Design marketing channels for new products, the case in nguyen van xe’s pottery production base

DESIGN MARKETING CHANNELS FOR NEW PRODUCTS, THE CASE IN NGUYEN VAN XE’S POTTERY PRODUCTION BASE Class =: 41K12.3 - CLC Lecturer: Ph.D Ngo Thi Khue Thu Msc Nguyen Phuong Thao Danang, Ap

DESIGN MARKETING CHANNELS FOR NEW

PRODUCTS, THE CASE IN NGUYEN VAN XE’S

POTTERY PRODUCTION BASE

Class =: 41K12.3 - CLC Lecturer: Ph.D Ngo Thi Khue Thu Msc Nguyen Phuong Thao

Danang, April 2018 GROUP MEMBERS

Nguyen Ngoc Quynh Anh Nguyen Thi My My

Le Thi Diem Mi Tran Thi Duyen

INTERVIEW PROCESS REPORT

6.1

6.2

In today market economy, many companies and production bases in our country have a tendency to offer their products through some intermediaries This would reduce the costs, create the highest efficiency in the channel, thereby deliver products to the target market in time and meet customer needs

In fact, promotion activities like advertising and discount are only beneficial in the very short run Other businesses can rapidly imitate these kinds of strategies of the companies, so companies that follow these strategies will quickly lose their competitive advantages As a result, businesses today are focusing more on developing a better distribution system in order to gain sustainable development A complete distribution system with rational distribution policies will help the business succeed

Pottery villages are traditional trade villages in many areas of Vietnam Thanh

Ha pottery village has been existing in Hoi An for 500 years It is not well-known place until Hoi An has become an attractive destination of many foreign tourists Nevertheless, the village is still not popular in the eyes of local people At present, pottery villages are only distributed in Hue, Danang, Quang Nam and very few other provinces

Thanks to the complete distribution system, the company has acquired a reputation for its products However, through our observation, the process of the distributing products has not yet reached maximum efficiency Therefore, we want to make Thanh Ha pottery village become traditional craft village like Bat Trang, Dong Trieu

With regard to the aim of preserving and develop traditional craft villages, our group choose a pottery production base in Thanh Ha pottery village as our sale point for our project This is the production base of Mr Nguyen Van Xe

2 GENERAL INFORMATION ABOUT THE SALE POINT

2.1 Producer

- Nguyen Van Xe base is a pottery production of Thanh Ha pottery village

- Address: Thanh Ha pottery village, Hoi An, Vietnam

Thanh Ha is known as a famous pottery village in Hoi An In recent years, Thanh Ha is a place that many visitors cannot ignore when visiting to Hoi An This is

a favorable opportunity for establishing the business in this area

Through observing the sales point and conducting the interview with Mr Nguyen Van Xe, the owner of the production base, our conclusions are:

- The traditional business items of Nguyen Van Xe factory are household pottery

- The current distribution system of the facility is

| Produeer_ || 12 Wholesalers os Retailers —> Consumers

Nguyen Van Xe production base only distributes through traditional channels

During the interview, Mr Son, Nguyen Van Xe’s son reveals that he intends to develop decorative ceramics instead of just producing household ceramics He also

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most customers only know the general brand named Thanh Ha pottery village but does not know the private brand of a production base Nguyen Van Xe in Thanh Ha However, he does not know where and how to start

2.3 The relationship between the production base and intermediaries All 12 wholesalers live in Hoi An, close to Nguyen Van Xe ceramic factory so itis very easy for picking up products The relationship between the manufacturer and

12 wholesalers is very good However, 12 intermediaries tend to give money back to Nguyen Van Xe’s base only after selling the products, making the production base stagnant in the revolving capital

2.4 Series of products selected

After the observation and interviews, we realize that household ceramics have a good development while decorative ceramics initially encountered many problems Hence, setting up distribution channels for decorative ceramics is an urgent task that needs to be addressed

2.4.1, Features, opportunities for decorative ceramic products

Nowadays, people would love to engage closely with the nature and ancient living spaces Ceramics are among the favorite items mostly used to decorate in the restaurant, folk cuisines as well as hotels Some households also enjoy using these small decorative items for desks and indoor spaces Besides, ceramic decoration is small size, easy to transport, aesthetic and high level of sophistication

3 LITERATURE REVIEW

3.1 In-depth interview

After observing the sale point, in order to design an effective distribution channel for new products, we choose the in-depth interviewing to deeply understand customer insights By conducting a small number of interviews intensively, researcher can explore different perspectives from respondents on a particular idea, program, or situation (Carolyn Boyce and Palena Neale, 2006) These interviews are often used

to provide a complete and profound picture of what happened in the channel and will happen with new products delivery Potential participants of the interview include the owner of business, managers, retailers and end-users The manufacturer can utilize the information from the study to apply for the business

3.2 Designing the channel

Generally, a channel can be designed based on 7 steps: recognizing the need for

a channel design decision, setting and coordinating distribution objectives, specifying distribution tasks, developing possible alternative channel structures, evaluating the variables affecting channel structure, choosing the “best” channel structure and

for this kind of product, the owner only need to modify it to fit with new products

4 FIELD OBSERVATION REPORT

Mr Nguyen Van Xe’s pottery production base is located in Thanh Ha pottery village, Hoi An, Quang Nam province Main products of the base are household potteries From 10 days to 15 days, 12 wholesalers will go to the production base, pick

up the potteries, carry them around, and sell them to retailers in Hue, Da Nang and Quang Nam

In addition to household potteries, the production base also makes decorative potteries which are ordered from restaurants, hotels, homestays and other decorative potteries These entities than sell these items to tourists visiting the village

People

Employees: There are 5 employees working at the production base and living near the production base They all have worked there for a long time (from 5-10 years)

Wholesalers: The production base makes oral contract with 12 wholesalers Every 15 or 20 days, 12 wholesalers go to the production base to pick up the potteries and bring them around than selling to retailers in Hue, Da Nang and Quang Nam These wholesalers have strong business relationship with the production base Consumers of the sale point mostly are tourists visiting the village, but the sales for them are not many Sometimes, restaurants and hotels managers come here to order potteries for decorating or for food serving dishes

Objects

Household potteries: are mainly traditional products of Nguyen Van Xe’s production base They account for 80% revenue of the production base This kind of product has a full channel system so it is impossible to change the whole system Decorative potteries are potential products that are developed by Mr Xe’s son

At this time, Mr Nguyen Van Xe’s son are considering building a new channel system for this kind of product Therefore, our group decided to help Mr Nguyen Van Xe to design the channel

Pottery is made by forming a ceramic (often clay) body into objects of a required shape and heating them to high temperatures in a kiln which removes all the water from the clay

the river Up to now, wholesalers and consumers go directly to the production to buy the potteries The owner does not have to do any intermediate activities

Messages and media: Not any production bases in the village has their own brand which many people know about that Only Thanh Ha pottery village has its name on Google map and research engines Tourists just wander around the village and come to any the production bases

Service: Whenever tourists go by, Mr Nguyen Van Xe and his son will perform pottery making process by hands and by the wheel potter Then, tourists try to make potteries by themselves

5 INTERVIEW PROCESS REPORT

5.1 Select a product line

Product line: Ceramic decoration

Today, people tend to love the close to nature or return to the old living space Ceramics are the favorite decorative items today in the restaurant, folk cuisine as well

as the hotel

Small decorative items for desks, indoor space are all family favorite Ceramic decoration is small size, easy to transport, aesthetic, high level sophistication 5.2 A set of interview questions

5.2.1 Selection of respondents

- Sources of selection: Businesses or individuals who trade in or use pottery

o Mr Nguyen Van Son - Mr Street)

Nguyen Van Xe’s son, © M6c Garden (Duong Tu Minh manager as well as the heir of Street)

the production base © Shop souvenirs Ms Hien (Hot

o Mr Nguyen Van Hung - An ancient )

employee © Room Casa Hostel (An

o Mrs Lan - wholesaler Thuong 4 Street)

o Mrs Sang - retailer o Nguyen My My (Individuals -

Quang Nam Province)

5.2.2 Question list

5.2.2.1 Apply for the owner and manager

Question 1: Do you have any difficulties in finding intermediates?

Question 2: Do you have to deal with inventory?

Question 3: Do intermediates pick up stock at the specific time or at the random time?

Question 4: Do you want to extend market size and find more intermediates? Question 5: What do you thing about the online channel?

Question 6: Do you offer delivery service (how and how far?)

Question 7: If we help you to set up the online channel, who can be the manager?

5.2.2.2 Apply for end-users and Retailers

Question 1: Hi, are you doing the business, distributing, trading or using decorative pottery products or products related to decorative ceramics such as stone lotus, cactus etc? Is it good or difficult? If you are having difficulty, what problems do you have? (For example: products, freight, design, etc) If you are

a user, how do you buy these decorative items?

Question 2: Do you know the place of production or distribution of decorative ceramics that you are buying through the sources? Can you tell us the reasons why you choose them?

Question 3: Have you ever had a problem of storage or inventory of decorative ceramics? And if so, how did you handle it?

Question 4: Do you have any comments on decorative ceramic products? (design, style, size, etc)

Question 5: What kind of purchases that you find more convenient (online or

and diversified designs, are you willing to buy?

Form of interview

Discussing face to face with respondents about the decorative pottery Using a cell phone to record the interview and use the notebook to record it Time and place of interview

Interview time: 45-60 minutes for each interview on 10/04/2017 and 11/04/2017

Location: Da Nang city and Quang Nam province

6.1 Answer sheet for the owner and manager:

Dap vien Mr Nguyen van Mr Nguyen Van Mrs Lan - Mrs Sang

Xe — production Mr Nguyen Van : Câu hỏi base owner Son - Mr Nguyen Hung - emplovee wholesaler retailer

Š ploy Van Xe’s son

Cũng không khó khăn | Bên đồ gia dụng cũng | Trả lời tương tự như | Không khó tìm Hỏi |Không có tru

lắm Vì xưa giờ làm | không khó lắm Minh | chú Xê xưa thì khó chứ chừ | gian con Cô là b qua 12 trung gian | có I2 nhà buôn quen có bạn hàng rồi, lấy |cho khách lẻ, quen biết rồi, cứ đến |rồi, tháng nào cũng quen rồi phụ nữ sau sĩ

hàng thôi Họ không | mưa thì ít chứ mùa hè hàng tới đặt

1 trả tiễn ngay mà đến | làm không kịp cho họ

khi nào bán được | lấy Lâu lâu cũng có

hàng thì gửi tiền sau | khách sạn, nhà hàng,

quán ăn đến đặt

Không có tôn kho | Không có nhiều hàng | Trả lời tương tự như | Cũng có hàng tôn | Bên cô thì hết hà nhiều Khi nào họ | tồn kho cho lắm chú Xê kho mà không |mới lấy tiếp r

tiếng mình làm thêm mà bên lẻ mua nhiêu | dư Khoảng t:

cho hàng qua cho họ chứ

That ra cing muon

nhưng già rồi, không

làm được nhiều nữa

đó mới lạ, một cái gì

đó của riêng mình

Chứ người ra đến đây chủ yếu biết đến làng gốm Thanh Hà chứ có

biết chỗ này của anh đâu Với sắp tới, anh

cũng đang có ý định

làm cái quây nho nhỏ

ngay day, trung bay mấy đồ gốm trang trí,

Trả lời tương tự như

chú Xê

Thôi cô thây chừng

đó đủ rồi Bên cô bỏ

hàng ngo vậy cũng được nhiều chỗ lắm

Cô bán khách con, chứ không ban buôn cho khá

12

day anh xai Pinterest

cac kiéu dé dang anh

lên trên đó, cho khách

Không, cô khê biết

Chủ yếu bên bán

buôn ban 6 Da Nang,

Hué, Quang Nam thi

nhiều Còn lâu lâu có

Chac có con chú Anh quản lý luôn Có

thang em cũng làm

IT, kêu nó làm website cho anh cũng được Trả lời tương tự như

chú Xê Không Không

6.2 Answer sheet for the end-users and retailers:

Nguyén My M (Khách lẻ) Khách sạn Room

Casa Shop lưu niệm chị

Hiền tại Hội An

Shop Xương rồng

bên Núi Thành

Shop sen đá Mộc Đáp viên

Garden Câu hỏi

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