Developing the market for essential food products of Tan Duc Trading Limited Company

Accept to warehouse food that has passed food safety inspection, has certification from the Ministry of Health, do not accept packaged food that is past its expiration date, has mold, is swollen or has deformed packaging.

The company's preservation and storage are also carried out according to regulations, helping to effectively manage inventory, avoiding expired food that has not been distributed to the market, and food that is damaged during transportation and storage.

2.3. Conclusions on the current situation of market development of essential food products of Tan Duc Trading Company Limited

2.3.1. Achievements in market development activities of Tan Duc Trading Company Limited

With nearly 18 years of operation, Tan Duc Trading Company Limited has built a solid reputation in the market. The company has been constantly improving and striving to bring value to the community, bringing many essential goods to mountainous and border areas with quality and prices suitable for local people. The company has also expanded its business network and increased profits over the years.

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Since its establishment, the business performance of the enterprise has been continuously increasing over the years, the amount paid to the state budget and the living standards of employees have been continuously increasing. The output consumed in the domestic market has demonstrated the capacity, prestige and position of the enterprise in the current essential food market. The above results are the result of the continuous efforts and striving of all employees in the enterprise.

 In terms of scale: The company constantly adds business capital, trains experienced managers and employees as well as work control skills. The company's distribution of essential foods has always achieved positive results over the years, ensuring a stable growth rate in terms of scale as well as growth rate. Revenue from the company's essential food distribution activities generally increased compared to previous years. From 2018-2019, the company's revenue increased slightly, only 1.1% (about 20 million VND), but by the period 2019-2020, the company's revenue increased by 4.12% (about 80 million VND), increasing revenue by nearly 4 times compared to the period 2018-2019. The "chain" distribution system began to take shape and tended to

development direction as an objective necessity of the theory of “economy of scale” in the distribution sector. The company has developed a customer relations team with the aim of expanding the distribution network, increasing consumption output and developing the market for the company's essential food products.

 Regarding quality: The company pays special attention to the policy of developing goods sources such as product diversification, policies to strengthen links with suppliers and product distributors, contributing to reducing business costs and lowering product prices. Essential food items are not only diversified in types but also in designs and models, increasing the choice for customers. In addition, the company focuses on improving transportation services to build trust and reputation with customers who consume the company's products.

 Regarding commercial efficiency: In recent years, the company has operated effectively, contributing a lot to the state budget, attracting a large number of workers, contributing to solving employment for society. The development of essential foods helps increase the demand for high-quality foods, limiting the consumption of poor-quality foods, food shortages and improving people's lives. In addition, the company is very interested in the issue of labor insurance for employees throughout the company, meeting the requirements of labor laws for employees.

2.3.2. Limitations in market development activities of Tan Duc Trading Company Limited

Limit:

Firstly, because essential food items are mainly imported from different manufacturers in other provinces, the cost of transporting goods is high. The price of this product depends on the price fluctuations of other goods and services such as gasoline, freight transport labor, etc. In addition, inflation and government tax policies also have a significant impact on the company's business operations.

Second, the company's market expansion activities are still poor, the number of new customers and new market areas increasing every year is not high, the proportion of regular customers is still large. - The company's product distribution system is not good yet. The company has used direct and indirect distribution channels but not effectively.

Because sales through intermediaries still account for a large proportion, profits are not high.

Third, the company has a department specializing in providing products to customers, which is the customer relations department. However, because it is a newly developed department of the company, the accumulated experience has not been much, leading to the expansion of the customer network not being really effective.

Fourth, the appearance of many new companies in the market, with larger capital and more diverse distribution of goods, is also one of the factors affecting the expansion and development of the company.

Reason:

Firstly, the company has not focused on developing the customer relations department, and has not paid much attention to marketing and product promotion.

Second, research, analysis and forecasting of fluctuations in the market of goods and services to have response and adaptation measures are still weak and have not received attention.

Third, the company's operating capital is still low, so investment in expanding and developing the market is limited. Investment in capital has not really been focused on, so commercial efficiency is not high, the quality of human resources is not high, and the use of resource factors is not effective.

Fourth, the company has not paid enough attention to investing in equipment, vehicles, and warehouses to serve the annual transportation and distribution of goods. The number of transportation workers is still limited, so the company often has to pay high costs for storing, preserving, and transporting food.

CHAPTER III: PROPOSALS FOR DEVELOPING THE MARKET FOR ESSENTIAL FOOD PRODUCTS OF TAN DUC TRADING COMPANY LIMITED

3.1. Viewpoints and orientations for developing the essential food market of Tan Duc Trading Company Limited

3.1.1. The company's perspective on developing the market for essential food products in the period 2018-2020

When the epidemic broke out, especially during the period of social isolation, many economic sectors were paralyzed, workers had to take time off work, income decreased, statistics showed that 85.3% of consumers had to save on spending during the period of social isolation due to covid.

– 19. Consumers tend to cut spending on non-essential products and increase consumption of health protection and anti-epidemic products, especially organic food products. Consumer surveys show that over 50% of customers have spent more on foods that enhance resistance and the immune system, foods of natural, organic origin, clean and healthy foods, etc. Of which, 63.7% of consumers in the survey have cut spending on products such as alcohol and beer.

In the context of people having to limit travel and gathering in crowded places to prevent the epidemic, consumers have changed shopping channels for both essential and non-essential products. Before the pandemic, the three main shopping channels for consumers were traditional markets (chosen by 73.5% of people), shopping malls and supermarkets (71.6%), and convenience stores (50.9%); when the epidemic broke out, the three channels chosen by consumers were online stores (59.8%), convenience stores (54.9%), shopping malls and supermarkets (50.9%). Consumers said that going directly to stores to shop has decreased significantly (76.24%).

In addition, especially with the development of technology, consumers are "empowering" themselves in choosing products when up to 55% of people in urban areas and 59% of people in rural areas spend time researching product information before shopping. In other words, it is consumers who are now leading the market, not businesses. Therefore, in the period of 2018 - 2020, the company has the following views on developing the market for essential food products:

Firstly, develop and expand the market for essential food products by diversifying business items.

The company needs to find new sources of supply for health protection foods (milk, nutritional foods, dietary supplements...) to diversify products supplied to the market.

Increase market expansion by promoting marketing of new products, promoting health benefits of products; develop promotional policies and special incentives for partners signing long-term contracts to maintain loyal customers and expand the distribution network.

Second, applying digital technology in food businesses

Applying digital technology to businesses, creating online ordering websites, home delivery services, expanding retail channels to reach more customers.

Use barcodes, check product quality, import and export dates, trace origin, and expiration dates on the website or via mobile applications to increase business reputation in the market.

Marketing products on social networking sites, conducting direct promotions through websites, helping to increase sales and sales speed.

Third, develop models of mini supermarket chains.

Search and select favorable geographical locations with high population density, create retail store branches, distribute goods directly to consumers, increase profits, and expand the company's distribution network.

3.1.2. Development orientation of essential food products market of Tan Duc Trading Company Limited in the period of 2018 - 2020.

Restructure the business lines to suit the long-term development strategy. Diversify business products to take full advantage of strengths, scale, network and brand. Based on the proposed activities, continue to restructure all activities, restructure the company and exploit loan capital to ensure production and business activities. Maintain stability and develop production and business, strive to bring the enterprise to achieve the goal of optimal profit.

Ensure to complete the task of being a reputable and quality business with service

best customers to meet the needs of domestic consumer market. Strive to bring more added value to customers after sales. Vietnam's economy is developing vigorously in all industries and fields. In that development trend, Tan Duc Trading Company Limited is not out of it, continuing to develop the successes achieved.

Expanding the consumption market and diversifying business products. Continuing to affirm its position in the market, striving to become a strong commercial development company. Striving to do profitable business, increase accumulation, preserve and effectively use borrowed capital, and make good use of the labor force. Investing in improving working equipment and office equipment to create the best working environment for employees.

Organize the market well in each area and build a suitable business method based on exploiting the existing potential and strengths. Update customer feedback information and quickly resolve customer complaints. Maintain the ISO 9001 - 22000 quality management system to develop high quality products and position the company in the market.

3.2. Solutions to develop the essential food market of Tan Duc Trading Company Limited

First, increase investment in marketing and product development.

Market research is the first step in product consumption activities that any business must conduct because simply business is always associated with the market and the larger the market, the more consumption capacity is expanded. The goal that the company aims for is to cover and cover the domestic market. In addition to traditional and key markets, the company needs to focus on exploiting new markets. Market research of the enterprise can forecast the production capacity and consumption capacity of a certain type of product or group of products in a certain market. Although the company has paid attention to the research and forecasting of demand for industrial wood flooring products, it has not been conducted regularly and systematically, the number and qualifications of market staff are not high, so the results of product consumption in the domestic market are not high, and the commercial development of this product still faces difficulties. Researching customers and competitors helps businesses determine consumption trends for each product, requirements for product quality, design, price.

in the future. From there, build a long-term production and business strategy. Each customer group has very different needs, tastes and preferences. Therefore, businesses need to classify the market according to income to have a reasonable product supply policy, suitable for each group.

Second, build and effectively manage distribution channels.

The company's current distribution channel is divided into two main systems: the wholesale system and the retail system. These two systems are operating very well at the company, however, the company has not yet focused on a method of consuming goods that is currently quite developed for the current essential food consumption market, which is implementing projects. The distribution network in this market is wide but not deep and unevenly distributed. The product introduction and sales system is mainly concentrated in traditional districts. Products reach consumers mainly through intermediaries, so the price of wooden flooring products is often higher, affecting consumers. Therefore, the company needs to expand the distribution channel at all levels of agents, mainly through agents, so that the company can control the price of goods supplied to customers appropriately.

Third, improve the financial capacity of the enterprise.

Any business that wants to maintain and develop its production and business activities needs to constantly improve its financial capacity. That is financial resources, human resources, and technical facilities. The same goes for companies operating in the industrial wood flooring business. In order to improve results and commercial efficiency, businesses need to focus on investing in capital, labor skills, and facilities for their businesses. The company mainly invests capital in purchasing machinery, equipment, and materials to promote the company's brand image. To improve its financial capacity, the company needs to:

• Expand capital sources by diversifying channels and forms of capital mobilization within the company. Capital attraction channels can be enterprises and especially from commercial banks.

• Make financial reports transparent, ensure the authenticity and accuracy of financial reports to create trust with investors.

• Promote debt collection measures to increase capital turnover. Focus resources on implementing key projects.

Fourth, focus on freight forwarding services and after-sales return policies.

Essential food products have their own characteristics compared to other products, that is, when distributing goods, the company provides transportation services and some after-sales policies. To attract many customers, the company must not only provide good quality essential food products but also proactively create the best services for its customers. After-sales service plays an important role in maintaining relationships with the company's customers.

Fifth, improve the quality of labor resources

Human resources are the most important resource for any company. The quality of human resources doing research to predict market demand and sales staff directly contacting the market of the company is still not meeting the demand well.

Therefore, the company needs to establish a plan for recruiting and training human resources in a systematic manner to bring about the highest efficiency. Especially for the management and business activities of employees at some stores, the company needs to select a team of managers with good capacity, experience in management and able to withstand challenges in the face of difficulties.

Determining the need to recruit staff is based on the human resource plan to implement the company's strategic goals. Determining the need to recruit staff is based on the plan set forth by the board of directors and the selection of staff is through testing of qualifications, capacity and ability to meet job requirements in the form of a trial period. Especially for staff in the sales department, this is an important force contributing to promoting product consumption, but to solve the current situation, the company needs to:

There are policies for rewarding and praising employees with achievements, and reprimanding and punishing employees with bad behavior that affects the company's interests.

Not only focusing on developing knowledge and abilities, the company also needs to pay attention to the spiritual life of employees by creating an equal working environment, organizing tourism, sports and cultural activities for employees to promote their spirit.

Developing the market for essential food products of Tan Duc Trading Limited Company - 6

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