Pham Thi Mai Thanh H o 195040900 Marketing Channel Management
Pham Thi Mai Thanh H o 195040900 Marketing Channel Management
FINAL REPORT
Subject: MARKETING CHANNEL STRATEGY
Lecturers: Nguyen Thi Ngoc Dung
MEMBER GROUP 2
1. Lê Nguyen Bao Ngoc
2. Pham Thi Mai Thanh Hao
3. Tran Gia Han
4. Nguyen Ngoc Thuy An
5. Vu Tuong Vy
6. Bui Trung Hieu
7. Tran Thi Quynh Nhu
I.Introduction
1. Introduce Company:
La Viet Coffee was established in 2013. The predecessor is a coffee brand that
was opened in Da Lat city, then expanded to Ho Chi Minh City and Hanoi with
the ambition of bringing coffee products to customers. quality and new
experiences
For instant coffee, La Viet Coffe has three main products: Cafe Latte, Bac Suu
and Milk Coffee. All three of these products are products that any customer
can use, it's not like traditional coffee like black coffee has a bitter taste.
As for the whole coffee line, La Viet Coffe has a total of 14 different types of
whole bean coffee to serve customers who want to experience the process of
creating a cup of coffee from the drunken stage to the finished product.
For the powdered coffee line, La Viet Coffe has 12 types of powdered coffee
with many different types of powdered coffee products, which are
distinguished such as: filter, paper filter, light and dark coffee depending on
the preferences and needs of each customer. row
For the home & office coffee line, La Viet Coffe has 14 different types of
products with a larger coffee volume that can be used for more people.
For the line of coffee used in restaurants and hotels, La Viet Coffe has a total
of 11 different types of coffee, distinguished based on taste and different types
of coffee beans, with a weight of 1kg.
As for the product line, La Viet Coffe has a box of three flavors for customers
who want to experience many different coffee flavors.
In addition, La Viet Coffe also offers teas and coffees with fruit flavors,
chocolate flavors
• Market Development result: In 2020, La Viet Coffe will develop the market
through the launch of novel products that rarely appear on the market, helping
customers to access and have new experiences in using coffee. . In addition,
La Viet Coffe also organizes But First, Coffe event in Ho Chi Minh City,
where coffee lovers can come to experience and share coffee experiences. La
Viet Coffee also expands its business model to Ha Noi city.
II.Analysis
1. End-user analysis
1.1. End – user segmentation
Service output:
• Bulk breaking
In the case of La Viet Coffee, the mass production of coffee and tea product lines
is optimized according to the needs of the market. La Viet cafe also allows
removing termites at branches selling with the name of a service that constitutes a
shop, which has made purchasing easier to support consumers, reducing end-user
demand. At the point of sale, according to product line classification, at the same
time strictly control the production time and re-quantify the production quantity in
order to reduce unnecessary inventory load for the whole enterprise. La Viet coffee
has successfully used this method when dividing the number of its products into
smaller packages.
• Spatial convenience
La Viet clearly identifies the use of the coffee business model to expand to bring
about high-profit rates by opening more separate cafes under the brand name for
the above-mentioned subjects. La Viet's spatial convenience is determined by the
characteristics, as well as the role of distribution intermediaries under the
enterprise's brand, typically in the following forms: Wholesalers/whole trader,
retailers and support intermediaries. La Viet's chain of cooperative stores is very
diverse and quality. Spatial convenience is also determined based on the
characteristics of each channel.
• Waiting or delivery time
In terms of delivery methods, La Viet uses 02 delivery methods:
Customers buy goods directly at our company or store
Enterprises directly ship goods. According to the company's policy, the
delivery time is between 3-5 days from the date of closing the order or as
agreed with the customer when placing an order. The first will not mention
the specific delivery time for each segment, but will generally mention the
delivery policy for product categories.
• Product variety
La Viet Coffee's specialty coffee is made from the finest Arabica beans. Cafe
Arabica is extracted and drunk straight from the plant, without the addition of any
sugar or milk. This type of coffee is known for its fragrant flavor, as well as for its
low caffeine concentration and sour taste. Cafe Specialty is a high-quality cafe, and
there will be no defective beans or broken beans or green beans there. Besides,
when the Baristas at La Viet Coffee prepare coffee, they all place the mixing tools
on the scale, and each variety has a unique preparation tool. To create Arabica, for
example, a ratio of 1:15 to 1:18 is required, which indicates that 20g of coffee must
be extracted with 300g of water. And Coffee with Phin is without a doubt made
using Robusta beans.
• Customer services
Intention to utilize La Viet Coffee's products and services in the future La Viet
Coffee's La Viet Coffee is the first place customers think of when they have a need
and is a familiar location, according to customers. Customers also enjoy the
restaurant's comfortable and thrilling pleasure environment, as well as a good
service attitude that is committed to customers, say survey respondents. La Viet
coffee should pay attention to this issue in order to encourage customers to visit
more frequently if they do not want their market share to decline. At La Viet
Coffee, if a consumer is dissatisfied with a product or service, they may provide
feedback at any time to ensure they receive the finest service. The implementation
team got input from consumers regarding the following, which is outdoor table
area in the evening, poor light, and the bathrooms far from the store. When new
products and services are introduced, 96.94 percent of customers are eager to use
them.
• Information sharing
The coffee selection at La Viet is typically not one that causes you to hesitate or
become confused. Because they have a diverse selection of products, yet they are
well knowledgeable about how to distinguish and interpret each flavor. Perhaps La
Viet does not want to relinquish its position as a premier coffee brand. Each
product, each coffee line is recommended by them in accordance with the occasion
or the place in which the product will be enjoyed. Apart from that, Vietnam is
proud of the fact that it is recognized as one of the countries with the most 'valued'
coffee resources in the world.
The specific marketing for the channel on the targeted end-user segmentation
PRODUCT
La Viet coffee should place quality at the forefront of its operations. The taste,
color, richness, and consistency of pure coffee are all considered when determining
its quality. La Viet must earn the trust of clients by obtaining international-class
pure coffee certification certificates, such as those issued by the United Trade
Organization (UTZ). People's demand for clean food that does not contain harmful
chemicals that are harmful to one's health is gradually shifting toward clean coffee
or pure coffee. To have a decent cup of coffee, it is first necessary to have clean
coffee.
PRICE
According to the findings of the study, the price of pure coffee has only a minor
impact on the purchasing decisions of consumers. Consumers are typically willing
to pay higher prices in order to be able to use high-quality products. However, in
order for consumers to consume more clean coffee, that is, coffee with a
transparent origin, La Viet must take steps to cut production expenses as well as
the costs of its products.
DISTRIBUTION SYSTEMS
La Viet, a restaurant in Saigon that is still fashioned in an industrial style but has
an open and youthful character, provides another value to the city's residents. A
coffee shop is more than simply a venue to sell drinks and pastries; it is also a
place for cultural exchange, speaking and sharing experiences in life, business, and
other areas.
There are still many market sectors that are untapped, and La Viet Coffee should
concentrate on gaining a foothold in these segments.
STRATEGY FOR PROMOTION
ADVERTISEMENT
Content:
Stage 1: Deliver a quick television commercial and repeat the sentence. Coffee that
is both good and clean
Stage 2: After a period of time has elapsed since the first stage commercial has
been broadcast:
The advertisement will capture the entire process of pure coffee production till it
reaches consumers in a one-minute clip and will underline the importance of pure
coffee: it is clean, safe, and has a high monetary worth. Then, post the
advertisement on the internet to spread it rapidly and reach a larger audience:
YouTube, Facebook, and other social media platforms: the number of likes, shares,
and comments from users will determine the success of the campaign.
There will be an article on health and safety in the media, including online and
newspaper articles, family and health publications such as Marketing and Family,
Health and Life, Saigon Entrepreneur, and others. food and food choices in the
future.
INTERNET
There are three communication avenues that should be prioritized: SEO, social
media, and forums. Creating an information page for social media will allow you
to supply information about the latest products, branches, information, and so on.
Additionally, because the majority of consumers in the industry participate in
market research, this is an excellent route for gathering information. Because the
target age group already has a social media account, this is a distinct advantage.
Businesses must purchase related keywords as well as top advertising spots in
order to promote online distribution channels in order to be successful in SEO.
As a potential reference group for forums, they are becoming increasingly popular:
they offer a conduit for exchanging in-depth information, the majority of
customers are quite homogeneous, and they frequently have a high level of trust in
the information that has been provided. Because the share is relatively high and has
a significant impact on purchase decisions, it is vital to train customer service
representatives to become active users on these forums in order to collect feedback
and write guide articles for the company's website; along with providing prompt
responses to inquiry.
PROMOTION
The promotion's goal is to increase consumption more quickly while also creating
a long-term attachment to the store's products, which will work in tandem with
advertising.
For customers, establish an online community where they can ask questions about
pure coffee, collect and share opinions and so on, with a forum moderator who will
answer them.
2. Channel analysis
2.1. Channel function
Ownership Ownership
Promotion Promotion
Negotiation Negotiation
Financing Financing
Manufacturers Consumers
Risking Retailers Risking (business and
and producers
individual)
Ordering Ordering
Payment Payment
• Physical possession:
- Là Việt growing coffee according to a strict process in Da Lat: no chemicals,
organic fertilizers, no herbicides, only cutting to fertilize the trees.
- Process orders within 24 hours and feedback information to customers about
payment and delivery.
- For provincial customers who have a need to buy in bulk or wholesale
customers, if they have a need to buy products, we will ask for the delivery
service of shipping companies and the fee will be calculated according to the
fee of the supplier. transportation service or according to the contractual
agreement between the two parties.
• Promotion:
- Free delivery nationwide with bill from 370,000VND or more.
- Bottle exchange policy: exchange 5 bottles, get 1 new coffee with the right
flavor you like.
- A series of La Viet promotions sent to customers each month:
• Ordering:
- Contact Facebook, Instagram
- Call the hotline at the address of the store near you
- Order through the website
- Recently added the form of ordering through 2 trading floors trusted by
Vietnamese young people:
• Payment:
- There are 3 main payment methods, customers can choose the most
convenient and suitable method for them:
❖ Option 1: Direct cash payment to our address
❖ Option 2: Pay on delivery (COD), customers see the goods at home,
pay cash to the delivery staff.
❖ Option 3: Transfer money in advance. You transfer the money first,
then we deliver the goods according to the agreement or contract with
you.
- And other forms of electronic payment such as: Momo, ZaloPay, ...
• Financing:
- Raise and use money to cover the channel's operating costs
• Risk:
- Share risks in the process of product distribution such as changes in
consumer tastes, damaged products during transportation and storage...
- Accept the risks related to the operating activities of the channel.
• Negotiation:
- To come to an agreement on the price and terms of delivery. This is the
stage where the ownership of products and services is transferred.
- Try to come to an agreement on price issues around the product customers
intend to buy.
• Information Sharing:
- Gather the information needed for strategic planning and facilitate
communication.
- Find out information with prospective customers.
- Developing and disseminating highly persuasive information about current
sales and new products.
15 MEDIUM 15 20 50 30 100
PAYMENT
So with demand increasing of consumers, then the services of La Viet is not supply
enough. Such as the problem of shortage of coffeeshop in the provinces, districts
across the country that the customer does not life in the big city of this brand not
experience the space and enjoy instant products due to the bartender obliged to
placed online.
3.3. SWOT
• Strength
- New business model to attract customers
- Unique and characteristic recipe
- Affordable price, suitable for many customer segments.
- Excellent service quality
- The space is too simple but luxurious, a great place for coffee connoisseurs
- There are different services such as "Coffee tour" that create customers'
interest in the brand..
- Selling coffee products such as sachets, powders, seeds,...
• Weakness
- It's a new brand, not many people know yet
- Brand awareness is still low
- There are not many branches in many provinces and cities. Only have
branches in Da Lat and Ho Chi Minh City.
- Limited service "Coffee tour" because only the branch in Da Lat has this
service.
• Opportunity
- The brand is gradually being known by many people
- Consumer demand for instant coffee is increasing
- Tourists, especially foreign tourists, tend to want to experience and learn
more about the production and processing process of a delicious cup of
coffee.
• Threats
- The epidemic situation has caused a decrease in tourists or local visitors
- There are many famous coffee shops and instant coffee brands in the market,
so it is very difficult to capture market share.
- The competitors in the same customer segment are too strong.
III.Solution
1. Strategic channel decisions (proposal)
Factors Affecting Channel Choice of La Viet
Whether La Viet be a one person operation or one that employs thousands of
people and generates billions in sales, all are in business to serve the needs of
markets. In order to do this, La Viet must be assured that their products are
distributed to their intended markets.
Channel choice begins with two questions: to whom shall we sell this merchandise
immediately? And, who are our ultimate users and buyers? The immediate and
ultimate customers may be identical or quite separate, depending on the type of
product, functions performed in the channel, and location in the channel. There is a
need to know what the customer needs, where they buy, when they buy, why they
buy from certain outlets, and how they buy. It is best that we first identify the traits
of the ultimate user. For example, the buying characteristics of the purchaser of a
packaged coffee might be as follows:
• Purchased only from a coffee shop
• Purchased only after considerable shopping to compare prices and
merchandise characteristics
• Purchaser willing to go to some inconvenience (time and distance)
to locate the most acceptable brand.
Knowing the buying specifications of consumers, the channel planner can decide
on the type or types of wholesaler or retailer through which a product should be
sold
Types of Retailers La Viet: Specialty Store, Supermarket, Convenience Store, E-
retailers
Channel choice is also greatly influenced by channel objectives. Channel
objectives are based on the requirements of the purchasers and users, the overall
marketing strategy, and the long-run goals of the corporation
Channel Objective of La Viet (proposal)
La Viet Coffee is the brand behind other coffee brands in the Vietnamese market.
Both a farm and a coffee factory in Da Lat. Up to now, La Viet has a total of 10
coffee shops in both South and North. Meanwhile, to buy La Viet packaged coffee,
you have to spend a lot of time going to their stores or buying on e-commerce sites.
La Viet's goal is to have very few retailers, so expanding distribution channels and
improving brand recognition in the domestic region
1.1 Channel Intensity
To achieve the best market coverage, La Viet must decide on the number of
intermediaries at each distribution level. La Viet distributes selectively, La Viet
sells its products through intermediaries at each level of the distributor they
choose to save distribution costs and strictly control.
• La Viet distributes products at the store
- At Ha Noi: The Caffinet (coffee shop), Tranquil Cafee (book coffee)
At Hai Phong: Venice Coffee, Aeon Mall Hải Phòng-Lê Chân
At TPHCM: The Dream of Coffee, Aeon Tân Phú
At Đà Lạt: L’ang Farm
At Đà Nẵng: Danang Souvernirs & Coffee, Aeon Mall Đà Nẵng
• La Viet distributes products at store online
- At Ha Noi: Sap Chang Sen
- At TPHCM: Havamall
1.2 Channel Type
• Channel value: represents the value of an asset in enhancing marketing
productivity through the positive effect created for channel members in the
minds of consumers. The best example is online Internet channels such as
Shopee, Lazada of La Viet or other e-retailer. These channels have made
shopping on the Internet so easy that many customers just buy from these
channels regardless of price
• Degree of intensity: La Viet is sure with product coverage through
intermediaries of 100%
• Cross-shop matter: With this problem, La Viet coffee has applied this form
as well as other coffee shops as expected. Customers will enjoy a cup of
coffee at the coffee and they will consider buying more packaged coffee
through their experience as well as La Viet's coffee tour in Da Lat
• The Internet : Vietnam distributes with e-retailer at Sap Chang Sen (Ha Noi)
and Havamall (TPHCM) with the same price and monthly commission
based on their total sales
1.3 Dual Distribution
La Viet sells its products directly at coffee shops such as coffee beans, ground
coffee, instant coffee. At the same time, their products are also distributed through
intermediaries such as other coffee shops, grocery stores, supermarkets, specialty
store
Là Việt
coffee
• Delivery&Waiting Time
La Viet creates a delivery department that can offer free shipping to channels that
sell high sales. According to customer feedback, La Viet's delivery process is
quite long and inconsistent in time, causing them to have problems in the process
of selling products, and the warehouse is short of goods. We designed this to help
support distributors and speed up sales, limiting storage
Import quantity is only maximum and reduce minimum quantity for distributors.
With the strength of self-produced coffee, no preservatives, so the shelf life is
quite short, this will be difficult if the goods are in stock, and distributors will be
afraid. This support helps La Viet protect the orientation, limit the possibility of
returning goods that are past their expiry date.
We have just mentioned the problem of over-stocking, but if the product cannot
be sold before the expiration date, the distributor can exchange the product for a
new one.
• Assortment&Variety
La Viet's products are too many, providing for different segments. Confusion over
which type to choose will reduce the customer's purchase rate. While it is
impossible to remove products, we will create a new category called "for youth",
we will target a new segment. Young people like to enjoy coffee at the shop but
still want to make it with their own hands at home, the taste is the same as at the
shop. We will distribute them at supermarkets, cafes frequented by young people,
or even bookstores to easily reach them.
• Customer service
"For youth" will be introduced from the store staff whenever customers are looking at too
many types of La Viet coffee. At supermarkets, bookstores, distribution channel staff will
be trained to make suggestions to buy La Viet.
Là Việt Coffee
OUTLINE
I. Introduction
1. Introduction Là Việt Coffee
2. Business results in 2020 (product results, market development results, revenue &
profit results)
II. Analysis
1. End-user analysis
• End – user segmentation
• Targeting end – user
2. Channel analysis
• Channel function
• Cost of each function
• The efficiency template
• Gap analysis template
3. Make or Buy channel analysis
• Institution performing channel function
• Costs and benefits of Make or Buy channel
III. Solution
1. Strategic channel decisions
• Channel intensity
• Channel type
• Dual distribution
2. Closing channel Gaps
• Closing Service Gaps
• Closing Cost Gaps
I.Introduction
1.Introduction Là Việt Coffee Bùi Trung Hiếu
2.Business results in 2020 (product results, Bùi Trung Hiếu
market development results, revenue & profit
results)
II.Analysis
1.End-user analysis Vũ Tường Vy
• End – user segmentation
• Targeting end – user
2.Channel analysis Nguyễn Ngọc
• Channel function Thuỳ An
• Cost of each function Trần Gia Hân
• The efficiency template
• Gap analysis template
3.Make or Buy channel analysis Trần Thị Quỳnh
• Institution performing channel function Như
• Costs and benefits of Make or Buy channel
• SWOT
III.Solution
1.Strategic channel decisions Lê Nguyễn Bảo
• Factors Affecting Channel Choice Ngọc
• Channel intensity
• Channel type
• Dual distribution
2.Closing channel Gaps Phạm Thị Mai
• Closing Service Gaps Thanh Hảo
• Closing Cost Gaps