Analysis of Marketing Strategies at Nguyen Kim Shopping Center

This report analyzes the marketing strategies of Nguyen Kim Trading Joint Stock Company, a major electronics retailer in Vietnam. It begins with an introduction to the company's history and objectives, followed by an overview of marketing concepts such as production, product, selling, competition, and societal marketing. The report then examines Nguyen Kim's current marketing practices, including its customer-oriented, relationship marketing, and societal marketing approaches, as demonstrated through its product offerings, pricing strategies, promotional activities, location choices, and omnichannel marketing efforts. The report also discusses Nguyen Kim's focus on customer service, personalization, security, and website design. The report concludes with a comprehensive assessment of Nguyen Kim's marketing strategies and offers value propositions to improve the company's marketing effectiveness. The report is contributed by a student to be published on the website Desklib, which provides AI based study tools for students.

Vietnamese Name: Nguyễn Trung Kiên
Student ID: F13-280
Class: F13B
Email: [e-mail]
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1. The purpose of the report and an introduction to the Nguyen Kim shopping center
Company Introduction
Nguyen Kim Trading Joint Stock Company was founded in 1992 as a store specializing in
wholesale and retail electronic and refrigeration products. Since then, the company has
gradually expanded into other fields such as trade, service, real estate business,
manufacturing and assembling electronic products. Nguyen Kim is regarded as the first
electronics center to be established on a large scale and with high professionalism, with a
network of shopping centers spread throughout the country, particularly in major cities such
as Hanoi and Ho Chi Minh City.
Company History
Nguyen Kim opened the first electronics store at 6Bis Tran Hung Dao from 1996 to 2000.
Nguyen Kim established the first modern electronics retail center in Vietnam under the name
Saigon - Nguyen Kim Shopping Center from 2001 to 2005, as well as the first electronics
retail website in Vietnam and a sales channel specialized B2B products. From 2006 to 2011,
the company transformed its management model and business operations into a joint stock
company. Main and strategic cooperation with all electronics corporations as we expand from
one center to many centers in provinces and cities. Developing from 1 center into many
centers in provinces and cities main and strategic cooperation with all electronics
corporations.
Objectives
To demonstrate my understanding of the marketing concepts, the marketing process, the roles
and responsibilities of the marketing manager as well as the marketing department in the
business in general and in Nguyen Kim in particular. In addition, I will offering some value
propositions for Nguyen Kim to improve the effectiveness of the company's marketing
activities.
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2. An overview of the marketing concept, including current and future trends.
Marketing concepts
 The production concept is the most operationally oriented of the marketing
principles on this list. It speaks to the human reality that they want goods that are
readily accessible and affordable. The basic concept behind this theory is that
businesses would want to produce as many low-cost products in large quantities as
possible in order to maximize profitability and scale (Gamble, Gilmore, Mccartan-
Quinn and Durkan, 2016). Customers are believed to be concerned mainly with
product availability and low costs, even though their requirements may not be
completely addressed (Hooley, Lynch and Shepherd, 2015). However, I believe that
such a strategy is most effective when a business operates in high-growth markets or
when economies of scale are crucial. The problem with this idea is that companies
risk not delivering high-quality goods and may have problems with customer service
as a result of impersonal production. Furthermore, the manufacturing concept is a
relic from a time when there was little or no competition. The more I produce at such
times, the more the product is consumed.
 The product concept is more concerned with the customer than with production and
business output. Customers prefer products that have quality, performance, or unique
features (Manrai and Meadow, 2015). This marketing philosophy believes in potential
consumers and how product options, product quality, and the benefits they obtain
from the product and the company they invest in are all important factors in their
brand loyalty (Houston, 2017). Under this marketing concept, businesses would
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concentrate on developing superior goods and enhancing them over time. Many
companies, on the other hand, struggle to strike a balance between the need for a
commodity and marketing requirements. Focusing on the consumer while also
describing marketing's position and industry leadership is a fine line to walk.
 The selling concept is regarded as the foundation of marketing efforts because it
holds that people will not purchase enough of a company's product and that
businesses must persuade them to do so (Blotnicky, 2016). If an organization has a
strategic strategy in place to efficiently encourage further buying among its future
buyers, this idea gives it a lot of strength (McGee and Spiro, 2018). When a business
is faced with overcapacity and has to sell what they produce rather than what the
consumer wants or desires, this action is often used. Of course, I understand that
selling isn't the only way to achieve full marketing success in today's marketing.
Businesses that use this marketing strategy must be adept at locating potential
consumers and emotionally persuading them of the advantages of their "unwanted
product."
 The concept of marketing is the concept of competition. It's a marketing concept
that says a company's success is measured by marketing activities that deliver a better
value proposition than rivals (Patsiaouras, 2019). This definition focuses on the needs
and expectations of target marketing, as well as offering superior value to the
competition (Bastos, W., Levy, S. 2015). Marketing research, on the other hand,
uncovers customer requirements that can then be used to guide a company's
innovation process. Allowing customers' expressed needs to guide a company's
innovation process isn't always a good idea because customers can't express needs
that go beyond their own experiences. As a result, when an organization focuses its
innovation process on the articulated needs of its consumers, it can only create
incrementally improved goods than the ones they already use.
 The definition of societal marketing is the most modern and forward-thinking
marketing mindset to have. Societal marketing is define as a marketing concept that
believes in giving back to society by delivering higher-quality goods that help to
make the world a better place (Dickinson, Roger, Herbst, Anthony, and
O'Shaughnessy, John, 2016). This orientation arose as some questioned whether
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marketing and business are addressing society's massive problems such as
environmental degradation, resource scarcity, population growth, poverty, and social
disruption (Vasconcelos, 2014). In societal marketing, however, the return is a better
society with less crime, pollution, or other ills, benefits that are unrelated to monetary
gain. As a result, societal marketing typically operates on a shoestring budget and
may struggle to find funding.
In my opinion, Nguyen Kim is currently using three marketing concepts including:
Customer-oriented concept, relationship marketing concept and societal marketing concept,
which is shown through the marketing mix as follows.
 Customer-oriented concept
 Product
 Product assortment
Products at Nguyen Kim are plentiful and diverse, ranging from popular to intermediate and
high-end product lines from three major industries, namely entertainment,
telecommunications, and informatics, with a total product count of up to 50,000 .
Furthermore, all products are genuine, high-quality items from reputable manufacturers such
as Sony, Toshiba, Samsung and so on. Furthermore, the company updates the latest products
to introduce to customers on a regular basis.
 Customer and supporting service
Nguyen Kim also provides retail service through its e-commerce website. Nguyen Kim's
website enables this company to sell hundreds of millions of products across dozens of
product categories. Customers can easily find all information related to Nguyen Kim's
products that they are interested in, such as product status, features, specifications, and so on.
Information such as product status, features, specifications, and so on are provided in a
specific and easy-to-understand format.
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 Price
 Pricing strategies
With the characteristic that distribution companies' product prices are heavily influenced by
factors such as exchange rates, taxes, freight, and storage charges, the company's price
strategy is a flexible price strategy based on market fluctuations, regularly adjusting selling
prices to be the most profitable for consumers while ensuring profits for the company. Prices
at electronic stores and supermarkets are listed and publicized on the company's website to
allow customers to easily compare prices between distributors. Nguyen Kim's product prices
are also very flexible in comparison to competitors' prices. With such a pricing policy, the
product price will be low, close to the price of the imported company, allowing the consumer
to purchase the product at a low cost.
 Discount pricing
Nguyen Kim, in particular, is willing to "sacrifice" a portion of profits for specific products
on occasion in order to attract a large number of customers at the same price. With an average
interest rate of 20% for an electronic product, Nguyen Kim will accept a reduction in interest
rate to 7-8%, even 3 - 5%, and profit through vendor bonus large sales. In addition to the
above-mentioned regular subsidy policy for customers, the company also has great
promotions to attract customers, with discounts ranging from 5% to 30% and even 50%, as
well as attractive gifts or coupons. Nguyen Kim can encourage shoppers in this way by
offering promotions and discounts.
 Place
 Location
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Nguyen Kim has a large network of centers that cover major cities and are frequently
located in urban or densely populated areas. It is easy to draw the attention of passing
customers with its large parking lot and large signs. Nguyen Kim's three shopping centers
all have a large area ranging from 4000 to 5000 m2 and 2-5 floors to provide customers
with the best shopping experience possible.
 Omnichannel
Nguyen Kim has also implemented omnichannel marketing through digital channels such
as Facebook, website, Zalo, marketing channels such as YouTube, and email marketing.
Although Nguyen Kim's omnichannel model has not yet been finalized, it has assisted the
company in interacting with customers in order to understand their portraits and consumer
behavior, reach more customers, and thus increase sales row.
 Presentation/ Physical Evidence
Inside Nguyen Kim's shopping area, there are always bright enough lights for customers to
see the products on display most carefully, the layout space does not try to take advantage of
the area, but the layout of the products is very mineral, standard, scientific standards of the
company for the entire system in order to create customer comfort. For customers to shop,
products of the same type are usually organized into zones and floors. The products are also
organized by the manufacturer for easy selection. Especially during large price reductions for
consumers, promotion booths, discounted quality products, "golden" hours... are arranged in
"expensive," "front" positions with many products that are considered "hot" to attract
customers' attention while not making customers feel discriminated when purchasing at a
discount. The above store layout distinguishes Nguyen Kim from other shopping centers, and
customers who come to buy here will want to return. This has created an image of Nguyen
Kim as hospitable, all-in-all for customers, and always striving to provide an enjoyable
shopping experience.
 Personalization
Celebrating business achievements, birthdays, and anniversaries with company subscribers is
a perfect way to show gratitude and re-engage customer email list. I can nudge my
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subscribers to shop again by adding a little incentive on top of the celebration. Nguyen Kim
already tracks visitor behavior on their e-commerce site, allowing them to send more targeted
emails to prospects. Nguyen Kim has the ability to send highly targeted emails to website
users based on what they look for, which products they check out or add to their wishlist, and
several other factors. Nguyen Kim will have high-converting emails if he combines them
with urgency and scarcity.
 Security & Privacy
Nguyen Kim's company website contains a wealth of information about customers' privacy
policies. All information collected and used by the company is subject to customer consent,
and specific information collected and used by the company is provided to its customers in
the form of upgrade solutions and service changes to meet the needs of the customers.
Nguyen Kim guarantees that the customer's personal information will not be disclosed to
third parties, and the customer has the right to request changes, corrections, or even deletion
of the information collected.
 Site Design
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Nguyen Kim's website is simple in design, with a red color signature, and it offers clear
product categories and promotional information that is constantly updated for easy customer
follow-up. Although Nguyen Kim's website contains useful information, it does not prioritize
the creation of eye-catching elements to attract customers.
 Relationship Marketing Concept
With the strong development of the brand since the end of 2009, Nguyen Kim has had a
program to issue VIP cards to loyal customers to receive special customer care policies of
Nguyen Kim to thank customers on a regular basis. These customers will benefit from
discounts on shopping, maintenance, free product cleaning, product giveaways, and so on.
This is a very effective program for retaining loyal customers, demonstrating Nguyen Kim's
concern and care, and demonstrating the company's leaders' foresight when focusing on
broadcasting, grow steadily and firmly on the backs of devoted customers
 Societal Marketing Concept
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In addition to attractive promotions, Nguyen Kim also has a nest organizing a comprehensive
savings program for the benefit of the community. Specifically, beginning April 18, 2009, at
two Saigon shopping centers - Nguyen Kim, District 1 and Tan Binh, Nguyen Kim has
organized a promotion program to distribute free of charge, not for purchases that Nguyen
Kim for City residents on the occasion of the April 30 celebration. It is a free program with
useful products such as a G phone - private room phone, a free chat mobile sim for a year in
the Vina network nationwide, a free air network, and no subscription fees. Nguyen Kim has
conveyed the message that Nguyen Kim is always willing to take practical care to benefit the
community in order to serve the essential needs of telecommunications and Internet
technology through this comprehensive savings program. Its mission is also to serve the
community by providing Vietnamese consumers with the best added value in the Nguyen
Kim brand's shopping market.
3. Marketing Process
 Understanding the marketplace
Marketers must first comprehend the needs and expectations of their clients, as well as the
marketplace in which they work. Requires, desires, and demands; consumer offerings goods,
services, and experiences are the five basic customer and market concepts: Grönroos (2014)
described value and satisfaction as "exchanges, relationships, and markets."
At this point, I will conduct market research, as well as customer and customer purchasing
behavior. I will conduct micro-environmental studies using the PESTEL analysis, followed
by micro-environmental studies using Porter's Five Forces. Analyzing the business
environment will assist me in evaluating the attractiveness of the market, as well as learning
about the behavior of customers, suppliers, and competitors in the market. It also assists my
company in being aware of the market's strengths, weaknesses, opportunities, and threats,
from which to develop reasonable and timely marketing policies to capitalize on good
opportunities such as dealing with hazards. These will aid me in the next step of determining
my target market.
 STP strategy
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Marketing management is the art and science of identifying target audiences and establishing
successful partnerships with them (Camilleri, 2017). The marketing manager's mission is to
identify, attract, maintain, and grow target customers through superior customer value
formation, distribution, and communication .
First, I must decide who it will serve. This is accomplished by segmenting the market into
customer segments (market segmentation) and selecting which segments to target (target
marketing), as well as providing a value proposition, which is the set of benefits or values
that the company promises to deliver to consumers in order to meet their needs. I understand
that Nguyen Kim cannot serve every customer in every way. By attempting to serve all
customers, I will most likely fail to serve any of them well. Instead, I want to choose only
customers who can be served well and profitably. Nguyen Kim's target customers are those
who have a steady income of at least 4 million VND per month and prioritize product and
service quality over price and program promotion. Nguyen Kim has worked hard to
continuously improve the quality of customer service while also demonstrating Nguyen
Kim's very own culture, which is the culture of "All for customers."
 Design marketing program
The marketing program seeks to strengthen customer relationships by putting the marketing
strategy into action (Novelli, 2016). It consists of the firm's marketing mix as well as the set
of marketing tools used to implement the firm's marketing strategy. The four Ps of marketing
are the most well-known and simplest way of categorizing the major marketing mix tools:
product, price, place, and promotion. The well-known four Ps classification is a simple
framework that aids in categorizing the numerous tools available to marketing managers into
coherent groups (The Evaluation of Marketing Mix Elements: A Case Study, 2018).
If I were Nguyen Kim's marketing manager, I would keep the company's marketing program
oriented toward the current model, which adds a relevant element to the person. Applying this
model correctly will provide Nguyen Kim with a competitive advantage, allowing the
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company to stand out from its competitors in the eyes of customers. Nguyen Kim has applied
the 7P model relatively well, but there are still some limitations that must be overcome in the
future. For example, Nguyen Kim's location policy has not been as effective for the company
as it could be because Nguyen Kim now primarily locates her businesses in large urban areas
and densely populated areas.
The company overlooks a large number of potential customers in areas such as suburbs or
small provinces, which represent a huge opportunity for Nguyen Kim to expand market share
due to the increasing standard of living of the people, which leads to a significant increase in
demand for equipment in here. So, since I am the marketing manager here, I will perform
research and make suggestions to make the most of this opportunity.
 Build profitable relationships and create customer delight
The first three stages of the marketing process are understanding the marketplace and
consumer needs, planning a customer-driven marketing strategy, and constructing marketing
strategies, and they all lead to the fourth and most critical step: building profitable customer
relationships. This step's three key components are: managing marketing relationships,
changing customer relationships, and managing partner relationships (Bolton and Tarasi,
2007). Relationship marketing is a term used to describe the process of managing an
organization's relationships, although it is more generally known as customer relationship
management. CRM stands for customer relationship management, which is the method of
establishing and sustaining productive customer relationships by providing superior customer
value and satisfaction.
Nguyen Kim has also used a variety of CRM techniques effectively, such as Clubcard loyalty
cards and Sponsor club. However, if I had been Nguyen Kim's marketing manager, I would
have aggressively implemented a number of other programs. For example, Cloud-Based
CRM and Mobile CRM. I marketers can use their preferred CRM marketing tools wherever
and whenever they want with cloud-based CRM. Any technology, including smartphones,
laptops, and other handheld devices, is included. We can target every customer and reach our
sales goals around the clock with mobile CRM, just as we can with the cloud. I can take our
consumer insights and marketing strategies with us everywhere we go, all in the palm of our
hands, thanks to a safe app.
 Capturing customer value
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