(Tiểu luận) thanh an food thanh an co , ltd

MARKETING CHANNEL SYSTEM ANALYSIS: .... MANUFACTURER Channel Functions Manufacturer’s investments in the functions Physical possession • Factory area up to 10,000 m2 • Delivery goods to

UNIVERSITY OF ECONOMICS AND FINANCE HCMC

FINAL REPORT Subject: Marketing Channel Management

Lecturer: Nguy n Th   Ngc Dung Members: Group 5

1 Đặng Ng c Mai Vy - 205040491 

2 Nìm Lê Thi n M - ệ ỹ 205049003

3 Đỗ Thu Tuy t- 205044500 ế

4 Lâm Y n Nhi - 205040112 ế Class: B03E

HCMC, Dec, 2022

TABLE OF CONTENTS

I INTRODUCTION 1

I.1 About the company 1

I.2 About the products: 1

II MARKETING CHANNEL SYSTEM ANALYSIS: 3

II.1 Current Marketing Channel of Oatta 3

II.2 End-user segmentation criteria: Service outputs 4

II.3 Channel analysis 6

II.3.1 Marketing functions in channel 6

II.3.2 Auditing channels Efficiency template 9

III GAP ANALYSIS - CHANNEL GAPS 10

III.1 Service gap analysis template 10

III.2 Cost gap analysis template 12

III.3 Make or buy 13

IV PROBLEM: 14

V SOLUTION: 15

V.1 Service gap: 15

V.2 Cost gap 16

VI References: 17

1

I INTRODUCTION

I.1 About the company

− Company: Thanh An Food - Thanh An Co., Ltd

− Tax code: 0100819096

− Established in: 1998

− Address: 562 Nguyen Van Cu, Gia Thuy Ward, Long Bien District, Hanoi, Vietnam

− Tel: (024) 36501239, 36501238

− Fax:(024) 3650123

− Factory: Lot 01-02 and Lot 02-06 Ninh Hiep Industrial Park, Gia Lam, Hanoi

− Email: thanhan@thanhancereal.com.vn

− Website: http://thanhanfood.com.vn/

− Specializing in manufacturing and supplying high quality nutritious cereals and agricultural products to consumers

I.2 About the products:

− Each product has different size and price such as: 45g cups and 300g, 400g, 600g & 800g bags; Oatta oatmeal is in range from: 20,000 to 300,000 VND /product; Oatta cereal is in range from: 14,000 to 200,000 VND/product

− Oatta has so many products but the most popular and well known

is the cereal and oatmeal product lines They also have lots of flavours for the customers to choose freely base on their demand and hobby: Oatta fruit oats, fruit almond cheese, fruit grape and banana and Oatta slim

− Products have a common strength: bring convenient and fast meals to the customers

− For the users, they can use for breakfast or any meal in a day based on the customer’s need

− Oatta products are made from original Oats, fruits and fresh milk ’s rich in essential vitamins and minerals to always be full of energy, rich in healthy vegetable protein, no colorants, no preservatives

− Most of the ingredients are selected by the manufacturer and are completely natural, without chemicals or preservatives

− Ingredients do not contain starch, so users can control their weight effectively

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3

II MARKETING CHANNEL SYSTEM ANALYSIS:

II.1 Current Marketing Channel of Oatta

II.2 End-user segmentation criteria: Service

outputs

BULK

BREAKING

SPATIAL CONVENIENC

E

WAITING TIME VARIETY

CUSTOMER SERVICE

INFORMATION SHARING

GYMER

Buy many

to use

before

workout

(L)

Don’t care about the distance

(L)

They can wait in a limited time (M)

Want to choose different flavour

(H)

Need good customer service to

be consulted which type

They want to know clearly about product’s ingredients, origin, (M)

website

5

is best for them (M)

HUSBAND

Buy many

for their

(pregnant)

wife to

suppleme

nt

nutrients

(L)

They can go far to buy the product but they will

be happier if it’s near their home/

workplace

(L)

They need to

be delivered immediat ely

(H)

Want to choose different flavour

(H)

Need good customer service to

be consulted which type

is best for them (H)

They don’t have much information about the product and need consulting and want to know the product origin (H)

MOTHER

Buy for

children in

case they

have

nothing to

eat (M)

They are not willing to go long way (H)

They can wait in a limited time (M)

Want to choose different flavour

(H)

Don’t need the best service (L)

Just want to know product’s fundamental information (L)

Target customer

1 Gym : er

− Include those who want to lose/gain weight, have a healthy diet

− Age: 20-35

− Don't have much time to cook

− Gender: male & female

− Occupation: office staff, freelancer,

− Income: above 7M/month

2 Husbands:

− Age: 25-45

− buy for their (pregnant) wife

− Occupation: Business man,

− Don't have much time but they are willing to go far

− Income: above 15M/month

3 Mother:

− Age: 30-45

− Buy for their children

− Occupation: office staff, house wife,…

− Care about child’s health

− Income: above 10M/month

II.3 Channel analysis

II.3.1 Marketing functions in channel

A MANUFACTURER

Channel Functions Manufacturer’s investments in the functions

Physical possession

• Factory area up to 10,000 m2

• Delivery goods to the wholesaler

• Pay for warehouse manager

• Pay for machines, factories, labor and materials,…

Ownership • Belong to Thanh An until the product is

delivered

Promotion • Offer promotion, discount campaigns

• Set product prices to retailers

Negotiation

• Drafting contract between manufacturer & wholesaler

• Hire a legal lawyer

Risking • Responsible if the product have fault from

the manufacturer

7

Financing • 100% support for initial capital [40M]

• Start collecting debt when it’s profitable

Payment & Ordering • Debt collection

• Produce base on retailer’s order

Information Sharing • Price policies, product’s information

B WHOLESALER

Channel Functions Wholesaler’s investments in the

functions Physical possession • Product storage area 450m2

• Pay for warehouse manager

Ownership • Belong to wholesaler after receiving from

manufacturer

Negotiation • Redistribute to retailer

Risking

• Be responsible of preserving products

• Be responsible if the product has a fault from the wholesaler

Financing • Pay debt when it’s profitable [25M]

• Maximum: 60 days

Payment & Ordering • Collect money from retailers

Information Sharing • Save customer’s data

C RETAILER

Channel Functions Retailer’s investments in the functions

Physical possession • In all same type products in the

supermarket, Oatta accounts for 30%

Ownership • Belong to retailer’s after receiving from

wholesaler

Negotiation • Negotiate with wholesalers to get the best

price

Promotion

• Implement many promotional campaigns

• Choose highly qualified staff to consult customers

Risking

• Be responsible of preserving products

• Be responsible if the product has a fault from the retailer

Financing • Pay debt when it’s profitable [15M]

• Maximum: 40 days

Ordering • Order through wholesaler, manufacturer

Payment

• Import goods from wholesaler and pay directly or can pay later

• To consumers, they can pay directly or via e-wallet

Information Sharing • Collect customer’s data

D END-USER

Channel Functions End-user’s investments in the functions

Physical possession • Go to the store and buy product

Ownership • Belong to customers after they buy product

9

Risking • Buy poor quality products because of

expiration date, fake goods

Payment • Pay in cash or via E-wallet

Ordering • Order online or buy directly at retail stores:

supermarkets, convenience stores,

Information Sharing • Sent their feedbacks about product, service

• Recognize fakes

II.3.2 Auditing channels Efficiency template

Efficiency

template

Important weight for

function

Proportional function Performance of Channel Member Cost Benefit

Potential

Final weight Manufacturer Wholesaler Retailer

End-user Total

Physical

Information

Normative

III GAP ANALYSIS - CHANNEL GAPS

III.1 Service gap analysis template

BULK

BREAKI

NG

SPATI

AL CONV ENIEN

CE

DELIVERY/

WAITING TIME

ASSOR TMENT VARIET

Y

CUSTOMER SERVICE

INFORMAT ION SHARING

MAJOR CHANN

EL FOR THIS SEGME

NT

GYME

R

M

(SS=SD)

SD: “I

buy a lot

and use

before

work out”

M (SS=S D)

SD: ”I can go far to buy the produc t”

M (SS=SD)

SD: ” I can wait in a limited period”

H (SS=SD )

SD: “I want many choice”

M (SS<SD)

SD: “I want good service

in consulting

on sale, presale and post sale

M (SS<SD)

SD: “ I need to know about product’s ingredients, date, usage, other customer’s feedbacks”

Manufa cturer Retailer

SUPP

LY

Oatta

sell from

1

Oatta’

s selling place

Oatta take 1-2 weeks

to deliver

Oatta supply lot of

Oatta's staff qualification

s are low

Oatta don’t supply enough

11

hasn’t

been widely distrib uted

flavour s

informatio n

HUSB

AN

H

(SS=SD)

SD: “I

buy

many for

my wife

to

supplem

ent

nutrients”

M (SS=S D)

SD: “I can go far but

I will

be happie

r if it’s near

my home/

workpl ace”

L (SS<SD)

SD: ”I want

to be shipped immediatel y”

H (SS=SD )

SD: “I want my wife to have a lot of choice”

L (SS<SD)

SD: “I want

to given advices super professionally about which types are the best for my wife in sale, resale, post sale”

L (SS<SD)

SD: “I need

to read other pregnant mother’s rating and review about product’s quality”

Manufa cturer Retailer

MOTH

ER

H

(SS=SD)

SD: “I

buy for

my

children

in case

they

have

nothing

to eat”

L (SS<S D)

SD:

“I’m not willing

to go

so far”

M (SS=SD)

SD: ” I can wait in a limited period”

H (SS=SD )

SD: “I want my child can freely opt”

H (SS=SD)

SD: “I just buy simply to use for breakfast and don’t need about service, I can choose myself”

H (SS=SD)

SD: “I just want to know the expiry”

Manufa cturer Retailer

III.2 Cost gap analysis template

Channel

(targeting

which

segments?)

Channel

Members

and

Functions

Performed

Environmental (E) /

Managerial (M) Bounds

Cost Gaps (Affecting which Function(s)?)

Planned Techniques for Closing Gaps

Do/Did Actions create other gaps? Oatta =>

husband

Manufacturer,

Retailer,

End-user

(M) OATTA don’t supply enough product’s information (M) Hire staff team are professional enough and don’t have consultation ability also

Information sharing Promotion

Training employees Provide necessary knowledge

to meet customer’s demand

No

Oatta =>

gymer

Manufacturer,

Retailer,

End-user

(M) OATTA don’t supply enough product’s information

(M) Hire staff team are professional enough and don’t have

Information sharing Promotion

Training consulting team

Provide fundamental and professional knowledge

No

13

consultation ability also Oatta =>

mother

Manufacturer,

Retailer,

End-user

(M) OATTA don’t supply enough product’s information

Information sharing Promotion

Training consulting team

Provide fundamental and professional knowledge

NO

III.3 Make or buy

Function Classical market

contracting

Quasi-vertical integration

Vertical integration

Selling

Exclusive sales agency Shopee OATTA

Producer sales force [Ha Noi]

Wholesale

distribution

3rd party [ Phu Nhuan District ]

Retail

distribution

3rd party [E-Mart Bach Hoa Xanh Mini Stop Family Mart]

IV PROBLEM:

COST/SERVICE

LEVEL

SERVICE GAP (SD>SS)

NO SERVICE GAP (SS=SD)

SERVICE GAP (SD<SS)

COST GAP

• INFORMATION

SHARING

• PROMOTION

• DELIVERY/

WAITING TIME

• INFORMATION SHARING

• SERVICE CUSTOMER

• SPACIAL CONVENIENCE

THE SERVICE IS TOO LOW AND THE COST IS TOO HIGH About service gap, customer have high demand on waiting time, they are not willing to wait for so long, and the service customer and information sharing are similar, they require to

be consulted and given advice in sale, resale and post sale and all the product’s important information About spacial

convenience, atta don’t have much retailers to sell the O

Oatta’s products, they just distribute their products in big

supermarkets and some convenience store in town About the cost, OATTA have hired inappropriate staffs

15

V SOLUTION:

V.1 Service gap:

A CUSTOMER SERVICE AND INFORMATION SHARING

❖ Put out the recruitment standard

Almost the worker in the convenience store haven’t been deeply trained, they are also lack of knowledge and customer consulting skill, because almost the recruitment requirements of all

convenience stores are quite simple, they don t ask too much, ’ and the staff just need to have enough time so that they can work

The solution is that Oatta should put out the high requirement, standard in the recruitment process, they have to go through the interview, have sales experience, ask them to experience the product, broaden the knowledge about the products such as: ingredients, which necessary nutrition that the product

supplement for the user before becoming OATTA’s staff And these all standards must be applied in recruitment for the whole retail system

B SPATIAL CONVENIEN CE

Find more retail market, expand the distribution channel like GT channel: grocery store or traditional market which near the is residential area and gather lots of people Therefore, Oatta can approach more potential customers, bring the convenience because there are so many markets in Ho Chi Minh City, moreover, customers also can have more places to choose

C DELIVERY/ WAITING TIME

Hire delivery service such as: Grab, TikiNOW: hire 30% slot in the total of order in 2 hours They will ship immediately to the customers

V.2 Cost gap

A PROMOTION

❖ Change the member’s function in the channel:

At present in the channel, manufacturer almost responsible for is promotion function, that means Manufacturer make all decisions

of promotion campaigns for both wholesaler and retailer

The strategy is that they should rebalance the functions for all the members in the channel to reduce cost in promotion of the manufacturer

The percentage of wholesaler will be 10%, they will offer the discount program for the retailers who import a large number of goods

The proportion of retail also change to 30%, they also can er make a decision of implementing their own discount campaigns such as: with each bill is above 500.000VND, customers will receive some gifts from the retailer

Finally, end-user will participate 10% to this function: when they introduce their friends or family to buy Oatta’s product, they will receive a coupon for the next order or they will be given a small gift Therefore, it can stimuli the customer’s buying behavior

=> Oatta will increase revenue, reduce cost so that they will increase the profit also

17

B INFORMATION SHARING

Change the product’ packaging, develop the technology They should create a QR CODE in the packaging, it will redirect to the OATTA’s website, which have all of information, origin, expiry, also reviews, comment and rate from the previous customers User can reference the source of information before making a purchase decision

VI References:

https://www.lazada.vn/oatta-123339401/

https://www.yellowpages.vn/lgs/1314528/thanh-an-food-cong- -ty tnhh-thanh-an.html/

https://thanhanfood.com.vn/