(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

FINAL REPORTMARKETING CHANNEL MANAGEMENT

We would like to send our deepest thanks to Ms Nguyen Thi Ngoc Dung for her profoundand well-structured lectures Your knowledge and expertise have truly enlightened andexpanded our understanding of this subject of Distribution Channel Management.

This topic has proven invaluable in helping us analyze distribution channels, grasping thecomplexities of developing effective channel strategies Your guidance will certainly shapeour future decisions and contribute to our professional development We feel more confidentand well equipped to tackle the challenges associated with channel management thanks toyour 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 usimprove and perfect both the report and the topic We are fully committed to remedying thissituation and ensuring your satisfaction

Thank you again for all the time, effort and expertise you've invested in guiding us throughchannel 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 marketingchannel strategies to reach its target audience The brand has a strong distribution networkincluding direct and indirect channels Aquafina uses a pull strategy to reach its customerbase 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 severalmajor retail chains, making it easy for customers to access its products

Aquafina's indirect channels include working with beverage distributors to bring products toother retail outlets The brand also partners with vending machines and food serviceproviders 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 withtheir target audience and build brand awareness

In summary, Aquafina's marketing channel strategy uses a combination of direct andindirect channels to reach its customers Brands also use pull strategies to create awarenessand 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 tobecome 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 theworld They have 22 brands that generate about $1 billion in annual retail sales

VISION

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

Integrating computing into business strategy, for a positive social and environmentalfootprint

Leave a positive image and impact

MISSION

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 ourchildren and grandchildren

By delivering sustainable top-tier total shareholder return and embracing best-in-classcorporate 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 sofar spread widely across 63 provinces and cities with the 2nd largest market share in thedomestic bottled water industry

Aquafina is pure drinking water processed through the Hydro-7 filtration process includingreverse 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 productwith 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 tosupermarkets, from websites to online e-commerce platforms: Tiki, Shopee, Lazada, etc.Exploited using a modern technological process achieved ISO 9002 international standardcertification issued in 1999 and fully believe that La Vie natural mineral water is thedistilled 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,Long An Province.

Address: Vĩnh Hảo,, Tuy Phong, Bình Thuận

Hotline: (0623) 739 106

Email:Itdung@vinhhao.com.vn

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 Thecompany focuses on small distribution channels, people who deliver goods to every cornerfor distribution

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 distributeddirectly from manufacturers to consumers.

II SERVICE OUTPUT SEGMENTATION TEMPLATE

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

Bulkbreaking

AssortmentVariety Explain

- I'm a soccer player

- Didn't want to stand inline

- Buy a bottle of water

- Whatever brand theseller gives me

- I choose whatever brand

- Can line up for a while.

- I often buy bottled waterfor my children to take toschool

- I ordered a box of 24bottles of Aquafina to bedelivered

The flash

With this customer segment, they always want everything to be fast This segment targetsactive customers who play sports or have busy jobs, so they will choose locations that areconvenient 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, orhousehold They buy in moderate quantities, such as one barrel of Aquafina and they havetime to look for any product on sales

Star

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

Loyal

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,let's goto 9 functions:

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

When the Manufacturer does not deliver goods on schedule orwith the quality required by the Supermarket, the Manufacturer mustpay a fine equal to 8% of the value of the late or wrongly deliveredgoods.

Financing If inventory isn’t sold out, the manufacturer will extend the time to

pay for sold goods from 30 to 40 days

Risk

Price guarantees and returns allowances and after sale serviceRegarding revenue risk, Manufacturers can share risks withSupermarkets by increasing brand promotion and advertising toattract customers

Ordering

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

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

When the Supermarket orders from the Manufacturer for the firsttime, Aquafina will provide dedicated support by sending companystaff to the point of sale to assist with delivery, shelf arrangementand decoration

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 channelmember is responsible for generating the channel contribution: 49.9, 44.0 and 6.4 percent

IV.KEY FINDINGS

1 Service gap analysis template

Bulkbreaking

AssortmentVariety

Major Channelfor this Segment

The

flash H (SS=SD) H (SS=SD) H (SS=SD) H (SS=SD)

Grocery store orvending machine

Or Delivery tohome

Spatial Convenience

According to information, Aquafina has a retail system in 63 provinces and cities, with suchwide coverage, it can meet customers' needs in finding information and buying productseasily 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) willnot have to wait long because there is always stock From the moment of choosing yourfavorite 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 deliverytime is only 1 to 2 days

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, maintaininventory at optimal levels, save time and improve speed to market

2 Sales team management: Manage sales targets by employee and line, increase workefficiency, uptime and intelligence of employees, effectively manage line distribution andoptimize 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 changepackaging, creating excitement for customers, they can buy and use that product (customerpsychology is always running following novelty is normal).

b With the analysis and information I gave above, it shows that Aquafina is a widedistribution 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 distributionagents (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 strictpreservation, Aqufina always encourages dealers to store its products in a cool place, but inreality it is very difficult to do so Therefore, it is only strictly enforced at large Aquafinadealers, 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 theproduct And this is what happened to Aquafina when a customer visited Intimexsupermarket 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 mostchannels such as MT, GT, EC and channels to Hospitals, Hotels, Schools, With eachchannel, they have done very well in the process of saving costs and optimizing distributionchannels

To diversify, reach more customers and increase sales, through analysis and research, ourteam 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

customers who are thirsty and want a bottle of water immediately or loyal customers ofAquafina This helps Aquafina reach many customer files and increase sales If we stillapply the vending machine model with many different brands, customers will have compareand reduce the rate of choosing Aquafina products.

Second, the bus station is a crowded place, a waiting place for people when waiting for thebus to arrive at the station Because cars enter and exit the passenger terminal very quickly,while waiting, people (if thirsty) often have to rush and waste a lot of time to find, pay forand buy water It takes a lot of time If you go too far for the bus stop, you may miss thebus To create conditions for people at bus stations in Ho Chi Minh City, it is proposed thatAquafina install distribution channels (Vending machines at bus stops)

Applying this new distribution channel can help Aquafina reach more customers andincrease sales

II CHANNEL GAPS CLOSING

1 For the DMS-Lite project

The project helps Aquafina's distribution channel save costs and automate the sales cycle Inaddition, our team also recommends combining with GETFLY - Manage business quotationlists, control event revenue: Create and manage quotation lists to help Aquafina monitor andcontrol prices products that employees provide to customers, thereby minimizing errors andcontrolling cash flow more easily In addition, Getfly also provides a seamless process forapproving quotes, creating orders, and contracts on one platform, helping to operate quicklyand synchronously, saving time

The combination with Getfly makes Aquafina's distribution channel easier and more