SOLUTIONS TO PROMOTE MARKETING ACTIVITIES OF HANOI BEER ALCOHOL BEVERAGE JOINT STOCK CORPORATION (HABECO)

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS SENIOR SEMINAR Major: International Business Economics SOLUTIONS TO PROMOTE MARKETING ACTIVITIES OF HANOI BEER - ALCOHOL - BEVERAGE JOINT STOCK CORPORATION (HABECO) Student’s Full Name: Nguyen Thi Linh Giang Student ID: 1611140091 Class: English - US accredited undergraduate program of International Business Economics Intake/Cohort: 55 Tutor/Supervisor: Assoc Prof Mai Thu Hien TABLE OF CONTENTS ACKNOWLEDGEMENT iii PREFACE iv CHAPTER 1: THEORETICAL BASIS .1 CHAPTER 2: REALITY .4 I Introduction to the Corporation (HABECO) .9 Formation and development history .9 1.2 Types of internet marketing The current internet marketing system of Threeland Travel .6 2.1 Target markets (Indochina, India, EU) 2.2 Major online maketing tools 2.2.1 Search engine optimization (SEO) .7 2.2.2 Social media marketing 10 2.2.3 Email marketing 13 The evaluation of the company’s performance in dealing with the difficuties in internet marketing 15 CHAPTER 3: STRATEGIES TO IMPROVE INTERNET MARKETING SYSTEM IN THREELAND TRAVEL 17 REFERENCES .19 ACKNOWLEDGEMENT Regarding completing this Senior Seminar, I would like to acknowledge the following agencies for their support and assistance Great deals appreciated go to the facilitation from Foreign Trade University, especially the School of Economics & International Business The internship program really plays an important role in providing senior year students with various opportunities to enter the corporate world I am also grateful of both Marketing Department and Market Department of Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO), who warmly supported me with their hospitality during the intern period Not only did they arrange my local work but also assisted me in the specialized field with various useful information Above all, the special thank goes to my helpful supervisor, Mrs Mai Thu Hien The enthusiastic guidance and support that she gave truly help finalize the progression and smoothness of this Senior Seminar PREFACE The existence and development of human society is closely associated with the development of social production The society’s production reflects its level of development, or in other words, it expresses a society’s appearance and strength Along with its development, the production is growing and growing, Vietnam is in the process of developing a socialist-oriented market economy Developing a market economy and integrating international economy are indispensable objectives These have opened up development opportunities for not only beer - alcohol - beverage industry but are also the opportunities for all business sectors in the country Businesses have also taken advantages of these opportunities to develop as well as expand the companies and to bring Vietnamese brand beyond the territorial borders Along with that continuous development and integration process, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) has made endless efforts to improve product quality, innovate the designs, replace the obsolete, backward equipment and machines with modern ones so as to create the best products for consumers Marketing activities to promote brand and products have a significant impact on the existence and development of HABECO Moreover, the effective operation of the Corporation will bring a better life for employees and fulfill social obligations Therefore, the development and promotion of marketing activities is of tremendous significance With the knowledge gained at Foreign Trade University along with the process of studying, investigating and collecting data, information at HABECO, I chose the topic: “Solutions to promote marketing activities of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO)” to write this Senior Seminar CHAPTER 1: THEORETICAL BASIS What is “Marketing”? “Marketing” is an abstract concept that has been defined in many different ways by people due to different perceptions It is defined in Dictionary.com as “the action or business of promoting and selling products or services, including market research and advertising” According to Philip Kotler, “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other” “Marketing” is also defined by the American Marketing Association as “the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” The term developed from the original meaning which referred literally to going to market with goods for sale Marketing is the action or business activity that includes market research and advertising, which involves presenting, promoting, finding out what customers want, using that information to design products and services, and then selling them effectively or in the best possible way From a sales process engineering perspective, marketing is “a set of processes that are interconnected and interdependent with other functions of a business aimed at achieving customer interest and satisfaction” Marketing also refers to activities a company undertakes to promote the buying or selling of its products or services which include advertising, selling, and delivering products to consumers or other businesses Some marketing is done by affiliates on behalf of a company Besides, marketing is the process of getting potential clients or customers interested in your products and/or services The key word in this definition is “process”; marketing involves researching, promoting, selling, and distributing your products or services On the other hand, marketing is the process of teaching consumers why they should choose your products or services over those of your competitors, therefore, it truely is a form of persuasive communication Main marketing activities and their roles as well as functions in Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO) in general Marketing activities were vibrant in 2010 Promotion schemes like price cuts and discounts were widely used in order to push sales, both by local and international players New product launches were also heavily promoted, using the leverage of special events such as the 1,000-year anniversary of Hanoi Public Relations (PR) events and sponsorship of special events are becoming more and more popular because of tightening legislation regards above-the-line marketing for alcoholic drinks As a result, marketing really plays a decisive and coordinating role in connecting the business activities of corporation with the market, which means ensuring that the business activities of the corporation are market-oriented, knowing the market - the customers’ needs and desires as the strongest support for every business decision Consequently, there are four main functions of marketing The very first one is adapting products to customer needs Through market research, customers’ information and factors affecting the buying behavior or purchasing decisions of customers, business manufacturers have produced products and goods those satisfy customers even the most fastidious ones The customers’ needs today have changed so much compared to before, if in the past the needs of consumers were only products which satisfied the essential and physiological needs, nowadays, apart from the factors mentioned above, goods must also satisfy higher demands such as the need for self-expression, spirituality, knowledge, rank, etc Second is the distribution function The distribution function includes all activities with a view to organizing the optimal mobilization of commodity products from the time they are finished in the manufacturing process until they are delivered to retail stores or directly delivered to consumers Through this function, the intermediary consumers will potentially be developed Besides, it also does guide customers on the procedures related to the purchasing process, organizes the specialized transportation organizations, and warehousing storage system of goods… Especially, the distribution function in marketing can detect the stagnation and congestion of distribution channels that possibly occur in the distribution process The third function is goods consumption function This function acquires two major activities which are price control and sales operations, art of sales And the final one is support activities Through the support for customers, marketing helps businesses and enterprises meet the customers’ needs quite well and it is an effectively competitive tool when optimizing costs leads to the difficulties in competing on prices These support activities can include advertising, promotions, participating in fairs, exhibitions and many other customer service activities CHAPTER 2: REALITY I Introduction to the Corporation (HABECO) Formation and development history Over nearly 130 years of history with more than half a century of recovery and development, up to now, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) has become one of the leading enterprises of Vietnam Beverage Industry Many famous product lines those have made up HABECO brand may be mentioned as Truc Bach Beer, Hanoi Beer Premium, Hanoi Bottled Beer and Hanoi Canned Beer, Hanoi Draft Beer, etc And recently, the pair of products for the young - Hanoi Bold & Hanoi Light - has won the trust of numerous consumers for both quality and style, conquered beer connoisseurs not only in the country but also even the foreigners HABECO underwent over 100 years of construction, development and growth Consequently, it is quite a famous and long-standing brand in the Beverage Industry of Vietnam Currently, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation has built a number of breweries in Me Linh, Hung Yen, etc The precursor of HABECO today used to be the Hommel Beer Factory, which was established in 1890 by the French with a small scale of thirty employees for the purpose of producing products in order to serve the French expeditionary force By 1935, Hommel Beer Factory and other breweries in Indochina merged into the Indochina Beer Company In 1954, the northern Vietnam was completely liberated Before the retreat, the French military had dismantled the equipment, burned all important documents so as to make the factory paralyzed However, after peace was restored in 1957, according to the Government’s economic recovery policy, the factory was restored and began operational with the name “Hanoi Brewery” 10 Organizational structure and business production sectors Organizational structure 13 Up to now, the Corporation plays the role of the Parent Company with many subsidiaries and affiliates stretching from Central Quang Binh to the Northern provinces and cities The parent company is allowed to deal in the following main professions: a Producing and trading all kinds of beer, wine, beverage, alcohol and packaging; b Importing and exporting all kinds of products such as beer, wine, soft drinks, alcohol, packaging, raw materials, aromas, essence for the production of beer, specialized equipment of Beer, alcohol and beverage industry; c Investment and consulting services, research, training, technology transfer, design, manufacturing, construction and installation of works specialized for beer, alcohol and beverage; d Service of science and technology, investment consultancy, creating investment capital, lending capital, investing capital in subsidiaries and associated companies; e Trade in hotels, tourism, fairs, advertising information, organizing material zones, real estate business and other professions in accordance with law The products that the Corporation has produced include Bia chai Hà Nội Bia lon Hà Nội Bia Hà Nội Premium Bia lon Hà Nội Premium Bia chai Trúc Bạch Bia lon Trúc Bạch Bia Hà Nội nhãn xanh Bia lon Hà Nội nhãn xanh 14 Bia chai Hà Nội Bold & Light 10 Nước uống đóng chai UniAqua II The situation of production and business activities of the Corporation Business production situation (2017, 2018, and 2019) 2017: In 2017, the main market areas of HABECO were subjected to really fierce competition In order to maintain and develop the market, the Corporation has made efforts to implement many solutions such as improving the sales method and sales management, replan the distributor system; Developing synchronous programs and solutions so as to boost consumption such as: implementing many supporting policies for agents, expanding and developing the system of sponsor restaurants, building promotion schemes for green-label bottled and canned beer products in the Central market, implementing a promotion of pulling off beer cans on the Lunar New Year, launching new Premium canned beer in the market in November, 2017, etc; and in order to continuously promote the Corporation’s products to consumers, in 2017, the Corporation participated in many fairs, held a lot of events and festivals in tourism areas and sponsored for many domestic and foreign programs, especially organized a series of events in Hanoi Beer Festival in Quang Tri, Thanh Hoa and Hanoi with a view to strengthening brand promotion; developing new markets in remote areas; expanding the capacity of Thanh Hoa, Phu Xuyen and Nam Dinh warehouses; opening more new warehouses in Ninh Binh and Tuyen Quang so as to increase the market coverage and better serve the needs of customers The situation of implementing a number of production and business targets in 2017 is as follows: 15 - The total output consumption of major products was estimated at 481.9 million liters Among them: +) All-kind-of-beer consumption reached 479 million liters +) UniAqua drinking water bottled consumption reached 2.8 million liters - The sales of main products reached 7,867.4 billion dong - Profit before tax reached 839.3 billion VND - Profit after tax reached 657.8 billion VND - Budget contribution was estimated at 2,047.8 billion VND In 2017, the Corporation launched a new product in the market - Hanoi Premium canned beer in November and initially received positive feedback as well as the love from consumers Not only that, the Corporation also carried out several charitable and social activities with a total donation of 6.2 billion VND Also in that year, the Corporation was honored to receive great awards including: - National brand - Vietnam Golden Star Award - Certification of high-quality Vietnam Goods - Certification of key products of the Capital 16 - Vietnamese goods favored by consumers - Certification of Vietnam service quality - Top 10 prestigious businesses of Vietnam food - beverage industry in 2017 announced by Vietnam Report (VNR) 2018: According to the situation of production and business activities in 2018, the growth rate of Vietnam’s beer market tended to slow down and maintained the growth rate of about 5% per year, HABECO’s products were under fierce competition in the North and North Central market Special Consumption Tax (SCT) rate increased by 5%, from 60% to 65% in 2018, and the sharp increase in the price of input materials has increased production costs, putting pressure on profit targets of units in the Beer industry Under the timely guidance of the Government and the Ministry of Industry and Trade along with the capacity, experience and striving of its member units and the closely management of the Corporation’s Board of Directors, HABECO has implemented many solutions to overcome difficulties to strive to achieve the annual plan’s targets at the highest level The situation of implementing a number of production and business targets in 2018 is as follow: - Total consumption of major products reaches 429.4 million liters, which includes: • Beer consumption of all kinds is 426.1 million liters • UniAqua's bottled water consumption reaches 3.3 million liters - Sales of main products (including excise tax) reached 7,558.1 billion 17 - Total profit before tax reached VND 637 billion - Total profit after tax of VND 517.9 billion - Budget contribution is estimated at VND 4,645 billion - Profit distribution plan 2017: The total dividend is 1,751,750,631,879 VND, the dividend rate is 75.57% 2019: The year 2019 also marked the Corporation’s rebuilding of its new product and brand strategy by launching a new brand identity in May 2019 and two new beer products in June 2019 which had been highly appreciated in the market In order to create momentum for product consumption, revenue growth, HABECO has promoted investment in sales, leading to a sharp increase in selling expenses in the first months of 2019, mainly increasing advertising costs, promotion costs and the cost for sales support With the determination to complete and even exceed the plan of the company, by the end of 2019, the amount of money HABECO has paid to the State budget is estimated at 4,888.63 billion VND Beside the advantages from the macro environment, HABECO will continue to face the difficulties from the fierce competition among enterprises in the same industry, especially the competition between the world’s leading beer brands As the only beer enterprise in which the State holds a dominant share of Vietnam, with 18 the competitive pressure from foreign breweries having financial potential, the desire to dominate and control the domestic market; HABECO aims at putting all resources determined to maintain the market share and reinforce as well as develop the National Brand The situation of implementing a number of production and business targets in 2019 is as follows: - Consumption of major products: 438.1 million liters Inside: • Beer of all kinds: 434.5 million liters • UniAqua bottled water: 3.6 million liters - Sales of main products: 8,270.8 billion - Profit before tax: VND 693.37 billion - Profit after tax: 539.54 billion VND - Budget submission is estimated at 4,888.63 billion VND Production and business results over the years Targets Unit Total consumption Million 2017 2018 2019 486,3 429,4 438,1 19 liters Sales Revenue Billions 7.867,4 7.55,1 8.270,8 605,1 1.344,2 1.446,7 657,8 517,9 539,54 dong Cost Billions dong Profit after Tax Billions dong Habeco's revenue, profit and marginal profit all grow again in 2019 Future development goals, strategies and plans 20 In the context of increasingly renovation and development country with deeper international integration, many international trade agreements have created many opportunities but also brought great challenges for Vietnamese businesses Successful international integration is to contribute positively to creating sustainable and rich social values Development orientation in the following years, Habeco determines the central strategy of the business is to continue researching and developing new product lines with higher quality, in accordance with consumer tastes At the same time, promoting the strategy of sustainable brand development, improving the competitiveness of the brand in domestic and regional markets; together with the commitment to the community, to fulfill the social responsibility of a national brand enterprise, to contribute positively to the overall development of the country Currently, enterprises are keeping the initiative and creativity spirit to seize opportunities from the 4.0 industrial revolution Accordingly, Habeco has joined hands with FPT to deploy an overall enterprise management project (ERP) to gradually integrate businesses in the context of the digital revolution, contributing to enhance the strength and position in the market In addition, Habeco will expand the market to the whole Central and the South and boost exports, not only shading the northern and northern provinces of Vietnam as before In addition, the construction and development of the distribution system is an important goal that Habeco determines to focus on investing all resources 21 The consolidation of sales will make the cooperation between trading companies and agents will change towards streamlining and better quality With the motto "Prestige with customers is the foundation of prosperity", HABECO will build the most comprehensive sales and support policies for agents to benefit both parties The human element is considered by HABECO to be the core to create momentum for development, accordingly, HABECO has promoted the training of market employees with a high sense of responsibility, enthusiasm for the work to be in charge in the markets key schools, maintaining relationships with agents, restaurants Habeco identifies a centralized deployment with two key points: refreshing the image of Hanoi beer in the eyes of customers, from draft beer to bottled beer in Hanoi and Truc Bach beer as well as researching and building new products In particular, Habeco's conspicuous strategy is to change its image to become closer in the eyes of young customers This strategy is most evident when recently, the oldest beer company in the capital introduced two new products: Hanoi Bold and Hanoi Light in the premium beer segment, which are thought to be completely different from the products of the Habeco and others in the market, marked a strong return to the young segment Hanoi Light has a mild flavor with bright yellow beer on a transparent white bottle background, while the "brother" Hanoi Bold has a striking green color and a rich beer quality Hanoi Beer has always been a reputable brand trusted and selected by consumers, however, to continue nurturing the Vietnamese movement to prioritize Vietnamese goods Habeco always determines the responsibility of the business to continue producing quality products, forcing efforts to constantly develop, improve competitiveness, provide a thoughtful after-sales service, to meet the needs increasingly high by consumers 22 23 CHAPTER 3: MARKETING SOLUTIONS TO PROMOTE THE DEVELOPMENT OF THE CORPORATION Main Marketing Solutions (4P) Price HABECO’s products are priced based on many relevant factors such as cost of goods sold, prices of products in the same segment, brand strategy, and competition in the market, seasons, etc Based on many relevant factors, the prices of the products are flexibly adjusted so as to increase the level of competitiveness of products among customers Product - HABECO develops a diverse product system in order to meet the different needs of customers Currently, the product segments include: affordable (Hanoi Draft Beer), popular (Hanoi Red Label Beer, Hanoi Green Label Beer), premium (Hanoi Premium Beer, Hanoi Bold & Light Beer ), and high-end (Truc Bach Beer) Each product line is packed with different capacities and packaging forms so as to serve different consumer’s purposes - The changes of packaging designs are applied regularly according to the trends and tastes of consumers In addition to changing the packaging of the products, HABECO also researches new products to better serve the diverse needs of customers The products are developed according to the specific orientation of each brand They mainly focus on young and dynamic customers - Products are researched and adjusted according to the taste and consumption habits of the consumers from distribution market region There are many factors such as: the bitterness of the beer, the intensity, the foam, the ice-drinking habits of the Central and the South, etc In the process of product circulation, information related to customer feedback is collected to research and adjust accordingly 24 Place - HABECO's distribution system was built in the direction of forming trading companies in each region to increase level of competitiveness in market areas Each trading company is responsible for finding customers, signing distribution contracts, implementing promotions and sales support for customers in the assigned market area; and also responsible for the product as well as enjoy the supportive sources of the Corporation according to actual business results - Distribution system of these commercial companies includes: Level agents - distributors, Level agents - Retail shops, restaurants… Commercial companies deploy direct selling policies to the system of Level agents - distributors For lower distribution levels, it is implemented through the system of Level agents - distributors - The sales policies, rights and obligations of Level agents - distributors are stipulated in the sales contract between the trading company and the customers In addition, sales promotion programs are published in legal documents such as decisions and notices… Promotion - HABECO continuously implements solutions to increase market share and consumption, coordinates with trading companies to implement support programs to achieve the Corporation’s consumption plan Sales promotion policies are constantly changed based on the market situation and the activities of competitors - HABECO continues to innovate in brand awareness and communication Each brand group will have its own development strategy in line with the general brand development orientation of the Corporation: develop a plan and organize the implementation of communication in a new direction, target young people and use online marketing channels, combined with traditional marketing 25 - With the orientation of rejuvenating brands to reach potential groups of customers, in 2019, several HABECO's events and communication activities have been innovated in terms of form and content so as to reach young people A series of events “Hanoi Beer Festival”, “New Year greetings”, and TVC advertising products for Hanoi Bold & Hanoi Light have achieved remarkable results as highly appreciated by customers Other Solutions - Incorporate closely with the distribution channel system to provide appropriate policies in order to increase competition, increase sales volume and increase market share - Implement effective communication programs - Continue to innovate and diversify product chains so as to increase competitiveness in the market 26 Chapter 4: Conclusion In the coming years, it will still be extremely difficult for HABECO when the competition between beer and wine production enterprises is getting fiercer In addition, the Law on the Prevention and Control of Harmful Alcoholic Alcoholic Effect will greatly affect the consumption of alcohol products As a state-owned beer enterprise holding dominant shares of Vietnam, with competitive pressures from foreign brewers with financial potential, desire to dominate and dominate the domestic market; HABECO aims to put all resources determined to maintain market share and strengthen and develop national brands Currently consumers need a good quality product, good taste, nice design, but if that is not enough To go further, the product needs a ‘soul’, an intangible value big enough to entice users As incomes rise, consumers are willing to spend more money to buy intangible values Especially the young people now have a lot of choices, very open Food and drinks must not only be saturated, they must also provide value, and must match the user's ‘taste’ In the process of researching and assessing the market, HABECO recognizes the need to pay special attention to new trends, thereby making recommendations to improve the current brand image HABECO's competitors are now foreign or foreign enterprises that dominate, they have a long-term vision of the market, an international strategy, good management skills The consulting units for them are also the leading companies in the world The competitors use brand new advertising channels and customer marketing to compete, so HABECO decided to cooperate with capable and experienced partners, understand international trends to support support yourself in the process of building a Vietnamese brand on a par 27 ... the topic: ? ?Solutions to promote marketing activities of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO)? ?? to write this Senior Seminar CHAPTER 1: THEORETICAL BASIS What is ? ?Marketing? ???... Hanoi Beer - Alcohol - Beverage Corporation became Hanoi Beer - Alcohol - Beverage 11 Joint Stock Corporation (HABECO) with the form of equitization, transforming its operating model into a joint. .. the Beverage Industry of Vietnam Currently, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation has built a number of breweries in Me Linh, Hung Yen, etc The precursor of HABECO today used to