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CHAPTER 1: INTRODUCTION

I. Background

Vietnam Environment Industrial Energy Technology Joint Stock Company,

which formerly named Dan Xuan Company (this is the name under

incorporation license), was established in 1994. On 05th May 2010, Dan

Xuan Company has cooperated with the strategic partners of the energy

sector. Then it is renamed to Vietnam Environment Industrial Energy

Technology Joint Stock Company. During the 20 years of operation, the

company has experienced many national-scale environmental treating

projects which have brought them a confirmative prestige in the world. The

company specializes in environmental, water, and air treatment.

Additionally, the company has also varied in the other fields including

electronic dictionary, educational facilities, power output, and

environmental equipment such as filter pumps and floating suction hose.

Filter pump products include 3/4Hp, 1Hp SB10, 1Hp, 1.5Hp, 2Hp, 3Hp,

1.5Hp SB15, 2Hp SB20, and 3Hp SB30 .The Company has the two main

branches in Ha Noi and Ho Chi Minh City. The first office in Ha Noi is 24th

at Tran Hung Dao Street. The second office in Ho Chi Minh is 496th at 3/2

street, ward 14, and district 10. The company’s distribution channel is

divided into several parts with different functions. Technical department

take on the roles of delivery department. This channel is presented in figure

1.

Ngo Thi Hai Ly

(Merchandising Manager)

Dang Van Thanh

Specializes in

wholesale branch

Nguyen Van Hung

Specializes in

retailer branch

Tran Van Dong

Specializes in

direct channel

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Figure 1: The distribution channel of filter pumps

II. Rationales

Distribution channel plays an important role in the company. It influences

on the development of the company such as products, services, and

customers. If distribution channel operate inefficiently, customers will not

know the company’s products. Therefore, the company will not sell the

products as well as meet the customer’s demand when the company does not

develop distribution activities in an effective way.

III. The purposes of the study

The internship recognizes the importance of distribution channel in

Vietnamese economy as well as the development of the company. Therefore,

the intern aims to understand the working of the company’s distribution

channel in each channel of filter pump products. To understand the working

of the company’s distribution channel, the interns want to make the

following issues.

Firstly, the interns want to find out how many kinds of distribution are

applied in the company. The second issues is to find out how many the

numbers of filter pumps in each type are sold through each distribution

channel from the company within three months. The third issue is to find out

what kind of filter pump products in distribution channel is the best-selling

product for the company. Finally, the intern is to find out how to utilize the

company’s distribution channel to increase the sales of filter pumps within 3

months.

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IV. Significance of the study

For the company, the distribution channel plays an important role in the

success of the company. Through the report, the company can see some

aspects of recommendations for improving as well as the company can also

use the recommendations to develop the distribution channel of filter pumps.

For the internship, the intern has the opportunity to work directly with the

company. The intern hopes that she can apply her knowledge in this

internship because this paper relates to marketing. In addition, the

company’s instructor helps the interns in the process of working to complete

the report.

V. Organizations

Chapter I is the introduction of the company, the study’s rationales, the

significance, and paper organizations.

Chapter II is the literature review which shows the definitions of distribution

channel, the components of distribution channel, and the importance of

distribution channel.

Chapter III is use to research methods which include preparation, procedure

and the others.

Chapter IV shows the findings and data analysis which is concerned with

the information of the Company’s filter pumps through the distribution

channel by graphs.

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Chapter V summarizes the whole study and offers some recommends for the

Company’s distribution channel

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CHAPTER 2: LITERATURE REVIEW

I. Distribution channel

1. Definitions

A distribution channel is defined as tool in the process of bringing the

products for consumption or use by their customers such as consumers

or business users. It includes two type of channel which is direct and

indirect channel. (Kotler, P. & Armstrong, G., 2006, Pelton, L. &

Strutton, D. & Lumpkin, R. J., 2001, Stanton, W. J., 1996)

2. The importance of distribution channel

The company always needs the distribution channel to bring the

products as well as services to customers. Consequently, distribution

channel plays an important role in the company. Firstly, a company’s

channel decisions directly affect every other marketing decision such as

the price of the product. Secondly, distribution channel can reflect the

operations of a company on the market. Thirdly, the reliability of

customers for products or services as well as manufacturers is also an

important element in the distribution channel. Next, middlemen in the

distribution channel have a role in providing information about

customers and products to the company. Therefore, middlemen help the

company to meet the specific needs of customer segments. In addition, it

also helps the company to reduce the responsibility for customer

services. (Kotler, P. & Keller, K. L., 2003, Mullins, J. W. & Walker, O.

C., 2012)

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3. Customer service requests

Customer service requirements in the distribution channel refer to the

customers’ needs for the process of carrying a product from the

manufacturers to customers in a convenient way. For example, customer

service requests include the order cycle time, communication,

convenience, and post sales service. The order cycle time means a

period of time that the manufacturers receive, process, and deliver to

customers. Communication creates a long-term relationship between the

buyer and the seller. Convenience refers to a system of store which is

sufficiently flexible to meet the specific needs of different customers.

After - sales service is a type of services including repair, installation

and resolve the problems from the company for their consumers.

(Mullins, J. W. & Walker, O. C., 2012)

4. The components of the distribution channel

4.1 Direct channel

4.1.1 Definitions

The direct marketing channel is one of two important

channels in distribution. It is defined as a way that the

company sells directly and contacts to the ultimate users or

businesses without any intermediary channel. There are two

types of direct channel such as in-store and outlet store. In-

store is mainly performed within a store. It involves sales

promotion, merchandising, product samples, and media

advertising. Outlet store is considered as the chain of retail

store in which the manufacturers sell their goods directly to

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customers. (Kotler, P. & Armstrong, G., 2006, Onkvisit, S. &

Shaw, J. J., 2004, Jones, S. H. 1997)

4.1.2 Place utility

The company should identify many factors of location to

open a retail store such as accessibility, visibility, and traffic

for both in-store and outlet store. Stores want to be located at

crowded areas where the company’s customer segments live

and work. The company must ensure that a store which is

located where their customer can be seen. Stores should be

placed at highway streets or nearby center. In addition, the

company needs to think about the distance from the shop to

customers’ home which can buy the products in a convenient

way. Depending on the type of business, a company’s stores

should not be placed nearly its competitors. (Jones, S. H.,

1997)

4.1.3 Advantages

Direct channel brings many benefits to the company or the

manufacturer when they use this channel. One of the

advantages of this channel is market coverage. Businesses

often create a marketing plan for their products. The

marketing plans only start with the choice of market coverage

which will identify the target market for their products. To

select a market coverage strategy, businesses should clearly

identify their products for one or several segments. Another

advantage is greater control because it helps business in the

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process of distributing for the company’s products as well as

services. Therefore, the company can easily manage staff

and the process of selling the product. In addition, the

company has opportunities to interact and receive the

customer’s feedback directly with their customers by

telephone, email, or questionnaire. Consequently, the

company has the chance to observe new trends as well as

customers in the market share. (Onkvisit, S. & Shaw, J. J.,

2004)

4.1.4 Disadvantages

However, direct channel also has some disadvantages. This

channel is time consuming and expensive. If the company

has a small-scale business, direct channel will not be used in

an effective way. The company sells directly to its customers

without using intermediary, so they must spend more money

such as the cost of hiring transportation and training

salesperson. For their customers, they will have limited

choice on the products to buy. When using direct channel,

the company should focus on the sales volume rather than the

needs and satisfaction of customers because the sale volume

will make more profits for the company. With the

convenience of direct channel, the marketers just focus on the

needs of individual customers; therefore, they lose the other

needs of customers. (Onkvisit, S. & Shaw, J. J., 2004,

Ketzenstein, J. P. 1986)

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4.1.5 How to utilize direct channel efficiently

To utilize the direct channel efficiently, the company need to

identify some factors such as the costs, the nature of their

products, personnel, and location of stores. First of all, the

company needs to set up a sales department to manage the

process of bringing and delivering the product to their

customers. The costs include the company’s stores rental,

transportation, and staffs. Personnel department include

managers and sales teams which help business to sell goods

and find new customers. The company also needs to train

professional and dynamic salespersons to serve their

customers .If a business operates in a large - scale, it must

have a large capital to maintain the direct channel such as the

cost of transportation. In order to establish where the

company is situated in relation to the rest of the marketplace,

the company also needs to prepare these factors such as

business environment, industry, competitors, suppliers, and

target market. Business environment is the combination of

external factors and internal factors that influence the

company’s activities. External factors include the weather

conditions and government’s policies such as economic,

political, and social. Internal factors include capital and staff.

A target market is also an important factor because the target

market is a group of customers that the company wants to

serve. Businesses always have competitors on the market

share. Competitors mean that a company offers a similar

product or service in the same industry as well as target

market of another company. Location is also an important

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factor when the company wants to use the direct channel

efficiently. The company’s stores must be placed where it

can sell and serve directly the company’s customer segments.

Locations of stores determine the success of business because

it is a tool to bring goods and services to consumers.

(Onkvisit, S. & Shaw, J. J., 2004, Ketzenstein, J. P., 1986)

4.2 Indirect channel

Indirect channel refers to the way that the company sells the

products through middlemen to deliver the ultimate users. It consists

of many intermediary levels such as agents, distributors, retailers,

and wholesalers. (Kotler, P. & Armstrong, G., 2006, Onkvisit, S. &

Shaw, J. J., 2004)

4.2.1 Distributors

A distributor is like a wholesaler but generally takes a more

active role. It is defined as a system that a distributor

purchases the products from the manufacturers and resells for

the other intermediary levels such as retailer, wholesaler, and

the ultimate users. (Kotler, P. & Keller, K. L., 2003,

Onkvisit, S. & Shaw, J. J., 2004)

The company wants to select the right distributor which

receives the most suitable goods or services. Therefore, they

need to identify some elements of place. Depending on the

characteristics of products, the company will choose a

distributor in rural or urban. The characteristics of the

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company’s product create a difference with the product of

another company on the market. It also helps to determine

the price of the company’s product. If the company selects a

distributor in rural areas, it can be suitable for the exchange

goods. In contrast, if the company selects a distributor in

urban areas, the distributor must have enough space and large

warehouse to store the goods. .The distance from the

manufacturers to a distributor is also an important factor. If

the distance is too long, the company will spend more money

on delivery times and freight costs. A distributor should be

placed in the most suitable areas for the manufacturer in the

process of distributing goods. (Jonathan, L., 1994)

There are a number of advantages of using a distributor in

distribution. The first advantage is to create a retail network.

This is effective for the manufacturer when opening a new

international market. Retail network helps the company to

expand the market share as well as find potential customers

for the company. The second advantage is to help the

manufacturer to manage and maintain the market through the

distributor without spending more money on sales because a

distributor can control the flow of goods for the company in

distributing products to other intermediary levels. Thirdly,

the distributor can reduce the responsibility of the

manufacturer’s need to invest in a customer service

department as well as reduce the cost of customer service.

Consequently, a distributor can exchange and meet

customers’ information needs for the manufacturers.

(Onkvisit, S. & Shaw, J. J., 2004)

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However, the manufacturer must be careful about selecting a

distributor. When the manufacturer uses the distributor, they

may lose the control of the market segment and prices.

Moreover, the distributor possibly increases the chance of

miscommunication between customer and manufacturer.

Price is another problem with the distributor. For example,

customers may not satisfy with distributors when they buy

small quantities of goods with high prices from distributors.

Small distributors do not have enough time to manage and

train the marketing plan. In addition, a small distributor also

does not have enough professional and experienced staff.

(Clarke, G. & Wilson, I., 2009)

If a company decides to use a distributor, the company

should prepare some essential things to use the distributor

efficiently. The best way is that the company chooses the

most suitable distributor for their target market. This means

that a distributor helps the company to sell products in the

company’s target market. To select the most suitable

distributors, the company must depend on the distributor’s

request. These requests are suitable for the characteristics of

products, service, customer segments, and location of stores.

The company should maintain a strong relationship with the

distributor to receive customers’ information needs.

Therefore, the company will not lose the control of target

market as well as miscommunication between customers.

Selecting a distributor, it has many professional and

experienced staffs in management. The company must ensure

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that a distributor will not increase the price of products

without permission from the manufacturers. (Jonathan, L.,

1994 & Suki, N., 2011)

4.2.2 Retailers

A retailer refers to an individual or a business that receives

the goods from a supplier or a wholesaler and resells them to

the ultimate users. (Kotler, P. & Armstrong, G., 2006)

A retailer has many store location factors to consider when

the manufacturers choose a place for a retailer. A retail store

can be placed in many places such as mall space, downtown

areas, office buildings, home-areas, and shopping center.

Mall space of retailers is an important factor in selecting a

retailer. The company will set up a shopping space of small

or large retailers. It depends on the activities of the company

and the characteristics of products. The company must ensure

that the location of retail store is suitable for shopper. A

shopper can easily purchase the products at retail store

because it saves time. Additionally, the company should

clearly identify the customer segments such as sex, age, and

career to put the most suitable retail stores. Shopping center

is a convenient place for retailer. Businesses often hire many

places in the shopping center to sell products. (Barry, R.B. &

Joel, R., 2012)

Retailers help the manufacturer or the wholesaler to increase

profits and sales as well as bring the right product to

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customers. Additionally, retailers also add value for the

customers in terms of quality and service. They can make

profits when they choose the manufacturer’s product at a

lower price. Moreover, the retailers have the opportunity to

meet the customer’s demand and provide customer’s

feedback. Customers can feel comfortable when they can buy

the product in a convenient way through retail system. A

retailer creates a closer relationship between the

manufacturers and customers. (Jennings, G., 2008)

On the other hand, the company needs to understand the

operations of retailers because the retailers also have the

potential disadvantages and risks. For the large – scale

retailing, the expansion of the market through the retail

system may increase the costs for the producer such as the

cost of managing both customer and retailer relations. The

manufacturer may find it difficult to control when the

number of retailing increases. Also, a retailer cannot meet the

specific demand of customers. (Jennings, G., 2008)

Retailers must decide how they will differentiate and position

in the market that they set a target to make profits. The

manufacturers or wholesalers make a correct decision in

selecting a large – scale retail store or small – scale retail

store. Depending to the type of business, it should open retail

stores in the control of the company. The costs of opening

retail stores include staff, place, and transportation. To

manage these stores, the company needs to have an abundant

labor force as well as an experienced staff. It helps retailers

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which meet the needs of customers and get feedback from

customers. (Kotler, P., 2000)

4.2.3 Wholesalers

A wholesaler is viewed as a firm or organization which

operates as intermediary level. It takes the goods from the

supplier and resells them to other channel such as retailers,

institutions, and the ultimate users. (Kotler, P. & Keller, K.

L., 2003)

A wholesaler may also perform storage and warehousing

functions. Therefore, the company should be careful in

selecting a location for wholesalers. Wholesalers should be

placed in major metropolitan city, intercity, rural, and

convenient transportation areas. The major metropolitan city

is a facility location for wholesalers. Additionally,

wholesalers will easily move a large quantity of goods from

manufacturers and resell to agents, brokers, and other

wholesalers. Transportation such as roads, airports, aid rail

also affects the movement of goods. Wholesaler should not

be placed in a location where the traffic is complex, narrow

streets, and crowded neighborhoods. For the company

needing a large facilities, the company decides to choose a

wholesaler in inter – city. The movement of goods becomes

flexible in distributing goods to other channels. The best way

is that a wholesaler should be placed in wide space, major

roads and large warehouse to store goods. (LeRoux, M. N.,

2012)

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A wholesaler takes on the important roles in indirect

channel. Wholesalers are considered as a bridge between the

manufacturers and other channels, especially retailers.

Therefore, it brings many advantages for the manufacturers.

First of all, wholesalers can deal in a variety of different

products because it usually has a large warehouse to store the

goods. Moreover, the wholesaler can also provide many

goods for retailers as well as increase the sales for the

manufacturers. In addition, wholesalers will have a greater

market share as well as attract new customer segments.

Another advantages of wholesalers, it also offer a customer

services to promote the development of products. Customers

have the opportunity to satisfy their specific needs. (LeRoux,

M. N., 2012)

However, the manufacturers will also have the disadvantages

of wholesalers. The widespread of wholesaler also costs

money. Land, building, and other storage locations are

getting expensive transport costs. Additionally, the

wholesaler cannot return the goods to the manufacturers

when the goods were not all sold. Price competition is one of

the disadvantages for wholesalers. Customers always think

that they can purchase goods at low price from retailers

rather than wholesalers. (Suki, N., 2011, LeRoux, M. N.,

2012)

The company should implement some steps to utilize the

wholesaler efficiently. Firstly, the company should make the

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connection with the wholesaler who will buy the company’s

products. Accordingly, it creates a closer relationship

between the manufacturer and other channel in the supply of

products and services. After that the company should ask the

wholesalers about their expectations in terms of delivery,

ordering, and volume. When the company knows the

expectations of wholesalers, they will meet the needs of

wholesalers about products and services which they want to

buy. In selecting a wholesaler, the company should choose

wholesalers which have enough storage space. The company

must ensure that wholesalers can provide a full range of

services for customers. In addition, the company needs to

develop the price’s policy for wholesalers in order to reduce

the price competition between wholesalers and retailers.

(LeRoux, M. N., 2012, Kotler, P., 2003)

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CHAPTER 3: IMPLEMENTATION PROCEDURE

I. Instruments

Two research methods for this study was observation and desk research.

Desk research is a form of research related to analysis of information that

already exists. The interns used desk research to collect the data of the

distribution channel. the interns also has been found documents and

information in existing sources such as books, the company’s documents,

and internet involving the distribution channel in marketing. After gathering

information from available sources, the interns began to analysis the data as

well as information.

Observation research is a type of research method that involves the direct

observation of the company’s phenomenon during a period of internship.

This research is also important to find information for the company’s

distribution channel. The intern has been observed the process of distributing

the goods of company and some aspects of this issue. The interns attempted

to build on work skills which exploit some aspects of the company’s

distribution channel within one month.

II. Procedure

1. Preparation

When the internship got the paper, she had to find available documents

which involve this study to research. The available information obtained

from book, internet, and the company’s documents which involved in the

distribution channel. During a period of internship, the interns prepared

the application blank from school. Meanwhile, the interns began to find

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and apply for the company. Then, the interns had been used the suitable

research methods for this study. The interns also prepared some skills to

work as well as analysis information that she found.

2. While-internship stage

The interns had to balance the time to work and write the report.

Therefore, the interns asked for permission of the company that the

interns worked the four days a week in the morning from 7 am to 11 am.

The interns decided to find information and write the report in the

remaining time. These work during a period of internship involved the

process of delivery that the interns is guided to write the orders, receive

customer information through telephone, and save all of the customer

information.

Additionally, the interns also worked as take care of existing customer

and find new customer for buying filter pumps for environmental sector.

The interns just observed the process of selling, a list of the goods, and

vouchers. The interns began to collect the data of the distribution channel

and then write each chapter in the report.

3. After-internship stage

After a period of internship, the intern was received the data of sales

through the company’s distribution channel. She analyzed the data and

the process of work to write the study. To complete the report, the interns

needs to classify, analyze, and synthesize essential information for the

study. At the same time, the internship applied certificates of internship

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from company within one month. Finally, the interns will submit

certificates to her school after completing the report.

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CHAPTER 4: FINDINGS AND DATA ANALYSIS

I. The graph of direct channel

As can be seen in the chart, the company’s filter pump products are divided

into various categories which includes 3/4Hp, 1Hp SB10, 1Hp, 1.5Hp, 2Hp,

3Hp, 1.5Hp SB15, 2Hp SB20, and 3Hp SB30. Three charts include figure 1,

figure 2, and figure 3 which have described the quantities of the company’s

distribution channel of filter pumps from 10/2013 to 12/2013 within 3

months. Figure 1 show that the quantities of filter pumps in each type are

sold through direct and indirect channel. Figure 2 shows that the quantities

of filter pumps in each type are sold through direct channel. Figure 3 shows

that the quantities of filter pumps in each type are sold through retailers.

In general, the development of Vietnamese’s distribution channel in recent

years is gradually changing. A marketing system in Vietnam was very

young, especially distribution channel. Therefore, it may lead to high cost of

distribution such as the cost of transportation and it may make a lower price

for distributor and higher price to the ultimate users. All activities business

involves the distribution channel such as wholesalers and retailers; therefore,

the company needs to promote the development of distribution channel. In

particular, the company’s distribution channels also have positive changes in

recent years.

Appendix 1: the quantities of filter pump in each type through direct

channel and indirect channel

The company uses a multichannel distribution system for this product. A

multichannel distribution system is a system which uses direct and indirect

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channel for distributing the goods to customers or intermediary channel. To

use a multichannel distribution system, the company can reach new market

segments as well as increase sales. The first figure shows that the company

used indirect channel more efficient than direct channel. The company was

using three channels which were direct channel, wholesalers, and retailers to

distribute the products on the market.

Figure 1 show that the quantities of filter pump through direct channel and

indirect channel. The number of filter pump products from direct channel

sold 159 pcs which is lower than its products from indirect channel during 3

months.

According to the second charts, 2Hp filter pumps of indirect channel sold

more 8 pcs than 2Hp filter pumps in direct channel. Regarding the

company’s 2Hp filter pumps, 1.5Hp filter pumps in direct channel sold 22

pcs while 1.5Hp filter pumps of indirect channel sold 19 pcs. The quantities

of products including 3Hp, 1,5Hp SB15, and 2Hp SB20 filter pumps are

slightly increased in direct channel. Figure 2 show that 1Hp filter pumps sold

10 pcs which is the lowest rate in direct channel. In the contrary, 1Hp filter

pumps in indirect channel sold 24 pcs which is the highest rate.

Through the second chart and third chart, 2Hp filter pumps were the best-

selling product in the company’s distribution channels on 3 months.

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direct channelindirect channel

0

20

40

60

80

100

120

140

160

180

200

The graph of the company's distribution channel

Figure 1: the graph of the company’s distribution channel

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3/4 H

p

1HP SB10

1HP

1.5Hp

2Hp

3Hp

1.5Hp S

B15

2HP SB20

3Hp S

B30

0

5

10

15

20

25

30

The graph of direct channel

Figure 2: The graph of direct channel

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3/4Hp

1HP SB10

1Hp

1.5HP

2HP

3Hp

1.Hp S

B15

2Hp S

B20

3Hp S

B30

0

5

10

15

20

25

30

35

The graph of indirect channel

Figure 3: The graph of indirect channel

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II. The graph of indirect channel

1. Wholesalers

Appendix 2: the quantities of filter pumps in each type through

each distribution channel

According to the chart, the fourth chapter shows the quantities of the

company for nine types of filter pump products within 3 months through

wholesaler which belongs to indirect channel. In this chart, 2Hp filter

pumps are the highest rate of all products which sold 30 pcs. Besides

2Hp filter pumps, these products remained constant at 15 pcs such as

1Hp and 1Hp SB10 filter pumps.

In addition, 2Hp SB20 filter pumps sold 13 pcs which was the lowest

rate. Additionally, 3/4Hp filter pump products often do not sell more

pieces as well as the sales of its products are low compared to other

products. However, 3/4Hp filter pumps are sold more pieces at

wholesalers. In general, wholesalers sold more filter pump products than

other intermediary level when the number of these products is equally

sold. On the whole, 2Hp filter pump products are the best - selling

products through wholesalers on 3 months.

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3/4 H

p

1Hp S

B10 1H

p

1.5H

p

2 Hp

3 Hp

1.5H

p SB15

2Hp S

B20

3Hp S

B30

0

5

10

15

20

25

30

The graph of wholesalers

Figure 4: The graphs of wholesalers

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2. Retailers

Appendix 2: the quantities of filter pumps in each type through

each distribution channel.

Figure 5 illustrates the quantities of filter pumps from retailers. In the

nine types of filter pump products, both 3/4Hp and 2Hp SB20 is the

lowest rate in all which only sold 1 pcs while other types are about equal

rate from 4 pcs to 9 pcs. In addition, these products such as 1Hp, 1.5HP,

and 3Hp filter pumps which sold the high quantities from retailers.

Consequently, the company should be continued to develop retailers to

increase quantities as well as sales of these products. In general, the sales

of filter pump products from retailers were stable rather than other

intermediary levels that the company was using.

Both the figure 4 and the figure 5 supply the quantities of filter pumps

through wholesaler and retailer which belong to indirect channel. The

number of filter pump products is sold from wholesalers which are

higher than the number of its products from retailers. As a result,

wholesalers bring high sales for the company through figure 5. The

wholesalers operate more efficient than the retailers. Consequently, the

company should choose filter pump products which is the most suitable

for retailers to boost the sales of its products.

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3/4 H

p

1Hp S

B10 1H

p

1.5H

p 2H

p3H

p

1.5Hp S

B15

2Hp S

B20

3Hp S

B30

0

1

2

3

4

5

6

7

8

9

The graph of retailers

Figure 5: The graphs of retailers

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Appendix 3: the sales of filter pumps in each type on 3 months

Figure 6 illustrate that the sales of these product including 3/4Hp, 1Hp

SB10, 1Hp, 1.5Hp, 2Hp, 3Hp, 1.5Hp SB15, 2Hp SB20, and 3Hp SB30

filter pumps within 3 months.

On 3 months, the sales of 2Hp filter pumps are higher than the other

products. In the contrary, 3/4Hp filter pump products have low sales due

to direct channel of its products did not operate in effective way. The

interns realizes that some of filter pumps including 1.5Hp, 1,5Hp SB15,

and 2Hp SB20 help the company to increase the sales through direct

channel compared to direct channel. In addition, 3Hp filter pump is the

best-selling product; however, the sales of this product are not higher

than 2Hp filter pumps. The sales of filter pumps in each type from the

company’s distribution channel are generally high; therefore, it brings

more profits for company.

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3/4 Hp

1Hp SB101HP

1.5HP

2HP

3HP

1.5Hp SB15

2Hp SB20

3Hp SB30

0

50

100

150

200

250

300

The graph of filter pumps' sales

MIL

LIO

NS

Figure 6: the graph of filter pumps’ sales

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In short, these charts show that the number of filter pump products from

the company’s distribution channel are sold which is not high within 3

months due to some intermediary levels does not yet work effectively. At

the same time, the interns have seen the working of the company‘s

distribution channel in general and each channel in particular through the

quantities and the sales of filter pumps. Indirect channel operate more

efficient than direct channel. Indirect channel can help the company to

save the cost but it still make more profits for the company. The

company continues to use the direct channel because it is a tool to

connect with the company’s customers. This channel helps the company

to get customer’s feedback about filter pump product in each type. Since,

the company may improve and upgrade the distribution channels.

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CHAPTER 5: CONCLUSION

I. Weaknesses

1. The limitations of the internship

In the process of researching the study, the interns have been met many

difficult to work. This is the first time that she works directly with the

company. Therefore, the intern is lack of experiences in some aspects

such as finding information, analyzing the data, and organizational skills.

Secondly, the interns are not flexible enough to adapt to work

environment. Because a period of internship time is limited, the intern

meets difficult to the process of finding information or existing sources

related to the distribution channel.

Thirdly, synthesis of data is one of the difficulties for the interns.

Additionally, the intern does not have more opportunities to learn and

understand about the company’s distribution channel for the purpose of

researching.

Fourthly, the intern does not have enough resources as well as

information on distribution channel. Therefore, the intern cannot clearly

describe the activities of the company’s distribution channel.

Lastly, the intern always has some problems about grammar when the

intern writes the report. Therefore, the intern cannot express all the

meaning of sentences.

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2. The limitations of the company

There are some limitations of the company when the interns work at here

during a period of internship time. Firstly, the company’s distribution

channel is a complex system that the intern is performing. Due to the

limitations of time, the intern cannot spend more time to work at the

company.

Secondly, one month is not enough the intern to write report. Therefore,

the intern does not receive many the data of the company’s distribution

channel and difficulty in writing the report.

Thirdly, the company only gives the sales of filter pump products within

three months for the research. The interns do not have the sales of filter

pumps product in each month through each channel. Therefore, the

interns meet the difficult for analyzing the working of the company’s

distribution channel.

II. Recommendations

1. Recommendations to students

Before the internship, the interns need to have a broad knowledge on the

study. Refer to the study has been researched previously from the

authors. The intern depends on the accumulation of practical experience

through the process of working.

Secondly, the intern should make use of available knowledge to apply

the research. Moreover, the interns must clearly identify the purpose of

the study as well as the significance of the study.

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Thirdly, when writing the report need to pay attention these sentences to

use as well as information source that the researcher found. Besides, the

interns must build a suitable layout for the study. Training some essential

skills such as analysis and synthesize data to complete the report.

Fourthly, the intern should improve grammar as well as arrange ideas

logically when the intern writes the report. It helps the intern to complete

the report in an efficient way.

2. Recommendations to the company

The intern thinks that multichannel distribution system of the company

need to improve some of the issues. During the process of working, the

intern realizes that the company should develop direct channel to interact

more closely with customers. It can also serve their customers that they

set a target and increase the company’s sales.

Secondly, customer services should be more diverse and meet the

customer’s needs. The company need to maintain a closely relationship

between wholesaler and retailer. Some of the company’s indirect channel

such as retailer and wholesalers need to improve the operations of them

to increase the sales of products. For example, the company needs to

remove some products which cannot be sold in retailers. Conversely, the

company also needs to increase products which can be sold in retailer.

Finally, the company needs to train more experienced employee to

promote the development of distribution channel as well as service. Sales

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team can not only meet the needs for existing customers but also attract

new customers for company.

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REFERENCES

Barry, R.B., & Joel, R. (2012) Retail Management: A Strategic Approach, 12th Ed,

Prentice -Hall: New Jersey

Clarke, G., & Wilson, I. (2009) International Marketing, 1st edition, McGraw – Hill:

Berkshire, British

Jennings, G. (2008) Building Business with Agents and Distributors, GJ international

Ltd: UK

Jonathan, L. (1994) the role of distributors in product supply chains, center for

transportation studies, Massachusetts: New York

Jones, S. H. (1997) Creative Strategy in Direct Marketing, Business Books Ltd: London

Ketzenstein, J. P. (1986) the Direct Marketing Course, McGraw – Hill: New York

Kotler, P. (2000) Marketing Management Millennium Edition, Tenth Edition, Prentice-

Hall: New Jersey

Kotler, P. (2003) Marketing Insights from A to Z, John Wiley & Sons, Inc.: Hoboken,

New Jersey

Kotler, P., Keller, K. L. (2003) Marketing Management, 14th Ed, Prentice - Hall: New

Jersey

Kotler, P., & Wong, V., & Saunders, J., & Armstrong, G. (2006) the Principles of

Marketing, Prentice - Hall: New Jersey

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LeRoux, M. N. (2012): A Guide Marketing Selection: How to Sell Through Wholesale

and Direct Marketing Channels, Cornell University: Ithaca, NY

Mullins, J. W., & Walker, O. C. (2012) Marketing Management: A Strategic Decision –

Marking Approach, 8th Edition, McGraw – Hill: New York

Onkvisit, S., & Shaw, J. J. (2004) International Marketing: Analysis and Strategy,

Taylor & Francis e-Library: UK

Pelton, L., & Strutton, D., & Lumpkin, R. J. (2001) Marketing Channels: A

Relationship Management Approach, McGraw – Hill: Great Britain

Stanton, W. J. (1996) Marketing, McGraw - Hill Higher Education: New York

Suki, N. (2011) Marketing Management, Meteor Doc: Malaysia

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APPENDIX

The number of filter pumps are sold in each type through the company’s distribution

channel from 10/2013 to 12/2013 (3months). Moreover, this appendix also gives the

sales of filter pumps in each type during 3 months.

Appendix 1: the quantities of filter pump in each type through direct

channel and indirect channel.

3 months Quantities (units)

N06 Filter pumps(model) Direct channel Indirect channel

10602001 3/4 Hp 17 21

10603003 1Hp SB10 12 21

10603047 1HP 10 24

10603048 1.5HP 22 19

10603049 2HP 27 35

10603050 3HP 22 27

10604001 1.5Hp SB15 16 14

10605002 2Hp SB20 18 14

10606001 3Hp SB30 15 18

TOTAL QUANTITIES: 159 193

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Appendix 2: the quantities of filter pumps in each type through each

distribution channel.

3 months Quantity (units)

N06 Filter pumps(model)

Indirect channel Direct channelwholesaler retailer

10602001 3/4 Hp 20 1 17

10603003 1Hp SB10 15 6 12

10603047 1HP 15 9 10

10603048 1.5HP 10 9 22

10603049 2HP 30 5 27

10603050 3HP 18 9 22

10604001 1.5Hp SB15 10 4 16

10605002 2Hp SB20 13 18

10606001 3Hp SB30 14 4 15

TOTALQUANTITIES: 145 48 159

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Appendix 3: the sales of filter pumps in each type on 3 months

N06 Filter pumps(model) Sales of filter pumps

10602001 3/4 Hp 7.687.273

10603003 1Hp SB10 52.517.401

10603047 1HP 73.067.382

10603048 1.5HP 82.062.327

10603049 2HP 275.010.133

10603050 3HP 186.074.637

10604001 1.5Hp SB15 55.117.908

10605002 2Hp SB20 86.114.540

10606001 3Hp SB30 95.423.312

TOTAL SALES: 72.700.087

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