MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF COMMERCE
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MAI THU TRANG
WHOLESALE DISTRIBUTION CHANNEL MANAGEMENT OF PORK PRODUCTS OF INVESTMENT COMPANY LIMITED
DEVELOPING DABACO PIG FARMING IN THE NORTHERN MARKET
MASTER'S THESIS IN ECONOMICS
HANOI, 2017
MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF COMMERCE
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MAI THU TRANG
WHOLESALE DISTRIBUTION CHANNEL MANAGEMENT OF PORK PRODUCTS OF INVESTMENT COMPANY LIMITED
DEVELOPING DABACO PIG FARMING IN THE NORTHERN MARKET
Major: Business Administration Code: 60.34.01.21
Master's thesis in economics
Scientific supervisor: Associate Professor, Dr. An Thi Thanh Nhan
HANOI, 2017
COMMITMENT
I hereby certify that this is my own research work and was scientifically guided by Associate Professor, Dr. An Thi Thanh Nhan. The research content and results in this topic are honest and have not been published in any form before. The data in the tables for analysis, comments and evaluation were collected by the author himself from various sources with clearly stated sources. In addition, the thesis also uses some comments, evaluations as well as data from other authors and other organizations with citations and source notes. If any fraud is detected, I will take full responsibility for the content of my thesis.
Author
Mai Thu Trang
THANK YOU
To complete this thesis, I would like to express my deep gratitude to Associate Professor, Dr. An Thi Thanh Nhan, for her dedicated guidance throughout the process of writing my graduation thesis.
I sincerely thank the teachers in the Marketing Department, Graduate School of Hanoi University of Commerce for their dedication in imparting knowledge during my years of study. The knowledge acquired during the study process is not only the foundation for the thesis research process but also a valuable asset for me to step into life firmly and confidently.
I sincerely thank the Board of Directors of Dabaco Pig Breeding Investment and Development Company Limited for allowing and creating favorable conditions for me to intern at the company.
Finally, I wish you good health and success in your noble career. I also wish all of you in the company good health and great success in your work.
The author sincerely thanks!
Author
Mai Thu Trang
INDEX
COMMITMENT i
ACKNOWLEDGEMENTS ii
TABLE OF CONTENTS iii
TABLE v
LIST OF ABBREVIATIONS vii
INTRODUCTION 1
1.1. Urgency of research topic 1
1.2. Overview of research situation 2
1.3. Research objectives of topic 5
1.4. Research object and scope 5
1.5. Research methods 5
1.6. Thesis structure 7
CHAPTER I. SOME THEORETICAL ISSUES ON MANAGEMENT 8
WHOLESALE DISTRIBUTION CHANNEL AT MANUFACTURING ENTERPRISES 8
1.1. Wholesale distribution channel of manufacturing enterprise 8
1.1.1. Concept and function of wholesale distribution channel in manufacturing enterprises 8
1.1.2. Characteristics of wholesale distribution channels at manufacturing enterprises 11
1.1.3. Wholesale distribution channel structure at manufacturing enterprises 13
1.2. Wholesale distribution channel management at manufacturing enterprises 19
1.2.1 Concept and model of wholesale distribution channel management in manufacturing enterprises 19
1.2.2. Content of wholesale distribution channel management at manufacturing enterprises
................................................................ ................................................................ ..............................21
1.3. Factors affecting wholesale distribution channel management in manufacturing enterprises 36
1.3.1. Macro environment 36
1.3.2. Wholesale distribution channel environment 38
1.3.3. Enterprise resources 38
CHAPTER II. ANALYSIS OF THE CURRENT STATUS OF WHOLESALE DISTRIBUTION CHANNEL MANAGEMENT OF PIG MEAT OF DABACO PIG BREEDING INVESTMENT AND DEVELOPMENT COMPANY LIMITED IN THE NORTHERN MARKET 40
2.1. Overview of the company and business results of live pigs of Dabaco Pig Breeding Investment and Development Company Limited 40
2.1.1. Overview of Dabaco Pig Breeding Development Investment Company Limited 40
2.1.2. Business results of live pigs of Dabaco Pig Breeding Investment Company Limited in the years 2013-2015 45
2.2. Current status of wholesale distribution channel management of live pigs of Dabaco Pig Breeding Investment and Development Company Limited 46
2.2.1. Product characteristics and wholesale market of Dabaco company 46
2.2.2. Current status of wholesale distribution channel network 48
2.2.3. Analysis of wholesale distribution channel management situation of Dabaco company 53
2.3. Conclusion and factors affecting the results of wholesale distribution channel management of Dabaco Pig Breeding Investment and Development Company Limited 62
2.3.1. Conclusion of distribution channel management activities 62
2.3.2. Analysis of some factors affecting the results of wholesale distribution channel management 64
CHAPTER III. SOME SOLUTIONS TO IMPROVE THE MANAGEMENT OF THE WHOLESALE DISTRIBUTION CHANNEL OF PIG MEAT OF DABACO PIG BREEDING INVESTMENT AND DEVELOPMENT COMPANY LIMITED IN THE NORTHERN MARKET 67
3.1. Development trend of pork market in Vietnam and development strategy of Dabaco company to 2020 67
3.1.1. Development trends of pork market in Vietnam 67
3.1.2. Development strategy of Dabaco Company to 2020 74
3.2. Solution to improve wholesale distribution channel management of Dabaco Pig Breeding Investment and Development Company Limited in the Northern market 77
3.2.1. Solutions for Marketing Distribution Research 77
3.2.2. Establishing wholesale distribution channel system objectives 79
3.2.3. Improvements in the construction and design of wholesale distribution channels 80
3.2.4. Perfecting the wholesale distribution channel organization system 85
3.2.5. Propose methods to control and evaluate wholesale distribution channels.86
3.2.6. Some support solutions to manage wholesale distribution channels 90
3.3. Some other recommendations 92
CONCLUSION 94
LIST OF REFERENCES 95
APPENDIX 1
APPENDIX 2
LIST OF TABLES, CHARTS, FIGURES
BOARD
Table 2.1. Labor qualification and age table of Dabaco company 41
Table 2.2. Business performance results (2013 - 2015) 45
Table 2.3. Some differences in the channel membership contract of Dabaco 50 company
Table 2.4. Freight costs of Dabaco company in 2013-2015 52
Table 2.5. Revenue through Dabaco's slaughterhouse channels in 2015..58 Table 2.6. Sales targets with Dabaco's channel members 61
Table 2.7. Market share of livestock farms in the Northern provinces of Dabaco company in 2014-2015 63
Table 3.1. Prices of some food items on Hanoi market on May 23, 2016
................................................................ ................................................................ ..............................71
Table 3.2. Method of evaluating the proportion of channel member activities based on the proposed influence criteria 89
Table 3.3. Classification of channel members after using the influence criteria method 89
IMAGE
Figure 1.1. Simple distribution channel model 9
Figure 1.2. Wholesale distribution channel model of manufacturer 9
Figure 1.3. Wholesale distribution channels of manufacturing enterprises 12
Figure 1.4. Elements of wholesale distribution channel 14
Figure 1.5. Zero-level distribution channel model 16
Figure 1.6. One-level distribution channel model 17
Figure 1.7. Vertical linkage structure of wholesale distribution channel 19
Figure 1.8. Distribution channel management model of manufacturing enterprise 21
Figure 1.9. Contents of wholesale distribution channel system design 24
Figure 1.10. Channel structures in the wholesale distribution channel system 25
Figure 1.11. Channel member selection process 28
Figure 1.12. Levels of vertical integration in the wholesale distribution channel system 31
Figure 1.13. Basic physical distribution channel decisions 32
Figure 1.14. The process of motivating members to cooperate 34
Figure 1.15. Steps to resolve conflicts in channel 35
Figure 1.16. Process of controlling and evaluating the activities of channel members 36
Figure 2.1 Management structure of Dabaco company 41
Figure 2.2. Steps to complete an order of Dabaco company 50
Figure 2.3. Transportation process of Dabaco company 51
Figure 2.4. Wholesale distribution channel model of Dabaco company 55
Figure 3.1. Development strategy of Dabaco 75 company
Figure 3.2. Proposed process for selecting distribution channel members 78
Figure 3.3. Proposed order management process 84
Figure 3.4. Process of checking the activities of members applied in the distribution channel of Dabaco company 86
Figure 3.5. Steps in developing channel member evaluation criteria 88