VIETNAM NATIONAL UNIVERSITY – HCMC INTERNATIONAL UNIVERSITY

SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

REPORT
RETAIL MANAGEMENT: BACH HOA XANH

GROUP 01

Advisor: Dr. Nguyen Hang Giang Anh

Name Student ID

Nguyễn Ngọc Phương Quỳnh IELSIU21229

Vũ Thị Thu Ngân IELSIU21329

Lê Thị Trúc Ly IELSIU21322

 TABLE OF CONTENTS
I. INTRODUCTION.................................................................................................7

II. PROPOSE RETAIL TYPE...................................................................................8

III. TARGET MARKET..............................................................................................9

3.1 Target Market Analysis.........................................................................................9

3.2 Strategy................................................................................................................12

3.3 Trade area............................................................................................................14

IV. LOCATION ANALYSIS....................................................................................17

V. RETAILING CHANNELS...........................................................................................

VI. MERCHANDISE MIX.......................................................................................33

VII. PRICING............................................................................................................35

VIII. Marketing Communication Mix.......................................................................42

8.1 Advertising..........................................................................................................42

8.2 Sales Promotions.................................................................................................53

8.4 Public Relations...................................................................................................56

8.5. Personal Selling..................................................................................................59

IX. CUSTOMER SERVICES...................................................................................61

X. STORE LAYOUT AND DESIGN.......................................................................69

XII. REFERENCES...................................................................................................72
 LIST OF FIGURES
Figure 1: Different types of products on Bach Hoa Xanh website............................11

Figure 2: Some of Bach Hoa Xanh’s supplier...........................................................12

Figure 3: Store design in each Bach Hoa Xanh store................................................13

Figure 4: Product sale in Bach Hoa Xanh website....................................................14

Figure 5: Map of Bach Hoa Xanh’s trading area around the University Village......15

Figure 6: Statistic of sales and number of stores of BHX at the end of July/2022....21

Figure 7: Level of change in the number of BHX in 2021 and 2022........................22

Figure 8: Bach Hoa Xanh location sites in Ho Chi Minh City..................................23

Figure 9: Website BachHoaXanh.com......................................................................31

Figure 10: App BachHoaXanh on CH play...............................................................32

Figure 11: Diagram of merchandise mix...................................................................33

Figure 12: Bach Hoa Xanh's store sales....................................................................35

Figure 13: Price bundling..........................................................................................36

Figure 14: List of discount products..........................................................................37

Figure 15: Fixed pricing for products........................................................................37

Figure 16: Green vegetables area..............................................................................38

Figure 17: Fish at Bach Hoa Xanh............................................................................39

Figure 18: Fresh fruit at Bach Hoa Xanh...................................................................39

Figure 19: Promotional items, buy 1 get 1 free.........................................................40

Figure 20: The elements of the Marketing Communications Mix............................42

Figure 21: Video advertisement of Bach Hoa Xanh..................................................43

Figure 22: Native advertisement of Bách Hóa Xanh.................................................44

Figure 23: TV ads of Bách Hóa Xanh.......................................................................45

Figure 24: Billboard of Bách Hóa Xanh....................................................................45

Figure 25: Banner of Bách Hóa Xanh.......................................................................46

Figure 26: Bách Hóa Xanh cooperates with Vinamilk..............................................47

Figure 27: Bách Hóa Xanh cooperate with Zalo.......................................................47

Figure 28: Figure: Actress Khả Như cooperate with Bách Hóa Xanh......................48

Figure 29: MWS Mái Ấm Charity Fund....................................................................50

Figure 30: Rate the product on BachhoaXANH.com to immediately receive a 40k

voucher......................................................................................................................51

Figure 31: Facebook post of Bách Hóa Xanh............................................................52

Figure 32: Tiktok account of Bách Hóa Xanh...........................................................53

Figure 33: Bach Hoa Xanh mobile application.........................................................56

Figure 34: Press release of Bách Hóa Xanh..............................................................57

Figure 35: Bách Hóa Xanh’s blog.............................................................................58

Figure 36: Bách Hóa Xanh’s Facebook story............................................................59

Figure 37: Product demonstration.............................................................................60

 LIST OF TABLES
Table 1: Customer related to demographic..................................................................9

Table 2: Factors affecting customer loyalty at Bach Hoa Xanh................................10

Table 3: Scoring model of the potential location ......................................................29

Table 4: Shipping price based on the weight.............................................................62

Table 5: Shipping price based on distance................................................................63

Table 6: Bach Hoa Xanh’s policy..............................................................................65

 I. INTRODUCTION
Bach Hoa Xanh is a Vietnamese department store chain founded in 2011. Bach Hoa
Xanh aims to provide a comprehensive range of essential products and services to
customers through a convenient department store system, with more than 2,000
stores in the Southern and South-Central provinces.

Fresh food, household appliances, personal items, and health care products are all
available at Bach Hoa Xanh. They also sell items for homes, offices, students, and
fairs. These stores offer the best products at reasonable prices and of high quality. At
the same time, Bach Hoa Xanh has many appealing promotional policies to assist
customers in saving money when purchasing. It has become one of the convenience
department stores trusted and chosen by customers for many years due to its rapid
development and prestige in the Vietnamese market.

The main activities of Bach Hoa Xanh are as follows:

- Providing fresh products: Bach Hoa Xanh offers high-quality fresh

vegetables, tubers, and fruits at reasonable prices.
- Selling daily consumer goods: They sells a wide range of consumer goods
such as packaged foods, drinks, confectionery, personal care products, and so on.
- Selling beauty and health care products: Sells health and beauty products
from well-known brands, such as cosmetics, pharmaceuticals, and vitamins.
- Home delivery service: They also offers customers home delivery service
with extremely low shipping fees.
- Customer consultation: Bach Hoa Xanh employees are well-trained and ready
to serve and advise customers as needed.
- Regularly update information about new products: Regularly updates
information about the most recent products on the market to make it easier for
customers to choose and shop.
-
 II. PROPOSE RETAIL TYPE
Bach Hoa Xanh, a popular supermarket chain in Vietnam, could consider proposing
a mini supermarket retail type. With the increasing demand for convenient and on-
the-go shopping options, a convenience store format would allow Bach Hoa Xanh to
cater to customers who prefer quick and easy shopping experiences. This retail type
would also enable the company to expand its reach to more urban and suburban
areas where larger supermarkets may not be feasible. Additionally, a mini
supermarket format would allow Bach Hoa Xanh to offer a wider range of products,
including fresh food items, to meet the needs of busy urban consumers. Overall, this
retail type would provide Bach Hoa Xanh with a new growth opportunity while also
meeting the changing preferences of its customers.
 III. TARGET MARKET

III.1 Target Market Analysis

a) Demographic

Since its inception, the core mission of Bach Hoa Xanh has been to provide an
extensive selection of products with high quality, transparent origin, and affordable
prices in comparison to the traditional ones. Bach Hoa Xanh's initial focus is on
clients in the following table, who were previously familiar with traditional markets:
housewife and nearby university student.

Table 1: Customer related to demographic

Customers Age Marital status Customer’s behavior

Inadequate shopping time

Shopping patterns at the end of the
Housewife 25 - 45 Married month
Maintain a habit of reading
everyday news

Pay close attention to the health of

family members.
Married or Maintain a personal career à Do not
Worker 27 - 40
Singe have much time
to deeply research, keep an eye on
the health issue.

University 18-23 Single Take advantage of the low cost and

student convenience.
Cooking and using low-cost
consumer goods are
 common.
Adore discount/sale items.

In adddtion to emphasize the above data, the below survey taken by National
Agency for Science and Technology Information in 2019, has resulted in the
similarity result.

Table 2: Factors affecting customer loyalty at Bach Hoa Xanh

Size of survey: 350

Gender Male 126

Female 224

Age 0 – 25 229

25 – 40 81

40 – 50 34

More than 50 6

Income (in million VND) <= 3 167

3- 7 77

7 – 15 65

>= 15 41

Occupation Student 164

State employees 45
 Blue-collar worker 87

Other 54

b) Psychographic

Customers are increasingly worried about their physical and mental health since
Covid - 19, therefore they seek products and services that support a healthy lifestyle
while still being convenient and efficient.

Bach Hoa Xanh operates a number of small shops in heavily populated locations, as
listed below, allowing clients to purchase everyday necessities without having to
travel significant distances. Furthermore, Bach Hoa Xanh stores carry a wide variety
of products, including packaged foods, beverages, household supplies, personal care
items, and so on. As a result, customers may complete all of their purchasing needs
in one area.

Figure 1: Different types of products on Bach Hoa Xanh website

Figure 2: Some of Bach Hoa Xanh’s supplier

c) Behavioural segmentation
Customers choose Bach Hoa Xanh for their grocery and household requirements
because of the convenience, fresh and diverse product options, competitive price,
good customer service, digital integration, reward program, community engagement,
and trust in the brand. That is why it has a rather high level of loyalty.

3.2 Strategy
 Visual merchandise in store

Bach Hoa Xanh stores are typically laid out in a way that optimizes customer flow
and navigation. The store layout is logical, with distinct sections for various product
categories such as fresh produce, packaged goods, personal care, and household
items. The layout aims to make it simple for customers to find what they need.
Figure 3: Store design in each Bach Hoa Xanh store

 Sales promotion
Bach Hoa Xanh will have a deep discount on most sorts of products or a cheaper
price when purchasing the combo on special occasions customers might save a
significant amount of money because of this. Because of promotions, individuals
may purchase more than they intended. This is one of the most effective ways for
our companies to gain new customers.
Figure 4: Product sale in Bach Hoa Xanh website

3.3 Trade area

Store accessibility: refers to the ease with which customers may approach and enter
a retail store. Bach Hoa Xanh's store is generally found in residential
neighbourhoods or near densely populated areas. Those establishments are at a
prime location that is easily accessible.
Type of store: Bach Hoa Xanh is a Vietnamese retail company which specializes in
groceries and household goods. The company operates a variety of outlets to meet
the requirements and preferences of its customers.
Level of competition: Although Bach Hoa Xanh is primarily located in a golden
position, there are several powerful competitors to whom Bach Hoa Xanh must pay
attention.

+ WinMart is a well-known retail chain in Vietnam that offers convenience stores

that sell groceries, fresh produce, snacks, beverages, and household products.
WinMart+ has a large network of outlets around the country and competes directly
with Bach Hoa Xanh in terms of convenience and product selection.

+ Co.opmart: Co.opmart competes with Bach Hoa Xanh in terms of market share
and product range, having a strong presence in numerous cities.

+ Big C: Big C operates hypermarkets and supermarkets in Vietnam, selling a wide

range of products such as food, electronics, apparel, and home items, therefore Big
C competes with Bach Hoa Xanh due to their big shop formats and competitive
prices.

Type of the merchandise sold: The store sells a wide range of merchandise to suit
the demands of its clients on a daily basis. While particular product offers may vary
according on location and store format, the following are some of the most common
types of products sold at Bach Hoa Xanh: Fresh produce, packaged foods,
beverages, and some essential household supplies like storage containers, trash bags,
batteries,
The food selection: Bach Hoa Xanh provides a broad food selection to meet the
gastronomic needs of its consumers, includes fresh produce and fruits, including
popular local products and overseas options, grains and rice, fish and meat, dairy
and eggs,...
Figure 5: Map of Bach Hoa Xanh’s trading area around the University Village

(Red zone: primary, Blue zone: secondary, Purple zone: Tertiary)

Primary trade area: This is the geographic region that generates 50-70% of the
consumers, and it is expected that residents of this zone will take less than 5 minutes
to get to. The primary trading area is regarded as the most essential trade area by the
majority of retailers.
Secondary trade area: Has a radius of 3 kilometers and it is expected that
customers will travel to the business in 5 to 10 minutes. It is the second-most
important zone, bringing 20-30% of the site's customers.
Tertiary trading area: This is the most remote area with the largest size, and it is
estimated that it will take the consumer more than 10 minutes to reach the site. This
is expected to account for all remaining trade area sales.

As can be observed from the map above, the high density of Bach Hoa Xanh's store
in the recording area made it possible enough for customers to visit and select their
favorite things. Furthermore, clients can quickly switch between each store within
the same sort of store to find their favourite things despite the absence of that item in
one location.
 IV. LOCATION ANALYSIS

A. General information about Bach Hoa Xanh’s location

Today, Bach Hoa Xanh has nearly 2,000 stores and supermarkets across the
provinces and cities in the South, East, and South Central regions and more than 20
warehouses serve the BachhoaXANH.com website, specializing in providing diverse
products. Store coverage is average, retail stores in the chain reach about 500
customers daily, and larger stores have about 1000 customers per day. From the
beginning, BHX did not position itself as a supermarket like Coop Mart and Big C,
but its brand positioning was to focus on a wide coverage like traditional markets
but with better service, low costs, and more diverse foods and goods. Since Bach
Hoa Xanh researched the customers’ behavior specifically, the customers tend to
stop at Bach Hoa Xanh stores whenever they are on the street from work to home,
they decide to open Bach Hoa Xanh stores in the residential areas, and the main
streets. Besides, they also focus on targeting housewives and people who regularly
come to the traditional market, so they also construct many Bach Hoa Xanh located
near the traditional market.

4.1 Type of location & advantages & disadvantages & type of

lease
a) Type of location

Freestanding site: Bach Hoa Xanh has many individual, isolated stores unconnected
to the other stores. Freestanding site is an independent building or store that stands
alone, often with its own parking lot or dedicated space. Freestanding sites are
typically separate from other retail establishments and are not connected to a larger
retail development. It is usually located near the traditional markets, the industrial
zone, locations having high population density, convenient traffic routes,
intersections between big streets, and crossroads in the urban area. The Bach Hoa
Xanh store would have an area of 150-250 m2 (for standard types) and 300 m2 (for
large types).

b) Advantages

The freestanding sites of Bach Hoa Xanh are extremely convenient for the
customers providing easy access and parking, high vehicular traffic, and visibility to
attract customers driving. They utilize the demographic and behavior research
related to customers, specifically they usually locate the stores It has fewer
restrictions on signs, hours, or merchandise that might be imposed by the managers
of planned locations.

They are also beneficial for the customer tending to conveniently shop the multiple
categories of merchandise because it locates near many popular sites. Moreover, it
reduces the procedure and costs to execute the market research when considering
opening the new site because they take advantage of the previous market research
for Blue Electronics Supermarket and Mobile World Investment Corporation. From
utilizing the previous market research, they establish the new site near Blue
Electronics Supermarket (Dien May Xanh) or Mobile World Investment
Corporation (The Gioi Di Dong).

c) Disadvantages

Because standing separately from the other retailers it has a higher occupancy cost
because they do have not the other retailers to share the common area maintenance
costs. Although we have mentioned it is beneficial when locating the Bach Hoa
Xanh near Dien May Xanh or The Gioi Di Dong, it still apppears the potentially
lower foot traffic compared to the locations withing larger retail development.
Because locates near the high population areas and targeted to the residents, it would
face the traffic congestion in front of the door, which makes the customers not
choose Bach Hoa Xanh as a good site to shop.

d) Type of lease

Lease terms must be negotiated by retailers. Leases are official agreements, but they
can be altered to suit the merchant's particular requirements as well as the relative
authority of the business and shopping center management. These lease conditions
may limit retail operations and have an impact on the location's cost. Aspects of the
lease that can be negotiated in addition to the rent include cotenancy, exclusive
usage, restricted use, and common area maintenance provisions. Leases are formal
agreements, but they can be altered to suit the merchant's particular requirements as
well as the relative authority of the business and shopping center management. A lot
of leases have had to be modified because of the COVID-19 pandemic's effects.
BHX uses the fixed-rate lease, which pays a fixed amount per month over the life of
lease. With this type of lease, BHX knows exactly how much would be paid in rent.
Specifically, BHX usually requires to find the rental site with around 60 - 150
million/month (depending on the regional area’s real estate price), and lease at least
5 years.

e) Milestone of expanding the number of stores

2015 - 2016: Bach Hoa Xanh - MWG's minimart chain was born at the end of 2015.
The company took the idea from Alfamart - the top 2 largest grocery retail chains in
Indonesia and tried to expand it in Vietnam. The first stores have a large scale. just
under 100 m2, opened in Binh Tan district - the place with the highest population
density in Ho Chi Minh City. At the end of 2016, BHX had 40 stores.

2016 - 2017: In comparison to rival minimart chains, MWG's 50 BHX stores, all
located in the Binh Tan area, had an average monthly revenue of 1 billion VND per
store and an average value/invoice of around 50,000 at the beginning of 2017. BHX
concentrated on populating these two densely populated western districts as it grew
from Binh Tan to Tan Phu.

2017 - 2018: Small stores located deep in residential areas cannot have a large
enough number of customers and revenue, and their small scale also does not allow
them to meet enough stock-keeping units (SKUs) for customers' daily needs. The
space for fresh food has also been expanded with the number of fresh SKUs
increasing from nearly 100 to 300-500. In addition, BHX changed the store model,
the average revenue per store quickly increased to 1.2 billion/month, and the total
number of stores is now 405 stores (90% are in Ho Chi Minh City).

2019: After finishing the conversion and closure of the last few old model stores in
the first quarter of the year, BHX began adding new stores to its database at a rate of
around 60 per month. There were 866 BHX stores in total as of October 31, 2019,
with 452 of those outlets being spread throughout 20 provinces in the South and
Central regions. At the same time, it opened online sales for the first time in the Bien
Hoa area (Dong Nai).
2020: Opened online sales in 10 more areas in the Southern, Eastern, and South
Central provinces.

2021: BHX has nearly 2,000 stores across provinces and cities in the South, East and
south-central regions.

Figure 6: Statistic of sales and number of stores of BHX at the end of July/2022
Figure 7: Level of change in the number of BHX in 2021 and 2022

4.2 Location and retail strategy

The selection of a location type reinforces the retailer’s strategy. Thus, the location-
type decision is consistent with the shopping behavior and size of the target market
and the retailer’s positioning in its target market. One of the strategies related to
locations of BHX focuses on bringing maximum speed and convenience when
shopping to customers by bringing the XANH Department store system to cover all
areas, including rural areas. Besides, they also focus on developing an online
shopping channel on the website BachhoaXANH.com to serve all audiences,
especially young customer groups. In its development strategy, MWG expects each
province to have about 15 - 20 supermini Dien May Xanh stores and a target
revenue of 1 billion - 1.2 billion per store.
The chain only opens new locations with filters (stores are chosen more carefully to
deliver profit to the Company in regions with excellent potential). The 150 m2 and
200 m2 models will be expanded, according to BHX representatives. This is a very
obvious choice that makes them doubt the 300 m2 and 400 m2 models' future. It will
be harder to compete with retailers established close to customers' homes in the
future because there aren't many of them now. Coastal regions would also prioritize
densely populated neighborhoods, condominiums, hotels close to industrial parks,
etc. MWG has not established a target for the quantity of new stores that each chain
is expected to launch in 2023.

Figure 8: Bach Hoa Xanh location sites in Ho Chi Minh City

4.3 Factors to consider when considering locating multiple

stores
a) Economic condition
Because locations involve a commitment of resources over a long time horizon, it is
important to examine an area’s level and growth of population and employment. A
large, fully employed population means high purchasing power and high levels of
retail sales. That is one of the reason of the existence of BHX sites near the
industrial zone, high residential area. They claim that the citizens are employment so
they have the income to pay for the merchandise which facilitates BHX to expand
the number of sites and when the economy is in recession, the dwellers do not have
sufficient money to pay for products and it leads to they reduce to limited spending.

b) Competition

The level of competition in an area affects the demand for a retailer’s merchandise.
Currently, BHX faces with many fierce competitors. One of the Bach Hoa Xanh's
rival - Co.opmart (also known as Co.op Mart, Co-opmart, Coopmart) is a
Vietnamese retail supermarket system under the Thanh Hoa Union of Trade
Cooperatives. Ho Chi Minh City. Bach Hoa Xanh's competitor - WinMart (formerly
known as Vinmart) is a supermarket system belonging to Masan Group, Vietnam
theoreover, there are many department stores, supermarkets, convenient stores to
sell some perishable category like the Bach Hoa Xanh. Because there are many
competitors in the same region, and BHX starts to decreased the big amount of the
stores.

c) Strategic fit of the area’s population with retailer’s target market

This area needs to include consumers who are part of the retailer's target market—
people are attracted to the retailer's products and interested in visiting its stores. So,
the area must have the right demographic and lifestyle profile

d) Cost of operating stores

The cost of operating stores can vary across areas. For example, store rental and
advertising costs in Dong Nai are significantly lower than those in the Ho Chi Minh
city. But the potential sales and profits from stores located in the Ho Chi Minh City
are substantially greater, due its larger, denser population.

After the assessment to locate the stores, BHX also determines the quantity of stores
in an area due to the economies of scale and potential sales cannibalization from
having multiple stores in an area.

4.4 Evaluation of some highlighted Bach Hoa Xanh site

a) Traffic flow and accessibility

The volume of cars and pedestrians that pass by the location is one of the key
variables influencing retail sales. Increased traffic means that more customers are
probably going to drop by and purchase at the shop. Thus, visitor count metrics are
frequently used by merchants to evaluate the appeal of a website. Traffic numbers
are especially crucial for stores who sell goods and services such as grocery stores,
convenience stores, that are frequently visited or purchased on a whim. In other
transportation settings, though, more traffic flow is not always better, and traffic
volume counts for roadways, used to assess the attractiveness of a retail site, can be
misleading. However, in other transportation contexts, greater traffic flow is not
necessarily desirable, and traffic volume measurements for roads—which are
sometimes used to evaluate a retail site's attractiveness—can be deceptive. The
majority of shopping malls are situated on busy roads and highways that are often
used by people running daily errands, which may or may not involve shopping, or
traveling to and from work. Because of this, daily traffic numbers are distorted
during peak hours, causing congestion that makes it difficult to use the shops.

The accessibility of the site, which can be as important as traffic flow, is the ease
with which customers can get into and out of the site. Accessibility is greater for
sites located near major highways, on uncongested highways, and at streets with
traffic lights and lanes that enable turns into the site.

b) Parking lot

Parking space is one of the most important challenges for shops in Vietnam. If there
are no safe parking spots, clients may not be able to have the most satisfying
shopping experience due to the idiosyncrasies of handling food and drinks, which
can occasionally take time. It is even more difficult to utilize cars for shopping in
Vietnam due to the country's extraordinarily high traffic congestion and limited
highways. It is also appropriate with the BHX customers segment who tend to go to
traditional market to shop for daily goods by motorbikes much more often than the
cars. But BHX typically selects locations with lots of pavement in front of the
businesses, which may hold a lot of motorcycles at once.

c) Visibility

Visibility refers to customers’ ability to see the store from the street. In an area with
a highly transient population, such as a tourist center or large city, good visibility
from the road is particularly important. BHX researched the customers behaviours
and concluded that the availability of the stores exist at the intersection and on the
first alley along the the path from company or university to the residential area is a
good visibility for the customers. Besides, BHX also focuses the habit that people
usually go to market after work or school so they establish and operate many stores
at these sites.

d) Adjacent tenant

Locations with complementary, as well as competing, adjacent retailers have the

potential to build traffic. Complementary retailers target the same market segment
but have a different, noncompeting merchandise offering. Many BHX take
advantage of the availability of The Gioi Di Dong which they can reduce the
procedure and cost of market researching. It is ually locates near the market, Dien
May Xanh, and even near the rivals to build the traffic. This grouped location
approach is based on the principle of cumulative attraction, which states that a
cluster of similar and complementary retailing activities will generally have greater
drawing power than isolated stores that engage in the same retailing activities.

e) Restrictions & cost

BHX puts the limit of the cost of lease in the agreement and places some restriction
of each tenant's sites. It always because they want to create the most satisfaction for
the customers.

B. Applying methodology to find the new location site

IV.1 Procedure to find the new location site
Feasible Set Approach: Approaches using feasible sets locate potential locations,
evaluate them, and select the best one. It is easy to assess the entire cost of working
from each location and determine which is least expensive. The characteristics that
are significant for locations but are difficult to measure or quantify are highlighted
by scoring models. For instance, offering a desirable lifestyle in one place would
undoubtedly help staff, lower employee churn, and aid in recruitment; but, we were
unable to put a reasonable price or measurement on the lifestyle. Andel4 highlights a
typical issue, stating that "the decision on site selection is based upon factors you
can't always put in a matrix or express quantitatively." The agent is a commercial
estate agent. We must still identify the crucial elements even if we are unable to
measure them. According to Gooley5, the infrastructure, the accessibility of
suppliers and consumers, political and tax implications, and international trade are
all significant considerations when choosing a site.

Even though we are unable to precisely measure these elements, we may make
progress in this direction by assigning a score to each. This is the situation with
hotels: while it is impossible to quantify a hotel's quality, you can tell that it is
excellent when it has received five stars. This is the foundation of scoring models,
which consist of the five processes listed below:

Step 1: Determine the pertinent elements in a choice in step one.

Step 2: Assign a maximum score to each element indicating its significance.

Step 3: Up to this maximum, evaluate each place individually and provide an actual
score for each element.

Step 4: Add up each location's total score to see which is highest.

Step 5: Talk about the outcome and come to a final decision

IV.2 Application in finding the new location site

We have found that there are 4 potential that we should find the best one between
them and establish the new one near the best solution:

1. An Dong market – 36 An Duong Vuong street, Ward 9, District 5, Ho Chi

Minh City
2. Binh Tay market – 52A Tháp Mười street, Ward 2, District 6, Ho Chi Minh
City
3. Thu Duc market – 6 Võ Văn Ngân street, Truong Tho ward, Thu Duc City,
Ho Chi Minh City
4. Vinh Loc B market – 14 – 1A street, Vinh Loc B, Binh Chanh ward, Ho Chi
Minh City

The set of important factors decided to choose the best alternative are rent,
population density, transportation network, market proximity, store size, income
level. Every factor is given from 0 to 1 and the higher value indicates the higher
importance. Similar with the factor, the score of each market is given from 0 to 100
and the higher value indicates the higher important.
 Table 3: Scoring model of the potential location

Vinh Loc B
An Dong Market Binh Tay market Thu Duc market market

Factor Weighted Weighted Weighted Weighted

Factor weight Score score Score score Score score Score score

Rent 0.2 60 12 55 11 70 14 80 16

Population
density 0.2 60 12 70 14 70 14 70 14

Transportatio
n network 0.2 40 8 50 10 40 8 80 16

Market
proximity 0.2 40 8 30 6 40 8 30 6

Store size 0.1 30 3 40 4 40 4 40 4

Income level 0.1 60 6 50 5 40 4 30 3

Total weighted
score 1 49 50 52 59

From the calculation and observation, it is recommended to establish the new store
near Vinh Loc B market because it has the highest total weighted score.
 V. RETAILING CHANNELS
General description:

Bach Hoa Xanh is a mini supermarket chain specializing in selling fresh food
and necessities of Mobile World Joint Stock Company. Bach Hoa Xanh was
put into trial at the end of 2015, a chain of stores specializing in retailing fresh
food (meat, fish, vegetables, fruits, etc.) and necessities with more than 870
supermarkets in 21 provinces across Vietnam. Bach Hoa Xanh distribution
channel system consists of three main channels: Bach Hoa Xanh store, Bach Hoa
Xanh app and bachhoaxanh.com.

5.1 Store
a. General description

As of August 2021, the Bach Hoa Xanh had nearly 2,000 stores in the central and
southern regions, Bach Hoa Xanh is rich in diverse items such as: beverages, beer,
soft drinks, powdered milk, fresh milk, cooking spices, ready-to-eat foods, canned
foods, confectionery, snack, shampoo, shower gel, washing powder, liquid
detergent. This strategy has helped Bach Hoa Xanh gradually assert its position in
business.

b. Analysis

Store channel is a form of direct sales with customers at which Bach Hoa Xanh
provides a clean, air-conditioned shopping space. The products are displayed
scientifically and conveniently to enhance the customer's experience when shopping
at the store. At the time of paying for shopping orders at the Bach Hoa Xanh store,
buyers can pay by cash, credit card, mobile money app and they also have the
system ‘s point accumulated points from previous orders.

1. Internet website
Bach Hoa Xanh provides the website bachhoaxach.com where customers can order
online with a greater assortment of products than the physical store with the same
price. Besides, the time-shipping within 30 minutes or free ship with the receipt over
300.000 vnd also attracts the customer for choosing via the website.

Figure 99: Website BachHoaXanh.com

2. Bach Hoa Xanh app

Bach Hoa Xanh also have their app on CH play and Apple Store applications, users
can order directly via their smartphone. With the busy people who do not want to
spend their time for moving or waiting for the sequence and that can be the trend in
the near future .
Figure 1010: App BachHoaXanh on CH play
 VI. MERCHANDISE MIX
1. General Diagram

Figure 11: Diagram11 of merchandise mix

A glance at the above graph reveals the broad variety that Bach Hoa Xanh brings up,
with ten merchandises and the average assortment in each merchandise category.
With the aim to serve everyday needs of customers, Bach Hoa Xanh provides from
food with plenty of types to beverages to personal care products and detergents.
Among all, what helps Bach Hoa Xanh draw customers' attention are the diversity
and the supreme quality of food. That’s the reason for food accounting for six out of
ten total merchandises, especially fresh food, as Bach Hoa Xanh targets not only at
who prioritize convenience but also at residents living around. The quality and price
become the ace of Bach Hoa Xanh to compete with the local markets and other
convenience stores. There is a big distinction in quantity between the category of
fresh food and processed one. According to the diagram, although there isn’t high
intention on the assortment of non-food products, Bach Hoa Xanh still meets the
demand of consumers with the various supply for basic personal or mom and baby
care items as well as detergents.

2. Major brand Bach Hoa Xanh carries

Local and Regional Brands: Depending on the location of the store, Bach Hoa Xanh
may stock popular local and regional brands that cater to the preferences of the
community.

International Food and Beverage Brands: Bach Hoa Xanh may carry a selection of
well-known international brands for snacks, beverages, and other food items.
Household and Personal Care Brands: Common brands for household cleaning
products, toiletries, and personal care items may also be part of their inventory.
 VII. PRICING

7.1. Pricing strategy

Figure 12:12 Bach Hoa Xanh's store sales

To have the best prices for consumers, Bach Hoa Xanh has researched and selected
top suppliers, without middlemen, ensuring both origin and optimizing shipping
costs. The price factor in Bach Hoa Xanh's pricing strategy is implemented as
follows:

a) Bundle pricing strategy

Price bundling offers customers a bigger perceived value per purchase. Offering
customers package deals is a good way to build goodwill when they purchase a new
product. This form of demand stimulation helps retailers sell more of a product,
reduce inventory and sell more accompanying goods. The larger the quantity
customers buy, the cheaper the price.
 Figure 13:13 Price bundling

b) Low Pricing

This is a method of pricing products lower than the common level to promote
purchasing power. In this way, Bach Hoa Xanh can effectively increase the number
of products and the value of consumers' orders. A typical example of this strategy is
Bach Hoa Xanh often discounts up to 50% for vegetables or 30% for fresh items at
the end of the day. Bach Hoa Xanh also offers package prices to increase purchasing
power such as reducing peanut butter prices and introducing additional products
such as bread, honey, jam to encourage customers to buy combos instead of just
selling a jar of peanut butter.

c) Psychological pricing

In fact, customers often have a feeling of regret and loss when spending money, so
brands have reduced this pain by pricing products that end in odd numbers like 5 or
9. For example, instead of setting product prices, product is 300,000 VND, the brand
will price it at 299,000 VND. From the customer's perspective, it will feel like it's
only 299, not 300, and the brain automatically defaults to this as a low price even
though there's only a difference of 1,000 VND.
 Figure 14:14 List of discount products

d) Price anchoring strategy (fixed pricing)

This method brings high efficiency to retailers, not only Bach Hoa Xanh, by
publishing the original price and accompanying promotional prices so that
customers can feel the preferential level of the product, which leads not to miss that
promotion.
Figure 15:15 Fixed pricing for products

7.2. Product pricing

In order for Bach Hoa Xanh to get customers from the traditional market, they have
promoted the selection of fast-moving consumer products with clear origin
certification and selected good products in the typical local shelves to meet the
needs of customers. To have a good profit, Bach Hoa Xanh will get products from
the manufacturer, not through any channel. "We have the responsibility to bring
consumers quality products at the most reasonable prices by shortening the path of
imported products to supermarkets," said a representative of Bach Hoa Xanh.

Green vegetables: Instead of selling ready-to-sell bags, stores let customers buy in
arbitrary quantities.

Figure 16:16 Green vegetables area

Fresh food: This is the main product of Bach Hoa Xanh. To attract customers from
traditional markets, Bach Hoa Xanh chooses products that are quickly consumed and
demonstrate clear origin. This supermarket chain collects goods directly from the
manufacturer without going through any intermediary channels. Marine fish will be
imported directly from the waters, not through Binh Dien market as the current
chains.

Figure 17:17 Fish at Bach Hoa Xanh

Fruits: the company will not go through import companies but import from growing
areas.
Figure 18: Fresh fruit at Bach Hoa Xanh

Organic/health goods: Bach Hoa Xanh provides many essential products such as
milk, shampoo, washing powder, cooking spices, etc. However, instead of
segmenting health-conscious consumers by providing natural or organic foods like
other supermarkets, Bach Hoa Xanh does not maximize this retail feature because its
initial positioning is to prioritize convenience and low cost.

Figure 1918: Promotional items, buy 1 get 1 free

As a result, the product price will be cheaper and more competitive than any other
system. Fresh meat, and raw fish a standing strength compared to competitors in the
same industry today. And is the sum of the advantages of traditional markets and
supermarkets, is new and different from other mini supermarkets. Thanks to this
model, each department store serves an average of 500 successful daily transactions.
In addition to diversifying food sources, this unit also runs a series of strong
discounts every week, applying more than 200 fresh and consumer goods of all
kinds. Many programs offering gifts, attractive discounts of up to 10% for
vegetables and 40% for fast-moving items are also conducted regularly. With this
method, Bach Hoa Xanh received many positive responses from housewives.
Comparative advantages of Bach Hoa Xanh compared to traditional markets and
department stores can include providing fresh food at prices cheaper or equal to
traditional markets; Good service with friendly staff, clean and modern store space;
providing packaging, transportation, and processing services; Combination of
grocery and traditional market models: in addition to fresh food, there are also dry
foods and FMCG consumer goods. Additionally, the price of the product is always
listed on the packaging, so consumers can easily keep track of the total value of the
goods they are buying without having to worry about buying wrong items like
traditional markets. Besides, supermarkets often have many incentives, promotions,
and gifts for customers. This is also one of the many factors that make consumers
like to shop at stores like Bach Hoa Xanh.
 VIII. Marketing Communication Mix
The marketing communication mix is the set of tools that a business uses to
communicate with its target audience (Todorova, 2015). Its five primary
components are public relations, direct marketing, sales promotion, advertising, and
personal selling. Each component has benefits and drawbacks, and the best
combination relies on the goals of the business, the available funds, and the state of
the market.

Figure 20:19 The elements of the Marketing Communications Mix

8.1 Advertising
Paid Advertisement

Using paid advertising, Bách Hóa Xanh reaches a wide range of people and raises
their knowledge of preference for, and familiarity with its brand. Paid advertising
also assists Bách Hóa Xanh in communicating to customers its value proposition,
product attributes, and special offers. However, paid advertising has significant
disadvantages, including high prices, stiff competition, and clutter.

Online ads

Online advertisements for Bách Hóa Xanh are displayed on well-known

websites, including Facebook, Google, YouTube, Zalo, and TikTok. The online
advertisements aim to raise brand recognition and boost visitors to Bách Hóa Xanh's
website and mobile application.

Banner ads: With engaging slogans, appealing visuals, and apparent calls to action,
Bách Hóa Xanh places banner advertising on applications and websites relevant to
its target market. Although banner advertisements have the advantage of reaching a
large audience, they may also have the disadvantages of being costly, intrusive, and
unwelcome by consumers.

Video ads: Ads made by Bách Hóa Xanh feature the company's goods, services, and
principles. They draw attention to the advantages of shopping at Bách Hóa Xanh,
which may pique clients' curiosity and affect their choice of products. Because they
might take up a lot of time, video advertisements have the potential to be ignored by
viewers.

Figure 21:20 Video advertisement of Bach Hoa Xanh

Native ads: Native advertisements from Bách Hóa Xanh are included in the text of
websites and applications that feature its goods and services. The native
advertisements complement the existing content and offer helpful advice or
information to the audience. Increased client trust and reduced ad fatigue are two
advantages of native advertising. Native advertisements have the disadvantage of
being difficult to regulate and optimise.

Figure 22:21 Native advertisement of Bách Hóa Xanh

TV ads

TV commercials created by Bách Hóa Xanh are seen on both local and national
channels. The TV advertisements intend to convey how Bách Hóa Xanh may satisfy
the demands and desires of the target audience. The advantages of TV
advertisements are that they may reach a large audience and employ audio-visual
techniques to strengthen the message. The costs and competition of TV
advertisements are their main negatives.
Figure 2322: TV ads of Bách Hóa Xanh

Outdoor ads

To boost its exposure and market presence, Bách Hóa Xanh makes use of outdoor
advertisements. The outdoor advertisements are positioned in critical areas where
people may quickly see them, including billboards and banners. The outdoor
advertisements are striking and unforgettable. A broad geographic reach and great
exposure are two advantages of outdoor advertisements. Outdoor advertisements
have the drawbacks of being expensive and subject to regulations.

Figure 24:23 Billboard of Bách Hóa Xanh

Figure 2524: Banner of Bách Hóa Xanh

Cooperative Advertising

Bách Hóa Xanh collaborates on advertising campaigns with other companies and
celebrities that match its values and target demographic. When two or more parties
work together to promote their goods or services, this is cooperative advertising.
Cooperative advertising assists Bách Hóa Xanh in expanding its market reach and
reputation. However, suitable advertising has certain drawbacks, such as conflict
and dependency.

Another brands

Bách Hóa Xanh works with other companies to provide its clients with supplemental
or related goods and services. Vinamilk, one of Vietnam's most prominent dairy
brands, has a long-standing cooperation with Bách Hóa Xanh. At affordable costs,
Bách Hóa Xanh offers a variety of Vinamilk products through its physical stores and
online stores. Together with Vinamilk, Bách Hóa Xanh also runs joint campaigns
that give discounts or presents to clients who purchase Vinamilk goods from Bách
Hóa Xanh.
Figure 2625: Bách Hóa Xanh cooperates with Vinamilk

Figure 27:26 Bách Hóa Xanh cooperate with Zalo

When two brands work together, they may benefit from a win-win situation that
increases customer value and product diversity while using one other's strengths and
resources. The limitations of working with another brand include the potential for
conflicts of interest or ambitions, reliance on each other's performance or reputation,
and weakening of each other's brand identity or image.
KOL/ Influencers

Key opinion leaders (KOLs) or influencers with a sizable and devoted following on
social media platforms are used by Bách Hóa Xanh. By promoting Bách Hóa Xanh's
goods, services, and principles to their fans and followers, KOLs and influencers
benefit the company. Regarding Bách Hóa Xanh, the KOLs or influencers provide
accurate and compelling material reflecting their views and experiences.

Khả Như is one instance of a key opinion leader (KOL) or influencer who has
worked with Bách Hóa Xanh. She is a well-known actress, comedian, and singer
with a sizable Facebook following and over 200k YouTube subscribers. She has
starred in a few web videos for Bách Hóa Xanh, where she introduces the company's
goods and services using her charm and humour. Moreover, she offers Bách Hóa
Xanh customers her shopping advice and strategies for saving money.

Figure 28:27 Figure: Actress Khả Như cooperate with Bách Hóa Xanh
Working with KOLs or influencers can create a solid recommendation for the brand
and generate viral marketing. Working with key opinion leaders (KOLs) or
influencers may be costly and unexpected.

Unpaid Advertisements

To further improve its reputation and client relationships, Bách Hóa Xanh
additionally uses various unpaid ads. Unpaid ads present specific difficulties, such
as reliance and ambiguity.

Public relations

Bách Hóa Xanh makes public relations efforts to share its mission and core
principles with the public. Press releases, sponsorships, and initiatives promoting
social responsibility are all part of the public relations efforts. Showcasing Bách Hóa
Xanh's accomplishments and services to society is the goal of public relations
efforts.

Quỹ từ thiện Thế Giới Di Động - MWG (the parent firm of Bách Hóa Xanh)
launched this charitable fund in 2016. The fund promotes several social issues,
including community development, health, the environment, and education. The
fund has given over 200 billion VND to several projects and recipients, including
constructing homes and schools for the underprivileged and the impoverished.
Figure 29:28 MWS Mái Ấm Charity Fund

Along with increasing client trust and differentiating the business from rivals, public
relations help a company build a favourable brand image. The difficulties with
public relations are that they can rely on the support of the media, run the danger of
receiving bad press, and demand a long-term commitment and investment.

Word-of-mouth

By providing its clients with high-quality goods and services, Bách Hóa Xanh
promotes word-of-mouth advertising. Customers are more likely to recommend
Bách Hóa Xanh to their friends and family if they had a great shopping experience
there. Through word-of-mouth marketing, Bách Hóa Xanh gains client loyalty, trust,
and recommendations.

Give feedback to receive 40.000VNĐ discount: Bách Hóa Xanh introduced this
offer in 2020 to encourage consumers to share their opinions about their shopping
experiences there. Customers can get a discount voucher worth 40.000VND for their
subsequent purchase when they provide feedback on the Bách Hóa Xanh website or
mobile app.
Figure 30:29 Rate the product on BachhoaXANH.com to immediately receive a 40k voucher

Word-of-mouth advertising can lower marketing expenses and give the brand a
strong influence. Managing bad or fraudulent word-of-mouth may be challenging,
which is one of word-of-mouth's drawbacks.

Social medias

Bách Hóa Xanh has many active social media presences. Through social media,
Bách Hóa Xanh can communicate with its clients in a direct and personal manner
and share information about its most recent specials and news with them.
Through social media, Bách Hóa Xanh can build a fan base and a following of
people who will support the brand and help spread the word about it.

Bách Hóa Xanh communicates with its clients mainly through Facebook, the most
widely used social media site. More than 2 million people follow Bách Hóa Xanh on
Facebook. Daily updates regarding its promotions and activities are posted on Bách
Hóa Xanh's Facebook page. On its Facebook page, Bách Hóa Xanh also answers
client comments, inquiries, and complaints.

Figure 31:30 Facebook post of Bách Hóa Xanh

 Figure 32:31 Tiktok account of Bách Hóa Xanh

Social media has several advantages, including building a direct and personal
relationship with customers, boosting brand engagement, and providing user-
generated content and viral marketing. The obstacles of social media include the
time and money needed to administer them, the possibility of receiving unfavourable
comments or having one's image tarnished, and the need to compete for attention
with other platforms or companies.

8.2 Sales Promotions

Bách Hóa Xanh uses a variety of sales campaigns to pique clients' interest in
purchasing its products or services. Promotions for sales are short-term incentives
that provide customers with additional value or advantages. Bách Hóa Xanh benefits
 from sales campaigns to boost sales volume. However, there are drawbacks to sales
promotions, such as expense and cannibalization.

a) Sales

During festive times or seasons, Bách Hóa Xanh gives sales discounts on specific
goods or categories. The reductions during sales might take the shape of a
percentage off or a buy one, get one deal. The sales reductions are publicised
through various methods, including Internet and outdoor advertisements.

Sales discounts have several advantages, including the ability to draw in new clients,
keep hold of old ones, get rid of surplus stock, and boost cash flow. It might lower
the profit margin and be seen as having inferior quality, which are drawbacks.

b) Sampling

Customers who visit Bách Hóa Xanh's retail locations or online store are given free
samples of new and old goods. Customers may test items before purchasing, thanks
to the free samples. Additionally, the free models aid Bách Hóa Xanh in introducing
new goods and soliciting client feedback. The advantages of free samples include
their ability to leave an excellent first impression and promote recurring business.
One of the drawbacks of free samples is that they might be expensive.

c) Demos

To highlight the functions and applications of its goods, Bách Hóa Xanh holds
product demos in-person or online. Product demos are carried out by knowledgeable
employees or KOLs/influencers who can clarify and respond to client queries.
Product demos also assist Bách Hóa Xanh in educating clients and persuading them
to purchase the items. Product demonstrations provide the advantages of increasing
product knowledge and allowing for a more direct and intimate engagement with the
clients. The drawbacks of product demonstrations include the potential for time
consumption and reliance on the demonstrators' abilities.
d) Contests

For the clients who buy its goods or services, Bách Hóa Xanh holds contests.
Customers must participate in specific activities or actions to be eligible for prizes,
such as shooting photographs or writing reviews and submitting them to Bách Hóa
Xanh via its website or social media platforms. Winners of the contests might take
home enticing awards like gift cards for cash.Customers may have a pleasant and
exciting experience thanks to competitions, which can enhance brand engagement
and loyalty and provide user-generated content and viral marketing. Contests have
an issue of being complicated and controlled

8.3 Direct marketing

BHX offers its clients a comfortable platform through the usage of mobile apps. The
mobile applications from BHX are easy to use and include features such as a
catalogue of products, online ordering, delivery tracking, payment choices, and
customer support. In addition to giving customers simple access to its items, BHX
employs mobile apps to provide users with points and coupons.
Figure 3332: Bach Hoa Xanh mobile application

8.4 Public Relations

a. Press releases

Press releases are how BHX informs the public about its latest offerings, expanded
reach, and accomplishments. BHX highlights the benefits of its solutions in its
informative press releases. Press releases are valuable for BHX to draw attention to
its brand and recruit new clients.
Figure 34:33 Press release of Bách Hóa Xanh

b. Blogs

Through blogs, BHX offers its opinions on various subjects about its goods, market,
and industry. The reviews and suggestions from BHX's professionals are published
in their educational blogs. Blogs are helpful for BHX to inform and demonstrate its
knowledge to readers.
Figure 35:34 Bách Hóa Xanh’s blog

c. Social media posts

To stay in touch with its online audience across several platforms, BHX sends
updates on social media. Social media updates from BHX include interactive content
on company offerings and events. In addition to gaining more awareness on social
media, BHX uses postings to ask for audience comments.
Figure 3635: Bách Hóa Xanh’s Facebook story

8.5. Personal Selling

a. Store staff

Regarding BHX's personal selling strategy, the shop employees are crucial. Friendly
and competent customer service is a skill that the BHX retail employees have been
educated in. Additionally, the retail employees at BHX are trained in customer
service and product expertise. Tasks like selecting vegetables, cleaning meat, pre-
processing, and creating purchase invoices are easy at Bach Hoa Xanh even if
someone has never completed the task before. Bach Hoa Xanh consistently mentors
and teaches staff members methodically, so homemakers won't have to worry about
not understanding the work at hand or being unable to execute it well (Chi, 2019).
Store employees are used by BHX to establish trust and loyalty with consumers and
to provide an excellent first impression.

b. Product demonstration

"For retail, the prerequisite is to display the most complete, creating the richest
feeling of product options before customers' eyes" - Mr. Tran Kinh Doanh,
Chairman of Bach Trading Joint Stock Company Hoa Xanh said (Loan, 2021). To
explain to clients how its products operate and how they may help them, BHX
employs product demonstrations. During product demonstrations, customers are
shown samples of and given explanations about BHX's products—especially fresh
food. BHX uses product demonstrations to draw in clients and encourage purchases.

Figure 37:36 Product demonstration

 IX. CUSTOMER SERVICES
Customer service make the shopping experience more rewarding. These activities
increase the value is the set of activities and programs undertaken by retailers to
customers receive from the merchandise and services they purchase. Some of these
services are provided by store and call-center employees interacting directly with
customers, while others are provided by the design of the retailer’s store and/or
website. Customer service make the shopping experience more rewarding. These
activities increase the value is the set of activities and programs undertaken by
retailers to customers receive from the merchandise and services they purchase.
Some of these services are provided by store and call-center employees interacting
directly with customers, while others are provided by the design of the retailer’s
store and/or website. Bach Hoa Xanh is not an exception because it also focuses on
the customer relationship which enhance them to establish an attentive and
courteous customer service.

9.1 In-store services

The significant component to evaluate the in-store is the attitude of store assistants.
They warmly welcome customers and assist the customer to the right location of the
needed item. They ensure to discard damaged items and keep the store clean every
day, which facilitate a comfortable atmosphere. They must go through many training
sessions before working officially at the store. They are trained to learn about
different merchandise and differentiate themselves from each other. Besides, they
also learn Bach Hoa Xanh ‘s working culture and maintain them during the working
period. Especially, they learn sales and customer problem solving skills which
support their customers immediately in the store when they need. They have to be
familiar with manipulating the machine to enhance the payment process better.

9.2 Home delivery

To increase the number of customers shopping online, Bach Hoa Xanh support the
customers by offering many home delivery policy and prices.

Table 4: Shipping price based on the weight

Weight Standard price Silver Gold

Under 5kg 15.000 Refund 50% for Refund 100% of

each order and 4 the delivery fee
From 5kg to 10kg 20.000
free deliveries for orders from
From 10kg to 25.000 per month for 150,000 VND.
15kg orders from Orders below
150,000 VND 150,000 VND will
From 15kg to 30.000
be charged based
20kg
on weight

From 20kg to 35.000

30kg

Over 30kg 40.000

(Or 3% the total

receipt)

 Products with a weight over 9kg and under 600,000 VND per product will be
subject to an additional heavy delivery fee of 9,000 VND per delivery.
 Orders that qualify for free delivery (based on the order value or the Gold,
Silver, Bronze customer policy) will still incur the heavy item surcharge.
 The policy was updated on 28/12/2023
 Table 5: Shipping price based on distance

Distance (km) Weight Delivery price

Under 3km Dimensions: Maximum 23.000

50x40x50cm

Weight: Maximum 30kg

From 3km to under 4km 25.000

Each next km 5.000

 Products with dimensions over 50x40x50cm and weight over 30kg will be
subject to an additional heavy delivery fee of 15,000 VND per delivery.
 The maximum size and weight allowed for bulky items is 60x60x70cm and
50kg.
 The free delivery policy based on the order value or Gold, Silver, Bronze
customer status does not apply to the Instant Delivery option.
 Orders containing potted plants or boxed ice cream will incur an insulated
bag fee of 9,000 VND per delivery.

For the Instant Delivery option, Bách Hóa XANH applies the following delivery fee
subsidy policy:

 Orders under 150,000 VND: Not applicable

 Orders from 150,000 VND to under 300,000 VND: Subsidy of 10,000 VND
per order
 Orders of 300,000 VND or more: Subsidy of 15,000 VND per order"

Bach Hoa Xanh always put the customers at the first priority so they have
guaranteed:
Ensures door-to-door delivery for customers: Even in office buildings or high-
rise apartment complexes, without the need for customers to stop their work to pick
up the delivery. The current delivery areas include: Ho Chi Minh City (excluding
Can Gio), Phan Thiet City, Nha Trang City, Bien Hoa City, Binh Duong: Ben Cat
Town (excluding An Tay Commune), Phu Giao District (applicable to Vinh Hoa
Commune, Phuoc Hoa Commune, and Phuoc Vinh Town), Tan Uyen Town
(excluding Hoi Nghia Ward and Vinh Tan Ward), Thuan An City, Di An City, Thu
Dau Mot City, Can Tho City: Ninh Kieu District, Cai Rang District, Binh Thuy
District, Tan An City (Long An), My Tho City, Buon Ma Thuot City, Vung Tau
City, Tay Ninh City (excluding Thanh Tan Commune and Tan Binh Commune),
Chau Thanh District (excluding Hao Duoc Commune, Phuoc Vinh Commune, Dong
Khoi Commune, An Co Commune, Bien Gioi Commune, Hoa Thanh Commune,
Hoa Hoi Commune, Thanh Long Commune, Ninh Dien Commune, Long Vinh
Commune), Hoa Thanh Town (excluding Truong Hoa and Truong Dong)
(BachhoaXANH.com is expanding further). Areas where the Instant Delivery option
is available: Ho Chi Minh City (excluding Can Gio), Thuan An City, Di An City,
Bien Hoa City.

On-time and Accurate Delivery: Just choose a delivery time when placing an
order, and BachhoaXANH.com guarantees on-time and accurate delivery of the
products. If there is a shortage of items or a late delivery, even by just 1 minute, a
shopping voucher of 50,000 VND will be provided as compensation. There are
several convenient delivery time slots for you to choose from, such as: 8am - 10am,
10am - 12pm, 12pm - 2pm, 2pm - 4pm, 5pm - 7pm, 7pm - 9pm (depending on the
area). Bulky items will be delivered from 8am to 5pm.
Customer Satisfaction: The delivery staff of BachhoaXANH.com are eager to
bring satisfaction to you, and therefore will always smile, greet you, and express
gratitude when you receive your delivery.

9.3 Payment methods

Bach Hoa XANH is currently supporting 9 forms of payment for customers to easily
choose from, including:

- Cash on delivery

- Credit card on delivery

- Bank transfer

- ATM card transfer (with Internet Banking)

- Visa, Mastercard, JCB

- Momo wallet

- ZaloPay wallet

- Moca wallet (Grab)

- VNPAY-QR.

The Momo payment method is a payment method that has recently been added by
Bach hoa XANH. However, this payment method is only applied to the supermarket
system in Ho Chi Minh City and has not yet been applied in other provinces and
cities.

9.4 Return, exchange, and refund policy

Table 6: Bach Hoa Xanh’s policy

Condition For the products that customers purchase on the

 BachhoaXANH.com website, when checking the products
with the delivery staff, if the following situations occur:

- The product packaging is torn

- Damaged due to bacterial or insect infestation
- Damaged during transportation
- The product has expired

Time - 1 DAY: Frozen goods, fresh meat, fish, seafood

- 2 DAYS: Fruits, fresh vegetables
- 7 DAYS: Other products

Refund process When the product you purchased has an issue (incorrect
delivery, product defect, etc.), please contact the hotline at
1900.1908. BachhoaXANH will promptly send a staff
member to your home to confirm the issue and process the
return or exchange of the product.

For online paid orders that need to be returned, Bach Hoa

Xanh will refund the amount to the card you used for
payment according to the following schedule:

For ATM card/Momo/Zalo Pay wallet (with money loaded

into Zalo): Customers will receive a refund within 3 to 5
days (excluding Saturday, Sunday, and holidays). If the
refund is not received within this time, BachhoaXANH.com
will assist in contacting the customer's bank to resolve the
issue.
 For Visa/MasterCard/JCB: Customers will receive a refund
within 12 to 15 days. If the refund is not received within this
time, customers should contact their bank to resolve the
issue.

Besides providing a refund, Bach Hoa Xanh will give customers a shopping voucher
as a measure to address product-related issues. The voucher is valued at 50,000
Vietnamese dong and is valid for 30 days from the date the customer receives it. It
can be used to purchase any goods at Bach Hoa Xanh. The voucher policy is
effective from January 1, 2023, to December 31, 2023, and may be terminated
earlier with notice from Bach Hoa Xanh

9.5 Feedbacks and consulting

One of the characteristic affect the customer service quality are responsiveness &
empathy. Responsiveness requires hiring customer service personnels and sales
associates who want to help and provide the immediate service promtly. Bach Hoa
Xanh wants to ensure its customers could reach out and get in touch with its
representatives any time, without delays soalso invested in the automated prompts
like the chatbots or contact hotlines. Meanwhile, Bach Hoa Xanh also want to
ensure the caring, individualized attention provided for customers. They want to
listen the customers’ feedback related to its customer service, and its products which
stimulate them to improve the service better. Therefore, Bach Hoa Xanh tries to
build up many contact channels, specifically:

Customer service call center: 1900.1908 - 028.3622.9900 (7:00 - 21:30) or

complaint hotline: 1800.1067. The complaint hotline serves as a direct channel for
customers to voice their concerns, dissatisfaction, or issues they have encountered
with a company's products or services.
Email: lienhe@bachhoaxanh.com. Customers may feel more comfortable
expressing sensitive feedback or complaints via email, as it provides a level of
privacy and anonymity. Customers can easily attach supporting documents, images,
or screenshots to their emails, providing visual evidence to support their feedback or
complaint.

Chatbot through the website: https://www.bachhoaxanh.com/lien-he. Chatbots

can provide immediate responses to customer inquiries, reducing wait times and
improving the overall customer experience. Chatbots can handle a high volume of
customer queries simultaneously, reducing the need for additional human support
agents and lowering operational costs. Chatbots deliver consistent responses and
information, ensuring that customers receive standardized and accurate support
regardless of the time of day or the number of inquiries.

Facebook: https://www.facebook.com/sieuthibachhoaxanh/. BHX can engage

with customers in a public forum, demonstrating transparency and a commitment to
addressing customer concerns. Other customers can view and engage with feedback
and complaints, providing an opportunity for peer support and community-driven
solutions. Facebook Messenger allows for private, real-time conversations between
customers and businesses, enabling personalized support and issue resolution.
 X. STORE LAYOUT AND DESIGN
Typically, Bach Hoa Xanh layouts and designs are carefully planned to enhance the
shopping experience for customers and optimize operational efficiency. Here is a
general overview of what we might find in the store layout and design of Bach Hoa
Xanh or similar ones:

10.1 Entrance and Exit:

- Clear and inviting entrance with promotional displays or featured products.

- Well-marked exit to facilitate a smooth flow of customers.

10.2 Store Sections:

- Clearly defined sections for different categories of products (e.g., fresh produce,
dairy, meat, beverages, household items).

- Aisles arranged logically for easy navigation.

10.3 Fresh Produce Area:

- Vibrant and well-lit area for fresh fruits and vegetables.

- Displays designed to highlight the freshness and quality of the produce.

a) Dairy and Refrigerated Section:

- Refrigerated cases for dairy products, deli items, and other perishables.

- Clearly marked shelves for different types of dairies and refrigerated items.

b) Shelving and Displays:

- Sturdy and well-organized shelving units to display a variety of products.

- Endcap displays and promotional areas for featured items or special offers.

c) Checkout Counters:

- Clearly marked checkout lanes with conveyor belts for efficient transactions.
 - Displays of impulse items near the checkout for last-minute purchases.

d) Signage:

- Clear and informative signage throughout the store, indicating product

categories, prices, and promotions.

- Multilingual signage, if applicable, to cater to a diverse customer base.

e) Lighting:

- Adequate and strategically placed lighting to create a bright and welcoming

atmosphere.

- Specialty lighting in areas like the fresh produce section to enhance visual
appeal.

f) Customer Service Desk:

- Clearly designated customer service desk for inquiries, returns, or assistance.

g) Technology Integration:

- Use of technology such as digital screens for promotions or inventory

information.

- Point-of-sale (POS) systems for efficient transactions.

Remember that the specifics of store layout and design can vary based on the size of
the store, the target market, and any unique branding or operational considerations
of Bach Hoa Xanh.
 XI. CONCLUSION
Considerable credit for Bach Hoa Xanh's success in Vietnam's grocery market goes
to its strategic advertising campaigns and thoughtful store layout. Let's look at these
essential components to see how they attract customers: Convenience is brought by
the store layout. Furthermore, the marketing strategies prioritize community
involvement, specialized advertising, accessibility and multichannel visibility,
boosting consumer attraction and so on.

Customer service at Bach Hoa Xanh is rated differently by different customers.

While many compliment the helpful staff and quick checkout, others highlight
inconsistent practices across locations and suggest that online communication and
complaint handling could be strengthened. To maintain consistent and positive
customer experiences across all channels, the company probably needs to
concentrate on staff training, communication protocols, and responsiveness. All
things considered, Bách hóa Xanh is a well-known supermarket chain in Vietnam
that offers a simple and affordable shopping experience to a variety of customers.
For many Vietnamese consumers, Bách hóa Xanh is a popular choice despite some
potential drawbacks because the benefits outweigh the drawbacks.
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