Enhancing distributor sell-out in hai phong through localized targeted consumer promotion: Addressing promotional challenges faced by K company

Abstract

K entered the Vietnamese market just over two years ago, launching the M diaper in September 2021. This thesis explores the challenges faced by K, especially the reduced sell-out performance of our distributor in Hai Phong. It’s crucial to identify the root causes of this decline to shape an effective strategy. The main issue identified is a significant drop in distributor sales, linked to an ineffective sales promotion program. The root cause is the " Misalignment of Promotional Strategies with Local Consumer Preferences in Hai Phong." The consequences of this misalignment include high distributor turnover, low revenue, increased costs for replacing distributors, and reduced market share. These problems affect both our immediate financial performance and long-term strategic position in the region. To address these challenges, the thesis proposes a Gift Promotion Program Combining Online and Offline Events, tailored to align better with consumer preferences in Hai Phong. This aims to enhance the attractiveness of promotions and improve distributor sell-out rates. By realigning our promotion strategy, we expect reduced distributor turnover, stabilized and growing revenue, and a stronger market share. This strategic shift aims to resolve current issues and strengthen our market position against future challenges, ensuring sustainable growth and profitability for K.