FINAL REPORT hải hà COMPANY marketing channel of hải hà

Current distribution channel map of Hai Ha:  In Hanoi, Hai Ha Confectionery Joint Stock Company has 5 warehouses of finished products and 7 warehouses of production materials..  Direc

UNIVERSITY OF ECONOMICS AND FINANCE

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FINAL REPORT: HẢI HÀ COMPANY

LECTURER: NGUYỄN THỊ NGỌC DUNG

TABLE OF CONTENTS:

I INTRODUCE

1 About Hai Ha Company (HAIHACO)

2 Product lines

3 Hai Ha’s competitors

4 Current distribution system

II MARKETING CHANNEL SYSTEM ANALYSIS:

1 Define service output and categorize end-users: Service output demand of end-users and segmentation

2 Marketing channel of Hải Hà:

2.1 Current distribution channel diagram and channel members

2.2 Functions of channel members

2.3 Efficiency template

III DEFINE GAP ANALYSIS:

1 Conclusion Service gap

2 Conclusion Cost gap

3 Conclusion of common problems faced by distribution channels

IV MAKE OR BUY DECISION

1 What percentage of the distribution channel Hai Ha has – how much % Buy or both ?

V STRATEGIC PLAN:

1 Strategic for problem 1

2 Strategic for problem 2

3 Strategic for problem 3

VI REFERENCE (according to APA standard)

I INTRODUCE

1 About company

● Hai Ha Confectionery Joint Stock Company (HAIHACO) is one of the largest

confectionery manufacturers in Vietnam

● The company was established in 1960, has spent more than 50 years of striving and growing up The company has continuously grown, accumulated a lot of experience in production and business

● The predecessor was a small factory with a capacity of 2000 tons/year Today, the

company has developed into Hai Ha Confectionery Joint Stock Company with a

production scale of up to 20,000 tons/year

● Hai Ha Confectionery Joint Stock Company is the first enterprise in the confectionery industry to be certified with the "Hazard Analysis and Critical Control Points" (HACCP) system in Vietnam This demonstrates the commitment of business leaders to ensure food safety for consumers' health

● Main business activities include:

- Producing and trading in confectionery and food processing

- Import and export business: raw materials, machinery and equipment, specialized products, consumer goods and other goods

- Investing in construction, leasing offices, houses, and commercial centers

2 Product lines

3 Competitors

- This is a big competitor of Hai Ha in the North market, with an investment capital of over VND 60 billion and an annual output of about 6000 tons In recent years, Hai Chau company has paid great attention to the issue of diversification and improvement of product quality The company has invested 5 billion dong to import the production line of chocolate-covered sponge cake from Germany and the Netherlands, and at the same time, innovated the management method and reorganized the distribution network across the country Main products are fresh cakes, savory cakes, snack cakes, …

- This company is considered as the main competitor of Hai Ha Company in the Mien Nam market Bibica confectionery company has imported a series of equipment from France, Italy, producing many kinds of chocolate confectionery products, hard candies,

marshmallows, Jelly, etc The competition is quite strong with Hai Ha's products in terms

of product price Bibica confectionery companies also have the advantage of producing sugar, which is the main raw material for making confectionery, so the input price of Bibica is lower than that of Hai Ha On the other hand, these companies are not taxed on sugar products used to make confectionery Therefore, the price of Bibica is lower

4 Current distribution system:

- HAIHACO has 03 production factories with modern production lines, applying the ISO

22000 quality management system to ensure the standards of food hygiene and safety, protecting the health of consumers and having a capacity up to 20,000 tons of

confectionery products per year - Hai Ha Confectionery Factory is located in VSIP Bac Ninh Industrial Park This is the new and most modern factory of HAIHACO, equipped with many modern production lines along with a team of skilled workers, a large

warehouse, the factory fully meets the criteria of green production clean, beautiful, safe, fire prevention and environmental protection - Hai Ha 1 Confectionery Factory is located at Lac Long Quan Street - Tien Cat Ward - Viet Tri City - Phu Tho - Hai Ha 2 Confectionery Factory is located at No 3 Thanh Binh Street - Ha Long Ward - Nam Dinh City - Nam Dinh

- The company has 02 dependent accounting branches in Da Nang and Ho Chi Minh to serve the consumption of the Company's products:

 Da Nang branch is located at 134 Phan Thanh - Thac Gian Ward - Thanh Khe District - Da Nang With the function of serving the consumption of the Company's products in the Central and Central Highlands markets

 Ho Chi Minh branch is headquartered at Lot 27 Tan Tao Industrial Park, Tan Tao Street - Tan Tao A Ward - Binh Tan District - Ho Chi Minh City With the function of serving the consumption of the Company's products

in the Southern market

II MARKETING CHANNEL SYSTEM ANALYSIS

1 Define service output and segmentation:

2 Marketing channel of Hải Hà:

2.1 Current distribution channel map of Hai Ha:

 In Hanoi, Hai Ha Confectionery Joint Stock Company has 5 warehouses of finished products and 7 warehouses of production materials

 The distribution channel structure of Hai Ha:

Segment

name/

descriptor

Bulk - breaking

Spatial convenience

Delivery / waiting time

MEDIUM

“ I want the product I ordered to be delivered the same day or

as soon as possible”

MEDIUM

“ I can choose from a variety of brands in terms of weight, design, flavor and price of each product to suit my own purposes.”

HIGH

“I want not only

to buy the product, but also

to have a great experience in terms of sales service and promotions when buying.”

HIGH

“I would like to know more about the brand's promotions or new product launches.”

HIGH

“I want the purchase and payment process to be quick.”

HIGH

“I accidentally saw the

packaging and design, so I decided to buy”

LOW

 Direct channel: Manufacturers distribute directly to consumers through the company's

store form (Kotobuki) or order directly through e-commerce platforms such as Tik Tok shop, official Shopee by Hai Ha

 Tie 1 channel: In this channel, the company will distribute products to big supermarkets

such as Metro, bigC, G7, Supermarkets will directly place orders with the company through staff in charge of the area management company

 Tie 2 channel: This is the main channel used, the distribution of products is done through

wholesalers to retailers and then to consumers Products are transported from the factory warehouse via trucks to dealers in the provinces after confirming the order from the market staff in charge

2.2 Channel functions

Physical Possession - Hai Ha currently has

3 production factories located in Bac Ninh, Viet Tri and Nam

- Retailers when ordering from wholesalers, the shipping cost will

Customers buy Hai Ha's products at retail points on the market or order through the

Dinh Products will be transported to the warehouse and delivered to distributors In addition, Hai Ha company will receive orders directly from customers through the company's official e-commerce platforms, Shopee and Tiktok Shop

be paid by the wholesaler

- For large supermarkets, when ordering directly in Hai Ha, the shipping fee will be calculated according to the contract committed

by the two parties

- In Hanoi area, the company stipulates the payment rate for transportation

at supermarkets:

2800 VND/carton

by motorbike, 1000 VND/carton by the company's

transport vehicle

official e-commerce platform on Shopee, Tiktok shop

purchased by the distributor and owns the goods

at the warehouse

Promotion - Hai Ha has printed

advertisements on the company's trucks, but

- Major retailers (supermarkets, Hai Ha's Kotobuki

-For customers who buy Hai Ha

confectionery with an

the paint layers are old and peeling, no longer attracting attention, even if they do not update the company's new products

- Hai Ha's product incentives on e-commerce platforms for customers

- Dealers who achieve quarterly sales will receive additional trade discounts from 0.3% - 0.7% of sales

- Hai Ha has preferential policies for retailers:

chain stores, ) have preferential programs for customers on the occasion of festivals, Tet

- Products will be displayed at the checkout counter every time there is

a promotion

invoice of over 7 million VND, they will receive a 2% discount

on the total bill

Negotiation - Based on contract

terms signed between manufacturers and wholesalers and between wholesalers and retailers In the contract between the

Retailers, if fully implementing the standards on display output depending on each type of item, will

be rewarded with a

wholesaler and the manufacturer that stipulates the discount rate of the

manufacturer to the wholesaler, the wholesaler must fulfill the obligation to sell the product to satisfy the set amount

- The contract is signed for a period of 1 year,

so when the contract is still valid, either party who breaks the contract will have to bear full responsibility and be fined

certain level, such as: calculating points, bonus money, discounts

on each box, gifts

gifts, If retailers

do not fulfill their commitment to display, the market staff who control the company's area will, if discovered, cut all bonuses as promised in advance

Financing - Hai Ha helps agents

by allowing them to pay late for a shipment (pillow debt)

- For agents that pay immediately to receive goods, in some cases the maximum debt level does not exceed

120 million If the old

- Wholesalers pay for the display at retailers

- Dealers and supermarkets, and large-scale selling points are supported with

- When buying in bulk, there will be a discount from the retailer

compared to buying single or retail

debt is more than 15 days old and the agent has not paid, it is not allowed to pick up the goods

racks and shelves to display products, signs and

banners of new products

Risking - Whether the company

gives priority to the agent returning the goods, the company must determine if this

is really a difficult product to sell on the market If it's hard to sell on the market, allow them to return 100% of the original value

- During transportation, loading and unloading if the goods are broken or damaged If it is the fault of the bad shipping, the company has to bear the whole cost, or if it is the fault

of the distributors, they bear the loss caused by

- In the event of

an error on the part of the wholesaler, the wholesaler bears the full cost of return shipping

- Retailer if selling slowly, products in stock if near term can be exchanged

at the distributor

- Less risk because reaching the end-users all have 3rd party intermediaries, which are responsible e-commerce platforms

them

Ordering - Wholesalers place

orders via email, fax with the Sales Supervisor (SS) in charge Purchase orders are forwarded to Sales Admin (SA) and Distribution

Management System (DMS)

- Or call the Company directly at: 043 621

0074 to order

Dealers order directly with the local market staff Orders are shipped to distributors

- Enter goods in batches and notify the quantity to be imported before

Retailers do not cost to order

Consumers buy goods online on Shopee, Tik Tok Shop or wholesale and retail points

Payment - The company makes

payments through banks

Payment fee according

to bank policy

Do not accept debt

- The company makes payments through banks

Payment fee according to bank policy

- Agents pay immediately upon receipt of goods, in some cases, the maximum debt level does not

Cash - No payment fees

Debit/Bank Transfer by Credit Card

Payment fee according to the bank's policy

Allow customers to pay by cash or debit/credit card, bank transfer, e-wallets…

exceed 120 million

Information

Sharing

- Information for retailers about promotions

- But still limited in collecting customer and market

information from channel members

Receive customer feedback directly

or from feedback

on Shopee, Lazada, Tiki,

Customers respond directly to sellers at retail outlets or through Hai Ha's official

communication channels such as HaiHaCo fanpage, Shopee e-commerce platforms, Tiktok shop, when there is a problem

2.3 Efficiency template

Importance Weights for Functions

Proportional Function Performance of Channel Member

Total

Cost (%)

Benefit potential

Final weight (%)

Hai Ha Retailer End-user

Physical

possession

3.2.1 Identify channel gaps:

Service gap:

Segment Bulk

breaking

Spatial Convenience

Delivery/

Waiting time

Assortment/

Variety

Customer Service

Currently, Hai Ha's products are sold in small units of 1 bag/small box or in kilograms, in

batches and cartons at retailers and the official e-commerce platform, creating favorable

conditions for the purchase and sale of goods Buy according to the customer's large/small

quantity

2 Spatial convenience:

Hai Ha is currently present on two e-commerce platforms, Shopee and Tiktok shop, to serve

customers' online orders As well as the traditional distribution channel network at agents and

retailers Hai Ha products also appear in modern channels such as large supermarket systems:

Winmart, BigC, MMMarket, Coop mart, Lanchi,

However, the product is still limited at other large e-commerce floors (Lazada, Tiki, ) and

convenience stores (Circle K, 7 Eleven, Ministop, ) The distribution system of wholesalers in

the Central and the South is also not high In which, it is mainly concentrated in the Northern provinces (212 agents), the Central region (31 agents) and the South (27 agents) Therefore, customers in these two regions are restricted from making quick and convenient purchases

because there will be few stores selling this product

3 Delivery/ Waiting Time:

When buying Hai Ha products on Shopee, they will be shipped in one to two days for customers

in the HCM City or inner Hanoi area (Hai Ha has 2 Shopee channels in Hanoi and Ho Chi Minh City) ) and three to five days for orders in other neighboring provinces

4 Assortment/ Variety:

Hai Ha is considered as one of the largest confectionery brands in Vietnam, therefore, Hai Ha has a wide variety of product lines such as: Cookies and Cracker, Moon cake, hard candies, soft candies, Fresh cakes and Tet jam, many different flavors such as Chip Chip marshmallows with traditional flavors, synthetic fruit flavors,

However, at present, there are many other brands in the FMCG industry with fierce competition, quickly grasping customer tastes, so customers also have a variety of choices

5 Customer service:

Currently, the customer response rate on Hai Ha's e-commerce platform is quite high (95%)

However, with the fierce competition of the FMCG industry, Hai Ha still does not have customer care policies

48% of FMCG brands participating in the survey (According to Research by Eventtrack),

confirm that Experiential Marketing activities aimed at personalizing customer experience bring high ROI, at 3: 1 to 5:1 Currently, the stores that sell Hai Ha products have not had a

breakthrough in maximizing the customer experience Usually still in brick-and-mortar stores,