PROJECT GRADUATION THESIS: BUILDING DISTRIBUTION CHANNELS OF PRODUCT LINES OF MEIJI FOR MAGIC WAVE GROUP IN VIETNAM MARKET June 2024 UNIVERSITE DE NICE SOPHIA ANTIPOLIS THANG LONG UNI
OVERVIEW OF MAGIC WAVE GROUP JOINT STOCK COMPANY
An Introduction of Magic Wave Group Joint Stock Company
Established in 2000 with an investment reaching several hundred billion, Magic Wave Group Joint Stock Company has emerged as a prominent player in Vietnam, boasting a comprehensive network across provinces and cities nationwide Leveraging its potential and strengths, the company aims to become a leading economic group in Vietnam, focusing on finance, distribution systems, technology, and human resources.
Enterprise name in foreign language: MAGIC WAVE GROUP JOINT STOCK COMPANY
Enterprise short name: MAGIC WAVE GROUP.,JSC
Enterprise type: Joint Stock Company
Representative first name: ĐẶNG VIỆT BÁCH
Head office address: A1 P1, Truong Dinh District Collective - Tuong Mai
Registration & managed by Hoang Mai District Tax Department
Website www.magicwave.com.vn
Email Info@magicwave.com.vn
Thư viện ĐH Thăng Long
Serial Tax code Name Address
Branch of Magic Wave Group JSC in Ho Chi Minh City
13, Tan Bind District, Ho Chi Minh City
Branch of Magic Wave Group.JSC in Da Nang
21 Ha Huy Tap Street, Hai Chau District, Da Nang
Branch of Magic Wave Group.JSC in Hung Yen
206 Industrial Pho Noi A, Lac Hong, Hung Yen
Wave Group.JSC in Can Tho
No 320/25 Tran Ngoc Que, Ninh Kieu District, Can Tho
Vision of Magic Wave Group Joint Stock Company
We prioritize listening to our customers and providing exceptional service through our dedicated, highly qualified, and experienced team Our modern infrastructure and advanced technology ensure the delivery of high-quality services while maintaining a strong commitment to environmental protection.
- Believe that the company will bring the highest satisfaction to all our partners, customers as well as joint work when using branded products Magic Wave Group JSC
- Become a strong distributor in Vietnam in the demand for high-end consumer goods remains weak
- Continue becoming representative of many famous brands in the world in Vietnam
- Constantly develop and improve the system of quality standards of products and services for the Magic Wave Group.JSC
- Always remain continuous growth of above 40% per year
- Business development activities associated with social security.
Core values of Magic Wave Group Joint Stock Company
Honesty is essential for establishing trust and a strong reputation with partners, customers, and suppliers At Magic Wave Group JSC, we adhere to professional ethics in every action taken by our officials and employees, ensuring integrity in all our interactions.
- Innovation: Youth and creativity allow us to constantly improve themselves
- 3 - and maintain and develop good relations with everyone, innovative ideas always help us refresh ourselves and work solving performance better
At Magic Wave Group JSC, we recognize that each individual plays a crucial role in our professional team We believe that the excellence and professionalism of every team member are essential for building a strong foundation for our success.
- The satisfaction of all partners, customers come to us: We would like to serve our best and listening to all your comments
1.4 Magic Wave Group Joint Stock Company main activities
Table 2 Main activities according to the economic system of Vietnam
Code Name lines of business
2824 Manufacturing, mining machines, and construction
2392 Production of building materials from clay
Details: Manufacturing and trading of building materials
5229 Activities other support services related to transportation
Details: Business Services Export freight forwarding and import Customs clearance service agents selling airline tickets
4669 Other specialized wholesale where ungraded
We specialize in the wholesale of chemicals for various industries, excluding state-banned substances Our offerings include raw materials and the production of household goods, as well as industrial plastic nuts Additionally, we provide wholesale items related to industrial glass fibers and engage in the trading of telecommunication equipment.
4711 Food retail, food, beverages, tobacco and pipe tobacco accounts for a large proportion in the general trading stores
5610 Restaurant and catering services for mobile service
Details: Business restaurants and beverage (excluding trading bars)
5630 Services for drinks (Excluding trading bars);
Details: Production of consumer goods and industrial glass fibers
3312 Repair of machinery and equipment
(For these business conditions, enterprise business just as qualified as prescribed by law)
4290 Construction of other civil engineering projects
Details: Construction of the civil works and industrial
Thư viện ĐH Thăng Long
Details: leveling, foundation, and civil engineering industry
4322 Installation of supply, drainage, heating, and air conditioning
4329 Installation of other building systems
The installation of specialized equipment systems in construction and civil engineering encompasses various elements, including elevators, escalators, automatic doors, lighting systems, and suction systems Additionally, services offered include consulting, equipment purchasing, installation, and technology transfer in areas such as construction, irrigation, and hydropower.
Details: Purchase agent, selling agent, consigned goods
4659 Wholesale of machinery, equipment and other machine parts
We specialize in the wholesale purchase of machinery, equipment, and specialized technical construction tools Our offerings include refrigeration equipment and components, as well as a wide range of furniture and household items Additionally, we provide wholesale goods such as civil and electrical appliance components, electronic components and products, and machinery parts for agriculture, industry, and construction sectors.
8299 Service activities Other business support remaining where ungraded
Details: - Entrusted import and export, travel car rental - Commercial Services - Intellectual Property Consultants (excluding legal advisory and representation services for industrial property) - Export and Import commodity export trading company
6619 Support activities of financial services where ungraded
Details: Investment consulting domestic and foreign (not including legal advice and financial advice)
7920 Support services related to promoting and organizing tours
Details: - International travel - Travel inland
Magic Wave Group Joint Stock Company focuses its core activities and operations on three key areas, which will continue to shape its future endeavors and strategies in the coming years.
- Imports electrical distribution products serving the agricultural sector: generators, dynamo generator, motor, engine oil, gasoline engine
- Import and distribute products lifts: Brand lifts SEC in Japan
- Exclusive distributor of kitchen equipment No.1 advanced world Ferile: Vacuum odor, gas stoves, induction cooker, dish dryer
- Import and distribution of beverages: Beer Asahi from Japan, imported wines from Australia, France, Chile, Spain
- Magic Wave Group Joint Stock Company is officially authorized distributor of
Meiji nutritional products in Vietnam - one of the oldest brand from Japan
1.5 Strategic partnership of Magic Wave Group Joint Stock Company
Magic Wave Group Joint Stock Company strategically partners with large supermarkets, commercial centers, and specialized nutrition product stores Its products are widely distributed across the country, with a focus on major cities that exhibit economic growth and high population density.
Table 3 The strategic partner of Magic Wave Group
Thư viện ĐH Thăng Long
Strategic partnership of Magic Wave Group Joint Stock Company
Magic Wave Group Joint Stock Company strategically partners with large supermarkets, commercial centers, and specialized stores that focus on nutrition products The company's offerings are widely distributed across the country, with a particular emphasis on major cities known for economic development and high population density.
Table 3 The strategic partner of Magic Wave Group
Thư viện ĐH Thăng Long
MAGIC WAVE GROUP JOINT STOCK COMPANY STRUCTURE
Organization structure
Deputy General Director of Production Chairman of de Board
Basic financial data
Below is consolidated Income Statement dated on December 31, 2015 including:
Table 4 Income Statement dated December 31, 2015
Contributory taxpayer: Magic Wave Group Joint Stock Company
Currency: Million Viet Nam Dong
(Source: Accounting department of Magic Wave Group Joint Stock Company)
Thư viện ĐH Thăng Long
Diagram 2 Total revenue of Magic Wave Group Joint Stock Company
( Source: Accounting department of Magic Wave Group Joint Stock Company)
The diagram illustrates the revenue performance of Magic Wave Group from 2013 to 2015, highlighting a significant sales increase to an average of 240 million Vietnam dong per year, which constituted 95% of the total revenue Notably, revenue from other activities contributed to substantial profits, with a remarkable 42% rise in 2014 compared to 2013, representing approximately 4.5% of the overall revenue The recovery of the global economy in 2014 further boosted revenues, leading to a 37% increase compared to the previous year.
In 2014, the profit margins are expected to rise compared to 2013, driven by factors such as the fluctuating exchange rate between the Japanese Yen and the Vietnamese Dong, increased import taxes, and special consumption taxes, along with overall product price volatility.
In 2014, Magic Wave Group is focused on rehabilitation and construction, leading to a significant increase in sales costs, business management expenses, and financing activity costs, which have nearly doubled compared to the previous year.
In 2015, Magic Wave Group experienced an 8% increase in total revenue compared to 2014, demonstrating significant growth despite challenging economic conditions This progress highlights the company's rapid development and successful achievement of its strategic plans.
Diagram 3 Net Income of Magic Wave Group Joint Stock Company
( Source: Accounting department of Magic Wave Group Joint Stock Company)
From 2013 to 2015, the company experienced a significant upward trend in profits, starting at 15.738 million Vietnam dong in 2013, increasing to 21.103 million in 2014, and reaching 33.577 million in 2015 This consistent growth in sales highlights the company's effective adaptation to market demands.
Stakeholders matrix in 2015
Table 5 Stakeholder’s matrix of Magic Wave Group in 2015
- Decrease all risks, especially International settlement for trade and services
- Frequent and regular reports bottom up to top management about business activities, underlying potential risks
- Update new policies relating Export–Import, banking services and operations
Thư viện ĐH Thăng Long
- Build clear personnel and employee policy
- Prompt responses to employees’ feedback
- Good national trade and services
- Remain and use effectively the information channel between customers and Magic Wave Group
- Always provide the most modern technology, after-sales service perfect
- Material - Big order, loyalty, payment
- Logistics, retail chain, distribution (distribution channel in supermarkets, at grocery, railway stations, airports )
- Commission, discount, privilege, outlet support
- Building systems sales staff, supervisor, manager for the retail channel
Government - Legal environment, exchange rate, social
Unions - Collective, ensure benefit future
- Business development associated social security
My position in Magic Wave Group
As the assistant to the General Director at Magic Wave Group Joint Stock Company, I hold a multifaceted role that demands a blend of professional expertise and personal attributes This position requires not only a solid understanding of the industry but also essential soft skills, including effective communication, time management, and strong organizational abilities Additionally, the ability to thrive under pressure and a genuine passion for the job are crucial for success in this dynamic environment.
The assistant plays a crucial role in supporting directors by managing multiple tasks simultaneously, ultimately aimed at enhancing their productivity This position has significantly improved my communication and problem-solving skills, as I frequently collaborate with partners to coordinate various projects.
Thư viện ĐH Thăng Long
THE MISSION: ASSIGNED TASKS AND GOALS
Tasks assigned to the position of assistant to the General Director
During my internship at Magic Wave Group Joint Stock Company, I serve as an assistant to the General Director, focusing on international integration in both trade and services.
The works involved are as following:
• Support the work and manage work plan of the General Director;
• Together with executive Manager/Director to construct detailed plans, budget, business strategy of short and long term in each time with each domain;
• Communicate information on the policies and strategies of business from the General Director to the sales staff in the department;
• Coordinate with the concerned department to plan orders and coordinate with the relevant departments
• Effective cost management, accounting, and coordinate with the client debt management;
• Business Reporting week / month / quarter;
• Monitor and evaluate the degree of fulfillment of specific targets each department / individual employee;
• Support setup, training, team building and adjacent active surveillance entire business staff with each domain;
• Advice, support, and advice to build appropriate business strategy to meet the requirements of the market domain;
• Other tasks as they arise.
The link between the subject matter and my mission in the building distribution
During my internship at Magic Wave Group, I focused on developing distribution channels for Meiji in the Vietnamese market My role involved assisting the General Director with tasks related to establishing these channels effectively.
With specific tasks such as:
• Monitoring and management of sales staff in the distribution channel
• Develop and support distributors implement sales programs, promotions, and marketing
• Monitoring and reporting to track inventory at the distributors, monitoring customer debt
• Update market information and feedback of customers to report for General Director
Therefore, I have chosen the theme "Building distribution channels of product lines of Meiji for Magic Wave Group in Vietnam market." As a subject of research and practice my report.
The goals I was asked to reach
I have utilized the knowledge gained from my MBA program in Nice to enhance my work with the Magic Way Group, focusing on developing distribution channels for the Meiji product line in the Vietnamese market.
Magic Wave Group operates within a robust legal framework, establishing a solid foundation for its distribution channels As the officially authorized distributor of Meiji products in the Vietnamese market, Magic Wave Group plays a crucial role in ensuring the availability and promotion of these high-quality dairy products.
• Branding Meiji distributed by Magic Wave Group
• Diversify products to develop distribution networks and expand the market
• Learn the characteristics of the company's market and distribution channels Traditional sales associated with marketing, online sales based on online sales channel network
• Understand the factors that affect the development and management of
Thư viện ĐH Thăng Long distribution channels of the company
• Know the structure of the company's distribution channels
• Know the selection of the members of the distribution channel
• The status of the product marketing activities at Vietnam market
• Learn about customer care, after sales, take the health of customers on priority
• Propose some solutions to improve product distribution.
Contribution to the company
In recent years, the company's distribution channels have seen significant success, enhancing market coverage and customer engagement To further improve the efficiency of these channels and facilitate market expansion into key areas, companies must reorganize their distribution strategies.
• Construction Legal environment as a basis for building distribution channels
• Forecast the business environment of the company
• The prospect market in the coming years
• Forecasting the company's capabilities in the near future
• Setting business goals of the company
• Build up the traditional sales channels and online sales channels
• Solutions to organize the distribution channel more rationally
• Solutions for management distribution channel system
Theoretical Knowledge
In today's competitive market economy, manufacturers often struggle to sell their products directly to end-users, necessitating the use of marketing intermediaries These intermediaries play a crucial role in efficiently delivering goods to consumers, thereby fulfilling both business objectives and customer needs This intermediary distribution system is a key component of the marketing mix, highlighting its significance in the overall marketing strategy.
Diagram 4: Systems Marketing - Mix is shown in the following diagram
The primary distribution channel is characterized by a blend of independent and interdependent relationships between businesses and individuals, facilitating the movement of goods from producers to end users.
Distribution is a key component of the Marketing Mix strategy, playing a vital role in business operations Companies must consider not only the products they offer and their pricing but also the methods of delivering these products to consumers This is achieved through a network of distribution channels that facilitate the movement of goods to the market.
Marketing channel management is a crucial aspect of marketing management that provides step-by-step guidance for managers It involves the development and execution of external organizations, or marketing channels, to enhance the effectiveness of other marketing mix elements and address the needs of specific market segments A well-designed distribution strategy not only fosters a competitive advantage but also supports and enhances other strategic variables of the marketing mix.
3.5.1.1 Classification of distribution channels under the intermediate level
Thư viện ĐH Thăng Long
Diagram 5: Classification of distribution channels under the intermediate level
The number of intermediate levels in the distribution channels makes the distribution channels have different lengths:
Channel 1 refers to a direct distribution method where producers sell their products straight to consumers, eliminating intermediaries This approach is particularly suitable for perishable items, fragile products, and high-tech goods that necessitate careful user manuals Additionally, it can be utilized for products where the producer also acts as the exclusive distributor.
Channel 2, known as a one-level channel, facilitates the delivery of goods to customers through retailers This distribution method enhances the benefits of direct distribution while also increasing specialization and improving production capacity However, in a highly competitive market where customers expect goods to be readily available everywhere, the structure of this distribution channel remains suboptimal.
Channel 3 is a two-level distribution system that primarily involves retailers, along with wholesalers This structure is typically utilized for low-value goods that are purchased on a regular basis.
Channel 4 operates as a three-level distribution channel, ideal for connecting multiple small manufacturers and retailers It employs an agent to facilitate the supply of products in bulk to the target market, ensuring efficient distribution and accessibility.
3.5.1.2 Classification according to the connection degree
Diagram 6: Marketing channels on the extent of the link
A regular channel comprises a network of manufacturers, wholesalers, and retailers who operate independently, forming trade deals individually or randomly without long-term commitments This structure allows them to maximize their individual benefits, often at the expense of the overall efficiency of the distribution system.
The vertical system of channels is designed to establish clear rights and responsibilities among its members, ensuring that each participant aligns their goals with the overall objectives of the system This cohesive structure involves manufacturers, wholesalers, and retailers working together as a unified entity to effectively manage advisory and administrative tasks.
There are 3 types VMS channels:
- Managed VMS channel: this is the vertical channel in which a member has the power base of their inherent nature
- Group VMS Channel: these is vertical channels that each member of the channels is owned by each organization, each individual
The Channel VMS contract establishes a cohesive link among its members, ensuring that each participant possesses equal power, responsibilities, and rights, all clearly outlined within the agreement.
Single channel and Regular channel
The vertical system of channels
Retail chains are guaranteed sellers
Thư viện ĐH Thăng Long
BUILDINGS DISTRIBUTION CHANNELS OF PRODUCT LINES
Building distribution channels in Vietnam
4.1.1The retail market in Vietnam after joining WTO
Since joining the APTA and the World Trade Organization (WTO), Vietnam's retail market has experienced significant transformation, moving towards greater openness and deeper integration into regional and international markets This shift is guided by international commitments established upon its formal WTO accession Between 2010 and 2015, the retail market exhibited rapid growth, with total retail sales of goods and services reaching between 750,000 and 800,000 billion VND, and surpassing 1 million trillion VND thereafter.
In 2013, despite facing economic challenges and high consumer prices that diminished purchasing power, the retail sector achieved impressive sales of 1.3 million trillion This sector significantly contributed to the economy, accounting for approximately 15% of GDP, with retail sales representing 60-70% of GDP, thereby playing a crucial role in recent economic growth.
The retail market has undergone significant changes, driven by a focus on local markets This has led to the continuous expansion of retail networks, including supermarkets, utility shops, and rapidly developed commercial centers.
In 2015, Vietnam saw a significant increase in the number of supermarkets and commercial centers, growing from 200-250 at the beginning of the year to nearly 530 by year-end The wholesale and retail markets have expanded, now boasting approximately 8,500 to 9,000 outlets Modern business methods have rapidly evolved, with 20% to 23% of goods being circulated through these innovative channels Notable retail businesses leading this growth include Saigon Coop, Hanoi Trading Corporation, Nguyen Kim, JSC Nhat Nam, and Phu Thai Group.
By 2015, the retail business sector experienced rapid growth, with approximately 15,000 to 18,000 specialized enterprises engaged in the circulation of goods and services, as well as import and export activities This expansion supported a workforce of around 5.4 to 5.5 million employees.
- 19 - equivalent to the processing industry; workforce through skills training, advanced training in marketing skills, communication, customer care, business management level of enterprises, retail business increasingly more advanced
Vietnam's retail market, while fast-growing, remains fragmented and small-scale, characterized by numerous weak enterprises that struggle to collaborate effectively This lack of cooperation hinders their ability to build competitive strength in a market dominated by a few large wholesalers who impose unfavorable conditions Many retail businesses, including shops and boutiques, are undercapitalized and scattered, making it challenging to compete Additionally, some entrepreneurs exploit market volatility by partnering with production facilities to engage in speculative practices, artificially inflating prices on sensitive products such as rice, sugar, fertilizers, steel, cement, and medicines.
High-quality retail systems, even at smaller scales, can significantly enhance supermarket performance, with average annual sales reaching approximately 2-3 million for commercial centers and 10-13 billion for individual stores However, the limited variety and monotonous selection of goods in supermarkets hinder consumer satisfaction Additionally, maintaining the quality of retail goods poses challenges, particularly in the sanitary ware and food safety sectors, where issues like counterfeit and substandard products continue to circulate, undermining consumer confidence.
High input costs and low competitiveness in the retail sector have created significant challenges for many businesses With escalating rental prices and unstable market conditions, retailers face high-interest capital burdens while employee wages continue to rise This fierce competitive environment has resulted in diminished business efficiency, hindering expansion efforts and limiting growth potential.
The development of commercial infrastructure is lagging behind the demands of growing markets, leading to significant challenges during the implementation of local development plans Inadequate services often hinder progress, resulting in difficulties that arise when planning is put into action.
The Thang Long University Library has promptly identified sites for service trade areas However, challenges such as unsuitable retail locations, slow capital turnover, and limited financial capacity hinder the retail sector's ability to meet investment conditions for developing existing urban areas This situation is particularly evident in rural markets and key economic regions, where market systems are inadequate and the circulation of goods is restricted Additionally, primitive storage, processing, and packaging systems negatively impact product quality.
Vietnam's retail businesses recognize that adhering to WTO commitments is essential for deeper and broader integration into the global market Upon joining the WTO, Vietnam agreed to protect nine sensitive items—rice, sugar, gasoline, medicines, cigarettes, books, magazines, videotapes, and precious metals—from full foreign capital investment Additionally, to regulate the establishment of foreign retail networks, Vietnam committed to allowing foreign enterprises to open their second retail location based on specific national considerations.
The implementation of the roadmap for opening Vietnam's retail market should align with the country's economic development needs, prioritizing national interests and the requirements of production and consumer welfare It is essential to balance these goals with bilateral and multilateral commitments to partners Vietnamese retail businesses support the government's gradual approach to market liberalization, ensuring that it safeguards national interests while benefiting manufacturers, consumers, and corporate stakeholders.
The Vietnamese government has made timely commitments to open the market, allowing for 100% foreign capital investment However, the actual foreign investment in Vietnam has not met expectations over the past two years Aside from previously established businesses like Metro and Big C, the Ministry of Industry and Trade reported limited additions to the market by 2010.
4 new FDI in the distribution sector in Vietnam with 26 retail facilities are concentrated in Ho Chi Minh City, Hanoi and some other cities FDI enterprises in Vietnam is low,
To effectively penetrate the Vietnamese market, companies should consider strategic joint ventures with local enterprises, particularly through franchising, to gradually establish a strong retail presence This includes the construction of large, modern shopping centers and supermarkets in prime locations, such as Metro, Big C, and Parkson, which offer a diverse range of products and services, often achieving sales figures significantly higher than local competitors Despite challenges like low consumer demand and infrastructure limitations in rural areas, a cautious yet strategic approach will enhance competitive strength now and in the future, particularly as foreign direct investment (FDI) remains limited in these regions.
4.2 Building distribution channels of product lines of Meiji for Magic wave group in Vietnam market
The food industry is a crucial sector that is closely regulated by the government due to its direct impact on consumer health Businesses in this field strive to meet high market demand while ensuring compliance with state regulations governing food safety and quality.
Distribution system products on the market
Effective management of distribution channels is essential for organizations to align with their business goals, optimize output, and minimize costs to maximize profits A key focus in channel management is to enhance product sales, ensuring that organizations can achieve the highest sales performance possible.
Effective management of the sales department relies on the corporate sales mechanism, which governs how sales invoices for parts are processed This process is influenced by the chosen payment methods and shipping arrangements established through agreements with businesses.
Goods are delivered to agent warehouses through two primary methods: direct shipment to dealers with payment due after one month, or cash-on-purchase shipments from warehouse branches to payment agents Regardless of the chosen method, efficient logistics and payment systems are essential for smooth operations.
Thư viện ĐH Thăng Long company also supports the cost of shipping and handling agent b Supermarkets
As modern life evolves, consumers increasingly prefer shopping at supermarkets over traditional markets The operational hours of government retail stores abroad in Vietnam significantly influence the business activities of consumer goods companies This shift presents an opportunity for brands to grow and boost consumption productivity Recently, Magic Wave Group has secured product sales contracts with prominent domestic supermarkets such as Metro, Big C, and Co-op Mart.
Traditional customers, including retailers and wholesalers, have a close relationship with businesses, operating on agency commissions and benefiting from preferential pricing This alignment of interests supports business development and market expansion, facilitating faster product sales Agents play a crucial role in enhancing the company's reputation and competitiveness, ultimately contributing to the overall success of the enterprise.
Retail customers play a crucial role in directly engaging with consumers, as they foster relationships and build trust This network is essential for generating sympathy and support, serving not only as a channel for introductions and advertising but also as advocates for consumer needs Additionally, they provide vital insights regarding customer preferences, product offerings, and competitive landscape, making their contributions invaluable to business success.
Consumer habits and preferences vary significantly across different regions In major urban centers, customers tend to prioritize design and product quality, while those in more remote areas focus on price and promotional offers Understanding these regional differences is crucial for effectively targeting individual consumer customers.
The five-year developmental plan 2015-2020
4.4.1 Construction business objectives of the company
- Improving the production capacity, with particular emphasis on food, extended new product items
- Raising the consumption, the target set for the company in the next 3 years
- Expansion of the company's market share in the market, raising the number of agents
- Increase sales and profit maximization, striving annual profit margin of 4-5% and 2020
The company is dedicated to achieving multiple goals, including ensuring business safety, fulfilling social objectives, and meeting employee desires Additionally, it aims to satisfy customer needs by providing the highest sales, fastest service, best quality, and lowest costs.
4.4.2 The mission of the company in the near future
In response to the evolving economic landscape and its strategic business goals, the company has established a distinct business direction and outlined its development plans for the coming years.
- Regularly change improvement items, packaging design to further improve product quality and production efficiency;
- Look at some new product quality and reasonable price to the market so that support for distributed systems, solving the outstanding products;
- To strengthen and further develop the domestic market, strive to improve the number of agents in order to meet more needs of the market;
- Focus traditional sales development and sales online;
To maintain momentum in marketing and sales efforts, the company must continually enhance its distribution channels Rather than resting on past achievements, it is essential to expand and refine the product distribution planning system nationwide.
Thư viện ĐH Thăng Long
OUTPUTS OF BUILDINGS DISTRIBUTION CHANNELS OF
Limitations
OUTPUTS OF BUILDINGS DISTRIBUTION CHANNELS OF PRODUCT LINES OF MEIJI FOR MAGIC WAVE GROUP IN VIETNAM MARKET 5.1 Conclusions
In recent years, the Magic Wave Group has demonstrated remarkable efficiency, evidenced by a consistent increase in sales and profits The company's stable financial situation and robust product production further highlight its success With products available in most provinces and cities across the country, the effectiveness of the Group's marketing activities has significantly enhanced its business performance over the years.
As the food market evolves, consumer demand continues to rise, prompting the Magic Wave Group to prioritize market exploration and research to identify emerging customer needs and enhance competitiveness A key element of their successful strategy is the effective management of product distribution channels.
Understanding the significance of practical application, I conducted an in-depth analysis of the distribution channel system of the Magic Way Group to identify its strengths and weaknesses My findings aim to provide solutions for optimizing the channel distribution system, ultimately contributing to enhancing the Group's competitiveness in the market.
5.2.1 Solutions to expand the network of sale product of the company in the near future
Magic Wave Group operates within a robust legal framework, establishing itself as the officially authorized distributor for Meiji products in the Vietnamese market This solid legal standing is crucial for developing effective distribution channels, ensuring that Meiji's corporate products reach consumers efficiently and compliantly in Vietnam.
The Magic Wave Group needs to implement robust marketing policies to enhance the visibility of its consumer products and strengthen its brand reputation To achieve this, the company should invest significantly in television advertising, ensuring that its product commercials are aired frequently on major networks.
Television station, construction and standardized systems in the market billboard, dealer, and main roads,
• Establish thicker dealer network in the region of the provinces and cities to provide, transshipment cargo to neighboring areas
• Recruitment marketing staff in good health, qualified, experienced, enthusiastic and able to work under pressure, business trip, long days to make a good job in marketing in the outlying areas
To effectively meet regional consumer preferences, the company must conduct thorough market research to identify unique product types that resonate with local tastes This strategic approach will guide the business direction and product development, ensuring alignment with societal needs and fostering a successful market presence.
• Expansion and further development of the sales system in supermarkets, convenience stores to bring products to consumers a wide and fast
Building a network of retail collaborators is essential for delivering goods directly to consumers, particularly in hard-to-reach areas These collaborators play a crucial role in promoting and advertising products on behalf of businesses Therefore, it is vital for development teams to concentrate on strengthening relationships with local retail partners to enhance market reach and consumer engagement.
To effectively reach consumers in Vietnam, businesses should develop traditional sales channels while enhancing their online presence Leveraging traditional advertising methods alongside innovative strategies on social networking sites, forums, and online clubs can yield significant results With a population of 90 million and over 128 million mobile subscribers, Vietnam boasts 40 million Internet users and 28 million social media accounts, predominantly on Facebook Notably, 24 million individuals access the internet via mobile devices, making it a cost-effective approach for businesses to connect with their target audience.
5.2.2 Solutions for distribution to more rational
5.2.2.1 Status of the distribution system and solutions to complete for the distribution channel for the company
In recent years, the company's distribution channels have seen significant success, enabling enhanced market coverage and increased customer visibility To further improve the efficiency of these distribution systems, the company aims to implement strategic enhancements in the near future.
Thang Long University Library aims to enhance its market presence in the central and southern regions while deepening its penetration into key markets To achieve this, the company must reorganize its distribution channels to ensure greater effectiveness and reach.
With market coverage strategy, the company has gained significant market share in the industry, but the company was only established a distribution network in the city areas and towns
In the near future, the company must focus on developing a distribution channel system in provincial areas, ensuring an adequate number of agents to meet market demands and enhance customer satisfaction.
The company's current distribution structure is effective, but it is essential for businesses to continuously monitor and analyze the performance of each sales channel member This proactive approach enables them to identify challenges faced by individual members and implement timely solutions to enhance overall efficiency.
5.2.2.2 Distribution model that companies should adopt to meet the sale of products as well as meets the needs of the market
To successfully meet consumer needs and achieve business objectives, companies must establish an effective distribution network that adapts to market trends.
To optimize product distribution and enhance economic efficiency, the company must analyze the market and evaluate its existing franchised-dealer distribution channels By addressing the inherent weaknesses in these traditional models, the ideal distribution strategy should integrate three channels, ensuring that products reach consumers quickly, maintain high quality, and minimize costs This approach will ultimately lead to superior product distribution and improved profitability for the company.
This is the direct sales channel from producer to final consumer
* Time circulation of products from companies to consumers short
* Reduce the cost of transportation
* The company can control the consumption according to its policies
* Set up a direct relationship with the customer, may be current or potential customers
* The more complex sales, slower sales, sales volume restrictions
* The costs of storage and large sales
For this channel, time to circulate relatively fast, consumption of products through this channel have increased The volume of products through this channel accounted for 20% of corporate output
+ Channel 3: Long indirect channel (applies to consumer businesses remotely)
* The nature of this channel is relatively tight
* Satisfying the needs of the market
* Helping business get the huge market
A strong agent-consumer relationship is crucial for positive production outcomes By effectively utilizing all three distribution channels, companies can optimize the circulation of goods, ensuring they meet customer needs quickly and efficiently, ultimately leading to increased revenue.
Thư viện ĐH Thăng Long
5.2.3 Solution for managing the distribution channel system
5.2.3.1 Management with ERP software system