A decline in revenue of preschool category

Abstract

This thesis investigates the decline in revenue within the preschool toy category at Viet Tinh Anh Joint Stock Company (VTA JSC), a leading distributor and retailer of educational toys in Vietnam. Despite overall market growth, the preschool category has experienced a sustained year-on-year revenue decrease. Using the problem-solving methodology of Van Aken and Berends, the study aims to identify and address the root causes of this decline. The research applies a design science approach combining literature review, internal sales data analysis, and in-depth interviews with key stakeholders. Symptom validation confirms a persistent revenue decline, while problem diagnosis identifies the main problem as a decreasing number of new customers. Three potential causes are examined, of which ineffective acquisition marketing and targeting is validated as the primary cause due to its impact and feasibility. The thesis proposes a targeted customer acquisition strategy to improve market reach and relevance of preschool products. The findings provide practical managerial implications and demonstrate the application of design-oriented problem solving in a real-world organizational context.