(Tiểu luận) final reportmarketing channel managementaquafina

CHAPTER 1: EXCUTIVE SUMMARYAquafina is a leading brand in the bottled water industry and has adopted several marketing channel strategies to reach its target audience.. Aquafina uses a p

BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH TP HỒ CHÍ MINH

We would like to send our deepest thanks to Ms Nguyen Thi Ngoc Dung for her profound and well-structured lectures Your knowledge and expertise have truly enlightened and expanded our understanding of this subject of Distribution Channel Management This topic has proven invaluable in helping us analyze distribution channels, grasping the complexities of developing effective channel strategies Your guidance will certainly shape our future decisions and contribute to our professional development We feel more confident and well equipped to tackle the challenges associated with channel management thanks to your exceptional teaching skills.

Regardless, please know that we strive to provide high-quality reports and valuable insights However, we realize that imperfections can detract from the overall quality of the essay Your feedback and constructive comments are highly appreciated as they will help us improve and perfect both the report and the topic We are fully committed to remedying this situation and ensuring your satisfaction.

Thank you again for all the time, effort and expertise you've invested in guiding us through channel strategy.

Thank you very much.

TABLE OF CONTENTS

CHAPTER 1: EXCUTIVE SUMMARY 1

CHAPTER 2: INTRODUCTION 1

I ABOUT THE COMPANY 1

II ABOUT THE PRODUCT 3

III COMPETITORS 4

IV TARGET CUSTOMER 6

CHAPTER 3: CURRENT COMPANY MARKETING CHANNEL ANALYSIS6 I CURRENT CHANNEL STRUCTURE 6

II SERVICE OUTPUT SEGMENTATION TEMPLATE 7

III CHANNEL SYSTEM AUDIT 9

IV KEY FINDINGS 13

CHAPTER 4: CHANNEL STRATEGY’S PROPOSAL 15

I NEW CHANNEL STRUCTURE 15

II CHANNEL GAPS CLOSING 16

CHAPTER 5: CONCLUSING 17

REFERENCE 18

CHAPTER 1: EXCUTIVE SUMMARY

Aquafina is a leading brand in the bottled water industry and has adopted several marketing channel strategies to reach its target audience The brand has a strong distribution network including direct and indirect channels Aquafina uses a pull strategy to reach its customer base and create awareness through advertising, in-store promotions, and online marketing.

Aquafina's direct distribution network includes selling products directly to retailers, supermarkets and convenience stores This brand has established partnerships with several major retail chains, making it easy for customers to access its products.

Aquafina's indirect channels include working with beverage distributors to bring products to other retail outlets The brand also partners with vending machines and food service providers to offer its products to customers.

Aquafina's marketing strategy also involves experiential marketing, including sponsorship of sporting events, concerts and fashion shows This approach helps brands connect with their target audience and build brand awareness.

In summary, Aquafina's marketing channel strategy uses a combination of direct and indirect channels to reach its customers Brands also use pull strategies to create awareness and promote their products through advertising and experiential marketing.

CHAPTER 2: INTRODUCTION I.ABOUT THE COMPANY

Aquafina is a product of PepsiCo Beverages North America (PBNA), a division of PepsiCo.

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the 5th floor, Sheraton Hotel, 88 Dong Khoi, District 1, Ho Chi Minh City It has grown to become one of the world’s biggest producers and distributors of snacks, food, and beverages PepsiCo is a leading global food and beverage corporation with products enjoyed by consumers over one billion times a day in more than 200 countries and territories around the world They have 22 brands that generate about $1 billion in annual retail sales.

Be the global leader in convenient foods and beverages by winning a purpose.

Integrating computing into business strategy, for a positive social and environmental footprint.

Leave a positive image and impact.

By being the best possible partner, driving game-changing innovation and delivering a level of growth unmatched in our industry.

By creating meaningful opportunities to work, gain new skills and build successful careers, and maintaining a diverse and inclusive workplace.

By conserving nature’s precious resources and fostering a more sustainable planet for our children and grandchildren.

By delivering sustainable top-tier total shareholder return and embracing best-in-class corporate governance.

II ABOUT THE PRODUCT

Aquafina is a bottled water brand produced by PepsiCo in the form of pure bottled water In 1994, Aquafina purified water was first produced and distributed in Wichita, Kansas After that, the brand was quickly distributed to most countries around the world such as the United States, Spain, Canada, Türkiye and even Vietnam.

Aquafina officially launched in the Vietnamese market in April 2002 Aquafina water has so far spread widely across 63 provinces and cities with the 2nd largest market share in the domestic bottled water industry.

Aquafina is pure drinking water processed through the Hydro-7 filtration process including reverse osmosis technology and several other filtration steps to thoroughly remove minerals, bacteria and impurities in water Thanks to that, we have created a perfect pure water product with a completely different fresh taste.

Aquafina distribution system provides the most useful product information Helps consumers be more proactive when ordering Aquafina water for consumption.

Aquafina is packaged in convenient packaging: 355ML plastic bottle, 500ML plastic bottle, 1.5L plastic bottle and 5L plastic bottle.

III COMPETITORS

1 LAVIE (LAVIE CO)

Lavie is distributed throughout 63 provinces and cities nationwide, from grocery stores to supermarkets, from websites to online e-commerce platforms: Tiki, Shopee, Lazada, etc Exploited using a modern technological process achieved ISO 9002 international standard certification issued in 1999 and fully believe that La Vie natural mineral water is the distilled result of nature, bringing people cool, refreshing and full of vitality water.

Address: National Way 1A, Tường Khánh Block, Ward Khánh Hậu, Tân An City,

In the current volatile market context, during production and business activities, Vinh Hao will always regenerate the distribution system structure based on available distribution channels, developing a variety of products Diversifying products and expanding distribution networks to distribute products to consumers, Vinh Hao mineral water products widely across local markets inside and outside the province.

Address: Vĩnh Hảo,, Tuy Phong, Bình Thuận Hotline: (0623) 739 106

Website:https://www.vinhhao.com.vn/lien-he

IV TARGET CUSTOMER

1 Demographic

Age: 25 to 45 years old (who care about their health) Income: the middle-income group.

2 Geographic

For both urban and rural Aquafina covered 63 provinces and cities in Viet Nam The company focuses on small distribution channels, people who deliver goods to every corner for distribution.

3 Behavioral:

The target audience of Aquafina is tourists, sports enthusiasts, concert-goers and also during various events such as weddings, etc

CHAPTER 3: CURRENT COMPANY MARKETING CHANNEL ANALYSIS

I CURRENT CHANNEL STRUCTURE

The distribution channel is too wide, so we just choose a small area to do more details That’s in district 1, HCMC

The manufacturer is located in Song Than 3 Industrial Park, Phu Tan Ward, Thu Dau 1 City, Binh Duong, transporting goods directly to channels such as MT, EC, GT or distributed directly from manufacturers to consumers.

II SERVICE OUTPUT SEGMENTATION TEMPLATE

There are 4 main customer segments based on priority starting from Spatial convenience to Delivery waiting time, Bulk breaking and then Assortment Variety.

- I'm a soccer player - Didn't want to stand in line.

- Buy a bottle of water - Whatever brand the seller gives me.

- My family often buy Dasani but today it's out of stock.

- Decided to buy Aquafina.

- Can line up for a while.

- I often buy bottled water for my children to take to

With this customer segment, they always want everything to be fast This segment targets active customers who play sports or have busy jobs, so they will choose locations that are convenient in terms of space, waiting time, and any company.

Bargain hunting

They are people who are attracted to discount or promotions programs It could be A group of friends has an upcoming camping trip, a nail shop owner buys to entertain guests, or household They buy in moderate quantities, such as one barrel of Aquafina and they have time to look for any product on sales.

This is a potential customer segment who can choose Aquafina as an alternative brand if there are internal or external reasons for their current brand such as: out of stock or they want to try a new product They also choose places that are convenient in terms of space and time and buy in average quantities.

These are people who regularly buy Aquafina and have been with this brand for a long time.

III CHANNEL SYSTEM AUDIT

The time needed to travel between supermarkets is 15 minutes The average density among supermarkets is 3 km.

With the scattered coverage of supermarkets, we can see a brief overview of Aquafina's MT channel in District 1, Ho Chi Minh City.

With this distance and wide coverage, customers can easily find the product (Aquafina).

To know more precisely about the distribution channel from Manufacturers to Supermarkets,

This supermarket has an average warehouse size of about 3,000 to 5,000 m2 and purchases products in large quantities from

On average, every 2 weeks, Supermarket receive about 3 truckloads of goods from the manufacturer.

The supermarket has about 10 pickup trucks and motorbikes that transport goods to consumers when they order.

The supermarket is responsible for storing and pricing products sold to the market, and delivering them to the end-user.

The price of a 500 milliliter bottle of Aquafina is currently sold here for 4,500 VND.

For Supermarkets, Aquafina offers incentives such as giving away refrigerators to retailers with high and stable sales, and supporting the installation of banners and shelves.

Aquafina has collaborated with designer Nguyen Cong Tri to launch products with eye-catching packaging designed by him Invite famous people to be brand ambassadors, typically Thanh Hang.

When the Manufacturer does not deliver goods on schedule or with the quality required by the Supermarket, the Manufacturer must pay a fine equal to 8% of the value of the late or wrongly delivered goods.

Financing If inventory isn’t sold out, the manufacturer will extend the time to pay for sold goods from 30 to 40 days.

Price guarantees and returns allowances and after sale service Regarding revenue risk, Manufacturers can share risks with Supermarkets by increasing brand promotion and advertising to attract customers.

The supermarket will incur a cost to order and ship from the manufacturer, and the manufacturer will also incur a cost to order production materials like bottles and labels.

About the end-users they will also pay the shipping fee if they buy goods on the supermarket's website.

When the Supermarket orders from the Manufacturer for the first time, Aquafina will provide dedicated support by sending company staff to the point of sale to assist with delivery, shelf arrangement and decoration.

For each order, Supermarket will usually pay by bank transfer and company-owned bank account.

Customers pay by bank transfer or cash according to the order value that the customer has ordered.

Information sharing

The supermarket sends buyers data to the company so that they can create promotions to attract customers.

In addition, on the sales website, reviews or feedback on product quality will also be shared with the company.

Information is circulated among members in multi-dimensional channels First, it will come from the Manufacturer about product

types and physical characteristics for Supermarkets Additionally, information is passed from the consumer back to the Producer And to keep the information flow smooth, Aquafina has applied technology (DMS - Lite) to the distribution channel.

From the data calculated in the table above, we indicated how much each channel member is responsible for generating the channel contribution: 49.9, 44.0 and 6.4 percent

IV.KEY FINDINGS

1 Service gap analysis template

According to information, Aquafina has a retail system in 63 provinces and cities, with such wide coverage, it can meet customers' needs in finding information and buying products easily Consumers can buy it at a local grocery store or vending machine.

Waiting/ Delivery time

Buying Aquafina at a retail system (Supermarket, grocery store or convenience store) will not have to wait long because there is always stock From the moment of choosing your favorite Aquafina to payment, the process is quite quick A few retailers (Supermarkets) also provide home delivery services (if the quantity is large) in certain areas and delivery time is only 1 to 2 days.

Bulk breaking

Aquafina has 4 sizes: 330mL, 500mL, 1.5L and 5L At each retail location, Aquafina always has goods (each size) or inventory to meet customer needs.

Assortment Variety

End consumers will have different preferences, tastes and experiences, so it is normal to want to try many types of water from different brands But there are some cases where customers will only choose products with promotions or not choose but only want products (Aquafina) in a variety of brands Regardless, Aquafina will create promotions to attract and meet customer needs Or create seasonal programs to change packaging, create excitement and retain loyal customers.

2 Cost gap analysis template

On June 14, 2023, Suntory Pepsico Vietnam (Aquafina parent company) and FPT Software Ho Chi Minh signed a contract for the DMSLite project (Distributor management system -Distribution management system) With main subsystems:

1 Distribution: Automate the sales process, control distribution activities, maintain inventory at optimal levels, save time and improve speed to market.

2 Sales team management: Manage sales targets by employee and line, increase work efficiency, uptime and intelligence of employees, effectively manage line distribution and optimize Enable the use of energy sources.

3 The project also helps distributors manage finances, sales services, promotional programs, warehouse assets, information integration and communication and business reporting

Causes boredom, possibly losing customers Because competitors like Lavie change packaging, creating excitement for customers, they can buy and use that product (customer psychology is always running following novelty is normal).

b With the analysis and information I gave above, it shows that Aquafina is a wide distribution channel with high coverage A wide distribution channel makes it difficult to strictly control small levels.

Regulations on transportation, stipulate that a maximum of 8 barrels can be stacked on top of each other, but there are still many small distribution agents (grocery stores, etc.) that stack up from 14 to 15 boxes, damaging the packaging, denting the product.

+ : Even though it is a liquid product and does not require strict preservation, Aqufina always encourages dealers to store its products in a cool place, but in reality it is very difficult to do so Therefore, it is only strictly enforced at large Aquafina dealers, but not at smaller retailers (conveniently placed without paying attention to where it is placed) If you leave the product in direct sunlight, residue or moss may appear on the product And this is what happened to Aquafina when a customer visited Intimex supermarket in Hao Nam to buy a 1.5L water bottle and the water bottle had residue.

Caused a crisis because of a mistake during preservation.

CHAPTER 4: CHANNEL STRATEGY’S PROPOSAL I NEW CHANNEL STRUCTURE

PepsiCo Suntory is a large beverage distributor in Vietnam, they have distributed most channels such as MT, GT, EC and channels to Hospitals, Hotels, Schools, With each channel, they have done very well in the process of saving costs and optimizing distribution channels.

To diversify, reach more customers and increase sales, through analysis and research, our team has proposed a channel (new market) which is vending machines at bus stops bus The reason we chose to develop this channel is because:

First, currently on the market, bus stations only have vending machines for many different