RMIT Marketing Principles final assignment (ASM3). I got high DI (77%) for this assignment in sem C 2021. This is an individual assignment. Please do not copy or reuse it for any commercial purposes. Be careful of plagiarism.
Table of Contents I Introduction 1.1 Company overview 1.2 Product overview 1.3 Product description and brand awareness: .5 1.4 Market shares and market value: II SWOT analysis Micro & Macro environment a b c d Economic Political/Legal Competitors Customer SWOT table S-O Strategy: III Target Consumer IV Differentiation and Positioning a Differentiation: Product differentiation Image differentiation b Positioning Positioning map Value proposition V Current Marketing Mix performance Price .8 Promotion VI Marketing Objective 10 VII Appendices: 13 VIII Reference: 26 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 I Introduction 1.1 Company overview HABECO is one of the oldest and largest brewing companies in Vietnam The timeline highlights significant events in the company's history Figure 1.1: The history of HABECO (Habeco n.d.) 1.2 Product overview Figure 1.2: Hanoi bottle beer and can beer (Habeco n.d.) Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 1.3 Product description and brand awareness: Hanoi Bottle Beer is a favourite beverage at family gatherings and festivities The manufacture of bottle 450ml accounts for up to 70% of HABECO's total output HABECO believes Hanoi Beer has a good market position in Northern regions and cities because of its clear gorgeous gold colour, silky white foam layer, and long-lasting flavour(Habeco n.d) Hanoi beer is categorized at a middle-low price range whose price fluctuates between 30.000 to 40.000vnd (Euromonitor International 2021; Appendix 1) 1.4 Market shares and market value: According to Statista (2021), Habeco is one of the top three brewers in Vietnam in terms of market share in 2020 (11%), although it is far behind its two competitors Heineken and Sabeco (37% and 35%, respectively) (Appendix 2) Habeco ranked fourth in terms of market value in 2020, with $1.02 billion (Appendix 3) II SWOT analysis Micro & Macro environment a Economic According to the Vietnam General Statistics Office (GSO) (2021a), GDP decreased 6.17 percent in the third quarter of 2021 compared to the same time the previous year, affecting consumer's purchasing behaviors negatively Figure 2: Vietnam GDP growth rate of third quarter from 2017 to 2021, by GSOb b Political/Legal The Alcohol Harm Prevention (Decree 100/2019/N-CP) prevents all drivers, from motorbikes to automobiles, from having any detectable amount of alcohol in their breath or blood ((Diệu Anh 2020) During the Covid lockdown, 5K social distancing policy was implemented, causing a huge decline on on-trade sales (Appendix 5) c Competitors Habeco is facing both direct (other beer) and indirect competition (wine and ciders) (Appendix 6-7) Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 d Customer COVID-19's detrimental influence on the Vietnamese economy made customers hesitant of nonessential purchases They mostly bought essentials like food and medication (Khang Di 2021) SWOT table Strengthen Offer easy approached-price product lines The product lines targets the mid-low-price market also gives Habeco a competitive edge in the saving habit of customers when the pandemic hits their income (Thu Huyền 2021) Opportunity The ease of Covid-related regulations and reopening phase After a period of severe Covid avoidance, several areas progressively reduced social distance and re-started trade It also implies that beverage companies, and Habeco in particular, will be able to recover over the upcoming busy holiday season (Nguyễn Huyền 2021) S-O Strategy: Because the Covid crisis in Vietnam is easing and many customers are gradually returning to their pre-covid life pace, Habeco can benefit from the reopening chance Keeping this in mind, Habeco can restore Hanoi beer brand share by integrating price and promotion strategies Because the pandemic is no longer as severe, Habeco should utilize its advertising approach to revive consumer drinking habits III Target Consumer Frontline workers appear to be the most significant customer segment for Habeco's flagship product, Hanoi Beer, because the product has developed a strong position in the mid-low beer market due to its cheap price and satisfied labour worker's demands Manual workers are predominantly from Social Class E, which has the lowest income (between million and 3.7 million VND/month) (Euromonitor International 2021), and Hanoi Beer's low price and reputation highly appeal to them Workers frequently stop at street side food kiosk for a glass of Hanoi beer or return home to have a can/bottle of Hanoi Beer to relieve tension following several hours of monotonous, hard labour IV Differentiation and Positioning a Differentiation: Product differentiation - For national beer lovers, Hanoi bottled beer is a must-have for family meals or social gatherings The products of Habeco are of the finest quality, sourced from prominent suppliers in the Czech Republic, France, and Australia (AsemconnectVietnam 2018) Hanoi bottled beer is renowned for its consistent quality (Habeco n.d.) That sets it apart from Saigon Beer and Huda Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Image differentiation - In August 2020, Habeco invited three artists representing three generations of Hanoi to transmit the company's message of love, profound devotion to Hanoi's values derived from traditional yeast As Hanoi undergoes transformation and takes on a new appearance over time, the campaign displays both ambition and unbridled enthusiasm in its pursuit of the aim of "Preserving the essence - Elevating the status" of Hanoi Beer's Vietnamese beer (Giang Tiểu San 2020) Figure 3: Hoàng Dũng, Hồ Hoài Anh and Trọng Hiếu in Habeco’s promotion music video (Giang Tiểu San 2020) b Positioning Positioning map Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 The pricing of Hanoi Beer is also much lower than that of international brands like Vietnam Heineken (19.000 VND) and Tiger (16.000), which makes purchasing beer more economically efficient to those who seek to drink with quantity, not quality Despite different formulae, ingredients, and flavours, Hanoi Beer's overall freshness and packaging remain like its competitors in the same price range Value proposition Hanoi Beer's value proposition is "More for the same," as consumers benefit from the cheaper price while still enjoying premium beers made with the finest ingredients, which is like other brands in the mid-price segment As a result, when it comes to alcoholic beverages in Northern Vietnam (Habeco's primary market), Hanoi beer is always on top of the consumer's mind (Khánh Nguyệt 2021) V Current Marketing Mix performance Price a Major pricing strategy: Habeco applies competitor-based pricing for Hanoi beer based on the price of its main competitors Sabeco and Huda (Appendix 8-10) in the mid-low beer segments b Operational pricing b.1 Product mix pricing: Habeco is utilizing product-line pricing based on each product’s mission and messages For example, Truc Bach beer has the highest price as it offers the finest taste and premium quality compared to other beers in the product line On the other hand, Hanoi beer, Hanoi Bold and Hanoi Light, and Bia hoi Hanoi (Hanoi draft beer) are targeting different segments, therefore its taste and packaging, as well as drinking experience, also vary As a result, Habeco charges different prices for these products (Appendix 11) b.2 Price adjustment strategies: Habeco offers many discounts based on the quantity of the product purchased (More discounts for larger volumes) (Appendix 12-16) + Customer-segmented pricing: As can be seen from Appendix 11, Habcco has a range of products targeting different customer segments For example, Hanoi beer is targeting front-line workers or consumers who drink in quantity, therefore, its price is relatively lower than Truc Bach beer, whose target market is a higher class whose demand is quality-based Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 + Promotional pricing: Habeco offers discounts for special- events, the most recent is its opening ceremony of the Bia Hoi Hanoi official store, by which consumers can buy get 2, and also for seasons like Tet holiday (Appendix 17-19)(T.H 2021) Promotion Through pull strategy combined with the use of some promotion mix tools: advertising, sales promotion, and public relations, Habeco has compelled customers to seek out their brand a Advertising: Habeco adopts traditional (broadcast) advertising as the company's advertising appears on special occasions, such as Tet festival or the debut of a new product (Appendix 21-22 ) Additionally, Habeco utilizes digital media such as websites, Facebook, and YouTube to advertise its products However, the interaction and content on such platforms are not as good or as comprehensive as those by other competitors in general (Appendix 23-29 ) b Public relation: Habeco is maintaining its positive brand image through various activities to improve public goodwill and show its corporate social responsibility (CSR) such as blood donation activities, university sponsorship, etc (Habeco n.d.) (Appendix 30-32) Moreover, since Habeco is a public company, a general meeting of shareholders is held annually to inform the shareholders about the company’s performance and target, thereby maintaining the shareholders up to date (Appendix 33) c Sales promotion: Recently, Habeco has launched two sales promotions This is the biggest annual promotion program of the year of Hanoi Beer, spreading the Tet atmosphere and bringing millions of attractive prizes to consumers with a total prize value of up to 26 billion VND (Habeco 2021) (Appendix 34-35) Furthermore, Habeco combines online marketing and sales promotion, as seen by the abundance of minigames uploaded on its Facebook fan page, which received a high level of interaction (Appendix 36-38) Evaluation Price Doing well Not doing well Customer-segmented: Wide range of prices targeting different segments and reflecting the messages of the products →Help regain market share by its low price products to recover from Covid-19 Promotional pricing: Offer abundant vouchers and discounts →Stimulate customer purchase Product line-pricing: Having similar price ranges Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 → Confuse the buyers as the prices are not significantly varied after Covid-19 Promotion Online marketing + Sales promotion: Recorded high interaction from customers → Enhance customer engagement Does not use buzz marketing (KOLs) → Cannot effectively target young consumers Integration: Because Hanoi beer is targeted at frontline workers and others who consume in large quantities, the price is relatively low, and the product is frequently discounted according to volume purchases As a result, we can observe how its product line pricing and discounting operate in tandem to increase Hanoi beer sales volumes Additionally, online marketing on Facebook with sales promotions such as minigames themed on football matches is used to reach football fans, especially frontline workers, which illustrates the link the price and promotion stage of marketing process VI Marketing Objective To recoup sales lost to Covid-19 and revitalize Hanoi beer to customers, Habeco should leverage its strength (competitive pricing of Hanoi beer) and the impending chance when Covid eases and cities restore their usual pace Habeco's goal should be to increase Hanoi beer's brand share from 8.4% to 9.0% by the end of 2022 (Appendix 5) This should be achievable and realistic, as the target client for Hanoi beer is frontline workers, who prefer to drink in large quantities to recharge and socialize with co-workers While their income is low, the percentage of drinking persons earning less than million per month is still relatively high, illustrating the prevalent drinking culture in Vietnamese society (InfoQ 2020) (Appendix 39) VII Marketing Recommendations To achieve the marketing objectives of increasing the brand shares, Habeco should consider its pricing and promotion strategies Pricing: Hanoi beer is the main product of Habeco and it offers the lowest price among the product portfolio of Habeco Therefore, Habeco should take compromised effect into account, as this means that the decision-maker prefers a moderate option over extreme ones because it is simpler to defend, less likely to be criticized, and is compatible with loss aversion if there are many choice alternatives (Yoo et al 2018) Therefore, to raise target customers’ incentive to choose Hanoi beer, Habeco should apply psychological pricing based on compromised effect like Starbuck with the sizes of their coffee cups (Appendix 40) Specifically, Habeco should adjust the price of their blue Hanoi beer to be cheaper than the original Hanoi beer, because the blue one’s target is for central Vietnam, where the beer market is witnessing a strong raise of Huda and an emerge of Sabeco, making it more challenging for Habeco to compete (Quân Bảo 2021) Therefore, to focus on the original Hanoi beer, Habeco should use the blue version as leverage By doing this, the original Hanoi beer will stand in the middle and the two extremes are blue Hanoi beer and Bia hoi Hanoi, this concentrates the consumer’s attention on the original version, helping raise its brand share in the market and achieve the marketing objective 10 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 5: Brand Shares of Beer by Euromonitor International, 2021, horizontal columns chart 15 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 6: Sales of Alcoholic Drinks by Category, by Euromonitor International, 2021, horizontal columns chart Brand Price Alcohol Concentration Heineken 19.000VND 5% Carlsberg 18.000 VND 4.8% Tiger 16.000 VND 5% Saigon Beer 11.900 VND 4.3% Hanoi Beer 11.000 VND 4.6% Appendix : List of beer price (330ml) and alcohol concentration (Shopee 2022; Bachhoaxanh 2022) 16 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 8-10: The price of Hanoi beer and its main competitors (330ml can)(Shopee 2022) 17 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Product Price (VND) Missions and messages Truc Bach beer 16,000-17.000 (330ml) The premium beer line is made using only the best imported materials, including Saaz hops - one of the world's four noble hops grown solely in the Czech Republic's Zatec valley - and spring barley harvested in France and the Czech Republic's famous raw material areas Truc Bach Beer is compared to a piece of art by drinkers The beer is golden in color and translucent, similar to honey When pouring, the beer foam is white, thick, and porous, and the ear hears the gradual melting of the foam "smooth" and "smooth" When beer is consumed, it has a tiny bitter flavor that gradually transforms into the lovely sweetness of quality malt This distinctive beer flavor is the product of a lengthy natural fermentation process that lasts 2-3 times as long as a standard brew (Habeco n.d.) Hanoi Bold and Hanoi Light 14.000-16,000 (330ml) Bold & Light's targeted consumers is young people, the generation that is constantly on the lookout for breakthroughs, devotion, and originality, as well as a willingness to confront obstacles and challenges: Hanoi Bold canned beer, with a 330ml quantity, is regarded as a yeast signifying the will to conquer and attempt to overcome oneself Hanoi Light canned beer 330ml is a yeast that embodies originality, refinement, and transformation This duo is brewed with premium hops and carefully chosen barley by expert brewers, assuring consistency in the quality of each batch Excellent sense of taste (Sosanhgia n.d.) 18 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Bia hoi Hanoi (Hanoi draft beer) 14.000-15,000 (500ml) Hanoi Bia Hoi is a tradition and cuisine of Hanoi people It has been launched and popularized in the market, bringing historic qualities closer to all generations (Habeco n.d.) Hanoi beer 10,000- 10.500(330ml) Designed to be the flagship product of the Hanoi beer brand in general, Hanoi bottled beer accounts for 70% of HABECO's yearly production The appealing clear golden hue, persistent foam, silky white, harmonious and mellow bitterness, and deposited aftertaste all contribute to Hanoi bottled beer's strong position in the marketplaces of northern provinces and cities (Habeco n.d.) Appendix 11: The product lines of Habeco and their missions (Habeco n.d.; Sieuthiducthanh 2022; Sosanhgia 2022; Teasymart 2022; Sieuthigiatot 2022) Appendix 12-16 : Habeco’s sales promotion on Shopee official store (Capture from Shopee) 19 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 17: Habeco announcement about newly opened official store of Bia hoi Hanoi (T.H 2021) Appendix 18-19: Habeco’s vouchers on Shopee and Tiki (Captured from Shopee and Tiki) 20 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 21-22: Habeco’s major advertising on television in 2021 (Captured from Youtube) Appendix 23-25 : Low number of subscriptions and poor content (only 19 videos) on Habeco Youtube channel compared to Tiger and Bia Saigon (Captured from Youtube) 21 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 26-29: Bia Hanoi fanpage compared to other competitors on Facebook (Capture from Facebook) Appendix 30-32: Habeco’s CSR activities: blood donation, educational sponsorship (Captured frim Habeco webpage) 22 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 33: Habeco annual general meeting of shareholders 2021 (Nguyễn Huyền 2021 Figure 34-35: Habeco’s sales promotion for Tet holiday (Capture from Habeco’s webpage) 23 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 36-38: Habeco’s minigames on Facebook fanpage (Capture from Habeco;s Facebook) 24 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 39: The distribution of alcoholic use in Vietnam by income by InfoQ,2020 Appendix 40 : Starbucks redirected client emphasis to the Grande size by placing two extremes surrounding it: the "Tall" size (on the left) is too little, while the "Venti" size (on the right) is too large As a result, the customer will choose the centre option, the "Grande size." (Chauhan 2021) 25 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 Appendix 41: Vietnamese famous artist - Dế Choắt and Decao - supported Tiger Platinum, by Quang Vũ, 2021 Appendix 42: Young generation enjoyed their moments with Tiger Platinum, by Trà An, 2021 26 Individual Final Marketing Project | SGS-G20 | Trần Quang Phúc- s3926278 VIII Reference: AsemconnectVietnam 2018, ‘TỔNG CÔNG TY CỔ PHẦN BIA – RƯỢU – NƯỚC GIẢI KHÁT HÀ NỘI’, AsemconnectVietnam, viewed January 2022, Adtima n.d., ‘Thể thao mức độ quan tâm người Việt’, adtima , viewed January 2022, https://adtima.vn/blog/the-thao-va-muc-do-quan-tam-cua-nguoi-viet-article67 Bachhoaxanh 2022, Bia Calsberg lon 330ml, Bachhoaxanh, viewed January 2022, Chauhan, A 2021, ‘How Starbucks Uses Strategic Pricing Strategy To Affect Your Buying Decisions’, Abhishek Chauhan, viewed January 2022, Diệu Anh 2020, ‘Nghị định số 100/2019/NĐ-CP: Uống rượu bia lái xe ô tô bị tước lái xe đến 24 tháng, xe đạp bị phạt’, anycar.vn, viewed on January 2022, Euromonitor International 2021, Alcoholic Drinks in Vietnam, COUNTRY REPORT 2021, viewed January 2021, Passport database Euromonitor International 2021, Brand Shares of Beer, viewed November 2021, Passport database Euromonitor International 2021, Brand Shares of Beer, horizontal columns chart, viewed January 2021, Passport database Euromonitor International 2021, Company Shares of Beer, horizontal columns chart, viewed 2021, Passport database Euromonitor International 2021, Income and Expenditure: Vietnam, country report, Euromonitor International, viewed January 2022, Passport database Euromonitor International 2021, Sales performance of Beer in Vietnam (2006-2025), Passport database Euromonitor International 2021, Sales of Alcoholic Drinks by Category, by Euromonitor International, 2021, horizontal columns chart, Passport databaseer General Statistics Office 2021a, ‘Press release social-economic situation in the 3rd quarter and months of 2021’, viewed January 2022 General Statistics Office 2021b, ‘Infographic Gross Domestic Product in the third quarter and months of 2021’, viewed 11 January 2022,