Phân tích những yếu tố môi trường bên ngoài ảnh hưởng tới sản phẩm bia heineken tại thị trường việt nam e

PHÂN TÍCH NHỮNG YẾU TỐ MƠI TRƯỜNG BÊN NGỒI ẢNH HƯỞNG TỚI SẢN PHẨM BIA HEINEKEN TẠI THỊ TRƯỜNG VIỆT NAM Theme: Analyze external environmental factors which affect Heineken products in Vietnamese market Definition of researched industry: - According to ICB, Beer is level subsector of beverage subsector Beverage belongs to the sector of consumer goods Beverage sector is divided into types: Alcoholic beverages such as beer and wine; non-alcoholic beverages like freshwater, juice, mineral water… Beer subsector is defined as « including companies which produce and provide beverages processed from barley like beer or stout » - Beer is one of many products which account for highest proportions in beverage industry all over the world Description of basic industrial features Beverage industry is one specific business sector since manufacturers take back bottles to reuse They have to invest much for producing bottles Thus, companies will suffer losses if they can not handle the recovery process Analysis of macro and global environment A Analysis of macro a Demographic: • Population: According to the investigation of General Statistics Office, up to st April 2009, Vietnam has around 85,846,997 people In terms of distribution in social-economic regions, the Red river Delta has highest number with approximately 19.5 million, followed by the North Central and the South Central coastal region with about 18.8 Page million The third position belongs to the Mekong Delta with about 17.1 million Tay Nguyen region has the lowest number with about 5.1 million According to estimatation of The World Factbook published by CIA in July 2011, the population of Vietnam is 90,549,390, ranked 14th in the world According to this survey, Vietnam has about 25.4 million, corresponding to 29.6% of total population, are living in urban areas and about 60.4 million residing in rural areas The current average gender ratio is 98 males/100 females The highest ratio with 102 males/100 females is in Tay Nguyen region South East region has the lowest with 95 males/100 females Basing on the current growth of population, the consumption of beers will continue to go up in upcoming decade • Income GDP of Vietnam is estimated to reach 154.6 billion USD in 2013 This organization also said that the GDP growth of Vietnam remains modest in the next year when the Government only sets out the target of 5.5% Meanwhile, the process of restructuring banking system is expected to impact on the medium-term objective of recovering the economic growth to 7.5% Ernst & Young also notes that the present restructuring process can curb the growth of credit but will strengthen the banking system in long term Page The organization said that, in 2014, Vietnam can reach the growth of 7% if exporting markets recover, the banking system becomes more stablem and the Draft of changing policies of foreign direct investment is issued The growth rate is expected to be slow in short term but will recover in long term In 2013, Ernst & Young predicts that the nominal GDP of Vietnam will reach $ 154.6 billion and per capital will reach $ 1,705.8 (assuming that the population is 90.6 million) if the growth rate remains at 5.5% Expected inflation is 7.8%, higher than the target of 6-6.5% set by the Government Exchange rate against US dollar is about 21,402.3 VND before being loosened up to 21,995.1 in 2014 b Economic: According to the Ministry of Industry and Trade, production of beer, wine and other drinks in July is increasing due to hot weather and holidays The beer production before April is estimated to be 233.4 million liters, increasing by 14.6% in comparison to the same period of 2012 In the first four months, beer production has reached 827.5 million liters, an increase of 14.9% over the same period last year Page According to statistics of Vietnamese beer producers, the whole country consumed nearly billion liters in 2012, equivalent to billion USD c Social and Cultural Before Tet Holiday, although the amount of famous beer imports is highly significant, most consumers choose domestically produced products due to price reasons Vietnam is always on the top 25 countries with highest beer consumption in the world, ranks 3rd in Asia and takes leading position in Southeast Asian region for many years Moreover, the consumption of present year is always higher than that of last year 15% According to the statistics of Heineken: "Only in 2010 Vietnamese drunk more than 200 million liters of Heineken beer, only after US and France, on the list of 170 markets around the world in which this brand presents" Mrs Michel de Carvalho - brand owner of Heineken forecasts that Vietnam will become the world largest market of Heineken up to 2015! According to Carvalho, the growth in Vietnam market is one example that he always tells when he comes to the other markets d Government The Government has clear regulations for beer industry randing from brand, advertising, credit, price, alcohol content, rate, and waste treatment When planning the development of alcohol - beer - soft drinks in 2010 and Vision to 2015, Ministry of Industry and Trade predicted that beer output of Vietnam will reach 2.7 billion liters by 2010 However, only years after planning, the Ministry of Industry and Trade had to make adjustments to billion liters to be suitable with the growth of production and consumption in practice With this adjustment, beer consumption per capita of Vietnam is 28 liters per year According to the Ministry of Industry and Trade, in the period 2001-2007, the beer industry is developing rapidly, the production increases suddenly by 13.11% each year In 2003, domestic beer output reached 1.29 billion liters, and exceeded billion liters only Page years later (in 2008) The consumption per capita increased from 10.04 in 2000 to 21.65 liters in 2007 In 2008, the inflation rate of Vietnam is nearly 20% but people not reduce costs for parties Since 2009, the economy has fallen into a depression and still has been facing many difficulties up to now but the beer industry has still developing since the people can not give up habits of using alcohol drinks B Analysis of global environment • Today, with fierce competition all over the world, profit is no longer the top priority for beer producers since they muts pay attention to the global environment One of the main ingredients in beer is water Thus, beer producers are responsible for the efficient usage of natural resources since climate changes can bring about a decrease in beer production within the past 30 years, especially in areas of Australia • The prices of beer are likely to increase in upcoming decades because climate changes can hamper the production of barley, the main ingredient of beer "It means that there will be pubs without beer or the cost of beer will rise up", Salinger told Similar effects could be expected worldwide but Salinger spoke only about the effects on Australia and New Zealand "It will bring about a lot of challenges for the beer industry," even forcing producers to find out new varieties of barley as a direct result of climate change, Salinger said • Along with threat of climate changes, barley production is facing up with competition from other land usages like dairy industry • Consumption in traditional markets is decreasing and the prices of input materials soar That is reason why even the world's largest beer producers must expand to increase their competitiveness by acquiring competitors Kris Kippers, analyst of Petercam in Belgium, said that mergers can not only create a strong distribution network but also bring about a great advantage of purchasing materials "Prices may be different when buying large volumes of raw materials, especially when the prices of barley and hops (yeast materials) are growing rapidly," he said Page • Meanwhile, a strong dollar is making favourable conditions for European firms in acquisitions "If I were the owner of European businesses, I would be willing to buy American businesses, especially when paying in dollars," one analyst said • In recent years, the consumption in traditional markets of Western Europeand and American producers has been declining However, Asia and South America markets are expanding because the people of these countries are more and more accessible to Western cultures, especially young generation • According to the Association of European Beer Producers, in 2007, Asia accounts for 31.8% total share of global beer consumption, equivalent to the combination of Western Europe and US This is a reason why beer producers enhance M&A activities They want to be strong to expand into new markets OPPORTUNITIES AND THREATS FOR ALCOHOLIC BEVERAGE INDUSTRY OPPORTUNITIES THREATS • According to estimatation of The World - For traditional markets of beer producers, Factbook published by CIA in July 2011, the changing habits and driving these population of Vietnam is 90,549,390, ranked traditional forces into buying products of 14th in the world In spite of current economic big brand names are very hard in terms of difficulties and challenges, the volume of comsumption bahaviours and prices consumption and characteristic of Vietnamese people have taken us into the list of 25 countries which have highest beer consumption rate in the world - Prices of beers can increase in upcoming decades because climate changes affect the production of barley, main component of beer “It means that there will be bars - Basing on the current rate of populationwithout beers or costs of beers will growth, beer consumption is estimated to increase” increase in the upcoming decade - Consumption in traditional markets of - Consumers still prefer reputable brand name West European and American companies - Asian and South American markets are is going down significantly expanding because peole in these countries Page are approaching more to Western cultures, especially young people Analysis of industrial environment A Analysis of industrial attraction Up to 1992, Heineken, famous brand throughout the world, has been imported directly from Holland to Vietnam Policies of Reform have brought about many investment opportunities and helped leading brands in the world come to consumers In this trend, in 1994, Heineken beers were produced by Vietnam Brewery Limited Company for the first time at Vietnam, under the form of a joint venture with Vietnamese companies Over the past years, Heineken is considered to be the most successful brand and an icon in the industry In a market where local beers enjoying much favors like Vietnam, Heineken has won the hearts Vietnamese consumers And Heineken brand is considered to be the first in Vietnam B Analysis of competitive forces Five forces model of Porter Michael Porter, the top world strategic planner today, gives out a theoretical framework to analyze competition activities In which, he said that all businesses must be affected by five competitive forces Strategic planners who are seeking more prominent advantages than opponents can use this model to better understand the context of the industry Threats of substitute products: Substitute products of beers include wine and distilled brandy Wine industry includes grape wine and fermented beverages (alcoholic beverage, 2000) Distilled wines include vodka, gin, rum, whiskey and cordial The market has a great potential due to the expansion of international export Page An alternative to domestic beer markets is mixed beverages including small or imported brews Although these products have much higher prices, customers are still willing to pay higher prices for replacement Threat of new entrants: Companies and corporations producing and trading beer - alcohol – water beverages have been taking efforts to overcome difficulties and ensure that their products have high quality and various designs In 2013, Hanoi Beer Alcohol And Beverage Joint Stock Corporation (HABECO) has launched certain targets: the production reaches 655 million liters, an increase of 5.6%; total sales is 11,386 billion, up 6.9% over the same period In order to achieve above targets, HABECO focuses on direct promotions aiming at consumers, builds sales and supportive policies, creates most favourable conditions for customers The corporation also tries to improve the distribution system, focuses on building brand name and introduces products to consumers, especially new products Bargaining power of customers: There are many competitors and substitute products in the beverage industry, so bargining power is in the hand of customers Therefore, the only way to affect customers’ behaviours is through advertising and promotion Competition in the industry: Some typical companies which create the beer industry of Vietnam: - A long established and reputable producer which must be mentioned is SABECO, Sai Gon Beer - Alcohol - Beverage Corporation with brands named Saigon Beer, Saigon special, 333 The corporation has many plants across regions SABECO dominates the segment of popular beer, especially strong in Southern and is growing up in Central region - Coming up next is HABECO, another alcohol corporation in the North HABECO have factories all over the North and also dominates the popular market The corporation is famous with brand namely Hanoi Beer in form of cans and bottle These two brands have a market share of over 50% all over the country Page - Heineken and Tiger are two international brand names which have strongest growth in Vietnamese markets - Other brand names like Calsberg and Foster’s … also contribute much to the diversification of beer market in Vietnam Economists assess competitiveness via indicators of industrial concentration and the concentration ratio (Concentration ration - CR) is the first indicator which must be mentioned This index shows the percentage of market accounted by largest firms in the industry There are also indicators of CR in market accounted by 8, 25 and 50 leading firms in the industry The higher the index is, the bigger the concentration of market is If only some firms hold the majority of total market share, the industry will be less competitive (or closer to monopoly) Low concentration ratio indicates that there are a lot of competition but no firm have significant market share Markets which consist of many "pieces" like that are said to be competitive However, concentration ratio is not the only indicator because the trend of defining industry brings more information than the distribution of market share In order to have competitive advantages, a firm can take some measures: - The diversification of competitors - Fixed cost/Value added: High fixed costs usually exist in an industry which has economies of scale, which means that the cost of production decreases when the size increases When the total cost is only slightly larger than the fixed costs, the firm must produce at highest capacity to achieve the lowest cost for each unit produced Thus, the firm will have to sell a huge number of products on the market, leading to the increase of competitive intensity - Growth situation of the industry: Heineken is in the phase of maturity - Abundant productivity - Differences between products: • Superior quality • Distinctive Taste • Original formula • Heritage & Tradition Page • Premium brand • Attractive packaging - Transfer costs - Distinct characteristic of brand name: Heineken must be proud to be the only brand that customers can recognize rightly even with a no brand bottle People believe that "the grass is often greener elsewhere", and they are also willing to believe that the beverage contained in this green beer will taste better, and have higher quality than that of local drinks - Screening status within the industry: In the industry, Heineken make its own difference via “Premium brand” C Analsyis of industrial group These three companies account for 95% market share In which, Sabeco takes 51.4%, VBL accounts for 29.7% and Habeco takes 13.9% Other companies are Hue Beer, Tan Hiep Phat, Southeast Asian Beer • Sabeco is taking the leading position, accounting for 51,4% output in Vietnam market - The main products of SABECO are Saigon Red Beer (355 Saigon Export), Beer 333, Lager Saigon, Saigon Green Beer, - Production of Saigon Beer in 2010 reached billion liters, and SABECO ranked 21st on the list of leading beer producers in the world, was on the top producers in Southeast Asia Total revenues in 2010 reached 19,913 billion, equivalent to $ billion Before-tax profit reached 3.485 billion and after-tax profit reached 2.429 billion VBL – Vietnam Brewery Limited VBL is producing products of Heineken, Tiger, Larue in Vietnam The company is a joint venture of Pacific Brewery Limited and Sai Gon Trade • - Corporation - According to annual report in 2010, Indo-chinese market (Vietnam, Laos, Cambodia) contributes up to 48% of pre-tax profits and interests of the company, equivalent to 241.7 million Singapore USD (nearly 3,900 billions VND), an increase of 48% over 2009 • Habeco – Hanoi Beer Alcohol And Beverage Joint Stock Corporation Page 10 - Volume of Hanoi Beer consumed in 2010 is 403.8 million liters, an increase of 32.5% in comparison to 2010 - Main products of Habeco are Hanoi Beer and Truc Bach Beer - In 2010, the revenue of Habeco is 5,439 billion VND and the before-tax profit is 895 billion, before-tax profit is 734 billion VND D Analysis of key successful factors in the industry A number of factors can affect the success of the company in the beverage industry The success in the beverage industry, like in any other businesses, "does not come overnight" However, it requires long-term investments of both finance and effort In addition, researches also play an important role in business performance One can learn a lot from successful predecessors in this industry when he plans to venture into the beer industry Understanding of customers: Understanding of customers is a constantly repetitive concept In fact, understanding of customers is very important for any businesses It is very hard for businesses to advertise and promote their products if they not know the tastes of customers Understanding demographics of customers is very essential This factor must be carefully considered since the understanding of customers has impacts on the calculation of production costs which includes potential labor costs and transfer costs Final production cost will affect the prices of products • Research and Analysis Most people think that knowledge of customers is the only factor that businesses require In fact, the knowledge of customers is only a part of a bigger picture Doing market research and analysis is also very important An effective analysis will also prove to be an advantage For example, an initial study of resources is a requirement Having knowledge of a supplier selling cheap materials may not be sufficient because this can affect the reputation of goods in the market On the one hand, using cheap materials means that you can produce a large volume of goods at minimal costs On the other hand, the quality of produced goods is not high Through researches, you can make necessary Page 11 adjustments in your business or experiment your products Finally, researches can affect the lifespan of your holidays in business • A goal must be set for any endeavor to be successful Having a Goal and Achieving It A goal should be set for any efforts to succeed Without a goal, efforts put will be in vain This situation is similar to a race in which athletes not know where the finish line is Outline specific goals at the beginning to know what can be achieved and what is not Moreover, the industry also sets out phases to achieve the desire and to let pioneers made their visions easier Having plans and objectives and meeting proposed plans will help beer industry compete with other available products on the market E Analysis of driving forces • Political Trend General Department of Taxation has sent an official letter about the law of new special consumption tax to departments in provinces and Then, alcohol products will be taxed in stages From 1/1/2010 to 31/12/2012, beer products must suffer the tax of 45% Then, from 1/1/2013, the rate is increased to 50% Old rate of taxation which is applicable in 2008-2009 for popular beer products is 40% -75% Special taxation on alcohol drinks which is the price without value added tax and does not exclude the value of packaging According to this regulation, beer in form of cans will not be deducted from the value of cans at a rate of 3,800 VND per liter as before For beer contained in bottles, if production bases have stakes on bottles, quarterly companies and customers have to make settlement The amount corresponding to the value of bottles is not to be taken into special taxation • Social Trend Page 12 Main social trends in the beer industry are low-carb (MacArthur, 2004) US market enters a low-carb phase Beer consumption reduces significantly after the appearance of this phase In 2003, Bud Light still hold the leading postion with an increase of 2.6% - 8.1% while the market share of Coors Light reduces by 0.6% - 8.5% (MacArthur, 2004) • Technological trend Technology in this industry primarily focuses on the computer Companies use software and equipment to ensure production efficiency of products Additionally, increasing technological variables can be a better advertising strategy Technologies firstly are used to speed up production and increase efficiency of services Then, new technologies have also become useful for inventory and point of sales Opportunities and Threats STRENGTHS WEAKNESSES - Brand name and investment on designs - Price of Heineken is higher than that of other - Global brand name, pioneer in international companies strategy - Battles for bigger beer plants - There are many Mergers and Acquisitions - Consumption age of beer goes up due to - Specific flavor health reason - Being the only brand name of beer which can be identified immediately by seeing bottles without seeing name OPPORTUNITIES THREATS - Heineken has low content of calorie Society - Harmful to health if use much is promoting for a “healthy” beer - Drunk by using beers can bring about traffic Page 13 - Population of US is growing significantly accidents and social security - Has bigger market share - Competitors increase market shares - Many other beer plants are becoming bigger than that of Heineken Page 14 ... local beers enjoying much favors like Vietnam, Heineken has won the hearts Vietnamese consumers And Heineken brand is considered to be the first in Vietnam B Analysis of competitive forces Five forces... America markets are expanding because the people of these countries are more and more accessible to Western cultures, especially young generation • According to the Association of European Beer... bottle People believe that "the grass is often greener elsewhere", and they are also willing to believe that the beverage contained in this green beer will taste better, and have higher quality than