Final report topic research on distribution channels of one one joint stock company

Over 16 years of establishment and development, One-One Vietnam has become one of the strong food businesses in the Vietnamese market with industries such as rice cakes, agricultural pro

HCM CITY UNIVERSITY OF ECONOMICS AND FINANCE

KHOA MARKETING

FINAL REPORT TOPIC: RESEARCH ON DISTRIBUTION CHANNELS OF ONE ONE

JOINT STOCK COMPANY

Subject: Distribution Channel Management

Lecturer: Luu Thanh Thuy

Grade: B06E

Presentation: Group 1

MEMBERS

 To complete this essay, I would like to sincerely thank the School Board, faculties,

departments and teachers of the University of Economics and Finance who have

wholeheartedly helped and facilitated me in the learning process In particular, I would

like to express my deep gratitude to Ms Luu Thanh Thuy who directly taught and

guided me to make this essay with all enthusiasm and deep interest.

 In the process of writing this essay, due to limited understanding, it is difficult to avoid

shortcomings I look forward to receiving your comments to make the essay more and

more complete Thank you very much!

ACKNOWLEDGMENTS

7 MEMBER’S TASK LIST & EVALUATION

5 RECOMMENDATION/ SUGGESTION TO DEVELOP/ IMPROVE THE CHANEL STRATEGY

1 COMPANY INTRODUCTION

COMPANY

INTRODUCTION

1

1 INTRODUCTION

One-One Vietnam Joint Stock Company was established in 2007 Over 16 years of establishment and development, One-One Vietnam has become one of the strong food businesses in the Vietnamese market with industries such as rice cakes, agricultural products,

Business name One-One Central Joint Stock Company

International names CENTRAL ONE-ONE JOINT STOCK COMPANY

Initials CENTRAL ONE-ONE., JSC

Headquarters Kinh Te Chan May- Lang Co, Loc Tien, Phu Loc District, Thua Thien Hue Province, Việt Nam

Telephone number (84-254) 3684674 – fax: (84-254) 3684674

Email kinhdoanh@banhgaooneone.com

Website https://banhgaooneone.com

One-One Joint Stock Company will create

and serve all Vietnamese consumers

products to meet your needs and address

your health, food hygiene and financial

concerns

Meeting the maximum satisfaction of

the increasing needs of consumers is the

goal for the sustainable development of

the company

“Healthy food, good body”

With long experience in the rice cake industry, combining the most advanced technology of Japan where the main origin

of the rice cake industry is Origin of the main raw materials from Vietnamese nature, enthusiasm and creativity, skill experience, desire to work and serve of the company's staff Committed to quality assurance, consumer health protection and environmental protection

Government Merits

Vietnam Standards Committee

Hanoi Party Committee

High quality Vietnamese goods

ISO 9001-2000 Certificate

The rice cake brand chosen by consumers to buy No 1 in Vietnam

In 2013, One-One was proud of the strategic cooperation between Japan's No 1 rice cake company -

Kamede Seika Co., LTD and Thien Ha Joint Stock Company (manufacturing, distributing and owning

One-One rice cake brand)

The Golden Rule:

Commitment to consumer health is the strong development of the company Fragrant rice is selected from the plains of Vietnam

Strict processing process:

+ No colorants, so the cake is usually whiter than other cakes on the market, keeping the essence of rice + No frying through oil, no cholesterol, helping to prevent pathogens for users

+ No preservatives, helping to preserve fresh taste and natural freshness from rice grains

Field of activity

Domestic market:

+ One-One rice cake products can be seen anywhere from small grocery stores to convenience stores,

mini supermarkets or even large shopping centers with One-One Company products.

+ Rice cake products have been present at over 85,000 points of sale nationwide There are some big

brands such as Vinmart, Vin+, Bach Hoa Xanh supermarket chain, Co.op mart, BigC, Aeon Mall ,

Oversea markets:

+ In addition to supplying rice cake products mainly in the domestic market, One-One is also exported

to serve the international market.

+ By 2020, One-One rice cake products have been exported to 12 countries such as Korea, China, New

Zealand, Hong Kong, Taiwan, US, Janpan, Singapore, Bahrain, Macau, Guam, Bhutan,

The company has long experience in rice cake processing

industry

The company uses Japan's most advanced technology

Origin of main raw materials from nature, quality assurance

and protection of consumers' health

Extensive product distribution system

It is possible to expand export markets

to countries in Southeast Asia

Compete with other food businesses

The rice cake market in Vietnam

is competitiveThe product promotion strategy is weak

Not yet diversified products

Table 1: Competitors

PRODUCTS/ SERVICES

2

One One rice cake

with grilled octopus

24.000đ (104g)

One One rice cake flavored with corn cheese

35.000đ (118g)

One One Corn Rice Cake23.500đ ( 104g)

One One rice cake flavored with grilled shrimp30.500đ (150g)

One One Rice Cake Sweet Taste23.500đ ( 230g)

PRODUCTS

1 Spatial convenience

One One rice cakes appear in almost all areas from direct purchases to online

purchase

GT: One One rice cakes are always available in grocery stores, market stalls.

MT: Oneone rice cakes are always available at convenience stores such as CK,

GS25, FamilyMart, And in big supermarkets like BigC, LotteMart,

Co.opMart,

A E-Commerce: On e-commerce platforms such as Shopee, Lazada, Tiktok,

customers can easily find oneone rice cakes with many different flavors such

as traditional, cheese, grilled beef ,

Figure 1: One One product on the market

2 Waiting time

The company distributes products nationwide, so it is easy to see that the products are available in all parts of Vietnam, so customers are also easy to access and buy goods and do not need to wait too long and products can be delivered immediately if buying directly at GT channels, MT

3 Product variety and assortment About variety: One one rice cake with a variety of designs, packaging as well as flavors of products and a choice of sizes for customers.

4 Information sharing One One Corporation has its own website about the company and has a separate section to introduce the company and their products fully and

publicly

5 Customer service

They provide customers with return policies, customer help centers, buying guides, delivery, with the desire to bring

customers the best experience (provided by the company through the official website of One One

Especially, One One has a delivery policy:

Table 2: Delivery fee service table

There is also SHIP 2H only applicable to orders in HCM 1 and HCM 2 areas of 25,000đ and 30,000đ respectively

Orders weighing more than 10kg will have additional fees, One One will notify the cost again when the customer confirms the order( > 10.000đ)

Delivery costs in other regions:

Table 3: Delivery fee service table

CUSTOMER

SEGMENTATION

3

A Demographics

Ages 3-70 years old

Gender: All genders

Occupation: Homemaker, student, student, bartender, baker, Kols, Kocs, worker,

Education level: Kindergarten, primary school, high school, University/College, postgraduate, working and working

The main focus is on housewives, youth, children, the elderly and low- and high-income families

B Income level:

Financial autonomy: Low – middle – decent income

Some customer groups depend on families such as children, students,

C Psychology:

Lifestyle: Taking care of health

Attitude: Positive, caring about your family and health, loving natural products, caring about price, organic

products,

For children (1-14 years old): Need some food to provide nutrition for study, sports activities, still depend on

parents but young children can affect which products the family should buy

For Adults: Need high-quality, reasonably priced products that provide nutrition for their children They often

care about the quality and origin of the product, often focusing more on organic product lines (less price

sensitive)

D Geography:

Vietnamese people and foreigners living in Vietnam

Market segments are divided based on population density and product consumption It can be divided into two main

segments: rural and urban

Based on population density and product consumption, "One" scatters most of urban and rural areas

E Customer behavior:

Needs: daily use, holiday gifts,

Based on the health status of target customers such as obese people, malnourished people, normal people, older people,

Customers are often interested in organic products

Opportunity occasions: buy for consumption, new product release events, discount events,

Usage: daily/multiple users, frequent users, moderate or few users

Loyalty: repeat users, potential users, first-time users,

CURENT CHANEL

STRATEGIES

4

A One One's distribution channel strategy:

Distribution channel diagram

ONE ONE CENTRAL JOINT

STOCK COMPANY

DISTRIBUTORS RETAILERS CONSUMERS

SUPERMARKET CONSUMERSEXPORT

Figure 1: Model of One One distribution channel

Direct distribution channel: through the stores of One One rice cakes (can buy directly at One One Company's

office at the address: 319/D4 Ly Thuong Kiet, Ward 15, District 11, Ho Chi Minh City) or website

(banhgaooneone.com), customers can buy directly here This channel is mainly used to introduce products as well

as necessary information to customers

Figure 2: One One's main website

Figure 3: Ggmap location

One-level channel: through supermarket systems, aimed at audiences with modern shopping habits Up to now,

One.One's products have been present in 85,000 points of sale including large supermarkets nationwide, such as:

Figure 2: One One's retail partners

Two-level channel: including distributors

and retailers bringing products to traditional markets One.One's products have been present in 85,000 points of sale including large supermarkets nationwide, as well as in groceries and market stalls, across the country

Export channels: Export is also an

important channel, now the company's products have been exported to 12 different countries such as Korea, China, New Zealand, Hong Kong, Taiwan, USA, Japan, Singapore, Bahrain, Macau, Guam, Bhutan

Figure 4: One One's sales area

"One's distribution objectives: is to cover the market, so it is necessary to build a channel system with a width

large enough to accomplish that goal The company wants its products to be present at all confectionery stalls,

groceries on every corner Therefore, the expansion of channel width in the retailer section is unrestricted and

encouragement of expansion

=> Because One&One's products belong to the fast-moving, popular, low-cost consumer goods industry, the

business applies a wide distribution method Businesses will sell products through countless commercial

intermediaries to try to get products into the hands of as many consumers as possible such as supermarkets, retail

stores, grocery stores,

Banhgaooneone.com Hoang Gia An Trading Service Joint Stock Company, the official distributor of one

one rice cakes

Distribution channel description

a Material distribution flow:

b Manufacture -> Transport enterprises -> Wholesalers -> Wholesalers -> Consumer

c + Transportation: use the manufacturer's and distributor's fleet of vehicles.

d + Storage:

For normal items, distributors must have a stock of at least 50% of the previous month's sales

Order Line:

Rice cakes one one : order 2 days in advance

Pros: Low waiting time

The company's inventory is low

o Disadvantages: If retailers and distributors order large quantities at the same time, products at the company may

not be enough to flexibly meet unexpected orders immediately

Payment flows

Manufacture <- Wholesaler <- Retailer < Consumer (payment)

For distributors, transfer money in advance, or deliver and get immediately in cash

Between distributors and retailers, depending on the relationship, there will be different payment methods

Advantages: No bad debt phenomenon, high cash flow turnover

o Disadvantages: Due to the delivery mechanism, it does not create incentives for distributors In particular, there are

special cases that need to be flexible but not yet flexible

o Advantages: smooth flow of information based on the mechanism of having 3 sources of information

above In addition, we must mention a rather important source of information, which is the source of

information through the company's market staff Through this team, information about the market,

competitors, will be brought back to the company in the most accurate and up-to-date way

Information Flow:

Manufacture -> Wholesaler -> Retailer -Consumer -> (info, pricing of product, )

Manufacture <- Wholesaler <- Retailer <- Consumer (feedback from NTD about product, )

+ Includes 3 information parts:

From companies, to distributors, to retailers, to consumers and vice versa.

From guests directly to the company via hotline.

From customers, to retailers, to the company through its sales staff.

Ownership transfer flow

Manufacture -> Wholesaler -> Retailer - Consumer > (ownership)

Downstream from the Manufacture, through intermediaries, to the consumer moves in parallel the

material distribution stream of the channel

o Demonstrates the transfer of ownership, and at the same time responsibility and authority for the

product

Risk sharing line:

Through warehousing, the distributor has shared some of the risk with the company On the other

hand, the company also accepts the return of goods in cases such as: distributors with vegetarian

ghosts, unforeseen natural disasters

Pros: Risk division makes channel members better linked together

o Disadvantages: The division is not specific, detailed and still divided at a low level

Promotion line

Manufacture -> Advertising agency -> Wholesaler -> Retailer -> Consumer

Downstream from Manufacture to consumer Demonstrate support in Manufacture's product communication

promotion activities to all channel members

Made by the company, bears all costs and receives the help of distributors

o Activities that promote sales among channel members These contracts are also aimed at the final consumer

Negotiation line

The mutual exchange between the buyer and seller involves the ownership of the product As well as members in

the negotiation channel on the assignment of responsibilities and benefits, of each member

Pros: Clearly divide roles

o Disadvantages: Often the active part belongs to the company, the distributor's negotiating ability is not high

B Wholesale strategy:

Intermediate distribution strategy: for wholesalers, One focuses on long-term cooperation and trust, actively supports

with dealer systems in 64 provinces and cities, with more than 85000 points of sale

One One specially arranges personnel to check and manage these intermediate points of sale in the strictest and most

optimal way

Because this is the most important thing in distributing goods, ensuring product quality as well as the brand image of the company