Analysis Of Business Of Family Mart

Family Mart is a Japanese convenience store franchise chain and it is owned by FamilyMart Co.,Ltd. They are focus in provide convenience services to customers around their life circle. They are promote “Summer Fun & Fresh” promotion start from 18 July to 28 August 2018. It is aim to introduce new flavours of snacks into their house brand, FamilyMart collection.

They have chosen expand the market to Vietnam. In political factor of macro environment analysis, Family Mart must consider their product to comply with food and beverage regulation to avoid lawsuit from others. In economic analysis, although Vietnam is a developing country, it has a rapid growing in its GDP and citizen living standard. In social culture, Vietnamese have a similar lifestyle with Southeast Asia country. In technology factor, Vietnam has developed its country successfully, it will fit to the convenience service that Family Mart provide. Based on the analysis above, we feel that Vietnam is suitable country for Family Mart expand their business.

The obvious and main competitors of Family Mart in Vietnam are Vinmart, Mini Stop, CircleK, Shop & Go, and B’s Mart. They competitive in the terms of services provided, financing power, distribution, and prices. Mode of entry to Vietnam market suitable for Family Mart is franchising. It may facilitate Family Mart know well about Vietnam and adaption with corporate with partners.

Family Mart will use psychographic segmentation and behavioural segmentation. In psychographic segmentation, Family Mart ought to be focused on matching the lifestyle of Vietnamese. The company should position their products is made in Japanese and high quality required in customers mind to encourage them pursue high quality product.

By the product strategy mix, Family Mart can provide varies products to lead highly attractive phenomena to customers. Second, Family Mart is suggested to use market price penetration strategy to cover its initial store opening cost rapidly. Family Mart store also can open Facebook official page to attract customer attention and more presence in their mind. Other than that, The company can strategically locates their outlets in downtown or near to school and office. The lifestyle in city such as Ho Chi Minh city are more match with the feature of service that Family Mart provide.

Last but not least, I also giving some recommendation to Family Mart store to overcome their weaknesses.

Weaknesses 1: Consumers are not willing to purchase in Family Mart store. The product prices of Family Mart is exorbitant compare with supermarket or grocery store. The product price of other brands from other supermarket is more attractive. For example, the price of imported biscuit sold in Family Mart store is higher about 30% compare with other brands from supermarket.

Recommendation 1: Family Mart store is suggest by positioning their Japanese brand product. Japanese brand product is perceived as good quality in customers mind. Japanese brand creates belief toward consumers. When Family Mart store propagates its products are imported from Japan, customers will confidence to purchase based on their belief of Japanese brand in term of their quality.

Weaknesses 2: Customers difficult to have an efficiency purchase experience in Family Mart store. When the store is crowded by customers queue, customers is unavailable to make fast payment even buying few amount of goods. Some of the customers maybe rush to work or school, this may due them avoid to purchase in Family Mart store again.

Recommendation 2: Expanding online service including online order and offline pickup. The e-commerce’s revenue grows 10% every year and will become more important in the future. If Family Mart store provide online booking and offline pickup for customers, it will bringing convenience to customers order advance before they arrive the real shop. Furthermore, they can pick up the goods based on their favourable time that they have booked and purchased advance. For example, customers can collect their goods from the store that they have selected via online service before or after work.

Weaknesses 3: The competitive among convenience shop and supermarket is getting more rival nowadays. More of the convenience store also provide similar service like 24 hours operation, instant food supplier, bill payment, credits top-up service and so on.

Recommendation 3: Family Mart store is recommended by offer more convenience services to increase its competitive advantages. For instance, Family Mart store can offer shoe cleaning machine and phone charging. When consumers decide about whether go for Family Mart store or others convenience shop to full fill their needs, Family Mart store would be their priority choice because of its variety services.