DA NANG UNIVERSITY OF ECONOMICS
***
The Report:
MEGA MARKET VIETNAM’S PRODUCTS
AND SERVICES INNOVATION DURING THE
COVID-19 PANDEMIC
Supervisor : Mr. Lâm Minh Quân
Major : Service Marketing
Students’s full names : Phạm Phan Minh Phương
Đào Khánh Linh
Đặng Hồng Tiên Ngọc
Lương Thị Hằng
Đặng Quỳnh Ni
Class : 48K23.1
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TABLE OF CONTENTS
THE INTRODUCTION ............................................................. 3
THE CONTENTS ...................................................................... 6
1. The Mega Market Viet Nam’s Background ........................ 6
2. The Mega Market Viet Nam’s target customer ................. 10
3. The Mega Market Viet Nam positioning ........................... 11
4. The Mega Market Viet Nam’s marketing significance...... 13
5. The Mega Market Viet Nam’s current services ................. 13
6. The pandemic impacted the sale of those services ............ 16
7. Mega Market’s innovative services under the influence of
Covid 19 ................................................................................. 17
8. New points in Mega Market’s innovative services ............ 20
9. Actual ability to attract customers ..................................... 22
THE CONCLUSION ................................................................ 26
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THE INTRODUCTION
In the wake of the unprecedented challenges posed by the global COVID-
19 pandemic, businesses across diverse industries have been compelled to
reimagine their strategies, innovate relentlessly, and adapt swiftly to the
dynamically shifting landscape. Among these entities, Mega Market
Vietnam, a prominent player in the retail sector, has stood out for its
resilience, strategic acumen, and commitment to meeting the evolving
needs of its customers. This report delves into the intricacies of Mega
Market Vietnam’s journey through the tumultuous times brought about by
the pandemic, exploring the nuanced ways in which the company has
innovated its products and services to not only survive but thrive in the
face of adversity.
As the COVID-19 pandemic wreaked havoc on global economies, the
retail industry found itself at the epicenter of disruption. Lockdowns,
social distancing norms, and a palpable fear among consumers
significantly altered the dynamics of consumer behavior. Mega Market
Vietnam, with its expansive footprint and commitment to delivering
exceptional customer experiences, found itself at a crossroads. The
familiar shopping landscape underwent a paradigm shift, demanding a
radical reevaluation of existing business models and an agile response to
the emerging needs of the market.
In the face of uncertainty, Mega Market Vietnam displayed remarkable
resilience, leveraging its robust infrastructure, technological prowess, and
a customer-centric approach to weather the storm. The company swiftly
adapted to the new normal, implementing stringent safety measures in its
stores, fortifying its online presence, and redefining its supply chain
strategies. Moreover, Mega Market Vietnam recognized the imperative to
innovate across its products and services, understanding that the ability to
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anticipate and meet the unique demands of the pandemic-stricken market
would be the key differentiator.
This report unravels the threads of innovation woven into Mega Market
Vietnam’s product portfolio during the pandemic. From reimagined
product lines designed to resonate with the emerging needs of the health-
conscious consumer to the introduction of technology-infused solutions
that bridge the gap between convenience and safety, Mega Market
Vietnam has exemplified a commitment to staying ahead of the curve. The
exploration of these innovations serves not only as a testament to the
company’s adaptability but also as a source of inspiration for industry
peers grappling with similar challenges.
Beyond product innovation, Mega Market Vietnam has proactively
addressed the shift in consumer behavior towards contactless interactions.
From the seamless integration of online and offline shopping experiences
to the implementation of cutting-edge technologies facilitating safe and
efficient transactions, the company has redefined the contours of customer
service. This section of the report scrutinizes the multifaceted service
innovations undertaken by Mega Market Vietnam, shedding light on the
meticulous strategies employed to ensure customer satisfaction in an era
defined by social distancing.
As Mega Market Vietnam emerges from the crucible of the COVID-19
pandemic, this report concludes with a forward-looking perspective. What
lessons can be gleaned from the company's journey? How can the
innovations born out of necessity pave the way for sustained growth in
the post-pandemic era? These questions and more are explored, offering
insights not only into Mega Market Vietnam’s trajectory but also into the
broader landscape of business resilience and adaptability in the face of
unforeseen challenges.
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In essence, the following pages encapsulate a comprehensive exploration
of Mega Market Vietnam’s transformative journey during the COVID-19
pandemic, providing a nuanced understanding of the innovative strides
the company has taken to redefine the retail landscape.
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THE CONTENTS
1. The Mega Market Viet Nam’s Background
MM Mega Market Vietnam Company, a member of the Thai BJC/TCC
Group, inaugurated the first Modern Wholesale Center in 2002 in City.
Ho Chi Minh.
After more than 20 years of operation and development, MM Mega
Market Vietnam has expanded into 21 Wholesale and Supermarket
centers nationwide, along with 5 Goods Supply Stations, 2 Transit
Warehouses with more than 4,000 Employees and 2000 Product Supply
Partners.
MM Mega Market Vietnam (MMVN) develops a strategy towards
building a Modern Supply Chain, helping to connect directly from Farms
and Local Manufacturers with diverse Distribution Channels, ensuring the
Origin of Goods with over 90% of products made in Vietnam.
As a Leading Partner, MMVN provides Tailored Solutions for
Professional Customer Groups, meeting increasingly high Quality
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requirements with a diverse range of goods and Competitive Pricing
Policy.
Currently, MM Mega Market is a Goods Supply Partner to hundreds of
thousands of Professional Customers, including High-end Hotels,
Restaurants, Industrial Catering, Factory Canteens, Offices... across the
country.
• History of formation and development of Mega Market Vietnam
2002: Mega Market officially appeared in Vietnam
2016: Thai Charoen Group (TCC) - Mega Market's parent company
officially received the transfer of the hypermarket chain from Metro for
655 million Euro
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2017: TCC changed its brand name, from Metro Cash & Carry Vietnam
Co., Ltd. to MM Mega Market Vietnam Co., Ltd. (MM Mega Market
Vietnam) August
2019: Mega Market officially signed a Memorandum of Understanding
on cooperation with the Ministry of Industry and Trade in supporting the
export of Vietnamese goods to foreign markets.
• The core values that Mega Market aims for
Responsible business: Mega Market always ensures customer satisfaction
through diverse products with quality, competitive prices and excellent
service through many different sales channels. In addition, Mega Market
also actively cooperates and contributes to the development of the
community and locality.
Sustainable development: Mega Market constantly expands diverse sales
channels and develops its own branded products, thereby cooperating and
cooperating with agricultural cooperatives to contribute to building The
community as well as the locality is growing stronger and stronger. –
Technology and innovation: Mega Market always optimizes costs while
improving operational productivity to fully provide necessary products to
customers. In addition, Mega Market also personalizes customers'
experiences through converting its business model to digital.
Focusing on people: Mega Market believes it will turn core values into
reality. In addition, it builds a more professional working environment
while encouraging the development of personal capabilities. Motivate
employees by recognizing and rewarding individuals with good
performance.
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• Products at Mega Market
Vegetables, meat, sea food, Butter - Milk – Eggs, Fresh bread, Cake -
Candy – Cereal, Processed foods, Frozen foods, Alcohol and soft drinks,
electronic and office equipment, Household items and decorative items…
• Mega Market is a bridge to promote Vietnamese - Thai trade
For a long time, Vietnam and Thailand have been strategic partners and
have had long-term economic cooperation for 45 years since the
establishment of diplomatic relations in 1976. In the most recent decade,
investment capital flows directly into Vietnam each year increases by an
average of 13%. In fact, Thailand is the 9th largest investment partner
among 132 countries and territories investing in Vietnam with 588 FDI
projects, total registered capital reaching 12.5 billion USD.
In terms of trade activities, Vietnam is Thailand's second largest trading
partner. Accordingly, Thailand is Vietnam's largest trading partner in
ASEAN. Moreover, the total trade turnover of Vietnam - Thailand in the
period 2-15 - 2020 has an average growth of 7.3% per year. By 2020,
despite being affected by the COVID-19 pandemic, trade exchange
between the two countries still reached 16 billion USD (accounting for
30% of the total trade value of Vietnam and ASEAN countries).
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In recent years, the leading Thai wholesaler/retailer in Vietnam has had
many practical activities to promote Vietnamese products to the Thai
market as well as create a bridge to bring Thai businesses to learn about
Vietnamese products. agricultural products in the Vietnamese market. In
2019, MM Mega Market had a collaboration with the City Department of
Industry and Trade. Ho Chi Minh organized "Vietnamese Goods Week in
Thailand" at Big C Center (BangKok, Thailand) to create a bridge for
Vietnamese businesses to promote products, expand markets and
understand consumer needs. consumption and purchasing power of goods
distribution businesses in Thailand. Furthermore, since 2018, MM Mega
Market has started exporting Vietnamese agricultural products to
distribute in the system of 1,000 large and small supermarkets Big C
(Thailand) with output increasing sharply each year.
2. The Mega Market Viet Nam’s target customer
Mega Market's target customers are primarily individuals and businesses
in Vietnam seeking a wide variety of high-quality products and services
at competitive prices. The company caters to a diverse range of customer
segments, including:
- MM Mega Market's target customers are HORECA customer groups
(customers from the hotel, restaurant and bar industry) and other
professional customer groups.
- Individual consumers: Mega Market serves a broad spectrum of
individual consumers, from everyday shoppers to discerning individuals
seeking premium products. The company's extensive product offerings
cater to various household needs, including groceries, fresh produce,
home appliances, electronics, and apparel.
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- Small and medium-sized enterprises (SMEs): Mega Market is a key
supplier for SMEs in Vietnam, providing a wide range of products and
services tailored to their specific needs. The company offers competitive
prices, convenient ordering options, and reliable delivery services,
making it an attractive choice for businesses of all sizes.
- Restaurants and foodservice establishments: Mega Market is a leading
provider of food and beverage products to restaurants, cafes, and other
foodservice establishments. The company offers a vast selection of fresh
ingredients, frozen and dry goods, and specialized catering products,
catering to the diverse needs of the foodservice industry.
In addition to these core customer segments, Mega Market also targets
specific groups such as:
- Ex-pats and foreign residents: Mega Market caters to the unique needs of
ex-pats and foreign residents in Vietnam by offering a wide selection of
imported products and international brands.
- Online shoppers: Mega Market has a strong e-commerce presence,
offering convenient online shopping options for customers who prefer to
shop from the comfort of their homes.
- Wholesale buyers: Distributors, resellers, export businesses.
3. The Mega Market Viet Nam positioning
• Reputable and quality supplies for manufactory system
Keeping up with the latest modern working environment, the factories
constantly upgrade equipment and living areas to fully meet the
employees needs. Hence, MM Mega Market becomes the perfect supplier
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thanks to a wide variety of stationery and diversified fresh food at the best
prices
• High quality is top commitment
Through a strict monitoring process, every single product at MM Mega
Market Vietnam has ensured to having clear origin and being imported
from the most reputable manufacturers at the best cost. That has made
their difference in providing multi-industry products for each
manufactory.
• Optimal cost, perfect experience
Diversified products with competitive cost have created brand positioning
of MM Mega Market in Vietnam. At the same time, they constantly strive
to upgrade services, control the quality to ensure the satisfaction of all
customers when choosing MM Mega Market as the top partner.
*MM Mega Market’s remarkable achievements in Vietnam
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4. The Mega Market Viet Nam’s marketing significance
After changing the name from Metro Cash & Carry Vietnam to MM Mega
Market Vietnam, the new brand has implemented a number of strategies
to create a breakthrough in layout and diversify products to attract
customers. Some of these strategies include:
- Renovate the store layout
- Strong investment in the development of safe food supply chain
MM Mega Market promotes the application of pasting traceability codes
(QR codes) on food products.
This is a step to protect the basic right of customers to use safer and higher
quality food and create convenience for customers to actively check
products.
- Cooperate with local and international brands
- Regularly update product catalogs
- Promoting local specialties: MM Mega Market emphasizes and
promotes Vietnamese local specialties, introduced special regional
products only in Vietnam
These strategies have helped MM Mega Market Vietnam create a
breakthrough in product layout and diversification, bringing an interesting
and diverse shopping experience to its customers.
5. The Mega Market Viet Nam’s current services
• Core Services
Mega Market provides a comprehensive and convenient shopping
experience for customers. The company is a retail chain in Vietnam that
caters to both individuals and businesses, with a focus on wholesale and
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bulk purchasing. The core services provided by Mega Market Vietnam
include:
- Wholesale Shopping: Mega Market Vietnam primarily serves
businesses, including restaurants, hotels, and retailers, offering them the
opportunity to buy products in bulk at wholesale prices. This allows
business customers to manage their inventory more efficiently and
reduce operating costs.
- Retailer: The MMVN wholesale retail model stands out with the design
of high shelves, wide corridors, and characteristic large-sized packaging,
aiming at convenience when purchasing for the group of customers who
specialize in wholesale buying.
Mega Market Vietnam's core service is to be a one-stop shopping
destination for both individuals and businesses, offering a wide range of
products, competitive pricing, quality assurance, and convenience. It
plays a significant role in the wholesale and retail sector in Vietnam,
serving various customer segments.
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• Supplementary Services
Delivery Services: Many Mega Market locations in Vietnam offer
delivery services, allowing customers, particularly businesses, to have
their bulk purchases delivered to their doorstep. This is convenient for
those who may not have the means to transport large quantities of goods.
Online Shopping: Some Mega Market stores have an online shopping
platform, which enables customers to browse products, place orders, and
even schedule deliveries online. This is especially useful for businesses
that want to streamline their procurement process.
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6. The pandemic impacted the sale of those services
The COVID-19 epidemic has had many major impacts on the business
and operations of Mega Market, a large supermarket chain in Vietnam,
Change in shopping behavior: The COVID-19 epidemic has changed the
way people shop. Many consumers have prioritized online shopping to
avoid social contact and reduce the risk of virus transmission. This has
prompted Mega Market and other supermarkets to expand or improve
their online shopping services.
Change in product demand: Customers have changed their needs. They
focus on purchasing products related to resistance and personal health
such as masks, detergents, canned foods and frozen foods. This has
required Mega Market to change its goods supply habits and meet new
demands.
In summary, the COVID-19 epidemic has had a major impact on Mega
Market and the general retail trade industry, forcing them to adapt quickly
to changes in consumer behavior and business environment to maintain
operations. operate and ensure safety for customers and employees.
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7. Mega Market’s innovative services under the influence of Covid
19
After the Covid-19 pandemic, online shopping has maintained its number
1 position and this trend will certainly continue to be maintained in the
future. This explains why retailers, including MM Mega Market, have
been investing heavily in online sales channels to promptly meet customer
needs.
Mega Market, like many other businesses, has launched various
innovative services in light of the COVID-19 pandemic:
- Initially, MM Mega Market will develop an e-commerce platform
focusing on B2B opportunities.
- MM Mega Market will focus on customer groups that are individuals
and households. To implement this strategy, the company is starting to
implement a plan to expand its network, build more food transfer
stations, diversify sales channels, promote e-commerce and recruit more
employees talent.
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- Focus on developing both online and at the center simultaneously, also
known as the O to O (Online to Offline) model
- MM has actively responded to the action program of the Ministry of
Industry and Trade, joining hands to support domestic businesses to
overcome difficulties during the pandemic. In early October, this Thai
business officially organized "Vietnamese Goods and OCOP Products
Week (One Commune One Product)" in the city. Ho Chi Minh and
Hanoi with the participation of many industries and famous products
from many localities and regions of Vietnam.
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- Promoting the export of Vietnamese agricultural products to foreign
markets: MM strives to expand export markets t o foreign countries in
the context that agricultural products face many challenges in the short
and medium term due to Covid-19
- Online ordering and delivery: To minimize physical contact and
maintain social distancing, Mega Market may have launched or
expanded its online ordering platform. Customers can browse products,
place orders and have them delivered to their home. This service reduces
the need for in-store shopping and allows customers to shop from home
at their convenience.
- Contactless Payments: To reduce the handling of cash and credit cards,
Mega Market may have encouraged or implemented contactless
payment methods such as mobile payments or tap-to-pay systems. These
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methods allow customers to complete transactions without exchanging
cash or touching a payment terminal.
→ These events not only aim to stimulate domestic consumption and
support local businesses, but also help businesses find strategic
cooperation opportunities with new suppliers to develop together and
bring prosperity. Diverse products from many regions for MM customers.
8. New points in Mega Market’s innovative services
Mega Market's self-checkout and queuing service is a convenience that
helps customers save time when shopping. Instead of having to line up to
pay at a traditional cashier, customers can pay for the products in their
cart themselves. This service reduces queuing time and creates a more
convenient shopping experience.
Specifically, customers will often use automated cash registers or mobile
applications to scan barcodes or enter product information from their
shopping carts. They will then make payment directly through online
payment or at an automatic payment station at the store entrance.
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This self-checkout service reduces waiting time at the cashier counter and
creates convenience for customers. It also helps minimize contact
between employees and customers during the payment process, especially
in the context of the COVID-19 pandemic.
MM Mega Market opens sales channels for quarantined and blockaded
areas: Accordingly, MM will send to people in the blockade and medical
quarantine areas the ordering link via Email, Zalo message, Facebook or
directly calling Hotline 1800 799 998.
- People will have the option to order combos of essential fresh foods,
diversely designed and suitable for a family of about 4 people within about
5-7 days. MM always implements a price stabilization policy and commits
to ensuring food quality throughout the duration of the program.
- MM staff will contact to confirm order information and delivery time.
MM offers free delivery within a 10km radius when purchasing any 2
combos (except vegetable and spice combos).
MM Mega Market uses AI technology to control the number of shoppers:
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- This is a system operated by artificial intelligence (AI) technology that
can distinguish customers and employees through identifying
supermarket uniforms.
- The system includes cameras installed at the entrance and exit, and
connected to the central server system to analyze the actual number of
people shopping in the supermarket, sending warnings to the Management
Board if the limit is exceeded. regulations. Customers will also know the
actual number of people shopping in the supermarket through a live
display at the entrance and wait in line outside when the number exceeds
the allowed threshold.
- This measure is a solution to help more closely comply with MM Mega
Market Vietnam's 5K regulations, in order to commit to providing a safe
shopping experience and space for customers
9. Actual ability to attract customers
In order to achieve positive growth in theCovid-19 pandemic, we must
mention the appropriate strategies of management agencies and the efforts
of MM Mega Market to turn challenges into opportunities. The
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development and success of MM Mega Market have helped the brand
climb to the third position in the top 10 most reputable retail companies
in 2020 and become a corporation with a strong presence in the food
supply chain through various wholesale, retail, and online channels.
In 2020, the whole world started in a completely different situation, and
Vietnam was no exception. The Covid-19 pandemic disrupted all plans
and expectations for a new decade. However, behind the turbulence of the
disease, they gained new experiences and a more flexible mindset.
During the COVID-19 pandemic, MM Mega Market Vietnam has
implemented several campaigns to cope with the current situation and
support the community.
- Digital transformation and e-commerce: MM Mega Market quickly
deployed a digital transformation strategy in its operations and developed
its e-commerce segment. This was done to meet the demand for online
shopping and reduce direct contact.
- Ensuring food supply and price stability: MM Mega Market prioritized
ensuring an adequate supply of food for the public during the pandemic.
This campaign involved maintaining inventory and efficient goods
processing to ensure the stability of goods in the stores.
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- Creating a safe shopping environment: MM Mega Market implemented
necessary measures to ensure a safe shopping environment for customers
and employees. This included implementing hygiene practices,
temperature checks, and enforcing social distancing .
- Community support: MM Mega Market contributed financially and with
goods to support the community, especially those significantly affected
by the pandemic. This could involve providing funds for laid-off workers,
contributing to the construction of temporary healthcare facilities, or
supplying food and necessities to those in need.
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→ MM Mega Market is honored to receive a certificate of merit from the
People's Committee of Ho Chi Minh City for outstanding achievements
in COVID-19 epidemic prevention.
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THE CONCLUSION
In the annals of corporate resilience, Mega Market Vietnam's
response to the challenges posed by the COVID-19 pandemic
emerges as a beacon of adaptability and innovation. The journey
undertaken by the company reflects not only a commitment to
survival but an unwavering dedication to thriving in the face of
unprecedented disruptions. As we conclude this exploration into
Mega Market Vietnam’s products and services innovation, it
becomes apparent that the company's success is not merely a
triumph over adversity but a testament to the transformative power
of innovation.
At its core, Mega Market Vietnam's ability to navigate the uncharted
waters of the pandemic has been rooted in its adaptability.
Recognizing the imperative to evolve with the changing needs and
expectations of consumers, the company embraced a culture of
continuous innovation. This adaptability manifested not only in the
swift implementation of safety measures but also in the strategic
recalibration of product offerings and service delivery methods.
The evolution of Mega Market Vietnam's product portfolio stands
out as a case study in meeting consumer demands head-on. From the
introduction of health-centric product lines to the integration of
technology in product design, the company has showcased a keen
understanding of the pulse of the market. The holistic approach to
product innovation not only ensured the relevance of Mega Market
Vietnam's offerings during the pandemic but positioned the
company as a trendsetter in anticipating and fulfilling evolving
consumer needs.
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In the realm of service innovation, Mega Market Vietnam has
transcended the traditional boundaries of customer satisfaction. The
seamless blend of online and offline experiences, coupled with a
commitment to contactless interactions, reflects a foresighted
understanding of the changing dynamics of consumer behavior. By
redefining the contours of customer service, Mega Market Vietnam
has not merely facilitated transactions; it has elevated the overall
customer experience in an era dominated by the imperative of safety
and convenience.
As we glean insights from Mega Market Vietnam's journey, it
becomes imperative to distill the lessons learned into actionable
strategies for the future. The pandemic has underscored the fragility
of traditional business models and highlighted the necessity for
adaptability. Mega Market Vietnam's trajectory serves as a roadmap
for businesses across industries, emphasizing the importance of
innovation, customer-centricity, and an agile response to unforeseen
challenges.
As Mega Market Vietnam charts its course beyond the pandemic,
the innovations forged in the crucible of adversity serve as a
foundation for a resilient future. The company's ability to leverage
innovation not only for survival but for sustained growth positions
it as a vanguard in the retail landscape. The forward-looking
perspective encapsulated in this conclusion is not merely a reflection
on Mega Market Vietnam's journey but an invitation for businesses
to embrace innovation as a cornerstone for navigating the
uncertainties of the future.
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In conclusion, Mega Market Vietnam's odyssey through the
COVID-19 pandemic encapsulates a narrative of resilience,
adaptability, and innovation. As we turn the page on this chapter,
the indelible mark left by Mega Market Vietnam serves as an
inspiration for businesses to transform challenges into opportunities,
forging a path towards a future defined by innovation and
unwavering resilience.
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Market Đà Nẵng | Facebook
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