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Thesis
Solution to complete the car tire distribution channel system at Danang Rubber Joint Stock Company
INTRODUCTION
1. Urgency of the topic:
Distribution is a very important activity in competition, it determines the effectiveness of the company's business operations, ensures fast operation, creates relationships with customers and expands the market. Analysis of the current status of the distribution system at the Company shows that there are many issues of concern that if not promptly resolved, the output in the coming years may decrease even more sharply, such as the Company has not identified a specific target market, leading to widespread investment while resources are limited, the Company is using the same distribution system in all markets, and each market area has many differences such as market size, customer purchasing behavior, customer requirements for service assurance level, geographical distance... so how effective will using the same distribution channel model as it is now?
Danang Rubber Joint Stock Company specializes in manufacturing products such as: automobile and motorbike tires... It is a large enterprise in the Central and Central Highlands regions and has a wide network across the country. With the goal of capturing the potential domestic market, the company has encountered many difficulties when facing fierce competition from two main competitors, Sao Vang Rubber Company and Southern Rubber. To facilitate its strategic goals, it is necessary to have reasonable distribution solutions. Through research on the current status of the company's car tire distribution system, it shows that there are many issues of concern such as:
- Inspection and control work for agents is still limited.
- There is no uniformity and unity in sales and marketing among agents.
- Agent's requirements are not as promotion, quantity of goods...
Because of the importance of the distribution system and the current situation of the distribution system that the company is facing, I chose the research topic: "Solutions to perfect the distribution channel system of automobile tires at Da Nang Rubber Joint Stock Company".
2. Research objectives of the topic:
+ Partially overcome the limitations of the current distribution system.
+ Increase consumption output, increase revenue with reasonable cost.
+ Improve and enhance the quality of operations of the distribution channel system. Increase the level of control and management of members in the distribution channel, motivate and promote sales efforts of members in the channel to increase consumption output, and at the same time build a mutually beneficial cooperative relationship between the company and intermediaries.
3. Research method:
Data collection through:
- Reports and documents of the internship agency and relevant references
relate to.
- Opinions of employees in the internship company.
4. Research scope:
- Time: Up to 2005, in line with the Company's business strategy.
- Space: Attached to the distribution system of Da Nang Rubber Joint Stock Company.
Da Nang.
5. Problem solving direction:
- Analyze and evaluate reports and collected information. On that basis
Find out the strengths and weaknesses in the company's business operations in general and in the current distribution system.
- Based on the theory and practical situation of the company, propose solutions and handling for the company.
INTRODUCTION
INDEX
PART I: SOME THEORETICAL ISSUES ON DISTRIBUTION CHANNEL SYSTEM 1
1.1. CONCEPT AND IMPORTANCE OF DISTRIBUTION ACTIVITIES
IN BUSINESS 1
1.1.1. Concept 1
1.1.2. The role of distribution 1
1.2.3. Distribution function (b)2
1.1.4. Relationship with other elements in marketing-mix 3
1.1.5. Problems encountered due to lack of channel management 3
1.2. BASIC CONTENTS RELATED TO DISTRIBUTION CHANNEL 4
1.2.1. Target market 4
1.2.2. Variables affecting the distribution channel structure 5
1.2.2.1. Market characteristics 5
1.2.2.2. Product characteristics (c)6
1.2.2.3. Characteristics of the company (c)6
1.2.3. Determine the form of distribution 8
1.2.4. Types of distribution channels 9
1.2.5. Distribution channel organization (b)9
1.2.6. Distribution channel activities (b)10
1.2.6.1. Distribution channel activities (b)10
1.2.6.2. Causes of conflicts in distribution channels 10
1.2.7. Confirm the main options of the distribution channel 11
1.2.7.1. Intermediate types 11
1.2.7.2. Number of intermediaries 12
1.2.7.3. Conditions and responsibilities of channel members (b)12
1.2.7.4. Evaluation of main channel options (b)12
1.3. DISTRIBUTION CHANNEL MANAGEMENT 13
1.3.1. Planning and deciding on distribution channels 14
1.3.2. Organizing the retail system 16
1.3.2.1. According to service level, there are 16
1.3.2.2. According to business items, there are 16 types
1.3.2.3. According to the selling price, people distinguish 16
1.3.2.4. Non-store retail, including 16
1.3.2.5. Chain Store 17
1.3.2.6. Consumer cooperatives 17
1.3.2.7. Monopoly organization 17
1.3.3. Organizing the wholesale system 17
1.3.3.1. Commercial wholesaler 18
1.3.3.2. Brokers and agents 18
1.3.3.3. Manufacturer's branches and offices 18
1.3.3.4. Miscellaneous wholesalers 18
1.3.3.5. Organizing the sales force 18
CHAPTER II: CURRENT STATUS OF DISTRIBUTION CHANNEL SYSTEM – PRODUCTION AND BUSINESS ACTIVITIES AT RUBBER COMPANY
DANANG 21
I. INTRODUCTION OF DANANG RUBBER JOINT STOCK COMPANY 21
1. Formation and development process 21
a/ Formation process 21
b/ Development process of DRC 22
c/ Achievements in the past 23
2. Functions and tasks of DRC 24
a/ Functions of DRC 24
b/ DRC 24's mission.
3/ Company organization chart 26
a/ Organizational chart 26
b/ Tasks of each department 27
II. OVERVIEW OF RESOURCE FACTORS 28
1/ Company labor structure 28
2/ Technical materials and technology 30
a/ Land use situation 30
b/ Situation of using machinery, equipment and technology 30
3/ Financial situation 31
III/ Business performance results 2006 - 2008 33
1. Business indicators 33
a/ About production and business 33
b/ Income statement 34
c/ Key financial parameters 36
IV/ Analysis of DRC's business environment in the current period
today 39
1/ Macro environment 39
a/ Economic environment 39
b/ Technological environment 39
c/ Demographic environment 40
d/ Political and legal environment 40
e/ Socio-cultural environment 41
2. Micro environment 41
a/ Customer 41
b/ Competitors 42
c/ Supplier 42
d/ Potential competitors 43
e/ Relevant parties 44
3. Assessing Opportunities – Threats and Strengths – Weaknesses 44
a/ Strengths 44
b/ Weakness 44
c/ Opportunity 45
d/ Threat 45
V. CURRENT STATUS OF THE AUTOMOTIVE TIRE DISTRIBUTION CHANNEL SYSTEM IN THE COUNTRY
DANANG RUBBER JOINT STOCK COMPANY 45
1/ Distribution policy 45
2/ Analysis of the current status of the car tire distribution channel network at Cao Joint Stock Company
Danang 46
3/ Conflicts in distribution channels 48
a/ Horizontal conflict 48
b/ Vertical conflict 49
4/ Evaluate successes and shortcomings 49
a. Achievements 49
b. The existence 50
c. Cause 51
CHAPTER III: SOLUTIONS TO IMPROVE THE AUTOMOTIVE TIRE DISTRIBUTION CHANNEL SYSTEM AT DA NANG RUBBER JOINT STOCK COMPANY 52
I/ Basis for proposed solution 52
1/ Goal 52
2/ Direction of operation 53
3/ Product positioning 53
4/ Marketing policies to support product consumption at the Joint Stock Company
Danang Rubber 54
a/ Product policy 54
b/ Price policy 54
c/ Advertising and promotion policy, PR work 55
d/ Advertising and trade promotion 55
II/ SOLUTIONS TO IMPROVE THE DISTRIBUTION SYSTEM AT THE WORKSHOP
DANANG RUBBER JOINT STOCK COMPANY 56
1 Perfecting policies to stimulate distribution intermediaries 56
2/ Perfecting price policy 56
3/ Perfecting the work of rewards and encouragement 57
4/ Improve customer service quality 57
5/ Check the distribution intermediaries 59
6/ Resolve channel 59 conflicts
CONCLUSION
REFERENCES
LIST OF TABLES AND FIGURES
Relationship diagram with other elements in marketing mix 3
Channel Types Diagram 9
Company Organization Chart 26
Table 1: Labor structure of company 29
Table 2: Company premises area 30
Table 3: List of machinery and equipment usage at company 30
Table 4: Balance sheet 31
Table 5: Business indicators 33
Table 6: Business performance results table 34
Table 7: Financial parameters 2006 – 2008 36
Distribution channel structure diagram 46
Table 8: Sales through distribution channels 47