START-UP PROJECT-new IS strategy for Kookie

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tập, Assignment, Essay
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Executive Summary
Kookie is a new project in the fashion field. The aim of this project is offering customers with
trendy fashion products at reasonable prices. The main sources of products are from Thailand
and China. Target market of Kookie is teenagers and women. It would focus on both selling at
store and online trading.
For any new project, information system (IS) is very important. Carrying out IS in a structured
manner, firms can improve their business results.
Thus, in order to improve the IS of Kookie, the author propose some strategies. CRM (Customer
relationship management) is a methodology for marketing and sale activities, based on the
management of customers’ database. Because businesses are surrounded by high competition, in
order to increase profits and acquiring new customers, businesses have to set the tools for
efficient interaction between company and customers as well as between its members. Kookie
intends to use CRM software, which is composed of various functions. Thus, various tools and
techniques must be developed. Besides, some other channels such as Instagram and Zalo are
recommended for approaching customers better.
This study aims to understand the IS and how Kookie can use a new IS project to improve their
business. The objectives of this study are to determine the meaning of IS, establish how a new IS
is applied by Kookie, analyse if this new project is having an effect on internal communication
as well as customer buying behaviour and finally analyse how the use of IS methodologies could
improve Kookie’s business activities.
This report consists of three sections: Introduction, Current IS status, and Proposed IS strategy.
The first part is a short introduction of Kookie project, following by the second chapter which
represents the current IS method adopted by Kookie. As a final chapter, the author will provide
recommendation of a new IS strategy for Kookie.

Table of contents
1. Introduction ................................................................................................................................ 3
1.1. Overview of Kookie ............................................................................................................ 3
1.2. Main products...................................................................................................................... 3
1.3. Market segment ................................................................................................................... 3
1.4. Main Competitors................................................................................................................ 4
1.5. Business Goals..................................................................................................................... 4
1.6. SWOT analysis .................................................................................................................... 4
2. Current IS status ......................................................................................................................... 5
2.1. IS status in general management and operation .................................................................. 5
2.2. Strengths & weaknesses of our current IS........................................................................... 6
2.2.1. Strengths ....................................................................................................................... 6
2.2.2. Weaknesses................................................................................................................... 6
2.3. Why does it stay that way?.................................................................................................. 7
2.4. The awareness of managers and employees of applying IS ................................................ 7
2.5. What is current status of the competitors (in IS)? ............................................................... 8
2.5.1. Strengths ....................................................................................................................... 8
2.5.2. Weaknesses................................................................................................................... 8
3. Proposed IS Strategy .................................................................................................................. 9
3.1. Details of proposed IS strategy............................................................................................ 9
3.2. Benefits of new IS ............................................................................................................. 10
3.3. Difficulties of trying to adopt the new IS project.............................................................. 12
3.4. Possible influences on company’s clients and partners..................................................... 12

3.5. Benefits to our organization to stay ahead of its competitors............................................ 13
Conclusion .................................................................................................................................... 13
1. Introduction
1.1. Overview of Kookie
Kookie is a fashion brand for women. It was founded in District 5, Ho Chi Minh City on August
2016.
The first store is located at 47 Tran Hung Dao, District 5, Ho Chi Minh City, a centralized area
between districts in downtown of the city. Following is some information about Kookie project:
- Name of store: Kookie
- Ownership: Tran Hai Yen
- Total capital: A hundred million dong (100,000,000 VND)
- Grand opening: August 2016
1.2. Main products
Kookie provides customers with 2 main product lines:
 Women’s clothing
 Fashion accessories (belt handbags, sun shades, caps, hats, wristwatches, etc.)
Kookie products are following world fashion lastest trends, designed suitable for local customers
and retailed at cheap prices. Because the main customers of Kookie are the youth, the design
process is especially focused.
1.3. Market segment
 Clients of Kookies are young women who love fashion, want to be trendy, and want to
buy clothes at more reasonable price.

 Because the target market of Kookie is the young women (18 – 35 years old), who
mainly white collar employees or students at universities and colleges, they usually do
not have time to go shopping (traditional shopping: go straigth to the store, choose the
products and make payment). With the development of technology, they use online
shopping and e-commerce more. So Kookie is going to penetrate a portion of the online
retail market.
1.4. Main Competitors
The main competitors of Kookie are:
- Other clothing shops for women in Ho Chi Minh
- Online shops for women in Vietnam
1.5. Business Goals
Kookie aims to become the leading fashion brand for women in Ho Chi Minh City specifically
and in Vietnam in general.
- In the period of 2016 – 2020: Kookie sets the target of opening 5 stores in Ho Chi Minh
City
- In the period of 2020 – 2030: Kookie will have representatives agencies and partners in
almost every cities in Vietnam. The target number is 60 agencies.
- In long-term, Kookie want to export its products abroad to South-Eastern countries.
In order to reach these goals, Kookie need to be consistent in every business aspect. Especially,
all the members of Kookie need to adapt quickly to changes in business environment, customers’
preferences and technology breakthrough.
1.6. SWOT analysis
Strengths:
- Kookie provides customers with cheap, but fashionable clothes
- It has great locations of the store, with high traffic and convenient place for shopping
- The products are trendy

Weaknesses:
- Relatively low quality clothing
- Dependant on foreign suppliers (Thailand and China)
- Lack of control over garment production
- While market is large, it is a niche market
Opportunities:
- Fashion market is growing, especially the fashion clothing for young women
- Growing online market
Recession:
- Recession
- New retail shops that may open in the future
- This market is almost saturated, with the opening of many fashion clothing brands
2. Current IS status
2.1. IS status in general management and operation
Initially, Kookie store in Ho Chi Minh is equipped with:
- 1 computer
- 1 printer
- 1 cell phone (Hot line)
Softwares used are Word and Excel – basic software of Microsoft Office.
The total staff number is 3. Communication tools used are Email, Telephones, Skype, Facebook,
etc. We want to exploit the facilities of popular applications.

In order to procecure sale process and accounting tasks, we use sale software and management
software of KiotViet. It will support the sale and account processes in many task from cost,
input, revenues, etc.
All procedures will be done separately from inventory to selling, accounting to managing
activities. The value chain is the process or activities by which a company adds value to an
article, including production, marketing, and the provision of after-sales service, in which:
- Inbound logistics: Products imported from Thailand, China
- Operations: check product
- Outbound logistic: Showcased at the clothing store and stored
- Marketing & sales: Personal selling and word of mouth via networks of friends, stylists
and customers.
- Service: Support and customers care after sale will be in charged of marketing
department.
2.2. Strengths & weaknesses of our current IS
2.2.1. Strengths
- Cheap running cost: The investment on the current IS is relatively low in compared to its
revenue. Almost software and applications used are free or charged at low cost.
- Ease of setup: the current IS does not very complicate for our staff to set up and operate,
as they are popular software and applications.
2.2.2. Weaknesses
- Time assuming: the current existing information system takes a lot of time to collect,
analyze and report the information. Also, it is not suitable when the company aims to
expand to a larger scale.
- Lower security: the confidential information such as customer information can easily lost
(accidence, hacking, etc.)

2.3. Why does it stay that way?
The importance of upgrading the information system is soon realized; however it is delay
because of:
- Priority for other urgent duties (marketing, sale, etc) as the source of human and money is
limited.
- The managers and staffs are familiar with the easy old way of working, thus it is not easy
for them to accept a new IS which is more complicated, as well as time and money
consuming.
- There has been no significant problem occur which relate to the weakness of current
information system. Thus, there is no hurry need for a change of Information system.
2.4. The awareness of managers and employees of applying IS
Building an effective information system (IS) strategy is essential to the organization success and
sustaining the competitive advantage.
Nowadays, the matter of IS is not new for companies as it becomes increasingly more important.
In today’s business, there are many companies upgrade their information system to compete with
other companies. In general, IS assists the companies in communication both internally and
externally. Thus, using IS, company can know its customer profiles or information that it helps
business for understanding the need of the customers. Besides, applying a good IS strategy
would have strengthened the Triangle Model, in which Business strategy; Organizational
strategy and Information strategy play important roles.
Currently, manager and employees of Kookie are aware the importance of a good information
system for better operation. In order to achieve good business result, Kookie has to invest in a
new IS that can adapt to new business environment, satisfy the customers and increase the
productivities of employees.

2.5. What is current status of the competitors (in IS)?
2.5.1. Strengths
Some of Kookie’s competitors have developed attractive and well-designed websites which have
high traffic view. Their websites are also integrated with many supportive tools such as online
payment methods, chatting windows, etc.
Others use tools such as email marketing to inform their customers about the sale promotion,
discount policy, etc. SMS is also used for their marketing campaigns.
In order to manage their customers’ database, some competitors – big companies use CRM
(customer relationship management) to control big customer databases.
Some other social networks and applications are used by them for trading and marketing such as
Instagram, Zalo, etc. and have positive results, as the targeted customers use these applications
more often nowadays.
2.5.2. Weaknesses
It is clear to see that Kookie faces many competitors not only local fashion shops but also
international brands. Most of them respond to the customer lifestyle, and adapt its business to
respond to the needs of the customer. In the term of fashion shop competitive characteristics, it
can divide into two types that are low price alternative and high class fashion brands.
High class fashion brands provide exclusive value proposition moreover to regular fashion
products such as designing, qualified materials, etc. and charge expensive price for them.
Low price fashion shops compete with other rivals on price strategy and sale promotion. Some
small fashion shops even do not have online trading channels; their revenues depend greatly on
the store. The others use social network as a trading channel such as Facebook, Instagram.
Almost do not have websites or an official channel.

3. Proposed IS Strategy
3.1. Details of proposed IS strategy
The high competitive environment places an urgent need for companies to adapt and stand out.
In which, the information system (IS) must be aligned with the Triangle Model (Business
strategy, Organization strategy, and Information strategy). The changes in IS strategy must be in
line with the appropriate changes in business and organizational strategies (Abramowicz, 2015).
Managing information between staffs
Apply the CRM software to manage customer’s database
Between staff: use free services available such as Gmail, Skype, Facebook, Viber, Messengers,
etc for quick and easy communication.
With official information, we must use Gmail for consistency and confidencial issues. Also, all
of our staff should be trained to be familiar with using IT equipment and software to prepare
information and communicating with other staff.
Managing information with customers
- Store: POS machine at the store for covenient payment through cards.
- Online:
Develop an official website so that it will attract customers. The website must be eye-catching,
appealing, easy to use, as well as responsive to different types of devices. Recently, Google has
launched a new policy which is focusing on website responsive to mobile devices, as more and
more people are surfing Internet by their smartphones. Besides, the control of orders will be
easier as the up-coming shopping trend will be online shopping. Thus, website must be
integrated with adequate facilities such as online payment method.
Chatting windows: answer quickly the need of customers
CRM software: integrate the website, the Facebook

Sale software: control the order through Facebook, Website and other channels
Other social network applications must be used also, such as Instagram, Zalo, etc to reach more
customer groups.
Another channel must be developed is Youtube. Video marketing is favorable not only by the
customers but also some application developer such as Facebook. Having one video channel,
Kookie will be initiative in uploading new marketing campaigns, and it is proved to be viral –
effective than traditional ways.
3.2. Benefits of new IS
With the application of new IS, we expect many benefits for Kookie such as
- Clear and quick communication between the staff
- Secure and reliable information
- The company can reduce the cost of acquiring a new customer due to the impact of
current customers, viral marketing
- The cost of sales will be reduced as well as the cost of marketing and advertising.
- More profitable customer.
- The number of customer retention and loyalty is improving.
- The managers can evaluate the customers or customers groups who generate more profit
Benefits of CRM software:
Improved customer relations
Besides, new IS is expected to help servicing, marketing, and selling activities will be organized
for better results. Using CRM, Kookie staff can maintain and deepen the relationship with their
customers through various marketing activities such as promotion campaigns, VIP customers,
etc. According to Dyche, the emergence of the Internet is a new opportunity for customer
relationship building, as zero latency, offering real-time information and on-demand delivery.
Increase revenues

Using customers’ database, CRM will help marketing activities such as promotion campaigns,
sale seasons, etc get more reach and engagement. Therefore, higher revenue will be generated.
Maximize up selling and cross selling
With the assistant of new IS, Kookie can know its target market and its capacity to respond to the
customers’ needs. In addition, from the information of customer characteristic and customer
behaviour, Kookie can create its value and server that value in the right customers. And we can
also maximize the revenue by offering associated and relevant products. Due to gathering the
data about the customers then it makes the company have better understanding, target market to,
and communicate with customer or to customize future interactions with the customer for up-
selling specific products and services.
Also, we use cross selling to offer customers with complementary products, based on their
current consumptions and needs.
Better internal communication
Better internal communication will effectively share customers’ database and information
between members. The company considers using social media to be a channel for contacting
internally and externally. Nowadays, Facebook is the most popular channel for Vietnamese
people; Kookie can use this channel to communicate between members efficiently.
Optimize marketing
Understand more about our customer needs and behavior, Kookie will know how to have effect
on customer buying behaviour. Thus, the first step of all must be identifying the correct time to
market our product to the customers.
CRM can give us the most profitable customer groups, that we don’t waste our time on less
profitable customer groups.

However, the most important factor is concerning in marketing is the companies’ brand
impression in customers mind. Implementing good marketing campaigns is a good way to create
customers awareness, which in return also generate more revenue.
3.3. Difficulties of trying to adopt the new IS project
Change resistance from employees
IT capacity of members is one obstacle when Kookie generates this new project. Some staff may
resist to changes as they think the old way is good enough, or they are doubt about the efficiency
of the new way. Thus, training of the aspects of attitude, recognition, and capability is necessary.
Every staff should understand and co-operate with each other for a good outcome.
Hardware/ software infrastructure
Because the new IS project is quite sophisticated, investment on hardware/ software
infrastructure is also a requirement for Kookie. The current software/ hardware is old-fashioned
and not suitable for the new system. In this case, upgrading and replaccement are necessary.
Cost
High cost is another difficulty of this new IS project. This project needs a large amount of money
to develop the whole system, as well as other relevant task such as training employees. Thus, a
careful risk management should be implemented so that the new project is implemented
successfully without wasting on useless amount.
Training
In order to operate smoothy, the training step is very important. It will help all of the members
understand and operate the new information system.
3.4. Possible influences on company’s clients and partners
Customers of Kookie will be beneficial of this change. They can enjoy: online order, online
payment, real-time chatting, and phone call, thus Kookie can gain customers satisfaction - one of
the issues that have influence on consumer loyalty. Thus, the most important matter we must

remember when trying to sustain consumer loyalty is the relationships between businesses and
consumers.
Furthermore, Kookie can improve its customer’s loyalty by response the customers’ need due to
the appoaching to their need by using social media feedback, customers database, etc.
It is also exposed that the new strategy also can assist creating brands. As the brand is trusted,
not only customers but the partners will stay loyal to the brand.
3.5. Benefits to our organization to stay ahead of its competitors
Althought this project require an initial large amount of investment, in long term, it may decrease
our operation cost. Thus, more profit will be generated and it can open new opportunities to
expanse projects, as the business objectives.
Using new IS strategy, Kookie will be more flexible, and attract more customers. Thus, the
company will be more competitive than ever. Also, we can sustain our competitive advantage
over the competitors.
Conclusion
Kookie will gain positive outcomes if the new IS project is implemented, as it will help the
internal and external flow of information. Moreover, in terms of competition, Kookie may gain
customers favor if we understand consumer behaviour. Todays’ fashion market in Vietnam is
saturated. Due to Kookie has such a good and convenient place for customers visit, it may take
this chance to promote its brand broader.
Information system (IS) is increasingly important nowadays. Because of high competitive
environment, we need to be flexible and technologically advanced over the competitors. Some
recommendations for Kookie is the implementation of a new IS strategy, in which the website
must be developed, CRM application, as well as using other social networks. The author believes
Kookie will successfully meet its goal and become the leading company in this business field.
Maintaining a good IS is not only creating a convenient working environment but also providing

a stable foundation of expanding its system, maintaining and creating more competitive
advantages.
References
Abramowicz, W. (2015) Business Information Systems: 18th
International conference, BIS 2015
Dyche, J (2010), The CRM Handbook: A business guide to customer relationship management.
Addison – Wesley.
Lao Dong newspaper, Vietnam fashions attack domestic market, [Online] Available from
http://laodong.com.vn/kinh-doanh/thoi-trang-viet-tan-cong-thi-truong-noi-dia-370954.bld
[Accessed at 05th August 2016]

START-UP PROJECT-new IS strategy for Kookie

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