2. PROBLEM CONTEXT
2.2. History of Banquet program
2.2.5. The Banquet program performance phase 3.2018
Scope in: Hue, Đa Nang, Quang Nam, Quang Ngai, Binh Đinh, Phu Yen, Gia Lai, Kon
Tum, Dak Lak, Khanh Hoa, Ninh Thuan, Binh Thuan, Binh Duong, Đong Nai, Vung Tau, HCM, Long An, Tien Giang, Ben Tre, Vinh Long, Đong Thap, Tra Vinh, Tay Ninh, Can Tho, Hau Giang, Soc Trăng, Ca Mau, An Giang, Kien Giang, Bac Lieu.
Mechanism of BP P3.2018
The party registered by participated Caterers in list (Sub-distributor, Beverage retail shop, Grocery shop, Banquet cartering) which buy from 15 cases HVB (Heineken, Tiger, Tiger Crystal, Strongbow, Larue, Larue Special, Bivina), will be received voucher (1 carton) by brand and Caterers will be received 200,000 VND bonus for a successful party.
The party registered by participated Caterers in list (only be applied to wedding venue) from 40 cases (HVB porfolio) will be received voucher (02 cartons) by brand and Caterers will be received 100,000 VND bonus for a successful party. Heineken Trolley added as special gifts for party owner in peak season (December 2018 and January 2019) to push more SV.
BP P3.2018 Budget:
Table 5: The proposal budget for BP phase 3.2018
(From 01 October 2018 to 31 January 2019)
Source: approved proposal Banquet P3.2018 In P3.2018, TMKT put in there a lot of expectation about successful pictures with over 43- bilion vnd budget. POS items and beer promotion accounted for 70% (approximately 29 billion vnd) and the agency fee accounted for 30% (approximately 14 billion vnd) of the total budget of program. Agency fee is very important aspects, which TMKT had to notice for future.
Table 6: The performance of BP phase 3.2018
(From 01 October 2018 to 31 January 2019)
Source: internal report from Agency Trio With the successful performance of BP P1.2018 and acceptable performance of BP P2.2018 that TMK and ST decided to expand to double scope with 30 provinces in nationwide. The target of NoP also went up from 19,329 in P2.2018 to 38,305 in P3.2018, SV increased from 496,816 to 957,625 cases.
Unfortunately both target for P3.2018 could be not achieved such as NoP only got 68% (actual 26,038 parties/target 38,305 parties) and the SV was 86.1% (actual 824,109 cases/target 957,625 cases). There also appeared many complicated problems need to be solved when the scope was quickly expanded in short time like that.
In case a Banquet program did not achieve the target like that it would lead to not only negative impact in return on investment (ROI) of the program but also lost market share and not protect market from many competitors. Especially, Banquet is one of the key activation of ToffT which management team HVB put a lot of expectation.
Figure 8: Statistics percentage of party by brands in BP P3.2018
Source: internal report from Agency Trio Statistics performance NoP BP P3.2018 by brands such as Tiger brand is the largest with 61% of the total served NoP (26,038 parties), Larue brand is the second with 30% of the total party, Heineken brand only account for 7%, and other brands (Tiger Crystal, Larue Special, Strongbow, Bivina …) are very limited in 2% in contribution to program.
Figure 9: Statistics percentage of outlet types and party by outlet types in BP P3.2018
Source: report from Agency Trio In Figure 2 shows, that in 2,090 activated Caterers that contributed in by outlet types to total 26,038 parties BP P3.2018. The biggest percentage take part in program is Grocery shop plus (30%) which contribute 26% NoP in performance. Secondly, there is Sub distributors (27%) which contribute 35% in total NoP. Thirdly, there is Beverage retail shops (20%) which contribute only 15% to the performance, Wedding venue (10%) contribute 14%, Grocery shops (8%) contribute 4%, and BP Catering (5%) contribute 5% in the performance. Heineken 7% Tiger 61% TigerCrystal 0% Larue 30% Larue Special 2% Bivina 0% Strongbow 0% % PARTY BY BRAND Banquet Catering 5%
Beverage Retail Shop 20%
Grocery Shop 8% Grocery Shop Plus
30% Sub Distributor 27% Wedding Venue 10% % OUTLET TYPE Banquet Catering
6% Beverage Retail Shop 15% Grocery Shop
4%
Grocery Shop Plus 26% Sub Distributor 35% Wedding Venue 14%