DIGITAL AUDIT REPORT

Company: Furniture Joint-stock Company (FJC)

 Agenda

1.Executive Summary
2.Digital Audit Model
3.The Core
4.The Strategy
5.The Channels
6.Implementation
 Executive Summary

This report is the result of 20-day audit project of FJC, designed for board of director to understand
the current status and potential of FJC when implementing digital technology into the business.

After digital auditing process, key implementations are identified as:

• Infrastructure improvement is the key; therefore it is recommended to purchase new machinery to
improve the product quality before any marketing or operations activities
• FJC need a digital strategy to first of all improve its internal operations, then build brand
positioning
• Additional channels can be added to the map which will have immediate effect on sales and brand
• Within 1-year vision, a re-branding campaing is recommended to inform customers about new
business transformation
Digital Audit Model
Th e Co re – Th e Strategy - Pl atfo rm s
Digital Audit Model
1. Core (3 elements): to scrutinise readiness and
suitability of the organisation to “go digital”
Core
Market | Business 2. Strategy (4 elements): to fully comprehend
Customer
the strategy and set coherent set of actions
Strategy towards it

Direction
3. Platforms (5 elements): to evaluate the
Journey | Objective | Content
effectiveness of each platform

Platforms
Paid | Own | Earned
Tool | Analytics
 Digital Audit Model - Explained
1. C o re (3 elemen ts)
- Market: p rimary market to b e th e No rth , S o u th ern market is p lan n ed to b e exp an d in 2018. Fu rn itu re p ro d u cts h ave relatively
h ig h p rices. Ou r main co mp etito r is Ho a Ph at wh o h as n o t b een active reg ard in g d ig ital in teg ratio n .
- B u sin ess: FJC h as a lo n g h isto ry as state- o wn ed co mp an y, recen tly ch an g ed to jo in t- sto ck co mp an y
- C u sto mer: 3 g ro u p s, Gro u p 1 to b e ag en ts wh o b u y an d re- sell o u r p ro d u cts, Gro u p 2 to b e co rp o rate p artn ers, Gro u p 3 to b e
co n su mers

2. S trateg y (4 elemen ts)

- Directio n : n o t clearly d efin ed . FJC h as a g en eral id ea ab o u t ap p lyin g d ig ital tech to keep u p with th e in d u strial tren d s.
S eco n d ly, d ig ital can assist to reju ven ate th e b ran d wh ich is cu rren tly co n sid ered to b e h isto rical an d state- o wn ed
- Jo u rn ey: n o t d efin ed
- Ob jective: n o t d efin ed
- C o n ten t: n o t d o n e

3. Platfo rms (5 elemen ts)

- Paid : search , C PD b an n er
- Own ed : web site Paid | Own | Earned
- Earn ed : TV n ews Tool | Analytics
- To o ls: n o t ap p lied
- A n alytics: n o t ap p lied
 Preliminary Research
Dig ital A u d it was co n d u cted as p art o f B u sin ess an d B ran d A u d it. S co p es o f th e A u d it in clu d e:

1. B o ard o f Directo rs’ in terviews: 1- h o u r semi- stru ctu red in terview sessio n s with each o f th e 04 d irecto rs
2. Man ag ers & Emp lo yees’ in terviews: 15- min u te stru ctu red in terview sessio n s with 10 man ag ers an d 50 emp lo yees
3. A g en ts’ market su rvey: 20- min su rvey q u estio n n aires with 25 lo n g- term ag en ts
4. C u sto mers’ market su rvey: 10- min su rvey q u estio n n aires with 370 cu sto mers

A im o f th e research was to co llect in fo rmatio n an d co n stru ct in sig h t p latfo rm fo r strateg ic p lan n in g .

Paid | Own | Earned

Tool | Analytics
The Core
Essen ti al p art rep resen ted as read i n ess fo r d i gi tal
i m p l em en tati o n
 The Core

Market • Infrastructure support

• Competitor comparison
Ready • Critical factors of industry

Business • Leadership
• Team
Ready • People

Customer • Demographics

Ready • Integration
 The Core - Explanation
Th e in terview was co n d u cted b y a seq u en ce o f q u estio n s. B elo w is th e su mmary o f an swers an d fin d in g s

Element Comment
1. Infrastructure - Primary market of FJC is in the North including Ha Noi with 20 provinces accounting for 60% of total volume.
Ho Chi Minh market is still small. The infrastructure in these 20 provinces is not well developved which will be a
challengue for advanced digital tech
2. Industry suitability - Furniture is a long-term and high-value product; therefore, customers spend longer time for consideration and
purchase; therefore, online platform can act as a channel of information updates
- Usually, customers will come to the store to check out products before buying. Hence, it is hard to get sales
online.
3. Competitor comparison Hoa Phat is a big name in the industry. They have planned activitied on Facebook and currently renewed their
brand. In order to catch up with Hoa Phat, FJC needs to invest on digital.
4. Leadership Directors: highly capable of digital integration. The directors have background working for multinational
companies at director level. They were in charge of marketing and sales, so their market intelligene and insights
are quite good. They are open-minded people with ample understanding of digital tech.
5. Team Managers: most of the managers have worked with FJC for 10 years. They are loyal, but not up-to-date.
Implementing new technology for operations can be hard for them to understandg and fluently use.
6. People Employees: there are two groups of employees. Group 1 is back-office employees and Group 2 is workers. For
Group 1, applying digital for marketing and operations is much easier. For Group 2, we can reconsider after
finishing two-year plan
 The Core – Explanation (cont.)
Th e in terview was co n d u cted b y a seq u en ce o f q u estio n s. B elo w is th e su mmary o f an swers an d fin d in g s

Element Comment
7. Demographics North: 60% of sales volume comes from 20 Northern provinces, 30% from Ha Noi
South: 10% of sales volume is contributed by many Ho Chi Minh and other Southern provinces

Except the 5 cities, especially Ha Noi and Ho Chi Minh, digital infrastructure is not well adopted in other provinces
which raises a considerable question about digital implementation and potential benefit in future
8. Digital integration After the interview, customers from Ha Noi and Ho Chi Minh are online most of the time by the use of their
phones.

In other provinces, they do have smart phones but are not familiar with all the digital functions. They sometimes
use desktops with landlines to check email, surfing news and music.
 The Core - Scoring
5 = Highly
Element 1 = Very Bad 2 = Negative 3 = Neutral 4 = Positive
positive
1. Infrastructure x
2. Industry suitability x
3. Competitor comparison x
4. Leadership x
5. Team x
6. People x
7. Demographics x
8. Digital integration x
B ased o n q u estio n s asked an d o verall ju d g men t, FJC sco res 3.375 o u t o f 5 wh ich mean s d ig ital in teg ratio n fo r marketin g an d o peratio n s
can h ave a p artial effect o n th e to tal resu lt o f th e co mp an y. Oth er th an th at, it sh o u ld b e co n sid ered as fu tu re in vestmen t fo r b ran d an d
market u n d erstan d in g .

Th e p ro ject sh o u ld h ave amp le b u d g et an d b e mo n ito red clo sely to o p timise th e co st. B asic ap p licatio n sh o u ld b e u sed , b u t ad van ced
to o ls an d tech are fo r co n sid eratio n .
The Strategy
Th e stage o f d i gi tal tran sfo rm ati o n th at o n e i s i n an d
d i rec ti o n s fo r wh at to d o n ex t
Stage of Digital Integration
Global standards and Vietnam adaptation
 Integration Stage – Global Standard

The Nexus of Forces is a concept developed by consultancy firm Gartner Inc. that describes how the
convergence and mutual strengthening of social media, mobility, cloud computing and information
patterns are creating new business opportunities.
 Integration Stage - Vietnam
External Internal

Digital Marketing (Ext) Digital

Digital
Stage Digital Digital Digital Marketing Digital Operations (Int) Digital Business Business
Application
Communication Performance (full-scale) & Beyond

Customer Limited interaction Brand communicates with
with digital asset of customers via both offline
the company and online channel. They
received a consistent
message across channels
Customers and their Customer full cycle The customers’ journeys are Both primary and
journeys are of transaction is supported from beginning to supportive functions are
monitored, optimised monitored, end by both primary and highly connected to
and measured for optimised from sales support activities of the support single customer
better cost of to delivery and after- enterprise journey from stranger to
acquisition service loyalist

Strategy There is not a Digital strategy is partly Digital strategy is Digital strategy is On top of the digital Digital strategy is written,
strategy in place, developed for individual fully developed from fully developed for marketing strategy, digital cascaded among team and
activities just functions, in this case, start to end for marketing tech also support business deeply implemented within
happen by the communication. mostly new customer supporting both new process to improve holistic the organisation. A
random need of acquisition purpose and retained efficiency seamless journey of
departments via communication customers with customer. A change of
better engagement model from reactive to
and after services proactive pattern

Platform - Search, - Digital content strategy - Sales funnel - e-commer - CRM - Big data
- Social - Integrated - Conversion rate platform - ERP - Automation
- Email communication campaign - KPI on budget - Customer - HRM - Artificial Intelligence
- Mobile on digital platform feedback loop - ESP
on digital for - Cloud
R&D purpose
 Integration Score Chart - Sample
1. A p p licatio n : Hig h . Th ere is a certain n eed fo r all d ig ital assets to b e set u p b ecau se o verall it can h elp to b o o st th e
p erfo rman ce o f th e b u sin ess.

2. C o mmu n icatio n : A verag e. Du e to th e lack o f d ig ital ad ap tatio n o f cu sto mers in d istan t p ro vin ces, d ig ital
co mmu n icatio n can n o t reach th e maximal p o ten tial. Rath er, it n eed s th e su p p o rt o f o fflin e ch an n els su ch as trad e
an d B TL activities to co mp lete th e tasks.

3. Perfo rman ce: A verag ely lo w. Th ere is a p o rtio n o f yo u n g p eo p le wh o are willin g to reg ister an d b u y fu rn itu re o n lin e,
b u t th is n u mb er is n o t man y. Th e majo rity o f cu sto mer still p refer to search fo r in fo rmatio n o n lin e an d th en g o to
th e sto res to try th in g s o u t th emselves.

4. Marketin g : Lo w. Fo r th e time b ein g , in vestmen t o n marketin g en g ag emen t an d au to matio n can n o t b e ju stified fo r

th e retu rn s o n in vestmen t. Fu rth ermo re, FJC lacks p ro p er reso u rces an d train in g to make th e mo st o f it.

5. Op eratio n s: Lo w. B asic ap p licatio n s su ch as g ro u p in tern al co mmu n catio n s an d p ro ject man ag emen t so ftwares are
reco mmen d ed . Oth er th an th at, p eo p le are n o t read y yet.

6. B u sin ess: No t ap p licab le

 Integration Score Chart - Actual
9
External
8

7 Internal
6

0
Application Communication Performance Marketing Operation Business
Strategic Elements
Directions – Objectives – Customer Journey
 Digital Busines Matrix
Customer
Asset Marketing Sales Brand Loyalty Operation Procurement IT HR Finance
Service

Web x x x x x
Mobile App x x x x
Social x x x x x
Search x x
Software x x x x x x x
Media x x x
Analytics x x x x
Online
Research x x x

Th e matrix sh o ws th at imp lemen tatio n o f d ig ital in FJC is skewed to th e extern al sid e o f b ran d an d marketin g . Th ere is p o ten tial
to exp lo re b y ap p lyin g d ig ital in o p eratio n s
 Customer Journey
A fter th e su rvery with 370 cu sto mers, th e cu sto mer jo u rn ey is co n stru cted b ased o n th e mo st co mmo n step s th at
th ese cu sto mers to o k reg ard in g th eir o wn jo u rn eys an d in teractio n s with b ran d

01 Lorem
Need ipsum dolor 02 Lorem
Searchipsum dolor 03 Consult 04 Consider
sit amet sit amet

- Customer identifies the need for - They spend time to search online - They contact the stores and - They narrow down their
furniture and even go to store to check discuss in details what they need options with proper criteria
out products - They ask friends for reference

Lorem
Loyal ipsum dolor
07 06 Interact 05 Purchase
sit amet

- They like the product and decide - Product delivered and installed - They decide to buy and ask for
to purchase more items - Product maintenance during payment and delivery terms
- They introduce FJC to their time of use
friends
 Categories of Objectives
Set the right objectives – Select the right platforms

Awareness Preference Acquisition Loyalty

Th e cu sto mer jo u rn ey reg ard less o f th e n u mb er o f step s u su ally start fro m “S tran g er” wh o d o es n o t kn o w ab o u t th e b ran d to
“Lo ver” wh o u ses an d ad vo cates th e b ran d stro n g ly, wh o in clin es to reco mmen d th e b ran d to th eir frien d s an d p eers. B ased o n
th is, o b jecitves o f d ig ital marketin g can b e d ivid ed in to 04 categ o ries.
 Objectives - Explanation

Element Comment
Awareness FJC is well known in the North, but not much in the South. For next year’s strategic planning,
awareness is not a concern if FJC focus its activities in the North
Preference After business transformation from state-owned status to join-stock company, customers
still have not known about this. Furthermore, there have not been any outstanding activities
to inform customers about this change
Acquisition Regular sales volume comes from agents. FJC does not have e-commerce website so we
cannot measure effectivenss of online sales
Loyalty No avaialble CRM. FJC has regular appreciation events and sales representatives who take
care of the needs from agents but those do not help to improve the qualty of service
provided.
 Objective Score Chart - Actual
8

0
Awareness Preference Acquisition Loyalty

Based on this findings after internal interview, we should prioritise Brand Preference for the time
being, Loyalty for the future. A re-branding campaign with digital support is recommended.
Sectional Recap
Stage – Model – Journey – Objective - Content
 Sectional Recap
Sta ge:
FJC is in the 2nd sta ge of digita l business tra nsforma tion when a few digita l a pplica tions a re in pla ce, but no
profound implementa tion yet. The ta rget for pla nning is to improve digita l communica tion first a nd then a ssist
opera tion of ba ck-office depa rtments.

Model:
FJC follows the Digita l Business Ma trix a nd ha s a tendency to skew to bra nd side. Improvement on the opera tion
side is potentia l

Journey:
First customer journey is defined with 7 steps to guide a ll future bra nd a nd ma rketing a ctivities

O bjective:
For the 1-yea r vision, bra nd preference is recommended by a bra nd rejuvena tion ca mpa ign

Content: N/A
The Channels
Ho w al l d i gi tal p l atfo rm s are p erfo rm i n g an d su p p o ri tn g
d i gi tal strategy
Digital Mapping
H ow all channels interact
 Digital Mapping

Awareness Knowledge Preference Sales Loyalty

Display You SMS

Google
Tube Ads
Email

Mobile app
Zalo

Facebook
PR

Website E-Commerce Site Website

Data
Display ads
SMS

Search Email
PR

Mobile App

Social media

Video -
YouTube

Website E-com site

Data Management
Recommendation
Rec o m m en d ati o n o n n ex t step s
 Potential of Digital Integration
Marketing-Led Business

Digital Brand Sales Support Online Channel CRM Internal System

• Digital • Online live chat •Online stores on • Customer relationship • Internal data
communication • Lead generation website and fanpage management system protection, digital
• New customer • Email & contact •Intermediary such as to nurture leads, property protection
journey online and nurturing Lazada cross-sell and up-sell • Employee efficiency
offlined with time control and
HR
 Annual Digital Objectives

Year 1 Year 2 Year 3 Year 4

1 2
2017
Objective:
- Digital communication to build
new brand iimage and right
understanding of the business
- Basic implementation of digital
performance and operations
2018
Objective :
- Digital performance and lead
generation are the focus by
building and optimising e-
commerce website
- Apply new ERP system and
update internal operation systems
for back-office employees
3 4
2019 2020
Objective : Objective :
- Online channel completion and - Expand business across ASEA
expansion via digital platform, targeting
neighbouring countries
- Data management of both B2B
and B2C customers via
personalised solution offered
- Support agents to apply digital
integration as well to achieve
maximal integration scale
THANK
YOU!
CONTACT ME
A: 150 B IS LE THI HONG GAM, DISTRICT 1, HCMC

M: mi nh. hai . ng uy e n2006@g mai l . com