Final report marketing channel management aquafina

This topic has proven invaluable in helping us analyze distribution channels, grasping the complexities of developing effective channel strategies.. TARGET CUSTOMER...6 CHAPTER 3: CURREN

BỘ GIÁO DỤC VÀ ĐÀO TẠO

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

FINAL REPORTMARKETING CHANNEL MANAGEMENT

THANK YOU

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

This topic has proven invaluable in helping us analyze distribution channels, grasping the complexities of developing effective channel strategies Your guidance will certainly shape our future decisions and contribute to our professional development We feel more confidentand well equipped to tackle the challenges associated with channel management thanks to your exceptional teaching skills

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

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

Thank you very much

TABLE OF CONTENTS

CHAPTER 1: EXCUTIVE SUMMARY 1

CHAPTER 2: INTRODUCTION 1

I ABOUT THE COMPANY 1

II ABOUT THE PRODUCT 3

III COMPETITORS 4

IV TARGET CUSTOMER 6

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

II SERVICE OUTPUT SEGMENTATION TEMPLATE 7

III CHANNEL SYSTEM AUDIT 9

IV KEY FINDINGS 13

CHAPTER 4: CHANNEL STRATEGY’S PROPOSAL 15

I NEW CHANNEL STRUCTURE 15

II CHANNEL GAPS CLOSING 16

CHAPTER 5: CONCLUSING 17

REFERENCE 18

CHAPTER 1: EXCUTIVE SUMMARY

Aquafina is a leading brand in the bottled water industry and has adopted several marketing channel strategies to reach its target audience The brand has a strong distribution network including direct and indirect channels Aquafina uses a pull strategy to reach its customer base and create awareness through advertising, in-store promotions, and online marketing.Aquafina's direct distribution network includes selling products directly to retailers, supermarkets and convenience stores This brand has established partnerships with several major retail chains, making it easy for customers to access its products

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

Aquafina's marketing strategy also involves experiential marketing, including sponsorship

of sporting events, concerts and fashion shows This approach helps brands connect with their target audience and build brand awareness

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

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

VISION

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

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

Leave a positive image and impact

MISSION

 For Customers

By being the best possible partner, driving game-changing innovation and delivering a level

of growth unmatched in our industry

 For Associates and Communities

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

II ABOUT THE PRODUCT

Picture 2.2.1: Aquafina’s 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 Afterthat, the brand was quickly distributed to most countries around the world such as the UnitedStates, 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

Picture 2.2.2: Aquafina’s bottle sizes

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)

Picture 2.3.1: Lavie’s products

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

 Hotline: (+84) 272 3511 801

 Email: VNInfo@laviewater.com

 Website: https://www.laviewater.com/en/nuoc-khoang-la-vie-19l-2

2 VINH HAO

Picture 2.3.2: Vinh Hao’s products

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

 Address: Vĩnh Hảo,, Tuy Phong, Bình Thuận

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

Picture 3.1.1: Aquafina’s current channel structure

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

Bulk bre aking

Assortment

- I'm a soccer player

- Didn't want to stand in line

- Buy a bottle of water

- Whatever brand the seller gives me

- I choose whatever brand

is on sale

Dasani but today it's out

of stock

- Decided to buy Aquafina

- Can line up for a while.

- I often buy bottled waterfor my children to take to school

- I ordered a box of 24 bottles of Aquafina to be delivered

Table 2.1: Service output segmentation template

 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

It could be that individual households buy it for their children to take to school, work(conference meeting), restaurants, or hotels In general, depending on the quantity purchasedand the type of customer, if an individual buys a small quantity (1 bottle), priority will begiven to the nearest locations such as grocery stores Those who buy in large quantities (1box of 24 bottles) will prioritize ordering home delivery

III CHANNEL SYSTEM AUDIT

Picture 3.3.1: Supermarkret’s MT distribution channel

Picture 3.3.2: The density of supermarkets

 The time needed to travel between supermarkets is 15 minutes

 The average density among supermarkets is 3 km

ðWith the scattered coverage of supermarkets, we can see a brief overview of Aquafina's

MT channel in District 1, Ho Chi Minh City

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

To know more precisely about the distribution channel from Manufacturers toSupermarkets, let's go to 9 functions:

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

 Aquafina sponsors the organization of Fashion Week to enhance the company's brand Moreover, they also participates in charity programs: 1,000 barrels of water and "421 event"

Negotiation  They agreed with each other that: When there are defective goods,

the factory will compensate the supermarket for the damaged goods

in the next delivery

 When the Manufacturer does not deliver goods on schedule or with the quality required by the Supermarket, the Manufacturer must

pay a fine equal to 8% of the value of the late or wrongly delivered goods

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

pay for sold goods from 30 to 40 days

Risk

 Price guarantees and returns allowances and after sale service

 Regarding revenue risk, Manufacturers can share risks with Supermarkets by increasing brand promotion and advertising to attract customers

Ordering

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

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

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

to keep the information flow smooth, Aquafina has applied

technology (DMS - Lite) to the distribution channel.

Table 3.1: 9 functions

Table 3.3.1: Efficiency template

ð 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 percentrespectively These percentages not only measure the proportionate value creation but alsosuggest the normative profit shares that each channel should receive Of course the largerproportion the higher normative profit share

IV KEY FINDINGS

1 Service gap analysis template

Segment Spatial Con Waiting/ Bulk break Assortment Major Channel

Or Delivery to home

Table 4.1: Service gap analysis template

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

Bulk breaking

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

Assortment Variety

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

2 Cost gap analysis template

On June 14, 2023, Suntory Pepsico Vietnam (Aquafina parent company) and FPT Software

Ho Chi Minh signed a contract for the DMSLite project (Distributor management system Distribution management system) With main subsystems:

-1 Distribution: Automate the sales process, control distribution activities, 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, promotionalprograms, warehouse assets, information integration and communication and businessreporting systems

ð Using the DMS-Lite project, helps Suntory Pepsico (Owner Company of Aquafina),manage distribution channels more effectively and importantly save costs Reduce COSTGAP to zero

3 Key findings

a Aquafina does not change its packaging for each holiday season or special event.

ðCauses 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)