INTRODUCTION
Overview
Vietnam’s GDP has positively increasing trend from 2016 until now: GDP in 2016 (+6.2%), 2017 (6.8%), 2018 (6.7%) and estimated in 2019 (7.08%)
In other way, the low inflation rate also has derease trend from 2016 (4.7%) and stable in
The Vietnamese beer industry is recognized as a highly promising market, experiencing consistent annual income growth and a significant rise in beer consumption since 2010 With an impressive growth rate exceeding 5% per year, Vietnam's beer market stands out, especially as many global markets face declining rates In 2018, beer consumption in Vietnam surpassed 4 billion liters, and it is projected to exceed 4.6 billion liters in the near future.
HVB own many favorite brands beer in Vietnam such as: Heineken, Heineken Silver, Tiger, Tiger Crystal, Strongbow, Desperados, Amstel, Afligem, Larue, Larue Special, Bivina, and Bivina Export
In 2019, HVB aims to implement distinctive strategic initiatives to revitalize the Heineken brand's market value while enhancing innovation with Heineken Silver, targeting young, dynamic, high-income consumers residing primarily in major urban areas.
Heineken is focused on enhancing its brand presence by upgrading Heineken Silver and launching a new economy beer brand, Amstel However, HVB may encounter several challenges during implementation, including competitive pressure from rivals, potential profit losses due to rising investment costs for new products, the risk of not achieving the desired market share, and increased taxation from the government.
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 h
Customer relationships: engagement by brand awareness, advertising, innovation
Key resources: Heineken have more than 165 breweries in more 65 contries, distribution networks, intellectual property
Value proposition: HVB strategy concentrates on to achieve determined objectives
Win in premium price led by Heineken
Lead in marketing and innovation
Maintain a better brewing in a world
Channel activation: modern On, modern Off, traditional On, traditional Off
Cost structure: raw material, production, distribution, quality control and assurance, tax Revenue streams: sales of products, distribution agreements, Heineken experience
Key partners: investors, raw materials suppliers, distribution networks, technology suppliers, sponsorships
Key activities: marketing and sales, distribution, production, quality control
Source: internal oganization HVB 2019 Heineken Vietnam is corporated company with 60% from Heineken Asia Pacific and 40% from Satra h
Vision, mission and core value of HVB
Target: a better Vietnam by creating good value for peole, planet and prospery
Vision and Values: HVB’s vision is to be the leading, proud and responsible brewer in Vietnam, guided by values: “Respect for People & Planet, Enjoyment, Quality and Passion for Winning”
Missions: HVB delight consumers, day in day out, with perfect cider and beer brand experiences
Slogan in 2019: Winning, Faster, Together With new way of working: (1) Effective workflow, (2) Assigning rights for each region, (3) Focus in efficiency
The standard behavior: (1) Safety first, (2) Act as an entrepreneur, (3) Corporate with trust,
(4) Keep in simple, (5) Always learning to development
Ambition to 2021: Become the number one in terms market share, profit and sustainable developments With priority:
Become a market share leader in both Urban and Rural
Be a beer leader in both premium and mainstream segmentation
Continue keep moment growth of Heineken and Tiger
Increase revenue and manage efficiency expense
Attract develop and significant advantage talents
Drink responsible policy in 2019: (1) Responsibly in consumption and behave, (2) To be an ambassador to drink responsibly, (3) Do not drink in working hour, (4) Drink do not drive.
Heineken performance in 2018
In 2018, Heineken Global experienced remarkable success, showcasing positive indicators such as strong sales volume, increased net revenue, and significant profit growth This achievement was highlighted by Leo Evers, the Managing Director of HVB, during a national commercial conference held in Da Nang on March 21, 2019.
In 2018, consolidated sales volume (SV) rose by 4.2% compared to 2017, with Heineken brand SV experiencing a remarkable growth of 7.7%, marking the strongest performance in over a decade Additionally, net revenue saw an organic growth of 6.1%, contributing to a 6.4% increase in operating profit compared to the previous year.
Net profit (β) was so good with the absolute number €2.424 billion, increased approximately 12.5% from 2017 So, the distributed earning (β) per share €4.25, increased 7.9%
Mr Alexander Koch (HVB Commercial Director) also shared the performance of HVB in 2018 with over 1,800 employees in commercial meeting
In 2018, HVB experienced significant growth, achieving a total sales volume of 15 million hectoliters, which marks a 13.9% increase from 2017 This success was driven by HVB's sales of 14.1 million hectoliters, reflecting a 13.8% rise compared to the previous year, alongside Heineken Hanoi's impressive sales of 0.9 million hectoliters, which surged by 24.2%.
Regions experienced significant growth compared to last year, exceeding 14% Notable areas include the Northern and Central regions, particularly Da Nang and Quang Nam, as well as the South East, highlighted by Binh Duong and Binh Phuoc Additionally, the Mekong 1 region, encompassing Tay Ninh, Long An, Tien Giang, Ben Tre, Vinh Long, Dong Thap, and Tra Vinh, showed robust growth Similarly, Mekong 2, which includes Can Tho, Hau Giang, Soc Trang, Ca Mau, Ba Lieu, An Giang, and Kien Giang, also contributed to this upward trend.
Regions had stable growth versus last year (7%-14%): Central South (Quang Ngai, Binh Dinh, Phu Yen, and Daklak), North East (Dac Nong, Lam Dong) and HCM City
Regions had little growth versus last year (0% - 6%): market share under high pressure: East South (Ba Ria-Vung Tau, Dong Nai)
The Central North region, including Hue, Quang Binh, and Quang Tri, as well as the Central South region with Gia Lai and Kon Tum, experienced negative growth compared to last year, resulting in a decline in market share Additionally, the East North region, represented by Khanh Hoa, and the East South region, encompassing Ninh Thuan and Binh Thuan, also faced similar challenges.
Competitors of Heineken Vietnam Brewery in 2019
The beer market is experiencing fierce competition, with major brands like Sabeco, Heineken, Habeco, Carlsberg, Budweiser, and Sapporo vying for market share Sabeco, holding the largest market share at 42.9%, is now under the ownership of a Thai billionaire, leading to significant changes in its top management and potential shifts in strategy Heineken, the second leader with a 34% market share, is actively working to sustain growth and expand its beer offerings Habeco closely follows with a 14.5% share, while Carlsberg, through its subsidiaries Hue and South East Asia Beverage, accounts for 5.3% of the market.
The global beer market has seen the emergence of ABInBev's Budweiser brand in Vietnam since 2015 Despite its presence, several once-popular brands such as BGI, San Miguel, Foster, Zorok, Gambrinus, and Laser have struggled to maintain their prominence and are quietly fading from the market.
The Vietnamese beer market is highly competitive, particularly in the North and North Central Coast, where Sabeco is steadily increasing its market share In 2018, Sabeco-ThaiBev focused on enhancing its portfolio across key cities to effectively compete with other beer brands Additionally, Habeco has emerged as a strong competitor by expanding its sales to the private sector, making it more dynamic and competitive in the North Central Coast region.
In the Northern market, the total consumption of SV beer is around 9 million hectoliters, with Habeco leading the market at 67% share, equivalent to 6 million hectoliters Sabeco follows with a 26% market share, amounting to 2.3 million hectoliters, while HVB holds a smaller share of 7%, selling only 0.6 million hectoliters.
In the North Central Coast, the total beer consumption reaches 6 million hectoliters, with Carlsberg dominating the market at over 50%, translating to 2 to 3 million hectoliters Sabeco follows closely, capturing around 30% of the market share, equivalent to 1 to 2 million hectoliters, while Habeco holds a smaller share of 10%, amounting to approximately 0.5 million hectoliters.
The Southern region of Vietnam represents the largest beer market, with a total sales volume of 26 million hectoliters Sabeco-ThaiBev dominates this market, holding a substantial 50% share, equivalent to 13 million hectoliters, while the remaining 48% is captured by HVB Additionally, the South is home to several strong international competitors, including Sapporo, AB InBev, and Singha, intensifying the competitive landscape.
Objectives and targets for Heineken Vietnam Brewery portfolio brands in 2019
Ambition with successful year 2019, Mr Leo Ever announced on the national commercial meeting in Da Nang on 21 March 2019:
Target SV: 17 million hectl liters (increase +12.9% versus 2018)
Strategy, activation and detail target for portfolio brands in 2019:
Heineken brand (Heineken, Heineken Silver): recovery in growing with target 1.666 million hectl liters Heineken is the brand that brings the highest profit per case for HVB h
Mr Reinoud Ottervanger (Heineken Brand Marketing Manager) shared the Heineken strategy
In Tet 2019, Heineken experienced a remarkable 2% increase in sales volume compared to Tet 2018, surpassing targets with a 57% growth in January and February 2019 The Heineken sleek can (250ml) saw a significant 74% rise in sales volume year-over-year, while the 330ml variant increased by 29% Additionally, Heineken Aluminum reported an impressive 1,091% growth The World of Heineken also attracted 150,000 visitors during this period.
New campaign in 2019: new in communication messages, new in activation at outlets Orientation campaign 2019: innovation products (new visual, packaging, new product
- Heineken Silverect.), unique communication campaign, win in activation at outlets Heineken: Formula 1 Vietnam Grand Prix in My Dinh stadium on April 2019
New type package for Tet 2020
Strongbow brand becomes a leader Cider segmentation in Vietnam with target 0.11 million hectl liters (+100.2% versus 2018) with three main strategy: brand identity, accelerate market, and expand distribution
Miss Nguyen Thi Ngoc Tram (Strongbow Brand Marketing Manager) also shared the planning for innovation Strongbow
In 2019, various promotional activations were implemented, including sampling at both traditional and modern restaurants, as well as across diverse trade channels Branding and promotional efforts spanned traditional and modern on-trade and off-trade channels Additionally, a comprehensive media campaign was launched, utilizing social media platforms, digital marketing, social networks, Facebook, cinema advertising, and office building promotions to enhance visibility and engagement.
New flavor Cider: dark fruit, carton with ten cans, festive carton
Tiger brand (Tiger, Tiger Crystal): continuing to maintain and develop in new area with target 12.226 million hectl liters (+12.3% versus 2018)
Folow the sharing from Mr Nguyen Phuong Hoang (Tiger Brand Maketing Manager) Developing strategy for Tiger brand in 2019:
The market has experienced significant growth of over 14% compared to last year, particularly in the highlighted provinces In these areas, the Tiger brand holds a substantial 44% market share, while Tiger SV, which represents the core market, focuses on a reward-based strategy.
In the market have stable growth versus last year (7%-14%) (* detail provinces as mention above) - In these provinces, Tiger account for 51% total Tiger SV Tiger also h
9 have many marketing strategies to appeal the drinkers which switching from mainly competitors such as: Red Saigon, 333, Saigon Larger, Saigon Special, Hanoi beer etc
In the market have negative growth versus last year: Tiger will compete directly with Huda, Saigon Larger, Saigon Special to gain growth SV
Target 2019: continue to be the most favorite beer brand across Vietnam with the mainly strategy:
Push more sales in key cities such as: Ha Noi, Hai Phong, Ha Long, HCM City, Nha Trang, Da Nang, and Can Tho
The development of second and third-tier cities in Vietnam, including Bac Ninh, Hai Duong, Thai Nguyen, Phu Tho, Nam Dinh, Thanh Hoa, Ninh Binh, Nghe An, Hue, Quang Ngai, Quy Nhon, Gia Lai, Phan Thiet, Buon Me Thuoc, Vung Tau, Binh Duong, Bien Hoa, Long Xuyen, Dong Thap, Rach Gia, and Ca Mau, is gaining momentum, reflecting a broader trend of urban growth and economic diversification across the country.
Expand distribution in rural market to gain more SV for Tiger
There are alot of campain and events for Tiger in 2019:
- Tet/Tiger remix (January 2019) with many key cities such as: Ha Long, Hai Phong,
Ha Noi, Da Nang, Nha Trang, HCM City, Can Tho
- Tiger street football (April 2019): Thai Nguyen, Hai Duong, Hai Phong, Quang Ninh,
Hà Nội, Nghệ An, Huế, Đà Nẵng, Quảng Nam, Buôn Ma Thuột, Khánh Hòa, Bà Rịa - Vũng Tàu, Đồng Nai, Tây Ninh, TP.HCM, Tiền Giang, Cần Thơ, và Kiên Giang là những địa điểm nổi bật tại Việt Nam, mỗi nơi mang đến những trải nghiệm văn hóa và thiên nhiên độc đáo cho du khách.
Tiger Crystal has launched a campaign imprinting 1 million hectoliters with the slogan “Khat khao vuon xa, that san khoai” across various regions including Bac Ninh, Hanoi, Ha Long, Hai Phong, Hue, Da Nang, Quang Ngai, Binh Dinh (147%), Dak Lak (152%), Binh Thuan (141%), Nha Trang (129%), Ba Ria Vung Tau, Binh Duong, HCM City, Long An, Tien Giang, Dong Thap, Can Tho, Hau Giang, An Giang, Tra Vinh (147%), Vinh Long (133%), Soc Trang (132%), Ca Mau, and Kien Giang (151%) This significant distribution emphasizes the brand's commitment to reaching consumers across Vietnam.
- 88 years Tiger with Jackpot with the big win 550.000.000 VND, this is the first time Tiger brand bring the Jackpot in to promotion in Vietnam
In 2019, Amstel aimed for a premium positioning in Vietnam with a target of 0.1 million hectoliters, marking it as one of the first countries in South Asia to sell the brand Originating in Holland in 1870, Amstel has been showcased through various international campaigns, including partnerships with iconic figures like Muhammad Ali and sponsorship of the Europa League since 2015 Mr Nguyen Le Manh Linh discussed the strategic vision behind Amstel's market presence.
The Wingman strategy, alongside the Tiger brand, positions Amstel as a strategic competitor aimed at decreasing reliance on Tiger In 2019, Amstel expanded its distribution network across Phu Yen, Binh Dinh, Quang Ngai, Quang Nam, and Da Nang, enhancing its market presence.
Continue the media campaign “Vi em huyen thoai”: increase outlets visibility, activation and sampling
Sell in the multi brand outlets where, have a lot of Saigon Special
Put more sell in outlets, where market share Tiger in there lower than 50%-70% Maintain the Amstel competitive price in the affordable and premium segmentation
Larue brand (Larue, Larue Special): develop in mainstream segmentation with target
2.632 million hectl liters (+ 21.5% versus 2018) with campain flashing victory with slogan
“Song yeu doi, moi Larue” with many marketing campaigns which disclosured by Mr Nguyen Tam Hoang (Larue Brand Marketing Manager) as details
Golden Mic (Karaoke Larue) will be activate on internet, mobile ect
Open the cap, big win (first prize Karaoke portable speaker & 5 million VND, second prize one million VND, third prize 10.000 VND
Larue festive campaign Tet 2020: Facebook media 2020, event activation, promotion for consumers
Bivina brand is expanding its distribution and increasing its sales volume in the mainstream segment, targeting 200,000 hectoliters, which represents a 23% growth compared to 2018 Mr Tran Tuan Kiet proudly announced the new slogan for Bivina, “Tu hao bia dao ngoc,” alongside various marketing campaigns planned for 2019.
Unlock the Bivina cap to reveal the scratch card: "Open Bivina to discover the treasure." This exciting promotion offers 10 first prizes of 1 Pearl, hundreds of Polo T-shirts as the second prize, and numerous mobile cards worth hundreds of thousands as the third prize.
In 2019 Bivina brand expand more Bivina Export in increase opportunities SV
Managing director HVB expectation for 2019
The article emphasizes the commitment to leading the premium beer and cider market in Vietnam, focusing on enhancing revenue management through strategic margin profit and expense control It advocates for improving operational efficiency by optimizing costs, fostering innovation, making strategic investments, and executing effective sales strategies.
Quickly develop in the North market h
Quickly accelerate for premium brand (Heineken, Tiger, Amstel, Strongbow ect.) in urban area and mainstream (Larue, Larue Special, Bivina ect.) in rural
Sustainable competitive with rivals and delivers HVB’s value to stakeholders through
Grow with customers and partners, to be successful with integrity and fairness.
Trade marketing plan in 2019
Accelerate coverage expansion: quickly to expand the coverage market
Build many TMK programs, events according to regional characteristics to have many quickly actions to support for ST
Picture of success (PICOS): deploy the standard outlets for each region
To become a quicker winner in market with accelerate more 25,000 outlets:
In the North will recruit more than +10,800 new outlets in 2019: expand coverage in small outlets instead concentrate in the big outlets with high SV
In the Central will recruit more than +7,900 new outlets in 2019: concentrate on distribution the North Central Coast
In the South will recruit more than +6,300 new outlets in 2019: concentrate on rural area
Recruite more 200 people in sales team and distributor salesmans in 2019 to take care outlets
Support more tools and activation to become a winner at outlets
Traditional Off Premise Trade (ToffT) Channel
BP remains the top choice for HVB products at home parties Additionally, TMK and ST must enhance their performance programs to meet the goal of expanding into 30 more provinces, hosting 45,000 parties, and achieving 1,500,000 cases of SV.
Trade Loyalty Program: build a long-term relationship with 14,000 loyalty customers,
Fridge Program: strengthening the present of 9,520 fridges in 30 provinces - create believers and profits for customers
Traditional and Modern On Premise Trade Channel - key priorities in 2019
Accelerate sell out activities under brand campaigns
Modern Off Trade Channel - key focus in 2019
Understand shopper’s behavior in store in order to respond fully to their needs and immediately through category management
Enhance shoppers experience through shopper based category presentation, fixture Pack six cans, carton units which, will be focus on 2019
Incremental volume comes from how to increase frequency and volume per trip
Drive basket size for Strongbow in HCMC and sampling activities for province
Commercial department structure
The commercial department serves as the core of HVB, encompassing three key functions: brand marketing, TMK, and ST While TMK and ST are managed by channel, brand marketing is handled separately for each brand, following the established organizational structure.
HVB TMK aims to position the department as the driving force behind strategic shopper, channel, and customer initiatives, facilitating impactful behavior changes at the point of purchase and consumption.
HVB TMK is middle department to transfer marketing strategy to the sales TMK has main mission such as planning and offering mass nationwide promotions, retail standards, h
13 advertising materials, and forecasting products, budget management ect These activities are merely to support sales and retail outlets more effectively
Figure 3: Trade marketing roles in HVB
Source: internal structuce HVB, 2018 HVB TMK plans by channel, focuses on categories, drives portfolio and brands in channel, and executes with customers
HVB TMK develops and delivers activation strategies, platforms and plans for prioritized channels or outlets
Figure 4: The interaction structure between TMK and ST
RTMK serves as a crucial link, facilitating the flow of information from TMK to ST, enabling the implementation of trade activations in the market while also gathering valuable feedback from ST.
In 2018, the internal structure of HVB revealed that RTMK for ToffT was only available in MK1 and MK2, necessitating ASM to compensate for the lack of RTMK in other regions This absence impacts TMK activations in these markets, leading to potential declines in BP performance, as evidenced by the analysis of BP P3.2018, which highlighted the consequences of insufficient RTMK availability.
PROBLEM CONTEXT
Introduction about Banquet program in traditional off trade marketing
Hosting parties at home presents a significant opportunity for the beer industry in ToffT Over the past year, HVB has implemented various trade promotion programs targeting this segment due to three key reasons: first, BP allows HVB to capitalize on this opportunity to boost its market share; second, BP serves as a competitive advantage to enhance sales volume against rivals; and third, BP acts as a strategic tool to help achieve the annual sales targets for the company.
Mr Mateusz Sikora – ToffT manager has shared about the ToffT straregy in 2019
In 2019, ToffT focused on three key activations: BP, Trade Loyalty, and the Fridge Program Among these, BP emerged as a crucial survival factor for ToffT Consequently, TMK must allocate all available resources to enhance BP's performance both in 2019 and beyond.
BP's contribution to HVB's performance is highly effective, particularly in enhancing the brand image, distribution, and customer conversion Caterers currently selling competitor products are likely to switch to HVB offerings due to more profitable promotional programs Consumers often have limited choices for their preferred beer at parties, as selections depend on the preferences of party hosts The management team at HVB acknowledges BP's significant role in driving performance Moving forward, TMK will assess BP's impact on end consumers post-program, which is crucial for demonstrating BP's importance to ToffT specifically and HVB broadly.
The significant influence of BP on SV is evident, as many competitors, including Sabeco, Huda, Budweiser, and Sagota, have adopted similar promotional strategies within this segment.
Mr Le Thai Hung – Project owner evaluated the BP contribution for HVB performance
BP aims to enhance awareness of HVB's brand portfolio among customers and end consumers, serving as a vital tool to increase the availability of HVB products at various outlets and retailers This initiative encourages trial among party guests who typically consume competitor brands like Sabeco, Budweiser, Sapporo, and Huda, providing them with a compelling reason to sample HVB’s offerings Additionally, Banquet has significantly contributed to HVB's performance in 2018, particularly in improving penetration from HVB to retailers and from retailers to consumers As a new channel, TMK must focus on expanding Banquet to reach new drinkers effectively.
In rural areas, where competitors like Sabeco, Su Tu Trang, and Huda dominate, parties can see consumption levels of 30 to 40 cases, with an average of 200 attendees likely to try HVB products This presents a significant opportunity to introduce the HVB portfolio to a broad consumer base at minimal cost The resulting "halo effects" and "word of mouth" marketing are crucial for brand awareness If only 10% to 20% of those who sample HVB at these events choose to repurchase in the future, it could lead to substantial contributions to HVB's sales volume.
HVB also evaluated carefully the effectiveness of program Therefore, HVB already put a lot of budget for the BP which more than 50 billion vnd per year (2019) h
Mr Tran Ngo Vinh Phuc – RTMK added more opinion about BP contribution to HVB performance
HVB aims to convert competitor consumption to its own products, with an estimated 40%-50% of market share previously held by major competitors like Sagota, Sabeco, Su Tu Trang, and Huda now switched to HVB in the last phase.
Banquet catering is a thriving market in Vietnam, particularly in rural and suburban areas Recently, TMK HVB has launched various promotional programs aimed at boosting the performance of Banquet Caterers and increasing sales volume These initiatives will not only help HVB expand its market share in the banquet segment, particularly for home parties and weddings, but also counter strong competition from brands like Sabeco, Su Tu Trang, Sagota, and Huda Additionally, the business plan (BP) is designed to support sales targets on a monthly, quarterly, and yearly basis while providing tools to attract purchase orders from party organizers in both urban and rural settings This strategic approach positions BP as a powerful asset in competing for market share against rivals such as Sabeco, Habeco, Carlsberg, Sagota, Su Tu Trang, and Huda.
Figure 6: Banquet promotion program process
Source: approved proposal Banquet program P3.2018 h
Step 1: PO (who hold wedding, birthday, dead anniversary, grand opening, reunion, memory party … ) will buy beer and get promotion information from Caterers
Step 2: Caterers who are outlet owners of: Sub distributor, Beverage retail shop, Grocery shop plus, Grocery shop, Banquet cartering, Wedding venue ect., that signed agreements with HVB and appointed to join the BP that will call to hotline and supply the party information for hotline such as full name of PO, telephone, party location, type of beer, quality beer, type of party, date partyect., Caterers must to confirm ID code and notice full information of party as requirement to hotline
Step 3: Hotline will call back to the PO to reconfirm all information which supplied by
Caterers is correct or not and confirm again party schedule
Step 4: Hotline will confirm the promotion package to agency supervisor (who deliver voucher, beer, gift ect.)
Step 5: Supervisor will call and inform to PO the date and time to deliver voucher
Step 6: Supervisor will notice to sales representative ST about the party information Step 7: Supervisor deliver voucher to PO and get proof to prove by: take picture, get party owner signature on HVB form
Step 8: Hotline will call back to PO again to reconfirm that they already received voucher on time
The interation chart in BP
Figure 7: The interaction of related parties in Banquet program
The approved proposal for the Banquet program P3.2018 illustrates the interaction among various stakeholders in the BP process In this framework, RTMK plays a crucial role as the connector between TMK, ST, and other agencies Additionally, RTMK is essential for deploying, managing, and overseeing operations to ensure effective support and coordination among all parties involved.
ST plans to successfully deploy the BP in the market, addressing the shortage of RTMK in various regions ASM will take on RTMK responsibilities in areas such as Central North, Central South, East North, East South, and Ho Chi Minh City.
History of Banquet program
In 2016, TMK and ST identified a significant opportunity for HVB to enhance its share in the party-at-home segment within ToffT, an area that had previously been overlooked Following extensive meetings and discussions, they gathered market insights and analyzed data from various departments, including TMK, ST, business control, revenue management, and process improvement This collaborative effort culminated in the pilot launch of the first business plan on September 5th of the same year.
Since its inception in 2016, the BP program has consistently evolved, expanding from one province and district in Tien Giang and Cu Chi with 2,000 parties and 52,740 cases, to five provinces in 2017, serving 7,417 parties and contributing to 268,432 cases The year 2018 marked significant growth, with BP extending to 30 provinces and serving a total of 51,320 parties, resulting in 1,717,753 cases Despite this expansion, the program's performance in 2018 fell short of expectations, achieving only 77.1% of its target for the number of parties (NoP) while exceeding the target for case contributions (SV) at 101% However, the underlying performance indicators were concerning, with NoP at 68% and SV at 86.1% of the program's targets Therefore, it is crucial for TMK to devise strategies to enhance both NoP and SV indicators for BP in 2019.
2.2.1 The Banquet program performance pilot phase in 2016
A new pilot program in Tien Giang province and Cu Chi district offers caterers an incentive to boost party registrations Caterers who secure orders of 15 cases of Heineken or 20 cases of Tiger or Larue will receive 2 free cartons of Heineken or complimentary karaoke services for the event Additionally, for each successful party they introduce, caterers will earn a reward of 200,000 VND.
The NoP achieved a remarkable 100% and the SV reached an impressive 132% against the KPI Additionally, the NoP selected the Karaoke prize, which was notably low at around 5% of the total 2,000 attendees This outcome provides valuable insights for future events.
Table 1: The BP performance pilot phase in 2016
Following the successful pilot phase, HVB has decided to continue the program next year, identifying Banquet as a key activation for ToffT's future initiatives.
2.2.2 The Banquet program performance in 2017
Table 2: The BP performance in 2017
Phase 01 (From 01 April to 30 June 2017)
Phase 02 (From 01 September to 31 October 2017)
Phase 03 (From 15 October to 31 December 2017)
Following the pilot phase in Tien Giang and Cu Chi, HVB conducted a performance evaluation of the program, receiving numerous positive feedbacks from stakeholders Based on this feedback, there is a strong recommendation to continue and expand the initiative.
In 2017, TMK expanded its program to include five provinces: Tien Giang, Ho Chi Minh City, Dong Thap, An Giang, and Hau Giang, maintaining the same mechanism as in 2016 However, both the NoP and SV fell short of expectations, achieving only 70% performance for the party and 94% for SV A key takeaway from this phase was that the Karaoke mechanism did not appeal to the PO, prompting TMK to reconsider alternative prize promotions that align more closely with consumer expectations in the next phase to improve both NoP and SV.
2.2.3 The Banquet program performance phase 1.2018
Table 3: The performance of BP phase 1.2018
Following valuable insights gained from BP 2017, TMK advanced its Phase 1.2018 program, implementing significant improvements in mechanisms and management across 14 carefully selected provinces The program excluded Hau Giang due to its poor performance in 2017, where only 172 parties were recorded, while introducing new potential provinces and discontinuing the Karaoke prize from the previous year.
Caterers participating in the program will receive incentives based on their purchases of HVB cases; for every 15 cases bought, they will receive 1 carton per brand and 100,000 VND, while purchasing 30 cases will yield 2 cartons per brand and 200,000 VND for each successful party introduced In the first quarter of 2019, the program performed exceptionally well, achieving 100% of the NoP target and 124% of the SV target Additionally, TMK garnered positive feedback from ST regarding improvements made during this phase.
2.2.4 The Banquet program performance phase 2.2018
Table 4: The performance of BP phase 2.2018
Source: internal report from Agency Trio and TMAR
In phase 2 of 2018, BP maintained its presence in 14 provinces while TMK removed underperforming areas such as Dong Nai, Binh Duong, Vung Tau, and Soc Trang, introducing new potential provinces like Quang Nam, Phu Yen, Ninh Thuan, and Binh Thuan Although there were minimal changes in mechanics, with adjustments made for better provincial alignment, performance improved significantly, with the number of parties increasing by 182% from 8,920 to 16,272, and actual service volume rising by 191.5% from 306,464 to 587,180 cases However, the total number of parties fell short of the target, achieving only 84% of the goal (16,272 out of 19,329), despite the service volume performing well at 118% of the target (587,180 out of 496,816 cases) These changes highlighted challenges TMK faced in executing the program effectively in the market.
2.2.5 The Banquet program performance phase 3.2018
Scope in: Hue, Đa Nang, Quang Nam, Quang Ngai, Binh Đinh, Phu Yen, Gia Lai, Kon
Các tỉnh miền Nam Việt Nam bao gồm: Tum, Đắk Lắk, Khánh Hòa, Ninh Thuận, Bình Thuận, Bình Dương, Đồng Nai, Vũng Tàu, Thành phố Hồ Chí Minh, Long An, Tiền Giang, Bến Tre, Vĩnh Long, Đồng Tháp, Trà Vinh, Tây Ninh, Cần Thơ, Hậu Giang, Sóc Trăng, Cà Mau, An Giang, Kiên Giang và Bạc Liêu.
Participating caterers, including sub-distributors, beverage retail shops, grocery shops, and banquet catering services, who purchase 15 cases of HVB products such as Heineken, Tiger, Tiger Crystal, Strongbow, Larue, Larue Special, and Bivina, will receive a voucher for one carton Additionally, caterers will earn a bonus of 200,000 VND for each successful event.
Caterers participating in the wedding venue list from the HVB portfolio will receive a voucher for two cartons and a bonus of 100,000 VND for each successful party hosted Additionally, during the peak season of December 2018 and January 2019, a Heineken Trolley will be offered as a special gift to party hosts to encourage more sales volume.
Table 5: The proposal budget for BP phase 3.2018
In P3 2018, TMKT allocated a significant budget of over 43 billion VND for their promotional campaign, with POS items and beer promotions making up 70% of the budget (approximately 29 billion VND) and agency fees accounting for the remaining 30% (around 14 billion VND) The agency fee is a crucial aspect that TMKT must consider for future initiatives.
Table 6: The performance of BP phase 3.2018
Following the successful outcomes of BP P1.2018 and the satisfactory results of BP P2.2018, TMK and ST have decided to expand their operations to cover 30 provinces nationwide Consequently, the target for the number of participants (NoP) has increased significantly from 19,329 in P2.2018 to 38,305 in P3.2018.
SV increased from 496,816 to 957,625 cases
PROBLEM INDENTIFICATION
Symptoms
Symptom of BP P3.2018 did not achieve KPI As the performance of BP P3.2018 on table
The performance of the program fell short of management's expectations, with the Number of Participants (NoP) achieving only 68% and Sales Volume (SV) reaching 86% of the target Additionally, the participating caterers from ST showed a concerningly low activation rate, contributing to the poor performance in BP P3.2018 Only 38% of the caterers were classified as active, having organized at least one party over the four-month program period (2,090 active caterers out of 5,521 participants) Among the three key indicators—NoP, SV, and active caterers—improving the NoP is crucial, as it significantly impacts SV and the overall return on investment (ROI) of the program.
Table 7: Statistic performance per region in BP phase 3.2018
According to an internal report from Agency Trio, Lunenburg emphasized that well-defined KPIs significantly impact employee behavior, company performance, and management practices Modern organizations typically implement some form of goal setting in their business strategies The KPI Banquet P3.2018 was deemed reasonable and achievable, yet interviews revealed that its underperformance was not due to the target setting itself Project owner Mr Le Thai Hung expressed that the performance of BP P3.2018 was ultimately unacceptable.
I am dissatisfied with the performance of BP P3.2018, as the NoP only reached 68% and the SV achieved 86% of the target However, compared to the previous phase, the program has received more positive feedback from stakeholders regarding the improvement process Therefore, TMK should continue to build on these positive developments.
Active Total % Active Actual Target Performance Actual Target Performance
Active Outlets/Caterers Number of Party Sales Volume
26 and find out the solution to solve currently problems to increase Banquet performance in next phase
Key performance indicators (KPIs) are essential for managers to assess organizational performance in critical success factors, as highlighted by Parmenter By effectively supervising, managing, and monitoring these KPIs, managers can significantly enhance company or program performance Many stakeholders believe that the underperformance of BP P3.2018 was not due to unreasonable target setting; rather, there were ample opportunities to meet or exceed KPIs if the project manager had exerted more effort in execution and management.
Mr Nguyen Khanh Vu – Project manager (agency Trio) confirmed that BP P3.2018 performance did not meet the expectation
The NoP achieved only 68% and SV reached 86%, which falls short of HVB's expectations, leaving me dissatisfied with our performance Despite our team's efforts to enhance results during the market deployment, we recognize the need for improvement Moving forward, I am confident that we will gain valuable experience in repairing and enhancing Banquet performance in the next phase.
The project owner expressed concern over the low activation rate of caterers, with only 38% (2,029 out of 5,221) participating in the promotional program This indicates that 62% of caterers did not engage, which could negatively impact the performance of BP P3.2019 Increasing the number of qualified caterers is essential for improving the number of participants (NoP) Mr Nguyen Phi Cong, a sales representative in HCM, also highlighted this critical factor.
Only 38% of active Caterers in HCM, with just 185 out of 493 having hosted at least one party, indicates poor performance This raises concerns for TMK, prompting a reevaluation of these issues in the next phase, as unqualified Caterers can adversely affect Banquet performance.
Shahin et al (3) emphasize that Key Performance Indicators (KPIs) should adhere to the SMART criteria—Specific, Measurable, Attainable, Realistic, and Time-sensitive They also advocate for the integration of the Analytical Hierarchy Process (AHP) to ensure that both quantitative and qualitative factors are effectively considered in the goal-setting process.
Set up KPI for both NoP and SV of BP P3.2018 base on
The performance of previous phase and also referenced the historical data h
The KPI were aligned and confirmed by related managers such as HoT, HoS, RCM, ASM, Project owner, Project leader and Controller
Actual and real information from market and also estimated in future such as competitors, seasonal, market trends, consumer behaviour, regional custom ect
In some new provinces are the first time join to program, which are benchmarked with the other provinces that have similarly condition, standard
The KPI of BP P3.2018 was deemed reasonable by most stakeholders, reflecting a balanced assessment compared to HVB's business capabilities Many expressed that the KPIs were justified, highlighting missed opportunities for performance enhancement through minor innovations in mechanisms such as agency services, communication with caterers, and branding at outlets Mr Tran Ngo Vinh Phuc from RTMK provided insights regarding the timeliness of agency services.
If agency could improve their better service such as serving all party call to hotline before 24h, the number of party could increase more than 30%
Román (4) highlighted the crucial role of sales forces in implementing successful promotional programs through customer satisfaction, trust, and loyalty However, feedback indicated that many caterers failed to meet quality service standards in BP P3.2018 In response, Mr Nguyen Khanh Vu, Project Manager at Agency Trio, addressed these concerns.
Many caterers expressed a lack of clarity regarding the banquet program, often forgetting or ignoring it due to their busy daily operations A significant factor contributing to this issue was the insufficient communication from ST Despite providing flexible support to provinces with low performance, such as Phu Yen, Hue, and Kon Tum, caterers remained uninformed To enhance banquet performance, ST must take a more proactive approach in communicating changes in the mechanism to caterers.
Shahin et al (3) emphasize that KPIs are primarily utilized for performance enhancement rather than mere valuation Consequently, TMK's primary mission in 2019 is to identify effective solutions to enhance performance, quality, and processes for BP To achieve this, TMK conducted a survey consisting of nine in-depth interviews categorized into four main groups.
The first group is TMK department: project owner, RTMK and channel development manager These people are mainly responsible BP who understand very deeply about the program
The second group is agency Trio: project manager who helps TMK and ST directly deploy, execute, activate BP on market
The third group is ST: sales representative, sales supervisor, ASM who have responsible to deploy, follow, manage the program on market
The fourth group is Caterers: one Caterer with good performance and the other poor performance who have roles as a bridge to connect PO with HVB products
The questionnaires include nine questions as detail
Interviewee’s introduction: question 1 which understand stakeholder’s background and their roles in BP
Viewpoint’s informants to BP P3.2018: question 2 and 3 which understand clearly how the interviewees think about the BP contribution to HVB and BP performance in P3.2018
Discovering potential central problems lead to BP P3.2018 poor performance which are clear in question 4 and 5
Determining the main problem lead to BP P3.2018 do not meet requirements which presented in question 6
Finding out some potential causes and confirming the main cause lead to that main problem which are more detail question 7
Susgesting possible effective solutions from stakeholders to improve performance BP which give out in question 8 and 9
After conducting interviews with nine informants, four key issues have been identified that directly impact BP performance: (1) distractions from ST affecting BP, (2) inadequate agency services, (3) an unappealing mechanism from TMK, and (4) unpredictable market factors.
Potential problems
3.2.1 Distraction of sales team to Banquet program
Le et al (5) highlighted that the sales team and marketing team may pursue separate agendas due to differing targets, resulting in poor coordination and tension between the two groups This misalignment can hinder effective collaboration and the successful deployment of various programs.
During the peak season of 2018, ST faced challenges in maintaining focus due to simultaneous activations and events The busy period included numerous trade loyalty programs, display initiatives, and brand marketing events such as Tiger Remix and Heineken F1, alongside tactical promotions from ST This overwhelming array of activities led to distractions and a dilution of focus on certain programs, ultimately impacting ST's effectiveness in the market.
Kotler et al (6) highlight the distinct yet often conflicting roles of sales and marketing within an organization Sales teams are frequently preoccupied with essential daily tasks, such as visiting at least 20 outlets, taking orders, and conducting evaluations, which consume significant time and effort These responsibilities are crucial, as they directly impact key performance indicators (KPIs) on a monthly and quarterly basis, necessitating prioritization over other activities.
Mr Tran Ngo Vinh Phuc – RTMK shared some his real experience about ST from market
Soc Trang's performance in business processes was notably low at only 27.5%, significantly lagging behind An Giang's 53.8% and Kien Giang's impressive 93.1% In contrast, Hau Giang exceeded its targets, driven by the dedication of its sales supervisor, who motivated the team to achieve their goals, resulting in his promotion to ASM this year In my opinion, the attitude in Soc Trang is a critical factor affecting its business performance.
Le et al (7) emphasized that enhanced collaboration between sales and marketing can significantly improve organizational performance However, TMK struggled with effectively communicating key insights about business performance (BP) roles within the HVB strategy, resulting in ST not fully recognizing the impact of BP on their performance Mr Le Thai Hung, the project owner, provided critical insights into the reasons behind ST's lack of focus on BP.
TMK and RTMK have struggled to effectively communicate and transfer the initial insights from the Banquet to ST As a result, TMK has failed to clearly present the roles and contributions of the program to ST, leading to a loss of focus from ST, which is crucial for the execution of the program in the market.
Effective communication of promotional programs to buyers and consumers is crucial, as highlighted by Blatterg (8) Retailers utilize various tools such as signage, displays, standees, banners, and leaflets provided by business organizations to convey this information effectively.
The promotion program featured 30 attractive elements; however, ST lost focus on the BP, resulting in a lack of enthusiasm for program deployment at outlets During the BP P3.2018 event, many participating caterers were unclear about the BP mechanism and the program process, despite having signed agreements Mr Nguyen Khanh Vu, the project manager from agency Trio, provided additional evidence to support these findings.
Effective communication between ST, caterers, and consumers was lacking during the program's execution ST played a crucial role in enhancing performance by fostering relationships with caterers, which was essential for securing support and ensuring successful events.
According to Le et al (5), managerial support for collaboration between sales and marketing, along with properly aligned reward structures, can significantly reduce conflict and enhance performance However, many managers lack clarity regarding business processes (BP), leading to a failure in recognizing the value and impact of these programs on their performance Consequently, they do not effectively deploy, explain, or manage these initiatives with their teams Mr Phan Long Duyen, a sales supervisor, shared insights from his experiences with BP in P3.2018.
Many sales representatives and supervisors lacked clarity regarding the program information intended for Caterers During meetings with TMK, only supervisors and ASM participated, leading to briefings for sales representatives that often resulted in unclear communication.
Senior management plays a crucial role in fostering collaboration between sales and marketing, as positive attitudes can significantly reduce interdepartmental conflicts and enhance communication Effective collaboration relies on key antecedents, and when conflicts are minimized, overall performance improves Additionally, Area Sales Managers (ASM) and supervisors are vital in supporting the sales team in effectively targeting the Banquet market However, a lack of attention from many managers towards promotions has caused the sales team to lose focus on this segment Sales representative Mr Nguyen Phi Cong has shared insights regarding these challenges.
Many sales representatives are unaware of the BP, such as ST, which is submitted alongside a lengthy list of caterers This lack of understanding leads to unclear communication regarding the program's mechanisms for the caterers.
Both ASM and supervisors failed to focus on the primary causes affecting the sales representatives, which contributed to distractions during the promotion program Through a combination of theoretical analysis and stakeholder interviews, it became clear that this oversight was a significant factor leading to the poor performance of Banquet P3 in 2018.
Baker et al (9) highlighted that agency service managers face challenges due to the absence of effective business practices and a practical management framework Additionally, Trio agency operates by managing multiple independent projects simultaneously, leading to confusion among employees regarding the banquet program's overall process and mechanisms Furthermore, many of Trio's employees are temporary, resulting in a lack of accountability in their roles.
Problem validation
The Banquet program plays a crucial role in ToffT activation and trade marketing overall, as recognized by all informants and managers Its contributions extend beyond sales volume (SV) by enhancing distribution and developing the HVB portfolio of brands However, the negative performance indicators from the Banquet program in P3.2018 have adversely affected the return on investment (ROI) and the expectations of the HVB management team Therefore, validating the primary issues among the four identified problems is essential for formulating appropriate solutions to improve Banquet performance in the next phase.
3.3.1 Eliminating agency, mechanism, and market factors as the main problems
Regarding to unqualified agency service, this issuse is not a major problem which lead to poor performance BP P3.2018 Agency service is an out source that TMK can evaluate the h
The execution of market strategies and performance reviews for agencies at each phase is crucial If an agency meets the Banquet program's requirements, it demonstrates the capability to sustain future initiatives Conversely, if an agency fails to meet the minimum standards, TMK has numerous alternatives from a pre-evaluated list of recommended agencies Ultimately, the quality management of agencies significantly influences Banquet promotions, allowing TMK to make necessary adjustments if an agency does not adhere to the standard promotional program.
The unattractive BP mechanism is not a primary factor contributing to low KPIs as of P3 2018 Interview insights indicate that while the mechanism significantly influences the current program, its effectiveness can vary Project owners can swiftly adapt to fluctuations in the competitive beverage market, as the mechanism's impact on performance is typically short-term and can be adjusted quickly based on market conditions.
The unpredictable nature of market factors significantly impacts BP P3.2018's performance, as competitors frequently implement various strategies to enhance their market share Given the instability of the market, project owners must acknowledge these challenges and leverage their accumulated experience to mitigate risks By collecting and analyzing market information, they can better navigate external influences, although it remains impossible to entirely eliminate their effects.
3.3.2 Illuminating distraction of sales team to Banquet program as the main problem
The primary issue affecting the performance of Banquet P3.2018 was the distraction from the ST program, as confirmed by most informants in the in-depth interviews This distraction significantly contributed to the failure to meet the targets set for Banquet P3.218 Three detailed reasons for this distraction will be discussed further.
ST plays a crucial role in program success, but losing focus on business priorities is a primary reason for promotional failures According to Blattberg, businesses are consistently seeking marketing and activation strategies to enhance market effectiveness and efficiency Trade promotion serves as a potent method for boosting sales volume and strengthening brand portfolios Mr Tran Ngo Vinh Phuc from RTMK highlighted the essential contributions of ST within the program.
ST plays a crucial role in the successful deployment of programs in the market A well-executed deployment by ST can significantly enhance the promotion performance of an otherwise standard program Conversely, even a high-quality program may underperform if the deployment lacks enthusiasm and effectiveness.
ST, the performance will become worst
According to Kotler et al., the sales process is crucial in guiding customers through four key stages: purchase intention, purchase, customer loyalty, and customer advocacy Sales teams typically establish their own funnel to manage activities in the initial two stages, which encompass prospecting, identifying customer needs, preparing and presenting solutions, negotiating contracts, and executing market activation strategies.
Mr Tran Ngo Vinh Phuc – RTMK comfirmed the main problem of program
Soc Trang's performance was notably poor, achieving only 27.5% of its target (110 parties out of 400), primarily due to a lack of focus on key programs and intense market competition In contrast, Can Tho met its target with a performance rate of 74.2% An Giang also struggled, reaching only 53.8% of its target (371 parties out of 690), while neighboring Kien Giang excelled with a performance of 93.1% Hau Giang, on the other hand, surpassed its target thanks to the dedication of its Sales Supervisor, who motivated the team to achieve their goals, resulting in his promotion to ASM this year.
The lack of qualified Caterers participating in the program has led to subpar performance, with only 38% of active Caterers in BP P3.2018, indicating that 62% failed to introduce any parties despite signing agreements Interviews revealed that many Caterers were unaware of the program's mechanisms and processes, highlighting poor communication from ST during the promotion phase Ingram (24) emphasized that effective sales hinge on customer relationship management and development, a sentiment echoed by Mr Le Thai Hung, the project owner, and Mr Phuc (RTMK).
ST's deployment of unqualified caterers diminished the appeal of the banquet, resulting in numerous instances where caterers failed to secure any bookings throughout the entire four-month program.
Understanding the program is crucial for ST's performance in BP; if ST loses focus, it can lead to confusion about information promotion This lack of clarity hampers ST's ability to effectively communicate the mechanisms and terms of agreement to Caterers A significant factor contributing to poor communication between ST and Caterers is the conflicting messages from ST and TMK As noted by Le (25), the discord between marketing and sales often stems from differing goals, perspectives, physical separation, and inadequate communication and coordination Mr Nguyen Thanh Tuan, the Channel Development Manager, also emphasized the importance of effective communication between ST and Caterers.
Selected caterers faced challenges due to ST's lack of clarity regarding the program's mechanisms, despite input from experienced sales staff, resulting in poor caterer selection Many caterers showed little interest in the program It is recommended that RTMK conduct a thorough re-briefing for ST to ensure a clear understanding of the program before the next phase of the banquet begins.
Levy (26) emphasized the significance of sales forces, promotions, and program delivery as crucial channels for effectively communicating promotional information to consumers Caterers play a vital role in the success of business performance (BP), and TMK should prioritize this aspect to enhance overall effectiveness Strengthening the relationship between ST and caterers is essential for increasing the number of participants (NoP) Mr Nguyen Khanh Vu, project manager at agency Trio, reiterated that the diversion of ST from BP is a key issue contributing to subpar BP performance.
Caterers play a crucial role in the performance of programs, with their selection significantly impacting outcomes The caterer list was provided by ST under the oversight of RMTK, but ST's distractions led to a subpar list of caterers To enhance banquet performance in the future, RMTK must address this issue effectively.
Potential cause’s distraction of sales team to Banquet program
The interviews reveal four key factors contributing to the distraction of ST from BP: (1) insufficient RTMK resources for effectively managing, deploying, and supporting ST, (2) an overwhelming number of activations for ST, (3) a narrow focus on monthly SV and the execution of excellent outlets, and (4) a misunderstanding of the roles and responsibilities of stakeholders involved in BP.
3.4.1 Lack of regional trade marketing to manage, deploy, push, check and support sales team
Many informants acknowledged that the absence of a dedicated RTMK role significantly contributes to the distractions faced by ST in BP P3.2018 The RTMK serves a crucial function as a link between TMK and ST, ensuring effective communication and information exchange Furthermore, the RTMK is a professional tasked with implementing trade promotions to guarantee that these activations have a meaningful impact in the market Additionally, the project owner from TMK, primarily based at the head office, is unable to adequately support all operational needs.
Effective planning and management of promotional programs are crucial for market success, with RTMK playing a vital role in trade promotion According to Kimball (30), enhancing promotion management is a key concern for marketing managers It is essential to have dedicated personnel responsible for deploying and managing these programs in the market RTMK will assist ST in developing and executing trade activities across regional markets, as confirmed by Mr Tran Ngo Vinh Phuc, who detailed the important roles of RTMK.
RTMK plays a crucial role in the business process by managing and supporting sales teams (ST) to enhance performance In regions lacking RTMK, the absence of daily guidance results in ineffective market operations Although RTMK primarily interacts with Area Sales Managers (ASM), I frequently communicate directly with sales representatives to provide timely assistance, as they often hesitate to seek information from their line managers Additionally, my daily market visits allow me to coach ST, address issues, and offer necessary support to improve their effectiveness in the field.
The main duty of RTMK is communication the trade marketing activities to sales.Le et al
Research indicates that enhancing the relationship between sales and marketing in large companies requires identifying dedicated individuals who can effectively influence this interaction Discussions with Mr Phuc from RTMK Mekong 1, along with supporting theories, highlight the critical role of RTMK in executing successful trade activations in the market Stakeholder interviews confirm that trade promotions cannot succeed without the involvement of RTMK Performance data from BP P3.2018 shows that regions managed by RTMK outperformed others, demonstrating the importance of monitoring and ensuring that all activities align with expected outcomes while optimizing resources Mr Le Hoang Long, ASM, emphasized the essential contributions of RTMK in achieving these results.
While other regions have designated individuals for RTMK responsibilities, HCM has lacked a dedicated person for this role This has resulted in communication challenges between ST and TMK Despite my efforts to manage these assignments, my daily tasks have hindered my ability to fully perform the RTMK duties for TMK It is clear that ST requires a dedicated individual to address these needs effectively.
45 dedicated in RMTK ToffT in HCM I did not have time to cover the role of RTMK as current
The conflict between TMK and ST arises from differing perspectives on the promotion program, with sales teams often attributing activation efforts solely to TMK Consequently, TMK is held accountable for the performance program The Banquet project owner faces the challenge of managing the program across over 30 provinces, making it difficult to connect with all STs to convey the detailed meaning of the business plan To address this, TMK requires support from RTMK to fulfill these responsibilities effectively According to Massey et al (31), enhancing interactions between marketing and sales members fosters "cross-functional relationships," which are essential for internal coordination and organizational efficiency.
A dedicated RTMK is more likely to engage in affiliative behaviors Mr Nguyen Phi Cong – Sales representative had met many difficulties when HCM region lacked of RTMK
In Ho Chi Minh City, we currently lack a Regional Team Member Key (RTMK), which has made it challenging to communicate effectively with Hung, the project owner, due to his busy schedule As a result, I faced numerous market situations without knowing whom to contact for resolution Having an RTMK, like other regions, would greatly enhance our support and streamline communication.
3.4.2 Sales team overloads with many activations
Webster (32) highlights the core conflict between sales and marketing as a struggle between short-term and long-term strategies, tactical versus strategic thinking, and differing metrics for success This conflict often leads to short-term sales goals taking precedence, which can undermine the role of marketing within the organization Additionally, there were numerous promotional programs being implemented alongside BP, revealing that TMK faced significant challenges in fulfilling responsibilities, particularly regarding the submission of an unqualified list of caterers.
ST failed to effectively plan the deployment of the program to caterers, lacking clear explanations of the program mechanics and insufficient support for caterers facing confusion about the information provided.
Several sales representatives have not fully understood the BP mechanism, as they prioritized their main tasks to save time Mr Tran Ngo Vinh Phuc from RTMK shared his observations regarding these issues.
There were one more reason that was in the month (quater) of the peak season as last phase, TMK kicked off many programs (Banquet, TLP, Display, Tactical promotion h
46 ect.) at the same time, also effect to the effectiveness Banquet because ST overloaded with many daily works and the paper works of many programs
Many sales teams report feeling overwhelmed by their daily responsibilities, leaving little time for effective trade activation Ford (33) noted that cross-functional collaboration often leads to organizational conflicts between functional and project managers, as well as among stakeholders with diverse backgrounds and differing perspectives on work, timelines, and objectives Mr Le Thai Hung, the project owner, also shared his insights on these challenges.
There were many promotion progams which ST had to deploy at the same time, led to overload with their daily jobs
Mr Phan Long Duyen - Sales supervisor confirmed that
Sales representatives faced overwhelming demands during the Tet season due to multiple promotional programs being implemented simultaneously Each program required extensive paperwork, which consumed significant time and resources As a result, sales teams struggled to effectively communicate and explain the detailed mechanisms to caterers, hindering overall efficiency and clarity.
Daily job overload is a significant reason why ST struggles to maintain focus on promoting the BP P3.2018 program through effective POS communication, including banners, standees, leaflets, and stickers If ST fails to implement these POS strategies effectively, Caterers, customers, and consumers will remain uninformed about BP, hindering overall market awareness.
In BP P3.2018, several outlets struggled with branding through Point of Sale (POS) despite TMK's comprehensive production and distribution of POS materials to various regions According to Lavack et al (34), effective communication of promotional information to customers is crucial Additionally, Mr Nguyen Khanh Vu, the Project Manager from agency Trio, provided valuable insights based on market observations.
Communication material had not well in branding some regions also lead to not much party in that region
3.4.3 Sales team only focuses on sales volume and excellent outlet execution
ALTERNATIVE SOLUTIONS AND JUSTIFICATION
Recruite regional trade marketing for regions
The BP performance in Q3 2018 fell short of the HVB management team's expectations, primarily due to the lack of RTMK, which significantly impacted overall performance To enhance Banquet performance and optimize all ToffT activations moving forward, recruiting RTMK to the region is crucial.
The sales structure analysis reveals that only two regions, Mekong 1 and MK2, have implemented RTMK, demonstrating superior Banquet performance in P3.2018, particularly MK2, which achieved an impressive NoP of 81% and an SV of 93% Insights gathered from stakeholder interviews, observations of the two RTMK regions, and literature consolidation indicate that recruiting RTMK is essential for enhancing performance across all ToffT activations in the future Currently, five regions—central north, central south, east north, east south, and HCM—lack RTMK, making their recruitment a priority to ensure the quality of all upcoming ToffT activations.
Strahle et al (49) highlighted that enhancing the sales and marketing relationship through collaborative and consultative bidirectional communications can significantly reduce cross-functional conflicts The RTMK plays a crucial role in conveying the necessity of trade activations to the sales team, gathering feedback, and addressing market challenges Additionally, RTMK is adept at evaluating activities and utilizing the results to recommend improvements for future trade activations, as emphasized by Mr Tran Ngo Vinh Phuc.
Recruiting and fulfilling RTMK across all regions is crucial for enhancing trade promotion and achieving a 100% solution to improve banquet performance.
Krohmer et al (50) said that increasing the cross functional dispersion of influence on marketing activities: Firstly, managers should increase the use of cross-functional teams
Integrating sales and marketing functions into the decision-making processes of cross-functional teams enhances their influence and boosts marketing performance Clearly defined job descriptions for employees across these groups promote greater cross-functional influence Additionally, establishing performance evaluation and reward systems aligned with team goals and the organization's vision is essential The primary responsibility of RTMK is to ensure the high-quality execution of trade activities, including TLP, Banquet, and Display, planned for the region, as emphasized by project owner Mr Le Thai Hung.
TMK and RTMK have to explain for ST see their role and value in program or even though push more pressure in their line manager
Figure 15: The recommended effectively structure with RTMK roles
(See RTMK’s job description in appendix 3)
The RTMK will be managed by the Head of Sales, establishing a crucial link between ST and TMK This structure ensures that RTMK effectively transfers insights from TMK to ST while also gathering feedback from ST to enhance future programs.
The 56 program aims to enhance TMK's capabilities, enabling RTMK to operate independently This structure facilitates the implementation of tactical promotions, allowing for swift responses to competitors in their regions As a result, it helps adapt to the increasingly competitive and dynamic beverage market.
RTMK plays a crucial role in ensuring that the promotion program is effectively implemented by the ST According to Guenzi et al (51), the Marketing department holds full responsibility and control over all promotional and event activities, commonly termed as “marketing.” However, certain processes fall under the purview of the sales department rather than marketing.
- Channel development manager shared some contributed opinions
RTMK has priority to solve RTMK have to make clear the role of each parties and transmit the soul of Banquet for Sales
RTMK plays a crucial role in monitoring and reporting all trade activities in the region According to Guenzi et al (52), integrating sales and marketing is a key aspect of market-oriented organizations Mr Le Hoang Long, ASM, emphasized the importance of RTMK in the region, highlighting its necessity for effective trade management.
RTMK has to show off the benefit and contribute from BP to ASM, who will push and force ST have strongly action in market
Recruite new RTMK in HCM for the effectiveness Work with ASM, especially with RCM to show them make clear about the program
RTMK plays a crucial role in communicating trade marketing activities to ST, leveraging a deep understanding of ToffT shoppers to enhance marketing strategies and promote ToffT activities effectively According to Matthyssens et al (28), the success of marketers hinges not only on functional excellence but also on cross-functional process competence to ensure effective implementation of marketing ideas Mr Phan Long Duyen, Sales Supervisor, emphasized the necessity for ST to receive support from RTMK, not just for the Banquet program but also for other ToffT activations.
Deploy RTMK to support us as a bridge to connect ST, agency and TMK
Ensure high quality execution of all ToffT activities planned for the region
Communicate, manage, deploy, push, check ToffT activities to sales
Be responsible for tracking and reporting on all trade activities in the region h
Execute activity briefs and project plans to ensure on-time in-full deliver
Know how to evaluate activations and uses the result to recommend improvements for future
To bring into play effectiveness in long time
Take a long time to recruite RTMK because of the budget and the HR strategy
The expense so high because RTMK is high qualified HR
Take time for new structure become effective in region
Estimating expenses for RTMK five regions (HCM, East South, East North, Central South, Central North)
Table 8: Estimating the expenses for five RTMKs per year
No Description Quality Cost per year (vnd) Total cost per year(vnd)
Develop the application management for Banquet program
The rapid growth of smartphone and application users has made mobile applications an increasingly attractive platform for marketing and promotional communication (Kim et al., 53) As smartphones continue to diffuse and user numbers rise, advertisers must recognize the potential of applications as effective tools for marketing communication, customer connection, and consumer engagement Mr Le Thai Hung, the project owner, shared insights on the essential app needed to enhance the performance of Banquet in the future.
From my point of views, I used to think that TMK should develop new mechanism for
BP, which a little depend on ST and decrease their role in program compairing to previous phase Eventhough, we will develop application with decreasing ST role h
TMK is set to pilot a new application in select provinces to enhance the execution and operation of its program By developing a new mechanism that leverages this application, TMK aims to reduce its reliance on the current ST framework In the technology sector, TMK will explore innovative solutions to streamline processes, enabling easier program control through the application and minimizing manual intervention Both TMK and ST will concentrate on improving communication to raise awareness among caterers and end consumers about the benefits of the program.
Companies are increasingly adopting mobile applications as a vital communication channel to attract new customers and enhance brand loyalty among existing ones (Kim et al., 54) Customers leverage various app features for tasks like information searching, entertainment, bill payments, and navigation To boost brand awareness and improve customer experience, businesses should prioritize mobile app development, especially to meet the high expectations of younger consumers regarding mobile technology Implementing an application can streamline processes, saving time in market execution and enhancing program tracking and management For example, a Banquet application can automate tasks such as gathering information from incoming calls, delivering event details to project leaders and managers, capturing event images, and generating reports efficiently.
Advantages of using application management
Easy to manage execution program on market
Reduce the workload and save more time for employees on market
Adapt quickly to fluctuated market
Cost for application is so quite reasonable compared to recruit RMTK
Improve performance in short time
Disadvantages of using application management
Apply new application can be solve apart of the problem because the main cause is mainly happen from the lack of the roles of RTMK
Need more time to training for all stakeholders how to use and manage new application
Most of agency employes are temporary which are high in-out ratios h
Banquet is managed from two agencies (application agency and execution agency) which will lead to unsure in confidential information program or conflict in operation
Required employees and delivery man must to be equipped smartphone
Table 9: Estimating the cost of application management for Banquet per project
No Description Cost per project
1 DIS core – android App 50,000,000 Core functional DIS
2 Android App for hotline staff 30,000,000 Used by delivery man
3 Android App for delivery 24,000,000 Used by hotline team
4 Web App for area supervisors 18,000,000 Used by area supervisors
5 Web online report for management team
36,000,000 Used by management team following structure
6 Server, device, and technical support
7 CRM - hotline 45,000,000 Incoming and outcoming call
Source: Quotation from Agency Imark 2018 Proposal application Banquet program is presented in appendix 4 h
ORGANIZATION ACTION
The Banquet program is a crucial activation for ToffT and HVB, reflecting current needs and future potential Developed by the trade marketing team based on customer insights, the program was initially piloted in Cu Chi district and Tien Giang province in 2016, later expanding to 30 provinces by P3 2018 Despite significant growth, challenges arose, particularly in meeting KPIs during P3 2018, necessitating effective and practical solutions After evaluating various options based on cost, feasibility, and overall benefits, decision-makers have determined that prioritizing the recruitment of dedicated RTMK for all regions is the optimal solution to ensure the quality of the Banquet program and future ToffT activations.
Objectives Action plan Department involved
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
- Evaluation the nescesssary of RTMK of each region
- Process and Control Improvement Recruitment - Prepairation job description
- Posting recruitment information on public communication
Probationary period - Evalutation the ability of potential
RTMK via KPI in probationary period
- Sales Deployment RTMK to regions
- Deploying qualified RTMK to regions
Job description RMTK is presented in appendix 3 h
CONCLUSION
In 2018, HVB experienced remarkable growth, achieving a 15 million hectoliter increase in sales volume (SV), marking a 13.9% rise compared to the previous year, while the overall beer market grew at an average rate of 5% This outstanding performance was driven by the collaborative efforts of various departments, particularly the TMK department, which executed numerous successful activations Key initiatives included ToffT (TLP, Banquet, Fridge, etc.), enhancing cold availability and customer loyalty in traditional and modern on-premise settings, as well as improving shopper experiences in modern off-premise channels through strategies like pack 06 and increasing purchase frequency and volume.
In the context of ToffT, BP plays a crucial role in enhancing both brand image and sales volume for HVB However, in 2018, the Banquet Program (BP) underperformed, particularly in P3.2018, achieving only 68% in number of participants (NoP) and 86.1% in sales volume (SV) compared to key performance indicators (KPIs) This underperformance highlights the need for improvement in BP's effectiveness To address the shortcomings of BP P3.2018, it is essential to identify the underlying issues and determine their root causes, enabling the development of suitable alternative solutions This study, titled “Enhancing Banquet Program Performance in Trade Marketing – A Case of Heineken Vietnam Brewery,” aims to clarify these key points.
The Banquet P3.2018 symptom failed to meet the key performance indicators (KPIs) for both NoP and SV, negatively impacting the program's return on investment (ROI) and not aligning with the expectations of the project owner and management team.
Secondly, there were many problems lead to low performance of BP P3.2018 such as (1) distraction from ST to BP, (2) unqualified agency service, (3) unattractive mechanism of
BP and (4) unpredictable market factors However, after carefully analysis, determinization, and validation: Distraction of ST to BP is identified as the most crucial problem among four factors
In-depth interviews with nine stakeholders, along with a thorough review of existing literature on the promotion management process from trade marketing to sales, have identified four key issues affecting effectiveness These include: (1) insufficient real-time marketing knowledge to manage, implement, and support sales tactics, (2) sales teams being overwhelmed by numerous activations, and (3) a lack of streamlined communication and coordination among stakeholders.
ST only focuses on monthly SV and EOE, (4) ST mis-understands the role of related parties in BP
Fourthly, the most important cause leads to distraction of ST to BP is validated as lack of RTMK to manage and deploy BP in region
To address the issue effectively, two viable solutions have been identified: (1) recruiting RTMK for regional support and (2) developing a new application for BP After careful evaluation, it is clear that recruiting RTMK for regions stands out as the most effective solution for enhancing overall performance.
BP performance but also for all ToffT activations in future h
SUPPORTING INFORMATION
This thesis utilizes two types of data collection to analyze BP's performance The first type is secondary data, gathered from various sources including HVB’s internal reports, agency reports (such as TVE, G.Solution, TMAR, and Trio), market analyses, sales reports, and stakeholder meetings This data supports academic theories and provides insights into BP's key performance issues The second type is primary data obtained through qualitative research, primarily through in-depth interviews By combining both primary and secondary data with relevant literature, the study aims to propose effective solutions to address the main causes of performance issues and enhance future performance programs The interviews involved nine participants, categorized into four main groups.
The research aims to investigate the factors contributing to the poor performance of BP P3.2018, specifically regarding its failure to meet key performance indicators (KPIs) such as Number of Participants (NoP), Satisfaction Value (SV), and the qualification of caterers Through interviews with nine relevant informants across four groups within BP, the study identifies the primary issues and clarifies their underlying causes, ultimately proposing effective solutions to address these challenges.
Interviewees: nine people from four different groups as below
RTMK Manager: Tran Ngo Vinh Phuc (1A)
Project Owner: Le Thai Hung (1B)
Channel Development Manager: Nguyen Thanh Tuan (1C)
Project Manager: Nguyen Khanh Vu (2)
Sales Representative: Nguyen Phi Cong (3A)
Sales Supervisor: Phan Long Duyen (3A)
Area Sales Manager: Le Hoang Long (3B)
Outlet Bich Lien: Vo Cu (4A)
Outlet Yen Duong: Truong Van Duong (4B) h
Duration for each interview: 30 – 40 minutes
No Key session Objective Timing
To understand their related roles in BP P3.2018
2 Explore the potential central (main) problem and determize the root cause
To find out the main problem that lead to poor performance of BP P3.2018 symptom, determize the real cause of the problem
To discover the best solution to improve performance BP in 2019
No Interview questions First group
1 Would you please shortly introduce about yourself (your full name, age, roles in BP ect.) x x x x
2 How do you think about the contribution of
BP to the HVB’s performance? x x x
3 Would you please share your opinions about the performance of Banquet P3.2018? x x x
4 Would you please share some reasons
(potential problems) lead to the BP P3.2019 has not met the target? x x x x
5 Would you please share some reasons lead to poor Caterers performance? x x x x
6 From your viewpoints: What is the most important (main) problem lead to poor performance of BP P3.2018? Why do you think so? x x x h
7 What are the causes of the BP P3.2018 not achieve the target? And which is the main cause? x x x x
8 What are the solutions that TMK has taken to improve the Banquet performance in 2019? x x x x
9 From your point of views: what is the most appropriate quickly solution to solve the problem? x x x x h
Address: Floor 19, Vietcombank Tower, 05 Me Linh Square, Ben Nghe Ward, District 1, HCM City
Interviewer: Tran Ba Khoi (T.B.Khoi)
Interviewee: Tran Ngo Vinh Phuc (T.N.V.Phuc) - Group 1 (1A)
Title: RTMK Manager in Mekong 2
Working experience: More than eleven years working in distributor development team and one year in RTMK HVB
Status: currently is working for HVB
T.B.Khoi: Good morning Mr Phuc Would you please introduce something about yourself and specific position which you are working in HVB
T.N.V.Phuc: My name is Tran Ngo Vinh Phuc I had more than five years working for
Foster’s and 5 years in DHL Express I have been 12 years to work in ST as role distributor development In one year ago, I have transferred to RTMK to now
T.B Khoi has over ten years of experience in the sales department, providing a deep understanding of ST insights With more than a year spent in RTMK, he has successfully implemented various programs from TMK to ST Khoi is asked to share his thoughts on the contribution of BP to HVB's overall performance, specifically requesting detailed data from his region.
T.N.V Phuc highlights the significant contribution of BP to HVB's performance In larger provinces, the average sales volume (SV) per outlet or restaurant is around 200 cases, while individual parties typically consume only 25-30 cases, with few parties matching the monthly sales of HVB products at these outlets Additionally, the investment required for Banquet programs is relatively low compared to restaurant investments, which include sales promoters, point of sales, promotions, and contracts with outlets, making it an area of strong interest for ST In smaller provinces, the SV of a single party can sometimes equal that of an outlet's monthly sales In such instances, ST enhances value for significant SV parties by providing additional support, such as bonuses of cartons, wall clocks, and travel bags ST remains highly enthusiastic about the Banquet program and its potential.
The contribution of 68 to the total sales volume (SV) of HVB may seem modest; however, these sales directly reach end consumers, unlike other programs such as Trade Loyalty, which primarily target retailers like sub-distributors and grocery shops The goal of HVB's program is to convert consumers from competing brands such as Sabeco, Budweiser, and Sapporo to HVB products I estimate that 40%-50% of new purchases (NoP) have shifted from competitors like Sagota and Sabeco to our offerings due to this initiative Additionally, banquets play a crucial role, as an average party hosts around 200 guests who are likely to consume HVB products, providing a significant opportunity to introduce our brand to a wide audience at a minimal cost.
T.B.Khoi inquired about the performance of BP P3.2018, to which T.N.V.Phuc responded that while the overall performance in Mekong 2 was acceptable, certain provinces like Soc Trang, An Giang, and Can Tho showed poor results He emphasized the need for significant improvements in the next phase, expressing dissatisfaction with the quality of participating caterers Phuc noted that he expected over 75% of caterers to meet qualifications, but found that only about 50% actually did.
T.B.Khoi: Would you please share some reasons lead to the Banquet P3.2019 has not met the target?
Several factors directly impact the performance of BP P3.2018 Firstly, the program's mechanism lacks attractiveness, as some DIP, SDIP, and TLP Caterers have numerous parties but lack incentives to promote hotline events Despite recognizing the competitive advantage of introducing Sabeco, they remain unmotivated Secondly, the focus on the program is insufficient; for instance, Soc Trang has only reached 27.5% of its target, achieving just 110 parties out of the expected goal.
Can Tho achieved a strong performance, hitting 74.2% of its target with 400 parties, largely due to the robust HVB brand, despite limited attention from ST In contrast, An Giang struggled, reaching only 53.8% of its target with 371 parties out of 690 Neighboring Kien Giang performed notably better at 93.1% Hau Giang met its target thanks to the dedication of its Sales Supervisor, whose motivation inspired the team to succeed, resulting in his promotion to ASM this year.
(3) One more reason is the market competition like in Soc Trang is not achieve 27.5% target (actual 110 parties/target 400 parties) because consumers said that the price of beer h
69 is so expensive eventhough the HVB mainstream brand such as Larue, Larue Special ect compare to Saigon Larger 350ml, 450ml ect
One significant issue is the lack of qualified agencies, which only serve parties if caterers call the hotline to reserve them at least 48 hours in advance If agencies were to enhance their services by allowing reservations at least 24 hours prior, the number of parties booked could increase by over 30% Important events like weddings often require orders to be placed two days in advance, while other occasions, such as birthdays or house openings, typically do not follow this 48-hour rule This inconsistency can lead to many parties failing due to non-compliance with the program's requirements Additionally, providing vouchers and uniforms featuring the HVB logo would enhance the professionalism of agencies during delivery.
Including: From my point of view ST atitude is the key factor effect to BP performance
Poor performance among caterers can often be attributed to the allocation process When numerous caterer quotations are provided, there is a tendency to include unqualified caterers in order to meet the required list This practice can lead to significant issues during the selection phase, ultimately affecting the overall quality of catering services.
T.B.Khoi: What is the most important problem lead to poor performance of BP P3.2018?
Why do you think so?
T.N.V.Phuc: I think RTMK have the most important roles to effect the BP performance in briefing, managing, deploying, tracking, evaluating, pushing… to ST in daily works
ST plays a crucial role in executing market programs, as effective deployment can significantly enhance promotional performance Conversely, even a well-designed program can falter if ST's execution lacks enthusiasm For instance, Bac Lieu province exceeded its target by 152% (664 actual vs 435 target) due to ST's aggressive approach, which included additional incentives like sales promoters and promotional items such as wall clocks, travel bags, and complimentary beer.
T.B.Khoi: What are the causes of the Banquet P3.2018 not achieve the target? And which is the main cause?
T.N.V.Phuc: I think RTMK have the most important role in the BP Everyday I have to manage, follow, track, support, correct and push more pressure to ST for good h
70 performance In some regions do not have regional, nobody push ST every day so the work is not get through and not smooth on the market
RTMK primarily collaborates with ASM, but I frequently engage directly with the sales team to provide timely support, as ST requires quick assistance Additionally, sales representatives often hesitate to seek further information about the program from line managers.
One more thing, I have to visist market in daily to give out quickly action with ST such as coaching on market, supporting in their working ect
Many sales representatives often overlook their responsibilities, assuming that program management is solely the agency's duty It is essential to clarify the distinct roles of sales and the agency in program execution Sales representatives should not shift all responsibilities to the agency; if the agency struggles with activation, it is crucial to reassess the sales team's role in the business process.
During the peak season, particularly in the last phase of TMK, the initiation of various programs such as Banquet, TLP, Display, and Tactical promotions significantly impacts the effectiveness of the Banquet This is primarily due to ST being overwhelmed with daily tasks and the extensive paperwork associated with these programs.
ST prioritizes EOE and tactical promotions due to their monthly incentives and benefits, which often leads to incomplete daily tasks As a result, they struggle to allocate time for Banquet-related responsibilities.
T.B.Khoi: What are the solutions that TMK has taken to improve the Banquet Performance in 2019?
Roles and responsibilities of related departments in Banquet program
Appendix 1: Roles and responsibilities of related departments in Banquet program
Outlets, including banquet catering, sub-distributors, beverage retail shops, and grocery shops, will be automatically extracted from the distributor information system in accordance with program requirements and delivered to ST for validation.
Clarification on which other programs can be joined by outlets participating in BP or Wedding program
Submitted list of Caterers cannot be changed after programme kick off (no additional Caterers)
ST provide list of Caters according to the allocation outlined in this document
Automatically generate agreement must be printed with full detail information (included bank account) h
Agreement must be submitted within one week from the date kick off It is not accepted any Caterers not in list
Agreement must be signned in two copies, and Caterers have to hold one copy (with outlet code)
Parties can be only registered by Caterers from the list (who signed agreement), by directly calling the agency hotline
RTMK, ST cannot register parties by calling hotline, sending sms or email to the agency This practice is not allowed
Caterers are required to remember their Outlet ID, which is printed on their agreement It is essential for them to mention this Outlet ID whenever they contact the hotline for assistance.
Rule of program: Caterers must call to hotline at least 48h before the party take place h
Communication material Banquet program phase 3.2018
Regional trade marketing – Job description
To enhance the effectiveness of the ToffT channel, it is essential to implement targeted TMK strategies, platforms, and plans that align with established KPIs This approach aims to drive successful behavior changes at the point of purchase and consumption within the ToffT channel.
Key Roles of the Regional Trade Marketing:
The key role is ensure high quality execution of trade activities planned for the region
RTMK is responsible for tracking and reporting on all trade activities in the region
Communicate TMK activities to sales
Support regional sales team in development and execution of regional trade activities
Manage the logistics and deployment of all promotion materials required for regional activities
RTMK is also responsible for ensuring that PICOS is cascaded down and executed by the Sales representatives and DSMs
Demonstrate knowledge of the Opco brand portfolio, channel strategy priorities and objectives
Understand the process of channel activity development, demonstrating knowledge of policies and procedures
Execute activity briefs and project plans to ensure on-time in-full delivery
To monitor intermediate results to ensure activities are on track to deliver expected results, optimizing resources and tools where relevant
Know how to evaluate activities and uses the result to recommend improvements for future activations
Demonstrate understanding of shoppers and customers behaviors specific to the region
Sales managers, regional and global trade marketing team
Activity execution and evaluation on time in full
At least university degree in marketing, business administration, economics
Knowledge of professionally advertising, sociology and culture
At least 5-year working experience in the relevant fields in beverage industry or FMCG
- Preferable in trade marketing session, including (but not exhaustive to):
Route to market and customer understanding
Good negotiation, communication, and presentation skills
Open-minded and enthusiasm, creative thinking,
Problem-solving skill and analytical thinking
Conversation with fluently in spoken and written English and PC such as all microsoft office and Photoshop
Appendix 4: Proposal application management for Banquet program h
CONTENTS OF PROPOSAL APPLICATION MANAGEMENT
1 Overview 104 1.1 Objectives 104 1.2 Business process 104 1.3 System architecture and business logic 104 1.4 System environment 106
2 User interface mock-up 106 2.1 Login and logout from the system 106 2.2 Main screen and dashboard 108 2.3 Promotion 109
2.3.1 New promotion 109 2.3.2 Caterers for a selected promotion 112 2.3.3 Promotion list 112 2.4 Caterer management 114 2.5 Party order management 115
2.5.1 Party order list 115 2.5.2 Order detail 117 2.6 User account 120 2.7 Report 120
Banquet catering is a thriving industry in Vietnam, particularly in rural areas Over the past year, Heineken Vietnam Brewery has launched various trade promotion initiatives aimed at boosting the visibility of banquet caterers and enhancing sales volume.
The number of Banquet is increasing that need to have a professional system to manage data, execution process and to report efficiently
A comprehensive banquet management system must ensure thorough data capture, timely information updates, and effective field checks for all stakeholders involved, including HVB and third-party agencies during execution.
1.3 System architecture and business logic
For the first installation, Banquet management system integrated with basic modules as following: Promotion, Caterers, Orders, Dashboard, Reports and Data Setting h
This module gets outlet data from SIS system whenever user creates a promotion program and select Caterers to register for the program
Commonly Caterers are in ToffT outlets (including Sub-distributors, Beverage retail shop, Grocery shop plus, Grocery shop, Banquet catering …)
To generate Banquet promotion program, including
Set up mechanism for the program
Select Caterers to register program
This module is only for setting promotion program data, not include promotion approval process
Support hotline team to take order from the system and submit to the delivery team
Through the APP installed on mobile phone (or tablet), delivery team will deliver vouchers/gifts to party owners and perform acceptance for orders at the party
Auto refreshes data periodic 5-10 minutes
Notify new data or updated information
Master data setting is inevitable module for every system
Allow system admin to set up master data
Set up voucher delivery structure and assign deliver staff
The system will support to client in two sides Depend on user’s role, user can access through web address on computer, mobile phone or tablet
For device, user can work in both online mode and offline mode
Device access data online on web server
Device is at offline working status and data is locally persisted on device In additionally, manually users can synchronize data to web server through internet whenever needed
The mobile version has to adapt for user who used on ipad, iphone, and android devices as well as on PC and Mac
2.1 Login and logout from the system
Access system, a login screen displayed h
To log in, enter your username and password, then click on the login button or press enter Upon successful authentication, you will be directed to the main screen, labeled “2.2 Main screen and dashboard.” Users can access system features based on permissions set by the administrator, typically outlined under “3 Security level.”
To validate your username, please provide an email address or phone number If you forget your password, simply click on "reset password," and a new default password will be sent to your email or phone It's important to change this default password immediately to continue the process.
After login, the main screen will display and notify information pushed on dashboard for delivery user to tracking their progress
Click/touch on each tab to jump to the corresponding module
To call a support for system problem
A panel to show party orders that were inputted by hotline team and were assigned by area supervisor
Click/touch on each order to review order detail Refer to “2.5 Party Order Management”
A panel to show delivered orders that user has to deliver voucher to party owners h
Click/touch on each request to review order detail
Refer to “2.5 Party Order Management”
A panel to show deliver user’s performance for the current promotion, including:
KPI: the target party number of user, assigned by area supervisor for each Banquet promotion program
Utd: show the delivery order number up to date
% delivered: the progress versus target
Time gone: % delivered versus timeline of the promotion program
A panel to show the list of orders that failed in delivery
To reload pushed information from server
Area sales supervisor can review the data of each his member and select “All” to review all data of his area
To log-out and show back log in screen
HVB marketing admin will take over generating a Banquet promotion program base on timeline and mechanism The mechanism is also flexible to be changed h
ID ID of proposal (auto increase)
Rule: P + province ID + xxxxx Promotion Name of promotion program
Item “Incentive”: represent for incentive program such as target incentive, retailer incentive, loyalty, tactical, etc
Item “Display”: display program including display by finish good or empty carton or dummy carton
For Banquet promotion program, “ Incentive” always selected From to
Objective Give objective of promotion
Detail Input details for agenda of promotion
Click on button “+” to set target for product items Click “Select Item” screen will show user to select item and input minimum volume target for each item
Select “Any SKU” means that the target apply for any SKU (in cases)
If the target apply for any SKU and allow to combine SKUs, then tick on “Allow combination”
To meet the target order volume of 20 cases, customers can combine any SKUs For instance, an order consisting of 10 cases of Heineken and 10 cases of Tiger fulfills the requirement for payment.
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
For gratis payment, can select multiple SKU for payment
Select account code to charge for the promotion Default value will be “Mkt Off Trade”
Select the scope to deploy the promotion program Can select multiple items for outlet group, outlet type, region, area
To open the screen “Banquet Caterer List” to select caterers for the promotion
After completely selection, Caterer list of the promotion will be shown on the tab “Caterers for a selected promotion”
Refer to “2.3.2 Caterers for a selected promotion”
To back to screen “ List of promotion”
Refer to “2.3.3 List of promotion” h
ID ID of proposal (auto increase)
Rule: P + province ID + xxxxx Proposal name Name of proposal
Area The area will be deployed the promotion
Province The province where will be deployed the promotion
Sub segment Outlet types will be deployed promotion
Request date The date when proposal is submitted
Mechanism of promotion 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 which department
Payment Actual payment depends on mechanism and actual volume
Input key word and press on “Filter” to filter promotion that existing any field value matching with key word
To export the current promotion list into excel file
To add new banquet promotion h
This screen will include all outlets of ToffT that interfaced from SIS
These fields have to matching with SIS system
Input key word and press on “Filter” to filter caterers/outlets that existing any field value matching with key word
To export the current caterer list into excel file
To add new outlets if needed h
When coming to “Order”, it shows order list of the current promotion program
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
“Đám cưới”, “Đám giỗ”, “Thôi nôi”, “Sinh nhật” ect
Date & Time Date and time when the party happen
Status Status of order, including
New: new order and not yet verified by hotline team
Verified: order has been checked and verified by hotline team
Waiting for delivery: order has been submitted by hotline team and is waiting for voucher delivery
Delivered: done for voucher delivery
Completed: order paid completely for both party owners and caterers
Cancelled: party owner cancel the order Order quantity Quantity of SKUs are ordered by party owner
Actual delivery Actual delivery inputted by deliver or hotline team
Phone Contact number of party owner
House, street, ward, district, province
Select a promotion program to show order list of the selected promotion program
Default value will show the latest promotion program
Filter order list by selected status Input key word and press on “Filter” to filter orders that is existing any field value matching with key word
To export the current order list into excel file and “Bang xac nhan khuyen mai” for every party
Refer template as the file “ Form A-Xac nhan khuyen mai.xlsx”
Refer to 2.5.2 for detail order
Inputted by hotline team only Caterer Select a Caterer that supply beer for the party order
Inputted by hotline team only Banquet owner Input name of party owner
Inputted by hotline team only Phone Contact number of party owner
Banquet type Type of banquets Include popular party in Vietnam such as
“Đám cưới:, “Đám giỗ”, “Thôi nôi”, “Sinh nhật” ect
Inputted by hotline team only h
Address of the party location Refer to sales structure in SIS Inputted by hotline team only Order date When party call to take order
Inputted by hotline team only Date of party & time Date and time when the party happen
Inputted by hotline team only Select when user change status of order
New: new order and not yet verified by hotline team
Verified: order has been checked and verified by hotline team
Waiting for delivery: the order has been submitted by hotline team and is waiting for voucher delivery
Delivered: done for voucher delivery
Rejected for review: hotline team reject the order for review
Completed: order has been paid completely for both party owners and Caterers
Cancelled: party owners cancel the order Order quantity 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
House #, street, ward, district, province
Select product item and input quantity Order quantity: quantity at the beginning Actual: actual quantity delivery
“-”: to remove an item Auto show prize base on order detail iputted h
To open screen to scan QR code printed on voucher
In case of scanning failure, user can input voucher code as well
To open screen to take photos Limit at 5 photos
When capturing photos, the system have to get GPS information and date, time automatically (both online and offline mode)
To vew photo on google map via GPS information
Input key word and press on filter orders that is existing any field value matching with key word
To export the current order list into excel file
To add creat new order
To save order rmation inputted
To back the screen “order list” h
User ID 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
To create or update a user account, simply save the information, and the account will be displayed in the user account list below Additionally, you can delete any selected user account as needed.
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 thanh toan chi phi-Caterer.xlsx” h
Banquet performance detail - Refer to “Banquet daily report.xlsx” and “Banquet weekly report.xlsx”
Define user role and securrity accessing level depend on businedd function
The following is matrix to setting user authorization
View: user can view functional sheet
Add: user have authority to add new data
Edit: user have authority to edit (add or delete) data
User interface need to be compatible with any devices (tablet or mobile phone).And also support multiple user language as well (at least Enghlish and Vietnamese)
The initial development phase outlines essential business requirements that encompass both business logic and system architecture It highlights the technical architecture crucial for software developers to create a sustainable system designed for long-term use, integration, enhancement, and maintenance Additionally, it emphasizes the importance of interfacing with other local HVB systems and global systems.
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