An analyzing kinh do confectionery distribution network with some suggestions for improving effeciency

ABSTRACT Name: Bui Thi My Chi Institution:HCMC Degree: University of Bachelor of Business Administration Foreign Languages - Information Technology Location: Ho Chi Minh City, Vietnam Title of Research Paper: ANALYZING KINH DO CONFECTIONERY DISTRIBUTION NETWORK WITH SOME SUGGESTIONS IMPROVING FOR EFFICIENCY Scope of Study: Marketing is one of the most important factors that affect on success or failure of a business Hence, all businessmen should be focused on Marketing, especially Marketing mix - the set of tools of four Ps: Product, Price, Place and Promotion The scope of this research is focused on one of four Ps, which is Distribution channel (Place) which provides the businesses a vital link with their customers, and was ranked among the most decisive factors that lead customers to buying decision Specifically, the Do confectionery weaknesses, as development and paper identifies some factors that make Kinh distribution network has both of strengths and well as its establishment, organization and others Findings and Conclusions: This study shows that the Kinh Do Corporation has a stable and reasonable confectionery distribution system Nevertheless, it also exists some weakness in distribution operation and management So, the company should stipulate effective policy, practical and overall ways of implementation to achieve the expected results On the above basis, the paper will concentrate ' on analysis, evaluation on foundation and developing sta u~Atp~GKinh Do confectionery distribution system and ~r e~ilrnt1'D~ t~v.ip.g the efficiency of Kinh Do :::',:.J' -"'6.4' '11= f ectlOneJ::x'ulstn uno ne or.c~ " HUFLIT , \.* 'S-:.: ~fr)CH\~ * ' 11 • ACKNOWLEDGEMENT I would like to thank the professors of HUFLIT, especially of Department of International Business Administration, for providing me with knowledge, opportunities and facilities necessary for my writing I also take this opportunity to express my sincere thanks to Mr Truong Quang Tuan and Mr Nguyen Ngoc Huan who encourage, support me to complete the paper I would like to express my heartfelt gratitude to my advisor, Ms Nguyen Duc Hoai Anh, PhD., who gave me useful advices and worthy corrective actions to perform this paper She has spent precious time considering thoroughly my study with all her enthusiasm to give me helpful comments I am greatly indebted to The Research and Development Department staffs of The Kinh Do Corporation for supplying me with valuable information, data and experience supporting my study I want to say special thanks to my family and my friends for their love, constant support and encouragement Once again, I would like to give my thanks to all of you who contributed a lot to my study accomplishment I could not achieve this you Thank you very much for all!!! •• Bui Thi My Chi if there were non-of iii , l LIST OF ABBREVIATIONS - AFTA Asian Free Trade Agreement -ASM Area Supervise Manager - DFS Daily Food Service -EMC Executive Management - GFS Gift Food Service -MOT The Ministry of Trade -R&D The Research and Development Department - SBU Strategic Business Unit -VOF The Vietnam Opportunity Fund -WTO World Trade Organization Committee iv LIST OF FIGURES AND TABLES Page • Figure 1.1 The Four P' s of the Marketing Mix Figure 1.2 How Intermediaries Figure 2.1 Kinh Do Corporate Organization Structure 31 Figure 2.2 The Research and Development Department Structure 35 Figure 2.3 Some Variety Types of Kinh Do's Confectionery 39 Figure 2.4 Kinh Do's Product Flowchart 46 Figure 3.1 Kinh Do's Market Segment with Its Competitors (2001) 52 Figure 3.2 Some Types of Bibica's Chocolates for Valentine's 54 Figure 3.3 Bibica's Distribution System 54 Figure 3.4 Some Types ofDuc Phat's Gato Cakes 55 Figure 3.5 Some Types of Haiha-Kotobuki's 57 Table Ranking Modes of Transporta tion 18 Table 2.1 Kinh Do Bakery List 42 Table 2.2 Kinh Do Finance Support Forms 50 Reduce the Number of ChanneL Moon Cakes Day CONTENTS Page ABSTRACT ACKNOWLEDGEMENT 11 LIST OF ABBREVIA nONS III LIST OF TABLES iv INTRODUCTION Chapter 1: An Overview of Distribution Theories in Marketing • 1.IAn Introduction to Marketing 1.1.1 What Is Marketing? 1.1.2 Marketing Is Important to You 1.1.3 Developing the Marketing-mix 1.2 Highlights of the Distribution Channel 1.2.1 Definitions of the Distribution Channel 1.2.2 How Is the Distribution Channel Important? 1.2.3 Functions of the Distribution ChanneL 1.2.4 Channel Design: What Are the Channel Options? 1.2.5 Factors Affecting Channel Design 1.2.6 Distribution Channel Management 11 1.2.7 How to Obtain Cooperation and Avoid Conflict in Channel System 1.3 Physical Distribution 13 14 1.3.1 Nature of the Physical Distribution 14 1.3.2 Physical Distribution System 15 1.4 Wholesaling 18 1.4.1 Who Is Wholesaler? 18 1.4.2 Wholesaling Functions 18 1.4.3 Types of Wholesalers 19 1.5 Retailing ~ 21 1.5.1 Who Is Retailer? 21 1.5.2 Retailing Functions 21 1.5.3 Types of Retailers 22 Chapter 2: Introduction to Kinh Do Corporation and Highlights of Kinh Do Confectionery Distribution Network A- An Introduction to Kinh Do Corporation 24 2.1 History Establishment and Development of Kinh Do Corporation 2.2 Kinh Do Corporation: Function - Mission - Authority 27 2.2.1 Function 27 2.2.2 Mission 28 2.2.3 Authority 28 2.3 Corporate Structure and Management Apparatus 2.4 Strategies and Corporate Objectives 29 32 2.4.1 Strategies 32 2.4.2 Corporate Objectives 33 B - Highlights of Kinh Do Confectionery Distribution Network 2.5 Introduction to the Research and Development • 24 2.5.1 The Research and Development 34 Department 34 Department Structure 34 2.5.2 The Research and Development - Functions and Responsibilities 2.6 Introduction to Kinh Do Confectionery 2.6.1 Overview 36 37 37 2.6.2 Strategies and Objectives of Kinh Do Confectionery 39 2.7 Highlights of Kinh Do Confectionery Distribution Network 40 2.7.1 Current Kinh Do Confectionery Distribution Network 40 2.7.2 Kinh Do Confectionery Distribution Channel Organiza tion and Operation 41 2.7.3 Distribution Establishment Process 44 2.7.4 Role and Standards of Distribution 45 2.7.5 The Motivation Programs of Kinh Do Confectionery Channel Members Chapter 3: An Analysis for Kinh Do Confectionery 46 Distribution Network with Some Suggestions for Improving Efficiency 3.1 Kinh Do's Competitors with Their Distribution Network 50 3.1.1 Bibica 50 3.1.2 Duc Phat 53 3.1.3 Haiha-Kotobuki 54 3.2 SWOT Analyzing for Kinh Do Confectionery Distribution System , 56 3.2.1 Strengths 57 3.2.2 Weakness 58 3.2.3 Opportunities 59 3.2.4 Threats 60 3.3 Suggestion 61 CONCLUSION 64 REFERENCES v CHAPTER AN OVERVIEW ON DISTRIBUTION THEORY IN MARKETING • Understanding Marketing-mix • Understanding Role and Functions of Distribution • Understanding Factors Affected Channel Design • Understanding Channel Behavior and Channel Management • Understanding Nature of Physical Distribution and Its Process r • Understanding Wholesaling and Its Different Types • Understanding Retailing and Types of Retailing Analyzing Kinh Do Confectionery Distribution Network with Some Suggestions INTRODUCTION Distribution channels have plays a critical role in matching demand They provide to businesses supply and the vital link with customers In the situation in which the quality of products of competitors is almost the same, especially consumer goods, the success or failure of a business in tough competitive market mainly depends on not only the quality of product but also the ready availability and accessibility for consumers to purchase Although a great number of people want to study this issue, there are only a few related books and articles being circulated in our country Therefore, this study is necessary for those who want to acknowledge how to set up and to operate their own distribution channel The paper aims at providing some data and information derived from literature and practical activities of Kinh Do Corporation, some noticeable factors that have been considered and analyzing to have effects on distribution network, and some suggestions to make it more effective The first part of this paper is the basic theories of distribution network The second part is about Kinh Do Corporation and its distribution system information which were formally provided by Kinh Do Corporation Some was cited on newspapers and magazines The third part concerns analyzing Kinh Do confectionery distribution network and some suggestions The last part presents the brief result of the research and conclusion Student: Sui Thi My Chi Advisor: Ms Nguyen Duc Hoai Anh, PhD Chapter 1: An Overview on Distribution Theory in Marketing 1.1 An Introduction to Marketing 1.1.1 What Is Marketing? Marketing touches all of us every day of our lives We wake up and then enter the bathroom, brush our teeth with Colgate toothpaste, gargle with Listerine, and use other toiletries and appliances produced by manufacturers around the world Then we put on our Levi's jeans and Nike shoes We consume oranges grown in China and coffee imported from Brazil, read a newspaper made of Cambodian wood pulp, and tune in radio news coming from Australia, for example But, what does the term "marketing" American Marketing Association has developed a comprehensive mean? The definition: "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals ,,1 1.1.2 Marketing Is Important to You Marketing is important to every consumer2• Marketing affects almost every aspect of your daily life All the goods and services you buy, the stores where you shop, and the radio or TV programs paid for by advertising are there because of marketing Even your job resume is part of a marketing campaign to sell yourself to some employer! Not so with marketing, you will be a consumer dealing with marketing for the rest of your life I Harvard Manage Mentor, Marketing Essentials, Printable Version, p.3 E Jerome McCarthy and William D Perreault, Essentials of Marketing: A Global Managerial Approach, 6th ed ( E Jerome McCarthy and Associates Inc., 1994), p.3 Student: Sui Thi My Chi Advisor: PhD Nguyen Due Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 51 Bibica's Development In 1993: Beginning manufacturing candies on the machinery imported from Europe In 1994: Biscuits were manufactured on equipments and technology from Asia In 1995: Being the first company in Vietnam to produce starch syrup hydrolysis and ion exchange resin on the Taiwan synchronous equipment In 1996: Launching a wide range of cookies manufactured In 1997: Becoming the leading confectionery on APV manufacturer with BIbica brand name In 1998: Producing jelly on machinery from Australia On January 16, 2001: Bien Hoa Confectionery Corporation is established charter capital of VND 25 billion In the beginning of 2000, branches in Hanoi, Da Nang, Ho Chi Minh, Can Tho are set up to meet requirements In 2000, "Oan tu ti" Snack produced on equipment imported from Australia popular brand in the market On March, 2001 the charter capital was increased to VND 35 billion from the capital On July, 2001 company mobilized more capital from shareholders to increase capital up to VND 56 billion In late 2001, Layer Cake with "Hura" brand manufactured on production technology from Italy and Denmark In 2001, importing chocolate production line from Britain In 2001, first mooncakes were produced on equipment from Taiwan On February 19,2002, being listed on Vietnam stock market Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions On April, 2002, Bien Hoa Confectionery Factory NO.2 came 52 into operation to match demand in the North and the Central of the country In 2004, beginning manufacturing nutritional products Figure 3.2 Some Types ofBibica's Chocolates for Valentine's Day Bibica's Distribution Network Bien Hoa nationwide Confectionery distribution Corporation established system Its current distribution and controlled a system consists of over 80 official distributors and more than 35,000 retail stores Figure 3.3 Bibica's Distribution System Student: Sui Thi My Chi Advisor: PhD Nguyen Due Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions • 53 3.1.2 Due Phat (Duc Phat Private Enterprise) Duc Phat is a big competitor of Kinh Do Company in Ho Chi Minh City market with DFS products (fresh cakes) Its turnover is about VND300 million per year and now is holding II % of market shares Director : Mr Kao Sieu Luc Establish Date : 1990 Business Register : 750/GP Address : 275 Kinh Duong Vuong Street, An Lac Town, Binh Tan District, Ho CHi Minh City Tel: +848.7520 857 Fax: +848.7520 858 Email: ducphat62@hcm.vnn.vn Type of Ownership : Private Enterprise Product groups : Confectioneries Figure 3.4 Some Types of Due Phat's Gato Cakes This company has also established and managed a Bakery system called Due Phat Bakery There are 15 Duc Phat Bakeries in Hochiminh City Customer-oriented is major criterion of the company Duc Phat's Development In 1992: opened office, located at 231-233 Nguyen Trai street, district Student: Bui Thi My Chi Advisor PhD Nguyen Due Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 54 • In 1994 : opened two more offices, located at 296 Bach Dang street, Tan Binh district and 313 Le Quang Sung street, district In 1996: expanded factory, located at Le Dai Hanh street, district 11 In 1997 : established a enterprise, located at 71 Cao Thang street, district In 1998 : stretched out to the west and born foundation, located at 9191A Nguyen Trai, An Hoi ward, and Can Tho city In 1999 : established foundation (Duc Phat Enterprise), located at 286 Lac Long Quan street, ward 10, district 11 In 2001, built foundation (Duc Phat Enterprise), located at 180 Hai Ba Trung street, Da Kao ward, district At the same time company was established produce a factory biscuits with automatically and biscuits products modern chain in order to to supply for internal and ' external market Because the company products are types of DFS only and it generally serves citizens in Hochiminh distribution City, Duc Ph at does not possess system, But, it is one of the major competitors Company with Haiha - Confectionery of Kinh Do fresh 3.1.3 Haiha - Kotobuki (Haiha-Kotobuki a large cakes Joint venture Co., Ltd) Kotobuki is a Joint venture Company and Kotobuki company Group of Japan between Haiha With modern equipment, technology specializes in producing candy products with high quality such as: Snack, BimBim, cookies, and closely quality control system, the company chewing gums, bubble gums, fruit hard candies, chocolate, Especially, the company's fresh cake line with over one hundred products has been serving for birthday, conference, Student: Sui Thi My Chi wedding, and daily Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions demand of customers In addition, the company's exported to some countries such as Japan, 55 products have also been Singapore, China, Russia, Mongolia, The company's production capacity of 25,000 tons per year with over VND 400 million of turnover and holds 23.7% of market shares Main product groups Jelly Snack Cookies Chocolate Gato cake Lollipop Candy Chewing Gum Moon cake Isomalt Figure 3.5 Some Types of Haiha-Kotobuki's Moon Cakes The company has created a wide selling network all over the country It has about 250 agents, reaching which have been more and more opened to remote areas However, with the company is seeking to promote business cooperation with oversea distributors Now, the company has two branches in Ho Chi Minh city and in Hai Phong city - Head office: Address: 25 Truong Dinh, Hai Ba Trung district, Hanoi, Vietnam Tel: 84-4-8691764 Fax: 84-4-8632501 Student: Sui Thi My Chi Advisor: PhD Nguyen Due Hoai Anh Chapter 3: Analyzing KinhDo Confectionery 56 Distribution System and Suggestions - Ho Chi Minh branch: Address: No 13, block, Cho Lon Street, Ward 11, District - Ho Chi Minh City Tel: 08 8768117 - Fax: 08.8768117 - Hai Phong branch: Address: 50 Bien Bien Phu, Hong Bang District, Hai Phong City Tel: 031.747356 - Fax: 031.747356 Besides, Kinh Do must face with many competitors in industry, such as Huu Binh, Trang An, Quang Ngai, Wonderfarm, Although having some strong competitors in domestic market, but, with a well-known trade mark and a fully established distribution system, the pressures from competitors to Kinh Do company will likely decrease in future 3.2 SWOT Analyzing for Kinh Do Confectionery SWOT opportunities analysis and threats draws (SWOT) the critical Distribution strengths, from the strategic contains a wealth of data of differing importance System weaknesses, audit The audit and reliability SWOT analysis distils these data to show the critical items from the internal and external audit The number of items is small for forceful communications, and they show where a business should focus its attention I In present, Kinh Do Company possesses the best distribution system against others It covers almost of cities and provinces in Vietnam Kinh Do products are more and more popular I Phill ip Kotler & Gary Amstrong, Principle of Marketing, 2nd ed., (Prentice Hall Inc., 1999), p.94 Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 57 3.2.1 Strengths The company is well-known for many product names such as AFC, Solite, Scotti, Crundy, This is considered as advantage for Kinh Do when entering competition environment Kinh Do distribution system is stable and reasonable So, it is very comfortable for customers to get the company's products - Besides, team of workers and management board of Kinh Do They are qualified, professional who traded with local and foreign partners They also have loyalty of Asian people, dedicating to the work and the company The board of management usually finds out demand of workers, encourages creativity from workers, and accepts challenges and risks caused by partners and mechanism Kinh Do always is confident on its strategy and success brought by its employees Especially, the company's distributors are fond of the company and expert on confectionery market They are very experienced in business, strong and have good resources such as finance, physical facilities, As a result, products of the company are brought to the market by the effective and efficient way In the competitive manufacturer confectionery market, Kinh Do still holds its main role as a in domestic market with a high percentage of market shares (34.7%) Kinh Do has a flexible structure of prices Its prices are suited to the market Along with that, Kinh Do existed in Vietnamese market for a long time, providing its prestige by mode of trading, hi-quality and reasonable prices Last but not least, the company has been building good relationships with all channel members Student: Sui Thi My Chi Channel members coordinate closely with the Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 58 company in order to serve customers as good as possible and rarely break the company's regulations 3.2.2 Weaknesses Beside strong points, Kinh Do also has weaknesses as follows: To the company The hottest issue that staff level are not likeness Some of them are qualified and professional; to solve problems specialized others are not equipped with adequate elements by themselves training department quickly But, the company has not a to upgrade staffs level However, Kinh Do will correct this in near future Classes are not apportioned budget as well as power in order to be active in working In addition, apportioning target per month leads to staffs, distributors to cope with the company and have not long-term plans to achieve the company's requirements Performing programs on distribution channels is low effectiveness because markets are not researched carefully, concerned departments are not coordinated well To distributors Distributors Company still not invest specialized Some distributors who manage resources to Kinh Do large areas have a low level Their business minds are still wholesaling The ability of some of distributors (especially in Hochiminh city) is not enough for them to serve consumers or end-users and customers in the countryside while this area grows up more and more Distributors as well as their employees have not been trained In order to meet the company's requirements Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 59 To selling policy The customers' company has not a customers-oriented policy to keep loyalty as well as classified customers into groups of standard so , that it is easier for the company to serve its customers The company has not managed level, and followed customers' customers' turnover, inventory profit margin in order to manage them better Retailing is trending to wholesaling 3.2.3 Opportunities Due to strong points above, Kinh Do brand name is well-known more and more The company has an opportunity to grow fast and affirm its number one position in domestic market Kinh Do products have good quality and diversification in type This leads to there are many variety choice for its customers in buying Kinh Do products Therefore, customers are satisfied to the company's mode of trading and have a desire to buy Kinh Do products more and more Besides, Kinh Do's competitors have not the appropriate distribution networks This is considered as advantage for the company to face with fierce competition environment Especially, there are still a few of distribution channels such as contiguous, mountain areas in which have not been developed This brings a great opportunity for big confectionery company such as Kinh Do to enter these markets In present, DFS's potentiality is still exploited enough Because of DFS's hi-quality, Kinh Do has a change to lead this market segment with right strategy and policy for developing its fresh cakes Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 60 3.2.4 Threats To the company's outside Joining in AFTA, WTO of Vietnam may cause many confectionery multinational companies (especially GFS) to enter the market quickly So, it is difficult for Kinh Do to compete with them because of professional, finance, human resources, Small companies in the domestic market are seeking joint-venture opportunities with foreign companies so that they can be stronger (Hai Ha company is an example) Distribution channel members and the company's employees may be lured with attractive profit and salary levels by competitors The competition is more and more fierce in product form, distribution strategies, customers' satisfaction policies, To the company's inside Goods are not delivered with required quantities and on time This often occurs to distributors far from the company's location in season periods (Lunar New Year, Mid-autumn Festival) The company does not notice timely the product and delivery date information to distributors As a result, distributors not take the initiative of ordering goods and managing inventory Promotional programs not really support to sell goods Lateness in payment to distributors and retailers who joined III promotion programs affects their psychology negatively New product development is still limited while competitors introduce their new products daily Candies not still compete against competitors' • products such as Bibica , Haiha-Kotobuki, Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 3.3 Some Suggestions for Kinh Do Confectionery 61 Distribution System to Improve Efficiency We acknowledged successful branded that Kinh Do is one of the largest food companies in Vietnam The and most company has established and managed a broaden distribution network with more than 150 distributors and 40,000 retail outlets throughout the country, together with over 25 bakeries in Hochiminh City and Hanoi However, the distribution some weaknesses network of Kinh Do Corporation In order to be an effective and efficient still has distribution system, in my opinion, the company has to some things as following: Arranging more training classes for sales force in order to improve their skills The company can invite professional institutions of selling to train to improve the skills in their behavior, serving attitude or persuasive ability to customers department However, the company which has responsibility should set up a training for training Kinh Do sales staff The company will spend less money on setting up this department than hire institutions In addition, thanks to this department, sales force will be trained permanently and stably Building more motivating programs to motivate distributors such as stretching credit limit, supporting distributors' advertisings, Allocating consider target reasonably distributors' finance, to distributors physical facilities, The company has to or they own location before apportion target for them If the target is allocated unreasonably, the company will not evaluate exactly strong distributors' capabilities as well as makes selling difficult for weaker distributors, Controlling distribution channel operations deeply The company has to get information from distribution channel members timely, manage • Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery customers' Distribution System and Suggestions 62 turnover and inventory level, and settle problems between the company and distributors arise from distributing goods, for example Maintaining good relationships with current customers as well as update potential customers This is very important The customers will be always faithful to the company once they receive kindness from the company Researching markets thoroughly, coordinate between departments well so that the company can gain its objectives Applying motivating strategies to lure channel members to continue joining in distribution network of the company such as: o pay more money for display of Kinh Do products than competitors o suggest higher discount levels to distribution channel members than competitors o provide high quality, improved and specialized products to channel members o manage the product life cycle, ensure to provide new products and not to provide pure quality products to channel members o ensure to deliver goods to all channel members at the right place and at the right time o provide the best physical supports to channel members Besides, to improve the efficiency of Kinh Do confectionery distribution network, not only the company but also below forces should some things below: • Sales force should: improve skills through some training classes be more dynamic and effective Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Chapter 3: Analyzing KinhDo Confectionery Distribution System and Suggestions 63 assist well distributors in selling goods and solving their problems in • business inform the company quickly about distributors • Distributors should: be more professional In business, ensure to meet the company's requirements coordinate closely with the company in order to serve customers as good as possible provide information of customers and the market timely to the company join in performing distribution and promotion programs planned by the company • Distribution network should: be as efficient as possible, territory coverage For example, avoid overlapping responsibilities and distributors should sell products in areas stimulated by Kinh Do Company They cannot sell products in other areas because this will break the regulations the company imposed to them sharply make use of the marketing mix as consumers are more strict and sophisticated in their choice enhance physical distribution to ensure that Kinh Do confectionery products are always at consumers' reach It Student: Sui Thi My Chi Advisor: PhD Nguyen Duc Hoai Anh Analyzing Kinh Do Confectionery 64 Distribution Network with Some Suggestions • CONCLUSION Kinh Do is one of the largest and most successful branded food companies in Vietnam Kinh Do, which employs 4, I 00 people, posted 2004 revenue of over USD$ 46 million and net profit of USD$ 5.1 million It is looking to raise the figures to USD$55.4 million and USD$ million Kinh Do is now has a total equity capital of USD$ 13 million (VND$ 200 billion) This paper presents two matters about Kinh Do's Confectionery distribution network The first is an overview of Kinh Do's Confectionery Distribution network, and the second is some suggestions the company can apply to make it more effective and efficient r • We acknowledge channel And that is one of most important development retailed that Kinh Do has a widely confectionery distribution factors that make Kinh Do more and more With over 150 official distributors and 40,000 stores, Kinh Do is worthy to be number one of confectionery industrial in Vietnam However, the distribution some weaknesses network of Kinh Do Corporation still has They are offered in this study which Kinh Do company and others should consider if they want to build a well distribution channel for their own This study is performed by theories and practical information derived from books, Kinh Do Corporation and other sources Student: Sui Thi My Chi Advisor: Ms Nguyen Duc Hoai Anh, PhD v ' REFERENCES - Bearden, William and Thomas N Ingram and Raymond W Laforce Marketing Principles and Perspectives Richard D Irwin Inc., 1995 - Bovee, Courtland and Michael J Houston and John V Thill Marketing 2nd ed McGraw-Hill Inc., 1995 - Kotler, Phillip Marketing Insight from A to Z: 80 concepts the Manager Needs to Know USA: John Wiley & Sons Inc., 2003 - Kotler, Phillip and Gary Amstrong Principles of Marketing 2nd ed USA: Prentice Hall Inc., 1999 ,' - McCarthy, E Jerome and William D Perreault Essentials of Marketing 6th ed USA: E.Jerome McCarthy and Associates Inc., 1994 - Siegel, Carolyn Marketing: Foundations and Applications Jimes Mirror Higher Education Group Inc., 1996 - Websites: http://www.harvardmanagementor.com/demo/demo/market/print.htm http://www.kinhdofood.com/rdincv asp ?tgt=abol1tus asp http://www.kinhdofood.com/rdincv asp ?tgt=vn/news/shownews.asp&newsld =111 http://www.kinhdofood.com/files/retail http://www.bibica.com.vn/dsp detail10 la geL jpg introdl1ction.aspx?CategoryID= http://www.haiha-kotobuki.com.vn/english/maine.htm {O}