aa TRNG ĐI HC M TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITEU LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA7 Author: DO MINH TRUNG VAN HOAI THU MARKETING PLAN FOR SAIGON SPECIAL BRAND OF SABECO IN VIETNAM MASTER PROJECT MASTER IN MARKETING AND ADVERTISING HO CHI MINH CITY (2014) 1 COMMITMENTS We, Do Minh Trung and Van Hoai Thu commit that we have done this project by ourselves based on the information collected either from The public’s or SABECO’s sources. This paper is designed only for the academic purpose of the completion of our Master in Marketing and Advertising. It is not expected for any other uses. ………………………………… ……………………………… Đ Minh Trung Văn Hoài Thu 2 ACKNOWLEDGEMENTS This final project was completed with the guidance of Mr. Le Minh Duc, thank you very much for your time and enthusiasm to give us comment and direction. Take this opportunity, we would like to send our special thanks to family, our colleagues and friends for support and dedicated to help we complete this project. The result and the feasibility of this project in reality are motivating us for knowledge that we gain during the course. 3 TABLE OF CONTENTS COMMITMENTS 1 ACKNOWLEDGEMENTS 2 EXECUTIVE SUMMARY 4 LIST OF ABBREVIATIONS 5 INTRODUCTION 6 I. Company Overview 7 1. Vision 7 2. Mission 7 3. History of SABECO 7 II. Market overview 10 III. SABECO and Saigon Special Brand 15 1. SABECO (Saigon Beer – Alcohol – Beverage Corporation) 15 2. Saigon Special Brand 16 2.1 Brand characteristics 16 a. Target segment 16 b. Positioning 16 c. Differentiation 16 d. Saigon Special brand - SWOT matrix 17 2.2 Competition 18 2.3 Analyze of the Marketing Mix Strategy of Saigon Special 19 2.3.1 Product 20 2.3.2 Pricing 20 2.3.3 Place 23 2.3.4 Promotion 26  Pull Strategy 26  Push Strategy 26 4. Marketing activities in 2012 28 5. Achievements 31 5.1 Internal data reflecting on consumption 31 5.2 External data from market research companies 31 IV. Recommendations and Implementation plan for 2014 34 2.1 Objective 36 2.2 Goal 36 SAIGON SPECIAL - MARKETING PLAN 2014 41 RUNNING TIME FOR THE 2014 PLAN 42 References: 43 4 EXECUTIVE SUMMARY Saigon Beer-Alcohol-Beverage Joint Stock Corporation (SABECO) has been the well- known and familiar name on beer market for more than 35 years with the first product, Saigon Export, and later on they developed Saigon 333, Saigon Lager and lately in 2000 Saigon Special. There are many internal and external forces that influence SABECO strategies on their developing way. The success of the Saigon Beer during the pass time has been relied on a lot of factors, but it can be said that the most importance in those is the effective marketing strategy has been applied by SABECO. This project was written after reviewing and analyzing the Vietnamese beer market which has been grown stably and rapidly for recent years. The beer industry is expected to post an annual volume growth rate of 13% 2011-15 and 8% 2016-25. The overall objective of this project was to evaluate the market potential of SABECO in term of analyzing SWOT matrix. Saigon Special is a new brand of SABECO that is aiming at the target segment of people who tend to drink premium beer. Although at present SABECO is the leading beer producer with the market share accounting for 34% in 2012 (BMI 2013), however the launching of its new brand – Saigon Special was not so successful because SABECO lacked of an effective marketing plan especially focusing on promotion activities for this new brand. By analyzing SWOT matrix an marketing mix of Saigon Special brand, some weaknesses of promotion strategy are identified such as: on the way to build up the brand awareness, Saigon Special did not do much as special as its name in order to outstanding of its relative, some marketing activities of Saigon Special still put on the shoes of SABECO. Saigon Special is nearly loose awareness of consumer in the premium segment, because the lack of investment into the marketing activities especially focusing on promotion. In exploring the weakness point of the product, Saigon Special, we have given some recommendations to grow market share and market size by investment into sales, marketing and PR activities, prioritize promotion activities to create the customer need. 1/ For the pull strategy: Increase brand awareness (for short term) and setting a strong brand identity and Trade mark (for long term) 2/ For the push strategy: Strongly invest for retailer in terms of point of sales material (POSM), display (for short term) and invest on distribution system in both policy and display, especially at point of sales (for long term). 5 LIST OF ABBREVIATIONS - SABECO: Saigon Beer – Alcohol – Beverage Corporation; - HABECO: Hanoi Beer and Beverage Corp; - MoIT: Ministry of Industry and Trade; - BMI: Business Monitor International ; - APB: Asia Pacific Breweries Limited; - VBA: Vietnam Beverage Association. 6 INTRODUCTION Beer has been a popular and favorite drink for a long time. It is considered as an associate companion in the parties, birthdays, weddings…especially for the males. Beer is not only a refreshment drink, but it has also been considered as an intestinal excitation supporter. Beer can help to reduce the blood pressure and prevent the eye kernel from blur. The moderate drinking of beer is good for health and help to lengthen the life. Therefore the beer volume has continuously increased all over the world in general and in Vietnam in particular. In 2013, there are some prosperous signals in Vietnamese economy but still many difficulties still remain. A lot of industries face a big loss. However, in such situation, the domestic beer industry has been seen as a bright mark with the annual increase of 10% and volume reached around three billion of liters in 2013. The market research organization Eurowatch has published the statistic number that averagely, each Vietnamese person consumes thirty two liters of beer per a year. Vietnam is the leading beer drinker in Asean area and ranks third in the Asia, after China and Japan. Seizing and understanding the market needs, the Saigon Beer-Alcohol- Beverage Joint Stock Corporation (SABECO) has been the well- known and familiar name for the domestic customers. After 35 years having appeared in the domestic market, the SABECO brands exist in the consumers’ minds are Saigon Lager (or Green Saigon- Sài Gòn Xanh), Saigon Export (Red Saigon Sài Gòn ), Saigon Special and canned beer 333. Each brand has its specific characteristics but they share the same intimate distinguished taste. The success of the Saigon Beer during the 35 years has been relied on a lot of factors, but it can be said that the most importance in those is the effective marketing strategy has been applied by SABECO. In addition, the new business concepts have been ceaselessly improved. They are the strategies to develop the brands of SABECO and enhance the name of Saigon Beer to a new high level not only in Vietnam, but also stretch out in the world. With the slogan “The yeast of success”, Saigon Special has more and more affirmed its position and brand in the mind of the customers at the middle and high income classes. In this paper, we have analyzed the marketing and advertisement activities of Saigon Beer brands in general and Saigon Special in particular to give the solutions and suggestions which will help Saigon Special more developed and firmly positioned at the beer segment for the customers at the middle and high income classes in the society in the situation of the fierce competition with the big brand names like Heineken, Saporo, …. Our solutions also contribute to the firmly keeping of the number 1 of SABECO in the beer production and consumption in the domestic market. 7 I. Company Overview 1. Vision "To make the products of SABECO group become the top selected drinks in Vietnam, have stable position in terms of brand awareness and reputation regionally and internationally." 2. Mission To develop Vietnamese Beverages with the world standard, promote cultural cuisine of Vietnam; improve the quality of life through the provision of the beverage products with high quality, safe and complementary nursing; bring practical benefits to shareholders, customers, partners, employees and society. 3. History of SABECO SABECO (Saigon Beer – Alcohol – Beverage Corporation) is Vietnam leading firm in Beer industry with about 90% of state - owned shares. After over 100 years of construction and development, SABECO is now Vietnam’s largest enterprises in the manufacturing field and beer industry. Owning Vietnam first class beer brands namely: Saigon Beer, Beer 333 , SABECO has target customers at the age of 25-45 (core 30-40), socio - economic components ABCDE (core B,C,D,E). SABECO’s Beers are mostly for the average income class or to those who love traditional taste and feeling. For many years, SABECO got the annual growth rate over 20%, far exceeding the average growth rate of 15% of the industry. However, in 2011, SABECO total output was about 1,200 million litters, a year -on -year increase of 10%. This was the first year SABECO got the growth rate which was only equal to the industry average (10%, according to MOIT report). It is obviously that beside the impressive growth in many aspects, SABECO is losing market share to the competitors. SABECO leading team is now finding ways to increase sales and quantity, including: restructuring all Beer Brands, rebuilding SABECO identity system, penetrating new markets such as the North market, high class market Milestone Information Period 1977 - 1988  01/06/1977: Southern Wine Beer Company official reception and management Brewery Cholon from BGI Company and formed Saigon Brewery;  United Enterprise 1981: Alcohol Beverages II was converted from Southern Wine Beer Company; 8  Saigon Brewery in 1988 became a subsidiary under United Enterprise Alcohol Beverages II. Period 1988 - 1993  1989 – 1993: owned 20 branches across the country;  1993: became Saigon Beer Company with new members: - Saigon Ice Factory; - Alcohol Plant; - Mineral Water Plant DaKai; - Joint Venture Carnaud METALBOX Saigon; - Joint Venture Malaya Vietnam Glass for producing glass bottle. Period 1994 - 1998  1994 – 1998: System reached 31 branches across the country;  1995: Saigon Beer Company established new member which was Transportation Enterprise;  1996: Received new members: Binh Tay Wine Company;  1996 - 1998 Founded the production company associated with Saigon Beer members: - Phu Yen Brewery; - Phu Tho Brewery. Period 1999 - 2002  2000 Quality Management System by BVQI - ISO 9002:1994;  2001 Quality Management System by BVQI - ISO 9001:2000;  Founded more the production company associated with Saigon Beer members: - 2001 Beer Company Soc Trang; - Henninger Brewery; - Huong Sen Brewery; - 2002 Joint Venture Beer Can Tho Company; - Brewery Ha Tinh.  Established depot in Nha Trang , Da Nang and Can Tho. 2002 - present  2003: established Corporation Beer - Alcohol - NGK SABECO based Beer Company Saison and 9 receiving new members : - Binh Tay Wine Company; - Chuong Duong Beverages Company; - Glass Factory in Phu Tho - Trading and Servicing Beer - Alcohol - NGK Saigon Company  2004: Corporation Beer - Alcohol - NGK SABECO moved to organization and operation as a parent - subsidiary model following by the 37/2004/QD- BCN of the Minister of Industry;  2006: Completed a delivery system across the country with 8 regional subsidiaries of SABECO;  2007: Beer - Alcohol - NGK SABECO corporation continuously grew rapidly with the mainstream products, and new investments in various fields and products;  Currently Beer - Alcohol - NGK SABECO Corporation has total 28 members. (Source: www.SABECO.com.vn) Figure 1-1: Several beer brands manufactured by SABECO (Source: http://hcm.24h.com.vn/thi-truong-tieu-dung/suc-hut-cua-thuong- hieu-bia-viet-c52a507517.html) [...]... countries like Germany in order to take advantage in building reputation in domestic market, and also finding a high chance for exporting Setting a strong brand identity and Trade mark - Increase brand awareness - - Strongly invest for retailer in terms of point of sales material (POSM) and display - Invest on distribution system in both policy and display, especially at point of sales 35 ... that Saigon special did not perform well It contributed only 1.1% in total volume of SABECO products (14 milion liters / 1, 263 billions liters) Moreover, in terms of brand awareness, Saigon special was the last one of the top five of mind of customer Then, by using the map of beer brand positioning, the reality was that this brand not only did not reach the position as a premium brand but also stood in. .. end users finally Table 3 - 2: Selling Price of SABECO Beer in the First Quarter of 2013 (Price unit: VND) COMPANY SABECO VIETNAM BREWERY LTD (VBL) SANMIGUEL SAB MILLER SIZE 333 ( 24 cans in pack) Saigon Export ( 24 bottles in case) Saigon Lager ( 24 bottles in case) Saigon Special ( 24 cans in pack) Saigon Special ( 24 bottles in case) Heineken (bottle) Heineken (can) Tiger (12 big bottles in case)... department of Kirin Holdings - big and famous Japanese beer companies), it will push the demand for consuming of beer products, especially for the middle high beer products, ensuring the deep growth of the Vietnam beer market in the future, based on tinmoi.com.vn Basing on the actual survey of beer price sold in the market and table of analyzing beer consuming target group at Vietnamese market, with the pointed... the core factor determining the success of the business Building a strong brand positioned firmly in the minds of customers is a difficult problem and surely it is not an easy task, especially in the context of Vietnamese beer market when more and more famous beer brands of the world appear (currently there are over 30 international brands of beer available in Vietnam) As a leading domestic , with total... remains one of the best strategies to overcome the lack of infrastructure W T Raised raw-material costs threaten profitability in a competitive market in which higher prices cannot easily be passed on to consumers 14 III SABECO and Saigon Special Brand 1 SABECO (Saigon Beer Alcohol Beverage Corporation) According to a research of SABECO in 2010, within 36 biggest cities in Vietnam, there were 4 SKUs of. .. the continuing removal of market barriers and trade restrictions set to increase competition S O A growing tourism sector is fuelling interest in convenience categories, in addition to sub-sectors such as soft and alcoholic drinks With GDP growth averaging 7.1% annually between 2000 and 2011, Vietnam has been one of the fastest-growing economies in Asia in recent years With consumers' rising incomes,... activities I love Saigon Beer- Improvisation in the targets at celebrating 138th anniversary of the history as well as 36 year of building & development of Saigon Beer - The programs to support the fees of advertisement for the Association brand Saigon Sp Taste together the enamel of 27 4 Marketing activities in 2012 No SAIGON SPECIAL - MARKETING PLAN Price Budget Amount Spec (x 1000 VND) (x 1000 VND) Item PULL... volume in 2013 reaching 1,310 billion liters (26.5% higher in comparison of those in the same period) - SABECO company is confident in positioning their brand by adopting the appropriate marketing mix strategy which is the key to implement strategic positioning, contribute to the unique and distinctive beer namely SAIGON SPECIAL 19 2.3.1 Product a Quality Saigon Special beer products with 100% malt ingredients... stood in nowhere in which can attract users IV Recommendations and Implementation plan for 2014 Saigon special is a special member, which is positioned at a premium beer, of a whole SABECO product portfolio However, a long the way building up the brand awareness, Saigon Special did not do much as special as its name in order to outstanding of its relative Therefore, in the limitation of this project, . accounting for 34% in 2012 (BMI 2013), however the launching of its new brand – Saigon Special was not so successful because SABECO lacked of an effective marketing plan especially focusing on. awareness, Saigon Special did not do much as special as its name in order to outstanding of its relative, some marketing activities of Saigon Special still put on the shoes of SABECO. Saigon Special. awareness of consumer in the premium segment, because the lack of investment into the marketing activities especially focusing on promotion. In exploring the weakness point of the product, Saigon Special,