FINAL REPORT hải hà COMPANY marketing channel of hải hà

UNIVERSITY OF ECONOMICS AND FINANCE FINAL REPORT: HẢI HÀ COMPANY LECTURER: NGUYỄN THỊ NGỌC DUNG GROUP MEMBERS: TABLE OF CONTENTS: I INTRODUCE About Hai Ha Company (HAIHACO) Product lines Hai Ha’s competitors Current distribution system II MARKETING CHANNEL SYSTEM ANALYSIS: Define service output and categorize end-users: Service output demand of end- users and segmentation Marketing channel of Hải Hà: 2.1 Current distribution channel diagram and channel members 2.2 Functions of channel members 2.3 Efficiency template IV III DEFINE GAP ANALYSIS: Conclusion Service gap Conclusion Cost gap Conclusion of common problems faced by distribution channels MAKE OR BUY DECISION What percentage of the distribution channel Hai Ha has – how much % Buy or both ? V.STRATEGIC PLAN: VI Strategic for problem Strategic for problem Strategic for problem REFERENCE (according to APA standard) I INTRODUCE About company ● Hai Ha Confectionery Joint Stock Company (HAIHACO) is one of the largest confectionery manufacturers in Vietnam ● The company was established in 1960, has spent more than 50 years of striving and growing up The company has continuously grown, accumulated a lot of experience in production and business ● The predecessor was a small factory with a capacity of 2000 tons/year Today, the company has developed into Hai Ha Confectionery Joint Stock Company with a production scale of up to 20,000 tons/year ● Hai Ha Confectionery Joint Stock Company is the first enterprise in the confectionery industry to be certified with the "Hazard Analysis and Critical Control Points" (HACCP) system in Vietnam This demonstrates the commitment of business leaders to ensure food safety for consumers' health ● - Main business activities include: Producing and trading in confectionery and food processing - Import and export business: raw materials, machinery and equipment, specialized products, consumer goods and other goods - Investing in construction, leasing offices, houses, and commercial centers Product lines Competitors - This is a big competitor of Hai Ha in the North market, with an investment capital of over VND 60 billion and an annual output of about 6000 tons In recent years, Hai Chau company has paid great attention to the issue of diversification and improvement of product quality The company has invested billion dong to import the production line of chocolate-covered sponge cake from Germany and the Netherlands, and at the same time, innovated the management method and reorganized the distribution network across the country Main products are fresh cakes, savory cakes, snack cakes, … - This company is considered as the main competitor of Hai Ha Company in the Mien Nam market Bibica confectionery company has imported a series of equipment from France, Italy, producing many kinds of chocolate confectionery products, hard candies, marshmallows, Jelly, etc The competition is quite strong with Hai Ha's products in terms of product price Bibica confectionery companies also have the advantage of producing sugar, which is the main raw material for making confectionery, so the input price of Bibica is lower than that of Hai Ha On the other hand, these companies are not taxed on sugar products used to make confectionery Therefore, the price of Bibica is lower Current distribution system: - HAIHACO has 03 production factories with modern production lines, applying the ISO 22000 quality management system to ensure the standards of food hygiene and safety, protecting the health of consumers and having a capacity up to 20,000 tons of confectionery products per year - Hai Ha Confectionery Factory is located in VSIP Bac Ninh Industrial Park This is the new and most modern factory of HAIHACO, equipped with many modern production lines along with a team of skilled workers, a large warehouse, the factory fully meets the criteria of green production clean, beautiful, safe, fire prevention and environmental protection - Hai Ha Confectionery Factory is located at Lac Long Quan Street - Tien Cat Ward - Viet Tri City - Phu Tho - Hai Ha Confectionery Factory is located at No Thanh Binh Street - Ha Long Ward - Nam Dinh City - Nam Dinh - The company has 02 dependent accounting branches in Da Nang and Ho Chi Minh to serve the consumption of the Company's products:  Da Nang branch is located at 134 Phan Thanh - Thac Gian Ward - Thanh Khe District - Da Nang With the function of serving the consumption of the Company's products in the Central and Central Highlands markets  Ho Chi Minh branch is headquartered at Lot 27 Tan Tao Industrial Park, Tan Tao Street - Tan Tao A Ward - Binh Tan District - Ho Chi Minh City With the function of serving the consumption of the Company's products in the Southern market II MARKETING CHANNEL SYSTEM ANALYSIS Define service output and segmentation: Segment Bulk - name/ breaking descriptor Bulk “I want to buyers buy in bulk to serve my customers ” LOW Small “ I usually buyers buy a small amount to use in my family or give as a gift” HIGH Marketing channel of Hải Hà: 2.1 Current distribution channel map of Hai Ha:  In Hanoi, Hai Ha Confectionery Joint Stock Company has warehouses of finished products and warehouses of production materials  The distribution channel structure of Hai Ha:  Direct channel: Manufacturers distribute directly to consumers through the company's store form (Kotobuki) or order directly through e-commerce platforms such as Tik Tok shop, official Shopee by Hai Ha  Tie channel: In this channel, the company will distribute products to big supermarkets such as Metro, bigC, G7, Supermarkets will directly place orders with the company through staff in charge of the area management company  Tie channel: This is the main channel used, the distribution of products is done through wholesalers to retailers and then to consumers Products are transported from the factory warehouse via trucks to dealers in the provinces after confirming the order from the market staff in charge 2.2 Channel functions Function Physical Possession Ownership Promotion Financing debt is more than 15 days old and the agent has not paid, it is not allowed to pick up the goods Risking - Whether the compa gives priority to the agent returning the goods, the company must determine if thi is really a difficult product to sell on the market If it's hard to sell on the market, allow them to return 100% of the original value - During transportation, loadin and unloading if the goods are broken or damaged If it is the fault of the bad shipping, the compan has to bear the whole cost, or if it is the fau of the distributors, th bear the loss caused b Ordering Payment Information Sharing 2.3 Efficiency template Cost Physical possession Ownership Promotion Negotiation Financing Risk Ordering Payment Information sharing Total N/A Normative profit share 3.2.1 Identify channel gaps: Service gap: Segment Bulk breaking Bulk MEDIUM Buyers SS=SD Small Buyers HIGH SS=SD HIGH HIGH HIGH SS Buy - Information sharing: Issues of limited information sharing, not receiving the necessary support or not understanding the necessary import and sales process from Manufacturer itself, the lack of information by channel members needed to be solved by the upstream channel itself (Manufacturer) -> Make V STRATEGY Communication strategy: - For Tet holidays, Mid-Autumn Festival, Hai Ha should have promotion policies and need to promote the promotion of product information to customers (media communication, running Google Ads, Youtube Ads, reducing discounts) prices at retail outlets, buy in combos or give away moon lanterns to customers, ) - There should be fun, trendy articles to attract customers and customer interaction on Fanpage Moreover, Hai Ha should have PR articles written about her brand and products for customers to grasp - Need PG staff in big supermarkets to promote new products → Customers will have more choices and when promoted in supermarkets, they will be able to try the product and that is also a way to test the market school - Hai Ha should cooperate with the Agency to create a large media campaign to strengthen the company's position in the market - Paint and repair the company's transport vehicles and decorate more Banners on the car to make an impression on customers who suddenly see it → Customers will remember the name Hai Ha if seen many times on the street Associate with KOLs and KOCs to introduce products and increase brand recognition Information sharing strategy: - Hai Ha needs a team to manage information between channel members: update the information of the market staff in each region on the official website so that members can easily contact when there is a problem or want to register as a distribution member - Build data and manage inventory and order quantities of agents and retailers on a common system - Use analytical tools to understand customer needs and tastes as well as competitor information from channel members From there, make a product strategy suitable for each region's purchasing volume - Building relationships between distributors by supporting events and policies In case the quantity of goods at this distributor is lacking or in excess, you can contact the nearest distributor to avoid returning the goods to the manufacturer and saving storage costs - Train and improve the quality of sales staff Distribution channel expansion strategy: Since this is an FMCG industry, product coverage is always an important criterion Hai Ha can expand more warehouses in the central and southern provinces to meet the demand for goods as well as manage the quantity of each region more easily Bringing products into convenience stores, supermarkets (GS25, Ministop, Circle K, ) and grocery stores Build more warehouses in the southern provinces to facilitate the supply of goods The offline channel will be the place to provide the most complete and satisfying experience for customers Focusing on strategies to increase customer experience, organizing sampling at local markets and supermarkets VI REFERENCE: https://www.careerlink.vn/cam-nang-viec-lam/kien-thuc-kinh-te/fmcg-la-gi-sukhac-biet-giua-fmcg-va-retail https://www.academia.edu/38001223/4_Ph%C3%A2n_t%C3%ADch_t %C3%ACnh_h% C3%ACnh_n%E1%BB%99i_b%E1%BB%99 https://www.pos365.vn/fmcg-la-gi-6178.html http://www.haihaco.com.vn/upload/file/nam-2022/bctn-2021/bao-caothuong-nien-haihaco-2021-signed.pdf https://www.zbook.vn/ebook/thuc-trang-quan-ly-kenh-phan-phoi-cong-ty-cophan-banh-keo-hai-ha-18891/ https://haiha-kotobuki.com.vn/ ... end-users: Service output demand of end- users and segmentation Marketing channel of Hải Hà: 2.1 Current distribution channel diagram and channel members 2.2 Functions of channel members 2.3 Efficiency... HIGH Marketing channel of Hải Hà: 2.1 Current distribution channel map of Hai Ha:  In Hanoi, Hai Ha Confectionery Joint Stock Company has warehouses of finished products and warehouses of production... and an annual output of about 6000 tons In recent years, Hai Chau company has paid great attention to the issue of diversification and improvement of product quality The company has invested