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TABLE OF CONTENTS ACKNOWLEDGEMENT3 ABBREVIATION4 LIST OF TABLES5 LIST OF CHARTS6 EXECUTIVE SUMMARY7 INTRODUCTION9 1. Rationale:9 2. Research objectives:10 3. Research questions:10 4. Scope of research:11 5. Research methodology:11 6. Structure of thesis:12 CHAPTER 1: THEORETICAL BACKGROUND13 1.1. Overall organization analysis.13 1.1.1. Vision statement13 1.1.2. Mission statement13 1.1.3. Strategy13 1.2. The nature of distribution system.14 1.2.1. Distribution system’s concepts.14 1.2.2. Number of Channel Levels.15 1.2.3. Number of intermediaries.16 1.2.4. The power of distribution channel16 1.2.5. Distribution channel flows.17 1.3. Integrating and managing distribution system.17 1.3.1. Establishing distribution system objectives.19 1.3.2. Distribution system design decision.20 1.3.3. Setting distribution system policy.21 1.3.4. Distribution system management.22 1.3.5. Managing sales forces.26 CHAPTER 2: NKD & NTC DISTRIBUTION SYSTEM ANALYSIS29 2.1. Introducing the NKD and NTC background29 2.1.1. NKD history.29 2.1.2. NKD vision.29 2.1.3. NKD mission.30 2.1.4. NKD Long term objectives.30 2.1.5. NTC history31 2.1.6. NTC vision.31 2.1.7. NTC mission.31 2.1.8. NTC Long term objectives/ Expected position.31 2.2. The design and development of NKD distribution system.32 2.2.1. The design of NKD distribution system.32 2.2.2. NKD distribution system mission.32 2.2.3. NKD distribution system long term objectives.32 2.2.4. The development of NKD distribution system.32 2.2.5. Business department organization structure.33 2.2.6. NKD products categories.34 2.3. The design and development of NTC distribution system.35 2.3.1. The design of NTC distribution system.35 2.3.2. NTC distribution system mission.35 2.3.3. NTC distribution system long term objectives.35 2.3.4. The development of NTC distribution system.35 2.3.5. Business department organization structure.36 2.3.6. NTC products categories.37 2.4. Analysis on distribution system management of NKD and NTC.37 2.4.1. System member management analysis.37 2.4.2. Flows management analysis.44 2.4.3. Conflict management analysis.49 2.4.4. Benefit allocation among system’s member analysis.50 2.4.5. Sales force management analysis.52 2.4.6. Evaluating system results.61 2.4.7. Summarize on NKD and NTC distribution system.68 CHAPTER 3: RESEARCH SUMMARY70 3.1. Other results of the research:70 3.1.1. Products evaluation:70 3.1.2. Selling policies evaluation:72 3.1.3. Sales forces evaluation:73 3.2. Benefits of integration.74 CHAPTER 4: SOLUTIIONS TO INTEGRATE TWO DISTRIBUTION SYSTEMS:76 4.1. Vision, Mission and Objectives of new distribution system:76 4.1.1. Vision:76 4.1.2. Mission:76 4.1.3. Long-term objectives:76 4.2. Solutions to integrate two distribution systems.77 4.2.1. The cooperation between NKD and NTC.77 4.2.2. Channel set up solutions.77 4.2.3. Sales forces management solutions.79 4.2.4. Distributor management solutions.82 4.2.5. Flow management solutions.83 4.2.6. Conflict management solutions.85 4.2.7. Benefit allocation solutions.85 CONCLUSION87 REFERENCES88 EXECUTIVE SUMMARY To carry out the strategic direction of Kinh Do Group in establishing Kinh Do Trading Company, North Kinh Do carried out the integration between NKD and NTC distribution systems together as the initial step. The integration will not only help Kinh Do enhance it bargaining power to retailer which plays an important role in retail industry but also reduce cost of distribution, cost of transportation and management expenses. Kinh Do chose the North market with NKD and NTC as the pilot because it has some advantages such as: at least 70% retailer are the same, the same distribution system structure and the most important thing is they located in the same location, this helps Kinh Do free from ware house problem. Because this is the direction of Kinh Do Group so the author just concentrates on researching whether retailer, distributor support the integration or not, what difficulties retailer, distributor, Kinh Do will face when two distribution systems are integrated together and what are the solutions to solve these problems. These researches helped me to identify the desire, the buying behavior of retailer and distributor and it also helped me to know what difficulties Kinh Do will face and how to solve it. Most of solutions in these researches were proposed by retailer and distributor and obviously it were modified by the author to assure the effectiveness when applying it in real condition. In order to find optimal solutions and modified solutions in the research of retailer and distributor, the author had carried some in-depth interviews with managers of NKD and NTC. In these interviews the author had raised the problems that retailer and distributor had raised to ask the solutions from managers. With highly educated and experienced people the solutions that gave out by managers play an important role in my thesis. After the in-depth interview carried the author finalized solutions and discussed with Board of Director of NKD and NTC to take the approval. Actually, these solutions will be applied when the integration carried out. The below are some main solutions: 1.Unifying the management of the new distribution system by integrate North Tribeco distribution system to North Kinh Do distribution system. 2.Set up three main channels to distribute deeper and widely. 3.Salesmen should be shifted to distributor to enhance their responsibilities. 4.Training, recruiting and evaluating sales forces, distributor should be changed to enhance their capabilities and strength the relationship with company. 5.The policy for distributor must be changed to improve their profit and enhance the relationship with Company. INTRODUCTION 1.Rationale: The development of domestic companies in producing and distributing thank to the development of security market made the competition in retail industry increasingly. Furthermore, the opening of retail market policy of the Government on the 1st of January 2009 made the competition become fiercer. The competition happen in many aspects such as: product quality, pricing, marketing campaign….but the most important one in retail industry is location – with the current situation of Vietnam now is retailer (point of sale which is opened by the location owner). In retail industry, the definition of WAR is War at Retailer, this definition proves that the most fierce competition happen at retailer where all producers want to penetrate and occupy as large space as possible. In this competition which producer has more bargain power to retailer will has an advantage in occupy big scale in sales and large space in displaying products. Thus, all producers now try to increase their bargaining power to retailer by supplying wide range of products, enhancing services, setting good policies to bring good profit to retailer. Aware of that Kinh Do group set out the direction of enhancing the bargaining power to retailer by integrating some distribution systems together. This is the initial step to form Kinh Do Trading Joint stock company which is not only distributing Kinh Do group products but trading some other product categories also. The reasons for Kinh Do to do that is: -Kinh Do has some subsidiaries that produce Fast Moving Consumer Goods (FMCG) products such as: NKD produces confectionery, Tribeco produces beverage, Kido’s produces ice-cream. -Kinh Do is the strategic partner of Nutifood a milk producing company. -Kinh Do distribution system is considered as one of professional biggest system in FMCG in Vietnam. -All of these products (confectionery, beverage, milk and ice-cream) are distributed to at least 70% the same retailers; this make Kinh Do does the integration conveniently. -North Kinh Do Food Processing Joint Stock Company (NKD) and North Tribeco Joint Stock Company (NTC) located in the same place is the most important reason why Kinh Do chose the North market as pilot market in integrating distribution systems together because Kinh Do does not solve the warehouse problem anymore. All of the above reasons led me to choose topic “Solutions for integrating the distribution systems of Kinh Do food JSC and Tribeco JSC” to complete my MBA course and fulfill my responsibility at NKD. Choosing this topic helped me to systematize my knowledge and practically contribute to my company. Because this is a strategic direction of Kinh Do group so in this thesis the solutions were formulated in general and aim to solve almost all problems and requirements of the integration. 2.Research objectives: In order to know the evaluation of retailer, distributor and find out the challenges when the integrating happen, in this thesis the author focused on the following objectives: •Theoretical summary on integrating the distribution channels and the requirements of integration. •Current situation analysis of distribution system of NKD and NTC. •Difficulties and challenges when integrating two systems together. •Solutions for integrating the distribution system of NKD and distribution system of NTC. 3.Research questions: To achieve the research objectives this research has to answer these questions: •What requirements Kinh Do should meet when doing the integration? •What difficulties Kinh Do will face when doing the integration? •How to integrating the two distribution systems together to meet with the needs of the market in a short term and long term also? 4.Scope of research: The integration is related to distributor, retailer and the sales forces only, so the research just focuses on: •The evaluation on distribution system of NKD and NTC. •Retailer, distributor and managers of NKD, NTC on how to do the integration. •All the data of recent three years: 2006, 2007, 2008. •The north market only. 5.Research methodology: 5.1.Collecting data. •Secondary data: Secondary data has been collected by qualitative method mainly base on company’s report, news paper, internet, magazine, from formal publication of Vietnam General Statistic Office, information from thesis of others students. •Primary data: -Questionnaires: The author has applied questionnaire survey to collect information from retailers, distributors who had given their opinion about the existing distribution system advantages and disadvantages, comparing the existing system to others, forecast the trend of distribution system in the future, giving their ideas about the challenging and difficulties when two distribution systems integrated together. Because of time limitation, Author had conducted 200 questionnaires for retailers in which 100 for Hanoi and 100 for provinces, 60 questionnaires for 90 distributors. -The in-depth interview: After conducting questionnaire method and process the answer, the author has applied in-depth interview method to collect the information that the questionnaire method did not supply enough. By using this method the question designed for the in-depth interview were base on the problem/ issues that questionnaire method couldn’t solve. In-depth interview applied to some interviewees such as ASM of NKD, Chief of System Department of NKD, ASM and SM of NTC. 5.2.Data analyzing method. The quantitative and qualitative methods were both used for analyzing data. The Author used Excel, SPSS software to process data. 6.Structure of thesis: The main body of this thesis is divided into four chapters as following: Chapter 2: Theoretical background. Chapter 2: NKD and NTC distribution system analysis Chapter 3: Research summary. Chapter 4: Solutions to integrate two distribution systems. CHAPTER 1: THEORETICAL BACKGROUND 1.1.Overall organization analysis. Knowing an organization is a good or not good one, people normally not only base on the result that company has gotten but also look at the vision statement, mission statement and the strategies of that organization. These are the main factors which reflect that organization will have a good perspective or not. 1.1.1.Vision statement Vision statement of an organization is used to answer the question “what do we want to become?” Vision statement normally is the long term objectives and it becomes the foundation for all operations of that organization. Developing vision statement is the first step in the strategy formulation. Vision statement normally is a single sentence and it is the direction for the organization to follow. 1.1.2.Mission statement Mission statements are enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of a firm’s operations in product and market terms. It addresses the basic question that faces all the strategists “what is our business?” Mission statement includes of not only the nature and scope of present operations but also the future attractiveness of the market. Thus mission statement is the foundation for setting up the priorities, objectives, strategies, plans. It is the starting point for designing the organization structure, managerial competency…. 1.1.3.Strategy 1.1.3.1.Strategy definition Strategy is the mean of achieving objectives. It answers the questions how to make the mission statements or long term objectives come true. In generally it is the step of achieving long term objectives. Business strategy may include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint venture. According to Fred r. David there are three main strategies: Differentiation, Cost leadership and Focus. 1.1.3.2.Strategic objectives Strategic objectives are used to concretize the mission statement. They show that how the organization can fulfill the mission and vision. According to Gregory G. Dess from University of Texas at Dallas, for Objectives to be meaningful, they need to satisfy the SMART rule, they are: •Specific: This provides a clear massage as to what need to be accomplished •Measurable: There must be at least one indicator that measure progress against fulfilling the objective. •Appropriate/ Achievable: It must be consistent with the vision and mission of organization. •Realistic: It must be achievable target given the organization’s capabilities and opportunities in the environment. In essence, it must be challenging but doable. •Timely: There needs to be a time frame for finishing the objectives. 1.2.The nature of distribution system. 1.2.1.Distribution system’s concepts. Distribution systems are behind every product and service that consumers and business buyers purchase everywhere. Usually, it’s a combination of organizations or people specializing in manufacturing, wholesaling, retailing sales forces and logistic tools (transportation, ware house…). In this thesis the author just concentrate on one main part of distribution system only that is distribution channel because two companies are located in the same location so the logistic issues need not to be analyzed any more. Channel is a group of points of purchase that satisfy the same consumer/ shopper needs or requirement. (1) “Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption” (2). In the reality interdependent organizations can be a private business, joint stock companies especially in Vietnam is family businesses. This concept shows that a distribution channel cannot be one unit doing its best in the market place but it must have many entities to do the job of distribution and each entity depends on the others to do their job. This definition also mentions that distribution is a process and it takes time to accomplish. 1.2.2.Number of Channel Levels. Distribution channel can be characterized by the number of channel levels, the length of the channel depend on the types of product or services and the strategy of the producer. A zero-level channel (also called a direct marketing channel) is a channel without any intermediary in this case the producers sell their products or services directly to the end user. The major ways of zero-level channel are door-to-door, mail order, TV selling and producer owned stores. A one-level channel contains one intermediary, such as retailer. A two-level channel contains two intermediaries, typically a wholesaler and a retailer. A three-level channel contains three intermediaries, typically a distributor, a wholesaler and a retailer as the exhibit below. Figure 1.1: Distribution channel Source: from Marketing Management – Philip Kotler 1996 Using zero-level channel producer will face a problem in recruiting and managing a big amount of sales people. Thus only products with complicated technology or very high price will apply this model such as: air plane, hydro power…. One – level model applied when products need high specialized skill of sales people to consult the end user accuracy such as premium cosmetic, electronic products…. Two and three level channel is normally applied for consumer products which are easy to use and need to be distributed as broadly as possible. 1.2.3.Number of intermediaries. After determining the level of the distribution channel the manufacturer have to decide on the number of middlemen to use at each channel level. Exclusive Distribution: It involves severely limiting the number of middlemen handling the company goods or services. It applies when the producer wants to maintain a great deal of control over the service level and services outputs offered by the resellers. Selective Distribution: It involves the use of more than a few but less than all of the intermediaries who are willing to carry a particular product. Intensive Distribution: It is characterized by placing the product in as many outlets as possible Depend on the product and company strategy the number of intermediary will be chosen and formed the types of distribution channel. 1.2.4.The power of distribution channel “Power is the ability of one channel member (A) to get another channel member (B) to do something which, otherwise, would not have done” (3). Once one channel member can use it power to force another to do something but not receive any compensation for it, by this way the relationship will be eroded gradually. But the judicious way of using power will create the good relationship among channel members and they will try the best to accomplish their duties even though sometime it doesn’t make profit. Five sources of power: -Reward power: benefit given to others. -Coercive power: punishing others for failure. -Expert power: based on the target perception that the influence has special knowledge, useful expertise that the target doesn’t possess. -Legitimate power: stems from the target company’s sense that it is in some way obligated to comply with the request of the influence. -Referent power exist when B view A as a standard of reference and therefore wishes to identify publicly with A. It takes time to create power naturally and the smart way of using power is not forcing but influencing others to do thing that we want. .....
TABLE OF CONTENTS Description/ Forms 37 Selecting 37 Sales department 37 BM.KD.01.01: Distributor set up proposal 37 Sales dept./ Sales Supervisor 37 BM.KD.01.02: List of candidates 37 Sales department 37 BM.KD.01.03: Candidate information form .37 Sales Manager 37 BM.KD.01.03: 37 Training 37 ASM/ SS 37 BM.KD.01.04: 37 Trial contract 37 Evaluating 37 ASM/SS 37 BM.KD.01.05: 37 Evaluation form 37 Sales Manager 37 BM.KD.01.06: Distribution contract 37 Mar department 37 BM.MK.01.03: Customer feedback form 37 Appendix 89 DISTRIBUTOR QUESTIONNAIRES 89 (For Kinh Do Distributor) 89 Appendix 95 QUESTIONNAIRES 95 (for retailer) 95 ACKNOWLEDGEMENT In order to finish this thesis and E-MBA course also, I have received a lot of support from many people I would like to take this opportunity to thank all those who in many ways have helped me complete the Master program I want to express my deeply thanks for my family, especially for my wife who had found the course on newspaper and encouraged me to enrolled It is impossible for me to finish this course without her helps and encouraging Besides that the obedient of my lovely daughters has created an ideal condition for me to finish the thesis I would like to thank to Associate Prof … Ph.D who has taught strategic management subject and also supervise me to conduct this thesis I admire his knowledge and devotion for me I would like to thank all my professor of EMBA course, who have trained and help me to improve my knowledge on business management And in fact is that I have applied it for my work effectively I also have received supporting from experts, interviewees, coworkers, and class-mates I would like to express my sincere thanks to them who have worked hard with me during the thesis written time ABBREVIATION NKD North Kinh Do food processing joint stock company NTC North Tribeco Joint stock company BM Business Manager SM Sales Manager ASM Area Sales Manager SD Sales development SA Sales Advisor DSA Distributor Sales Administration POSM Point of Sales Material ATL Above the line BTL Below the line GT General Trade MT Modern trade KA Key Account SYS System MAR Marketing Admin Administration PR FMCG Public relation Fast Moving Consumer Goods LIST OF TABLES Figure 1.1: Distribution channel Figure 1.2: Distribution channel Table 2.1: The development of NKD distribution system Table 2.1: NKD product categories Table 2.3: The development of NTC distribution system Table 2.4: Product categories of NTC Table 2.5: Distributor training courses of NKD Table 2.6: Distributor motivation factors of NKD Table 2.7: Distributor evaluation factors of NKD Table 2.8: Record of distributor violation in 2008 of NKD Table 2.9: Daily selling route of sales advisor of NKD Table 2.10: Daily selling route of NTC Table 2.11: NKD policies for channel members Table 2.12: Policies for distributor Table 2.13: NKD policies for sales forces Table 2.14: NKD policies for SD & ASM Table 2.15: NTC Policies for sales forces Table 2.16: Net sales and coverage of NKD Table 3.1: Research results on products Table 3.2: Research results on policy Table 3.3: Research results on sales forces Table 4.1: Criteria for recruiting sales forces Table 4.2: Policies for Sales Advisor Table 4.3: Policies for SD and ASM Table 4.4: Criteria for evaluating distributor LIST OF CHARTS Chart 2.1: Business department organization chart of NKD Chart 2.2: Organization chart of Business department of NTC Chart 2.3: Distributor set up process of NKD Chart 2.4: NKD’s organization chart for big territory Chart 2.5: NKD’s organization chart for small territory Chart 2.6: Recruitment process of NKD Chart 2.7: Organization chart of sales department of NTC Chart 2.8: Distribution cost structure of NKD in 2008 Chart 2.9: Research results Chart 2.10: Distribution cost structure of NTC in 2008 Chart 2.11: Channel member satisfying research results Chart 3.1: Research results on integration Chart 3.2: Benefit of integration Chart 4.1: Organization chart of Sales department EXECUTIVE SUMMARY To carry out the strategic direction of Kinh Do Group in establishing Kinh Do Trading Company, North Kinh Do carried out the integration between NKD and NTC distribution systems together as the initial step The integration will not only help Kinh Do enhance it bargaining power to retailer which plays an important role in retail industry but also reduce cost of distribution, cost of transportation and management expenses Kinh Do chose the North market with NKD and NTC as the pilot because it has some advantages such as: at least 70% retailer are the same, the same distribution system structure and the most important thing is they located in the same location, this helps Kinh Do free from ware house problem Because this is the direction of Kinh Do Group so the author just concentrates on researching whether retailer, distributor support the integration or not, what difficulties retailer, distributor, Kinh Do will face when two distribution systems are integrated together and what are the solutions to solve these problems These researches helped me to identify the desire, the buying behavior of retailer and distributor and it also helped me to know what difficulties Kinh Do will face and how to solve it Most of solutions in these researches were proposed by retailer and distributor and obviously it were modified by the author to assure the effectiveness when applying it in real condition In order to find optimal solutions and modified solutions in the research of retailer and distributor, the author had carried some in-depth interviews with managers of NKD and NTC In these interviews the author had raised the problems that retailer and distributor had raised to ask the solutions from managers With highly educated and experienced people the solutions that gave out by managers play an important role in my thesis After the in-depth interview carried the author finalized solutions and discussed with Board of Director of NKD and NTC to take the approval Actually, these solutions will be applied when the integration carried out The below are some main solutions: Unifying the management of the new distribution system by integrate North Tribeco distribution system to North Kinh Do distribution system Set up three main channels to distribute deeper and widely Salesmen should be shifted to distributor to enhance their responsibilities Training, recruiting and evaluating sales forces, distributor should be changed to enhance their capabilities and strength the relationship with company The policy for distributor must be changed to improve their profit and enhance the relationship with Company INTRODUCTION Rationale: The development of domestic companies in producing and distributing thank to the development of security market made the competition in retail industry increasingly Furthermore, the opening of retail market policy of the Government on the 1st of January 2009 made the competition become fiercer The competition happen in many aspects such as: product quality, pricing, marketing campaign….but the most important one in retail industry is location – with the current situation of Vietnam now is retailer (point of sale which is opened by the location owner) In retail industry, the definition of WAR is War at Retailer, this definition proves that the most fierce competition happen at retailer where all producers want to penetrate and occupy as large space as possible In this competition which producer has more bargain power to retailer will has an advantage in occupy big scale in sales and large space in displaying products Thus, all producers now try to increase their bargaining power to retailer by supplying wide range of products, enhancing services, setting good policies to bring good profit to retailer Aware of that Kinh Do group set out the direction of enhancing the bargaining power to retailer by integrating some distribution systems together This is the initial step to form Kinh Do Trading Joint stock company which is not only distributing Kinh Do group products but trading some other product categories also The reasons for Kinh Do to that is: - Kinh Do has some subsidiaries that produce Fast Moving Consumer Goods (FMCG) products such as: NKD produces confectionery, Tribeco produces beverage, Kido’s produces ice-cream - Kinh Do is the strategic partner of Nutifood a milk producing company - Kinh Do distribution system is considered as one of professional biggest system in FMCG in Vietnam - All of these products (confectionery, beverage, milk and ice-cream) are distributed to at least 70% the same retailers; this make Kinh Do does the integration conveniently - North Kinh Do Food Processing Joint Stock Company (NKD) and North Tribeco Joint Stock Company (NTC) located in the same place is the most important reason why Kinh Do chose the North market as pilot market in integrating distribution systems together because Kinh Do does not solve the warehouse problem anymore All of the above reasons led me to choose topic “Solutions for integrating the distribution systems of Kinh Do food JSC and Tribeco JSC” to complete my MBA course and fulfill my responsibility at NKD Choosing this topic helped me to systematize my knowledge and practically contribute to my company Because this is a strategic direction of Kinh Do group so in this thesis the solutions were formulated in general and aim to solve almost all problems and requirements of the integration Research objectives: In order to know the evaluation of retailer, distributor and find out the challenges when the integrating happen, in this thesis the author focused on the following objectives: • Theoretical summary on integrating the distribution channels and the requirements of integration • Current situation analysis of distribution system of NKD and NTC • Difficulties and challenges when integrating two systems together • Solutions for integrating the distribution system of NKD and distribution system of NTC Research questions: To achieve the research objectives this research has to answer these questions: • What requirements Kinh Do should meet when doing the integration? • What difficulties Kinh Do will face when doing the integration? 10 • How to integrating the two distribution systems together to meet with the needs of the market in a short term and long term also? Scope of research: The integration is related to distributor, retailer and the sales forces only, so the research just focuses on: • The evaluation on distribution system of NKD and NTC • Retailer, distributor and managers of NKD, NTC on how to the integration • All the data of recent three years: 2006, 2007, 2008 • The north market only Research methodology: 5.1 • Collecting data Secondary data: Secondary data has been collected by qualitative method mainly base on company’s report, news paper, internet, magazine, from formal publication of Vietnam General Statistic Office, information from thesis of others students • Primary data: - Questionnaires: The author has applied questionnaire survey to collect information from retailers, distributors who had given their opinion about the existing distribution system advantages and disadvantages, comparing the existing system to others, forecast the trend of distribution system in the future, giving their ideas about the challenging and difficulties when two distribution systems integrated together Because of time limitation, Author had conducted 200 questionnaires for retailers in which 100 for Hanoi and 100 for provinces, 60 questionnaires for 90 distributors - The in-depth interview: After conducting questionnaire method and process the answer, the author has applied in-depth interview method to collect the information that the questionnaire method did not supply enough By using this method the question designed for the in-depth 90 Q6 What difficulties/ advantages you facing with the present policies: + Advantages: – Human resources: ……………………………………………………………… ……………………………………………………………………………………………………… – Discount: … ……………………………… …………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… – Selling support: …………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Promotion: ……………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Payment: ………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Credit term: ……………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Others: …………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… + Difficulties: – Human resources: …………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… – Discount: …………………………………… …………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… – Selling support: …………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Promotion: ……………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Payment: ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Credit term: ……………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… – Others: …………………………………………………………………………… 91 ……………………………………………………………………………………………… ……………………………………………………………………………………………… Q7 What factors should be changed by Kinh Do to facilitate your business? ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Q8 In your opinion, how about the distribution trend in the future? (How the retail industry will be in the future?) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Q9 With the present distribution system, What opportunities/threats Kinh Do will faces in the future? Opportunities: ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Threats: …………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… F2 KINH DO DISTRIBUTOR EVALUATION ON TRIBECO PRODUCT Q10 What you know about Tribeco company? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Q11 What you know about Tribeco products (product, packaging, quality and price)? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… 92 Q12 How about the coverage, market share of Tribeco in your territory? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Q13 What you know about Tribeco distribution system? (I.e.: selling policy, delivery, credit term…) ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… F3 DISTRIBUTOR EVALUATION ON INTEGRATING DISTRIBUTION SYSTEM OF NKD AND NTC Q14 How is your evaluation when Kinh Do integrates two distribution systems of NKD and NTC together? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Q15 In your opinion what factors should be changed and how it should be changed to make the new distribution system operate effectively: Human resources: + Sales Advisor: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Delivery man: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Sales Development: ……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………… + Sales advisor salary payment: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 93 + Management/ man power allocation: ……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Selling policy: + Discount: … ……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Credit term: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Delivery: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Transportation support: ………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… Defective product/ return: ……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Promotion: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Reward/ target: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Ware house: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Others: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 94 Q1 Should Kinh Do integrate two distribution systems together or not? Should Should not Code Route 01 02 Q17=>finish Q18 Q17 Why you think Kinh Do should integrate? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Q18 Why you think Kinh Do shouldn’t do? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Thank you for your information, wishing you and your family healthy and success 95 Appendix QUESTIONNAIRES (for retailer) Shop owner name: Interviewee: Address: District: Phone number: Interview day: Time of interview: Hello My name is……………………………………….I am a staff of market research company We are doing o research on distribution system Could you please answer some questions? All information will be kept confidentially Q1 Interviewer must look over the shop and ask the interviewee: Q1.a Do you sell Kinh Do product? Q1.b Do you sell Tribeco product? Code Route 01 02 Yes No Note: - If the retailer selling one of two (Kinh Do or Tribeco) STOP the interview If the retailer selling both of it (Kinh Do and Tribeco) CONTINUE the interview F1 Q2 BUSINESS INFORMATION SHOWCARD Q2.a At present what are your main food products? (MA) Q2.b What are the most fast moving ones? (SA) Confectionery Sugar, Milk Ice Cream Beverages Frozen food Others……………………………………… Others……………………………………… Others……………………………………… Q2.a Q2.b 01 02 03 04 05 06 07 08 01 02 03 04 05 06 07 08 96 Q3 SHOWCARD Q3.a What factors you base on to choose products for doing business ?(MA) Q3.b What are the most important?(SA) Good quality Attractive packaging Hygiene Affordable (reasonable price) Requirement of buyer New function products Famous brand name High discount rate High margin Promotion High rate of advertisement Special payment Other………………………………… F2 Q4 Code Route 01 02 03 04 05 06 07 08 09 10 11 12 13 01 02 03 04 05 06 07 08 09 10 11 12 13 RETAILER EVALUATION ON KINH DO What are your opinions about Kinh Do products? – Product: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Packaging: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Quality: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Price: …………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Others: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q5 What are your evaluation/opinion on Kinh Do distribution system? – Distributor: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Sales Development: …………………………………………………………… …………………………………………………………………………………………… 97 – Sales Advisor: ………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q6 What support policy or special offers that Kinh Do/ Kinh Do Distributor have to support your business? Note: Interviewee explain/suggest some main policies: discount rate, delivery, defective product collect, credit term, promotion… …… ……………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q7 Do you satisfy with those policies? Why ? …… ……………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Q8 What advantages/ difficulties you facing with the present policies? + Advantages: – Discount rate: ……………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Delivery: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Defective product collect back: ……………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Credit term: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Promotion: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… 98 + Difficulties: – Discount rate: …………………….………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Delivery: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Defective product collect back: ……………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Credit term: ………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Promotion: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q9 As the position of retailer, what are your expectations of Kinh Do changing to facilitate your business? – Distributor: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Sales Advisor: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Policy: …………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: ……….…………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… ………………… ………………………………………………………………………… 99 F3 Q10 RETAILER EVALUATION ON TRIBECO What are your evaluation/opinion on TRIBECO distribution system? – Distributor: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Sales Development: …………………………………………………………… …………………………………………………………………………………………… ………………… – Sales Advisor: ….…………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q11 What support policy or special offer that TRIBECO/ TRIBECO Distributor have to support your business? Note: Interviewee explain/suggest some main policies: discount rate, delivery, defective product collect, credit term, promotion… …… ……………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q12 Do you satisfy with those policies? Why? …… ……………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Q13 What advantages/ difficulties you facing with the present policies? + Advantages: – Discount rate: ……………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Delivery: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Defective product collect back: ……………………………………………… …………………………………………………………………………………………… 100 …………………………………………………………………………………………… – Credit term: ………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Promotion: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: …………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Difficulties: – Discount rate: ……………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Delivery: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Defective product collect back: ……………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Credit term: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Promotion: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Q14 As the position of retailer, what are your expectations of TRIBECO changing to facilitate your business? – Distributor: ……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Sales Advisor: …………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Policy: …………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… – Other: …….……………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… 101 …………………………………………………………………………………………… …………………………………………………………………………………………… F4 Q16 EVALUATION ON DISTRIBUTION SYSTEM INTEGRATION How is your evaluation when Kinh Do and Tribeco integrate two distribution systems together? (Interviewer explain about the integration: Kinh Do and Tribeco products will be handled by one distributor, one SA.) …… ……………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… …… ……………………………………………………………………………………………… ……………………………………………………………………………………………………… Q17 How the below factors should be changed to make the new distribution system operate effectively? + Distributor: …………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Sales Development: ………………… …………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Sales forces organization: ………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Delivery: …………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Discount rate: ……………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Credit term: ………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Product changing: ………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Promotion: ………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… 102 + Defective product collect back: ….………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… + Other: ……………………………………………………………………………… ………………………………………………………………………………………… ………………….……………………………………………………………………… ………………………………………………………………………………………… Thank you for your information, wishing you and your family healthy and success 103 104 1-32,34-35,37-61,63,65,68-69,71,76- ... because Kinh Do does not solve the warehouse problem anymore All of the above reasons led me to choose topic “Solutions for integrating the distribution systems of Kinh Do food JSC and Tribeco JSC ... effectiveness of the sales force The complexity and the location/dispersion of the market and the complexity and the complementariness of the product line are perhaps the most critical Other factors,... There for the job of the salespeople must change accordingly 1.3.5.3 Training the sales force There are many types of training and depend on the situation of the sales force, the objectives of