Intership HABECO

ACKNOWLEDGEMENT Regarding completing this Senior Seminar, I would like to acknowledge the following agencies for their support and assistance Great deals appreciated go to the facilitation from Foreign Trade University, especially the School of Economics & International Business The internship program really plays an important role in providing senior year students with various opportunities to enter the corporate world I am also grateful of both Marketing Department and Market Department of Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO), who warmly supported me with their hospitality during the intern period Not only did they arrange my local work but also assisted me in the specialized field with various useful information Above all, the special thank goes to my helpful supervisor, Mrs Mai Thu Hien The enthusiastic guidance and support that she gave truly help finalize the progression and smoothness of this Senior Seminar TABLE CONTENTS ACKNOWLEDGEMENT INTRODUCTION Preface The reason to choose a topic Objectives of the study Scope of the research 5 Research method CHAPTER ONE: THEORETICAL BASIS OF MARKETING 1.1 Definition of marketing 1.2 The role of marketing 1.3 Marketing Policy 1.3.1 Product policy 10 1.3.2 Price policy 11 1.3.3 Promotion policy 11 1.3.4 Distribution policy 12 1.4 Measures to promote marketing activities in enterprises 13 CHAPTER TWO: REAL SITUATION OF MARKETING ACTIVITIES AT HABECO 16 2.1 Beer market in Vietnam 16 2.2 Overview of HABECO company 17 2.2.1 Formation and development history 17 2.2.2 Organizational structure and business production sectors 20 2.2.3 Product line 22 2.2.4 HABECO's business results in the last three years 24 2.3 Marketing activities of HABECO Company 28 2.3.1 Marketing strategy of HABECO 28 2.3.2 Marketing policies of HABECO 30 2.3.3 Evaluate marketing activities of HABECO 36 CHAPTER 3: PROPOSAL FOR POWERFUL MARKETING ACTIVITIES OF HABECO 39 3.1 HABECO's development orientation in the future 39 3.2 Proposed Solutions 41 3.2.1 Develop and effectively implement product policies 41 3.2.2 Making reasonable price policies 42 3.2.3 Restructuring distribution channel system 42 3.2.4 Enhancing advertising and sales promotion 44 3.2.5 Other solutions 45 CHAPTER 4: CONCLUSION 47 REFERENCE 48 INTRODUCTION Preface The existence and development of human society is closely associated with the development of social production The society’s production reflects its level of development, or in other words, it expresses a society’s appearance and strength Along with its development, the production is growing and growing, Vietnam is in the process of developing a socialist-oriented market economy Developing a market economy and integrating international economy are indispensable objectives These have opened up development opportunities for not only beer - alcohol - beverage industry but are also the opportunities for all business sectors in the country Businesses have also taken advantages of these opportunities to develop as well as expand the companies and to bring Vietnamese brand beyond the territorial borders Along with that continuous development and integration process, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) has made endless efforts to improve product quality, innovate the designs, replace the obsolete, backward equipment and machines with modern ones so as to create the best products for consumers Marketing activities to promote brand and products have a significant impact on the existence and development of HABECO Moreover, the effective operation of the Corporation will bring a better life for employees and fulfill social obligations Therefore, the development and promotion of marketing activities is of tremendous significance With the knowledge gained at Foreign Trade University along with the process of studying, investigating and collecting data, information at HABECO, I chose the topic: “Solutions to promote marketing activities of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO)” to write this Senior Seminar The reason to choose a topic In recent years, Vietnam's economy has always developed strongly, the demand for production and consumption of goods has been increasing Vietnam has truly become a member of the global playing field by joining the WTO Vietnam's export market has been expanded Vietnam also creates many favorable conditions for foreign investment Thanks to the advantage of cheap and abundant labor force, more open policies, stable political and economic environment, more and more foreign investors come to Vietnam as an attractive destination to build factories Export manufacturing enterprises More and more Vietnamese enterprises are confident to enter the world market Vietnam's export turnover therefore keeps growing All of the above factors have a great impact on the birth of a series of businesses and enterprises operating in the field of foreign trade Many businesses with autonomy in production and business have affirmed their foothold and the business performance is really profitable Today knowledge of business, including marketing, is an urgent requirement of economic managers So not only is it a profitable business but also a business and a management art, it has a key place in the entire manufacturing process Thanks to good marketing activities help businesses always adapt to the market so as not to go bankrupt and improve efficiency constantly, making units always grow in competition Marketing today has a huge role, holds an important position in our society That's why I chose the topic “Solution to promote marketing activities of Hanoi beer – alcohol – beverage joint stock corporation (HABECO)“ Objectives of the study The thesis will analyze and evaluate the marketing activities, to clearly see the situation, thereby propose solutions and options to perfect Marketing activities and promote the consumption of products of HABECO Helping with the expansion and development of businesses, while improving business efficiency Scope of the research Studying the actual situation of business activities of HABECO enterprises together with Marketing activities in enterprises Research method This research is conducted based on economic theory, marketing management theory, applying the research methods: Collecting data provided by employees at the same time comparing, analyzing, collecting statistical data of enterprises to draw conclusions CHAPTER ONE: THEORETICAL BASIS OF MARKETING 1.1 Definition of marketing Marketing is an abstract concept that has been defined in many different ways by people due to different perceptions It is defined in Dictionary.com as “the action or business of promoting and selling products or services, including market research and advertising” According to Philip Kotler, “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other” Marketing is also defined by the American Marketing Association as “the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” The term developed from the original meaning which referred literally to going to market with goods for sale Marketing is the action or business activity that includes market research and advertising, which involves presenting, promoting, finding out what customers want, using that information to design products and services, and then selling them effectively or in the best possible way From a sales process engineering perspective, marketing is “a set of processes that are interconnected and interdependent with other functions of a business aimed at achieving customer interest and satisfaction” Marketing also refers to activities a company undertakes to promote the buying or selling of its products or services which include advertising, selling, and delivering products to consumers or other businesses Some marketing is done by affiliates on behalf of a company Besides, marketing is the process of getting potential clients or customers interested in your products and/or services The key word in this definition is process; marketing involves researching, promoting, selling, and distributing your products or services On the other hand, marketing is the process of teaching consumers why they should choose your products or services over those of your competitors, therefore, it truely is a form of persuasive communication 1.2 The role of marketing Today, marketing management is the subject of growth in benefits of all sizes and in all types of organizations inside, outside the business sector and in every kind of country In the business field, marketing has come to the senses of companies at different times Marketing also plays a particularly important role for macroeconomic management But marketing has a huge role for microeconomic management The market is the object and important base of macro management Through the market to the State regulate production To understand the market, you must research it through the theory of marketing Marketing is one of the important subjects to fulfill their requirements for the reproduction of goods: productivity, quality and efficiency Today, companies cannot simply survive by doing their job well, but marketing as a company's function, including identifying customer goals and the best way to satisfy them satisfy their needs and wants in a competitive and profitable way The function of marketing is the inherent effects derived from the objective nature of marketing on the process of goods reproduction including the function of adapting products to market demands Marketing functions to make products always adapt to market demand It does not the work of technicians, manufacturers but it shows what the production engineering parts need to produce, how to produce it, how to produce it, and when to give it into the market Carrying out this function, marketing can acquire and coordinate the activities of technical departments, product standardization * Distribution function This function includes all activities to organize the optimal mobilization of commodity products from the end of production to delivery to consumers * Goods consumption function This function can be acquired into two major types of operations: + Control over prices; + Point out the business and sales art; * Support function Implementing this marketing function has many rich activities: + Advertising; + Sales promotion; + Product services; + Fair Coordinated marketing involves two main things: Firstly, the diverse functions of marketing must be closely coordinated with each other and come from the perspective of the customer Secondly, marketing needs to be well coordinated with other parts of the company Marketing does not work well if it is just a separate department, it works well if all employees in the company appreciate the efficiency that comes from customer satisfaction 1.3 Marketing Policy Marketing policies are the guiding principles, rules, methods and procedures established in association with marketing activities to support and promote the implementation of the defined goals Marketing policy will have to show and guide managers in the field of sales and marketing to know who will sell, what to sell, whom to sell, how much and how Marketing is an activity that includes many specific policies whose implementation affects the success or failure of the implementation phase of the strategy, including four major policies of product policy and policy price (prrice), promotion policy (promotion) and finally the distribution policy (place) Marketing hoạt động bao gồm nhiều sách cụ thể mà việc thực chúng có ảnh hưởng đến thành công hay thất bại giai đoạn thực chiến lược, bao gồm bốn sách chủ yếu sách sản phẩm, sách giá (prrice), sách xúc tiến (promotion) cuối sách phân phối (place) 1.3.1 Product policy Product policy is at the heart of Marketing both at a strategic and practical level It is closely related to the strategic planning, competition strategy and market positioning For marketing, product policy always plays the most important role, considered the backbone of the business strategy of construction enterprises Product policy diagrams facilitate the realization of the marketing strategy objectives of the enterprise The content of product policy includes small policies: Product category policy, the policy of consolidating and developing existing product reputation, new product development policy, product brand policy, and packaging policies, complete policies and improve product use characteristics in adapting to consumer needs, product life cycles, researching new products 10 as: Beer Festival, high quality Vietnamese goods fair, beverage fair, annual industrial goods fair Ad timing is an important factor On the mass media all have the golden time to advertise Beer is a seasonal product in the Northern region, it is strongly consumed on holidays, New Year, and hot seasons Therefore, at these times, HABECO has focused on launching strong promotional activities on its products Promotion activities of HABECO are conducting promotions, however, they are not regular and frantic Some of the main promotion programs of HABECO are as follows: Promotion of first-class agents through the program of transport support or progressive rewards for rewards and gifts in kind to second-level agents HABECO has announced Promotion and regional management staff will be responsible for sending to all level agents Promotion for consumers: HABECO organizes special promotions on the occasion of special festivals for consumers with attractive prize structure to stimulate the purchasing power of the market 2.3.3 Evaluate marketing activities of HABECO 2.3.3.1 These achievements The Company's consumption market is increasingly expanding: In 1995, Hanoi beer was only consumed in 17 provinces and cities in the North, so far it has been present in all provinces Besides the success in expanding the market by geographical area, the Company also boosted the consumption rate for existing customers, making the output increase incessantly If in 1995 only consumed 38.895 million liters, by 2019 it will have increased to about 398.5 million liters The ability to expand the market of the Company still has great potential Thanks to the right marketing strategy, Hanoi Beer branded products have been evaluated as one of the strong brands and have built a firm foothold in the hearts of consumers This achievement is thanks to the efforts of the Board of Directors and the company's employees in the continuous innovation and improvement of technology, 36 the application of short-term fermentation technology to production High productivity As a result, production time is shortened, production costs are saved, leading to lower costs and improved product quality On the other hand, the Company has been able to consolidate and expand its market because of the reasonable product restructuring policy of the Company The complementary products support each other to create a relatively stable sales volume in the months, at the same time with the current product policy, the Company has promoted its strengths and avoided competition 2.3.3.2 The sides still exist Despite a relatively large market, the company's products only cover the North, while the Central and the South have almost no footholds As the company that has the advantage in terms of the earliest time to penetrate the market - the time that the Northern beer market is still open - should be with the advantages of price, quality and great effort, Ha Beer Company Crib is likely to gain a larger market share and a larger sales volume than at present But at that time, the sales were too easy for the Company's employees to be subjective, refusing to expand the market, creating more gaps in the market Therefore, when the joint venture companies appeared, they attacked these gaps and gradually occupied the Company's market share, causing the Company's market share to decrease over the years and market according to geographical areas The Company's main businesses are in Hanoi and Northern provinces In addition, the Company's distribution channel system is not strong enough, creating no selling advantage compared to other beer companies Currently, the Company only organizes sales for agents (including draft beer) This makes the Company unable to fully control the activities of agents affecting customers' purchases, reducing the Company's reputation leading to market expansion and increasing limited sales capacity The company has not really created a strong link between the Company and among members of distribution channels The company has yet to deliver practical 37 benefits binding its members, leading to a number of channel members being transferred to other beer companies The replacement of these members is often passive, making it easy for rivals to penetrate the channel and destroy it The visit, encouragement and understanding of difficult channel members have not been paid much attention by the Company Another drawback is that the propaganda and advertising activities for the product and the Company have not been implemented much, not achieving the desired high efficiency The main reason is the capital, the advertising frequency of the Company is not high, can be called low compared to competitors The advertising content of beer is for information purposes only but not impressive, not convincing Activities to stimulate consumption such as rewarding for customers, taking lotteries, games have not been used up or have but have not attracted the masses 38 CHAPTER 3: PROPOSAL FOR POWERFUL MARKETING ACTIVITIES OF HABECO 3.1 HABECO's development orientation in the future Analysts say that Vietnam's beer market will continue to grow thanks to its young population and rising incomes Large and expanding markets, beer and alcoholic beverages are also considered slow saturated markets compared to many other businesses This has attracted a large number of domestic and foreign giants who want to take part in this potential market Determining that this will be a simple battle, Habeco has prepared a brand repositioning strategy and a business strategy for both medium and long term, ready to compete with competitors in the near future According to many brand experts, consumers now need a good quality product, good taste, nice design, but that is not enough To go further, the product needs a ‘soul’, an intangible value big enough to entice users As incomes rise, consumers are willing to spend more money to buy intangible values Especially the young people now have a lot of choices, very open Food and drinks must not only be saturated, they must also provide value, and must match the user's ‘taste’ In the process of researching and assessing the market, HABECO recognizes the need to pay special attention to new trends, thereby making recommendations to improve the current brand image HABECO's competitors are now foreign or foreign enterprises that dominate, they have a long-term vision of the market, an international strategy, good management skills The consulting units for them are also the leading companies in the world The competitors use brand new advertising channels and customer marketing to compete, so HABECO decided to cooperate with capable and experienced partners, understand international trends to support support yourself in the process of building a Vietnamese brand on a par with other countries This is a long-term brand repositioning strategy that takes time to implement 39 In addition, the construction and development of the distribution system is an important goal that Habeco determines to focus on investing all resources The consolidation of sales will make the cooperation between trading companies and agents will change towards streamlining and better quality With the motto "Prestige with customers is the foundation of prosperity", HABECO will build the most comprehensive sales and support policies for agents to benefit both parties The human element is considered by HABECO to be the core to create momentum for development, accordingly, HABECO has promoted the training of market employees with a high sense of responsibility, enthusiasm for the work to be in charge of the markets key schools, maintaining relationships with agents, restaurants Hanoi beer has always been a reputable brand trusted and selected by consumers, however, to continue to nurture the movement of Vietnamese people to prioritize using Vietnamese goods Habeco always determines the responsibility of the business to continue producing quality products, forcing efforts to constantly develop, improve competitiveness, provide a thoughtful after-sales service, to meet the needs increasingly high by consumers Currently, enterprises are keeping the initiative and creativity spirit to seize opportunities from the 4.0 industrial revolution Accordingly, Habeco has joined hands with FPT to deploy an overall enterprise management project (ERP) to gradually integrate businesses in the context of the digital revolution, contributing to enhance the strength and position in the market In addition, Habeco will expand the market to the whole Central and the South and boost exports, not only shading the northern and northern provinces of Vietnam as before In the context of increasingly renovating and developing country, deeper international integration, many international trade agreements have created many opportunities but also brought great challenges for Vietnamese enterprises Successful international integration is to contribute positively to creating sustainable and rich social values 40 Development orientation in the following years, Habeco determines the central strategy of the business is to continue researching and developing new product lines with higher quality, in accordance with consumer tastes At the same time, promoting the strategy of sustainable brand development, improving the competitiveness of the brand in domestic and regional markets; together with the commitment to the community, to fulfill the social responsibility of a national brand enterprise, to contribute positively to the overall development of the country 3.2 Proposed Solutions 3.2.1 Develop and effectively implement product policies Determining the appropriate category policy and product structure is very important in competition It shows the direct or evasive opinion, it establishes for the Company strategic products, ensuring the existence and development of HABECO Constantly improving the products both in quality and design and after-sales services to meet the requirements of the market is one of the first factors, determining the success of the Company First of all, the Company needs to maintain the category and structure of the products being produced (traditional products), especially Ha Noi bottled beer because this is the key product of the company, the product with the highest sales of the company Maintaining well the traditional products The company has been able to stabilize its market share to avoid being encroached by other companies and at the same time affirmed its image in the market Along with that, the company also needs to have policies to expand the product category and structure in order to implement product diversification with high efficiency, especially a policy of launching new products with high quality and beautiful models entering the market on special occasions (such as holidays, Chinese New Year, etc.), because according to the concept of new products, innovative products and new products all create a life cycle new to the product, and it meets the diverse needs of the market 41 3.2.2 Making reasonable price policies The product pricing policy is an estimate of whether future prices will be accepted by the market The pricing policy is only valuable and feasible when it comes from market strategy, product policy, and expected future price movements across each market segment HABECO has determined that the affordable segment of the market is high, so the valuation of the company must be in line with the market segment that the company has chosen For such a market the company needs a soft price policy Therefore, the selling price of the company's products must be lower than the highclass products such as Tiger, Heineken, Carlsberg, Therefore, the company's price bracket must be determined by the upper limit of competitors and The lower limit is the production cost However, the company's selling price is not always fixed, but must change through each period of fluctuations of the market and competitors to adapt The pricing policy shown must be extremely flexible in each condition, each environment, or may be each market segment that the company sets at a reasonable price In short, price is a favored weapon because it is effective to develop and expand the market, making the most of different types of customers Unless the Company has a low cost, in general, the use of price tools must be considered as a dangerous but equally dangerous weapon, meaning that the Company may face business risks due to the policy Unreasonable price 3.2.3 Restructuring distribution channel system 3.2.3.1Design and rearrange the distribution system Theoretically, in order to speed up consumption, there are two product consumption strategies: * Push Strategy: Include all activities that aim to bring products into the merchant's sales cycle, accelerate sales by using salespeople and stimulate the sales area to promote goods according to goods circulation channels In other words, a push strategy is to promote product sales through intermediaries or salespeople 42 * Pulling strategy: A strategy to attract consumers to the goods Implementing this strategy, manufacturers mainly rely on policies to promote communication (especially advertising) in order to stimulate and shape demand from consumers In a market economy, the cost of advertising on mass media to reach customers will cost a lot of money So Habeco should think about the effective exploitation of the push strategy On the basis of promoting the superiority of wholesalers, agents, shops, limiting the weaknesses of each type of member channel, combined with the distribution requirements for HABECO I would like to offer the distribution channel model as follows: Components of the distribution channel include: - Agency company: An intermediary established under a contract between HABECO and organizations and individuals capable of distributing the Company's products (financial capacity, location of sale, experience ) Agents must sell at the price set by the Company and must not sell products of competitors Commission is earned under agreement between Habeco and its agent company - Wholesalers: Including all organizations and individuals wishing to act as intermediaries to distribute products to the Company provided that they must consume a quantity of goods at the rate prescribed by the Company (for distribution different from retailer) and a number of other things about escrow and payment - The retailer has a direct relationship with the wholesalers They may at their discretion purchase Company's products at dealers or wholesalers to sell to the final person 43 - Direct relationship between the Company and the end-consumer through the system of sales and product introduction stores This store system also plays a role in regulating the price of the Company's products to the final consumers and is also a place for the Company to display and introduce its products 3.2.3.2 Expand stores to sell and introduce products The company should set up in each province a store selling and introducing products In addition to collecting and selling information, these stores also have the function of offering and introducing products A place for consumers to try the product to compare the quality of the Company's beer products on the market and the Company based on which to maintain a selling price of its products to suit customers, avoid gain the company's unreasonable price hike These stores can operate better than wholesalers because it has the ability to promote sales and ensure continuous supply to customers However, when setting up stores and selling products in each province, the Company should avoid conflicts with other intermediaries, especially in determining the selling price - the selling price should be sold according to the consumer price 3.2.4 Enhancing advertising and sales promotion The Company's expanded communication activities are responsible for giving rise to the idea of green among the public as a freshness, calmness, vibrant full of vitality, must identify it with the basis of success public with the romantic nature of life At the same time, the Company's policy of promoting communication must highlight the scale of the Company, decide the reputation of the product, meet the luxury, elegance and popularity in the consumption habits of the people them * Advertising: Currently, HABECO has not invested in advertising appropriately, so the advertising activities are still sporadic, especially advertising on TV Still know advertising on TV is very expensive, but its effectiveness, no one dares to deny it, the Company also needs to use this media In order to reduce the cost 44 of advertising on television, HABECO should conduct advertising on local television stations and Hanoi television stations instead of advertising on central television stations because of the cost of advertising on these channels much lower but the effect is not much inferior either In order for the advertising to be effective, the Company should focus on advertising programs alternating between key programs such as news, sports film In addition, the Company should also promote advertising through other media such as radios, newspapers, especially traffic means Advertising, marketing to introduce products to consumers need to be carried out in a variety of diverse forms, of which Digital - digital channel is the foundation HABECO needs to set up Fanpage to interact with customers, focusing on increasing the number of followers on these pages * Promotion: The company needs to conduct more promotions and promotions should be publicized, especially promotions for consumers who not regularly interact with the Company, such as so bring high efficiency On the other hand, for promotions for consumers, the company needs to last about month for consumers to have the opportunity to buy products and enjoy promotions * Communication: HABECO has established wide relationships with the authorities and increased contact with people throughout the Northern market through many sponsorship activities for cultural and sports events Thanks to these sponsorship activities, the Company has created a great reputation in the North market However, the Company's financing activities have not been as effective as expected One possible measure is to increase the effectiveness of sponsorship activities that the Company should combine selling products at prices lower than market prices but still ensuring profit to introduce products in cultural activities, sports that the Company has sponsored 3.2.5 Other solutions The issue of storage of goods is also an issue that needs attention Here are my suggestions for adjusting the warehouse system 45 ` Whenever possible, offer a more reliable and efficient distribution system than our competitors High shipping and delivery costs are a matter of priority In the near future, Hanoi Beer Company will transfer its stock of goods out of the Company with the reason: - Separate production and business activities to ensure confidentiality of production information - Due to the request of the State management agency to prohibit the circulation of trucks in the inner city during rush hour in the city In order to minimize shipping and delivery costs, the Company needs to choose a reasonable warehouse location The company can locate warehouses near important highways to exploit river and rail transportation vehicles Currently transport by rail has the cheapest price, so the company should place warehouses near the train depot and at the same time place a company agent for the purpose of selling and introducing products 46 CHAPTER 4: CONCLUSION In the current marketing economy, if businesses want to survive and develop, the application of Marketing policy is very important In this research report, I only dare to give some analysis on the current situation of marketing activities, thereby proposing some solutions to promote marketing activities of enterprises This will show a part of how I perceive myself with research issues I would like to express my sincere thanks to Ms Mai Thu Hien - Marketing Department teacher for helping me to complete this research report, but due to limited knowledge and awareness and limited time for research, wide so many shortcomings I look forward to your comments Once again I sincerely thank!! 47 REFERENCE Philip Kotler Marketing Management Ngo Xuan Binh (2004) Marketing theory syllabus Habeco's 2017 annual report Habeco's 2018 annual report Habeco's 2019 annual report https://www.habeco.com.vn/ Profile Habeco capacity 48 49