Proposed Design of Marketing Channel For Diet Sweet Company

1.1.
2 PROPOSED DESIGN OF MARKETING

CHANNEL FOR DIET SWEET
COMPANY
Group Name: DRAGON

1.Hoà ng Thị Kim Yến (GL)
2. Dương Thả o Vy(M)
3. Đoà n Đứ c Minh (M)
4. Nguyễn Thị Thả o Vy(M)
Semester: 20.2A (2020-2021)

Course title: Marketing Channel
Management (Quản trị Kênh Marketing)
Teacher’s name: Trương Quang Cẩm
HOA SEN UNIVERSITY
CONTENTS
CONTENTS....................................................................................................................... 2
FIGURES AND TABLES.................................................................................................4
PART I: DETERMINATION OF EXISTING MARKETING STRATEGY.....................5
1 Brief story of the company in the case.......................................................................5
2 Determination of Current Marketing strategy............................................................7
2.1 Segmentation........................................................................................................7
2.2 Targeting............................................................................................................... 7
2.3 Positioning............................................................................................................8
2.3.1 Competition....................................................................................................8
2.3.2 Differentiation..............................................................................................10
2.3.3 Positioning...................................................................................................11
3 Determination of Current Marketing mix.................................................................11
3.1 Product................................................................................................................11
3.2 Price.................................................................................................................... 11
3.3 Place...................................................................................................................12
3.4 Promotion...........................................................................................................12
PART II: DETERMINATION OF EXISTING MARKETING STRATEGY...................1
1 Survey of end-user’s service output demand (SD).....................................................1
2 End-user segmentation and evaluation.......................................................................4
3 End-user targeting......................................................................................................7
PART III: DETERMINATION OF SERVICE GAPS.......................................................1
1 Transforming service demand (SD)...........................................................................1
4 Determining service supplied (SS) of the existing channel........................................3
5 Matching channel routes with targeted segments.......................................................3
5.1 Determine the channel route for segment 1...........................................................4
FINAL REPORT_DIÉT SWEET COMPANY

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5.5 Determination of service gaps...............................................................................7
PART IV: PROPOSED NEW MARKETING CHANNELS.............................................8
1 Selecting the new channel routes...............................................................................8
6 Compare the Service demanded (SD) with the new channel routes (SS)...................8
7 Identify all NEW service gaps and cost gaps.............................................................9
8 Propose marketing activities to close the remaining gaps..........................................9
9 Verify the proposals.................................................................................................10
10 Draw the chart to describe the channel structure & systems.....................................11
PART V: CONCLUSION................................................................................................12

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FIGURES AND TABLES

FIGURES
Figure 1. Diet Sweet company’s physical-distribution process..........................................6
Figure 2. Segmentation......................................................................................................7
Figure 3. Distribution channel of Diet Sweet Company...................................................12
Figure 4. The new channel structure & systems...............................................................11
TABLES
Table 1.Direct Competitors................................................................................................9
Table 2. Eavaluating differentiation table........................................................................11
Table 3. The result of servey..............................................................................................1
Table 4.Note of table 3.......................................................................................................3
Table 5 Evaluation of segmentation...................................................................................4
Table 6. Number of cases in each Cluster..........................................................................4
Table 7. Final Cluster Centers............................................................................................5
Table 8. Differentiable ratings...........................................................................................6
Table 9. Evaluation of segment attractiveness...................................................................7
Table 10. Final Cluster Centers with numbers...................................................................1
Table 11. Final Cluster Centers in quanlitative form_1......................................................2
Table 12. Final Cluster Centers in quanlitative form_2......................................................2
Table 13. Service outputs provided by each channel route (SS).........................................3
Table 14. Service outputs provided (SS = Service Supplied) by each channel route..........3
Table 15. Channel route for segment 1...............................................................................4
Table 16. The channel route for segment 2........................................................................4
Table 17. The channel route for segment 3........................................................................5
Table 18. The chhanl route for segment 4..........................................................................5
Table 19. Summary of channel route results......................................................................6
Table 20. Channel route for each segment.........................................................................6
Table 21. Service outputs demanded (SD) by End-users per segment................................7
Table 22. Service outputs provided (SS = Service Supplied) by each channel route..........7
Table 23. Comparing SS and SD for each cells..................................................................7
Table 24. Color each cell in the Table 3D.3 with the following conventions.....................7
Table 25. Service outputs provided (SS = Service Supplied) by new channel routes.........8
Table 26. Comparing SD_SS.............................................................................................8
Table 27. Comparing SS (new) with SD with new channel routes.....................................9
Table 28. Color cells to identify service gaps.....................................................................9
Table 29. Propose marketing activities to close the remaining gaps..................................9
Table 30. Verifying the proposals....................................................................................10

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PART I: DETERMINATION OF EXISTING

MARKETING STRATEGY
1 Brief story of the company in the case
Diet Sweet Candy company is the world’s largest producer of dietetic sweets and
biscuits. The firm products and sells four product lines, including:
● Consumer packaged dietetic sweets and biscuits sold under the Diet Sweet brand.
● Consumer packaged and bulk sales of dietetic sweets sold under private labels of a
few leading retailers.
● Dietetic seasonal items
● A line of imported European chocolates that are non detetic.
Natural sweeteners are used to make its products, so they have no negative impacts for
health and are suitable for people with diabetes. To encourage sales as well as limit
product preservation problems, Diet Sweet would only give retail or wholesale
customers a one-time credit on infected merchandise.
Diet Sweet has a wide distribution system throughout the United States. In it, we can
divide it into 4 main categories:
1) Their own sales forces who call agent middlemen

2) They also have a thriving mail order business. Any interested customer can write
to the company directly to receive their mail order catalog and purchase their
individual requirements. A $ 4 minimum order is required for this service.
3) Their own stores are represented by Leading Department Stores (Principle outlets).
4) They also have a wide range of wholesalers. The wholesalers will distribute to
retailers like confectionery, Gift shops & Stationery stores, cart service, dietary
kitchen in hospital,...
Its physical-distribution process is depicted in Figure 1.

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Distributor's
Plant in Warehouse Wed
Warehourse warehouse/
New York in nearby Coast/Mid
in Chicago Retailer
city New Jersey West
outlet.
Figure 1. Diet Sweet company’s physical-distribution process
The company applies two conditions of sale:
● Retail price list: Shipments of 60$ or more (net) are prepared, whereas any
shipment of less than 60$ requires a additional charge of 3$. A 10 percent trade
discount is given for shipments of $135 (net) or more.
● Wholesale price list: A discount 20 percent of the listed prices.
About crediting on returned merchandise, if the product is more than 2 years old, an
open-faced or sesnal item and cannot be used, Diet Sweet will not extend credit for return
merchandise. On other hand, Credit on sales to retailers is extended at full customer cost
for in-store spoils.Especially, there is only a 30% credit for seasonal items, which are
overstocked and then returned.
Credit and collection: Past-due items in excess of $300 are followed up by a series of
three letters. If accounts over 65 days in arrears are subject to placement with a collection
agency.
To extend Diet Sweet’s distribution channel, the president is planning for expanding into
the drugstore field.

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2 Determination of Current Marketing strategy

2.1 Segmentation
We created segmentations based on 4 types: Demographic, geographic, psychographic
and behavioral. In each type, we will divide customers into many different groups,
depicted in Figure2.
Figure SEQ Figure \* ARABIC 2. Segmentation of Diet Sweet (Source: members of group)
Figure 2. Segmentation
2.2 Targeting
After combining the results of market segmentation and product analysis, we targeted our
company as following:
"The target market of the firm consists of people who are over 35 years old in the USA.
They are interested in a healthy life and are finding products that are good for their
health to use every day, instead of sugar,... Especially, diabetic patients."

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2.3 Positioning
2.3.1 Competition
Table 1.Direct Competitors
Name of
No.1 Logo Introduction
company
Mars Wrigley
Confectionery is the
world's leading
manufacturer of
chocolate, chewing gum,
Mars Wrigley mints, and fruity

1
Confectionery confections.
Currently, the firm has

36 sub-brands, of which
the most famous brands
are M&M and
Doublemint.
2 Mondelēz Mondelēz
International International empowers
people to snack right in
over 150 countries
around the world, with
Oreo, belVita and LU
biscuits; etc.
The company makes and

sells primarily snacks,
including biscuits
(cookies, crackers and

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salted snacks),
chocolate, gum & candy
as well as various cheese
& grocery and powdered
beverage products.
Hershey is a global
confectionery leader
known for bringing
goodness to the world
through its chocolate,
sweets, mints and other
great-tasting snacks.
What started out as

Crystal A Caramels, has
expanded to a chocolate
company that includes
3 Hershey products like milk
chocolate, Cookies ‘n’
Cream, kisses, Krackel,
Mr. Goodbar, cocoa,
spreads, and syrups.
1900 was the year
Americans were able to
enjoy a Hershey’s Milk
Chocolate Bar, and just
a few years later, more
Hershey’s products were
developed.

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2.3.2 Differentiation
To identify differentiation and develop it into a competitive advantage, we evaluated each

differentiation point based on the scale: 1 (lowest level) to 10 (highest level).
Table 2. Eavaluating differentiation table

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After calculation, it is easy to realize that “Product attributes” factor has the highest total
scores. As a result, we decided to choose “Product attributes' 'as the differentiation point.
2.3.3 Positioning
For customers over 35 years old who need to use healthy products, The Diet Sweet candy
is a completely sugar-free product recommended by doctors.
3 Determination of Current Marketing mix

3.1 Product
 The products are divided into four main categories:

(1) Consumer packaged dietetic sweets and biscuits sold under Diet Sweet
Brand;
(2) Consumer packaged and bulk sale of dietetic sweets sold under private
labels of a few leading retailers;
(3) Dietetic seasonal items (Valentine's day);
(4) A line of imported European chocolates that are nondietetic.
 Instead of using sugar, they use mannitol and sorbitol - which are sugar alcohol
and often used as sweetener in foods for diabetics.
3.2 Price
The Diet Sweet company has pricing policies for different distribution channels:
 Retail price list: for retail accounts. Shipments of $60 or more net are repaid, any
shipment less than $60 requires $3 additional charger. 10 percent trade discount is
given for shipments of $135(net) or more.
 Wholesale price list: for all customers. 20 percent discount and shipments of
$250 (net) or more are repaid.

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3.3 Place
Figure 3. Distribution channel of Diet Sweet Company
3.4 Promotion
Diet Sweet Company have used many separate communication tools, as well as
combined with their large distribution channel system to promote the products.
 They run extensive campaigns of national advertising with full-color

advertisements in MeCall's, Good Housekeeping, Redbook, Sunset, Southern
Living, Ladies Home Journal, Family Circle, and Woman's Day.
 They use their products featured as prizes on two national television network
daytime shows to increase the product's awareness.
 Consumer advertising to the food retailer through color advertisements in
Progressive Grocer and other trade publications
 They have four separate sales promotion programs for supermarkets.
 They increase the recognition of their products by selling to some organizations
(school, military scouting, civil club, etc ) at wholesale prices for resale at retail
prices as a means of fundraising.

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 They have special prices and minimum delivery deals to physicians and dentists
for use by their patients for goodwill purposes. It is also a way for dentists and
patients to help them communicate about their products.

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PART II: DETERMINATION OF EXISTING
MARKETING STRATEGY
1 Survey of end-user’s service output demand (SD)
To find out the demand of our customers, we conducted a survey of 117 people. The
result are presented in table 3.
Table 3. The result of servey
Waiting/
Spatial Product Product Customer Information Low
STT Bulk-Breaking Delivery
Convenience Assortment variety Serviece Sharing Price
time
1 3 1 6 4 2 7 8 5
2 1 2 3 7 6 4 5 8
3 2 6 8 5 7 4 3 1
4 1 3 2 8 7 6 4 5
5 4 3 1 7 8 5 2 6
6 2 1 3 8 7 5 6 4
7 1 2 8 3 4 5 6 7
8 1 3 4 8 7 6 5 2
9 4 2 3 6 7 8 5 1
10 1 4 2 3 5 8 7 6
11 3 2 4 5 6 8 7 1
12 1 3 5 6 7 4 2 8
13 2 3 4 1 5 7 6 8
14 2 4 3 5 7 6 8 1
15 4 8 1 2 3 5 7 6
16 1 4 3 5 2 8 7 6
17 8 1 2 4 3 6 5 7
18 4 3 5 2 6 7 1 8
19 2 1 3 7 4 5 6 8
20 2 1 3 8 6 5 4 7
21 2 1 3 7 4 5 6 8
22 2 3 1 6 8 5 4 7
23 1 3 2 5 4 8 6 7
24 3 1 2 4 5 7 8 6
25 6 2 7 1 3 4 5 8
26 8 1 2 3 4 6 5 7
27 7 2 3 4 5 8 6 1
28 8 1 3 2 4 6 5 7
29 6 1 3 2 5 7 4 8
30 2 1 3 8 6 5 4 7
31 2 1 3 7 4 5 6 8
32 2 3 1 6 8 5 4 7
33 1 3 2 5 4 8 6 7
34 3 1 2 4 5 7 8 6
35 6 2 7 1 3 4 5 8
36 8 1 2 3 4 6 5 7
37 7 2 3 4 5 8 6 1
38 8 1 3 2 4 6 5 7
39 6 1 3 2 5 7 4 8
40 2 3 5 1 6 7 8 4
41 1 2 4 6 8 7 5 3
42 7 5 3 4 8 1 6 2
43 6 5 2 3 4 8 7 1
44 8 7 3 6 1 2 5 4
45 7 8 5 3 4 1 2 6
46 8 5 4 3 2 6 7 1
47 5 6 2 7 8 4 3 1
48 1 6 3 8 7 5 4 2
49 2 3 4 5 1 8 7 6
50 1 4 3 5 2 7 6 8
51 1 5 3 4 7 8 6 2
52 5 6 2 4 1 3 7 8
53 2 6 4 5 8 7 3 1
54 6 5 2 3 4 8 1 7
55 8 3 2 6 4 5 7 1
56 2 3 8 4 6 7 5 1
57 6 5 4 3 2 1 8 7
58 5 3 6 4 2 8 7 1
59 5 3 6 4 2 8 7 1
60 4 3 7 5 2 8 6 1
61 1 3 5 4 7 8 6 2
62 6 7 1 3 5 8 4 2
63 7 6 5 2 4 8 3 1
64 6 7 5 3 4 8 2 1
65 1 3 4 7 2 8 6 5
66 1 5 2 4 7 8 6 3
67 6 3 2 4 5 8 7 1
68 1 6 2 5 4 7 8 3
69 1 7 3 6 4 5 8 2
70 4 6 5 2 1 7 3 8
71 7 8 4 2 5 6 3 1
72 6 7 5 4 3 2 1 8
73 6 8 7 2 1 5 4 3
74 1 8 2 3 4 5 7 6
75 2 4 3 5 6 8 7 1
76 4 8 7 6 2 3 1 5
77 2 7 5 3 4 1 8 6
78 1 6 7 3 5 2 4 8
79 1 2 7 4 3 8 5 6
80 1 5 4 2 3 7 6 8
81 1 4 7 3 5 2 8 6
82 7 2 5 8 1 6 3 4
83 4 5 3 6 8 2 7 1
84 8 6 7 1 2 5 4 3
85 7 8 6 2 1 5 3 4
86 7 8 6 1 2 3 4 5
87 7 8 6 1 2 3 5 4
88 8 7 6 1 2 3 5 4
89 7 8 6 1 2 3 4 5
90 7 5 4 2 3 8 6 1
91 5 4 7 1 2 6 8 3
92 4 5 7 1 3 8 6 2
93 1 4 7 6 5 3 2 8
94 1 4 5 2 3 7 6 8
95 4 7 8 6 2 3 1 5
96 3 8 1 2 4 6 5 7
97 3 8 2 2 4 5 5 7
NOTE:
Table 4.Note of table 3
1. BB (Bulk-
The value associated with volume you want to buy.
breaking/pack size)
2. SC (Spatial
convenience The value associated with the distance from you to the outlet.
/Short distance)
3. DT (Delivery time/ The value associated with the time you are willing to wait from
Waiting time) ordering to receiving the product
4. PA (Product The different brands, sizes, models within product category you
Assortment) want to buy.
5. PV (Product The different product category you want to buy from one location
Variety) (one-stop shopping).
6. CS (Customer The ease with which you feel when you shop and buy at this
service) channel structure.
The information about product attributes/features which the
7. IS (Information
company provide to you before, during and after purchase of the
sharing)
product/services
8. LP (Low Price) The value associated with low price
2 End-user segmentation and evaluation

Table 5 Evaluation of segmentation
Criteria 1- Fully 2- Disagree 3- Neither 4 - Agree 5- Fully

disagree nor
disagree agree
agree
Measurable? 5
Accessible? 4.4
Substantial? 5
Differentiable? 4.4
Actionable? 5
Total 23.8
(1) Measurable. The size, purchasing power, and profiles of the segments can be measured.
Table 6. Number of cases in each Cluster

Number of Cases in each Cluster
1 41,000
2 38,000
Cluster
3 14,000
4 24,000
Valid 117,000
Missing ,000
Our customers are segmented into 4 segments, each segment is assigned 1.25 points, and we can
measure the size of individual segments, so we grade 5 (1.25 x 4 segments) in the above table.
(2) Accessible. The market segments can be effectively reached and served
Table 7. Final Cluster Centers

Cluster
1 2 3 4
Bulk-Breaking 5,0 3,5 3,4 1,7
Spatial Convenience 4,7 3,5 5,6 2,2
Waiting/ Delivery
4,3 3,8 5,1 2,9
time
Product Assortment 2,5 4,1 5,5 6,8
Product variety 3,3 4,3 6,1 6,0
Customer Service 4,8 7,5 4,7 5,3
Information Sharing 4,8 6,7 3,6 4,5
Low Price 6,5 2,7 1,9 6,8
We chose to serve 4 segments. It means for each segment we reached and served effectively we
will allocate 1.25 points. In particular, for segment 1, 2 and 4, we believe we are able to
accommodate all customer’s requirements so we assign 1.25points to each of those segments.
With the third segment, we just satisfy customer’s requirement for “product variety” but we can
not respond about “spatial convenience”. Therefore, we assign 0.625 points to segment 3.
Totally, we grade 4.375 points to put in the table.
(3) Substantial
Because our target market is The United States (USA) with the population of about 333 million
people, we think all 4 segments are large to bring profit. As a result, we decide to serve all 4
segments and we give 5 points.
(4) Differentiable
We compared pairs of segments to evaluate their differentiation. With 4 segments we have 6

comparisons (the right table). Each pair of segments has two output differences, we assign 0.8
points (= 5 points/6 pairs), if they have just one difference, we assign 0.4 point, and so on.
Table 8. Differentiable ratings
1st cluster 2nd cluster Ratings
1 2 0.8
3 0.8
4 0.4
2 3 0.8
4 0.8
3 4 0.8
Total 4.4
(5) Actionable
As mentioned in the introduction, Diet Sweet company is the largest leading producer of dietetic
sweets and biscuits. We are confident that the company's resources are strong enough to serve all
4 segments, so we give this factor 5 points.
3 End-user targeting
To identify end-user, we evaluated the actractiveness of all segements based on the scale from 1
to 10. In particular, all column (1)-(6) use the scale from 1 to 10 as follow:
(1) Market size

 Largest size: 10
 Smallest size: 1
 Other levels will range from 2-9.
(2) Market growth
 Rapid growth: 10
 Slow growth: 1
 Other levels will range from 2-9.
(3) Competition intensity
 Strongest: 1
 Weakness: 10
 Other levels range from 2-9
(4) Company’s objectives
 Most compatible: 10
 No compatible: 1
(5) Company’s capabilities
 Most suitable: 10
 No suitable: 1
Table 9. Evaluation of segment attractiveness
Market Market Competition Company’s Company’s Total

Segments size growth intensity objectives capabilities points
(1) (2) (3) (4) (5) (6)
Segment 1
(Bulk-
10 4 2 5 6 27
breanking &
low price)
Segment 2 9 10 7 6 8 40
(Customer
service
&share
information)
Segment 3
(Spatial
convenience & 7 5 3 4 9 28
Product
variety)
Segment 4
(Product
8 6 5 10 7 36
Assortment &
Low price)
Conclusion: After calculating and comparing to company resources, we went for all 4 segments
to maximize the company’s revenue and profit.
PART III: DETERMINATION OF SERVICE
GAPS
1 Transforming service demand (SD)
For ease of comparison and subsequent analysis, we transformed the quantitative into qualitative
measures with the following rules:
 Points from 1-3: => L (Low)
 Points form 4-6: => M (Medium)
 Points more than 6: => H (High)
Table 10. Final Cluster Centers with numbers
Cluster
1 2 3 4
Bulk-Breaking 5 3.5 3.4 1.7
Spatial-Convenience 4.7 3.5 5.6 2.2
Delivery-time 4.3 3.8 5.1 2.9
Product-Assortment 2.5 4.1 5.5 6.8
Product-variety 3.3 4.3 6.1 6
Customer-Service 4.8 7.5 4.7 5.3
Information-Sharing 4.8 6.7 3.6 4.5
Low-Price 6.5 2.7 1.9 6.8

Table 11. Final Cluster Centers in quanlitative form_1
Cluster
1 2 3 4
Bulk-Breaking M M M L
Spatial-Convenience M M M L
Delivery-time M M M L
Product-Assortment L M M H
Product-variety M M H H
Customer-Service M H M M
Information-Sharing M H M M
Low-Price H L L H
Table 12. Final Cluster Centers in quanlitative form_2
S C
Cluster BB DT PA PV IS LP
C S
1 M M M L M M M H
2 M M M M M H H L
3 M M M M H M M L
4 L L L H H M M H
4 Determining service supplied (SS) of the existing channel.
Table 13. Service outputs provided by each channel route (SS)
S P P IS
Channel routes BB WT CS LP
C A V (7
(B) (1) (3) (6) (8)
(2) (4) (5) )
1. M →own salesforce →E/U M H M L L H H L
2. M →own website (online retailer) →E/U M H M L L M M M
3. M →own store (physical retailer) →E/U H L H L L H H L
4. M →outsourced salesforce →E/U M H M L L H H M
5. M →outsourced website (online retailer)
H H M H H M M H
→E/U
6. M →outsourced store (physical retailer)
H M H H H M M H
→E/U
7. M →Outsourced wholesaler (distributor) →
H H H H H M M H
Outsourced Retailers →E/U
8. M → Franchised store →E/U H M H L L H H M
Based on the Table 13, we can describe the level of service outputs supplied by the firm as
follows:
Table 14. Service outputs provided (SS = Service Supplied) by each channel route
S P P IS
Channel routes BB WT CS LP
C A V (7
(B) (1) (3) (6) (8)
(2) (4) (5) )
2. M →Outsourced wholesaler (distributor) →
H H H H H M M L
Retailers →E/U
3. M →own store (Physical retailer) →E/U H L H L L H H H
4. M →own website (online retailer) →E/U M H M L L M M M
5 Matching channel routes with targeted segments

We compare in turn each channel route to each segment to find the appropariate channel route
for each segment.
Principle: If level of certain service output supplied = level of certan service output demanded,
we assign 0, otherwise we assign 1.
5.1 Determine the channel route for segment 1
Table 15. Channel route for segment 1
Channel routes BB SC DT PA PV CS IS LP Total

1. M →own salesforce
→E/U 0 1 0 0 1 1 1 1 5
2. M →own website
(online retailer) →E/U 0 1 0 0 1 0 0 1 3
3. M →own store
(physical retailer) 1 1 1 0 1 1 1 1 7
→E/U
4. M →Outsourced
wholesaler (distributor)
1 1 1 1 1 0 0 0 5
→ Outsourced
Retailers →E/U

Table 16. The channel route for segment 2

→E/U 0 1 0 1 1 0 0 0 3
2. M →own website
3. M →own store
→E/U
4. M →Outsourced
wholesaler
(distributor) → 1 1 1 1 1 1 1 1 8
Outsourced Retailers
→E/U
Table 17. The channel route for segment 3

→E/U 0 1 0 1 1 1 1 0 5
2. M →own website
3. M →own store
→E/U
4. M →Outsourced
wholesaler
(distributor) → 1 1 1 1 0 0 0 1 5
→E/U

Table 18. The chhanl route for segment 4

→E/U 1 1 1 1 1 1 1 1 8
2. M →own website
3. M →own store
→E/U
4. M →Outsourced
wholesaler
(distributor) → 1 1 1 0 0 0 0 0 3
→E/U
Summary of result
Table 19. Summary of channel route results
Channel routes Seg.1 Seg.2 Seg.3 Seg.4

→E/U 5 3 5 8
2. M →own website
(online retailer) →E/U 3 6 4 6
3. M →own store
(physical retailer) →E/U 7 5 7 7
4. M →Outsourced
wholesaler (distributor) →
5 8 5 3
→E/U
Conclusion:
 Route 1 for segment 2
 Route 2 for segment 1&3
 Route 3 for no segment
 Route 4 for segment 4
Table 20. Channel route for each segment
Channel route for each

Segment BB SC DT PA PV CS IS LP
segment
(A) (1) (2) (3) (4) (5) (6) (7) (8) (B)
2. M →own website (online
1 M M M L M M M H
retailer) →E/U
2 M M M M M H H L 1. M →own salesforce →E/U
2. M →own website (online
3 M M M M H M M L
retailer) →E/U
4. M →Outsourced wholesaler
4 L L L H H M M H (distributor) → Outsourced
Retailers →E/U
5.5 Determination of service gaps
Table 21. Service outputs demanded (SD) by End-users per segment
Segment
BB SC DT PA PV CS IS LP
Name
(A) (1) (2) (3) (4) (5) (6) (7) (8)

1 M M M L M M M H
2 M M M M M H H L
3 M M M M H M M L
4 L L L H H M M H
Table 22. Service outputs provided (SS = Service Supplied) by each channel route
Channel routes BB SC WT PA PV CS IS LP
(B) (1) (2) (3) (4) (5) (6) (7) (8)
2. M →own website (online retailer)
M H M L L M M M
→E/U
H
(distributor) → Outsourced Retailers H H H H H M M
→E/U
Table 23. Comparing SS and SD for each cells
(A) (1) (2) (3) (4) (5) (6) (7) (8)

M(SS>SD M(SS=SD M(SS<SD M(SS=SD
1 M(SS=SD) L(SS=SD) M(SS=SD) H(SS<SD)
) ) ) )
M(SS>SD M(SS=SD M(SS<SD
2 M(SS=SD) M(SS<SD) H(SS=SD) H(SS=SD) L(SS=SD)
) ) )
M(SS>SD M(SS=SD M(SS=SD
3 M(SS=SD) M(SS<SD) H(SS<SD) M(SS=SD) L(SS>SD)
) ) )
M(SS=SD
4 L(SS>SD) L(SS>SD) L(SS>SD) H(SS=SD) H(SS=SD) M(SS=SD) H(SS=SD)
)
(A) (1) (2) (3) (4) (5) (6) (7) (8)
M(SS=SD M(SS>SD M(SS=SD
1 M(SS=SD) L(SS=SD) M(SS<SD) M(SS=SD) H(SS<SD)
) ) )
M(SS=SD M(SS>SD M(SS<SD
2 M(SS=SD) M(SS<SD) H(SS=SD) H(SS=SD) L(SS=SD)
) ) )
M(SS=SD M(SS>SD M(SS<SD M(SS=SD
3 M(SS=SD) H(SS<SD) M(SS=SD) L(SS>SD)
) ) ) )
M(SS=SD
4 L(SS>SD) L(SS>SD) L(SS>SD) H(SS=SD) H(SS=SD) M(SS=SD) H(SS=SD)
)
Table 24. Color each cell in the Table 3D.3 with the following conventions
PART IV: PROPOSED NEW MARKETING

CHANNELS
1 Selecting the new channel routes
Based on the service gaps identified in part 3, we know that channel route 2 create the
Product Assortment, Product variety and Higher price than required by end-user. Those
gaps cannot satisfy the end-users of segment 1 and segment 3.
Additional, company’s own salesforce cannot satisfy the Product Assortment and Product
variety service outputs of segment segment 2.
To resolve these problems, we may review all the available channel routes we have to
find the better ones and we offer the following solution:
 Replacing Channel 2 (M →own website →E/U) by a channel (M →outsourced store
(physical retailer) →E/U)
 Replacing Channel 1 (M →own salesforce →E/U) by a channel (M →outsourced website
(online retailer) →E/U )
Table 25. Service outputs provided (SS = Service Supplied) by new channel routes
Channel routes BB SC WT PA PV CS IS LP
(B) (1) (2) (3) (4) (5) (6) (7) (8)
M →outsourced website (online retailer)
H H M H H M M H
→E/U
M →outsourced store (physical retailer)
H M H H H M M H
→E/U
M →Outsourced wholesaler (distributor) →

H H H H H M M H
Outsourced Retailers →E/U
6 Compare the Service demanded (SD) with the new channel routes (SS)
Table 26. Comparing SD_SS
Channel route for each

segment
(A) (1) (2) (3) (4) (5) (6) (7) (8) (B)
2. M →outsourced store
1 M M M L M M M H
(physical retailer) →E/U
M →outsourced website (online
2 M M M M M H H L
retailer) →E/U
2. M →outsourced store
3 M M M M H M M L
(physical retailer) →E/U
4 L L L H H M M H (distributor) → Outsourced
Retailers →E/U
 Results of comparison of SS and SD:
Table 27. Comparing SS (new) with SD with new channel routes
(A) (1) (2) (3) (4) (5) (6) (7) (8)

1 M(SS>SD) M(SS=SD) M(SS>SD) L(SS>SD) M(SS>SD) M(SS=SD) M(SS=SD) H(SS=SD)
2 M(SS>SD) M(SS>SD) M(SS=SD) M(SS>SD) M(SS>SD) H(SS<SD) H(SS<SD) L(SS>SD)
3 M(SS>SD) M(SS=SD) M(SS>SD) M(SS>SD) H(SS=SD) M(SS=SD) M(SS=SD) L(SS>SD)
4 L(SS>SD) L(SS>SD) L(SS>SD) H(SS=SD) H(SS=SD) M(SS=SD) M(SS=SD) H(SS=SD)
7 Identify all NEW service gaps and cost gaps.

Table 28. Color cells to identify service gaps
(A) (1) (2) (3) (4) (5) (6) (7) (8)

8 Propose marketing activities to close the remaining gaps.

Table 29. Propose marketing activities to close the remaining gaps
Planned Techniques for closing Do/did Actions

Segment Service gaps
service Gaps create other gaps?
1 Bulk-breaking Increase package size No
Spatial convenience No action No
Slow down the delivery time No
Delivery time
(lengthen the waiting time)
Product Assortment No action No
Product variety No action No
Customer service No action No
Information sharing No action No
Low price No action No
Bulk-breaking Increase package size No
Reduce the number of outsourced No
Spatial convenience retailers (choose the selective
level of distribution)
Product Assortment No action No
Product Variety No action No
2
Use Internet or telephone to Costs may increase
Customer service
increase level of service but not much
Use Internet or telephone to Costs may increase
Information sharing
increase information sharing but not much
No (Increase
Low Price Reduce price for this segment
profit)
Delivery time
3 Product Assortment No action No
Product variety No action No
No (Increase
Low Price Reduce price for this segment
profit)
Reduce the number of outsourced No
Spatial convenience retailers (choose the selective
4
level of distribution)
Delivery time
9 Verify the proposals

Table 30. Verifying the proposals
(A) (1) (2) (3) (4) (5) (6) (7) (8)

10 Draw the chart to describe the channel structure & systems

Manufacturer
outsourced outsourced Outsourced

store (physical website (online wholesaler
retailer) retailer) (distributor)
Outsourced
Retailers
Segment 1 Segement 2 Segment 3 Segment 4
Figure 4. The new channel structure & systems

PART V: CONCLUSION
PHẦN VI: ANNEX
No Full name Title % of contribution (*) Note
1 Hoà ng Thị Kim Yến 100%
2 Dương Thả o Vy 100%
3 Đoà n Đứ c Minh 100%
4 Nguyễn Thị Thả o Vy 100%
(*): Maximum is 100%

Proposed Design of Marketing Channel For Diet Sweet Company

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1.1.

2 PROPOSED DESIGN OF MARKETING

Group Name: DRAGON

Semester: 20.2A (2020-2021)

FINAL REPORT_DIÉT SWEET COMPANY

5.4 Determine the channel route for segment 4...........................................................5

FINAL REPORT_DIÉT SWEET COMPANY

FIGURES AND TABLES

FINAL REPORT_DIÉT SWEET COMPANY

PART I: DETERMINATION OF EXISTING

1) Their own sales forces who call agent middlemen

Its physical-distribution process is depicted in Figure 1.

FINAL REPORT_DIÉT SWEET COMPANY

Figure 1. Diet Sweet company’s physical-distribution process

The company applies two conditions of sale:

FINAL REPORT_DIÉT SWEET COMPANY

2 Determination of Current Marketing strategy

FINAL REPORT_DIÉT SWEET COMPANY

Mars Wrigley mints, and fruity

Currently, the firm has

The company makes and

FINAL REPORT_DIÉT SWEET COMPANY

What started out as

FINAL REPORT_DIÉT SWEET COMPANY

To identify differentiation and develop it into a competitive advantage, we evaluated each

Table 2. Eavaluating differentiation table

FINAL REPORT_DIÉT SWEET COMPANY

3 Determination of Current Marketing mix

 The products are divided into four main categories:

FINAL REPORT_DIÉT SWEET COMPANY

Figure 3. Distribution channel of Diet Sweet Company

 They run extensive campaigns of national advertising with full-color

FINAL REPORT_DIÉT SWEET COMPANY

FINAL REPORT_DIÉT SWEET COMPANY

Table 3. The result of servey

2 End-user segmentation and evaluation

Criteria 1- Fully 2- Disagree 3- Neither 4 - Agree 5- Fully

Table 6. Number of cases in each Cluster

Table 7. Final Cluster Centers

We compared pairs of segments to evaluate their differentiation. With 4 segments we have 6

(1) Market size

Market Market Competition Company’s Company’s Total

Table 10. Final Cluster Centers with numbers

Spatial-Convenience 4.7 3.5 5.6 2.2

Delivery-time 4.3 3.8 5.1 2.9

Product-Assortment 2.5 4.1 5.5 6.8

Product-variety 3.3 4.3 6.1 6

Customer-Service 4.8 7.5 4.7 5.3

Information-Sharing 4.8 6.7 3.6 4.5

Low-Price 6.5 2.7 1.9 6.8

Table 12. Final Cluster Centers in quanlitative form_2

Table 13. Service outputs provided by each channel route (SS)

5 Matching channel routes with targeted segments

Table 15. Channel route for segment 1

Channel routes BB SC DT PA PV CS IS LP Total

5.2 Determine the channel route for segment 2

Channel routes BB SC DT PA PV CS IS LP Total

Channel routes BB SC DT PA PV CS IS LP Total

5.4 Determine the channel route for segment 4

Channel routes BB SC DT PA PV CS IS LP Total

Table 19. Summary of channel route results

Channel routes Seg.1 Seg.2 Seg.3 Seg.4

Channel route for each