Marketing Plan

RMIT International University Vietnam

Master of Business Administration

Subject Code: BUSM2412_3994)

Subject Name: MARKETING FOR MANAGERS

Location where you study: RMIT Vietnam – City Campus

Title of Assignment: Marketing Plan

File(s) Submitted: Marketing Plan – s3153551

Students’ Name: Vu Thi Ngoc Quyen

Students’ Email Address: S3153551@rmit.edu.vn

Learning Facilitator in charge:  Mahabubur Rahman

Assignment Due Date: 21st December 2011

Date of Submission: 21st December 2011

Number of Pages including this one: 19

Word Count: 1,731 words

Table of Contents

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1. SWOT Analysis...........................................................................................................................................3
2. Segmentation, Targeting and Positioning (STP).........................................................................................5
Segmentation.................................................................................................................................................5
Targeting........................................................................................................................................................6
Positioning.....................................................................................................................................................7
3. Strategy......................................................................................................................................................9
Product..........................................................................................................................................................9
Price.............................................................................................................................................................11
Place.............................................................................................................................................................12
Promotion....................................................................................................................................................12
4. Recommendation.....................................................................................................................................13
Product........................................................................................................................................................13
Price.............................................................................................................................................................14
Place.............................................................................................................................................................15
Promotion....................................................................................................................................................16
5. References...............................................................................................................................................19

1. SWOT Analysis

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Page 4 of 21
 2. Segmentation, Targeting and Positioning (STP)

With a comprehensive analysis and selection of STP, Sabeco can design a proper marketing mix so
that 333 can satisfy the needs of its target customers.

Segmentation
Segmentation means break down a market in distinct groups of buyers based on their homogenous
needs, characteristics or behaviors (Wedel & Kamakura, 2000). This a proper segmentation, the

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company can provide higher value to customers as they can develop a market mix that match the
specific needs and concerns of their selected segments, and create competitive advantage over their
rivals (Porter, 1985).

Armstrong & Kotler (2011) suggested that there are four variables for segmenting the market,
namely demographic, geographic, behavioral, and psychographic.

Sabeco defines market segment for 333 as followed:

Targeting

Targeting is the selection of market segment that the company wants to serve (Kotler, 2000). There
are several strategies that a company can apply to satisfy their target segment, including
undifferentiated marketing, differentiated marketing, concentrated marketing, and niche marketing
(Kurtz, 2010).

Sabeco applies differentiate marketing as they have different beer brands to serve different target
segment. Target market of 333 is defined as followed:

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Positioning

Positioning is using marketing to form a unique, and consistent customers perception about a
product’s image (Lamb et al, 2011).

Perner (2010) stated that a company can position its product through product attributes, benefit and
values. Sabeco positions 333 based on the benefits it provides to customers. Firstly, 333 aims at
lower-middle to middle income class like Halida, Hue Beer, and Ben Thanh beer, which also have
the same quality, but 333 offered a lower price. In other words, 333 is the same for less. Besides,
customers can enjoy 333, have good time with friends, release from stress and worry-free of
hangover feelings which might give bad impact on the quality of their next-day-work.

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Figure 1: Possible Value Proposition

Source: Armstrong et al, 2011, Marketing An introduction Global decision

Positioning Map

Figure 2: Positioning Map of beer brands in Vietnam

3. Strategy

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Product

333 does not cost much for consuming, people can buy it frequently and do not have to think much
for buying decision, and the product is available everywhere. Therefore, 333 is classified as
convenience product (Camacho et al, 2004).

According to Andereck (2005), a product has 3 levels which are core product, actual product, and
augmented product.

Product life cycle

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 Figure 3: 333’s Product life cycle

Product Life Cycle (PLC) is the lifetime of a product's sales and profits. A product has four
distinctive stages: introduction, growth, maturity, and decline (William, 2001). 333 was first
introduced in 1981 with target market in the South of Vietnam. Then Sabeco expands its market to
other areas of Vietnam, and also exports 333 to foreign countries such as Japan, Australia, Holland,
etc, and Sabeco plans to enlarge its market and push up their sales volumes in the future. With the
growing of profits and sales, it can be said the 333 is in the growth stage of its life cycle.

Packaging

Primary packaging is the material that is in direct contact with the contents, and used to envelop the
product (Perner, 2010). Sabeco uses glass bottle and aluminum can with an easy open lid as its
primary packaging.

Secondary packaging is the package that used to group the primary packages together (Perner,
2010). Sabeco uses kegs and cask to group 333 bottles and cans.

Labeling
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Labeling is regard to any written or graphic communications on the packaging of the product (Kurtz,
2010). 333 provides information of producers, company’s logo, open dating, and quality statement
… on its label.

Branding

Choosing a brand for a product is very important because it is a tool to communicate the product’s
image to customers (The Association of Business Executives, 2008). In Vietnam, 9 is a lucky
number, and 333 in total equals 9 which can help to bring customers a sense of luck when drinking
333. Besides, the logo is a dragon which means power and wealth. These are lucky and meaningful
symbol in Vietnam culture.

Price

The company applies value-based and competitor-based pricing for all of its products, meaning
setting the price relying on customers’ value perception and competitors’ price to maintain and
improve its market share leadership (Naraina, 2008). The demand of 333’s target customer is elastic
because of two main reasons. First, the lower-middle to middle income customers are price sensitive,
especially when they buy a product that is common and wide spread. Secondly, there are a lot of
substitutes and competitors in the beer market that customers can easy to access and compare the
quality of substitutes. Therefore, if there is a movement in price of one competitor in the beer
market, the whole market or Sabeco will have to adjust its price accordingly to remain competitive.
Otherwise, 333 customers will switch to other products that have the same value, but more
competitive price.

By holding the largest market share in the market, Sabeco can utilize economies of scale as it
produces in large quantity, which means 333’s average cost is lower than other rivals, and so 333
can offer a competitive price in the market.

Discount and allowance: SABECO set a lower price for whole box and volume purchase

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Place

Indirect marketing channel refers to the number of channel levels that a company uses in distributing
its products. Sabeco has the largest distribution channels across the country with more than 1,300
distributors, and the company is trying to reduce the number of channel levels in order to make the
price consistent in different areas. In the past, Sabeco used traditional channels through
intermediaries such as grocery stores, and dealers. Currently, Sabeco expands to Horeka channels
(directly sells to hotels, restaurants, resorts, supermarkets …). Thus, customers can get 333
anywhere when they want it.

Figure 4: 333’s distribution channels

Promotion

Currently, Sabeco has very limited budget for promoting its products including 333. It can be clearly
seen that 333 rarely appeares on any newspapers or magazines. 333 only appeared on some channels
of provincial television station such as Vinh Long or Binh Duong. Moreover, in HCMC, 333 has
nearly no billboards and very few indoor advertising. Although 333 holds the second largest market
share in the market, Sabeco should have reminder advertising to ensure that customers will not
forget about the product, and also to enhance its market position. While the beer market welcomes
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more domestic and international players, Sabeco keeps very low level of promotion campaign. This
can lead to losing of customers’ loyalty and reduce brand awareness.

4. Recommendation

Product

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Page 14 of 21
 Figure 5: Suggested package for 6 bottles with carrying robe

Figure 6: Suggested package for 6 cans with carrying robe

Price

For the purpose of reaching the objective of maximizing the profits, Sabeco also should look at the
product mix pricing strategies. It is suggested that the company with its current beer product should
apply the optional product pricing strategy. This means that the company will price and sell the
optional or accessory products along with the main product. For example, along with selling casks of
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333 beer in bottles or cans, Sabeco also offers a bottle-opener for customers. When customers buy
casks of beer from the retails, they will also be offered bottle or can openers as an option for buying.

Psychological strategies: 333’s current price is round and even numbers – 8,000 VND, it should be
set as an odder number such as 7,800 VND. Therefore, customers might think it is cheaper which
can lead to increase in 333’s sales volumes.

Besides, Sabeco can also apply allowances approach, it is also a kind of price reduction but giving
the involvement and incentive from the individual customers. This approach means that customers
will get a discount if turning in for the company an old item when buying a new one. In this case,
Sabeco can accept the returned emptied bottles from the customers and give them a discount in the
condition that they will continue to buy 333. By this strategy, Sabeco will attract a great deal of
customers and more importantly, keep them as 333’s loyalty customers.

Place

As beer is a fast moving consumer goods, beer is sold in many places such as shops, bars,
supermarkets, markets, etc. SABECO should apply the intensive pattern of distribution. It is
recommended that The Multichannel distribution system or hybrid marketing system should be
applied (Figure 7). Sabeco can sell directly to its target customer by using emails and the Website
sales. This channel is the least expenses and simple to apply. Besides, Sabeco can reach a wide range
of individual and target customers through retailers. With this new system, Sabeco can expand it
sales and market coverage and gain opportunities to tailor its products and services to the specific
needs of diverse customer segments.

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 Figure 7: Hybrid Marketing Channel

Promotion

As Sabeco is not doing many promotion activities in recent, it is recommended that it needs to do
some advertising, PR, and sales promotions to increase brand awareness and push up its sales
volumes.

Print advertising on Tuoi Tre newspapers

The reason why we choose Tuoi Tre is it is one of the most famous newspapers in Vietnam.
Everyday millions of people read it. In Tuoi Tre, our advertising will be put on the first page of
advertisement section. Although it will cost a large amount of money, the return is worth its cost.
According to the research of Japanese, when people read newspapers, they tend to read main news
and the most impression things, hence; the print advertising of 333 will be decorated very impressive
and make the customers easy to recognize and remember it.

Billboards or panels

At the same time with advertise on newspapers and magazines, 333 should be advertised on
billboards, which will be set up on the main streets to attract many people. These billboards will be
put on Dien Bien Phu Street as this is a crowed area, especially in rush hours. The picture is used for

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our billboard will be the same with the picture which is used for advertising on newspapers and
magazines. The time for put the billboard on this street can last for one year.

Besides, Sabeco can ask grocery stores to help them make signboards. Sabeco will sponsor the
money to make them and every month the company will pay them a fix amount, approximately
500.000 VND in exchange for putting 333 advertisements on the signboard.

Suggested and some other promotion activities are summarized as below:

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Page 19 of 21
5. References

 Andereck, P. D., Kathleen. 2005, ‘Marketing Plan Outline’, AOT.

 Businesslink.gov.uk. 2007,’ Write a Marketing Plan’, United Kingdom Small Business
Service.
 Camacho, L. L., Dunne, T. 2004, ‘Building and Marketing Strategy’, University of
Queesland
 Gabbott, M., 2002, ‘Understanding value through segmentation and targeting’, Factiva
 Kotler, P., 2000, ‘Marketing Management, Millenium edition’, Prentice-Hall, Inc
 Kurtz, D. L. 2010, ‘Contemporary Marketing’, South-Western Cengage Learning
 Lamb, C. W., Hair, J. F., McDaniel, C., Pride, W. M., Ferrell, O.C., Zikmund, W.G., 2011,
‘Marketing for decision Makers’, Cengage Learning
 Moi, A. 2001, ‘Marketing Effectively’, New York
 Naraina, K. 2008, ‘Marketing management’, Maharshi Dayanand University, New Delhi

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 Perner, L. 2010, ‘Segmentation – Targeting- Positioning’, University of Southern
California
 Porter, M.E., 1985, ‘Competitive Advantage’, Free Press, New York.
 The Association of Business Executives, ‘Marketing’, viewed on 19th December, 2012,
http://www.nishanw.org/MARKETING.PDF
 Wedel, M., Kamakura, W. A. 2000, ‘Market segmentation: conceptual and methodological
foundations’, Springer
 William, L. 2001, ‘The Marketing Plan: How to Prepare and Implement It’. New York,
American Management Association.

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