Limited distribution channel: a study from Ladofoods in the Southern region

Abstract

As the wine import market in Vietnam is growing, knowledge and demand for alcohol is increasing, this is a great potential for the wine industry in Vietnam. However, Ladofoods' sales are on a downward trend despite the growing wine market. To find the main problem, this report used secondary data along with in-depth interviews with some managers and employees in Ladofoods company. In addition, in order to better understand and have a more objective view of the issue, the thesis also conducts quantitative research on customers who have used Ladofoods products. The findings show that businesses are struggling with the problem of counterfeit goods in Vietnam. Although it has been sponsored by the state for businesses, this situation still continues. The next difficulty is that although the brand awareness is high, it has not created favorable conditions for customers to buy and use the product. That also partly comes from the fact that the company only focuses on selling through agent channels without developing the current showroom system. Moreover, the company has digital transformation but has not yet supported customers to buy and pay online. That is also the main reason for the recent decline in sales. In addition, false information about Dalat Vang in the past partly affects the company's new products Chateau Dalat at the present. Furthermore, the report will reveal the causes of main problem. Finally, based on the above factors as well as considering the benefits and costs of the alternatives will help the company consider investing in the project. Moreover, investing in e-commerce is now quite popular in developed countries and it is even more popular in the current situation of epidemics like corona.