Group in Vietnam and expanding into Asia, KIDO has developed a nationwide retail distribution network with a wide range of unique and convenient staple consumer foods at 450.000 selling
COMANY, PRODUCT AND SERVICE
C OMPANY
- Vietnamese name : CÔNG TY CỔ PHẦN TẬP ĐOÀN
- English name : KIDO GROUP CORPORATION
4103001184 issued by the Department of Planning and Investment of Ho Chi Minh City on September 6,
2002, and according to the revised BRC
- Listing information : The Company’s shares are listed on the Ho Chi Minh City Stock Exchange under the Listing License No 39/UBCK-GPNY issued by the State Securities Commission on November 18, 2005, with the stock trading code is “ KDC ”
- Head office: 138-142 Hai Ba Trung, Da Kao Ward, District 01, Ho Chi Minh City
- Key business : o Wholesales food o Producing and trading in food and beverage products such as ice cream, milk, and dairy products, non-alcoholic beverages, mineral water o Producing, trading, and exporting products made from oils, vegetable fats, oilseeds, coconut jelly; manufacturing and trading all kinds of packaging; export of raw materials and materials for the production and processing of vegetable oil industry
- Currently, KIDO owns 02 Frozen Food factories in Bac Ninh and Cu Chi; 04 Cooking Oil Factory in Nghe An,
Ba Ria - Vung Tau, Nha Be Total capacity supply to the market includes: 21 million liters of yogurt/year;
24 million liters of ice cream/year; more than 400,000 tons of finished oil/year at 02 Tuong An Oil
Factory and KIDO Nha Be Oil Factory (formerly Golden Hope Nha Be); annual capacity at Vocarimex Oil Factory reaches 130,000 tons of refined oil,
120,000 tons of finished oil and 4,000 tons of sesame oil
- Continuing its mission of becoming the No 1 Food Group in Vietnam and expanding into Asia, KIDO has developed a nationwide retail distribution network with a wide range of unique and convenient staple consumer foods at 450.000 selling points of dried products, 120.000 selling points of frozen products and a series of Signature stores named Chuk Chuk
- Through the flexible conversion of nationwide sales channels such as GT, MT, KA, CVS, online channels, and e-commerce platforms (Lazada, Shopee, Sendo, Tiki, ), KIDO will continue to expand market towards luxury and diversification to serve consumer needs throughout the day for consumers of all ages across the country and out to the world.
- KIDO Group was founded in 1993 and has since become one of the leading food companies in Vietnam
- During the first 22 years of development, KIDO has established and maintained a leading position in a wide range of confectionery, biscuit and ice cream products under the KIDO brand.
- In 2015, aiming to expand and develop into the essential food sector, KIDO Group was officially established Promoting existing platforms, KIDO continues to maintain and develop its leading position in the cold product industry with Ice Cream, Milk & Dairy products and expands its product portfolio into essential areas withCooking oil, instant noodles, seasoning, dipping sauces, coffee,convenient packaged foods to take care of Vietnamese family kitchens and serve the needs of consumers throughout the day.
- Currently, KIDO is leading the cold ice cream market with 44.5% market share (According to Euromonitor) and accounting for over 30% market share in the cooking oil industry (According to internal data).
- Becoming the No.1 Food Group in Vietnam and expand into Asia to “ Flavor Your Life ” and fill Vietnamese kitchens with essential, safe, nutritious, convenient, and unique products
- Becoming a reputable FOOD GROUP in Vietnam and Southeast Asia by bringing more flavors to customers with safe, nutritious, convenient and unique products.
- FOR CUSTOMERS o KIDO's mission for Customers is to create suitable, convenient products including popular and essential foods, supplements and beverages We provide safe, delicious, nutritious, convenient and unique foods to all customers to always maintain a pioneering position in the food market.
- FOR COMMUNITY o To contribute to the development and support of the Community, we proactively create, and actively participate and contribute to community and social-oriented programs.
We aim to become a pioneering organization for social development and are highly community-based.
- FOR PARTNERS o With Partners, KIDO's mission is to create sustainable values for all members of the supply chain through innovative products We aim for harmonious profits for all parties, improving processes for quality and productivity to create sustainable development.
- FOR SHAREHOLDERS o For Shareholders, KIDO's mission is to allocate capital to maximize value for shareholders in the long term and manage risk to create stability and confidence in investments that bring expected benefits to shareholders. winter.
- BECAUSE OF THE STAFF o We always nurture and create all conditions to satisfy the needs and expectations at work to promote the creativity,dedication and enthusiasm of our employees Therefore,KIDO always has a team of dynamic, creative, loyal, highly adaptable and trustworthy employees
- “Corresponding to each stage of development, KIDO has marked its own milestones, affirmed its true value with its creative, dynamism, pioneering in the journey to the world”
- 1993: Formerly Kinh Do Food Processing and
Construction Co., Ltd, owns a snack cake manufacturing and trading factory (100m 2 ) in District
6, Ho Chi Minh City, with 70 workers and with charter capital 1.4 billion dong
- 1994 – 1998: Invested in building a new factory with an area of 6 hectares; Invested in cookie production line, bread production line, industrial sponge cake and introduced chocolate candy production line into operation Launched products Snack, Cookies, fresh cake, moon cake, Chocolate
- 1999 – 2001: Opened the first bakery system
Increase charter capital to 51 billion dong, expand factory area to more than 40,000 m 2 Company’s products were exported to the US, France, Canada, Germany, Japan, Thailand, Singapore,
- 2002: Kinh Do Joint Stock Company was established, with charter capital 150 billion dong
- 2003: Acquired Wall’s ice cream factory from
Unilever Group and established KIDO Company, developing 2 brands Merino and Celano Imported chocolate production line ( 1 million USD ) and increased charter capital to 200 billion VND
- 2004: Established Kinh Do Binh Duong Company
Northern Kinh Do Company officially listed on the stock market ( Stock code: NKD )
- 2005: Kinh Do Joint Stock Company officially listed on the stock exchange (Stock code: KDC) Launch of Solite sponge cake.
- 2006 – 2008: The company received the Labor
Medal class III, was voted for the famous brand in Vietnam, and voted for the National Brand Launched of Wel Yo yogurt products
- 2010 – 2012: Kinh Do was voted as the National
Brand for the second time A merger of Northern Kinh
Do Company and KIDO Joint Stock Company
Continued to merge Vinabico into KDC.
- 2013 – 2014: Received the Second Class Labor
Medal Voted as National Brand for the 4th time in a row Brand No 01 in the confectionery industry and in the Top 10 famous brands in Vietnam
- 2015: Signed a contract in principle to transfer the confectionery business to Mondelēz and officially entered into the staple food sector October 2015 officially changed its name to KIDO Group Joint Stock Company.
From 2016 to 2018, KIDO Group consolidated its position in the cooking oil industry by merging two major entities, Tuong An and Vocarimex This strategic move strengthened KIDO's market presence and expanded its portfolio Furthermore, the acquisition of a 51% stake in Golden Hope Nha Be and its subsequent renaming to KIDO Nha Be further solidified the group's dominance in the edible oils sector.
10 reputable food companies KDF leads the ice cream market; TAC ranked 2nd in cooking oil market share and KIDO Nha Be ranked 3rd in cooking oil market share
During 2019-2020, KIDO re-entered the snack market by launching "Tuong An Premium," a high-end product line with the golden elephant logo This move marked a shift in KIDO's focus towards the premium segment and included the merger of KDF into the company.
KDC Honored National Brand in 12 consecutive years Top 10 reputable food companies Top 50 leading brands
- 2021 – now: Continuing the mission of becoming the
No 1 Food Group in Vietnam Launching fresh bakery products branded KIDO’s Bakery in the style of “
Fashion Enjoyment ” Launched a series of Signature stores named Chuk Chuk
- Distribution channel system all over the country: 15 transit warehouses; 300 distributors; 450.000 points of sale for dried products; 120.000 points of sale for frozen products.
- 2 Frozen food factories in Bac Ninh and Cu Chi
- 3 finished oil factories in Nghe An, Ba Ria – Vung Tau,
Nha Be – Ho Chi Minh city.
- In addition, with the advantages brought by the subsidiary, KIDO also owns a warehouse system of nearly 8,000 m 2 ; 22,300 m 3 liquid tank and 04 wharfs at Nha Be Port with capacity: 20,000 DWT
Figure 1.3 : Business Network of KIDO Group
Figure 1.4 : KIDO’s Business network in Vietnam
- Tuong An vegetable oil joint stock company: Tuong An
Vegetable Oil Joint Stock Company ranks second in terms of cooking oil market share in Vietnam With the prestige, pioneering, and quality for more than 44 years, Tuong An brand has held an important position in the hearts of Vietnamese consumers as evidenced by prestigious awards such as: Honored in the National Brand book with 02 Tuong An CookingOil and Season Tuong An products; Top 10 most chosen brands to buy in 2020 for
CookingOil Tuong An products (voted by Vietnam Report 2020);
P RODUCT
- Product : is the list of products and product range that KIDO offers to the market to meet the needs of customers
- With a wide range of products, KIDO can satisfy the majority of customer demands today
- Moreover, KIDO constantly varies the types of packaging it uses, including trays, bowls, cups, and containers with various capacities
Figure 1.8 : KIDO's staple food products
Figure 1.9 : KIDO's frozen food products
Figure 1.10 : KIDO's snack food products
Figure 1.11 : KIDO's festive gift products
S ERVICE
- Product diversification is also an important part of promoting KIDO's business strategy.
- In addition to producing bakery products, cooking oil, etc KIDO has expanded its business model and promoted services Typically in the F&B industry
- One of KIDO's prominent F&B chains is Chuk Chuk Ice cream – Tea &
- In July 2022 , Chuk Chuk changed its name to Chuk Tea & Coffee
- KIDO has created a highly effective product strategy that not only meets client wants but also helps the business generate significant profits.
Figure 1.13 : Tea & Coffee, Cake of Chuk
P ROPOSAL
The solutions and implementation strategies of each product line :
- For the Ice Cream industry: o Develop products suitable for youth trends. o Promote products in the high-end segment and expand the consumer base.
- For the snacking sector: o Expand the snack product portfolio through joint ventures with foreign countries. o Strengthen Research & Development activities to create unique and different products.
- For the cooking oil industry: o Optimize the efficiency of the product and raw material supply chain. o Develop a diverse product portfolio o Strengthen brand building activities.
- For the F&B sector: o Develop retail models in many forms for both families and many consumers. o Focus on experience through products, services and added value for many different audiences and consumer needs o Focus on healthy products.
SALES ORGANIZATION
S ALES O RGANIZATION
- Above the Board of Directors is the Board of Shareholders.
- The Board of Directors assigns the task of managing all production and business activities to the Board of General Directors
- The Board of Supervisors accompanies the Board of Shareholders, Board of Directors and Board of General Directors in the role of controlling all activities of the company
- In order to create a balance between short-term and long-term goals, and at the same time ensure the correct implementation of the planned strategic path, the Board of General Directors established an Executive Management Committee (EMC) to present topics and requirements to the Board of Directors
Teams manage and coordinate all operations, while horizontal issues guide the collaboration between teams and departments This framework complements the specialized and professionalized capabilities of each team, allowing them to operate both vertically and horizontally.
Figure 2.1 : Sales Organization of KIDO
2 Roles and duties of each team in the group
- The role of the 3 TEAMs is extremely important in operations When the market fluctuates strongly, the role of 3 TEAMs are introduced into the business cycle with internally designed capacity at varying levels of increase/decrease from time to time to meet fluctuating needs Digital technology will handle the increase
- With the rapid growth of the business, the connection between 3
Teams will be tighter when digital technology is applied by the
Group used and increasingly optimized. o THE CAPACITY OF EACH TEAM NEEDS TO BE SPECIALIZED AND PROFESSIONALIZED
- A series of information flows in both directions and works together to solve tasks.
- Is a team that sets out operational directions in sales, distribution, marketing, and product development products and understanding consumers
- Team 1 regularly interacts and connects closely with people consumption, researching the competitive environment and market trends From there, parts of Team 1 can deeply understand the needs and provide the best services to customers.
- Team 1's role is to provide and feedback information to the entire Company and coordinate closely with the Company's functional departments towards the goal of providing the right products, at the right time, in the right place and meet consumer needs.
- Duties of Support Teams ( Team 2and Team 3 ) are placed around Team 1 to support and provide ideas for feedback or forecasting customer needs, market trends and always put the consumer at the center.
TEAM 2 : SUPPLY CHAIN MANAGEMENT ( SCM )
- Specialized in finished product manufacturing, quality control, logistics and warehousing activities.
- Team SCM is the core strength of the Group Team SCM is responsible for managing the production of goods, production efficiency and product distribution to achieve the highest efficiency
- The close coordination of Team 2 with Team 1 helps ensure the supply of the right products, in the right volume, to the right customers at the most competitive prices.
- This is an important step forward in customer policy and enhances the development of competitive advantages for the Group.
- A Team with specific functions to support the Company's operations including human resources, administration, financial accounting and management accounting
Team 3 offers a wide range of infrastructure-related services, including IT infrastructure, business process management, communications, investor relations, purchasing management, and finance These services are centrally managed by the Group, ensuring a cohesive and efficient approach to service delivery.
- This allows each company to focus on generating profits and other value without the issues associated with long-term infrastructure investments.
- People are the decisive factor in the success of a business, KIDO always creates a safe, friendly, professional working environment with the spirit of being an owner with many opportunities for career development and encouragement Encourage employees to work long term.
A dynamic work environment that fosters collaboration, open communication, and unlimited opportunities empowers employees to unlock their full potential This trusted environment extends to the leadership, where the Board of Directors provides unwavering support in guiding the company towards achieving its vision and mission, ensuring that its destiny is realized.
- In addition, KIDO also focuses on identifying talent, creating opportunities for employees to develop their careers at units under the Group
- At the same time, with the enthusiasm to transfer knowledge, KIDO's Board of Directors has designed professional training courses for Management, Officers and Employees
- Each training program is a series of values drawn from practical experiences and the latest updated knowledge of successful businesses in the world Knowledge sharing from the Group's Board of Directors has opened up a different, flexible, creative way of thinking for employees and adapted to all changing circumstances of the business environment, while shortening time, for employees to complete their work to achieve goals.
- Not only does KIDO create a learning environment for employees, it also creates playgrounds for young people through the internship program Young people are guided by their brothers and sisters, share and interact with reality, experience and summarize the knowledge they have learned.
- After that, they are officially recruited and the Group continues to nurture young talents to help them take on important positions that member units under the Group are expanding.
- The total number of KIDO shares as of December 31, 2022 is
279,741,356 shares (equivalent to charter capital of
- Shareholder structure according to ownership ratio of large shareholders and small shareholders as of November 23, 2022.
- Shareholder structure according to ownership ratio of institutional shareholders and individual shareholders as of November 23, 2022.
- Shareholder structure according to ownership ratio of domestic shareholders and foreign shareholders as of November 23, 2022
- The Board of Directors (BoD) of KIDO Group has 9 members, including 3 independent members
Independent members are selected from thousands of applicants based on qualifications, experience and professional qualifications
- Evaluation of the performance of the Board of
Management: The Board of Management complied with the regulations, reporting regimes, and deployed the resolutions of the Board of Directors and the General Meeting of Shareholders to the departments.
- The company’s work is done seriously and in accordance with the requirements.
- The remuneration of the Board of Directors and Board of Supervisors is paid in accordance with the provisions of the Resolution at the Annual General Meeting of
Shareholders During the year, the company did not conduct treasury shares transactions
Issues within the authority of the BOD
The Board of Directors holds the ultimate responsibility for directing the Company's operations, ensuring compliance with legal regulations, and striving to maintain alignment with the Group's core business plan This mandate encompasses the supervision of all Company activities with shareholders' interests as the guiding principle Additionally, the Board oversees the management of subsidiaries to ensure that their activities support the overall objectives of KIDO.
- The Board of Directors supervises the management through the reports of the Board of Management at the quarterly report meeting
Activities of Board of Supervisors :
- Supervision activities of Board of Supervisors for the Board of Directors, Board of Management and shareholders: o The activities of the Board of Directors strictly follow the Enterprise Law and the Company’s Charter The Board of Directors organized and maintained regular meetings, then promptly implemented the resolutions of the Board of Directors for the Board of Management to implement o The issues discussed and voted on the meetings of the Board of Directors are based on the Resolution of the General Meeting of Shareholders and are under the authority of the Board of Directors The discussion and voting are consistent with the functions, duties and authority of the Board of Directors in accordance with the Enterprise Law and the Company’s Charter o The Board of Management fully participates in meetings with the Board of Directors The coordination between Board of Supervisors for the activities of the Board of Directors, the Board of Management and other managers: o The Board of Directors and the Board of Management have made great efforts, regularly direct the Company’s employees to minimize management costs and maintain and stabilize production and business activities o Board of Supervisors is invited to attend meetings with the Board of Directors and the Board of Management o Board of Supervisors supervises and inspects the management and implementation of the business goals of the Board of Directors and the Board of Management, and examines the legitimacy and rationality of business activities during the year in accordance with the
Resolutions of the General Meeting of Shareholders o Inspect and supervise the issuance of resolutions and decisions of the Board of Directors and the Board of Management o The activities of Board of Supervisors always have the active support of the Board of
Directors, Board of Management, and other departments The activities of Board of Supervisors are independent and do not hinder the production and business activities of the Company The relationship in working coordination between the Board of Supervisors, the Board of Directors and the Board of
Management is in accordance with the standards, the Enterprise Law and the Company’s Charter
Conclusion of the supervisory work of the
- Accounting data has been strictly checked, ensuring accuracy and legitimacy in data recording.
- The Company always complies with the provisions of current laws on information disclosure on the stock market
- The Board of Supervisors will continue to accompany and supervise the Company’s activities.
P ROPOSAL
To better sell products, KIDO can consider implementing the following strategies:
- Market Research: Conduct thorough market research to identify target customers, understand their needs, preferences, and buying behavior This will help KIDO tailor their products and marketing messages accordingly.
- Product Differentiation: Ensure that KIDO's products have unique features or qualities that set them apart from competitors Highlight these differentiators in marketing materials and emphasize the value they provide to customers.
- Omni-Channel Presence: Establish a presence across various channels, including e-commerce platforms, social media, and physical stores if applicable Provide a seamless experience for customers, allowing them to easily discover and purchase KIDO's products through their preferred channels.
KIDO can better serve customers, drive revenue growth, and differentiate itself from competitors by transforming its sales structure to better align with consumer desires and preferences.
Build a team of highly competent and dynamic sales staff, ready to meet customers' needs and answer questions.
Drive business growth by investing in sales analytics, training and development, and incentives and rewards.
SALES MANAGEMENT – SELLING PROCESS
S ALES M ANAGEMENT
1 Current sales status of the company :
Figure 3.1 : Functional model of sales department
1.2 Functions and duties of the sales department :
- Manage, plan strategies, inspect, evaluate, motivate, make business plans, lead and assign subordinate staff to work most effectively and efficiently.
- Responsible for receiving and signing class contracts from partners as well as related work.
- Browse monthly and quarterly planning reports
- Directly manage regional sales systems.
- Responsible for managing materials and rooms in the assigned area, planning necessary strategies for each region.
- Browse contracts and large orders within the scope of your management.
- Report on business situation, plan product sales, manage subordinate staff
- Manage subordinate staff, support sales director.
- Regularly survey the company's locations, geography, and stores.
- Encourage and have reasonable and convenient policies to meet the spirit of subordinate employees with the best spirit.
- Find potential customers, introduce new products
- Good products and advice for customers.
- Responsible for implementing superior policies and plans.
- Report on the actual situation of the market and area under your management.
- Assign subordinates to sell at assigned locations
Sales department by product type:
- Understand the products you are selling, grasp customer needs and find ways to approach and advise as well as find potential customers for the company.
- Evaluate and receive feedback from customers.
- Marketing to customers new products, products that many people use.
- Direct sales, marketing, consulting, and answering small questions with customers.
- Taking care of customers, understanding and assessing customers' needs for using products, creating closeness and sympathy for customers.
For the Edible Oil industry
- Orientation for developing the cooking oil industry according to consumer needs ( frying, stir-frying, marinating ),
- Health needs and other special needs ( for children, the elderly… )
- Focus on exploiting the mid-range segment by expanding the suitable product portfolio product value and Tuong An value, moving forward to expand the segment and dominate this segment.
- Continue to be proactive and lead innovations in product development and sales activities of the industry.
- Invest and develop the brand to make Tuong An a leading competitive advantage representing not only the oil industry but also a series of other essential food industries belongs to the Group, including spices.
- Tuong An brand will be a key factor in the industry, reaching new consumers.
- Quality & taste are important competitive factors for the industry, therefore investment.
- Thorough research and evaluation before launching to the market is extremely necessary and cannot be ignored.
- Take advantage of the Group's distribution channel strengths to increase product recognition and revenue attract consumers to try and consume the product in the long term.
- Focus on trial activities, confirm reputation and origin of product quality to ensure.
- Ensuring long-term support, moving forward with Tuong An cooking oil, becoming an indispensable product in consumers' kitchens.
For the Ice Cream/Frozen Food industry
- Orientation for product development based on user groups such as children and adolescents teens, adults, families and product development planning based on the needs of each specific statue
To enhance the company's market positioning, it is crucial to maintain and expand the product portfolio, focusing on key elements including snacks, delectable treats, local flavors, international cuisines, and nutritional options This comprehensive approach will not only increase the frequency of use but also deepen the company's penetration across various industry segments, establishing a robust foundation for long-term growth.
- Summer and winter LAP programs and other promotional activities continue to be the operating foundation
- Industry-specific actions to maintain the highest sales peak in the business cycle.
- Investing in Celano & Merino brands to increase competitive advantages, barriers to entering the industry and leads
- Leading industry growth In particular, the positioning and core attributes of the two brands will be based on consumer objects as the basis for exploitation.
- Orientation for developing the bakery industry according to 3 main groups: Short shelf life for essential daily needs, long shelf life for snacking and enjoyment needs and festival season (Mid-Autumn,
Tet) for needs Pray for gifts, share love.
- Focus on the difference or added value of each product when compared with competitors, ensuring advantages and promoting the Group's strengths in product development and industry understanding.
- Fresh cakes will be the main spearhead of the Group, exploiting the bakery trend and enjoyment of the majority of consumers in the industry today.
- Mid-Autumn Festival & Tet will be the two main, extremely important festival seasons of the bakery industry, helping the Group's bakery brand create solid trust and conquer customers.
3 The advantages and disadvantages of the current sales policy :
- The distribution system is strong and wide, through the means at the company, it contributes to specializing in large, wholesale, and retail shipments to agents, stores
- Good competitive price, easy to see and remember design.
- Thanks to sponsorship activities, participating in social activities contributes to affirming the brand with users.
- Young, dynamic, enthusiastic, qualified and professional staff.
- Transport costs are still highly competitive.
- Processing costs and costs for sales activities are high.
S ELLING P ROCESS
- Where there is potential for product development and the company's products have not yet reached the market, KIDO's sales specialists and market development staff will look for buyers
(through agents, retailers, supermarkets, market).
- The market development team is also responsible for finding leads and customers in the region who want to buy from the company throughout the process.
- Geographically : Based on population density and product consumption, the market is divided There are two main divisions: rural and urban.
- Demographics : KIDO selects age segments: elderly, adults, teenagers, teenagers and children For professional segments: businessmen, housewives, students, etc In addition, the company also classifies items for individuals and families.
- Behavior : This part is based on the status of the product's intended use such as buying as a gift for family or colleagues on special days, buying for the health benefits that the product brings, buying because it has many benefits many different types ,
Consumers' psychological factors heavily influence food choices For example, housewives prioritize nutritious meals for their families, while teenagers gravitate towards snacks and convenience foods Office workers may opt for snacks to share with colleagues or superiors during special occasions Understanding these psychological motivations is crucial for businesses to tailor their products and marketing strategies effectively.
KIDO divides target customers into 2 groups:
- Business to Customer ( B2C ) group: Consumers want to buy and are willing to pay for KIDO products, especially housewives who care about nutrients in their family meals and Office workers want to send gifts to colleagues or relatives or superiors on special days o Therefore, the demand for products in this period is much higher than in other periods o This group of customers has relatively diverse product needs and accounts for a high proportion.
- Business to Business ( B2B ) group: Distributors, wholesalers, retailers, stores, supermarkets who need and are ready to distribute the Company's products This is the group that requires discounts, sales bonuses, on-schedule orders related to product distribution.
- In addition to the two main target customer groups, KIDO's other product lines are also suitable for all ages.
- KIDO has 450,000 dry sales points, 120,000 frozen and export sales points.
- On the digital technology platform, we have also deployed KIDO Shop and E-commerce to bring goods from Distributors to consumers and from companies to consumers directly This is the inevitable trend of digital technology 4.0 today
- KIDO ensures the stability of the digital platform by focusing on investing in a flexible, easy-to-use, impressive system structure to serve all customers conveniently.
- In addition, KIDO sets up IT systems, recruits talent, invests heavily in technology and deploys training courses to ensure that customers from Distributors, Points of Sale, and Consumers all enjoy benefits a safe, stable system, ensuring information security in the best way.
- To help customers learn more about the product, KIDO provides information about the product, nutritional value, effects and expert advice on how to prepare delicious meals for housewives.
- Learn more about products, identify ingredients—like oils, creams, yogurt or snacks—that provide the right nutrition, and how to support your child's development—all covered in seminar so that customers can feel completely secure when thinking about buying and using products for their families.
- KIDO has launched attractive promotions and gifts to entice potential customers to continue purchasing and using newly launched products as well as using PR to attract new customers.
- Customers' desire for product improvement is collected through surveys to come up with appropriate marketing strategies to attract people
- Distributors must emphasize the benefits they gain from distributing KIDO products in addition to providing information about the item itself, reiterating the importance of trust and loyalty among distributors.
- Focusing on customer needs, KIDO has applied digital technology to bring products from its Distributor system to retail locations nationwide
KIDO Shop, with its extensive network of 450,000 points of sale, facilitates efficient product distribution by tailoring offerings to regional preferences Through advanced inventory management, retailers can track product consumption, identify popular items, and optimize stock levels By leveraging digital software and modernizing workflows, KIDO Shop empowers businesses to enhance efficiency and streamline operations Its goal is to meet consumer demands swiftly and seamlessly throughout the day, delivering convenience and optimal product placement at points of sale.
- Flexible combination of tradition and technology in marketing and communication: Prioritize implementation of Direct Marketing to save external costs for product promotion; Bringing value to
Consumers at lower costs and sharing more benefits for Distributors and traditional (GT) and modern (MT) point-of-sale systems, applying digital technology to promote sales channels online shopping, e-commerce channels (Lazada, Shopee, Sendo, Tiki, ).
- The CRM system acts as the right hand in providing customers with the best and most convenient experiences in a diverse environment, and subsidiaries also have no difficulty in managing and serving customers consumption.
- Consumers will now be the center of attention, and KIDO will provide all products and services to bring customers the most convenient and friendly experiences.
- With the use of AI and ML technology, businesses will be able to monitor and track users, which will enable them to make informed decisions about what tactics, products, and services to offer them.
- The salesperson should close the transaction by resolving any remaining customer issues or objections and finalizing the terms of the transaction, including price, delivery schedule, and customer loyalty policy, design and payment schedule, after providing solutions and value propositions.
- After the transaction, the sales agent should contact the customer to check their satisfaction with the purchase and address any issues or concerns they may have
- This can foster a strong connection with consumers and drive repeat business Furthermore, KIDO's use of advanced technologies such as AI, ML and CRM will make tracking and serving customers in the future simpler
- Using retail cameras and transaction history, recording customer needs and habits will be simpler.
- However, implementing campaigns that align with the customer journey is also an important step forward in gaining consumer and brand trust.
P ROPOSAL
- KIDO should clearly understand what customers want and need so that they can always satisfy customers, and at the same time they also have a solid foundation to have the strength to develop the company.
- KIDO has a broad and deep enough sales force to support roadmap planning, sales supervision, customer support and market expansion.
- However, they still face some disadvantages such as upgrading and changing the sales organization will be significantly hindered by the current computer network management system.
- That could have a long-term and catastrophic impact on the business Because some of their items, like ice cream, are particularly difficult to store, expanding some sales, such as selling ice cream online, could make maintaining product quality difficult.
SALES TARGET
S EGMENTATION
- Based on population density and product consumption, the market is segmented
- There are two main divisions: rural and urban.
- KIDO selects age groups: the elderly, adults, teenagers, teenagers and children
- For professional segments: businessmen, housewives, students, etc.
- In addition, the company also classifies items for individuals and families.
- Based on the status of the product's intended use, such as buying as a gift for family or colleagues on special days, buying for the health benefits that the product brings, buying because it has many different types ,
- For example, housewives who like to cook and care about family meals and the nutrients in each ingredient, young people who like snacks, frozen foods or want to go out for drinks, or an office worker
- Rooms want to send gifts to colleagues or bosses on special days.
KIDO’ S S ALES T ARGET
In 2022, the consolidated net revenue of VND 12,535 billion surpassed the 89.5% target and witnessed a 19.4% increase from the previous year This robust growth was primarily driven by the remarkable performance of the edible oil business and the revenue generated by fresh cakes from KIDO's Bakery, a newly introduced brand.
- Net revenue from the edible oil business unit accounted for 82% of the Group's net revenue and the food business unit accounted for
Profit before tax and after tax
1 Pre-tax profit : Down 25.8% compared to 2021
- The world's economy in general and Vietnam's economy in particular need time to shape and regain its position after 2 years of being affected by the Covid-19 pandemic, all business activities of all economic sectors are was decelerated, causing profits from business to decrease, leading to a decrease in profit before tax in
2022 by 25.8% compared to 2021, reaching VND 511 billion and completing only 56.7% of the plan for the whole year.
2 After tax profit : A Sharp Decrease Compared to the same period last year ( 375 billion VND )
- The reduction of corporate income tax of the loss-carrying factor for the period 2015-2018 has completed the previous allocation
Since then, profit after tax in 2022 reached VND 375 billion, a sharp decrease compared to the same period last year.
Gross Profit Up 10.9% compared to 2021
- Gross profit in 2022 reached VND 2,274 billion, up 10.9% compared to 2021, showing that the Group achieved high efficiency in production management and cost control In addition, the Group continues to optimize production costs at factories to reduce overall production costs in the low season, thereby improving the overall gross profit.
1 Selling Expneses : Selling expenses/ Revenue in 2022 11.5%
- In 2022, the Group has been flexible in sales methods in line with market trends to increase consumption
- Accordingly, selling expenses in 2022 reached VND 1,446 billion, an increase of 20.8% compared to 2021 Of which: selling expenses from the edible oil business unit decreased by 25% compared to
2021 and the food business unit increased by 1.31 times compared to 2021
- However, selling expenses/revenue in 2022 was 11.5%, which was quite similar to the selling expenses/revenue in 2021 (11.4%).
- General administration expenses in 2022 were VND 409 billion, General administration selling expenses/ revenue in 2022 was
3.3%, which was under control ( under 4% )
- This shows that our cost control activities in the categories are quite strict at a reasonable control rate.
- The Covid epidemic has strongly affected ice cream consumption at amusement, entertainment, and tourism areas.
- The Group has quickly deployed sales channel transformation, continuously launching new products, in accordance with trends and customer needs In particular, we have successfully implemented the "Bring home ice cream" model with revenue results exceeding expectations.
- After more than 120 days of social distancing, while the revenue and profits of all production and business units in Ho Chi Minh City were severely affected, our frozen food business still achieve high results with net revenue in 2021 reaching 1,522 billion VND, an increase of 17.6% compared to 2020
- KIDO continues to lead the ice cream market with a market share of 43.5%, of which the Merino brand accounts for 24.8% and Celano brand accounts for 17.4% market share.
KIDO plans to expand its frozen food market share in the upcoming period Its strategies include targeting the "Take-home and export markets" and expanding distribution channels to reach new customers By implementing these initiatives, KIDO aims to maintain its leadership position in Vietnam's ice cream industry and widen the market share gap with competitors.
Develop products according to youth trends ” , “ Focus on implementing marketing activities ” to activate the brand in accordance with the new situation, “ Promote products in the high- end segment and expand the consumer audience ” Aiming to make
Ice Cream a regular and favorite product of the majority of consumers.
Figure 4.1 : Food business unit of KIDO
- In 2021, the retail segment will continue to bring high sales to the cooking oil business The net revenue of cooking oil in 2021 reached VND 8,904 billion, up 28.7% compared to 2020 Retail profit before tax at Tuong An Company reached VND 223 billion, completing 96% of the plan Profit before tax of commercial and industrial segment represented by Vocarimex Company reached
VND 120 billion, completing 210% of the year plan; Combined with KIDO Nha Be’s pre-tax profit of 35.5 billion VND , an increase of 36% compared to 2020
Figure 4.2 : Oil business unit of KIDO
- In the coming time, the economy is expected to continue to have many fluctuations the supply chain has not recovered, and inflation is still one of the impacts directly influencing on consumer behavior
- Therefore, KIDO sets a growth target in 2023, specifically, the planned net revenue is VND 15,000 billion, an increase of 19.7% compared to 2022 and the target profit before tax is VND 900 billion, an increase of 76 3% compared to 2022.
SALE BUDGET
S ALE B UDGET OF KIDO
- In 2021, despite being heavily affected by the
Covid-19 epidemic, the Group flexibly changed its sales methods to increase consumption when implementing social distancing Accordingly, selling expenses in 2021 reached VND 1,197 billion, an increase of 14.6% compared to 2020
- Of which: selling expenses from the cooking oil industry increased by 38.4% compared to 2020 This table will give us a better understanding of the selling expenditures that KIDO has increased and decreased in the uncertain 2021 It shows the cost of products sold in 2021 KIDO divides their sales budget into several categories and has a fair allocation
- The company's sales budgets frequently concentrate on advertising, promotion, and operational costs like labor cost to optimize the sales system, timely responses to consumer behaviors, contributing to the creation of a positive customer journey, and optimizing human resources because it is a manufacturing business with a tendency to shift focus to B2B and B2C.
SALE STAFF RECRUITMENT
KIDO’ S RECRUITMENT
- The company's hiring objective is to attract in qualified candidates who can empower it achieve its expanding production and customer demands
To recruit the most suitable candidates, the Corporation outlines specific criteria for each specialized position These criteria adhere to fundamental requirements, including the possession of essential professional qualifications Managerial roles necessitate a specialized university degree Candidates should exhibit enthusiasm, a willingness to learn, a passion for their field, a proactive work ethic, and an abundance of innovative ideas.
- Recruitment criteria for major posts are fairly stringent, with requirements for work experience, analytical prowess, and computer and foreign language proficiency.
J OB DESCRIPTION & REQUIREMENT
1.Job description for Sale Manager
- Evaluate target markets, brand positioning, and develop the most effective branding strategies
- Establish the brand's vision, purpose, goals, and development plans
- Create comprehensive marketing strategy, plans for brand positioning, and allocate and manage money appropriately
- Set standards for measuring the success of marketing initiatives
- Encourage the execution of marketing programs, keep an eye on them, and assess their efficacy
- Monitor market trends, research customer habits, and observe rival activity
- Make sure all communications and campaign messaging comply to corporate policies and are both high-quality and affordable
- After media campaigns, do meta-analyses to draw lessons for next efforts
- Create promotions in accordance with marketing initiatives and strategies
- Creating and implementing initiatives for market and consumer research to support branding and promotion activities
2 Job requirement for Sale Manager
- Experience : Minimum 4 years of experience in Sale
- Major : Graduated from University with major in
- Mastering the legal regulations related to advertising, communication, business lines Proficient and in- depth understanding of Sale
- Good thinking, creativity, good strategic planning
- Skills in market analysis, management, negotiation
- Perseverance and determination to pursue the
- Progressive spirit, can withstand high pressure
- Dynamic, friendly working environment, opportunities for advancement Get additional training to improve professional skills
- Increase salary according to work performance and fully commit to employee benefits according to current regulations (social insurance, health insurance, unemployment insurance )
- 13th month salary according to company regulations.
Off Saturday afternoon, Sunday and holidays as prescribed.
- To participate in extracurricular activities: arts, sports, tourism of the Company
Round 1: Screen and interview applicants
- To find people who fit the job criteria, screen resumes and perform preliminary interviews Use behaviorally based interview questions to gauge a candidate's qualifications, experience, and cultural fit
- Verify the candidate's credentials, job history, and criminal history by conducting background checks
- After a qualified applicant has been found, extend a job offer that contains information on the pay scale, extras, and duties of the position
Round 4: Welcome the new employee
- Assure the new sales team has the skills and knowledge needed to do their jobs well by providing training and assistance.
SALE STAFF TRAINING
Strategic orientation of human resources
- Always focusing on people, KIDO creates a safe, friendly, professional working environment with a spirit of autonomy and many attractive career development opportunities to encourage employees to work long-term
- Experience a friendly, open, and unlimited working environment that helps employees develop their potential and put their trust in the Board of Directors
- At the same time, KIDO also focuses on discovering talent and creating opportunities for employees to develop their careers at the Group's subsidiaries.
- The Group's leadership, with a passion for knowledge transfer, has designed professional training courses for employees
- Each training program is a value chain drawn from practical experiences Knowledge sharing from the Group's Board of Directors has opened up for employees a different way of thinking, flexibility, creativity and adaptation to all changing circumstances of the business environment.
- Not only does KIDO create a learning environment for employees, it also creates a playground for young people through an internship program
- Young people are guided, shared, and have practical experiences using the experience and knowledge learned by their predecessors
- After that, they are officially recruited and the Group continues to nurture young talents to be able to take on important positions that the Group's subsidiaries are expanding.
- Proactive in resources, KIDO always has a team ready to develop business, minimizing the shortage of middle and senior management resources that the Vietnamese labor market is facing due to labor market trends dynamic.
- In addition, the Company also cooperates with vocational training centers to foster skills for employees in each specialty and continuously update new knowledge to keep up with modern trends.
Figure 7.1 : Organization and Human resource
- KIDO has built its own Human Resources Training Center ( KTC ) to meet the needs of training, improving capacity, skills and qualities suitable for the company's current and future development
- Everything is done to ensure the quantity and quality of internal human resources to keep up with the company's development.
- KIDO continues to invest in the training and development of its employees 3,685 people have been trained by KTC, an increase of
17% compared to 2020 The goal of KTC's training initiatives is to improve the quality of output products by improving employees' understanding of hygiene and safety
- Labor birth, ISO and other important topics In addition, KTC continuously refreshes personnel on current economic challenges through seminars to update the outside business world Employee training is also emphasized.
- The enterprise has a philosophy of fostering human resources through continuous training in knowledge and skills.
- Purpose: o The goal is to keep employees up to date with new information and assist them in effectively implementing that information as the company's technology changes. o Prepare the next group of managers by equipping them with the necessary abilities for advancement. o Motivate and inspire employees, meeting their career development needs. o Training is provided to employees to help them meet the evolving demands of the job and the company's long-term growth goals.
MOTIVATION
V ALUES OF HUMANITY AT KIDO F OOD
- KIDO always put the needs of people first KIDO
Foods has worked with everyone from customers to team members who supply the company with products to shareholders and team members who participate in the production process In their interactions with partners, they constantly strike a balance.
- One may argue that the success of the company is significantly influenced by its employees.
- The following generation of leaders, whose members will fill independent and significant roles in the Group, continues to receive our support and development.
- KIDO view every member as a business owner who has the right to self-determination when creating relationships inside and outside the Company to further the development of the company.
B ONUS POLICY AND INSURANCE
- The average salary range for KIDO's sales employees is 7 to 15 million Higher compensation will be offered for higher sales ranks, and these rates are often variable based on performance.
KIDO's implementation of a working age coefficient within its KIDO wage and bonus scheme plays a strategic role in employee retention and talent management This coefficient incentivizes long-term loyalty within the organization, encouraging staff members to remain invested in the company's success Consequently, it helps KIDO maintain a stable workforce and preserve its valuable human capital, ensuring the continuity of its operations and maximizing productivity.
- In order to encourage and motivate employees in the Company to increase their contribution efficiency, the Company has a policy of periodic bonus, unexpected bonus for individuals and collectives
- The Business will have a policy of awarding successes based on the degree of completion of specific objectives in 2 periodic reviews at the conclusion of each fiscal year, depending on business performance
- This incentive amount will be clear, specific, and equitable for all staff levels Rewarding employees based on how well they accomplish personal objectives can motivate them at work
- Foster the company's robust development while creating a healthy atmosphere for people to reach their full potential
- Fulfill the demands of employees in terms of recognition so that their accomplishments and individual efforts can be publicly publicized
- In addition to the regular compensation, KIDO offers additional income to its employees in the form of 13th month payments, overtime pay ( often equal to 150% of the standard salary ), and policies that cover transportation, food, and phone expenses
- In addition, KIDO always assigns their personnel sales goals Typically, these commissions range from 10% to
25% of the sales staff's income
- The deduction and payment of social insurance and health insurance shall be deducted and paid by the Company in accordance with the provisions of law
- At KIDO, they constantly place a high value on our workers' health and routinely arrange twice-yearly checkups
KIDO prioritizes the well-being of its employees by maintaining medical facilities and partnering with clinics to provide accessible and timely medical treatment Comprehensive coverage is ensured through social insurance plans and medical insurance for all employees Recognizing the risks associated with certain job functions, KIDO additionally offers safety insurance for hazardous or dangerous roles, demonstrating its commitment to safeguarding the health and safety of its workforce.
- For each and every one of our subsidiaries' employees, KIDO provides yearly health examinations
- During these routine checkups, those who work in environments where certain characteristics put them at risk for occupational illnesses are screened for these conditions
- According to the health requirements for each type of employment and the findings of routine health examinations, employees are to be allocated to acceptable job positions
- At KIDO, they think that the process of selling and delivering items to clients is critical
KIDO prioritizes employee motivation and performance by implementing comprehensive standards These include setting clear goals, offering incentives, investing in training, acknowledging accomplishments, fostering a positive work culture, providing tools and resources, supporting work-life balance, and enabling professional growth The company also offers a range of benefits such as meal allowances, transportation assistance, health insurance, welfare programs, safety protections, bonuses, gifts, seniority-based rewards, and recreational activities to foster employee well-being and engagement.
- At KIDO, they regularly offer annual company outings as well as team-building outings between departments in subsidiaries to foster more comradery, harmony, and unity among workers and to improve their capacity to collaborate across departments and raise company productivity
- Also, these regimes provide an opportunity for workers to unwind, amuse themselves, renew their efforts, settle disputes, foster greater togetherness, hone their specific talents, and collaborate with others
- Moreover, work outings and team-building exercises help us strengthen our bonds with our business partners and develop their brand as a vibrant and cohesive family ‘
P ROMOTE SALE MOTIVATION POLICY
- Create clear, attainable goals Define explicit, team-wide and individual sales targets and effectively convey them
- Give incentives : To encourage the sales staff to meet their goals, offer performance- based rewards like bonuses, commissions, or promotions
- Training and development : Make frequent training program investments to improve the sales team's abilities and expertise, so enhancing their self-assurance and drive
- Acknowledge accomplishments : Recognize and show appreciation for the sales team's successes, both personally and collectively
- Promote a pleasant work environment: To foster a helpful and inspiring work environment, promote cooperation, collaboration, and open communication
- Offer efficient tools and resources : Provide the sales staff the equipment, know-how, and resources they need to do their jobs well.
EVALUATION
KIDO’ S EVALUATION STANDARD
- At KIDO, sales staff are rated according to store and subsidiary The shop manager and the staff members review each other and each employee once a month The above are the most typical fundamental assessments of KIDO for sales people at its stores KIDO does not utilize a standard assessment technique for the whole countrywide retail system Each distinct product line will also have its own criteria in specialized stores based on the clients they serve
Sta ff Sco re ATTITUDES
- Help colleagues, support each other to complete the work well
- Wittingly go to work early
- Maintaining assigned machinery and equipment to work
- Proactively support customers in all situations
- Enough step to greet customers
- Intonation, gentle and elegant communication gestures
- Choosing, consultant to find the right product for customers
- Identify customer needs and recommend the right product
- Flexible and skillful to solve arising problems
Product: understand and memorize product information applied to customer consultation.
Price: memorize price applied to customer consultation
Customer: Know and understand the customers of
Cleaning & Tidy (display cabinet, sample products, )
- Display products according to regulations with regulations, suitable with products
- Complete all required product and customer reports
- Good feedback from customers (individual)
- Being called by the customer to book an appointment for a personal consultation (specific criteria)
P ROPSAL
- For a thorough evaluation of its staff, KIDO has established specified criteria This makes it easier and more effective for them to organize, arrange, and train them
- Because of their openness and transparency, their employees may easily check their standards and take proactive steps to develop themselves
- Such criteria and methods are exceedingly passive and rigid when used to manage and evaluate personnel
- This may make it more difficult to recognize and identify talented individuals who can later make a significant contribution to the business
- Beside base on these standard to evaluate employees, the store managers or superviors should listen to them, in order to know what they want, and what they need to go to adjust the score and judges the employees reasonably
https://www.kdc.vn/en
https://www.kdc.vn/files/documents/20220405_KDC_AR
https://www.kdc.vn/files/documents/20230420%20-%20KDC%20-%20B
https://www.slideshare.net/luanvantrust/bao-cao-thuc-hanh-thuc-tap- quan-tri-ban-hang-80099doc
https://www.kdc.vn/files/documents/20210601_KDC_AR_2020_EN
https://www.kdc.vn/en/nha-dau-tu/thong-diep