group final project course name marketing channel management

Established in 1997, to bring to the market a genuine "clean" Thai Nguyen tea product, over the past 20 years, the Tan Cuong Xanh tea brand has increasingly penetrated the Vietnamese tea

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS AND FINANCE

aS a UEF

ĐẠI HỌC KINH TE TÀI CHÍNH

Group Final Project

Course Name: Marketing Channel Management Lecturer: Mrs Nguyen Thi Ngoc Dung, MBA

Class code: MKT1127E.BO5E Semester: 1B | November 2023

Table of Contents

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Vv CONCLUSION 35

1 Company Introduction 1 About the company Tan Cuong Green Co., Ltd is a company specializing in producing green tea products under the famous Tan Cuong brand

Established in 1997, to bring to the market a genuine "clean" Thai Nguyen tea product, over the past 20 years, the Tan Cuong Xanh tea brand has increasingly penetrated the Vietnamese tea market

They were honored to receive the prestigious brand gold cup for many consecutive years

Email: tancuongxanh01@gmail.com & Hotline: 0983 412 602 - Zalo: 0912 74 1357

2, Company formation and development June 11, 2012 Tan Cuong Xanh was established in Thai Nguyen and tea office in Cau Giay, Hanoi

Tan Cuong Xanh Thai Nguyen Tea Factory was built on an area of 1.2Ha in Song Cong City, Thai Nguyen, located in the Tan Cuong Tea raw material area, a famous place for growing delicious Thai Nguyen tea in Vietnam This is a land with suitable soil for tea trees and has a rich tradition of making special delicious tea products that cannot be found anywhere else

With the motto "Product quality reputation is the number | goal", Tan Cuong Xanh Co., Ltd has always made efforts in both human and material resources, building brand reputation and trust with customers through company products

The factory's delicious Tan Cuong Xanh Thai Nguyen tea products are processed using high-tech production lines from China, Taiwan Combined with traditional manual methods

2016: Tan Cuong Xanh established Tan Cuong Xanh Import-Export Company specializing in tea export activities

March 2017: Tan Cuong Xanh established Tan Cuong Xanh Trading Company Limited

In October 2008, Tan Cuong Xanh imported 3 modern and fully automatic Italian tea bags and instant tea production lines

January 2019; Tan Cuong Xanh established SK Vietnam company specializing in the fields of fast food and copyrighted film entertainment

March 2019: Tan Cuong Xanh established SK Vietnam Manufacturing Company, specializing in producing nylon film and metal printing cylinders Newly launched with modern machinery lines, Tan Cuong Xanh has conquered customers with its good and durable printing quality With metal printing shaft, 10-year warranty

3 About products Tan Cuong tea is a famous beverage in Vietnamese cuisine Tan Cuong Xanh company's products fully meet the hygiene and safety standards of the Thai Nguyen Food Safety and Hygiene and meet export standards

The company produces fourteen distinct sorts of goods with varying sizes and prices The products the company is providing include:

1 Thai Nguyen clove tea Premium Tan Cuong tea Tan Cuong specialty tea Special Tan Cuong tea

Tan Cuong Thai Nguyen Long Viet tea Tan Cuong tea with blessings and fortune Tan Cuong Tea Pine Wood Box Tay Ho lotus tea

14 Tea marinated with jasmine

MAIN PRODUCT CATEGORIES Picture 1.3.1 The main product lines of Tan Cuong Xanh

II Current company marketing channel analysis

1 Current channel structure

Tan Cuong Xanh

Digital Store The company will sell its products on all three of today's largest e- commerce platforms: Tiki, Shopee, and Lazada

Physical Store (Quantity: 18)

o Ha Not (Quantity: 11) o Ho Chi Minh (Quantity: 3) o Da Nang (Quantity: 1) o Thai Neuyen (Quantity: 3) Retailer (Quantity: 670)

According to Tan Cuong Xanh statistics, up to now, the number of Retailers selling Tan Cuong Xanh tea products by city is as follows:

Ho Chi Minh 100 Soc Trang 10

Da Nang 40 Bac Lieu 10

Binh Duong 20 Khanh Hoa 20

Long An 10 Phu Yen 10

An Giang 10 Binh Dinh 10 Kien Giang 10 Dak Lak 10

Tay Ninh 10 Gia Lai 10

Binh Phuoc 10 Kon Tum 10 Dong Thap 10 Nghe An 20

Hue 10

Ho Chi Minh City is the city with the largest number of retailers selling Tan Cuong Xanh's tea products, accounting for 25% of the brand's total retailers Next is Hanoi with 20% of retailers The rest of the cities have retailers below 15%

The disparity in the number of retailers between cities shows that Tan Cuong Xanh is focusing on developing the market in big cities, where there is a high demand for tea In the coming time, Tan Cuong Xanh is expected to continue expanding its distribution network in other provinces and cities, to meet the growing consumer demand for the brand's tea products

2, End-user analysis Define target End-user Step I: Defining the behavior of buying tea products

SERVICE OUTPUT DEMAND DIFFERENCES: TEA-BUYING

Time

work to buy groceries”

There will be two groups of customers that the company targets by simulating their buying behavior: the customer love tea group and the basic customer group

Step 2: Customer portraits based on customer group segments: After performing step 1, we identified two customer segments that the company will target

“*¢ Customers love tea: Most of them will be customers aged from 30 to 70 years old with an average income of over VND 10 million a month They usually live in big cities, where there are developed economic conditions and traditional tea culture Tea-loving customers usually have the habit of drinking tea regularly, from | to 2 times per day They usually drink tea in the morning, afternoon, or evening, depending on preference Besides, they often have a hobby of learning about tea, different types of tea, and how to make tea They also often participate in tea-related activities, such as tea ceremonies or tea groups Usually, this group of customers prefers enjoying the taste of tea They also often look for high-quality teas, produced from good ingredients Tea-loving customers also often prefer enjoying quiet the tranquility, drinking tea at home, in the office, or in other quiet places

can buy any product they like

s* Basic Customer: This group of customers will usually be aged from 22 to 40 years old with an income of VND 5 million a month or more, concentrated in all cities of Vietnam They are not too picky in choosing tea and how to drink it

Buying tendence

Average purchase quantity, can waiting, need to be served enthusiastically and attentively

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3 Channel Functions a Manufacturer Address: No 2, Lane 31/26 Tran Quoe Hoan, Dich Vong Hau Ward, Cau Giay District, Hanoi City, Vietnam

Channel Functions Physical possession

Ownership

Promotion

Negotiation Financing

Distributor ® Transportation by truck e Maximum yield: 50-250 tons of

tea per day depending on the time Responsible for the goods shipped to Distributor

Regularly organize promotions for retailers to motivate retailers to buy more

(Do not interfere) Depend on Distributor (Do not interfere) Exchange policy:

Responsible for exchanging defective products for Distributor and Retailer,

within 3-5 days for exchange and return

Payment Staff salaries, monthly or quarterly costs

of materials for building physical stores Information sharing Collect feedback on product changes

from the Distributor

b Distributor Ho Chi Minh:

Address: No 10, Street 21, Le Minh Xuan | Industrial Park, Binh Chanh District, Ho

Chi Minh City

Ha Noi: Address: No 12, Street 20, Phu Nghia Industrial Park, Chuong My District, Hanoi

City

TP HCM ® No 10, Street 21, Le Minh Xuan 1

Industrial Park, Binh Chanh District,

Ho Chi Minh City

® Warehouse in Ho Chi Minh City: With an area of 10,000 m2, can hold more than 10,000 tons of tea Ha Noi

® No 12, Street 20, Phu Nghia Industrial Park, Chuong My District, 13

14

Ownership

Promotion

Hanoi City ® Warehouse in Hanoi: With an area of

5,000 m2, can hold more than 5,000 tons of tea

Employees from the manufacturer and warehouse staff will transfer the goods to the warehouse for storage

Transportation: Specialized trucks distributed by the business to retailers

¢ The goods will be delivered to dealers after recetving the goods from the manufacturer

e After sorting and inspection, the quantity of goods will be packed according to the orders of customers and retailers

® In addition to the pre-order quantity, the remainder will be kept in cold storage for retail sale during the day ® This process is directly supervised by

staff and agency managers ¢ Cost to maintain cold storage system,

cool storage, and dry storage to ensure tea storage in the best condition

Distributor to Retailer

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Negotiation

® Discount program: Retailers will enjoy certain discounts when buying tea from Tan Cuong Xanh Company from distributors The discount usually ranges from 10% to 30%, depending on the quantity of tea purchased and the duration of the promotion

e Giveaway: Retailers will be given gifts when buying tea from Tan

distributors Gifts are usually tea products of Tan Cuong Xanh Company, or other tea-related products

¢ Voucher program: Retailers will receive vouchers when buying tea

distributors This voucher can be used to purchase tea at retailers’ stores, or at other Tan Cuong Xanh stores Distributor to Retailer

¢ Provide a recommended selling price for each type of retail distribution unit

® Require merchants to sell the product at its list price when it is sold on the market

® Strict product preservation standards

¢ Both parties have reached an agreement on a commercial deal

® Form of credit: Tan Cuong Xanh allows retailers to buy tea deferred, with a deferred payment period of up to 30 days

® Early payment discount: Tan Cuong Xanh offers discounts to retailers who pay for tea early

® Form of marketing sponsorship: Tan Cuong Xanh supports retailers with

advertising, promotion Distributor to Producer

® Debts to pay factory staffmonthly and pay them within 30 days

® Debit of goods payable quarterly and monthly for the factory

e There is not enough supply for retailers on holidays

® Force majeure circumstances: Power outages affect the quality of products stored at the warehouse

Distributor to Producer ¢ Supply is not enough goods for

distributors on holidays when they must work at overcapacity

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® The product transported from the manufacturer to the warehouse is affected by the temperature that prevents the product from achieving quality

Orders are sent to the manufacturer after ageregating the stock from orders from retailers

Besides, Distributors can order an additional 1 ton of tea to avoid insufficient supply

Collection of debts from retailers Information sharing Distributor to Retailer

© Product information: Provides retailers with information about the company's tea products, including information about the origin, production process, ingredients, taste, etc

¢ Market Information: Provides retailers with information about the tea market, including information about demand, trends, competitors

e Seminars and conferences: Organizeseminars and symposia on tea, to provide information to retailers directly and effectively

¢ Documents and publication: Publishes tea materials and publications, to

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provide information to retailers in a convenient and easily accessible way ¢ Website system, social networks: Builds a website system, social networks, to provide information to retailers quickly and promptly

Distributor to Producer ¢ Notice of quantity of goods ordered

per day ¢ Feedback on product quality or loss to

the factory during transportation ® Suggest changes to the product

c Digital Store All products of Tan Cuong Xanh are currently sold on e-commerce platforms: Tiki, Shopee, and Lazada

Channel Functions

Physical possession

Ownership Promotion

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Tiki Tiki NOW: Delivery within 2-3 hours of order

TikiFAST: Delivery within 2-6 days of order

TikiPRO: Delivery within 2-5 days of order

Tiki supports product return within 3 days from the date of receipt

(Do not interfere) Featured booth:

Tiki will bring the

business's booth to a prominent position on the homepage, helping to increase

Digital Store Shopee Standard delivery: Delivery within 2-4 days of order Express delivery: Delivery within 1-2 days of order Intra-city delivery: Delivery within 24 hours of order Shopee supports product return within 7 days from the date of receipt

(Do not interfere) Shopee Super Sale: Shopee organizes Shopee Super Sale on holidays, Tet, with many attractive incentives such as

Lazada

Economical delivery: Delivery within 2-7 days of order Express delivery: Delivery within 1-2 days of order Intra-city delivery: Delivery within 24 hours of order Lazada supports product return within 7 days from the date of receipt

(Do not interfere) Lazada Super Sale: Lazada organizes Lazada Super Sale on holidays, Tet, with many attractive incentives such as

Negotiation

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customer reach Discounts and discounts: Tiki support businesses to reduce product prices up to 50%, helping to attract customers and stimulate shopping demand Free shipping: Tiki supports free shipping for orders from VND 250,000 or more, helping to reduce costs for

customers

Tiki allows businesses to set their own product prices, but businesses need to ensure that the selling price is suitable for the market and competitive with

discounts, free shipping, gifts ,

Shopee Live: Shopee Live is a livestream feature that helps businesses connect directly with customers and introduce products Shopee supports livestream businesses with many attractive incentives

Shopee allows businesses to set their own product prices, but businesses need to ensure that the selling price is in line with the market and competitive with other competitors Shopee supports

discounts, free shipping, gifts ,

Lazada discount codes: Lazada regularly offers discount codes to customers shopping on Lazada Businesses can join Lazada's discount

code program to attract customers

Lazada Feed: Lazada Feed is a feature that helps businesses post images and videos about products to attract customers Businesses can participate in the Lazada Feed program to increase brand awareness and attract

customers

Lazada allows businesses to set their own prices, but businesses need to ensure that the selling price is in line with the market and competitive with other competitors Lazada supports

Financing

Risk

Ordering

Payment Information

sharing

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other competitors Tiki supports businesses to reduce product prices up to 50%, helping to attract customers and stimulate shopping demand

(Do not interfere) Responsible for

receiving and renewing products for customers when errors occur according to supplier

policies

Make order to Distributor warehouse based on customers’ orders (Do not interfere) Receive information (products, location information, pricing policy, incentives) that suppliers need to

businesses to reduce product prices up to 50%, helping to attract customers and stimulate shopping demand

(Do not interfere) Responsible for receiving and renewing products for customers when errors occur according to supplier

policies

Make order to Distributor warehouse based on customers’ orders

(Do not interfere) Receive information (products, location information, pricing policy, incentives) that suppliers need to do via

businesses to reduce product prices by up to 50%, helping to attract customers and

(Do not interfere) Responsible for receiving and renewing products for customers when errors occur according to supplier

policies

Make order to Distributor warehouse based on customers’ orders

(Do not interfere) Receive information (products, location information, pricing policy, incentives) that suppliers need to do via