The distribution of goods has always been of utmost importance for manufacturing

businesses. Especially for our venture, which attempts to do business in a country that is half
the world apart, logistics and physical distribution are the backbone that determines whether
we can succeed or not. That is why we need to devise a detailed management plan for the
operation.
1. Establish distribution channel objectives
The first thing to consider when establishing a management plan for distribution is what are
our objectives for distribution channels, or in other words, how we are going to serve
customers. According to Wsarren & Mark (2019), distribution channels exist to create utility
for customers, and there are four major types of utilities: place, time, form, and information.
At the initial phase of market entry like we are in now, the company seeks to create form
utility along with the information utility. By emphasizing form utility, we can ensure that the
product is available in a form that meets the customers' needs. The potential ideas that can
contribute to creating form utility can be preserving product quality in unfavorable conditions
and using convenient package sizes that cater to various demand volumes. To deliver this
type of utility, the company will work with distribution partners and require them to preserve
the product appropriately.
Another emphasis of the company throughout the venture is to create information utility. Our
commitment resides in furnishing customers with essential information crucial for making
well-informed decisions regarding purchases and comprehending the advantages of the
product. To uphold this commitment, we intend to accurately designate the packaging with
details concerning the origin of the rice, its nutritional value, cooking guidelines, and
distinctive characteristics of ST25 rice, including its international accolades and exceptional
flavor. The company will rely on the distributor’s sales forces to deliver information to
customers. Website and digital presence will also be utilized to directly reach out to
customers.
Later, when we have already established our name in the market, place and time utility can be
put into consideration. At that stage, the company will try to expand its distribution networks
and efficiently manage its logistics operations.
2. Choosing distribution channels
As a newcomer in the market with constrained resources, the company will opt against the
direct engagement strategy. Instead, it would be more appropriate to engage in collaboration
with local distributors.
Numerous significant benefits exist in relation to forming partnerships with them. It can be
accessing local market knowledge, leveraging existing networks, sharing resources and
expertise, building trust and credibility, or mitigating risk and financial exposure
(International Trade Council, 2023). Although the surge in online transactions is indisputable,
for traditional products such as rice, customers predominantly opt for purchasing from
grocery stores or supermarkets. Consequently, the primary distribution strategy involves
forming alliances with well-known supermarket chains and specialized stores in Brazil to
connect with customers. This strategy signifies an indirect engagement, specifically a three-
tier channel (from producer to seller to consumer). The effective distribution of ST25 Rice in
Brazil will heavily rely on the careful selection of retail collaborators since each seller plays a
vital role in efficiently accessing the target demographic while upholding the superior
positioning of the product. The first retailer to be considered is the retail giant Carrefour.
According to Ozbun (2023), Carrefour is the leading supermarket and food retail store by
gross revenue. Thus, Carrefour can bring a diverse customer base and extensive distribution
network, thanks to its widespread availability, both in physical stores and online platforms.
Another potential retailer is Extra. With an extensive coverage encompassing urban regions,
Extra presents a distinctive chance to introduce ST25 Rice to the metropolitan area. Extra's
diverse clientele, which includes thrifty consumers as well as individuals in pursuit of high-
end goods, offers a flexible avenue for displaying ST25 Rice's attractiveness to a wide range
of consumer groups. There are also many other retailers that the company can consider
collaborating with, i.e. Mateus, Supermercados, Cencosud, etc, to name just a few.
Direct business-to-retailer cooperation will result in more stringent control over the
distribution process. There is an alternative, nevertheless, in case the retailer's cooperation
procedure is not successful: wholesalers. Wholesalers are very helpful to new products
entering the market because of their extensive understanding of consumer preferences and
industry dynamics. Sophisticated inventory management and logistics systems are frequently
owned by wholesalers, guaranteeing prompt and effective product distribution (Amazon
Business Editorial Desk, 2024). A large network of retail clients that wholesalers typically
maintain enables the product to reach a broad range of markets and customer groups. Some
suggestion of reputable wholesalers such as Martins Atacadista, and Atacadão as
intermediaries for distributing ST25 rice in Brazil offers numerous benefits. Martins
Atacadista is a leading wholesaler in Brazil, specializing in food and grocery distribution.
Another prominent business in the Brazilian wholesale market is Atacadão, known for
offering a wide range of products at competitive prices.
The efficiency of logistics plays a pivotal role in guaranteeing that the product is stored,
managed, and transported with precision (Anderson, 2023). This factor is indispensable for
upholding the quality and freshness of ST25 rice, which is in alignment with the channel's
objectives.
According to Arnold (2000), every company should follow seven rules when it comes to
international distribution to prevent the potential dissatisfied performance of distributors.
With that being set out, the company will actively establish relationships with distributors,
working in a mutually benefits manner, and committing support while still maintaining
control over market strategy.
3. Design distribution channels
We plan to design a network of product distribution channels by dividing them into different
departments. Each department will be responsible for a specific set of tasks, led by a senior
manager and including lower-level managers for more detailed and minor aspects. This
approach will ensure the continuity of the commercial chain and the supply chain for Ong
Cua Rice from Vietnam to Brazil, while also detailing the necessary steps from the producer
to the distributor (wholesale and retail) and finally to the consumer.
Firstly, at the helm, the company needs to find and appoint a National Distribution Manager
(NDM) who will spearhead the overall distribution strategy and channel management efforts
between 2 countries, Vietnam and Brazil. After that, Regional Distribution Managers
(RDMs) will be assigned to major areas like São Paulo, Rio de Janeiro, Minas Gerais, and
Bahia, responsible for managing the distribution channels within their respective areas.
Secondly, considering the importance of retail partners, we will establish a Retail
Partnerships Team, headed by a Retail Partnerships Manager (RPM). This team will build
strategic relationships with major Brazilian retail chains such as Carrefour, Extra, and Pão de
Açúcar. On the other hand, each major retail partner will have a Dedicated Key Account
Manager (KAM) assigned to negotiate contracts, manage promotions, coordinate in-store
marketing activities, inspect quality, and ensure smooth operations.
Thirdly, to broaden market reach and accessibility, a Wholesaler Partnerships Team, headed
by a Wholesaler Partnerships Manager (WPM), will be established. This team will cultivate
relationships with prominent wholesalers like Martins Atacadista and Atacadão. Account
Managers will be assigned to oversee orders, inventory levels, logistics coordination, quality
inspection and maintain strong partnerships with each wholesaler.
When managing international distribution channels, it is essential to optimize logistics and
supply chain operations while complying with legal regulations (Vela, 2023). We will
designate a National Logistics Manager (NLM) to oversee the entire supply chain and
transportation of Gao Ong Cua ST25 rice from Vietnam to Brazil. Strategic distribution
centers or warehouses will be established in key regions such as São Paulo, Rio de Janeiro,
and Belo Horizonte, to be supervised by Regional Logistics Coordinators (RLCs).
Partnerships with reputable logistics and transportation companies like DHL, FedEx, or local
providers will ensure the efficient movement of goods from distribution centers to retailers
and wholesalers.
Once the company has secured the initial processes of the distribution channel, it is time to
consider building brand awareness among the local population. The Marketing Team, under
the leadership of the National Marketing Manager (NMM), will be tasked with creating
promotional campaigns, developing in-store marketing materials, and collaborating with
retail partners to secure product placements and displays. Regional Marketing Coordinators
(RMCs) will closely collaborate with Regional Development Managers (RDMs) to guarantee
uniform brand messaging and promotions throughout various regions.
Since the ultimate goal of the distribution channel is to optimize product quality and
accessibility for customers, we will establish a dedicated department focused on customer
care and support services. The Customer Service Team, led by a dedicated Customer Service
Manager (CSM), will be responsible for addressing inquiries and complaints, as well as
providing support to retailers, wholesalers, and end consumers. We will implement a reliable
customer relationship management (CRM) system, such as Salesforce or Zoho, to efficiently
track and manage customer interactions. Additionally, we will provide a committed customer
support hotline and email support accessible to all stakeholders.
Furthermore, a budget for distribution channel management will be allocated, including
expenses related to logistics, warehousing, marketing, personnel, retail and wholesaler
partnerships, and customer service and support. Regular financial reviews will be conducted
to assess performance, market conditions, and expansion opportunities, with budget
adjustments as needed.
4. Optimize distribution channels
On the company side, the effectiveness of the distribution channel can be measured through
the collection of information and data including sales, inventory turnover rate, order accuracy
rate, shipping time, etc (Lopienski, n.d.). Sales, the most popular criterion, reflects sales
volume, revenue, and market share in each distribution channel. It helps the company
evaluate the effectiveness and potential of retailers selected to work with and identify best-
selling products as well as any slow-selling items. Other criteria such as inventory turnover
rate, order accuracy rate, and shipping time should also be monitored and evaluated as they
reflect the efficiency of logistics, the important criteria in viewing and ensuring that products
are stored, handled, and transported correctly.
On the customer side, through feedback from the company's customers and channel partners,
the company can evaluate the satisfaction, retention rate, and loyalty of the target customer
group. These criteria reflect the effectiveness and ability to reach customers of the
distribution channels that the company has chosen and are the basis for the company to
evaluate customer experience with each specific distribution channel and partner. ST25 uses
a short distribution channel of three levels, which is not as complicated and needs strict
management and control as other longer distribution channels. However, the company must
monitor the performance of its distribution channels regularly (Faster Capital, n.d.). Through
performance monitoring and evaluation, companies can identify strengths, weaknesses,
opportunities, or threats in their distribution strategy to make appropriate adjustments and
improvements. These may include modifying distribution channels by adding or removing
intermediaries, stores, or levels, changing pricing or promotional strategies, or introducing
new products or services (Scott & Keplinger, n.d.)
The company needs to build strong partnerships by maintaining regular, open communication
with all partners, including retailers, wholesalers, and logistics providers. We should schedule
monthly or quarterly meetings to discuss performance, promotions, and challenges, and also
collaborate on marketing campaigns that promote ST25 rice and show Brazilian consumers
about its unique qualities and images. This could involve co-branded advertising, in-store
promotions, and social media contests. In addition, Gao Ong Cua can provide training to
retail staff on the benefits and selling points of ST25 rice, and support to ensure they can
effectively answer customer questions and promote the product. Then, the company may
have reward programs for distributors and retailers who achieve sales targets or exceed
performance expectations like discounts on future purchases, or other forms of recognition.
All the activities, procedures, and operations shall be conducted professionally and with good
intentions so to ensure company success.

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