report of heineken vietnam

Le Qui Don, Senior Human Resources Director of Heineken Vietnam.https://heineken-vietnam.com.vn/tin-tuc-su-kien/thong-cao-bao-chi/heineken-bo-nhiem-chu-tich-khu-vuc-chau-a-thai-binh-duon

REPORT OF HEINEKEN VIETNAM

INDI MKT103 (25/1/2023)

PART A: HEINEKEN VIETNAM

PART 1: INTRODUCTION ABOUT HEINEKEN VIET NAM

The company that brews Heineken beer is Heineken N.V - a Dutch multinational company founded in 1864 in Amsterdam In 1947, Heineken opened the first

brewery in Southeast Asia (in Indonesia), which was the door for Heineken to come

to Asia In 1991, in Vietnam, Heniken entered into a joint venture with Saigon

Trading Corporation (SATRA) and created the brand HEINEKEN VIETNAM Up to now, HEINEKEN VN has been established for more than 30 years, has 6 factories with more than 3,000 employees throughout Vietnam

Heineken VN produces and distributes the brands Heineken®, Tiger®, Larue, BIVINA, Bia Viet, Strongbow and Edelweiss The first product produced was Tiger Beer in 1993; In 1994, Hoc Mon Brewery (HCMC) first produced Heineken beer Vision: Sustainable development to become a leading, proud & responsible beer producer in Vietnam, for a better Vietnam

Core value: Respect for People & Planet, Enjoy life, Quality, Desire for success

STUDENT

TASKS PART A TASKS PART B SCORE

1 Trần Nguyễn Minh

Anh

HS189005 Part 1: Introduction about

Heineken Vietnam

Content

2 Nguyễn Trang

Nhung HS186608 Part 2: The company,Suppliers, marketing

intermediary

Content

3 Phạm Nguyệt Ánh HS186599 Part 2: Competitors,

Competitive advantage, Customers

Content

4 Cao Hiền Hòa HS180982 Part 3:demographic,

economic

Powerpoint

5 Nguyễn Ngọc Thủy

Tiên

Hs181008 Part 3: Technological,

environment

Content

6 Vương Hương Trà HS180343 Part 3: Politics, culture Powerpoint

HEINEKEN Việt Nam (heineken-vietnam.com.vn)

PART 2: MICROENVIRONMENT

part 2: (Company, who are their main suppliers? Who are the company's marketing intermediaries that help the company promote, sell and distribute its products to final buyers?)

1 The Company

1.1 Top management :

According to information on HEINEKEN Vietnam's website (Information source: HEINEKEN Vietnam: https://heineken-vietnam.com.vn/), the

company's senior management team includes:

-> Dolf van den Brink: position of Chairman of the Board of Directors and CEO of HEINEKEN global corporation

-> Mr Jacco van der Linden: position of President of Asia Pacific region -> Mr Soren Hagh: position of President of the European region from June 1, 2020

-> Mr Alexander Koch: CEO of Heineken Vietnam

-> Mr Nguyen Ngoc Hiep, Deputy General Director of Heineken Vietnam -> Mr Nguyen Van Manh, Deputy General Director of Heineken Vietnam -> Mr Le Qui Don, Senior Human Resources Director of Heineken Vietnam https://heineken-vietnam.com.vn/tin-tuc-su-kien/thong-cao-bao-chi/heineken-bo-nhiem-chu-tich-khu-vuc-chau-a-thai-binh-duong-va-tong-giam-doc-dieu-h anh-heineken-viet-nam.html

1.2 Finance :

- Heineken (Vietnam) financial report for 2021-2023

According to HEINEKEN Vietnam's financial report, the company's revenue

in 2022 reached VND 36,000 billion, an increase of 50% compared to 2021

The company's profit after tax also increased by 60%, reaching VND 10,000 billion

- HEINEKEN Vietnam's revenue growth mainly comes from the recovery of the Vietnamese beer market after the COVID-19 pandemic In addition, the company has also implemented a number of new business strategies, such

as focusing on the high-end segment and expanding market share in rural areas

- Specifically, in 2022, the Vietnamese beer market has grown by 10% compared to 2021 HEINEKEN Vietnam has occupied a market share of 42%, continuing to be the largest beer manufacturer in Vietnam

- HEINEKEN Vietnam's key products include Heineken, Tiger, Larue, BIVINA, Bia Viet and Strongbow Among them, Heineken and Tiger are two high-end beer brands that account for the company's largest market share

- HEINEKEN Vietnam is investing heavily in projects to expand production and distribution The company currently has 26 factories and 30 distribution centers nationwide

- In 2023, HEINEKEN Vietnam targets revenue of 40,000 billion VND and profit after tax of 11,000 billion VND

- Heineken ( Global ) financial report 2022 (AMS:HEIA) 2022 financial results + Revenue: 28.7 billion euros (up 31% compared to 2021)

+ Net income: 2.68 billion euros (down 19% compared to 2021) + Profit margin: 9.3% (down from 15% compared to 2021)

+ EPS: €4.66 (down from €5.77 compared to 2021)

1.3 R&D: Research and development

- HEINEKEN Vietnam has a research and development (R&D) center located

in Ho Chi Minh City This center is equipped with modern equipment and a team of experienced experts HEINEKEN Vietnam's R&D Center is

responsible for research and development of the company's beer, beverage and other products

- Currently, Heineken Vietnam Brewery is a limited liability company that produces and distributes fermented drinks, including famous beer brands such as Heineken, Tiger, Tiger Crystal, Desperados, Biere Larue, Biere Larue Export , BGI and Bivina in Vietnam, along with Strongbow products

- Outstanding examples for Heineken's R&D

=> To serve the commercial segment, Heineken Vietnam built a Digital Route To Consumer system to support the distribution - sales - marketing segment

(https://cafebiz.vn/cach-heineken-bien-du-lieu-thanh-tien-trong-4-nam-khai-thac-data-hieu-qua-tao-ra-40-trieu-euro-cho-tap-doan-176230930094747856.chn )

=> Developing new premium beer products to meet the increasing needs of Vietnamese consumers: For example, in 2022, HEINEKEN Vietnam launched a new premium beer product called Heineken Silver This product is made from 100% pure barley, has a delicious flavor and is suitable for the taste of Vietnamese consumers

(https://heineken-vietnam.com.vn/tin-tuc-su-kien/thong-cao-bao-chi/cong-ty-ba-hang-dau-t he-gioi-heineken-ra-mat-san-pham-cao-cap-moi-tai-dinh-doc-lap-heineken-silver-nhe-em-ma-dam-chat.html )

=> Improve the quality of existing products: For example, HEINEKEN Vietnam has applied new technology to produce Tiger Soju Infused Lager beer, making the product taste more delicious and fresh

(https://heineken-vietnam.com.vn/tin-tuc-su-kien/thong-cao-bao-chi/tiger-beer-ra-mat-tiger-soju-infused-lager-hoan-toan-moi-huong-vi-sang-khoai-doc-dao-va-trai-nghiem-uong-moi-l a.html?k=tiger)

1.4 Purchasing: Purchasing

- Heineken's acquisition is the acquisition of Asia Pacific Brewery (APB) by Singaporean food and beverage processing group Fraser and Neave (F&N), completed on 3 August 2012 This deal helps Heineken own 41.9% of shares

in APB, including famous beer brands such as Tiger, Anchor, Anchor Smooth, Anchor Strong, ABC, Darwall's, Heineken, Larue, Myanmar Beer, Tiger Crystal , Sparkling, Tiger Radler, Tiger White, and Strongbow

https://baochinhphu.vn/heineken-thau-tom-thanh-cong-tiger-102128974.htm

1.5 Operations :Heineken's activities in Vietnam

- Heineken Vietnam is one of the largest beer manufacturers in Vietnam The company has 6 breweries in Hanoi, Da Nang, Quang Nam, Ho Chi Minh City, Vung Tau and Tien Giang

+ Heineken Vietnam produces and distributes a wide range of beer products, including:

➢ Heineken (heineken-vietnam.com.vn)

➢ Tiger ( heineken-vietnam.com.vn )

➢ Larue (heineken-vietnam.com.vn)

➢ Vietnamese beer

(https://heineken-vietnam.com.vn/cac-nhan-hieu/bia-viet/)

➢ Strongbow:

https://heineken-vietnam.com.vn/cac-nhan-hieu/strongbow-cider/

➢ Edelweiss:https://heineken-vietnam.com.vn/cac-nhan-hieu/edelweiss/ + Heineken Vietnam focuses on the high-end and mid-range segments of the Vietnamese beer market The company has succeeded in building premium beer brands such as Heineken and Tiger, and is continuing to expand its market share in the mid-range segment through brands such as BIVINA and Bia Viet

- Social responsibility

+ Heineken Vietnam is committed to sustainable development and social responsibility The company has undertaken several social responsibility initiatives, including:

➢ The "For a better Vietnam" program aims to raise awareness of responsible drinking culture and promote sustainable development

➢ The "Heineken Green Bond" program aims to finance sustainable development projects

➢ The "Heineken Sustainable Agriculture" program aims to support barley farmers in Vietnam

Source:https://heineken-vietnam.com.vn/phat-trien-ben-vung/

2 Who are their main suppliers?

- Long Thanh Plastic Company Limited (Long Thanh Plastic) has been a

supplier of plastic safes to HEINEKEN Vietnam for more than 20 years

=>>https://www.tinnhanhchungkhoan.vn/tu-nhung-chiec-vo-chai-lon-den-chuoi-cun g-ung-nghin-ty-cua-heineken-viet-nam-post263725.html

- Ingredients: Heineken Vietnam strives to use local ingredients, including

rice, corn and tapioca starch Some potential local suppliers include: -> Tan Long Group: Providing cassava starch

-> Thai Hoa Group: Providing rice and corn

-> Nam Thai Agricultural Products Company: Providing rice and corn

- Malt and hops: These two essential beer-making ingredients are not

available in Vietnam, so Heineken has to import them from countries such as Germany, the Czech Republic, and the United States Some potential suppliers include:

-> IBG International Beer Group: Providing malted barley

-> Barth Haas Group: Providing hops

3 Who are the company's marketing intermediaries that help the company to promote, sell and distribute its product to the final destination?

➔ Wholesalers

- Wholesalers are people who buy Heineken products from factories and resell them to retailers They play an important role in distributing Heineken products to stores and supermarkets

➔ Retailers

- Retailers are those who sell Heineken products directly to consumers They include grocery stores, supermarkets, restaurants, bars and other retail outlets

➔ Advertisement

- Heineken uses advertising on television, radio, newspapers, the internet and other media to promote its products (VTV, HTV, Tiktok, Facebook, Youtube, Instagram, X, )

➔ Public Relations

- Heineken engages in public relations activities to build the brand's image and reputation

➔ Direct marketing

- Heineken uses direct marketing to reach consumers through email, direct mail and other means

4: Competitors

https://mbs.com.vn/en/research-center/market-overview/stock-market-reviews/cuoc-chi

en-nganh-bia-ong-lon-noi-lep-ve/

Market share of beer companies in Vietnam 2021

Sabeco

● Originating from a small brewery founded by Victor Larue in Saigon in 1875 Mentioned as a Vietnamese beer and beverage brand Sabeco has developed many famous product lines such as: Saigon Special beer, 333 beer, Lac Viet beer, Saigon Lager beer,

● According to the fourth quarter 2022 financial report, the last quarter of 2022 Sabeco achieved revenue of more than 10,029 billion VND, an increase of 11% over the same period in 2021 Sabeco is the largest competing brand with Heineken in the Vietnamese market In 2021, Sabeco's beer market share will account for 33.9%, second only to rival Heineken

https://www.tinnhanhchungkhoan.vn/sabeco-sab-dat-loi-nhuan-ky-luc-gan-5500-ty-dong-po st314516.html

Carlsberg

● Carlsberg entered Vietnam in 1993 through a joint venture with a brewery in Hue Carlsberg Vietnam produces Carlsberg, 1664 Blanc, Tuborg, Tuborg Ice,

Somersby, Huda, Huda Ice Blast, Huda Gold and Halida

● Among the top 4 brands accounting for 90% of the beer industry market share in Vietnam in 2021, along with Heineken, Habeco and Sabeco, of which Carlsberg accounts for 8.7% of the market share In 2021, Carlsberg's net profit increased by 13% to 6.8 billion kroner After the difficulties of the pandemic, Carlsberg is constantly growing, regaining market share in beer production and distribution https://www.vietnamplus.vn/hang-carlsberg-se-tang-gia-bia-de-bu-dap-chi-phi-nguyen-lieu-post771517.vnp

Habeco

● The predecessor of Hanoi Beer - Alcohol - Beverage Company (HABECO) was the Hommel brewery built in 1890 by the French Habeco produces and distributes famous product lines: Hanoi Draft Beer, Truc Bach Beer, Hanoi Beer Premium, Hanoi Canned Beer,

● According to updated data from Habeco's financial statements, at the end of the third quarter of 2022, the Corporation achieved revenue of 2,476 billion, an increase of 42.8% compared to March 2021 In the market share of the beer industry in 2021, Habeco accounts for about 7.4%, ranking 4th behind competitors: Heineken, Sabeco and Carlsberg

https://www.tinnhanhchungkhoan.vn/habeco-ket-qua-kinh-doanh-quy-32022-cao-nhat-2-na m-post308793.html

5: Competitive advantage

5.1:Takeadvantageoffinancialresourcesfromtheparentcompany

● Heineken Group (founded in 1864) is one of the oldest and largest beer production and trading enterprises in the world By 2019, Heineken operated 164 factories in

70 countries and territories, producing 348 different types of beer and creating nearly 85,000 jobs In 2021, Heineken's revenue will reach nearly 22 billion euros, net profit will reach 3.5 billion euros

● In Vietnam, on December 11, 2022, Prime Minister Pham Minh Chinh had a meeting with Heineken Global General Director, Mr Dolf van den Brink, announcing Heineken's investment in Vietnam (Heineken joint venture and Saigon Trading Corporation) Gon - Satra) has reached 1 billion USD and within the next 10 years,

it is expected to invest another 500 million USD, as well as propose content related

to tax policy => Heineken Vietnam has abundant financial resources from the parent company

https://baochinhphu.vn/thu-tuong-tiep-tong-giam-doc-heineken-va-chu-tich-lien-doan-gioi-c hu-ha-lan-102221212002641964.htm

● Heineken Vietnam Brewery also has an outstanding advantage compared to domestic beer companies thanks to the centralized signing of contracts to purchase raw materials around the world Up to 50% of Heineken Vietnam Brewery's raw material purchase contracts are signed by the parent company This allows the company to have an advantage in input material costs

https://www.brandsvietnam.com/11123-3-loi-the-rieng-co-cua-Heineken-ma-Sabeco-hay-Ha beco-deu-them-muon

5.2 Take advantage of marketing strategies from the parent company

● A unique advantage of Heineken Vietnam Brewery is that it can take advantage of marketing strategies from the parent company By taking advantage of global scale while adapting to the domestic market, Heineken Vietnam Brewery has advantages

in marketing and branding For example, the UEFA tournament campaign in which the company organized the tournament in major cities while the special edition was extended to retail outlets

https://www.brandsvietnam.com/11123-3-loi-the-rieng-co-cua-Heineken-ma-Sabeco-hay-Ha beco-deu-them-muon

6: Customers

6.1 Consumers:

● Opposite to Heineken's target customers live in urban areas, in 2 big cities (Ho Chi Minh City and Hanoi)

● Year old: Heineken's target customers focus on the Youth (18 - 24 years old) and Mature (25 - 35 years old) groups

● Income: Heineken's target customers focus on Group A Class (15 - 150 million VND

or more)

● Family Life Cycle: Heineken's target customers focus on Young singles and Young married without children

● Attitude: Heineken's target customers like a life full of fun with friends and relatives, freely expressing their emotions

● Lifestyle behavior: Heineken's target customers often gather with friends to party at home or in bars, pubs, clubs to have fun, dance or simply watch a football match together

=>https://brademar.com/khach-hang-muc-tieu-cua-heineken/#google_vignette

6.2 Enterprise:

● To ensure wide coverage, Heineken also brings its products to both distribution channels: modern and traditional

● Traditional distribution channels After production, goods will be delivered to

consumers in the following order: manufacturer distribution intermediary -consumer In this channel, Heineken distributes its products to grocery stores, restaurants, and bars

● Modern distribution channels are when the manufacturer and distribution

intermediaries will combine together into an integrated whole That is, after production, goods will be circulated from this unified entity to consumers For this distribution channel, Heineken products are sold in supermarkets or convenience stores such as Vinmart, Mega Market, Big C, Circle K

=>https://amis.misa.vn/33989/phan-tich-chien-luoc-marketing-cua-heineken-thuong-hieu-bi a-noi-tieng-toan-cau/

PART3: MACROENVIRONMENT

1 Demographic

Heineken demographics summary Zippia estimates demographics and statistics for Heineken by using a database of 30 million profiles Our

estimates are verified against BLS, Census, and current job openings data for accuracy After extensive research and analysis, Zippia's data science team found that:

Heineken has 76,136 employees

42% of Heineken employees are women, while 58% are men

The most common ethnicity at Heineken is White (52%)

23% of Heineken employees are Hispanic or Latino

12% of Heineken employees are Black or African American

The average employee at Heineken makes $70,210 per year

Heineken employees are most likely to be members of the democratic party Employees at Heineken stay with the company for 4.5 years on average

2 Economic

Several factors can influence consumer purchasing power and spending patterns in the economic environment Firstly, Vietnam has a low unemployment rate, with the percentage being 2.2 in 2019 The number is still stable without any sudden increase for the following years

(The economic context of Vietnam - Economic and Political Overview - Nordea Trade Portal, n.d.) According to the source World Economic Outlook Database in October 2020 from the International Monetary Fund (IMF), the GDP of Vietnam in 2020 is around

$340.60 billion, and

the number is expected to increase to $404.91 in 2020 (The economic context of Vietnam

- Economic and Political Overview - Nordea Trade Portal, n.d.) Moreover, the economic and political changes have transformed Vietnam into a middle-income country compared

to being

the poorest country in the past (Overview, 2020) According to The World Bank in Vietnam, the GDP per capita of Vietnam in 2019 has reached around $2,700, with the number being increased by 2.7 times compared to the period between 2002 and 2018 (Overview, 2020)

Furthermore, more than 45 million people got out of poverty, and ethnic minorities are the only group that has remained poor in Vietnam (Overview, 2020) Supported by the economic facts above, it can be seen that Vietnamese people are having an increase in their income Referring to figure 5, the food and beverages section shows the most percentage in consumer expenditure (Figure 5) It can also be inferred that Heineken beer has the most opportunities to expand in Vietnam compared to other sectors Therefore, they are more likely to have more demands on services such as leisure and recreation, health goods and

medical services, and the percentage of food and beverages will also have a parallel increase with people’s income

3 Technology

● Core technology (Digital CORE): Heineken Vietnam has developed and innovated many applications based on core technology

● Business Platforms (BUSINESS Platforms): The company has optimized the entire supply chain through solving current "business problems" by applying technology solutions

● Technology products (Digital PRODUCTS): Heineken Vietnam has applied data analysis methods to optimize machine operations, minimize losses and effectively plan beer production

link:https://intech.vietnamworks.com/article/tao-nen-ty-do-tu-nen-tang-cong-ngh e-thong-tin-heineken

Digitalization: The company has carried out digital transformation in production and business activities

● Exchange: Heineken Vietnam has switched to installing 100%

environmentally friendly green refrigerators, using energy-saving fans, LED lighting, hydrocarbon refrigerants and equipped with an energy management system quantity

● Reuse/Recycle (Loop): Heineken Vietnam now has almost no landfill waste, thanks to reusing or recycling 99% of waste and by-products

=> In particular, Heineken Vietnam has officially announced its production process using 100% renewable energy in Vietnam

4 Environment:

Heineken, the global brewer, is committed to reducing its environmental impact by continuously improving its value chain and complying with environmental laws The company has set major commitments to reduce CO2 emissions and protect water resources To achieve these commitments, Heineken has developed a number of programs such as “Drop the C” to reduce emissions across its entire value chain,

“Every Drop” to improve the health of watersheds and “Innovation/new products” to minimize potential environmental impact Heineken also assesses the water stress