Individual assignment analyzing marketing environment of heineken brand in vietnam

Analyzing Marketing environment of Heineken brand in Vietnam Marketing Principles (MKT101) Marketing Principles INDIVIDUAL ASSIGNMENT Analyzing Marketing environment of Heineken brand in Vietnam Full name: Dương Thị Hà Linh Class: MC1602 Student ID: HA153030 Lecturer: Bùi Thị Hạnh Thảo Course: MKT101 – Marketing principles Date: Spring 2021 Table of contents I/ Introduction Company’s Background Target Customer Product II/ Microenvironment Company Suppliers Marketing Intermediaries Competitors Public Customer III/ Macroenvironment The demographic The economic Natural The technological 10 Political and Social 11 Culture 11 IV/ Marketing environment 11 I/ Introduction Environmental research is a very important part of Marketing, it determines the business strategy of each business for each of its products and services Heineken is a well-known enterprise in the world for beer products, and has been present in the Vietnamese market for more than 10 years And this is also a premium beer brand that has been holding a quite important position in the minds of Vietnamese customers, it is interested not only by the quality, eye-catching of the brand but also in its beautiful image, but also made efforts during the past time Company’s Background The Heineken brand thrives in more than 60 countries with more than 110 manufacturing plants worldwide (2010) Today, Heineken has become the No beer producer in Europe and No in the world with operations in more than 70 markets globally and about 250 international brands 1994, the first Heineken beer was produced in Vietnam by Vietnam Brewery Limited (VBL) and founded in 1991, a joint venture between Satra 40% and Asia Pacific Breweries Limited 60% (Heineken Asia Pacific Pte Ltd.) 2016, Renamed to Heineken Vietnam Brewery Company Limited Target Customer The target customer focus is the middle and high-end market share, focusing on business customers, office workers, and adequate income people Therefore, businesses always invest in and promote high product pricing strategies to assert the position of consumers Some other parts also mainly use Heineken beer, that is, bars and discos However, the majority of these customers are not regular customers and are not very loyal to the brand Product Heineken Vietnam had developed drink brands, including seven beer brands Heineken, Tiger, Larue, BGI, Bivina, Desperados, Affligem, and Strongbow Cider fermented apple juice Vietnam Brewery Limited (VBL) was very proud to be the first beer producer in the world to achieve ISO 9001: 2000 certification and also the first beer producer in Vietnam to be officially recognized by the Quality Management system amount of HACCP( 2001) The company has achieved four consecutive years receiving Golden Dragon Award (award honoring FDI enterprises founded in 2001) for the best foreign-invested beer maker in Vietnam (2001-2004), Sustainable business for two consecutive years (2017, 2018), Enterprise with the best working environment (2018) As the world's most popular premium beer brand, Heineken has always brought millions of customers quality products with perfect taste and classy experiences throughout the decades II/ Microenvironment The company With the strength of being the leading foreign beer brand globally, modern production lines, strong financial potential, Heineken is currently the second-largest company in the country and the highest revenue in the country Like other businesses, Heineken also suffers from difficulties because of the state's alcohol restriction policy However, there are some product limitations of the company, including high product prices, images, advertising attached to foreigners have not created familiarity with Vietnamese consumers; Opportunities - The strong growth of the beer market has resulted in the increasing trend of consumption of foreign and premium beer and product expansion into a mid-range segment Some strong points include: World famous beer brand; holds a large market share in the high-end segment; quality products, eye-catching designs; Modern production lines; Effective marketing strategy challenges Suppliers About Heineken Vietnam, the company fully manages the supply cycle and production through its parent company and factory in Vietnam Heineken's brewery has 12.7 hectares located in Thoi An Ward, District 12, City Ho Chi Minh City is one of the most modern breweries in Southeast Asia today Over the years, Heineken Vietnam Brewery has been recognized as one of the units that consistently completed outstanding tax obligations and highly efficient production and business activities Heineken Vietnam had excellently risen to the No sustainable manufacturing company in Vietnam in 2017 Heineken Vietnam has proven that pursuing sustainable development will help businesses and communities grow together The key lies in creating a closed value chain, including initiatives for a circular economy and ensuring transparency and integrity in business reporting and sustainability reporting At the previous Vietnam Business Sustainable Development Forum (VCSF 2017), Heineken Vietnam was also recognized by representatives of the Government and the business community as an excellent typical enterprise applying the sustainable development model Sustainable activities in production and business activities positively impact people, the planet, and prosperity, following the National Sustainable Development program and the United Nations' sustainable development goals ( UN SDG) Marketing Intermediaries In Vietnam, Heineken's distribution channel is nationwide, from retailers to leading distributors It is a popular drink and indispensable for men, whether in daily meals or a large and small party at home or restaurant That is why in Heineken's marketing strategy in Vietnam, this product’s distribution needs to cover the market and be easy for consumers to find There are many types of beer in the Vietnamese market Many foreign manufacturers also intend to penetrate the beer market’s high and mid-end segment, so Heineken must strengthen and maintain the distribution channel system Agents, mostly the dealer level Heineken and many significant brewers in the market are willing to pay commissions to agents to keep Heineken's distribution channel while preventing other brewers’ entry into their dominant regions Competitors Vietnam's beer market operates quite competitively, with many famous brands such as Tiger, Heineken, Hanoi, Halida, Saigon, 333, etc., from low-end segments such as draft beer to beer segment The two main consuming markets are the Southern (Ho Chi Minh) and the North 50-60% of the beer market share belongs to large Vietnamese corporations, Sabeco and Habeco, and Heineken ranks third Compared to other competitors, the Vietnamese beer market revolves around Sabeco and Heineken, two companies that dominate different segments with an overwhelming market share Over the past ten years, Sabeco and Heineken's total market share in the Vietnamese beer market have never been below 63% in terms of beer volume In 2019, this figure was 73.1%, as reported by Euromonitor This means Habeco, Carlsberg, Sapporo, AB Inbev, San Miguel have to accept sharing less than 27% of the remaining market share Cơ cấu sản lượng bia Việt Nam theo công ty (2016) Public As for product promotion activities, Heineken's promotional activities are not as big in Vietnam as in the world, but he always makes a deep impression on Vietnamese customers every time Heineken appears In addition to advertising products with funny, unique, attractive, and sympathetic clips from consumers, Heineken has focused on sponsoring sports (mainly tennis) for a long tie and cinema - fields that serve everyone’s entertainment and relaxation Heineken's dedicated activity is #WeChooseGreen, constantly creating sustainable values for Vietnam in its production and business activities during the past 28 years, contributing to inspiring partners to practice together and sustainable development Hoạt động #WeChoose Green Heineken (2019) Nguồn: Heineken Vietnam Customer When drinking beer, people choose not only based on quality but also on the image of that beer in the market Drinking bottled beer, connoisseurs prefer Heineken for a simple "It can only be Heineken.” About quality, just to mention communication, Heineken is still the only beer available by making an impression And when it comes to Heineken, we know that: "Heineken is not just beer, Heineken is also passion, refreshment and memorable moments." For the promotion strategy, intending to quickly leave a beautiful and memorable impression in Vietnamese customers’ minds, Heineken has continuously strived to promote and build an image from the logo design feat Design a short slogan that implies performing unique advertising, making a brand through practical and meaningful activities to pay attention to environmental management and energy saving These campaigns are always referred to by other major brands as a "guideline" of the art of marketing III/ Macroenvironment The demographic Along with the accelerated development of the economy, the population is getting younger and younger, and the Vietnamese consume more beer than ever before With more than 91 million consumers, the population growth rate is greater than 1%/year, estimated to 100 million people by 2025, and the beer market is hugely favored in Vietnam Besides, the average age of Vietnamese is 27.8 years old with 70% of the population under 40 years old; 31 million people are in the age group of 20-40, this is the most consuming age for beer and soft drinks in Vietnam, also known as Generation Y and Millenials On March 22, Heineken held the Heineken Silver launch event, a new premium beer product created by top Heineken brewers Vietnam was selected as the first destination for Amstel beer in the Southeast Asian market According to HEINEKEN, this is an essential market with strong growth and a young population Currently, the company is focusing 100% on product launch and exploitation of the Amstel beer market in Vietnam before expanding to regional countries 2 The economic Heineken's price strategy has been carefully calculated and utterly consistent with the Vietnamese beer market’s current development and Vietnam’s economic development in recent years The potential Vietnamese market is shown that beer consumption no longer appears only at parties but has become a reasonably steady demand Vietnam's per capita GDP is forecasted to reach the target of more than $2,000 by 2020, boosting demand for beer products, mostly high-end and mid-end beer, ensuring positive growth of the Vietnamese beer market in the future The Natural The excellent performance of wastewater treatment and energy-saving consciousness is one of the core factors that make Heineken beer successful in Vietnam Not only focusing on investment in product manufacturing, VBL always puts environmental protection first VBL has invested over $3 million for the first international standard wastewater treatment system in Vietnam Besides, energy saving is also invested by VBL by continuously improving to increase the capacity of the equipment line and limit equipment that consumes electricity and oil The significant improvements in recent years have helped VBL increasingly assert its brand with a wide range of products with beautiful designs, stable quality, and hygiene and safety standards The technological Practice applied at HEINEKEN Vietnam shows that the recirculating economic model helps reduce emissions and creates value from waste These initiatives include: ● Go to zero waste that requires landfilling - nearly 99% of waste or by- products are reused or recycled: ● Almost 100% of HEINEKEN Vietnam's glass beer bottles are recovered for reuse before being recycled at the glass factory at the end of the product's life cycle Other materials such as cardboard, aluminum, plastic, and paper are all reused or recycled; ● Treating 100% of wastewater meeting grade A safety standards before being safely returned to the environment; ● out of breweries of HEINEKEN Vietnam use heat energy from renewable energy and biomass fuel, not emit carbon; ● Reducing 2,500 tons of CO2 emissions in logistics alone in 2018 Political and Social Proposals to limit alcohol use Recently, facing the rapid growth in alcohol consumption, there have been proposals to increase taxes and alcohol prices to reduce consumption If these proposals are approved, the implementation will significantly affect the brewing industry Increase particular consumption tax Proposal to ban selling beer and alcohol Strict control on manual brewing activities Limiting advertising of beer and alcohol products However, the Vietnamese beer market also does not strictly regulate or restrict foreign brewers’ opening to enter into joint ventures, such as Carlsberg, Asia Pacific Brewers Ltd (Heineken, Tiger), SABMiller, because this is a massive contributor to annual GDP Culture Beer accounts for 94% of the current total alcohol consumption in Vietnam This drink has become a part of Vietnamese culture Entering any restaurant or bar in Vietnam, you will find that everyone drinks beer Two factors help Vietnam's beer market grow strongly The first is the economy Vietnam's economic growth rate is at its most substantial level in the past seven years IV/ Marketing environment Sustainable development is always the top goal of HEINEKEN globally as well as HEINEKEN Vietnam In particular, in times of volatility, sustainable development is a guideline to help us overcome challenges and maintain our core values to achieve long-term success The development strategy of HEINEKEN globally in general and HEINEKEN Vietnam, in particular, goes hand in hand with and supports the United Nations Sustainable Development Goals (SDGs) Through innovative partnerships with stakeholders from private and government agencies, focusing on areas where the Company can make the most outstanding contributions to Vietnam Male, HEINEKEN has contributed to the realization of out of 17 global goals: ● Taking care of humans promoting responsible drinking; Health, and safety; Human resource development; Community support ● Preserve the Planet through the use of renewable energy, Minimize the amount of water used, Treat waste towards No waste to landfill in production activities ● Towards Shared Prosperity, Supporting SDG Goal - Sustainable Economic Growth and Employment Reference: [1] Dawson, J.A (2015) The marketing environment London: Routledge [2] Hee Young Shin (2012) Bia heineken việc áp dụng thành công chiến lược marketing thị trường Việt Nam [online] Available at: https://www.slideshare.net/mermaid19/bia-heineken-v-vic-p-dng-thnh-cng-cc-chin-lcmarketing-ti-th-trng-vit-nam [Accessed 18 Feb 2021] [3] Ahead grow together(2018) Bia Heineken: Giá trị thương hiệu toàn cầu [online] Available at: https://iso-ahead.vn/-bia-heineken-gia-tri-cua-mot-thuong-hieutoan-cau (Accessed 18 Feb.2021) [4] Marketing Admicro (2017) Phân tích chiến lược Marketing Mix bia Heineken Việt Nam [online] Available at: https://marketingai.admicro.vn/chienluoc-marketing-mix-thanh-cong/ [Accessed 18 Feb 2021] [5] heineken-vietnam.com.vn.(2019) HEINEKEN Việt Nam kiến tạo giá trị bền vững Việt Nam tốt đẹp [online] Available at: https://heinekenvietnam.com.vn/tin-tuc-su-kien/thong-cao-bao-chi/heineken-viet-nam-kien-tao-gia-triben-vung-vi-mot-viet-nam-tot-dep-hon.html [Accessed 18 Feb 2021] [6] prezi.com (n.d.) Chiến lược định vị Heineken [online] Available at: https://prezi.com/pnne_5zwiitv/chien-luoc-inh-vi-heineken/ [Accessed 18 Feb 2021] [7] heineken-vietnam.com.vn (n.d.) Công ty bia hàng đầu giới HEINEKEN mắt sản phẩm cao cấp Dinh Độc Lập: Heineken Silver - Nhẹ êm mà đậm chất [online] Available at: https://heineken-vietnam.com.vn/tin-tuc-su-kien/thong-cao-baochi/cong-ty-bia-hang-dau-the-gioi-heineken-ra-mat-san-pham-cao-cap- moi-tai-dinh-doc-lap-heineken-silver-nhe-em-ma-dam-chat.html [Accessed 27 Feb 2021] [8] ONLINE, T.T (2018) HEINEKEN Việt Nam mắt dòng bia Amstel [online] TUOI TRE ONLINE Available at: https://tuoitre.vn/heineken-viet-nam-ra-mat-dongbia-amstel-20181021151436618.htm#:~:text=T%E1%BA%A1i%20Vi %E1%BB %87t%20Nam%2C%20HEINEKEN%20s%E1%BA%A3n [Accessed 27 Feb 2021] [9] Doanh Nhân Sài Gòn Online (n.d.) Heineken Việt Nam - Doanh nghiệp sản xuất bền vững số Việt Nam [online] Available at: https://doanhnhansaigon.vn/kinhdoanh/heineken-viet-nam-doanh-nghiep-san-xuat-ben-vung-so-1-viet-nam1083947.html [Accessed 27 Feb 2021] [10] Việt Đức (2020) Heineken - Sabeco: Cuộc chiến vương [online] ZingNews.vn Available at: https://zingnews.vn/heineken-sabeco-cuoc-chien-ngoivuong-post1148636.html [Accessed 17 Dec 2020] ... value chain, including initiatives for a circular economy and ensuring transparency and integrity in business reporting and sustainability reporting At the previous Vietnam Business Sustainable... sustainable manufacturing company in Vietnam in 2017 Heineken Vietnam has proven that pursuing sustainable development will help businesses and communities grow together The key lies in creating... Culture 11 IV/ Marketing environment 11 I/ Introduction Environmental research is a very important part of Marketing, it determines the business strategy of each business for each of its products