(Tiểu luận) external opportunities and threats of the companyopportunity

II.EXTERNAL OPPORTUNITIES AND THREATS OF THE COMPANYOpportunityBeer is a popular alcoholic beverage in Vietnam.Vietnam ranks third in Asia in terms of average alcohol consumption per per

TRƯỜNG ĐẠI HỌC MỞ THÀNH PHỐ HỒ CHÍ MINH

KHOA ĐÀO TẠO ĐẶC BIỆT

☻☻☻☻☻

MID – TERM ASSIGNMENT TOPIC: STRATEGICS FOR TIGER BEER

COURSE: STRATEGIC MANGENMENT

Lecturer: ThS Huỳnh Kim Tôn

Group 9

Members

Lê Thị Bích Thủy 2054012289

Nguyễn Hoàng Lan 2054012151

Phan Minh Việt 2054012373

Nguyễn Triệu Vỹ 2054012391

Nguyễn Trần Quỳnh Như 2054012229

Thành phố Hồ Chí Minh, 20/08/2023

Table of Contents

I VISION, MISSION, OBJECTIVES AND STRATEGIES 3

II EXTERNAL OPPORTUNITIES AND THREATS OF THE COMPANY 5III BUILD COMPETITIVE PROFILE MATRIX (CPM) 6

IV BUILDING THE EVALUATION MATRIX OF EXTERNAL FACTORS (EFE) 7

V IDENTIFY THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ORGANIZATION 9

VI IFE MATRIX CONSTRUCTION 9VII PREPARE APPROPRIATE SWOT, BCG, IE MATRIX OUTLINE THE PROS AND CONS OF ALTERNATIVE STRATEGIES 13VIII STRATEGIC PROPOSED 16

IX TIMETABLE 18

INTRODUCTION TIGER BEER

In Vietnam, Tiger beer is one of the products of Heniken Vietnam - Tiger isone of the most loved beer brands Products created by Vietnamesebartenders, exclusively for Vietnamese people Tiger Beer has two mainproduct lines: Tiger Blue Lager and Tiger Silver Crystal

Tiger Soju Infused Lager: Launched in April 2023, anew premium beer line with a signature refreshinglager and a smooth sweet soju aftertaste Tiger SojuInfused Lager is inspired by the unique culture ofKorea

I VISION, MISSION, OBJECTIVES AND STRATEGIES.

Vision: To be a leading, proud & responsible brewer in Vietnam

Mission: Tiger is committed to bringing to the community top quality

beer and beer with its own respect, love and high responsibility for humanlife and society

Sustainable and responsible business Heniken products including Tigerpursues the commitment of “Vì một Việt Nam tốt đẹp hơn”, and has beenhonored by the Vietnam Chamber of Commerce and Industry (VCCI) in the

HO CHI MINH CITY OPEN UNIVERSITY

Top 3 Most Sustainable Manufacturing Enterprises in Vietnam (in the

manufacturing sector) for 6 consecutive years from 2016 to 2021 Become

the leading symbol of belief in Vietnam about nutrition and health

products serving human life

Sustainable development strategy is one of the strategies that businesses

pay special attention to and focus on Tiger beerproducts are committed to develop with the globalEverGreen strategy

(Tiger, n.d.)

NOLandfill

98%

Plastic safes arereused for 5-10years andrecycled at theend of their life

98%Beer bottlescan be reused

up to 30 times

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II EXTERNAL OPPORTUNITIES AND THREATS OF THE COMPANY Opportunity

Beer is a popular alcoholic beverage in Vietnam

Vietnam ranks third in Asia in terms of average alcohol consumption perperson

Diversified product lines to suit the needs and preferences of Vietnameseconsumers such as Tiger Crystal, Tiger Radler, Tiger Black, Tiger White.Total retail sales and industry revenue will increase by 17.5% in 2022

A diverse media network in Vietnam tends to develop such as TikTok,Instagram, etc

Vietnam has a golden population structure, rapidly increasing income,high demand for entertainment and tourism, creating favorable conditionsfor the beer industry to develop

Vietnam is the largest beer consuming country among 11 countries inSoutheast Asia, with beer consumption as of 2022 is 3.8 million liters/year,accounting for 2.2% of the world market

Vietnam's population is increasing at an average rate of 1.14%/year

High cost of beer production due to rising prices of raw materials such asbarley, hops, water

Prices escalate, consumers tend to tighten spending

The excise tax policy for beer is higher than that of other beverages

In Vietnam, alcohol is one of the top 3 causes of increased traffic accidentrate among men aged 15 to 49

The price of input materials such as barley has increased

III BUILD COMPETITIVE PROFILE MATRIX (CPM)

Based on CPM analysis, Tiger is the strongest beer brand compared to theother two beer brands, Sabeco and Sapporo with a total score of 3.55 withpositive strengths: Brand reputation, product quality, marketing On theother hand, Sabeco is a competitor that needs to be cautious whenreaching 3.48, closely following Tiger and having the same dominancewith the following factors: Brand reputation, product quality, pricecompetitiveness , marketing The competitor with less favorablecompetitiveness compared to Tiger and Sabeco is Sapporo with a totalscore of 3.17 with relative strengths in: Brand reputation and productquality Therefore, Tiger needs to have strategies to overcome theweaknesses as well as strengthen the strengths to help the brand becomemore and more trusted beer brand in Vietnam in particular as well asinternationally .

To be more specific, the most important factor among these brewers is theability to compete on price with a weight of 0.16, with Sabeco reaching arating of 4; Tiger and Sapporo have ratings of 3 and 2 respectively Fromthis, it can be drawn that in the Vietnamese market in particular,customers prefer to choose products with cheaper prices, but not because

of these factors others are overlooked

The second most important factor with a weight of 0.14 at the same timeis: Brand reputation and product quality Both Tiger and Sabeco have arating of 4 This is a strong point for these two brewers in continuing tomaintain strategies that strongly target consumer psychology andreliability However, with Sapporo, this beer company needs to pay moreattention and have solutions if it wants to survive in the Vietnamesemarket for a long time

IV BUILDING THE EVALUATION MATRIX OF EXTERNAL FACTORS (EFE)

EFE MATRIXOPPORTUNITIES Weight Rating Weighted Score

1 Beer is a popular alcoholic beverage in

2 Vietnam ranks third in Asia in terms of

average alcohol consumption per

3 Diverse product lines to suit the needs

and preferences of Vietnamese

consumers such as Tiger Crystal, Tiger

Radler, Tiger Black, Tiger White

4 Total retail sales and industry revenue

will increase by 17.5% in 2022 0.07 3 0.21

5 The diverse media network in Vietnam

tends to develop such as TikTok,

6 Vietnam has a golden population

structure, rapidly increasing income,

high demand for entertainment and

tourism, creating favorable conditions

for the beer industry to develop

7 Vietnam is the largest beer consumer

among 11 Southeast Asian countries,

with beer consumption as of 2022 at

3.8 million liters/year, accounting for

2.2% of the world market

8 Vietnam's population is increasing day

by day, increasing by 1.14%/year on

THREATS Weight Rating Weighted Score

9 Vietnam beer market has fierce

competition from big competitors such

as Sabeco, Habeco, Carlsberg 0.08 4 0.321

0 Vietnamese consumers tend to switchto low-alcohol or non-alcoholic

beverages for health and traffic safety

reasons

1 due to the increase in the price of rawThe cost of beer production increased

materials such as barley, hops, water 0.07 2 0.141

2 Prices escalate, consumers tend totighten their spending 0.06 2 0.121

3 The excise tax policy for beer is higherthan for other beverages 0.06 2 0.121

4 In Vietnam, alcohol is one of the top 3causes of increasing traffic accident

rates among men aged 15 to 49

1

5 The price of input materials such asbarley has risen 0.07 1 0.07

V IDENTIFY THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ORGANIZATION

Price is higher than other beer

brands Vietnam's beer market in 2021 atHeld the largest portion of

44.4%

Highly dependent on the

domestic market Many marketing campaigns havestrong appeal, enhance brand

recognitionThere is a big difference in selling

price between selling points One of the most chosen brands inurban areas.Lack of rigor in recommending

beer consumption A cohesive corporate cultureenvironmentNot well developed in the low

segment market Outstanding quality products,diverse product segmentsPrice is higher than other beer

brands Owning non-alcoholic beer products, suitable for many

Vietnamese people's preferences

VI IFE MATRIX CONSTRUCTION

IFE MATRIX STRENGTHS Weight Rating Weighted Score

1 Held the largest portion of Vietnam's

beer market in 2021 at 44.4% 0,13 4 0.52

2 Many marketing campaigns have

strong appeal and enhance brand

6 Own a beer with low alcohol content

(Tiger Soju), suitable for many

Vietnamese people's preferences

WEAKNESSES Weight Rating Weighted Score

7 The price is higher than other beer

8 Huge price difference between

distribution systems and retail points 0,12 1 0,12

9 Highly dependent on the domestic

1

0 consumptionLack of rigor in recommending beer 0,05 2 0,101

1 marketNot well developed in the low segment 0,06 2 0,12

Based on the IFE matrix analysis, Tiger's total weighted score was 2.9 andhigher than the overall average score of 2.5 It can be seen that Tiger has

a strong internal position However, Tiger also needs to improve a fewmore factors to strengthen its position in Vietnam

Specifically, held the largest portion of Vietnam's beer market (in 2021) at44.4% is considered the most important factor for success in the industrywhen assigned a weight with a value of 0.13 This is a factor that will helpTiger maintain its competitive position with other competitors (Sabeco,Sapporo)

However, the factor of large price difference between distribution systemsand retail points (rating level is 1) has a negative influence on Tiger Tigerneeds to plan a strategy to strictly control selling prices at points of salebecause unstable prices will easily lose consumer confidence inpurchasing as well as create opportunities for other beer brands to havelow prices than.

SWOT MATRIX

Strength

Held the largest portion of

Vietnam’s beer market in 2021

at 44.4%

Many marketing campaigns

have strong appeal, enhancing

brand recognition

One of the most chosen brands

in urban areas

Exceptional quality products,

diverse product segments

Owning a beer with low alcohol

content (Tiger Soju) is suitable

for Vietnamese people

Lack of rigor in recommending beer consumption Not well developed in the low segment market

Opportunities

Beer is a popular alcoholic

beverage in Vietnam

Vietnam ranks third in Asia in

terms of average alcohol

consumption per person

Diverse product lines to suit the

needs and preferences of

Vietnamese consumers such as

Tiger Crystal, Tiger Radler,

Tiger Black, Tiger White

Total retail sales and industry

Threats

Vietnam beer market has fiercecompetition from big players such as Sabeco, Habeco, Carlsberg

Vietnamese consumers tend to switch to low-alcohol or non-alcoholic beverages for reasons

of health and traffic safety.The cost of beer production increased due to the increase inthe price of raw materials such

as barley, hops, water

revenue will increase by 17.5%

in 2022

The diverse media network in

Vietnam tends to develop such

as TikTok, Instagram, etc

Vietnam has a golden

population structure, rapidly

increasing income, high

demand for entertainment and

tourism, creating favorable

conditions for the beer industry

to develop

Vietnam is the largest beer

consumer among 11 Southeast

Asian countries, with beer

consumption as of 2022 at 3.8

million liters/year, accounting

for 2.2% of the world market

Vietnam's population is

increasing rapidly, increasing

by 1.14% per year on average

Prices escalate, consumers tend to tighten spendingThe excise tax policy for beer ishigher than that of other beverages

In Vietnam, alcohol is one of the top three causes of an increase in the rate of traffic accidents among men aged 15

ST S6 + T2 => Related Diversification In response to the trend of using low-alcohol products of consumers in Vietnam today Tigerowns a new product, Tiger Soju, which has a low alcohol contentthat is suitable for the current trend

O

W2 + O6 => Market Penetration Vietnam has an increasing population structure and increasing income, and the fact that Tiger is still dependent on the domestic market also contributes

to reducing other costs when producing and serving

domestically Therefore, entering the market and promoting the new product widely will contribute to a higher brand awareness

of the new product

WT W3 + T5 => Forwward Intergration Strengthen price controlwith retailers, stabilize prices Encourage customers to buydirectly from a distributed or franchised agent such as GO,

2 WAS2

1 Beer is a popular alcoholic

beverage in Vietnam 0.08 4 0.32 3 0.24

2 Vietnam ranks third in Asia in

terms of average alcohol

consumption per person

0.0

3 Diverse product lines to suit

the needs and preferences of

Vietnamese consumers such

as Tiger Crystal, Tiger Radler,

Tiger Black, Tiger White

0.0

4 Total retail sales and industry

revenue will increase by

17.5% in 2022

0.0

5 The diverse media network in

Vietnam tends to develop

such as TikTok, Instagram,

etc

0.0

6 Vietnam has a golden

population structure, rapidly

increasing income, high

demand for entertainment

and tourism, creating

favorable conditions for the

beer industry to develop

with beer consumption as of

9 Vietnam beer market has

fierce competition from big

players such as Sabeco,

non-alcoholic beverages for

reasons of health and traffic

safety

0.0

11 The cost of beer production

increased due to the increase

in the price of raw materials

such as barley, hops, water

0.0

12 Prices escalate, consumers

tend to tighten spending 0.06 3 0.18 2 0,12

13 The excise tax policy for beer

is higher than that of other

beverages

0.0

14 In Vietnam, alcohol is one of

the top three causes of an

increase in the rate of traffic

accidents among men aged

15 to 49

0.0

15 The price of input materials

such as barley soars 0.07 1 0.07 3 0.21

3 One of the most

6 Own a beer with low

alcohol content (Tiger

Soju), suitable for

many Vietnamese

people's preferences

WEAKNESSES

7 The price is higher

than other beer

11 Not well developed in

the low segment

market

Conclusion: The total priority scores of the two strategies: Market

penetration and Related Diversification are 5.63 and 5.11

respectively Thereby, we can see the appropriate market

penetration strategy to implement

Market Pentration Advantage

Looking for increased market

share for new product lines such

as HEINEKEN 0.0, Lauru Smooth,

Sales will grow slowly for new products relative to the total

Increase awareness for new

The product is present at all beverage distribution and trading locations, including retail

Increase the market share

Media advertising: Tiktok

Estimated cost: 30,000,000 VND

Time: December 2023.

Recommend hiring tikoker to make video review about 2 flavors of the

product, Wonder melon & Cheeky plum The video content can

emphasize that instead of mixing traditional tiger beer and soju, we cannow replace it with tiger soju Tiktoker @gonpinkk will be Tiger's choice -with 1.6m followers and millions of video views, in addition, the well-crafted and humorous video content is expected to go viral increasing theproduct's recognition