Report Marketing Plan For Edelweiss – Snow.pdf

1

1 Executive Summary: 3

1.1 Introduction: 3

1.2 Description of company and team: 3

1.3 Description of market factors and trends: 4

1.4 Description of products or services being marketed: 4

1.5 Description of customer base and related marketing activities: 4

1.6 Summary of overall objectives and related strategies: 5

2 Background: 5

2.1 Company: 5

2.2 Product: Edelweiss Snow beer– 6

2.3 Introduction about the Edelweiss: 7

3

REPORT: MARKETING PLAN FOR EDELWEISS SNOW BEER –

1 Executive Summary: 1.1 Introduction:

The report is a marketing plan for Edelweiss beer - a new premium beer This report provides the detailed background of Heineken and Edelweiss, an analysis and evaluation of the firm, market, customer, competitor, customer insight, and the marketing strategy

1.2 Description of company and team:

Heineken is a Dutch brewing company- one of three biggest companies producing beer in the world by volume Vietnamese customers have been delighted with a diverse range of products to suit various local states and drinking events such as Heineken, Tiger, Larue, BIVINA, Bia Viet, Strongbow, and Edelweiss The main segment of customers is the age group between 19 and 35

Students name - ID

Huynh Kien Phi SS171001 –To Thi Mai Loan – SS170761 Ton Nguyen Yen Linh SS170858 –Nguyen Ha Uyen SS170795 –Nguyen Dang Thien Kim - SS170770

4 Among the FMCG sectors, beer demand was most negatively affected by Covid-19 in the period from January to September 2020, the closure of a series of business locations across the country during the period caused alcohol consumption to "freeze" Additionally, laws to prevent harmful effects of alcohol also have long-term damage, whereas beer consumption is still increasing In 2021, SSI believes that the beer market will continue to recover, but it will not be until 2022 that beer consumption demand can fully recover like it was before the COVID-19 epidemic.Consumers are always eager to try new products, especially young people, so a successful new product launch will be crucial for brewers to outperform the industry as a whole

1.4 Description of products or services being marketed:

Edelweiss is a branch of Food and Beverage of FMCG products After the achievements that the Edelweiss beer has achieved in Austria as well as in Southeast Asian countries such as China, Heineken wants to bring this snow beer product to the Vietnamese market “Snow beer” leads the premium beer, produced with completely natural ingredients, no chemical additives, and preservatives This novel beer will be a potential product for the trend of natural products

1.5 Description of customer base and related marketing activities:

Our target customers are people aged 25 to 29 in Ho Chi Minh City According to statista by 2030, the middle-class population in Vietnam will reach 95 million people This is also one of the target customers groups which we are targeting Besides, the number of adults is also expected to increase in the coming years This leads to an increase in the number of potential customers We will plan marketing this product on Youtube Ads, TVC, Facebook Ads, and viral clips A music festival will also be held in conjunction with a

5 "virtual reality" service provider in order to let customers experience the product and also feel like at the top of Alps Mountain

1.6 Summary of overall objectives and related strategies:

We have developed a marketing plan that will help us to provide the premium beer line for our customers and increase the market share in the Vietnam beer market We also need to hold the leading position in the market share of the Vietnamese beer industry, consolidating the leading position of the premium beer Here, the detailed of objectives:

• Business Objectives: Within five months, increase market share to 0.3 percent and hold the top position in the Vietnamese beer industry's market share, consolidating premium beer's leadership position

• Marketing Objectives: Promote Edelweiss products as Heineken's and increase market penetration in order to convince consumers to purchase Edelweiss beer • Communication Objectives: Top- -mind of consumers while mentioned premium of

beer

2 Background: 2.1 Company:

Heineken is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in the city of Amsterdam In 2012, owned about 190 breweries in more than 70 different countries Heineken is the third-largest brewer in the world after Anheuser-Busch InBev and SABMiller Since the merger between the world's two largest brewing empires mentioned above, in October 2016, Heineken has become the second-largest brewer in the world After the process of formation and development, Heineken has become a

6 famous global beer brand, considered the most successful beer brand, and an icon in the beer industry in the world Heineken Beer’s full name in Vietnam is Heineken Vietnam Brewery Company Limited, abbreviated as Heineken Vietnam Brewery, was officially established on December 9, 1991 Up to this point, HEINEKEN Vietnam operates 6 breweries in Hanoi, Da Nang, Quang Nam, Ho Chi Minh City, Vung Tau, Tien Giang and 9 commercial offices across Vietnam Every year, Heineken Vietnam makes a significant contribution to the Vietnamese economy, accounting for about 0.9% of the national GDP In 2021, because of the severe impact of Covid-19, Heineken's contribution to Vietnam's economy will be slightly reduced to 0.7% of the nation's GDP In Vietnam, Heineken produces and distributes beer brands: Heineken, Tiger, Amstel, Larue, BIVINA, Sol, Desperados, Affligem, and Strongbow fermented apple juice And the future direction of Heineken Vietnam is towards zero net emission, towards an inclusive, fair, and equal world, and towards a responsible drinking culture In 2017 and 2018, Heineken Vietnam was honored as the Most Sustainable Manufacturing Enterprise in Vietnam by the Vietnam Chamber of Commerce and Industry (VCCI) according to the Program of Evaluation and Ranking of Sustainable Businesses in Vietnam (CSI In 2006-2016, ).Heineken Vietnam was honored to receive the Heineken beer quality award for 10 consecutive years In 2020, Heneken Vietnam continues to bring home Asia's Best Workplace Award for the third time in a row The award is presented by Human Resources Asia (HR Asia), a leading HR magazine in Asia

2.2 Product: Edelweiss Snow beer –

HEINEKEN Vietnam officially launches Edelweiss beer on June 3, a wheat-based beer with a quintessential taste from the Alps One of the world's first wheat beers, Edelweiss is a brand with a centuries-old history It was first produced in 1646 by Hofbräu

7 Kaltenhausen The Kaltenhausen brewery follows a recipe unchanged since 1646, named after a flower popular in the country’s mountainous region called Edelweiss, which translates to snowflakes Established in 1986, Edelweiss beer is not only famous in Austria but also famous throughout Europe "Edelweiss" brand was established only recently - in 1986 but has become the preferred choice of many people Most recently, Edelweiss snow beer was also introduced to Vietnamese consumers, attracting a lot of attention from beer enthusiasts, especially imported beer

2.3 Introduction about the Edelweiss:

Snow Beer - Edelweiss is a leading brand in the premium wheat beer An artifact from the brewing process dating back hundreds of years from Austria As a premium beer, Edelweiss uses carefully selected natural ingredients such as: premium wheat mixed with unique Edelweiss snow flowers, purified water and herbal ingredients from the snowy Alps All the finest natural ingredients will create a pure beer taste, and a pleasant fruity aftertaste, stimulating the taste buds to bring a different refreshing feeling that makes the drinker want to enjoy it forever The beer has a golden color like honey with thick white foam, which captivates the drinker at first sight Along with a fresh fragrance, when opening the cap of Edelweiss, the drinker feels like breathing in the fresh air when first setting foot on the top of the Alps When sipping beer, dinkers will see the subtle scent of bananas, bread, and dried fruits mixed with the aroma of caramel that is both familiar and strange When adding ice, the aroma will wake up, and drink more Each different proportion of ice will give a different feeling, so the manufacturer's advice when enjoying this Austrian beer flavor is to add ice little by little and sip to enjoy The factory owners have preserved the longstanding Austrian tradition of producing low-alcohol soft drinks Therefore, the alcohol content of Edelweiss snow beer is quite light, only about 4.9%, so

8 after drinking it, there is no headache after waking up That is why the beer "Edelweiss" for many years in a row has been on the lists of the most popular and delicious varieties of this drink, winning new medals and competitions promoting an international scope

2.4 Issues:

The issue emerges when Heineken's income exceeds 50,000 billion dong in 2020 while being significantly impacted by the COVID-19 pandemic, and Edelweiss, a new product that formally released on June 3, 2022, has completed a marketing test phase beginning in mid-2021 The development of Edelweiss is intended to address two issues: (1) providing customers with premium beer products, and (2) generating profit and extending Heineken Company's market share

High product price: The price ranges

from 21,000 VND to 26,000 VND for an odd can and about 500,000 VND for a case of 24 cans of Heineken beer Meanwhile, rival Sabeco has prices ranging from 14000 to 15000/can

9 consistency and quality People recognize

the red star logo of the company all over the world

Heineken creates sustainable values for society: Contributing equal to 0.7% of

Vietnam's GDP, supporting 152,000 direct and indirect jobs throughout the value chain, and contributing to the development of the country's economy

Heineken makes a significant trade:

Heineken not only builds strong relationships with its suppliers them but also create a means of communication between distributors and dealers where they help create a better sales team

Product variety: reach many customer

segments, expand markets and revenue for businesses Many product lines such as Heineken, Tiger, Lagrue, Strongbow, Edelweiss, Bia Viet, etc

There are too many production facilities around the world, requiring talented managers who have a big vision: In 2012, Heineken owned about

190 breweries in more than 70 different countries Heineken Vietnam operates 6 breweries in Hanoi, Da Nang, Quang Nam, Ho Chi Minh City, Vung Tau, and Tien Giang

Monopolizing scandal: brand image is affected by Heineken violating the Law on Competition: Heineken does

not allow the sales agent to sell Sabeco products

Imported material: Raw material costs

are high, so the cost of products is high In addition, the instability in the economic situation of the country that supplies the raw materials also affects Heineken

10 money to their infrastructure and product

Economic Growth:

The global economy is expected to prosper, supported by the data that showed the population is multiplying, which means many beverages will be consumed

Many competitors and pressure for substitute products such as imported

beer, and fermented juice, Pepsi, Ccoca, etc

The National Assembly promulgated the Law on Advertising

44/2019/QH14 ON PREVENTION AND CONTROL OF HARMFUL EFFECTS OF ALCOHOLIC BEVERAGES in 2019: The beverage industry has been

affected by the double impact of the Covid-19 epidemic and Decree 100 has resulting in the production capacity of the current group of beverage businesses operating at less than 80% of the pre-pandemic level While more than 50% of customers have spent more

11

New customers from internet channels:

In the past years, the corporation has put a large amount of cash into the internet platform This

has created a new selling channel for Heineken

Beer consumption in Vietnam is still increasing despite the Covid-19 pandemic: In 2021, the revenue of

Heineken Vietnam (Heineken Trading), the company responsible for distributing Heineken beer and beverage products, did not decrease but also increased slightly, reaching more than VND 55,700 billion In the previous years, Heineken Trading's revenue grew very strong, reaching nearly 20% per year The policy of the government is to support people to continue to develop the economy

Currently, consumers, especially young people, like the difference and newness

on foods that strengthen resistance and the immune system, etc 63.7% of customers have cut spending on beer and wine (According to GSO)

The Covid 19 pandemic can return at any time: Emergence of two new sub-

variants BA.4 and BA.5 capable of escaping immunity People with sub-variants BA.1, BA.2 can still get BA.4, BA.5 again Recently, the number of new infections has ranged from more than 500 to 1000 cases

Alcohol tax: Currently, the special

consumption tax rate for beer is 65%, alcohol 35-65% depending on the alcohol content below or above 20 degrees

12 According to a report by Kirin Holdings, Vietnam will be the largest consumer of beer in Southeast Asia in 2019, ranking third in Asia behind China and Japan The Vietnam Beer, Alcohol and Beverage Association (VBA) predicts a 65 percent growth in average beer consumption between 2011 and 2021 The Vietnamese market is regarded to be the fastest expanding market in the globe due to its relatively young population, extremely promising, which can attract more international brewers In the previous 11 years, Sabeco and Heineken's combined market share in terms of beer volume has never fallen below 63% According to research by Euromonitor, this figure has climbed to 73.1% in 2019 In 2010, Heineken's market share was barely 19.7 percent Heineken increased its market share to 33.5 percent in 2019, falling short of rival Sabeco by 6.1 percent as a result of investments in technology and products as well as the proper business strategy In 2020, Heineken gained 37 percent of the market share, overtaking Sabeco, which lost 2 percent of the market share Heineken finished the year 2020 with a profit of 11,068 billion dong, 6131 billion dong greater than its competitor Sabeco

3.1.2 Competitor: a Background:

Sabeco, or SABECO, Saigon Alcohol Beer and Beverage Joint Stock Corporation is Vietnam's leading beer producer In 2020, SABECO lasted for 142-year original history, 40-year brand building, and development SABECO's nationwide system includes 26 factories, 10-member trading companies, and a network of more than 100,000 points of sale spread across the country SABECO is proud to bring a portfolio of beer brands loved by Vietnamese consumers such as Beer Saigon Special, Beer Saigon Export, Beer Saigon Lager, Beer Saigon Gold, Beer 333, etc