Dairy provider Dutch Lady Vietnam has refused to help Big C supermarket in Ho Chi Minh City with a promotion campaign, saying it is a dumping exercise in disguise.
All branches of the Big C supermarket chain were crowded on the first day of the “Cheapest ever” campaign on Wednesday.
But they had to return “empty handed” as the campaign was cancelled because the manufacturer refused to deliver the products.
Earlier, customers were given leaflets saying that from Oct. 7-25, the supermarket will sell every case, each of four 180-milliliter Dutch Lady boxes, at VND16,200 (US$0.91) instead of the normal VND16,800 and will give an extra 110ml box for customers who buy two cases or more.
Duong Quynh Trang, in charge of external affairs at Big C, said the supermarket sales department has been working hard for months to negotiate with the provider for the cheapest price possible.
But the provider, known officially as Friesland Campina Vietnam, refused to cooperate at the last minute, saying that the supermarket was under pricing its product by giving the extra milk box, Trang said.
Tran Quoc Huan, director of marketing and commerce at Friesland Campina Vietnam, said the contract said that Big C will sell the case at no less than VND16,200 but the extra offer means each case is valued less than VND16,000 and thus the supermarket is selling even under the price it has to pay the provider.
Huan said the offer would make people rush to Big C and affect the sales at his other retail partners, who are selling the case at VND16,400-16,800.
Trang denied the accusation, saying the extra milk box should not be considered as devaluing Dutch Lady products because it comes from the marketing budget of Big C itself.
“We stated clearly [in the leaflets to customers] that it is an “extra gift from the supermarket”.”
According to a marketing expert, who wished not to be named, it’s rare that a supplier turns down a delivery order, because its sales will be reduced.
The Big C campaign is essentially a sale-off but the milk case is still priced as promised in the contract, the expert said. “So it’s hard to accuse the supermarket of breaking the commitment.”
Lawyer Tran Thi My Nhung of the HCMC-based AL (Attorneys at Law) International, agreed. Nhung said the extra gift only adds to the customers’ cart, it does not change the money they have to pay.
Source: Tuoi Tre