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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.

23. P a g e | 23
Figure 1: the graph of the company’s distribution channel
direct channel
indirect channel
0
20
40
60
80
100
120
140
160
180
200
direct channel indirect channel
Quatities 159 193
The graph of the company's distribution
channel

24. P a g e | 24
Figure 2: The graph of direct channel
0
5
10
15
20
25
30
3/4
Hp
1HP
SB10
1HP 1.5Hp 2Hp 3Hp
1.5Hp
SB15
2HP
SB20
3Hp
SB30
quantities 17 12 10 22 27 22 16 18 15
The graph of direct channel

25. P a g e | 25
Figure 3: The graph of indirect channel
0
5
10
15
20
25
30
35
3/4Hp
1HP
SB10
1Hp 1.5HP 2HP 3Hp
1.Hp
SB15
2Hp
SB20
3Hp
SB30
quantities 21 21 24 19 35 27 14 14 18
The graph of indirect channel

26. P a g e | 26
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.

27. P a g e | 27
Figure 4: The graphs of wholesalers
0
5
10
15
20
25
30
3/4
Hp
1Hp
SB10
1Hp 1.5H
p
2 Hp 3 Hp
1.5H
p
SB15
2Hp
SB20
3Hp
SB30
Quantities 20 15 15 10 30 18 10 13 14
The graph of wholesalers

28. P a g e | 28
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.

29. P a g e | 29
Figure 5: The graphs of retailers
0
1
2
3
4
5
6
7
8
9
3/4
Hp
1Hp
SB10
1Hp 1.5H
p
2Hp 3Hp
1.5H
p
SB15
2Hp
SB20
3Hp
SB30
Quantities 1 6 9 9 5 9 4 1 4
The graph 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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Figure 6: the graph of filter pumps’ sales
0
50
100
150
200
250
300
MILLIONS
3/4
Hp
1Hp
SB10
1HP 1.5HP 2HP 3HP
1.5Hp
SB15
2Hp
SB20
3Hp
SB30
Sales 7 52 73 82 275 186 55 86 95
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
TOTAL
QUANTITIES:
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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