Scientific research report analyzing marketing mix 4ps of heineken vietnam 2

Keywords: Marketing mix, Heineken Vietnam, strategy, development... List of abbreviations List of figures Figure 1 Historical development of Heineken Vietnam Figure 2 Beer market share f

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

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SCIENTIFIC RESEARCH REPORT

ANALYZING MARKETING MIX 4PS OF HEINEKEN

VIETNAM

Instructor: Dr Nguyen Tien Thong

Class: KN 1901

ID Number: 19DH480959 Student’s name: Lé Thanh Cuong

HCMC, December/ 2021

ABSTRACT This study was written to gain a deeper understanding of the role of the marketing mix make an important contribution in satisfying the requirements of customers and the sustainable development of enterprises in the market By taking a look into the marketing mix strategy of Heineken Vietnam Strategy as a long-term vision that Heineken Vietnam has determined from the very beginning to the present time That has been proven by the sustainable development over the past 30 years in the Vietnamese market Heineken Vietnam has been really active and made efforts to create diverse products to meet the needs of different customer segments, thereby forming a loyal user community Besides, they also constantly improve the relationship between distributors and partners to create a solid trust, a comprehensive development

Keywords: Marketing mix, Heineken Vietnam, strategy, development

TABLE OF CONTENTS CHAPTER 1: INTROCDUCT ION 00000 ccccceccecceeeeceeeeeeeeeeseesesaessessesaesaesaesaesaeseeseeeeneaes 5 1.1 Background eee eeceeeececceccensececeeceeceeceeceeccecescneceecescescseceeceecessseseesaseseteneatens 5

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2.1 Brief introduction of Heineken Vietnam Ăn se iieriere 8 VN Noo n6 ố 8

2.1.2 Vision, core values and SÍTAf€ØV - các HH HH HH re 9 2.1.3 Scope of operaflon, productf concepfs and competifIve advanfases 9

2.1.4 Market nh 10

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2.2.2 The Importance and role of marketing Tn1X .-. - - 5555252 ++<sszsesseeeszsres 12 Ð;Ÿ/.)3)0.Ẳ019/)00609,19)).9)09 cm 14

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CHAPTER 4: FINDING AND DISCUSSION - - HH HH re 16 4.1 Marketing mix 4Ps of Heineken Yiefnam - 5 55 S5 se sex reereereree 16 ALLL Product oo ẽ 16

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CHAPTER 5: CONCLUSION AND RECOMMENDA TIONS 21

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List of abbreviations

List of figures

Figure 1 Historical development of Heineken Vietnam

Figure 2 Beer market share from 2017 to 2019 in Vietnam (%)

Figure 3 Heineken Vietnam net revenue (2017 — 2019)

Figure 4 Product lines of Heineken Vietnam

Figure 5 Distribution chart of Heineken Vietnam

Figure 6 Product Strongbow in the music video "Bai Nay Chill Phet"

List of tables

Table 1 Four elements of the marketing mix

Table 2 Heineken Vietnam high-end segment product line compared to Sabeco & Carlsberg Vietnam

Table 3 Segment product line mid-range of Heineken Vietnam compared to Sabeco & Carlsberg Vietnam

CHAPTER 1: INTROCDUCTION 1.1 Background

From the beginning of 2020, Vietnam's beer industry suffered double impacts when the Government started to apply Decree 100 and the outbreak of the covid 19 pandemic resulted in the closure of food and beverage industry for a while In the long run, leading

to a change in behavior when many people limit the consumption of alcoholic products, has had a significant impact on the growth of the market Because the on-premise consumer distribution channel accounts for about 70% of total beer consumption in Vietnam (SSI Research, 2021) However, Vietnam is gradually returning to the "new normal" and the beer market has shown signs of recovery and slow growth Looking to the future, the Vietnam beer market still has a large number of consumers and is growing well (Vietnam

is the second largest beer consumer in Southeast Asia, the third in Asia and the 29th in the world) According to statistics, beer consumption per capita in Vietnam in 2019 reached about 50 liters / person / year (Vietnam Things, 2021) and the population as of now is nearly 100 million people This is an opportunity for Heineken Vietnam to research and develop its new products Because the product is the decisive competitive factor in the beer industry, and the psychology of consumers is always wanting to try new products, especially young people Therefore, launching new products is extremely important for Heineken Vietnam, which will help the business grow revenue and expand market share Heineken Vietnam (belonging to HEINEKEN group) full name is Heineken Vietnam Brewery Company Limited and is a joint venture partner with Saigon Trade Corporation (SATRA) Heineken Vietnam is the business activity in Beer Manufacturing Currently, it

is a prominent enterprise in Vietnam's beer industry next to competitors such as: Sabeco, Habeco, Hue Beer, Carlsberg Vietnam During the past 30 years, Heineken Vietnam has been constantly creating and innovating to meet more needs of consumers That has helped them grow revenue year over year and hold the second largest market share in Vietnam with 21.8%, 23% and 33.5% respectively in 2017, 2018 and 2019

Nowadays, a good marketing plan can assist a business in increasing brand awareness of potential customers as well as increasing sales (Ngan, N T K, 2021) Before introducing

a product, firms need to think about the marketing mix, which consists of four decisions and they are product, price, and place & promotion (Singh, 2012) The marketing mix components are created by (Borden, 1964) and they will work together to build a suitable program With the aim of attracting customers’ interest in new products and corresponding awareness among consumers in the target segment In addition, it also helps businesses increase sales and expand market share (Ali, 2011) The four components of the marketing mix are always closely related and must complement each other appropriately (Singh, 2012) Therefore, when implementing a marketing strategy, businesses need to carefully consider and evaluate the capabilities and strengths as well as the available resources of the business to be able to perform in the best way achieve the stated goals The sustainable development of Heineken Vietnam shows that they have been using a very good marketing mix for their marketing strategy (Ngan, N T K, 2021)

1.2 Aims

This study focuses on methodology from secondary data Therefore, it will only focus on the strategic market approach of Heineken Vietnam and how their customers perceive Heineken Vietnam throughout their marketing mix (Ngan, N T K, 2021) In addition, it will answer two questions: "How did the marketing mix become important to the company?” and “How has Heineken Vietnam applied the marketing mix strategy?” With the above purpose, at the same time, we want to spread the successes and contributions that Heineken Vietnam has achieved to many people, especially to inspire young people to be passionate about the business field in the future

1.3 Structure of the research paper

This study consists of five main parts The first part would like to introduce a bit about

Heineken Vietnam, the context of the Vietnamese beer market and issues related to the

research topic The second part presents the competitive market share of the brewing companies and gives an overview of the company Besides, introduce some basic features

of the theoretical basis of marketing mix The third section presents the methodologies used

in this study and how to collect the relevant data and make effective use of the data for the study Part four is considered the most important with the discussion of four factors: products, prices, locations and promotions in Heineken Vietnam's marketing mix And the last part is the conclusion of the study and some recommendations for the future

CHAPTER 2: LITERATURE REVIEW 2.1 Brief introduction of Heineken Vietnam

Heineken Vietnam (belonging to HEINEKEN group) is one of the leading companies in beer production in Vietnam market Heineken Vietnam is constantly expanding its market share with diverse products, since then the brand has gradually won the trust of consumers

Up to now, Heineken Vietnam has the 2nd largest beer market share in Vietnam The company's products are available in almost all provinces and cities Heineken Vietnam is one of the leading taxpayers in Vietnam and contributes significantly to the economy with about 0.9% of the national GDP (Heineken Vietnam, 2020)

Figure 1 Historical development of Heineken Vietnam

In 1991, signed a joint venture contract between Saigon Trade Corporation (SATRA) and HEINEKEN International Beheer Besloten Vennootschap Completed construction of the first brewery in Hoc Mon in 1993 Since then, Heineken Vietnam has continuously developed and expanded its breweries throughout Vietnam They bought five more breweries in places like Da Nang, Quang Nam, Tien Giang (2007), one in Vung Tau (2016), and Ha Noi (2018) Heineken Vietnam not only contributes in terms of sustainable economic development, helping to create thousands of jobs for people Besides, they also

give great social support when regularly organizing CSR activities in the localities Heineken Vietnam has been awarded many labor medals by the state for its efforts in the process of innovation and sustainable development, and has made many contributions to the benefit of the country (Heineken Vietnam, 2020)

2.1.2 Vision, core values and strategy

Heineken Vietnam's aim is to become Vietnam's leading, proud, and responsible brewer, guided by key values such as respect for people and the environment, enjoyment of life, quality quality, and a desire for success Heineken Vietnam's strategies are expressed through core values and that becomes even more profound in the context of the current COVID-19 pandemic HEINEKEN Vietnam not only proves their internal strength and persistence, but also shows the importance of upholding the commitment to accompany Vietnam's sustainable development strategy In an effort to overcome this volatile period, the sustainable development strategy "For a better Vietnam" has always been the guideline for all production and business activities (Heineken Vietnam, 2020)

2.1.3 Scope of operation, product concepts and competitive advantages

Heineken Vietnam operates six breweries and eleven offices Heineken Vietnam operates with two main distribution channels The first distribution channel is an important channel for businesses (traditional channel) with nearly 500 independent distributors, the special thing here is that Heineken Vietnam always tries to support distributors in the best way such as opening capacity building training classes, supporting the application of technology

in business operations to help achieve optimal results Besides, Heineken Vietnam Brewery system is designed to ensure that distributors will focus on their own regions instead of trying to penetrate each other's regions This traditional distribution channel helps distribute nearly 90% of Heineken Vietnam's output The second distribution channel (modern channel) is the distribution system for large and small supermarkets such as Bach Hoa

Xanh, Big C, In 2019, Heineken Vietnam also develops sales on e-commerce channels

With strong potential and a reasonable strategy Heineken Vietnam has developed a wide range of products to meet the needs of the high-price segment to the low-price segment Some high-end beer products can be mentioned as Original Heineken, Silver Heineken, Silver Tiger, Original Tiger mid-range products like, Larue, Larue Special, affordable prices include Bivina, Bia Viet Also available are non-alcoholic Heineken beer and Strongbow fermented apple juice It is the diversity of products and the courage to penetrate different segments that have helped create a unique and strong mark of Heineken Vietnam among domestic consumers Heineken Vietnam has made an admirable development However, the Vietnamese beer market is really a battleground in every price segment and

if Heineken Vietnam wants to become the leading producer in the industry, then they need

to pay attention to their competitors

2.1.4 Market share

Figure 2 Beer market share from 2017 to 2019 in Vietnam (%)

The latest beer market data gives us an overview of Heineken Vietnam's market share relative to its competitors Looking back at 2018 with 23% market share, an increase of just over 1,2% compared to 2017 However, in 2019 Heineken Vietnam's market share reached 33,5%, showing aremarkable growth And with the development showing no signs

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of stopping, it is likely that in the future Heineken Vietnam will replace Sabeco and become the enterprise with the largest market share in the beer industry

Figure 3 Heineken Vietnam net revenue (2017 — 2019) (Thanh Tran, 2021)

The efforts to expand the market helped Heineken Vietnam have a very good growth with

net revenue of 31.867 billion VND in 2019

2.2 Theoretical framework

2.2.1 Definition of marketing mix 4Ps

The marketing mix comprises of four decisions which should be considered before launching a product Firms should plan targeted approach on these four different components and they are product, price, and place & promotion All the four variables help the firm in formulating strategic decisions necessary for competitive advantage Marketing mix comprises of product marketing mix and service marketing mix (Singh, 2012) The four components of the marketing mix include product, price, place, and promotion, and businesses that produce tangible products often apply the marketing mix to their strategy However, service marketing mix is related to three different variables for example people, process and physical evidence In 1964, after Neil H Borden published his articles on “The Concept of the Marketing Mix”, the term became increasingly popular (Singh, 2012) The marketing mix is character by four equally important variable The first step is product plan for articulating a marketing plan (Singh, 2012) There are three parts of product plan, i-e.,

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