THE COMPANY OVERVIEW
Company Information
The Hong Hanh brand is a long-standing fish sauce of Bay Hong Hanh Service Trading Production Co., Ltd, which was founded in 1986 and has grown with the country's integration The firm uses fresh raw materials fished off the coast of Phu Quoc and has a closed, sophisticated manufacturing process.
About History
1986, established Bay Hong Hanh Service Trading Production Coconsec
1993, exported to Japan and Taiwma
1998, honored to be voted by consumers as High-Quality Vietnamese Goods for many consecutive years
2003, processing and manufacturing separate products for Mega Market supermarket
2007, completed HACCP and ISO 9001 integrated quality management system
2015, achieved Halal certification, fully meeting the most stringent requirements for food safety according to Islamic standards
2016, certificated by FDA (United States) that the product meets export standards for the US market
2017, one of the first businesses to receive the title of high-quality Vietnamese goods with integration standards
2019, change to new brand identity Modern, and luxurious but still retains typical traditional features.
THE PRODUCT OVERVIEW
Product
Hong Hanh sauce fish comes in five varieties:
Traditional fish sauce Cốt Nh : ỉ
Use: Specifically designed for scoring
C t Nh are the first droplets of traditional fish sauce produced after 12 - 16 ố ỉ months of fermentation in hardwood barrels with charcoal anchovies and fine salt
Cốt Nhĩ preserves the most authentic, rich, and delectable flavor of traditional Phu Quoc fish sauce
Traditional fish sauce Siêu Hạng:
Use: Specifically designed for dipping raw meat with seasoning
Figure 1 Traditional fish sauce C t Nh : ố ỉ
Siêu H ng fish sauce is made completely with Phu Quoc charcoal anchovies ạ and Ba Ria Vung Tau fine salt, and it contains all natural nutrients, making each meal not only seductively tasty but also healthy
Traditional fish sauce Cao Đạm:
Use: Specifically used for marinating and cooking
Cao Đạm fish sauce includes a high concentration of natural amino acids, which assist to excite taste receptors and give flavor to each meal
Figure 2 Traditional fish sauce Siêu H ng : ạ
Figure 3: Traditional fish sauce Cao Đạm
Uses: Specifically used for marinating and cooking
Each drop of Anchovy fish sauce includes a high concentration of natural amino acids, which excite the taste buds and give flavor to any meal
Ngư Vị anchovy fish sauce:
Use: Seasoning, braising, and cooking
Ngu Vi is the ideal alternative for making family dinners more tasty and appealing by offering moderate and economical costs while yet retaining the flavor of traditional Phu Quoc fish sauce
Figure 4: Traditional anchovy fish sauce
Figure 5: Ngư Vị anchovy fish sauce
Price
Traditional fish sauce Cốt Nhỉ 150ml: 60.000 VND
Traditional fish sauce Siêu Hạng 500ml: 70.000 VND
900ml: 120.500 VND 1,9 lít: 205.500 VND 4,9 lít: 365.000 VND
Traditional fish sauce Cao Đạm 900ml: 61.500 VND
1,9 lít: 120.000 VND 4,9 lít: 220.000 VND Traditional anchovy fish sauce 500ml: 72.000 VND
Ngư Vị anchovy fish sauce: 900ml: 36.000 VND
Combo Ti t Ki mế ệ Traditional fish sauce Cốt Nhỉ
Traditional fish sauce Siêu Hạng 500ml + C Đạm 1,9 lít
Two bottle of Traditional fish sauce Siêu H nạ 600ml
Place
Figure 6: Bay Hong Hanh channel
Traditional markets and grocery stores around the nation sell Hong Hanh fish sauce, with the largest markets being Ho Chi Minh City, Vung Tau, Binh Duong, Binh Phuoc, Dong Nai, Tay Ninh, and other regional provinces Southwest
Furthermore, Hong Hanh continues to grow and promote the Northern market Modern Trade:
Hong Hanh fish sauce is now exported to the following countries: Japan, Taiwan, the Philippines, Singapore, and European and North American nations (France, Canada)
Promotion
In 2019, Hong Hanh Company started a marketing program for end-users at Co.op Mart supermarket Most promotions are performed for Modern Trade and E-commerce channels, while General Trade is rarely used
On certain occasions, use promotions
3% discount on orders of 3,000,000 VND or more for shops (according to Binh Tan agent, 116/2 Le Dinh Can, Tan Tao, Binh Tan, Ho Chi Minh City).
COMPETITOR
Direct Competitor
THUYỀN XƯA THUẬN PHÁT HƯNG THỊNH
Vui trong b a ngon gữ ắn k t ế
Ngon thanh v cáị truyền th ng ố
Thơm ngon giàu chất đạm
HUNG THINH PHU QUOC LIMITED COMPANY
Indirect Competitor
Nam Ngư - Nước mắm không cặn
Tinh túy hương vị trăm năm
CURRENT CHANNEL ANALYSIS
→ PICK: GENERAL TRADE and E-COMMERCE
Figure 7: Bảy Hồng H nh Channel ạ
REASON: Focus on these two channels because there are many problems in the distribution channel system compared to the remaining channels, which affects the way the product reaches end-users in the market
→ Hypothesis about Hồng H nh Companyạ
Hong Hanh fish sauce has been produced since 1986, this is a long-standing brand and certified for food quality from the state.
Hong Hanh sauce fish's distribution channel has wide coverage in traditional channels and E-commerce This makes it easy for customers to find brand products at key markets in Ho Chi Minh City, as well as easily place orders at E-commerce platforms.
Hong Hanh sauce fish's distribution channel promotes exports compared to the domestic market.
Although the channel has wide coverage, brand awareness is poor, the brand does not run much advertising, mainly uses the word-of-mouth method.
Product discounts for agents and retailers are unstable, so the products are not sold for a long time in key markets.
There are few promotions for General Trade, but promotions for E-commerce channels often follow holidays.
END-USER ANALYSIS
End-user Segmentation
Bay Hong Hanh segments customers into 2 main groups based on purchasing behavior: Online buying trend and direct purchasing at the store (Modern women and Traditional women).
Since the pandemic two years ago, consumer behavior has changed quite a bit Customers use e-commerce platforms to shop more.
Specifically in the sauce industry, data from Statista shows that in 2020, 0.5% of revenue will come from online but by 2023 it will be 1.1%, 1.5% in 2024 and 2% in
2020 2025 This is an opportunity for Hong Hanh to reconsider investing in e- commerce channels to expand the market and compete with competitors However, more than 97% of revenue will still come from offline channels, so Hong Hanh should improve the quality of channel operations to meet a large amount of market demand and compete with competitors.
Main concern: They are people who care about their personal interests, like to enjoy a quality life, they believe in using reputable products with quality assurance on health safety
Figure 10: Statista about the rate of online shopping
Targeting End-users by Service Output
Descriptor Level demand Descriptor Level demand
“I often cook so I want to have fish sauc immediately when need it.”
"I think I don't care whether the buying location is near or fa whether there are man selling points or no because I buy through commerce sites."
“I want to experience more than 1 or different types of fish sauce.”
"I want to have man choices for the product want to buy, maybe won't find it or it will be out of stock when I go t buy it in person."
“I need more information abou many product line because I want to kno more products instea of just one type.”
"I want to clearly understand the necessa information about th store and product to ma a purchasing decisio because when buyin products on e-commerc
I am not sure tha everything is of quality."
“I need promotions and customer car programs because I a a long-time loyal wate user.”
"I need feedback from e commerce store whenever I have questio about products or qualit problems."
“My house is near the market so I don't nee to store a lot of fish sauce.”
"I think if you have ordered, you should ord more than one product be able to apply discou codes or use promotion policies from the store."
“I don't urgently need a bottle of fish sauc right away, because can buy it when I go t the market or at th grocery store, becau
I often pass by thes places."
"I chose to purchase o the e-commerce platfor and I accept that th delivery time to my hom may take longer tha expected."
CHANNEL ANALYSIS
Marketing function in General Trade
(1) The manufacturer has warehouses to store packaged fin products at two warehouses: Cu Chi (37 Street 142, Hamlet 8,
My Commune, Cu Chi District, Ho Chi Minh City), Phu Quoc (1 Nguyen Trung Truc, Quarter 8, Duong Dong, Phu Quoc)
(1) The fish sauce warehouse distributed from manufacture distributor is located at the warehouse in Cu Chi, Ho Chi Minh with an area of 5,000 m2
(1) Manufacturer will work and ship the goods to the distributor their own means or the shipping company will assist in transportation -> Manufacturer will bear the cost of storage delivery
(2) In each area in Ho Chi Minh City, distributors have their o warehouses so they can replace manufacturers and distribute th wholesalers
(3) Wholesalers store goods at their business locations
(3) Distributors provide and manage deliveries, distributors will b shipping costs and loading labor costs when delivering good wholesalers
(4) Retailers import goods through wholesalers, with large quan they will be delivered to your door and with small quantities they have to transport the goods themselves
(5) End-users will go to retail stores to purchase and pay directly
Ownership There are about 35 distributors in TP.HCM
(1) Manufacturer manages more than 1200 containers in stock
(1) Hàng hoá t nhà s n xu t trong quá trình v n chuyừ ả ấ ậ ển distributors thu c quy n s h u c a nhà s n xu ộ ề ở ữ ủ ả ất.
(2) Each distributor keeps about 280 boxes in stock.
(2) Distributors who own their warehouses will bear the cost storing, and losing goods in the warehouse
(2) Goods from distributors during transportation to wholesalers owned by distributors
(2) If goods are delivered to wholesalers if there is breakag damage to the product due to the manufacturer, the goods w returned to distributors => Returned goods are owned by distribu
(3) Goods in transit from wholesaler to retailer will be owned distributors.
(3) Goods, after being delivered to the wholesaler's store, wareh and after payment, will be owned by the wholesaler
(4) When stored and inventory goods expire, the retailer will be s responsible
Promotion (1) Manufacturer offers a 3% discount on wholesale invoices wholesalers and retailers over 3 million VND
(1) Manufacturer supports printing and construction of store n signs for retailers
(2) After establishing a goodwill relationship between the distrib and wholesalers, the distributor will give an additional 1% disco for wholesale invoices over 10 million VND to wholesalers
(2) Distributors have preferential policies for wholesalers, w wholesalers buy 6 boxes of 500ml super quality fish sauce, they get 1 box of the same line for free
(2) Distributors have preferential policies for wholesalers W wholesalers buy 1 box of 900ml super quality fish sauce, the price be reduced by 20,000 VND for each box purchased
(2) Distributors have a preferential policy for wholesalers W wholesalers buy 8 1 liter boxes of fish sauce, they will get 1 free of the same line
(3) Wholesalers offer promotions, discounts to retailers who goods in wholesale quantities and place regular orders
(5) The end user will be the direct recipient of incentives from brand through promotions for end users
Financing (1) The manufacturer bears the cost of shipping returns from distributor
(2) Distributors bear all costs of shipping and returning goods f wholesalers, provided that the wholesaler is within the distribu management area
(2) After establishing a goodwill relationship between the distrib and wholesalers, the distributor will give an additional 1% disco for wholesale invoices over 10 million VND to the wholesalers
(3)Wholesalers will have to pay immediately after distributors del the goods
(4) Retailers will have to pay immediately after purchasing the go at the wholesalers' place of sale or after the wholesalers delive goods
Negotiation (1) Manufacturer conducts sales negotiations through sales con with wholesalers
(1) Manufacturers negotiate reasonable discount policies thr distributor supply contracts
(1) The manufacturer's regional manager will negotiate discount and preferential policies with the wholesalers Successful negotia will hand over the order to the responsible distributors
(2) Distributors will perform calculations and negotiate to prov additional discount policies for wholesalers
(2) Distributors will let sales staff regularly contact them to off introduce new product lines, quote prices and negotiate to incentive programs for wholesalers
(3) Wholesalers will often let shippers take on the role of selle offer and remind retailers to import more products
(4) Retailers can bid to reduce the price of orders when purch through distributors
Risk (1) Manufacturers bear the cost of damage and insurance of g when transported to distributors
(2) Distributors bear the cost of damage and insurance of the g when transporting to wholesalers
(3) Before delivering the goods to the retailer, if there is any dam or breakage, the distributor will bear that cost
(3) If the goods delivered to wholesalers are broken or damage manufacturers, the goods will be returned to distributors; distributor will send the carrier to pick up the goods and return a complete product
(4) Retailers does not ensure quality in product preservation lea to damage, retailers will bear that cost
(5) During use, if a breakage occurs or storage requirements a met leading to damage, the consumer must be responsible
Ordering (1) The manufacturer will transact and receive orders thro contracts with distributors
(1)Trade area manager, taking orders and coordinating deliveri the wholesaler The manufacturer's regional manager will w directly with the wholesaler They will have to receive order quant from wholesalers and bring the order quantities back to distrib for distribution to wholesalers
(1)Distributor employees go directly to retailers, from where reta place orders directly with distributors
(2) Distributors will place orders via phone and Zalo messages the manufacturer's regional manager to place orders
(3) Wholesalers will place orders via phone and Zalo messages the regional manager to place orders
(4) Retailers go to wholesalers to place orders or buy prod themselves and transport them to the place of sale
(5) End users will go directly to retail stores to buy
Payment (1)(2)(3)(4) Cash flow will be paid immediately in cash from Reta paying Wholesaler, Wholesaler paying Distributor, Distributor pay Manufacturer
(1) In each area in Ho Chi Minh City, the manufacturer will arra an area manager to quote prices and product informatio distributors and wholesalers
(2) Distributors will let sales staff regularly contact them to of products, introduce new product lines, quote prices and negotia offer incentive programs for wholesalers
(4) Consulting customers directly at retail (grocery stores)
(5) End-users will be the one who directly uses the product and their own views, opinions, and assessments about the product. there, maybe they will introduce the product to their relatives family to use together
Table 4: Function in General Trade
Marketing function in E- commerce
(1) The manufacturer has storage for finished packaged produ two warehouses:
Cu Chi: 37 Street 142, Hamlet 8, Binh My Commune, Cu Chi Dist City HCM
Phu Quoc: 132 Nguyen Trung Truc, Quarter 8, Duong Dong To Phu Quoc
Fish sauce distributed on online platforms located at warehous
Cu Chi, Ho Chi Minh City is transported to the warehouse of th commerce site and ownership remains with the manufacturer
(3) Fish sauce distributed on online platforms located at wareho in Cu Chi, Ho Chi Minh City is transported to the warehouse of th commerce site and ownership remains with the manufacturer
(4) End-user receives the product and pays directly and bears sh costs
Ownership (1) The manufacturer is responsible for the costs of sto preservation, and loss of goods in the warehouse
(1) Manufacturer's responsibility: There is a problem with the pro such as wrong delivery, defective product, expired product, etc manufacturer is responsible for returning a new, standard produ the customer
(3) Responsibility of the shipping unit: The shipping unit responsible for protecting the product and delivering it as expect the end-user
(3) When a problem occurs with the product, the shipping unit m contact the manufacturer to implement return and pro compensation policies for customers
Promotion (1) Product discount program in effective distribution channels example Lotter, Satra, Emart, Aeon Mall
(1) Advertise products on Social Media
(1) Instructions for cooking recipes with pink almond fish sauce
(1) Recruit/Train/send employees to retail agents in the General T channel to introduce products
(2) Post articles about product promotions
(3) There are discount programs on special days such as Janu February 2, January 15, holidays
(4) Be a direct recipient of promotional programs from stores an commerce campaigns
Financing (1) Manufacturer bears the cost of shipping returned goods from customer
(1) Manufacturer's bear the costs of transportation to E-comme warehouse, storage, and undeliverable goods
(4) Customers will have to bear delivery costs
Negotiation (3) E-commerce offers costs to manufacturers including: Fixed c payment costs, accumulated voucher fees, shipping fees, FBL
Compensation fee, Marketing advertising fee Costs range from 7% depending on the type of cost and different e-comm platforms
Risk (1) The manufacturer will have to bear the cost of damage insurance of goods when transported to the warehouse of t commerce platform
(4) After accepting the delivered order, the customer is respon for any problems such as spillage, breakage, unsuitable taste, e
Ordering (1) The manufacturer will receive the order and transport the goo the shipping unit
(3) Customers use e-commerce platforms to purchase or place on the website
(4) End-users directly place orders on e-commerce platforms
Payment (1) The manufacturer is paid by E-Commerce after the ord confirmed to be delivered
(2), (3) Diverse payment methods: e-wallet, cash, card or int banking Momo/ ZaloPay/ VnPay
(1) Brands provide clear product information on packaging lab websites, write articles and post videos on YouTube
(2) Fanpage Post cooking clips so customers can understand about how to use it and its uses in food preparation
(2) Fanpage posts product information and product introductions
(3) E-commerce sites support the creation of functions that provide information to customers about product names, descrip brand information and publicly share product information thro other customers' reviews
(4) They will be the ones to directly use the product and give product From there, maybe they will introduce to relatives and fa about the product to use together
THE EFFICIENCY OF MARKETING CHANNEL
General Trade Channel
Importance Weights for Functions Proportional Function
Final weightManufacturer Distributors WholesalersRetailersEnd- user Total
Importance Weights for Functions Proportional Function
Performance of Channel Member Cost
Medium, Low) Final weightManufacturerFanpageE-commerce
GAP ANALYSIS
Service gap analysis
Major Channel for this Segment Manufacture to end-user
H (SS>SD) M (SSSD) H (SS Proposed additional investment: recruiting personnel, training personnel, setting KPIs.
MAKE - OR BUY
Currently, H ng H nh sauce fish is operating in two forms: ồ ạ
“Make”: bring products from the factory to the end-users through platforms: Website, Fanpage, Sendo, Lazada, Shopee and Tiki
“Buy”: cooperation with the key market region in Ho Chi Minh city (Cho Lon, Wholesale Market, Ba Chieu Market and Cay Que Market), grocery store
DECIDE WHY TO CONTINUE DEVELOPING “MAKE”:
The trend of buying online and buying directly from manufacturers is currently one of the current shopping trends So taking advantage of E-commerce channels is an effective strategy to bring in revenue and increase product recognition Reduce costs: Space costs, outdoor advertising costs, etc
Helps products reach many customer files on websites, Fanpage, Sendo, Lazada, Shopee and Tiki
Understand customer shopping behavior better so you can come up with discount strategies to reach customers
DECIDE WHY TO KEEP GROWING “BUY”:
Helps expand product distribution network locally, increasing product coverage The product belongs to FMCG products so it is necessary to enter the mass market to be able to consume a large amount of goods.
DESIGN MARKETING CHANNEL OF HỒNG HẠNH FISH
Design Marketing Channel
After researching the total distribution channels of Bay Hong Hanh in general, the General Trade channel and the E-commerce channel in particular, the final conclusion was not to change the channel structure, only to make system changes Channel operating process to best meet the buying needs of end-users and the interests of channel members.
Firstly, currently GT channel members are performing their functions correctly and have a high ability to expand the distribution system, however during the process of operating the channel there are still many problems coming from information sharing, ordering, makes the output of goods sold not too high and not diverse, making it difficult to compete with big competitors.
Second, in the E-commerce channel under the management of Hong Hanh (manufacturer), the sales volume is not high even though the channel has been built and operated for 4 years, and the customer feedback process is not comprehensive , there are no outstanding promotions to promote sales.
Building a human resources system to operate official stores
Actively respond to customers through messages on e-commerce platforms. Regularly respond publicly to customer reviews and provide solutions if customers are dissatisfied and encounter problems.
Provide complete and professional brand information.
Effectively use Audience Insight analysis tools to understand what topics customers are most interested in.
Build fanpage content that is close to customers and is also one of the topics that customers are interested in (Brand, product, daily meal, quick cooking, ).
Schedule regular and periodic media posts to keep interactions with customers.
Carrying out sales skills training, building and disseminating sales systems for sales staff:
Regularly proactively contact to inquire about sales status, to promote more sales, offer offers and continuously update the latest price lists and promotions for retailers.
Delegate responsibility for sales training from sales staff to retailers about product types and uses, set KPIs along with incentive programs and discounts for retailers with outstanding sales.
Sales staff always proactively ask and receive information about customer feedback and product needs that traditional women require.
Build and maintain the official website for Bay Hong Hanh (Average cost about 45 million/year for all fees).
Create a chat frame, apply AI boxchat technology on the website so customers can interact with AI to immediately resolve customer questions and problems If the problem is more complicated, it will be forwarded directly to staff advise.
Develop SEO-standard website content on topics such as: Brand story, official product information, product usage instructions for daily dishes with the Purpose: Creating trust news from customers.
Highly rated by Google on search engines on related topics (Fish sauce, seasoning, health, traditional flavors, ).
Build a transportation system to easily transact with wholesale and retail agents, avoiding the situation where participants in the distribution channel do not know how to order
Ensure information is fully disclosed so that participants in the distribution channel clearly understand the process
Promote sales for these stores → attract new customers and approach potential customers.
Marketing Tools support 41 CONCLUSION
Working with a professional Agency to help the brand H ng H nh sauce fish is ồ ạ primarily a sauce fish grower, thus marketing, branding, and other specializations are still restricted As a result, collaboration with other agencies is intended to highlight the strengths of each topic Marketing, communication, and advertising agencies will conduct suitable marketing, communication, and advertising campaigns to promote the brand and make customers aware of the presence of H ng H nh sauce fish ồ ạ
DMS NextX distribution channel system management software
Currently, Hong Hanh fish sauce has a wide distribution channel not only domestically but also internationally However, the activities among members are not consistent and effective, from manufacturers to retailers For work to go smoothly and effectively, there needs to be a unified connection between departments at the point of sale so that management can easily monitor work progress and we recommend using NextX management software.
NextX is the most comprehensive CRM software platform for customer care and management today Applying software to Hong Hanh fish sauce's distribution channel to manage all channel activities to control the members' operations The NextX DMS subsystem helps manage distribution channels, locate market staff, manage distributors, wholesale and manage points of sale of NextX CRM From there, businesses can grasp channel information and quickly find solutions for members that are not performing well.
NextX customer care and management CRM software has helped business departments save time and increase work accuracy Support departments and units to connect with each other more effectively, completely consistent with the company's overall development goals such as:
Better supply chain management between points of sale and wholesalers and with resellers
Manage detailed product categories with smart filters: by code, by batch, product name…
Place orders right on the system
Automatically manage order forms, sales notes, and return notes to help sales operations run more smoothly
Better inventory control, helping to reduce inventory
In conclusion, after researching Bay Hong Hanh's distribution process, it is clear that the issues relating to sales volume and satisfying client purchasing demands emerge from the distribution system's functioning Particularly, GT and e-commerce platforms The recommended strategy is to rebuild the operating system for these two channels after employing observation methods through actual market surveys and applying theory and meet members' joint interests in distribution The suggested goals include using technology and sales people to establish a brand, customer connections, and ties with downstream members.