The topic improving distribution channels at classic fine foods

ACTIVITY REPORT Company? 2021-2022 Name of the student ACTIVITY REPORT Company? Student name: Student’s ID Number: Class: CN16LOG - Management of distribution companies in logistics networks Hanoi, Vietnam, 2022 TABLES OF CONTENTS TABLES OF CONTENTS LIST OF FIGIRES .5 LIST OF CHARTS LIST OF DIAGRAMS LIST OF TABLES .8 CHAPTER 1: INTRODUCTION 1.1 Background and indications of the study 1.2 Problem statement .1 1.3 Research objectives .2 1.4 Subjects and scope of research 1.5 Research Methods .2 CHAPTER 2: LITERATURE REVIEW 2.1 Theoretical basis 2.1.1 Distribution concept and distribution channel 2.1.2 The role of distribution channels 2.1.3 Functions of distribution channels 2.2 Contents of distribution activities 2.2.1 Distribution channel structure 2.2.2 Organization of distribution activities 2.2.3 Movement flow of distribution channel .10 2.2.5 Distribution channel system management 11 2.3 Factors affecting distribution activities of enterprises 13 2.3.1 Macro-environmental factors .13 2.3.2 Factors in the distribution channel environment 15 2.3.3 Factors in the company's internal environment 15 CHAPTER 3: DIAGNOSIS AND OBSERVATION/CURRENT SITTUATION 17 3.1 Company’s overview 17 3.2 Response rate .18 3.3 Current status of distribution channels of Classic Fine Food company.19 3.3.1 Distribution channel development status 19 3.3.2 Actual situation of applying distribution channel structure 21 i 3.3.3 Current status of business through the application of distribution channel development .23 3.4 Evaluate the company's achievements and difficulties 27 CHAPTER 4: CONCLUSION AND RECOMMENDATIONS 29 4.1 Conclusions 29 4.2 Recommendations 30 REFERENCE 34 ii LIST OF FIGIRES Figure 3.1 Title Single level distribution channel iii Page 22 LIST OF CHARTS Chart 3.1 3.2 Title Page Number of interactions on online platfrorms 20 Distribution channel development efficiency chart in the 24 period of 2019-2021 iv LIST OF DIAGRAMS Diagram 2.1 Title Distribution channel structure Page v LIST OF TABLES Table 3.1 3.2 Title Response rate for questionnaires Response rate interviews vi Page 18 18 CHAPTER 1: INTRODUCTION 1.1 Background and indications of the study In the current economy, companies are operating in an ever-changing business environment, with all types of goods having fierce competition, technological advancements, new trade management policies, … and the loyalty of individual customers is decreasing day by day Therefore, companies must implement their marketing strategies well in the field of market-centered and customer-oriented to survive and develop Specifically, companies must achieve the goal of flexibly applying policies on products, distribution, prices, and trade promotion of policies to suit fluctuations in the market One of the difficulties faced by companies today is to ensure that their products are widely distributed in the market by establishing and effectively using the requirements of the distribution policy in the course of their operations business To solve this problem, companies must establish a strategic distribution channel system to ensure the efficient circulation of goods among channel members, minimizing total costs channel costs relative to the desired level of service assurance Aware of the difficulties in the current economy, Vietnamese enterprises are promoting their business and product distribution strategies to build brands in the market to compete and maintain a unique position in the hearts of consumers consumers and Classic Fine Foods are no exception Up to now, the distribution channel system is still a difficulty in expanding the market of the company Stemming from the above difficulties, the author has chosen the topic "Improving distribution channels at Classic Fine Foods" as my research topic The topic is the most specific and general analysis of the distribution channel market and its impacts on businesses, specifically Classic Find Foods From there, find solutions to help the company perfect its distribution channel system for the future 1.2 Problem statement The choice of distribution channel will have important influence on a business that produces goods Every decision to choose a distribution channel will have a significant influence on the marketing plan Distribution channels also have an impact on the pricing of the products they decide to market Therefore, decisions in product marketing and advertising plans depend a lot on the source of the product's distribution channel Besides, it also involves cooperation between businesses Realizing the great impact of distribution channels on the sustainable development of enterprises The author thinks that developing a distribution channel for Classic Find Foods is a very good job In today's market, many companies are improving their business situation by lowering product prices and offering products to deceive customers Therefore, many customers have lost faith in quality foods and products from reputable companies Developing the distribution channel system at Classic Fine Foods to bring the best products to many customers across the country and as well as enhance the value of consumers through the wise selection of quality products quality and safety for health 1.3 Research objectives Based on the evaluation of distribution channel activities at Classic Fine Foods company, the topic has systematized theoretical and practical issues about distribution channels in sales activities of enterprises; Assessing the current status of distribution channels of Classic Fine Foods company; Determining and measuring the influence of each factor on the company's distribution channel efficiency through customer evaluation and Proposing solutions to improve the distribution channel of Classic Fine Foods company shortly next 1.4 Subjects and scope of research The object of the research is the Distribution Channel of Classic Fine Foods Company; Survey object: Dealers, retail stores of Classic Fine Foods company The research scope of the topic in terms of space was carried out in Hanoi, in terms of time The study was carried out from March 2022 to May 2022, and in terms of content, the study aimed to perfect the system distribution channel for Classic Fine Foods company and propose solutions to develop and maintain long-term sustainability 1.5 Research Methods The study uses a combination of qualitative and quantitative methods for research analysis However, due to the overlapping nature, the author mainly uses qualitative methods to make judgments and analyze relevant information from which to make recommendations * Qualitative research - Method of document search: Using available and verified documents and information from different sources - Methods of analysis and synthesis of theories: interaction reached 3568 people until 2020 reached 4532 and the target representing 2021 when the pandemic is at its most unpredictable and quality food products are warmly welcomed, government directives make distribution channels crowded and interaction high Specifically, Classic Fine Food has reached 10,680 consumer interactions with the products the company distributes in Vietnam Mainly food for daily consumption This is a proud number when the food industry currently occupies a large market share in the economy Creates many advantages for production and distribution businesses, especially with Classic Fine Food, when presenting itself in the position of exclusive distribution for many reputable manufacturers 3.3.2 Actual situation of applying distribution channel structure With a comprehensively invested and developed channel structure, Classic Fine Food has made significant improvements over the years and obtained great achievements in developing distribution channels for the company to promote consumption products to consumers through proficient use of the current distribution channel structure Typical distribution types such as online distribution using technology, distribution through establishments and branches of the company, distribution through promotion, and branding from companies reputable import and export company Building an image and reputation in the market is not too difficult for Classic Fine Food, for example, with the distribution channel length structure, the company has used distribution channels at many different levels from level one too many levels to carry out the implementation of promoting the image of products and improving the value of finished products of reputable manufacturers distributed to more places in the market With a wide distribution channel structure, the company actively implements campaigns to increase profits and stabilize revenue levels, increasing competition in the current volatile market Exclusive distribution has helped Classic Fine Food win great affection in the hearts of consumers, allowing the brand to make optimal use of purchasing power from consumers and add value to the products that the company offers Recognizing the difficulties in scaling further, the company has implemented the third structure, which is to use intermediaries in the distribution channel This is the campaign with the greatest possible effect because of the influence of the media platform on the influence of the consumer's purchase Using commercial intermediaries, and distribution intermediaries to help expand the market and earn more potential customers in the future at this time 21 Classic Fine Food has done a great job, but the pandemic has made Everything change and the demand is also increasing, so Classic Fine Food has to come up with newer and more effective strategies to attract customers While other strategies are difficult to give businesses a long-term advantage, redistribution has the advantage that it is not easy and quickly imitated by competitors Because in today's conditions, the ability to keep the position of Leading in product advancement or high quality is very difficult Holding a price advantage is very limited because competitors can adjust their costs Promotional advantages can also be quickly imitated Today, people buy products not only based on where it is sold but when and how it is sold This is essentially a distribution function This function is performed through the distribution channel network of Classic Fine Food company The target market that Classic Fine Food Vietnam focuses on is small food companies or distribution establishments The characteristic is that the product is ordered in large quantities, and requires strict quality and quantity Therefore, for customers who are organizations and food businesses, Classic Fine Food Vietnam company uses direct distribution channels Customers are stores and distribution branches that need to import the company's quality food and other products for its business in the food industry The advantage of this channel is that it brings the majority of revenue to the company, creating long-term business cooperation relationships with customers through the purchase and sale of goods and other activities Ensure the mainstream of Classic Vietnam manufacturer in distribution The main drawback is the strict requirements in the shipping process and product quality as well as being on time while they make orders close to the date of receipt, making physical channel operations difficult In addition, the company must also actively discount large orders, discounts for patrons, and other support programs The company can only sell products in a certain market and the continuity of orders is not high Classic Fine Food Retailer Figure 3.1: Single level distribution channel 22 End Consumer This is a type of distribution channel where products reach consumers through retail systems at convenience stores or food retailers with large sales This channel is often applied in areas near the company's warehouse, the volume of goods consumed through this channel accounts for 15% - 20% The use of many resellers will make the company's management less effective, and the retailer's ability to sell products is often small This is a short channel, so it will affect the company's ability to dominate the market The advantage of this channel is that the company can bring its products to more consumers However, Classic Fine food Vietnam has not fully promoted the advantages of highly qualified labor, on the other hand, it is not enough staff forced to take care of the distribution For distribution channel width structure The current intensity of distribution channels that Classic Fine Food Vietnam is implementing is widespread distribution The company's products are widely distributed throughout Hanoi When customers need to buy, they are always ready and convenient to transport The decision to use the widely distributed form is because the company determines that a low-average product is a product of low use value that can be used a lot Using this method makes Classic Fine Food's food products easily accessible to customers, quick to transport, and quick and easy to buy and sell However, Classic Fine Food Vietnam also has limited control over product display and prices are not strictly controlled 3.3.3 Current status of business through the application of distribution channel development In the recent period, Classic Fine Food's business situation has undergone many drastic changes Due to the impact of the pandemic, it is difficult for a large number of the company's products to be distributed outside Realizing these difficulties, the company has implemented a plan to develop distribution channels for a sustainable goal, with the current situation, despite many challenges, the company still maintains its market share in the market To satisfy customers, the company's imported products are widely welcomed because they are necessities for daily use From 2019 to 2021 Vietnam's economy grew steadily at 5.6% in the first half of the year, and macroeconomic indicators remained optimistic and stable However, the situation worsened when 23 entering the third quarter, the epidemic situation became more complicated with the Delta variant and the Government was forced to take more drastic measures to prevent the epidemic under the motto "fighting the epidemic" like fighting the enemy" Accordingly, the gross domestic product (GDP) in the third quarter of 2021 is estimated to decrease by 6.17% compared to the same period last year, this is the deepest decrease since Vietnam has calculated and announced quarterly GDP up to now As one of the important economic sectors, Food - Beverage also suffers a significant impact A survey by Vietnam Report conducted in August 2021 shows that the economic picture of the Food - Beverage (F&B) industry has been "tinted" by COVID-19 This is considered to be the period when items that are not used in daily life or are not essential will be stopped and purchasing power will decrease sharply Before 2020, Vietnam's F&B market continues to grow and is assessed to be full of potential The annual growth rate (CAGR 2021-2025) is 4.98% The market size is expected to reach 678 million USD with the number of users expected to reach 17.1 million by 2025 Faced with the COVID-19 pandemic, the activities of many businesses in the industry have been facing problems Survival In 2020, nearly 48% of businesses surveyed by the Vietnam Report believe that they are not affected by the pandemic or that the impact is small or insignificant However, the prolonged impact of the pandemic on industry businesses became more pronounced after the outbreak in April, and became more severe in July with the proportion of businesses affected at a severe level has increased to more than 91% This shows that the resilience of the business has shown signs of weakening 24 Chart 3.2: Distribution channel development efficiency chart in the period of 2019-2021 (Source: Classic Fine Food company) Increased food supply Electronic transport system Through the chart, we can see the development of the distribution channel system of Classic Fine Food company over the years from low to high From the period of 2019 when the company has not been promoted to develop the distribution channel system to bring the best products to the market imported from famous food manufacturing companies around the world This is considered the most attractive point that Classic Fine Food creates than the service that the company creates to reach customers By 2020 when the pandemic is spreading widely, affecting all sectors, making the economy go down, the import and export of products face many troubles and difficulties in transportation This is a difficult time for the whole food industry because it is an essential commodity but has many problems with transportation as well as distribution to the market To solve the above challenges, the company has implemented many measures to develop distribution channels through structures and effectively exploit the resources that the company currently has so that the best quality products can be reached, by consumers The comprehensive development of distribution channels is the most comprehensive and focused campaign to complete, at this time the competition is escalating, forcing all 25 companies to pull customers to their side to ensure that the source of goods is sold as much as possible to recover the initial expenses to maintain the business in challenging times The companies all launched campaigns to effectively exploit relationships with customers and the government, focus on promoting advertising and limiting waste in investment, recruiting many media positions for young and talented employees A time when businesses had to compete to survive Based on existing capabilities, Classic Fine Food has captured the food market thanks to the company's influence on customers, especially the number of loyal customers, thereby generating potential customers Realizing that development can only be based on customer factors, the company has promoted the promotion and development of distribution channels through modern forms taking advantage of the advantages of social networks and communication to attract customers new and let customers experience the product and receive positive feedback In just year to the end of 2021, customer interaction with the company has greatly increased the efficiency of revenue performance and the first profits have appeared after years of uneven surplus Relying on the strength of communication, the company has brought the image and name of the brand to a new value and built a community of its own During that time, the company expanded the market to the whole country and attracted many potential customers to build a strong company against the Covid 19 pandemic Focusing on quality and prestige in the development of distribution channels Classic Fine Food always ensures customers have the best benefits when participating in using the company's products, for the health of consumers Classic Fine Food's branded products are always the best and the best experience that customers want to aim for and use 3.3.4 The situation of coordinating policies of distribution marketing Regarding product policy: Because the information provided by channel members is mainly about output, sales, product consumption rate, consumption habits, and habits of customers, the company does not have a processing system to deal with the problem Because of effective information management, forecasting market trends, as well as new product development activities, are not effective The development of new products is mainly due to the company's research and discovery, but not yet the significant contributions of channel members After developing a new product, the new company 26 informs channel members about the new product and briefly introduces it so that channel members have a certain understanding Price policy: Because the company sells directly to agents, wholesalers, and retailers, the company has its pricing policy for each object For wholesalers and retailers, take the goods at the price set by the company for each object Retailers who buy frequently and in large volumes can enjoy the same incentives as wholesalers The company has a discount policy that is quite suitable for the current situation However, the company can only manage the prices for those directly doing business with them, but not the relationships behind the channel So at present, the retail price of the company's products is still not unified, but there are differences between the regions and each retail store due to the lack of strict management of the company Promotion policy: In general, the Company's promotion activities are weak The company only conducts this activity when the consumption level drops when there is a new product However, this activity takes place in moderation and is inefficient The cost for this operation is very little Advertising activities in newspapers and magazines take place infrequently with low frequency and short time (the company only conducts advertising 1-2 times a year, each period lasts about month, during the implementation period) advertising is only conducted 2-3 times/week / brochures) With such low intensity, the Company's advertising activities are often ineffective, causing waste 3.4 Evaluate the company's achievements and difficulties Achievements in the development of distribution channels There are very encouraging achievements in the implementation of social progress and justice which are closely linked with economic growth, development of labor resources, and quality of labor, science, and technology as Vietnam is becoming more and more popular integration That achievement increasingly affirms that leadership and the right direction are decisive factors for the success of innovation, encouraging and motivating people to continue to respond, making an important contribution to maintaining and continuing to promote innovation promote the cause of comprehensive innovation of the country with higher steps in the distribution product system This achievement is recognized by partners in the region as well as potential partners who are gradually having relations with CFF and consider this an advantage 27 Expanding activities of developing goods distribution systems at enterprises in Vietnam In the first phase, CFF in Vietnam gradually developed a cross-border distribution of goods to Laos and Cambodia due to favorable conditions sharing a land border After that, CFF has also been promoting the development of distribution systems for large retailers to exploit the potential of this market For the direct market, although there are similarities in the structure of goods plus the limitations of the competitiveness of the economy and enterprises, enterprises have also had initial steps to seek development opportunities develop distribution system through opportunistic fairs Besides neighboring countries, CFF is gradually investing in retail stores and introducing the company's products in cities in the south of Vietnam, in which, mostly foods such as coffee, milk, The fact that CFF in Vietnam increases investment in supporting distribution systems in regions in Vietnam is a good sign, showing that the quality of investment in product infrastructure has improved - Products provided through distribution systems of enterprises have increased in size and product structure - Methods and forms of developing the goods distribution system of enterprises in the southern provinces of the country with practical and relatively diverse conditions with the presence of natural persons (the force of traders carrying goods to be sold at border markets of Laos and Cambodia), as well as methods of consuming distribution services abroad (Vietnamese traders sell goods through markets and supermarkets in border economic zones) for border populations of Laos and Cambodia) At the same time, CFF in Vietnam has also developed a distribution system to neighboring countries in particular through the commercial presence (opening branches, building trade centers, supermarkets, and retail stores) Limitations The management level of Vietnamese retail distributors is still limited, the physical potential is still weak, and human resources are abundant but skills are not high, which makes the labor division system face many inadequacies in the market foreign school The challenge of transport infrastructure has not met the necessary needs, there are still significant disparities in infrastructure, including poor quality secondary roads, lack of railway connections, and lack of seaports and airport infrastructure, lack of logistics 28 facilities, and lack of energy in some countries disrupt the production process as well as the transportation of goods - The results achieved are still not commensurate with the number of product categories as well as the production potential of Vietnam The list of goods in the goods distribution system of Vietnamese enterprises to other countries is still modest In which, exports through foreign distribution systems account for main garments, seafood, processed foods, and some fresh fruits and vegetables, Besides, Most of them are just "Made in Vietnam" but also lack official Vietnamese brands Vietnam develops a distribution system to countries that mainly manufacture enterprises and in small quantities, this is a significant limitation for CFF Enterprises competing with CFF in Vietnam focus on developing distribution systems of goods to other countries in the form of wholesale or export through large retail distributors, investment in retail systems, and franchising commercial rights 29 CHAPTER 4: CONCLUSION AND RECOMMENDATIONS 4.1 Conclusions Faced with new opportunities and new challenges of the market opening mechanism, in the face of globalization with constant fluctuations in all aspects of the economy politics - culture - society, Vietnamese businesses need to define for themselves appropriate strategic development orientations, to be able to stand firm and grow stronger The completion of distribution channels is a mandatory requirement for every business to improve the efficiency of product consumption The current food market has great potential for growth due to increasing consumer demand This is a great opportunity for food distribution businesses in general as well as Classic Fine Food Vietnam in particular if they know how to seize it, and give more specific and effective directions and ways to implement it improve the position, and market share, and improve the shortcomings in the current state of the company If we continue to maintain the current situation, sales and profits may still increase, however, in the future, when competitors are getting stronger and stronger, not moving forward means falling behind, and business results Business may not be as expected To build a complete distribution channel system suitable to the financial situation, human resources, competitors, and target customers, Classic Fine Food Vietnam must strive and its best in developing and dominating the market The results of the questionnaire show service improvements and areas for improvement in the distribution system under Classic fine food Issues involved using positive problem-solving practices with performance staff feedback for individuals performing improved essential services To further strengthen the individualization of the enterprise on the distribution system, which has been evaluated with theories and hypotheses, the products distributed will be exactly to the customer's needs The priority of depending on the new e-commerce system to promote the brand to all known customers is urgent for the individuals under the company Furthermore, the improvement of the affiliated system for individuals with existing problems of satisfaction to extreme dissatisfaction, positive to negative about system development was evaluated by the questionnaire However, the factors affecting customers are still essential issues as a distribution system contains reputation and has a certain priority in customer policies Improving the distribution channel system is a necessary job for every business, not just Classic Fine 30 Food, this is a premise for development in the current technology era The effects it brings need to exploit in the most optimal way the benefits from it, applied to each environment from time to time and each product industry will help create long-term strengths The topic of perfecting the distribution channel system of Classic Fine Food company is a strategic and general topic, which contains content that has never been studied in previous studies Make research unique 4.2 Recommendations To effectively complete the unresolved limitations in the development of a distribution channel system, specific ways are needed The researcher, after the process of analysis and identification, has made suggestions to contribute to the development of the distribution channel for the development of the distribution channel system of Classic Fine Food company as follows: • An important issue in managing physical distribution operations is whether the organization should own the vehicles or lease them Select shipping methods that the organization can choose from when deciding how to ship products; private carriers, general carriers, and contract carriers The company owns and operates its transport fleet, it is called a private carrier This fleet is usually not available to any party other than the owner Conventional carriers are always ready to serve any party with a need to transport goods Regular service providers charge a published standard rate and make it available free of charge to anyone interested Contract carriers serve individual shippers on a medium to long-term basis Contracts usually last for a certain period with the option to renew the contract Calculate the cost of owning a vehicle When deciding whether an organization should purchase its vehicle or use conventional or contract transportation, the costs of ownership must be taken into account The two elements of transportation costs are fixed costs and operating costs Some costs are incurred regardless of whether the vehicle is moving or not These fixed costs include things like vehicle license taxes, insurance, and car loan interest Operating or running costs are a function of the distance the vehicle has traveled and include fuel, tires, and repair and maintenance costs A reasonable cost plan is also a way to help the transportation system improve significantly The second is to complete the selection of channel members 31 The company's selection of channel members has so far been mostly passive But for the company to get good channel members who satisfy the channel's conditions is not easy Therefore, the company needs to be more proactive in this work In Hanoi, the company has built a reputation But in the provincial market, customers not know about the company and the company itself does not have a deep understanding of the market Therefore, especially in the retail market, it is more and more demanding that the company selects channel members carefully to fulfill the company's distribution goals To this well, the company needs to conduct the work of recruiting the best members and eliminating channel members through the company's sales force This will be easier on the market in Hanoi and the northern provinces In addition to this source, the company must apply other information sources such as modern intermediaries, advertising at fairs, and independent consultants Next, the company must evaluate the ability of its members based on criteria such as well financial and credit conditions, size, ability to dominate the market, and not being an official representative of competitors company image, past success, desire to long-term cooperation with the company, convenient store location, stock condition, and products on sale In some cases, the company cannot easily get the members it wants Therefore, the company also has to use other special incentives such as: For some agents in the market area with high living standards The company can accept dealers to sell only high-end products and guarantee to supply the full volume of products required For some agencies with advertising needs, the company can help with part of the cost Or the advertising company, the company will introduce the address and achievements of these agents The third is to establish relationships between channel members: Establishing a good relationship between channel members is a very demanding job that requires a lot of effort Although the company uses a long channel with many channel members, it is natural that the relationship between channel members will not be close But due to the increasingly fierce competition in the market, the company must also find ways to increase the connection between channel members to ensure the best performance of the channel To this, the company needs to proceed gradually to establish a good relationship at the back of the channel The company also needs to 32 organize an annual customer conference to meet the agents to encourage and build a good relationship between the company and the agents, the company should have the policy to encourage good relationship building between the company's sales force and the agents he or she is in charge of by increasing contact and meetings between them The fourth is to complete the work of encouraging and motivating channel members: The encouragement of members is also very important because it will affect the cooperation between the company and the members To this job well, the company needs to strictly implement the regimes with channel members Doing this well is very important because it will create trust among the members of the company The next step is to diversify forms of rewards In addition to the form of reward that the company is using, the company needs to study bonuses for good implementation of the regulations set by the company such as: selling at the specified price, preserving goods well, and providing a lot of information valuable news Regular attention and encouragement of the members' good managers is also a necessary solution; Along with that, the company should periodically have training courses on management skills for important parts of the channel The company needs financial and material support from agents who have made contributions to the consumption of the company's products Therefore, the company needs to research the real needs of channel members to offer support activities and a more reasonable level of support To understand the needs of channel members, the company needs to pay attention to import and export and build relationships between the company and the members through the company's sales force The company needs to increase the visits of the salesperson in each region to the dealers In addition, to reward activities, the company does not have a specific punishment policy for contract violations such as overdue debts and dumping causing conflicts among members market price competition Therefore, the company also needs to set up resolute measures to handle members who violate the company's regulations The fifth is to perfect the management of canal flows First, about information flow, the company needs to focus on clearly defining what information needs to be exchanged between channel members, this information is not just information about daily distribution activities such as output, and sales, but also long-term information about the target market, about competitors such as how to market directions change, the special preferences of consumers for certain products 33 trademarks, fluctuations in market prices of goods and consumer reactions to the prices of the company's products, consumer reactions to new products and product prices new, competitor's market share, competitor's product price, competitor's product price, competitor's measures of competition Next is the solution for the current distribution and material supply line, the company's agent selection has not focused on inventory work, so dealers often take goods little by little to avoid having to store them except at certain times consumer goods such as the Tet holiday Therefore, the goods are mainly kept in the company's warehouse This will not benefit the company because the company needs to trick the selection of agents so that they can stock the company's products in a certain amount depending on their size to reduce the inventory burden warehouse for the company and also quickly respond to market demand Currently, the company makes door-to-door delivery for agents However, the company delivers by motorbike taxi or its service pickup truck, and it is not enough to deliver goods to agents, especially during the consumption season, moreover, transportation by motorbike taxi has low productivity, and large trucks at peak hours are banned in the inner city Therefore, the company needs to establish a relationship with several transport companies to ensure that the vehicle is available when the demand is high At the same time, the company can encourage dealers and large wholesalers to contact the vehicle themselves to transport deliver the goods to your vehicle and receive a discount Next is the promotion line, at present, the company has no promotion activities through the channel, that is, there is no combination of mutual support between channel members but mainly the companies to members in the channel channels The company needs to coordinate advertising with intermediaries such as sharing advertising costs, supporting advertising, and promotion costs for agents in need 34 REFERENCE Villas-Boas, J., 1998 Product Line Design for a Distribution Channel Marketing Science, [online] 17(2), pp.156-169 Available at: [Accessed May 1998] Wilkinson, I.F (1996) 'Distribution channel management: 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