.
2.6. Space Research
The domestic and international researches also relate to the topic researches, the
author also address some the results of previous studies to provide the research topic.
However, the perspectives of marketing competitiveness in the electronic chains stores
and department stores in Hanoi, there are no researchs to analyze comprehensively the
reality and theory, especially there are many changes of economy in Vietnam in the
present. Thus, It is the space research in the previous studies, the author decide to
investigate about improving marketing competitiveness in electronic chains stores in
Hanoi market.
3. Research purpose and mission
3.1. Research purpose
Looking for and determining some solutions based on theory and reality with the
aim to enhancing the marketing competitiveness in electronic chains stores and
department stores in Hanoi until 2025.
3.2. Research mission
Etablishing the theory of marketing competitiveness in retail companies and
electronic department stores
Conducting the models and actual scale of enhancing the general marketing
competitiveness and the elements for Hanoi maket.
Analyzing and statistically describing the current situation, the marketing
competitiveness of electronics department stores in Hanoi market;
Proposing remedies to improve the marketing competitiveness for electronic
department stores in Hanoi market with a vision to 2025.
4. Research subject and scope
4.1. Research subject
The marketing competitiveness of electronic department store in Hanoi market.
4.2. Research scope
The scope of subject: Focusing on consumer electronics department store
(independent and member) of Vietnam retail companies.
The space of research: Addressing on Hanoi market, especially in the market in
urban area, which would show the marketing competitiveness of an electronic
department store.
Timerage of research: Study on marketing competitiveness of electronic
department store in Hanoi market from 2013 to now and proposing solution with the
vision to 2025.
5. Research methods
The usage of combination of research methodolody: Systematization and
generalization, logic, analysis, synthesis, proof, interpretation, inductive, statistics
comparison. Simultaneously, the author also combine research method, the results of
some research projects associated with department stores which Trade Research Institute,
and some organizations of Ministry of Industry implemented:
Using the systematization of method to select the research result of the
published scientific thesis about the research topic. Thesis using the generalization
method aims to take the measures on logical theory and reality problem of the research and the usage of integrated approaches to establish the scientific arguments and give
some remedies for the issues.
Using logic method combined with the analyzation, demonstration, statistics
comparison and inductive, interpretation to assess the business of electronic chain
stores in Hanoi; at the same time the forecast of conditions and plan for making
solutions to improve competitiveness for these department stores with a vison to 2025.
The qualitative research was conducted by discussion and indepth interviews,
with the participation of a group of lecturers specializing in marketing in Thuong Mai
University, some experts specializing on retail business and management in electronic
department store in Hanoi market and some loyal cosumers to adjust, address and
supplement factors of marketing competitiveness for electronic department stores,the
observe variable measures these factors and discuss the results of construction test
the model of factors to create competitive marketing capability for electronics
department stores.
Quantitative research method also implemented to show some elements such as:
value, reliabity and relevance of factors in enhancing marketing competitiveness for
electronic department stores; verifying the method and assumption of research; justifying
the difference the value of position and reality for elements on making marketing
competitiveness and the personal characteristics of consumers, setting up the foundation
for satisfying the value of position and assess the reality of these elements.
6. New contribution of the thesis
Based on the target and practice of science research method, the thesis would
provide some research results and some new contribution of science and practice as
below:
First, based on the systemization, updating some theories and researchs on
marketing competitiveness by the value for the legal framework about the marketing
competitiveness at retail department stores in Hanoi, according to the perspectives of
international and domestic scientists would define the concept, the characters on
marketing competitiveness of retail department stores with various problems:
enhancing marketing competitiveness: marketing strategy competitiveness, marketing
tactics competitiveness, dynamic marketing competitivity and conprehensive
marketing competitiveness. At the same time, establishing the criterias to assess the
marketing competitiveness for retail department stores. Thus, the thesis would decide
and determine the research method about marketing competitiveness for retail
department stores (consists of above marketing competitiveness).
Second, determining and addressing some impacts and conditions to enhance
marketing competitiveness for retail department stores in general and Hanoi market in
particular.
Third, based on the overview of social economic and electronic retail market in
Hanoi during the periods as well as the impacts of objective factors on developing
quanlity, performance, efficiency and status in electronic retail market in Hanoi.
Fourth, through examining the theory methods with primary data, which
collected to determine the practical research on conprehensive marketing
competitiveness of retail department stores in Hanoi.
Fifth, the application of pratical method on analyzing statistics of marketing
competitiveness in the retail department stores in Hanoi give some limitations and
advantages; weakness/ strengthness and the reasons of these negative problems in
Hanoi market during the time. The results of research and statistic analyzing could
provide some the pratical theory and issues for enhancing marketing competitiveness
in the retail department stores in Hanoi with a vision from 2025 to 2030.
Six, the application of theory method to addressing the marketing
competitiveness of four typical retail department stores in Hanoi such as Tran Anh,
Picco, HC, The gioi di dong. The results of research would show some general
conclusions on marketing competitiveness for these department stores.
Seven, by assessing the challenges, opportunities and perspectives to develop the
retail department stores in Hanoi market, the thesis would propose five solutions: the
solution of enhancing the marketing strategy competitives, the solution of enhancing
the marketing tactics competitiveness, the solution of enhancing the dynamic
marketing competitivity, the solution of improving the leadership skills, the
governance of marketing organization such as the solidarity , the proposals of
completing governmental management policies as well as development of the
Vietnamese retail department stores. These remedies are also drawn the results, the
perious research, the assessment and experience through some typical researches.
These types of solutions not only promote the marketing competitiveness but also
solve some negative impacts and reasons, limitations of the marketing competitiveness
in the consumer electronics department stores in Hanoi.
7. The structure of thesis
Exept from introduction, conclusion, references, appendix, list of figures, list of
abbreviation, the thesis is divided into 3 chapters:
Chapter 1: Theoretical foundation and practical experience of the marketing
competitiveness for the retail department stores in the general and the consumer
electronics department stores in the particular.
Chapter 2: The reality of marketing competitiveness for the consumer electronics
department stores in Hanoi market.
Chapter 3: Some ideas and solutions to improve the marketing competitiveness
of Electronics department stores in Hanoi for the over the period to 2025
Chapter 1: Theoretical foundation and practical experience of the marketing
competitiveness for the retail department stores in the general and the consumer
electronics department stores in the particular
1.1. Various primary concepts and definations
1.1.1. Market and consumer electronics department store
The marketing management is defined as the practical market and visual
pespectives. The experts of marketing used the market concept to measure the types of
buyer as the constituent of the market. They discuss on the demand market the
diet market), the commodity market ( the garment market), the demographic market
( the market for younger), the geographic market ( the Chinese market); or enlarging
the definitions related the resouces market, showbiz and politic market…)
The retail goods market by the prespectives of marketing
According to Kotler and Keller (2015), the famous researcher of the marketing ,
the retail definition is definded in the “Marketing Management”: “Retailing includes
all the activities involved in selling goods or services to the final consumers for
personal, nonbusiness use”. Any organizations including manufactures, wholesalers
or retailer to final consumers also have the fuctions of retail, any products are goods or
services through sellers, correspondences, phones, the automatic sale machine, e
commerce or any places as streets, stores or customer’s homes (Goworek và
McGoldrick, 2015).
The retail department store and consumer electronics department store
The retail department store
To be called a department store and graded as a department store, a commercial
business establishment must have business location in line with the commercial
network development planning of the province or city and have business scale and
organizing capability meeting the basic criteria for one of the three following grades of
department store (Decision No. 1371/2004 / QDBTM dated September 24, 2004) as
below:
GradeI department stores For a general department store: Having a business space of 5,000 m 2 or more;
having a list of 20,000 goods names or more; having solid and highlyaesthetical
architectural works with advanced and modern designs and technical facilities,
meeting the requirements of fire prevention and fighting, environmental sanitation,
safety and convenience for all kinds of customer; having car parks and rest rooms for
customers, suitable to business scale of the department store; having a system of
advanced and modern warehouses and technical equipment for preservation,
preliminary processing, packaging, sale, payment and business management.
For a specialized department store: The criterion of a business space shall be 1,000 m2 or more while the other criteria shall be the same as for general department
stores.
GradeII department stores
For a general department store: Having a business space of 2,000 m2 or more;
having a list of 10,000 goods names or more; having solid and aesthetical architectural
works with modern designs and technical facilities, meeting the requirements of fire
prevention and fighting, environmental sanitation, safety and convenience for
customers; having car parks and rest rooms for customers, suitable to business scale of
the department store; having modern warehouses and technical equipment for
preservation, packaging, sale, payment and business management.
For a specialized department store: The criterion of a business space shall be 500 m2 or more; the criterion of a list of shall be 1,000 goods names or more while the
other criteria shall be the same as for a general department store.
Grade IIIdepartment stores
For a general department store: Having a business space of 500 m 2 or more;
having a list of 4,000 goods names or more; having solid architectural works with
designs and technical facilities meeting the requirements of fire prevention and
fighting, environmental sanitation, safety and convenience for customers; having car
parks and rest rooms for customers, suitable to business scale of the department store;
having modern warehouses and technical equipment for preservation, packaging, sale,
payment and business management.
For a specialized department store: The criterion of a business space shall be 250 m2 or more; the criterion of a list of shall be 500 goods names or more while the other
criteria shall be the same as for a general department store.
Consumer electronics department store
Consumer electronics department store constitute a type of specialized retail
method having a diversified kinds of goods with machine, consumer electroics such
as: refrigerator, washing machine, air conditioner, electric stove,…although there are
many different brands of products, they focus on the particular niche market and
consumer. The businessman also provide various electronics services to satisfy the
demands of electronics of customers such as distributions, credits, customer services,
order correspondences, computers,… The consumer electronics department stores
could promote advertisements dramatically to concentrate on the budgets for many
parts such as advertisements, promotions in the different customer target.
1.1.2. The perspectives of marketing management by the value
The perspectives of marketing management by the value is determined as four
primary definitions:
1.1.2.1. The value and sastisfaction of customer
The form determined the value of distribution of customer as their expectations:
Customer’s benefit
benefit of products+ services+ human resources+ images Cost+ Time+ Energy+ Power
V =
=
Customer’s cost
(cid:0) (cid:0) (cid:0) (cid:0)
Based on the results of customer distribution of value (V), the customer would
decide and select to buy the goods with the maxium V value, example: The customer
would choose 2 Market offering/2 retail business as: If V1/V2>1, select V1, if not
choose V2; If V1/V2=1 The customer could choose flexible or add some extra
creterias.
According to P.Kotler (2008), customer satisfaction as a 'person's feeling of
pleasure or disappointment, which resulted from comparing a product's perceived
performance or outcome against his/her expectations
The value of customer in retail
The process of customers’ value distribution
The value supply of company
1.1.3. Performance and competitiveness of company.
This part is analyzed some problems as below:
The performance of company and the competitiveness of business
The performance of company consists of material and invisual resources and
the advangtages that the company could provide, mobilize and establish for the
particular trade activity.
The performance and marketing performance of company
The performance of company or the trade performance of business or the
operation of company would be products in the process of experience in the past that
express the comprehensive knowledge of a domestic activity.
The competitiveness of company
However, there are no ambiguous perspectives for the definition. There are five
significant approach for company as below:
First, the competitiveness of company is the ability of maintaining and expanding
the market share and profit of company.
Second, the competitiveness of company is the ability of resisting on the attacks
of companies.
Third, the competitiveness of company is associated with the labor performance
Four, the competitiveness is the maintaining and enhancing the competitive
strengthness.
Fifth, the approach of competitiveness based on the value of customer’s distribution
The model of the competitiveness of company by N.B.Khoa based on the
development of abow model, the application and adjusting for the character of market
economy and Vietnamese companies would give 10 criterias with the coefficient as
below (table 1.2):
Table 1.2: Criterias for enhancing the competitiveness of company
No 1 Criteria The quality/ performance and strengthness of products/ Coefficient 0,10
2 3 4 commodities Image/ the reputation of brand Protection and Development of the market / market share Participating and operating the high performance of CCU in 0,05 0,05 01,5
5 6 the company Pratice of manufacturing and marketing Development of technology and conprehensive synthesis 0,15 0,10
7 8 9 10
performance Relative Price Positioning and assessing by the value Creating the new products, service and process Financial position of the company The customer service The conprehensive competitiveness of company 0,10 0,10 0,10 0,10 1,00
1.2. The concept of hypotheses and the measured standards for theoretical
research on the Competitive capability of marketing in enterprises/consumer
electronics department stores
1.2.1. Definition, essence and the position of marketing competitiveness of
company and consumer electronic department stores
The principles of marketing based on the values and characteristics of the
consumer electronic department stores and its SBUs that provide the concept of the
marketing competitiveness in the company and consumer electronic department store
could collect some marketing competitiveness and supply the value for customers
that create the basis of business and SBU electronic deoarment stores. Thus, it could
set up the competitive advangtages and increase the sustainable commerce in
comparison and the competitors in the target market.
1.2.2. Theoretical basis and research hypotheses
Marketing strategy competitiveness and marketing competitiveness.
Marketing tactics competitiveness and marketing competitiveness.
Dynamic marketing competitivity and and marketing competitiveness.
1.2.3. Establishing the theoretical research model of the separated
Marketing Competitive capability and synthesized marketing competitiveness of
company/ electronics department store
1.2.4. Designing and developing the theoretical research scale
1.3. The criterias and components of impact on marketing competitiveness
in electronic deparment stores in a particular area.
1.3.1. The criterias to assess the marketing competitiveness in electronic
department stores.
Synthesized marketing competitiveness of company/ electronics department
store
including: HMCCi – ĐTB ith observed variable i = [1,12]
HMCC consists of the competitiveness creating the competitive advantages in
the market (HMCCmp) and competitiveness creating the competitive advantages in
commercial growth (HMCCtg) of electronics department store, including:
Marketing strategy competitiveness, marketing tactics competitiveness, dynamic
Contribution of the components to the performance of strategy marketing,
marketing competitivity.
marketing tactics, dynamic and synthesized marketing competitive capability.
*SMO + β2 *RAQ + β2
*CME + β3 *CSQ + β3
*DME *RPP + β4
*RSA + β5
* ROD
SMC = β1 TMC = β1
*MIP + β2
*MCR + β3
*MIC
*MAA + β4 *DMC
*TMC + β3
*SMC + β2 * Normalized regression coefficient reflects the importance of the
DMC = β1 HMCC = β1 Including: βi
ith independent variable to the dependent variable
HMCC đtct – synthesized marketing competitive capability of competitors.
Marketing competitive ccapability of comparison in electronics department store.
1.3.2. The components having impacts on the marketing competitive
capability of electronics department stores.
The marketing competitiveness of each department store would be affected by
many different factors. However, the author could divide them into 2 categories: its
domestic and external factors
1.3.2.1. The domestic factors of the electronics department store.
a. Qualification and capability of organizing and managing electronics
department stores.
b. Equipment, technology.
c. Labor skills in electronics department stores.
d. Financial capability of electronics department stores.
e. Research and development capability of electronics department stores (R&D)
f. The position of the electronics department stores in the competitive market
g. Intangible factor Dynamic competitiveness of electronics department stores.
1.3.2.2. The external factors affecting the competitiveness of electronics
department stores
a. Market
b. Regulations and Policies
c. Urban infrastructure
d. Other sectors and support services
Chapter 2: The reality of marketing competitiveness for the consumer
electronics department stores in Hanoi market
2.1. Overview of market and electronic retail sector in Hanoi
Macroenvironment
ECONOMIC
POLITICAL
Intermediaries
Suppliers
Financia l organiza tion
Union
Customers
Industry environment Enterprise
Publics
Shareholders
Competitors
Special interest group
CULTUAL SOCIAL
TECHNOLOG ICAL
2.1.1. The characteristics of marketing enviroments in Hanoi
Image 2.1: Some marketing environments in Hanoi
Source: Mai Thanh Lan and partners (2015)
2.1.2. Overview of electronics products in Hanoi market
By the survey according to the research model in the systems of electronic
department stores in Hanoi, the electronic retail company also provide many types of
electronics products with the variants; diversed manufactures (domestic and
international companies). The electronic products are also divided into many
categories:
Table 2.4: Categories of products in electronic department stores.
No 1 2 3 Products Electronics Phone, Ipad Refrigeration Details Televisions, Digital media, smart box Mobile, Tablet, desk phone Airconditioner, refrigerator, washing
4 5 6 Computer equipment Sounds Other machine Personal computer, computer monitor Karaoke, sound system Video cameras and Camcorder
Accessories 2.1.3. Overview of the features of demand and behavors in Hanoi market.
In reality, consumers would go the stores, electronics centres to buy and look for
the new products that meet their demands of technolody. In the department stores,
almost customers come to the stores everyday to buy the many products such as
smartphones, Refrigerated products, computer equipment.
2.1.4. Overview of the retail sector and electronics supply chains in Hanoi
market
In Hanoi, there are many places to buy electronics products such as shopping
malls, electronic department stores such as Pico, Tran Anh, The gioi di dong, Nguyen
Kim…to electronics stores.
2.1.5. Overview of the developed process of classification of electronics
department stores in Hanoi
The development of consumer electronics department stores in Hanoi in
association with the development of department stores and shopping malls in the
period of market economy and the intergration of the economy.
2.2. Description of testing method to establish a practical research model on
marketing competitiveness of electronics retail department stores in Hanoi
market
2.2.1. Process and assessment criterias for the model, the theoretical scales
To verify the theoretical scales as well as assess the conprehensive assumptions, the
research model often use the tools as below:
Checking the reliability of Cronbach’s alpha
Checking by EFA
Assessing by CFA
Regression analysis
2.2.2. Describing qualitative and quantitative research samples
2.3. The results of examing the scale, the theorical research model of
marketing competitiveness in the electronics department stores in Hanoi market.
2.3.1. Marketing strategy capability in the electronics department stores
According to appendix 4, KMO = 0,803 > 0,50 that meets the EFA’s
requirements. At the same time, according to Kaiser (1974), if KMO > 0,8 is a good
standard, complementing of EFA is acceptable. The results of assessing Bartlett is
Sig. = 0,000 < 0,05, we could reject Correlation matrix to be Identity matrix. It
means that the variables are linked together so we could implement EFA. Thus, the
results of assessment show that the data is associated with the results to implement
EFA for the analysis of marketing competitiveness in electronics department stores.
2.3.2. Marketing tactics capability of electronics department stores
According to appendix 5, KMO = 0,762 > 0,50, for EFA’s requirments. And
regarding Kaiser (1974), if KMO > 0,7 is quite good, implementing EFA is acceptable.
The results of Bartlett is Sig. = 0,000 < 0,05, we could reject the Correlation matrix to
be Identity matrix. It means that the the variable could have relationship with each
other. Thus we could address EFA. Thus, the results suit for the complement of EFA
for the model of marketing strategy competitiveness in electronics department stores.
2.3.3. Dynamic marketing capability in the electronic stores.
According to appendix 6, KMO = 0,718 > 0,50, for EFA’s requirments. And
regarding Kaiser (1974), if KMO > 0,7 is quite good, implementing EFA is acceptable.
The results of Bartlett is Sig. = 0,000 < 0,05, we could reject the Correlation matrix to
be Identity matrix. It means that the the variable could have relationship with each
other. Thus we could address EFA. Thus, the results suit for the complement of EFA
for the model of marketing strategy competitiveness in electronics department stores.
2.3.4. Comprehensive marketing capability in the electronics department
stores.
According to appendix 7, KMO = 0,718 > 0,50, for EFA’s requirments. And
regarding Kaiser (1974), if KMO > 0,7 is quite good, implementing EFA is acceptable.
The results of Bartlett is Sig. = 0,000 < 0,05, we could reject the Correlation matrix to
be Identity matrix. It means that the the variable could have relationship with each
other. Thus we could address EFA. Thus, the results suit for the complement of EFA
for the model of marketing strategy competitiveness in electronics department stores.
2.4. The analysis of statistics for describing the reality of marketing
competitiveness in the electronics retail department stores in Hanoi.
2.4.1. Marketing strategy competitiveness
Because almost electronics department stores are also interested in the
organization and marketing activities and develop the advantages of comparison with
other retails, it could focus on implementing the management of target marketing
strategy. However, two indexs reflects the marketing strategy competitiveness that is a
low standards: positioning competitiveness of primary capability, difference of
electronic department stores.
2.4.2. Marketing tactics competitiveness
Marketing tactics competitiveness gains 3.15 points above medium. Because
electronics department stores are also interested in exploring tools of the marketing
tactics to construct, transfer, communicate, and execute the value of the target
consumers and effect to the performance of marketing strategy. Five indexs of
marketing tactics competitiveness is above 3 points. The components of
competitiveness are:
Retail goods
Ranking of customer service quality
Positioning the price and practicing the retail price
2.4.3. Dynamic marketing competitiveness
Dynamic marketing competitiveness is 3.01 point, a lowest level in the structure
of comprehensive marketing competitiveness. However, the efforts of electronics
department stores in Hanoi in application of dynamic marketing competitiveness also
showed: Reforming the products and retail service, developing the potential market.
2.4.4. Comprehensive marketing competitiveness
Comprehensive marketing competitiveness of electronics department stores in
Hanoi is 3.12 points, rated near above medium. It reflects the advantage of
competitiveness when comparing with the types and the scale of retail with electronic
products in the nation and in Hanoi for electronic retail in the market. Overall, with the
intergration of economy, the electronics department stores with the comprehensive
marketing competitiveness could show the dramatical changes of the retail systems
and electronic retail distribution market in Hanoi and in the nation
2.5. The general assessment of reality and reasons for limitations
By analyzing the reality of marketing competitiveness, there are some conclusons
as below:
2.5.1. The strengthnesses and advangtages of marketing competitiveness
First, the electronic retail department stores also determined the perspectives as
well as the groups of index measuring marketing competitiveness for the
consumers’value.
Second, marketing competitiveness of the electronic department stores is a higher
standard in comparison with the types of electronics retail sector. The competitiveness
in the market show the pioneers of electronics retail sector in Hanoi.
Third, the development of establishing marketing strategy competitiveness in
electronic market is implemented, especially the strengthness of setting up the marking
capabity and primary marketing competitiveness in comparison with other competitors
in Hanoi market.
Four, there is a clear progress in marketing special strategy competive capability
with the factors affecting the consumer’s value and the customer assessed it positively.
Five, By the pressure of market competitiveness and fluctuation, changes of
electronic department stores, the first stage of developing factors affecting the dynamic
marketing competitiveness, especially good identification, absorbing, adaptive,
products’ and services’ innovation performance.
Six, by the efforts of developing and progressing the factors of intergrated and
total marketing competitiveness, the electronic department stors in Hanoi would set up
the foundation to gain the competitive advantages in comparison with other
competitors by the popularity in the market.
2.5.2. The limitations and weaknesses of marketing competitiveness
First, the awareness and direction of competitive stratery is belonged to the
factors of marketing tactics competitiveness, no comprehensive progress, no balance
to factors of marketing strategy competitiveness and dynamic marketing
competitiveness.
Second, the electronic department stores in Hanoi have some limitations in the
core markting competitiveness in the perspectives such as : products, retail service,
human resources, retail promotion and brand images. It is an important elements for
the success of competitiveness.
Third, in the ruthless competitiveness of electronics retail sector, the pressures of
famous brands would change the market. While, the factors of dynamic marketing
competitiveness have some limitations, especially absorbing performance, setting up
of new information and knowledge, adapting and changing the marketing in the each
context, creative marketing capability.
Four, the limitation in consumer value distribution of capability the output of
factors of marketing strategy competitiveness, especially the competitive factors about
price, quality, customer service, service brands. The important points in marketing
competitiveness is the efficiency of marketing performance (3.15 points), but the
consumers’ value of marketing competitiveness is significantly lower (3.04 points)
Five, there are some troubles and limitations in best practice ranking
competitiveness in comparison with the strengthness of modern retail and the FDI
competitors (inferior to 1 level of quality 3.20 medium/ 4,03 Fair) .
Six, marketing competitiveness could not the foundation of positioning
competitiveness advantages in comparison with the competitors in the electronic retail
marketing in Hanoi market.
2.5.3. The reason of limitation
2.5.3.1. The main objective reasons
Vietnam's macroeconomy over the past 5 years has dramatically developed, the
marcoeconomy index and national competiveness isrecognized, appreciated in
comparison with ASEAN areas. However, the difficulties and instabilities of the
microeconomy in general and the financialbanking system, public investment and
corruption, the "hot" development of average income would have impacts on the faith
of market, the quality of products and retail service through the effecs of business
strategy and marketing competitiveness capability in consumer electronics department
stores and retail manufactures.
2.5.3.2. The subjective reasons
The method of marketing management in electronics department stores in Hanoi
is still focus on marketing strategy, operations, the factors of marketing strategy
management and development of competitive advantages dynamic marketing has not
been properly respected and arrangement for multifunctional implementation are clear
and reasonable.
Chapter 3: Some ideas and solutions to improve the marketing
competitiveness of Electronics department stores in Hanoi for the over the period
to 2025
3.1. Identify opportunities, challenges and ideas to improve the marketing
competitiveness of Electronics department stores in Hanoi over the period to 2025.
3.1.1. Opportunities to improve marketing competitiveness of Electronics
department stores
* Opportunities from economic environment
* Opportunities from retail market
* Opportunities from customers
* Opportunities from competitiveness in international integration market
3.1.2. Challenges in improve marketing competitiveness of Electronics
department stores
* Challenges from Hanoi retail market
* Challenges from other forms of electronics retail
* Challenges from product providers
* Challenges from human resource’s quality
* Challenges from customer behaviour
3.1.3. The development orientation of retail department stores in general
and electronics department stores in particular to 2025 and a vision to 2030
Orienting the development of shopping center near public transport hubs,
meeting both the regulatory conditions and the demand of consumers.
3.1.4. Ideas to improve the marketing competitiveness of electronics
department stores in Hanoi over the period to 2025.
On the basis of the socioeconomic development plan for the period of 2021
2025 and Master plan on socioeconomic development of Hanoi to 2030, with a vision to 2050;current situation and problems posed to improve the marketing
competitiveness of retail department stores in Hanoi, the author would like to suggest
7 ideas to contribute to the planning of some solutions to improve competitiveness for
department stores in Hanoi in the period to 2025.
3.1.5. Identify the basis to establish core marketing competencies for
electronics department stores in the period to 2025
3.2. Solutions to improve strategic marketing competitiveness
3.2.1. Renew the marketing system’s operating mechanism of enterprises/
electronic department stores
The marketing systems of a enterprise/ electronic department stores consists of
4 subsystems: Information subsystem; Planning subsystem; Organization and
enforcement subsystem and marketing control system. These subsystems operate
according to the procedure and interact with each other to create a system mechanism.
3.2.2. Complete marketing organizing and develop core marketing
competencies.
3.2.3. Manage the different marketing competencies
3.3. Solutions to improve dynamic marketing competencies
In the context of HN retail market having an increasing presence of
international corporations and trading firms with high business capability and
competitive position, operating business while improving marketing's core resources
and dynamic marketing competencies at the same time. As dynamic marketing
competency is the hardest competency to imitate by business rivals yet brings fast and
high competitive efficiency to electronic department stores
3.4. Solutions to improve strategic marketing competency.
Consists of these following main solution:
Improve retail product marketing competency
Improve retail price marketing competency
Improve customer service quality marketing competency
Improve location, atmosphere and brand image marketing competency of
electronic department stores
Improve display marketing competency of department store
3.5. Solutions to improve the leadership skills, the governance of marketing
organization as the solidarity
3.6. Solutions to improve the state management policy on the development of
electronics retail department store in Vietnam.
Regarding the policy on controlling economic demand of foreign electronics
retailers
Regarding the policy on planning to develop electronics retail department store
network.
Regarding the policy on attracting large investors, developing the modern
electronics retail department store.
Regarding the support of competitiveness development for companies and domestic
electronic products and regulation of the minimum rate and the requirement to display
electronics that made in and made by Vietnam in electronics retail department stores.
Regarding the encouragement and support for Vietnamese give
priority to Vietnamese goods' campaign.
Regarding the market management, managing the import electronics and
protect the right of domestic consumers and manufactures.
CONCLUSION
The electronics retail market of Vietnam in general and in Hanoi in particular has
been getting more and more fierce competition, creating a good premise for the
development of electronics retail systems as well. It is a ideal factor to address the
research, apply of perspectives and opinions of modern business administration,
upgrade the quality and efficiency of exploitation and enhance competitiveness,
especially marketing competitiveness is an important part to maintain the competitive
position of company. Therefore, the problem of enhancing the competitiveness of
electronic department stores in Hanoi is very crucial, meaningful about science and
practice in the future ( a vision form 2025 to 2030). When the business environment
and Vietnam’s and Hanoi’s electronics retail environments is influence by
liberalization, globalization and the tendency in protecting the national trade
associations of prominent countries, requirements in the implementation of new
generation agreements, dramatic penetration of retail giants, the enormous impact of
the 4.0 revolution and the huge impact of the covid19 pandemic.
Based on the research purpose and application of scientific research method, the
thesis named: “Enhancing marketing competitiveness of department
stores and electronics chain stores in Hanoi market” that gained some research results
and contributions for science and society.
First, on the basis of systematization, the upgrade of theory and research about
marketing competitiveness of value established the theoretical frameworks of
marketing competitiveness in the electronics department stores in Hanoi according to
the domestic and international scientist such as: Nguyen Bach Khoa, Tran Minh Dao,
P.Kotler, K. Keller, M. Porter. They would define the definitions, the features of
marketing competitiveness in electronics department stores and some research
problems: marketing strategy competitiveness marketing tactics competitiveness
dynamic marketing competitiveness and comprehensive marketing competitiveness. In
addition, the thesis could set uo the assessment scale to evaluate the marketing
competitiveness of electronic department stores. Thus, the thesis would select and
determine the research model on marketing competitiveness (marketing strategy
competitiveness marketing tactics competitiveness dynamic marketing
competitiveness and comprehensive marketing competitiveness).
Second, the determining and researching the groups of impact factors and
conditions to enhance the marketing competitiveness in the electronic department
stores in the different areas and in Hanoi.
Third, on the basis of overview of economy society and the electronic retail
market in Hanoi in the past and the impacts of external factors to the developments of
its quality, performance, efficiency and position in the electronic retail market in
Hanoi.
Four, testing the theoretical model and the results of raw data (through
interviews, questionares about the managers marketing, customers in the electronics
department stores in Hanoi with the qualified surveys) could classify the practical
research model about the comprehensive marketing competitiveness in electronics
department stores in Hanoi.
Five, the application of practical model to analyze the statistics of marketing
competitiveness reality in electronics department stores in Hanoi ( by the research
models) marketing strategy competitiveness marketing tactics competitiveness dynamic
marketing competitiveness and comprehensive marketing competitiveness) could find out
6 strengthnessé/ advangtages; six weaknesses/ limitations and the reasons (5 objective
reasons and 6 subjective reasons) in enhancing the marketing competitiveness in
electronics department stores in Hanoi in the past and in the present. The results and
statistics analysises could establish the practical arguments and issues for enhancing
marketing competitiveness of electronics retail department stores in Hanoi with a vision
from 2025 to 2030.
Six, the application of research models about the marketing competitiveness for
4 famous electronics department stores in Hanoi namely Tran Anh, Picco, HC, The
gioi di dong. The research could give various conclusions about the reality of
marketing competitiveness in these department stores.
Seven, based on the assessment of challenges and opportunities as well as the
opinions for developing the electronics department stores in Hanoi, the thesis could
recommend various solutions: first, the solutions of enhnancing marketing strategy
competitiveness; second, the solutions of improving dynamic marking
competitiveness; third, the remedies of promoting the marketing tactics
competitiveness; Four, the remedies of increasing the leadership ability of electronics
department stores as a union; Five, the proposals of complementing the governmental
management of policies in developing Vietnamese electronics department stores. All
groups of solutions could analyze through the conclusions, the research findings; the
reality assessment and experienes of famous researchs. Five groups of solutions not
only promote the marketing competitiveness but also solve the impacted factors and
the reasons in the reality of marketing competitive capability in the electronics
department stores in Hanoi.
Thanks to the results and practical science contributions, the thesis also
completes the comprehensive and detail purposes. Although the thesis could have the
efforts and supports of the enthusiastic guidance of scientists, especially Prof. Dr.
Nguyen Bach Khoa, Associate Prof. Dr. Nguyen Hoang but the research results of the
thesis also exist some limitations due to the conditions and ability of the postgraduate
(the limitation of raw data, the unspecificed remedies for each type of electric
department stores). This thesis would be the premise in the futher research in the
immediate furture for the author.
