ASSIGNMENT 1 FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 2 Marketing Processes and Planning Submission date January 25, 2023 Date Received 1st Submission[.]
ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 2: Marketing Processes and Planning Submission date January 25, 2023 Date Received 1st Submission Date Re-submission Date Received January 25, 2023 2nd Submission Student Name Trần Thị Thanh Nhi Student ID BS00356 Class BA061 Assessor name Ms TRAN THI QUYNH HOA Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism I understand that making a false declaration is a form of malpractice Student’s signature Nhi Grading grid P1 P2 M1 M2 D1 ❒Summative Feedback: ❒Resubmission Feedback: Grade: Assessor’s Signature: Internal Verifier’s Comments: Date: Signature&Date: Table of Contents I Organization overview .7 Basic information about the company Heineken's company's achievements Company products PART A - OVERVIEW OF HEINEKEN'S MARKETING ACTIVITIES I Marketing definition II HEINEKEN's marketing process Recognize the needs and desires of the market and consumers Design a marketing strategy geared towards customer value 11 Build an integrated marketing program that delivers superior value .12 Attract customers, build profitable relationships and make customers happy 13 Capture value from customers to generate profits and customer equity 13 III Roles and responsibilities of the marketing department at Heineken 13 Business objectives 13 Marketing objectives 13 I Increase market share 14 Part B - THE RELATIONSHIP OF THE MARKETING DEPARTMENT AND OTHER PARTS OF THE COMPANY 17 Marketing and Human Resources (HR) 17 Marketing and sales 17 Marketing and customer service 17 Marketing and Research and Development (R&D) 18 Marketing and finance 18 CONCLUSION 19 Introduction I Organization overview Basic information about the company Heineken Brewery Vietnam Co., Ltd (Heineken Vietnam Brewery) was established on March 1991, between Saigon Trading Corporation (SATRA) and Asia Pacific Brewery Company Limited ("APB") – now Heineken Asia Pacific Co., Ltd (HEINEKEN Asia Pacific) Established in 1991, HEINEKEN Vietnam currently operates breweries in Hanoi, Da Nang, Quang Nam, Ho Chi Minh City, Vung Tau, Tien Giang and commercial offices throughout Vietnam HEINEKEN Vietnam contributes significantly to the Vietnamese economy, accounting for about 0.9% of the country's GDP Heineken's company's achievements In 1991, along with a joint venture agreement with Saigon Food Technology Company (formerly a member of Saigon Trading Corporation SATRA), Heineken started operations in Vietnam In 1994 Meeting international quality standards, Hoc Mon Brewery produced Heineken beer for the first time In 2019 After acquiring Vung Tau Brewery, HEINEKEN Vietnam started building the largest and most environmentally friendly brewery in Vietnam (2016-2022) Vietnamese Beer 2020 was born, honoring the diversity and good values of Vietnamese people In 2021 HEINEKEN Vietnam celebrates its 30th anniversary, contributing to the country's prosperous development over the past three decades Company products STT Product Range Heineken Beer Heineken 1.Heineken original 2.Heineken Silver 3.Heineken Silver Tiger Original Tiger Tiger crystals Biere Larue Original Larue Larue Special Bivina beer Bivina Beer-Proud Pearl Island Beer Bivina Export-Perfect Beer Amstel Amstel Affligem Affligem Sol Sol Strongbow cider Golden Apple strongbow ABV 4.5% Strongbow honey 4.5% ABV Strongbow elderflower ABV 4.5% Strongbow Red Berries 4.5% ABV Strongbow Dark Fruit 4.5% ABV As a company that is constantly innovating, we combine international experience with know-how and deep understanding of the Vietnamese market to bring Vietnamese consumers a diverse and relevant product portfolio with different needs, preferences and enjoyment times Synopsis An overview of the activities of the marketing department at Heineken It helps the reader Understand more about the roles and responsibilities of marketing in a business context and clarify the purpose of building strong relationships between marketing departments and other departments in the company PART A - OVERVIEW OF HEINEKEN'S MARKETING ACTIVITIES I Marketing definition Marketing is the process of building and providing practical value to customers through the products / services of that business, establishing close relationships with customers to gain benefits for the business " (Kotler &Armstrong 2018, p.5) For example, in order to spread the spirit of goodwill to all regions and people, Bia Viet also organizes the program "Thousand Wishes" with the goal of connecting Vietnamese people across the country, sending gifts to the people together Wishes for a happy, completely new year is one of the successful campaigns of Bia Viet when the application of all communication tools to people through activities throughout the campaign has brought positive meaning to the community II HEINEKEN's marketing process Marketing is the activity, establishment and process of creating, communicating, providing and exchanging valuable services to customers, partners and society at large In the marketing step, the company needs to attract and create value for customers from that it can build strong relationships with customers As a final step, the company will take value From customers in the form of long-term profits, revenue and customer equity (Luatduonggia, 2022) Five steps of the marketing process: Recognize the needs and desires of the market and consumers 1.1 Demand Market demand is understood as the needs and desires of customers for a certain service or product in the market (Biztly ,2022) For example, Viet Beer has decided to choose the segment of customers wishing to eat, meet groups with friends, successful young entrepreneurs after studying and working Thereby, helping target customers easily recognize the product as well as the brand 1.2 Want to Wanting is different from need, wanting here is a way to concretize the natural human need for a certain product or service This degree is strongly influenced by cultural, environmental and personal factors (Bizfly ,2022) On 13/12/2020, Heineken's Vietnam Beer has brought a very meaningful message through the video "Vietnam Beer wishes all wishes" to all provinces and cities of Vietnam, leaving a strong impression on viewers by the investment In particular, the message conveyed through which Viet Beer acts at the behavioral level is to increase purchasing power, for products for target customers from 18 years old and above with family income over million months And concentrated mainly in large cities 1.3 Demand These are the wishes of the customer for a certain product or service in the market and can afford to own it This demand is often driven by economics (Bizfly ,2022) The main activity of Beer Viet is aimed at users After only 32 days, Viet Beer has received more than 17,600 wishes from more than 5000 lucky participants to receive the award Not only that Bia Viet also strives to realize the "Thousand Wishes" by giving Tet gifts to disadvantaged households in 24 provinces and cities across Vietnam 1.4 The Importance of Customer Satisfaction Vietnam Beer wants to show gratitude to consumers and contribute to supporting disadvantaged households across Vietnam As well as making a mark in the consumer's perception of Vietnamese beer not only as a beer brand but also as a pride for Vietnamese people 2 Design a marketing strategy geared towards customer value 2.1 Create value for target customers 2.1.1 Choosing the right customer to serve According to marketing managers, they can't best serve all customers of all ages So companies choose customers they can serve well and make a profit for them company By dividing the market into segments and choosing marketing objectives the company will follow (Kotler & Armstrong 2018: p.10) Assessing the attractiveness of market segments in the competitive context of the beer business in Vietnam today, Viet Beer has decided to choose the segment of customers who want to eat, drink, meet groups with friends, successful young entrepreneurs after hours of study and work Thereby, helping target customers easily recognize the product as well as the brand For example, Vietnamese beer on the market is being sold for about 13,000 VND / can, 135,000 for a box of 12 cans and about 265,000 VND for a can of 24 cans With the development of the market, income, life, it is clear that drinking beer does not only appear at parties 2.2.2 Product concept Product orientation assumes that consumers will appreciate products that offer the best quality, efficiency, and innovative features With this orientation, marketing strategies focus on continuous product improvement (cleverAds, 2022) For example, as a company that is constantly innovating, we combine international experience with know-how and deep understanding of the Vietnamese market to bring Vietnamese consumers a diverse product portfolio, tailored to the needs of the Vietnamese market 2.2.3 Sales concept The concept of sales is a concept used to refer to activities aimed at selling products and services of businesses and companies by focusing solely on persuading customers The important point of this activity is to whatever it takes to sell your products (Vietmarketing) For example, Viet Beer quickly develops and communicates its products through wholesale, dealer and retail chains The company has partnered with thousands of suppliers, delivering goods to dealers Therefore, Viet Beer can easily penetrate into rural areas Products are sold in markets, grocery stores, dealers, malls, convenience stores and supermarkets 2.2.4 Social concept Put human and social needs ahead of business interests and strive to create a sustainable economic environment (Kotler & Armstrong 2018: p.13) For example, Bia Viet strives to realize "Thousands of good wishes" by giving Tet gifts to disadvantaged households in 24 provinces across Vietnam, including 20 provinces has the highest number of wishes on the program's website: Ho Chi Minh City, Hanoi, Nghe An, An Giang, Binh Thuan , Quang Ngai This is a program that is implemented throughout to connect brands Vietnamese beer with consumers across the country, true to the spirit of the brand is to honor the diverse cultural identity and solidarity of Vietnamese people Through this program, Bia Viet wants to show gratitude to consumers and contribute to supporting disadvantaged households across Vietnam Build an integrated marketing program that delivers superior value The marketing department will develop the best marketing tactics to add value to the target customer once the target market has been identified It includes a collection of marketing tools that businesses use to execute their marketing strategy by putting the marketing mix model into practice The tools of the marketing mix are divided into four main categories: products, prices, locations, and promotions (Kotler & Armstrong 2018: p.14) To have success and a strong foothold in the market, businesses must meet the needs and satisfy their target customers, while planning strategies in accordance with resources and potential the company's performance against competitors and after-sales issues Heineken's marketing strategy is no exception "A good customer is an asset that, when managed and used well, provides the company with a long-term source of income The market leader will go to the company that is predicted to have new products, new services, new styles and lifestyle improvements (Philip Kotler quotes) 4 Attract customers, build profitable relationships and make customers happy Customer relationship management is the work of reaching out and communicating with customers, managing customer information, thereby serving customers better and establishing sustainable relationships with them In other words, based on the data and information obtained from customers, the store will come up with a reasonable and effective customer care strategy Capture value from customers to generate profits and customer equity In the simplest terms, customer value is measured by customer satisfaction throughout the buying journey Satisfaction is the total value that customers perceive from products and services such as price Quality, solving their difficult problems Heineken's target customers are men, aged 18-35, enjoying life with lots of fun with friends and relatives, comfortably expressing their emotions of regularly gathering friends and partying at home or bars, pubs, clubs to have fun after a hard day's work III Roles and responsibilities of the marketing department at Heineken Business objectives Through its production and business activities, Heineken Vietnam has been motivated by positive changes through prosperity initiatives such as supporting suppliers and business partners, digital transformation, community branding, diversifying brand portfolios and controlling compliance with legal regulations Marketing objectives Heineken's target audience is men Geographical location: Heineken's target audience lives in urban areas, in major cities (Ho Chi Minh City) HCM and Hanoi) Age: Heineken's target audience focuses on Youth (18-24 years old) and Mature (25-35 years old) Income: Heineken's target audience focuses on Group A (15-150 million VND or more) I Increase market share In Vietnam, Heineken's Vietnamese beer distribution system has developed strongly and widely with breweries and sales offices across the country To ensure widespread coverage, Heineken also brings its products to both distribution channels: modern and traditional The traditional distribution channel is that after production, goods will be delivered to consumers in the following order: manufacturers, intermediaries, distributors and consumers In this channel, Heineken distributes its products to grocery stores, restaurants and bars A modern distribution channel is where manufacturers and distribution intermediaries combine to form a unified whole For this distribution channel, Heineken products are sold at supermarkets, or convenience stores such as Vinmart, Mega Market, Big C, Circle K, At these times In addition, the company will coordinate a team of professional sales staff, ready to support at the point of sale, helping consumers quickly choose Heineken products b Increase promotions Beer Vietnam is the latest beer brand to join HEINEKEN Vietnam's product portfolio That's why the sales process as well as customer service must be professional and efficient to be able to compete with other competitors Through the steps of sales presentation, the process is specific and suitable for each type of purchase, diverse for each different needs of customers To optimize sales, Viet Beer needs more attractive promotions to attract more new customers Due to the growing beer market and evolving trends, it is essential to promote promotions to consumers and distributors such as gifts, samples, direct or additional discounts Merchandise rewards to stimulate customer purchases, while increasing the effectiveness of the campaign to the maximum and returning the experience, increasing the benefits to users 2.2 Heineken's marketing mix How Heineken's marketing department conducts marketing activities through the marketing mix Heineken's marketing mix a Product The product portfolio and brands currently owned by Heineken include: Heineken: The product that makes up the Heineken brand Amstel: a globally renowned domestic beer brand Sol: Mexican beer brand with unique slogan "Taste the Sun" Strongbow Ciders: A product with less alcohol than fruit-flavored beer Larue: A great quality beer from 1909 Vietnamese beer: Dedicated to Vietnamese customers, honoring Vietnamese values And many other products are being expanded Besides product quality, design and packaging are also factors invested by Heineken Although always loyal to the traditional blue color, most recently Heineken has improved some product packaging models with a new look to serve customers The company produces types of models in the Vietnamese market including: cans, short neck bottles and long neck bottles b Price A 330ml can of Heineken's Vietnamese beer costs 13,000 (VND) This is a high price compared to the general level Here, Heineken's target audience is good middle-income people, office workers, businessmen, civil servants For this customer, in the era of Vietnam's economic development, drinking beer no longer only appears at parties but is gradually becoming a regular demand c Distribution There are many foreign brewers in the Vietnamese beer market, so Heineken must maintain its distribution system, especially its dealers Heineken is willing to pay commissions to dealers to keep its positions and Prevent entry into the dominant market segment HEINEKEN beer products at distributors d Promotions Implementing promotions will stimulate distribution intermediaries to increase the amount of goods ordered in a certain time, helping to increase revenue for manufacturers Stimulate distribution intermediaries to be more interested in the company's goods For example, sales are more active, prioritizing product display in a more beautiful location Implementing promotions at a high frequency will often only attract fickle groups of customers and run after discounts, only buying when there is a promotion II Part B - THE RELATIONSHIP OF THE MARKETING DEPARTMENT AND OTHER PARTS OF THE COMPANY Marketing and Human Resources (HR) The relationship between HR and Marketing In general, the relationship between these departments is a very strong relationship and supports each other in the working process Thanks to HR, Marketing has more customer information as well as motivation to work And thanks to marketing, HR can communicate internally and connect with the rest of the employees in the company more easily Moreover, the HR department also supports the Marketing department to connect candidates to the job from interviewing, receiving jobs to completing work procedures Thanks to the human resources department, it is easier to supplement Marketing's human resources Marketing and sales Simply put, marketing is about making the market impact mainly on consumers to create traction while sales selling "what's in stock" that impacts sellers or customers to create a push that both have the same purpose of solving the output of the business and are very important in business For example, the marketing department of Bia Viet implements the program Ten thousand wishes to make the program successful and effective, the department responsible for finding markets and customers to advise and sell products from that way will generate sales for the company Marketing and customer service Marketers can get important information from customer service departments about consumer satisfaction or dissatisfaction with a brand's services The marketing department will then be able to understand the customer better and quickly address their requirements and desires Customer service can gain the trust of consumers and establish long-term relationships with them thanks to effective marketing campaigns For example, on the information of the customer care department about the needs of customers using Heineken's Vietnamese Beer products, the marketing department can run promotions such as Turning on the Beer Cap, when buying Vietnamese beer products, there will be a chance to win many attractive prizes such as: SH 125i car, cash million VND and thousands of other extra prizes Marketing and Research and Development (R&D) This department has the function of researching and developing new products, improving existing products to meet or stay ahead of the consumer needs of the market Assist in helping the company's marketing increase customer satisfaction and contribute to more success in marketing campaigns that will generate revenue for the business, which can then be used to fund R&D Examples based on customer needs for product diversity, Heineken's R&D activities have researched and launched more diverse beer lines such as Vietnamese beer, Heineken siver, Tiger Amstel, Larue, BGI, BIVINA, Desperados, Affligem and Strongbow fermented apple juice The marketing department can then offer good marketing campaigns that help the company profit from the product and reinvest that profit into R&D Marketing and finance The corporate finance department oversees the financial condition of a company Finance is critical to every business decision, from planning, budgeting, and cash flow management to your capital structure and how you control risks and costs The marketing department is responsible for managing and developing the sales of a business The finance department must work closely with the marketing department To track trends in business operations as well as manage the effectiveness of promotions initiated by the marketing company For example, a Bia Viet marketing campaign can be successful in terms of total revenue But the finance department may determine that the cost of the campaign is too high. In short, the finance and marketing departments in the business interact with each other so that the cost is minimal , and the profit is optimal The success and expansion of the company cannot be realized by just one department; rather, they are the result of the combined efforts and cooperation of all departments in the company Building sustainable relationships between the company's departments and its successful management depends on this CONCLUSION Heineken's marketing department plays an important and essential role To create a suitable advertising campaign and raise awareness of the company's brand in the market, it helps businesses understand the needs, wants and demands of customers In addition, marketing allows businesses to identify new leads as well as maintain solid relationships with existing customers This bringing value and happiness to customers, who are then paid for their value A powerful corporation will have a strong marketing department REFERENCES (no date) Google search Google Available at: https://www.google.com/search? client=safari&rls=en&q=Th%E1%BB%8B%2Bph%E1%BA%A7n%2Bbia%2BHeineken%2Bt %E1%BA%A1i%2BVi%E1%BB%87t %2BNam&sa=X&ved=2ahUKEwiOyY2QwIf9AhVmZWwGHTgqDcwQ1QJ6BAgsEAE&biw=1199 &bih=820&dpr=2&safari_group=9 (Accessed: February 9, 2023) a280004 (2022) Heineken's marketing strategy: globally renowned beer brand, MISA AMIS Available at: https://amis.misa.vn/33989/phan-tich-chien-luoc-marketing-cua-heineken-thuong-hieubia-noi-tieng-toan-cau/ (Accessed: February 14, 2023) Duong, L.V and law, T.V (2022) What is MARKETING? 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