(Luận văn) enhancing banquet program performance a case of heineken vietnam brewery

t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad y th ju TRAN BA KHOI yi pl n ua al n va ENHANCING ll fu BANQUET PROGRAM PERFORMANCE m oi A CASE OF: HEINEKEN VIETNAM BREWERY at nh z z ht vb k jm om l.c gm MASTER OF BUSINESS n a Lu n va y te re Ho Chi Minh City – Year 2019 t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad y th TRAN BA KHOI ju yi pl n ua al n va ENHANCING fu ll BANQUET PROGRAM PERFORMANCE oi m at nh A CASE OF: HEINEKEN VIETNAM BREWERY z z ht vb k jm MASTER OF BUSINESS gm SUPERVISOR: NGUYEN THI MAI TRANG om l.c n a Lu n va y te re Ho Chi Minh City – Year 2019 EXECUTIVE SUMMARY t to According to the development plan until 2020, the Vietnamese beer industry will reach an ng output about 4.1 billion liters by 2025 to 4.6 billion liters and 5.5 billion liters by 2035 hi ep However, beer consumption already reached more than billion liters by the end of 2018 Vietnamese beer industry has been maintaining a growth rate of over 5% per year while w n many other markets have moved sideways or negative growth in recent years Vietnam is lo ad becoming an attractive beer market that makes both domestic and international beverage ju y th businesses stand to fight Winning in the beer industry mainly depends on marketing technique secrets more than yi pl finance and product recipe Businesses seize market share by unique marketing strategy al ua from advertising, communication to promotion in all channel such as on premise, off n premise, modern on premise, modern off premise and brand building right at the initial n va customer level fu ll Mention about the communication and promotion in beer market Many customers and m oi consumers always save an affection for many activations of Heineken Vietnam Brewery at nh such as Heineken formula 1, Tiger street football, Trade loyalty, Fridge, Banquet ect z From 2016, HVB discorvered that Banquet catering is a popular segment and had strongly z vb impact to beer market share but HVB have not much focused on this channel before That ht is the main reason Banquet promotion program was piloted from 2016 With the successful jm k of the first year ran promotion in small scope only two provinces, HVB continued to gm expand program with more than 30 provinces (in P3.2018) When expand the program so l.c quick in the short time like that, it led to there was many problems and issuses that effected om to performance of program and not adapt to the management’s expectation a Lu The research will explore the cause’s Banquet P3.2019 had not meet KPI The finding of n study revealed that lack of RTMK to manage, deploy, push, check and support ST which va n played the most important role on poor performance of Banquet P3.2018 which compaired y performance of Banquet in the future te re to other factors Moreover, some reasonable solutions would be recommended to improve ACKNOWLEDGEMENT With out the extremely enthusiastic encouragement, guidance and support of Associate Professor Nguyen Thi Mai Trang and orther teachers in ISB (International School of t to ng Business), the entire master-level project would not be completed with the highest qualified hi research I would like to say thank and appreciate to my advisors It has been a pleasure ep working with you on this project w I also would like to thank my family, colleagues, classmates who have supported me while n lo I have been studying in ISB and working on my research Your patience, understanding ad and respecting greatly appreciated ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re CONTENTS t to EXECUTIVE SUMMARY ng ACKNOWLEDGEMENT hi ep LIST OF TABLES LIST OF FIGURES w ABBREVIATION n lo INTRODUCTION ad 1.1 Overview y th ju 1.2 Heineken performance in 2018 yi 1.3 Competitors of Heineken Vietnam Brewery in 2019 pl al ua 1.4 Objectives and targets for Heineken Vietnam Brewery portfolio brands in 2019 n va n 1.5 Trade marketing plan in 2019 11 ll fu oi m 1.6 Commercial department structure 12 nh PROBLEM CONTEXT 14 at 2.1 Introduction about Banquet program in traditional off trade marketing 14 z z 2.2 History of Banquet program 18 vb ht 2.2.1 The Banquet program performance pilot phase in 2016 18 jm 2.2.2 The Banquet program performance in 2017 19 k gm 2.2.3 The Banquet program performance phase 1.2018 20 l.c 2.2.4 The Banquet program performance phase 2.2018 21 om 2.2.5 The Banquet program performance phase 3.2018 21 PROBLEM INDENTIFICATION 25 a Lu 3.1 Symptoms 25 n n va 3.2 Potential problems 28 3.2.3 Unattractive mechanism Banquet program 33 3.2.4 Unpredictable market factors 36 3.3 Problem validation 38 y 3.2.2 Unqualified agency service 31 te re 3.2.1 Distraction of sales team to Banquet program 28 3.3.1 Eliminating agency, mechanism, and market factors as the main problems 38 3.3.2 Illuminating distraction of sales team to Banquet program as the main problem 39 3.4 Potential cause’s distraction of sales team to Banquet program 43 t to ng 3.4.1 Lack of regional trade marketing to manage, deploy, push, check and support sales team 43 hi ep 3.4.2 Sales team overloads with many activations 45 3.4.3 Sales team only focuses on sales volume and excellent outlet execution 46 w n 3.4.4 Sales team misunderstands the role of related parties in Banquet program 48 lo ad 3.4.5 Causes validation 49 y th 3.4.6 Cause - effect tree 51 ju ALTERNATIVE SOLUTIONS AND JUSTIFICATION 53 yi 4.1 Recruite regional trade marketing for regions 54 pl ua al 4.2 Develop the application management for Banquet program 57 n ORGANIZATION ACTION 60 va n CONCLUSION 62 ll fu SUPPORTING INFORMATION 64 oi m APPENDIX 97 nh Appendix 1: Roles and responsibilities of related departments in Banquet program 97 at Appendix 2: Communication material Banquet program phase 3.2018 99 z Appendix 3: Regional trade marketing – Job description 100 z ht vb Appendix 4: Proposal the application management for Banquet program 102 k jm REFERENCES 122 om l.c gm n a Lu n va y te re LIST OF TABLES Table 1: The BP performance pilot phase in 2016 t to ng Table 2: The BP performance in 2017 hi Table 3: The BP performance phase 1.2018 ep Table 4: The BP performance phase 2.2018 w Table 5: The proposal budget for BP phase 3.2018 n lo Table 6: The BP performance phase 3.2018 ad Table 7: Satistics performance per region in BP phase 3.2018 y th ju Table 8: Estimating the expense for five RTMK per year yi Table 9: Estimating the cost of application for Banquet per project pl n va LIST OF FIGURES n ua al Table 10: Action plan ll fu Figure 1: Organization HVB at nh Figure 3: Trade marketing roles in HVB oi m Figure 2: Commercial department structure Figure 4: The interaction structure between TMK and ST z z Figure 5: Sales department structure ht vb Figure 6: Banquet promotion program process jm Figure 7: The interaction of related parties in Banquet program k gm Figure : Satistics performance per region in BP P3.2018 l.c Figure 9: Satistics percentage of outlet types and party by outlet types in BP P3.2018 om Figure 10: The initial cause - effect map n Figure 12: Workflows for related parties in Banquet program a Lu Figure 11: Updated cause - effect map va n Figure 13: The final cause - effect map y Figure 15: The recommended effectively structure with RTMK roles te re Figure 14: Cause - effect tree ABBREVIATION t to ng ASM: Area Sales Manager hi BP: Banquet Program ep HVB: Heineken Vietnam Brewery Limited Company w NoP: Number of Party n lo PO: Party Owner ad RTMK: Regional Trade Marketing y th ju ST: Sales Team yi SV: Sales Volume pl TMK: Trade Marketing n ua al ToffT: Traditional Off Premise Trade Channel n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re INTRODUCTION t to 1.1 Overview ng hi Vietnam economy ep Vietnam’s GDP has positively increasing trend from 2016 until now: GDP in 2016 w (+6.2%), 2017 (6.8%), 2018 (6.7%) and estimated in 2019 (7.08%) n lo In other way, the low inflation rate also has derease trend from 2016 (4.7%) and stable in ad 2017 (3.7%), 2018 (4%) and estimated in 2019 (4%) y th Beer industry ju yi In recently, Vietnamese beer industry which is evaluated as a highly potential market when pl income increase year by year as well as beer consumption go up sharply from 2010 until al n ua now Beer industry growth rate in Vietnam increases always over 5% per year while almost va market over the world went through and get lower rate in recent years Beer consumption n in Vietnam get over billion liters in 2018, and is forecasted get over 4.6 billion liters in ll oi m HVB product portfolio fu 2019 (Internal report HVB 2018) nh at HVB own many favorite brands beer in Vietnam such as: Heineken, Heineken Silver, z Tiger, Tiger Crystal, Strongbow, Desperados, Amstel, Afligem, Larue, Larue Special, z ht vb Bivina, and Bivina Export jm HVB also has planned to release unique strategic actions to recover the SV of Heineken k brand as well as increase the innovation with Heineken Silver for new targeting young, gm l.c dynamic, high-income consumers who mainly live and works in big cities in 2019 About the implementation, two strategic plans recommended is upgrading Heineken brand om (Heineken Silver) and creating a new brand (Amstel) for economy beer segment To a Lu implementing strategic actions, HVB will face to some potential challenges, as the attack n y HVB target customers te re expected SV, or the higher tax from government n va from rivals, losing profits by increasing investment cost for new products, cannot gain the Target customer: people aged from 20-50 with medium or high income, potential customers mainly live in urban or city They may be a professionals, employers, senior managers and employees Customer relationships: engagement by brand awareness, advertising, innovation HVB value proposition Key resources: Heineken have more than 165 breweries in more 65 contries, distribution t to networks, intellectual property ng hi Value proposition: HVB strategy concentrates on to achieve determined objectives ep Win in premium price led by Heineken w Shape the cider category n lo Lead in marketing and innovation ad Be commercially assertive y th Improve the productivity ju yi Maintain a better brewing in a world pl Channel activation: modern On, modern Off, traditional On, traditional Off al n ua Cost structure: raw material, production, distribution, quality control and assurance, tax va Revenue streams: sales of products, distribution agreements, Heineken experience n Key partners: investors, raw materials suppliers, distribution networks, technology ll fu suppliers, sponsorships m oi Key activities: marketing and sales, distribution, production, quality control at nh z z ht vb k jm om l.c gm n a Lu n va from Satra y Heineken Vietnam is corporated company with 60% from Heineken Asia Pacific and 40% te re Figure 1: Organization HVB Source: internal oganization HVB 2019 In currently, three kinds of payment will be applied For Banquet promotion, gratis be paid for party owner and cash will be paid for caterers t to For gratis payment, can select multiple SKU for payment ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m Select account code to charge for the promotion nh at Default value will be “Mkt Off Trade” z Select the scope to deploy the promotion program z ht vb Can select multiple items for outlet group, outlet type, region, area jm To open the screen “Banquet Caterer List” to select caterers for the k gm promotion l.c After completely selection, Caterer list of the promotion will be n To save data inputted a Lu Refer to “2.3.2 Caterers for a selected promotion” om shown on the tab “Caterers for a selected promotion” 111 y Refer to “2.3.3 List of promotion” te re To back to screen “ List of promotion” n va To cancel date inputted 2.3.2 Caterers for a selected promotion Refer to “2.4 Caterer Management” t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh 2.3.3 Promotion list z z ht vb k jm om l.c gm n a Lu n va y te re 112 Proposal list Description ID ID of proposal (auto increase) Rule: P + province ID + xxxxx t to Name of proposal Type Type of promotion ng Proposal name hi ep w n The area will be deployed the promotion lo Area ad y th Province The province where will be deployed the promotion ju yi pl Outlet types will be deployed promotion The date when proposal is submitted n va Request date n ua al Sub segment ll fu Duration oi m Start date & end date Timeline of promotion nh Mechanism of promotion Est payment Target: minimum require SV to get payment in gratis/cash/gift Number Caterer The number of proposed outlets that take part in the promotion Act volume (cases) Sum up from order Charged to account Account code to identify the promotion budget that charged for at Target & z z ht vb k jm om l.c gm Actual payment depends on mechanism and actual volume n Payment a Lu which department To add new banquet promotion 113 y To export the current promotion list into excel file te re existing any field value matching with key word n va Input key word and press on “Filter” to filter promotion that 2.4 Caterer management This screen will include all outlets of ToffT that interfaced from SIS t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu m nh These fields have to matching with SIS system at Caterer ID, Caterer name, Description oi Caterer list z Contact person, Phone, z ht vb House, Street, Ward, jm District, Province, Email, k Area, Region gm om l.c Input key word and press on “Filter” to filter caterers/outlets that existing any field value matching with a Lu key word n n va y te re To export the current caterer list into excel file To add new outlets if needed 114 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh 2.5 Party order management z z When coming to “Order”, it shows order list of the current promotion program vb ht 2.5.1 Party order list k jm om l.c gm n a Lu n va y te re 115 Proposal list Description t to ID ID of order (auto increase) Banquet owner Full name of party owner Banquet type Type of banquet Include popular party in Vietnam such as ng hi “Đám cưới”, “Đám giỗ”, “Thôi nôi”, “Sinh nhật” ect ep Date & Time Date and time when the party happen Status of order, including w Status n lo  New: new order and not yet verified by hotline team ad  Verified: order has been checked and verified by hotline y th team ju yi  Waiting for delivery: order has been submitted by hotline pl team and is waiting for voucher delivery al n ua  Delivered: done for voucher delivery n va  Completed: order paid completely for both party owners and fu caterers ll  Cancelled: party owner cancel the order oi m Quantity of SKUs are ordered by party owner Actual delivery Actual delivery inputted by deliver or hotline team Phone Contact number of party owner at nh Order quantity z z vb House, street, ward, Address of party ht k jm district, province l.c promotion program gm Select a promotion program to show order list of the selected a Lu Filter order list by selected status om Default value will show the latest promotion program n Input key word and press on “Filter” to filter orders that is Refer template as the file “ Form A-Xac nhan khuyen mai.xlsx” To creat new order 116 y nhan khuyen mai” for every party te re To export the current order list into excel file and “Bang xac n va existing any field value matching with key word Refer to 2.5.2 for detail order To edit an order 2.5.2 Order detail t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht Select promotion gm Caterer Select a Caterer that supply beer for the party order om l.c Input name of party owner Inputted by hotline team only Banquet owner k Inputted by hotline team only jm Promotion Description vb Order n a Lu Inputted by hotline team only Contact number of party owner Banquet type Type of banquets Include popular party in Vietnam such as n va Phone 117 y Inputted by hotline team only te re “Đám cưới:, “Đám giỗ”, “Thôi nôi”, “Sinh nhật” ect Region, Area, Address of the party location Province, District, Refer to sales structure in SIS t to Ward, House # Inputted by hotline team only Order date When party call to take order ng hi Inputted by hotline team only ep Date of party & time Date and time when the party happen w Inputted by hotline team only n lo Select when user change status of order ad  New: new order and not yet verified by hotline team y th  Verified: order has been checked and verified by hotline ju yi team pl  Waiting for delivery: the order has been submitted by hotline n ua al team and is waiting for voucher delivery va  Delivered: done for voucher delivery n  Rejected for review: hotline team reject the order for review fu ll  Completed: order has been paid completely for both party oi m owners and Caterers nh at  Cancelled: party owners cancel the order Quantity of SKU is ordered by party owner Actual delivery Actual delivery is inputted by deliver or hotline team Phone Contact number of party owner z Order quantity z ht vb k jm gm House #, street, ward, Address of party Actual: actual quantity delivery y te re 118 n Auto show prize base on order detail iputted va  “-”: to remove an item n  “+”: to add new item a Lu Order quantity: quantity at the beginning om Select product item and input quantity l.c district, province To open screen to scan QR code printed on voucher t to ng hi ep w n lo In case of scanning failure, user can input voucher code as well ad y th To open screen to take photos ju yi Limit at photos pl When capturing photos, the system have to get GPS information al n ua and date, time automatically (both online and offline mode) va n To vew photo on google map via GPS information ll fu m oi Input key word and press on filter orders that is existing any field nh at value matching with key word z z ht vb To export the current order list into excel file k jm To add creat new order l.c gm To edit an order om n a Lu To save order rmation inputted n va y te re To delete the order To back the screen “order list” 119 2.6 User account t to ng hi ep w n lo ad ju y th yi pl n ua al n va Description ll fu Order Input user name Full name code Input full name and code Password Set password for user name Report to Select a line manager User right Select a user role to access system Regional, Area, Allow multiple selection oi m User ID at nh z z ht vb k jm l.c Add new user account gm Province, District om To save information of a new user account or update information n va Delete a selected user account n in the user account list below a Lu of a selected user account After saving, the scheme will appear te re 2.7 Report y Refer to template in folder Report.7z Banquet statistic – Refer to “ Form B – Xac nhan so luong tiec.xlsx” Banquet payment detail – Refer to “ Form C – Danh sach toan chi phi-Caterer.xlsx” 120 Banquet performance detail - Refer to “Banquet daily report.xlsx” and “Banquet weekly report.xlsx” t to Security level ng Define user role and securrity accessing level depend on businedd function hi ep The following is matrix to setting user authorization  View: user can view functional sheet w n  Add: user have authority to add new data lo ad  Edit: user have authority to edit (add or delete) data ju y th yi pl n ua al n va Mobile interface fu ll User interface need to be compatible with any devices (tablet or mobile phone).And also m oi support multiple user language as well (at least Enghlish and Vietnamese) at nh z z ht vb k jm om l.c gm a Lu n Summary n va architechture that a software developer need to aware to develop the best system for longterm usage, integration, enhancement and maintenance And also, it interfaces with other systems in local HVB and global system 121 y requirement about business logic and system architechture, but also reflex technical te re This business requirement for the first development phase It is not only 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