Ccac Distribution Report

BM215 Marketing Channels

Choon Chong Auto Company:

Distribution Channel Problems and Recommendations

Semester 2, Academic Year 2010/2011

Instructor: | Assistant Professor Dixon Ho Hillbun |

Done By: | Ooi Shi Yuan, Charlene |

| Samuel Wong |

| Zoee Ho |

Table of Contents

1 Introduction 4

1.1 Research Questions 4

2 Background 5

2.1 Key success factors of CCAC 6

2.2 Customer Analysis 6

2.3 Competitor Analysis 7

3 Methods and Interpretation 8

3.1 External Environment Analysis 8

3.1.1 Car Audio Industry Trends 8

3.1.2 Porters’ 5 forces 9

3.2 PESTELGG Analysis 11

3.2.1 Political 11

3.2.2 Economy 11

3.2.3 Social 11

3.2.4 Technology 11

3.2.5 Environment 12

3.2.6 Legal 12

3.2.7 Global 12

3.2.8 Government 13

3.3 Internal Environment Analysis – Value Chain Analysis 13

3.3.1 Primary Activities 13

3.3.2 Support Activities 15

3.3.2.1 Procurement 15

4 Problems and Challenges 16

4.1 Aggressive Industry Competition 16

4.2 Lack of Advertising 17

4.3 Risk of Obsolete Inventory 17

4.4 Risk of Flooding 18

4.6 Risk of low staff retention 18

5 Recommendations and Justifications 19

5.1 Embarking on Online Media 19

5.2 Re-exporting Products Overseas 20

5.3 Engage in Planning Procedures for Inventory 21

5.4 Modify Warehouse Layout 22

5.5 Motivating and retaining employees 22

6 Conclusion 23

7 Appendix 24

Appendix A Interview Transcript 24

Appendix B CCAC’s Organisation Structure 25

1 Introduction

With an increasing affluence among Singaporeans, more and more cars are being purchased each year. Within these purchases, many of them come with audio systems with a range of quality. Thus, the availability of car audio system services is of increasing importance and is thus examined in this report.

Choon Chong Auto Company (CCAC) is a car audio systems seller and is the focal company for this report. The company’s problems and challenges regarding its...